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2024.01.16 Agenda Packet - Regular Meeting
City Council Agenda Tuesday, January 16, 2024 6:30 PM South Coast Air Quality Management District/Main Auditorium 21865 Copley Drive, Diamond Bar, CA 91765 How to Observe the Meeting From Home: The public can observe the meeting by calling +1 (631) 992-3221, Access Code: 788-712-202 OR visit: https://attendee.gotowebinar.com/register/549651796761651548. How to Submit Public Comment: The public may provide public comment by attending the meeting in person, by sending an email, or by logging into the teleconference. Please send email public comments to the City Clerk at cityclerk@DiamondBarCA.gov by 4:00 p.m. on the day of the meeting and indicate in the Subject Line “FOR PUBLIC COMMENT.” Written comments will be distributed to the Council Members, noted for the record at the meeting and posted on the City’s official agenda webpage as soon as reasonably practicable (found here: http://diamondbarca.iqm2.com/Citizens/Default.aspx). The public may log into the meeting through this link: https://attendee.gotowebinar.com/register/549651796761651548. Members of the public will be called upon one at a time during the Public Comment portion of the agenda. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. American Disability Act Accommodations: Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act, if you need special assistance to participate in the Council Meeting, please contact the City Clerk’s Office (909) 839- 7010 within 72 hours of the meeting. City Council video recordings with transcription will be available upon request the day following the Council Meeting. The City of Diamond Bar thanks you in advance for taking all precautions to prevent spreading the COVID-19 virus. JANUARY 16, 2024 PAGE 2 ANDREW CHOU Council Member RUTH M. LOW Council Member STEVE TYE Council Member STAN LIU Mayor CHIA TENG Mayor Pro Tem City Manager Dan Fox • City Attorney Omar Sandoval • City Clerk Kristina Santana DIAMOND BAR CITY COUNCIL MEETING RULES Welcome to the meeting of the Diamond Bar City Council. Meetings are open to the public and are broadcast on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47. You are invited to attend and participate. Copies of staff reports or other written documentation relating to agenda items are on file and available for public inspection by contacting the Office of the City Clerk. If requested, the agenda will be made available in an alternative format to a person with disability as required by Section 202 of the Americans with Disabilities Act of 1990. If you have questions regarding an agenda item, please contact the City Clerk at (909) 839-7010 during regular business hours. PUBLIC INPUT Members of the public may address the Council on any item of business on the agenda during the time the item is taken up by the Council. In addition, members of the public may, during the Public Comment period address the Council on any Consent Calendar item or any matter not on the agenda and within the Council’s subject matter jurisdiction. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Public comments must be directed to the City Council. A person who disrupts the orderly conduct of the meeting after being warned by the Mayor or the Mayor’s designee that their behavior is disrupting the meeting, may result in the person being removed from the meeting. INFORMATION RELATING TO AGENDAS AND ACTIONS OF THE COUNCIL Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City’s regular posting locations, on DBTV (on Spectrum Cable Channel 3 and Frontier FiOS television Channel 47) and on the City’s website at www.diamondbarca.gov/agendas. The City Council may take action on any item listed on the agenda. HELPFUL PHONE NUMBERS Copies of agendas, rules of the Council, Video of meetings: (909) 839-7010 Computer access to agendas: www.diamondbarca.gov/agendas General information: (909) 839-7000 Written materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley Dr., Diamond Bar, California, during normal business hours. THIS MEETING IS BEING VIDEO RECORDED AND BY PARTICIPATING VIA TELECONFERENCE, YOU ARE GIVING YOUR PERMISSION TO BE TELEVISED. THIS MEETING WILL BE RE-BROADCAST EVERY SATURDAY AND SUNDAY AT 9:00 A.M. AND ALTERNATE TUESDAYS AT 8:00 P.M. AND IS ALSO AVAILABLE FOR LIVE VIEWING AT HTTPS://ATTENDEE.GOTOWEBINAR.COM/REGISTER/549651796761651548 AND ARCHIVED VIEWING ON THE CITY’S WEB SITE AT WWW.DIAMONDBARCA.GOV. CITY OF DIAMOND BAR CITY COUNCIL AGENDA January 16, 2024 CALL TO ORDER: 6:30 p.m. PLEDGE OF ALLEGIANCE: Mayor INVOCATION: David Zacarias, Worship Leader, Landmark Church ROLL CALL: Chou, Low, Tye, Mayor Pro Tem Teng, Mayor Liu APPROVAL OF AGENDA: Mayor 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: NONE. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: 3. PUBLIC COMMENTS: “Public Comments” is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or other matters of interest not on the agenda that are within the subject matter jurisdiction of the Council. Although the City Council values your comments, pursuant to the Brown Act, members of the City Council or Staff may briefly respond to public comments if necessary, but no extended discussion and no action on such matters may take place. There is a five -minute maximum time limit when addressing the City Council. At this time, the teleconference moderator will ask callers one at a time to give their name and if there is an agenda item number they wish to speak on before providing their comment. JANUARY 16, 2024 PAGE 2 4. SCHEDULE OF FUTURE EVENTS: 4.1 Free Catalytic Converter Etching – January 17, 2024, 9:00 a.m. – 11:00 a.m., Calvary Chapel Golden Springs, 22324 Golden Springs Dr. 4.2 Planning Commission Meeting – January 23, 2024, 6:30 p.m. – 8:00 p.m., online teleconference and City Hall Windmill Room, 21810 Copley Dr. 4.3 Parks & Recreation Commission Meeting – January 25, 2024, 6:30 p.m. – 8:00 p.m., online teleconference and City Hall Windmill Room, 21810 Copley Dr. 4.4 City Council Meeting – February 6, 2024, 6:30 p.m., online teleconference and SCAQMD Main Auditorium, 21865 Copley Dr. 5. CONSENT CALENDAR: All items listed on the Consent Calendar are considered by the City Council to be routine and will be acted on by a single motion unless a Council Member or member of the public request otherwise, in which case, the item will be removed for separate consideration. 5.1 CITY COUNCIL MINUTES OF THE DECEMBER 19, 2023 REGULAR MEETING. 5.1.a December 19, 2023 City Council Regular Meeting Minutes Recommended Action: Approve the December 19, 2023 Regular City Council meeting minutes. Requested by: City Clerk 5.2 RATIFICATION OF CHECK REGISTER DATED DECEMBER 13, 2023 THROUGH JANUARY 9, 2024 TOTALING $2,364,013.03. Recommended Action: Ratify the Check Register. Requested by: Finance Department 5.3 TREASURER'S STATEMENT Recommended Action: Approve the December 2023 Treasurer’s Statement. Requested by: Finance Department JANUARY 16, 2024 PAGE 3 5.4 MASTER AGREEMENT ADMINISTERING AGENCY-STATE AGREEMENT ON STATE-FUNDED PROJECTS WITH THE STATE OF CALIFORNIA (CALTRANS), AND PROGRAM SUPPLEMENT AGREEMENT FOR INTERSECTION SAFETY IMPROVEMENTS PROJECT (CIP# TI24301) FUNDED UNDER THE HIGHWAY SAFETY IMPROVEMENT PROGRAM. Recommended Action: A. Approve, and authorize the Public Works Director/City Engineer to sign, the Master Agreement Administering Agency -State Agreement No. 07-5455S21 and Program Supplement No. 00000A335 accepting $302,850 in grant funds from the Highway Safety Improvement Program (HSIP); B. Adopt Resolution No. 2024-01 authorizing the Public Works Director/City Engineer to sign necessary documents in administering the HSIP Grant; and C. Determine that the approval of the funding agreement is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Article 18, Section 15378(b)(4). Requested by: Public Works Department 6. PUBLIC HEARINGS: 6.1 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ALLOCATIONS FOR FISCAL YEAR 2024/2025. Recommended Action: A. Open the public hearing to receive public testimony; B. Close the public hearing; and C. Adopt Resolution No. 2024-02 approving the Community Development Block Grant Funding Allocations for Fiscal Year 2024/2025. Requested by: Community Development Department 7. COUNCIL CONSIDERATION: 7.1 TRANSMITTAL OF THE FISCAL YEAR 2022/23 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR). Recommended Action: A. Receive and File the Fiscal Year 2022/23 Annual Comprehensive Financial Report; JANUARY 16, 2024 PAGE 4 B. Approve an appropriation of Unassigned General Fund Reserves in the amount of $76,000 to the OPEB Reserve Fund (105); C. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Park & Facility Development Fund (262); and D. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Building Maintenance & Replacement Fund (504). Requested by: Finance Department 7.2 RESULTS OF WASTE HAULER PROCUREMENT. Recommended Action: Receive presentation, deliberate and provide direction to staff. Requested by: City Manager 8. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: 9. ADJOURNMENT: Agenda #: 5.1 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: CITY COUNCIL MINUTES OF THE DECEMBER 19, 2023 REGULAR MEETING. STRATEGIC GOAL: Open, Engaged & Responsive Government RECOMMENDATION: Approve the December 19, 2023 Regular City Council meeting minutes. FINANCIAL IMPACT: None. BACKGROUND/DISCUSSION: Minutes have been prepared and are being presented for approval. PREPARED BY: REVIEWED BY: 5.1 Packet Pg. 7 Attachments: 1. 5.1.a December 19, 2023 City Council Regular Meeting Minutes 5.1 Packet Pg. 8 CITY OF DIAMOND BAR MINUTES OF THE CITY COUNCIL REGULAR MEETING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT/MAIN AUDITORIUM 21865 COPLEY DRIVE, DIAMOND BAR, CA 91765 DECEMBER 19, 2023 CALL TO ORDER: Mayor Liu called the Regular City Council meeting to order at 6:30 p.m. in the South Coast Air Quality Management District Main Auditorium, 21865 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Council Member Low led the Pledge of Allegiance. INVOCATION: Reverend Tino Cordova, Diamond Bar United Church of Christ provided the Invocation. ROLL CALL: Council Members Andrew Chou, Ruth Low, Steve Tye, Mayor Stan Liu Absent: Mayor Pro Tem Chia Yu Teng Staff Present In Person: Dan Fox, City Manager; Ryan McLean, Assistant City Manager; Omar Sandoval, City Attorney; Anthony Santos, Assistant to the City Manager; Jason Jacobsen, Finance Director; Cecilia Arellano, Senior Community Relations Coordinator; Marsha Roa, Community Relations Manager Staff Present Telephonically: David Liu, Public Works Director; Hal Ghafari, Public Works Manager/Assistant City Engineer; Greg Gubman, Community Development Director; Dat Tran, Associate Planner; Amy Haug, Human Resources & Risk Manager; Ryan Wright, Parks and Recreation Director Also Present: Daniel Dail, Lieutenant Diamond Bar/Walnut Station; Stephen Tousey, Captain, Diamond Bar/Walnut Station; Leticia Pacillas, LACFD Community Services Liaison (telephonically) APPROVAL OF AGENDA: Mayor Liu approved the agenda as presented. 1. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 1.1 Through My Lens Photo Contest Winner presentations by Council Members and Diamond Bar Community Foundation President John Forbing. 2. CITY MANAGER REPORTS AND RECOMMENDATIONS: NONE 3. PUBLIC COMMENTS: Cynthia Yu, Diamond Bar Library, announced the return of the Winter Reading Club. Additional information is available at www.lacountylibrary.org 5.1.a Packet Pg. 9 DECEMBER 19, 2023 PAGE 2 CITY COUNCIL Shelley Gentry commented on what she deemed to be glaring errors and issues not discussed in the Royal Vista project’s EIR. Wanda Ewing, Royal Vista Open Space Non-Profit, requested the City Council to comment on the Draft Environmental Impact Report for the Royal Vista Housing project and submit a formal comment in opposition to the proposed project. ACM/McLean stated that no emails were received and no one online wishing to speak during public comments. 4. SCHEDULE OF FUTURE EVENTS: CM/Fox presented the Schedule of Future Events. 5. CONSENT CALENDAR: C/Low moved, C/Chou seconded, to approve the Consent Calendar as presented with the exception of Item 5.6 pulled by C/Low for further discussion. Motion carried 4-0 by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Low, Tye, M/Liu NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Teng 5.1 APPROVED CITY COUNCIL MINUTES: 5.1.1 DECEMBER 5, 2023 REGULAR MEETING. 5.2 RATIFIED CHECK REGISTER DATED NOVEMBER 29, 2023 THROUGH DECEMBER 12, 2023 TOTALING $867,500.72. 5.3 APPROVED NOVEMBER 2023 TREASURER’S STATEMENT. 5.4 RATIFIED MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS TO SERVE ON LOCAL AND REGIONAL BOARDS, COMMISSIONS AND COMMITTEES AND ADOPTED RESOLUTION NO. 2023-36 CONFIRMING APPOINTMENTS TO THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS. 5.5 ADOPTED PROCLAMATION DECLARING DECEMBER 19, 2023 AS ARBOR DAY. ITEMS WITHDRAWN FROM CONSENT CALENDAR: 5.6 APPROVED AND AUTHORIZED THE CITY MANAGER TO SIGN THE LANDSCAPE MAINTENANCE AGREEMENTS WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) AND LANDSCAPE MAINTENANCE SERVICES AGREEMENT WITH LYCOMING, LLC FOR APPROVED LANDSCAPING IMPROVEMENTS 5.1.a Packet Pg. 10 DECEMBER 19, 2023 PAGE 3 CITY COUNCIL WITHIN THE CALTRANS RIGHT-OF-WAY ABUTTING THE BREA CANYON BUSINESS PARK AT 850 SOUTH BREA CANYON ROAD. CM/Fox responded to C/Low’s question regarding jurisdiction and responsibility of the property owner for maintenance costs. C/Low moved, C/Tye seconded, to approve Consent Calendar Item 5.6. Motion carried by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Low, Tye, M/Liu NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: MPT/Teng 7. PUBLIC HEARINGS: NONE 8. COUNCIL CONSIDERATION: NONE 9, COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: C/Chou has enjoyed end of year festivities and activities with his family, attended the well-executed Snow Fest, thanks to staff and volunteers, congratulated the Walnut Valley Education Foundation on a successful Teddy Bear Tea and attended the Sanitation District meeting. C/Low expressed appreciation to the Diamond Bar Community Foundation for their activities and support of City activities including the Photo Contest and Windmill Lighting, thanked staff for their great work over the past 12 months and residents for giving her the privilege of serving on the City Council. She wished everyone a Merry Christmas, Happy Holidays and a smashing 2024. C/Tye agreed with C/Chou that the Snow Fest was a wonderful event with 100 tons of snow, spoke about representing the City at Foothill Transit on their 35 th Anniversary, attended The Country Estates “Making Spirits Bright” and learned that 700 toys, formula, diapers, etc. had been provided to children of families at Twenty-Nine Palms, and attended the JPIA meeting in La Palma where building improvements are underway. He wished everyone a very Merry Christmas and a Happy New Year, Happy Kwanzaa and Happy whatever one celebrates. M/Liu thanked staff and volunteers for an amazing year and turning the Snow Fest into a winter wonderland for kids and families, thanked the community for their kindness, empathy and generosity during the holidays, and thanked everyone for the privilege and honor of serving the community and for making Diamond Bar a better place to live, work and be educated. Happy and safe Holidays to everyone. 5.1.a Packet Pg. 11 DECEMBER 19, 2023 PAGE 4 CITY COUNCIL ADJOURNMENT: With no further business to conduct, M/Liu adjourned the Regular City Council Meeting was adjourned at 7:16 p.m. to January 16, 2024 at 6:30 p.m. Respectfully Submitted: ________________________________ Kristina Santana, City Clerk The foregoing minutes are hereby approved this 16th day of January, 2024. Stan Liu, Mayor 5.1.a Packet Pg. 12 Agenda #: 5.2 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: RATIFICATION OF CHECK REGISTER DATED DECEMBER 13, 2023 THROUGH JANUARY 9, 2024 TOTALING $2,364,013.03. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Ratify the Check Register. FINANCIAL IMPACT: Expenditure of $2,364,013.03. BACKGROUND/DISCUSSION: The City has established the policy of issuing accounts payable checks on a weekly basis with City Council ratification at the next scheduled City Council Meeting. The attached check register containing checks dated December 13, 2023 through January 9, 2024 totaling $2,364,013.03 is being presented for ratification. All payments have been made in compliance with the City’s purchasing policies and procedures , and have been reviewed and approved by the appropriate departmental staff . The attached Affidavit affirms that the check register has been audited and deemed accurate by the Finance Director. PREPARED BY: 5.2 Packet Pg. 13 REVIEWED BY: Attachments: 1. 5.2.a Check Register Affidavit 1-16-2024 2. 5.2.b Check Register 1-16-2024 5.2 Packet Pg. 14 CITY OF DIAMOND BAR CHECK REGISTER AFFIDAVIT The attached listings of demands, invoices, and claims in the form of a check register including checks dated December 13, 2023 through January 9, 2024 has been audited and is certified as accurate. Payments have been allowed from the following funds in these amounts: Signed: __________________________________ Finance Director Jason M. Jacobsen 5.2.a Packet Pg. 15 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10627 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 21250 GOLDEN SPRNGS PED - TC-1 100655 52210 $75.29 CHECK TOTAL $75.29 10680 12/18/2023 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 3564 S BREA CYN RD B- PED - LS-3 100655 52210 $35.49 CHECK TOTAL $35.49 10681 12/18/2023 SOUTHERN CALIFORNIA EDISON SAFETY LIGHTS - 2746 BREA CYN BPED - LS-3 100655 52210 $42.74 CHECK TOTAL $42.74 10682 12/18/2023 SOUTHERN CALIFORNIA EDISON GS-1 - 23331 GOLDEN SPRINGS PED - GS-1 100655 52210 $90.61 CHECK TOTAL $90.61 10683 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 20781 PATHFINDER - TC-1 100655 52210 $109.64 CHECK TOTAL $109.64 10684 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 20439 GOLDEN SPRINGS PED - TC-1 100655 52210 $111.76 CHECK TOTAL $111.76 10685 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 717 GRAND AVE TC-1 100655 52210 $116.07 CHECK TOTAL $116.07 10686 12/18/2023 SOUTHERN CALIFORNIA EDISON GS-1 - 2838 S DBB PED - GS-1 100655 52210 $99.88 CHECK TOTAL $99.88 10687 12/18/2023 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 20791 GOLDEN SPRINGS - TC-1 100655 52210 $132.77 CHECK TOTAL $132.77 10688 12/21/2023 SOUTHERN CALIFORNIA EDISON 633 GRAND (110723-120723) FY23-24 238638 52210 $16.32 CHECK TOTAL $16.32 10689 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 238 21118 $4.81 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 239 21118 $4.81 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 241 21118 $4.81 5.2.b Packet Pg. 16 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 207 21118 $13.94 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 250 21118 $26.85 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 206 21118 $48.85 12/22/2023 TASC FLEX SPENDING MEDICAL/CHILDCARE 12/22/2023 100 21118 $1,846.10 CHECK TOTAL $1,950.17 10690 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 225 21109 $1.88 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 239 21109 $141.34 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 241 21109 $141.34 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 206 21109 $186.55 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 238 21109 $282.68 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 207 21109 $292.34 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 250 21109 $474.49 12/22/2023 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 12/22/2023 100 21109 $18,518.67 CHECK TOTAL $20,039.29 10691 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 225 21110 $19.15 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 239 21110 $160.20 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 241 21110 $160.20 5.2.b Packet Pg. 17 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 238 21110 $228.97 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 206 21110 $554.56 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 207 21110 $611.03 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 250 21110 $2,260.76 12/22/2023 CALPERS PENSION CONTRIBUTION 12/2/23- 12/15/23 & 12/1-31/23 100 21110 $43,040.46 CHECK TOTAL $47,035.33 10692 12/27/2023 ALL CITY MANAGEMENT SERVICES INC CROSSING GUARD SERVICES - 10/29/23-11/11/23 100310 55412 $12,138.48 12/27/2023 ALL CITY MANAGEMENT SERVICES INC CROSSING GUARD SERVICES - 11/12/23-11/25/23 100310 55412 $7,036.80 CHECK TOTAL $19,175.28 10693 12/27/2023 ANCOM GROUP INC INSTRUCTOR PAYMENT - EDUCATION - FALL 23 100520 55320 $270.00 CHECK TOTAL $270.00 10694 12/27/2023 BISHOP JOHN INSTRUCTOR PAYMENT - MARTIAL ARTS - FALL 23 100520 55320 $216.00 CHECK TOTAL $216.00 10695 12/27/2023 BLOOMINGBAY INC SHERIFF VOLUNTEER ON PATROL APPRECIATION DINNER 23 100320 52410 $1,341.06 CHECK TOTAL $1,341.06 10696 12/27/2023 KATHY BREAUX INSTRUCTOR PAYMENT - ART - FALL 23 100520 55320 $58.80 CHECK TOTAL $58.80 10697 12/27/2023 CIVICPLUS LLC MUNI CODE UPDATE 100140 54900 $12.20 CHECK TOTAL $12.20 10698 12/27/2023 COCO SUTZE CHENG INSTRUCTOR PAYMENT - ZUMBA - FALL 23 100520 55320 $120.00 CHECK TOTAL $120.00 10699 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMNET - COMPUTER - FALL 22 100520 55320 $264.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - FALL 22 100520 55320 $132.00 5.2.b Packet Pg. 18 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - WS23 100520 55320 $132.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - WS 23 100520 55320 $132.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - WS 23 100520 55320 $198.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTERS - SUM 23 100520 55320 $423.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - SUM 23 100520 55320 $282.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - SUM 23 100520 55320 $282.00 12/27/2023 CODING MINDS INC INSTRUCTOR PAYMENT - COMPUTER - FALL 23 100520 55320 $120.00 CHECK TOTAL $1,965.00 10700 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $1,600.63 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $2,846.88 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $3,177.00 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $5,861.05 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $12,044.93 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $15,675.54 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $31,945.03 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $40,301.19 12/27/2023 COPP CONTRACTING INC AREA 2 - RES/COLL REHAB PROJ RETENTION 301 29004 $45,878.75 CHECK TOTAL $159,331.00 10701 12/27/2023 CRAFCO INC ROAD MAINT (SYCAMORE PARK) FY23- 24 100655 51250 $2,108.20 CHECK TOTAL $2,108.20 10702 12/27/2023 CT & T CONCRETE PAVING INC AREA 3 RESIDENTIAL ADA CURB RA 301610 56101 $152,608.00 5.2.b Packet Pg. 19 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $152,608.00 10703 12/27/2023 DAVID EVANS AND ASSOCIATES INC LANDSCAPE PLAN CHECK SVCS-9/24 THRU 10/28/23 100 22107 $55.00 12/27/2023 DAVID EVANS AND ASSOCIATES INC LANDSCAPE PLAN CHECK SVCS-9/24 THRU 10/28/23 100 22107 $186.50 12/27/2023 DAVID EVANS AND ASSOCIATES INC LANDSCAPE PLAN CHECK SVCS-9/24 THRU 10/28/23 100 22107 $617.50 12/27/2023 DAVID EVANS AND ASSOCIATES INC LANDSCAPE PLAN CHECK SVCS-9/24 THRU 10/28/23 100 22107 $847.50 CHECK TOTAL $1,706.50 10704 12/27/2023 DEPARTMENT OF JUSTICE LIVESCAN FEES 100220 52510 $96.00 CHECK TOTAL $96.00 10705 12/27/2023 DIANA CHO & ASSOCIATES CBDG ADMINISTRATIVE SERVICES-AREA 3 SEPT 2023 301610 56101 $1,360.00 CHECK TOTAL $1,360.00 10706 12/27/2023 EXTERIOR PRODUCTS CORP US FLAG INSTALL/REMOVAL (VETERAN DAY) FY23-24 100630 56116 $6,487.50 12/27/2023 EXTERIOR PRODUCTS CORP EQUIP MAINT & REPAIR (DBC) FY23-24 100510 52320 $2,271.07 12/27/2023 EXTERIOR PRODUCTS CORP EQUIP MAINT & REPAIR (DBC) FY23-24 100510 52310 $2,500.00 CHECK TOTAL $11,258.57 10707 12/27/2023 FOOTHILL BUILDING MATERIALS INC SANDBAGS (STATION#119) FY23-24 100350 51200 $628.53 12/27/2023 FOOTHILL BUILDING MATERIALS INC SANDBAGS (STATION#121) FY23-24 100350 51200 $628.53 CHECK TOTAL $1,257.06 10708 12/27/2023 FRANCOISE S ZAMBRA INSTRUCTOR PAYMENT - PILATES - FALL 23 100520 55320 $432.00 CHECK TOTAL $432.00 10709 12/27/2023 FUN EXPRESS LLC SUPPLIES FOR WINTER SNOW FEST 100520 51200 $4,308.85 12/27/2023 FUN EXPRESS LLC SUPPLIES FOR HALLOWEEN PARTY 100520 51200 $3,706.43 CHECK TOTAL $8,015.28 10710 12/27/2023 GERALDINE KELLER INSTRUCTOR PAYMENT - CULINARY - FALL 23 100520 55320 $51.00 CHECK TOTAL $51.00 5.2.b Packet Pg. 20 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10711 12/27/2023 WOODS MAINTENANCE SERVICES INC GRAFFITI ABATEMENT NOVEMBER 2023 100430 55540 $3,475.00 CHECK TOTAL $3,475.00 10712 12/27/2023 HEATHER JEN CHANG CONTRACT CLASS INSTRUCTOR- ART 100520 55320 $741.00 CHECK TOTAL $741.00 10713 12/27/2023 HODGMAN ENTERPRISES PRINTING, MALING OF WINTER SPRING 2024 REC GUIDE 100240 52110 $10,944.01 CHECK TOTAL $10,944.01 10714 12/27/2023 HOME DEPOT CREDIT SERVICES CREDIT INVOICE 100630 52320 ($551.13) 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS&EQUIP FY23-24 100630 52320 $306.88 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS&EQUIP FY23-24 100630 52320 $75.03 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS& EQUIP FY23-24 100655 51250 $104.96 12/27/2023 HOME DEPOT CREDIT SERVICES MAINT TOOLS &EQUIP FY23-24 100630 52320 $133.36 CHECK TOTAL $69.10 10715 12/27/2023 HUMANE SOCIETY OF POMONA VALLEY INC IVHS ANIMAL CONTROL SERVICES IN NOVEMBER 100340 55404 $38,134.67 CHECK TOTAL $38,134.67 10716 12/27/2023 JAVIER DJEU INSTRUCTOR PAYMENT - PICKLEBALL - FALL 23 100520 55320 $1,286.40 CHECK TOTAL $1,286.40 10717 12/27/2023 JNA EVENTS SERVICES LLC SENIOR DANCE CATERING 100520 55310 $6,563.25 CHECK TOTAL $6,563.25 10718 12/27/2023 JOE A GONSALVES & SON INC STATE LOBBYIST - PROF. SERVICES IN JAN. 2024 100130 54900 $2,500.00 CHECK TOTAL $2,500.00 10719 12/27/2023 KEVIN D JONES PS -SR-57/60 CONFLUENCE PROJ ADVOCACY - NOV 2023 100615 54400 $4,000.00 CHECK TOTAL $4,000.00 10720 12/27/2023 KIMBERLY DOWNEY ESMOND CONTRACT CLASS INSTRUCTOR - YOUTH DANCE 100520 55320 $1,065.60 CHECK TOTAL $1,065.60 10721 12/27/2023 LEACH ROOFING COMPANY CDBG HOME IMP PROJECT-23720 BOWER CASCADE 225440 54900 $2,008.00 5.2.b Packet Pg. 21 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $2,008.00 10722 12/27/2023 LEWIS ENGRAVING INC OUTGOING MAYOR PHOTO NAME PLATE 100140 52140 $21.25 12/27/2023 LEWIS ENGRAVING INC NAME BADGE 100140 52140 $17.95 CHECK TOTAL $39.20 10723 12/27/2023 LOCAL AGENCY ENGINEERING ASSOCIATES INC PS - ENGINEERING STAFF AUGMENTATION - NOV 2023 100610 54400 $647.50 12/27/2023 LOCAL AGENCY ENGINEERING ASSOCIATES INC PS - STAFF AUGMENTATION - NOV 2023 207615 54400 $2,070.00 CHECK TOTAL $2,717.50 10724 12/27/2023 LOOMIS COURIER SERVICES - NOVEMBER 2023 100210 54900 $729.78 12/27/2023 LOOMIS COURIER SERVICES - NOVEMBER 2023 100510 54900 $729.78 CHECK TOTAL $1,459.56 10725 12/27/2023 LOS ANGELES COUNTY PUBLIC WORKS FY22-23 CATCH BASIN CLEANOUT(070123-063023) 201655 55530 $7,985.58 12/27/2023 LOS ANGELES COUNTY PUBLIC WORKS CS - INDUSTRIAL SERVICES - NOV 2023 100610 55550 $2,113.84 CHECK TOTAL $10,099.42 10726 12/27/2023 LOS ANGELES COUNTY SHERIFF'S DEPT FY2023-24 GEN LAW ENFORCEMENT SERVICES 10-2023 100310 55400 $627,720.11 CHECK TOTAL $627,720.11 10727 12/27/2023 LOWE'S BUSINESS ACCOUNT SMALL TOOLS & EQUIPMENT FY23-24 100630 52320 $43.80 12/27/2023 LOWE'S BUSINESS ACCOUNT SMALL TOOLS & EQUIPMENT FY23-24 100630 51300 $143.41 12/27/2023 LOWE'S BUSINESS ACCOUNT SMALL TOOLS & EQUIPMENT FY23-24 100620 51300 $204.96 CHECK TOTAL $392.17 10728 12/27/2023 NICHOLS CONSULTING ENGINEERS, CHTD AREA 3 RES/COLL & CURB RAMP DESIGN - THRU 12/01/23 301610 56101 $35,532.62 CHECK TOTAL $35,532.62 10729 12/27/2023 NINYO & MOORE INC GEOTECHNICAL INVESTIGATION FOR 3000 BLOCK OF DBB 100615 54430 $926.25 12/27/2023 NINYO & MOORE INC PR2023-1983 / 900 N DIAMOND BAR BLVD- GEOTECH SVCS 100 22109 $866.25 12/27/2023 NINYO & MOORE INC PR2023-1983 / 900 N DIAMOND BAR BLVD- GEOTECH SVCS 100 22109 $2,983.75 5.2.b Packet Pg. 22 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 12/27/2023 NINYO & MOORE INC PR2023-1983 / 900 N DIAMOND BAR BLVD- GEOTECH SVCS 100 22109 $1,935.00 CHECK TOTAL $6,711.25 10730 12/27/2023 NORTH AMERICAN YOUTH ACTIVITIES LLC CONTRACT CLASS INSTRUCTOR-YOUTH SOCCER 100520 55320 $1,125.00 CHECK TOTAL $1,125.00 10731 12/27/2023 ONE TIME PAY VENDOR ANNETTE WOODSON RECREATION REFUND 100 20202 $20.00 CHECK TOTAL $20.00 10732 12/27/2023 ONE TIME PAY VENDOR BILLY FERMIN FACILITY DEPOSIT REFUND 100 20202 $100.00 CHECK TOTAL $100.00 10733 12/27/2023 ONE TIME PAY VENDOR DR. SAMIR BATNIJI FACILITY REFUND 100 20202 $500.00 CHECK TOTAL $500.00 10734 12/27/2023 ONE TIME PAY VENDOR GLORIA BAHENA FACILITY REFUND 100 20202 $500.00 CHECK TOTAL $500.00 10735 12/27/2023 ONE TIME PAY VENDOR KATHRYN COUGHENOUR FACILITY REFUND 100 20202 $500.00 CHECK TOTAL $500.00 10736 12/27/2023 ONE TIME PAY VENDOR KELLER WILLIAMS SIGNATURE REALTY FACILITY REFUND 100 20202 $1,249.64 CHECK TOTAL $1,249.64 10737 12/27/2023 ONE TIME PAY VENDOR LETICIA CERVANTEZ FACILITY DEPOSIT REFUND 100 20202 $100.00 CHECK TOTAL $100.00 10738 12/27/2023 ONE TIME PAY VENDOR LINET MENESES FACILITY REFUND 100 20202 $901.50 CHECK TOTAL $901.50 10739 12/27/2023 ONE TIME PAY VENDOR MARIANO BORBON RECREATION PROGRAM REFUND 100 20202 $40.00 CHECK TOTAL $40.00 10740 12/27/2023 ONE TIME PAY VENDOR MIN JO FACILITY REFUND 100 20202 $200.00 CHECK TOTAL $200.00 10741 12/27/2023 ONE TIME PAY VENDOR ORALIA MACIAS FACILITY REFUND 100 20202 $200.00 CHECK TOTAL $200.00 10742 12/27/2023 ONE TIME PAY VENDOR WALNUT VALLEY FACILITY REFUND 100 20202 $750.00 5.2.b Packet Pg. 23 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT EDUCATION FOUNDATION CHECK TOTAL $750.00 10743 12/27/2023 ONE TIME PAY VENDOR AMY HAUG REIMB-HOLIDAY LUNCHEON 100220 52520 $197.31 CHECK TOTAL $197.31 10744 12/27/2023 ONE TIME PAY VENDOR SUPER DIAMOND AGE SENIOR CLUB SENIOR CLUB INSURANCE REIMBURSEMENT 225440 54900 $1,027.03 CHECK TOTAL $1,027.03 10745 12/27/2023 ONE TIME PAY VENDOR - CND REFUND EDDIE W NG PR2023-0001871/232 N PINTADO DR 100 22105 $250.00 CHECK TOTAL $250.00 10746 12/27/2023 PAPER RECYCLING & SHREDDING PAPER SHREDDING – DEC 2023 250170 55000 $105.00 CHECK TOTAL $105.00 10747 12/27/2023 PHOTO ART INDUSTRIES PHOTO FOR OUTGOING MAYOR 100110 52130 $268.30 CHECK TOTAL $268.30 10748 12/27/2023 REGIONAL TAP SERVICE CENTER FOOTHILL PASSES - NOVEMBER 2023 206650 55610 $169.86 12/27/2023 REGIONAL TAP SERVICE CENTER FOOTHILL PASSES - NOVEMBER 2023 206650 55620 $679.44 CHECK TOTAL $849.30 10749 12/27/2023 REGISTRAR-RECORDER/COUNTY CLERK ELECTRONIC RECORDING 100140 54900 $20.00 CHECK TOTAL $20.00 10750 12/27/2023 REINBERGER CORPORATION BUSINESS CARD 100140 52110 $86.51 12/27/2023 REINBERGER CORPORATION BUSINESS CARDS FOR COUNCIL MEMBERS 100140 52110 $423.77 CHECK TOTAL $510.28 10751 12/27/2023 RKA CONSULTING GROUP BUILDING AND SAFETY SERVICES OCTOBER 2023 100420 55100 $46,280.08 CHECK TOTAL $46,280.08 10752 12/27/2023 SIMPSON ADVERTISING INC TRAFFIC DETOUR MAP 100240 54900 $595.00 12/27/2023 SIMPSON ADVERTISING INC DBC 20TH ANNIVERSARY LOGO 100520 54900 $695.00 12/27/2023 SIMPSON ADVERTISING INC LAYOUT AND DESIGN OF JAN 2024 CITY NEWSLETTER 100240 54900 $1,575.00 5.2.b Packet Pg. 24 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $2,865.00 10753 12/27/2023 SO COAST AIR QUALITY MGT DISTRICT FACILITY LEASE IN JAN. 2024 100130 52302 $2,688.58 CHECK TOTAL $2,688.58 10754 12/27/2023 SOCIAL VOCATIONAL SERVICES LITTER AND WEED REMOVAL (RIGHT OF WAY-NOV) FY23-24 100645 55528 $3,113.00 CHECK TOTAL $3,113.00 10755 12/27/2023 SSN & S INC VEHICLE MAINT (LIC#1479429) FY23-24 502430 52312 $211.91 CHECK TOTAL $211.91 10756 12/27/2023 SWRCB ACCOUNTING OFFICE FY23-24 NPDES ANNUAL PERMIT FEE (MS4) 201610 54200 $20,085.00 CHECK TOTAL $20,085.00 10757 12/27/2023 THE GAS COMPANY CITYHALL (111023-121123) FY23-24 100620 52215 $15.29 12/27/2023 THE GAS COMPANY HERITAGE PARK (111323-121223) FY23- 24 100630 52215 $205.23 12/27/2023 THE GAS COMPANY DIAMOND BAR CENTER (111423- 121323) FY23-24 100510 52215 $1,820.99 CHECK TOTAL $2,041.51 10758 12/27/2023 TORTI GALLAS AND PARTNERS INC TOWN CENTER SPECIFIC PLAN NOVEMBER 2023 103410 54900 $32,154.75 CHECK TOTAL $32,154.75 10759 12/27/2023 TRIANGLE SPORTS INC YOUTH BASKETBALL JERSEYS 100520 51200 $3,322.11 CHECK TOTAL $3,322.11 10760 12/27/2023 TRIFYTT SPORTS LLC CONTRACT CLASS INSTRUCTOR-YOUTH SPORTS 100520 55320 $1,642.80 CHECK TOTAL $1,642.80 10761 12/27/2023 ULINE INC BEV CNT GRT/ 23300 GOLDEN SPRINGS DR 254180 56116 $1,954.25 CHECK TOTAL $1,954.25 10762 12/27/2023 ULINE INC DIAMOND BAR CENTER SUPPLIES 100510 51200 $42.67 CHECK TOTAL $42.67 10763 12/27/2023 UNITED SITE SERVICES OF CALIFORNIA INC RESTROOM RENTALS FOR WINTER SNOW FEST 100520 55300 $1,505.63 CHECK TOTAL $1,505.63 5.2.b Packet Pg. 25 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10764 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (CITYHALLW 110123-113023) NOV FY23-24 100620 52220 $908.62 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D38W 110123-113023) NOV FY23-24 238638 52220 $11,258.70 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D38RW 110123-113023) NOV FY23-24 238638 52220 $1,795.03 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D39W 110123-113023) NOV FY23-24 239639 52220 $7,640.88 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (D41W 110123-113023) OCT FY23-24 241641 52220 $6,825.96 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (DBCW 110123-113023) NOV FY23-24 100510 52220 $477.16 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (PARKSW 110123-113023) NOV FY23-24 100630 52220 $21,898.55 12/27/2023 WALNUT VALLEY WATER DISTRICT WVWD (PARKSRW 110123-113023) NOV FY23-24 100630 52220 $1,218.95 CHECK TOTAL $52,023.85 10765 12/27/2023 WANSEO CHUNG INSTRUCTOR PAYMENT - YOGA - FALL 23 100520 55320 $504.00 CHECK TOTAL $504.00 10766 12/27/2023 YUNEX LLC CIP TM23201 BBS&CCTV PRJ 301610 56102 $865,720.00 12/27/2023 YUNEX LLC TS MAINT - REPAIR - DBB/SPROUTS 207650 55536 $1,111.02 12/27/2023 YUNEX LLC TS MAINTENANCE - SEPT 2023 207650 55536 $5,540.00 12/27/2023 YUNEX LLC TS MAINT/CALL-OUTS - SEPT 2023 207650 55536 $5,226.58 12/27/2023 YUNEX LLC TS MAINT REPAIR - SUNSET XING/GOLDEN SPRINGS 207650 55536 $7,187.02 12/27/2023 YUNEX LLC TS MAINT REPAIR - GLDN SPRGS/PROSPECTORS 207650 55536 $4,968.56 12/27/2023 YUNEX LLC TS MAINT REPAIR - GLDN SPRGS/LEMON 207650 55536 $3,802.73 CHECK TOTAL $893,555.91 10767 1/2/2024 AMERICOMP TONER & REPAIR LLC PRINTER MAINTENANCE - PAPER TRAY AND TONER 100230 51200 $317.99 CHECK TOTAL $317.99 10768 1/2/2024 BONTERRA PSOMAS MITIGATION MONITORING-TRACT53670 10/28/22-3/30/23 100 22107 $3,147.53 CHECK TOTAL $3,147.53 5.2.b Packet Pg. 26 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10769 1/2/2024 COLLEY AUTO CARS INC VEHICLE MAINT (LIC#1407074) FY23-24 502655 52312 $199.00 CHECK TOTAL $199.00 10770 1/2/2024 DAPEER ROSENBLIT & LITVAK LLP CODE ENF CITY PROSECUTOR OCTOBER 2023 100120 54024 $4,881.20 CHECK TOTAL $4,881.20 10771 1/2/2024 EXTERIOR PRODUCTS CORP MAINTENANCE OPERATING SUPPLIES 100630 52320 $577.50 1/2/2024 EXTERIOR PRODUCTS CORP MAINTENANCE OPERATING SUPPLIES 100620 52320 $684.87 CHECK TOTAL $1,262.37 10772 1/2/2024 FEDERAL EXPRESS CORPORATION FEES FOR OVERNIGHT CHECK DELIVERY 100510 51200 $43.52 CHECK TOTAL $43.52 10773 1/2/2024 FRONTIER COMMUNICATIONS CORP SUMMARY BILL - INTERNET/CITY HALL - DEC 2023 100230 54030 $775.00 CHECK TOTAL $775.00 10774 1/2/2024 GATEWAY CORP CENTER ASSOC ASSOC DUES (JAN 2024) FY23-24 100620 52400 $2,615.19 CHECK TOTAL $2,615.19 10775 1/2/2024 GO LIVE TECHNOLOGY INC PS/PROJECT MGMT - SOLAR APP - NOV 2023 503230 56135 $360.00 CHECK TOTAL $360.00 10776 1/2/2024 GOVCONNECTION INC ANNUAL RENEWAL - VERITAS 100230 52314 $6,820.00 1/2/2024 GOVCONNECTION INC IPAD FOR NEW CITY STAFF 100230 56100 $873.98 CHECK TOTAL $7,693.98 10777 1/2/2024 HINDERLITER DE LLAMAS & ASSOCIATES CONTRACT SVCS - SALES TAX OCT-DEC 2023 100210 54900 $181.37 1/2/2024 HINDERLITER DE LLAMAS & ASSOCIATES CONTRACT SVCS - SALES TAX OCT-DEC 2023 100210 54010 $900.00 CHECK TOTAL $1,081.37 10778 1/2/2024 LA COUNTY ASSESSOR OFFICE SBF ABSTRACT - NOV 2023 100230 52314 $50.00 CHECK TOTAL $50.00 10779 1/2/2024 LOS ANGELES COUNTY PUBLIC WORKS SUMP PUMP MAINT(SYCAMORECYNPARK 100123- 110923)FY23 100630 52320 $4,495.21 CHECK TOTAL $4,495.21 5.2.b Packet Pg. 27 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10780 1/2/2024 MOBILE RELAY ASSOCIATES INC REPEATER SERVICES FOR EMERGENCY PREPARDNESS IN JAN 100350 52300 $78.75 CHECK TOTAL $78.75 10781 1/2/2024 NETWORK PARATRANSIT SYSTEMS INC FY2023-24 DIAMOND RIDE SR TRANSP. - NOV 2023 206650 55560 $19,520.75 CHECK TOTAL $19,520.75 10782 1/2/2024 PRINTING & MAILING SERVICES INC PRINTING AND BINDING OF CITY'S 2024 CALENDAR 100240 52110 $7,074.27 CHECK TOTAL $7,074.27 10783 1/2/2024 PUBLIC STORAGE #23051 PARKS AND RECREATION OFF SITE STORAGE UNITS 100520 52302 $798.00 1/2/2024 PUBLIC STORAGE #23051 PARKS AND RECREATION OFF SITE STORAGE UNITS 100520 52302 $836.00 CHECK TOTAL $1,634.00 10784 1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523) FY23-24 502430 52312 $47.99 1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523) FY23-24 502130 52312 $66.28 1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523) FY23-24 502620 52312 $330.16 1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523) FY23-24 502655 52312 $650.02 1/2/2024 SC FUELS FLEET VEHICLE FUEL (120123-121523) FY23-24 502630 52312 $764.21 CHECK TOTAL $1,858.66 10785 1/2/2024 SPECTRUM BUSINESS CABLE TV - DBC - DEC 2023 100230 54030 $127.15 CHECK TOTAL $127.15 10786 1/2/2024 THE COMDYN GROUP INC GIS SUPPORT - 11/18/23-12/15/23 100230 54900 $3,971.50 CHECK TOTAL $3,971.50 10787 1/2/2024 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD - LLAD #38 - RESO 2023-21 238638 52160 $1,466.83 1/2/2024 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD - LLAD #39 - RESO 2023-22 239639 52160 $2,551.85 CHECK TOTAL $4,018.68 10788 1/2/2024 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD - LLAD #41 - RESO 2023-23 241641 52160 $1,573.79 5.2.b Packet Pg. 28 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $1,573.79 10789 1/2/2024 UNITED RECORDS MANAGEMENT INC OFF-SITE STORAGE - BACK-UP TAPES - NOV 2023 100230 55000 $594.00 CHECK TOTAL $594.00 10790 1/2/2024 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (DBC) FY23-24 100510 51210 ($77.01) 1/2/2024 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (PARKS) FY23-24 100630 51200 $184.04 1/2/2024 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES 100510 51210 $865.79 CHECK TOTAL $972.82 10791 1/2/2024 WEST COAST ARBORISTS INC TREE MAINT D41 (111623-113023) FY23- 24 241641 55522 $7,210.35 CHECK TOTAL $7,210.35 10792 1/2/2024 WISCONSIN QUICK LUBE INC VEHICLE MAINTENANCE (LIC#1479428) FY23-24 502430 52312 $143.44 CHECK TOTAL $143.44 10793 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SVCS - NOVEMBER 2023 100120 54020 $1,716.00 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - NOVEMBER 2023 100120 54020 $11,061.60 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - NOVEMBER 2023 100120 54020 $79.20 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - NOVEMBER 2023 100120 54020 $211.20 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - NOVEMBER 2023 100120 54020 $1,029.60 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - NOVEMBER 2023 100120 54020 $26.40 1/2/2024 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - NOVEMBER 2023 100120 54020 $580.80 CHECK TOTAL $14,704.80 10805 1/2/2024 ABOUND FOOD CARE FISCAL YEAR 23-24 FOOD RECOVERY SERVICES 250170 54900 $1,632.25 CHECK TOTAL $1,632.25 10806 1/2/2024 LINGO TELECOM LLC CITYWIDE ANALOG PHONE SYSTEM - DEC 2023 100230 52200 $2,310.48 CHECK TOTAL $2,310.48 5.2.b Packet Pg. 29 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 10807 1/2/2024 DIAMOND BAR WOMAN'S CLUB FY 23/24 9TH ANNUAL CASINO NIGHT - TABLE FOR 10 101110 52600 $1,000.00 CHECK TOTAL $1,000.00 10808 1/2/2024 RETAIL MARKETING SERVICES INC NOV 2023 CART SERVICES 250170 55000 $45.00 CHECK TOTAL $45.00 10809 1/2/2024 TYLER TECHNOLOGIES INC COMPUTER SOFTWARE - ELM PROJECT - 11/7/23-11/9/23 503230 56135 $6,200.00 CHECK TOTAL $6,200.00 10810 1/2/2024 ULINE INC BEV CNT GRT/ 1174 FLINTLOCK RD 253180 51300 $48.47 CHECK TOTAL $48.47 10811 1/2/2024 VERIZON WIRELESS WIRELESS PHONE SERVICE - 11/17/23 - 12/16/23 100230 52200 $2,095.93 CHECK TOTAL $2,095.93 10812 1/2/2024 VERMONT SYSTEMS INC WEBTRAC INTERFACE - INITIAL SET-UP MEETING 100230 52314 $175.00 CHECK TOTAL $175.00 GRAND TOTAL $2,364,013.03 5.2.b Packet Pg. 30 Agenda #: 5.3 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: TREASURER'S STATEMENT STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: Approve the December 2023 Treasurer’s Statement. FINANCIAL IMPACT: None. BACKGROUND/DISCUSSION: Consistent with City policy, the Finance Department presents the monthly Treasurer’s Statement to the City Council for review and approval. This statement shows the cash balances with a breakdown of various investment accounts and the yield to maturity from investments. This statement also includes an investment portfolio management report which details the activities of investments. All investments have been made in accordance with the City’s Investment Policy. PREPARED BY: REVIEWED BY: 5.3 Packet Pg. 31 Attachments: 1. 5.3.a Treasurer's Cash Report - Dec 2023 2. 5.3.b Treasurer's Portfolio & Certification - Dec 2023_FINAL 5.3 Packet Pg. 32 CASH & INVESTMENT BALANCES Cash Funds General Account $2,862,762.44 Payroll Account $0.00 Change Fund - General Fund $600.00 Petty Cash Account $500.00 Cash With Fiscal Agent (US Bank 2021 Bonds)$1,519.92 Total Cash Funds $2,865,382.36 City & LAIF Invested Funds (Book Value): Local Agency Investment Fund $2,452,433.53 City-Managed Fixed-Income Securities (0-5 year maturity) $66,364,969.18 Total Investment Funds (Book Value)$68,817,402.71 Fiscal Year-To-Date Effective Rate of Return (City Funds & LAIF)3.70%(6 months) Fiscal YTD Interest Earnings (City Funds & LAIF)$1,287,081.95 (6 months) FY 2023-24 Budgeted Investment Earnings (City Funds & LAIF)$987,450.00 (12 months) Invested Funds With OPEB Trust (Managed by CalPERS/State Street) $771,350.08 Historical rate of return as of 9/30/2023 (since 2016, 7.25 yrs)1.51% OPEB Trust Fiscal Year-To-Date Unrealized Gain/(Loss)$37,913.63 (6 months) GRAND TOTAL - CASH & INVESTMENTS $72,454,135.15 CITY OF DIAMOND BAR - CITY TREASURER'S REPORT AS OF DECEMBER 31, 2023 5.3.a Packet Pg. 33 INVESTMENTS BOOK VALUE PERCENT OF PORTFOLIO TERM DAYS TO MATURITY YIELD TO MATURITY Federal Credit Union CD $10,674,000.00 15.51%1,381 1,029 4.099% Local Agency Investment Fund $2,452,433.53 3.56%1 1 3.843% Corporate Notes $453,817.57 0.66%1,638 1,268 5.000% Federal Agency Coupon Securities $12,980,442.56 18.86%1,082 606 3.961% Federal Agency Discount-Amortizing $1,989,557.78 2.89%92 36 5.406% Treasury Coupon Securities $11,964,479.02 17.39%1,116 517 2.664% Federal Agency Callable $9,498,885.11 13.80%1,528 365 2.561% Certificates of Deposit-Banks $3,958,877.40 5.75%1,523 613 2.146% Municipal Bonds $2,023,126.80 2.94%1,565 986 3.673% Money Market Fund $12,821,782.94 18.63%1 1 5.300% Total Investments and Averages $68,817,402.71 100.00%971 488 3.745% TOTAL INTEREST EARNED I certify that this report accurately reflects all City pooled investments Daniel Fox and is in conformity with the investment policy of the City of Diamond Bar City Treasurer approved by City Council and on file in the City Clerk's office. The investment program herein provides sufficient cash flow liquidity to meet the next six months estimated expenditures. $215,576.23 $1,287,081.95 CITY OF DIAMOND BAR INVESTMENT PORTFOLIO SUMMARY REPORT December 31, 2023 MONTH ENDING FISCAL YEAR-TO-DATE December 31, 2023 2023-2024 5.3.b Packet Pg. 34 City of Diamond Bar Portfolio Management December 31, 2023 City of Diamond Bar 21810 Copley Drive Diamond Bar, CA (909)839-7053 Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM/C Federal Credit Union CD 10,674,000.00 1,38115.51 4.0991,02910,608,725.4610,674,000.00 Local Agency Investment Funds 2,452,433.53 13.56 3.84312,415,226.432,452,433.53 Corporate Notes 453,817.57 1,6380.66 5.0001,268453,817.57500,000.00 Federal Agency Coupon Securities 12,980,442.56 1,08218.86 3.96160612,976,212.6113,000,000.00 Federal Agency Disc. -Amortizing 1,989,557.78 922.89 5.406361,989,557.782,000,000.00 Treasury Coupon Securities 11,964,479.02 1,11617.39 2.66451711,765,746.8812,000,000.00 Federal Agency Callable 9,498,885.11 1,52813.80 2.5613659,136,023.009,500,000.00 Certificate of Deposit 3,958,877.40 1,5235.75 2.1466133,816,601.643,959,000.00 Municipal Bonds 2,023,126.80 1,5652.94 3.6769861,988,430.652,145,000.00 Money Market Fund 12,821,782.94 118.63 5.300112,821,782.9412,821,782.94 68,817,402.71 100.00%Investments 67,972,124.9669,052,216.47 971 488 3.745 Current Year December 31 215,576.23 Fiscal Year To Date 1,287,081.95 Average Daily Balance Effective Rate of Return 68,220,890.39 69,066,671.74 3.70%3.72% Total Earnings Month Ending __________________________________________________ ____________________ Jason M. Jacobsen, Finance Director Portfolio POOL AP Reporting period 12/01/2023-12/31/2023 Run Date: 01/11/2024 - 07:37 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.6.1 01/11/2024 5.3.b Packet Pg. 35 Days to Maturity Page 1 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2023 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Diamond Bar YTM/C TermCUSIPInvestment # Purchase Date Federal Credit Union CD 203Apple Bank For Savings10443 248,000.00 248,000.00 07/22/20243.20007/22/2022 248,000.00 73103784JTK0 3.200 203Baxter Credit Union10444 248,000.00 248,000.00 07/22/20243.15007/22/2022 248,000.00 73107181JAG9 3.150 207Utah Community Fed Cr Union10454 248,000.00 248,000.00 07/26/20243.15007/27/2022 248,000.00 730917352AA4 3.150 392A+ FEDERAL CU10528 249,000.00 249,000.00 01/27/20254.70001/27/2023 249,000.00 73100224TAL0 4.700 504American Express Bank10419 246,000.00 246,000.00 05/19/20253.10005/18/2022 244,052.66 1,09702589ACS9 3.100 515US ALLIANCE FED CREDIT UNION10424 249,000.00 249,000.00 05/30/20253.10005/31/2022 246,987.08 1,09590352RCM5 3.100 546CALIFORNIA CREDIT UNION10621 243,000.00 243,000.00 06/30/20255.10012/28/2023 243,000.00 550130162BL3 5.100 553Sallie Mae Bank10461 248,000.00 248,000.00 07/07/20253.40007/06/2022 248,000.00 1,097795451BQ5 3.400 577GESA CREDIT UNION10570 248,000.00 248,000.00 07/31/20255.50007/31/2023 248,000.00 73137424PAG9 5.500 603Connexus CU10474 248,000.00 248,000.00 08/26/20253.50008/26/2022 248,000.00 1,09620825WBC3 3.500 623USF FCU10550 249,000.00 249,000.00 09/15/20255.05003/15/2023 249,000.00 91590353EBC6 5.050 634UNIVERSITY CREDIT UNION10492 249,000.00 249,000.00 09/26/20254.00009/26/2022 249,000.00 1,096914242AA0 4.000 652CHIEF FINANCIAL FCU10502 249,000.00 249,000.00 10/14/20254.60010/12/2022 249,000.00 1,09816863LAE5 4.600 662VERIDIAN CU10500 249,000.00 249,000.00 10/24/20254.50010/24/2022 249,000.00 1,09692348DAA7 4.500 757Community Commerce Bank10440 248,000.00 248,000.00 01/27/20263.05007/27/2022 248,000.00 1,28020367GBD0 3.050 757LIBERTY FIRST CU10530 249,000.00 249,000.00 01/27/20264.50001/27/2023 249,000.00 1,096530520AC9 4.500 763COCA-COLA FCU10529 249,000.00 249,000.00 02/02/20264.60001/31/2023 249,000.00 1,09819123RAA0 4.600 787GREENSTATE CREDIT UNION10255 248,000.00 248,000.00 02/26/20260.65002/26/2021 224,875.74 1,82639573LAV0 0.650 802MID CAROLINA CU10549 249,000.00 249,000.00 03/13/20264.85003/13/2023 249,000.00 1,09659524LAA4 4.850 812TECHNOLOGY CU10551 249,000.00 249,000.00 03/23/20265.00003/23/2023 249,000.00 1,09687868YAL7 5.000 959PIMA FEDERAL CREDIT10575 248,000.00 248,000.00 08/17/20265.30008/17/2023 248,000.00 1,096722000AC0 5.300 994HEALTHCARE SYSTEMS FCU10496 249,000.00 249,000.00 09/21/20263.60009/21/2022 249,000.00 1,46142228LAH4 3.600 1,017VCC BANK10499 249,000.00 249,000.00 10/14/20264.25010/14/2022 249,000.00 1,46191823MBE4 4.250 1,064LAFAYETTE FCU10606 248,000.00 248,000.00 11/30/20265.25011/30/2023 248,000.00 1,09650625LBR3 5.250 1,080America's Credit Union10402 248,000.00 248,000.00 12/16/20261.35012/16/2021 227,139.23 1,82606251A3K4 1.350 1,093Medallion Bank10622 248,000.00 248,000.00 12/29/20264.50012/29/2023 248,000.00 1,09658404DUA7 4.500 1,127State Bank of India10410 248,000.00 248,000.00 02/01/20271.75001/31/2022 230,670.75 1,827856285E98 1.750 1,298Toyota Financial SGS Bank10442 248,000.00 248,000.00 07/22/20273.40007/22/2022 248,000.00 1,82689235MNT4 3.400 1,303Capital One Bank USA10453 248,000.00 248,000.00 07/27/20273.50007/27/2022 248,000.00 1,82614042THZ3 3.500 1,353LUMINATE BANK10487 249,000.00 249,000.00 09/15/20273.40009/15/2022 249,000.00 1,82655026MAE5 3.400 1,359AUSTIN TELCO FCU10495 249,000.00 249,000.00 09/21/20273.80009/21/2022 249,000.00 1,826052392BT3 3.800 1,368JEANNE D'ARC CREDIT UNION10491 249,000.00 249,000.00 09/30/20273.80009/30/2022 249,000.00 1,826472207AE9 3.800 1,368BANK OF THE VALLEY NE10494 249,000.00 249,000.00 09/30/20274.10009/30/2022 249,000.00 1,82606543PDA0 4.100 1,528Alaska USA FCU10547 249,000.00 249,000.00 03/08/20284.60003/08/2023 249,000.00 1,827011852AE0 4.600 1,668TTCU FED CU10564 248,000.00 248,000.00 07/26/20285.00007/26/2023 248,000.00 1,82789854LAD5 5.000 1,701LINCOLN PARK COMMUNITY BANK10571 248,000.00 248,000.00 08/28/20285.00008/28/2023 248,000.00 1,827534574AC2 5.000 1,712PINAL COUNTY FED CU10578 248,000.00 248,000.00 09/08/20285.70009/08/2023 248,000.00 1,82772221MAA1 5.700 1,757Empower FED Credit Union10596 248,000.00 248,000.00 10/23/20285.10010/23/2023 248,000.00 1,827291916AG9 5.100 Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.1 5.3.b Packet Pg. 36 Days to Maturity Page 2 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2023 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Diamond Bar YTM/C TermCUSIPInvestment # Purchase Date Federal Credit Union CD 1,764UTAH FIRST CD10589 248,000.00 248,000.00 10/30/20285.10010/30/2023 248,000.00 1,82791739JAD7 5.100 1,764WORKERS FCU10590 248,000.00 248,000.00 10/30/20285.20010/30/2023 248,000.00 1,82798138MCA6 5.200 1,787TRUSTSTAR BANK10604 248,000.00 248,000.00 11/22/20284.75011/22/2023 248,000.00 1,82789839KAD7 4.750 1,795ROCKLAND FCU10607 248,000.00 248,000.00 11/30/20285.00011/30/2023 248,000.00 1,82777357DAB4 5.000 1,822Wells Fargo10617 248,000.00 248,000.00 12/27/20284.10012/27/2023 248,000.00 1,827949764JY1 4.100 10,674,000.00 1,38110,608,725.4610,674,000.0010,014,354.84Subtotal and Average 1,029 4.099 Local Agency Investment Funds 1Local Agency Investment Fund10028 2,452,433.53 2,452,433.53 3.8432,415,226.43 1LAIF 3.843 2,452,433.53 12,415,226.432,452,433.532,568,562.56Subtotal and Average 1 3.843 Corporate Notes 1,268Bank of America Corp.10515 500,000.00 453,817.57 06/22/20272.00012/27/2022 453,817.57 1,63806048WR36 5.000 453,817.57 1,638453,817.57500,000.00453,299.55Subtotal and Average 1,268 5.000 Federal Agency Coupon Securities 51Federal Home Loan Bank10534 500,000.00 499,931.06 02/21/20245.00002/22/2023 499,931.06 3643130AV2E1 5.103 58Federal Home Loan Bank10416 2,000,000.00 1,999,326.59 02/28/20242.12503/29/2022 1,974,200.00 7013130ARHG9 2.344 93Federal Farm Credit Bank10624 500,000.00 494,696.47 04/03/20241.20012/21/2023 494,696.47 1043133ENMZ0 5.400 179Federal Home Loan Bank10460 1,000,000.00 998,342.18 06/28/20242.75007/08/2022 998,342.18 7213130ASDS5 3.099 256Federal Home Loan Bank10483 750,000.00 746,993.54 09/13/20243.50009/22/2022 746,993.54 7223130AT6G7 4.100 256Federal Home Loan Bank10533 750,000.00 749,082.29 09/13/20244.87502/22/2023 749,082.29 5693130ATVD6 5.058 417Federal Farm Credit Bank10543 500,000.00 498,983.66 02/21/20254.75003/01/2023 498,983.66 7233133EPBH7 4.939 536Federal Farm Credit Bank10458 500,000.00 501,381.69 06/20/20253.37507/11/2022 501,381.69 1,0753133ENZG8 3.176 802Federal Home Loan Bank10537 500,000.00 497,513.44 03/13/20264.37502/27/2023 497,513.44 1,110313373B68 4.619 893Federal Home Loan Bank10447 1,000,000.00 1,005,333.69 06/12/20263.37507/18/2022 1,005,333.69 1,4253130ASJ59 3.141 928Federal Farm Credit Bank10572 1,000,000.00 999,139.91 07/17/20264.62508/02/2023 999,139.91 1,0803133EPQC2 4.661 1,256INTER-AMERICAN DEV. BANK10498 500,000.00 491,340.79 06/10/20272.98009/13/2022 491,340.79 1,73145818WED4 3.902 1,257Federal Home Loan Bank10432 1,000,000.00 999,371.36 06/11/20273.50006/16/2022 1,020,268.00 1,8213130ASGU7 3.520 302Federal Home Loan Bank10588 1,000,000.00 1,000,000.00 10/29/20275.60010/30/2023 1,000,000.00 1,4603130AXMQ8 5.600 1,430Federal Farm Credit Bank10545 1,000,000.00 995,060.88 12/01/20274.12503/01/2023 995,060.88 1,7363133EPCG8 4.267 1,621Federal Home Loan Bank10563 500,000.00 503,945.01 06/09/20284.37507/21/2023 503,945.01 1,7853130AWMN7 4.177 12,980,442.56 1,08212,976,212.6113,000,000.0013,192,794.82Subtotal and Average 606 3.961 Federal Agency Disc. -Amortizing 1Federal Home Loan Bank10580 1,000,000.00 999,852.78 01/02/20245.30010/02/2023 999,852.78 92313384RG6 5.447 71Federal Home Loan Bank10610 1,000,000.00 989,705.00 03/12/20245.22012/11/2023 989,705.00 92313384UE7 5.364 Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0 5.3.b Packet Pg. 37 Days to Maturity Page 3 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2023 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Diamond Bar YTM/C TermCUSIPInvestment # Purchase Date 1,989,557.78 921,989,557.782,000,000.001,989,476.06Subtotal and Average 36 5.406 Treasury Coupon Securities 135U.S. Treasury10417 2,000,000.00 1,998,427.10 05/15/20242.50004/25/2022 1,983,672.00 751912828WJ5 2.720 181U.S. Treasury10435 1,000,000.00 992,995.94 06/30/20241.75006/14/2022 976,875.00 7479128286Z8 3.222 212U.S. Treasury10434 1,000,000.00 994,507.33 07/31/20241.75006/08/2022 975,742.00 784912828Y87 2.730 439U.S. Treasury10415 3,000,000.00 2,981,292.61 03/15/20251.75003/22/2022 2,903,439.00 1,08991282CED9 2.290 531U.S. Treasury10459 1,000,000.00 997,564.29 06/15/20252.87507/08/2022 997,564.29 1,07391282CEU1 3.051 638U.S. Treasury10456 1,000,000.00 997,374.42 09/30/20253.00007/11/2022 997,374.42 1,1779128285C0 3.158 669U.S. Treasury10445 1,000,000.00 997,824.08 10/31/20253.00007/18/2022 997,824.08 1,2019128285J5 3.125 1,095U.S. Treasury10403 1,000,000.00 996,901.16 12/31/20261.25001/04/2022 925,664.00 1,82291282CDQ1 1.357 1,276U.S. Treasury10436 1,000,000.00 1,007,592.09 06/30/20273.25007/14/2022 1,007,592.09 1,81291282CEW7 3.014 11,964,479.02 1,11611,765,746.8812,000,000.0011,962,563.45Subtotal and Average 517 2.664 Federal Agency Callable 53Federal Home Loan Bank10428 1,000,000.00 1,000,000.00 02/23/20243.00005/23/2022 994,442.00 6413130ARYU9 3.000 87Federal Home Loan Mtg Corp10433 750,000.00 749,207.19 06/28/20243.12506/28/2022 749,124.00 7313134GXYM0 3.349 25Federal Home Loan Mtg Corp10527 500,000.00 500,000.00 07/26/20245.02001/26/2023 500,000.00 5473134GYE57 5.020 469Federal Farm Credit Bank10259 500,000.00 500,000.00 04/14/20250.69004/14/2021 468,659.00 1,4613133EMVS8 0.690 54Federal Home Loan Bank10254 500,000.00 499,677.92 02/24/20260.62502/24/2021 460,993.50 1,8263130AL7M0 0.676 792Federal Farm Credit Bank10258 500,000.00 500,000.00 03/03/20260.79003/03/2021 463,515.50 1,8263133EMSH6 0.790 10Federal Farm Credit Bank10397 1,000,000.00 1,000,000.00 01/11/20271.47001/11/2022 933,642.00 1,8263133ENKG4 1.470 1,121Federal Farm Credit Bank10405 1,500,000.00 1,500,000.00 01/26/20271.84001/26/2022 1,417,582.50 1,8263133ENMA5 1.840 27Federal Home Loan Bank10406 1,500,000.00 1,500,000.00 01/28/20271.70001/28/2022 1,398,064.50 1,8263130AQKJ1 1.700 1,330Federal Farm Credit Bank10475 500,000.00 500,000.00 08/23/20274.03008/23/2022 500,000.00 1,8263133ENH52 4.030 364Federal Home Loan Bank10513 750,000.00 750,000.00 12/30/20274.55012/30/2022 750,000.00 1,8263130AUDL5 4.550 26Federal Home Loan Mtg Corp10566 500,000.00 500,000.00 07/27/20286.05007/31/2023 500,000.00 1,8233134GYXY3 6.048 9,498,885.11 1,5289,136,023.009,500,000.009,498,816.41Subtotal and Average 365 2.561 Certificate of Deposit 88Deleware Police Fed Credit Uni10451 246,000.00 245,877.40 03/29/20243.00007/20/2022 245,877.40 618246399AB5 3.210 122Morgan Stanley Bank10226 246,000.00 246,000.00 05/02/20242.75005/02/2019 243,893.01 1,82761760AZR3 2.753 219EnerBank USA10230 247,000.00 247,000.00 08/07/20242.15008/07/2019 241,213.04 1,82729278TKJ8 2.152 235Raymond James Bank NA10233 247,000.00 247,000.00 08/23/20242.00008/23/2019 240,310.01 1,82775472RAE1 2.002 504Capital One Bank10429 248,000.00 248,000.00 05/19/20253.10005/18/2022 246,036.83 1,09714042RRH6 3.100 505Synchrony Bank10430 248,000.00 248,000.00 05/20/20253.10005/20/2022 246,033.11 1,09687165GR79 3.100 148JP Morgan Chase10250 248,000.00 248,000.00 05/28/20251.00005/28/2020 231,727.23 1,82648128UDS5 1.001 518Discover Bank10431 246,000.00 246,000.00 06/02/20253.10006/01/2022 244,005.19 1,097254673F68 3.100 554Meritrust Fed CU10457 248,000.00 248,000.00 07/08/20253.35007/08/2022 248,000.00 1,09659001PAS8 3.350 794BANK UNITED NA10256 248,000.00 248,000.00 03/05/20260.65003/05/2021 224,768.35 1,826066519QK8 0.000 Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0 5.3.b Packet Pg. 38 Days to Maturity Page 4 Par Value Book Value Maturity Date Stated RateMarket Value December 31, 2023 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Diamond Bar YTM/C TermCUSIPInvestment # Purchase Date Certificate of Deposit 800Pathfinder Bank10257 249,000.00 249,000.00 03/11/20260.70003/11/2021 225,981.94 1,82670320KAX9 0.000 812Pentagon Federal Credit Union10414 248,000.00 248,000.00 03/23/20261.80003/22/2022 234,447.30 1,46270962LBH4 1.800 981Goldman Sachs Bank10260 248,000.00 248,000.00 09/08/20261.05009/08/2021 225,703.81 1,82638149MZJ5 1.051 982UBS Bank USA10261 248,000.00 248,000.00 09/09/20260.95009/09/2021 224,604.42 1,82690348JS92 0.000 1,234Cy Fair FCU10555 249,000.00 249,000.00 05/19/20274.35005/19/2023 249,000.00 1,46123288UAA5 4.355 1,303Third Fed Savings & Loan10455 245,000.00 245,000.00 07/27/20273.40007/27/2022 245,000.00 1,82688413QDM7 3.402 3,958,877.40 1,5233,816,601.643,959,000.003,958,856.50Subtotal and Average 613 2.146 Municipal Bonds 152CALIF STATE HLTH FACS AUTH10252 200,000.00 200,000.00 06/01/20240.75211/04/2020 189,923.60 1,30513032UXL7 0.752 305California St Univ Rev-Bond10251 100,000.00 100,000.00 11/01/20240.68509/17/2020 93,759.00 1,50613077DMK5 0.685 517CALIF STATE HLTH FACS AUTH10253 250,000.00 250,000.00 06/01/20250.95211/04/2020 231,621.25 1,67013032UXM5 0.952 943LOS ANGELES CA CMNTY CLG DIST10523 365,000.00 334,716.10 08/01/20261.17401/05/2023 334,716.10 1,30454438CYL0 4.700 1,308POWAY UNIFIED SCHOOL DIST10522 1,230,000.00 1,138,410.70 08/01/20272.41401/04/2023 1,138,410.70 1,670738850TA4 4.750 2,023,126.80 1,5651,988,430.652,145,000.002,021,673.58Subtotal and Average 986 3.676 Wells Fargo Sweep Account 1Wells Fargo10036 0.00 0.00 0.01007/01/2012 0.00 1SWEEP 0.010 0.00 00.000.000.00Subtotal and Average 0 0.000 Money Market Fund 1State Street Advisors10562 12,821,782.94 12,821,782.94 5.30005/31/2023 12,821,782.94 1857492888 5.300 1Western Asset10561 0.00 0.00 5.15005/25/2023 0.00 152470G882 5.150 12,821,782.94 112,821,782.9412,821,782.9412,560,492.62Subtotal and Average 1 5.300 97168,220,890.39 69,052,216.47 488 3.74567,972,124.96 68,817,402.71Total and Average Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0 5.3.b Packet Pg. 39 Days to Maturity Page 5 Par Value Book Value Stated RateMarket Value December 31, 2023 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of Diamond Bar YTM/C TermCUSIPInvestment # Purchase Date 0.00 97168,220,890.39 69,052,216.47 488 3.745 0 0Average Balance 67,972,124.96 68,817,402.71Total Cash and Investments Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM2) 7.3.0 5.3.b Packet Pg. 40 Page 1 Stated Rate Transaction Date December 1, 2023 through December 31, 2023 Activity By Type Balance Portfolio Management City of Diamond Bar CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Federal Credit Union CD CALIFORNIA CREDIT UNION10621 243,000.005.100 12/28/2023 0.00130162BL3 Medallion Bank10622 248,000.004.500 12/29/2023 0.0058404DUA7 Wells Fargo10617 248,000.004.100 12/27/2023 0.00949764JY1 0.00 10,674,000.00Subtotal739,000.00 Local Agency Investment Funds (Monthly Summary) Local Agency Investment Fund10028 0.003.843 300,000.00LAIF 300,000.00 2,452,433.53Subtotal0.00 Corporate Notes 453,817.57Subtotal Federal Agency Coupon Securities Federal Farm Credit Bank10624 494,120.001.200 12/21/2023 0.003133ENMZ0 Federal Home Loan Bank10573 0.003.375 12/08/2023 1,000,000.003130A0F70 ** Federal Home Loan Mtg Corp10542 0.005.820 12/20/2023 500,000.003134GYMT6 1,500,000.00 12,980,442.56Subtotal494,120.00 Federal Agency Disc. -Amortizing Federal Home Loan Bank10576 0.005.260 12/11/2023 1,000,000.00313384QJ1 ** Federal Home Loan Bank10610 986,660.005.220 12/11/2023 0.00313384UE7 1,000,000.00 1,989,557.78Subtotal986,660.00 Treasury Coupon Securities 11,964,479.02Subtotal Federal Agency Callable 9,498,885.11Subtotal Certificate of Deposit 3,958,877.40Subtotal Municipal Bonds 2,023,126.80Subtotal Wells Fargo Sweep Account 0.00Subtotal Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM3) 7.3.0 ** - Indicates incomplete recording of maturity redemption. Report Ver. 7.3.6.1 5.3.b Packet Pg. 41 Page 2 Stated Rate Transaction Date December 1, 2023 through December 31, 2023 Activity By Type Balance Portfolio Management City of Diamond Bar CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Money Market Fund State Street Advisors10562 3,941,033.235.300 2,000,000.00857492888 2,000,000.00 12,821,782.94Subtotal3,941,033.23 68,817,402.71Total4,800,000.006,160,813.23 Portfolio POOL AP Run Date: 01/11/2024 - 07:37 PM (PRF_PM3) 7.3.0 5.3.b Packet Pg. 42 Agenda #: 5.4 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: MASTER AGREEMENT ADMINISTERING AGENCY-STATE AGREEMENT ON STATE-FUNDED PROJECTS WITH THE STATE OF CALIFORNIA (CALTRANS), AND PROGRAM SUPPLEMENT AGREEMENT FOR INTERSECTION SAFETY IMPROVEMENTS PROJECT (CIP# TI24301) FUNDED UNDER THE HIGHWAY SAFETY IMPROVEMENT PROGRAM. STRATEGIC GOAL: Safe, Sustainable & Healthy Community RECOMMENDATION: A. Approve, and authorize the Public Works Director/City Engineer to sign, the Master Agreement Administering Agency-State Agreement No. 07-5455S21 and Program Supplement No. 00000A335 accepting $302,850 in grant funds from the Highway Safety Improvement Program (HSIP); B. Adopt Resolution No. 2024-01 authorizing the Public Works Director/City Engineer to sign necessary documents in administering the HSIP Grant; and C. Determine that the approval of the funding agreement is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Article 18, Section 15378(b)(4). FINANCIAL IMPACT: The State of California has awarded the City up to $302,850 in Highway Safety Improvement Program (HSIP) grant funds. As a condition, the grant requires ten (10) percent local match funds from the City. As budgeted, $33,650 of Transportation Development Act (TDA) funds (Fund 209) are available as a local match in the Fiscal Year 2023/24 Capital Improvement Program. BACKGROUND/DISCUSSION: 5.4 Packet Pg. 43 Using grant funding from the State, the City previously developed a Local Roadway Safety Plan (LRSP) in adherence to Federal regulations established by the State of California. The LRSP serves as a local complement to the State's Strategic Highway Safety Plan (SHSP). Tailored to address the jurisdiction's specific needs, the LRSP aims to assist the local public roadway owner, the City, in addressing highway safety needs within its respective area. The plan comprises a prioritized list of improvements and actions that highlight defined needs and contribute to the broader statewide safety plan. To implement the improvement opportunities identified by the Diamond Bar's LRSP, the City prepared an application for the State's Highway Safety Improvement Program (HSIP) Cycle 11 grant funding. On March 11, 2023, the State released HSIP Cycle 11 grant application results, and the City was awarded $302,850 with a ten (10) percent local match requirement for a total project budget of $336,500. Subsequently, the City prepared and submitted a project plan encompassing improvements such as nearside supplemental traffic signal heads, pedestrian countdown units with Accessible Pedestrian Signal (APS), and high visibility crosswalks re-striping. These enhancements aim to maximize visibility and operations at critical intersections, namely: • Diamond Bar Boulevard/Golden Springs Drive • Diamond Bar Boulevard/Sunset Crossing Road • Diamond Bar Boulevard/Grand Avenue • Diamond Bar Boulevard/Pathfinder Road • Diamond Bar Boulevard/Brea Canyon Road • Golden Springs Drive/Brea Canyon Road • Golden Springs Drive/Carpio Drive • Grand Avenue/Summitridge Drive • Brea Canyon Road/Pathfinder Road This proposed plan, along with all requisite documentation, was presented to the California Department of Transportation (Caltrans), the grant administrator. An illustration of the proposed improvements is provided in Attachment 4. Caltrans responded with a notification letter, designating $27,540 in State ’s HSIP funds for the Preliminary Engineering (PE)/Design phase, effective from October 1, 2023. A local match of $3,060 was also allocated in the City’s current CIP, resulting in a total design budget of $30,600. Any work approved for funding and undertaken in the PE/Design phase after this date will be eligible for reimbursement. The Preliminary Engineering (PE)/Design phase represents the essential first stage of planning and design, encompassing the evaluation of project feasibility, defining its scope, and formulating an improvement plan that will guide subsequent construction phase. Following the successful completion of the PE/Design phase and the necessary approvals, the project will advance to the construction phase. The remaining fund balance of $305,900 from the total project budget of $336,500 will be allocated for the construction. 5.4 Packet Pg. 44 Acceptance of the HSIP grant fund necessitates the City to execute a Master Agreement Administering Agency-State Agreement with Caltrans (Attachment 1) and a Program Supplement Agreement (Attachment 2) accepting $302,850 in HSIP grant funds. To streamline grant management, communications, and reporting to Caltrans, the City must also designate a representative. It is recommended that the City Council adopt the attached resolution (Attachment 3) designating the City's Public Works Director/City Engineer to review and approve related documents on behalf of the City. ENVIRONMENTAL REVIEW: The City Council's approval of the funding agreement is not a “project” under the California Environmental Quality Act (CEQA), and is thus exempt from environmental review. Section 15387(b)(4) of the CEQA Guidelines expressly states that actions resulting in “(t)he creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment” are not projects. LEGAL REVIEW: The City Attorney has reviewed and approved the Agreements and Resolution as to form. PREPARED BY: REVIEWED BY: Attachments: 1. 5.4.a Administering Agency-State Agreement City of Diamond Bar and Caltrans 5.4 Packet Pg. 45 2. 5.4.b Program Supplement Agreement (PSA) 3. 5.4.c Resolution No. 2024-01 4. 5.4.d Project's Proposed Improvements 5.4 Packet Pg. 46 07 City of Diamond Bar -------- ---------------------------------------------- District Administering Agency Agreement No. 07-5455S21 This AGREEMENT, is entered into effective this _______ day of __________, 20___, by and between the City of Diamond Bar, hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through its Department of Transportation (Caltrans), hereinafter referred to as "STATE", and together referred to as "PARTIES" or individually as a "PARTY." RECITALS: 1. WHEREAS, the Legislature of the State of California has enacted legislation by which certain State funds are made available for use on local transportation related projects of public entities qualified to act as recipients of these state funds; and 2. WHEREAS, ADMINISTERING AGENCY has applied to the California Transportation Commission (CTC) and/or STATE for funding from a State-funded program (herein referred to as STATE FUNDS), as defined in the Local Assistance Program Guidelines (LAPG) and/or in the respective CTC Guidelines, for use on local authorized transportation related projects as a local administered project(s), hereinafter referred to as "PROJECT"; and 3. WHEREAS, said PROJECT will not receive any federal funds; and 4. WHEREAS, before STATE FUNDS will be made available for PROJECT, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving STATE FUNDS for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility. NOW, THEREFORE, the PARTIES agree as follows: MASTER AGREEMENT ADMINISTERING AGENCY-STATE AGREEMENT STATE-FUNDED PROJECTS 1 ofPage 15 5.4.a Packet Pg. 47 ARTICLE I - PROJECT ADMINISTRATION 1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific Program Supplement to this AGREEMENT for state funded projects, hereinafter referred to as "PROGRAM SUPPLEMENT", has been fully executed by both STATE and ADMINISTERING AGENCY. 2. The State approved project-specific allocation notification letter and approved CTC allocation documentation designate the party responsible for implementing PROJECT, type of work, and location of PROJECT for projects requiring CTC allocation by PROJECT component of work. 3. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive STATE FUNDS from/through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these STATE FUNDS that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and/or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY. 4. ADMINISTERING AGENCY agrees to execute and return each project-specific PROGRAM SUPPLEMENT. The PARTIES agree that STATE may suspend future allocations, encumbrances and invoice payments for any on- going or future STATE FUNDED PROJECT performed by ADMINISTERING AGENCY if any project-specific PROGRAM SUPPLEMENT is not returned, unless otherwise agreed by STATE in writing. 5. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of STATE FUNDS encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all the agreed-upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative/Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT. 6. STATE FUNDS will not participate in any portion of PROJECT work performed in advance of the effective date of allocation by CTC, or by STATE for allocations delegated to STATE by CTC, for said PROJECT. 7. Projects allocated with STATE FUNDS will be administered in accordance with the current CTC STIP Guidelines, applicable chapter(s) of the LAPG, LAPM and/or any other instructions published by STATE. 8. ADMINISTERING AGENCY agrees to ensure compliance with all relevant State laws and requirements for work related to PROJECT, including the California Environmental Quality Act (CEQA). 9. ADMINISTERING AGENCY's eligible costs for preliminary engineering work includes all preliminary work directly related to PROJECT up to contract award for construction, including, but not limited to, environmental studies and permits (E&P), preliminary surveys and reports, laboratory work, soil investigations, the preparation of plans, specifications and estimates (PS&E), advertising for bids, awarding of a contract and project development contract administration. 2 ofPage 15 5.4.a Packet Pg. 48 10. ADMINISTERING AGENCY's eligible costs for construction engineering include actual inspection and supervision of PROJECT construction work; construction staking; laboratory and field testing; and the preparation and processing of field reports, records, estimates, final reports, and allowable expenses of employees/consultants engaged in such activities. 11. Unless the PARTIES agree otherwise in writing, ADMINISTERING AGENCY's employees or its contracted engineering consultant shall be responsible for all PROJECT engineering work. 12. ADMINISTERING AGENCY shall not proceed with final design of PROJECT until final environmental approval of PROJECT. Final design entails the design work necessary to complete the PS&E and other work necessary for a construction contract but not required earlier for environmental clearance of that PROJECT. 13. If PROJECT is not on STATE-owned right-of-way, PROJECT shall be constructed in accordance with Chapter 11 of the LAPM that describes minimum statewide design standards for local agency streets and roads. The design standards for projects off the National Highway System (NHS) allow STATE to accept either the current Caltrans Highway Design Manual standards, the current FHWA-adopted American Association of State Highway and Transportation Officials (AASHTO) A Policy on Geometric Design of Highways and Streets standards, or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current Local Assistance Procedures Manual. 14. If PROJECT involves work within or partially within STATE-owned right-of-way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and where appropriate, an executed cooperative agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES. ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights-of-way or work which affects STATE facilities. 15. When PROJECT is not on the State Highway System (SHS) but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract. 16. ADMINISTERING AGENCY shall comply with the provisions of sections 4450 and 4454 of the California Government Code, as well as other Department of General Services guidance, if applicable, for the contract PS&E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. Further requirements and guidance are provided in Title 24 of the California Code of Regulations. 17. ADMINISTERING AGENCY shall provide a full-time public employee to be in responsible charge of each PROJECT. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. ADMINISTERING AGENCY may utilize consultants to perform supervision and inspection work for PROJECT with a 3 ofPage 15 5.4.a Packet Pg. 49 fully qualified and licensed engineer. Utilization of consultants does not relieve ADMINISTERING AGENCY of its obligation to provide a full-time public employee to be in responsible charge of each PROJECT. 18. Unless otherwise provided in the PROGRAM SUPPLEMENT, ADMINISTERING AGENCY shall advertise, award, and administer the PROJECT construction contract or contracts. 19. The cost of maintenance, security, or protection performed by ADMINISTERING AGENCY or contractor forces during any temporary suspension of PROJECT or at any other time may not be charged to the PROJECT. 20. ADMINISTERING AGENCY shall submit PROJECT-specific award information to STATE's District Local Assistance Engineer, within sixty (60) days after contract award. 21. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a "Final Project Expenditure Report", LAPM Exhibit 17-M, within one hundred eighty (180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a "Final Project Expenditure Report", within 180 days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the Local Assistance Procedures Manual. 22. ADMINISTERING AGENCY shall comply with the Americans with Disabilities Act (ADA) of 1990 that prohibits discrimination on the basis of disability and all applicable regulations and guidelines issued pursuant to the ADA. 23. The Governor and the Legislature of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM, attached hereto as Exhibit A and further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of work connected with PROJECT shall incorporate Exhibit A (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement. 24. ADMINISTERING AGENCY shall include in all contracts and subcontracts awarded when applicable, a clause that requires each subcontractor to comply with California Labor Code requirements that all workers employed on public works aspects of any project (as defined in California Labor Code sections 1720-1815) be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations as effective at the date of contract award by the ADMINISTERING AGENCY. ARTICLE II - RIGHTS-OF-WAY 1. No contract for the construction of a STATE FUNDED PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights-of-way are available for construction purposes or will be available by the time of award of the construction contract. 2. The furnishing of rights of way by ADMINISTERING AGENCY as provided for herein includes, and is limited to, the following, unless the PROGRAM SUPPLEMENT provides otherwise. (a) Expenditures of capital and support to purchase all real property required for 4 ofPage 15 5.4.a Packet Pg. 50 PROJECT free and clear of liens, conflicting easements, obstructions and encumbrances, after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY. (b) The cost of furnishing of right-of-way as provided for herein includes, in addition to real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to owners of remainder real property not actually taken but injuriously affected by PROJECT. (c) The cost of relocation payments and services provided to owners and occupants pursuant to Government Code sections 7260-7277 when PROJECT displaces an individual, family, business, farm operation or nonprofit organization. (d) The cost of demolition and/or the sale of all improvements on the right-of-way after credit is recorded for sale proceeds used to offset PROJECT costs. (e) The cost of all unavoidable utility relocation, protection or removal. (f) The cost of all necessary hazardous material and hazardous waste treatment, encapsulation or removal and protective storage for which ADMINISTERING AGENCY accepts responsibility and where the actual generator cannot be identified, and recovery made. 3. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right-of-way for a PROJECT is not clear as certified by ADMINISTERING AGENCY, including, but not limited to, if said right-of-way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. ADMINISTERING AGENCY shall pay, from its own non- matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights-of-way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work. ARTICLE III - MAINTENANCE AND MANAGEMENT 1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity. 2. Upon ADMINISTERING AGENCY's acceptance of the completed construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement(s) between itself and the other jurisdictional Agency or Agencies providing for the operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, ownership and liability in a manner satisfactory to the authorized representatives of STATE. If, within ninety (90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not 5 ofPage 15 5.4.a Packet Pg. 51 being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future STATE FUNDED PROJECTS of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE's concurrence. 3. PROJECT and its facilities shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as PROJECT reasonably requires. Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements. 4. ADMINISTERING AGENCY shall comply with all applicable law, including but not limited to, all applicable legal authority regarding construction standards. ARTICLE IV - FISCAL PROVISIONS 1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the CTC. 2. STATE'S financial commitment of STATE FUNDS will occur only upon the execution of this AGREEMENT, the execution of each project-specific PROGRAM SUPPLEMENT and/or STATE's approved finance letter. 3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices in arrears for reimbursement of allowable PROJECT costs at least once every six months commencing after the STATE FUNDS are encumbered on either the project-specific PROGRAM SUPPLEMENT or through a project-specific finance letter approved by STATE. STATE reserves the right to suspend future allocations and invoice payments for any on-going or future STATE FUNDED project performed by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six- month period 4. Invoices shall be submitted on a standardized billing summary template, in accordance with Chapter 5 of the LAPM to claim reimbursement by ADMINISTERING AGENCY. For construction invoices, pay estimates must be included. 5. ADMINISTERING AGENCY must retain at least one copy of supporting backup documentation for allowable costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs. 6. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursements of actual allowable PROJECT costs already incurred and paid for by the ADMINISTERING AGENCY. 7. Indirect Cost Allocation Plans/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to the Inspector General - Independent Office of Audits and Investigations for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of 6 ofPage 15 5.4.a Packet Pg. 52 indirect cost incurred within each fiscal year being claimed for reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the LAPM, and the ICAP/ICRP approval procedures established by STATE. 8. STATE will withhold the greater of either two (2) percent of the total of all STATE FUNDS encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT. 9. The estimated total cost of PROJECT, the amount of STATE FUNDS obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES with a finance letter, and an allocation notification letter when applicable. STATE FUNDING may be increased to cover PROJECT cost increases only if such additional funds are available and the CTC and/or STATE concurs with that increase in the form of an allocation and finance letter. 10. When such additional STATE FUNDS are not available, ADMINISTERING AGENCY agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds. 11. ADMINISTERING AGENCY shall use its own non-STATE FUNDS to finance the local share of eligible costs and all PROJECT expenditures or contract items ruled ineligible for financing with STATE FUNDS. STATE shall make the final determination of ADMINISTERING AGENCY's cost eligibility for STATE FUNDED financing with respect to claimed PROJECT costs. 12. ADMINISTERING AGENCY will reimburse STATE for STATE's share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE's costs shall include overhead assessments in accordance with section 8755.1 of the State Administrative Manual. 13. STATE FUNDS allocated by the CTC and/or STATE are subject to the timely use of funds provisions approved in CTC Guidelines and State procedures approved by the CTC and STATE. 14. STATE FUNDS encumbered for PROJECT are available for liquidation only for a limited period from the beginning of the State fiscal year when those funds were appropriated in the State Budget. STATE FUNDS not liquidated within these periods will be reverted unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Section 16304 of the Government Code. The exact date of fund reversion will be reflected in the STATE signed PROJECT finance letter. 15. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid to rank and file STATE employees under current California Department of Human Resources (CalHR) rules unless a Cooperative Work Agreement (CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance in accordance with Government Code section 16304. If the rates invoiced by ADMINISTERING AGENCY are in excess of CalHR rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand. 7 ofPage 15 5.4.a Packet Pg. 53 16. ADMINISTERING AGENCY agrees to comply with California Government Code 4525- 4529.14. Administering Agency shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall also comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326. 17. ADMINISTERING AGENCY agrees and will assure that its contractors and subcontractors will be obligated to agree that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, excluding 2 CFR Part 200.318-200.326Governments. ADMINISTERING AGENCY agrees to comply with the provisions set forth in 23 CFR Parts 140, 645 and 646 when contracting with railroad and utility companies. 18. Every recipient and sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR 200 excluding 2 CFR Part 200.318-200.326, 48 CFR Chapter 1, Part 31, LAPM, Public Contract Code (PCC) 10300- 10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations. 19. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be questioned, disallowed, or unallowable under 2 CFR, Part 200, 48 CFR, Chapter 1, Part 31, 23 CFR Parts 140, 645 and 646, LAPM, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), California Government Code 4525-4529.5 including 4527(a) and 4528(a), and other applicable STATE regulations are subject to repayment by ADMINISTERING AGENCY to STATE and may result in STATE imposing sanctions on ADMINISTERING AGENCY as described in Chapter 20 of the Local Assistance Procedures Manual. 20. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided herein or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty (30) days of demand, or within such other period as may be agreed to in writing between the PARTIES hereto, STATE, acting through the State Controller, the State Treasurer, the CTC or any other public entity or agency, may intercept, withhold and demand the transfer of an amount equal to the amount paid by or owed to STATE for each PROJECT, from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and/or may also withhold approval of future STATE FUNDED projects proposed by ADMINISTERING AGENCY. 21. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder. 8 ofPage 15 5.4.a Packet Pg. 54 22. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE's ability to recover STATE FUNDS improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT. ARTICLE V AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS 1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three (3) of Article V. 2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE. 3. ADMINISTERING AGENCY, ADMINISTERING AGENCY's contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States, all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts, and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above-referenced parties shall make such AGREEMENT and PROGRAM SUPPLEMENT materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years, or 35 years for Prop 1B funds, from the date of final payment to ADMINISTERING AGENCY. 4. ADMINISTERING AGENCY shall not award a construction contract over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. All contracts awarded by ADMINISTERING AGENCY intended or used as local match credit must meet the requirements set forth in this AGREEMENT regarding local match funds. 5. ADMINISTERING AGENCY shall comply with Chapter 10 (commencing with Section 4525) Division 5 of Title 1 of the Government Code and shall undertake the procedures described in California Government Code 4527(a) and 4528(a). Administering Agency shall comply with Chapter 10 of the LAPM for AE Consultant Contracts. 6. ADMINISTERING AGENCY shall comply with Government Code Division 5 Title 1 sections 4525-4529.5 and shall undertake the procedures described in California Government Code 4527(a) and 4528(a) for procurement of professional service contracts. Administering Agency shall follow Public Contract Code Section 10335- 10381 for other professional service contracts. 9 ofPage 15 5.4.a Packet Pg. 55 7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain all of the provisions of Article IV, FISCAL PROVISIONS, and this ARTICLE V, AUDITS, THIRD-PARTY CONTRACTING, RECORDS RETENTION AND REPORTS and shall mandate that travel and per diem reimbursements and third- party contract reimbursements to subcontractors will be allowable as PROJECT costs only after those costs are incurred and paid for by the subcontractors. 8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner that is required of all other PROJECT expenditures. 9. Except as provided in this Article, this AGREEMENT is solely between and for the benefit of the PARTIES and there are no third-party beneficiaries. ARTICLE VI - MISCELLANEOUS PROVISIONS 1. ADMINISTERING AGENCY agrees to use all PROJECT funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and other California laws. 2. ADMINISTERING AGENCY shall conform to all applicable State and Federal statutes and regulations, and the Local Assistance Program Guidelines and Local Assistance Procedures Manual as published by STATE and incorporated herein, including all subsequent approved revisions thereto applicable to PROJECT unless otherwise designated in the project-specific executed PROJECT SUPPLEMENT. 3. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner. 4. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE. 5. Each project-specific PROGRAM SUPPLEMENT shall separately establish the terms and funding limits for each described PROJECT funded under this AGREEMENT and that PROGRAM SUPPLEMENT. No STATE FUNDS are obligated against this AGREEMENT. 6. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT, and ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT. 7. ADMINISTERING AGENCY certifies, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the PROJECT work actually performed, or in STATE's discretion, to deduct from the price of PROGRAM SUPPLEMENT consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee. 10 ofPage 15 5.4.a Packet Pg. 56 8. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two (2) year period because of ADMINISTERING AGENCY's failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board. 9. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE that may have an impact upon the outcome of this AGREEMENT or any individual PROJECT encompassed within a PROGRAM SUPPLEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of a PROJECT undertaken pursuant to this AGREEMENT. These disclosures shall be delivered to STATE in a form deemed acceptable by the STATE prior to execution of this AGREEMENT. 10. ADMINISTERING AGENCY hereby certifies that it does not have, nor shall it acquire, any financial or business interest that would conflict with the performance of any PROJECT initiated under this AGREEMENT. 11. ADMINISTERING AGENCY certifies that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its sole discretion, to terminate this AGREEMENT without liability, to pay only for PROJECT work actually performed, or to deduct from a PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration. 12. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE's Contract Manager, who shall be identified to ADMINISTERING AGENCY at the time of execution of this AGREEMENT and, as applicable , any time that Contract Manager changes during the duration of this AGREEMENT who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Manager, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Manager. 13. Neither the pendency of a dispute nor its consideration by the Contract Manager will excuse the ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT and each PROGRAM SUPPLEMENT. 14. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under or in connection with any work, authority or jurisdiction of ADMINISTERING AGENCY arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims and suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT. 15. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or 11 ofPage 15 5.4.a Packet Pg. 57 jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT. 16. In the event of (a) ADMINISTERING AGENCY failing to timely proceed with effective PROJECT work in accordance with the project-specific PROGRAM SUPPLEMENT; (b) failing to maintain any applicable bonding requirements; and (c) otherwise materially violating the terms and conditions of this AGREEMENT and/or any PROGRAM SUPPLEMENT, STATE reserves the right to terminate funding for that PROJECT upon thirty (30) days' written notice to ADMINISTERING AGENCY. 17. No termination notice shall become effective if, within thirty (30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if the default is not reasonably susceptible of cure within said thirty (30) day period the ADMINISTERING AGENCY proceeds thereafter to complete that cure in a manner and time line acceptable to STATE. 18. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty (30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT and the applicable PROGRAM SUPPLEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty (30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY for the reasons stated in paragraph sixteen (16) of ARTICLE VI, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and/or STATE-approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project-specific PROGRAM SUPPLEMENT and that the cost of any PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY. 19. In the case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project-specific PROGRAM SUPPLEMENT and/or Cooperative Agreement, the terms stated in that PROGRAM SUPPLEMENT and/or Cooperative Agreement shall prevail over those in this AGREEMENT. 20. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part. 21. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES. 12 ofPage 15 5.4.a Packet Pg. 58 City of Diamond Bar City of Diamond Bar IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officer. STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION ________________________________ ________________________________Chief, Office of Project Management Oversight Division of Local Assistance Representative Name & Title (Authorized Governing Body Representative) By______________________________By______________________________ Date______________________________Date______________________________ ________________________________ 13 ofPage 15 5.4.a Packet Pg. 59 EXHIBIT A - FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. Such action shall include, but not be limited to, the following: employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section. 2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, 12900 et seq.), and the applicable regulations promulgated thereunder (Cal. Code Regs., Title 2, 11000, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code section 12900(a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY'S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate. 3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT. 4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement. 5. Remedies for Willful Violation: (a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement 14 ofPage 15 5.4.a Packet Pg. 60 and the actual cost thereof to STATE to cure ADMINISTERING AGENCY's breach of this Agreement. 15 ofPage 15 5.4.a Packet Pg. 61 00000A335 FOR STATE FUNDED PROJECTS NO 07-5455S21 0724000103 November 01, 2023 07-LA-1-DMBR HSIPSL-5455(018) 5455 This Program Supplement, effective , hereby adopts and incorporates into the Administering Agency-State Agreement No. 07-5455S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached). The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages. On Diamond Bar Blvd at Golden Springs, Sunset Crossing, Grand Ave, Pathfinder, Brea Canyon. On Golden Springs at Brea Canyon, Carpio. Grand Ave/summitridge. BreCanyon/Pathfinder. Install nearside supplemental traffic signals, install pedestrian countdown signal heads, and restri 0.0(MILES) State FundsEstimated Cost Matching Funds CITY OF DIAMOND BAR By ________________________________By ________________________________ Title _______________________________ Date _______________________________ Attest _______________________________Date _______________________________ Division of Local Assistance I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance: Accounting Officer _______________________Date _______________ PROGRAM SUPPLEMENT NO. to ADMINISTERING AGENCY-STATE AGREEMENT Adv. Project ID Date: Location: Project Number: E.A. Number: Locode: PROJECT LOCATION: TYPE OF WORK:LENGTH: LOCAL OTHER $30,600.00 $3,060.00 $0.00 Chief, Office of Project Implementation STATE OF CALIFORNIA Department of Transportation $27,540.00 $27,540.00STATE 1Page of 3Program Supplement 07--545-A335- SERIAL 11/1/2023 5.4.b Packet Pg. 62 SPECIAL COVENANTS OR REMARKS 07-LA-1-DMBR HSIPSL-5455(018) 1.A. This PROJECT has received STATE funds from Highway Safety Improvement Program (HSIP). The ADMINISTERING AGENCY agrees to administer the PROJECT in accordance with the Highway Safety Improvement Program (HSIP) Guidelines, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT. B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con). A phase-specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the phase identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per phase. Unless otherwise determined, the effective date of the phase-specific allocation will constitute the start of reimbursable expenditures for the phase. The STATE funds available for reimbursement will be limited to the amount allocated by the STATE for the phase. C. At the time of the first fund allocation approval for the Project, this PROGRAM SUPPLEMENT, a STATE-approved Allocation Letter and STATE Finance Letter are prepared to allow reimbursement of eligible PROJECT expenditures for the phase allocated. D. STATE and ADMINISTERING AGENCY agree that any additional fund allocations made after the execution of this PROGRAM SUPPLEMENT, for the phase that has been authorized in the first fund allocation approval or for a new phase, will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and a STATE Finance Letter and are subject to the terms and conditions thereof. E. This PROJECT is subject to the delivery requirements enacted by the HSIP guidelines. The delivery requirements may be accessed at: https://dot.ca.gov/programs/local-assistance/fed- and-state-programs/highway-safety-improvement-program/delivery-requirements-status- approved-projects. F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase. G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and 2Page of 3Program Supplement 07--545-A335- SERIAL 5.4.b Packet Pg. 63 SPECIAL COVENANTS OR REMARKS 07-LA-1-DMBR HSIPSL-5455(018) payment. H. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM provisions. I. ADMINISTERING AGENCY agrees to comply with the requirements in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (applicable to Federal and State Funded Projects). J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to provide the STATE, upon request, with the information related to the PROJECT for the purpose of project evaluation or other purposes. K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the State. Any changes to the approved PROJECT scope without the prior expressed approval of the State are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement. 3Page of 3Program Supplement 07--545-A335- SERIAL 5.4.b Packet Pg. 64 RESOLUTION NO. 2024-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DESIGNATING THE PUBLIC WORKS DIRECTOR/CITY ENGINEER TO REPRESENT THE CITY OF DIAMOND BAR AND SIGN DOCUMENTS RELATED TO THE GRANT FUNDS FROM THE STATE OF CALIFONIA UNDER HIGHWAY SAFETY IMPROVEMENT PROGRAM. WHEREAS, the City of Diamond Bar applied for Highway Safety Improvement Program (HSIP) grant funding from the State of California acting by and through its Department of Transportation (“Caltrans”); and WHEREAS, the HSIP grant will assist the City in intersection safety improvements; and WHEREAS, the City of Diamond Bar will receive up to $302,850 in grant funds from Caltrans under HSIP and needs to designate a representative to work with Caltrans to implement the grant. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. That the City Council of the City of Diamond Bar designates the Public Works Director/City Engineer to represent the City and sign the HSIP grant documents on behalf of the City. PASSED, APPROVED AND ADOPTED this 16th day of January, 2024. CITY OF DIAMOND BAR __________________________ Stan Liu, Mayor ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at a regular meeting of the City Council of the City of Diamond Bar held on the 16th day of January, 2024, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: __________________________ Kristina Santana, City Clerk 5.4.c Packet Pg. 65 ! ! !! ! ! ! ! !! ·142 ·71 ·60 ·57 !"10 Golden SpringsDr & Carpio Dr Grand Ave &Summitridge Ave DiamondBar Blvd &Grand AveGolden Springs Dr& Brea Canyon Rd Diamond Bar Blvd& Pathfinder Rd Diamond Bar Walnut Chino Hills Diamond BarBlvd & BreaCanyon Rd Diamond BarBlvd & GoldenSprings Dr Diamond BarBlvd & SunsetCrossing Rd Brea Canyon Rd & Pathfinder Rd Vicinity Map Exhibit 1 0 0.9 1.80.45 Miles Study Intersections City Boundary Los Angeles County Caltrans District 7 ·210 ·142 ·60 ·72 ·71 ·66 ·57 ·91 ·39 ·83 ·90 %&605 !"5 !"10 Los Angeles County San Bernardino County Orange County 5.4.d Packet Pg. 66 S02: Installation of supplemental near-side signal heads S17PB: Install pedestrian countdown signal heads S18PB: Install High Visibility Pedestrian Crossing as shown on the schematic maps on the following pages. For illustration only, not the actual Installation. Similar to the new installation on Grand Ave and Golden Springs Dr. 5.4.d Packet Pg. 67 D i am o n d B a r B l v dGolden Springs DrS02Install Nearside Supplemental Signal S18PBConvert Existing Crosswalk to High Visibility Crosswalk SI_1 Figure Countermeasure Diagrams Diamond Bar Boulevard and Golden Springs Drive Location 200 ft250’ Radius Inuence A re a 5.4.d Packet Pg. 68 Diamond Bar BlvdSunset Crossing R d S02Install Nearside Supplemental Signal S18PBConvert Existing Crosswalk to High Visibility Crosswalk SI_2 Figure Diamond Bar Boulevard and Sunset Crossing Road Location 200 ft Countermeasure Diagrams 250’ Radius Inuence Area5.4.d Packet Pg. 69 Grand A v e Diamond Bar BlvdS17PBInstall pedestrian countdown signal heads with Accessible Pedestrian Signal (APS) Countermeasure Diagrams SI_3 Figure Diamond Bar Boulevard and Grand Avenue Location 200 ft 250’ R a d iu s In u e n c e A rea 5.4.d Packet Pg. 70 Diamond Bar BlvdCountermeasure Diagrams SI_4 Figure Diamond Bar Boulevard and Pathfinder Road Location 300 ft S17PBInstall pedestrian countdown signal heads with Accessible Pedestrian Signal (APS) Pathfi n d e r R d 250’ Radius Inuence Area5.4.d Packet Pg. 71 SI_5 Figure Diamond Bar Boulevard and Brea Canyon Road Location 300 ft Countermeasure Diagrams S17PBInstall pedestrian countdown signal heads with Accessible Pedestrian Signal (APS)Brea Canyon BlvdD i a m o n d B a r B lv d I n u ence Area 5.4.d Packet Pg. 72 Golden Springs Dr B r e a C a n y o n R d S02Install Nearside Supplemental Signal S18PBConvert Existing Crosswalk to High Visibility Crosswalk S17PBInstall pedestrian countdown signal heads with Accessible Pedestrian Signal (APS) SI_6 Figure Golden Springs Drive and Brea Canyon RoadLocation 300 ft Countermeasure Diagrams 2 5 0 ’ R a d i u s I n uence Area 5.4.d Packet Pg. 73 Car p i o D r Golden Springs DrS17PBInstall pedestrian countdown signal heads with Accessible Pedestrian Signal (APS) Countermeasure Diagrams SI_7 Figure Golden Springs Drive and Carpio Drive Location 200 ft 250’ Radius In uence A r e a 5.4.d Packet Pg. 74 Grand Ave Summi tb r idge D r S02Install Nearside Supplemental Signal S18PBConvert Existing Crosswalk to High Visibility Crosswalk SI_8 Figure Grand Avenue and Summitridge Drive Location 200 ft Countermeasure Diagrams 250’ Radius Inuence Area5.4.d Packet Pg. 75 Pathfinder Rd S02Install Nearside Supplemental Signal S18PBConvert Existing Crosswalk to High Visibility Crosswalk Brea Canyon RdSI_9 Figure Brea Canyon Road and Pathfinder Road Location Countermeasure Diagrams 200 ft250’ Radius Inuence Area5.4.d Packet Pg. 76 Agenda #: 6.1 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM ALLOCATIONS FOR FISCAL YEAR 2024/2025. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: A. Open the public hearing to receive public testimony; B. Close the public hearing; and C. Adopt Resolution No. 2024-02 approving the Community Development Block Grant Funding Allocations for Fiscal Year 2024/2025. FISCAL IMPACT: Fiscal Year 2024/2025 funding for the Community Development Block Grant (CDBG) Program is estimated at $332,376, and is received from the Federal Government on a reimbursement basis. Approval of the 2024/2025 CDBG funding allocations will be incorporated into the Fiscal Year 2024/2025 City Budget. The CDBG Program does not impact the City's General Fund budget. BACKGROUND: By way of a Cooperative Agreement, the City of Diamond Bar is one of 48 participating cities served by the Los Angeles County Development Authority (LACDA) CDBG Program. The CDBG Program was established through the Housing and Community Development Act of 1974. The primary goals of the CDBG program are to provide for the development of viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Eligible CDBG projects are those that meet one of the following national objectives for the program: 6.1 Packet Pg. 77 • Benefiting low- and moderate-income persons; • Addressing slums or blight; or • Meeting a particular urgent community development need. The projects must also fall within one of the eligible activity categories, which include acquisition of real property for an eligible use; acquisition, construction, and rehabilitation of public facilities; demolition and clearance of deteriorated buildings; community service for low- and moderate-income households; removal of barriers that restrict the mobility for elderly or disabled persons; or special economic development activities. Funds may be used for a variety of community development activities, such as public services, ADA retrofit and improvements for parks, public works projects, and home improvement programs. The funds may only be used within low and moderate -income census tracts (of which the City has none) and/or to benefit low and moderate -income persons and/or presumed eligible persons (elderly or disabled). Diamond Bar’s preliminary funding allocation for Fiscal Year 2024/25 is $254,581. In addition to the annual allocation, $77,795 is estimated to be available from prior year unexpended funds. Total funding for the FY 2024/25 CDBG program is thus $332,376. LACDA anticipates receiving notification of the final allocation from the U.S. Department of Housing and Urban Development (HUD) during the first quarter of 2024. The CDBG Program has experienced funding adjustments in prior years, so the City should be prepared to accommodate a federal funding adjustment that could affect LACD A’s final allocations. In the event that the final allocation is higher or lower than this report’s estimate by 25% or less, the draft resolution provides authorization for the City Manager to administratively adjust the individual program allocations. Should the final allocation differ from the estimate by more than 25%, City Council approval of any program allocation changes would be required. The City’s approved projects and budget must be submitted to the LACDA by February 1, 2024. Diamond Bar’s projects and budget will ultimately become part of the Los Angeles County’s CDBG program application to HUD. Distribution of Funds The City’s allocation of CDBG funds is subject to the following distribution limits: • 15% of new allocations to support community service programs for eligible persons. • 85% of new allocations toward public works and housing projects that directly benefit eligible persons (e.g., ADA improvements for sidewalks and parks, and deferred loans for home improvements). • Unallocated funds, including deferred loan repayments and carryovers from the prior fiscal year may be used to fund eligible public works and housing projects. 6.1 Packet Pg. 78 The cost of project administration and contract compliance services are charged on a project-based model which allows the City use CDBG funds to pay for costs associated with meeting the regulatory requirements on a per project basis. CDBG project administration is being implemented by City staff with assistance from the City’s consultant, Diana Cho and Associates. Project management for the CDBG -funded Home Improvement Program is performed by FRJ & Associates on behalf of the City. Current Fiscal Year 2023/24 CDBG Projects and Allocations ($335,699) The programs funded for the current fiscal year, as amended, are summarized below: o Senior Programming ($52,230) – These programs normally include information and referral, physical mobility classes, seminars, arts and crafts, game days, senior excursions, and special events, as well as partially subsidizing the salary of a Recreation Specialist. General Insurance has been purchased for the senior groups utilizing the Heritage Park Community Center and Diamond Bar Center. More than 500 seniors participate in the various programs and activities offered by the City. o Home Improvement Program (HIP) ($138,005) – The HIP offers deferred loans to eligible low- and moderate-income homeowners of single-family detached housing for necessary home improvements, as well as repairs to mitigate building and safety code deficiencies and/or violations. The City’s HIP policies provide interest-free, deferred loans of up to $30,000 to eligible households. Loans become payable when the homes are sold or refinanced. As of this writing, one project has been completed, one approved project is out to bid, one application is approved, and one application is under review. It is anticipated that five (5) projects will be approved by the end of the fiscal year. o Area 4 Residential Neighborhood ADA Curb Ramp Improvements Project ($145,464) – Area 4 is generally bounded by the SPRR rail line at the City boundary with the City of Industry, Pathfinder Road to the north, the City boundary with the unincorporated community of Rowland Heights to the west, Pathfinder Road to the south, and the 57 Freeway to the east. The project is to provide ADA accessibility to existing sidewalks through the construction of ADA-compliant curb ramps at various locations where no curb ramps are presently provided. The project is currently in the design phase and is anticipated to construct up to 14 new ADA-compliant curb ramps. 6.1 Packet Pg. 79 DISCUSSION: Proposed CDBG Projects and Allocations for FY 2024/25 The recommended project funding for Fiscal Year 2024/25 is based on the applications submitted and the estimated availability of funds. The City provides support to the projects that receive funding with technical assistance and monitoring to ensure compliance. The City is responsible for overseeing the operations of all the subrecipient supported activities, including compliance with all applicable federal requirements and for monitoring the achievement of performance goals. Federal regulations require CDBG funds to be allocated and expended within three (3) years. In addition, the LACDA strongly encourages participant cities to earmark all monies as soon as feasible. As stated in the Background section of this report, the CDBG funding estimate for FY 2024/25 is $332,376. The breakdown for the estimated funds is as follows: New annual allocation $254,581 Prior year unallocated/reprogrammed funds 77,795 Total estimated CDBG funds for FY 2020/21 $332,376 N 6.1 Packet Pg. 80 Program Selection Process On October 20, 2023, the City posted a notice on its website to inform organizations that it was accepting applications for program funding through November 17, 2022. Applications from the City, the City’s five active senior clubs and the private nonprofit organization Heart of Hope were received during the application period to support the following programs and projects for the next fiscal year: 1. Senior Programs 2. Home Improvement Program 3. Area 5 Residential Neighborhood Curb Ramps 4. Services for children with special needs (Heart of Hope) Heart of Hope subsequently withdrew its application because it found that the client families would be reluctant to disclose their household incomes. To be eligible for CDBG funding, at least 51% of the households served by such organizations cannot earn more than 120% of the Area Median Income, and must be verified through tax returns or payroll documentation. Funds requested from the three remaining applications total $342,372, which is $9,996 more than the estimated available funds. The recommended distribution of CDBG monies to utilize the entire funding estimate is detailed below. Public Services/Senior Programs The public service funding cap is $38,187, or 15% of the estimated new CDBG annual allocation for FY 2024/25. With Heart of Hope’s withdrawal, the only application in this category is for funding to support senior programming. The City’s senior programs are administered through the Parks and Recreation Department. The City Council has previously approved a portion of the annual CDBG funding to be allocated to the Senior Programs budget. As in prior years, the Senior Programs application proposes to accommodate several of the activities and supplies as requested by the Diamond Bar Senior Citizens Club, Diamond Bar Evergreen Senior Association, Sunshine Seniors Association, Diamond Age Senior Club, and Super Diamond Age Senior Club. The application also requests reimbursement for a portion of the City’s Senior Program Coordinator’s hours spent administering the programs, as well as for supplies and insurance purchased to host events at the Diamond Bar Center. Parks and Recreation is requesting $37,372 (see Attachment 2) to offset senior programming expenses. The amount requested would leave the estimated allocation for this category with a surplus of $815. Recommendation With no other competing proposals in the Public Services category, it is recommended that the entire FY 2024/2025 funding estimate of $38,187 be allocated to Senior 6.1 Packet Pg. 81 Programs. This amount will cover supplies, liability insurance, CDBG project administration consultant costs and a portion of the Recreation Specialist salary. Public Works and Housing The allocation for Public Works and Housing projects includes $216,394 from the estimated FY 2024/2025 allocation (i.e., 85% of $254,581) and $77,795 in unallocated CDBG funds accumulated from project savings and loan repayments, for a total of $294,189. Staff received two applications for funding from this category, which are included in Attachment 2: 1. The Diamond Bar Public Works Department requests $145,000 for the Area 5 Residential Neighborhood ADA Curb Ramps Improvement Project. 2. The Diamond Bar Community Development Department requests $1 60,000 for the Home Improvement Program. The total funding requested from these two applications is thus $305,000, or $10,811 in excess of the estimated funding available in this category. o Area 5 Residential Neighborhood ADA Curb Ramp Improvements Project Area 5 is bounded by the Pomona Freeway (SR 60), Diamond Bar Boulevard, and the neighborhoods generally to the north and west of Armitos Place and Highcrest Drive. The project is to provide ADA accessibility to existing sidewalks through the construction of ADA-compliant curb ramps at various locations where no curb ramps are presently provided. The application requests $145,000 to construct nine (9) curb ramps to comply with the latest ADA requirements, as well as CDBG administration costs. 6.1 Packet Pg. 82 o Home Improvement Program As stated, the HIP provides deferred zero-interest loans of up to $30,000 to eligible low and moderate-income homeowners for necessary home improvements as well as repairs to mitigate building and safety code deficiencies and/or violations. The requested allocation of $160,000 would accommodate at least five (5) loans, including program administration funds for the HIP consultant. Recommendation Because estimated funds are not available to fully fund these two requests, it is recommended that CDBG funding in the Public Works and Housing category be allocated as follows: Area 5 Curb Ramp Project $ 139,189 Home Improvement Program $ 155,000 Total $ 294,189 SUMMARY OF RECOMMENDATIONS: Total funding available for CDBG programs during the upcoming fiscal year is estimated to be $332,376. The funding requests received total $342,372, or $9,996 in excess of the estimated allocation. It is therefore recommended that the City Council approve the following distribution of funds, the total of which is equal to the estimated allocation: FISCAL YEAR 2024/25 CDBG PROGRAM ALLOCATION RECOMMENDATIONS PUBLIC SERVICES Senior Programs $38,187 Public Services Subtotal $38,187 PUBLIC WORKS & HOUSING Area 5 ADA Curb Ramp Improvements $139,189 Home Improvement Program $155,000 Public Works & Housing Subtotal $294,189 TOTAL CDBG FUNDING RECOMMENDATION FOR FY 2024/25 $332,376 ESTIMATED FY 2024/25 FUNDS AVAILABLE $332,376 PREPARED BY: 6.1 Packet Pg. 83 REVIEWED BY: Attachments: 1. 6.1.a Resolution No. 2024-02 - FY 2024/25 CDBG Allocations 2. 6.1.b FY 2024/2025 CDBG Program Applications 6.1 Packet Pg. 84 RESOLUTION NO. 2024-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR, CALIFORNIA, APPROVING THE CITY’S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEAR 2024/2025. WHEREAS, On August 22, 1974, the President of the United States signed into law the Housing and Community Development Act of 1974 (Act); and WHEREAS, the primary goals of Title 1 of the Act are the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income; and WHEREAS, the City of Diamond Bar has received notification of the availability of $254,581 in Fiscal Year 2024/2025 Federal Community Development Block Grant (CDBG) funds to further the attainment of these goals; and WHEREAS, the City has an estimated amount of $77,795 in unallocated CDBG funds accumulated from project savings and deferred loan repayments; and WHEREAS, the combined total of $332,376 in CDBG funds is available to use for FY 2024/2025 projects; and WHEREAS, applications have been submitted from community organizations and City Departments for the utilization of these funds; and WHEREAS, the City has published information regarding eligible activities under the Act and met with all interested groups and conducted a public hearing to solicit comments and suggestions from the community for the utilization of these funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows: Section 1. The funding allocation for the 2024/2025 Program year shall be: PUBLIC SERVICE $38,187 Senior Programming $38,187 PUBLIC WORKS AND HOUSING $294,189 Home Improvement Program (HIP) $155,000 Area 5 Residential Neighborhood ADA $139,189 Curb Ramps Improvements Project 6.1.a Packet Pg. 85 Resolution No. 2024-02 2 Section 2. The City Manager is authorized and directed to submit the City’s final Planning Summary for Fiscal Year 2024/2025 to the County of Los Angeles, reflecting the funding allocations set forth herein. Should the City’s final allocation increase or decrease by twenty-five percent (25%) or less from the figures contained herein, including proceeds from HIP loan repayments, the City Manager is authorized to administratively adjust (i.e., increase or decrease) the revised funds to eligible activities as necessary. Should the final allocation differ by more than 25%, adjustments to fund allo cations shall be subject to City Council review and approval. Section 3. The City Manager is authorized to execute the contractual and related documents to be prepared by the County of Los Angeles that are required for the implementation of the projects/programs set forth herein. Section 4. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED, AND ADOPTED this 16th day of January, 2024. CITY OF DIAMOND BAR __________________________ Stan Liu, Mayor ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, California, do hereby certify that the foregoing Resolution was duly and regularly passed, approved and adopted by the City Council of the City of Diamond Bar, California at its regular meeting he ld on the 16th day of January, 2024, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: __________________________ Kristina Santana, City Clerk 6.1.a Packet Pg. 86 MEMORANDUM Parks and Recreation staff have reviewed the requests submitted for the allocation of CDBG funds for the 2024/25 FY and recommends the following allocation: 1. City Senior Program: a. Program Supplies $2,772.00 b. Recreation Specialist salary $34,600.00 $37,372.00 Note: Remainder of City Senior Programs costs will be submitted in the proposed 2024/25 FY General Fund budget for review and consideration. 2. Liability Insurance for six Senior Clubs $6,000.00 Diamond Bar Senior Citizens Club Diamond Bar Evergreen Senior Association Sunshine Seniors Association Diamond Age Senior Club Super Diamond Age Senior Club Federation of Hindus Association Note: CDBG funds for senior organizations are held by the City and paid as reimbursement after required documentation demonstrates CDBG eligibility of expenses. Grand Total Recommended Senior Allocation: $43,372.00 To: Diana Cho, CDBG Consultant From: Christy Murphey, Recreation Superintendent cc: Ryan Wright, Parks and Recreation Director Date: November 17, 2023 Re: CDBG Recommended Allocation for Senior Programs – 2024/25 Fiscal Year 6.1.b Packet Pg. 87 CITY OF DIAMOND BAR COMMUNITY DEVELOPMENT BLOCK GRANT REQUEST FOR PROPOSALS 2024-2025 PROGRAM YEAR Funding is contingent upon the project's eligibility under the 1974 Housing and Community Development Act as amended and City Council approval. This application must be completed, and supplemental information regarding the organization and proposed project may be attached. The minimum funding request is $10,000 per project. APPLICATION DEADLINE: Friday, November 17, 2023 3:00 p.m. APPLICATION SUMMARY Organization: City of Diamond Bar Project Name: Senior Programming Amount Requested: $43,372.00 Location of Project: Diamond Bar Center, 1600 Grand Ave., Diamond Bar, CA 91765 Funds would be used to: Conduct educational and social programs to enrich the lives of local seniors. These would include but not limited to: seminars, workshops, classes, special events, and excursions. GENERAL INFORMATION Organization Address: 21810 Copley Drive City: Diamond Bar Telephone/Fax Number: 909.839.7074 E-mail Address: cmurphey@diamondbarca.gov Contact Person/Title: Christy Murphey, Recreation Superintendent Officials authorized to represent organization and expend funds: Name: Andrew Chou Title: Mayor Name: Dan Fox Title: City Manager Federal I.D Number/Non-Profit Status: 95-4210629 This application is proposing a new existing X Project. (Check). Has the project received past funding from the City of Diamond Bar? YES If yes, please identify the year/amount and source of funding: Funded annually, most recently FY 2023/2024 6.1.b Packet Pg. 88 GOALS AND OBJECTIVE OF PROJECT Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds. Provide Senior programming for up to 385 persons per day. Develop and conduct a variety of recreational and informational classes, seminars, workshops, and events which meet the diverse needs of the seniors in Diamond Bar. Describe the specific purpose of the project; identify the problems the project is intended to solve, and the age group of those to be served. Meet the human services and recreational needs of a senior population with diverse cultural backgrounds. Age groups to be served are 55 and over. Identify and describe the geographic boundaries of the target area. (Attach a map if appropriate). Primary services area is Diamond Bar. Neighboring communities are serviced as well. PROJECT CLIENT PROFILE Diamond Bar clients assisted in previous year: 34,639 client contacts Diamond Bar clients assisted which meet the low/moderate income requirements: Presumed benefit. Diamond Bar clients expected to be assisted in new project year: 350 Clients and 30,000 Client Contacts Describe the characteristics of client population in target area, including age, sex, income level, and ethnic background. Relate how the project will meet the federal requirements of benefiting low/moderate income persons. 6.1.b Packet Pg. 89 The characteristics of client population in target area are seniors aged 55 and over. It is a mixed population by gender, however predominately female. The income level is presumed low to moderate and the ethnic background is 59% Asian and Pacific Islander, 27% White, 4% Black, 4% 2+ races and 6% other (including 80% non-Hispanic or Latino and 20% Hispanic or Latino). Is your organization familiar with the CDBG electronic client data requirements? YES Is your organization familiar with the CDBG reporting requirements? YES FINANCIAL INFORMATION Please attach a proposed budget of the project. Include all items that CDBG funds are being requested to be used for. Include all other sources of funding and the total budget of the organization. I hereby certify that if funds are granted to our organization they will be used to benefit low and low/moderate income residents of the City of Diamond Bar. We understand that the formal agreement with the City will define other reporting provisions and federally required assurances. Signature: Christy Murphey Title: Recreation Superintendent Date: 11.17.2023 6.1.b Packet Pg. 90 PROJECTED GENERAL FUND EXPENDITURES 31,783.18$ PROJECTED REVENUE -$ CDBG REQUEST 43,372.00$ PROJECTED PROGRAM COST 75,155.18$ PROJECTED PROGRAM COST DIFFERENCE 31,783.18$ PERSONNEL SERVICES- CDBG 62,883.18$ Salary 225-225440-50010 34,600.00$ Salary - General Fund 28,283.18$ 12,272.00$ 6 Clubs Liability Insurance 225-225440-54900 6,000.00$ Program Supplies 225-225440-51200* 2,772.00$ Program Supplies 100-100520-51200 3,500.00$ CITY OF DIAMOND BAR Recreation Specialist/Senior Club Insurance Budget Discussion FY 2024/2025 Senior Program Supplies 6.1.b Packet Pg. 91 GRADE CLASSIFICATION A B C D E F G 6NE Maintenance Worker $22.01 $23.11 $24.27 $25.48 $26.75 $28.09 $29.49 $1,760.77 $1,848.80 $1,941.24 $2,038.31 $2,140.22 $2,247.23 $2,359.59 $3,814.99 $4,005.74 $4,206.03 $4,416.33 $4,637.15 $4,869.01 $5,112.46 $45,779.92 $48,068.91 $50,472.36 $52,995.98 $55,645.78 $58,428.06 $61,349.47 7NE Recreation Specialist $22.56 $23.69 $24.87 $26.12 $27.42 $28.79 $30.23 Senior Office Specialist $1,804.78 $1,895.02 $1,989.77 $2,089.26 $2,193.73 $2,303.41 $2,418.58 $3,910.37 $4,105.88 $4,311.18 $4,526.74 $4,753.07 $4,990.73 $5,240.26 $46,924.40 $49,270.62 $51,734.15 $54,320.85 $57,036.90 $59,888.74 $62,883.18 10NE Senior Maintenance Worker $24.29 $25.51 $26.78 $28.12 $29.53 $31.01 $32.56 $1,943.56 $2,040.73 $2,142.77 $2,249.91 $2,362.40 $2,480.52 $2,604.55 $4,211.04 $4,421.59 $4,642.67 $4,874.80 $5,118.54 $5,374.47 $5,643.19 $50,532.46 $53,059.08 $55,712.04 $58,497.64 $61,422.52 $64,493.65 $67,718.33 14NE Administrative Assistant $26.82 $28.16 $29.57 $31.04 $32.60 $34.23 $35.94 Permit Technician $2,145.32 $2,252.59 $2,365.22 $2,483.48 $2,607.65 $2,738.04 $2,874.94 $4,648.20 $4,880.61 $5,124.64 $5,380.87 $5,649.92 $5,932.41 $6,229.03 $55,778.39 $58,567.31 $61,495.67 $64,570.46 $67,798.98 $71,188.93 $74,748.38 17NE Accounting, HR, Network/Systems, $28.88 $30.32 $31.84 $33.43 $35.10 $36.86 $38.70 Planning, Engineering Technician $2,310.28 $2,425.79 $2,547.08 $2,674.44 $2,808.16 $2,948.56 $3,095.99 Recreation Coordinator $5,005.60 $5,255.88 $5,518.68 $5,794.61 $6,084.34 $6,388.56 $6,707.98 Senior Administrative Assistant $60,067.22 $63,070.58 $66,224.11 $69,535.31 $73,012.08 $76,662.68 $80,495.82 Public Works Inspector 18NE Neighborhood Improvement Officer $29.60 $31.08 $32.63 $34.27 $35.98 $37.78 $39.67 Media Specialist $2,368.03 $2,486.44 $2,610.76 $2,741.30 $2,878.36 $3,022.28 $3,173.39 $5,130.74 $5,387.28 $5,656.64 $5,939.47 $6,236.45 $6,548.27 $6,875.68 $61,568.88 $64,647.33 $67,879.69 $71,273.68 $74,837.36 $78,579.23 $82,508.19 19NE Facilities & Asset Maintenance Tech.$30.34 $31.86 $33.45 $35.12 $36.88 $38.72 $40.66 $2,427.23 $2,548.60 $2,676.03 $2,809.83 $2,950.32 $3,097.84 $3,252.73 $5,259.01 $5,521.96 $5,798.06 $6,087.96 $6,392.36 $6,711.98 $7,047.58 $63,108.11 $66,263.51 $69,576.69 $73,055.52 $76,708.30 $80,543.71 $84,570.90 21NE Administrative Coordinator $31.88 $33.47 $35.14 $36.90 $38.75 $40.68 $42.72 Executive Assistant $2,550.11 $2,677.62 $2,811.50 $2,952.07 $3,099.68 $3,254.66 $3,417.40 Accountant $5,525.25 $5,801.51 $6,091.58 $6,396.16 $6,715.97 $7,051.77 $7,404.36 Permit Services Coordinator $66,302.95 $69,618.09 $73,099.00 $76,753.95 $80,591.65 $84,621.23 $88,852.29 23NE Assistant Engineer $33.49 $35.16 $36.92 $38.77 $40.71 $42.74 $44.88 Assistant Planner $2,679.21 $2,813.17 $2,953.83 $3,101.52 $3,256.60 $3,419.43 $3,590.40 Sr. Neighborhood Improvement Officer $5,804.96 $6,095.21 $6,399.97 $6,719.97 $7,055.97 $7,408.77 $7,779.21 $69,659.55 $73,142.53 $76,799.66 $80,639.64 $84,671.62 $88,905.21 $93,350.47 Effective July 1, 2023 Approved by City Council on June 6, 2023 Schedule CCITY OF DIAMOND BAR COMPENSATION PLAN BY POSITION FY 2023 - 2024 FULL-TIME NON-EXEMPT BENEFITED POSITIONS 55% of $62,883.18 (Step G) is$34,585.75. 6.1.b Packet Pg. 92 CITY OF DIAMOND BAR COMMUNITY DEVELOPMENT BLOCK GRANT REQUEST FOR PROPOSALS 2024-2025 PROGRAM YEAR Funding is contingent upon the project's eligibility under the 1974 Housing and Community Development Act as amended and City Council approval. This application must be completed, and supplemental information regarding the organization and proposed project may be attached. The minimum funding request is $10,000 per project. APPLICATION DEADLINE: Friday, November 17, 2023 3:00 p.m. APPLICATION SUMMARY Organization: City of Diamond Bar Project Name: Home Improvement Amount Requested: $160,000 Location of Project: 21800 Copley Drive Funds would be used to: Provide grants and/or deferred loans to eligible low and mode- rate income homeowners for necessary improvements as well as to mitigate building and safety violations. GENERAL INFORMATION Organization Address: 21810 Copley Dr. City: Diamond Bar Telephone/Fax Number: (909) 839-7080 E-mail Address: vmoss@diamondbarCA.gov Contact Person/Title: City Staff Officials authorized to represent organization and expend funds: Name: Title: Name: Title: Federal I.D Number/Non-Profit Status: N/A This application is proposing a new existing X Project. (Check). Has the project received past funding from the City of Diamond Bar? Yes 6.1.b Packet Pg. 93 If yes, please identify the year/amount and source of funding: 2023-2024/$138,005 GOALS AND OBJECTIVE OF PROJECT Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds. The objective of the Home Improvement Program is to provide grants and loans to assist low and moderate-income residential owner/occupants in maintaining the City’s existing residential neighborhoods through home rehabilitation. Describe the specific purpose of the project; identify the problems the project is intended to solve, and the age group of those to be served. The purpose of the Home Improvement Program is to preserve and enhance single family residential neighborhoods through out the City; to provide loans to eligible homeowners of single family detached dwellings for the preservation of safe, decent and sanitary housing; correct hazardous structural conditions; to make modifications necessary to provide ADA access to dwellings; to improve the overall exterior appearance of the home to eliminate blight; and correct exterior code violations, through the provision of loans. The Home Improvement Program is not directed toward a specific age group, but rather to eliminate blight and maintain affordable housing stock for low and moderate- income residents. Identify and describe the geographic boundaries of the target area. (Attach a map if appropriate). Citywide. PROJECT CLIENT PROFILE Diamond Bar clients assisted in previous year: 22/23-4 23/24- 3-4 projected Diamond Bar clients assisted which meet the low/moderate income requirements: All Diamond Bar clients expected to be assisted in new project year: 24/25- 3-4 Describe the characteristics of client population in target area, including age, sex, income level, and ethnic background. Relate how the project will meet the federal requirements of benefiting low/moderate income persons. Is your organization familiar with the CDBG electronic client data requirements? Yes Is your organization familiar with the CDBG reporting requirements? Yes 6.1.b Packet Pg. 94 FINANCIAL INFORMATION Please attach a proposed budget of the project. Include all items that CDBG funds are being requested to be used for. Include all other sources of funding and the total budget of the organization. Proposed HIP Budget (2024-2025) $160,000 Estimated Construction Cost $121,500 Lead/Asbestos Testing $ 5,000 Title Report Fees $ 1,500 Rehabilitation Administration $ 32,000 I hereby certify that if funds are granted to our organization they will be used to benefit low and low/moderate income residents of the City of Diamond Bar. We understand that the formal agreement with the City will define other reporting provisions and federally required assurances. Signature: Title: Housing Rehabilitation Coordinator Date: 11/1/23 6.1.b Packet Pg. 95 CITY OF DIAMOND BAR COMMUNITY DEVELOPMENT BLOCK GRANT REQUEST FOR PROPOSALS 2024-2025 PROGRAM YEAR Funding is contingent upon the project's eligibility under the 1974 Housing and Community Development Act as amended and City Council approval. This application must be completed, and supplemental information regarding the organization and proposed project may be attached. The minimum funding request is $10,000 per project. APPLICATION DEADLINE: Friday, November 17, 2023 3:00 p.m. APPLICATION SUMMARY Organization: City of Diamond Bar Project Name:Area 5 Residential Neighborhood ADA Curb Ramps Improvements Project Amount Requested: $145,000 Location of Project: Various locations within the City’s ‘Area 5’ neighborhood Funds would be used to:Construct nine new or upgraded ADA-compliant sidewalk curb ramps in the Area 5 residential neighborhood GENERAL INFORMATION Organization Address:21810 Copley Dr City: Diamond Bar Telephone/Fax Number:(909) 839-7038 E-mail Address: mbhatanawin@diamondbarca.gov Contact Person/Title:Michael Bhatanawin, P.E. - Associate Engineer Officials authorized to represent organization and expend funds: Name:David G. Liu, P.E.Title:Director of Public Works/City Engineer Name:Title: Federal I.D Number/Non-Profit Status:N/A 6.1.b Packet Pg. 96 This application is proposing a new x existing Project. (Check). Has the project received past funding from the City of Diamond Bar? No If yes, please identify the year/amount and source of funding:N/A GOALS AND OBJECTIVE OF PROJECT Provide a detailed description of the proposed project by describing precisely what is to be accomplished with the requested funds. The proposed project would utilize Community Development Block Grant (CDBG) funds for the project construction phase of new or upgraded handicapped accessible sidewalk curb ramps at various locations within the Area 5 residential neighborhood (Area) as shown in the attached Exhibit “A”. The curb ramps will be constructed to meet current standards of the Americans with Disabilities Act (ADA). Nine ADA-compliant sidewalk curb ramps will be built in the Area at various locations where currently there is not a ramp or the existing ramp is not compliant with the current standards. The constructed ramps will provide handicapped access and a safer environment to the public. Describe the specific purpose of the project; identify the problems the project is intended to solve, and the age group of those to be served. As recommended in the ADA Self Evaluation, this project is part of the City’s efforts to upgrade all non-ADA-compliant curb ramps citywide. The project would provide for the construction of curb ramps where no curb ramps currently exist and the reconstruction of curb ramps that are too steep, deteriorated, not wide enough, or create other accessibility barriers for severely disabled members of the public that use wheelchairs, canes, walkers or crutches. Identify and describe the geographic boundaries of the target area. (Attach a map if appropriate). The project target area is located within Area 5 Residential Neighborhood as shown in the attached Exhibit “A”. The proposed locations of the ramps are marked in the map. PROJECT CLIENT PROFILE Diamond Bar clients assisted in previous year: N/A (This is new project) Diamond Bar clients assisted which meet the low/moderate income requirements: General public Diamond Bar clients expected to be assisted in new project year: General public 6.1.b Packet Pg. 97 Describe the characteristics of client population in target area, including age, sex, income level, and ethnic background. Relate how the project will meet the federal requirements of benefiting low/moderate income persons. Is your organization familiar with the CDBG electronic client data requirements? Yes Is your organization familiar with the CDBG reporting requirements?Yes FINANCIAL INFORMATION Please attach a proposed budget of the project. Include all items that CDBG funds are being requested to be used for. Include all other sources of funding and the total budget of the organization. See attached Exhibit ‘B’ for project budget I hereby certify that if funds are granted to our organization they will be used to benefit low and low/moderate income residents of the City of Diamond Bar. We understand that the formal agreement with the City will define other reporting provisions and federally required assurances. Signature: Title: Director of Public Works/City Engineer Date: 11/15/2023 6.1.b Packet Pg. 98 6.1.b Packet Pg. 99 EXHIBIT "B" CITY OF DIAMOND BAR COMMUNITY DEVELOPMENT BLOCK GRANT REQUEST FOR PROPOSALS 2024-2025 PROGRAM YEAR PRELIMINARY COST ESTIMATE FOR 2024-2025 CDBG PROGRAM CURB RAMP INSTALLATION ITEM NO.DESCRIPTION QUANTITY UNIT UNIT COST TOTAL COST 1 NEW ADA CURB RAMPS 9 EACH $13,300 $119,700 CDBG ADMINISTRATIVE COST $11,970 SUBTOTAL $131,670 CONTINGENCY (10% OF SUBTOTAL)$13,167 TOTAL $144,837 SAY $145,000 6.1.b Packet Pg. 100 Agenda #: 7.1 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: TRANSMITTAL OF THE FISCAL YEAR 2022/23 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR). STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: A. Receive and File the Fiscal Year 2022/23 Annual Comprehensive Financial Report; B. Approve an appropriation of Unassigned General Fund Reserves in the amount of $76,000 to the OPEB Reserve Fund (105); C. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Park & Facility Development Fund (262); and D. Approve an appropriation of Unassigned General Fund Reserves in the amount of $1,204,585 to the Building Maintenance & Replacement Fund (504). FINANCIAL IMPACT: The recommended action to appropriate funding in the amount of $76,000 to the OPEB Reserve fund, and $1,204,585 to both the Park & Facility Development Fund (262) and the Building Maintenance & Replacement Fund (504) will decrease the General Fund Unassigned Fund Balance by $2,485,170. The revised General Fund Unassigned Fund Balance will be $20,473,897. BACKGROUND: The Fiscal Year (FY) 2022/23 annual audit has been completed by the City’s independent audit firm of Lance, Soll and Lunghard, LLP (LSL). The City’s Finance Department, in concert with LSL, has prepared the FY 2022/23 Annual Comprehensive Financial Report (ACFR). The City’s Audit Subcommittee, which is comprised of Mayor Stan Liu and Mayor Pro Tem Chia Yu Teng, met on January 10, 2024 with the City 7.1 Packet Pg. 101 Manager, Finance Director and an L SL representative to discuss the results of the audit. In the opinion of LSL, the financial statements reflect fairly the financial position and results of operations for the fiscal year ended June 30, 2023. The auditors found no instances of material weaknesses in the City’s internal controls and no instances of non - compliance with certain provisions of laws, regulations, contracts or grants, which could have a material effect on the determination of financial statement amounts. They also indicated that there were no disagreements with management in completing their audit. The ACFR has been prepared in conformance with the requirements of the Government Accounting Standards Board (GASB) Statement No. 34. As a result, the report format includes the Management Discussion and Analysis, Required Supplementary Information, and the Government-wide Financial Statements which include the Statement of Net Position and Statement of Activities. A copy of the FY 2022/23 ACFR is included as Attachment 1. ANALYSIS: Revenues Citywide revenues for FY 2022/23 from all sources (i.e., all funds) was $44.5 million, which exceeded last year’s total by $5.3 million (or 13%). General Fund revenues were $33.4 million, an increase of $3.5 million (or 12%) from the prior year, and consistent with the revised budget of $32.7 million. As with the prior year, $3.4 million in General Fund revenue is attributable to the receipt of a second, and final, installment of ARPA monies. The FY 2022/23 year-over-year increase of $3.5 million is thus primarily a result of revenue growth across key sources such as: property tax in lieu (increased $326 thousand), sales taxes (increased $471 thousand), transient occupancy taxes (increased $103 thousand), property taxes (increased $511 thousand), investment earnings (increased $1.1 million), the Diamond Bar Center (increased $330 thousand) and fees for services related to engineering, building & safety, and recreation classes (increased $375 thousand in aggregate). Expenditures Citywide expenditures for all City programs and activities in FY 2022/23 totaled $37.4 million, an increase of $3.9 million over the previous year. The FY 2022/23 budget was developed with the intention of restoring programs and services across the organization, in particular in the General Fund. As such, fiscal year budgeted and actual expenditures were higher in FY 2022/23 than in FY 2021/22. Specifically, the FY 2022/23 General Fund budget totaled $32.8 million compared to the FY 2021/22 revised budget of $30.5 million. In addition to restoring programs and services, the City also increased its capital improvement program. In FY 2020/21, the City had to scale back its capital program due to reduced revenues largely tied to the pandemic. In FY 2021/22, the City’s capital program increased from $3.5 million to $7.5 million. In FY 20 22/23, the City’s capital 7.1 Packet Pg. 102 program increased from $7.5 million to $16.0 million. While much of the funding comes from grants and other restricted revenues, the growth nonetheless helps explain the increase in the overall spending that occurred generally throughout all categories. General Fund Expenses – Budgetary Comparison Total General Fund expenditures for FY 2022/23 were $29.0 million, an amount that was $4.7 million below the revised budget of $33.7 million. This budgetary savings is mostly attributed to unutilized funds appropriated for transfer-out in support other funds in the amount of $1.4 million (of which $1.3 million is needed to support on -going capital improvement projects and will be set aside for use in the current FY 2023/24). In addition to these savings, there was a combined savings of $1.9 million for contracted & professional services across all departments, of which $639 thousand has been carried over for re-appropriation in the current FY 2023/24 to meet ongoing contractual obligations (e.g. consultant services for the Town Center Specific Plan). Lastly, personnel and other operating expenditures came in $1.4 million less than budgeted. General Fund Expenses – Year-Over-Year Comparison Compared to the prior FY 2021/22, total General Fund expenses increased $1.9 million, mainly due to an increase of $585 thousand in contractual & professional services, an increase of $1.0 million in personnel and other operating expenses, and an increase of $263 thousand in transfer-out to other funds. Reserve Balances Taken in aggregate, fund balances for all governmental funds were $63.2 million at the end of FY 2022/23, an increase of $7.3 million compared to FY 2021/22. Of this total, $34.6 million in reserves belong to the City’s General Fund which may be used to meet the City’s ongoing obligations to its citizens and creditors. Fund FY 2022/23 FY 2021/22 Change General Fund 34,600,596$ 30,226,704$ 4,373,892$ Other Governmental Funds 28,582,570 25,664,419 2,918,151 Totals 63,183,166$ 55,891,123$ 7,292,043$ CITY OF DIAMOND BAR Changes in Governmental Fund Balance Reserves The total General Fund reserve balance of $34.6 million represents an increase of $4.4 million compared to last year. This is a favorable result under any circumstances, but should be viewed with the understanding that this amount includes $1.2 million in savings generated by the second tranche of ARPA monies. A history of governmental fund balances for the prior 10 years is shown below. More information on reserve balances can be found in Note 11 of the ACFR and in the Statistical Section. 7.1 Packet Pg. 103 Reserve Funding The FY 2022/23 ACFR includes the fund balance reserve reporting methodology set forth in GASB Statement No. 54. It is a long -term goal to of the City to build unrestricted reserve funds to provide flexibility, respond to emergencies, fund new projects and replace and maintain facilities, capital equipment and assets. Therefore, the City Council approved an updated Fund Balance and Reserves Policy on August 20, 2019 (Res. No. 2019-36) which established an amount of no less than 25% of General Fund expenditures as a formal commitment of fund balance to be set aside as an emergency contingency for Federal, State or Local emergencies. A copy of the Fund Balance and Reserves Policy is included as Attachment 2. At June 30, 2023, the amount committed to emergency contingencies totals $7,981,243 (25% of the FY 2023/24 Adopted General Fund Budget). This amount is included within the $34.6 million General Fund reserve balance noted above and is highlighted separately in the below schedule which shows balances for key operating reserves. 7.1 Packet Pg. 104 2023 2022 Change General Fund Committed Reserves Contingency Reserve 7,981,243$ 7,864,770$ 116,473$ Assigned Reserves Community organization support 2,062 - 2,062$ OPEB Reserve 291,182 353,283 (62,101) Technology Reserve 591,346 442,418 148,928 Capital Improvement Projects 1,308,920 - 1,308,920 Tres Hermanos Conservancy Reserve 6,910 20,726 (13,816) General Plan Update Reserve 518,504 929,558 (411,054) Law Enforcement Reserve 941,362 957,126 (15,764) Unassigned Reserve 22,959,067 19,658,823 3,300,244 Total General Fund 34,600,596 30,226,704 4,373,892 Park Development Fund Park and Facility Reserve 1,567,641 873,636 694,005 Vehicle Maintenance & Replacement Fund Maintenance & Replacement Reserve 316,864 230,973 85,891 Building Maintenance & Replacement Fund Maintenance & Replacement Reserve 1,062,451 1,164,608 (102,157) Computer Equipment Replacement Fund Equipment Replacement Reserve 2,032,428 1,068,686 963,742 Grand Totals 39,579,980$ 33,564,607$ 6,015,373$ CITY OF DIAMOND BAR Highlighted Operating Fund Reserves Fiscal Year Ended June 30, As shown in the table above, as of June 30, 2023, the total Unassigned portion of the General Fund Reserve increased $3.3 million. Of this amount, $213 thousand has been carried over for re-appropriation in the current FY 2023/24 to meet ongoing contractual obligations, leaving a net increase of $3,087,463 available for funding other reserves pursuant to Section 5 of the aforementioned Fund Balance and Reserves Policy. Other Post-Employment Benefits (OPEB) Fund As required by GASB Statement No. 75, the ACFR includes disclosure of the City’s Other Post-Employment Benefits (OPEB) liability. In connection with the retirement benefits for employees provided through California Public Employees Retirement System (CalPERS), the City provides post-retirement health care benefits to retirees through the CalPERS Health Benefits program. Although the retiree pays most of the cost of this benefit the City is required to pay a small portion of this cost – the City’s OPEB obligation is derived from this benefit. The City’s total OPEB obligation at June 30, 2023 was $1,260,651. However, when taking into account the City’s OPEB trust fund balance of $645,436 (51% of liability) held with the California Employers’ Retiree Benefit Trust (CERBT) the net liability reduces to $615,215. Additional funding in the amount of $291,182 (23% of liability) is also set aside in a n OPEB Reserve fund held 7.1 Packet Pg. 105 by the City for future contributions to the trust, for a total funding status of 74%, which is an increase from the 71% funding status as of the prior year ending June 30, 2022, and a significant improvement from the 57% funding status the year ending June 30, 2021. This funding level is considered quite favorable when compared to other cities but still falls below the desired 80% funding status established in the City’s Fund Balance and Reserves Policy. As a result, it is recommended that the City Council appropriate an additional $76,000 to the OPEB Reserve fund balance, bringing total assets to 80% of the liability. More information on OPEB may be found in Note 9 of the ACFR. Park & Facility Development Fund and Building Facility & Maintenance Fund A key provision (Section 5) of the Fund Balance and Reserve s Policy sets forth that after the minimum requirements set forth in Section 4 of the policy have been met, any remaining surplus at the end of the year shall be allocated to three funds in order to provide for the long-term fiscal sustainability of the City. These allocations provide that 40% shall be transferred to the Park & Facility Development Fund, 40% shall be transferred to the Building Facility & Maintenance Fund and the remaining 20% shall be returned to the Unassigned General Fund Reserves. A remaining surplus in the amount of $3,011,463 is available for this allocation; therefore, it is recommended that the City Council appropriate $1,204,585 (40%) to both the Park & Facility Development Fund and to the Building Facility & Maintenance Fund consistent with the Fund Balance and Reserves Policy. As a result of all reserve funding recommendations, the General Fund Unassigned Fund Balance will be $20.5 million, a net increase of $815 thousand from the prior year. Pension Liability GASB Statement No. 68 requires the inclusion of Net Pension Liability in the Statement of Net Position. As of June 30, 2023, the City reported a total net pension liability of $7,903,769 (an increase from the prior year amount of $3,014,631). As of the most recent valuation date of June 30, 2022, the City’s miscellaneous plan is approximately 75.7% funded, and the PEPRA Miscellaneous plan is 87.7% funded. These funding amounts reflect a decrease from the prior year funding amounts of 87.1% and 105.6%, respectively, and are solely the result of negative fluctuations in the market rate return of the statewide portfolio managed by CalPERS. More information on pensions may be found in Note 8 of the ACFR. Excellence in Financial Reporting The Finance Department has submitted the FY 2022/23 ACFR to the Government Finance Officers Association (GFOA) for consideration to receive the Certificate of Achievement for Excellence in Financial Reporting program. The City of Diamond Bar has been honored to receive this award for the past twenty-seven consecutive years. PREPARED BY: 7.1 Packet Pg. 106 REVIEWED BY: Attachments: 1. 7.1.a City of Diamond Bar FY 2022/23 ACFR 2. 7.1.b 2019-01 - Fund Balance and Reserves Policy 7.1 Packet Pg. 107 7.1.a Packet Pg. 108 CITY OF DIAMOND BAR, CALIFORNIA Annual Comprehensive Financial Report June 30, 2023 Prepared by: Finance Department 7.1.a Packet Pg. 109 THIS PAGE INTENTIONALLY LEFT BLANK 7.1.a Packet Pg. 110 CITY OF DIAMOND BAR, CALIFORINA Annual Comprehensive Financial Report June 30, 2023 Table of Contents Page(s) INTRODUCTORY SECTION Letter of Transmittal ..................................................................................................................................................... i GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................. vi Organization Chart .................................................................................................................................................... vii List of Elected and Administrative Officials ............................................................................................................. viii FINANCIAL SECTION Independent Auditors’ Report .................................................................................................................................... 1 Management's Discussion and Analysis (Required Supplementary Information) ..................................................... 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position ........................................................................................................................... 20 Statement of Activities ................................................................................................................................ 21 Fund Financial Statements Balance Sheet – Governmental Funds ...................................................................................................... 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ................................................................................................................. 23 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................. 24 Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities ................................................ 25 Statement of Net Position – Proprietary Funds .......................................................................................... 26 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ...................................................................................................................... 27 Statement of Cash Flows – Proprietary Funds ........................................................................................... 28 Notes to Basic Financial Statements ............................................................................................................. 29 7.1.a Packet Pg. 111 CITY OF DIAMOND BAR, CALIFORNIA Annual Comprehensive Financial Report June 30, 2023 Table of Contents Page(s) REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Information: Budgetary Comparison Schedule – General Fund ................................................................................. 5 8 Budgetary Comparison Information: Budgetary Comparison Schedule – Traffic Improvement Fund ............................................................. 59 Schedule of Proportionate Share of the Net Pension Liability ........................................................................ 60 Schedule of Plan Contributions – Pension ..................................................................................................... 62 Schedule of Changes in the Net OPEB Liability and Related Ratios ............................................................. 6 4 Schedule of Contributions – OPEB ................................................................................................................. 66 Notes to Required Supplementary Information .............................................................................................. 69 SUPPLEMENTAL INFORMATION Combining Balance Sheet .............................................................................................................................. 70 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................................................................ 78 Budgetary Comparison Schedules - Special Revenue Funds: State Gas Tax Fund .................................................................................................................................... 86 Proposition A Transit Fund .......................................................................................................................... 87 Proposition C Transit Fund ......................................................................................................................... 88 Integrated Waste Management Fund .......................................................................................................... 89 Sewer Mitigation Fund ................................................................................................................................. 90 Air Quality Improvement Fund ..................................................................................................................... 91 Road Maintenance & Rehab Fund .............................................................................................................. 92 Trails & Bikeways Fund ............................................................................................................................... 93 Beverage Center Recycling Grant Fund ..................................................................................................... 94 Used Oil Block Grant Fund .......................................................................................................................... 95 Park and Facility Development Fund........................................................................................................... 96 Community Development Block Grant (CDBG) Fund ................................................................................ 97 Citizens Option for Public Safety (COPS) Fund .......................................................................................... 98 California Law Enforcement Equipment Program (CLEEP) Fund ............................................................... 9 9 Landscape Maintenance District Fund ...................................................................................................... 100 Measure R Local Return Fund .................................................................................................................. 101 PEG Fees Fund ......................................................................................................................................... 102 Hazard Mitigation Grant Fund ................................................................................................................... 103 Waste Hauler Fund .................................................................................................................................... 104 CASP Fees (SB1186) ................................................................................................................................ 105 Measure A Neighborhood Parks Acts Fund .............................................................................................. 106 Street Beautification Fund ......................................................................................................................... 107 Measure W Return Fund ........................................................................................................................... 108 Measure M Local Return Fund .................................................................................................................. 109 7.1.a Packet Pg. 112 CITY OF DIAMOND BAR, CALIFORNIA Annual Comprehensive Financial Report June 30, 2023 Table of Contents Page(s) SUPPLEMENTAL INFORMATION (Continued) Budgetary Comparison Schedule – Capital Projects Fund: Capital Improvement Funds ...................................................................................................................... 110 Budgetary Comparison Schedule – Debt Service Funds: Public Financing Authority ......................................................................................................................... 111 Internal Service Funds: Combining Statement of Net Position ........................................................................................................... 112 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ......................................................................................................................................... 113 Combining Statement of Cash Flows ........................................................................................................... 114 STATISTICAL SECTION Financial Trends: Net Position by Component - Last Ten Fiscal Years .................................................................................... 117 Changes in Net Position - Last Ten Fiscal Years ......................................................................................... 118 Fund Balances of Governmental Funds - Last Ten Fiscal Years ................................................................. 120 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years .............................................. 122 Revenue Capacity: Property Tax Dollar Breakdown .................................................................................................................... 124 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .................................. 125 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ........................................................... 126 Top 10 Property Taxpayers - Current Fiscal Year and Ten Fiscal Years Ago ............................................. 127 Property Tax Levies and Collections - Last Ten Fiscal Years ...................................................................... 128 Debt Capacity: Ratios of Outstanding Debt by Type - Last Ten Fiscal Years....................................................................... 129 Direct and Overlapping Debt ........................................................................................................................ 130 Computation of Legal Debt Margin - Last Ten Fiscal Years ......................................................................... 131 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years .............................................................. 132 Taxable Sales by Category - Current Fiscal Year and Nine Fiscal Years Ago ............................................ 134 Operating Information: Full-Time Equivalent City Employees by Function - Last Ten Fiscal Years ................................................. 136 Operating Indicators by Function - Last Ten Fiscal Years ............................................................................ 137 Capital Asset Statistics by Function - Last Ten Fiscal Years ....................................................................... 138 7.1.a Packet Pg. 113 THIS PAGE INTENTIONALLY LEFT BLANK 7.1.a Packet Pg. 114 Stan Liu Chia Yu Teng Ruth M. Low Andrew Chou Steve Tye Mayor Mayor Pro Tem Council Member Council Member Council Member At-Large District 4 At-Large District 3 District 1 City of Diamond Bar I 21810 Copley Drive Diamond Bar CA 91765-4178 www.DiamondBarCA.gov I (909) 839-7000 December 11, 2023 Honorable Mayor and Council Members City of Diamond Bar Diamond Bar, California It is an honor to submit to you the Annual Comprehensive Financial Report (ACFR) of the City of Diamond Bar for the fiscal year ended June 30, 2023. This report consists of management’s representations concerning the finances of the City. Consequently, responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City’s management. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformance with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide assurance that the financial statements will be free from misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. The City’s financial statements have been audited by Lance, Soll, & Lunghard, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. i 7.1.a Packet Pg. 115 Honorable Mayor and Council Members December 11, 2023 The independent auditor concluded based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2023, were fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement and should be read in conjunction with the MD&A. The City’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE CITY OF DIAMOND BAR The City of Diamond Bar was incorporated on April 18, 1989, and is located at the eastern edge of Los Angeles County in the East San Gabriel Valley. Diamond Bar is primarily a residential community of about 57,000, situated among the meandering hills and valleys of Brea Canyon. Many desired services can be found in Diamond Bar's shopping and business centers. Recreational opportunities within the City include more than 75 acres of developed park facilities, hiking trails, a community center, a County-owned and operated 18- hole public golf course and more than 370 acres of undeveloped publicly owned open space. Diamond Bar is also strategically located at the junction of the SR-57 and SR-60 freeways with easy access to I-10 and SR-71 freeways. This makes Diamond Bar a desirable and convenient location to live and work within close proximity to Los Angeles, Orange, Riverside and San Bernardino counties. Diamond Bar is a General Law city and operates under the council-manager form of government. Policy making and legislative authority are vested in a five- member City Council. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing Commissioners, and hiring both the City Manager and contracting for City Attorney services. The Council Members are elected by districts on a non-partisan basis and serve four-year staggered terms, with elections held every other year. Each December, the City Council selects a Mayor and Mayor Pro Tem from its membership. The City Manager is responsible for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments. The City of Diamond Bar operates primarily as a “contract city” utilizing agreements with other governmental agencies, private sector firms and individuals to provide many of its essential services. This includes law enforcement ii 7.1.a Packet Pg. 116 Honorable Mayor and Council Members December 11, 2023 services, animal services, building and safety services, engineering, road maintenance and landscape maintenance. The Los Angeles County Fire District provides fire protection, which is independent of the City. Los Angeles County also provides library services through a Library District, and sewer and sanitation services through a Sanitation District. Funds for these services are collected through property tax bills and are disbursed directly by the Los Angeles County Tax Collector's Office to those entities. Water services for the City are provided by the Walnut Valley Water District. Refuse collection is provided by private waste collection companies. Additionally, schools are provided by both the Walnut Valley Unified School District and the Pomona Unified School District. Accordingly, none of these activities are included in this report. ECONOMIC CONDITION AND OUTLOOK This past year marks the end of the Emergency Declarations at the federal, state, county and local levels related to the COVID-19 global pandemic. While not totally eradicated, there are now adequate tools and resources in place to minimize the impacts of COVID-19 on the health care system and individuals allowing for the complete restoration of City programs and services. From a financial perspective, there is reason to be more optimistic. Because of the severe financial impacts to cities across the nation, on March 11, 2021 the President signed the American Rescue Plan Act (ARPA) which is a $1.9 trillion relief package to mitigate the continuing effects of the COVID-19 pandemic. Of that amount, approximately $64 billion has been allocated to provide direct and flexible financial resources for every city and town in the nation. The City of Diamond Bar has received its full allocation of American Rescue Plan Act (ARPA) Funds over the past two years totaling just over $6.8 million. In January 2022, the U.S. Treasury issued a final rule that provides for municipalities to attribute up to $10 million in ARPA Funds to be used on governmental services. As such, these funds have been used for a broad range of purposes including the replacement of lost revenue, restoration of City programs and services, COVID- 19 expenses not otherwise reimbursed, and general governmental services and projects that help build resiliency and financial stability for the residents and businesses of the City. The Adopted FY 2023/24 Budget provides a positive outlook and continues to expand many City programs and services, advance deferred maintenance and Capital Improvement Projects, and focuses on key initiatives consistent with the City’s recently adopted 2024-2027 Strategic Plan. However, the City continues to remain watchful given the pressure on rising costs driven by a competitive labor market, higher fuel prices and other economic indicators that may lead to a iii 7.1.a Packet Pg. 117 Honorable Mayor and Council Members December 11, 2023 recession in the near term; therefore, Economic Development continues to be an area of priority for the City. Accordingly, the FY 2023/24 Budget incorporates resources dedicated to continue planning efforts to create a pedestrian-oriented and walkable Town Center and programs to retain current businesses and attract new businesses that increase the City’s employment base and generate revenue. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Diamond Bar for its annual comprehensive financial report for the fiscal year ended June 30, 2022. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized annual comprehensive financial report (ACFR), with contents that conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City of Diamond Bar has received the Certificate of Achievement for the last twenty- eight consecutive years (fiscal years ended 1995 through 2022). We believe our current report continues to meet the Certificate of Achievement Program’s requirements and we will be submitting it to GFOA to determine its eligibility for another certificate. REPORTING ENTITY AND ITS SERVICES This Annual Comprehensive Financial Report includes all funds of the City. The City directly provides a limited range of services and contracts for several other services. The City's significant reliance on contracted services has the benefit of reducing expenses to the citizens of the City of Diamond Bar while simultaneously providing the City with a high degree of flexibility in responding to changing economic conditions. Contracted services include law enforcement protection, building and safety, street maintenance, park maintenance, capital improvement projects, animal control, attorney services and engineering. Staff provided services include: community development (which includes planning, building and safety administration, and neighborhood improvement), public works (which includes engineering, capital projects administration, street maintenance contract management, traffic and transportation matters, engineering contract management, park maintenance, landscape maintenance and solid waste contract management), parks & recreation (which includes senior services, iv 7.1.a Packet Pg. 118 Honorable Mayor and Council Members December 11, 2023 recreation services, community events and community center operation), public information, subsidized transit ticket sales, grant administration, financial management, administrative management, human resources and risk management, information systems and economic development. All of these activities are included in this report. INTERNAL CONTROLS The City of Diamond Bar’s accounting system has been developed by giving consideration to the adequacy of internal accounting controls. Internal accounting controls are implemented by the City to provide reasonable assurance that assets are safeguarded against loss from unauthorized use or disposition; and that the City’s financial records used for preparing financial statements are maintained in a reliable fashion. The concept of reasonable assurance recognizes that the cost of these controls should not exceed the benefits derived from them. The City’s internal controls accomplish these objectives. ACKNOWLEDGEMENTS The preparation of this Annual Comprehensive Financial Report was made possible by the dedicated service and excellence found within the City's Finance Department staff, and through the cooperation of the entire City staff. Each City staff member has my sincere appreciation for their cooperation and contributions in the preparation of this Report. I would like to thank Jason Jacobsen, Finance Director, for his prudent fiscal stewardship. In addition, I would also like to thank our independent auditor, Lance, Soll, and Lunghard, LLP, who provided expertise and advice in the preparation of the City's Annual Comprehensive Financial Report. In closing, without the leadership and support of the City Council of the City of Diamond Bar, the preparation of this Report would not have been possible. Sincerely, Daniel Fox City Manager v 7.1.a Packet Pg. 119 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Diamond Bar California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2022 Executive Director/CEO vi 7.1.a Packet Pg. 120 vii7.1.aPacket Pg. 121 OFFICIALS OF THE CITY OF DIAMOND BAR As of December 11, 2023 City Council Stan Liu, Mayor Chia Yu Teng, Mayor Pro Tem Andrew Chou, Council Member Ruth Low, Council Member Steve Tye, Council Member Administration and Department Heads City Manager Dan Fox Assistant City Manager Ryan McLean City Clerk Kristina Santana Director of: Parks & Recreation Ryan Wright Community Development Greg Gubman Finance Jason Jacobsen Information Systems Ken Desforges Public Works David Liu viii 7.1.a Packet Pg. 122 1611 E. Fourth Street, Suite 200 Santa Ana, CA 92701 (714) 569-1000 203 N. Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Diamond Bar, California Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Diamond Bar, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund and the major special revenue funds, as listed in the table of contents, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee 7.1.a Packet Pg. 123 To the Honorable Mayor and Members of the City Council City of Diamond Bar, California that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, as listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules (supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements 2 7.1.a Packet Pg. 124 To the Honorable Mayor and Members of the City Council City of Diamond Bar, California and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Brea, California December 8, 2023 3 7.1.a Packet Pg. 125 THIS PAGE INTENTIONALLY LEFT BLANK 4 7.1.a Packet Pg. 126 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Diamond Bar, we offer readers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS The total revenues from all sources totaled $44,495,555, an increase of 13% from the prior year. The total cost of all City programs totaled $37,437,635 an increase of 12% from the prior year. The assets and deferred outflows of the City of Diamond Bar exceeded its liabilities and deferred inflows at the close of the fiscal year by $394,747,347 (net position), an increase of $7.1 million from the prior year. Of this amount, $33,831,520 represents unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors. As of the close of the current fiscal year, the City of Diamond Bar’s governmental funds reported combined ending fund balances of $63,183,166, an increase of $7,292,043 in comparison with the prior year. Approximately $33.9 million of the $63.2 million is available for spending at the City’s discretion, including amounts assigned and committed by city council action. At the end of the current fiscal year, the Unassigned Fund Balance of the General Fund was $22,959,067 which represents a 16.8% increase from the prior year amount of $19,658,823. The Unassigned Fund Balance of $22,959,067 is in addition to a $7,981,243 reserve for emergencies/contingencies as established by Council resolution and $1,308,920 committed to capital projects for City parks and facilities. In June 2022 the City received $3.4 million of American Rescue Plan Act funds. This is the second of two equal advances the City received, with the first installment received in June 2021. The funds received in June 2022 were recognized as revenue and expensed by the City in fiscal year 2023 to address the fiscal impacts created by the COVID-19 pandemic. 5 7.1.a Packet Pg. 127 OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Diamond Bar’s basic financial statements. The City of Diamond Bar’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements – The Government–wide Financial Statements are designed to provide readers with a broad overview of the City of Diamond Bar’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents financial information on all of the City of Diamond Bar’s assets, liabilities and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Diamond Bar is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Diamond Bar that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Diamond Bar include general government, public safety, highways and streets, community development, and parks and recreation. The City of Diamond Bar currently has no business-type activities or enterprise funds. The government-wide financial statements include not only the City of Diamond Bar itself, but also a legally separate financing authority. Although legally separate, the Diamond Bar Public Financing Authority is included because the City is financially accountable for it. Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Diamond Bar, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with 6 7.1.a Packet Pg. 128 finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources available at the end of the fiscal year. Such information may be useful in assessing the near-term financing requirements necessary to finance City programs. A reconciliation to facilitate a comparison between governmental funds and governmental activities is located on page 25 of the financial statements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. The governmental funds balance sheet can be found on page 22 of the financial statements, and the governmental funds statement of revenues, expenditures, and changes in fund balances can be found on page 24 of the financial statements. The City of Diamond Bar adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget on page 58. Proprietary Funds – The type of proprietary funds that the City maintains are internal service funds that are used to allocate costs internally among the various functions of the City. The City of Diamond Bar uses these funds to account for its liability insurance costs and vehicle, building and computer maintenance and replacement costs. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities within the government-wide financial statements. Notes to the Financial Statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information – In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s budgetary control and accounting and expenditures in excess of appropriations. 7 7.1.a Packet Pg. 129 GOVERNMENT-WIDE FINANCIAL ANALYSIS City-wide Statement of Net Position – The Statement of Net Position is intended to measure an agency’s financial health at the end of the fiscal year. The “net position” is the net of the agency’s total assets and its total liabilities. At June 30, 2023, the City of Diamond Bar’s net position (total assets and deferred outflows less total liabilities and deferred inflows) was $394.7 million (see Table 1). By far the largest portion of the City’s net position (84%) is its investment in capital assets (e.g., land, buildings, infrastructure, machinery, equipment, and construction in progress), net of the related outstanding debt used to acquire those assets. The City of Diamond Bar uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. As shown in Table 1 below, the City’s investment in capital assets (net of related debt) decreased by approximately $1.4 million, which was a result of $7.7 million in depreciation expense, additional investments of $6.9 million, and an increase in liabilities used to finance the capital assets of $0.6 million. The City’s total liabilities grew by $4.3 million due largely to an increase in net pension liability in the amount of $4.9 million; this amount fluctuates with the annual returns of CalPERS and after a significant decline in the previous year is now closer to historic levels. The City’s restricted net position increased by $3.1 million from last year. This is due to a combination of factors, including the unspent portion of restricted revenues received in special revenue funds. These funds are either accumulated to fund large capital projects or take several years to fully expend. 8 7.1.a Packet Pg. 130 Table 1 CITY OF DIAMOND BAR Statement of Net Position The unrestricted portion of the total net position represents those funds the City can use at its sole discretion. This portion is often looked at when evaluating a city’s financial health. The unrestricted net position increased by $5.3 million. This is due to several factors, including the use of ARPA revenues which help generate a surplus of funds, and the intentional accumulation of reserves for various city purposes pursuant to the City’s reserve policy. Changes in Net Position – Although the Statement of Net Position discussed above is an important measure of financial health, it is only at a specific point in time. A more useful measure is how the City’s financial position is changing over time. Table 2 below present a summary of the City’s change in net position from the prior year, and the specific revenue and expenditure performance that caused the change. Overall, the City ended the year with an increase to its net position of $7.1 million. This is a substantial increase from the $5.4 million in the prior year. The General Fund contributed a meaningful portion to the overall increase in net position, with 2023 2022 Current and other assets 78,576,175$ 72,267,493$ Capital assets 339,594,656 340,434,601 Total Assets 418,170,831 412,702,094 Deferred Outflows 4,236,969 2,152,283 Current liabilities 9,237,421 9,449,360 Noncurrent liabilities 15,633,771 12,150,302 Total Liabilities 24,871,192 21,599,662 Deferred Inflows 2,789,261 5,565,288 Net Position: Net investment in capital ass 331,607,485 332,972,933 Restricted 29,308,342 26,205,130 Unrestricted 33,831,520 28,511,364 Total Net Position 394,747,347$ 387,689,427$ Governmental Activities 9 7.1.a Packet Pg. 131 revenues rebounding strong in various categories, such as charges for service, property taxes (mainly supplemental and unsecured property taxes), sales tax, use of money & property, and transient occupancy tax. Total revenues for all Governmental Activities were $44.5 million. Expenses across all Governmental Activities totaled $37.4 million. Many of the reasons leading to these results have already been discussed, but some of the more notable factors are discussed below. Table 2 CITY OF DIAMOND BAR Changes in Net Position 2023 2022 Revenues: Program Revenues: Charges for services 7,983,986$ 7,147,094$ Opearting grants and contributions 9,630,820 9,745,284 Capital grants and contributions 853,518 - General Revenues: Property taxes 13,650,877 12,814,147 Transient occupancy taxes 1,462,904 1,359,842 Sales taxes 6,598,953 6,127,593 Franchise fees 1,687,104 1,308,250 Other taxes 1,540,855 1,400,481 Motor vehicle in lieu 56,347 65,523 Use of money & property 863,861 (895,646) Other 166,330 136,203 Total Revenues 44,495,555 39,208,771 Expenses General government 8,377,284 7,210,304 Public safety 8,149,425 7,993,744 Community development 3,663,339 2,579,271 Parks & recreation 4,481,255 3,903,018 Public works 12,621,030 11,641,746 Interest and fiscal charges 145,302 192,897 Total Expenses 37,437,635 33,520,980 Increase (Decrease) in net position 7,057,920 5,687,791 Net position - beginning 387,689,427 382,297,929 Restatement of net position - (296,293) Net Position - ending 394,747,347$ 387,689,427$ Governmental Activities 10 7.1.a Packet Pg. 132 Revenues As show in Table 2 above, total revenues on a citywide basis were $44.5 million. This is approximately $5.3 million higher than last year. The bedrock of our revenue growth lies in the impressive 7% expansion across three crucial areas—property tax, sales tax, and transient occupancy tax (TOT). This growth signifies the economic vibrancy and increased activity within the City. Throughout the year, revenues from the use of money & property demonstrated remarkable improvement, ending the year with a net increase of $1.8 million. This rebound can be primarily attributed to the prevailing increase in interest rates, showcasing the responsiveness of the City’s actively managed investment portfolio to market dynamics. It should be noted that total revenue from the use of money and property of $863,861 reflects total investment earnings of $2.03 million net of unrealized losses in the amount of -$1.17 million; losses which would only be realized were the portfolio liquidated at current market valuations (as of June 30, 2023). Fiscal Year Interest Earnings (millions) YoY Growth Unrealized Gain/(Loss) (millions) YoY Growth Total 2022 0.54$ 14.8% (1.44)$ 313.3% (0.90)$ 2023 2.03 275.9% (1.17) -18.5% 0.86 Year-Over-Year Change Use of Money & Property 11 7.1.a Packet Pg. 133 Expenses The FY 2023 budget was developed with the intention of restoring programs and services across the organization, in particular in the General Fund. As such, fiscal year budgeted and actual expenditures were higher in FY 2023 than in FY 2022. Specifically, the FY 2023 General Fund budget totaled $32.8 million compared to the FY 2022 revised budget of $30.5 million. In addition to restoring programs and services, the City also increased its capital improvement program. In FY 2021, the City had to scale back its capital program due to reduced revenues largely tied to the pandemic. In FY 2022, the City’s capital program increased from $3.5 million to $7.5 million. In FY 2023, the City’s capital program increased from $7.5 million to $16.0 million. While much of the funding comes from grants and other restricted revenues, the growth nonetheless helps explain the increase in the overall spending that occurred generally throughout all categories. Reserves In 2011 the City Council adopted Resolution No. 2011-26 establishing policies related to fund balance and reserves. These policies were amended in August of 2019 with the adoption of Resolution No. 2019-36. In general, reserves are intended to serve a variety of goals and purposes. One of the key reserves set forth in the City’s reserve policies is for emergencies, such as natural disasters (earthquakes, flooding, wildfires, etc.), or unexpected events and circumstances that impact the City’s finances. The recent global pandemic is an excellent example of this. Another purpose of reserves is to set aside funds for the 12 7.1.a Packet Pg. 134 replacement of equipment, vehicles, facilities, and other capital needs. The accumulation of such funds over time minimizes the financial burden and impacts of funding these types of capital items, which often are very expensive, in a single year. The degree to which a city has set aside reserves for the purposes noted above is an important measure of a city’s financial health. To that end, the City’s reserve policies establish the following reserves: 1. Contingency Reserve – No less than 25% of the adopted budget General Fund expenditures to provide for economic uncertainties, local emergencies or disasters, and other financial hardships or downturns in the local economy, including unforeseen operating or capital needs and cash flow requirements. 2. Other Post-Employment Benefit (OPEB) Reserve Fund – To cover the projected cost of future retiree benefits, the City will maintain a reserve so that the combined amount of the reserve and funds held in an OPEB trust are no less than 80% of the total OPEB liability based on the most recent actuarial valuation. 3. Building Facility and Maintenance Fund – The City will make annual contributions to this fund from the General Fund of no less than $100,000 to provide for the future replacement of systems and equipment at City Hall, the Diamond Bar Center, and other City buildings and facilities. In addition, the City will transfer 40% of the General Fund year-end surplus after funding the other reserves described in this section. 4. Vehicle Maintenance and Replacement Fund – To provide funding for the timely replacement of vehicles and related equipment with an individual cost of $10,000 or more, the City will annually make a contribution from its General Fund to the Vehicle Maintenance and Replacement Fund equal to its estimated operating costs plus depreciation net of any interest earnings and proceeds from the sale of assets. 5. Technology Reserve Fund – The City will maintain a technology reserve fund to accumulate funds for the replacement of essential technology systems and equipment. The annual contribution from the General Fund will be no less than $100,000. 6. Park Development Fund – This fund provides for the development and enhancement of the City’s parks and facilities. The City will transfer 40% of the General Fund year-end surplus after funding the other reserves described in this section. 13 7.1.a Packet Pg. 135 The aforementioned reserves are listed below in Table 3 along with other highlighted reserves. See footnote 11 for more information on fund balances. Table 3 CITY OF DIAMOND BAR Changes in Reserves The most striking thing to note from Table 3 above is that total reserves, as set forth in the City’s reserve policies, increased by $6,015,373 (or 18.0%) to a total of $39.6 million. It is important to note that all of these individual reserves, including those in other funds, ultimately derive from the General Fund, either from the allocation of year-end surpluses or annual contributions pursuant to the reserve policies summarized earlier. 2023 2022 Change General Fund Committed Reseves Contingency Reserve 7,981,243$ 7,864,770$ 116,473$ Assigned Reseves Community organization support 2,062 - 2,062$ OPEB Reserve 291,182 353,283 (62,101) Technology Reserve 591,346 442,418 148,928 Capital Improvement Projects 1,308,920 - 1,308,920 Tres Hermanos Conservancy Reserve 6,910 20,726 (13,816) General Plan Update Reserve 518,504 929,558 (411,054) Law Enforcement Reserve 941,362 957,126 (15,764) Unassigned Reserve 22,959,067 19,658,823 3,300,244 Total General Fund 34,600,596 30,226,704 4,373,892 Park Development Fund Park and Facility Reserve 1,567,641 873,636 694,005 Vehicle Maintenance & Replacement Fund Maintenance & Replacement Reserve 316,864 230,973 85,891 Building Maintenance & Replacement Fund Maintenance & Replacement Reserve 1,062,451 1,164,608 (102,157) Computer Equipment Replacement Fund Equipement Replacement Reserve 2,032,428 1,068,686 963,742 Grand Totals 39,579,980$ 33,564,607$ 6,015,373$ Fiscal Year Ended June 30, 14 7.1.a Packet Pg. 136 FUND FINANCIAL ANALYSIS As noted earlier the City of Diamond Bar uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. These are presented starting on page 23 of the financial statements. Governmental funds - The focus of the City of Diamond Bar’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a city’s net resources available for spending at the end of the fiscal year. At June 30, 2023, the City of Diamond Bar’s governmental funds reported combined ending fund balances of $63.2 million, an increase of $7.3 million in comparison with the prior year. Approximately 35% of this amount ($22,233,273) constitutes unassigned fund balances, which is available for spending at the government’s discretion. The remainder of the fund balance is either restricted for particular purposes ($29,308,364), committed to contingencies per City policy ($7,981,243), or assigned to a specific purpose ($3,660,286). The balance sheet for governmental funds is presented on page 22 of the financial statements. The General Fund, which is included as a governmental fund, is the main operating fund of the City. It is where most traditional services associated with local government, including public safety, recreation, development services, economic development, and public works. The services are funded primarily from unrestricted tax revenues, such as taxes and charges for services. At the end of the 2023 fiscal year, the unassigned fund balance of the General Fund was approximately $23 million, while the total fund balance was $34.6 million; this represents an increase of $4.4 million in total fund balance from last year. The factors leading to this increase are largely the same as those discussed above for the City as a whole, including, the use of ARPA revenues, and the strong performance in sales tax and TOT revenues. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 79% of total General Fund expenditures, including transfers out, while total fund balance represents 119% of the same amount. 15 7.1.a Packet Pg. 137 Weathering the Storm of the COVID-19 Pandemic In retrospect, this past fiscal year stands as a testament to our collective resilience in navigating the unprecedented challenges posed by the global pandemic. The uncertainties and disruptions stemming from this period tested our organization’s ability to adapt when faced with extreme adversity. Yet, our city emerged from the pandemic stronger, and our commitment to financial stability and strategic management has shone through. The continued growth in property tax, sales tax, and transient occupancy tax (TOT) revenues, coupled with prudent investments and fiscal policies, strengthened our financial position as the City exited the pandemic; for these reasons the City continues to stand as a beacon of economic strength in our region. It is management’s belief that the detailed financial statements that follow reflect this collective dedication to the ongoing well-being and prosperity of the Diamond Bar community. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets - The City of Diamond Bar’s investment in capital assets for its governmental activities as of June 30, 2023 amounts to $339.6 million (net of accumulated depreciation). This investment in capital assets includes land, right of way, buildings and improvements, furniture and fixtures, vehicles and equipment, infrastructure and construction in progress. Table 4 CITY OF DIAMOND BAR Capital Assets (net of depreciation) The City’s capital assets decreased in value by approximately $0.8 million during fiscal year 2023. This decrease was due primarily to depreciation expense totaling almost $7.7 million, offset by an increase in construction in progress and other capital assets of $6.9 million. Fiscal Year Fiscal Year 2023 2022 Land 6,369,506 6,369,506$ Right of way 265,614,104 265,614,104 Intangible assets 694,050 - Buildings and improvements 8,885,017 9,214,069 Furniture and fixtures - 743 Vehicles & equipment 523,103 1,455,230 Infrastructure 54,616,096 55,727,592 Constuction in progress 2,892,780 2,053,357 Totals 339,594,656$ 340,434,601 16 7.1.a Packet Pg. 138 Construction in progress at the end of the year included projects in various stages of design or construction. Virtually all of the $2.9 million of construction in progress relates to streets improvement projects, including both residential and arterial roadways. See footnote 4 for more information on capital assets. Long-term debt – At the end of the current fiscal year, the City of Diamond Bar’s total long-term debt totaled $6,820,543, which includes outstanding bonds payable and accrued compensated absences as shown in Table 5 below. Table 5 CITY OF DIAMOND BAR Outstanding Long-Term Debt In June 2021 the City issued the 2021 Lease Revenue Refunding Bonds to refinance the 2002 Lease Revenue Bonds. The 2002 bonds were originally issued to finance the construction of a community/senior center (the Diamond Bar Center) and other public improvements. The refunding, which capitalizes on historically low interest rates, will result in a savings of $1,736,355 over the remaining life of the bonds. In addition to the bonds, city employees have accrued leave time (sick and vacation) totaling $1,005,543 as of June 30, 2023. This liability is primarily paid out as time off or the use of sick time and to this extent does not result in an increase in costs. See footnote 5 for more information on long-term debt. Fixed Rate 2021 Lease Revenue Refunding Bonds (backed by the Public Financing Authority) 5,815,000$ Compensated Absences 1,005,543 Total 6,820,543$ At June 30, 2023 17 7.1.a Packet Pg. 139 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The Adopted FY 2023/24 Budget incorporates a positive outlook and continues to expand many City programs and services, advance deferred maintenance and capital improvement projects, and focuses on key initiatives consistent with the City's Long-Term Financial Stability Report and recently adopted 2024-2027 Strategic Plan. The proposed Capital Improvement Program totals $12.0 million in new projects for FY 2023/24 and includes many projects that were in the design phase in FY 2022/23 which will now move to the construction phase in FY 2023/24. The FY 2023/24 Adopted Budget also includes the use of General Fund Undesignated Reserves in the amount of $1.3 million for one-time projects and programs, $1.1 million of which is for capital improvement projects. Similarly, the revenue outlook is reasonably optimistic, with growth in key General Fund revenues—including property taxes, sales taxes, TOT— and other taxes expected to be moderate and in line with historic and pre-pandemic growth rates. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the City of Diamond Bar’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department, at the City of Diamond Bar, 21810 Copley Drive, Diamond Bar, California 91765. 18 7.1.a Packet Pg. 140 THIS PAGE INTENTIONALLY LEFT BLANK 19 7.1.a Packet Pg. 141 CITY OF DIAMOND BAR Statement of Net Position Governmental Activities Assets: Cash and investments 72,156,901$ Receivables: Accounts 2,376,104 Notes and loans 432,236 Accrued interest 329,746 Due from other governments 1,067,332 Restricted assets: Cash with fiscal agent 1,561 Lease receivables 2,212,295 Capital assets not being depreciated 274,876,390 Capital assets, net of depreciation 64,718,266 Total Assets 418,170,831 Deferred Outflows of Resources: Deferred pension related items 4,013,585 Deferred OPEB related items 223,384 Total Deferred Outflows of Resources 4,236,969 Liabilities: Current liabilities: Accounts payable 3,775,215 Accrued liabilities 536,804 Accrued interest 18,434 Unearned revenue 1,091,851 Deposits payable 2,534,665 Due to other governments 500,452 Compensated absences - due within one year 300,000 Bonds payable - due within one year 480,000 Noncurrent liabilities: Compensated absences - due in more than one year 705,543 Bonds payable - due in more than one year 6,409,244 Net pension liability - due in more than one year 7,903,769 Net OPEB liability - due in more than one year 615,215 Total Liabilities 24,871,192 Deferred Inflows of Resources: Deferred pension related items 389,526 Deferred OPEB related items 187,440 Deferred lease related items 2,212,295 Total Deferred Inflows of Resources 2,789,261 Net Position: Net investment in capital assets 331,607,485 Restricted for: Community development projects 4,435,781 Public safety 366,818 Public works 21,761,109 Capital projects 2,743,073 Debt service 1,561 Unrestricted 33,831,520 Total Net Position 394,747,347$ June 30, 2023 See Notes to Financial Statements.20 7.1.a Packet Pg. 142 CITY OF DIAMOND BAR Statement of Activities Year Ended June 30, 2023 Operating Capital Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Functions/Programs Primary Government: Governmental Activities: General government 8,377,284$ 114,485$ 4,160,007$ -$ (4,102,792)$ Public safety 8,149,425 383,058 203,960 - (7,562,407) Community development 3,663,339 2,450,481 293,720 - (919,138) Parks and recreation 4,481,255 1,583,261 - - (2,897,994) Public works 12,621,030 3,452,701 4,973,133 853,518 (3,341,678) Interest on long-term debt 145,302 - - - (145,302) Total Primary Government 37,437,635$ 7,983,986$ 9,630,820$ 853,518$ (18,969,311) General Revenues: Taxes: Property taxes, levied for general purpose 13,650,877 Transient occupancy taxes 1,462,904 Sales taxes 6,598,953 Franchise taxes 1,687,104 Other taxes 1,540,855 Motor vehicle in lieu - unrestricted 56,347 Use of money and property 863,861 Other 166,330 Total General Revenues 26,027,231 Change in Net Position 7,057,920 Net Position at Beginning of Year 387,689,427 Net Position at End of Year 394,747,347$ Net (Expenses) Revenue and Changes in Net Position Program Revenues See Notes to Financial Statements.21 7.1.a Packet Pg. 143 CITY OF DIAMOND BAR Balance Sheet Governmental Funds June 30, 2023 Special Revenue Funds Capital Projects Funds Other Total Governmental Governmental General Funds Funds Assets: Pooled cash and investments 37,932,326$ 8,091,761$ 612,824$ 21,052,262$ 67,689,173$ Receivables: Accounts 2,144,041 - - 232,063 2,376,104 Notes and loans - - - 432,236 432,236 Accrued interest 329,746 - - - 329,746 Lease receivables 2,212,295 - - - 2,212,295 Due from other governments 18,290 - 307,468 672,486 998,244 Due from other funds 276,296 - - - 276,296 Restricted assets: Cash and investments with fiscal agents - - - 1,561 1,561 Total Assets 42,912,994$ 8,091,761$ 920,292$ 22,390,608$ 74,315,655$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 2,200,427$ -$ 1,097,927$ 355,839$ 3,654,193$ Accrued liabilities 500,001 - - 36,803 536,804 Unearned revenues 854,070 - - 237,781 1,091,851 Deposits payable 2,534,665 - - - 2,534,665 Due to other governments - - - 451,378 451,378 Due to other funds - - - 276,296 276,296 Total Liabilities 6,089,163 - 1,097,927 1,358,097 8,545,187 Deferred Inflows of Resources: Unavailable revenues 10,940 - 307,468 56,599 375,007 Deferred inflows lease related 2,212,295 - - - 2,212,295 Total Deferred Inflows of Resources 2,223,235 - 307,468 56,599 2,587,302 Fund Balances: Restricted for: Community development projects - - - 4,435,803 4,435,803 Public safety - - - 366,818 366,818 Highways and streets - 8,091,761 - 13,669,348 21,761,109 Capital Projects - - - 2,743,073 2,743,073 Debt service - - - 1,561 1,561 Committed to: Emergency contingencies 7,981,243 - - - 7,981,243 Assigned to: Community organization support 2,062 - - - 2,062 Other Post Employment Benefits (OPEB)291,182 - - - 291,182 Technology Reserve 591,346 - - - 591,346 Capital improvement projects 1,308,920 - - - 1,308,920 Tres Hermanos Conservancy 6,910 - - - 6,910 General Plan Update 518,504 - - - 518,504 Law Enforcement Reserve 941,362 - - - 941,362 Unassigned Unassigned Reserve 22,959,067 - (485,103) (240,691) 22,233,273 Total Fund Balances 34,600,596 8,091,761 (485,103) 20,975,912 63,183,166 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 42,912,994$ 8,091,761$ 920,292$ 22,390,608$ 74,315,655$ Traffic Improvement Fund Capital Improvement Fund See Notes to Financial Statements.22 7.1.a Packet Pg. 144 CITY OF DIAMOND BAR Reconciliation of the Balance Sheet of Government Funds to the Statement of Net Position June 30, 2023 Fund balances of governmental funds 63,183,166$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity.338,684,655 Deferred outflows related to pension items: Adjustments due to difference in proportions 439,481$ Net difference between project and actual earnings on pension plan investments 1,447,761 Difference between expected and actual experiences 158,723 Change in assumptions 809,907 1,157,713 4,013,585 Deferred outflows related to OPEB: Differences between expected and actual experience 3,909 Change in assumptions 160,886 Net difference between projected and actual experience 58,589 223,384 Long-term debt, compensated absences, other post employee benefit obligation and net pension liability that have not been included in the governmental fund activity: Bonds payable (5,815,000) Unamortized bond premiums (1,074,244) Compensated Absences (1,005,543) Net OPEB liability (615,215) Net pension liability (7,903,769) (16,413,771) Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds.(18,434) Deferred inflows related to pension items: Difference between expected and actual experiences (106,306) net pension liability.(283,220) (389,526) Deferred inflows related to OPEB: Net differences between projected and actual return investments (187,440) (187,440) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.375,007 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position.5,276,721 Net Position of Governmental Activities 394,747,347$ Current year contributions that occurred after the measurement date Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions See Notes to Financial Statements.23 7.1.a Packet Pg. 145 CITY OF DIAMOND BAR Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended June 30, 2023 Capital Projects Funds Other Total Governmental Governmental General Funds Funds Revenues: Taxes 16,445,551$ -$ -$ 1,262,383$ 17,707,934$ Licenses and permits 2,275,281 - - 132,048 2,407,329 Intergovernmental 10,712,016 853,518 28,312 9,500,430 21,094,276 Charges for services 1,593,826 - - 703,715 2,297,541 Use of money and property 498,274 93,594 - 235,182 827,050 Fines and forfeitures 383,058 - - - 383,058 Miscellaneous 184,345 - 1,559 16,181 202,085 Total Revenues 32,092,351 947,112 29,871 11,849,939 44,919,273 Expenditures: Current: General government 7,020,328 - - 2,114 7,022,442 Public safety 8,144,825 - - 4,600 8,149,425 Community development 2,870,494 - - 652,393 3,522,887 Parks and recreation 1,941,947 - - 25,282 1,967,229 Public works 5,148,020 - - 2,255,704 7,403,724 Capital outlay - - 6,795,028 115,262 6,910,290 Debt service: Principal retirement - - - 465,000 465,000 Interest and fiscal charges - - - 254,200 254,200 Total Expenditures 25,125,614 - 6,795,028 3,774,555 35,695,197 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,966,737 947,112 (6,765,157) 8,075,384 9,224,076 Other Financing Sources (Uses): Transfers in 1,261,764 - 6,410,629 825,058 8,497,451 Transfers out (3,854,609) - - (6,574,875) (10,429,484) Total Other Financing Sources (Uses)(2,592,845) - 6,410,629 (5,749,817) (1,932,033) Net Change in Fund Balances 4,373,892 947,112 (354,528) 2,325,567 7,292,043 Fund Balances, Beginning of Year 30,226,704 7,144,649 (130,575) 18,650,345 55,891,123 Fund Balances, End of Year 34,600,596$ 8,091,761$ (485,103)$ 20,975,912$ 63,183,166$ Special Revenue Funds Traffic Improvement Fund Capital Improvement Fund See Notes to Financial Statements.24 7.1.a Packet Pg. 146 CITY OF DIAMOND BAR Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2023 Net change in fund balances - total governmental funds 7,292,043$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital Expenditures 6,827,804$ Depreciation Expense (7,494,758) (666,954) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal payment 465,000 Amortization of bond premium 107,424 Compensated Absences (62,618) 509,806 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period.1,474 Pension contributions are expenditures in the governmental funds, but reduce the Net Pension Liability in the statement of net position and changes in the Net Pension Liability are expensed in statement of activities.(313,518) OPEB contributions are expenditures in the governmental funds, but reduce the Net OPEB Liability on the statement of net position and changes in the Net OPEB Liability are expensed in the statement of activities.(15,897) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.(479,830) Compensated absences - due within one year Bonds payable - due within one year The net revenues (expenses) of the internal service funds is reported with governmental activities.730,796 Change in Net Position of Governmental Activities 7,057,920$ See Notes to Financial Statements.25 7.1.a Packet Pg. 147 CITY OF DIAMOND BAR Statement of Net Position Proprietary Funds June 30, 2023 Governmental Activities- Internal Service Funds Assets: Current: Cash and investments 4,467,728$ Due from other governments 69,088 Total Current Assets 4,536,816 Noncurrent: Capital assets - net of accumulated depreciation 910,001 Total Noncurrent Assets 910,001 Total Assets 5,446,817$ Liabilities and Net Position: Liabilities: Current: Accounts payable 121,022$ Due to other governments 49,074 Total Current Liabilities 170,096 Total Liabilities 170,096 Net Position: Invested in capital assets 910,001 Unrestricted 4,366,720 Total Net Position 5,276,721 Total Liabilities and Net Position 5,446,817$ See Notes to Financial Statements. 26 7.1.a Packet Pg. 148 CITY OF DIAMOND BAR Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds Year Ended June 30, 2023 Governmental Activities- Internal Service Funds Operating Expenses: Insurance premiums 510,516$ Equipment repair and maintenance 518,408 Depreciation expense 228,425 Total Operating Expenses 1,257,349 Operating Income (Loss)(1,257,349) Nonoperating Revenues (Expenses): Interest revenue 36,811 Contributions 19,301 Total Nonoperating Revenues (Expenses)56,112 Income (Loss) Before Transfers (1,201,237) Transfers in 1,997,033 Transfers out (65,000) Changes in Net Position 730,796 Net Position: Beginning of Year 4,545,925 End of Fiscal Year 5,276,721$ See Notes to Financial Statements. 27 7.1.a Packet Pg. 149 CITY OF DIAMOND BAR Statement of Cash Flows Proprietary Funds Year Ended June 30, 2023 Governmental Activities- Internal Service Funds Cash Flows from Operating Activities: Insurance premiums paid (510,516)$ Payments to suppliers (405,780) Net Cash Provided (Used) by Operating Activities (916,296) Cash Flows from Non-Capital Financing Activities: Cash transfers out (65,000) Cash transfers in 1,997,033 Net Cash Provided (Used) by Non-Capital Financing Activities 1,932,033 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (55,434) Net Cash Provided (Used) by Capital and Related Financing Activities (55,434) Cash Flows from Investing Activities: Interest Paid 36,811 Net Cash Provided (Used) by Investing Activities 36,811 Net Increase (Decrease) in Cash and Cash Equivalents 997,114 Cash and Cash Equivalents at Beginning of Year 3,470,614 Cash and Cash Equivalents at End of Year 4,467,728$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(1,257,349)$ Adjustments to Reconcile Operating Income (Loss) Net Cash Provided (Used) by Operating Activities: Depreciation 228,425 Increase (decrease) in accounts payable 112,628 Total Adjustments 341,053 Net Cash Provided (Used) by Operating Activities (916,296)$ See Notes to Financial Statements. 28 7.1.a Packet Pg. 150 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES A. Description of Reporting Entity The City of Diamond Bar (the City) was incorporated April 18, 1989, as a "General Law” City governed by an elected five-member city council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Diamond Bar (the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationship with the City. These entities are legally separate from each other. However, the City of Diamond Bar's elected officials have a continuing full or partial accountability for fiscal matters of the other entities. The financial reporting entity consists of: (1) the City (2) organizations for which the City is financially accountable; and, (3) organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, a component unit’s balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the City's or when the component unit provides services almost entirely to the City. Blended Component Units The Diamond Bar Public Financing Authority (the Authority) was formed on November 19, 2002. The purpose of the Authority is to issue debt to finance public improvements and other capital purchases for the City and Agency. The activity of the Authority is reported in debt service and capital projects funds. Separate financial statements are not prepared for this blended component unit. B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The City has no business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The basic financial statements of the City are composed of the following: Government-wide financial statements Fund financial statements Notes to basic financial statements 29 7.1.a Packet Pg. 151 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The government-wide financial statements, proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all assets and liabilities (current and long-term) are reported. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year, which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements imposed by the provider have been met. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to departments for services. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, generally only current assets and liabilities are reported in the governmental funds. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, except for principal and interest on long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures only when payment is due. Property taxes, taxpayer-assessed taxes, such as sales taxes, gas taxes, and transient occupancy taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period to the extent normally collected within the availability period. All other revenue items are considered to be measurable and available only when cash is received by the City. The accounts of the City are organized and operated on the basis of funds, each of which is considered a separate accounting entity with a self-balancing set of accounts, established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. As a general rule, the effect of Interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating contributions and grants, and 3) capital contributions and grants, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. 30 7.1.a Packet Pg. 152 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Fund Classifications The City reports the following major governmental funds: The General Fund is the primary operating fund of the City and is used to account for all revenues and expenditures of the City not legally restricted as to use. A broad range of municipal activities are provided through this fund including City Manager, City Attorney, Finance, City Clerk, Public Works, Building and Safety, and Parks and Recreation. The Traffic Improvement Fund is used to account for funds which have been received from development projects and designated by the City Council for traffic mitigation projects. The Capital Improvement Project Fund is used to account for improvements of construction of capital facilities. The City's fund structure also includes the following fund types: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Debt Service Funds are used to account for the receipt of revenues and payments of debt service related to outstanding bonds. Additionally, the City reports the following fund types: Internal Service Funds have been established to finance and account for goods and services provided by one City department to other City departments or agencies. These activities include self-insurance, equipment, building maintenance and computer maintenance. E. Investments For financial reporting purposes, investments are stated at fair value. Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund's average cash and investment balances. F. Cash and Cash Equivalents For purposes of the statement of cash flows, cash and cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity (an original maturity date of three months or less from the date of purchase) that they present insignificant risk of changes in value because of changes in interest rates. Cash and cash equivalents also represent the proprietary funds' share in the cash and investment pool of the City. All cash and investments of the proprietary (internal service) funds are pooled with the City's pooled cash and investments and are therefore considered cash equivalents for purposes of the statement of cash flows. 31 7.1.a Packet Pg. 153 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Prepaid Costs Prepaid costs are accounted for on the consumption method. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. H. Capital Assets Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at acquisition value at the date of contribution. Capital asset purchases (other than infrastructure) in excess of $5,000 are capitalized if they have an expected useful life of three years or more. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value at the date of donation. Capital assets include additions to public domain (infrastructure), certain improvements including roads, streets, sidewalks, medians and storm drains within the City. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government-wide and Proprietary Fund Financial Statements. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective balance sheet. The lives used for depreciation purposes of each capital asset class are: Buildings and improvements 50 years Furniture and fixtures 7 years Vehicles 5 years Infrastructure 10 - 50 years Equipment 3 years Intangible Assets are capitalized at cost related to the enterprise resource management system. Amortization has been provided on a straight-line basis over the estimated useful life of 10 years. I. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. It is deferred outflows relating to the net pension obligation and net OPEB obligation reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, adjustments due to difference in proportions, and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions, differences between expected and actual experiences, net differences between projected and actual experiences on plan investments, and change in assumptions. 32 7.1.a Packet Pg. 154 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and thus will not be recognized as an inflow of resources (revenue) until that time. The government has three items which arises under the modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, one item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grant revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In addition, the government has items that qualify for reporting in this category which relate to deferred inflows relating to the net pension and net OPEB obligations reported in the government-wide statement of net position. These inflows are the result of the net difference between projected and actual earnings on plan investments, changes in employer’s proportion, difference between the employer’s contributions and the employer’s proportionate share of contributions, adjustments due to difference in proportions, differences between expected and actual experiences, and change in assumptions. Lastly, leases related items for the amount of the lease receivable plus any lease payments related to future periods, less any lease incentives paid to, or on behalf of, the lessee at or before the commencement of the lease term. J. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. K. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. L. Compensated Absences Vacation and sick leave time begin to accumulate as of the first day of employment to a maximum of 360 hours and 480 hours, respectively. Employees who accumulate sick leave in excess of 200 hours may be compensated for the excess up to 80 hours annually at one half the employees current wage rate. A liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. A liability is recorded for unused sick leave balances only to the extent that it’s probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payments, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City. If an employee retires, resigns, or terminates in good standing with a minimum of five years of service, the employee is entitled to receive 100% of unused sick leave at one half the employees current wage rate. Compensated absences will be reported in government funds only if they have matured, such as upon retirement. 33 7.1.a Packet Pg. 155 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Pension Plan For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position and additions to/deductions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. Net Pension liability is expected to be paid in future years from future resources, typically liquidated from the General Fund. N. Other Post-Employment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), the assets of which are held by California Employers’ Retiree Benefit Trust (CERBT), and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Net OPEB liability is expected to be paid in future years from future resources, typically liquidated from the General Fund. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2023 Measurement Date June 30, 2023 Measurement Period July 1, 2022 to June 30, 2023 O. Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB or Pension liability and fiduciary net position are recognized in OPEB or Pension expense systematically over time. Amounts are first recognized in OPEB or Pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB or Pension and are to be recognized in future OPEB or Pension expense. The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual 5 years earnings on plan investments All other amounts Expected average remaining service lifetime (EARSL) P. Property Taxes Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received from the County within 60 days after year end. 34 7.1.a Packet Pg. 156 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property taxes are assessed and collected each fiscal year according to the following property tax calendar: Lien date January 1 Levy date July 1 Due dates November 1 - 1st installment February 1 - 2nd installment Collection dates December 10 - 1st installment April 10 - 2nd installment Delinquent dates December 11 - 1st installment April 11 - 2nd installment Q. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Net OPEB liability is expected to be paid in future years from future resources, typically liquidated from the General Fund. R. Fund Equity In the fund financial statements, government funds report the following fund balance classification: Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution. Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The Director of Finance is authorized to assign amounts to a specific purpose, which was established by the governing body in resolution. Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive fund unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. 35 7.1.a Packet Pg. 157 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Deficit Fund Equity At June 30, 2023, The City reported deficit fund equities in the following funds: NOTE 3: CASH AND INVESTMENTS As of June 30, 2023, cash and investments were reported in the accompanying financial statements as follows: Statement of Net Position: Cash and investments 72,156,901$ Cash and investments with fiscal agents 1,561 72,158,462$ Cash and investments held by the City at June 30, 2023, consisted of the following: Cash and cash equivalents: Imprest cash on hand 2,297$ Demand deposits 1,590,753 Total Cash and cash equivalents 1,593,050 Investments: United States Government Sponsored Enterprise Securities 22,288,084 Federal Agency Securities 19,190,522 Certificates of Deposit 10,591,045 Corporate Notes 918,898 Municipal Bonds 1,963,613 Money Market Mutual Funds 7,300,341 Local Agency Investment Fund 8,311,348 Held by fiscal agents: Money Market Mutual Funds 1,561 Total Investments and held by fiscal agents 70,565,412 72,158,462$ Fund Name Fund Type Deficit Cause Measure A NonMajor Special Revenue Fund (184,000)$ (a) MTA Grant Fund NonMajor Special Revenue Fund (56,599) (a) Local Roadway Safety Plan NonMajor Special Revenue Fund (92) (a) Capital Improvement Fund Major Capital Projects Fund (485,103) (b) (a) Deficit due to timing differences between grant receipts and disbursements, and is expected to be eliminated through future grant revenues. (b) Deficit due to the timing differences between expenditures and the iss uance of bonds to finance the project, and is expected to be eliminated once the bonds are issued. 36 7.1.a Packet Pg. 158 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 3: CASH AND INVESTMENTS (CONTINUED) Investments Authorized by the California Government Code and the City's Investment Policy The following table identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address' interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer United States Treasury Obligations 5 years None None United States Government Sponsored Enterprise Securities 5 years None None Banker's Acceptances 180 days 40% 30% Time Certificates of Deposits 5 years 30% 250,000$ Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Money Market Mutual Funds 5 years 20% None Repurchase Agreements 1 year None None Medium-Term Corporate Notes (1) 5 years 30% 5% Supranational 5 years 30% None Local Agency Investment Fund (LAIF) N/A None 75,000,000$ (1) Notes must be rated "A" or better N/A - Not Applicable Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer United States Treasury Obligations None None None United States Government Sponsored Enterprise Securities None 10%None Banker's Acceptance 1 year None None Time Certificate of Deposits None None None Local Agency Investment Fund None None None Money Market Funds None None None Repurchase Obligations Tax Exempt 30 days None None Taxable Government Money Market Portfolios None None Equal to six months of principal and interest in the bonds 37 7.1.a Packet Pg. 159 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 3: CASH AND INVESTMENTS (CONTINUED) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type 12 Months or Less 1 - 3 years 3 - 5 years Total US Government Sponsored Securities 13,752,186$ 6,684,727$ 1,851,172$ 22,288,085 Federal Agency Securities 5,640,596 6,271,552 7,278,374 19,190,522 Certificate of Deposits 482,430 6,652,342 3,456,273 10,591,045 Corporate Notes 494,910 - 423,988 918,898 Municipal Bonds 191,086 323,419 1,449,107 1,963,612 Money Market Mutual Funds 7,300,341 - - 7,300,341 Local Agency Investment Fund (LAIF) 8,311,348 - - 8,311,348 Held by Fiscal Agents: Money Market Mutual Funds 1,561 - - 1,561 36,174,458$ 19,932,040$ 14,458,914$ 70,565,412$ Remaining Maturity (in Months) Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Moody’s, as of year-end for each investment type: Investment Type Total as of June 30, 2023 Aaa Aa2 Aa3 A1 Unrated US Government Sponsored Securities 22,288,084$ 22,288,084$ -$ -$ -$ -$ Federal Agency Securities 19,190,522 19,190,522 - - - - Certificate of Deposits 10,591,045 - - - - 10,591,045 Corporate Notes 918,898 - - - - 918,898 Municipal Bonds 1,963,613 - 229,489 285,017 - 1,449,107 Money Market Mutual Funds 7,300,341 - - - - 7,300,341 Local Agency Investment Fund (LAIF) 8,311,348 - - - 8,311,348 Held by Fiscal Agents: Money Market Mutual Funds 1,561 - - - - 1,561 70,565,412$ 41,478,606$ 229,489$ 285,017$ -$ 28,572,300$ Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.” 38 7.1.a Packet Pg. 160 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 3: CASH AND INVESTMENTS (CONTINUED) Investments by fair value level Totals 1 2 3 United States Treasure Obligations 22,288,084$ 22,288,084$ -$ -$ Federal Agency Securities 19,190,522 - 19,190,522 - Certificate of Deposit 10,591,045 - 10,591,045 - Corporate Notes 918,898 - 918,898 - Municipal Bonds 1,963,613 - 1,963,613 - Totals 54,952,162$ -$ 32,664,078$ -$ Other investments Local Agency Investment Fund 8,311,348 Money Market Mutual Funds 7,300,341 Cash with Fiscal Agents Money Market Funds 1,561 Totals 15,613,250 Total Investments 70,565,412$ Level The City has the following recurring fair value measurements as of June 30, 2023: Local Agency Investment Funds classified in Level 2 of the fair value hierarchy are valued using specified fair value factors. Federal Agency Securities classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes. Disclosures Relating to Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The City does not accept 150% of the secured public totals. At June 30, 2023, the City deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to $250,000 and the remaining balances were collateralized under California Law. The cash and investments held by Bond Trustee are uninsured and uncollateralized. Investment in State Investment Pool The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. 39 7.1.a Packet Pg. 161 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 4: INTERFUND TRANSFERS AND DUE TO/FROM OTHER FUNDS Total Transfers Out: General Fund -$ 1,032,518$ 825,058$ 1,997,033$ 3,854,609$ Non-Major Governmental Funds 1,261,764 5,313,111 - - 6,574,875 Internal Service Funds - 65,000 - - 65,000 Total 1,261,764$ 6,410,629$ 825,058$ 1,997,033$ 10,494,484$ Transfers In Internal Service FundsGeneral Fund Capital Improvement Fund Non-Major Governmental Funds Transfers from the General Fund to the Internal Service Funds were made to fund the self-insurance, equipment replacement, computer equipment replacement and building facility & maintenance funds. Transfers from the General Fund to the Capital Improvement Fund were made to fund various capital improvement projects. Transfers from the General Fund to the Other Governmental Funds were made to fund various capital improvement projects, the City general plan revision, a fund deficit and debt service payments. Transfers to the General Fund from the Other Governmental Funds were made to fund various capital projects and administrative expenditures. Transfers to the Capital Improvement Fund from the Other Governmental Funds were made to fund various capital projects. Due from other funds Due to other funds Amount General Fund Other Governmental Funds 276,296$ Short-term borrowings were made from the General Fund to Other Governmental due to negative cash. This is expected to be repaid in the immediate future with reimbursements. 40 7.1.a Packet Pg. 162 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 5: CAPITAL ASSETS A summary of changes in the Governmental Activities capital assets at June 30, 2023, is as follows: Balance at June 30, 2022 Transfers Additions Deletions Balance at June 30, 2023 Capital assets not being depreciated: Land 6,369,506$ -$ -$ -$ 6,369,506$ Right of way 265,614,104 - - - 265,614,104 Construction in progress 2,053,357 (2,018,301) 2,857,724 - 2,892,780 Total Capital Assets Not being Depreciated 274,036,967 (2,018,301) 2,857,724 - 274,876,390 Capital assets being depreciated: Buildings and improvements 48,544,173 844,719 1,151,751 - 50,540,643 Furniture and fixtures 259,868 - - - 259,868 Vehicles and equipment 5,397,486 (771,167) 86,020 - 4,712,339 Infrastructure 198,444,727 1,173,582 2,787,743 - 202,406,052 Intangibles - 771,167 - - 771,167 Total Capital Assets being Depreciated 252,646,254 2,018,301 4,025,514 - 258,690,069 Less accumulated depreciation for: Buildings and improvements 39,330,103 - 2,325,523 - 41,655,626 Furniture and fixtures 259,125 - 743 - 259,868 Vehicles and equipment 3,942,258 (77,117) 324,095 - 4,189,236 Infrastructure 142,717,134 - 5,072,822 - 147,789,956 Intangibles - 77,117 - - 77,117 Total Accumulated Depreciation 186,248,620 - 7,723,183 - 193,971,803 Total Capital Assets Being Depreciated, Net 66,397,634 2,018,301 (3,697,669) - 64,718,266 Governmental Activities Capital Assets, Net 340,434,601$ -$ (839,945)$ -$ 339,594,656$ Depreciation expense was charged to functions in the Statement of Activities as follows: General government 637,192$ Highways and streets 4,894,705 Parks, recreation and culture 1,962,861 Internal Service Funds depreciation charges to program 228,425 7,723,183$ 41 7.1.a Packet Pg. 163 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 6: LONG-TERM LIABILITIES Long-term liability activity for the year ended June 30, 2023, was as follows: Balance at June 30, 2022 Additions Deletions Balance at June 30, 2023 Due Within One Year Public Offering Bonds payable 2021 Series A Lease Revenue Bonds 6,280,000$ -$ 465,000$ 5,815,000$ 480,000$ Total 6,280,000$ -$ 465,000$ 5,815,000 480,000$ Net unamortized bond premium 1,074,244 Net Long-Term Debt 6,889,244$ Bonds Payable 2021 Series A Lease Revenue Refunding Bonds The 2021 Series A Lease Revenue Refunding Bonds were originally issued on June 1, 2021, in the principal amount of $6,735,000. Interest is paid semiannually on December 1 and June 1. The interest rate on these bonds is 4.0%. The purpose of these bonds is to refund the 2002 Series A Lease Revenue Bonds and to cover issuance costs of the 2021 Series A bonds. The following events are Events of Default under the Indenture: (i) if the City fails; (A) to pay rental payment payable under the lease agreement when the same becomes due and payable, time being expressly declared to be of the essence in the lease agreement; or (B) to keep, observe or perform any other term, covenant or condition contained therein or in the indenture to be kept or performed by the City; or (ii) upon the happening of any of the events specified in the lease agreement, the City is deemed to be in default thereunder and it is lawful for the Authority to exercise any and all remedies available pursuant to law or granted pursuant thereto. The 2021 Bonds are not subject to acceleration in the event of payment default. The City completed the refunding to reduce its total service payments by $1,736,355 and to obtain an economic gain (difference between the present value of the old and new debt service payments) of $1,632,706. Credit Risk The Counterparty, JPMorgan Chase, has the following credit ratings of: (i) Standard & Poor's, AA+ and (ii) Moody's, Aa2. Payments and Associated Debt As of June 30, 2023, debt service requirements of the Bonds and the Counterparty's payments, assuming current interest rates remain the same for remainder of the term of the Agreement, are as follows: June 30 Principal Interest 2024 480,000$ 232,600$ 2025 505,000 213,400 2026 530,000 193,200 2027 550,000 172,000 2028 580,000 150,000 2029-2033 3,170,000 383,000 Totals 5,815,000$ 1,344,200$ Governmental Activities 42 7.1.a Packet Pg. 164 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 6: LONG-TERM LIABILITIES (CONTINUED) Compensated Absences The City's policies relating to compensated absences are described in Note 1. This liability, amounting to $1,005,543 at June 30, 2023, is expected to be paid in future years from future resources, typically liquidated from the General Fund. Balance at June 30, 2022 Additions Deletions Balance at June 30, 2023 Due Within One Year Compensated absences 942,925$ 461,862$ 399,244$ 1,005,543$ 300,000$ NOTE 7: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION The City of Diamond Bar is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 124 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. A. Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $100,000 to $500,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $500,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses also have a $50 million per occurrence limit. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risk-sharing-pools/. Primary Workers’ Compensation Program Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $75,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $75,000 to $200,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $200,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. 43 7.1.a Packet Pg. 165 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 7: LIABILITY, PROPERTY AND WORKERS’ COMPENSATION PROTECTION (CONTINUED) For 2022-23 the Authority’s pooled retention is $1 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members. B. Purchased Insurance Pollution Legal Liability Insurance The City of Diamond Bar participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Diamond Bar. Coverage is on a claims-made basis. There is a $250,000 deductible. The Authority has an aggregate limit of $20 million. Property Insurance The City of Diamond Bar participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Diamond Bar property is currently insured according to a schedule of covered property submitted by the City of Diamond Bar to the Authority. City of Diamond Bar property currently has all-risk property insurance protection in the amount of $38,767,939. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Earthquake and Flood Insurance The City of Diamond Bar purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City of Diamond Bar property currently has earthquake protection in the amount of Non Participant. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Crime Insurance The City of Diamond Bar purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Special Event Tenant User Liability Insurance The City of Diamond Bar further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Diamond Bar according to a schedule. The City of Diamond Bar then pays for the insurance. The insurance is facilitated by the Authority. C. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2022-23. 44 7.1.a Packet Pg. 166 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 8: PENSIONS A. Rate Plan Description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the miscellaneous pools. Accordingly, rate plans miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the risk pools. The City sponsors two rate plans. Benefit provisions under the Plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. B. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to rate plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The Optional Settlement 2W Death Benefit or the Lump Sum Death Benefit. The cost of living adjustments for each rate plan are applied as specified by the Public Employees’ Retirement Law. The Rate Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows: Miscellaneous* Misc. PEPRA Hire dates Prior to January 1, 2013 January 1, 2013 and thereafter Benefit formula 2% @55 2% @62 Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life Retirement age Minumum 50 yrs Minumum 52 yrs Monthly benefits, as a percentage of eligible compensation 1.425% - 2.418%, 50 yrs - 63+ yrs, respectively 1.000% - 2.500%, 52 yrs - 67+ yrs, respectively Required employee contribution rates 6.920%6.750% Required employer contribution rates 10.320%7.470% Payment towards UAL 579,146$ 3,484$ * Miscellaneous rate plan is closed to new entrants. C. Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total rate plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City’s contributions to the Plan for the year ended June 30, 2023, were $1,157,713. 45 7.1.a Packet Pg. 167 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 8: PENSIONS (CONTINUED) D. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $7,903,769 and is expected to be paid in future years from future resources, typically liquidated from the General Fund. The City’s net pension liability for the Plan is measured as the proportionate share of thenet pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2023, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to Plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for each Rate Plan as of June 30, 2021 and 2022, was as follows: Miscellaneous Proportion - June 30, 2021 0.05574% Proportion - June 30, 2022 0.06843% Change - Increase (Decrease)0.01269% For the year ended June 30, 2023, the City recognized pension expense of $1,471,233. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience 158,723$ (106,306)$ Net Difference between projected and acutal earnings on pension plans investments 1,447,761 - Adjustment due to difference in proportions 439,481 - Change in assumptions 809,906 - Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions - (283,220) Current year contributions that occurred after the measurement date of June 30, 2022 1,157,714 - SubTotal 4,013,585$ (389,526)$ 46 7.1.a Packet Pg. 168 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 8: PENSIONS (CONTINUED) $1,157,713 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended Deferred Outflows/ June 30, (Inflows) of Resources 2024 676,344$ 2025 581,299 2026 323,203 2027 885,500 Thereafter - Total 2,466,346$ E. Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2022 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions: Actuarial Methods and Assumptions Investment rate of return 6.90% Inflation 2.30% Salary increases Varies by Entry Age and Service Mortality rate table 1 Derived using CalPERS' Membership Date for all Funds Post-retirement benefit increase Contract COLA up to 2.30% until Purchase Power Protection Allowance Floor on Purchasing Power applies. The collective total pension liability for the June 30, 2022 measurement period was determinded by an actuarial valuation as of June 30, 2021, with update procedures used to roll forward the total pension liability to June 30, 2022. The collective total pension liability was based on the following assumptions: 1 The mortality table was used developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 80% of scale MP 2020. For more details on this table, please refer to the December 2021 experience study report (based on CalPERS demographic date from 2010 to 2019) that can be found on the CalPERS website. All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period from 2010 to 2019, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. F. Change in Assumptions Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes 47 7.1.a Packet Pg. 169 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 8: PENSIONS (CONTINUED) are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. G. Discount Rate The discount rate used to measure the total pension liability for PERF C was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term return expectations as well as the expected pension fund cash flows. Using historical returns and forecasted information of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital assumptions applied to determine the discount rate and asset allocation. Asset Class 1 Assumed asset allocation Real return Global equity - Cap-weighted 30.00% 4.54% Global equity - Non-Cap-weighted 12.00% 3.84% Private equity 13.00% 7.28% Treasury 5.00% 0.27% Mortgage-backed securities 5.00% 0.50% Investment Grade Corporates 10.00% 1.56% High Yield 5.00% 2.27% Emerging Market Debt 5.00% 2.48% Private Debt 5.00% 3.57% Real Assets 15.00% 3.21% Leverage -5.00% -0.59% 48 7.1.a Packet Pg. 170 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 8: PENSIONS (CONTINUED) H. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate: Discount Rate - 1% (5.90%) Current Discount Rate (6.90%) Discount Rate +1% (7.90%) Plan's Net Pension Liability/(Assets)12,815,518$ 7,903,769$ 3,862,619$ I. Pension Plan Fiduciary Net Position Detailed information about the Plan’s fiduciary net positions is available in the separately issued CalPERS financial reports. NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS The City provides an agent multiple employer OPEB plan to retirees through the California Employers’ Retiree Benefit Trust (CERBT). Information on the plan is available from CalPERS on their website www.calpers.ca.gov. A. Plan Description Plan administration. Medical coverage is provided through CalPERS under the Public Employees' Medical and Hospital Care Act (PEMHCA), also referred to as PERS Health. Employees may choose from a variety of HMO and PPO medical and prescription drug options. Benefits provided. The City sets its monthly contribution rates for health insurance on behalf of active employees according to the PEMHCA statutory minimum $136/month for calendar 2019 and $139/month for calendar 2020.) These amounts are indexed (increased) in all future years according to the rate of medical inflation. The City pays a 0.33% of premium administrative charge for all active employees. The City offers the same medical plans to its retirees as to its active employees, with the general exception that upon reaching age 65 and becoming eligible for Medicare, the retiree must join one of the Medicare Supplement coverages offered under PEMHCA. Employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of covered PERS service (age 52 and 5 for hires after 1/1/13), or by attaining qualifying disability retirement status. The City's contribution on behalf of all eligible retirees is the same as for active employees $139/month for calendar 2020 and $219/month for calendar 2021, increased in all future years according to the rate of medical inflation.) The City pays a 0.33% of premium administrative charge on behalf of all retirees. B. Plan membership At June 30, 2023, membership consisted of the following: Inactive plan members or beneficiaries currently receiving benefit payments 11 Active plan members 61 Total 72 49 7.1.a Packet Pg. 171 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) C. Contributions The City currently contributes the full Actuarially Determined Contribution (ADC) to the CERBT OPEB trust, in addition to paying benefit payments outside the trust. For the measurement date ended June 30, 2023, the City’s total cash contributions were $106,000 in total payments, which were recognized as a reduction to the OPEB liability. D. Investments The CERBT was established for public agencies to pre-fund other post-employment benefit obligations. Employers may choose amount three different investment strategies. The City of Diamond Bar has selected Strategy 3. Compared to strategies 1 and 2, this portfolio consists of a higher percentage of bonds and other assets and a lesser percentage of equities. The following was the investment committee approved asset allocation targets as of June 30, 2022 (CalPERS ACFR for fiscal year 2022-2023 was not available as of the issuance of the City’s ACFR): Asset Class Target Allocation Global Equity 22% U.S. Fixed Income 49% TIPS 16% REITs 8% Commodoties 5% Total 100% E. Net OPEB Liability The City’s Net OPEB Liability was measured as of June 30, 2023 and the Total OPEB Liability used to calculate the Net OPEB Liability was determined by an actuarial valuation as of July 1, 2022 and is expected to be paid in future years from future resources, typically liquidated from the General Fund. F. Actuarial assumptions The total OPEB liability was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Actuarial Cost Method Entry Age Level Percent of Pay Cost Method Actuarial Assumptions Discount Rate 5.75% Salary increases 2.75% Inflation rate 2.50% Investment rate of return 5.75%, net of OPEB plan investment expense Healthcare cost trend rate 4.00% Pre-retirement mortality rates were based on the RP-2014 Employee Mortality Table for Males or Females, as appropriate, without projection. Post-retirement mortality rates were based on the RP-2014 Health Annuitant Mortality Table for Males or Females, as appropriate, without projection. Retirement and termination assumptions used were based on a review of plan experience and the actuary’s best estimate of future plan experience. 50 7.1.a Packet Pg. 172 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) G. Discount rate The discount rate used to measure the total OPEB liability was 5.75%. The projection of cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. H. Changes in the Net OPEB Liability The changes in the net OPEB liability are as follows: Total OPEB Liability (a) Plan Fiduciary Net Position (b) Net OPEB Liability/(Assets) (c) = (a) - (b) Balance at June 30, 2022 $ 1,278,930 $ 547,852 $ 731,078 Changes recognized for the measurement period: Service Cost 76,892 - 76,892 Interest 74,864 - 74,864 Expected Investment Income 34,017 (34,017) Changes of assumptions 23,517 - 23,517 Contributions - employer - 118,784 (118,784) Experience Gains (162,768) - (162,768) Net investment income - (23,947) 23,947 Benefit payments (30,784) (30,784) - Administrative expense - (486) 486 Net changes (18,279) 97,584 (115,863) Balance at June 30, 2023 $ 1,260,651 $ 645,436 $ 615,215 *Contributions-employer amount includes implicit subsidy associated with benefits paid. I. Sensitivity of the Net OPEB liability to changes in the discount rate The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower (4.75 percent) or 1 percentage-point higher (6.75 percent) than the current discount rate: Discount Rate - 1% (4.75%) Current Discount Rate (5.75%) Discount Rate +1% (6.75%) Net OPEB liability (asset) 462,538$ 615,215$ 798,976$ 51 7.1.a Packet Pg. 173 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 9: POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED) J. Sensitivity of the Net OPEB liability to changes in the healthcare cost trend rates The following presents the net OPEB liability, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.00 percent decreasing to 4.00 percent) or 1-percentage-point higher (7.00 percent decreasing to 6.00 percent) than the current healthcare cost trend rates: Trend Rate - 1% (4.00% decreasing to 3.00%) Trend Rate (5.00% decreasing to 4.00%) Trend Rate +1% (6.00% decreasing to 5.00%) Net OPEB liability (asset) 858,121$ 615,215$ 421,702$ K. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2023, the City’s deferred outflows of resources and deferred inflows of resources to OPEB from the following sources are: Deferred Outflows of Resources Deferred Inflows of Resources Change in assumptions 160,886$ -$ Difference between expected and actual experience 3,909 (187,440) Net differences between projected and actual return investments 58,589 - Total 223,384$ (187,440)$ Amounts reported as deferred outflows and deferred inflows of resources will be recognized in OPEB expense as follows: Year Ended June 30, Deferred Outflows/ (Inflows) of Resources 2024 17,184$ 2025 17,492 2026 24,412 2027 6,545 2028 (486) Thereafter (29,203) Total 35,944$ 52 7.1.a Packet Pg. 174 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 10: LEASES A. Leases Receivable and Deferred Inflows of Resources The City leases of communication equipment and land for the installation of cellular towers. The terms range from 60 months to 360 months as of the contract commencement date. Some leases have extension options of ranging from 60 months to 25 years. An initial lease receivable was recorded in the amount of $2,742,364. As of June 30, 2023, the value of the lease receivable is $2,212,295. The value of the deferred inflow of resources as of June 30, 2023 was $2,212,295, and the City recognized lease revenue of $96,689 during the fiscal year. The principal and interest payments that are expected to maturity are as follows: Fiscal Year Principal Payments Interest Payments Total Payments 2024 118,790$ 86,443$ 205,233$ 2025 123,628 81,605 205,233 2026 129,342 76,586 205,928 2027 129,723 71,338 201,061 2028 130,714 66,174 196,888 2029 - 2033 725,155 247,288 972,443 2034 - 2038 717,095 92,800 809,895 2039 - 2041 137,848 8,572 146,420 Total 2,212,295$ 730,806$ 2,943,101$ Principal and Interest Requirements to Maturity 53 7.1.a Packet Pg. 175 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 11: CLASSIFICATION OF FUND BALANCE Details of the fund balance classifications at June 30, 2023, are as follows: Restricted for Community Development Projects: Integrated Waste Management 1,973,610$ Trails & Bikeways Fund 25,001 Beverage Center Recycling 107,482 Used Oil Block Grant 28,823 Park and Facility Development 1,567,641 CDBG 22 PEG Fees 706,893 CASP Fees (SB1186) 26,331 Total 4,435,803 Restricted for Public Safety: COPS 353,280 CLEEP 8,351 Hazard Mitigation Grant 5,187 Total 366,818 Restricted for Highways and Streets: State Gas Tax 776,638 Proposition A Transit 1,934,977 Proposition C Transit 3,293,153 Transportation Grant 1,072 Traffic Improvement 8,091,761 Sewer Mitigation 57,234 Road Maintenance & Rehab 4,081,076 Measure R Local Return 1,279,993 Waste Hauler 335,428 Street Beautification 336,939 Measure W Local Return 1,572,838 Total 21,761,109 Restricted for Capital Projects: Air Quality Improvement 211,290 Measure M Local Return 2,079,201 Landscape Maintenance District 452,582 Total 2,743,073 Restricted for Debt Service: Public Financing Authority 1,561 Committed for Emergency Contingencies: General Fund 7,981,243 Assigned to Other Post Employment Benefits (OPEB): General Fund 291,182 Assigned to Technology Reserve: General Fund 591,346 Assigned for Capital Improvement Projects: General Fund 1,308,920 Assigned for Tres Hermanos Conservancy: General Fund (Tres Hermanos Fund 248) 6,910 Assigned for General Plan Update: General Fund (General Plan Update Fund 103) 518,504 Assigned for Law Enforcement Reserve: General Fund (Law Enforcement Reserve Fund 102) 941,362 Assigned for Community Organization Support: General Fund (Community Organization Support Fund 101) 2,062 Unassigned Fund Balance: General Fund (Fund 100) 22,959,067 Other Governmental Funds: (725,794) Total Unassigned Funds 22,233,273$ 54 7.1.a Packet Pg. 176 CITY OF DIAMOND BAR Notes to the Basic Financial Statements June 30, 2023 NOTE 12: TRES HERMANOS CONSERVATION AUTHORITY JOINT POWERS AUTHORITY The Tres Hermanos Conservation Authority (Authority) is a joint powers agency created by a joint powers agreement between the cities of Chino Hills and Diamond Bar, California, dated January 19, 1999. It was created pursuant to Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, in accordance with the provisions of the Marks-Roos Local Bond Pooling Act of 1985. The purpose of the Authority is to create a public entity to coordinate the overall development and conservation of a large undeveloped area of real property known as the Tres Hermanos Ranch, by preparing studies, plans, environmental reviews and similar information and by making recommendations to its members to take such actions including, but not limited to, acquisition and eminent domain as are necessary to implement its recommendations. On February 6, 2019, the Authority amended and restated its agreement with the City of Industry pursuant to a Settlement Agreement. The City of Industry purchased the Tres Hermanos Ranch from the Successor Agency to Industry’s Urban Development Agency. The City of Chino Hills and Diamond Bar contributed 10% of the purchase of the land. With the new agreement each City will contribute approximately $70,000 each year for ranch expenses and maintenance costs. The Board shall consist of seven voting directors and one alternate from each City, actions taken require at least four approval. Three must come from the City of Industry, two from City of Chino Hills and two from City of Diamond Bar. The Authority is a public entity separate and apart from each of the Cities. The funds of the Authority have not been included within the scope of the basic financial statements of the Cities because the Authority has its own governing board that has responsibility over the operations of the Authority. NOTE 13: CONSTRUCTION COMMITMENTS The City had the following material construction commitments at June 30, 2023: Residential & Collector Streets Rehabilitation (Area 2)2,660,276$ Total significant commitments 2,660,276$ NOTE 14: SUBSEQUENT EVENTS The City evaluated subsequent events for recognition and disclosure through December 8, 2023, the date on which these financial statements were available to be issued. Management concluded that no material subsequent events have occurred since June 30, 2023, that required recognition or disclosure in these financial statements. 55 7.1.a Packet Pg. 177 THIS PAGE INTENTIONALLY LEFT BLANK 56 7.1.a Packet Pg. 178 REQUIRED SUPPLEMENTARY INFORMATION 57 7.1.a Packet Pg. 179 CITY OF DIAMOND BAR Budgetary Comparison Schedule General Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 30,226,704$ 30,226,704$ 30,226,704$ -$ Resources (Inflows): Taxes 15,045,869 15,428,869 16,445,551 1,016,682 Licenses and Permits 2,297,168 2,410,433 2,275,281 (135,152) Intergovernmental 10,709,172 10,709,172 10,712,016 2,844 Charges for Services 1,354,205 1,566,705 1,593,826 27,121 Use of Money and Property 630,000 630,000 498,274 (131,726) Fines and Forfeitures 370,000 370,000 383,058 13,058 Miscellaneous 288,580 288,580 184,345 (104,235) Transfers In 1,246,825 1,309,925 1,261,764 (48,161) Total Resources 31,941,819 32,713,684 33,354,115 640,431 Amounts Available for Appropriations 62,168,523 62,940,388 63,580,819 640,431 Charges to Appropriations (Outflow): General Government City Council 212,260 212,260 210,861 1,399 City Attorney 205,000 205,000 152,608 52,392 City Manager/Clerk 1,284,959 1,281,959 1,178,575 103,384 Finance 946,669 946,669 835,132 111,537 Human Resources 525,369 525,369 532,727 (7,358) Information Systems 1,483,592 1,522,242 1,404,910 117,332 Public Information 847,148 854,364 686,820 167,544 Contribution to OPEB Trust 88,000 88,000 88,000 - City Clerk's Office 491,956 491,956 445,104 46,852 Diamond Bar Center 1,486,548 1,522,548 1,485,591 36,957 Subtotal General Government 7,571,501 7,650,367 7,020,328 630,039 Public Safety Law Enforcement 7,829,866 7,829,866 7,723,306 106,560 Volunteer Patrol 4,000 4,000 1,108 2,892 Fire Protection 7,500 7,500 7,359 141 Animal Control 391,700 391,700 373,879 17,821 Emergency Preparedness 47,100 47,100 39,173 7,927 Subtotal Public Safety 8,280,166 8,280,166 8,144,825 135,341 Community Development Community Development & Planning Admin.881,439 1,791,995 1,262,295 529,700 Economic Development 277,676 277,676 198,103 79,573 Building & Safety 997,599 1,100,623 964,868 135,755 Neighborhood Improvement 485,540 484,040 445,228 38,812 Subtotal Community Development 2,642,254 3,654,334 2,870,494 783,840 Parks and recreation Parks and Recreation Admin.2,419,632 2,560,632 1,941,947 618,685 Subtotal Parks and recreation 2,419,632 2,560,632 1,941,947 618,685 Public works Public Works Administration 692,822 697,969 524,606 173,363 Engineering 665,333 698,643 458,709 239,934 Road Maintenance 1,882,089 2,103,664 1,703,884 399,780 Landscape Maintenance 393,270 393,270 283,241 110,029 Parks & Facilities Maintenance 1,598,585 1,713,039 1,524,736 188,303 Civic Center 642,594 694,044 652,844 41,200 Subtotal Public works 5,874,693 6,300,629 5,148,020 1,152,609 Transfers Out 4,613,828 5,269,990 3,854,609 1,415,381 Total Charges to Appropriations 31,402,074 33,716,118 28,980,223 4,735,895 Budgetary Fund Balance, June 30 30,766,449$ 29,224,270$ 34,600,596$ 5,376,326$ See Notes to Required Supplementary Information.58 7.1.a Packet Pg. 180 CITY OF DIAMOND BAR Budgetary Comparison Schedule Traffic Improvement Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 7,144,649$ 7,144,649$ 7,144,649$ -$ Resources (Inflows): Intergovernmental 846,910 846,910 853,518 6,608 Use of money and property 81,600 81,600 93,594 11,994 Total Resources 928,510 928,510 947,112 18,602 Amounts Available for Appropriations 8,073,159 8,073,159 8,091,761 18,602 Budgetary Fund Balance, June 30 8,073,159$ 8,073,159$ 8,091,761$ 18,602$ See Notes to Required Supplementary Information.59 7.1.a Packet Pg. 181 CITY OF DIAMOND BAR Miscellaneous Rate Plan Schedule of Proportionate Share of the Net Pension Liability As of June30, for the Last Ten Fiscal Years (1) 2015 2016 2017 2018 Proportion of the Net Pension Liability 0.05155%0.04862%0.05325%0.05584% Proportionate Share of the Net Pension Liability 3,207,669$ 3,337,560$ 4,607,967$ 5,537,585$ Covered Payroll 4,376,117$ 4,650,369$ 4,551,711$ 4,680,371$ Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 73.30%71.77%101.24%118.32% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.82%78.40%74.06%73.31% Notes to Schedule: Changes of Assumptions: Benefit Changes: The figures above include any liability impact that may have resulted from voluntary benefit changes that occurred after the June 30, 2021 valuation. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) that occurred after the June 30, 2021 valuation date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown. Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%.In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates,and are used to project compound (geometric) returns over the long term.The discount rate used to discount liabilities was informed by the long-term projected portfolio return.In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.The accounting discount rate was 7.15% for measurement dates 2017 through 2021,7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. See Notes to Required Supplementary Information.60 7.1.a Packet Pg. 182 2019 2020 2021 2022 2023 0.05629%0.05926%0.06032%0.05574%0.06843% 5,424,380$ 6,072,351$ 6,563,014$ 3,014,631$ $7,903,769 5,088,134$ 5,077,171$ 5,227,663$ 5,417,136$ 5,433,199$ 106.61%119.60%125.54%55.65%145.47% 75.26%75.26%75.10%88.29%76.68% See Notes to Required Supplementary Information.61 7.1.a Packet Pg. 183 CITY OF DIAMOND BAR Miscellaneous Rate Plan Schedule of Plan Contributions - Pension As of June30, for the Last Ten Fiscal Years (1) 2015 2016 2017 2018 Actuarially Determined Contribution 403,553$ 460,471$ 386,806$ 418,739$ Contribution in Relation to the Actuarially Determined Contribution (403,553) (587,684) (542,557) (618,219) Contribution Deficiency (Excess)-$ (127,213)$ (155,751)$ (199,480)$ Covered Payroll 4,650,369$ 4,551,711$ 4,680,371$ 5,088,134$ Contributions as a Percentage of Covered Payroll 8.68%12.91%11.59%12.15% Note to Schedule: Valuation Date:June 30, 2021 Methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry Age Normal Cost Method Amortization method Level percentage of payroll, closed Asset valuation method Direct rate smoothing Inflation Payroll Growth Projected Salary Increases Investment Rate of Return 6.90% (net of administrative expenses) Retirement Age Mortality The mortality table used was developed based on CalPERS' specific data.The table includes 15 years of mortality improvements using 80 percent of Society of Actuaries' Scale 2020.For more details on this table, please refer to the 2021 experience study report. (1) Historical information is required only for measurement years for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only nine years are shown. 2.300% 2.750% Varies by Entry Age and Service All other actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period from 2010 to 2019,including updates to salary increase, mortality and retirement rates.The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications. See Notes to Required Supplementary Information.62 7.1.a Packet Pg. 184 2019 2020 2021 2022 2023 710,349$ 1,005,631$ 939,844$ 1,243,813$ 1,157,713$ (710,349) (1,005,631) (939,844) (1,243,813) (1,157,713) -$ -$ -$ -$ -$ 5,077,171$ 5,227,663$ 5,417,136$ 5,433,199$ 5,404,127$ 13.99%19.24%17.35%22.89%21.42% See Notes to Required Supplementary Information.63 7.1.a Packet Pg. 185 CITY OF DIAMOND BAR Schedule of Changes in the Net OPEB Liability and Related Ratios As of June 30, for the Last Ten Fiscal Years (1) 2018 2019 2020 Total OPEB Liability Service cost 55,838$ 57,513$ 41,976$ Interest on the total OPEB liability 41,616 46,352 53,641 Actual and expected experience difference - - 7,817 Changes in assumptions - - 10,172 Benefit payments (17,988) (19,058) (28,427) Net change in total OPEB liability 79,466 84,807 85,179 Total OPEB liability - beginning 702,459 781,925 866,732 Total OPEB liability - ending (a)781,925 866,732 951,911 Plan Fiduciary Net Position Contribution - employer 102,579 106,186 116,427 Net investment income 7,102 18,278 20,741 Actual and expected experience difference - - 1,529 Benefit payments (17,988) (19,058) (28,427) Administrative expense (132) (209) (302) Net change in plan fiduciary net position 91,561 105,197 109,968 Plan fiduciary net position - beginning 149,069 240,630 345,827 Plan fiduciary net position - ending (b)240,630 345,827 455,795 Net OPEB Liability/(Assets) - ending (a) - (b)541,295$ 520,905$ 496,116$ Plan fiduciary net position as a percentage of the total OPEB liability 30.77%39.90%47.88% Covered-employee payroll 5,163,684$ 5,077,171$ 6,113,473$ Net OPEB liability as a percentage of covered-employee payroll 10.48%10.26%8.12% Notes to Schedule: Changes in assumptions: There were no assumption changes since the prior measurement date. (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. See Notes to Required Supplementary Information.64 7.1.a Packet Pg. 186 2021 2022 2023 43,235$ 74,834$ 76,892$ 57,448 67,934 74,864 (54,653) - (162,768) 186,125 - 23,517 (32,136) (15,768) (30,784) 200,019 127,000 (18,279) 951,911 1,151,930 1,278,930 1,151,930 1,278,930 1,260,651 32,136 103,768 118,784 27,335 32,264 34,017 34,612 (89,300) (23,947) (32,136) (15,768) (30,784) (414) (440) (486) 61,533 30,524 97,584 455,795 517,328 547,852 517,328 547,852 645,436 634,602$ 731,078$ 615,215$ 44.91%42.84%51.20% 5,417,136$ 5,433,199$ 5,404,127$ 11.71%13.46%11.38% There were no assumption changes since the prior measurement date. See Notes to Required Supplementary Information.65 7.1.a Packet Pg. 187 CITY OF DIAMOND BAR Schedule of Contributions - OPEB As of June 30, for the Last Ten Fiscal Years (1) 2018 2019 2020 84,591$ 87,129$ 116,427$ (102,579) (106,186) (116,427) (17,988)$ (19,057)$ -$ 5,163,684$ 5,077,171$ 6,113,473$ 1.64%1.72%1.90% Notes to Schedule: Methods and assumptions used to determine contributions: Actuarial Cost Method Entry Age Level Percent of Pay Cost Method Discount rate 5.75% Salary increases Investment rate of return Healthcare cost trend rates PEMHCA Minimum Increase Rate Retirement and termination Mortality The mortality assumptions are based on the 2021 CalPERS Mortality for Miscellaneous and Schools Employees table created by CalPERS. CalPERS periodically studies mortality for participating agencies and establishes mortality tables that are modified versions of commonly used tables. This table incorporates mortality projection as deemed appropriate based on CalPERS analysis. Retirement and termination assumptions used were based on the 2021 CalPERS 2.0%@62 Rates for Miscellaneous Employees table created by CalPERS. Actuarially Determined Contribution Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess) Covered-employee payroll Contributions as a percentage of covered-employee payroll *Actuarial methods and assumptions used to set the actuarially determined contribution for Fiscal Year 2022 were from the June 30, 2023 actuarial valuation. (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. 4.10% for 2022 and later years 2.75% 4.00% for 2022-23 and after 5.75% See Notes to Required Supplementary Information.66 7.1.a Packet Pg. 188 2021 2022 2023 32,136$ 103,768$ 106,000$ (32,136) (103,768) - -$ -$ 106,000$ 5,417,136$ 5,433,199$ 5,404,127$ 0.59%1.91%1.96% See Notes to Required Supplementary Information.67 7.1.a Packet Pg. 189 THIS PAGE INTENTIONALLY LEFT BLANK 68 7.1.a Packet Pg. 190 CITY OF DIAMOND BAR Notes to Required Supplementary Information Year Ended June 30, 2023 NOTE 1: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Data General Budget Policies The City adopts an annual budget prepared on the modified accrual basis of accounting for its governmental funds and on the accrual basis of accounting for its proprietary funds. The City Manager or his designee is authorized to transfer budgeted amounts between the accounts of any department or funds that are approved by City Council. Prior year appropriations lapse unless they are approved for carryover into the following fiscal year. Expenditures may not legally exceed appropriations at the department level. Budget Basis of Accounting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Compliance with Budgetary Limitations The General Fund Human Resources department exceeded appropriations by $7,358 for the year ended June 30, 2023. The General Fund did not exceed total budgeted appropriations. The Transportation Grant and MTA Grant special revenue funds did not adopt budgets for the fiscal year ended June 30, 2023. 69 7.1.a Packet Pg. 191 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments 655,991$ 1,969,412$ 3,336,641$ 1,072$ Receivables: Accounts - - - - Notes and loans - - - - Due from other governments 120,647 - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets 776,638$ 1,969,412$ 3,336,641$ 1,072$ Liabilities and Fund Balances: Liabilities: Accounts payable -$ 26,069$ 38,396$ -$ Accrued liabilities - 8,366 5,092 - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Total Liabilities - 34,435 43,488 - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Restricted for: Community development projects - - - - Public safety - - - - Highways and streets 776,638 1,934,977 3,293,153 1,072 Capital Projects - - - - Debt service - - - - Unassigned - - - - Total Fund Balances 776,638 1,934,977 3,293,153 1,072 Total Liabilities and Fund Balances 776,638$ 1,969,412$ 3,336,641$ 1,072$ Special Revenue Funds State Gas Tax Fund Proposition A Transit Fund Proposition C Transit Fund Transportation Grant Fund 70 7.1.a Packet Pg. 192 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (Continued) 1,901,179$ 57,234$ 193,212$ 2,081,201$ 158,436 - - - - - - - - - 18,078 - - - - - 2,059,615$ 57,234$ 211,290$ 2,081,201$ 18,634$ -$ -$ 2,000$ 13,590 - - - 53,781 - - - - - - - - - - - 86,005 - - 2,000 - - - - - - - - 1,973,610 - - - - - - - - 57,234 - - - - 211,290 2,079,201 - - - - - - - - 1,973,610 57,234 211,290 2,079,201 2,059,615$ 57,234$ 211,290$ 2,081,201$ Special Revenue Funds Integrated Waste Management Fund Sewer Mitigation Fund Air Quality Improvement Fund Measure M Local Return Fund 71 7.1.a Packet Pg. 193 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 3,866,102$ 25,001$ -$ 107,482$ - - - - - - - - 214,974 - 56,599 - - - - - 4,081,076$ 25,001$ 56,599$ 107,482$ -$ -$ -$ -$ - - - - - - - - - - - - - - 56,599 - - - 56,599 - - - 56,599 - - - 56,599 - - 25,001 - 107,482 - - - - 4,081,076 - - - - - - - - - - - - - (56,599) - 4,081,076 25,001 (56,599) 107,482 4,081,076$ 25,001$ 56,599$ 107,482$ Special Revenue Funds Road Maintenance & Rehab Trails & Bikeways Fund MTA Grant Fund Beverage Center Recycling Grant Fund 72 7.1.a Packet Pg. 194 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (Continued) 28,823$ 1,567,641$ -$ 353,280$ - - - - - - 432,236 - - - 78,188 - - - - - 28,823$ 1,567,641$ 510,424$ 353,280$ -$ -$ 39,858$ -$ - - 2,703 - - - - - - - 432,236 - - - 35,605 - - - 510,402 - - - - - - - - - 28,823 1,567,641 22 - - - - 353,280 - - - - - - - - - - - - - - - - 28,823 1,567,641 22 353,280 28,823$ 1,567,641$ 510,424$ 353,280$ Special Revenue Funds Used Oil Block Grant Fund Park and Facility Development Fund CDBG Fund COPS Fund 73 7.1.a Packet Pg. 195 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 8,351$ 659,197$ 1,279,993$ 687,720$ - 17,111 - 19,173 - - - - - - - - - - - - 8,351$ 676,308$ 1,279,993$ 706,893$ -$ 219,772$ -$ -$ - 3,954 - - - - - - - - - - - - - - - 223,726 - - - - - - - - - - - - - 706,893 8,351 - - - - - 1,279,993 - - 452,582 - - - - - - - - - - 8,351 452,582 1,279,993 706,893 8,351$ 676,308$ 1,279,993$ 706,893$ CLEEP Fund Landscape Maintenance District Fund Measure R Local Return Fund PEG Fees Fund Special Revenue Funds 74 7.1.a Packet Pg. 196 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (Continued) 298,085$ 45,473$ -$ 336,939$ 37,343 - - - - - - - - - 184,000 - - - - - 335,428$ 45,473$ 184,000$ 336,939$ -$ -$ -$ -$ - - - - - - 184,000 - - 19,142 - - - - 184,000 - - 19,142 368,000 - - - - - - - - - - 26,331 - - - - - - 335,428 - - 336,939 - - - - - - - - - - (184,000) - 335,428 26,331 (184,000) 336,939 335,428$ 45,473$ 184,000$ 336,939$ Special Revenue Funds Waste Hauler Fund CASP Fees (SB1186) Measure A Neighborhood Park Acts Fund Street Beautification 75 7.1.a Packet Pg. 197 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Debt Service Fund -$ 1,587,046$ 5,187$ -$ - - - - - - - - - - - - - - - 1,561 -$ 1,587,046$ 5,187$ 1,561$ -$ 11,110$ -$ -$ - 3,098 - - - - - - - - - - 92 - - - 92 14,208 - - - - - - - - - - - - - - - - 5,187 - - 1,572,838 - - - - - - - - - 1,561 (92) - - - (92) 1,572,838 5,187 1,561 -$ 1,587,046$ 5,187$ 1,561$ Special Revenue Funds Local Roadway Safety Plan Fund Measure W Local Return Fund Hazard Mitigation Grant Fund Public Financing Authority 76 7.1.a Packet Pg. 198 CITY OF DIAMOND BAR Combining Balance Sheet Nonmajor Governmental Funds June 30, 2023 Assets: Pooled cash and investments Receivables: Accounts Notes and loans Due from other governments Restricted assets: Cash and investments with fiscal agents Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Due to other governments Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Highways and streets Capital Projects Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Total Governmental Funds 21,052,262$ 232,063 432,236 672,486 1,561 22,390,608$ 355,839$ 36,803 237,781 451,378 276,296 1,358,097 56,599 56,599 4,435,803 366,818 13,669,348 2,743,073 1,561 (240,691) 20,975,912 22,390,608$ 77 7.1.a Packet Pg. 199 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental 1,379,323 1,490,789 1,236,567 - Charges for services - 67,550 - - Use of money and property 13,531 29,543 35,603 - Miscellaneous - - - - Total Revenues 1,392,854 1,587,882 1,272,170 - Expenditures: Current: General government - - - - Public safety - - - - Community development - - - - Parks and recreation - 14,744 - - Public works - 576,373 470,587 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 591,117 470,587 - Excess (Deficiency) of Revenues Over (Under) Expenditures 1,392,854 996,765 801,583 - Other Financing Sources (Uses): Transfers in - - - - Transfers out (1,112,262) (1,099,657) (221,606) - Total Other Financing Sources (Uses)(1,112,262) (1,099,657) (221,606) - Net Change in Fund Balances 280,592 (102,892) 579,977 - Fund Balances, Beginning of Year 496,046 2,037,869 2,713,176 1,072 Fund Balances, End of Year 776,638$ 1,934,977$ 3,293,153$ 1,072$ Special Revenue Funds State Gas Tax Fund Proposition A Transit Fund Proposition C Transit Fund Transportation Grant Fund 78 7.1.a Packet Pg. 200 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (Continued) -$ -$ -$ -$ - - - - 27,180 - 93,387 1,048,814 636,165 - - - - 668 2,697 33,112 16,181 - - - 679,526 668 96,084 1,081,926 - - - - - - - - 512,386 - - - - - - - - - - 44,047 - - 115,262 - - - - - - - - - 512,386 - 115,262 44,047 167,140 668 (19,178) 1,037,879 - - - - - - - (1,400,525) - - - (1,400,525) 167,140 668 (19,178) (362,646) 1,806,470 56,566 230,468 2,441,847 1,973,610$ 57,234$ 211,290$ 2,079,201$ Special Revenue Funds Integrated Waste Management Fund Sewer Mitigation Fund Air Quality Improvement Fund Measure M Local Return Fund 79 7.1.a Packet Pg. 201 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ -$ -$ - - - - 1,226,816 38,689 - 13,817 - - - - 42,274 - - 1,165 - - - - 1,269,090 38,689 - 14,982 - - - - - - - - - - - 4,428 - - - - - - - - - - - - - - - - - - - - - - - 4,428 1,269,090 38,689 - 10,554 - - - - (407,353) (16,617) - - (407,353) (16,617) - - 861,737 22,072 - 10,554 3,219,339 2,929 (56,599) 96,928 4,081,076$ 25,001$ (56,599)$ 107,482$ Special Revenue Funds Road Maintenance & Rehab Trails & Bikeways Fund MTA Grant Fund Beverage Center Recycling Grant Fund 80 7.1.a Packet Pg. 202 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (Continued) -$ -$ -$ -$ - - - - 8,557 708,785 293,720 165,271 - - - - 292 11,708 - 5,051 - - - - 8,849 720,493 293,720 170,322 - - - - - - - 4,600 6,274 - 129,305 - - - 10,538 - - - - - - - - - - - - - - - - - 6,274 - 139,843 4,600 2,575 720,493 153,877 165,722 - - - - - (26,488) (153,693) (150,000) - (26,488) (153,693) (150,000) 2,575 694,005 184 15,722 26,248 873,636 (162) 337,558 28,823$ 1,567,641$ 22$ 353,280$ Special Revenue Funds CDBG Fund COPS Fund Used Oil Block Grant Fund Park and Facility Development Fund 81 7.1.a Packet Pg. 203 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ 1,182,584$ -$ 79,799$ - - - - - - 927,158 - - - - - 98 - 24,285 7,429 - - - - 98 1,182,584 951,443 87,228 - - - 2,114 - - - - - - - - - - - - - 964,612 - - - - - - - - - - - - - - - 964,612 - 2,114 98 217,972 951,443 85,114 - 106,242 - - - (62,764) (1,375,043) - - 43,478 (1,375,043) - 98 261,450 (423,600) 85,114 8,253 191,132 1,703,593 621,779 8,351$ 452,582$ 1,279,993$ 706,893$ Special Revenue Funds Measure R Local Return Fund PEG Fees Fund CLEEP Fund Landscape Maintenance District Fund 82 7.1.a Packet Pg. 204 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (Continued) -$ -$ -$ -$ 132,048 - - - - - - - - - - - 3,939 478 - 3,940 - - - - 135,987 478 - 3,940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 135,987 478 - 3,940 - - - - (134,412) - (184,000) - (134,412) - (184,000) - 1,575 478 (184,000) 3,940 333,853 25,853 - 332,999 335,428$ 26,331$ (184,000)$ 336,939$ Special Revenue Funds Street Beautification Waste Hauler Fund CASP Fees (SB1186) Measure A Neighborhood Park Acts Fund 83 7.1.a Packet Pg. 205 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Debt Service Fund -$ -$ -$ -$ - - - - - 837,850 3,707 - - - - - - 17,436 63 1,870 - - - - - 855,286 3,770 1,870 - - - - - - - - - - - - - - - - - 200,085 - - - - - - - - - 465,000 - - - 254,200 - 200,085 - 719,200 - 655,201 3,770 (717,330) - - - 718,816 - (230,455) - - - (230,455) - 718,816 - 424,746 3,770 1,486 (92) 1,148,092 1,417 75 (92)$ 1,572,838$ 5,187$ 1,561$ Special Revenue Funds Public Financing Authority Local Roadway Safety Plan Fund Measure W Local Return Fund Hazard Mitigation Grant Fund 84 7.1.a Packet Pg. 206 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2023 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Total Governmental Funds 1,262,383$ 132,048 9,500,430 703,715 235,182 16,181 11,849,939 2,114 4,600 652,393 25,282 2,255,704 115,262 465,000 254,200 3,774,555 8,075,384 825,058 (6,574,875) (5,749,817) 2,325,567 18,650,345 20,975,912$ 85 7.1.a Packet Pg. 207 CITY OF DIAMOND BAR Budgetary Comparison Schedule State Gas Tax Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 496,046$ 496,046$ 496,046$ -$ Resources (Inflows): Intergovernmental 1,640,406 1,640,406 1,379,323 (261,083) Use of money and property 1,800 1,800 13,531 11,731 Total Resources 1,642,206 1,642,206 1,392,854 (249,352) Amounts Available for Appropriations 2,138,252 2,138,252 1,888,900 (249,352) Charges to Appropriations (Outflow): Transfers out 1,563,000 1,702,000 1,112,262 589,738 Total Charges to Appropriations 1,563,000 1,702,000 1,112,262 589,738 Budgetary Fund Balance, June 30 575,252$ 436,252$ 776,638$ 340,386$ 86 7.1.a Packet Pg. 208 CITY OF DIAMOND BAR Budgetary Comparison Schedule Proposition A Transit Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,037,869$ 2,037,869$ 2,037,869$ -$ Resources (Inflows): Intergovernmental 1,383,713 1,383,713 1,490,789 107,076 Charges for services 200,000 200,000 67,550 (132,450) Use of money and property 2,700 2,700 29,543 26,843 Total Resources 1,586,413 1,586,413 1,587,882 1,469 Amounts Available for Appropriations 3,624,282 3,624,282 3,625,751 1,469 Charges to Appropriations (Outflow): Parks and recreation 12,000 25,000 14,744 10,256 Public works 1,017,024 1,004,024 576,373 427,651 Transfers out 270,000 1,200,000 1,099,657 100,343 Total Charges to Appropriations 1,299,024 2,229,024 1,690,774 538,250 Budgetary Fund Balance, June 30 2,325,258$ 1,395,258$ 1,934,977$ 539,719$ 87 7.1.a Packet Pg. 209 CITY OF DIAMOND BAR Budgetary Comparison Schedule Proposition C Transit Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,713,176$ 2,713,176$ 2,713,176$ -$ Resources (Inflows): Intergovernmental 1,147,753 1,147,753 1,236,567 88,814 Use of money and property 9,500 9,500 35,603 26,103 Total Resources 1,157,253 1,157,253 1,272,170 114,917 Amounts Available for Appropriations 3,870,429 3,870,429 3,985,346 114,917 Charges to Appropriations (Outflow): Public works 550,742 550,742 470,587 80,155 Transfers out 361,000 1,200,002 221,606 978,396 Total Charges to Appropriations 911,742 1,750,744 692,193 1,058,551 Budgetary Fund Balance, June 30 2,958,687$ 2,119,685$ 3,293,153$ 1,173,468$ 88 7.1.a Packet Pg. 210 CITY OF DIAMOND BAR Budgetary Comparison Schedule Integrated Waste Management Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,806,470$ 1,806,470$ 1,806,470$ -$ Resources (Inflows): Intergovernmental - - 27,180 27,180 Charges for services 572,267 572,267 636,165 63,898 Use of money and property 14,700 14,700 - (14,700) Miscellaneous 89,936 89,936 16,181 (73,755) Total Resources 676,903 676,903 679,526 2,623 Amounts Available for Appropriations 2,483,373 2,483,373 2,485,996 2,623 Charges to Appropriations (Outflow): Community development 697,852 796,292 512,386 283,906 Transfers out 10,000 10,000 - 10,000 Total Charges to Appropriations 707,852 806,292 512,386 293,906 Budgetary Fund Balance, June 30 1,775,521$ 1,677,081$ 1,973,610$ 296,529$ 89 7.1.a Packet Pg. 211 CITY OF DIAMOND BAR Budgetary Comparison Schedule Sewer Mitigation Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 56,566$ 56,566$ 56,566$ -$ Resources (Inflows): Use of money and property 400 400 668 268 Amounts Available for Appropriations 56,966 56,966 57,234 268 Budgetary Fund Balance, June 30 56,966$ 56,966$ 57,234$ 268$ 90 7.1.a Packet Pg. 212 CITY OF DIAMOND BAR Budgetary Comparison Schedule Air Quality Improvement Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 230,468$ 230,468$ 230,468$ -$ Resources (Inflows): Intergovernmental 75,000 75,000 93,387 18,387 Use of money and property 1,000 1,000 2,697 1,697 Total Resources 76,000 76,000 96,084 20,084 Amounts Available for Appropriations 306,468 306,468 326,552 20,084 Charges to Appropriations (Outflow): Capital outlay 132,000 132,000 115,262 16,738 Transfers out 67,000 67,000 - 67,000 Total Charges to Appropriations 199,000 199,000 115,262 83,738 Budgetary Fund Balance, June 30 107,468$ 107,468$ 211,290$ 103,822$ 91 7.1.a Packet Pg. 213 CITY OF DIAMOND BAR Budgetary Comparison Schedule Road Maintenance & Rehab Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,219,339$ 3,219,339$ 3,219,339$ -$ Resources (Inflows): Intergovernmental 1,292,845 1,292,845 1,226,816 (66,029) Use of money and property 12,900 12,900 42,274 29,374 Total Resources 1,305,745 1,305,745 1,269,090 (36,655) Amounts Available for Appropriations 4,525,084 4,525,084 4,488,429 (36,655) Charges to Appropriations (Outflow): Transfers out 400,000 1,677,457 407,353 1,270,104 Total Charges to Appropriations 400,000 1,677,457 407,353 1,270,104 Budgetary Fund Balance, June 30 4,125,084$ 2,847,627$ 4,081,076$ 1,233,449$ 92 7.1.a Packet Pg. 214 CITY OF DIAMOND BAR Budgetary Comparison Schedule Trails & Bikeways Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,929$ 2,929$ 2,929$ -$ Resources (Inflows): Intergovernmental 53,399 53,399 38,689 (14,710) Total Resources 53,399 53,399 38,689 (14,710) Amounts Available for Appropriations 56,328 56,328 41,618 (14,710) Charges to Appropriations (Outflow): Transfers out - 16,890 16,617 273 Total Charges to Appropriations - 16,890 16,617 273 Budgetary Fund Balance, June 30 56,328$ 39,438$ 25,001$ (14,437)$ 93 7.1.a Packet Pg. 215 CITY OF DIAMOND BAR Budgetary Comparison Schedule Beverage Center Recycling Grant Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 96,928$ 96,928$ 96,928$ -$ Resources (Inflows): Intergovernmental 14,337 14,337 13,817 (520) Use of money and property 600 600 1,165 565 Total Resources 14,937 14,937 14,982 45 Amounts Available for Appropriations 111,865 111,865 111,910 45 Charges to Appropriations (Outflow): Community development 14,300 14,300 4,428 9,872 Total Charges to Appropriations 14,300 14,300 4,428 9,872 Budgetary Fund Balance, June 30 97,565$ 97,565$ 107,482$ 9,917$ 94 7.1.a Packet Pg. 216 CITY OF DIAMOND BAR Budgetary Comparison Schedule Used Oil Block Grant Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 26,248$ 26,248$ 26,248$ -$ Resources (Inflows): Intergovernmental 6,974 6,974 8,557 1,583 Use of money and property 200 200 292 92 Total Resources 7,174 7,174 8,849 1,675 Amounts Available for Appropriations 33,422 33,422 35,097 1,675 Charges to Appropriations (Outflow): Community development 10,400 10,400 6,274 4,126 Total Charges to Appropriations 10,400 10,400 6,274 4,126 Budgetary Fund Balance, June 30 23,022$ 23,022$ 28,823$ 5,801$ 95 7.1.a Packet Pg. 217 CITY OF DIAMOND BAR Budgetary Comparison Schedule Park and Facility Development Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 873,636$ 873,636$ 873,636$ -$ Resources (Inflows): Intergovernmental - - 708,785 708,785 Use of money and property 7,800 7,800 11,708 3,908 Total Resources 7,800 7,800 720,493 712,693 Amounts Available for Appropriations 881,436 881,436 1,594,129 712,693 Charges to Appropriations (Outflow): Transfers out 717,000 738,111 26,488 711,623 Total Charges to Appropriations 717,000 738,111 26,488 711,623 Budgetary Fund Balance, June 30 164,436$ 143,325$ 1,567,641$ 1,424,316$ 96 7.1.a Packet Pg. 218 CITY OF DIAMOND BAR Budgetary Comparison Schedule Community Development Block Grant (CDBG Fund) Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (162)$ (162)$ (162)$ -$ Resources (Inflows): Intergovernmental 295,819 373,046 293,720 (79,326) Total Resources 295,819 373,046 293,720 (79,326) Amounts Available for Appropriations 295,657 372,884 293,558 (79,326) Charges to Appropriations (Outflow): Community development 233,387 255,353 129,305 126,048 Parks and recreation 17,890 17,890 10,538 7,352 Transfers out 184,000 372,310 153,693 218,617 Total Charges to Appropriations 435,277 645,553 293,536 352,017 Budgetary Fund Balance, June 30 (139,620)$ (272,669)$ 22$ 272,691$ 97 7.1.a Packet Pg. 219 CITY OF DIAMOND BAR Budgetary Comparison Schedule Citizens Option for Public Safety (COPS) Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 337,558$ 337,558$ 337,558$ -$ Resources (Inflows): Intergovernmental 150,000 150,000 165,271 15,271 Use of money and property 3,200 3,200 5,051 1,851 Total Resources 153,200 153,200 170,322 17,122 Amounts Available for Appropriations 490,758 490,758 507,880 17,122 Charges to Appropriations (Outflow): Public safety 10,000 10,000 4,600 5,400 Transfers out 152,500 152,500 150,000 2,500 Total Charges to Appropriations 162,500 162,500 154,600 7,900 Budgetary Fund Balance, June 30 328,258$ 328,258$ 353,280$ 25,022$ 98 7.1.a Packet Pg. 220 CITY OF DIAMOND BAR Budgetary Comparison Schedule California Law Enforcement Equipment Program (CLEEP) Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 8,253$ 8,253$ 8,253$ -$ Resources (Inflows): Use of money and property 100 100 98 (2) Total Resources 100 100 98 (2) Amounts Available for Appropriations 8,353 8,353 8,351 (2) Charges to Appropriations (Outflow): Transfers out 325 325 - 325 Total Charges to Appropriations 325 325 - 325 Budgetary Fund Balance, June 30 8,028$ 8,028$ 8,351$ 323$ 99 7.1.a Packet Pg. 221 CITY OF DIAMOND BAR Budgetary Comparison Schedule Landscape Maintenance District Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 191,132$ 191,132$ 191,132$ -$ Resources (Inflows): Taxes 1,182,904 1,182,904 1,182,584 (320) Transfers in 212,118 212,118 106,242 (105,876) Total Resources 1,395,022 1,395,022 1,288,826 (106,196) Amounts Available for Appropriations 1,586,154 1,586,154 1,479,958 (106,196) Charges to Appropriations (Outflow): Public works 1,335,140 1,303,941 964,612 339,329 Transfers out - 63,100 62,764 336 Total Charges to Appropriations 1,335,140 1,367,041 1,027,376 339,665 Budgetary Fund Balance, June 30 251,014$ 219,113$ 452,582$ 233,469$ 100 7.1.a Packet Pg. 222 CITY OF DIAMOND BAR Budgetary Comparison Schedule Measure R Local Return Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,703,593$ 1,703,593$ 1,703,593$ -$ Resources (Inflows): Intergovernmental 860,815 860,815 927,158 66,343 Use of money and property 4,500 4,500 24,285 19,785 Total Resources 865,315 865,315 951,443 86,128 Amounts Available for Appropriations 2,568,908 2,568,908 2,655,036 86,128 Charges to Appropriations (Outflow): Transfers out 1,450,000 2,350,000 1,375,043 974,957 Total Charges to Appropriations 1,450,000 2,350,000 1,375,043 974,957 Budgetary Fund Balance, June 30 1,118,908$ 218,908$ 1,279,993$ 1,061,085$ 101 7.1.a Packet Pg. 223 CITY OF DIAMOND BAR Budgetary Comparison Schedule PEG Fees Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 621,779$ 621,779$ 621,779$ -$ Resources (Inflows): Taxes 100,000 100,000 79,799 (20,201) Use of money and property 3,800 3,800 7,429 3,629 Total Resources 103,800 103,800 87,228 (16,572) Amounts Available for Appropriations 725,579 725,579 709,007 (16,572) Charges to Appropriations (Outflow): General government 100,000 100,000 2,114 97,886 Transfers out 300,000 300,000 - 300,000 Total Charges to Appropriations 400,000 400,000 2,114 397,886 Budgetary Fund Balance, June 30 325,579$ 325,579$ 706,893$ 381,314$ 102 7.1.a Packet Pg. 224 CITY OF DIAMOND BAR Budgetary Comparison Schedule Hazard Mitigation Grant Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,417$ 1,417$ 1,417$ -$ Resources (Inflows): Intergovernmental 22,500 22,500 3,707 (18,793) Use of money and property - - 63 63 Total Resources 22,500 22,500 3,770 (18,730) Amounts Available for Appropriations 23,917 23,917 5,187 (18,730) Budgetary Fund Balance, June 30 23,917$ 23,917$ 5,187$ (18,730)$ 103 7.1.a Packet Pg. 225 CITY OF DIAMOND BAR Budgetary Comparison Schedule Waste Hauler Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 333,853$ 333,853$ 333,853$ -$ Resources (Inflows): Licenses and permits 152,437 152,437 132,048 (20,389) Use of money and property 1,300 1,300 3,939 2,639 Total Resources 153,737 153,737 135,987 (17,750) Amounts Available for Appropriations 487,590 487,590 469,840 (17,750) Charges to Appropriations (Outflow): Transfers out 146,000 282,000 134,412 147,588 Total Charges to Appropriations 146,000 282,000 134,412 147,588 Budgetary Fund Balance, June 30 341,590$ 205,590$ 335,428$ 129,838$ 104 7.1.a Packet Pg. 226 CITY OF DIAMOND BAR Budgetary Comparison Schedule CASP Fees (SB1186) Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 25,853$ 25,853$ 25,853$ -$ Resources (Inflows): Licenses and permits 8,000 8,000 - (8,000) Use of money and property 200 200 478 278 Total Resources 8,200 8,200 478 (7,722) Amounts Available for Appropriations 34,053 34,053 26,331 (7,722) Budgetary Fund Balance, June 30 34,053$ 34,053$ 26,331$ (7,722)$ 105 7.1.a Packet Pg. 227 CITY OF DIAMOND BAR Budgetary Comparison Schedule Measure A Neighborhood Parks Acts Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental 185,000 185,000 - (185,000) Total Resources 185,000 185,000 - (185,000) Amounts Available for Appropriations 185,000 185,000 - (185,000) Charges to Appropriations (Outflow): Transfers out - 185,000 184,000 1,000 Total Charges to Appropriations - 185,000 184,000 1,000 Budgetary Fund Balance, June 30 185,000$ -$ (184,000)$ (184,000)$ 106 7.1.a Packet Pg. 228 CITY OF DIAMOND BAR Budgetary Comparison Schedule Street Beautification Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 332,999$ 332,999$ 332,999$ -$ Resources (Inflows): Use of money and property 2,400 2,400 3,940 1,540 Amounts Available for Appropriations 335,399 335,399 336,939 1,540 Budgetary Fund Balance, June 30 335,399$ 335,399$ 336,939$ 1,540$ 107 7.1.a Packet Pg. 229 CITY OF DIAMOND BAR Budgetary Comparison Schedule Measure W Local Return Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,148,092$ 1,148,092$ 1,148,092$ -$ Resources (Inflows): Intergovernmental 850,000 850,000 837,850 (12,150) Use of money and property - - 17,436 17,436 Total Resources 850,000 850,000 855,286 5,286 Amounts Available for Appropriations 1,998,092 1,998,092 2,003,378 5,286 Charges to Appropriation (Outflow): Public works 435,878 435,878 200,085 235,793 Transfers out 775,000 964,210 230,455 733,755 Total Charges to Appropriations 1,210,878 1,400,088 430,540 969,548 Budgetary Fund Balance, June 30 787,214$ 598,004$ 1,572,838$ 974,834$ 108 7.1.a Packet Pg. 230 CITY OF DIAMOND BAR Budgetary Comparison Schedule Measure M Local Return Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,441,847$ 2,441,847$ 2,441,847$ -$ Resources (Inflows): Intergovernmental 975,590 975,590 1,048,814 73,224 Use of money and property 7,400 7,400 33,112 25,712 Total Resources 982,990 982,990 1,081,926 98,936 Amounts Available for Appropriations 3,424,837 3,424,837 3,523,773 98,936 Charges to Appropriations (Outflow): Public works 55,000 55,000 44,047 10,953 Transfers out 1,860,000 3,249,461 1,400,525 1,848,936 Total Charges to Appropriations 1,915,000 3,304,461 1,444,572 1,859,889 Budgetary Fund Balance, June 30 1,509,837$ 120,376$ 2,079,201$ 1,958,825$ 109 7.1.a Packet Pg. 231 CITY OF DIAMOND BAR Budgetary Comparison Schedule Capital Improvement Fund Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (130,575)$ (130,575)$ (130,575)$ -$ Resources (Inflows): Intergovernmental 213,000 634,342 28,312 (606,030) Miscellaneous - - 1,559 1,559 Transfers in 9,147,000 15,626,635 6,410,629 (9,216,006) Fiscal Year Ending June 30, 2022 subtotal 9,360,000 16,260,977 6,440,500 (9,820,477) Amounts Available for Appropriations 9,229,425 16,130,402 6,309,925 (9,820,477) Charges to Appropriations (Outflow): Capital outlay 9,360,000 16,092,950 6,795,028 9,297,922 Total Charges to Appropriations 9,360,000 16,092,950 6,795,028 9,297,922 Budgetary Fund Balance, June 30 (130,575)$ 37,452$ (485,103)$ (522,555)$ 110 7.1.a Packet Pg. 232 CITY OF DIAMOND BAR Budetary Comparison Schedule Public Financing Authority Year Ended June 30, 2023 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 75$ 75$ 75$ -$ Resources (Inflows): Use of money and property 300 300 1,870 1,570 Transfers in 719,400 719,400 718,816 (584) Fiscal Year Ending June 30, 2022 subtotal 719,700 719,700 720,686 986 Amounts Available for Appropriations 719,775 719,775 720,761 986 Charges to Appropriations (Outflow): Debt service: Principal retirement 465,000 465,000 465,000 - Interest and fiscal charges 254,700 254,700 254,200 500 Total Charges to Appropriations 719,700 719,700 719,200 500 Budgetary Fund Balance, June 30 75$ 75$ 1,561$ 1,486$ 111 7.1.a Packet Pg. 233 CITY OF DIAMOND BAR Combining Statement of Net Position Internal Service Funds June 30, 2023 Totals Assets: Current: Cash and investments 954,264$ 319,607$ 2,076,849$ 1,117,008$ 4,467,728$ Due from other governments 49,787 - 19,301 - 69,088 Total Current Assets 1,004,051 319,607 2,096,150 1,117,008 4,536,816 Noncurrent: Capital assets - net of accumulated depreciation - 49,336 811,965 48,700 910,001 Total Noncurrent Assets - 49,336 811,965 48,700 910,001 Total Assets 1,004,051$ 368,943$ 2,908,115$ 1,165,708$ 5,446,817$ Liabilities: Current: Accounts payable -$ 2,743$ 63,722$ 54,557$ 121,022$ Due to other governments 49,074 - - - 49,074 . Total Current Liabilities 49,074 2,743 63,722 54,557 170,096 Total Liabilities 49,074 2,743 63,722 54,557 170,096 Net Position: Invested in capital assets - 49,336 811,965 48,700 910,001 Unrestricted 954,977 316,864 2,032,428 1,062,451 4,366,720 Total Net Position 954,977 366,200 2,844,393 1,111,151 5,276,721 1,004,051$ 368,943$ 2,908,115$ 1,165,708$ 5,446,817$ Governmental Activities - Internal Service Funds Self Insurance Fund Equipment Replacement Fund Computer Equipment Replacement Fund Building Facility & Maintenance Fund Liabilities and Net Position: Total Liabilities and Net Position 112 7.1.a Packet Pg. 234 CITY OF DIAMOND BAR Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds Year Ended June 30, 2023 Totals Operating Expenses: Insurance premiums 510,516 -$ -$ -$ 510,516$ Equipment repair and maintenance - 77,797 301,581 139,030 518,408 Depreciation and amortization expense - 36,275 187,558 4,592 228,425 Total Operating Expenses 510,516 114,072 489,139 143,622 1,257,349 Operating Income (Loss)(510,516) (114,072) (489,139) (143,622) (1,257,349) Nonoperating Revenues (Expenses): Interest revenue 6,467 3,038 13,307 13,999 36,811 Contributions - - 19,301 - 19,301 Total Nonoperating Revenues (Expenses)6,467 3,038 32,608 13,999 56,112 Income (Loss) Before Transfers (504,049) (111,034) (456,531) (129,623) (1,201,237) Transfers in 460,360 160,650 1,276,023 100,000 1,997,033 Transfers out - - - (65,000) (65,000) Changes in Net Position (43,689) 49,616 819,492 (94,623) 730,796 Net Position: Beginning of Fiscal Year 998,666 316,584 2,024,901 1,205,774 4,545,925 End of Fiscal Year 954,977$ 366,200$ 2,844,393$ 1,111,151$ 5,276,721$ Governmental Activities - Internal Service Funds Self Insurance Fund Equipment Replacement Fund Computer Equipment Replacement Fund Building Facility & Maintenance Fund 113 7.1.a Packet Pg. 235 CITY OF DIAMOND BAR Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2023 Totals Cash Flows from Operating Activities: Insurance premiums paid (510,516)$ -$ -$ -$ (510,516)$ Payments to suppliers (79,138) (240,174) (86,468) (405,780) Net Cash Provided (Used) by Operating Activities (510,516) (79,138) (240,174) (86,468) (916,296) Cash Flows from Non-Capital Financing Activities: Cash transfers out - - - (65,000) (65,000) Cash transfers in 460,360 160,650 1,276,023 100,000 1,997,033 Contributions - Net Cash Provided (Used) by Non-Capital Financing Activities 460,360 160,650 1,276,023 35,000 1,932,033 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets - - (43,308) (12,126) (55,434) Net Cash Provided (Used) by Capital and Related Financing Activities - - (43,308) (12,126) (55,434) Cash Flows from Investing Activities: Interest received 6,467 3,038 13,307 13,999 36,811 Net Cash Provided (Used) by Investing Activities 6,467 3,038 13,307 13,999 36,811 Net Increase (Decrease) in Cash and Cash Equivalents (43,689) 84,550 1,005,848 (49,595) 997,114 Cash and Cash Equivalents at Beginning of Year 997,953 235,057 1,071,001 1,166,603 3,470,614 Cash and Cash Equivalents at End of Year 954,264$ 319,607$ 2,076,849$ 1,117,008$ 4,467,728$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(510,516)$ (114,072)$ (489,139)$ (143,622)$ (1,257,349)$ Adjustments to Reconcile Operating Income (Loss) Net Cash Provided (Used) by Operating Activities: Depreciation - 36,275 187,558 4,592 228,425 Increase (decrease) in accounts payable - (1,341) 61,407 52,562 112,628 Total Adjustments - 34,934 248,965 57,154 341,053 Net Cash Provided (Used) by Operating Activities (510,516)$ (79,138)$ (240,174)$ (86,468)$ (916,296)$ Governmental Activities - Internal Service Funds Self Insurance Fund Equipment Replacement Fund Computer Equipment Replacement Fund Building Facility & Maintenance Fund 114 7.1.a Packet Pg. 236 DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2023 This part of the City of Diamond Bar's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health. Contents: Schedules Financial Trends - These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity - These schedules contain information to help the reader assess the city's most significant local revenue source, the property tax. Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 1 - 4 5 - 9 10 - 12 13 - 14 15 – 17 Capital Asset Statistics by Function 18 115 7.1.a Packet Pg. 237 THIS PAGE INTENTIONALLY LEFT BLANK 116 7.1.a Packet Pg. 238 Fiscal Year 2019 2020 2021 2022 2023 Governmental activities: Net investment in capital assets 350,017,830$ 345,260,286$ 339,727,186$ 332,972,933$ 331,607,485$ Restricted for: Capital projects 655,124 944,561 1,724,690 2,863,447 2,743,073 Community development 2,137,080 2,086,977 3,100,228 3,453,843 4,435,781 Public safety 286,848 346,066 346,594 347,228 366,818 Public works 10,721,764 11,874,243 13,772,296 19,187,254 21,761,109 Debt service 361 19 22,776 75 1,561 Other Post Employment Benefits(OPEB)- - - 353,283 0 Unrestricted 21,083,148 21,513,688 23,604,159 28,511,364 33,831,520 Total governmental activities net position 384,902,155$ 382,025,840$ 382,297,929$ 387,689,427$ 394,747,347$ Fiscal Year 2014 2015 2016 2017 2018 Governmental activities: Net investment in capital assets 372,068,596$ 368,779,901$ 363,216,277$ 358,765,476$ 354,824,312$ Restricted for: Capital projects 135,914 207,205 267,984 184,074 356,711 Community development 1,174,082 1,482,522 2,382,667 2,066,650 1,907,215 Public safety 140,747 171,928 193,941 243,642 235,752 Public works 4,015,113 3,862,123 4,465,023 3,095,734 3,268,495 Debt service 4 3 29 80 199 Other Post Employment Benefits(OPEB)- - - - - Unrestricted 20,894,700 20,659,058 22,742,992 23,047,078 21,270,741 Total governmental activities net position 398,429,156$ 395,162,740$ 393,268,913$ 387,402,734$ 381,863,425$ Source: City Finance Department City of Diamond Bar Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) 117 7.1.a Packet Pg. 239 2014 2015 2016 2017 2018 Expenses: Governmental Activities: General government 7,301,502$ 6,524,968$ 5,812,525$ 6,627,894$ 6,926,331$ Public safety 5,627,026 5,929,156 6,216,279 6,586,188 6,904,971 Public works 10,599,386 10,225,922 11,966,721 14,178,723 14,612,857 Community development 2,346,073 2,587,504 2,127,206 3,231,764 3,083,101 Parks and recreation 6,463,192 6,300,920 6,137,787 5,164,413 5,532,810 Interest on long-term debt 477,201 466,662 455,700 443,480 423,400 Contribution to OPEB Trust - - 84,761 84,761 84,591 Total Primary Government 32,814,380 32,035,132 32,800,979 36,317,223 37,568,061 Program Revenues: Governmental Activities: Charges for services General Government 770,908 587,081 661,910 811,846 619,147 Public safety 559,008 523,145 470,722 460,325 459,615 Public works 2,671,741 5,536,984 4,389,876 2,675,313 3,782,259 Community development 1,413,094 2,463,932 1,820,325 2,077,810 2,023,466 Parks, recreation and culture 1,804,189 1,758,319 1,684,814 1,544,002 1,648,945 Operating grants and contributions 4,203,990 4,443,765 3,687,015 3,844,192 4,120,526 Capital grants and contributions 207,971 717,961 1,455,770 359,669 159,258 Total Governmental Activities Program Revenues 11,630,901 16,031,187 14,170,432 11,773,157 12,813,216 General Revenues: Taxes Property taxes 4,307,077 4,448,566 4,665,140 4,951,033 5,187,630 Transient occupancy taxes 851,249 935,355 994,476 923,527 1,019,915 Sales taxes 3,658,327 3,974,564 4,598,858 4,789,172 4,999,873 Franchise taxes 1,393,584 1,460,342 1,431,513 1,320,617 1,419,605 Other taxes 471,455 442,914 523,015 394,961 509,322 Unrestricted Motor vehicle in lieu 4,862,100 5,133,910 5,411,143 5,757,423 6,011,177 Use of money and property 256,758 244,275 524,918 58,160 67,046 Other revenues 52,891 114,545 703,457 482,994 161,145 Loss on disposal of capital asset 1,328,681 - - - - Total General Revenues 17,182,122 16,754,471 18,852,520 18,677,887 19,375,713 Change in Net Position (4,001,357) 750,526 221,973 (5,866,179) (5,379,132) Net Position at Beginning of Year 402,430,513 398,429,156 395,162,740 393,268,913 387,402,734 Restatement of Net Position - (4,016,942) (2,115,800) - (160,177) Net Position at End of Year 398,429,156$ 395,162,740$ 393,268,913$ 387,402,734$ 381,863,425$ Source: City Finance Department City of Diamond Bar Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) 118 7.1.a Packet Pg. 240 2019 2020 2021 2022 2023 8,990,203$ 6,693,192$ 7,810,434$ 7,210,304$ 8,377,284$ 7,142,733 7,371,290 7,401,924 7,993,744 8,149,425 13,644,523 14,435,606 11,626,695 11,641,746 12,621,030 3,069,374 3,138,506 3,128,813 2,579,271 3,663,339 6,149,343 5,188,798 3,802,025 3,903,018 4,481,255 402,671 385,006 392,652 192,897 145,302 87,128 88,000 - - - 39,485,975 37,300,398 34,162,543 33,520,980 37,437,635 1,248,171 431,216 642,791 94,571 114,485 415,701 432,774 263,147 436,610 383,058 9,797,871 2,312,413 2,881,793 3,265,094 3,452,701 2,110,515 1,914,403 2,260,454 2,270,878 2,450,481 1,347,448 848,675 319,896 1,079,941 1,583,261 5,651,932 4,938,893 5,919,399 9,745,284 9,630,820 12,595 1,098,879 302,616 - 853,518 20,584,233 11,977,253 12,590,096 16,892,378 18,468,324 5,405,335 5,590,899 5,873,328 12,814,147 13,650,877 1,222,925 1,128,386 797,785 1,359,842 1,462,904 4,970,980 4,846,330 5,106,920 6,127,593 6,598,953 1,355,003 1,340,960 1,390,250 1,308,250 1,687,104 1,062,003 1,070,672 1,105,651 1,400,481 1,540,855 6,285,504 6,545,989 6,804,019 65,523 56,347 1,397,727 1,378,227 121,612 (895,646) 863,861 240,995 139,321 258,910 136,203 166,330 - - - - - 21,940,472 22,040,784 21,458,475 22,316,393 26,027,231 3,038,730 (3,282,361) (113,972) 5,687,791 7,057,920 381,863,425 384,902,155 382,025,840 382,297,929 387,689,427 - 406,046 386,061 (296,293) - 384,902,155$ 382,025,840$ 382,297,929$ 387,689,427$ 394,747,347$ 119 7.1.a Packet Pg. 241 General fund:2014 2015 2016 2017 2018 Nonspendable: Prepaid costs 62,752$ 75,887$ 75,866$ 42,108$ 8,230$ Committed to: Emergency contingencies 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 Assigned to: Community organization support - - - - - Other Post Employment Benefits (OPEB)- - - - - Technology Reserve - - - - - Capital improvement projects - - - - - Tres Hermanos Conservancy - - - - - General Plan Update - - - - - Law Enforcement Reserve - - - - - Unassigned Unassigned Reserve 15,199,698 17,656,659 19,350,943 20,379,854 19,440,147 Total general fund 19,762,450 22,232,546 23,926,809 24,921,962 23,948,377 All other governmental funds: Restricted for: Community development projects 1,174,082 1,482,522 2,382,667 2,066,650 1,907,215 Public safety 140,747 171,928 193,941 243,642 235,752 Highways and streets 4,015,113 3,862,123 3,541,041 3,095,514 3,268,495 Capital projects 135,914 207,205 267,984 184,074 356,711 Debt service 4 3 29 80 199 Assigned to: Technology Reserve - - - - - Unassigned (88,639) (71,561) 18,047 (290,141) (49,618) Total all other governmental funds 5,377,221 5,652,220 6,403,709 5,299,819 5,718,754 Total fund balances 25,139,671$ 27,884,766$ 30,330,518$ 30,221,781$ 29,667,131$ Note: The City implemented GASB 54, titled "Fund Balance Reporting and Governmental Fund Type Definitions" as of the fiscal year ended June 30, 2011. Source: City Finance Department City of Diamond Bar Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 120 7.1.a Packet Pg. 242 2019 2020 2021 2022 2023 26,203$ 4,496$ 2,275$ -$ -$ 4,500,000 6,000,627 6,797,181 7,864,770 7,981,243 - - - 2,062 - - - 353,283 291,182 - - - 442,418 591,346 - - - 1,308,920 - - - 20,726 6,910 - - - 518,504 - - - 929,558 941,362 18,583,174 18,687,761 20,950,249 20,615,949 22,959,067 23,109,377 24,692,884 27,749,705 30,226,704 34,600,596 2,137,080 2,086,977 3,100,228 3,453,843 4,435,803 286,848 346,066 346,594 347,228 366,818 10,721,764 11,874,243 13,772,296 19,187,254 21,761,109 655,124 944,561 1,724,690 2,863,447 2,743,073 361 19 22,776 75 1,561 - - - - - (557,242) (351,346) (144,722) (187,428) (725,794) 13,243,935 14,900,520 18,821,862 25,664,419 28,582,570 36,353,312$ 39,593,404$ 46,571,567$ 55,891,123$ 63,183,166$ 121 7.1.a Packet Pg. 243 2014 2015 2016 2017 2018 Revenues: Taxes 10,638,609$ 10,730,234$ 12,930,081$ 12,698,595$ 13,031,475$ Special assessments 549,402 672,492 781,232 769,014 788,971 Intergovernmental 10,281,985 11,185,489 10,384,417 11,668,517 11,753,427 Charges for services 3,321,883 3,344,356 3,101,103 2,899,321 2,972,508 Fines and forfeitures 582,844 523,145 470,722 460,325 459,615 Licenses and permits 1,542,765 5,474,765 4,121,387 2,355,980 3,128,048 Use of money and property 281,752 273,656 563,300 28,478 39,014 Other 85,558 136,786 716,914 561,288 189,350 Total revenues 27,284,798 32,340,923 33,069,156 31,441,518 32,362,408 Expenditures: Current: General government 5,115,321 5,040,491 5,177,288 5,560,482 5,956,082 Public safety 5,602,021 5,914,404 6,201,985 6,576,954 6,898,325 Public works 5,698,765 5,216,083 5,531,705 8,964,282 9,298,972 Parks, recreation and culture 4,406,954 4,225,938 4,232,431 2,723,558 2,893,702 Community development 2,225,647 2,540,430 2,313,053 2,985,973 2,874,443 Capital outlay 2,518,617 4,646,891 5,598,997 3,041,443 3,230,907 Debt service: Principal retirement 350,000 365,000 385,000 400,000 420,000 Interest and fiscal charges 492,159 481,656 470,741 459,191 439,191 Total expenditures 26,409,484 28,430,893 29,911,200 30,711,883 32,011,622 Excess (deficiency) of revenues over (under) expenditures 875,314 3,910,030 3,157,956 729,635 350,786 Other financing sources (uses): Bond issued or refinancing - - - - - Bonds discount or premium - - - - - Payment to refunded bond escrow - - - - - Transfers in 4,856,728 7,084,629 7,287,721 6,395,368 6,758,082 Transfers out (5,822,286) (8,249,564) (7,999,925) (6,831,304) (7,663,738) Proceeds from sale of capital asset 2,282,406 - - - - Total other financing sources (uses)1,316,848 (1,164,935) (712,204) (435,936) (905,656) Net changes in fund balances 2,192,162$ 2,745,095$ 2,445,752$ 293,699$ (554,870)$ Debt service as a percentage of noncapital expenditures 3.35%3.48%3.24%3.08%2.95% Source: City Finance Department City of Diamond Bar Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 122 7.1.a Packet Pg. 244 2019 2020 2021 2022 2023 13,233,033$ 13,200,479$ 13,498,926$ 15,160,087$ 16,445,551$ 783,213 776,768 775,008 943,000 1,262,383 14,013,870 14,110,518 16,273,538 18,736,104 21,094,276 2,540,344 1,864,015 914,766 1,740,824 2,297,541 415,701 432,774 263,147 436,610 383,058 9,337,213 2,246,294 2,259,287 2,177,224 2,407,329 1,361,323 1,326,838 96,495 (867,840) 827,050 278,317 201,503 262,929 176,874 202,085 41,963,014 34,159,189 34,344,096 38,502,883 44,919,273 8,078,152 5,607,821 6,383,456 6,744,954 7,022,442 7,136,362 7,371,290 7,401,924 7,993,744 8,149,425 8,653,425 8,860,331 6,430,811 6,716,430 7,403,724 3,075,935 2,699,950 1,178,756 1,745,665 1,967,229 2,900,120 2,871,762 2,919,045 2,728,649 3,522,887 2,709,445 2,604,402 1,398,225 447,896 6,910,290 440,000 460,000 485,000 455,000 465,000 418,191 400,591 543,673 280,413 254,200 33,411,630 30,876,147 26,740,890 27,112,751 35,695,197 8,551,384 3,283,042 7,603,206 11,390,132 9,224,076 - - 8,024,092 - - - - - - - - (7,839,852) - - 5,962,151 7,173,287 3,777,515 3,350,683 8,497,451 (7,827,354) (7,622,283) (4,586,798) (5,124,966) (10,429,484) - - - - - (1,865,203) (448,996) (625,043) (1,774,283) (1,932,033) 6,686,181$ 2,834,046$ 6,978,163$ 9,615,849$ 7,292,043$ 2.81%3.03%4.09%2.76%2.49% 123 7.1.a Packet Pg. 245 City of Diamond Bar Source: Los Angeles County Assessor Annual Tax Increment Tables. 124 7.1.a Packet Pg. 246 Fiscal Year Less Total Taxable Total Ended Secured Unsecured Other Tax Assessed Direct June 30,Property Property Property Exemptions Value Tax Rate % Change 2013-14 7,765,883,788 69,544,511 - 83,574,453 7,751,853,846 0.0526 3.78% 2014-15 8,201,610,010 70,524,426 - 83,189,280 8,188,945,156 0.0526 5.64% 2015-16 8,649,508,385 72,343,401 - 85,103,082 8,636,748,704 0.0526 5.47% 2016-17 9,175,049,277 74,892,798 - 62,484,967 9,187,457,108 0.0525 6.38% 2017-18 9,589,040,619 76,356,565 - 78,363,662 9,587,033,522 0.0525 4.35% 2018-19 10,037,428,342 83,787,675 - 90,713,106 10,030,502,911 0.0525 4.63% 2019-20 10,435,977,033 76,572,055 - 93,257,612 10,419,291,476 0.0525 3.88% 2020-21 10,834,109,675 94,903,135 - 90,417,003 10,838,595,807 0.0524 4.02% 2021-22 11,071,176,004 93,096,143 1,199,912 93,033,033 11,071,239,114 0.0524 2.15% 2022-23 11,582,901,902 97,490,346 - 87,372,428 11,593,019,820 0.0524 4.71% Note: Exempt values are not included in Total Net Taxable Values. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. Source: HDL Coren & Cone and Los Angeles County Assessor's Combined Tax Rolls. Real Property 2013/14 - 2022/23 Taxable Property Values (unaudited) City of Diamond Bar Assessed and Estimated Actual Values of Taxable Property 0 2,000,000,000 4,000,000,000 6,000,000,000 8,000,000,000 10,000,000,000 12,000,000,000 14,000,000,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23Millions Fiscal Year Net Assessed Value 125 7.1.a Packet Pg. 247 Agency 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Basic Levy*1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Metropolitan Water District 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 0.004 Mt. San Antonio College 0.020 0.021 0.022 0.024 0.024 0.024 0.048 0.045 0.046 0.043 Pomona Unified School Dist 0.164 0.166 0.154 0.144 0.173 0.169 0.207 0.151 0.141 0.146 Walnut Valley Unified School Dist 0.113 0.115 0.093 0.066 0.074 0.106 0.095 0.099 0.101 0.101 Total Direct & Overlapping Tax Rates 1.301 1.306 1.272 1.237 1.274 1.303 1.354 1.298 1.291 1.293 City's Share of 1% Levy Per Prop 13*0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 0.0519 General Obligation Debt Rate Redevelopment Rate* Total Direct Rate*0.0526 0.0526 0.0526 0.0525 0.0525 0.0525 0.0524 0.0524 0.0524 0.0524 In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds for the Pomona Unified School District or Walnut Valley Unified School Districts in Diamond Bar depending on which school district the property is located in. Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. RDA rate is based on the largest RDA tax rate area(TRA) and includes only rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. City of Diamond Bar Direct and Overlapping Property Tax Rates (Rate per $100 of Assessed Value) 126 7.1.a Packet Pg. 248 Sec & Unsecured Percentage of Total 2022-23 Assessed Valuation Net Assessed Valuation Apex 2015 LLC 74,813,605$ 0.65% Roic Diamond Hills Plaza LLC 56,831,284 0.49% BSP Senita Gateway Center LLC 49,082,830 0.42% Emerald Pointe Apartments LLC 43,041,418 0.37% Hua Qing Enterprise LLC 38,488,145 0.33% Bridgegate Drive Properties LLC 33,184,654 0.29% Diamond Springs LLC 32,058,551 0.28% ROIC DBTC LLC Lessor 31,795,000 0.27% Target Corporation 31,029,619 0.27% Muller Rock 2 Gateway 30,328,629 0.26% Top Ten Total 420,653,735$ 3.63% City Total 11,593,019,820$ Percentage of Total 2013-14 Assessed Valuation Net Assessed Valuation DB Gateway Corporate Inc 40,000,000$ 0.52% SRGMF South Grand Diamond Bar 39,653,361 0.51% ROIC California LLC 31,856,200 0.41% Pacifica Trenton Holdings-2 LLC 30,100,000 0.39% Target Corporation 26,650,578 0.34% Muller Rock 2 Gateway 26,136,302 0.34% Hua Qing Enterprise LLC 22,392,214 0.29% Margaret M. Tam Trust 18,021,782 0.23% Emerald Pointe Apartments LLC 17,526,129 0.23% ROIC DBTC LLC 17,059,484 0.22% Top Ten Total 269,396,050$ 3.48% City Total 7,751,853,846$ Source: Hdl Coren & Cone. City of Diamond Bar Top 10 Property Taxpayers Current Year and Nine Years Ago 127 7.1.a Packet Pg. 249 Fiscal Year Taxes Levied Ended for the June 30 Fiscal Year Amount % to Levy Years % to Levy 2014 4,075,791 3,960,684 97.18%115,107 2.82% 2015 4,326,040 4,189,390 96.84%136,650 3.16% 2016 4,568,789 4,412,561 96.58%156,228 3.42% 2017 4,842,897 4,643,891 95.89%199,007 4.11% 2018 5,081,117 4,838,019 95.22%243,098 4.78% 2019 5,313,057 5,131,554 96.58%181,503 3.42% 2020 5,540,291 5,267,524 95.08%272,767 4.92% 2021 5,681,444 5,847,155 102.92%- 0.00% 2022 5,871,398 5,881,098 100.17%224,683 3.83% 2023 6,121,244 6,194,513 101.20%- 0.00% Source: Los Angeles County Auditor/Controller. City Finance Department Fiscal Year of Levy City of Diamond Bar Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Collected within the Collections in Subsequent 128 7.1.a Packet Pg. 250 Fiscal Year Lease Unamortized Total Total % of Debt Ended Revenue Bond Premium Governmental Primary Personal Per June 30 Bonds (a)(Discount)Activities Government Income (b)Capita (b) 2014 10,785,000 215,601 11,000,601 11,000,601 0.55%195 2015 10,420,000 201,475 10,621,475 10,621,475 0.55%188 2016 10,035,000 187,349 10,222,349 10,222,349 0.53%179 2017 9,635,000 173,223 9,808,223 9,808,223 0.50%172 2018 9,215,000 159,097 9,374,097 9,374,097 0.48%163 2019 8,775,000 144,971 8,919,971 8,919,971 0.43%155 2020 8,315,000 130,845 8,445,845 8,445,845 0.40%148 2021 6,735,000 1,289,092 *8,024,092 8,024,092 0.38%140 2022 6,280,000 1,181,668 7,461,668 7,461,668 0.33%138 2023 5,815,000 1,074,244 6,889,244 6,889,244 0.29%129 Note: See Financial Statement Note 5: Long-Term Liabilities for an explantion regarding the above amounts. (b) Details regarding the City's population and personal income can be found in the Demographic and Economic Statistics Table. * The increase in Unamortized Bond Premium is due to the refinancing of the City's lease revenue bonds. Source: City Finance Department (a) Details regarding the City's outstanding lease revenue bonds can be found in the notes to the financial statements. Governmental Activities City of Diamond Bar Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) 129 7.1.a Packet Pg. 251 Total Debt % Applicable To City (1) City's Share of Debt Direct Debt Diamond Bar Lease Revenue Bonds, 2021 Series A 5,815,000$ 100.000 5,815,000$ Overlapping Debts (2) Metropolitan Water District 19,215,000 0.319 61,296 Mt San Antonio Community College District 882,482,780 10.459 92,298,874 Pomona Unified School District 459,351,706 18.214 83,666,320 Walnut Valley Unified School District 226,976,115 59.091 134,122,456 Total Overlapping Tax and Assessment Debts 1,588,025,601$ 310,148,946$ Direct and Overlapping General Fund Debt Los Angeles County General Fund Obligations 2,601,551,282 0.612 15,921,494 Los Angeles County Superintendent of Schools Certificates of Participation 3,403,487 0.612 20,829 Los Angeles County Sanitation District No.21 Authority 468,639 17.433 81,698 Mt.San Antonio Community College District Certificates of Participation 254,500,000 10.459 26,618,155 Pomona Unified School District General Fund Obligations 6,115,000 18.214 1,113,786 City's General Fund Obligations (Lease Revenue Bonds, 2021 Series A)5,815,000 100.000 5,815,000 Total Direct and Overlapping General Fund Debt 2,871,853,408$ 49,570,962$ Total Overlapping Debt 353,904,908$ Grand Total Direct and Overlapping Debt:4,459,879,009$ 359,719,908$ Debt to Assessed Valuation Ratios: 2022/23 Net Assessed Valuation: $ 11,593,019,820 Direct Debt 0.05%$109 2022 City Population: 53,381 Overlapping Debt 2.68%$5,810 Total Debt 3.10%$5,919 Note: (1)Percentage of direct and overlapping agency's assessed valuation located within boundaries of the city. (2)The overlapping debt is the portion of a larger agency, and is responsible for debt in areas outside the city. Source: Hdl Coren & Cone U.S. Census Bureau City Finance Department City of Diamond Bar Direct and Overlapping Debt June 30, 2023 (unaudited) 130 7.1.a Packet Pg. 252 Fiscal Year 2023 2022 2021 2020 2019 Net assessed value 11,680,392,248$ 11,165,472,059$ 10,929,012,810$ 10,419,291,476$ 10,030,502,911$ Add back: Exemptions 87,372,428 94,232,945 90,417,003 93,257,612 90,713,106 Gross assessed value 11,767,764,676 11,259,705,004 11,019,429,813 10,512,549,088 10,121,216,017 Conversion percentage 25%25%25%25%25% Adjusted assessed valuation 2,941,941,169 2,814,926,251 2,754,857,453 2,628,137,272 2,530,304,004 Debt limit percentage 15%15%15%15%15% Debt limit 441,291,175 422,238,938 413,228,618 394,220,591 379,545,601 City Debts: Revenue bonds 5,815,000 6,280,000 8,315,000 8,315,000 8,775,000 Unamortized Bond Premium 1,074,244 1,181,668 130,845 130,845 144,971 Legal debt margin 434,401,931$ 414,777,270$ 404,782,773$ 385,774,746$ 370,625,630$ Fiscal Year 2018 2017 2016 2015 2014 Net assessed value 9,587,033,522$ 9,187,457,108$ 8,636,748,704$ 8,188,945,156$ 7,751,853,846$ Add back: Exemptions 78,363,662 62,484,967 85,146,082 83,189,280 83,574,453 Gross assessed value 9,665,397,184 9,249,942,075 8,721,894,786 8,272,134,436 7,835,428,299 Conversion percentage 25%25%25%25%25% Adjusted assessed valuation 2,416,349,296 2,312,485,519 2,180,473,697 2,068,033,609 1,958,857,075 Debt limit percentage 15%15%15%15%15% Debt limit 362,452,394 346,872,828 327,071,054 310,205,041 293,828,561 City Debts: Revenue bonds 9,215,000 9,635,000 10,035,000 10,420,000 10,785,000 Unamortized Bond Premium 159,097 173,223 187,349 201,475 215,601 Legal debt margin 353,078,297$ 337,064,605$ 316,848,705$ 299,583,566$ 282,827,960$ The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local govern- ment located within the state. Source: Section 43605 of the California Government Code Hdl Coren & Cone City Finance Department City of Diamond Bar Computation of Legal Debt Margin Last Ten Fiscal Years (unaudited) 131 7.1.a Packet Pg. 253 General Information Date of Incorporation April 18, 1989 Form of Government Council-Manager Area 14.88 Square Miles Miles of Streets 132.3 Public Safety Police Protection Los Angeles County Sheriff Department Fire Protection Los Angeles County Fire Department Education School District Pomona Unified School District Schools 1 High School, 1 Middle School, & 4 Elementary Schools School District Walnut Valley Unified School District Schools 1 High School, 2 Middle Schools, & 4 Elementary Schools Population Distribution by Race (2020 US Census)Total Percent Asian 32,540.48 58.40% White 9,472.40 17.00% Hispanic or Latino 10,363.92 18.60% African American 2,005.92 3.60% Others 1,337.28 2.40% Single Family Residential Full Value Sales (01/01/2014-06/30/2023) * Year Full Value Sales Average Price Median Price Median % Change 2014 701 660,281 535,000 7.00% 2015 726 626,515 551,000 2.99% 2016 837 628,252 570,000 4.22% 2017 745 645,253 589,500 3.42% 2018 647 704,743 657,500 11.93% 2019 663 701,439 635,000 -3.42% 2020 250 (Jan-Jun 2020)656,486 629,000 -0.94% 2021 391 788,473 755,000 11.85% 2022 490 1,000,753 881,250 10.16% 2023 247 991,944 879,000 2.21% * "Single Family Residential" includes both stand-alone homes and townhouses and condos with a common wall. Notes and Data Los Angeles County Recorder HdL Coren & Cone US Bureau of the Census. The official population census of the United States is conducted every ten years. Median Household Income were obtained from U.S. Census Bureau, 2017 American Community Survey 1-Year Estimates. City of Diamond Bar Demographic and Economic Statistics (unaudited) - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 535,000 551,000 570,000 589,500 657,500 635,000 629,000 755,000 881,250 879,000 Median Price Median Price 132 7.1.a Packet Pg. 254 Personal Income Median HouseholdUnemploym Median Population (In Thousands)Income Rate Age 2013 56,400 1,984,772 35,191 84,180 5.4%41.3 92.4%49.7% 2014 56,426 1,919,782 34,023 84,705 5.3%40.9 92.0%48.4% 2015 57,081 1,943,144 34,041 85,505 4.3%41.1 91.5%47.9% 2016 57,066 1,978,657 34,673 89,409 3.3%42.0 92.1%50.9% 2017 57,460 1,953,402 33,995 94,630 3.8%42.2 92.4%50.7% 2018 57,495 2,061,233 35,850 98,660 3.7%42.6 92.8%52.1% 2019 57,177 2,127,028 37,200 101,862 3.6%41.8 93.8%53.2% 2020 56,717 2,228,525 39,292 118,892 10.6%42.6 94.2%54.9% 2021 54,204 2,265,532 41,796 107,322 7.0%42.9 93.6%54.0% 2022 53,381 2,344,903 43,927 113,824 3.8%43.7 93.2%53.8% City of Diamond Bar Demographic and Econimic Statistics (unaudited) Calendar Per Capita % of Pop 25+ with High School Degree % of Pop 25+ with Bachelor's Degree Year Personal Notes and Data Sources: Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 Income, Age, and Education Data: ESRI -Demographic Estimates are based on the last available Census.Projections are developed by incorporating all of the prior census data released to date. Demographic Data is totaled from Census Block Groups that overlap the City's boundaries 2010 and later - Income, Age and Education Data -US Census Bureau, most recent American Community Survey. Estimated Median Household Income - Nielsen Company. 133 7.1.a Packet Pg. 255 2022 2021 2020 2019 2018 Apparel Stores 8,346$ 8,419$ 5,713$ 8,224$ 7,855$ Food Stores 21,238 20,748 22,248 19,157 18,551 Eating and Drinking Places 81,782 71,119 49,416 65,901 63,944 Building Materials - - 1,476 1,602 2,847 Auto Dealers and Supplies 7,938 7,527 5,500 7,424 6,621 Service Stations 137,921 100,929 60,554 101,622 104,147 Other Retail Stores 66,177 54,485 50,744 62,534 64,496 All Other Outlets 325,206 301,627 270,896 269,187 251,795 Total 648,608$ 564,854$ 466,547$ 535,651$ 520,256$ State Board of Equalization, California Department of Taxes and Fees Administration, State Controllers Office, and The HdL Companies. Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Notes and Data Sources: City of Diamond Bar Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) 134 7.1.a Packet Pg. 256 2017 2016 2015 2014 2013 2,008$ 2,347$ 2,104$ 1,925$ 1,602$ 17,394 15,591 12,478 11,004 10,474 64,421 59,696 56,895 54,397 52,948 2,929 2,434 2,115 1,619 1,919 6,638 7,488 7,649 7,607 7,150 96,579 91,952 104,369 112,494 120,373 62,549 62,465 61,002 68,019 69,109 256,509 252,700 208,389 98,327 95,571 509,027$ 494,672$ 455,002$ 355,393$ 359,146$ Notes and Data Sources: 135 7.1.a Packet Pg. 257 Function 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General government 27 26 22 29 27 27 27 25 25 24 24 Part-time*1 1 1.01 Community development 11 8 8 9 9 8 9 9 8 8 8 Part-time*0 1 0.25 0 0 0 0 0 Public works 14 13 15 18 14 17 17 10 9 8 8 Part-time*1 3 1.15 Community services 0 0 0 0 0 0 0 14 15 14 14 Part-time*0 0 0 0 0 0 0 56 58 60 60 Parks & recreation 11 11 11 10 11 9 9 0 0 0 0 Part-time & Seasonal*53 50 24.68 52 51 65 50 0 0 0 0 Total 118 113 83.09 118 112 126 112 114 115 114 114 Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. A full-time employee is scheduled to work 2,080 hours per year (including vacation and sick leave). Beginning In FY2017, part of the former Community Services Department, road maintenance and landscape maintenance, has been centralized in Public Works. * Part-time/Seasonal staff reported as Full-time Equivalent beginning FY 2020-21 Source: City Finance Department Fiscal Year Ended June 30,2023 City of Diamond Bar Full-time and Part-time City Government Employees by Function/Program 136 7.1.a Packet Pg. 258 2023 2022 2021 2020 2019 Police:(in fiscal year) (1) Physical arrests 462 457 483 564 653 Street Sweeping Parking Citation 3,668 5,726 2,846 4,450 5,256 Fire: (in fiscal year) (2) Number of incident calls 3,576 3,566 3,237 3,014 3,207 Inspections 1,433 226 988 941 1,151 Public works: (in fiscal year) (3) Street resurfacing (miles)19.6 19.7 1.1 16.5 12.3 Parks and recreation:(in fiscal year)(4) Number of recreation classes(5)838 668 450 1,547 2,461 Number of facility rentals 6,217 3,900 1,219 2,766 4,610 2018 2017 2016 2015 2014 Police: (1) Physical arrests 493 636 702 522 494 Street Sweeping Parking Citation 5,367 5,289 5,682 5,887 5,774 Fire: (2) Number of emergency calls 3,362 3,331 3,180 2,820 2,760 Inspections 1,403 1,336 1,667 1,413 1,434 Public works: (3) Street resurfacing (miles)17.2 14.4 19.3 17.0 12.5 Parks and recreation:(4) Number of recreation classes 2,461 2,338 2,546 2,591 2,623 Number of facility rentals 4,610 4,316 4,804 4,491 4,178 Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Dep East Regional Operation Bureau (3) City Public Works Department (4) City Community Services Department (5) Includes online classes Note: Indicators are not available for the general government function. Function Fiscal Year Ended June 30,2023 City of Diamond Bar Operating Indicators by Function Last Ten Fiscal Years Function Fiscal Year Ended June 30, 137 7.1.a Packet Pg. 259 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Public safety (1) Police: Station 1 1 1 1 1 1 1 1 1 1 Patrol units (all shifts combined)17 18 18 18 18 18 18 18 18 18 Fire stations (2)3 3 3 3 3 3 3 3 3 3 Highways and streets (3) Streets (miles)132.3 132.3 132.3 132.3 132.3 132.3 130.9 130.9 129.4 129.4 Streetlights 314 314 314 314 314 307 307 294 294 294 Traffic signals 76 76 76 76 76 76 76 74 74 74 Culture and recreation (4) Parks Acreage 79.4 79.4 79.4 79.4 79.4 79.4 72.6 67.9 67.9 67.9 Hiking Trails 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.0 4.0 3.2 Parks 17 17 17 17 17 17 16 15 15 15 Public Tennis courts 7 7 8 8 8 8 8 8 8 8 Community centers 3 3 3 3 3 3 3 3 3 3 Golf Course (5) County golf course 1 1 1 1 1 1 1 1 1 1 Sewer (3) Sanitary sewers (miles)161.53 161.53 161.38 161.38 161.38 161.38 161.38 161.21 161.21 161.21 Sources: (1) Police Walnut/Diamond Bar Station (2) LA County Fire Department, Division VIII Office (3) City Public Works Department (4) City Community Services Department (5)LA County Golf Course Note: The City is a contract city and as such contracts for many of its services. This includes police services, fire services, building and safety services, engineering, road maintenance and landscape maintenance. No capital asset indicators are available for the general government function. Function Fiscal Year Ended June 30, 2023 City of Diamond Bar Capital Asset Statistics by Function Last Ten Fiscal Years 138 7.1.a Packet Pg. 260 7.1.a Packet Pg. 261 City Council Policy and Procedure Number: 2019-01 Reviewed: Annually/As-Needed Effective Date: 8/20/2019 Revised Date(s): City Council Policy 2019-01 Effective Date: 08/20/2019 Page 1 of 4 Fund Balance and Reserves Policy 1. Purpose 1.1 The purpose of this policy is to establish prudent reserve policies to ensure the long-term fiscal health and stability of the City. The practice and discipline to maintain adequate reserve funds is necessary to ensure that adequate funding is available for planned and unplanned replacements of capital assets and equipment, infrastructure repairs and replacements, long-term obligations, as well as, economic uncertainties, local emergencies and natural disasters. 2. Definitions 2.1 A fund’s equity – commonly referred to as “fund balance” – is generally the difference between its assets and its liabilities. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Government Fund Type Definitions, fund balance will be displayed in the following classifications depicting the relative strength of the spending constraints placed on the purposes for which resources can be used: 2.1.1 Non-spendable Fund Balance – The portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in a spendable form, such as prepaid items, inventories of supplies, or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment. 2.1.2 Restricted Fund Balance – The portion of fund balance that can be used only for those purposes that are specified by their providers, such as granters, bondholders, or higher levels of government. It is important to note that these resources are constrained by external parties. 2.1.3 Committed Fund Balance – The portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority, and remains binding unless removed in the same manner. 2.1.4 Assigned Fund Balance – The portion of a fund balance that includes amounts that are constrained by the government’s intent to 7.1.b Packet Pg. 262 City Council Policy 2019-01 Effective Date: 08/20/2019 Page 2 of 4 be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision-making, or by an official designated for that purpose. 2.1.5 Unassigned Fund Balance – The portion of a fund balance that includes amounts that do not fall into one of the above aforementioned categories. The General Fund is the only fund that should report this category of fund balance. 3. Policy 3.1 The fund balance policies are relevant to the unrestricted fund balances, which include committed, assigned, and unassigned fund balances. Since there are practical and/or legal limitations on the use of non-spendable or restricted fund balances, they are not subject to the fund balance policies. 3.2 This policy shall be reviewed and approved annually, with any revisions, by the City Council during the review and adoption of the annual City Budget and Capital Improvement Program. 3.3 The City Council may assign fund balance to a specific purpose in relation to this fund balance policy. By resolution, the Council has also authorized the City Manager and/or the Finance Director to assign fund balance. Assignments of fund balance by the City Manager and/or the Finance Director do not require formal action by the City Council; however, each assignment must be approved by either of the authorized officials before the item can be presented in the financial statements. 3.4 When multiple categories of fund balance are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the City Council, and unassigned fund balance), the City will start with the most restricted category – spending those funds first – before moving down to the next category with available funds. 3.5 All uses of reserve funds shall be approved by the City Council. 3.6 The City Council may designate portions of the Unassigned General Fund balance for future capital projects, continuing or carry-over appropriations from prior fiscal years, or any other municipal purpose that the City Council deems prudent or necessary. Best practices dictate that fund balance reserves should not be used for ongoing operating expenditures; however, the City Council’s retains discretion as to when to utilize the reserves in this manner. 7.1.b Packet Pg. 263 City Council Policy 2019-01 Effective Date: 08/20/2019 Page 3 of 4 3.7 Reserve levels shall be adjusted in accordance with this Policy annually at the end of each fiscal year in conjunction with the preparation of the City’s annual budget. 3.8 All classifications of General Fund balance will appear in the annual Comprehensive Annual Financial Report (CAFR). 4. Reserve Fund Annual Contributions 4.1 Contingency Reserve Fund - To adequately provide for economic uncertainties, local emergencies or disasters, and other financial hardships or downturns in the local or national economy, including contingencies for unforeseen operating or capital needs and cash flow requirements, the City will maintain a Contingency Reserve Fund equal to no less than 25% of the General Fund expenditures, including operating transfers, in the adopted annual budget. The Contingency Reserve Fund reserve balance is classified as a committed fund balance. 4.2 Other Post Employment Benefit (OPEB) Reserve Fund/Trust Fund – The City will maintain the Other Post Employment Benefit (OPEB) Reserve Fund and/or OPEB Trust Fund to cover the projected costs of future retiree benefits. The combined amount of the Reserve Fund and the Trust Fund shall equal no less than 80% of the total OPEB Liability based on the most recent independent actuarial valuation. The Other Post Employment Benefit (OPEB) Reserve Fund reserve balance is classified as assigned fund balance. The Other Post Employment Benefit (OPEB) Trust Fund is classified as restricted fund balance. 4.3 Building Facility and Maintenance Fund – The City will maintain a Building Facility and Maintenance Fund to provide for the future replacement of improvements, systems and equipment at City Hall, Diamond Bar Center and other City buildings and facilities. The annual contribution to this fund shall be no less than $100,000. The Building Facility and Maintenance Fund reserve balance is classified as assigned fund balance. 4.4 Vehicle Maintenance and Replacement Fund - The City will maintain a Vehicle Maintenance and Replacement Fund to provide funding for the timely replacement of vehicles and related equipment with an individual replacement cost of $10,000 or more. The annual contribution to this fund will generally be based on the estimated operating expenses plus depreciation. Any interest earnings, sale proceeds of surplus equipment and related damage and insurance recoveries will be credited to this Fund. The Vehicle Maintenance and Replacement Fund reserve balance is classified as assigned fund balance. 4.5 Technology Reserve Fund - The City will maintain a Technology Reserve Fund to provide for the future replacement of essential technology systems, 7.1.b Packet Pg. 264 City Council Policy 2019-01 Effective Date: 08/20/2019 Page 4 of 4 including network, security, communication, computer hardware and software platforms, e-government and other technology solutions that are utilized as part of City operations. The annual contribution to this fund shall be no less than $100,000. The Technology Reserve Fund reserve balance is classified as assigned fund balance. 5. Allocation of Available Fund Balance to Reserve Funds 5.1 It is a long-term goal of the City to build unrestricted reserve funds to provide flexibility, respond to emergencies, fund new projects and maintain necessary reserves for the eventual replacement of City capital facilities, equipment, and assets at the end of their design life. After the minimum funding levels and annual contributions to the Funds identified in Section 4 above are satisfied, any remaining fund balance available at the end of the fiscal year shall be apportioned to the following funds: 5.1.1 Park and Facility Development Fund – The Park and Facility Development Fund provides for the development and enhancements of the City’s parks and facilities. The Park and Facility Development Fund reserve balance is classified as assigned fund balance. Allocation: 40% 5.1.2 Building Facility and Maintenance Fund – The Building Facility & Maintenance Fund provides for the future replacement of improvements, systems and equipment at City Hall, Diamond Bar Center and other City buildings and facilities. The Building Facility and Maintenance Fund reserve balance is classified as assigned fund balance. Allocation: 40%. 5.1.3 Unrestricted General Fund Balance – Allocation: 20% 6. Further Information 6.1 For further information or questions related to this policy, contact the Finance Director. 7. References 7.1 Resolution 2019-36 7.2 Resolution 2011-26 7.1.b Packet Pg. 265 Agenda #: 7.2 Meeting Date: January 16, 2024 TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager TITLE: RESULTS OF WASTE HAULER PROCUREMENT. STRATEGIC GOAL: Safe, Sustainable & Healthy Community RECOMMENDATION: Receive presentation, deliberate and provide direction to staff. FINANCIAL IMPACT: None. BACKGROUND: Since 2000, Valley Vista Services (VVS) and Waste Management (WM) have been the City's exclusive commercial and residential solid waste haulers under three separately negotiated franchise agreements. In August 2010, the City Council granted second franchise agreements to VVS and WM. These agreements were amended and restated in 2017 and extended in 2023. Both are now set to expire August 31, 2025. At the City Council Study Session of April 5, 2022, staff presented information regarding the status of the solid waste franchise agreements for review and discussion. The City Council directed staff to commence an exclusive procurement process with the current waste haulers in which both could submit a proposed scope of work for the service areas by sector or for citywide service, with the City reserving the right to select any combination. On June 21, 2022, the City Council awarded a contract to Sloan Va zquez McAfee, a consulting firm with extensive experience in the procurement and management of municipal solid waste collection franchises to assist with the procurement process. The City’s project team (staff, City Attorney Omar Sandoval and Enrique Va zquez of Sloan Vazquez McAfee) developed a Request for Proposals (RFP) (Attachment A) with a focus on a transparent and ethical procurement process, high performance/quality 7.2 Packet Pg. 266 and reliable service, value for ratepayers, compliance with state regulatory requirements (including SB 1383 organics requirements), and effective outreach and engagement with customers over the proposed ten-year (plus a two-year extension option) agreement term. Specific service requirements across sectors include, but are not limited to: • State diversion compliance • Standard cart, bin, and roll-off service • Organics collection • Backyard service • Temporary bins • On-call bulky item and abandoned item collection • Household Hazardous Waste (HHW), e-waste, sharps, used oil, and holiday tree collection • Construction and demolition collection and disposal • Complimentary City service • Robust community education and outreach programming • Deployment of clean fuel vehicles The RFP was released to VVS and WM on May 3, 2023. Three addenda to the RFP were provided and a total of 54 questions related to the RFP terms were submitted by the respondents. Both VVS and WM submitted complete proposals for commercial only, residential only, and citywide services by the August 30, 2023 response deadline. Because the format of the RFP allowed separate proposals for each sector, there are four outcomes that can be analyzed and considered: • Option 1 – WM (Residential) and VVS (Commercial). • Option 2 - VVS (Residential) and WM (Commercial). • Option 3 – VVS citywide. • Option 4 – WM citywide. CONSULTANT EVALUATION To evaluate these options, Sloan Vazquez McAfee reviewed and rated each proposal on criteria including responsiveness to RFP, qualifications and experience, technical qualifications, financial resources, rate proposals, and exceptions to Draft Agreement, all compiled in the City of Diamond Bar Request for Proposals – Solid Waste Services Final Report (Attachment 2). Weighted scores were assigned to each, with the sum establishing the overall rankings. As shown in Table 1 below, the consultant’s evaluation rated Option 4 (Waste Management citywide) first, Option 2 (VVS residential and WM commercial) second, Option 3 (Valley Vista citywide) third, and Option 4 (Waste Management residential and Valley Vista commercial) fourth. Table 1 – Evaluation Scores by Option Criteria Available Pts. Option 1 (WM/VVS) Option 2 (VVS/WM) Option 3 (VVS) Option 4 (WM) Responsiveness to RFP N/A Pass Pass Pass Pass 7.2 Packet Pg. 267 Qualifications/Experience 50 49 49 50 48 Technical Qualifications 300 299 300 300 299 Financial Resources 100 90 90 80 100 Rate Proposal 500 440 460 453 460 Exceptions to Agreement 50 48 48 50 45 Total 1,000 926 947 933 952 Ranking N/A 4 2 3 1 Within these categories, the evaluation examined specific requirements, including, but not limited to these examples: • Demonstrated collection experience and satisfaction of references. • Customer service standards and quality of service. • Qualification and number of key personnel assigned to the Diamond Bar contract. • Ability to meet implementation schedule and deadlines. • Ability to meet state mandates. • Quality and nature of public outreach and education programs for diversion. • Ability to provide required operations, disposal, transfer, and processing facilities. • The number of exceptions/suggested changes to the City’s draft agreement. • The overall financial sustainability of the proposer. • Competitiveness and reasonableness of rate proposals. While there are subtle differences between the proposals, the results of the evaluation indicate that both respondents are qualified, with proposals found to be compliant with the scope of required services for all sectors contained in the released RFP. Based on the analysis, both respondents can be expected to deliver quality service while meeting state mandates, including SB 1383 organics recycling requirements. TOTAL RATE REVENUE The most apparent differences between options is related to rates and total revenue generated annually. The impact of each option is best captured by comparing Total Rate Revenue, a metric that captures the total expected revenue across sectors. Tables 2, 3, and 4 provide a detailed comparison of the Total Rate Revenue by option for total revenue collected, differences in proposed revenue when compared to expected current revenues, and percentage change when the proposals are compared to current revenues. Table 2 - Total Rate Revenue by Option Sector Current 7/2024* Option 1 (WM/VVS) Option 2 (VVS/WM) Option 3 (VVS) Option 4 (WM) Residential $7,146,552* $6,647,976 $6,377,976 $6,377,976 $5,508,648 Commercial $2,508,763* $3,628,889 $2,328,150 $3,628,889 $2,901,767 Total $9,655,315* $10,276,865 $8,706,126 $10,006,865 $8,410,415 NOTE: * represents current rates adjusted for inflation as of July 1, 2024. Table 3 – Total Change in Rate Revenue by Option 7.2 Packet Pg. 268 Sector Option 1 (WM/VVS) Option 2 (VVS/WM) Option 3 (VVS) Option 4 (WM) Residential ($498,576) ($768,576) ($768,576) ($1,637,904) Commercial $1,120,127 ($180,613) $1,120,127 $393,004 Total Change $621,551 ($949,189) $351,551 ($1,244,900) Table 4 – Total Percentage Change in Rate Revenue by Option Sector Option 1 (WM/VVS) Option 2 (VVS/WM) Option 3 (VVS) Option 4 (WM) Residential -7.0% -10.8% -10.8% -22.9% Commercial 44.6% -7.2% 44.6% 15.7% Total % Change 6.4% -9.8% 3.6% -12.9% In summary, Options 2 and 4 reduce rate revenue collected while Options 1 and 3 result in a net increase in rate revenue collected. Option 2 offers reduced rate revenue in both the residential (-10.8%) and commercial sectors (-7.2%), while Option 4 offers a more significant reduction in residential rate revenues (-22.9%) but increases rate revenues in the commercial sector (15.7%). In aggregate, Option 2 reduces total rate revenues by 9.8%, while Option 4 reduces rate total rate revenues by 12.9%. RESIDENTIAL RATE COMPARISON There are currently 13,092 single-family residential units and 16 multi-family accounts with a total 2,489 individual housing units that receive residential cart service. These represent 97.8% of customer accounts served in Diamond Bar and 85.6% of total residential units across sectors. As shown in Table 5 below, all four options provide a reduction in residential rates when compared to current levels, with Option 2 and Option 4 providing the greatest reduction to customers. Option 2 reduces residential rates by anywhere from 6.7% to 20.9% while Option 4 reduces rates by anywhere from 9.5% to 29.6%. Table 5 - Proposed Residential Rates by Option Cart Service Current 7/2024* Option 1 (WM/VVS) Option 2 (VVS/WM) Option 3 (VVS) Option 4 (WM) 35 Gal. $32.02 $29.54 (-7.8%) $29.89 (-6.7%) $29.89 (-6.7%) $28.99 (-9.5%) 64 Gal. $39.46 $36.39 (-7.8%) $35.39 (-10.3%) $35.39 (-10.3%) $29.93 (-24.1%) 96 Gal. $47.34 $43.66 (-7.8%) $40.11 (-15.3%) $40.11 (-15.3%) $36.64 (-22.6%) 35 Gal. Sr. $27.56 $26.58 (-3.6%) $23.91 (-13.3%) $23.91 (-13.3%) $23.19 (-15.9%) 64 Gal. Sr. $34.02 $32.76 (-3.7%) $31.46 (-7.5%) $31.46 (-7.5%) $23.94 (-29.6%) 96 Gal. Sr. $40.58 $39.30 (-3.2%) $32.09 (-20.9%) $32.09 (-20.9%) $29.31 (-27.8%) COMMERCIAL RATE COMPARISON There are currently 269 commercial accounts and 31 multi -family accounts with a total of 2,620 individual housing units that receive bin service. These represent 2.2% of customer accounts served in Diamond Bar and 14.4% of total residential units served across sectors. Due to the variability in business service needs and generally customizable nature of commercial services, it is difficult to compare proposals based 7.2 Packet Pg. 269 on individual rates. It should also be noted that often, commercial rates paid by a single account are often split amongst a number of tenants or residents so that a single business is not solely responsible for the cost of service established in the proposed rate schedules. As shown in Tables 6 and 7 below, only Option 2 (WM Commercial Only) results in a commercial rate decrease, with the current structure (WM residential and VVS commercial) and both city-wide proposals resulting in an increase to annual commercial rate revenue. Table 6 – Commercial Rates Current Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin $137.94 $239.15 $326.93 $423.08 $524.33 $609.03 3 Yard Bin $170.77 $283.12 $397.53 $516.11 $623.61 $772.08 4 Yard Bin $216.21 $347.96 $482.72 $687.50 $822.27 $998.80 Options 1 & 3 – VVS Citywide and Commercial Only Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin $176.57 $326.29 $489.44 $652.58 $767.40 $874.96 3 Yard Bin $197.73 $368.62 $552.93 $737.23 $873.21 $1,001.94 4 Yard Bin $218.89 $410.94 $616.41 $821.88 $979.03 $1,128.92 Option 2 – WM Commercial Only Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin $116.75 $210.15 $303.55 $396.95 $490.35 $525.32 3 Yard Bin $144.54 $260.18 $375.81 $491.45 $607.08 $722.72 4 Yard Bin $183.00 $329.40 $475.80 $622.20 $768.61 $915.01 Option 4 – WM Citywide Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin $142.65 $256.76 $385.14 $513.53 $641.91 $770.29 3 Yard Bin $176.60 $317.89 $476.83 $635.78 $794.72 $953.67 4 Yard Bin $223.59 $402.47 $603.70 $804.94 $1,006.17 $1,207.41 Table 7 – Percentage Change in Commercial Rates Options 1 & 3 – VVS Citywide and Commercial Only Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin 28.0% 36.4% 49.7% 54.2% 46.4% 43.7% 3 Yard Bin 15.8% 30.2% 39.1% 42.8% 38.0% 29.8% 4 Yard Bin 1.2% 18.1% 27.7% 19.5% 19.1% 13.0% Option 2 – WM Commercial Only Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin -15.4% -12.1% -7.2% -6.2% -6.5% -13.7% 3 Yard Bin -15.4% -8.1% -5.5% -4.8% -4.0% -6.4% 4 Yard Bin -15.4% -5.3% -1.4% -9.5% -6.5% -8.4% 7.2 Packet Pg. 270 Option 4 – WM Citywide Size 1 pickup/wk 2 pickup/wk 3 pickup/wk 4 pickup/wk 5 pickup/wk 6 pickup/wk 2 Yard Bin 3.4% 7.4% 17.8% 21.4% 22.4% 26.5% 3 Yard Bin 3.4% 12.3% 19.9% 23.2% 25.6% 23.5% 4 Yard Bin 3.4% 15.7% 25.1% 17.1% 22.4% 20.9% ANALYSIS: As established in the evaluation outlined above, the procurement resulted in proposals from two qualified candidates. This determination is supported by successful partnerships with each over a period exceeding 20 years. Of the four options that resulted from the procurement process, Options 2 and 4 warrant the most consideration since they are the only two results that result in rate relief when compared to current annual hauler revenue. Option 4 (WM citywide) is the most robust proposal due to the following factors: • Offers the greatest overall reduction in ratepayer impact (-12.9%), with very significant cost reductions for residents (from 9.5% to 29.6%). However, commercial customers will experience increases, particularly for those with higher service needs (more than one pickup per week). • Offers improved contract administration efficiency because there would be only one contract to manage. • Offers improved customer service efficiency because there would be one source for customer service (everyone gets the same). • The WM proposal allocated more dedicated personnel to the Diamond Bar contract. • In staff’s view, the WM proposal included more robust outreach and education components. Option 2 (VVS residential and WM commercial) is a quality secondary proposal due to the following factors: • VVS residential and WM commercial provides for overall rate revenue reductions (-9.8%) and rate decreases in both sectors. However, the residential reduction is less than in Option 4. • Requires management of two hauler contracts. • The transition between residential haulers may require additional customer service to facilitate. NEXT STEPS Staff is seeking direction from the Council as to which option it prefers. Once staff has received the Council’s preference, it would work with the selected hauler(s) to finalize contract language. Once finalized, the final agreement will be scheduled at a future meeting for Council consideration. This agreement will include the agreed-upon start date for both sectors. 7.2 Packet Pg. 271 LEGAL REVIEW: City Attorney has reviewed and approved this report. PREPARED BY: REVIEWED BY: Attachments: 1. 7.2.a Diamond Bar Request for Proposals - Solid Waste Services 2. 7.2.b City of Diamond Bar Request for Proposals - Solid Waste Services Final Report 7.2 Packet Pg. 272 Subject: Diamond Bar RFP From: Enrique Vazquez <enrique@sloanvazquez.com> Date: 5/3/2023, 4:59 PM To: "Quiroa, Lily" <LQuiroa@wm.com>, David Perez <DavidPerez@zerepmanagement.com> CC: 'Alfa Lopez' <ALopez@DiamondBarCA.Gov> Lily Quiroa, David Perez AƩached you will the RFP for Solid Waste Services for the City of Diamond Bar. Included are the following documents and files; 1. RFP 2. AƩachment 2: Proposer's Code of Conduct 3. AƩachment 3: DescripƟon of Services 4. AƩachment 4: Current Rates 5. AƩachment 5: City FaciliƟes 6. AƩachment 6: Rate Proposal Forms 7. AƩachment 8: Proposal Outline Not included with this distribuƟon are the following. 1. AƩachment 1: DraŌ Franchise Agreement 2. AƩachment 7: Rate Adjustment Procedures These last two will be released as soon as they are complete but likely within a week of today. We have scheduled a mandatory pre-proposal conference for May 10, 2023 at 10: a.m. We will be sending out invitaƟons soon. Please note that any inquiries going forward must be directed in wriƟng to DiamondBarRFP@sloanvazquez.com. Please send an iniƟal email to ensure that your emails are being received. Thank you for your parƟcipaƟon. I look forward to working with you. -- Enrique Vazquez Sloan Vazquez McAfee 626-347-3226 www.sloanvazquez.com AƩachments: DB RFP Final 5-3-23.pdf 484 KB AƩachment 2 - Proposer's Code of Conduct & Non-Collusion Affidavit.pdf 168 KB AƩachment 3 - DescripƟon of Service Area.pdf 181 KB ͳʹ ͳȀͶȀʹͲʹͶǡͳͳǣʹ 7.2.a Packet Pg. 273 AƩachment 4 - Current Rates.pdf 1.9 MB AƩachment 5 - City FaciliƟes.pdf 145 KB AƩachment 6 Diamond Bar Rate Proposal Forms-Citywide.xlsx 101 KB AƩachment 6 Diamond Bar Rate Proposal Forms-Commercial.xlsx 94.5 KB AƩachment 6 Diamond Bar Rate Pro posal Forms-ResidenƟal.xlsx 99.1 KB AƩachment 8 - Proposal Outline.pdf 146 KB ʹʹ ͳȀͶȀʹͲʹͶǡͳͳǣʹ 7.2.a Packet Pg. 274 REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES Issued by fPrepared by: 3002 Dow Avenue, Suite 116, Tustin, CA 92780 Office: 866.241.4533 info@sloanvazquez.com · www.sloanvazquez.com Contact: Enrique Vazquez enrique@sloanvazquez.com 626-347-3226 May 3, 2023 7.2.a Packet Pg. 275 City of Diamond Bar, California Table of Contents RFP for Solid Waste Services May 3, 2023 Page ii TABLE OF CONTENTS SECTION 1 - INTRODUCTION ............................................................................................................... 1 Overview of Request for Proposal ................................................................................................... 1 Proposal Clarifications and Updates ................................................................................................ 1 City Goals and Objectives ............................................................................................................... 2 Organization of RFP ........................................................................................................................ 2 RFP Schedule .................................................................................................................................. 3 SECTION 2 - BACKGROUND ................................................................................................................. 4 Background Information ................................................................................................................. 4 Service Data ................................................................................................................................... 4 Term of New Agreement or Agreements ......................................................................................... 4 SECTION 3 - SCOPE OF REQUIRED SERVICES ........................................................................................ 5 Single-Family Dwelling (SFD) Solid Waste Services ........................................................................... 5 Commercial Solid Waste Services (Including Multifamily Premises of 5 or more units) ..................... 7 C&D Debris Collection Services ....................................................................................................... 8 City Solid Waste services ................................................................................................................ 9 Key Contract Terms ...................................................................................................................... 10 SECTION 4 - RFP POLICIES, CONDITIONS, AND PROCESS .................................................................... 15 Rights Reserved by the City .......................................................................................................... 15 General RFP Requirements ........................................................................................................... 15 Code of Conduct ........................................................................................................................... 16 Proposal Submittal Requirements ................................................................................................. 16 Limits on Disclosure of Proposals .................................................................................................. 19 SECTION 5 - SUBMITTAL REQUIREMENTS .......................................................................................... 21 Proposal Outline .......................................................................................................................... 21 1. General Requirements ...................................................................................................... 21 2. Proposer OVerview .......................................................................................................... 21 3. Proposal for Solid Waste Services ..................................................................................... 24 4. Displaced Employee Retention ......................................................................................... 28 7.2.a Packet Pg. 276 City of Diamond Bar, California Table of Contents RFP for Solid Waste Services May 3, 2023 Page iii 5. Exceptions to the Agreement ............................................................................................ 28 6. Rate Proposals ................................................................................................................. 28 7. Proposer Code of Conduct and Non-Collusion Affidavit ..................................................... 29 SECTION 6 - PROPOSAL EVALUATION PROCESS ................................................................................. 30 Proposal Evaluation Criteria.......................................................................................................... 31 AWARD ........................................................................................................................................ 33 LIST OF ATTACHMENTS .................................................................................................................... 34 ATTAHCMENT 1: DRAFT AGREEMENT ATTACHMENT 2: PROPOSER CODE OF CONDUCT AND NON-COLLUSION AFFIDAVID ATTACHMENT 3: SERVICE DATA ATTACHMENT 4: CURRENT RATES ATTACHMENT 5: CITY FACILITIES ATTACHMENT 6: RATE PROPOSAL FORMS ATTACHMENT 7: RATE ADJUSTMENT METHODOLOGY ATTACHMENT 8: PROPOSAL OUTLINE LIST OF TABLES Table 1 – RFP Schedule ................................................................................................................................. 3 7.2.a Packet Pg. 277 City of Diamond Bar, California Section 1. Introduction RFP for Solid Waste Services May 3, 2023 Page 1 SECTION 1 - INTRODUCTION OVERVIEW OF REQUEST FOR PROPOSAL The City of Diamond Bar (City) is soliciting proposals from Waste Management and Valley Vista Services to provide solid wastes services to include the collection, transportation, recycling, processing, and disposal of solid waste. Currently, solid waste services are provided under a Residential Cart Customer Franchise Agreement with Waste Management (WM) and a Commercial Bin and Roll-Off Box Franchise Agreement with Valley Vista Services (VVS). WM provides collection services to residential premises that receive residential collection using carts and for temporary roll-off box and temporary bin collection service for cleanup or construction work performed at residential customers to whom WM provides collection service using carts. Temporary collection service for the construction of new residences, and all work on commercial premises, and residential premises that receive collection service using bins, are excluded from WM’s franchise agreement. VVS provides collection services to commercial premises and all residential premises that receive collection using bins and including temporary bin and temporary roll-off box collection service with the exclusion of residential premises that receive collection service using carts. By issuing this Request for Proposals (RFP) for solid waste services, the City is competitively procuring franchised solid waste services. VVS and WM are exclusively invited to present a proposal to provide solid waste service to their respective service area under the existing franchise agreements as well as a proposal to provide City-wide solid waste services including residential, commercial, and permanent roll- off and on-call services. Should the City determine that proposals received from VVS and WM are inadequate to meet the City desired goals, the City reserves the right to invite additional proposers prior to making a final decision in the selection of a contractor or contractors. A key point of reference is the Draft Solid Waste Services Franchise Agreement (Agreement) included as Attachment 1. The Agreement provides definitions, contract terms, and conditions, including a complete description of the services to be provided. If there are differences between this RFP and the Agreement, the terms and conditions in the Agreement shall prevail. PROPOSAL CLARIFICATIONS AND UPDATES Proposers wishing to receive answers to questions and other RFP addenda must register by providing contact name, company name, address, e-mail address, and phone number via email to DiamondBarRFP@sloanvazquez.com. All Questions regarding this RFP shall be submitted to the City’s 7.2.a Packet Pg. 278 City of Diamond Bar, California Section 1. Introduction RFP for Solid Waste Services May 3, 2023 Page 2 Consultant to DiamondBarRFP@sloanvazquez.com (see RFP Section 5 – Proposal Submittal Requirements.) Only written responses will govern. Written questions may not be accepted after the date shown in the schedule in Table 1. However, simple questions regarding how to complete submittal forms or otherwise complete the proposal requirements, may be submitted via email until the proposal due date. CITY GOALS AND OBJECTIVES The City’s goals and objectives for the RFP process and future collection services are as follows: INTEGRITY, COMPETITION IN SELECTION PROCESS, AND CONTRACT TERMS CONSISTENT WITH CALRECYCLE COMPLIANCE REQUIREMENTS x Conduct the RFP process with integrity and transparency. x Stimulate competition among proposing companies. x Set high performance standards. x Ensure value for ratepayers. x Enter into a contract with fair terms and conditions. QUALITY, HIGH-VALUE PROGRAMS x Consistent, reliable, and quality service. x Efficient service delivery that provides a strong value to the ratepayers. x Responsive customer service system. x Well-planned and professionally executed transition to any new programs and services. x Quality outreach and education. x Effective diversion programs to ensure compliance with regulations. ORGANIZATION OF RFP This RFP is organized into six sections as follows: x Section 1 provides a brief introduction to the RFP. x Section 2 provides background information. x Section 3 presents the scope of required services. x Section 4 provides the RFP policies, conditions, and process. x Section 5 describes the RFP submittal requirements. x Section 6 outlines the proposal evaluation process. 7.2.a Packet Pg. 279 City of Diamond Bar, California Section 1. Introduction RFP for Solid Waste Services May 3, 2023 Page 3 RFP SCHEDULE The key activities and completion dates for the RFP process are provided in Table 1. Table 1 – RFP Schedule Note: The City reserves the right to modify this schedule as needed. Milestones Date City issues RFP May 3, 2023 Mandatory pre-proposal meeting at 10:00 a.m. May 10, 2023 Deadline to submit written questions by 5 p.m. May 24, 2023 Distribution of Addenda May 31, 2023 Proposals Due no later than 4 p.m. June 19, 2023 Option to Release RFP to Public August 6, 2023 Evaluation Results Reported to City Council October 9, 2023 Final Selection and Approval November 14, 2023 Contractor commences providing services September 1, 2025 7.2.a Packet Pg. 280 City of Diamond Bar, California Section 2. Background RFP for Solid Waste Services May 3, 2023 Page 4 SECTION 2 - BACKGROUND BACKGROUND INFORMATION The information presented in this section and the related Attachments listed below are for informational purposes only. Each proposer should take whatever steps it believes are necessary to determine the actual service requirements of the City and understand service conditions when preparing a proposal. The following is a list of Attachments providing reference information for proposers (Attachments 2 and 6 are for completion and submittal with the proposal): x Attachment 1 is the Draft Agreement. x Attachment 2 is the Proposer Code of Conduct and Non-Collusion Affidavit. x Attachment 3 provides Service Data. x Attachment 4 provides Current Rates for solid waste services. x Attachment 5 provides a list of City Facilities. x Attachment 6 provides the Rate Proposal Forms. x Attachment 7 provides Rate Adjustment Methodology. x Attachment 8 provides the Proposal Outline. SERVICE DATA Service data including a description of the service area, rate revenue, tonnage collected, units serviced and the most recent rates effective July 1, 2022, are shown in Attachment 3. TERM OF NEW AGREEMENT OR AGREEMENTS The initial term of the new agreement is ten (10) years. City may, in its sole discretion, authorize an extension of up to twenty-four (24) months prior to the expiration of the initial term of the agreement. The City anticipates exercising its option to extend the current Agreements for an additional twenty-four (24) months setting their expiration to August 31, 2025. The new Agreement(s) will take September 1, 2025. 7.2.a Packet Pg. 281 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 5 SECTION 3 - SCOPE OF REQUIRED SERVICES This section provides a brief description of the services solicited through this RFP. The Agreement provides the detailed scope of services. The Agreement is included as Attachment 1. The Agreement provides definitions, contract terms and conditions, performance standards, including a complete description of the services required by the City. If there are differences between this RFP and the Agreement, the terms and conditions in the Agreement shall prevail. SINGLE-FAMILY DWELLING (SFD) SOLID WASTE SERVICES Under the current agreements, residential solid waste service includes services to residential premises that receive solid waste services using carts but excludes temporary solid waste collection services for construction of new residences, and all work on commercial premises, and residential premises that receive collection services with bins which are addressed under the commercial solid waste services agreement. Under this RFP, residential solid waste service includes services to single-family dwellings (SFD) and multi-family dwellings (MFD) of less than five units regardless of container size, type (cart, bin, roll-off box) required for service, including roll-off services, permanent, temporary, and on-call, and on-call clean-up bins. MFDs of five or more units are included under commercial solid waste services. Refer to draft Agreement Section 3.2 for a complete description of service requirements for Residential services. Standard Cart Service: Standard cart service will be the weekly, automated collection of refuse, recycling, and organics. The default cart size for each waste stream shall be 64-gallons. Customers may request different size carts for each waste stream. Carts shall be offered in 35, 64, and 96-gallon cart sizes. The monthly rate shall be based on the refuse cart size. Recycling and organics carts shall be collected on the same day as refuse collection. Additional refuse carts beyond one may be requested for an additional monthly fee. Customers may request a second recycling cart at no additional charge. Additional recycling carts beyond two are subject to an additional monthly fee. Customers may request a second organics cart at no additional charge. Additional organics carts beyond two are subject to an additional monthly fee. MFDs of Less Than Five Units: MFDs of less than five may be provided solid waste services (refuse, recycling, and organics collection) using carts or bins as appropriate for the conditions, requirements, and needs of the customer. Refuse Cart Overage: Provide two annual pickups per calendar year and an end-of-year pickup for refuse that would otherwise be placed in the refuse cart but excluding bulky items, at no additional charge. Each annual pickup may consist of up to the equivalent of three (3) large bags, boxes, or barrels 7.2.a Packet Pg. 282 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 6 of refuse. End-of-year pickup of all additional refuse that is placed out for collection in the customer's own containers (bags, boxes, barrels, etc.) for two weeks beginning each December 26. Contractor may charge an additional fee per pickup of all refuse that does not fit in the refuse cart(s) beyond the free pickups. Backyard Service: Provide backyard service defined as retrieving for collection all carts, green waste bundles and cart overages from a customer's designated collection location, other than curbside, such as backyard, side yard, or driveway, and returning empty carts and other containers to their original location. Backyard service is subject to an additional charge. Backyard Service for the Disabled: Provide backyard service at no additional charge to any customer who is legally or medically recognized as disabled. See RFP Section 3 – Residential Rate Arrangements). Temporary Roll-Off and Temporary Bin Service: Provide temporary roll-off box and temporary bin service upon customer request for cleanup or construction. On-Call Bulky Item: Provide bulky item pickup service to all SFD and MFD. Each Dwelling Unit shall be entitled to four bulky item pickups per calendar year at no additional charge. Customers may put out up to three (3) cubic yards of material at each pickup. Bulky item collections that exceed the number of free pickups may be subject to an additional charge. Door-to-Door HHW Collection: Provide SFD and MFD customers with door-to-door call-in HHW collection. Each Dwelling Unit shall be entitled to two door-to-door Residential HHW pickups per calendar year at no additional charge. Items to be collected include, at a minimum: paint and paint products including but not limited to thinners, glues, caulking, stains, wood preservatives and strippers; universal waste, household cleaners; automotive wastes; swimming pool chemicals; garden chemicals; fluorescent tubes; thermometers; and household batteries. Contractor may direct residential customers to use the bulky item pickup option for televisions, computers and other HHW that may safely and legally be collected as bulky items. Annual Household Hazardous Waste Event: Assist the City in increasing awareness of Household Hazardous Waste events by promoting the Los Angeles County Household Hazardous Waste collections held in Diamond Bar. Promotional activities will include posting on contractor’s website, inclusion in the annual brochures/ mailings mailed to each Customer, billing inserts, social media targeted outreach, and press releases to local news outlets. Curbside Used Oil and Oil Filter Collection: Collect used oil placed curbside beside solid waste container on regular collection day at no additional charge. Educate customers to place used oil in clean containers and used oil filters in clean zip-lock bags. Sharps Mail Back Program: Operate a mail-based program and/ or a drop-off program for the safe processing of Sharps generated by its customers. Upon request, Sharps containers will be delivered directly to residential customers at no cost to the customer or City. Contractor will make arrangements 7.2.a Packet Pg. 283 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 7 with pharmacies and/ or other locations throughout the City for residents to drop-off Sharps at no cost to the Customer or City. Medication Takeback Program: Assist the City in increasing awareness of medication takeback programs provided by the Los Angeles County Sheriff's station and any third-party events held in Diamond Bar. Promotional activities will include posting on contractor’s website, inclusion in the annual brochures/mailings mailed to each residential customer, billing inserts, social media targeted outreach, and press releases to local news outlets. FreeCycle.com: Contractor will publicize to residential customers its free materials exchange/ gifting program, known as FreeCycle.org, and shall promote FreeCycle.org on Contractor's website, and the annual brochure/mailings. Annual Holiday Tree Recycling Collection: Provide collection of holiday trees from December 26 through the second Sunday in January. Compost Giveaway: Distribute coupons through quarterly billings entitling residential customers to receive two bags of compost per event at two community events per year to be identified by City. COMMERCIAL SOLID WASTE SERVICES (INCLUDING MULTIFAMILY PREMISES OF 5 OR MORE UNITS) Under the current agreements, commercial solid waste service includes services to commercial premises and residential premises that receive solid waste services using bins, including temporary bin and temporary roll-off box collection service with the exclusion of residential premises that receive solid waste services using carts. Under this RFP, commercial solid waste services include services to commercial premises and MFDs of five or more units regardless of the container size and type (cart, bin, roll-off box) required for service, including roll-off services, permanent, temporary, and on-call clean-up bins. MFDs of less than five units are included under residential solid waste services. Refer to draft Agreement Section 3.3 for a complete description of service requirements for commercial and MFDs. Refuse Collection: Provide refuse collection using bins or carts as frequently as scheduled by the customer, but not less than once per week and more frequently if required to handle the solid waste generated at the premises where the bins are located. Recycling Collection: Provide source-separated recycling collection using bins or carts as to all locations that are required to subscribe to organics collection by AB 341. Recycling services shall be provided at a rate not to exceed 50% of the equivalent refuse rate for similar container sizes and service frequency. Organics Collection: Provide source separated organics collection using bins or carts to all locations that are required to subscribe to recycling collection by AB 1826 and SB 1383. Organics services shall be 7.2.a Packet Pg. 284 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 8 provided at a rate not to exceed the equivalent refuse rate for similar container sizes and service frequency. Bin Pushout Service: Provide pushing or rolling containers to the point of collection to locations that require such service at no additional charge. Scout Service: Offer scout service by using a small vehicle either to move containers to street or other public right-of-way for Collection. Locking Bins: Provide the hasp and lock and service the lock. Permanent Roll-Off Box Service: Rates shall be charged as "pull plus dump", a set rate for the service component plus the per ton charge based on actual tonnage collected. Temporary Roll-Off and Temporary Bin Service: Provide temporary roll-off box and temporary bin service upon customer request for cleanup or construction. Contractor must deliver a temporary roll-off box within forty- eight (48) hours of request (Saturdays and Sundays excluded). Temporary Bin Service: Rates shall be charged as “bin delivery/pickup plus one dump.” Additional charges may include, additional dump, and rental fee after seven (7) days with no dump or bin pickup. Contractor must deliver a temporary bin within forty- eight (48) hours of request (Saturdays and Sundays excluded). On-Call Bulky Item: Provide bulky item pickup service to MFDs. Each dwelling unit is allowed up to four bulky item pickups per calendar year at no additional charge. Customers may put out up to three (3) cubic yards of material at each pickup. Bulky item collections that exceed the number of free pickups may be subject to an additional charge. Electronic Waste: For MFD, E-Waste will be collected as bulky items. Door-to-Door HHW: Provide MFDs door-to-door call-in HHW collection service to each dwelling unit at no additional charge. Items to be collected include, at a minimum: paint and paint products including but not limited to thinners, glues, caulking, stains, wood preservatives and strippers; universal waste, household cleaners; automotive wastes; swimming pool chemicals; garden chemicals; fluorescent tubes; thermometers; and household batteries. Televisions, computers and other HHW may be collected as bulky items when safe and legal to do so. Annual Holiday Tree Recycling: Provide MFD’s collection of holiday trees from December 26 through the second Sunday in January. C&D DEBRIS COLLECTION SERVICES All loads of mixed C&D debris shall be delivered to a processing facility to meet all requirements described in draft Agreement Section 3.7. Contractor shall divert from landfilling a minimum of 75% or 7.2.a Packet Pg. 285 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 9 the State-mandated Construction and Demolition diversion percentage, whichever is greater, of all Construction and Demolition Debris Collected. CITY COLLECTION SERVICES City Facilities Collection: Collect and dispose of all refuse, recyclables, and organics generated and accumulated at premises owned and/or operated by the City at no additional charge (including e-waste, and construction and demolition debris) and in compliance with AB 341, AB 1826, and SB 1383. Such premises include, but are not limited to, offices, parks, and street maintenance operations. See Attachment 4 for the current list of facilities and service levels. These facilities and service levels may vary over the term of the new agreement, with no increase in compensation for additional collection services. (Refer to draft Agreement Section 3.8.) City-Sponsored Events: Provide refuse, recyclables, and organics collection using carts, bins, roll-off boxes, cardboard boxes with liners, or other such containers at no charge at City–sponsored events. These events and service levels may vary over the term of the new agreement, with no increase in compensation for additional collection services. Should the City select separate contractors for the residential and commercial sectors, the City intends to alternate events between the two contractors with no guarantee that events will be evenly distributed based upon either level of effort or number of events. City-sponsored events include, but are not limited to: x Concerts in the Park x City Birthday Celebration x Fourth of July x Fall Fun Festival x Winter Snow Festival x Arbor Day x Easter Egg Hunt Abandoned Item Collection: Provide collection of bulky waste abandoned in the City right-of-way or other public property within contractor’s service at no additional charge, within one business day of notification from City. Contractor will not be required to Collect Hazardous Waste, liquid wastes, or automobile parts that are individually too large for Collection by two people. City will contact either the residential or commercial franchisee to provide this service, depending on the location of the abandoned item. 7.2.a Packet Pg. 286 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 10 Community Development Review Services: Review building permit applicants' plans and advise regarding adequacy of container storage space and access, particularly to accommodate recycling and organics containers upon the City’s request and at no additional charge to the City. Large Venue Event Assistance, Event Recycling: Assist planners of large venue events with reporting and planning needs as may be useful in meeting the requirements of AB 2176, found at California Public Resources Code 42648, et seq. at no additional charge. Contractor shall provide recycling and organics collection services upon request to special event planners. Confiscation of Unauthorized Containers: Confiscate illegal containers located within the City's public rights-of-ways, upon notification from City, or if Contractor finds illegally placed Containers based on procedure provided in the franchise agreement. Provision of Storage Containers: Provide the City with eleven 40-cubic-yard portable storage containers to be used for storage at City facilities and schools for the duration of the Agreement. Containers will be maintained in a condition satisfactory to the City. Contractor may transfer ownership of these storage containers to City, provided Contractor will remove and dispose of these containers when requested to by City. Emergency Collection and Disposal Service: Assist City at the City's request with emergency Collection and Disposal service in the event of major disaster, such as an earthquake, storm, riot, or civil disturbance, or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. KEY CONTRACT TERMS STATE DIVERSION COMPLIANCE The selected contractor will ensure that the City is in full compliance with AB 939, AB 901, AB 341, AB 1594, AB 1826, and SB 1383, and all related state laws and regulations in effect during the term of the Agreement. Requirements include, but are not limited to the following: Collection, Processing and Diversion Programs and Services: The Contractor will provide collection, processing and diversion programs and services relative to AB 939, AB 901, AB 341, AB 1594, AB 1826, SB 1383, and all future applicable regulations. Public Education and Outreach: The Contractor will provide public education to residents and businesses relative to AB 939, AB 901, AB 341, AB 1594, AB 1826, SB 1383, and all future applicable regulations. Proposers must describe their proposed public education and outreach commitments in their AB 341, AB 1826, SB 183 Implementation Plan. 7.2.a Packet Pg. 287 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 11 Container Specifications and Distribution: The selected contractor will be responsible for providing and maintaining all containers under this agreement. Carts shall be new upon initiation of services under the Agreement, and bins may be new or used. All carts and bins will be color-coded and labeled to be compliant with SB 1383. Diversion Monitoring and Reporting: The Contractor will provide monitoring and reporting relative to AB 939, AB 901, AB 341, AB 1594, AB 1826, SB 1383, and all future applicable regulations. Environmental Coordinator: To achieve a high level of recycling public education and awareness, the Contractor shall designate an Environmental Coordinator to the City to complete outreach to SFD, MFD and Commercial customers, and develop and implement all public education and outreach activities required under the Agreement. The Recycling Coordinator shall conduct outreach, promote waste reduction, recycling, diversion programs, and provide technical assistance to Multi-family and Commercial Customers. The Environmental Coordinator shall not be the primary Contractor liaison described in draft Agreement Section 7.16B. FAITHFUL PERFORMANCE BOND & LETTER OF CREDIT The selected contractor will be required to provide a performance bond totaling $125,000 and a performance Letter of Credit $125,000. As an alternative, the selected contractor may provide a Letter of Credit in the amount of $250,000, or deposit funds, on terms satisfactory to the City, in an interest- bearing account. INSURANCE The selected Contractor is required to maintain minimum insurance levels. See draft Agreement Article 9 for the minimum limits of insurance for general liability, automobile liability, and workers compensation. COLLECTION VEHICLE REQUIREMENTS Contractor’s collection vehicles shall be not older than two-years and in like-new condition upon initiation of services under the Agreement, no more than 10 years of age during the initial term of the Agreement and no older than 15-years in age during any future extensions of the Agreement, and comply with Department of Transportation, South Coast Air Quality Management District and the California Air Resource Board requirements. Contractor’s collection vehicles must use only renewable natural gas. See draft Agreement Section 3.10.4. AUTOMATED CART REQUIREMENTS All carts shall be new at the start of service under this agreement. Proposer shall describe carts which it intends to use in the City, pending City approval. Include manufacturer, specific sizes, SB 1383 compliance, colors of carts and lids by waste stream, and a photograph. 7.2.a Packet Pg. 288 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 12 FEES Franchise Fee: Contractor shall pay a Franchise Fee that is commensurate with the value to be received by Contractor in receiving the exclusive right to provide the service set forth herein. The City concludes that a reasonable and appropriate amount for the benefits provided should be a minimum of Four- Hundred Ten-Thousand Dollars, ($410,000), in the first year. This payment to the City shall be referred to as a Franchise Fee and its percentage will be calculated according to estimated gross receipts from customers as shown in Form 2.0 Rate Revenue from Attachment 6 Rate Proposal Forms. (See draft Agreement Section 9.1). Should the City issue separate franchises for Residential and Commercial services, the commercial franchise fee shall be a minimum of One-Hundred Twenty-Three Hundred Dollars ($123,000) and the residential franchise fee shall be a minimum of Two-Hundred Eighty-Seven Thousand Dollars ($287,000). CALRECYCLE Compliance Fee: Contractor shall pay to the City a CalRecycle Compliance Fee of Seven- Hundred Fifty Thousand Dollars ($750,000) adjusted annually as described in draft Agreement Section 9.2 and 9.7. The CalRecycle Compliance Fee amount represents a reasonable allocation of the City’s budgeted costs to comply with State mandates resulting from the enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016) which require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. Should the City issue separate franchises for Residential and Commercial services, each franchisee shall pay a minimum CalRecycle fee of Three-Hundred Seventy-Five Thousand Dollars ($375,000). Residential Vehicle Impact Fee: Contractor shall pay to the City an annual Vehicle Impact Fee of One- Hundred Seventy-Five Thousand Dollars ($175,000) adjusted annually as described in draft Agreement Section 9.4 and 9.7. The Residential Vehicle Impact Fee is to reimburse the City for costs to provide road maintenance to City’s streets due to “wear and tear” caused by the use of Contractor’s Solid Waste Collection vehicles on City Streets. Should the City issue separate franchises for Residential and Commercial services, only the residential franchisee shall pay the Residential Vehicle Impact Fee. Residential Street Sweeping Fee: Contractor shall pay to the City an annual Street Sweeping Fee of One- Hundred Seventy-Five Thousand Dollars ($175,000) adjusted annually as described in draft Agreement Section 9.5 and 9.7. The Residential Street Sweeping Fee is to reimburse the City for the cost of sweeping residential streets. Should the City issue separate franchises for Residential and Commercial services, only the residential franchisee shall pay the Residential Street Sweeping Fee. Contracting Fee: Contractor shall pay the City a one-time contracting fee of One-Hundred Thousand Dollars ($100,000) within seven (7) days of the execution of the new agreement. Should the City issue separate franchises for Residential and Commercial services, the commercial franchisee shall pay Thirty- Thousand Dollars ($30,000) and the residential franchisee shall pay Seventy-Thousand Dollars ($70,000). 7.2.a Packet Pg. 289 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 13 Late Payment Fee: Contractor shall pay the City a Late Payment Fee of 10% of any amount passed due for the month plus 1.5% for each month the payment is late thereafter. HOLIDAY SCHEDULE If the regularly scheduled collection day falls on New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, or Christmas Day, collection days for the remainder of that week shall all be postponed one collection day and residential collection is permitted on Saturday during the make-up week. CUSTOMER RATE ARRANGEMENTS The rate schedules establish the maximum rates that may be charged. Initial rates will be set based on the rates proposed in Attachment 6. The rates will thereafter be adjusted using a rate adjustment procedure described in Article 8 of the draft Agreement. The first rate adjustment is effective July 1, 2026. RESIDENTIAL RATE ARRANGEMENTS Standard Cart Service: Standard cart service will be the weekly, automated collection of refuse, recycling, and organics. The default cart size for each waste stream shall be 64-gallons. Customers may request different size carts for each waste stream. Carts shall be offered in 35, 64, and 96-gallon cart sizes. The monthly rate for the collection of all three waste streams shall be based on the refuse cart size selected by the customer. Disabled Customer Discount: Currently customers determined to be disabled by issuance of a handicap placard from the DMV or by meeting City-established guidelines receive backyard service at no additional charge. The City invites Proposers to propose this service at no charge or at a discounted rate. Please note that discounted rates shall be provided at the sole cost of the Contractor and will be considered a disallowed cost for Proposition 218 purposes. Senior Citizen Discount: Currently, senior citizens of 60 years of age or older, residing in the premises where service is received and listed on the bill are entitled to a discounted senior rate. The City invites Proposers to propose this service a senior citizen discount. Please note that the discounted portion of the rate shall be at the sole cost of the Contractor and will be considered a disallowed cost for Proposition 218 purposes. COMMERCIAL AND MFD RATE ARRANGEMENTS The City will maintain a rate structure that includes separate fees for the collection of refuse, recyclables, and organics. A volume-and-frequency based rate structure will be used. Contractor shall charge rates to the customer based on each customer’s size and number of containers at a rate not to exceed the corresponding rate in the maximum rate table. Recyclables collection will be offered at a 7.2.a Packet Pg. 290 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3, 2023 Page 14 50% of the refuse rate. Organics collection shall be charged at the same rate as the refuse rate for the equivalent container size and frequency. CITY FACILITIES The City’s facilities shall be provided all collection services at no additional charge. Services shall include refuse, recycling and organics collection services. CHARGES FOR ADDITIONAL SERVICES The Contractor’s proposed rate schedule shall include all charges for special services, including but not limited to: x Additional carts. x Scout service. x Locking bins. x Pulling or pushing containers to a collection vehicle. x Steam cleaning containers (excluding carts) more frequently than one time per year as requested by the customer. x Additional bulky item collection services. Please see Proposal Forms for more details on situations in which special service charges apply. RATE ADJUSTMENT METHODOLOGY Refer to Attachment 7 for a complete description of the rate adjustment methodology. 7.2.a Packet Pg. 291 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3, 2023 Page 15 SECTION 4 - RFP POLICIES, CONDITIONS, AND PROCESS RIGHTS RESERVED BY THE CITY The City reserves the right, in its sole discretion, to pursue any or all of the following actions regarding this RFP process: x Issue addenda and amend the RFP and Franchise Agreement. x Request additional information and/or clarification from proposers. x Extend the deadline for submitting proposals. x Withdraw this RFP. x Reject proposals that do not fully comply with the requirements detailed in this RFP, its attachments, addenda, or clarifications. x Reject incomplete proposals; proposals containing errors, inconsistencies, false, inaccurate, or misleading information; proposals submitted after the deadline; or proposals with other process or content errors or deficiencies. x Amend the Municipal Codes of City. x Award a proposal based on a combination of its qualitative and quantitative attributes. x Take other actions the City deems are in the best interest of the City, residents and businesses in the City service area; and, x Negotiate changes in the services proposed and/or described in the RFP or to incorporate programs proposed by others. GENERAL RFP REQUIREMENTS x This RFP shall not be construed by any party as an agreement of any kind between the City, contractor(s), and other parties. x This RFP does not obligate the City to accept any proposal, negotiate with any proposer, award a Franchise Agreement, or proceed with the development of any project or service described in response to this RFP. The City has no obligation to and shall not compensate any proposer for its expense of preparing its proposal and participating in this procurement process. x Please note that the City’s procurement of Franchise Collection Services is not subject to State bidding laws, and the City does not intend to cause the current RFP process to become subject to such public bidding laws or regulations. x The City shall have the right (but not the obligation) to perform a review of each proposer's ability to perform the work required. Each proposer must agree to cooperate with such a review. Such cooperation by proposer shall apply to the verification of the proposer's capability and experience in the provision of services and any other component of work that may be required under this procurement. x The City, and its consultants, will be conducting reference checks on proposers that will involve contacting jurisdictions currently or previously served by proposer, as well as contacting 7.2.a Packet Pg. 292 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3, 2023 Page 16 regulatory agencies involved in oversight of proposers’ facilities. In addition, the City, or its consultants, may research proposers’ past performance by reviewing litigation history, regulatory actions, highway driving records, criminal investigations, and recycling history. The proposer’s submission of a proposal shall constitute an agreement to cooperate with the City’s review. x Submittal of a proposal signifies the submitting proposers’ commitment to provide the proposed services if selected. In addition, all aspects, conditions, and components of proposals submitted shall be valid for one year from date of submittal. Proposals may not be altered after submittal, except in response to the City’s request for clarification. CODE OF CONDUCT PROPOSER CODE OF CONDUCT Proposers are required to sign the Proposer Code of Conduct, which includes a Non-Collusion Affidavit (Attachment 2). This document prohibits ex-parte communications with City elected officials; prohibits giving any gift or monetary compensation to City staff member or consultants; prohibits collusive activities with other potential proposers. If a proposer does submit the document or violates the code of conduct, the City has the right to disqualify the proposer from this RFP process. Please note: the notarized Proposer Code of Conduct and Non-Collusion Affidavit is required to be submitted no later than one week after the mandatory pre-proposal meeting. An electronic copy may be emailed to DiamondBarRFP@sloanvazquez.com and an original must be mailed to the City. PROPOSAL SUBMITTAL REQUIREMENTS Submission of a proposal shall constitute acknowledgment and acceptance of all the terms and conditions contained in this RFP, and in the draft franchise agreement, unless exceptions are expressed in writing in the proposal (See RFP Section 5 Exceptions to the Agreement). The successful proposer will be expected to enter into a franchise agreement with the City; only those exceptions noted in its proposal will be considered for modification. The City is not obligated to agree to these exceptions but reserves the right to negotiate modification of such noted exceptions to the draft franchise agreement. The schedule of events presented in this section is summarized in Table 1. STEP ONE – R.S.V.P TO ATTEND PRE-PROPOSAL MEETING Proposer must register their intent to respond to this RFP by emailing notification to DiamondBarRFP@sloanvazquez.com. 7.2.a Packet Pg. 293 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3, 2023 Page 17 STEP TWO – MANDATORY PRE-PROPOSAL MEETING A mandatory pre-proposal meeting will be held by video conference. An invitation will be emailed to each registered proposer. The current date and time of the pre-proposal meeting are provided in Table 1 – RFP Schedule. STEP THREE – SUBMITTAL OF WRITTEN QUESTIONS The City directs proposers to submit all questions and requests for information in writing directly to the City’s consultant at DiamondBarRFP@sloanvazquez.com. The deadline for submitting written questions and requests for information is provided in Table 1 – RFP Schedule. Written responses to questions will be provided to all eligible proposers. In the event of any inconsistencies between oral responses provided at the pre-proposal meeting and written responses subsequently issued. The written responses must be used for preparing proposals. STEP FOUR – PROPOSAL SUBMITTAL Proposer shall submit One (1) double-sided copy of the complete proposal and one (1) single sided, signed original according to the deadline provided in the RFP Schedule. In addition, the proposers are required to submit a flash drive containing: x A digital copy of all completed rate proposal forms (Attachment 6 of the RFP) in Microsoft Excel format. x A digital copy of the Draft Franchise Agreement, noting all exceptions and proposed substitute language in redline/strikeout, in Microsoft Word format. x A complete PDF of the proposal including the rate proposal forms. and, x The required Surety must be included in the sealed package. These items shall be placed and submitted in a sealed package. Proposals must be formatted on 8½ inch by 11-inch paper with post-consumer recycled-content paper. All pages shall be consecutively numbered; although, each section may start with a new page number if proceeded with the section number (e.g., Page 2-1 for the first page of section 2). Surety: Each proposal must be accompanied by a surety made payable to “City of Diamond Bar” in the amount of $25,000 and in the form of a certified check, cashier’s check, or bid bond. The surety shall be submitted with the proposal in a separate, clearly labeled envelope. The purpose of the surety is to guarantee that the successful contractor will execute a Franchise Agreement with the City. If the selected contractor does not execute the Franchise Agreement within 30 calendar days after receiving notice of the award of Franchise Agreement, the City shall keep the surety to offset the potential cost associated with identification of an alternate service provider and schedule delays. Additionally, the City has the right to pursue additional and reasonable costs incurred in this event. 7.2.a Packet Pg. 294 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3, 2023 Page 18 Checks and bonds will be returned to all proposers no later than ten calendar days after the City has executed the Franchise Agreement with the successful contractor. If no selection is made within one year of the submission of proposals, each proposer may demand their proposal surety be returned. However, the City reserves the right to eliminate proposals from such companies from further consideration. Proposals received late will not be considered. Postmarks will not be accepted as proof of receipt. The package shall be clearly labeled: PROPOSAL FOR CITY OF DIAMOND BAR SOLID WASTE SERVICES FROM: Name of Proposer Address: Address of Proposer Contact Person: Telephone Number: E-mail: The proposal may be mailed or hand delivered to: CITY CLERK City of Diamond Bar 21810 Copley Dr. Diamond Bar, CA 91765 STEP FIVE – CLARIFICATION OF PROPOSAL INFORMATION AND INTERVIEWS Proposers may be asked to clarify information through written communications, interviews or during site visits of each proposer’s offices, customer service center, corporation yard and maintenance facilities, and disposal, transfer, and processing facilities. The City reserves the right to conduct in- person interviews with one or more proposers. STEP SIX – SELECTION OF RECOMMENDED CONTRACTOR AND NEGOTIATION OF FINAL AGREEMENT The City and/or its consultants will recommend for consideration by the City Council a preferred contractor for both residential and commercial services, or a contractor for residential and another contractor for commercial services. Should the City and/or its consultants determine that none of the proposals submitted by VVS or WM meet the best interest of the City and the ratepayers, the City may choose to publish this RFP to the public and invite additional proposals for consideration prior to selecting a contractor or contractors, in which case, the process will revert to Step One. In the event that the City releases this RFP to the public, it is the City’s intention to keep VVS and WM’s proposals confidential until the contractor selection process is complete. 7.2.a Packet Pg. 295 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3, 2023 Page 19 Once the City Council approves selection of a final contractor or contractors then final negotiation will take place for the Franchise Agreement(s). Except at the sole discretion of the City, all negotiations with the Proposers will be limited to the Proposers’ listed exemptions and proposed substitute language in the draft agreement contained in their proposal. LIMITS ON DISCLOSURE OF PROPOSALS The City has determined that the public interest will be best served if proposals submitted in response to this RFP are not made available for review by other companies participating in the competitive selection process. For that reason, proposals (and materials submitted during subsequent meetings and discussions with City staff) will not be made available to other proposers or the public generally any earlier than the date on which City staff issues to City Council a contractor or contractors recommended for final consideration/negotiation. As part of the Council Report, the City may include some portion(s) of the proposal(s) that have not been identified as entitled to confidential treatment as containing trade secrets. However, inclusion of some portion(s) of the proposal(s) in the Council Report may be deferred until after the City Council has selected a proposer for negotiations. In this case, some portion(s) of the proposal(s) may be included in the Council Report prepared for the meeting where the results of the completed negotiations are presented. This is the only release of any portion(s) of proposal(s) that will be permitted prior to the execution of this agreement. No proposer may, directly or through an intermediary, employ the Public Records Act to obtain access to non-confidential materials submitted to the City by other proposers prior to the execution of the agreement for this contract. The following procedures will be followed for the disclosure of proposals following the execution of the agreement: x Materials which a proposer considers as trade secret information entitled to protection from disclosure under Government Code Section 6254(k) must be clearly marked on each page as “CONFIDENTIAL”. x If the City receives a request to review and/or copy materials submitted by any proposer, it will decline to release those materials marked “CONFIDENTIAL” pursuant to Government Code Section 6255. x If the person submitting the request files a legal action against the City seeking its release, the City will notify the affected proposer(s) and will not oppose a motion by such proposer(s) to intervene in the action. The proposer(s) must either intervene or agree to pay the City’s legal expenses in defending the action, including fees, if any, awarded to the plaintiff. Absent such an agreement, the City will have no obligation to defend the action and may release the information sought without any liability whatsoever. 7.2.a Packet Pg. 296 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3, 2023 Page 20 x No proposer will seek damages against the City or recovery of its attorneys’ fees from the City because of any dispute related to the release or withholding of information submitted in response to this RFP. x Materials that have been marked as “CONFIDENTIAL” will either be destroyed or returned to all unsuccessful proposers once the agreement has been signed by City and by the selected proposer(s). 7.2.a Packet Pg. 297 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 21 SECTION 5 - SUBMITTAL REQUIREMENTS Section 5 includes the required proposal outline and a description of the specific information proposers must include. Proposer must provide the information specified in this section as part of its proposal. Failure to provide all the required information may be grounds for rejection of a proposal. The proposer does not need to reiterate the service requirements of the Franchise Agreement in their proposal. However, proposer is requested to focus on describing how it plans to provide the services with regard to but not limited to routing strategies, collection methods, and equipment selection. Furthermore, if a proposer has presented information for one type of service that is the same for another type of service, proposer can refer to its previous description rather than reiterating the discussion in its proposal. For example, if SFD solid waste and recyclables collection vehicles are the same, the vehicle description can be provided once for the solid waste service and then referenced for the recyclable materials collection service. PROPOSAL OUTLINE Proposer shall present its proposal in accordance with the outline provided in Attachment 8. Information should be identified by number in the outline. Additional information or data relevant to the proposal is optional and may be included by proposer as proposal attachments. 1. GENERAL REQUIREMENTS I. TITLE PAGE (OPTIONAL) II. COVER LETTER The cover letter shall clearly identify the legal entity or entities submitting the proposal and state whether each is a sole proprietorship, partnership, corporation, LLC, or joint venture. The cover letter shall be signed by the designated representative authorized to bind proposer. Proposer shall acknowledge receipt of any addenda issued as part of this RFP process. III. TABLE OF CONTENT 2. PROPOSER OVERVIEW 2.1 PROPOSER’S BUSINESS STRUCTURE Provide the following information regarding the proposing entity and entity that would provide a corporate guarantee, if applicable: x Identify the legal entity that would execute the Franchise Agreement. State whether each entity is a sole proprietorship, partnership, corporation, LLC, or joint venture. Describe in detail the 7.2.a Packet Pg. 298 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 22 relationship of the proposer to the executing entity. If the proposer is a joint venture, describe where the entities have collaborated before. x Identify the entity that would submit financial statements and whether it is an individual, a partnership, a corporation, or a joint venture. If other than proposing entity, indicate relationship and willingness to sign corporate guarantee. x Confirm that proposer is authorized to do business in California. x State the number of years the entities have been organized and doing business under this legal structure. Proposal must include all the names of company’s (and executing entities if different than company’s) owners/stockholders with greater than a 10% holding of the company's total assets. x Identify the names of all officers. x Identify other businesses with ownership by principals and/or management. x Identify the corporate headquarters. x Identify local headquarters (if different). x Describe all services to be performed by subcontractors and identify each subcontractor by name. Proposer shall describe any current or past working relationship with the subcontractor(s) in the past five years. 2.2 PROPOSER’S EXPERIENCE Proposer shall describe its experience serving a minimum of three (3) jurisdictions in California (preferably serving jurisdictions of similar or larger size and similar demographics to the City in a table format. Required information includes: x The name of the jurisdiction where the services were provided. x Commencement date of services and term of the agreement. x The name, address, and telephone number of the jurisdiction representative responsible for administering the agreement. x The services provided (e.g., solid waste collection, recyclable materials, organic materials collection, and other unique collection programs such as e-waste or household hazardous waste). x The number of residential (i.e., specify SFD and MFD), Commercial (i.e., specify cart, bin, roll-off and other) and City (or other) customers served; tons collected, diverted, and disposed annually; and, the type and number of vehicles dispatched per day for each of the services provided. Additionally, please provide at least one municipal citation for service transitions from another hauling company, including a brief description of the old and new services, and service transition dates, as well as the information listed in the first and last bullet above. 2.3 KEY PERSONNEL QUALIFICATIONS Provide an organizational chart and brief biographical description of the key personnel the proposer would assign to the transition team and the ongoing management of the services to be provided under 7.2.a Packet Pg. 299 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 23 the Agreement. Specify the percentage of time each individual will be assigned to services specified in the Franchise Agreement. Identify municipalities who have worked with the key personnel. Indicate which key personnel will be designated as the contractor liaison, service liaison, contractor representative, and emergency contact. 2.4 PROPOSER’S PAST AND PENDING LITIGATION List all civil or misdemeanor or felony criminal court or administrative filings by and/or against California government agencies that are currently pending and/or that have been filed, settled or otherwise received a disposition within the last ten years that relate to the provision of solid waste service listing the names of the parties, the case number, and a brief description of the case and disposition, if any. This paragraph is applicable to the following persons and entities: x The key personnel x The owners and officers of the company x The entity submitting the proposal; and/or, x Any parent or affiliated company for actions filed in the State of California (For affiliates, proposer may limit disclosures of non-criminal matters to those in the Los Angeles County. x Any strategic partners or subcontractors identified in RFP. x Include the resolution and current status of each civil legal action. Note: The term "affiliate" as used in this RFP is defined in Article 1 of the Agreement. 2.5 FINANCIAL INFORMATION Provide the following financial information for the most recently completed fiscal year for the proposer or, if a corporate guaranty is to be provided, for the guarantor: x The type of financial statements (audited or reviewed) and the corporate entity that they represent (proposer or corporate guarantor). x The most recently completed fiscal year for which financial statements are available. x Annual revenue from the most recently completed financial statements. x Current Assets to Current Liabilities ratio (current assets/current liabilities) from the most recently completed financial statements. x Total Liabilities to Total Assets ratio (total liabilities/total assets) from the most recently completed financial statements. Upon request, proposers must submit the financial statements upon which the requested financial information is based within five (5) business days of the request. Statements must be prepared and presented in accordance with Generally Accepted Accounting Principles applied on a consistent basis and must include a statement by the chief financial officer of the proposer’s company that there has been no material adverse change in conditions or operations, as reflected in the submitted balance sheets, income statements and cash flow statements, since the date on which they were prepared. 7.2.a Packet Pg. 300 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 24 Proposers requested to submit financial statements may submit a single copy, stamped “confidential” and request for its return upon completion of the procurement process. The City will attempt to maintain the confidentiality of such a request, although confidentiality cannot be guaranteed. The selected proposer will be required to submit “reviewed” or “audited” financial statements that demonstrate reasonable financial resources and stability to the satisfaction of the City. If awarded the contract, the financial statements shall remain with the City. 2.6 INSURANCE Proposer must submit evidence that the proposer either has, or is able to obtain, the insurance coverage required in the draft Agreement Section 9. 3. PROPOSAL FOR SOLID WASTE SERVICES Proposer shall describe how it plans to perform the solid waste services requested in this RFP and described in the Draft Franchise Agreement. Information must separately address all materials collected for Residential, Multi-family, Commercial, and City facilities. 3.1 COLLECTION SERVICES APPROACH Proposer shall include detailed responses for each component of their collection approach, including at a minimum the categories listed below. If the strategies and/or assumptions are different for each organic material processing approach, provide details for each approach. Label each approach to correspond with the respective rate proposal. x Routing strategy and productivity assumptions by service sector (SFD, MFD, Commercial and City facilities); discussion of special routing (if any) for collecting in narrow streets, courts, and alleys; and route productivity assumptions (in terms of SFD acc ounts per route per day and MFD/Commercial lifts per route per day) and where these productivity assumptions have been accomplished in other cities serviced by the proposer. x Collection methodology (e.g., automated, semi-automated, one- or two-person crews, etc.), including discussion of special methods (if any) for collecting in any hard-to-service areas. x Number of and description of the collection vehicles to be utilized including make, model, and year, body type, yardage capacity, tonnage capacity, type of renewable natural fuel to be used, waste stream(s) to be collected (refuse, recycling, organics), cost, and lease or ownership arrangements. New vehicles are required for residential and MFD, commercial, and City collection services. x This requirement is primarily to ensure that comparable rate proposals are submitted. The City reserves the right to allow the contractor to provide used collection vehicles. x New or used vehicles may be used for support vehicles. 7.2.a Packet Pg. 301 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 25 x Manufacturer’s specifications of containers to be utilized. New carts shall be provided for residential and multi-family dwellings that use carts services and new or used containers (i.e. bins and drop boxes) may be provided for customers that are serviced with bins (i.e. MFD/Commercial/City customers). x Container requirements are described in draft Agreement Section 7.10. Proposer shall supply complete technical data and manufacturing specifications on the specific cart, bins and Drop Boxes being used. 3.2 CUSTOMER SERVICE CENTER Proposer shall describe the management systems and customer service systems its company uses to manage inquiries and complaints received from residential and commercial customers. The description of the management systems and customer service systems may include: x Description of system capability and/or procedures to ensure timely accessibility of information by jurisdictions served. x Description of procedures used to satisfactorily respond to, record, and report common customer complaints such as: missed pick-ups; spills and litter resulting from collection; collection schedule changes; broken or missing containers; improperly prepared setouts; noise complaints; traffic and sidewalk obstruction during collection; and safety around collection vehicles during operations. x Description as to whether individual call centers are established for each of the proposer’s service areas or if customer calls are handled by a centralized call center, and location of the proposed call center. x Description of how the customer service information interfaces with route data and billing data. x Description of how the company measures customer service about the call center’s responsiveness and accuracy of responses, as well as the quality of collection service. Identify specific performance metrics or targets your company tracks. x Identify the website that its customers use to obtain customer rates and service information, diversion services and requirements, and to submit inquiries or complaints. Provide website address. 3.3 IMPLEMENTATION PLAN Provide an implementation schedule that demonstrates ability to implement the services in accordance with the service start date, including meeting equipment, personnel, administration, maintenance, and public education requirements. 7.2.a Packet Pg. 302 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 26 3.4 AB 341, AB 1826, AND SB 1383 IMPLEMENTATION PLAN Proposer shall provide an AB 341, AB 1826, and SB 1383 implementation plan detailing planned tasks, procedures, and schedule to ensure the City’s compliance with AB 341, AB 1826, and SB 1383. The plan should address the following requirements. A description of proposer’s public education and outreach plans that comply with all CalRecycle requirements for Outreach and Education, Monitoring and Reporting, and Performance Standards and other applicable regulations. The plan shall include, at a minimum, the following components: x Timeline x Description of all proposed activities x Description of all proposed printed materials and electronic content x Examples of materials and content the proposer has developed for other jurisdictions (proposer may include materials as an attachment or provide images of the material within the proposal text). x Description of labels to be attached to containers that clearly indicate the accepted and prohibitive materials to be placed in containers. Labels shall comply with CalRecycle guidelines for labeling/signage. x Proposed continued outreach efforts to increase participation in recycling and organics programs, including use of direct mail, community workshops, development of how-to videos, dedicated website, community events, school outreach, etc. x Proposed contamination monitoring procedures including performing route reviews and or waste evaluations. 3.5 FOOD RESCUE AND DONATION PROGRAM Describe proposed efforts to assist the City and its customers with a food rescue and donation program to comply with SB 1383 which establishes a target that not less than 20% of currently disposed edible food is recovered for human consumption by 2025. 3.6 ORGANICS RECYCLING PROGRAM Describe proposed organics recycling program including type of containers proposed. Proposers should include detailed information on customer in-house preparation of material prior to disposal (e.g., bag or no bag requirements); include a comprehensive list of organic materials that are acceptable in each of the programs listed above, and a comprehensive list of organic materials that are not accepted in the program. Also, proposers are requested to submit samples of outreach materials already distributed to customers in a city with a similar program in place if proposer has implemented such program. Please describe your intended approach and activities related to SB 1383 organic waste collection and recycling 7.2.a Packet Pg. 303 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 27 services, education and outreach, capacity planning, procurement of organic waste products, reporting, contamination monitoring, and other compliance activities. 3.7 RECYCLABLE MATERIALS Specify all materials that can be recycled through the residential, multi-family and commercial recycling programs. 3.8 PROCUREMENT OF RECOVERED ORGANIC WASTE PRODUCTS Describe proposed assistance to the City to ensure that sufficient California recovered organic waste products are procured on behalf of the City to meet the requirements of SB 1383. Identify types and quantities of recovered organic waste products which shall be procured. 3.9 PROPOSED OPERATING FACILITIES Provide information about proposed operating facilities, including: x Yard address for equipment and personnel staging and arrangements for maintenance of equipment. x Office address for customer service, public relations, billing, and franchise administration; and, x Other operating facilities to be used in providing service under this agreement. 3.10 PROPOSED DISPOSAL, TRANSFER, AND PROCESSING FACILITIES Proposers must identify all proposed disposal, transfer, and processing facilities for transfer/disposal of refuse, processing of commingled recyclables, processing of organics, processing of mixed waste, and processing of construction and demolition debris. For each facility, please identify the following: x The name, address, and SWIS # of the facility. x The material to be processed (organic waste, commingled recyclables, mixed waste, or construction and demolition debris). x The tipping fee per ton. x A statement regarding any relationship between the proposer and the facility owner/operator (if any). x Indicate any proposed solid waste facility capacity guarantees. x Current and estimated diversion rate for processing of each waste stream (e.g., residential recyclables, residential organics, source-separated commercial recyclables, mixed commercial waste, commercial organics, C&D.) 7.2.a Packet Pg. 304 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 28 4. DISPLACED EMPLOYEE RETENTION In accordance with Labor Code Sections 1070, 1072, 1075, and 1076, proposer will offer employment to qualified existing employees of the current contractor that may be displaced if the current contractor is not retained. Please describe your procedures for offering such employment and any limitations. Please describe whether your company operates under a labor collective bargaining agreement. 5. EXCEPTIONS TO THE AGREEMENT The City expects that the successful proposer(s) will execute an Agreement with the City in substantially the same form as the Draft Agreement (as it may be changed via Addendum during the RFP process). Proposers are required to carefully review the Agreement before submitting proposals and are encouraged to have it reviewed by legal counsel. Proposers are also encouraged to submit written questions about any provision in the Agreement not fully understood, which would appear to be inconsistent with other provisions or otherwise incorrect, or which may deter them from submitting a Proposal or significantly increase the rate of their Proposal. To demonstrate agreement with to all terms and conditions of the draft Agreement as written, proposers are required to sign and include in their proposal the signature page of the draft Agreement. Any exceptions must include the nature of the proposed exception, the draft Agreement Section, proposed substitute language, and the change in costs that would take place if the proposed language were to be accepted by the City. The proposal is not considered complete without this signed page. The number, nature and materiality of objectionable provisions and suggested changes to the Agreement will be considered in evaluating proposals. 6. RATE PROPOSALS 6.1 PRIMARY RATE PROPOSAL FORMS Proposers may submit up to three complete sets of rate proposal forms: one for the residential sector, one for the commercial sector, and one for a citywide franchise. These proposals shall be based solely on the requirements requested in this RFP and further detailed in the draft Agreement without considering any exceptions or alternatives. 6.2 ALTERNATIVE RATE PROPOSALS Provided that the proposer has submitted a primary rate proposal that meets all of the minimum requirements of this RFP, the proposer may submit one or more alternative rate proposals. For example, proposer may submit an alternative rate proposal that retains existing used equipment. 7.2.a Packet Pg. 305 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3, 2023 Page 29 7. PROPOSER CODE OF CONDUCT AND NON-COLLUSION AFFIDAVIT Each proposer shall include a copy of the Proposer Code of Conduct and Non-Collusion Affidavit (Attachment 2) that was submitted at the pre-proposal conference. 7.2.a Packet Pg. 306 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3, 2023 Page 30 SECTION 6 - PROPOSAL EVALUATION PROCESS This section describes the proposed process for evaluation of proposals and selection of Contractor(s). Note that the City reserves the right to modify this process in any way and at any time during the RFP and contractor selection process. EVALUATION AND SELECTION PROCESS An evaluation report, including a comparative description of the proposals, evaluation results, and a recommendation, will be prepared and presented to City Council. The City Council will review the recommendation and may approve that recommendation or form an alternative recommendation. During the evaluation process, proposers are required to allow site visits, and give presentations to the City and may be required to attend interviews. 7.2.a Packet Pg. 307 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3, 2023 Page 31 PROPOSAL EVALUATION CRITERIA The proposal will be objectively evaluated based on criteria that may include, but is not limited to, the following factors. PROPOSER’S QUALIFICATIONS x Collection Experience. Demonstrated experience of company providing the requested or similar services to other jurisdictions. If the proposer is a joint venture, demonstrated experience of parties working together. x Jurisdiction Satisfaction. Satisfaction of proposer references with services received, including but not limited to, implementation, customer services, reporting, assistance developing diversion programs, and working cooperatively with City staff. x Management and Customer Service Systems. Demonstrated capabilities of the company’s existing management and customer service systems’ abilities to track and monitor contract compliance, quality of collection service, and call center responsiveness. x Key Personnel Qualifications. Extent and relevance of the qualifications and experience of key personnel proposed for the transition team and on-going management of the City’s collection operations. TECHNICAL QUALIFICATIONS x Implementation Plan. Reasonableness of implementation schedule and ability to meet deadlines (e.g., reasonableness of equipment procurement schedules, implementation staffing levels, public education program, itemized steps for initiation, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution, new corporation or maintenance yard development, contingency plans, etc. o Customer Service. Customer service approach, staffing levels, and City-specific training programs. o Billing System. Billing approach and procedures for handling customer billing activities. o Collection Approach. Reasonableness and reliability of the proposed collection methods (e.g., technology, equipment, and containers); reasonableness of productivity and operating assumptions (i.e., number of routes, route drivers, route hours, stops per route, and other operating statistics), if applicable; and reasonableness of assumptions. x AB 341, AB 1826, and SB 1383 Implementation Plan. Completeness of proposed services, public education program, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution. x Diversion Outreach and Education Programs. The nature, reliability, and innovation of proposed diversion programs and potential of such programs to divert solid waste from landfill disposal and meet diversion requirements. Compatibility of the proposed education program, staffing level, and program ideas with the needs of the City; and, the quality of public education samples relative to other proposers. Likelihood of diversion programs to meet State-mandated outreach 7.2.a Packet Pg. 308 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3, 2023 Page 32 and education, diversion monitoring and reporting and performance measurement requirements. x Proposed Operations Facilities. Plan for providing the facilities needed for equipment storage and parking, maintenance, and administration. Level of assurance provided, if any, about site acquisition and timely development of necessary facilities if not proposing an existing, operational and permitted facility. x Proposed Disposal, Transfer, and Processing Facilities Reasonableness and reliability of the proposed facilities for disposal, transfer, and processing of solid waste, recyclable materials, and organic materials, including documentation of existing facility permitting/approvals and/or guarantee of sufficient capacity for tonnage from the City service area, and the reasonableness of proposed material transport plans. NUMBER AND MATERIALITY OF EXCEPTIONS TO AGREEMENT The number, nature, and materiality of suggested changes to the Agreement will be considered in evaluating proposals. FINANCIAL x Financial Stability. Financial stability of proposer based on its financial ratios and other financial considerations. x Insurance. Demonstrated ability of proposer to obtain adequate insurance. RATE PROPOSAL x Reasonableness of Rate Proposals. The logical relationship between proposed rates and operational assumptions. x Competitiveness of Rate Proposals. The competitiveness of the overall revenue requirement is evaluated relative to other proposals. ALTERNATIVE PROPOSALS The City is not obligated to evaluate or select alternative proposals. Alternative proposals will be considered by the City if the City concludes, in its sole discretion, that the alternative proposals warrant evaluation and analysis. Such evaluation will consider the reasonableness and reliability of proposed collection methods, technology, equipment, and containers; and the reasonableness of productivity and operating assumptions (i.e., number of routes, route drivers, route hours, stops per route, program diversion levels, and other operating statistics considered as pertinent by the City and its consultants). At the City’s option, the reasonableness and competitiveness of one or more alternative proposal(s) may be evaluated. 7.2.a Packet Pg. 309 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3, 2023 Page 33 AWARD Proposals must be complete and must conform to the requirements of this RFP as to form and content. The franchise or franchises will be awarded for the proposal or proposals that offer the greatest value to the City. The City, however, reserves the right to reject any or all proposals, to accept or reject any one or more items of a proposal, or to waive any minor irregularities or informalities in the proposal. City Council will select the proposal or proposals that it determines to best serve the City and is not bound to follow the recommendation of City staff or City staff’s proposal evaluations in making its selection. It is anticipated that all services described in this RFP will be contracted for. However, the City reserves the right to change such service descriptions prior to award. 7.2.a Packet Pg. 310 City of Diamond Bar, California Attachments RFP for Solid Waste Services May 3, 2023 Page 34 LIST OF ATTACHMENTS ATTAHCMENT 1: DRAFT AGREEMENT ATTACHMENT 2: PROPOSER CODE OF CONDUCT AND NON-COLLUSION AFFIDAVID ATTACHMENT 3: SERVICE DATA ATTACHMENT 4: CURRENT RATES ATTACHMENT 5: CITY FACILITIES ATTACHMENT 6: RATE PROPOSAL FORMS ATTACHMENT 7: RATE ADJUSTMENT METHODOLOGY ATTACHMENT 8: PROPOSAL OUTLINE 7.2.a Packet Pg. 311 City of Diamond Bar, California Attachment 2. Proposer’s Code of Conduct & Non-Collusion Affidavit RFP for Solid Waste Services May 3, 2023 Page 1 PROPOSER’S CODE OF CONDUCT The City of Diamond Bar is planning to request and receive proposals for the collection and processing of refuse, recyclable materials and organics within the jurisdiction of the City. The members of the City Council are obligated to comply with the Political Reform Act of 1974 (“PRA”) and the Brown Act (Government Code §56950 et seq.). The City has a desire to maintain a process free from any undue influence and the appearance of impropriety. The City prepared this “Proposer’s Code of Conduct”. A potential proposer is defined as any individual or entity involved in making a proposal to the City under the Contractor Selection Process (“Potential Proposer”). Each Potential Proposer is individually responsible for ensuring compliance with the following Code of Conduct. The Potential Proposer’s responsibility to comply with this Code of Conduct shall extend to the Potential Proposer’s employees, agents, consultants, lobbyists, or other parties or individuals engaged for the purposes of developing or supporting the Potential Proposer’s proposal. The Proposer Code of Conduct is presented below: 1. Ex Parte Prohibited From January 16, 2023, and prior to the City of Diamond Bar City Council selection of Contractor or [Month, Day, 2023], whichever comes later, Potential Proposers are prohibited from having any verbal or written communications (ex parte contacts) with any City Council Members related to any matter related to the RFP process or Contractor Selection process, except in the course of a legally noticed meeting of the City Council, or any subcommittee of the Council, or in conjunction with an ex parte contact arranged by and involving the City staff and/or consultants. If any such unauthorized ex parte contact occurs, the Council member shall disclose its occurrence at the next meeting of the City Council that next follows the said ex parte contact. 2. Gift and Compensation Prohibited From January 16, 2023, to prior to City Council selection of Contractor or [Month, Day, 2023], whichever comes later, Potential Proposers are prohibited from giving any gift of any monetary value, or compensation of any kind (as defined under the California Political Reform Act) to a City Council Member or any City staff member or consultant. Please be aware that any Council Member who accepts such a gift or compensation may be subject to censure by the City Council. Any City staff member who violates this policy may be subject to discipline including termination of services, and any consultant who violates this policy may be subject to 7.2.a Packet Pg. 312 City of Diamond Bar, California Attachment 2. Proposer’s Code of Conduct & Non-Collusion Affidavit RFP for Solid Waste Services May 3, 2023 Page 2 termination of services. Any Potential Proposer who violates this policy as to gifts or compensation may be subject to disqualification by the City Council from the Contractor Selection Process. 3. Collusive Activities Prohibited From May 2023, to prior to City Council selection of Contractor or November 13, 2023, whichever comes later, collusive activities among Potential Proposers are expressly forbidden and will likely result in immediate disqualification from the Contractor Selection Process. If two or more Potential Proposers are developing a joint proposal, the Potential Proposers must notify Sloan Vazquez McAfee (see contact information provided below) in writing no later than thirty (30) days prior to the deadline for submission of proposals. This notification will be kept confidential until after submission of all technical and cost proposals. Executed under penalty of perjury on this day of , 2023 at SIGNED BY: TITLE: Subscribed and sworn to before me this day of , 2015 at Notary Public My Commission expires: 7.2.a Packet Pg. 313 City of Diamond Bar, California Attachment 2. Proposer’s Code of Conduct & Non-Collusion Affidavit RFP for Solid Waste Services May 3, 2023 Page 3 PROPOSER’S NON-COLLUSION AFFIVDAVIT The following affidavit is submitted by proposer as a part of this proposal: The undersigned deponent, of lawful age, being duly sworn, upon his oath deposes and says: that he has lawful authority to execute the within and foregoing proposal; that he has executed the same by subscribing his name hereto under oath for and on behalf of said proposer; that proposer has not directly or indirectly entered into any agreement, express or implied, with any proposer or proposers, having for its object the controlling of the price or amount of such proposal or proposals, the limiting of the proposals or proposers, the parceling or framing out to any proposer or proposers or other persons of any part of the agreement or any part of the subject matter of the proposal or proposals or of the profits thereof, and that he has not and will not divulge the sealed proposal to any person whomsoever, except those having a partnership or other financial interest with him in said proposal or proposals, until after the said sealed proposal or proposals are opened. Deponent further states that the proposer has not been a party to any collusion among proposers in restraint of freedom of competition; by agreement to make a proposal at a fixed price or to refrain from submitting a proposal; or with any state official or employee as to quantity, quality, or price in the prospective agreement; or in any discussions between proposers and any City of Diamond Bar official concerning exchange of money or other things of value for special consideration in the letting of an agreement; that the proposer/Company has not paid, given or donated or agreed to pay, give or donate to any official, officer or employee of the City of Diamond Bar directly or indirectly, in the procuring of the award of agreement pursuant to this proposal. Executed under penalty of perjury on this __ day of ___ , 2015 at . SIGNED BY: TITLE: Subscribed and sworn to before me this ___ day of ____ , 2023 at . Notary Public My Commission expires: 7.2.a Packet Pg. 314 City of Diamond Bar, California Attachment 3. Description of Service Area RFP for Solid Waste Services May 3, 2023 Page 1 DESCRIPTION OF SERVICE AREA The City of Diamond Bar encompasses 14.88 square miles and is surrounded by the City of Walnut to the northwest, Pomona to the northeast, Chino Hills to the southeast, Brea to the south, and Rowland Heights to the west. According to the California Department of Finance, population and housing estimates for the City as of January 1, 2022 are as follows: Population 54,204 Single Family Detached 13,587 Total Dwelling Units Single Family Attached 1,767 Percent Vacant 3.4% Multi-Family 2 to 4 Units 1,071 Persons per Household Multi-Family 5 Plus Units 2,048 2.97 Mobile Homes 368 This census information is meant to provide an overview of the City. QTR Commercial Roll-Off ResidentialGross Receipts QTR Commercial Roll-Off Residential Gross Receipts1Q2292,755 28,096 1,327,052 $1,447,9031Q22591,671 69,809 $661,4802Q2278,945 51,283 1,308,675 $1,438,9022Q22520,682 63,835 $584,5163Q22111,618 37,670 1,507,617 $1,656,9053Q22544,686 67,733 $612,4194Q2289,065 41,457 1,457,052 $1,587,5754Q22560,720 52,467 $613,186Total$372,383 $158,506 $5,600,396 $6,131,285Total$2,217,758 $253,843 $2,471,601QTR Commercial Roll-Off ResidentialGross Receipts QTR Commercial Roll-Off Residential Gross Receipts1Q2161,292 51,090 1,324,109 $1,436,4911Q21504,809 44,302 $549,1102Q21108,138 43,333 1,323,789 $1,475,2592Q21490,241 46,907 $537,1483Q2199,530 38,778 1,323,918 $1,462,2263Q21514,556 51,986 $566,5424Q21107,788 49,403 1,320,894 $1,478,0854Q21491,769 77,287 $569,056Total$376,748 $182,603 $5,292,709 $5,852,061Total$2,001,375 $220,481 $2,221,856RATE REVENUECommercialResidential7.2.a Packet Pg. 315 City of Diamond Bar, California Attachment 3. Description of Service Area RFP for Solid Waste Services May 3, 2023 Page 2 QTR Refuse Recycled Green Waste Total Collected Landfilled Diverted % Diverted1Q223,601.9 943.7 1,576.56,122.11Q222,792.3 1,889.9 902.40.32Q223,764.0 909.3 1,993.66,666.92Q222,830.9 1,928.6 902.30.33Q223,713.3 902.8 1,848.86,464.93Q223,023.1 1,975.3 1,047.80.34Q223,564.2 884.3 1,621.96,070.54Q222,724.1 1,868.3 855.80.3Total14,643.4 3,640.1 7,040.9 25,324.4Total11,370.57,662.1 3,708.40.3Refuse Recycled Green Waste Total Collected Landfilled Diverted % Diverted1Q213,768.9 943.4 1,668.46,380.71Q213,410.4 2,637.6 772.80.22Q213,936.6 963.0 2,084.46,984.02Q213,843.4 2,924.4 919.00.23Q213,960.8 870.9 1,865.56,697.13Q214,077.5 3,099.7 977.90.24Q213,807.3 992.0 1,620.16,419.54Q214,485.0 3,377.6 1,107.40.2Total15,473.5 3,769.2 7,238.5 26,481.3Total15,816.312,039.3 3,777.00.2TONNAGECommercialResidentialRO ROQTR Refuse Recycled Total Refuse QTR1Q2245.5 71.1 116.610.01Q222Q22119.2 221.5 340.815.22Q22C&D Not reported separately3Q2298.9 103.4 202.352.43Q224Q22171.8 120.1 291.9113.24Q22Total435.4 516.1 951.5 190.9TotalQTR Refuse Recycled Total Refuse1Q21105.4 211.0 316.416.62Q2170.5 136.7 207.25.43Q2194.8 193.2 288.08.74Q2169.8 139.4 209.20.0Total340.4 680.3 1,020.7 30.7C&DC&D7.2.a Packet Pg. 316 City of Diamond Bar, California Attachment 3. Description of Service Area RFP for Solid Waste Services May 3, 2023 Page 3 Size 123456On CallTotal Size 123456On CallTotal1st Bin 70 Gals107107 70 Gals107 2109Addl01st Bin 98 Gals3398 Gals0Addl1101st Bin 1.5 CY881.5 CY22Addl001st Bin 2 CY14 4 2 1212 CY11Addl01st Bin 2CY Comp112CY Comp0Addl001st Bin 3 CY68 54 55 14 10 8 12103 CY89320Addl41 83 91 24 8 17 226613131st Bin 4 CY5911222314 CY112Addl52 1210 01st Bin 6 CY31596 CY0Addl110Total250 156 168 41 21 29 3 668Total119 23 3 0 0 0 2 147Scout818 228Scout0Lock Lids33 20 14 4 1 375Lock Lids98219Size 123456On CallTotalSize 1 2 3 4 5 6On CallTotal1st Bin 2611121120Addl2013201st Bin 70138 5 31467011Addl89 3 19370111st Bin 9893113980Addl1113980Total2451381200269Total20000002Valet66Lock Lids123CONTAINERSCOMMERCIALORGANICSGREEN WASTEWeekly Collection FrequencyWeekly Collection FrequencyMSWCO-MINGLED RECYCLINGWeekly Collection FrequencyWeekly Collection Frequency7.2.a Packet Pg. 317 City of Diamond Bar, California Attachment 3. Description of Service Area RFP for Solid Waste Services May 3, 2023 Page 4 MON TUE WED THU FRI MON TUE WED THU FRIRefuse4.0 3.0 2.5 3.0 2.5 2.0 2.0 2.0 2.0 2.0 Recycle3.5 5.0 2.3 2.0 1.5 0.5 0.5 0.5 0.5 0.5 Green2.5 3.0 2.3 3.0 2.5 0.5 0.5 0.5 0.5 0.5 Bulky0.5 Total10.0 11.0 7.0 8.0 7.0 3.0 3.0 3.0 3.0 3.0 MON TUE WED THU FRI MON TUE WED THU FRIRefuse4.5 3.5 2.5 3.5 2.5 2.0 2.0 2.0 2.0 2.0 Recycle3.5 5.0 2.5 3.0 2.5 0.5 0.5 0.5 0.5 0.5 Green2.5 3.0 2.0 2.0 1.5 0.5 0.5 0.5 0.5 0.5 Bulky0.5 0.5 0.5 0.5 Total11.0 12.0 7.0 9.0 7.0 3.0 3.0 3.0 3.0 3.0 VEHICLESResidentialCommercialResidentialCommercial7.2.a Packet Pg. 318 DIAMOND BAR RFP ATTACHMENT 4 - CURRENT RATES 7.2.a Packet Pg. 319 DIAMOND BAR RFP ATTACHMENT 4 - CURRENT RATES 7.2.a Packet Pg. 320 DIAMOND BAR RFP ATTACHMENT 4 - CURRENT RATES 7.2.a Packet Pg. 321 DIAMOND BAR RFP ATTACHMENT 4 - CURRENT RATES 7.2.a Packet Pg. 322 City of Diamond Bar, California Attachment 5. City Facilities RFP for Solid Waste Services May 3, 2023 Page 1 LIST OF CITY FACILITIES Site AddressContainer QuantityContainer SizeCollection FrequencyCollection Days Material DescriptiionDiamond Bar Center 1600 Grand Ave 3 3 YD 3 Mon, Thu, Sat MSW 3 Yd Front Load Weekend ServiceDiamond Bar Center 1600 Grand Ave 1 3 YD 1 Tue CO-MINGLE 3 Yd Front Load Recycling Service w/ Locking Lid-Co-mingledDiamond Bar Center 1600 Grand Ave 1 70 G 1 Fri ORGANICS 70 Gallon Service - Commercial OrganicCity Of Diamond Bar 21810 Copley Dr 1 3 YD 3 Mon, Tue, Fri CO-MINGLE 3 Yd Front Loader Recycling Service-Co-mingledCity Of Diamond Bar 21810 Copley Dr 1 3 YD 3 Mon, Wed, Fri MSW 3 Yd Front Load ServiceCity Of Diamond Bar 21810 Copley Dr 1 98 G 2 Mon, Fri ORGANICS 98 Gallon Service - Commercial OrganicCity Of Diamond Bar 21810 Copley Dr 1 N/A Storage Box Rental Rate/MonthCity Of Diamond Bar 21810 Copley Dr 1 O/C Storage BoxMaple Hill Park 1355 Maple Hill Rd 2 3 YD 1 Thu MSW 3 Yd Front Load ServiceHeritage Park 2900 S Brea Canyon Rd 2 3 YD 2 Tue, Sat MSW 3 Yd Front Load Weekend ServiceHeritage Park 2900 S Brea Canyon Rd 1 98 G 1 Fri ORGANICS 98 Gallon Service - Commercial OrganicHeritage Park 2900 S Brea Canyon Rd 2 98 G 1 Thu MSW 98 Gallon Service - ResidentialPantera Park(bin) 738 Pantera Dr 1 3 YD 1 Wed MSW 3 Yd Front Load ServicePantera Park(bin) 738 Pantera Dr 1 98 G 1 Thu MSW 98 Gallon Service - ResidentialPeterson Park(bin) 24142 Sylvan Glen Rd 1 3 YD 2 Tue, Sat MSW 3 Yd Front Load Weekend ServicePeterson Park(bin) 24142 Sylvan Glen Rd 1 98 G 1 Thu MSW 98 Gallon Service - ResidentialRonald Reagan Park 2201 Peaceful Hills Rd 1 3 YD 2 Tue, Sat MSW 3 Yd Front Load Weekend ServiceSycamore Park 22930 Golden Springs Dr 3 3 YD O/C MSW 3 Yd Front Load Service w/ Locking LidSycamore Park 22930 Golden Springs Dr 1 6 YD 3 Tue, Thu, Sat MSW 6 Yd Front Load Weekend ServiceSycamore Park 22930 Golden Springs Dr 1 40 Y 2 Tue, Thu MSW 40 Yd Roll Off-Permanent TrashSycamore Park 22930 Golden Springs Dr 1 70 G 1 Thu ORGANICS 70 Gallon Service - Commercial OrganicLorbeer Middle School(BIN) 501 S Diamond Bar Bl 1 3 YD 2 Mon, Thu MSW3 Yd Front Load Service7.2.a Packet Pg. 323 Instructions: Input data requested in FORMS 1.1 through 1.8. Only input into green colored cells. FORM Content 1.1 Costs Summary 1.2 Not Used 1.3 Direct Labor - (Route related labor) 1.4 Indirect Wages (Vehicle R&M, Container R&M, and Management) 1.5 Equipment R&M 1.6 Allocated Costs (to line of business, e.g. SFD, Commercial, Roll-Off) 1.7 Capital Expenditures (CapEx) 1.8 Disposal & Processing Costs SUPPORTING COSTS & ROUTE DETAIL WORKSHEETS CITY WIDE RFP ATTACHMENT 6 City of Diamond Bar 1 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 324 Form 1.1 Costs Summary PROPOSER: OPTION: ABCDE SFD Commercial Roll-Off & On- Call Services Total Year-One Annual Cost 1 Direct Wages & Benefits $0 $0 $0 $0 2 Route Vehicle Depreciation $0 $0 $0 $0 Vehicle Repair & Maintenance 3 Wages & Benefits $0 $0 $0 $0 4 Parts & Supplies $0 $0 $0 $0 5Fuel $0 $0 $0 $0 6 Depreciation Other $0 $0 $0 $0 Subtotal Vehicle R&M $0 $0 $0 $0 Container Repair & Maintenance 7 Wages & Benefits $0 $0 $0 $0 8 Parts & Supplies $0 $0 $0 $0 9 Container Depreciation $0 $0 $0 $0 10 Depreciation Other $0 $0 $0 $0 Subtotal Container R&M $0 $0 $0 $0 11 Other Indirect Costs $0 $0 $0 $0 12 Total Operations Costs $0 $0 $0 $0 Management & Admin. 13 Wages & Benefits $0 $0 $0 $0 14 Other G&A Costs $0 $0 $0 $0 15 Depreciation $0 $0 $0 $0 16 Subtotal Management & Admin $0 $0 $0 $0 17 Disposal & Processing Costs $0 $0 $0 $0 Interest Expense 18 Route Vehicle Interest $0 $0 $0 $0 19 Vehicle R&M Interest $0 $0 $0 $0 20 Container Interest $0 $0 $0 $0 21 Container R&M Interest $0 $0 $0 $0 22 Other Interest $0 $0 $0 $0 Total Interest Expense $0 $0 $0 $0 23 TOTAL COSTS BEFORE PROFIT $0 $0 $0 $0 24 Profit Percent Assumption 0.0% 25 Profit Assumption $0 $0 $0 $0 26 Estimated Contractor Compensation $0 $0 $0 $0 Instructions: 1. Enter Proposer name above. 2. Enter the assumed profit percentage in row 25, columns B - D and F. References to column letters and row numbers are to those inserted into the worksheet. Only populate green colored cells. Avoid overwriting aqua colored cells. ENTER PROPOSER NAME CITY WIDE City of Diamond Bar 2 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 325 Form 1.3 - Direct LaborABCDEFGHIJDirect Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours1 ASL Driver $0 $0 0.00 0.0% 0.0%2 Front Load Driver $0 $0 0.00 0.0% 0.0%3 Helper $0 $0 0.00 0.0% 0.0%4$0 $0 0.00 0.0% 0.0%5$0 $0 0.00 0.0% 0.0%6$0 $0 0.00 0.0% 0.0%7$0 $0 0.00 0.0% 0.0%8$0 $0 0.00 0.0% 0.0%9$0 $0 0.00 0.0% 0.0%10$0 $0 0.00 0.0% 0.0%11Total Single-Family - - $0 $0 $00.00 0.0% 0.0%Only populate green colored cells. Avoid overwriting aqua colored cells.SFDPROPOSER:ENTER PROPOSER NAMEInstructions: Enter proposed positions in Column A (e.g. MSW Driver, Recycling Driver, etc.) Enter proposed annual regular and overtime hours for SFD, Commercial & Multi-Family, and for Roll-Off & On-Call Services in Columns B and C . Enter Hourly Pay Rate in Column D. Enter Total Benefits & Other Employment Costs in column F to include all employment and fringe benefits costs such as vacation, medical, sick pay, PTO, uniforms, workers' compensation, payroll taxes, etc.CITY WIDEOPTION:City of Diamond Bar3Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 326 Form 1.3 - Direct LaborDirect Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours12ASL Driver $0 $0 0.00 0.0%0.0%13Front Load Driver $0 $0 0.00 0.0%0.0%14Scout Driver $0 $0 0.00 0.0%0.0%15Helper $0 $0 0.00 0.0%0.0%16$0 $0 0.00 0.0%0.0%17$0 $0 0.00 0.0%0.0%18$0 $0 0.00 0.0%0.0%19$0 $0 0.00 0.0%0.0%20$0 $0 0.00 0.0%0.0%21$0 $0 0.00 0.0%0.0%22Total Commercial - - $0 $0 $00.00 0.0%0.0%Direct Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours23 Roll-off driver $0 $0 0.00 0.0% 0.0%24 Flat-bed driver $0 $0 0.00 0.0% 0.0%25$0 $0 0.00 0.0% 0.0%26$0 $0 0.00 0.0% 0.0%27$0 $0 0.00 0.0% 0.0%28$0 $0 0.00 0.0% 0.0%29Total On-Call - - $0 $0 $00.00 0.0% 0.0%30GRAND TOTAL DIRECT LABOR - - $0 $0 $00.00 0.0% 0.0%NOTESROLL-OFF BOX & ON-CALL SERVICES 3COMMERCIAL & MFDCity of Diamond Bar4Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 327 Form 1.3 - Direct Labor1 Enter Employee classifications such as ASL driver, FL Driver, RL Driver, Scout Driver, Roll-Off Driver, Flat-Bed Driver, Relief Driver, Helper, etc.2 All employment costs other than wages but including workers' compensation, payroll taxes, and benefits such as uniforms, medical, pension, vacation, sick pay, PTO, etc.3 Only enter wages related to roll-off box service and temporary bins that have not been captured elsewhere.City of Diamond Bar5Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 328 Form 1.4 - Indirect WagesABCDEFGHIJ1Indirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours2Mechanic$0 $0 0.00 0.0%0.0%3Welder$0 $0 0.00 0.0%0.0%4$0 $0 0.00 0.0%0.0%5$0 $0 0.00 0.0%0.0%6$0 $0 0.00 0.0%0.0%7$0 $0 0.00 0.0%0.0%8TOTAL VEHICLE R&M - - $0 $0 $00.00 0.0%0.0% % Allocation Total9 SFD$010 Commercial$011 Roll-Off$0Must Equal 100%==> 0.0% $0PROPOSER:Instructions: Enter proposed positions in Column A (e.g. Mechanic, etc.) Enter proposed annual regular and overtime hours in Columns B and C . Enter Hourly Pay Rate in Column D. Enter Total Benefits & Other Employment Costs in column F to include all employment and fringe benefits costs such as vacation, medical, sick pay, PTO, uniforms, workers' compensation, payroll taxes, etc. Enter percent allocation to SFD, Commercial and Roll-Off in Rows 10 through 11, Column B.ALLOCATION TO LINE OF BUSINESSENTER PROPOSER NAMEOnly populate green colored cells. Avoid overwriting aqua colored cells.VEHICLE REPAIR & MAINTENANCECITY WIDEOPTION:City of Diamond Bar6Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 329 Form 1.4 - Indirect Wages12Indirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours13Welder $0 $0 0.00 0.0%0.0%14$0 $0 0.00 0.0%0.0%15$0 $0 0.00 0.0%0.0%16$0 $0 0.00 0.0%0.0%17$0 $0 0.00 0.0%0.0%18TOTAL CONTAINER R&M - - $0 $0 $00.00 0.0%0.0% % Allocation Total19 SFD$020 Commercial$021 Roll-Off$0Must Equal 100%==> 0.0% $0ALLOCATION TO LINE OF BUSINESSCONTAINER REPAIR & MAINTENANCE 3City of Diamond Bar7Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 330 Form 1.4 - Indirect WagesIndirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours22Operations Manager $0 $0 0.00 0.0%0.0%23Route Supervisor $0 $0 0.00 0.0%0.0%24$0 $0 0.00 0.0%0.0%25$0 $0 0.00 0.0%0.0%26$0 $0 0.00 0.0%0.0%27$0 $0 0.00 0.0%0.0%28$0 $0 0.00 0.0%0.0%29$0 $0 0.00 0.0%0.0%30$0 $0 0.00 0.0%0.0%31$0 $0 0.00 0.0%0.0%32$0 $0 0.00 0.0%0.0%33$0 $0 0.00 0.0%0.0%34$0 $0 0.00 0.0%0.0%35$0 $0 0.00 0.0%0.0%36$0 $0 0.00 0.0%0.0%37TOTAL MANAGEMENT & ADMIN - - $0 $0 $00.00 0.0%0.0% % Allocation Total38 SFD$039 Commercial$040 Roll-Off$0Must Equal 100%==> 0.0% $041TOTAL INDIRECT WAGES - - $0 $0 $0 - 0.0% 0.0%NOTES1 Enter Employee classifications, e.g. . mechanics, welders, supervisors, operations manager, customer service representatives, etc.2 All employment costs other than wages, workers' compensation and payroll taxes, but including benefits such as; medical, pension, vacation, sick pay, PTO, etc.3 Include all personnel involved in container management, repair and maintenance including container delivery and pick-up drivers, welders, painters, etc.ALLOCATION TO LINE OF BUSINESSMANAGEMENT & ADMINISTRATIONCity of Diamond Bar8Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 331 Form 1.5 Equipment R&M ABCDE Route Vehicle Related Costs SFD Vehicles Commercial Vehicles Roll-Off & On Call Services Vehicles Annual Cost 1 Parts $0 2 Oil $0 3 Tires $0 4 Outside Repairs $0 5 Taxes and Licenses $0 6 Other (Enter Here)$0 7 $0 8 $0 9 Subtotal Vehicle R&M $0 $0 $0 $0 10 Fuel $0 Container Repair & Maintenance SFD Vehicles Commercial Vehicles Roll-Off & On Call Services Vehicles Annual Cost 11 Parts & Supplies $0 12 Other (Enter Here)$0 12 $0 13 $0 14 Subtotal Container O&M $0 $0 $0 $0 15 Total Container R&M $0 $0 $0 $0 Instructions: Enter route vehicle repair and maintenance costs. The cost categories in Column A are provided as examples. Each proposer is to enter descriptions consistent with their own cost classification. Only populate green colored cells. Avoid overwriting aqua colored cells. PROPOSER: OPTION: ENTER PROPOSER NAME CITY WIDE City of Diamond Bar 9 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 332 Form 1.6 Allocated Costs ABCDEF Vehicle Repair & Maintenance Container Management, Repair & Maintenance Management & Administrative Total 1. Other Indirect Costs 1 2 (Enter Description)$0 3 (Enter Description)$0 4 (Enter Description)$0 5 (Enter Description)$0 6 (Enter Description)$0 7 (Enter Description)$0 8 $0 9 $0 10 $0 11 Subtotal Other Indirect Cost $0 $0 $0 $0 2. Management & Administrative Costs 2 12 (Enter Description)$0 13 (Enter Description)$0 14 (Enter Description)$0 15 (Enter Description)$0 16 (Enter Description)$0 17 (Enter Description)$0 18 (Enter Description)$0 19 (Enter Description)$0 20 (Enter Description)$0 21 $0 22 $0 23 $0 24 $0 25 $0 26 $0 27 $0 28 $0 29 $0 30 $0 31 $0 32 Subtotal Management & Administrative Cost $0 $0 $0 $0 33 3. Other Depreciation (From CapEx YR-1) $0 $0 $0 $0 34 4. Other Interest (From CapEx YR-1) $0 $0 $0 $0 35 Total Costs to be Allocated $0 $0 $0 $0 ENTER PROPOSER NAMEPROPOSER: Only populate green colored cells. Avoid overwriting aqua colored cells. Instructions: Enter other indirect costs for Rows 2 to 10 and rows 12 to 31, in columns C, D E. The cost categories in Column A are provided as examples. Each proposer is to enter descriptions consistent with their own financial plan. Please note that Item 3. 'Other Depreciation' is populated from Form 1.7 'Cap-Ex', Column G, Row 62, 71, & 80; and Item 4. 'Interest Expense' is populated from Form 1.7 Cap-Ex, Column I, Row 62, 71, & 80 (all references to rows and columns in form not worksheet). Beginning with Item 5 and through Item 8, enter percentage allocation in Column B. Totals must equal 100% for each section. OPTION:CITY WIDE City of Diamond Bar 10 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 333 Form 1.6 Allocated Costs 5. Other Indirect Costs % Allocation Vehicle Repair & Maintenance Container Management, Repair & Maintenance Management & Administrative Total 46 SFD $0 $0 $0 $0 47 Commercial & MDF $0 $0 $0 $0 48 Roll-Off Box & On-Call Services $0 $0 $0 $0 49 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 6. Management & Administrative Costs 50 SFD $0 $0 $0 $0 51 Commercial & MDF $0 $0 $0 $0 52 Roll-Off Box & On-Call Services $0 $0 $0 $0 53 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 7. Other Depreciation 54 SFD $0 $0 $0 $0 55 Commercial & MDF $0 $0 $0 $0 56 Roll-Off Box & On-Call Services $0 $0 $0 $0 57 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 8. Other Interest 58 SFD $0 $0 $0 $0 59 Commercial & MDF $0 $0 $0 $0 60 Roll-Off Box & On-Call Services $0 $0 $0 $0 61 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 NOTES 1 Enter "Other Indirect Costs such as Safety &Training, Uniforms, etc. 2 Enter "Other Management and Administrative Costs" such as Rent, Utilities, Telephone, Information Technology, Office Supplies, Bad Debt, Accounting, Legal, Public Outreach, Payments to the City (Other than Franchise Fee), etc. City of Diamond Bar 11 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 334 Form 1.7 CapEx ROW ABCDEFGHI Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 1 $0 $0 $0 2 $0 $0 $0 3 $0 $0 $0 4 $0 $0 $0 5 $0 $0 $0 6 $0 $0 $0 7 $0 $0 $0 8 $0 $0 $0 9 $0 $0 $0 10 $0 $0 $0 11 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 12 $0 $0 $0 13 $0 $0 $0 14 $0 $0 $0 15 $0 $0 $0 16 $0 $0 $0 17 $0 $0 $0 18 $0 $0 $0 19 $0 $0 $0 20 $0 $0 $0 21 $0 $0 $0 22 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 23 Roll-Off Trucks $0 $0 $0 24 $0 $0 $0 25 $0 $0 $0 26 $0 $0 $0 27 $0 $0 $0 28 - $0 $0 $0 29 - $0 $0 $0 PROPOSER: Only populate green colored cells. Avoid overwriting aqua colored cells. VEHICLES YEAR 1 CONVENTIONAL 1 SFD VEHICLES Instructions: This worksheet is includes inputs for Vehicles, Containers and Other Capital Costs. Enter other asset description, purchase price, salvage value, expected asset life and interest rate for cost of capital. OPTION: ENTER PROPOSER NAME CITY WIDE TOTAL SFD VEHICLES TOTAL COMMERCIAL & MFD VEHICLES 3 ROLL-OFF BOX & ON-CALL SERVICES VEHICLES TOTAL ROLL-OFF & ON-CALL VEHICLES TOTAL VEHICLES 2 COMMERCIAL VEHICLES City of Diamond Bar 12 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 335 Form 1.7 CapEx Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 30 $0 $0 $0 31 $0 $0 $0 32 $0 $0 $0 33 $0 $0 $0 34 $0 $0 $0 35 $0 $0 $0 36 $0 $0 $0 37 $0 $0 $0 38 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 39 $0 $0 $0 40 $0 $0 $0 41 $0 $0 $0 42 $0 $0 $0 43 $0 $0 $0 44 $0 $0 $0 45 $0 $0 $0 46 $0 $0 $0 47 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 48 $0 $0 $0 49 $0 $0 $0 50 $0 $0 $0 96 $0 $0 $0 51 $0 $0 $0 52 - $0 $0 $0 53 - $0 $0 $0 CONTAINERS 4 SFD CONTAINERS TOTAL CONTAINERS 5 COMMERCIAL CONTAINERS 6 ROLL-BOX & ON-CALL SERVICES CONTAINERS TOTAL ROLL-OFF & ON-CALL CONTAINERS TOTAL COMMERCIAL & MFD CONTAINERS TOTAL SFD CONTAINERS City of Diamond Bar 13 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 336 Form 1.7 CapEx Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 63 Shop Truck $0 $0 $0 64 $0 $0 $0 65 $0 $0 $0 66 $0 $0 $0 67 $0 $0 $0 68 $0 $0 $0 69 $0 $0 $0 70 $0 $0 $0 71 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 72 Flatbed $0 $0 $0 73 $0 $0 $0 74 $0 $0 $0 75 $0 $0 $0 76 $0 $0 $0 77 $0 $0 $0 78 $0 $0 $0 79 $0 $0 $0 80 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 54 Pickups $0 $0 $0 55 Vehicles $0 $0 $0 56 $0 $0 $0 57 $0 $0 $0 58 $0 $0 $0 59 $0 $0 $0 60 $0 $0 $0 61 $0 $0 $0 62 - $0 $0 $0 81 - $0 $0 $0 82 - $0 $0 $0 TOTAL OTHER MANAGEMENT ADMIN., VEHICLE R&M, CONTAINER R&M GRAND TOTAL TOTAL OTHER MANAGEMENT ADMIN TOTAL OTHER VEHICLE R&M TOTAL OTHER CONTAINER R&M OTHER CAPITAL COSTS 9 OTHER: MANAGEMENT & ADMINISTRATIVE 7 OTHER: VEHICLE REPAIR & MAINTENANCE 8 OTHER: CONTAINER MANAGEMENT, REPAIR & MAINTENANCE City of Diamond Bar 14 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 337 Form 1.8 Disposal and Processing Costs PROPOSER: OPTION: Row Facility Tons $/Ton Total Cost 1 $0 2 $0 3 $0 4 Solid Waste Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 5 $0 6 $0 7 $0 8 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 9 $0 10 $0 11 $0 12 Organics Processing Total 0.0 -$ $0 13 SFD TOTAL 0.0 -$ $0 CITY WIDE ENTER PROPOSER NAME Instructions: For each waste stream e.g. landfill disposal, solid waste processing, recyclables processing, Organics, etc., enter the projected tonnage, tipping fee per ton. If transportation from facility to facility is required, enter tons and costs per ton to transport. Waste streams are examples only, enter consistent with your proposed plans. RESIDENTIAL (SINGLE-FAMILY DWELLINGS) Only populate green colored cells. Avoid overwriting aqua colored cells. Solid Waste (Trash) Recycling Processing Organics Processing City of Diamond Bar 15 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 338 Form 1.8 Disposal and Processing Costs Facility Tons $/Ton Total Cost 14 $0 15 $0 16 $0 17 Solid Waste Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 18 $0 19 $0 20 $0 21 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 22 $0 23 $0 24 $0 25 Organics Processing Total 0.0 -$ $0 26 COMMERCIAL TOTAL 0.0 -$ $0 Organics Processing COMMERCIAL Solid Waste (Trash) Recycling Processing City of Diamond Bar 16 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 339 Form 1.8 Disposal and Processing Costs Facility Tons $/Ton Total Cost 27 $0 28 $0 29 $0 30 MSW Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 31 $0 32 $0 33 $0 34 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 35 $0 36 $0 37 $0 38 Organics Processing Total 0.0 -$ $0 39 ROLL-OFF BOX & ON-CALL TOTAL 0.0 -$ $0 Refuse Recycling Processing Organics Processing ROLL-OFF BOX & ON-CALL City of Diamond Bar 17 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 340 RFP ATTACHMENT 6RATE PROPOSAL FORMSInstructions: Input data requested in FORMS 2.0 through 2.4. Only input into green colored cells.FORM Content2.0 Rate Revenue Summary2.1 SFD Year-One Proposed Rates2.2 Commercial/MFD Year-One Proposed Rates2.3 Roll-Off and On-Call Year-One Proposed Rates (Roll-Off, Temporary Clean-Up Bins, & MFD Bulky Item Collection)2.4 Other Charges Year-One Proposed RatesCity of Mission Viejo18Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 341 ENTER PROPOSER NAME CITY WIDE ACD Row Service Category Proposed Rate Revenue Estimated Rate Revenue 1 Residential Service Rate Revenue1 $5,812,032 2 Commercial Service Rate Revenue1 $2,291,706 3 Drop-Off & Other On-Call Rate Revenue1 $0 4 Estimated First-Year Rate Revenue1 $8,103,738 City Fees 5 Franchise Fee 2 5.1% $410,000.00 6 CalRecycle Compliance Fee $750,000 7 Residential Vehicle Impact Fee $175,000 8 Residential Street Sweeping Fee $175,000 9 Total First-Year City Fees $1,510,000 10 Estimated First-Year Rate Revenue Less City Fees $6,593,738 11 Estimated Contractor Compensation (From Form 1.1) $0 12 Difference Between Rate Revenue and Estimated Contractor Compensation 3 $6,593,738 NOTES 1 Includes City Fees 2 3 FORM 2.0: RATE REVENUE SUMMARY Franchise fees represent the City's value of franchise. Proposer may agree or offer a different amount. Instructions: Confirm the reasonableness of total estimated first-year rate revenue (row 4, column D) based upon proposed rates and estimated service counts; and, drop box, temporary bins, and bulky items entered in forms 2.1 - 2.4. The Estimated First-Year Rate Revenue in row 10 and Esimated Contractor Compensation in row 11 should equal - explain any variation. The rate revenue generated by the service levels assumptions and rates proposed in Forms 2.1 through 2.4 should equal the estimated contractor compensation in form 1.1. Proposer shall explain any material difference between proposed first-year rate revenues and its estimated first-year Contractor Compensation. Proposer: Option: City of Diamond Bar 19 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 342 Proposer: Option: ABCDEF Row Service Description Monthly Rate Service Count Per Unit, Event, Etc. Monthly Revenue Annual Revenue 1 Single-Family Dwelling - 35 gallon trash cart $26.04 2,345.0 Unit / Month $61,064 $732,768 2 Single-Family Dwelling - 64 gallon trash cart $32.09 5,829.0 Unit / Month $187,053 $2,244,636 3 Single-Family Dwelling - 96 gallon trash cart $38.50 3,674.0 Unit / Month $141,449 $1,697,388 4 Single-Family Dwelling - 35 gallon trash cart - senior discounted $22.41 Unit / Month $0 $0 5 Single-Family Dwelling - 64 gallon trash cart - senior discounted 1 $27.67 3,425.0 Unit / Month $94,770 $1,137,240 6 Single-Family Dwelling - 96 gallon trash cart - senior discounted $33.00 Unit / Month $0 $0 7 Total Units 15,273.0 8 $484,336 $5,812,032 Service Description Monthly Rate 9 Additional charge for 35 gallon trash cart beyond (1) one. Not to exceed 20% of trash cart Row 1 Column B. 2 $5.21 10 Additional charge for 64 gallon trash cart beyond (1) one. Not to exceed 20% of trash cart Row 2 Column B. 2 $6.42 11 Additional charge for 96 gallon trash cart beyond (1) one. Not to exceed 20% of trash cart Row 3 Column B. 2 $7.70 12 Additional charge for recyclables cart beyond (2) two. Not to exceed 7% of 64 gallon trash cart Row 2 Column B. 3 $2.25 13 Additional charge for organics cart beyond (2) two. Not to exceed 20% of 64 gallon trash cart Row 2 Column B. 4 $6.42 14 Additional charge for backyard service. 5 15 Additional charge for refuse cart overage beyond two (2) annual pickup events and one (1) year-end pickup. Not to exceed 20% of trash cart Row 2 Column B. 5 $6.42 16 Cart Overage Charge for overflowing container upon second and subsequent occurrence in 3-month period. Not to exceed 20% of trash cart Row 2 Column B.$6.42 17 Bulky Item Pickup - Beyond four (4) pickup collection events per calendar year. 6 18 Contamination Fee upon third and subsequent occurrence in 12-month period. 20 Damaged Cart Replacement 7 21 Cart Exchange after free after free-exchange period. 25 Late Payment charge for unpaid balance per month after 75 days past due date.1.50% Unit / Month FORM 2.1: SFD Year-One Proposed Rates Only populate green colored cells. Avoid overwriting aqua colored cells. Single-Family Dwelling Standard Service: Instructions: For Rows 1 through 5, enter proposed rates in Column B. For Rows 7 through 24, enter proposed rates for other services and charges. Standard Service includes three (3) carts; One each for refuse, recycling, and organics. The Monthly Rate is based on the refuse cart size chosen by the customer. Customers may choose 35, 64, or 96-gallons carts for recycling and/or organics. Default sizes for all three waste streams are 64 gallon. NTER PROPOSER NAM CITY WIDE Total Proposed Rate Revenue==> Per Event Per Event Per Cart / Event Single-Family Dwelling Other Services and Charges Unit / Month Per Event Per Event % of Monthly Balance Per Cart / Event Unit / Month Unit / Month Unit / Month Per Unit, Event, Etc. Unit / Month City of Diamond Bar 20 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 343 Row Service Description Monthly Rate Service Count Per Unit, Event, Etc. Monthly Revenue Annual Revenue 26 Service Reinstatement charge after suspension for non-payment $75.00 NOTES 1 2 3 4 5 6 7 8 Basic service includes up to two (2) carts for organics. Customers may order additional organics carts at an additional charge. Contractor may charge for replacement of carts if due to provable negligence . Contractor shall roll out and return carts for any Customer who is legally or medically recognized as disabled at no additional charge. Contractor may charge for additional pickups beyond two annual pickups per calendar year and an end-of-year pickup for trash. Contractor may charge for additional bulky item pickups beyond four annual pickups per calendar year. Customers may put out up to Total SFD cart subscriptions are 2,345 35-g, 9,254 64-g, and 3,674 96-g for a total of 15,273 carts. There are 3,325 senior discounted accounts but there is no breakdown by cart size available. For purposes of this proposal, the 3,325 senior accounts have been deducted from the 64-g carts. Basic service includes one (1) cart for trash. Customers may order additional carts at an additional charge. Basic service includes up to two (2) carts for recyclables. Customers may order additional recyclables carts at an additional charge. This Per Event City of Diamond Bar 21 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 344 Proposer: Option: ABCDEFGH 123456 1 70 Gal Cart $41.31 2 98 Gal Cart 3 1.5 cubic yard - 1st bin $109.74 $180.35 4 1.5 cubic yard - each addl $98.77 $162.31 5 2 cubic yard - 1st bin $125.68 $217.90 $297.89 $385.50 $477.75 $557.74 $47.98 6 2 cubic yard - each addl $113.10 $196.10 $268.11 $346.96 $429.98 $501.96 7 3 cubic yard - 1st bin $155.60 $257.97 $362.11 $470.26 $576.41 $703.49 $55.56 8 3 cubic yard - each addl $140.03 $232.14 $326.00 $423.23 $518.78 $633.15 9 4 cubic yard - 1st bin $197.00 $317.05 $439.84 $626.43 $749.22 $910.07 $63.17 10 4 cubic yard - each addl $177.28 $285.34 $395.83 $563.78 $674.31 $819.08 11 6 cubic yard - 1st bin $235.15 $388.45 $543.72 $790.24 $943.57 $1,139.84 $73.37 12 6 cubic yard - each addl $211.63 $349.61 $489.34 $711.23 $849.21 $1,028.87 13 123456 14 2 cubic yard compactor 15 3 cubic yard compactor 16 4 cubic yard compactor 17 6 cubic yard compactor 18 123456 19 70 Gal Cart $20.54 $0.00 $0.00 20 98 Gal Cart $20.54 $0.00 $0.00 21 1.5 cubic yard - 1st bin $54.87 $90.18 $0.00 $0.00 $0.00 $0.00 $0.00 22 1.5 cubic yard - each addl $49.39 $81.16 $0.00 $0.00 $0.00 $0.00 $0.00 23 2 cubic yard - 1st bin $62.84 $108.95 $148.95 $192.75 $238.88 $278.87 $23.99 24 2 cubic yard - each addl $56.55 $98.05 $134.06 $173.48 $214.99 $250.98 $0.00 25 3 cubic yard - 1st bin $77.80 $128.99 $181.06 $235.13 $288.21 $351.75 $27.78 26 3 cubic yard - each addl $70.02 $116.07 $163.00 $211.62 $259.39 $316.58 $0.00 27 Proposed Monthly Rates for Trash Containers Row Container Type/Size Frequency of Collections per Week Only populate green colored cells. Avoid overwriting aqua colored cells. Instructions: In columns B - H, enter proposed rates in green colored cells rows 1 - 13 for trash; rows 14 - 17 for trash compactors; rows 19 - 26 for recycling, rows 28 - 31 for organics, and rows 33 - 40 for other charges. Form 2.2: Commercial/MFD Year-One Proposed Rates ENTER PROPOSER NAME CITY WIDE Additional Pick Up Proposed Monthly Rates for Recycling Containers Row Container Type/Size Frequency of Collections per Week Additional Pick Up Proposed Monthly Rates for Trash Compactors Row Container Type/Size Frequency of Collections per Week Additional Pick Up City of Diamond Bar 22 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 345 Proposer: Option: IJKLMNOP 123456 107.0 107.0 4.0 4.0 8.0 8.0 0.0 14.0 4.0 1.0 1.0 20.0 0.0 68.0 54.0 55.0 14.0 10.0 8.0 209.0 41.0 83.0 91.0 24.0 8.0 1.0 248.0 5.0 9.0 11.0 2.0 2.0 2.0 31.0 5.0 2.0 1.0 2.0 10.0 3.0 1.0 5.0 9.0 1.0 1.0 1.0 156.0 166.0 41.0 21.0 13.0 0.0 647.0 123456 1.0 1.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 1.0 123456 107.0 107.0 0.0 2.0 2.0 2.0 2.0 1.0 1.0 0.0 8.0 9.0 3.0 20.0 13.0 13.0 120.0 22.0 3.0 0.0 0.0 0.0 0.0 145.0 Commercial/MFD Year-One Proposed Rates This subscription level were provided by the existing franchise hauler. Each Proposer must review and proposed projected subscription levels based on their own program/technology expectations. ENTER PROPOSER NAME CITY WIDE Subscription Levels for Recycling Containers Frequency of Collections per Week Additional Pick Up Subscription Levels for Trash Containers Total Subscription Levels for Trash Compactors Frequency of Collections per Week Additional Pick Up Total Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 23 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 346 Proposer: Option: QRSTUVW X 123456 $4,420.17 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $4,420.17 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $877.92 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $877.92 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,759.52 $871.60 $297.89 $385.50 $0.00 $0.00 $0.00 $3,314.51 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10,580.80 $13,930.38 $19,916.05 $6,583.64 $5,764.10 $5,627.92 $0.00 $62,402.89 $5,741.23 $19,267.62 $29,666.00 $10,157.52 $4,150.24 $633.15 $0.00 $69,615.76 $985.00 $2,853.45 $4,838.24 $1,252.86 $1,498.44 $1,820.14 $0.00 $13,248.13 $0.00 $1,426.70 $791.66 $0.00 $674.31 $1,638.16 $0.00 $4,530.83 $705.45 $388.45 $2,718.60 $0.00 $0.00 $0.00 $0.00 $3,812.50 $0.00 $0.00 $489.34 $0.00 $0.00 $0.00 $0.00 $489.34 Subtotal Monthly Rate Revenue for Solid Waste Bins==>$162,712.05 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Solid Waste Compactors==>$0.00 123456 $2,197.78 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,197.78 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $109.74 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $109.74 $98.77 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $98.77 $62.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $62.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $622.40 $1,160.87 $543.17 $0.00 $0.00 $0.00 $0.00 $2,326.43 $0.00 $1,508.91 $0.00 $0.00 $0.00 $0.00 $0.00 $1,508.91 Subtotal Monthly Rate Revenue for Recycling Material==>$6,304.47 THIS WORKSHEET WILL SELF-POPULATE - NO INPUT NECESSARY!!!! Total Proposed 1st Year Monthly Rate Revenue for Trash Compactors Proposed 1st Year Monthly Rate Revenue for Recycling Containers Frequency of Collections per Week Additional Pick Up Total Additional Pick Up Frequency of Collections per Week Proposed 1st Year Monthly Rate Revenue for Trash Containers Commercial/MFD Year-One Proposed Rates ENTER PROPOSER NAME CITY WIDE Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 24 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 347 ABCDEFGH Only populate green colored cells. Avoid overwriting aqua colored cells. 123456 28 70 Gal Cart $46.81 $93.61 $140.42 $187.22 $234.03 $280.84 $0.00 29 98 Gal Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 30 2 cubic yard - 1st bin $109.74 $180.35 $0.00 $0.00 $0.00 $0.00 $0.00 31 2 cubic yard - each addl $98.77 $162.31 $0.00 $0.00 $0.00 $0.00 $0.00 32 123456 33 Scout Service $78.66 $187.41 $281.41 $374.83 $468.53 $562.23 34 Container Lock Charge $13.66 35 Enclosure Lock Charge 36 Pull-out Exceeding 25 feet 37 Sunday Service - Each Service 38 Valet Service for Carts $6.00 39 40 NOTES 1 2 3 Row Container Type/Size Frequency of Collections per Week Additional Pick Up Proposed Monthly Rates for Organics Containers Proposed Monthly Rates for Other Services Row Service Type Frequency of Collections per Week Additional Pick Up City of Diamond Bar 25 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 348 IJKLMNOP 123456 227.0 8.0 7.0 242.0 10.0 4.0 2.0 16.0 6.0 1.0 1.0 1.0 2.0 11.0 2.0 0.0 1.0 3.0 245.0 13.0 11.0 1.0 2.0 0.0 0.0 272.0 123456 42.0 18.0 2.0 97.0 Subscription Levels for Organics Containers Frequency of Collections per Week Additional Pick Up Total Subscription Levels for Other Services Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 26 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 349 QRSTUVW X THIS WORKSHEET WILL SELF-POPULATE - NO INPUT NECESSARY!!!! 123456 $10,625.87 $748.88 $982.94 $0.00 $0.00 $0.00 $0.00 $12,357.69 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $658.44 $180.35 $0.00 $0.00 $0.00 $0.00 $0.00 $838.79 $197.54 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $197.54 Subtotal Monthly Rate Revenue for Organic Material==>$13,394.02 123456 $3,303.72 $3,373.38 $562.82 $0.00 $0.00 $0.00 $0.00 $7,239.92 $1,325.02 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,325.02 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Other Services==>$8,564.94 $190,975.48 $2,291,705.76 Total Proposed Monthly Rate Revenue==> Total Proposed Annual Rate Revenue==> Frequency of Collections per Week Additional Pick Up Total Proposed 1st Year Monthly Rate Revenue for Organics Containers Proposed 1st Year Monthly Rate Revenue for Other Services Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 27 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 350 Proposer: Option: ABCDEF Row Container Size/Type Customer Rate Service Count Estimated Rate Revenue Roll-Off Box Hauling Service 1 Roll off boxes and compactors (all sizes). Includes delivery and removal.per haul # of pulls $0 2 Roll Off Boxes and Compactors (all sizes) Customer Owned Equipment. Includes Delivery and removal.per haul # of pulls $0 3 Subtotal Roll-Off Service 0.0 # of pulls $0 Roll-Off Disposal/Processing & Other Fees 4 Solid waste (transfer only - no processing) per ton # of tons $0 5 Solid waste processing (MRF) 1 per ton # of tons $0 6 Commingled recyclables processing per ton # of tons $0 7 Segregated green waste per ton # of tons $0 7 Segregated food waste per ton # of tons $0 8 Organics per ton # of tons $0 9 C&D processing 2 per ton # of tons $0 10 Roll-off box cleaning beyond one (1) per year. per event # of events $0 10 Redelivery/Return trip/Dry run per event # of events $0 11 Temporary roll-off daily rental after 7 days with no dump per day # of days $0 12 Relocation fee per event # of events $0 13 Sunday service surcharge per event # of events $0 14 Subtotal Roll-Off Disposal/Processing 0.0 $0 15 Total Roll-Off Revenue $0 Temporary Bin 16 3YD Bin - deliver, pickup and one dump per event # of events $0 17 3YD Bin additional dump per event # of events $0 18 6YD Bin - deliver, pickup and one dump per event # of events $0 19 6YD Bin additional dump per event # of events $0 20 Daily rental after 7 days Per Day # of Days $0 Bulky Item Collection 21 MFD Bulky Item Pickup - beyond four (4) pickup collection events per year.Per event # of events $0 22 Commercial Bulky Item Pickup - per collection event. Per event # of events $0 23 Commercial Bulky Item Pickup - per item. Per Item # Items $0 24 Total Annual Rate Revenue $0 NOTES 1 State percentage recovery minimum in proposal. 2 75% minimum diversion. Form 2.3: Roll-Off & On-Call Service Year-One Proposed Rates ENTER PROPOSER NAME Instructions: Enter proposed rates for roll-box and compactor service, disposal and processing, temporary bins service and bulky item collection in column B and assumed service subscriptions in column D. Only populate green colored cells. Avoid overwriting aqua colored cells. CITY WIDE City of Diamond Bar 28 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 351 Proposer:Option:ABCRow DescriptionFee1 Bin cleaning bin fee beyond one (1) per per year. per event2Enclosure clean-out fee due to overflowing containers. per event3 Commercial return trip fee on scheduled pickup day. per event4Commercial service reinstatement fee after suspension for non-paymentper event5Commercial Cart or Bin Exchange beyond once per Agreement Yearper event6Late Payment charge for unpaid balance per month after 30 days past due date.1.50% % of monthly balance 7Contamination Fee upon third and subsequent occurrence in 12-month period.per event8 Commercial U-Waste, & E-Waste Collection per event9 Emergency Service - 1 Crew & 1 Truck per event11per event12per hour15ENTER PROPOSER NAMEForm 2.4: Other Charges and Fees Year-One Proposed FeesInstructions: Enter proposed rates charges and fees in column B.Only populate green colored cells. Avoid overwriting aqua colored cells.CITY WIDECity of Diamond Bar29Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 352 Instructions: Input data requested in FORMS 1.1 through 1.8. Only input into green colored cells. FORM Content 1.1 Costs Summary 1.2 Not Used 1.3 Direct Labor - (Route related labor) 1.4 Indirect Wages (Vehicle R&M, Container R&M, and Management) 1.5 Equipment R&M 1.6 Allocated Costs (to line of business, e.g. SFD, Commercial, Roll-Off) 1.7 Capital Expenditures (CapEx) 1.8 Disposal & Processing Costs SUPPORTING COSTS & ROUTE DETAIL WORKSHEETS COMMERCIAL RFP ATTACHMENT 7 City of Diamond Bar 1 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 353 Form 1.1 Costs Summary PROPOSER: OPTION: ABCDE SFD NOT USED Commercial Roll-Off & On- Call Services Total Year-One Annual Cost 1 Direct Wages & Benefits $0 $0 $0 2 Route Vehicle Depreciation $0 $0 $0 Vehicle Repair & Maintenance 3 Wages & Benefits $0 $0 $0 4 Parts & Supplies $0 $0 $0 5Fuel $0 $0 $0 6 Depreciation Other $0 $0 $0 Subtotal Vehicle R&M $0 $0 $0 Container Repair & Maintenance 7 Wages & Benefits $0 $0 $0 8 Parts & Supplies $0 $0 $0 9 Container Depreciation $0 $0 $0 10 Depreciation Other $0 $0 $0 Subtotal Container R&M $0 $0 $0 11 Other Indirect Costs $0 $0 $0 12 Total Operations Costs $0 $0 $0 Management & Admin. 13 Wages & Benefits $0 $0 $0 14 Other G&A Costs $0 $0 $0 15 Depreciation $0 $0 $0 16 Subtotal Management & Admin $0 $0 $0 17 Disposal & Processing Costs $0 $0 $0 Interest Expense 18 Route Vehicle Interest $0 $0 $0 19 Vehicle R&M Interest $0 $0 $0 20 Container Interest $0 $0 $0 21 Container R&M Interest $0 $0 $0 22 Other Interest $0 $0 $0 Total Interest Expense $0 $0 $0 23 TOTAL COSTS BEFORE PROFIT $0 $0 $0 24 Profit Percent Assumption 0.0% 25 Profit Assumption $0 $0 $0 26 Estimated Contractor Compensation $0 $0 $0 Instructions: 1. Enter Proposer name above. 2. Enter the assumed profit percentage in row 25, columns B - D and F. References to column letters and row numbers are to those inserted into the worksheet. Only populate green colored cells. Avoid overwriting aqua colored cells. ENTER PROPOSER NAME COMMERCIAL City of Diamond Bar 2 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 354 Form 1.3 - Direct LaborABCDEFGHIJDirect Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours1 ASL Driver $0 $0 0.00 0.0% 0.0%2 Front Load Driver $0 $0 0.00 0.0% 0.0%3 Helper $0 $0 0.00 0.0% 0.0%4$0 $0 0.00 0.0% 0.0%5$0 $0 0.00 0.0% 0.0%6$0 $0 0.00 0.0% 0.0%7$0 $0 0.00 0.0% 0.0%8$0 $0 0.00 0.0% 0.0%9$0 $0 0.00 0.0% 0.0%10$0 $0 0.00 0.0% 0.0%11Total Single-Family - - $0 $0 $00.00 0.0% 0.0%Only populate green colored cells. Avoid overwriting aqua colored cells.SFDNOT USEDPROPOSER:ENTER PROPOSER NAMEInstructions: Enter proposed positions in Column A (e.g. MSW Driver, Recycling Driver, etc.) Enter proposed annual regular and overtime hours for SFD, Commercial & Multi-Family, and for Roll-Off & On-Call Services in Columns B and C . Enter Hourly Pay Rate in Column D. Enter Total Benefits & Other Employment Costs in column F to include all employment and fringe benefits costs such as vacation, medical, sick pay, PTO, uniforms, workers' compensation, payroll taxes, etc.COMMERCIALOPTION:City of Diamond Bar3Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 355 Form 1.3 - Direct LaborDirect Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours12ASL Driver $0 $0 0.00 0.0%0.0%13Front Load Driver $0 $0 0.00 0.0%0.0%14Scout Driver $0 $0 0.00 0.0%0.0%15Helper $0 $0 0.00 0.0%0.0%16$0 $0 0.00 0.0%0.0%17$0 $0 0.00 0.0%0.0%18$0 $0 0.00 0.0%0.0%19$0 $0 0.00 0.0%0.0%20$0 $0 0.00 0.0%0.0%21$0 $0 0.00 0.0%0.0%22Total Commercial - - $0 $0 $00.00 0.0%0.0%Direct Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours23 Roll-off driver $0 $0 0.00 0.0% 0.0%24 Flat-bed driver $0 $0 0.00 0.0% 0.0%25$0 $0 0.00 0.0% 0.0%26$0 $0 0.00 0.0% 0.0%27$0 $0 0.00 0.0% 0.0%28$0 $0 0.00 0.0% 0.0%29Total On-Call - - $0 $0 $00.00 0.0% 0.0%30GRAND TOTAL DIRECT LABOR - - $0 $0 $00.00 0.0% 0.0%NOTESROLL-OFF BOX & ON-CALL SERVICES 3COMMERCIAL & MFDCity of Diamond Bar4Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 356 Form 1.3 - Direct Labor1 Enter Employee classifications such as ASL driver, FL Driver, RL Driver, Scout Driver, Roll-Off Driver, Flat-Bed Driver, Relief Driver, Helper, etc.2 All employment costs other than wages but including workers' compensation, payroll taxes, and benefits such as uniforms, medical, pension, vacation, sick pay, PTO, etc.3 Only enter wages related to roll-off box service and temporary bins that have not been captured elsewhere.City of Diamond Bar5Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 357 Form 1.4 - Indirect WagesABCDEFGHIJ1Indirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours2Mechanic$0 $0 0.00 0.0%0.0%3Welder$0 $0 0.00 0.0%0.0%4$0 $0 0.00 0.0%0.0%5$0 $0 0.00 0.0%0.0%6$0 $0 0.00 0.0%0.0%7$0 $0 0.00 0.0%0.0%8TOTAL VEHICLE R&M - - $0 $0 $00.00 0.0%0.0% % Allocation Total9 SFD<<Not Used10 Commercial$011 Roll-Off$0Must Equal 100%==> 0.0% $0PROPOSER:Instructions: Enter proposed positions in Column A (e.g. Mechanic, etc.) Enter proposed annual regular and overtime hours in Columns B and C . Enter Hourly Pay Rate in Column D. Enter Total Benefits & Other Employment Costs in column F to include all employment and fringe benefits costs such as vacation, medical, sick pay, PTO, uniforms, workers' compensation, payroll taxes, etc. Enter percent allocation to SFD, Commercial and Roll-Off in Rows 10 through 11, Column B.ALLOCATION TO LINE OF BUSINESSENTER PROPOSER NAMEOnly populate green colored cells. Avoid overwriting aqua colored cells.VEHICLE REPAIR & MAINTENANCECOMMERCIALOPTION:City of Diamond Bar6Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 358 Form 1.4 - Indirect Wages12Indirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours13Welder $0 $0 0.00 0.0%0.0%14$0 $0 0.00 0.0%0.0%15$0 $0 0.00 0.0%0.0%16$0 $0 0.00 0.0%0.0%17$0 $0 0.00 0.0%0.0%18TOTAL CONTAINER R&M - - $0 $0 $00.00 0.0%0.0% % Allocation Total19 SFD<<Not Used20 Commercial$021 Roll-Off$0Must Equal 100%==> 0.0% $0ALLOCATION TO LINE OF BUSINESSCONTAINER REPAIR & MAINTENANCE 3City of Diamond Bar7Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 359 Form 1.4 - Indirect WagesIndirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours22Operations Manager $0 $0 0.00 0.0%0.0%23Route Supervisor $0 $0 0.00 0.0%0.0%24$0 $0 0.00 0.0%0.0%25$0 $0 0.00 0.0%0.0%26$0 $0 0.00 0.0%0.0%27$0 $0 0.00 0.0%0.0%28$0 $0 0.00 0.0%0.0%29$0 $0 0.00 0.0%0.0%30$0 $0 0.00 0.0%0.0%31$0 $0 0.00 0.0%0.0%32$0 $0 0.00 0.0%0.0%33$0 $0 0.00 0.0%0.0%34$0 $0 0.00 0.0%0.0%35$0 $0 0.00 0.0%0.0%36$0 $0 0.00 0.0%0.0%37TOTAL MANAGEMENT & ADMIN - - $0 $0 $00.00 0.0%0.0% % Allocation Total38 SFD<<Not Used39 Commercial$040 Roll-Off$0Must Equal 100%==> 0.0% $041TOTAL INDIRECT WAGES - - $0 $0 $0 - 0.0% 0.0%NOTES1 Enter Employee classifications, e.g. . mechanics, welders, supervisors, operations manager, customer service representatives, etc.2 All employment costs other than wages, workers' compensation and payroll taxes, but including benefits such as; medical, pension, vacation, sick pay, PTO, etc.3 Include all personnel involved in container management, repair and maintenance including container delivery and pick-up drivers, welders, painters, etc.ALLOCATION TO LINE OF BUSINESSMANAGEMENT & ADMINISTRATIONCity of Diamond Bar8Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 360 Form 1.5 Equipment R&M ABCDE Route Vehicle Related Costs SFD Vehicles Commercial Vehicles Roll-Off & On Call Services Vehicles Annual Cost 1 Parts $0 2 Oil $0 3 Tires $0 4 Outside Repairs NOT USED $0 5 Taxes and Licenses $0 6 Other (Enter Here)$0 7 $0 8 $0 9 Subtotal Vehicle R&M $0 $0 $0 $0 10 Fuel NOT USED $0 Container Repair & Maintenance SFD Vehicles Commercial Vehicles Roll-Off & On Call Services Vehicles Annual Cost 11 Parts & Supplies $0 12 Other (Enter Here)NOT USED $0 12 $0 13 $0 14 Subtotal Container O&M $0 $0 $0 $0 15 Total Container R&M $0 $0 $0 $0 Instructions: Enter route vehicle repair and maintenance costs. The cost categories in Column A are provided as examples. Each proposer is to enter descriptions consistent with their own cost classification. Only populate green colored cells. Avoid overwriting aqua colored cells. PROPOSER: OPTION: ENTER PROPOSER NAME COMMERCIAL City of Diamond Bar 9 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 361 Form 1.6 Allocated Costs ABCDEF Vehicle Repair & Maintenance Container Management, Repair & Maintenance Management & Administrative Total 1. Other Indirect Costs 1 2 (Enter Description)$0 3 (Enter Description)$0 4 (Enter Description)$0 5 (Enter Description)$0 6 (Enter Description)$0 7 (Enter Description)$0 8 $0 9 $0 10 $0 11 Subtotal Other Indirect Cost $0 $0 $0 $0 2. Management & Administrative Costs 2 12 (Enter Description)$0 13 (Enter Description)$0 14 (Enter Description)$0 15 (Enter Description)$0 16 (Enter Description)$0 17 (Enter Description)$0 18 (Enter Description)$0 19 (Enter Description)$0 20 (Enter Description)$0 21 $0 22 $0 23 $0 24 $0 25 $0 26 $0 27 $0 28 $0 29 $0 30 $0 31 $0 32 Subtotal Management & Administrative Cost $0 $0 $0 $0 33 3. Other Depreciation (From CapEx YR-1) $0 $0 $0 $0 34 4. Other Interest (From CapEx YR-1) $0 $0 $0 $0 35 Total Costs to be Allocated $0 $0 $0 $0 ENTER PROPOSER NAMEPROPOSER: Only populate green colored cells. Avoid overwriting aqua colored cells. Instructions: Enter other indirect costs for Rows 2 to 10 and rows 12 to 31, in columns C, D E. The cost categories in Column A are provided as examples. Each proposer is to enter descriptions consistent with their own financial plan. Please note that Item 3. 'Other Depreciation' is populated from Form 1.7 'Cap-Ex', Column G, Row 62, 71, & 80; and Item 4. 'Interest Expense' is populated from Form 1.7 Cap-Ex, Column I, Row 62, 71, & 80 (all references to rows and columns in form not worksheet). Beginning with Item 5 and through Item 8, enter percentage allocation in Column B. Totals must equal 100% for each section. OPTION:COMMERCIAL City of Diamond Bar 10 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 362 Form 1.6 Allocated Costs 5. Other Indirect Costs % Allocation Vehicle Repair & Maintenance Container Management, Repair & Maintenance Management & Administrative Total 46 SFD NOT USED 47 MFD $0 $0 $0 $0 48 Roll-Off Box & On-Call Services $0 $0 $0 $0 49 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 6. Management & Administrative Costs 50 SFD NOT USED 51 MFD $0 $0 $0 $0 52 Roll-Off Box & On-Call Services $0 $0 $0 $0 53 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 7. Other Depreciation 54 SFD NOT USED 55 MFD $0 $0 $0 $0 56 Roll-Off Box & On-Call Services $0 $0 $0 $0 57 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 8. Other Interest 58 SFD NOT USED 59 MFD $0 $0 $0 $0 60 Roll-Off Box & On-Call Services $0 $0 $0 $0 61 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 NOTES 1 Enter "Other Indirect Costs such as Safety &Training, Uniforms, etc. 2 Enter "Other Management and Administrative Costs" such as Rent, Utilities, Telephone, Information Technology, Office Supplies, Bad Debt, Accounting, Legal, Public Outreach, Payments to the City (Other than Franchise Fee), etc. NOT USED NOT USED NOT USED NOT USED City of Diamond Bar 11 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 363 Form 1.7 CapEx ROW ABCDEFGHI Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 1 2 3 4 5 6 7 8 9 10 11 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 12 $0 $0 $0 13 $0 $0 $0 14 $0 $0 $0 15 $0 $0 $0 16 $0 $0 $0 17 $0 $0 $0 18 $0 $0 $0 19 $0 $0 $0 20 $0 $0 $0 21 $0 $0 $0 22 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 23 Roll-Off Trucks $0 $0 $0 24 $0 $0 $0 25 $0 $0 $0 26 $0 $0 $0 27 $0 $0 $0 28 - $0 $0 $0 29 - $0 $0 $0 PROPOSER: Only populate green colored cells. Avoid overwriting aqua colored cells. VEHICLES YEAR 1 CONVENTIONAL 1 SFD VEHICLES Instructions: This worksheet is includes inputs for Vehicles, Containers and Other Capital Costs. Enter other asset description, purchase price, salvage value, expected asset life and interest rate for cost of capital. OPTION: ENTER PROPOSER NAME COMMERCIAL NOT USED TOTAL SFD VEHICLES TOTAL COMMERCIAL & MFD VEHICLES 3 ROLL-OFF BOX & ON-CALL SERVICES VEHICLES TOTAL ROLL-OFF & ON-CALL VEHICLES TOTAL VEHICLES 2 COMMERCIAL VEHICLES City of Diamond Bar 12 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 364 Form 1.7 CapEx Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 30 31 32 33 34 35 36 37 38 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 39 $0 $0 $0 40 $0 $0 $0 41 $0 $0 $0 42 $0 $0 $0 43 $0 $0 $0 44 $0 $0 $0 45 $0 $0 $0 46 $0 $0 $0 47 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 48 $0 $0 $0 49 $0 $0 $0 50 $0 $0 $0 96 $0 $0 $0 51 $0 $0 $0 52 - $0 $0 $0 53 - $0 $0 $0 CONTAINERS 4 SFD CONTAINERS TOTAL CONTAINERS 5 COMMERCIAL CONTAINERS 6 ROLL-BOX & ON-CALL SERVICES CONTAINERS TOTAL ROLL-OFF & ON-CALL CONTAINERS TOTAL COMMERCIAL & MFD CONTAINERS TOTAL SFD CONTAINERS NOT USED City of Diamond Bar 13 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 365 Form 1.7 CapEx Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 63 Shop Truck $0 $0 $0 64 $0 $0 $0 65 $0 $0 $0 66 $0 $0 $0 67 $0 $0 $0 68 $0 $0 $0 69 $0 $0 $0 70 $0 $0 $0 71 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 72 Flatbed $0 $0 $0 73 $0 $0 $0 74 $0 $0 $0 75 $0 $0 $0 76 $0 $0 $0 77 $0 $0 $0 78 $0 $0 $0 79 $0 $0 $0 80 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 54 Pickups $0 $0 $0 55 Vehicles $0 $0 $0 56 $0 $0 $0 57 $0 $0 $0 58 $0 $0 $0 59 $0 $0 $0 60 $0 $0 $0 61 $0 $0 $0 62 - $0 $0 $0 81 - $0 $0 $0 82 - $0 $0 $0 TOTAL OTHER MANAGEMENT ADMIN., VEHICLE R&M, CONTAINER R&M GRAND TOTAL TOTAL OTHER MANAGEMENT ADMIN TOTAL OTHER VEHICLE R&M TOTAL OTHER CONTAINER R&M OTHER CAPITAL COSTS 9 OTHER: MANAGEMENT & ADMINISTRATIVE 7 OTHER: VEHICLE REPAIR & MAINTENANCE 8 OTHER: CONTAINER MANAGEMENT, REPAIR & MAINTENANCE City of Diamond Bar 14 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 366 Form 1.8 Disposal and Processing Costs PROPOSER: OPTION: Row Facility Tons $/Ton Total Cost 1 2 3 4 Solid Waste Total Facility Tons $/Ton Total Cost 5 6 7 8 Recycling Processing Total Facility Tons $/Ton Total Cost 9 10 11 12 Organics Processing Total 13 SFD TOTAL COMMERCIAL ENTER PROPOSER NAME Instructions: For each waste stream e.g. landfill disposal, solid waste processing, recyclables processing, Organics, etc., enter the projected tonnage, tipping fee per ton. If transportation from facility to facility is required, enter tons and costs per ton to transport. Waste streams are examples only, enter consistent with your proposed plans. RESIDENTIAL (SINGLE-FAMILY DWELLINGS) Only populate green colored cells. Avoid overwriting aqua colored cells. Solid Waste (Trash) Recycling Processing Organics Processing NOT USED NOT USED NOT USED City of Diamond Bar 15 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 367 Form 1.8 Disposal and Processing Costs Facility Tons $/Ton Total Cost 14 $0 15 $0 16 $0 17 Solid Waste Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 18 $0 19 $0 20 $0 21 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 22 $0 23 $0 24 $0 25 Organics Processing Total 0.0 -$ $0 26 COMMERCIAL TOTAL 0.0 -$ $0 Organics Processing COMMERCIAL Solid Waste (Trash) Recycling Processing City of Diamond Bar 16 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 368 Form 1.8 Disposal and Processing Costs Facility Tons $/Ton Total Cost 27 $0 28 $0 29 $0 30 MSW Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 31 $0 32 $0 33 $0 34 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 35 $0 36 $0 37 $0 38 Organics Processing Total 0.0 -$ $0 39 ROLL-OFF BOX & ON-CALL TOTAL 0.0 -$ $0 Refuse Recycling Processing Organics Processing ROLL-OFF BOX & ON-CALL City of Diamond Bar 17 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 369 RFP ATTACHMENT 7RATE PROPOSAL FORMSInstructions: Input data requested in FORMS 2.0 through 2.4. Only input into green colored cells.FORM Content2.0 Rate Revenue Summary2.1 Not Used2.2 Commercial/MFD Year-One Proposed Rates2.3 Roll-Off and On-Call Year-One Proposed Rates (Roll-Off, Temporary Clean-Up Bins, & MFD Bulky Item Collection)2.4 Other Charges Year-One Proposed RatesCity of Mission Viejo18Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 370 ENTER PROPOSER NAME COMMERCIAL ACD Row Service Category Proposed Rate Revenue Estimated Rate Revenue 1 Commercial Service Rate Revenue1 $2,291,706 2 Drop-Off & Other On-Call Rate Revenue1 $0 3 Estimated First-Year Rate Revenue1 $2,291,706 City Fees 4 Franchise Fee 2 5.4% $123,000.00 5 CalRecycle Compliance Fee $375,000 6 Total First-Year City Fees $498,000 7 Estimated First-Year Rate Revenue Less City Fees $1,793,706 8 Estimated Contractor Compensation (From Form 1.1) $0 9 Difference Between Rate Revenue and Estimated Contractor Compensation 3 $1,793,706 NOTES 1 Includes City Fees 2 3 FORM 2.0: RATE REVENUE SUMMARY Franchise fees represent the City's value of franchise. Proposer may agree or offer a different amount. Instructions: Confirm the reasonableness of total estimated first-year rate revenue (row 4, column D) based upon proposed rates and estimated service counts; and, drop box, temporary bins, and bulky items entered in forms 2.1 - 2.4. The Estimated First-Year Rate Revenue in row 10 and Esimated Contractor Compensation in row 11 should equal - explain any variation. The rate revenue generated by the service levels assumptions and rates proposed in Forms 2.1 through 2.4 should equal the estimated contractor compensation in form 1.1. Proposer shall explain any material difference between proposed first-year rate revenues and its estimated first-year Contractor Compensation. Proposer: Option: City of Diamond Bar 19 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 371 Proposer: Option: ABCDEFGH 123456 1 70 Gal Cart $41.31 2 98 Gal Cart 3 1.5 cubic yard - 1st bin $109.74 $180.35 4 1.5 cubic yard - each addl $98.77 $162.31 5 2 cubic yard - 1st bin $125.68 $217.90 $297.89 $385.50 $477.75 $557.74 $47.98 6 2 cubic yard - each addl $113.10 $196.10 $268.11 $346.96 $429.98 $501.96 7 3 cubic yard - 1st bin $155.60 $257.97 $362.11 $470.26 $576.41 $703.49 $55.56 8 3 cubic yard - each addl $140.03 $232.14 $326.00 $423.23 $518.78 $633.15 9 4 cubic yard - 1st bin $197.00 $317.05 $439.84 $626.43 $749.22 $910.07 $63.17 10 4 cubic yard - each addl $177.28 $285.34 $395.83 $563.78 $674.31 $819.08 11 6 cubic yard - 1st bin $235.15 $388.45 $543.72 $790.24 $943.57 $1,139.84 $73.37 12 6 cubic yard - each addl $211.63 $349.61 $489.34 $711.23 $849.21 $1,028.87 13 123456 14 2 cubic yard compactor 15 3 cubic yard compactor 16 4 cubic yard compactor 17 6 cubic yard compactor 18 123456 19 70 Gal Cart $20.54 $0.00 $0.00 20 98 Gal Cart $20.54 $0.00 $0.00 21 1.5 cubic yard - 1st bin $54.87 $90.18 $0.00 $0.00 $0.00 $0.00 $0.00 22 1.5 cubic yard - each addl $49.39 $81.16 $0.00 $0.00 $0.00 $0.00 $0.00 23 2 cubic yard - 1st bin $62.84 $108.95 $148.95 $192.75 $238.88 $278.87 $23.99 24 2 cubic yard - each addl $56.55 $98.05 $134.06 $173.48 $214.99 $250.98 $0.00 25 3 cubic yard - 1st bin $77.80 $128.99 $181.06 $235.13 $288.21 $351.75 $27.78 26 3 cubic yard - each addl $70.02 $116.07 $163.00 $211.62 $259.39 $316.58 $0.00 27 Proposed Monthly Rates for Trash Containers Row Container Type/Size Frequency of Collections per Week Only populate green colored cells. Avoid overwriting aqua colored cells. Instructions: In columns B - H, enter proposed rates in green colored cells rows 1 - 13 for trash; rows 14 - 17 for trash compactors; rows 19 - 26 for recycling, rows 28 - 31 for organics, and rows 33 - 40 for other charges. Form 2.2: Commercial/MFD Year-One Proposed Rates ENTER PROPOSER NAME COMMERCIAL Additional Pick Up Proposed Monthly Rates for Recycling Containers Row Container Type/Size Frequency of Collections per Week Additional Pick Up Proposed Monthly Rates for Trash Compactors Row Container Type/Size Frequency of Collections per Week Additional Pick Up City of Diamond Bar 20 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 372 Proposer: Option: IJKLMNOP 123456 107.0 107.0 4.0 4.0 8.0 8.0 0.0 14.0 4.0 1.0 1.0 20.0 0.0 68.0 54.0 55.0 14.0 10.0 8.0 209.0 41.0 83.0 91.0 24.0 8.0 1.0 248.0 5.0 9.0 11.0 2.0 2.0 2.0 31.0 5.0 2.0 1.0 2.0 10.0 3.0 1.0 5.0 9.0 1.0 1.0 1.0 156.0 166.0 41.0 21.0 13.0 0.0 647.0 123456 1.0 1.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 1.0 123456 107.0 107.0 0.0 2.0 2.0 2.0 2.0 1.0 1.0 0.0 8.0 9.0 3.0 20.0 13.0 13.0 120.0 22.0 3.0 0.0 0.0 0.0 0.0 145.0 Commercial/MFD Year-One Proposed Rates This subscription level were provided by the existing franchise hauler. Each Proposer must review and proposed projected subscription levels based on their own program/technology expectations. ENTER PROPOSER NAME COMMERCIAL Subscription Levels for Recycling Containers Frequency of Collections per Week Additional Pick Up Subscription Levels for Trash Containers Total Subscription Levels for Trash Compactors Frequency of Collections per Week Additional Pick Up Total Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 21 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 373 Proposer: Option: QRSTUVW X 123456 $4,420.17 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $4,420.17 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $877.92 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $877.92 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,759.52 $871.60 $297.89 $385.50 $0.00 $0.00 $0.00 $3,314.51 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $10,580.80 $13,930.38 $19,916.05 $6,583.64 $5,764.10 $5,627.92 $0.00 $62,402.89 $5,741.23 $19,267.62 $29,666.00 $10,157.52 $4,150.24 $633.15 $0.00 $69,615.76 $985.00 $2,853.45 $4,838.24 $1,252.86 $1,498.44 $1,820.14 $0.00 $13,248.13 $0.00 $1,426.70 $791.66 $0.00 $674.31 $1,638.16 $0.00 $4,530.83 $705.45 $388.45 $2,718.60 $0.00 $0.00 $0.00 $0.00 $3,812.50 $0.00 $0.00 $489.34 $0.00 $0.00 $0.00 $0.00 $489.34 Subtotal Monthly Rate Revenue for Solid Waste Bins==>$162,712.05 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Solid Waste Compactors==>$0.00 123456 $2,197.78 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,197.78 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $109.74 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $109.74 $98.77 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $98.77 $62.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $62.84 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $622.40 $1,160.87 $543.17 $0.00 $0.00 $0.00 $0.00 $2,326.43 $0.00 $1,508.91 $0.00 $0.00 $0.00 $0.00 $0.00 $1,508.91 Subtotal Monthly Rate Revenue for Recycling Material==>$6,304.47 THIS WORKSHEET WILL SELF-POPULATE - NO INPUT NECESSARY!!!! Total Proposed 1st Year Monthly Rate Revenue for Trash Compactors Proposed 1st Year Monthly Rate Revenue for Recycling Containers Frequency of Collections per Week Additional Pick Up Total Additional Pick Up Frequency of Collections per Week Proposed 1st Year Monthly Rate Revenue for Trash Containers Commercial/MFD Year-One Proposed Rates ENTER PROPOSER NAME COMMERCIAL Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 22 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 374 ABCDEFGH Only populate green colored cells. Avoid overwriting aqua colored cells. 123456 28 70 Gal Cart $46.81 $93.61 $140.42 $187.22 $234.03 $280.84 $0.00 29 98 Gal Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 30 2 cubic yard - 1st bin $109.74 $180.35 $0.00 $0.00 $0.00 $0.00 $0.00 31 2 cubic yard - each addl $98.77 $162.31 $0.00 $0.00 $0.00 $0.00 $0.00 32 123456 33 Scout Service $78.66 $187.41 $281.41 $374.83 $468.53 $562.23 34 Container Lock Charge $13.66 35 Enclosure Lock Charge 36 Pull-out Exceeding 25 feet 37 Sunday Service - Each Service 38 Valet Service for Carts $6.00 39 40 NOTES 1 2 3 Row Container Type/Size Frequency of Collections per Week Additional Pick Up Proposed Monthly Rates for Organics Containers Proposed Monthly Rates for Other Services Row Service Type Frequency of Collections per Week Additional Pick Up City of Diamond Bar 23 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 375 IJKLMNOP 123456 227.0 8.0 7.0 242.0 10.0 4.0 2.0 16.0 6.0 1.0 1.0 1.0 2.0 11.0 2.0 0.0 1.0 3.0 245.0 13.0 11.0 1.0 2.0 0.0 0.0 272.0 123456 42.0 18.0 2.0 97.0 Subscription Levels for Organics Containers Frequency of Collections per Week Additional Pick Up Total Subscription Levels for Other Services Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 24 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 376 QRSTUVW X THIS WORKSHEET WILL SELF-POPULATE - NO INPUT NECESSARY!!!! 123456 $10,625.87 $748.88 $982.94 $0.00 $0.00 $0.00 $0.00 $12,357.69 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $658.44 $180.35 $0.00 $0.00 $0.00 $0.00 $0.00 $838.79 $197.54 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $197.54 Subtotal Monthly Rate Revenue for Organic Material==>$13,394.02 123456 $3,303.72 $3,373.38 $562.82 $0.00 $0.00 $0.00 $0.00 $7,239.92 $1,325.02 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,325.02 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Other Services==>$8,564.94 $190,975.48 $2,291,705.76 Total Proposed Monthly Rate Revenue==> Total Proposed Annual Rate Revenue==> Frequency of Collections per Week Additional Pick Up Total Proposed 1st Year Monthly Rate Revenue for Organics Containers Proposed 1st Year Monthly Rate Revenue for Other Services Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 25 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 377 Proposer: Option: ABCDEF Row Container Size/Type Customer Rate Service Count Estimated Rate Revenue Roll-Off Box Hauling Service 1 Roll off boxes and compactors (all sizes). Includes delivery and removal.per haul # of pulls $0 2 Roll Off Boxes and Compactors (all sizes) Customer Owned Equipment. Includes Delivery and removal.per haul # of pulls $0 3 Subtotal Roll-Off Service 0.0 # of pulls $0 Roll-Off Disposal/Processing & Other Fees 4 Solid waste (transfer only - no processing) per ton # of tons $0 5 Solid waste processing (MRF) 1 per ton # of tons $0 6 Commingled recyclables processing per ton # of tons $0 7 Segregated green waste per ton # of tons $0 7 Segregated food waste per ton # of tons $0 8 Organics per ton # of tons $0 9 C&D processing 2 per ton # of tons $0 10 Roll-off box cleaning beyond one (1) per year. per event # of events $0 10 Redelivery/Return trip/Dry run per event # of events $0 11 Temporary roll-off daily rental after 7 days with no dump per day # of days $0 12 Relocation fee per event # of events $0 13 Sunday service surcharge per event # of events $0 14 Subtotal Roll-Off Disposal/Processing 0.0 $0 15 Total Roll-Off Revenue $0 Temporary Bin 16 3YD Bin - deliver, pickup and one dump per event # of events $0 17 3YD Bin additional dump per event # of events $0 18 6YD Bin - deliver, pickup and one dump per event # of events $0 19 6YD Bin additional dump per event # of events $0 20 Daily rental after 7 days Per Day # of Days $0 Bulky Item Collection 21 MFD Bulky Item Pickup - beyond four (4) pickup collection events per year.Per event # of events $0 22 Commercial Bulky Item Pickup - per collection event. Per event # of events $0 23 Commercial Bulky Item Pickup - per item. Per Item # Items $0 24 Total Annual Rate Revenue $0 NOTES 1 State percentage recovery minimum in proposal. 2 75% minimum diversion. Form 2.3: Roll-Off & On-Call Service Year-One Proposed Rates ENTER PROPOSER NAME Instructions: Enter proposed rates for roll-box and compactor service, disposal and processing, temporary bins service and bulky item collection in column B and assumed service subscriptions in column D. Only populate green colored cells. Avoid overwriting aqua colored cells. COMMERCIAL City of Diamond Bar 26 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 378 Proposer:Option:ABCRow DescriptionFee1 Bin cleaning bin fee beyond one (1) per per year. per event2Enclosure clean-out fee due to overflowing containers. per event3 Return trip fee on scheduled pickup day. per event4Service reinstatement fee after suspension for non-paymentper event5Bin Exchange beyond once per Agreement Yearper event6Contamination Fee upon third and subsequent occurrence in 12-month period.per event7Late Payment charge for unpaid balance per month after 30 days past due date.1.5% % of monthly balance 8 Emergency Service - 1 Crew & 1 Truck per hour9101112ENTER PROPOSER NAMEForm 2.4: Other Charges and Fees Year-One Proposed FeesInstructions: Enter proposed rates charges and fees in column B.Only populate green colored cells. Avoid overwriting aqua colored cells.COMMERCIALCity of Diamond Bar27Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 379 Instructions: Input data requested in FORMS 1.1 through 1.8. Only input into green colored cells. FORM Content 1.1 Costs Summary 1.2 Not Used 1.3 Direct Labor - (Route related labor) 1.4 Indirect Wages (Vehicle R&M, Container R&M, and Management) 1.5 Equipment R&M 1.6 Allocated Costs (to line of business, e.g. SFD, Commercial, Roll-Off) 1.7 Capital Expenditures (CapEx) 1.8 Disposal & Processing Costs SUPPORTING COSTS & ROUTE DETAIL WORKSHEETS RESIDENTIAL RFP ATTACHMENT 7 City of Diamond Bar 1 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 380 Form 1.1 Costs Summary PROPOSER: OPTION: ABCDE SFD MFD Roll-Off & On- Call Services Total Year-One Annual Cost 1 Direct Wages & Benefits $0 $0 $0 $0 2 Route Vehicle Depreciation $0 $0 $0 $0 Vehicle Repair & Maintenance 3 Wages & Benefits $0 $0 $0 $0 4 Parts & Supplies $0 $0 $0 $0 5Fuel $0 $0 $0 $0 6 Depreciation Other $0 $0 $0 $0 Subtotal Vehicle R&M $0 $0 $0 $0 Container Repair & Maintenance 7 Wages & Benefits $0 $0 $0 $0 8 Parts & Supplies $0 $0 $0 $0 9 Container Depreciation $0 $0 $0 $0 10 Depreciation Other $0 $0 $0 $0 Subtotal Container R&M $0 $0 $0 $0 11 Other Indirect Costs $0 $0 $0 $0 12 Total Operations Costs $0 $0 $0 $0 Management & Admin. 13 Wages & Benefits $0 $0 $0 $0 14 Other G&A Costs $0 $0 $0 $0 15 Depreciation $0 $0 $0 $0 16 Subtotal Management & Admin $0 $0 $0 $0 17 Disposal & Processing Costs $0 $0 $0 $0 Interest Expense 18 Route Vehicle Interest $0 $0 $0 $0 19 Vehicle R&M Interest $0 $0 $0 $0 20 Container Interest $0 $0 $0 $0 21 Container R&M Interest $0 $0 $0 $0 22 Other Interest $0 $0 $0 $0 Total Interest Expense $0 $0 $0 $0 23 TOTAL COSTS BEFORE PROFIT $0 $0 $0 $0 24 Profit Percent Assumption 0.0% 25 Profit Assumption $0 $0 $0 $0 26 Estimated Contractor Compensation $0 $0 $0 $0 Instructions: 1. Enter Proposer name above. 2. Enter the assumed profit percentage in row 25, columns B - D and F. References to column letters and row numbers are to those inserted into the worksheet. Only populate green colored cells. Avoid overwriting aqua colored cells. ENTER PROPOSER NAME RESIDENTIAL City of Diamond Bar 2 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 381 Form 1.3 - Direct LaborABCDEFGHIJDirect Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours1 ASL Driver $0 $0 0.00 0.0% 0.0%2 Front Load Driver $0 $0 0.00 0.0% 0.0%3 Helper $0 $0 0.00 0.0% 0.0%4$0 $0 0.00 0.0% 0.0%5$0 $0 0.00 0.0% 0.0%6$0 $0 0.00 0.0% 0.0%7$0 $0 0.00 0.0% 0.0%8$0 $0 0.00 0.0% 0.0%9$0 $0 0.00 0.0% 0.0%10$0 $0 0.00 0.0% 0.0%11Total Single-Family - - $0 $0 $00.00 0.0% 0.0%Only populate green colored cells. Avoid overwriting aqua colored cells.SFDPROPOSER:ENTER PROPOSER NAMEInstructions: Enter proposed positions in Column A (e.g. MSW Driver, Recycling Driver, etc.) Enter proposed annual regular and overtime hours for SFD, Commercial & Multi-Family, and for Roll-Off & On-Call Services in Columns B and C . Enter Hourly Pay Rate in Column D. Enter Total Benefits & Other Employment Costs in column F to include all employment and fringe benefits costs such as vacation, medical, sick pay, PTO, uniforms, workers' compensation, payroll taxes, etc.RESIDENTIALOPTION:City of Diamond Bar3Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 382 Form 1.3 - Direct LaborDirect Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours12ASL Driver $0 $0 0.00 0.0%0.0%13Front Load Driver $0 $0 0.00 0.0%0.0%14Scout Driver $0 $0 0.00 0.0%0.0%15Helper $0 $0 0.00 0.0%0.0%16$0 $0 0.00 0.0%0.0%17$0 $0 0.00 0.0%0.0%18$0 $0 0.00 0.0%0.0%19$0 $0 0.00 0.0%0.0%20$0 $0 0.00 0.0%0.0%21$0 $0 0.00 0.0%0.0%22Total MFD - - $0 $0 $00.00 0.0%0.0%Direct Labor 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours23 Roll-off driver $0 $0 0.00 0.0% 0.0%24 Flat-bed driver $0 $0 0.00 0.0% 0.0%25$0 $0 0.00 0.0% 0.0%26$0 $0 0.00 0.0% 0.0%27$0 $0 0.00 0.0% 0.0%28$0 $0 0.00 0.0% 0.0%29Total On-Call - - $0 $0 $00.00 0.0% 0.0%30GRAND TOTAL DIRECT LABOR - - $0 $0 $00.00 0.0% 0.0%NOTESROLL-OFF BOX & ON-CALL SERVICES 3MFDCity of Diamond Bar4Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 383 Form 1.3 - Direct Labor1 Enter Employee classifications such as ASL driver, FL Driver, RL Driver, Scout Driver, Roll-Off Driver, Flat-Bed Driver, Relief Driver, Helper, etc.2 All employment costs other than wages but including workers' compensation, payroll taxes, and benefits such as uniforms, medical, pension, vacation, sick pay, PTO, etc.3 Only enter wages related to roll-off box service and temporary bins that have not been captured elsewhere.City of Diamond Bar5Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 384 Form 1.4 - Indirect WagesABCDEFGHIJ1Indirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours2Mechanic$0 $0 0.00 0.0%0.0%3Welder$0 $0 0.00 0.0%0.0%4$0 $0 0.00 0.0%0.0%5$0 $0 0.00 0.0%0.0%6$0 $0 0.00 0.0%0.0%7$0 $0 0.00 0.0%0.0%8TOTAL VEHICLE R&M - - $0 $0 $00.00 0.0%0.0% % Allocation Total9 SFD$010 MFD$011 Roll-Off$0Must Equal 100%==> 0.0% $0PROPOSER:Instructions: Enter proposed positions in Column A (e.g. Mechanic, etc.) Enter proposed annual regular and overtime hours in Columns B and C . Enter Hourly Pay Rate in Column D. Enter Total Benefits & Other Employment Costs in column F to include all employment and fringe benefits costs such as vacation, medical, sick pay, PTO, uniforms, workers' compensation, payroll taxes, etc. Enter percent allocation to SFD, Commercial and Roll-Off in Rows 10 through 11, Column B.ALLOCATION TO LINE OF BUSINESSENTER PROPOSER NAMEOnly populate green colored cells. Avoid overwriting aqua colored cells.VEHICLE REPAIR & MAINTENANCERESIDENTIALOPTION:City of Diamond Bar6Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 385 Form 1.4 - Indirect Wages12Indirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours13Welder $0 $0 0.00 0.0%0.0%14$0 $0 0.00 0.0%0.0%15$0 $0 0.00 0.0%0.0%16$0 $0 0.00 0.0%0.0%17$0 $0 0.00 0.0%0.0%18TOTAL CONTAINER R&M - - $0 $0 $00.00 0.0%0.0% % Allocation Total19 SFD$020 MFD$021 Roll-Off$0Must Equal 100%==> 0.0% $0ALLOCATION TO LINE OF BUSINESSCONTAINER REPAIR & MAINTENANCE 3City of Diamond Bar7Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 386 Form 1.4 - Indirect WagesIndirect Wages 1Annual Hours - RegularAnnual Hours - OvertimeHourly Wage RateAnnual Wages Annual Benefits & Other Employment Costs 2Annual Direct Labor CostsAnnual FTEs% Labor Burden% Total Hours22Operations Manager $0 $0 0.00 0.0%0.0%23Route Supervisor $0 $0 0.00 0.0%0.0%24$0 $0 0.00 0.0%0.0%25$0 $0 0.00 0.0%0.0%26$0 $0 0.00 0.0%0.0%27$0 $0 0.00 0.0%0.0%28$0 $0 0.00 0.0%0.0%29$0 $0 0.00 0.0%0.0%30$0 $0 0.00 0.0%0.0%31$0 $0 0.00 0.0%0.0%32$0 $0 0.00 0.0%0.0%33$0 $0 0.00 0.0%0.0%34$0 $0 0.00 0.0%0.0%35$0 $0 0.00 0.0%0.0%36$0 $0 0.00 0.0%0.0%37TOTAL MANAGEMENT & ADMIN - - $0 $0 $00.00 0.0%0.0% % Allocation Total38 SFD$039 MFD$040 Roll-Off$0Must Equal 100%==> 0.0% $041TOTAL INDIRECT WAGES - - $0 $0 $0 - 0.0% 0.0%NOTES1 Enter Employee classifications, e.g. . mechanics, welders, supervisors, operations manager, customer service representatives, etc.2 All employment costs other than wages, workers' compensation and payroll taxes, but including benefits such as; medical, pension, vacation, sick pay, PTO, etc.3 Include all personnel involved in container management, repair and maintenance including container delivery and pick-up drivers, welders, painters, etc.ALLOCATION TO LINE OF BUSINESSMANAGEMENT & ADMINISTRATIONCity of Diamond Bar8Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 387 Form 1.5 Equipment R&M ABCDE Route Vehicle Related Costs SFD Vehicles MFD Vehicles Roll-Off & On Call Services Vehicles Annual Cost 1 Parts $0 2 Oil $0 3 Tires $0 4 Outside Repairs $0 5 Taxes and Licenses $0 6 Other (Enter Here)$0 7 $0 8 $0 9 Subtotal Vehicle R&M $0 $0 $0 $0 10 Fuel $0 Container Repair & Maintenance SFD Vehicles MFD Vehicles Roll-Off & On Call Services Vehicles Annual Cost 11 Parts & Supplies $0 12 Other (Enter Here)$0 12 $0 13 $0 14 Subtotal Container O&M $0 $0 $0 $0 15 Total Container R&M $0 $0 $0 $0 Instructions: Enter route vehicle repair and maintenance costs. The cost categories in Column A are provided as examples. Each proposer is to enter descriptions consistent with their own cost classification. Only populate green colored cells. Avoid overwriting aqua colored cells. PROPOSER: OPTION: ENTER PROPOSER NAME RESIDENTIAL City of Diamond Bar 9 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 388 Form 1.6 Allocated Costs ABCDEF Vehicle Repair & Maintenance Container Management, Repair & Maintenance Management & Administrative Total 1. Other Indirect Costs 1 2 (Enter Description)$0 3 (Enter Description)$0 4 (Enter Description)$0 5 (Enter Description)$0 6 (Enter Description)$0 7 (Enter Description)$0 8 $0 9 $0 10 $0 11 Subtotal Other Indirect Cost $0 $0 $0 $0 2. Management & Administrative Costs 2 12 (Enter Description)$0 13 (Enter Description)$0 14 (Enter Description)$0 15 (Enter Description)$0 16 (Enter Description)$0 17 (Enter Description)$0 18 (Enter Description)$0 19 (Enter Description)$0 20 (Enter Description)$0 21 $0 22 $0 23 $0 24 $0 25 $0 26 $0 27 $0 28 $0 29 $0 30 $0 31 $0 32 Subtotal Management & Administrative Cost $0 $0 $0 $0 33 3. Other Depreciation (From CapEx YR-1) $0 $0 $0 $0 34 4. Other Interest (From CapEx YR-1) $0 $0 $0 $0 35 Total Costs to be Allocated $0 $0 $0 $0 ENTER PROPOSER NAMEPROPOSER: Only populate green colored cells. Avoid overwriting aqua colored cells. Instructions: Enter other indirect costs for Rows 2 to 10 and rows 12 to 31, in columns C, D E. The cost categories in Column A are provided as examples. Each proposer is to enter descriptions consistent with their own financial plan. Please note that Item 3. 'Other Depreciation' is populated from Form 1.7 'Cap-Ex', Column G, Row 62, 71, & 80; and Item 4. 'Interest Expense' is populated from Form 1.7 Cap-Ex, Column I, Row 62, 71, & 80 (all references to rows and columns in form not worksheet). Beginning with Item 5 and through Item 8, enter percentage allocation in Column B. Totals must equal 100% for each section. OPTION:RESIDENTIAL City of Diamond Bar 10 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 389 Form 1.6 Allocated Costs 5. Other Indirect Costs % Allocation Vehicle Repair & Maintenance Container Management, Repair & Maintenance Management & Administrative Total 46 SFD $0 $0 $0 $0 47 MFD $0 $0 $0 $0 48 Roll-Off Box & On-Call Services $0 $0 $0 $0 49 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 6. Management & Administrative Costs 50 SFD $0 $0 $0 $0 51 MFD $0 $0 $0 $0 52 Roll-Off Box & On-Call Services $0 $0 $0 $0 53 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 7. Other Depreciation 54 SFD $0 $0 $0 $0 55 MFD $0 $0 $0 $0 56 Roll-Off Box & On-Call Services $0 $0 $0 $0 57 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 8. Other Interest 58 SFD $0 $0 $0 $0 59 MFD $0 $0 $0 $0 60 Roll-Off Box & On-Call Services $0 $0 $0 $0 61 Total Costs Allocated Out: Must = 100%>> 0.0% $0 $0 $0 $0 NOTES 1 Enter "Other Indirect Costs such as Safety &Training, Uniforms, etc. 2 Enter "Other Management and Administrative Costs" such as Rent, Utilities, Telephone, Information Technology, Office Supplies, Bad Debt, Accounting, Legal, Public Outreach, Payments to the City (Other than Franchise Fee), etc. City of Diamond Bar 11 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 390 Form 1.7 CapEx ROW ABCDEFGHI Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 1 $0 $0 $0 2 $0 $0 $0 3 $0 $0 $0 4 $0 $0 $0 5 $0 $0 $0 6 $0 $0 $0 7 $0 $0 $0 8 $0 $0 $0 9 $0 $0 $0 10 $0 $0 $0 11 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 12 $0 $0 $0 13 $0 $0 $0 14 $0 $0 $0 15 $0 $0 $0 16 $0 $0 $0 17 $0 $0 $0 18 $0 $0 $0 19 $0 $0 $0 20 $0 $0 $0 21 $0 $0 $0 22 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 23 Roll-Off Trucks $0 $0 $0 24 $0 $0 $0 25 $0 $0 $0 26 $0 $0 $0 27 $0 $0 $0 28 - $0 $0 $0 29 - $0 $0 $0 TOTAL SFD VEHICLES TOTAL & MFD VEHICLES 3 ROLL-OFF BOX & ON-CALL SERVICES VEHICLES TOTAL ROLL-OFF & ON-CALL VEHICLES TOTAL VEHICLES 2 MFD VEHICLES PROPOSER: Only populate green colored cells. Avoid overwriting aqua colored cells. VEHICLES YEAR 1 CONVENTIONAL 1 SFD VEHICLES Instructions: This worksheet is includes inputs for Vehicles, Containers and Other Capital Costs. Enter other asset description, purchase price, salvage value, expected asset life and interest rate for cost of capital. OPTION: ENTER PROPOSER NAME RESIDENTIAL City of Diamond Bar 12 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 391 Form 1.7 CapEx Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 30 $0 $0 $0 31 $0 $0 $0 32 $0 $0 $0 33 $0 $0 $0 34 $0 $0 $0 35 $0 $0 $0 36 $0 $0 $0 37 $0 $0 $0 38 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 39 $0 $0 $0 40 $0 $0 $0 41 $0 $0 $0 42 $0 $0 $0 43 $0 $0 $0 44 $0 $0 $0 45 $0 $0 $0 46 $0 $0 $0 47 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 48 $0 $0 $0 49 $0 $0 $0 50 $0 $0 $0 96 $0 $0 $0 51 $0 $0 $0 52 - $0 $0 $0 53 - $0 $0 $0 CONTAINERS 4 SFD CONTAINERS TOTAL CONTAINERS 5 MFD CONTAINERS 6 ROLL-BOX & ON-CALL SERVICES CONTAINERS TOTAL ROLL-OFF & ON-CALL CONTAINERS TOTAL MFD CONTAINERS TOTAL SFD CONTAINERS City of Diamond Bar 13 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 392 Form 1.7 CapEx Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 63 Shop Truck $0 $0 $0 64 $0 $0 $0 65 $0 $0 $0 66 $0 $0 $0 67 $0 $0 $0 68 $0 $0 $0 69 $0 $0 $0 70 $0 $0 $0 71 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 72 Flatbed $0 $0 $0 73 $0 $0 $0 74 $0 $0 $0 75 $0 $0 $0 76 $0 $0 $0 77 $0 $0 $0 78 $0 $0 $0 79 $0 $0 $0 80 - $0 $0 $0 Description Price QTY Total Salvage Life Depreciation Interest Rate 1st Year Interest 54 Pickups $0 $0 $0 55 Vehicles $0 $0 $0 56 $0 $0 $0 57 $0 $0 $0 58 $0 $0 $0 59 $0 $0 $0 60 $0 $0 $0 61 $0 $0 $0 62 - $0 $0 $0 81 - $0 $0 $0 82 - $0 $0 $0 8 OTHER: CONTAINER MANAGEMENT, REPAIR & MAINTENANCE TOTAL OTHER MANAGEMENT ADMIN., VEHICLE R&M, CONTAINER R&M GRAND TOTAL TOTAL OTHER MANAGEMENT ADMIN TOTAL OTHER VEHICLE R&M TOTAL OTHER CONTAINER R&M OTHER CAPITAL COSTS 9 OTHER: MANAGEMENT & ADMINISTRATIVE 7 OTHER: VEHICLE REPAIR & MAINTENANCE City of Diamond Bar 14 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 393 Form 1.8 Disposal and Processing Costs PROPOSER: OPTION: Row Facility Tons $/Ton Total Cost 1 $0 2 $0 3 $0 4 Solid Waste Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 5 $0 6 $0 7 $0 8 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 9 $0 10 $0 11 $0 12 Organics Processing Total 0.0 -$ $0 13 SFD TOTAL 0.0 -$ $0 RESIDENTIAL ENTER PROPOSER NAME Instructions: For each waste stream e.g. landfill disposal, solid waste processing, recyclables processing, Organics, etc., enter the projected tonnage, tipping fee per ton. If transportation from facility to facility is required, enter tons and costs per ton to transport. Waste streams are examples only, enter consistent with your proposed plans. RESIDENTIAL (SINGLE-FAMILY DWELLINGS) Only populate green colored cells. Avoid overwriting aqua colored cells. Solid Waste (Trash) Recycling Processing Organics Processing City of Diamond Bar 15 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 394 Form 1.8 Disposal and Processing Costs Facility Tons $/Ton Total Cost 14 $0 15 $0 16 $0 17 Solid Waste Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 18 $0 19 $0 20 $0 21 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 22 $0 23 $0 24 $0 25 Organics Processing Total 0.0 -$ $0 26 MFD TOTAL 0.0 -$ $0 Solid Waste (Trash) Recycling Processing Organics Processing MFD City of Diamond Bar 16 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 395 Form 1.8 Disposal and Processing Costs Facility Tons $/Ton Total Cost 27 $0 28 $0 29 $0 30 MSW Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 31 $0 32 $0 33 $0 34 Recycling Processing Total 0.0 -$ $0 Facility Tons $/Ton Total Cost 35 $0 36 $0 37 $0 38 Organics Processing Total 0.0 -$ $0 39 ROLL-OFF BOX & ON-CALL TOTAL 0.0 -$ $0 Refuse Recycling Processing Organics Processing ROLL-OFF BOX & ON-CALL City of Diamond Bar 17 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 396 RFP ATTACHMENT 7RATE PROPOSAL FORMSInstructions: Input data requested in FORMS 2.0 through 2.4. Only input into green colored cells.FORM Content2.0 Rate Revenue Summary2.1 SFD Year-One Proposed Rates2.2 MFD Year-One Proposed Rates2.3 Roll-Off and On-Call Year-One Proposed Rates (Roll-Off, Temporary Clean-Up Bins, & MFD Bulky Item Collection)2.4 Other Charges Year-One Proposed RatesCity of Mission Viejo18Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 397 ENTER PROPOSER NAME RESIDENTIAL ACD Row Service Category Proposed Rate Revenue Estimated Rate Revenue 1 Residential Service Rate Revenue1 $5,993,688 2 MFD Service Rate Revenue1 $0 3 Drop-Off & Other On-Call Rate Revenue1 $0 4 Estimated First-Year Rate Revenue1 $5,993,688 City Fees 5 Franchise Fee 2 4.79% $287,000.00 6 CalRecycle Compliance Fee $375,000 7 Residential Vehicle Impact Fee $175,000 8 Residential Street Sweeping Fee $175,000 9 Total First-Year City Fees $1,012,000 10 Estimated First-Year Rate Revenue Less City Fees $4,981,688 11 Estimated Contractor Compensation (From Form 1.1) $0 12 Difference Between Rate Revenue and Estimated Contractor Compensation 3 $4,981,688 NOTES 1 Includes City Fees 2 3 FORM 2.0: RATE REVENUE SUMMARY Franchise fees represent the City's value of franchise. Proposer may agree or offer a different amount. Instructions: Confirm the reasonableness of total estimated first-year rate revenue (row 4, column D) based upon proposed rates and estimated service counts; and, drop box, temporary bins, and bulky items entered in forms 2.1 - 2.4. The Estimated First-Year Rate Revenue in row 10 and Esimated Contractor Compensation in row 11 should equal - explain any variation. The rate revenue generated by the service levels assumptions and rates proposed in Forms 2.1 through 2.4 should equal the estimated contractor compensation in form 1.1. Proposer shall explain any material difference between proposed first-year rate revenues and its estimated first-year Contractor Compensation. Proposer: Option: City of Diamond Bar 19 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 398 Proposer: Option: ABCDEF Row Service Description Monthly Rate Service Count Per Unit, Event, Etc. Monthly Revenue Annual Revenue 1 Single-Family Dwelling - 35 gallon trash cart $26.04 2,345.0 Unit / Month $61,064 $732,768 2 Single-Family Dwelling - 64 gallon trash cart $32.09 9,254.0 Unit / Month $296,961 $3,563,532 3 Single-Family Dwelling - 96 gallon trash cart $38.50 3,674.0 Unit / Month $141,449 $1,697,388 4 Single-Family Dwelling - 35 gallon trash cart - senior discounted $22.41 Unit / Month $0 $0 5 Single-Family Dwelling - 64 gallon trash cart - senior discounted $27.67 Unit / Month $0 $0 6 Single-Family Dwelling - 96 gallon trash cart - senior discounted $33.00 Unit / Month $0 $0 7 Total Units 15,273.0 8 $499,474 $5,993,688 Service Description Monthly Rate 9 Additional charge for 35 gallon trash cart beyond (1) one. Not to exceed 20% of trash cart Row 1 Column B. 1 $5.21 10 Additional charge for 64 gallon trash cart beyond (1) one. Not to exceed 20% of trash cart Row 2 Column B. 1 $6.42 11 Additional charge for 96 gallon trash cart beyond (1) one. Not to exceed 20% of trash cart Row 3 Column B. 1 $7.70 12 Additional charge for recyclables cart beyond (2) two. Not to exceed 7% of 64 gallon trash cart Row 2 Column B. 2 $2.25 13 Additional charge for organics cart beyond (2) two. Not to exceed 20% of 64 gallon trash cart Row 2 Column B. 3 $6.42 14 Additional charge for backyard service. 4 15 Additional charge for refuse cart overage beyond two (2) annual pickup events and one (1) year-end pickup. Not to exceed 20% of trash cart Row 2 Column B. 5 $6.42 16 Cart Overage Charge for overflowing container upon second and subsequent occurrence in 3-month period. Not to exceed 20% of trash cart Row 2 Column B.$6.42 17 Bulky Item Pickup - Beyond four (4) pickup collection events per calendar year. 6 18 Contamination Fee upon third and subsequent occurrence in 12-month period. 20 Damaged Cart Replacement 7 21 Cart Exchange after free after free-exchange period. 25 Late Payment charge for unpaid balance per month after 75 days past due date.1.50% 26 Service Reinstatement charge after suspension for non-payment $75.00 Unit / Month Per Event Per Event % of Monthly Balance Per Cart / Event Total Proposed Rate Revenue==> Per Event Per Event Per Event Per Cart / Event Single-Family Dwelling Other Services and Charges Per Unit, Event, Etc. Unit / Month Unit / Month Unit / Month Unit / Month Unit / Month FORM 2.1: SFD Year-One Proposed Rates Only populate green colored cells. Avoid overwriting aqua colored cells. Single-Family Dwelling Standard Service: Instructions: For Rows 1 through 5, enter proposed rates in Column B. For Rows 7 through 24, enter proposed rates for other services and charges. Standard Service includes three (3) carts; One each for refuse, recycling, and organics. The Monthly Rate is based on the refuse cart size chosen by the customer. Customers may choose 35, 64, or 96-gallons carts for recycling and/or organics. Default sizes for all three waste streams are 64 gallon. NTER PROPOSER NAM RESIDENTIAL City of Diamond Bar 20 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 399 Row Service Description Monthly Rate Service Count Per Unit, Event, Etc. Monthly Revenue Annual Revenue NOTES 1 2 3 4 5 6 7 Contractor shall roll out and return carts for any Customer who is legally or medically recognized as disabled at no additional charge. Contractor may charge for additional pickups beyond two annual pickups per calendar year and an end-of-year pickup for trash. Contractor may charge for additional bulky item pickups beyond four annual pickups per calendar year. Customers may put out up to 3 cubic yards of material at each pickup event. Contractor may charge for replacement of carts if due to provable negligence . Basic service includes one (1) cart for trash. Customers may order additional carts at an additional charge. Basic service includes up to two (2) carts for recyclables. Customers may order additional recyclables carts at an additional charge. This rate will apply to any size cart. Basic service includes up to two (2) carts for organics. Customers may order additional organics carts at an additional charge. City of Diamond Bar 21 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 400 Proposer: Option: ABCDEFGH 123456 1 70 Gal Cart $41.31 2 98 Gal Cart 3 1.5 cubic yard - 1st bin $109.74 $180.35 4 1.5 cubic yard - each addl $98.77 $162.31 5 2 cubic yard - 1st bin $125.68 $217.90 $297.89 $385.50 $477.75 $557.74 $47.98 6 2 cubic yard - each addl $113.10 $196.10 $268.11 $346.96 $429.98 $501.96 7 3 cubic yard - 1st bin $155.60 $257.97 $362.11 $470.26 $576.41 $703.49 $55.56 8 3 cubic yard - each addl $140.03 $232.14 $326.00 $423.23 $518.78 $633.15 9 4 cubic yard - 1st bin $197.00 $317.05 $439.84 $626.43 $749.22 $910.07 $63.17 10 4 cubic yard - each addl $177.28 $285.34 $395.83 $563.78 $674.31 $819.08 11 6 cubic yard - 1st bin $235.15 $388.45 $543.72 $790.24 $943.57 $1,139.84 $73.37 12 6 cubic yard - each addl $211.63 $349.61 $489.34 $711.23 $849.21 $1,028.87 13 123456 14 2 cubic yard compactor 15 3 cubic yard compactor 16 4 cubic yard compactor 17 6 cubic yard compactor 18 123456 19 70 Gal Cart $20.54 $0.00 $0.00 20 98 Gal Cart $20.54 $0.00 $0.00 21 1.5 cubic yard - 1st bin $54.87 $90.18 $0.00 $0.00 $0.00 $0.00 $0.00 22 1.5 cubic yard - each addl $49.39 $81.16 $0.00 $0.00 $0.00 $0.00 $0.00 23 2 cubic yard - 1st bin $62.84 $108.95 $148.95 $192.75 $238.88 $278.87 $23.99 24 2 cubic yard - each addl $56.55 $98.05 $134.06 $173.48 $214.99 $250.98 $0.00 25 3 cubic yard - 1st bin $77.80 $128.99 $181.06 $235.13 $288.21 $351.75 $27.78 26 3 cubic yard - each addl $70.02 $116.07 $163.00 $211.62 $259.39 $316.58 $0.00 27 Row Container Type/Size Frequency of Collections per Week Additional Pick Up Proposed Monthly Rates for Trash Compactors Row Container Type/Size Frequency of Collections per Week Additional Pick Up Additional Pick Up Proposed Monthly Rates for Recycling Containers Proposed Monthly Rates for Trash Containers Row Container Type/Size Frequency of Collections per Week Only populate green colored cells. Avoid overwriting aqua colored cells. Instructions: In columns B - H, enter proposed rates in green colored cells rows 1 - 13 for trash; rows 14 - 17 for trash compactors; rows 19 - 26 for recycling, rows 28 - 31 for organics, and rows 33 - 40 for other charges. Form 2.2: Commercial/MFD Year-One Proposed Rates ENTER PROPOSER NAME RESIDENTIAL City of Diamond Bar 22 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 401 Proposer: Option: IJKLMNOP 123456 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 123456 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 123456 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Subscription Levels for Trash Compactors Frequency of Collections per Week Additional Pick Up Total Frequency of Collections per Week Additional Pick Up Total RESIDENTIAL Subscription Levels for Recycling Containers Frequency of Collections per Week Additional Pick Up Subscription Levels for Trash Containers Commercial/MFD Year-One Proposed Rates This subscription level were provided by the existing franchise hauler. Each Proposer must review and proposed projected subscription levels based on their own program/technology expectations. ENTER PROPOSER NAME City of Diamond Bar 23 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 402 Proposer: Option: QRSTUVW X 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Solid Waste Bins==>$0.00 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Solid Waste Compactors==>$0.00 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Recycling Material==>$0.00 Frequency of Collections per Week Additional Pick Up Total Commercial/MFD Year-One Proposed Rates ENTER PROPOSER NAME RESIDENTIAL THIS WORKSHEET WILL SELF-POPULATE - NO INPUT NECESSARY!!!! Total Proposed 1st Year Monthly Rate Revenue for Trash Compactors Proposed 1st Year Monthly Rate Revenue for Recycling Containers Frequency of Collections per Week Additional Pick Up Total Additional Pick Up Frequency of Collections per Week Proposed 1st Year Monthly Rate Revenue for Trash Containers City of Diamond Bar 24 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 403 ABCDEFGH Only populate green colored cells. Avoid overwriting aqua colored cells. 123456 28 70 Gal Cart $46.81 $93.61 $140.42 $187.22 $234.03 $280.84 $0.00 29 98 Gal Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 30 2 cubic yard - 1st bin $109.74 $180.35 $0.00 $0.00 $0.00 $0.00 $0.00 31 2 cubic yard - each addl $98.77 $162.31 $0.00 $0.00 $0.00 $0.00 $0.00 32 123456 33 Scout Service $78.66 $187.41 $281.41 $374.83 $468.53 $562.23 34 Container Lock Charge $13.66 35 Enclosure Lock Charge 36 Pull-out Exceeding 25 feet 37 Sunday Service - Each Service 38 Valet Service for Carts $6.00 39 40 NOTES 1 2 3 Proposed Monthly Rates for Other Services Row Service Type Frequency of Collections per Week Additional Pick Up Row Container Type/Size Frequency of Collections per Week Additional Pick Up Proposed Monthly Rates for Organics Containers City of Diamond Bar 25 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 404 IJKLMNOP 123456 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 123456 Subscription Levels for Other Services Frequency of Collections per Week Additional Pick Up Total Subscription Levels for Organics Containers Frequency of Collections per Week Additional Pick Up Total City of Diamond Bar 26 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 405 QRSTUVW X THIS WORKSHEET WILL SELF-POPULATE - NO INPUT NECESSARY!!!! 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Organic Material==>$0.00 123456 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Subtotal Monthly Rate Revenue for Other Services==>$0.00 $0.00 $0.00 Proposed 1st Year Monthly Rate Revenue for Other Services Frequency of Collections per Week Additional Pick Up Total Total Proposed Monthly Rate Revenue==> Total Proposed Annual Rate Revenue==> Frequency of Collections per Week Additional Pick Up Total Proposed 1st Year Monthly Rate Revenue for Organics Containers City of Diamond Bar 27 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 406 Proposer: Option: ABCDEF Row Container Size/Type Customer Rate Service Count Estimated Rate Revenue Roll-Off Box Hauling Service 1 Roll off boxes and compactors (all sizes). Includes delivery and removal.per haul # of pulls $0 3 Subtotal Roll-Off Service 0.0 # of pulls $0 Roll-Off Disposal/Processing & Other Fees 5 Solid waste processing (MRF) 1 per ton # of tons $0 9 C&D processing 2 per ton # of tons $0 10 Redelivery/Return trip/Dry run per event # of events $0 11 Daily rental after 7 days with no dump per day # of days $0 12 Relocation fee per event # of events $0 13 per event # of events $0 14 Subtotal Roll-Off Disposal/Processing 0.0 $0 15 Total Roll-Off Revenue $0 Temporary Bin 16 3YD Bin - deliver, pickup and one dump per event # of events $0 17 3YD Bin additional dump per event # of events $0 18 6YD Bin - deliver, pickup and one dump per event # of events $0 19 6YD Bin additional dump per event # of events $0 20 Daily rental after 7 days Per Day # of Days $0 MFD Bulky Item Collection 21 Bulky Item Pickup - beyond four (4) pickup collection events per year.Per event # of events $0 24 Total Annual Rate Revenue $0 NOTES 1 State percentage recovery minimum in proposal. 2 75% minimum diversion. Form 2.3: Roll-Off & On-Call Service Year-One Proposed Rates ENTER PROPOSER NAME Instructions: Enter proposed rates for roll-box and compactor service, disposal and processing, temporary bins service and bulky item collection in column B and assumed service subscriptions in column D. Only populate green colored cells. Avoid overwriting aqua colored cells. RESIDENTIAL City of Diamond Bar 28 Prepared by Sloan Vazquez McAfee 1/4/2024 7.2.a Packet Pg. 407 Proposer:Option:ABCRow DescriptionFee1 Bin cleaning bin fee beyond one (1) per per year. per event2Bin Enclosure clean-out fee due to overflowing containers. per event3Bin Exchange beyond once per Agreement Yearper event4Bin Contamination Fee upon third and subsequent occurrence in 12-month period.per event5Emergency Service - 1 Crew & 1 Truck per hour6789101112ENTER PROPOSER NAMEForm 2.4: Other Charges and Fees Year-One Proposed FeesInstructions: Enter proposed rates charges and fees in column B.Only populate green colored cells. Avoid overwriting aqua colored cells.RESIDENTIALCity of Diamond Bar29Prepared by Sloan Vazquez McAfee1/4/20247.2.a Packet Pg. 408 City of Diamond Bar, California Attachment 8. Proposal Outline RFP for Solid Waste Services May 3, 2023 Page 1 PROPOSAL OUTLINE Proposers must follow the outline below when completing their proposals. Under each section, proposer must include all information as outlined below, including all subheadings and subsections as identified in RFP Section 5 – Submittal Requirements. General Requirements i. Title Page ii. Cover Letter iii. Table of Contents 2. Proposer Overview 1. Business Structure 2. Proposer’s Experience 3. Key Personnel Qualifications 4. Proposer’s Past and Pending Litigation 5. Financial Information 6. Insurance 3. Proposal for Solid Waste Services 1. Collection Services Approach 2. Customer Service Center 3. Implementation Plan 4. AB 341, AB 1826, and SB 1383 Implementation Plan 5. Food and Rescue Donation Program 6. Organics Waste Recycling Program 7. Recyclable Materials 8. Procurement of Received Organic Waste Products 9. Proposed Operation Facilities 10. Proposed Disposal, Transfer, and Processing Facilities 4. Displaced Employee Retention 5. Exceptions to the Agreement 6. Rate Proposals 1. Residential Sector Rate Proposal 2. Commercial Sector Rate Proposal 3. City-Wide Rate Proposal 4. Alternative Rate Proposal(s) 7. Proposer Code of Conduct 7.2.a Packet Pg. 409 Subject: City of Diamond Bar RFP Addendum #1 - June 12, 2023 From: Enrique Vazquez <enrique@sloanvazquez.com> Date: 6/12/2023, 3:16 PM To: "Quiroa, Lily" <LQuiroa@wm.com>, David Perez <DavidPerez@zerepmanagement.com>, Jesse Quintana <JesseQuintana@zerepmanagement.com> CC: 'Alfa Lopez' <ALopez@DiamondBarCA.Gov> Lily Quiroa - WM, David Perez - VVS, AƩached is addendum #1 to the RFP. It includes the following; 1. DraŌ Franchise Agreement: AƩachment 1 2. The Rate Adjustment Procedure is now included in the DraŌ Agreement. 3. Updated RFP: Changes in the RFP mostly reflect updated references to secƟons of the franchise agreement. A version of enƟre RFP with the updates shown in track changes is also included. 4. An updated RFP schedule. The deadline to submit quesƟons is now July 10, 2023 by 5:00 p.m. If you've already submiƩed quesƟons you are welcome to submit addiƟonal quesƟons. All quesƟons already submiƩed will be responded to in wriƟng. Please acknowledge receipt of this addendum. Thank you all for your parƟcipaƟon. Regards, -- Enrique Vazquez Sloan Vazquez McAfee 626-347-3226 www.sloanvazquez.com AƩachments: DB RFP Addendum #1.pdf 253 KB DB RFP Addendum #1-EnƟre RFP.pdf 492 KB Diamond Bar DraŌ Agreement.docx 350 KB Exhibit 2A Rate Adjustment Procedure -SFD Carts.pdf 167 KB Exhibit 2B Rate Adjustment Procedure -Bins.pdf 167 KB Exhibit 2C Rate Adjustment Procedure -Roll-Off Boxes.pdf 144 KB Exhibit 2D Rate Adjustment Procedure -Other.pdf 123 KB Exhibit 2E Example Index CalculaƟon.pdf 154 KB Exhibit 6 Corporate Guaranty.pdf 147 KB ͓ͳǦ ͳʹǡʹͲʹ͵ ͳʹ ͳȀͶȀʹͲʹͶǡͳͳǣ͵͵ 7.2.a Packet Pg. 410 Exhibit 7 - Contractor's Faithful Performance Bond.pdf 95.8 KB Rate Adjustment Procedure.xlsx 34.3 KB ͓ͳǦ ͳʹǡʹͲʹ͵ ʹʹ ͳȀͶȀʹͲʹͶǡͳͳǣ͵͵ 7.2.a Packet Pg. 411 City of Diamond Bar, California Addendum #1 RFP for Solid Waste Services June 12, 2023 Page 1 REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES ADDENDUM #1 Issued by Prepared by: 3002 Dow Avenue, Suite 116, Tustin, CA 92780 Office: 866.241.4533 info@sloanvazquez.com · www.sloanvazquez.com Contact: Enrique Vazquez enrique@sloanvazquez.com 626-347-3226 June 12, 2023 7.2.a Packet Pg. 412 City of Diamond Bar, California Addendum #1 RFP for Solid Waste Services June 12, 2023 Page 2 THIS ADDENDUM #1 ISSUED JUNE 12, 2023 REFLECTS THE FOLLOWING UPDATES: 1) Updated RFP: The references in the RFP have been updated to reflect the final structure of the Draft Franchise Agreement. To facilitate locating the specific updates made to the RFP, the original RFP version with tracked changes is included with this Addendum #1. 2) Updated Schedule: The RFP schedule has been updated to allow adequate time to respond to the RFP. 3) Attachment #1: The Draft Franchise Agreement is included as Attachment 1. 4) Attachment #7: The Rate Adjustment Methodology has been included in the Draft Franchise Agreement Article 10 and Exhibit 2. SUMMARY OF UPDATES Table 1 has been updated to reflect the updated schedule as follows: Table 1 – Updated RFP Schedule Note: The City reserves the right to modify this schedule as needed. Milestones Date City issues RFP May 3, 2023 Mandatory pre-proposal meeting at 10:00 a.m. May 10, 2023 Distribution of Addendum #1 June 12, 2023 Deadline to submit written questions by 5 p.m. July 10, 2023 Distribution of Addenda July 20, 2023 Proposals Due no later than 4 p.m. August 30, 2023 Option to Release RFP to Public October 19, 2023 Evaluation Results Reported to City Council December 20, 2023 Final Selection and Approval January 16, 2023 Contractor commences providing services September 1, 2025 7.2.a Packet Pg. 413 City of Diamond Bar, California Addendum #1 RFP for Solid Waste Services June 12, 2023 Page 3 The attachments under Section 2: Background Information now includes the following; x Attachment 1 is the Draft Agreement. x Attachment 7 This attached has been rescinded. The Rate Adjustment Methodology is now included in the Draft Franchise Agreement. The following reflect other updates in the RFP including updated references to the draft agreement to reflect the final structure of the Draft Franchise Agreement and a change in the RNG use in Vehicles. SECTION 3: C&D DEBRIS SERVICES. All loads of mixed C&D debris shall be delivered to a processing facility to meet all requirements described in draft Agreement Section 3.75.2.4. Contractor shall divert from landfilling a minimum of 75% or the State-mandated Construction and Demolition diversion percentage, whichever is greater, of all Construction and Demolition Debris Collected. SECTION 3: CITY COLLECTION SERVICES: City Facilities Collection: Collect and dispose of all refuse, recyclables, and organics generated and accumulated at premises owned and/or operated by the City at no additional charge (including e-waste, and construction and demolition debris) and in compliance with AB 341, AB 1826, and SB 1383. Such premises include, but are not limited to, offices, parks, and street maintenance operations. See Attachment 4 for the current list of facilities and service levels. These facilities and service levels may vary over the term of the new agreement, with no increase in compensation for additional collection services. (Refer to draft Agreement Section 3.73.8.) SECTION 3: KEY CONTRACT TERMS Environmental Coordinator: To achieve a high level of recycling public education and awareness, the Contractor shall designate an Environmental Coordinator to the City to complete outreach to SFD, MFD and Commercial customers, and develop and implement all public education and outreach activities required under the Agreement. The Recycling Coordinator shall conduct outreach, promote waste reduction, recycling, diversion programs, and provide technical assistance to Multi-family and Commercial Customers. The Environmental Coordinator shall not be the primary Contractor liaison described in draft Agreement Section 7.16B4.4.9. SECTION 3: INSURANCE The selected Contractor is required to maintain minimum insurance levels. See draft Agreement Section 11.8 Article 9 for the minimum limits of insurance for general liability, automobile liability, and workers compensation. 7.2.a Packet Pg. 414 City of Diamond Bar, California Addendum #1 RFP for Solid Waste Services June 12, 2023 Page 4 SECTION 3: COLLECTION VEHICLE REQUIREMENTS Contractor’s collection vehicles shall be not older than two-years and in like-new condition upon initiation of services under the Agreement, no more than 10 years of age during the initial term of the Agreement and no older than 15-years in age during any future extensions of the Agreement, and comply with Department of Transportation, South Coast Air Quality Management District and the California Air Resource Board requirements. Contractor’s collection vehicles must use only renewable natural gasgas alternative fuel. See draft Agreement Section 4.2.2.D3.10.4. Proposers must address their ability to assist the City comply with SB 1383 RNG procurement obligations with the use of RNG powered collection vehicles. SECTION 3: FEES Franchise Fee: Contractor shall pay a Franchise Fee that is commensurate with the value to be received by Contractor in receiving the exclusive right to provide the service set forth herein. The City concludes that a reasonable and appropriate amount for the benefits provided should be a minimum of Four- Hundred Ten-Thousand Dollars, ($410,000), in the first year. This payment to the City shall be referred to as a Franchise Fee and its percentage will be calculated according to estimated gross receipts from customers as shown in Form 2.0 Rate Revenue from Attachment 6 Rate Proposal Forms. (See draft Agreement Section 97.1). Should the City issue separate franchises for Residential and Commercial services, the commercial franchise fee shall be a minimum of One-Hundred Twenty-Three Hundred Dollars ($123,000) and the residential franchise fee shall be a minimum of Two-Hundred Eighty-Seven Thousand Dollars ($287,000). CALRECYCLE Compliance Fee: Contractor shall pay to the City a CalRecycle Compliance Fee of Seven- Hundred Fifty Thousand Dollars ($750,000) adjusted annually as described in draft Agreement Section 97.2 and 9.77.6. The CalRecycle Compliance Fee amount represents a reasonable allocation of the City’s budgeted costs to comply with State mandates resulting from the enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016) which require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. Should the City issue separate franchises for Residential and Commercial services, each franchisee shall pay a minimum CalRecycle fee of Three-Hundred Seventy-Five Thousand Dollars ($375,000). Residential Vehicle Impact Fee: Contractor shall pay to the City an annual Vehicle Impact Fee of One- Hundred Seventy-Five Thousand Dollars ($175,000) adjusted annually as described in draft Agreement Section 9.47.3 and 9.77.6. The Residential Vehicle Impact Fee is to reimburse the City for costs to provide road maintenance to City’s streets due to “wear and tear” caused by the use of Contractor’s Solid Waste Collection vehicles on City Streets. Should the City issue separate franchises for Residential and Commercial services, only the residential franchisee shall pay the Residential Vehicle Impact Fee. 7.2.a Packet Pg. 415 City of Diamond Bar, California Addendum #1 RFP for Solid Waste Services June 12, 2023 Page 5 Residential Street Sweeping Fee: Contractor shall pay to the City an annual Street Sweeping Fee of One- Hundred Seventy-Five Thousand Dollars ($175,000) adjusted annually as described in draft Agreement Section 9.57.4 and 9.77.6. The Residential Street Sweeping Fee is to reimburse the City for the cost of sweeping residential streets. Should the City issue separate franchises for Residential and Commercial services, only the residential franchisee shall pay the Residential Street Sweeping Fee. SECTION 3: CUSTOMER RATE ARRANGEMENTS The rate schedules establish the maximum rates that may be charged. Initial rates will be set based on the rates proposed in Attachment 6. The rates will thereafter be adjusted using a rate adjustment procedure described in Article 108 of the draft Agreement. The first rate adjustment is effective July 1, 2026. SECTION 5: 2.4 PROPOSER’S PAST AND PENDING LITIGATION List all civil or misdemeanor or felony criminal court or administrative filings by and/or against California government agencies that are currently pending and/or that have been filed, settled or otherwise received a disposition within the last ten years that relate to the provision of solid waste service listing the names of the parties, the case number, and a brief description of the case and disposition, if any. This paragraph is applicable to the following persons and entities: x The key personnel x The owners and officers of the company x The entity submitting the proposal; and/or, x Any parent or affiliated company for actions filed in the State of California (For affiliates, proposer may limit disclosures of non-criminal matters to those in the Los Angeles County. x Any strategic partners or subcontractors identified in RFP. x Include the resolution and current status of each civil legal action. Note: The term "affiliate" as used in this RFP is defined in Article Section 1.1 of the Agreement. SECTION 5: 2.6 INSURANCE Proposer must submit evidence that the proposer either has, or is able to obtain, the insurance coverage required in the draft Agreement Section 11.89. SECTION 5: 3.1 COLLECTION SERVICES APPROACH x Container requirements are described in draft Agreement Section 7.104.3. Proposer shall supply complete technical data and manufacturing specifications on the specific cart, bins and Drop Boxes being used. 7.2.a Packet Pg. 416 REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES Updated to Reflect Addendum #1 July 12, 2023 Issued by Prepared by: 3002 Dow Avenue, Suite 116, Tustin, CA 92780 Office: 866.241.4533 info@sloanvazquez.com · www.sloanvazquez.com Contact: Enrique Vazquez enrique@sloanvazquez.com 626-347-3226 Original Issue Date: May 3, 2023 7.2.a Packet Pg. 417 City of Diamond Bar, California Table of Contents RFP for Solid Waste Services May 3Updated July 12, 2023 Page ii tABLE OF cONTENTS SECTION 1 - INTRODUCTION ............................................................................................................... 1 Overview of Request for Proposal ................................................................................................... 1 Proposal Clarifications and Updates ................................................................................................ 1 City Goals and Objectives ............................................................................................................... 2 Organization of RFP ........................................................................................................................ 2 RFP Schedule .................................................................................................................................. 3 SECTION 2 - BACKGROUND ................................................................................................................. 4 Background Information ................................................................................................................. 4 Service Data ................................................................................................................................... 4 Term of New Agreement or Agreements ......................................................................................... 4 SECTION 3 - SCOPE OF REQUIRED SERVICES ........................................................................................ 5 Single-Family Dwelling (SFD) Solid Waste Services ........................................................................... 5 Commercial Solid Waste Services (Including Multifamily Premises of 5 or more units) ..................... 7 C&D Debris Collection Services ....................................................................................................... 8 City Solid Waste services ................................................................................................................ 9 Key Contract Terms ...................................................................................................................... 10 SECTION 4 - RFP POLICIES, CONDITIONS, AND PROCESS .................................................................... 15 Rights Reserved by the City .......................................................................................................... 15 General RFP Requirements ........................................................................................................... 15 Code of Conduct ........................................................................................................................... 16 Proposal Submittal Requirements ................................................................................................. 16 Limits on Disclosure of Proposals .................................................................................................. 19 SECTION 5 - SUBMITTAL REQUIREMENTS .......................................................................................... 21 Proposal Outline .......................................................................................................................... 21 1. General Requirements ...................................................................................................... 21 2. Proposer OVerview .......................................................................................................... 21 3. Proposal for Solid Waste Services ..................................................................................... 24 4. Displaced Employee Retention ......................................................................................... 28 5. Exceptions to the Agreement ............................................................................................ 28 7.2.a Packet Pg. 418 City of Diamond Bar, California Table of Contents RFP for Solid Waste Services May 3Updated July 12, 2023 Page iii 6. Rate Proposals ................................................................................................................. 28 7. Proposer Code of Conduct and Non-Collusion Affidavit ..................................................... 29 SECTION 6 - PROPOSAL EVALUATION PROCESS ................................................................................. 30 Proposal Evaluation Criteria.......................................................................................................... 31 AWARD ........................................................................................................................................ 33 LIST OF ATTACHMENTS .................................................................................................................... 34 ATTAHCMENT 1: DRAFT AGREEMENT ATTACHMENT 2: PROPOSER CODE OF CONDUCT AND NON-COLLUSION AFFIDAVID ATTACHMENT 3: SERVICE DATA ATTACHMENT 4: CURRENT RATES ATTACHMENT 5: CITY FACILITIES ATTACHMENT 6: RATE PROPOSAL FORMS ATTACHMENT 7: RATE ADJUSTMENT METHODOLOGY ATTACHMENT 8: PROPOSAL OUTLINE LIST OF TABLES Table 1 – RFP Schedule ................................................................................................................................. 3 7.2.a Packet Pg. 419 City of Diamond Bar, California Section 1. Introduction RFP for Solid Waste Services May 3Updated July 12, 2023 Page 1 SECTION 1 - INTRODUCTION OVERVIEW OF REQUEST FOR PROPOSAL The City of Diamond Bar (City) is soliciting proposals from Waste Management and Valley Vista Services to provide solid wastes services to include the collection, transportation, recycling, processing, and disposal of solid waste. Currently, solid waste services are provided under a Residential Cart Customer Franchise Agreement with Waste Management (WM) and a Commercial Bin and Roll-Off Box Franchise Agreement with Valley Vista Services (VVS). WM provides collection services to residential premises that receive residential collection using carts and for temporary roll-off box and temporary bin collection service for cleanup or construction work performed at residential customers to whom WM provides collection service using carts. Temporary collection service for the construction of new residences, and all work on commercial premises, and residential premises that receive collection service using bins, are excluded from WM’s franchise agreement. VVS provides collection services to commercial premises and all residential premises that receive collection using bins and including temporary bin and temporary roll-off box collection service with the exclusion of residential premises that receive collection service using carts. By issuing this Request for Proposals (RFP) for solid waste services, the City is competitively procuring franchised solid waste services. VVS and WM are exclusively invited to present a proposal to provide solid waste service to their respective service area under the existing franchise agreements as well as a proposal to provide City-wide solid waste services including residential, commercial, and permanent roll- off and on-call services. Should the City determine that proposals received from VVS and WM are inadequate to meet the City desired goals, the City reserves the right to invite additional proposers prior to making a final decision in the selection of a contractor or contractors. A key point of reference is the Draft Solid Waste Services Franchise Agreement (Agreement) included as Attachment 1. The Agreement provides definitions, contract terms, and conditions, including a complete description of the services to be provided. If there are differences between this RFP and the Agreement, the terms and conditions in the Agreement shall prevail. PROPOSAL CLARIFICATIONS AND UPDATES Proposers wishing to receive answers to questions and other RFP addenda must register by providing contact name, company name, address, e-mail address, and phone number via email to DiamondBarRFP@sloanvazquez.com. All Questions regarding this RFP shall be submitted to the City’s 7.2.a Packet Pg. 420 City of Diamond Bar, California Section 1. Introduction RFP for Solid Waste Services May 3Updated July 12, 2023 Page 2 Consultant to DiamondBarRFP@sloanvazquez.com (see RFP Section 5 – Proposal Submittal Requirements.) Only written responses will govern. Written questions may not be accepted after the date shown in the schedule in Table 1. However, simple questions regarding how to complete submittal forms or otherwise complete the proposal requirements, may be submitted via email until the proposal due date. CITY GOALS AND OBJECTIVES The City’s goals and objectives for the RFP process and future collection services are as follows: INTEGRITY, COMPETITION IN SELECTION PROCESS, AND CONTRACT TERMS CONSISTENT WITH CALRECYCLE COMPLIANCE REQUIREMENTS x Conduct the RFP process with integrity and transparency. x Stimulate competition among proposing companies. x Set high performance standards. x Ensure value for ratepayers. x Enter into a contract with fair terms and conditions. QUALITY, HIGH-VALUE PROGRAMS x Consistent, reliable, and quality service. x Efficient service delivery that provides a strong value to the ratepayers. x Responsive customer service system. x Well-planned and professionally executed transition to any new programs and services. x Quality outreach and education. x Effective diversion programs to ensure compliance with regulations. ORGANIZATION OF RFP This RFP is organized into six sections as follows: x Section 1 provides a brief introduction to the RFP. x Section 2 provides background information. x Section 3 presents the scope of required services. x Section 4 provides the RFP policies, conditions, and process. x Section 5 describes the RFP submittal requirements. x Section 6 outlines the proposal evaluation process. 7.2.a Packet Pg. 421 City of Diamond Bar, California Section 1. Introduction RFP for Solid Waste Services May 3Updated July 12, 2023 Page 3 RFP SCHEDULE The key activities and completion dates for the RFP process are provided in Table 1. Table 1 – RFP Schedule Note: The City reserves the right to modify this schedule as needed. Milestones Date City issues RFP May 3, 2023 Mandatory pre-proposal meeting at 10:00 a.m. May 10, 2023 Distribution of Addendum #1 June 12, 2023 Deadline to submit written questions by 5 p.m. May 24July 10, 2023 Distribution of Addenda May 31July 20, 2023 Proposals Due no later than 4 p.m. June 19August 30, 2023 Option to Release RFP to Public August 6October 19, 2023 Evaluation Results Reported to City Council October 9December 20, 2023 Final Selection and Approval November 14January 16, 2023 Contractor commences providing services September 1, 2025 7.2.a Packet Pg. 422 City of Diamond Bar, California Section 2. Background RFP for Solid Waste Services May 3Updated July 12, 2023 Page 4 SECTION 2 - BACKGROUND BACKGROUND INFORMATION The information presented in this section and the related Attachments listed below are for informational purposes only. Each proposer should take whatever steps it believes are necessary to determine the actual service requirements of the City and understand service conditions when preparing a proposal. The following is a list of Attachments providing reference information for proposers (Attachments 2 and 6 are for completion and submittal with the proposal): x Attachment 1 is the Draft Agreement. x Attachment 2 is the Proposer Code of Conduct and Non-Collusion Affidavit. x Attachment 3 provides Service Data. x Attachment 4 provides Current Rates for solid waste services. x Attachment 5 provides a list of City Facilities. x Attachment 6 provides the Rate Proposal Forms. x Attachment 7 provides Rate Adjustment Methodology. x Attachment 8 provides the Proposal Outline. SERVICE DATA Service data including a description of the service area, rate revenue, tonnage collected, units serviced and the most recent rates effective July 1, 2022, are shown in Attachment 3. TERM OF NEW AGREEMENT OR AGREEMENTS The initial term of the new agreement is ten (10) years. City may, in its sole discretion, authorize an extension of up to twenty-four (24) months prior to the expiration of the initial term of the agreement. The City anticipates exercising its option to extend the current Agreements for an additional twenty-four (24) months setting their expiration to August 31, 2025. The new Agreement(s) will take September 1, 2025. 7.2.a Packet Pg. 423 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 5 SECTION 3 - SCOPE OF REQUIRED SERVICES This section provides a brief description of the services solicited through this RFP. The Agreement provides the detailed scope of services. The Agreement is included as Attachment 1. The Agreement provides definitions, contract terms and conditions, performance standards, including a complete description of the services required by the City. If there are differences between this RFP and the Agreement, the terms and conditions in the Agreement shall prevail. SINGLE-FAMILY DWELLING (SFD) SOLID WASTE SERVICES Under the current agreements, residential solid waste service includes services to residential premises that receive solid waste services using carts but excludes temporary solid waste collection services for construction of new residences, and all work on commercial premises, and residential premises that receive collection services with bins which are addressed under the commercial solid waste services agreement. Under this RFP, residential solid waste service includes services to single-family dwellings (SFD) and multi-family dwellings (MFD) of less than five units regardless of container size, type (cart, bin, roll-off box) required for service, including roll-off services, permanent, temporary, and on-call, and on-call clean-up bins. MFDs of five or more units are included under commercial solid waste services. Refer to draft Agreement Section 3.2 for a complete description of service requirements for Residential services. Standard Cart Service: Standard cart service will be the weekly, automated collection of refuse, recycling, and organics. The default cart size for each waste stream shall be 64-gallons. Customers may request different size carts for each waste stream. Carts shall be offered in 35, 64, and 96-gallon cart sizes. The monthly rate shall be based on the refuse cart size. Recycling and organics carts shall be collected on the same day as refuse collection. Additional refuse carts beyond one may be requested for an additional monthly fee. Customers may request a second recycling cart at no additional charge. Additional recycling carts beyond two are subject to an additional monthly fee. Customers may request a second organics cart at no additional charge. Additional organics carts beyond two are subject to an additional monthly fee. MFDs of Less Than Five Units: MFDs of less than five may be provided solid waste services (refuse, recycling, and organics collection) using carts or bins as appropriate for the conditions, requirements, and needs of the customer. Refuse Cart Overage: Provide two annual pickups per calendar year and an end-of-year pickup for refuse that would otherwise be placed in the refuse cart but excluding bulky items, at no additional charge. Each annual pickup may consist of up to the equivalent of three (3) large bags, boxes, or barrels 7.2.a Packet Pg. 424 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 6 of refuse. End-of-year pickup of all additional refuse that is placed out for collection in the customer's own containers (bags, boxes, barrels, etc.) for two weeks beginning each December 26. Contractor may charge an additional fee per pickup of all refuse that does not fit in the refuse cart(s) beyond the free pickups. Backyard Service: Provide backyard service defined as retrieving for collection all carts, green waste bundles and cart overages from a customer's designated collection location, other than curbside, such as backyard, side yard, or driveway, and returning empty carts and other containers to their original location. Backyard service is subject to an additional charge. Backyard Service for the Disabled: Provide backyard service at no additional charge to any customer who is legally or medically recognized as disabled. See RFP Section 3 – Residential Rate Arrangements). Temporary Roll-Off and Temporary Bin Service: Provide temporary roll-off box and temporary bin service upon customer request for cleanup or construction. On-Call Bulky Item: Provide bulky item pickup service to all SFD and MFD. Each Dwelling Unit shall be entitled to four bulky item pickups per calendar year at no additional charge. Customers may put out up to three (3) cubic yards of material at each pickup. Bulky item collections that exceed the number of free pickups may be subject to an additional charge. Door-to-Door HHW Collection: Provide SFD and MFD customers with door-to-door call-in HHW collection. Each Dwelling Unit shall be entitled to two door-to-door Residential HHW pickups per calendar year at no additional charge. Items to be collected include, at a minimum: paint and paint products including but not limited to thinners, glues, caulking, stains, wood preservatives and strippers; universal waste, household cleaners; automotive wastes; swimming pool chemicals; garden chemicals; fluorescent tubes; thermometers; and household batteries. Contractor may direct residential customers to use the bulky item pickup option for televisions, computers and other HHW that may safely and legally be collected as bulky items. Annual Household Hazardous Waste Event: Assist the City in increasing awareness of Household Hazardous Waste events by promoting the Los Angeles County Household Hazardous Waste collections held in Diamond Bar. Promotional activities will include posting on contractor’s website, inclusion in the annual brochures/ mailings mailed to each Customer, billing inserts, social media targeted outreach, and press releases to local news outlets. Curbside Used Oil and Oil Filter Collection: Collect used oil placed curbside beside solid waste container on regular collection day at no additional charge. Educate customers to place used oil in clean containers and used oil filters in clean zip-lock bags. Sharps Mail Back Program: Operate a mail-based program and/ or a drop-off program for the safe processing of Sharps generated by its customers. Upon request, Sharps containers will be delivered directly to residential customers at no cost to the customer or City. Contractor will make arrangements 7.2.a Packet Pg. 425 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 7 with pharmacies and/ or other locations throughout the City for residents to drop-off Sharps at no cost to the Customer or City. Medication Takeback Program: Assist the City in increasing awareness of medication takeback programs provided by the Los Angeles County Sheriff's station and any third-party events held in Diamond Bar. Promotional activities will include posting on contractor’s website, inclusion in the annual brochures/mailings mailed to each residential customer, billing inserts, social media targeted outreach, and press releases to local news outlets. FreeCycle.com: Contractor will publicize to residential customers its free materials exchange/ gifting program, known as FreeCycle.org, and shall promote FreeCycle.org on Contractor's website, and the annual brochure/mailings. Annual Holiday Tree Recycling Collection: Provide collection of holiday trees from December 26 through the second Sunday in January. Compost Giveaway: Distribute coupons through quarterly billings entitling residential customers to receive two bags of compost per event at two community events per year to be identified by City. COMMERCIAL SOLID WASTE SERVICES (INCLUDING MULTIFAMILY PREMISES OF 5 OR MORE UNITS) Under the current agreements, commercial solid waste service includes services to commercial premises and residential premises that receive solid waste services using bins, including temporary bin and temporary roll-off box collection service with the exclusion of residential premises that receive solid waste services using carts. Under this RFP, commercial solid waste services include services to commercial premises and MFDs of five or more units regardless of the container size and type (cart, bin, roll-off box) required for service, including roll-off services, permanent, temporary, and on-call clean-up bins. MFDs of less than five units are included under residential solid waste services. Refer to draft Agreement Section 3.3 for a complete description of service requirements for commercial and MFDs. Refuse Collection: Provide refuse collection using bins or carts as frequently as scheduled by the customer, but not less than once per week and more frequently if required to handle the solid waste generated at the premises where the bins are located. Recycling Collection: Provide source-separated recycling collection using bins or carts as to all locations that are required to subscribe to organics collection by AB 341. Recycling services shall be provided at a rate not to exceed 50% of the equivalent refuse rate for similar container sizes and service frequency. Organics Collection: Provide source separated organics collection using bins or carts to all locations that are required to subscribe to recycling collection by AB 1826 and SB 1383. Organics services shall be 7.2.a Packet Pg. 426 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 8 provided at a rate not to exceed the equivalent refuse rate for similar container sizes and service frequency. Bin Pushout Service: Provide pushing or rolling containers to the point of collection to locations that require such service at no additional charge. Scout Service: Offer scout service by using a small vehicle either to move containers to street or other public right-of-way for Collection. Locking Bins: Provide the hasp and lock and service the lock. Permanent Roll-Off Box Service: Rates shall be charged as "pull plus dump", a set rate for the service component plus the per ton charge based on actual tonnage collected. Temporary Roll-Off and Temporary Bin Service: Provide temporary roll-off box and temporary bin service upon customer request for cleanup or construction. Contractor must deliver a temporary roll-off box within forty- eight (48) hours of request (Saturdays and Sundays excluded). Temporary Bin Service: Rates shall be charged as “bin delivery/pickup plus one dump.” Additional charges may include, additional dump, and rental fee after seven (7) days with no dump or bin pickup. Contractor must deliver a temporary bin within forty- eight (48) hours of request (Saturdays and Sundays excluded). On-Call Bulky Item: Provide bulky item pickup service to MFDs. Each dwelling unit is allowed up to four bulky item pickups per calendar year at no additional charge. Customers may put out up to three (3) cubic yards of material at each pickup. Bulky item collections that exceed the number of free pickups may be subject to an additional charge. Electronic Waste: For MFD, E-Waste will be collected as bulky items. Door-to-Door HHW: Provide MFDs door-to-door call-in HHW collection service to each dwelling unit at no additional charge. Items to be collected include, at a minimum: paint and paint products including but not limited to thinners, glues, caulking, stains, wood preservatives and strippers; universal waste, household cleaners; automotive wastes; swimming pool chemicals; garden chemicals; fluorescent tubes; thermometers; and household batteries. Televisions, computers and other HHW may be collected as bulky items when safe and legal to do so. Annual Holiday Tree Recycling: Provide MFD’s collection of holiday trees from December 26 through the second Sunday in January. C&D DEBRIS COLLECTION SERVICES All loads of mixed C&D debris shall be delivered to a processing facility to meet all requirements described in draft Agreement Section 3.75.2.4. Contractor shall divert from landfilling a minimum of 75% 7.2.a Packet Pg. 427 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 9 or the State-mandated Construction and Demolition diversion percentage, whichever is greater, of all Construction and Demolition Debris Collected. CITY COLLECTION SERVICES City Facilities Collection: Collect and dispose of all refuse, recyclables, and organics generated and accumulated at premises owned and/or operated by the City at no additional charge (including e-waste, and construction and demolition debris) and in compliance with AB 341, AB 1826, and SB 1383. Such premises include, but are not limited to, offices, parks, and street maintenance operations. See Attachment 4 for the current list of facilities and service levels. These facilities and service levels may vary over the term of the new agreement, with no increase in compensation for additional collection services. (Refer to draft Agreement Section 3.73.8.) City-Sponsored Events: Provide refuse, recyclables, and organics collection using carts, bins, roll-off boxes, cardboard boxes with liners, or other such containers at no charge at City–sponsored events. These events and service levels may vary over the term of the new agreement, with no increase in compensation for additional collection services. Should the City select separate contractors for the residential and commercial sectors, the City intends to alternate events between the two contractors with no guarantee that events will be evenly distributed based upon either level of effort or number of events. City-sponsored events include, but are not limited to: x Concerts in the Park x City Birthday Celebration x Fourth of July x Fall Fun Festival x Winter Snow Festival x Arbor Day x Easter Egg Hunt Abandoned Item Collection: Provide collection of bulky waste abandoned in the City right-of-way or other public property within contractor’s service at no additional charge, within one business day of notification from City. Contractor will not be required to Collect Hazardous Waste, liquid wastes, or automobile parts that are individually too large for Collection by two people. City will contact either the residential or commercial franchisee to provide this service, depending on the location of the abandoned item. 7.2.a Packet Pg. 428 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 10 Community Development Review Services: Review building permit applicants' plans and advise regarding adequacy of container storage space and access, particularly to accommodate recycling and organics containers upon the City’s request and at no additional charge to the City. Large Venue Event Assistance, Event Recycling: Assist planners of large venue events with reporting and planning needs as may be useful in meeting the requirements of AB 2176, found at California Public Resources Code 42648, et seq. at no additional charge. Contractor shall provide recycling and organics collection services upon request to special event planners. Confiscation of Unauthorized Containers: Confiscate illegal containers located within the City's public rights-of-ways, upon notification from City, or if Contractor finds illegally placed Containers based on procedure provided in the franchise agreement. Provision of Storage Containers: Provide the City with eleven 40-cubic-yard portable storage containers to be used for storage at City facilities and schools for the duration of the Agreement. Containers will be maintained in a condition satisfactory to the City. Contractor may transfer ownership of these storage containers to City, provided Contractor will remove and dispose of these containers when requested to by City. Emergency Collection and Disposal Service: Assist City at the City's request with emergency Collection and Disposal service in the event of major disaster, such as an earthquake, storm, riot, or civil disturbance, or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. KEY CONTRACT TERMS STATE DIVERSION COMPLIANCE The selected contractor will ensure that the City is in full compliance with AB 939, AB 901, AB 341, AB 1594, AB 1826, and SB 1383, and all related state laws and regulations in effect during the term of the Agreement. Requirements include, but are not limited to the following: Collection, Processing and Diversion Programs and Services: The Contractor will provide collection, processing and diversion programs and services relative to AB 939, AB 901, AB 341, AB 1594, AB 1826, SB 1383, and all future applicable regulations. Public Education and Outreach: The Contractor will provide public education to residents and businesses relative to AB 939, AB 901, AB 341, AB 1594, AB 1826, SB 1383, and all future applicable regulations. Proposers must describe their proposed public education and outreach commitments in their AB 341, AB 1826, SB 183 Implementation Plan. 7.2.a Packet Pg. 429 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 11 Container Specifications and Distribution: The selected contractor will be responsible for providing and maintaining all containers under this agreement. Carts shall be new upon initiation of services under the Agreement, and bins may be new or used. All carts and bins will be color-coded and labeled to be compliant with SB 1383. Diversion Monitoring and Reporting: The Contractor will provide monitoring and reporting relative to AB 939, AB 901, AB 341, AB 1594, AB 1826, SB 1383, and all future applicable regulations. Environmental Coordinator: To achieve a high level of recycling public education and awareness, the Contractor shall designate an Environmental Coordinator to the City to complete outreach to SFD, MFD and Commercial customers, and develop and implement all public education and outreach activities required under the Agreement. The Recycling Coordinator shall conduct outreach, promote waste reduction, recycling, diversion programs, and provide technical assistance to Multi-family and Commercial Customers. The Environmental Coordinator shall not be the primary Contractor liaison described in draft Agreement Section 7.16B4.4.9. FAITHFUL PERFORMANCE BOND & LETTER OF CREDIT The selected contractor will be required to provide a performance bond totaling $125,000 and a performance Letter of Credit $125,000. As an alternative, the selected contractor may provide a Letter of Credit in the amount of $250,000, or deposit funds, on terms satisfactory to the City, in an interest- bearing account. INSURANCE The selected Contractor is required to maintain minimum insurance levels. See draft Agreement Section 11.8 Article 9 for the minimum limits of insurance for general liability, automobile liability, and workers compensation. COLLECTION VEHICLE REQUIREMENTS Contractor’s collection vehicles shall be not older than two-years and in like-new condition upon initiation of services under the Agreement, no more than 10 years of age during the initial term of the Agreement and no older than 15-years in age during any future extensions of the Agreement, and comply with Department of Transportation, South Coast Air Quality Management District and the California Air Resource Board requirements. Contractor’s collection vehicles must use only renewable natural gasgas alternative fuel. See draft Agreement Section 4.2.2.D3.10.4. Proposers must address their ability to assist the City comply with SB 1383 RNG procurement obligations with the use of RNG powered collection vehicles. AUTOMATED CART REQUIREMENTS 7.2.a Packet Pg. 430 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 12 All carts shall be new at the start of service under this agreement. Proposer shall describe carts which it intends to use in the City, pending City approval. Include manufacturer, specific sizes, SB 1383 compliance, colors of carts and lids by waste stream, and a photograph. FEES Franchise Fee: Contractor shall pay a Franchise Fee that is commensurate with the value to be received by Contractor in receiving the exclusive right to provide the service set forth herein. The City concludes that a reasonable and appropriate amount for the benefits provided should be a minimum of Four- Hundred Ten-Thousand Dollars, ($410,000), in the first year. This payment to the City shall be referred to as a Franchise Fee and its percentage will be calculated according to estimated gross receipts from customers as shown in Form 2.0 Rate Revenue from Attachment 6 Rate Proposal Forms. (See draft Agreement Section 97.1). Should the City issue separate franchises for Residential and Commercial services, the commercial franchise fee shall be a minimum of One-Hundred Twenty-Three Hundred Dollars ($123,000) and the residential franchise fee shall be a minimum of Two-Hundred Eighty-Seven Thousand Dollars ($287,000). CALRECYCLE Compliance Fee: Contractor shall pay to the City a CalRecycle Compliance Fee of Seven- Hundred Fifty Thousand Dollars ($750,000) adjusted annually as described in draft Agreement Section 97.2 and 9.77.6. The CalRecycle Compliance Fee amount represents a reasonable allocation of the City’s budgeted costs to comply with State mandates resulting from the enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016) which require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. Should the City issue separate franchises for Residential and Commercial services, each franchisee shall pay a minimum CalRecycle fee of Three-Hundred Seventy-Five Thousand Dollars ($375,000). Residential Vehicle Impact Fee: Contractor shall pay to the City an annual Vehicle Impact Fee of One- Hundred Seventy-Five Thousand Dollars ($175,000) adjusted annually as described in draft Agreement Section 9.47.3 and 9.77.6. The Residential Vehicle Impact Fee is to reimburse the City for costs to provide road maintenance to City’s streets due to “wear and tear” caused by the use of Contractor’s Solid Waste Collection vehicles on City Streets. Should the City issue separate franchises for Residential and Commercial services, only the residential franchisee shall pay the Residential Vehicle Impact Fee. Residential Street Sweeping Fee: Contractor shall pay to the City an annual Street Sweeping Fee of One- Hundred Seventy-Five Thousand Dollars ($175,000) adjusted annually as described in draft Agreement Section 9.57.4 and 9.77.6. The Residential Street Sweeping Fee is to reimburse the City for the cost of sweeping residential streets. Should the City issue separate franchises for Residential and Commercial services, only the residential franchisee shall pay the Residential Street Sweeping Fee. 7.2.a Packet Pg. 431 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 13 Contracting Fee: Contractor shall pay the City a one-time contracting fee of One-Hundred Thousand Dollars ($100,000) within seven (7) days of the execution of the new agreement. Should the City issue separate franchises for Residential and Commercial services, the commercial franchisee shall pay Thirty- Thousand Dollars ($30,000) and the residential franchisee shall pay Seventy-Thousand Dollars ($70,000). Late Payment Fee: Contractor shall pay the City a Late Payment Fee of 10% of any amount passed due for the month plus 1.5% for each month the payment is late thereafter. HOLIDAY SCHEDULE If the regularly scheduled collection day falls on New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, or Christmas Day, collection days for the remainder of that week shall all be postponed one collection day and residential collection is permitted on Saturday during the make-up week. CUSTOMER RATE ARRANGEMENTS The rate schedules establish the maximum rates that may be charged. Initial rates will be set based on the rates proposed in Attachment 6. The rates will thereafter be adjusted using a rate adjustment procedure described in Article 108 of the draft Agreement. The first rate adjustment is effective July 1, 2026. RESIDENTIAL RATE ARRANGEMENTS Standard Cart Service: Standard cart service will be the weekly, automated collection of refuse, recycling, and organics. The default cart size for each waste stream shall be 64-gallons. Customers may request different size carts for each waste stream. Carts shall be offered in 35, 64, and 96-gallon cart sizes. The monthly rate for the collection of all three waste streams shall be based on the refuse cart size selected by the customer. Disabled Customer Discount: Currently customers determined to be disabled by issuance of a handicap placard from the DMV or by meeting City-established guidelines receive backyard service at no additional charge. The City invites Proposers to propose this service at no charge or at a discounted rate. Please note that discounted rates shall be provided at the sole cost of the Contractor and will be considered a disallowed cost for Proposition 218 purposes. Senior Citizen Discount: Currently, senior citizens of 60 years of age or older, residing in the premises where service is received and listed on the bill are entitled to a discounted senior rate. The City invites Proposers to propose this service a senior citizen discount. Please note that the discounted portion of the rate shall be at the sole cost of the Contractor and will be considered a disallowed cost for Proposition 218 purposes. COMMERCIAL AND MFD RATE ARRANGEMENTS 7.2.a Packet Pg. 432 City of Diamond Bar, California Section 3. Scope of Required Services RFP for Solid Waste Services May 3Updated July 12, 2023 Page 14 The City will maintain a rate structure that includes separate fees for the collection of refuse, recyclables, and organics. A volume-and-frequency based rate structure will be used. Contractor shall charge rates to the customer based on each customer’s size and number of containers at a rate not to exceed the corresponding rate in the maximum rate table. Recyclables collection will be offered at a 50% of the refuse rate. Organics collection shall be charged at the same rate as the refuse rate for the equivalent container size and frequency. CITY FACILITIES The City’s facilities shall be provided all collection services at no additional charge. Services shall include refuse, recycling and organics collection services. CHARGES FOR ADDITIONAL SERVICES The Contractor’s proposed rate schedule shall include all charges for special services, including but not limited to: x Additional carts. x Scout service. x Locking bins. x Pulling or pushing containers to a collection vehicle. x Steam cleaning containers (excluding carts) more frequently than one time per year as requested by the customer. x Additional bulky item collection services. Please see Proposal Forms for more details on situations in which special service charges apply. RATE ADJUSTMENT METHODOLOGY Refer to Attachment 7 for a complete description of the rate adjustment methodology. 7.2.a Packet Pg. 433 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3Updated July 12, 2023 Page 15 SECTION 4 - RFP POLICIES, CONDITIONS, AND PROCESS RIGHTS RESERVED BY THE CITY The City reserves the right, in its sole discretion, to pursue any or all of the following actions regarding this RFP process: x Issue addenda and amend the RFP and Franchise Agreement. x Request additional information and/or clarification from proposers. x Extend the deadline for submitting proposals. x Withdraw this RFP. x Reject proposals that do not fully comply with the requirements detailed in this RFP, its attachments, addenda, or clarifications. x Reject incomplete proposals; proposals containing errors, inconsistencies, false, inaccurate, or misleading information; proposals submitted after the deadline; or proposals with other process or content errors or deficiencies. x Amend the Municipal Codes of City. x Award a proposal based on a combination of its qualitative and quantitative attributes. x Take other actions the City deems are in the best interest of the City, residents and businesses in the City service area; and, x Negotiate changes in the services proposed and/or described in the RFP or to incorporate programs proposed by others. GENERAL RFP REQUIREMENTS x This RFP shall not be construed by any party as an agreement of any kind between the City, contractor(s), and other parties. x This RFP does not obligate the City to accept any proposal, negotiate with any proposer, award a Franchise Agreement, or proceed with the development of any project or service described in response to this RFP. The City has no obligation to and shall not compensate any proposer for its expense of preparing its proposal and participating in this procurement process. x Please note that the City’s procurement of Franchise Collection Services is not subject to State bidding laws, and the City does not intend to cause the current RFP process to become subject to such public bidding laws or regulations. x The City shall have the right (but not the obligation) to perform a review of each proposer's ability to perform the work required. Each proposer must agree to cooperate with such a review. Such cooperation by proposer shall apply to the verification of the proposer's capability and experience in the provision of services and any other component of work that may be required under this procurement. x The City, and its consultants, will be conducting reference checks on proposers that will involve contacting jurisdictions currently or previously served by proposer, as well as contacting 7.2.a Packet Pg. 434 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3Updated July 12, 2023 Page 16 regulatory agencies involved in oversight of proposers’ facilities. In addition, the City, or its consultants, may research proposers’ past performance by reviewing litigation history, regulatory actions, highway driving records, criminal investigations, and recycling history. The proposer’s submission of a proposal shall constitute an agreement to cooperate with the City’s review. x Submittal of a proposal signifies the submitting proposers’ commitment to provide the proposed services if selected. In addition, all aspects, conditions, and components of proposals submitted shall be valid for one year from date of submittal. Proposals may not be altered after submittal, except in response to the City’s request for clarification. CODE OF CONDUCT PROPOSER CODE OF CONDUCT Proposers are required to sign the Proposer Code of Conduct, which includes a Non-Collusion Affidavit (Attachment 2). This document prohibits ex-parte communications with City elected officials; prohibits giving any gift or monetary compensation to City staff member or consultants; prohibits collusive activities with other potential proposers. If a proposer does submit the document or violates the code of conduct, the City has the right to disqualify the proposer from this RFP process. Please note: the notarized Proposer Code of Conduct and Non-Collusion Affidavit is required to be submitted no later than one week after the mandatory pre-proposal meeting. An electronic copy may be emailed to DiamondBarRFP@sloanvazquez.com and an original must be mailed to the City. PROPOSAL SUBMITTAL REQUIREMENTS Submission of a proposal shall constitute acknowledgment and acceptance of all the terms and conditions contained in this RFP, and in the draft franchise agreement, unless exceptions are expressed in writing in the proposal (See RFP Section 5 Exceptions to the Agreement). The successful proposer will be expected to enter into a franchise agreement with the City; only those exceptions noted in its proposal will be considered for modification. The City is not obligated to agree to these exceptions but reserves the right to negotiate modification of such noted exceptions to the draft franchise agreement. The schedule of events presented in this section is summarized in Table 1. STEP ONE – R.S.V.P TO ATTEND PRE-PROPOSAL MEETING Proposer must register their intent to respond to this RFP by emailing notification to DiamondBarRFP@sloanvazquez.com. 7.2.a Packet Pg. 435 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3Updated July 12, 2023 Page 17 STEP TWO – MANDATORY PRE-PROPOSAL MEETING A mandatory pre-proposal meeting will be held by video conference. An invitation will be emailed to each registered proposer. The current date and time of the pre-proposal meeting are provided in Table 1 – RFP Schedule. STEP THREE – SUBMITTAL OF WRITTEN QUESTIONS The City directs proposers to submit all questions and requests for information in writing directly to the City’s consultant at DiamondBarRFP@sloanvazquez.com. The deadline for submitting written questions and requests for information is provided in Table 1 – RFP Schedule. Written responses to questions will be provided to all eligible proposers. In the event of any inconsistencies between oral responses provided at the pre-proposal meeting and written responses subsequently issued. The written responses must be used for preparing proposals. STEP FOUR – PROPOSAL SUBMITTAL Proposer shall submit One (1) double-sided copy of the complete proposal and one (1) single sided, signed original according to the deadline provided in the RFP Schedule. In addition, the proposers are required to submit a flash drive containing: x A digital copy of all completed rate proposal forms (Attachment 6 of the RFP) in Microsoft Excel format. x A digital copy of the Draft Franchise Agreement, noting all exceptions and proposed substitute language in redline/strikeout, in Microsoft Word format. x A complete PDF of the proposal including the rate proposal forms. and, x The required Surety must be included in the sealed package. These items shall be placed and submitted in a sealed package. Proposals must be formatted on 8½ inch by 11-inch paper with post-consumer recycled-content paper. All pages shall be consecutively numbered; although, each section may start with a new page number if proceeded with the section number (e.g., Page 2-1 for the first page of section 2). Surety: Each proposal must be accompanied by a surety made payable to “City of Diamond Bar” in the amount of $25,000 and in the form of a certified check, cashier’s check, or bid bond. The surety shall be submitted with the proposal in a separate, clearly labeled envelope. The purpose of the surety is to guarantee that the successful contractor will execute a Franchise Agreement with the City. If the selected contractor does not execute the Franchise Agreement within 30 calendar days after receiving notice of the award of Franchise Agreement, the City shall keep the surety to offset the potential cost associated with identification of an alternate service provider and schedule delays. Additionally, the City has the right to pursue additional and reasonable costs incurred in this event. 7.2.a Packet Pg. 436 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3Updated July 12, 2023 Page 18 Checks and bonds will be returned to all proposers no later than ten calendar days after the City has executed the Franchise Agreement with the successful contractor. If no selection is made within one year of the submission of proposals, each proposer may demand their proposal surety be returned. However, the City reserves the right to eliminate proposals from such companies from further consideration. Proposals received late will not be considered. Postmarks will not be accepted as proof of receipt. The package shall be clearly labeled: PROPOSAL FOR CITY OF DIAMOND BAR SOLID WASTE SERVICES FROM: Name of Proposer Address: Address of Proposer Contact Person: Telephone Number: E-mail: The proposal may be mailed or hand delivered to: CITY CLERK City of Diamond Bar 21810 Copley Dr. Diamond Bar, CA 91765 STEP FIVE – CLARIFICATION OF PROPOSAL INFORMATION AND INTERVIEWS Proposers may be asked to clarify information through written communications, interviews or during site visits of each proposer’s offices, customer service center, corporation yard and maintenance facilities, and disposal, transfer, and processing facilities. The City reserves the right to conduct in- person interviews with one or more proposers. STEP SIX – SELECTION OF RECOMMENDED CONTRACTOR AND NEGOTIATION OF FINAL AGREEMENT The City and/or its consultants will recommend for consideration by the City Council a preferred contractor for both residential and commercial services, or a contractor for residential and another contractor for commercial services. Should the City and/or its consultants determine that none of the proposals submitted by VVS or WM meet the best interest of the City and the ratepayers, the City may choose to publish this RFP to the public and invite additional proposals for consideration prior to selecting a contractor or contractors, in which case, the process will revert to Step One. In the event that the City releases this RFP to the public, it is the City’s intention to keep VVS and WM’s proposals confidential until the contractor selection process is complete. 7.2.a Packet Pg. 437 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3Updated July 12, 2023 Page 19 Once the City Council approves selection of a final contractor or contractors then final negotiation will take place for the Franchise Agreement(s). Except at the sole discretion of the City, all negotiations with the Proposers will be limited to the Proposers’ listed exemptions and proposed substitute language in the draft agreement contained in their proposal. LIMITS ON DISCLOSURE OF PROPOSALS The City has determined that the public interest will be best served if proposals submitted in response to this RFP are not made available for review by other companies participating in the competitive selection process. For that reason, proposals (and materials submitted during subsequent meetings and discussions with City staff) will not be made available to other proposers or the public generally any earlier than the date on which City staff issues to City Council a contractor or contractors recommended for final consideration/negotiation. As part of the Council Report, the City may include some portion(s) of the proposal(s) that have not been identified as entitled to confidential treatment as containing trade secrets. However, inclusion of some portion(s) of the proposal(s) in the Council Report may be deferred until after the City Council has selected a proposer for negotiations. In this case, some portion(s) of the proposal(s) may be included in the Council Report prepared for the meeting where the results of the completed negotiations are presented. This is the only release of any portion(s) of proposal(s) that will be permitted prior to the execution of this agreement. No proposer may, directly or through an intermediary, employ the Public Records Act to obtain access to non-confidential materials submitted to the City by other proposers prior to the execution of the agreement for this contract. The following procedures will be followed for the disclosure of proposals following the execution of the agreement: x Materials which a proposer considers as trade secret information entitled to protection from disclosure under Government Code Section 6254(k) must be clearly marked on each page as “CONFIDENTIAL”. x If the City receives a request to review and/or copy materials submitted by any proposer, it will decline to release those materials marked “CONFIDENTIAL” pursuant to Government Code Section 6255. x If the person submitting the request files a legal action against the City seeking its release, the City will notify the affected proposer(s) and will not oppose a motion by such proposer(s) to intervene in the action. The proposer(s) must either intervene or agree to pay the City’s legal expenses in defending the action, including fees, if any, awarded to the plaintiff. Absent such an agreement, the City will have no obligation to defend the action and may release the information sought without any liability whatsoever. 7.2.a Packet Pg. 438 City of Diamond Bar, California Section 4. RFP Policies, Conditions, and Process RFP for Solid Waste Services May 3Updated July 12, 2023 Page 20 x No proposer will seek damages against the City or recovery of its attorneys’ fees from the City because of any dispute related to the release or withholding of information submitted in response to this RFP. x Materials that have been marked as “CONFIDENTIAL” will either be destroyed or returned to all unsuccessful proposers once the agreement has been signed by City and by the selected proposer(s). 7.2.a Packet Pg. 439 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 21 SECTION 5 - SUBMITTAL REQUIREMENTS Section 5 includes the required proposal outline and a description of the specific information proposers must include. Proposer must provide the information specified in this section as part of its proposal. Failure to provide all the required information may be grounds for rejection of a proposal. The proposer does not need to reiterate the service requirements of the Franchise Agreement in their proposal. However, proposer is requested to focus on describing how it plans to provide the services with regard to but not limited to routing strategies, collection methods, and equipment selection. Furthermore, if a proposer has presented information for one type of service that is the same for another type of service, proposer can refer to its previous description rather than reiterating the discussion in its proposal. For example, if SFD solid waste and recyclables collection vehicles are the same, the vehicle description can be provided once for the solid waste service and then referenced for the recyclable materials collection service. PROPOSAL OUTLINE Proposer shall present its proposal in accordance with the outline provided in Attachment 8. Information should be identified by number in the outline. Additional information or data relevant to the proposal is optional and may be included by proposer as proposal attachments. 1. GENERAL REQUIREMENTS I. TITLE PAGE (OPTIONAL) II. COVER LETTER The cover letter shall clearly identify the legal entity or entities submitting the proposal and state whether each is a sole proprietorship, partnership, corporation, LLC, or joint venture. The cover letter shall be signed by the designated representative authorized to bind proposer. Proposer shall acknowledge receipt of any addenda issued as part of this RFP process. III. TABLE OF CONTENT 2. PROPOSER OVERVIEW 2.1 PROPOSER’S BUSINESS STRUCTURE Provide the following information regarding the proposing entity and entity that would provide a corporate guarantee, if applicable: x Identify the legal entity that would execute the Franchise Agreement. State whether each entity is a sole proprietorship, partnership, corporation, LLC, or joint venture. Describe in detail the 7.2.a Packet Pg. 440 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 22 relationship of the proposer to the executing entity. If the proposer is a joint venture, describe where the entities have collaborated before. x Identify the entity that would submit financial statements and whether it is an individual, a partnership, a corporation, or a joint venture. If other than proposing entity, indicate relationship and willingness to sign corporate guarantee. x Confirm that proposer is authorized to do business in California. x State the number of years the entities have been organized and doing business under this legal structure. Proposal must include all the names of company’s (and executing entities if different than company’s) owners/stockholders with greater than a 10% holding of the company's total assets. x Identify the names of all officers. x Identify other businesses with ownership by principals and/or management. x Identify the corporate headquarters. x Identify local headquarters (if different). x Describe all services to be performed by subcontractors and identify each subcontractor by name. Proposer shall describe any current or past working relationship with the subcontractor(s) in the past five years. 2.2 PROPOSER’S EXPERIENCE Proposer shall describe its experience serving a minimum of three (3) jurisdictions in California (preferably serving jurisdictions of similar or larger size and similar demographics to the City in a table format. Required information includes: x The name of the jurisdiction where the services were provided. x Commencement date of services and term of the agreement. x The name, address, and telephone number of the jurisdiction representative responsible for administering the agreement. x The services provided (e.g., solid waste collection, recyclable materials, organic materials collection, and other unique collection programs such as e-waste or household hazardous waste). x The number of residential (i.e., specify SFD and MFD), Commercial (i.e., specify cart, bin, roll-off and other) and City (or other) customers served; tons collected, diverted, and disposed annually; and, the type and number of vehicles dispatched per day for each of the services provided. Additionally, please provide at least one municipal citation for service transitions from another hauling company, including a brief description of the old and new services, and service transition dates, as well as the information listed in the first and last bullet above. 2.3 KEY PERSONNEL QUALIFICATIONS Provide an organizational chart and brief biographical description of the key personnel the proposer would assign to the transition team and the ongoing management of the services to be provided under 7.2.a Packet Pg. 441 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 23 the Agreement. Specify the percentage of time each individual will be assigned to services specified in the Franchise Agreement. Identify municipalities who have worked with the key personnel. Indicate which key personnel will be designated as the contractor liaison, service liaison, contractor representative, and emergency contact. 2.4 PROPOSER’S PAST AND PENDING LITIGATION List all civil or misdemeanor or felony criminal court or administrative filings by and/or against California government agencies that are currently pending and/or that have been filed, settled or otherwise received a disposition within the last ten years that relate to the provision of solid waste service listing the names of the parties, the case number, and a brief description of the case and disposition, if any. This paragraph is applicable to the following persons and entities: x The key personnel x The owners and officers of the company x The entity submitting the proposal; and/or, x Any parent or affiliated company for actions filed in the State of California (For affiliates, proposer may limit disclosures of non-criminal matters to those in the Los Angeles County. x Any strategic partners or subcontractors identified in RFP. x Include the resolution and current status of each civil legal action. Note: The term "affiliate" as used in this RFP is defined in Article Section 1.1 of the Agreement. 2.5 FINANCIAL INFORMATION Provide the following financial information for the most recently completed fiscal year for the proposer or, if a corporate guaranty is to be provided, for the guarantor: x The type of financial statements (audited or reviewed) and the corporate entity that they represent (proposer or corporate guarantor). x The most recently completed fiscal year for which financial statements are available. x Annual revenue from the most recently completed financial statements. x Current Assets to Current Liabilities ratio (current assets/current liabilities) from the most recently completed financial statements. x Total Liabilities to Total Assets ratio (total liabilities/total assets) from the most recently completed financial statements. Upon request, proposers must submit the financial statements upon which the requested financial information is based within five (5) business days of the request. Statements must be prepared and presented in accordance with Generally Accepted Accounting Principles applied on a consistent basis and must include a statement by the chief financial officer of the proposer’s company that there has been no material adverse change in conditions or operations, as reflected in the submitted balance sheets, income statements and cash flow statements, since the date on which they were prepared. 7.2.a Packet Pg. 442 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 24 Proposers requested to submit financial statements may submit a single copy, stamped “confidential” and request for its return upon completion of the procurement process. The City will attempt to maintain the confidentiality of such a request, although confidentiality cannot be guaranteed. The selected proposer will be required to submit “reviewed” or “audited” financial statements that demonstrate reasonable financial resources and stability to the satisfaction of the City. If awarded the contract, the financial statements shall remain with the City. 2.6 INSURANCE Proposer must submit evidence that the proposer either has, or is able to obtain, the insurance coverage required in the draft Agreement Section 11.89. 3. PROPOSAL FOR SOLID WASTE SERVICES Proposer shall describe how it plans to perform the solid waste services requested in this RFP and described in the Draft Franchise Agreement. Information must separately address all materials collected for Residential, Multi-family, Commercial, and City facilities. 3.1 COLLECTION SERVICES APPROACH Proposer shall include detailed responses for each component of their collection approach, including at a minimum the categories listed below. If the strategies and/or assumptions are different for each organic material processing approach, provide details for each approach. Label each approach to correspond with the respective rate proposal. x Routing strategy and productivity assumptions by service sector (SFD, MFD, Commercial and City facilities); discussion of special routing (if any) for collecting in narrow streets, courts, and alleys; and route productivity assumptions (in terms of SFD accounts per route per day and MFD/Commercial lifts per route per day) and where these productivity assumptions have been accomplished in other cities serviced by the proposer. x Collection methodology (e.g., automated, semi-automated, one- or two-person crews, etc.), including discussion of special methods (if any) for collecting in any hard-to-service areas. x Number of and description of the collection vehicles to be utilized including make, model, and year, body type, yardage capacity, tonnage capacity, type of renewable natural fuel to be used, waste stream(s) to be collected (refuse, recycling, organics), cost, and lease or ownership arrangements. New vehicles are required for residential and MFD, commercial, and City collection services. x This requirement is primarily to ensure that comparable rate proposals are submitted. The City reserves the right to allow the contractor to provide used collection vehicles. x New or used vehicles may be used for support vehicles. 7.2.a Packet Pg. 443 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 25 x Manufacturer’s specifications of containers to be utilized. New carts shall be provided for residential and multi-family dwellings that use carts services and new or used containers (i.e. bins and drop boxes) may be provided for customers that are serviced with bins (i.e. MFD/Commercial/City customers). x Container requirements are described in draft Agreement Section 7.104.3. Proposer shall supply complete technical data and manufacturing specifications on the specific cart, bins and Drop Boxes being used. 3.2 CUSTOMER SERVICE CENTER Proposer shall describe the management systems and customer service systems its company uses to manage inquiries and complaints received from residential and commercial customers. The description of the management systems and customer service systems may include: x Description of system capability and/or procedures to ensure timely accessibility of information by jurisdictions served. x Description of procedures used to satisfactorily respond to, record, and report common customer complaints such as: missed pick-ups; spills and litter resulting from collection; collection schedule changes; broken or missing containers; improperly prepared setouts; noise complaints; traffic and sidewalk obstruction during collection; and safety around collection vehicles during operations. x Description as to whether individual call centers are established for each of the proposer’s service areas or if customer calls are handled by a centralized call center, and location of the proposed call center. x Description of how the customer service information interfaces with route data and billing data. x Description of how the company measures customer service about the call center’s responsiveness and accuracy of responses, as well as the quality of collection service. Identify specific performance metrics or targets your company tracks. x Identify the website that its customers use to obtain customer rates and service information, diversion services and requirements, and to submit inquiries or complaints. Provide website address. 3.3 IMPLEMENTATION PLAN Provide an implementation schedule that demonstrates ability to implement the services in accordance with the service start date, including meeting equipment, personnel, administration, maintenance, and public education requirements. 7.2.a Packet Pg. 444 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 26 3.4 AB 341, AB 1826, AND SB 1383 IMPLEMENTATION PLAN Proposer shall provide an AB 341, AB 1826, and SB 1383 implementation plan detailing planned tasks, procedures, and schedule to ensure the City’s compliance with AB 341, AB 1826, and SB 1383. The plan should address the following requirements. A description of proposer’s public education and outreach plans that comply with all CalRecycle requirements for Outreach and Education, Monitoring and Reporting, and Performance Standards and other applicable regulations. The plan shall include, at a minimum, the following components: x Timeline x Description of all proposed activities x Description of all proposed printed materials and electronic content x Examples of materials and content the proposer has developed for other jurisdictions (proposer may include materials as an attachment or provide images of the material within the proposal text). x Description of labels to be attached to containers that clearly indicate the accepted and prohibitive materials to be placed in containers. Labels shall comply with CalRecycle guidelines for labeling/signage. x Proposed continued outreach efforts to increase participation in recycling and organics programs, including use of direct mail, community workshops, development of how-to videos, dedicated website, community events, school outreach, etc. x Proposed contamination monitoring procedures including performing route reviews and or waste evaluations. 3.5 FOOD RESCUE AND DONATION PROGRAM Describe proposed efforts to assist the City and its customers with a food rescue and donation program to comply with SB 1383 which establishes a target that not less than 20% of currently disposed edible food is recovered for human consumption by 2025. 3.6 ORGANICS RECYCLING PROGRAM Describe proposed organics recycling program including type of containers proposed. Proposers should include detailed information on customer in-house preparation of material prior to disposal (e.g., bag or no bag requirements); include a comprehensive list of organic materials that are acceptable in each of the programs listed above, and a comprehensive list of organic materials that are not accepted in the program. Also, proposers are requested to submit samples of outreach materials already distributed to customers in a city with a similar program in place if proposer has implemented such program. Please describe your intended approach and activities related to SB 1383 organic waste collection and recycling 7.2.a Packet Pg. 445 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 27 services, education and outreach, capacity planning, procurement of organic waste products, reporting, contamination monitoring, and other compliance activities. 3.7 RECYCLABLE MATERIALS Specify all materials that can be recycled through the residential, multi-family and commercial recycling programs. 3.8 PROCUREMENT OF RECOVERED ORGANIC WASTE PRODUCTS Describe proposed assistance to the City to ensure that sufficient California recovered organic waste products are procured on behalf of the City to meet the requirements of SB 1383. Identify types and quantities of recovered organic waste products which shall be procured. 3.9 PROPOSED OPERATING FACILITIES Provide information about proposed operating facilities, including: x Yard address for equipment and personnel staging and arrangements for maintenance of equipment. x Office address for customer service, public relations, billing, and franchise administration; and, x Other operating facilities to be used in providing service under this agreement. 3.10 PROPOSED DISPOSAL, TRANSFER, AND PROCESSING FACILITIES Proposers must identify all proposed disposal, transfer, and processing facilities for transfer/disposal of refuse, processing of commingled recyclables, processing of organics, processing of mixed waste, and processing of construction and demolition debris. For each facility, please identify the following: x The name, address, and SWIS # of the facility. x The material to be processed (organic waste, commingled recyclables, mixed waste, or construction and demolition debris). x The tipping fee per ton. x A statement regarding any relationship between the proposer and the facility owner/operator (if any). x Indicate any proposed solid waste facility capacity guarantees. x Current and estimated diversion rate for processing of each waste stream (e.g., residential recyclables, residential organics, source-separated commercial recyclables, mixed commercial waste, commercial organics, C&D.) 7.2.a Packet Pg. 446 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 28 4. DISPLACED EMPLOYEE RETENTION In accordance with Labor Code Sections 1070, 1072, 1075, and 1076, proposer will offer employment to qualified existing employees of the current contractor that may be displaced if the current contractor is not retained. Please describe your procedures for offering such employment and any limitations. Please describe whether your company operates under a labor collective bargaining agreement. 5. EXCEPTIONS TO THE AGREEMENT The City expects that the successful proposer(s) will execute an Agreement with the City in substantially the same form as the Draft Agreement (as it may be changed via Addendum during the RFP process). Proposers are required to carefully review the Agreement before submitting proposals and are encouraged to have it reviewed by legal counsel. Proposers are also encouraged to submit written questions about any provision in the Agreement not fully understood, which would appear to be inconsistent with other provisions or otherwise incorrect, or which may deter them from submitting a Proposal or significantly increase the rate of their Proposal. To demonstrate agreement with to all terms and conditions of the draft Agreement as written, proposers are required to sign and include in their proposal the signature page of the draft Agreement. Any exceptions must include the nature of the proposed exception, the draft Agreement Section, proposed substitute language, and the change in costs that would take place if the proposed language were to be accepted by the City. The proposal is not considered complete without this signed page. The number, nature and materiality of objectionable provisions and suggested changes to the Agreement will be considered in evaluating proposals. 6. RATE PROPOSALS 6.1 PRIMARY RATE PROPOSAL FORMS Proposers may submit up to three complete sets of rate proposal forms: one for the residential sector, one for the commercial sector, and one for a citywide franchise. These proposals shall be based solely on the requirements requested in this RFP and further detailed in the draft Agreement without considering any exceptions or alternatives. 6.2 ALTERNATIVE RATE PROPOSALS Provided that the proposer has submitted a primary rate proposal that meets all of the minimum requirements of this RFP, the proposer may submit one or more alternative rate proposals. For example, proposer may submit an alternative rate proposal that retains existing used equipment. 7.2.a Packet Pg. 447 City of Diamond Bar, California Section 5. Submittal Requirements RFP for Solid Waste Services May 3Updated July 12, 2023 Page 29 7. PROPOSER CODE OF CONDUCT AND NON-COLLUSION AFFIDAVIT Each proposer shall include a copy of the Proposer Code of Conduct and Non-Collusion Affidavit (Attachment 2) that was submitted at the pre-proposal conference. 7.2.a Packet Pg. 448 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3Updated July 12, 2023 Page 30 SECTION 6 - PROPOSAL EVALUATION PROCESS This section describes the proposed process for evaluation of proposals and selection of Contractor(s). Note that the City reserves the right to modify this process in any way and at any time during the RFP and contractor selection process. EVALUATION AND SELECTION PROCESS An evaluation report, including a comparative description of the proposals, evaluation results, and a recommendation, will be prepared and presented to City Council. The City Council will review the recommendation and may approve that recommendation or form an alternative recommendation. During the evaluation process, proposers are required to allow site visits, and give presentations to the City and may be required to attend interviews. 7.2.a Packet Pg. 449 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3Updated July 12, 2023 Page 31 PROPOSAL EVALUATION CRITERIA The proposal will be objectively evaluated based on criteria that may include, but is not limited to, the following factors. PROPOSER’S QUALIFICATIONS x Collection Experience. Demonstrated experience of company providing the requested or similar services to other jurisdictions. If the proposer is a joint venture, demonstrated experience of parties working together. x Jurisdiction Satisfaction. Satisfaction of proposer references with services received, including but not limited to, implementation, customer services, reporting, assistance developing diversion programs, and working cooperatively with City staff. x Management and Customer Service Systems. Demonstrated capabilities of the company’s existing management and customer service systems’ abilities to track and monitor contract compliance, quality of collection service, and call center responsiveness. x Key Personnel Qualifications. Extent and relevance of the qualifications and experience of key personnel proposed for the transition team and on-going management of the City’s collection operations. TECHNICAL QUALIFICATIONS x Implementation Plan. Reasonableness of implementation schedule and ability to meet deadlines (e.g., reasonableness of equipment procurement schedules, implementation staffing levels, public education program, itemized steps for initiation, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution, new corporation or maintenance yard development, contingency plans, etc. o Customer Service. Customer service approach, staffing levels, and City-specific training programs. o Billing System. Billing approach and procedures for handling customer billing activities. o Collection Approach. Reasonableness and reliability of the proposed collection methods (e.g., technology, equipment, and containers); reasonableness of productivity and operating assumptions (i.e., number of routes, route drivers, route hours, stops per route, and other operating statistics), if applicable; and reasonableness of assumptions. x AB 341, AB 1826, and SB 1383 Implementation Plan. Completeness of proposed services, public education program, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution. x Diversion Outreach and Education Programs. The nature, reliability, and innovation of proposed diversion programs and potential of such programs to divert solid waste from landfill disposal and meet diversion requirements. Compatibility of the proposed education program, staffing level, and program ideas with the needs of the City; and, the quality of public education samples relative to other proposers. Likelihood of diversion programs to meet State-mandated outreach 7.2.a Packet Pg. 450 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3Updated July 12, 2023 Page 32 and education, diversion monitoring and reporting and performance measurement requirements. x Proposed Operations Facilities. Plan for providing the facilities needed for equipment storage and parking, maintenance, and administration. Level of assurance provided, if any, about site acquisition and timely development of necessary facilities if not proposing an existing, operational and permitted facility. x Proposed Disposal, Transfer, and Processing Facilities Reasonableness and reliability of the proposed facilities for disposal, transfer, and processing of solid waste, recyclable materials, and organic materials, including documentation of existing facility permitting/approvals and/or guarantee of sufficient capacity for tonnage from the City service area, and the reasonableness of proposed material transport plans. NUMBER AND MATERIALITY OF EXCEPTIONS TO AGREEMENT The number, nature, and materiality of suggested changes to the Agreement will be considered in evaluating proposals. FINANCIAL x Financial Stability. Financial stability of proposer based on its financial ratios and other financial considerations. x Insurance. Demonstrated ability of proposer to obtain adequate insurance. RATE PROPOSAL x Reasonableness of Rate Proposals. The logical relationship between proposed rates and operational assumptions. x Competitiveness of Rate Proposals. The competitiveness of the overall revenue requirement is evaluated relative to other proposals. ALTERNATIVE PROPOSALS The City is not obligated to evaluate or select alternative proposals. Alternative proposals will be considered by the City if the City concludes, in its sole discretion, that the alternative proposals warrant evaluation and analysis. Such evaluation will consider the reasonableness and reliability of proposed collection methods, technology, equipment, and containers; and the reasonableness of productivity and operating assumptions (i.e., number of routes, route drivers, route hours, stops per route, program diversion levels, and other operating statistics considered as pertinent by the City and its consultants). At the City’s option, the reasonableness and competitiveness of one or more alternative proposal(s) may be evaluated. 7.2.a Packet Pg. 451 City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste Services May 3Updated July 12, 2023 Page 33 AWARD Proposals must be complete and must conform to the requirements of this RFP as to form and content. The franchise or franchises will be awarded for the proposal or proposals that offer the greatest value to the City. The City, however, reserves the right to reject any or all proposals, to accept or reject any one or more items of a proposal, or to waive any minor irregularities or informalities in the proposal. City Council will select the proposal or proposals that it determines to best serve the City and is not bound to follow the recommendation of City staff or City staff’s proposal evaluations in making its selection. It is anticipated that all services described in this RFP will be contracted for. However, the City reserves the right to change such service descriptions prior to award. 7.2.a Packet Pg. 452 City of Diamond Bar, California Attachments RFP for Solid Waste Services May 3Updated July 12, 2023 Page 34 LIST OF ATTACHMENTS ATTAHCMENT 1: DRAFT AGREEMENT ATTACHMENT 2: PROPOSER CODE OF CONDUCT AND NON-COLLUSION AFFIDAVID ATTACHMENT 3: SERVICE DATA ATTACHMENT 4: CURRENT RATES ATTACHMENT 5: CITY FACILITIES ATTACHMENT 6: RATE PROPOSAL FORMS ATTACHMENT 7: RATE ADJUSTMENT METHODOLOGY ATTACHMENT 8: PROPOSAL OUTLINE 7.2.a Packet Pg. 453 ADDENDUM #1 DRAFT FRANCHISE AGREEMENT FOR SOLID WASTE SERVICES Between the Diamond Bar and [CONTRACTOR NAME] This _____ day of Month, 202__ 7.2.a Packet Pg. 454 ADDENDUM #1 City of Diamond Bar – DRAFT i June 12, 2023 Contents RECITALS ........................................................................................................................................................................... 1 ARTICLE 1: DEFINITIONS .................................................................................................................................................... 4 ARTICLE 2: GRANT AND ACCEPTANCE OF FRANCHISE ..................................................................................................... 18 2.1 GRANT AND ACCEPTANCE OF FRANCHISE, INDEMNITY OF AWARD ..................................................................... 18 2.2 EXCLUSIVE NATURE OF FRANCHISE ...................................................................................................................... 18 2.3 EFFECTIVE DATE .................................................................................................................................................... 19 2.4 TERM OF AGREEMENT .......................................................................................................................................... 19 2.5 CITY’S OPTION TO EXTEND TERM .......................................................................................................................... 19 2.6 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR..................................................................................... 19 2.7 CONDITIONS TO EFFECTIVENESS OF AGREEMENT ................................................................................................ 20 2.8 DELEGATION OF AUTHORITY ................................................................................................................................ 21 2.9 LIMITATIONS TO THE SCOPE ................................................................................................................................. 21 2.10 CITY’S RIGHT TO DIRECT CHANGES ....................................................................................................................... 23 2.10.1 General ......................................................................................................................................................... 23 2.10.2 New Diversion Programs .............................................................................................................................. 23 2.10.3 City’s Right To Acquire Services .................................................................................................................... 23 2.11 OWNERSHIP OF SOLID WASTE AND CITY’S RIGHT TO DIRECT SOLID WASTE .......................................................... 24 2.12 CONTRACTOR’S CORPORATE STATUS ................................................................................................................... 24 2.13 CONTRACTOR CORPORATE AUTHORIZATION ....................................................................................................... 25 2.14 ANNEXATIONS ...................................................................................................................................................... 25 2.15 PERMITS AND LICENSES ........................................................................................................................................ 25 ARTICLE 3: SCOPE OF COLLECTION SERVICES ................................................................................................................... 25 3.1 SERVICES TO BE PROVIDED – GENERAL ................................................................................................................. 25 3.2 SINGLE-FAMILY DWELLING COLLECTION SERVICE ................................................................................................ 26 3.2.1 Cart Sizes ...................................................................................................................................................... 26 3.2.2 Cart Color ..................................................................................................................................................... 26 3.2.3 Refuse Cart Overage .................................................................................................................................... 26 3.2.4 Backyard Service .......................................................................................................................................... 27 3.2.5 Backyard Service for Disabled People .......................................................................................................... 27 3.2.6 Door-To-Door HHW Collection ..................................................................................................................... 27 3.2.7 Annual Household Hazardous Waste Event ................................................................................................. 28 3.2.8 Curbside Used Oil And Oil Filter Collection ................................................................................................... 28 3.2.9 Home Generated Sharps Mail Back Program ............................................................................................... 28 3.2.10 Medication Takeback Program .................................................................................................................... 28 3.2.11 FreeCycle.Com .............................................................................................................................................. 28 3.2.12 Annual Holiday Tree Collection .................................................................................................................... 28 3.2.13 Mulch Give-a-Way........................................................................................................................................ 29 3.3 COMMERCIAL AND MULTI-FAMILY COLLECTION SERVICES .................................................................................. 29 3.3.1 Bin Sizes ........................................................................................................................................................ 29 3.3.2 Commercial And Multi-Family Premises Cart Service................................................................................... 29 3.3.3 Container Color ............................................................................................................................................ 30 3.3.4 Site Visits, Education and Outreach – Commercial Recycling And Organics ................................................ 30 3.3.5 Processing Of Mixed Waste ......................................................................................................................... 31 7.2.a Packet Pg. 455 ADDENDUM #1 City of Diamond Bar – DRAFT ii June 12, 2023 3.3.6 Scout Service ................................................................................................................................................ 31 3.3.7 Bin Pushout Service ...................................................................................................................................... 32 3.3.8 Locking Bins .................................................................................................................................................. 32 3.3.9 Redelivery/Return Trip Fee ........................................................................................................................... 32 3.4 ROLL-OFF BOX SERVICE ......................................................................................................................................... 32 3.5 TEMPORARY BIN SERVICE ..................................................................................................................................... 33 3.6 ON-CALL BULKY ITEM PICKUP ............................................................................................................................... 33 3.7 CITY SERVICES ....................................................................................................................................................... 34 3.7.1 City Facilities ................................................................................................................................................ 34 3.7.2 City-Sponsored Events .................................................................................................................................. 34 3.7.3 Emergency Collection And DIsposal Service ................................................................................................. 34 3.7.4 Abandoned Item Collection From City Right-of-Way Public Property .......................................................... 35 3.7.5 Community Development Review Services................................................................................................... 35 3.7.6 Large Venue Event Assistance ...................................................................................................................... 35 3.7.7 Confiscation Of Unauthorized Containers .................................................................................................... 35 3.7.8 Provision of Storage Containers ................................................................................................................... 36 3.7.9 Procurement Of Recovered Organics Waste Products ................................................................................. 36 ARTICLE 4: REQUIREMENTS FOR OPERATIONS, EQUIPMENT, AND PERSONNEL .............................................................. 37 4.1 OPERATIONS ......................................................................................................................................................... 37 4.1.1 Schedules...................................................................................................................................................... 37 4.1.2 Missed Pickups ............................................................................................................................................. 37 4.1.3 Holiday Collection Schedule ......................................................................................................................... 37 4.1.4 Change In Collection Schedule ..................................................................................................................... 38 4.1.5 Dedecated Routes ........................................................................................................................................ 38 4.1.6 Overflowing Containers ................................................................................................................................ 38 4.1.7 Graffiti Removal ........................................................................................................................................... 39 4.1.8 Litter Abatement .......................................................................................................................................... 39 4.1.9 Health And Safety Training .......................................................................................................................... 40 4.1.10 Unauthorized Material Removal .................................................................................................................. 40 4.1.11 Report Of Accumulation Of Solid Waste; unauthorized Dumping ............................................................... 40 4.1.12 Route Audit .................................................................................................................................................. 40 4.1.13 Service Exceptions; Hazardous Waste Notifications .................................................................................... 42 4.1.14 Collection of Former Contractor’s Containers .............................................................................................. 42 4.2 VEHICLE REQUIREMENTS ...................................................................................................................................... 43 4.2.1 General ......................................................................................................................................................... 43 4.2.2 Vehcile Specifications ................................................................................................................................... 43 4.2.3 Vehicle Identification.................................................................................................................................... 44 4.2.4 Cleaning And Maintenance .......................................................................................................................... 44 4.2.5 Vehicle Operations ....................................................................................................................................... 45 4.2.6 City Inspection Per Code ............................................................................................................................... 45 4.2.7 Vehicle Inspections ....................................................................................................................................... 46 4.2.8 Correction Of Defects ................................................................................................................................... 46 4.2.9 City Informational Displays .......................................................................................................................... 46 4.2.10 Vehicle And Equipment Inventory ................................................................................................................ 46 4.3 CONTAINER REQUIREMENTS ................................................................................................................................ 47 4.3.1 Cart Requirements ....................................................................................................................................... 47 4.3.2 Bin Requirements ......................................................................................................................................... 50 7.2.a Packet Pg. 456 ADDENDUM #1 City of Diamond Bar – DRAFT iii June 12, 2023 4.3.3 Roll-Off Box Requirements ........................................................................................................................... 51 4.4 PERSONNEL ........................................................................................................................................................... 51 4.4.1 Qualified Personnel ...................................................................................................................................... 51 4.4.2 Identification Required ................................................................................................................................. 51 4.4.3 Hazardous Material Employee Training ....................................................................................................... 51 4.4.4 Fees And Gratuities ...................................................................................................................................... 52 4.4.5 Non-Discrimination ...................................................................................................................................... 52 4.4.6 Hiring of Displaced Employees ..................................................................................................................... 52 4.4.7 City Liaison ................................................................................................................................................... 52 4.4.8 Service Liaison .............................................................................................................................................. 52 4.4.9 Environmental Coordinator ............................................................................................................................ 53 4.4.10 City’s Right to Approve City and Service Liaison .............................................................................................. 53 ARTICLE 5: PROCESSING AND DISPOSAL REQUIREMENTS ............................................................................................... 53 5.1 TRANSPORTATION OF DISCARDED MATERIALS .................................................................................................... 53 5.2 DIVERSION AND PROCESSING REQUIREMENTS .................................................................................................... 53 5.2.1 Processing Of Recyclables And Organics ...................................................................................................... 54 5.2.2 End Uses For Organics .................................................................................................................................. 54 5.2.3 Bulky Item Diversion ..................................................................................................................................... 54 5.2.4 Construction And Demolition Debris Diversion ............................................................................................ 55 5.2.5 Diversion of Electronic, Universal and Other Special Waste ........................................................................ 55 5.3 MARKETING AND SALE OF RECYCLABLES .............................................................................................................. 55 5.4 USE OF DESIGNATED FACILITIES ............................................................................................................................ 55 5.5 USE OF CONTRACTOR-OWNED APPROVED FACILITEIS ......................................................................................... 56 5.6 SOLID WASTE CAPACITY GUARANTEE ................................................................................................................... 56 ARTICLE 6: OTHER SERVICES ............................................................................................................................................ 57 6.1 BILLING AND CONTRACTOR COMPENSATION ....................................................................................................... 57 6.1.1 Residential Cart Customers .......................................................................................................................... 57 6.1.2 Commercial Cart and Bin Service ................................................................................................................. 57 6.1.3 Disabled Customer Discount ........................................................................................................................ 57 6.1.4 Senior Discount ............................................................................................................................................ 57 6.1.5 Form of Payment .......................................................................................................................................... 58 6.1.6 Temporary Bin and Roll-Off Box Service ....................................................................................................... 58 6.1.7 Automated Billing Payment ......................................................................................................................... 58 6.1.8 Bill Payment by Phone .................................................................................................................................. 58 6.1.9 Review of Billings ......................................................................................................................................... 58 6.1.10 Suspension Of Service Due To Non-Payment ............................................................................................... 59 6.1.11 Debt Collection ............................................................................................................................................. 59 6.1.12 Continued Provision Of Service .................................................................................................................... 60 6.1.13 No Marketing ............................................................................................................................................... 60 6.2 CUSTOMER SERVICE .............................................................................................................................................. 60 6.2.1 Local Office ................................................................................................................................................... 60 6.2.2 Customer Service Portal ............................................................................................................................... 60 6.2.3 Customer Complaints, Inquiries And Service Requests................................................................................. 60 6.2.4 Customer Service Standards ......................................................................................................................... 61 6.2.5 Resolution Of Customer Complaints ............................................................................................................ 62 6.2.6 Emergency Contacts ..................................................................................................................................... 62 7.2.a Packet Pg. 457 ADDENDUM #1 City of Diamond Bar – DRAFT iv June 12, 2023 6.2.7 Multi-lingual, TDD Services .......................................................................................................................... 62 6.3 CUSTOMER OUTREACH AND EDUCATION............................................................................................................. 62 6.3.1 On-Going Education Requirements .............................................................................................................. 63 6.3.2 AB 341, AB 1826, And SB 1383 Compliance ................................................................................................. 65 ARTICLE 7: FRANCHISE FEE, CALRECYCLE COMPLIANCE FEE, VEHICLE IMPACT FEE, AND OTHER FEES ............................. 66 7.1 FRANCHISE FEE ..................................................................................................................................................... 66 7.2 CALRECYCLE COMPLIANCE FEE ............................................................................................................................. 66 7.3 RESIDENTIAL VEHICLE IMPACT FEE ....................................................................................................................... 67 7.4 RESIDENTIAL STREET SWEEPING FEE .................................................................................................................... 67 7.5 CONTRACTING FEE ................................................................................................................................................ 68 7.6 TIME AND METHOD OF FEE PAYMENTS TO THE CITY ............................................................................................ 68 ARTICLE 8: RECORDS, REPORTS AND INFORMATION REQUESTS ..................................................................................... 68 8.1 GENERAL ............................................................................................................................................................... 68 8.2 RECORDS ............................................................................................................................................................... 69 8.2.1 General ................................................................................................................................................................. 69 8.2.2 Financial Records ......................................................................................................................................... 69 8.2.3 Solid Waste Records ..................................................................................................................................... 70 8.2.4 CERCLA Defense Records .............................................................................................................................. 70 8.2.5 Other Programs’ Records ............................................................................................................................. 71 8.2.6 Audit ............................................................................................................................................................. 71 8.2.7 Payments And Refunds ................................................................................................................................ 72 8.3 REPORTS ............................................................................................................................................................... 72 8.3.1 Monthly Reports ........................................................................................................................................... 73 8.3.2 Quarterly Reports ......................................................................................................................................... 73 8.3.3 Annual Reports ............................................................................................................................................. 74 8.3.4 Financial Reports .......................................................................................................................................... 75 8.4 REPORTING ADVERSE INFORMATION ................................................................................................................... 75 8.5 RIGHT TO INSPECT RECORDS ................................................................................................................................. 75 8.6 FAILURE TO REPORT .............................................................................................................................................. 76 ARTICLE 9: REVIEW OF SERVICES AND PERFORMANCE.................................................................................................... 76 9.1 PERFORMANCE REVIEW MEETING ....................................................................................................................... 76 9.2 PERFORMANCE SATISFACTION SURVEY ................................................................................................................ 77 ARTICLE 10: CONTRACTOR COMPENSATION AND MAXIMUM SERVICE RATES ................................................................ 77 10.1 CONTRACTOR COMPENSATION ............................................................................................................................ 77 10.2 INITIAL RATES ........................................................................................................................................................ 78 10.3 SCHEDULE OF FUTURE ANNUAL RATE ADJUSTMENTS .......................................................................................... 78 10.4 METHOD OF ADJUSTMENTS ................................................................................................................................. 78 10.4.1 Procedure for Single-Family Cart Service And Bin Service ............................................................................ 79 10.4.2 Procedure for Roll-Off BOX Service .............................................................................................................. 83 10.4.3 Procedure for Other Services ........................................................................................................................ 86 10.5 EXTRAORDINARY RATE ADJUSTMENTS ................................................................................................................. 86 ARTICLE 11: INDEMNIFICATION, INSURANCE AND PERFORMANCE BOND ...................................................................... 87 11.1 INDEMNIFICATION OF THE CITY ............................................................................................................................ 87 7.2.a Packet Pg. 458 ADDENDUM #1 City of Diamond Bar – DRAFT v June 12, 2023 11.1.1 General ......................................................................................................................................................... 87 11.1.2 Hazardous Material Indemnification ........................................................................................................... 88 11.1.3 AB 939 Indemnification and Guarnatee ....................................................................................................... 89 11.1.4 CALRECYCLE Indemnification ....................................................................................................................... 90 11.2 EVALUATION OF LIABILITY .................................................................................................................................... 90 11.3 SEPARATE COUNSEL .............................................................................................................................................. 91 11.4 CONSIDERATION ................................................................................................................................................... 91 11.5 OBLIGATION .......................................................................................................................................................... 91 11.6 COLLECTION SERVICES SUBCONTRACTORS .......................................................................................................... 91 11.7 SURVIVAL .............................................................................................................................................................. 92 11.8 INSURANCE ........................................................................................................................................................... 92 11.9 FAITHFUL PERFORMANCE BOND .......................................................................................................................... 96 11.10 FAITHFUL PERFORMANCE LETTER OF CREDIT ....................................................................................................... 96 11.11 FORFEITURE OF PERFORMANCE BOND ................................................................................................................. 97 11.12 FORFEITURE OF LETTER OF CREDIT ....................................................................................................................... 97 11.13 PERFORMANC SECURITY BEYOND SERVICE TERM ................................................................................................ 97 ARTICLE 12: CITY’S RIGHT TO CONTRACT WITH THIRD PARTIES TO PERFORM FRANCHISE SERVICES .............................. 98 12.1 GENERAL ............................................................................................................................................................... 98 12.2 TEMPORARY POSSESION OF CONTRACTOR’S PROPERTY ...................................................................................... 99 12.3 BILLING AND COMPENSATION TO CITY DURING CITY’S POSSESSION .................................................................... 99 12.4 CITY’S RIGHT TO RELINQUISH POSSESSION ........................................................................................................... 99 12.5 CITY’S POSSESSION NOT A TAKING........................................................................................................................ 99 12.6 DURATION OF CITY’S POSSESSION ...................................................................................................................... 100 ARTICLE 13: DEFAULT AND REMEDIES ........................................................................................................................... 100 13.1 EVENTS OF DEFAULT ........................................................................................................................................... 100 13.2 RIGHT TO TERMINATE UPON DEFAULT AND RIGHT TO SPECIFIC PERFORMANCE............................................... 102 13.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT ...................................................................................................... 103 13.4 CRIMINAL ACTIVITY ............................................................................................................................................. 104 13.5 POSSESSION OF RECORDS UPON TERMINATION ................................................................................................ 104 13.6 CITY’S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE ................................................................................. 104 13.7 LIQUIDATED DAMAGES ....................................................................................................................................... 104 13.8 SUSPENSION OF PERFORMANCE ........................................................................................................................ 109 13.8.1 Force Majeure ................................................................................................................................................... 109 13.8.2 Labor Unrest ..................................................................................................................................................... 109 13.9 DISPUTE RESOLUTION ......................................................................................................................................... 110 13.9.1 Negotiation And Mediation .............................................................................................................................. 110 13.9.2 Confidentiality .................................................................................................................................................. 110 13.9.3 Injunctive Relief ................................................................................................................................................ 110 13.9.4 Continuing Obligation ....................................................................................................................................... 111 13.9.5 Failure of Mediation ......................................................................................................................................... 111 13.10 ASSURANCE OF PERFORMANCE.......................................................................................................................... 111 ARTICLE 14: OTHER AGREEMENTS OF THE PARTIES ....................................................................................................... 111 14.1 RELATIONSHIP OF PARTIES ................................................................................................................................. 111 14.2 COMPLIANCE WITH LAW .................................................................................................................................... 111 14.3 GOVERNING LAW ................................................................................................................................................ 112 7.2.a Packet Pg. 459 ADDENDUM #1 City of Diamond Bar – DRAFT vi June 12, 2023 14.4 JURISDICTION ...................................................................................................................................................... 112 14.5 ASSIGNMENT ...................................................................................................................................................... 112 14.6 AFFILIATED COMPANIES ..................................................................................................................................... 113 14.7 CONTRACTING OR SUBCONTRACTING ................................................................................................................ 114 14.8 BINDING ON ASSIGNS ......................................................................................................................................... 114 14.9 TRANSITION TO NEXT CONTRACTOR .................................................................................................................. 114 14.10 PARTIES IN INTERSET ........................................................................................................................................... 115 14.11 WAIVER ............................................................................................................................................................... 115 14.12 CONTRACTOR’S INVESTIGATION ......................................................................................................................... 115 14.13 NOTICE ................................................................................................................................................................ 115 14.14 REPRESENTATIVE OF THE PARTIES ...................................................................................................................... 116 14.15 CITY FREE TO NEGOTIATE WITH THIRD PARTIES ................................................................................................. 116 14.16 COMPLIANCE WITH MUNICIPAL CODE ............................................................................................................... 116 14.17 PRIVACY .............................................................................................................................................................. 116 14.18 PROPRIETARY INFORMATION, PUBLIC RECORDS ................................................................................................ 117 ARTICLE 15: MISCELLANEOUS AGREEMENTS ................................................................................................................. 117 15.1 ENTIRE AGREEMENT ........................................................................................................................................... 117 15.2 SECTION HEADINGS ............................................................................................................................................ 117 15.3 REFERENCES TO LAWS AND OTHER AGREEMENTS ............................................................................................. 117 15.4 INTERPRETATION ................................................................................................................................................ 118 15.5 AGREEMENT ....................................................................................................................................................... 118 15.6 SEVERABILITY ...................................................................................................................................................... 118 15.7 EXHIBITS .............................................................................................................................................................. 118 15.8 ATTORNYS’ FEES .................................................................................................................................................. 118 EXHIBIT 1: INITIAL MAXIMUM SERVICE RATES .............................................................................................................. 120 EXHIBIT 2: EXAMPLE OF RATE ADJUSTMENT PROCEDURE............................................................................................. 120 EXHIBIT 2A – RATE ADJUSTMENT PROCEDURE – SFD CARTS ............................................................................................ 120 EXHIBIT 2B – RATE ADJUSTMENT PROCEDURE – BINS ..................................................................................................... 120 EXHIBIT 2C – RATE ADJUSTMENT PROCEDURE – ROLL-OFF BOXES .................................................................................. 120 EXHIBIT 2D – RATE ADJUSTMENT PROCEDURE – OTHER .................................................................................................. 120 EXHIBIT 2E – EXAMPLE OF INDEX CALCULATION .............................................................................................................. 120 EXHIBIT 3: LIST OF DESIGNATED FACILITIES ................................................................................................................... 120 EXHIBIT 4: LIST OF DIVERSION PRORAM MATERIALS .................................................................................................... 120 EXHIBIT 5: AB 341, AB 1826, AND SB 1383 COMPLIANCE PLAN ..................................................................................... 120 EXHIBIT 6: CORPORATE GUARANTY .............................................................................................................................. 120 EXHIBIT 7: FAITHFUL PERFORMANCE BOND .................................................................................................................. 120 EXHIBIT 8: CONTRACTOR’S PROPOSAL .......................................................................................................................... 120 7.2.a Packet Pg. 460 ADDENDUM #1 City of Diamond Bar – DRAFT 1 June 12, 2023 This Franchise Agreement for Solid Waste Services (“Agreement”) is entered into this ___ day of ____ _, 2023 by and between the City of Diamond Bar and [CONTRACTOR NAME] “Contractor”, for the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste and other services related to meeting the goals and requirements of the California Integrated Waste Management Act. In this Agreement, the City and Contractor may be collectively referred to as the “Parties” and individually referred to as “Party.” RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“Act”) and subsequent additions and amendments (codified at California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdiction to meet the goals and requirements of AB 939; and, WHEREAS, pursuant to California Public Resources Code Section 40059(a)(2), the City Council of the City of Diamond Bar has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified company for the Collection, Transfer and Transportation, Recycling, Processing, and Disposal of Solid Waste and other services related to meeting the Diversion goals required by AB 939, and other requirements of the California Integrated Waste Management Act; and, WHEREAS, the Legislature of the State of California, in California Public Resources Code Section 41780 et seq., has declared a mandatory commercial Recycling program and that it is the policy goal of the state that not less than 75 percent of Solid Waste generated be source reduced, recycled, or composted by the year 2020, and annually thereafter; and, WHEREAS, the Legislature of the State of California, in California Public Resources Code Section 41781.3 et seq., has declared that as of January 1, 2020, the use of green material as Landfill alternative daily cover will no longer constitute Diversion through Recycling and will instead be considered Disposal in terms of measuring a jurisdiction’s annual 50 percent per capita disposal rate; and, WHEREAS, California Public Resources Code Section 42649 et seq., requires a mandatory commercial Organic Waste Diversion program; and, WHEREAS, the Short-Lived Climate Pollutants Bill of 2016 (SB 1383) establishes regulatory requirements for jurisdictions, generators, haulers, Solid Waste facilities, and other entities to support achievement of state-wide Organic Waste Disposal reduction targets; and WHEREAS, SB 1383 requires jurisdictions to implement Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to Contractor, acting as the City’s designee, through this Agreement; and, 7.2.a Packet Pg. 461 ADDENDUM #1 City of Diamond Bar – DRAFT 2 June 12, 2023 WHEREAS, the City declares its intention of maintaining reasonable rates and quality service related to the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste and other services; and, WHEREAS, the California Department of Resources Recycling and Recovery (“CalRecycle”) promulgated regulations to implement SB 1383 (the “SB 1383 Regulations”) for local jurisdictions, Generators, haulers, Solid Waste facilities, and other entities to support achievement of statewide Organic Waste Disposal reduction targets; and, WHEREAS, the current franchise agreement will expire on August 30, 2025; and, WHEREAS, in response to a Request for Proposals, the Contractor has submitted a proposal to the City and the City selected the Contractor on the competitive advantages of that proposal over other proposals received by the City; and WHEREAS, City and Contractor (“Parties”) hereto desire to enter said Agreement; and, WHEREAS, City and Contractor are mindful of the provisions of the laws governing the safe Collection, Transport and Transportation, Recycling, Processing and Disposal of Solid Waste, including AB 939, the Resource Conservation and Recovery Act (“RCRA”), and the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). City and Contractor desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City is not thereby becoming an “arranger” or a “generator” as those terms are used in CERCLA, and that it is Contractor, not City, who is “arranging for” the Collection from premises in the City, Transport for Disposal, Composting or other Processing, and Recycling of municipal Solid Waste which may contain Hazardous Material; and further to confirm that as a material inducement to City entering into this Agreement, Contractor has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional Collection, Transportation and/or Disposal of Hazardous Materials that may occur in connection with Contractor’s performance under this Agreement, and WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing Landfill space and potential adverse environmental impacts from Landfill Disposal and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016), directed the responsible State agency, and all local agencies, to promote a reduction in Landfill Disposal and to maximize the use of feasible waste reduction, Reuse, Recycling, and composting options in order to reduce the amount of material that must be Disposed; and, WHEREAS, the City Council of the City of Diamond Bar hereby desires that Contractor be engaged to provide for both the Collection of Solid Waste within the corporate limits of the City of Diamond Bar 7.2.a Packet Pg. 462 ADDENDUM #1 City of Diamond Bar – DRAFT 3 June 12, 2023 and the Transportation of such Solid Waste to appropriate places for Processing, Recycling, Organics Diversion, and Disposal, and to perform such services on the terms and conditions set forth in this Agreement; and WHEREAS, Contractor has agreed, as part of this Agreement, acting as an independent contractor to provide such personnel, equipment and supplies as are necessary to ensure City complies with the requirements of Public Resources Code Section 49100 et seq., WHEREAS, Contractor agrees to and acknowledges that it shall arrange for the proper Disposal of all Solid Waste Collected in City and City is not instructing Contractor how to Collect, Process and Dispose of Solid Waste. WHEREAS, consistent with provisions of the Act, including Public Resources Code Section 40059, aspects of Solid Waste Services are of local concern, including frequency of collection, means of collection and Transportation, level of services, charges and fees, the nature, location, and extent of providing Solid Waste Services, and whether the services are to be provided by means of a non- exclusive, partially exclusive, or wholly exclusive franchise, contract, license, or otherwise which may be granted by the City under terms and conditions prescribed by the City Council; and WHEREAS, this Agreement has been developed by and is satisfactory to the City and the CONTRACTOR, Now, therefore, in consideration of the mutual covenants, conditions and consideration contained herein, the City and Contractor hereby agree as hereinafter set forth: 7.2.a Packet Pg. 463 ADDENDUM #1 City of Diamond Bar – DRAFT 4 June 12, 2023 ARTICLE 1: DEFINITIONS For the purpose of this Agreement, the definitions contained in this Article shall apply unless otherwise specifically stated. If a word or phrase is not defined in this Agreement, the definition of such word or phrase as contained in the City of Diamond Bar Municipal Code shall control. 1.1 AFFILIATE “Affiliate” means all businesses, including, without limitation, corporations, limited and general partnerships and sole proprietorships, that are directly or indirectly related to the Contractor by virtue of direct or indirect ownership interest or common management. Such businesses shall be deemed to be “Affiliated with” the Contractor and included within the term “Affiliates” as used herein. An Affiliate includes: (i) a business in which the Contractor has a direct or indirect ownership interest; (ii) a business that has a direct or indirect ownership interest in the Contractor; and/or (iii) a business that is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in the Contractor. For the purposes of this definition, “ownership” means ownership as defined in the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the effective date, provided that ten percent (10%) shall be substituted for fifty percent (50%) in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest of value that the ownership interest represents, whichever is greater. Being an Affiliate does not exempt a business from the application of assignment requirements under Section 14.5 1.2 AGREEMENT “Agreement” means this Franchise Agreement between the City and Contractor for the Collection, Transportation, Recycling, Processing, and/or Disposal, of Solid Waste, and other services related to meeting the goals and requirements of AB 939, including all exhibits and attachments, and any amendments thereto. 1.3 APPLICABLE LAW "Applicable Law" means all statutes, rules, regulations, guidelines, actions, determinations, Permits, orders, or requirements of the United States, State, County of Los Angeles, City and local and regional government authorities and agencies having applicable jurisdiction, that apply to or govern the Site or the performance of the Parties’ respective obligations hereunder, including any of the foregoing which concern health, safety, fire, environmental protection, labor relations, mitigation monitoring plans, building codes, zoning, non-discrimination, and prevailing wages if applicable. All references herein to Applicable Law include subsequent amendments or modifications thereof, unless otherwise specifically limited in this Agreement. 7.2.a Packet Pg. 464 ADDENDUM #1 City of Diamond Bar – DRAFT 5 June 12, 2023 1.4 ASSEMBLY BILL 341 (AB 341) “AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statutes of 2011 [Chesbro, AB 341]), also commonly referred to as “AB 341,” as it may be amended supplemented, superseded, or replaced from time to time. 1.5 ASSEMBLY BILL 939 (AB 939) (ACT) "AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended, supplemented, superseded, or replaced from time to time. 1.6 ASSEMBLY BILL 1594 (AB 1594) “AB 1594” means that per California Public Resources Code Section 41781.3 et seq., commencing January 1, 2020, the use of green material as Landfill alternative daily cover does not constitute Diversion through Recycling and shall be considered Disposal. 1.7 ASSEMBLY BILL 1826 (AB 1826) “AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying Division 30 of the California Public Resources Code), also commonly referred to as “AB 1826,” as amended, supplemented, superseded, and replaced from time to time. 1.8 BILLINGS “Billings” means any and all statements of charges for services rendered in accordance with this Agreement, howsoever made, described or designated by City or Contractor, or made by others for City or Contractor, to Customers in the City. 1.9 BIN “Bin” means a metal or plastic Container with hinged lid(s) and wheels serviced by a front-end loading Collection vehicle with a Container capacity of less than (10) cubic yards, including Bins with compactors attached to increase the capacity of the Bin. Bins are also known as dumpsters. 1.10 BIN SERVICE “Bin Service” means Solid Waste Collection provided by Contractor to Customers using Bins(s) to accumulate and store their Discarded Materials for collection. 1.11 BLUE CONTAINER “Blue Container” has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials. 7.2.a Packet Pg. 465 ADDENDUM #1 City of Diamond Bar – DRAFT 6 June 12, 2023 1.12 BULKY ITEMS “Bulky Items” means Discarded Materials that cannot and / or would not typically be accommodated within a Cart including specifically: discarded furniture (including chairs, sofas, mattresses, carpet, and other similar items); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances, and other similar items, commonly known as “white goods”); unusually large amounts of yard debris and Green Waste and small pieces of wood limited to one cubic yard of contained material; Electronic Waste (including stereos, televisions, computers and monitors, VCRs, microwaves and other similar items commonly known as “brown goods” and “e-waste”); Bulky Items do not include car bodies, tires, or C&D Debris, or any other items that require more than two (2) Persons to remove. Other items not specifically included or excluded above will be Collected provided that they are not more than eight (8) feet in length, four feet in width, or more than 150 pounds. In the event a question ever arises as to whether a specific item or category of items meets the definition of Bulky Items, City Administrator shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. 1.13 BUSINESS DAYS “Business Days” mean days during which the City’s administrative offices are normally open to do business with the public. 1.14 CALRECYCLE “CalRecycle” means the State of California’s Department of Resources Recycling and Recovery, and, as this department was structured prior to January 1, 2010, the California Integrated Waste Management Board or CIWMB, as well as any successor agency to CalRecycle. 1.15 CART “Cart” means a heavy plastic receptacle and a rated capacity of at least thirty (30) gallons and not more than one-hundred one (101) gallons, having a hinged, tight-fitting lid and wheels, that is approved by the Contract Administrator for use by Customers for Collection services under this Agreement. 1.16 CITY “City” means the City of Diamond Bar, California, a municipal corporation, and all the territory lying within the municipal boundaries of the City as presently existing or as such boundaries may be modified during the term of this Agreement. 1.17 COLLECT, COLLECTED, COLLECTION "Collect" or "Collection" means to take physical possession, Transport, and remove Discarded Materials within and from City. 7.2.a Packet Pg. 466 ADDENDUM #1 City of Diamond Bar – DRAFT 7 June 12, 2023 1.18 COMMENCEMENT DATE “Commencement Date” means the date specified in Section 2.4 when the Contractor is to begin providing Solid Waste Services and other related services required by this Agreement. 1.19 COMMERCIAL EDIBLE FOOD GENERATORS “Commercial Edible Food Generators” includes Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators, or as otherwise specified by 14 CCR Section 18982(a)(7). 1.20 COMMERCIAL PREMISES “Commercial Premises" means Premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein, in the City of Diamond Bar Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses (as defined in the Diamond Bar Municipal Code) are occurring shall be deemed to be Commercial Premises: Assisted Living Facilities, Convalescent Homes, Dormitories, Extended Stay Motels, Hotels, Motels, and Multi-Family Premises with five (5) units or more. 1.21 COMMERCIAL EDIBLE FOOD GENERATORS “Commercial Edible Food Generators” includes Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators, or as otherwise specified by 14 CCR Section 18982(a)(7). 1.22 COMMUNITY COMPOSTING “Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or as otherwise defined in 14 CCR Section 18982(a)(8). 1.23 COMPOST, COMPOSTING “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the effective date of this Agreement, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility. 7.2.a Packet Pg. 467 ADDENDUM #1 City of Diamond Bar – DRAFT 8 June 12, 2023 1.24 CONTRACT ADMINISTRATOR “Contract Administrator” means _____________________, or any subsequent Person, or his or her designee, designated by the City to administer and monitor the provisions of this Agreement. 1.25 CONTRACTOR “Contractor” means [CONTRACTOR NAME], and its officers, directors, employees, agents, companies, and Subcontractors. 1.26 CONTRACTOR’S PROPOSAL "Contractor's Proposal" means the proposal submitted by Contractor to City on ____________, 2023 in response to a Request for Proposals dated ____________, 2023. Contractor's Proposal was selected by City based on its competitive advantages over other proposals received, and City specifically relied upon the representations and warranties set forth therein in entering into this Agreement. Contractor's Proposal is attached as Exhibit 8 and incorporated into this Agreement by reference, and Contractor represents and warrants that all representations set forth in such proposal are true and correct. 1.27 CONTRACTOR COMPENSATION "Contractor Compensation" means the revenue received by the Contractor from Billings, excluding City fees as defined in Article 7 of this Agreement, in return for providing services in accordance with this Agreement and any amendments to this Agreement. 1.28 CONSTRUCTION AND DEMOLITION DEBRIS OR C&D OR C&D DEBRIS "Construction and Demolition Debris" or “C&D Material,” means any combination of inert building materials and Solid Waste resulting from construction, remodeling, repair, cleanup, or demolition operations as defined in California Code of Regulations, Title 22 Section 66261.3 et seq. This term includes, but is not limited to, asphalt, concrete, Portland cement concrete, brick, lumber, gypsum wallboard, cardboard, and other associated packaging; roofing material, ceramic tile, carpeting, plastic pipe, and steel. The material may be commingled with rock, soil, tree stumps; and other vegetative matter resulting from land clearing and landscaping for construction or land development projects. Accepted and prohibited materials are listed in Exhibit 4. 1.29 CONTAINER(S) “Container(s)” means any and all types of Solid Waste receptacles, including Carts, Bins, dumpsters, debris boxes, Roll-Off Boxes, and Compactors. 1.30 CONTAINER CONTAMINATION “Container Contamination” means the following: (i) discarded materials placed in the Blue Container that are not Blue Container Waste; (ii) discarded materials placed in the Green Container that are not Green Container Waste; (iii) discarded materials placed in the Gray Container that are Blue Container 7.2.a Packet Pg. 468 ADDENDUM #1 City of Diamond Bar – DRAFT 9 June 12, 2023 Waste or Green Container Waste; and, (v) non-Solid Waste items placed in any container. 1.31 CUSTOMER(S) “Customer” means the Person having the care and control of any Premises in the City and to whom Contractor submits its billing invoice and collects payment for Solid Waste Services provided pursuant to the terms of this Agreement. 1.32 DAY “Day” means calendar day unless otherwise specified in this Agreement. 1.33 DESIGNATED FACILITY(IES) “Designated Facility(ies)” means any one of or any combination of Disposal, Transfer, or Processing facilities including, C&D Processing Facilities; Landfills; High Diversion Organic Waste Processing Facilities; Organics Waste Processing Facilities, Source Separated Recyclable Materials Processing Facilities; and Transfer Facilities as defined in this Article and listed in Exhibit 3. Any such facility utilized by the Contractor shall be designed and constructed in accordance with Applicable Laws and shall have been issued all permits from federal, state, regional, county and city agencies necessary for it to operate. Contractor shall notify City Administrator within One Business Day of any change in Designated Facilities and must submit to the City Administrator an up-to-date Designated Facilities list annually. 1.34 DISCARDED MATERIALS “Discarded Materials” are a form of Solid Waste and shall be regulated as such. For purposes of this Agreement, material is deemed to have been discarded, without regard to whether it is destined for Recycling or Disposal, and whether or not it has been separated from other Solid Wastes, in all cases where a fee or other compensation, in any form or amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the Generator or Customer in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, Transportation, delivery, and Processing and/or Disposal of the material. Discarded Materials do not include Edible Food that is recovered for human consumption and is not discarded. For the purposes of this Agreement, Discarded Materials include Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, Food Waste, Refuse, and C&D once the materials have been placed in Containers for Collection. 1.35 DISPOSAL “Disposal” or “Disposed” mean the final disposition of any Solid Waste Collected by the Contractor or Residue from Processing activities at a permitted Landfill or other permitted Solid Waste facility. 1.36 DISPOSAL SITE(S) "Disposal Site(s)" means the Solid Waste facility or Facilities utilized for the ultimate Disposal of Solid 7.2.a Packet Pg. 469 ADDENDUM #1 City of Diamond Bar – DRAFT 10 June 12, 2023 Waste Collected by Contractor. 1.37 DIVERT, DIVERSION “Divert” or “Diversion” means to Divert from Disposal facilities or Transformation facilities (including incineration, pyrolysis, distillation, gasification biological conversion) through source reduction, Reuse, salvage, Recycling, and Composting, as provided in Section 41780 of California Public Resources Code as such act may be hereafter amended or superseded provided that Divert or Diversion shall include delivery to Transformation facilities if the overall Diversion achieved by the City is at a level where delivery to such facilities shall be considered Diversion pursuant to the Act. 1.38 DWELLING UNIT “Dwelling Unit” means any individual living unit in a Residential Premises intended for, or capable of being utilized for, Residential living other than a hotel or motel. 1.39 EDIBLE FOOD “Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement. 1.40 ELECTRONIC WASTE, E-WASTE “Electronic Waste” or “E-Waste” means discarded electronic equipment and includes, but is not limited to, stereos, televisions, computers and computer monitors, VCRs, cellular phones, fax machines, household copiers, computer printers, other electronic items with electric plugs that are banned from Landfill Disposal, and other similar items commonly known as “brown goods.” 1.41 ENFORCEMENT ACTION “Enforcement Action” means an action of the City to address non-compliance including, but not limited to, issuing administrative citations, fines, penalties, or using other remedies. 1.42 ENVIRONMENTAL LAW “Environmental Law” means any federal and state statute, county, local and City ordinance, rule, regulation, order, consent decree, judgment or common-law doctrine, and provisions and conditions or permits, licenses and other operating authorizations relating to (i) pollution or protection of the environment, including natural resources, (ii) exposure of Persons, including employees, to Hazardous Materials or other products, raw materials, chemicals or other substances, (iii) protection of the public health or welfare from the effects of by-products, wastes, emissions, discharges or releases of chemical substances from industrial or Commercial activities, or (iv) regulations of the 7.2.a Packet Pg. 470 ADDENDUM #1 City of Diamond Bar – DRAFT 11 June 12, 2023 manufacture, use or introduction into commerce of chemical substances, including, without limitation, their manufacture, formulation, labeling, distribution, Transportation, handling, storage and Disposal. 1.43 EXCLUDED WASTE “Excluded Waste” means Hazardous Substance, Hazardous Waste, Biohazardous or Biomedical Waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that Designated Facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be Disposed of in Class III Landfills or accepted at the Facility by permit conditions, waste that in Contractor’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after implementation of programs for the safe Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. 1.44 FOOD WASTE “Food Waste” means all kitchen and table food scraps, animal or vegetable waste that is generated during or results from the storage, preparation, cooking or handling of food stuffs; discarded compostable paper that is contaminated with Food Waste; fruit waste, grain waste, dairy waste, meat, and fish waste, which has been Source Separated from other Solid Waste, Food Waste is a subset of Organic Materials and excludes Hazardous Waste. Edible Food separated for Food Recovery shall not be considered Food Waste. See Exhibit 4 for accepted and prohibited materials. 1.45 FRANCHISE "Franchise" means the special right granted by City to operate a public utility for Solid Waste Services within the City. 1.46 FRANCHISE FEE “Franchise Fee” means the fee paid by Contractor to City for the right to hold the Franchise for Solid Waste Services granted by this Agreement. 1.47 GRAY CONTAINER “Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray Container Waste or Mixed Waste. 7.2.a Packet Pg. 471 ADDENDUM #1 City of Diamond Bar – DRAFT 12 June 12, 2023 1.48 GREEN CONTAINER “Green Container” has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and Collection of Source Separated Green Container Organic Waste. 1.49 GROSS RECEIPTS “Gross Receipts” means and includes all revenues actually received by Contractor or subsidiaries, parent companies or other affiliates of Contractor from Billings and compensation in any form arising from, or attributable to, the provision of Solid Waste Services by Contractor to its Customers in the City pursuant to this Agreement, without deducting Disposal fees, City Fees, or any other fees or cost of doing business. Gross Receipts does not include any revenue received by Contractor from the sales of Recyclable Materials. 1.50 HAZARDOUS MATERIAL “Hazardous Material” is defined to include any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government. The term “Hazardous Material” includes, without limitation, any material or substance which is: (i) petroleum or oil or gas or any direct or derivate product or byproduct thereof; (ii) defined as a “hazardous waste,” “extremely hazardous waste” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (iii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iv) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Sections 25501(j) and (k) and 25501.1 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (v) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (vi) “used oil” as defined under Section 25250.1 of the California Health and Safety Code; (vii) asbestos; (viii) listed under Chapter 11 of Division 4.5 of Title 22 of the California Code of Regulations, or defined as hazardous or extremely hazardous pursuant to Chapter 10 of Division 4.5 of Title 22 of the California Code of Regulations; (ix) defined as waste or a hazardous substance pursuant to the Porter-Cologne Act, Section 13050 of the California Water Code; (x) designated as a “toxic pollutant” pursuant to the Federal Water Pollution Control Act, 33 U.S.C. Section 1317; (xi) defined as “ hazardous waste” pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. § 6903); (xii) defined as a “hazardous substance” pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 6901); (xiii) defined as “Hazardous Material” pursuant to the Hazardous Materials Transportation Act 29 U.S.C. Section 5101, et seq.: or (xiv) defined as such or regulated by any “Superfund” or “Super lien” law, or any other federal, state or local law, statute, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect; (xv) defined as “medical waste” or “biohazardous waste” under applicable Federal or State law, excluding Home Generated Sharps as defined in Section 1.53. 7.2.a Packet Pg. 472 ADDENDUM #1 City of Diamond Bar – DRAFT 13 June 12, 2023 1.51 HIGH DIVERSION ORGANIC WASTE PROCESSING FACILITY “High Diversion Organic Waste Processing Facility” means a facility that is in compliance with the reporting requirements of 14 CCR § 18815.5(d) and meets or exceeds an annual average Mixed Waste organic content Recovery rate of 50 percent between January 1, 2022 and December 31, 2024, and 75 percent after January 1, 2025, as calculated pursuant to 14 CCR § 18815.5I for Organic Waste received from the “Mixed waste organic collection stream” as defined in 14 CCR § 17402(a)(11.5); or, as otherwise defined in 14 CCR § 18982(a)(33). 1.52 HOLIDAYS OR DESIGNATED HOLIDAYS “Holidays” or “Designated Holidays” shall mean New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. 1.53 HOME GENERATED SHARPS “Home-Generated Sharps” means hypodermic needles, pen needles, syringes, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications derived from a household including Residential Dwelling units. 1.54 HOUSEHOLD HAZARDOUS WASTE (HHW) "Household Hazardous Waste" or “HHW” means material used in residences that may threaten human health or the environment when improperly discarded and usually has one or more of the following characteristics; flammable, toxic, corrosive, and/or reactive. 1.55 LANDFILL “Landfill” means a “Solid Waste Landfill” defined by Public Resources Code Section 40195.1 1.56 MATERIALS RECOVERY FACILITY (MRF) "Materials Recovery Facility" means a permitted Solid Waste facility where Solid Wastes or Recyclable Materials are sorted or separated for the purposes of Recycling, Processing or Composting. 1.57 MIXED WASTE PROCESSING “Mixed Waste Processing” means the separation and sorting of recyclables and other recoverable materials from Refuse at a MRF where commingled loads of Solid Waste are Processed. 1.58 MULTI-FAMILY PREMISES “Multi-Family Premises” means any Residential Premises five (5) or more Dwelling Units (not including hotels or motels), irrespective of whether residence therein is transient, temporary or permanent. which receive Collection services from centralized locations. Multi-Family Premises generally receive Solid Waste Services through the use of shared Bins, but may use Carts. 7.2.a Packet Pg. 473 ADDENDUM #1 City of Diamond Bar – DRAFT 14 June 12, 2023 1.59 ORGANIC WASTE OR GREEN CONTAINER WASTE ‘Organic Waste’ or ‘Organics’ means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, Food Waste, Green Material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18882(a)(46); or that is collected in a green container as defined in 14 CCR 18982(a)(29). Biosolids and digestate are as defined by 14 CCR Section 18982(a). The term is used interchangeably with Green Container Waste. 1.60 ORGANICS MATERIAL PROCESSING FACILITY “Organic Materials Processing Facility” means a permitted Facility where Organic Material is sorted, mulched, or separated for the purposes of Recycling, reuse or composting. 1.61 PERSON “Person” means any individual, firm, limited liability company, partnership, public or private corporation, business trust, join venture, organization, organization, the United States, the State of California, the County of Los Angeles, or any political subdivision, government agency, municipality, and special purpose districts. 1.62 PREMISES “Premises” means any parcel of land, building and/or structure or portion thereof, in the City where Solid Waste is produced, generated or accumulated. 1.63 PROCESS, PROCESSED, OR PROCESSING “Process”, “Processed” or “Processing” means the controlled separation, recovery, volume reduction, conversion, or Recycling of Solid Waste including, but not limited to, organized, manual, automated, or mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise defined in 14 CCR Section 17402(a)(20). 1.64 RATE YEAR "Rate Year" means the period July 1 to June 30, for each year during the Term of this Agreement. 1.65 RECYCLABLES OR BLUE CONTAINER WASTE ‘Recyclable Materials’ or ‘Recyclables’ means non-putrescible and non-hazardous recyclable wastes, including, but not limited to, bottles, cans, metals, plastics, and glass, or as otherwise defined in 14 CCR Section 18982(a)(43); or that is collected in a blue container as defined in 14 CCR 18982(a)(5). The term is used interchangeably with Blue Container Waste or materials. See Exhibit 4 for accepted and prohibited materials. The City and Contractor agree to meet from time to time as needed, and in good faith consider modifications to the list in Exhibit 4 of acceptable Recyclable Material to address 7.2.a Packet Pg. 474 ADDENDUM #1 City of Diamond Bar – DRAFT 15 June 12, 2023 developments in processing technologies, emerging uses for various types of materials, changes in available markets, or other relevant issues. 1.66 RECYCLE, RECYCLING “Recycle” or “Recycling” means the process of Collecting, sorting, cleansing, treating, Processing and reconfiguring materials for the purpose of returning them to the economic mainstream in the form of raw material for new, Reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace. Recycling includes processes deemed to constitute a reduction of Landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or transformation as defined in Public Resources Code Section 40201. 1.67 REFUSE OR GRAY CONTANER WASTE ‘Refuse’ means discarded waste or garbage that may contain nonorganic material, or processed industrial materials or that is collected in a gray container as defined in 14 CCR 18982 (a)(28). The term is used interchangeably with Gray Container Waste. “Refuse” does not include sewage, Construction and Demolition Debris, Recyclable Materials, and/or Organic Materials placed in source- separated Containers for Collection. 1.68 RENEWABLE NATURAL GAS OR RNG “Renewable Natural Gas” or “RNG” means gas derived from Organic Waste that has been Diverted from Landfill Disposal and Processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62). 1.69 RESIDENTIAL "Residential" refers to services performed at and for Residential Premises, which include both single- family and Multi-Family Premises. 1.70 RESIDUAL OR RESIDUE “Residual” or “Residue” means the Solid Waste destined for Disposal, further Transfer/Processing as defined in 14 CCR Section 17402(a)(30) or 14 CCR Section 17402(a)(31), or transformation which remains after Processing has taken place and is calculated in percent as the weight of Residual divided by the total incoming weight of materials. 1.71 ROLL-OFF BOX “Roll-Off Box” means an open or closed-top metal Container, roll-top Container, or closed compactor Container serviced by a roll-off truck and with a Container capacity of 10 cubic yards or more. Roll- Off Boxes are also known as drop boxes or debris boxes. 7.2.a Packet Pg. 475 ADDENDUM #1 City of Diamond Bar – DRAFT 16 June 12, 2023 1.72 SINGLE-FAMILY, SINGLE-FAMILY DWELLING “Single-Family,” or “Single-Family Dwelling,” means, for purposes of this Agreement, notwithstanding any contrary definition in a City of Diamond Bar Municipal Code, any detached or attached house or residence designed or used for occupancy by one (1) family, provided that Collection Service feasibly can be provided to such Premises as an independent unit, and the owner or occupant of such independent unit is billed directly for the Collection Service. “Single-Family,” or “Single-Family Dwelling,” includes Residential units of a duplex, tri-plex, or four-plex Residential structure. 1.73 SENATE BILL 1383 (SB1393) "SB 1383" means the Short-Lived Climate Pollutants Act of 2016 (Chapter 395, Statutes of 2016), as it may be amended, supplemented, superseded, or replaced from time to time. 1.74 SOLID WASTE "Solid Waste" means all Solid Wastes generated by Residential, Commercial, and industrial sources, including Refuse, Recyclable Materials and Organic Materials, and all Solid Waste generated at construction and demolition sites, which are Collected and Transported under the authorization of the City or are self-hauled by residents or contractors. Municipal Solid Waste does not include agricultural crop residues, mining waste and fuel extraction waste, forestry wastes, ash from industrial boilers, furnaces and incinerators or Hazardous Material, any waste which is not permitted to be Disposed of at a Class III Landfill and which fall within the definition of “Nonhazardous Solid Waste” set forth in Title 23, Chapter 15, Section 2523(a) of the California Code of Regulations as amended or designated Class II wastes. Materials shall be deemed “Solid Waste” consistent with the meaning of California Public Resources Code Section 40191, and for purposes of this Agreement shall be regulated as such, whether or not they may be potentially Recyclables, in either of the following instances: (a) the material is mixed or commingled with other types of Solid Waste such that more than 65% of the material consists of Solid Waste rather than Recyclables, or (b) the payment of a fee, charge, or other consideration, in any form or amount, is directly or indirectly solicited or received from the generator by any Person or combination of Persons in exchange for Collection, removal, Transportation, storage, Processing, handling, consulting, Container rental or Disposal services (“fee for service” Recycling), whether or not arranged by or through a subcontractor, broker, agent, consultant, or affiliate of the provider of such service. 1.75 SOLID WASTE SERVICES “Solid Waste Services” means the Collection, Transfer, Transport, Recycling, Processing, and Disposal of Solid Waste. 1.76 STATE “State” means the State of California. 7.2.a Packet Pg. 476 ADDENDUM #1 City of Diamond Bar – DRAFT 17 June 12, 2023 1.77 TRANSFER STATION “Transfer Station” means a Facility that receives Solid Waste from Collection vehicles and transfers the material to larger vehicles for Transport to Landfills and other destinations. Transfer Stations may or may not also include MRFs transferring residual Refuse (Refuse left after the sorting of Recyclable Materials) to Landfills and Recyclable Materials, including Organic Materials and/or Construction and Demolition Debris, to processors, brokers, or end-users. 1.78 TRANSPORT OR TRANSPORTATION “Transport” or “Transportation” means the act of conveying Collected materials from one location to another. 1.79 TRANSFORMATION “Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. “Transformation” does not include composting. 1.80 UNIVERSAL WASTE OR U-WASTE “Universal Waste” or “u-waste” means any of the following waste that are conditionally exempt from classification as hazardous wastes pursuant to Title 22 of the California Code of Regulations (22 CCR), § 66261.9: (i) batteries as described in 22 CCR § 66273.2; (ii) thermostats as described in 22 CCR § 66273.4; (iii) lamps as described in 22 CCR § 66273.5; and (iv) cathode tube materials as described in 22 CCR § 66273.6; (v) Electronic Waste or E-waste as defined in Section 1.40. 1.81 WORK DAY(S) “Work Days” or “Working Days” means days on which the CONTRACTOR is required to provide regularly scheduled Collection services under this Agreement. 1.82 WASTE GENERATOR "Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produced Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. 1.83 YARD WASTE OR GREEN WASTE “Yard Waste” or “Green Waste” means leaves, grass clippings, brush, branches, and other forms of Organics Materials generated from landscapes or gardens, which have been Source-Separated from other Solid Waste. Yard Waste is a subset of Organics Materials and excludes Hazardous Materials. See Exhibit 4 for accepted and prohibited materials. 7.2.a Packet Pg. 477 ADDENDUM #1 City of Diamond Bar – DRAFT 18 June 12, 2023 ARTICLE 2: GRANT AND ACCEPTANCE OF FRANCHISE 2.1 GRANT AND ACCEPTANCE OF FRANCHISE, INDEMNITY OF AWARD Subject to the terms and conditions of this Agreement (including but not limited to the exclusions set forth in Section 2.9 hereof) and applicable State laws, and to the rights of State, county and school district facilities to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term hereof, the exclusive Franchise, right and privilege to provide Solid Waste Services as defined in this Agreement within the boundaries of the City (the “Franchise”). Contractor agrees to and shall timely take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense. To the maximum extent permitted by law, Contractor shall defend, indemnify, protect and hold harmless, the City, its officers, agents and employees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement, including but not limited to any action brought by referendum or under Proposition 218 (Calif. Const. Art. XIIID) to challenge the City’s entry into this Agreement or the setting of Solid Waste rates as set forth in this Agreement. The City shall promptly notify Contractor of any such claim, action, or proceeding. The City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a joint defense; provided that the City shall be entitled to select legal counsel of its choice to conduct the defense if an agreement cannot be reached. Contractor’s obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel. Contractor hereby accepts the Franchise on the terms and conditions set forth in this Agreement. 2.2 EXCLUSIVE NATURE OF FRANCHISE During the term of this Agreement, except as otherwise provided in Section 2.9 below, or as may otherwise be provided by federal or state law, the rights granted to the Contractor under this Agreement shall be exclusive to the Contractor. The City will not let any contract to, or enter into any agreement with, any other Person for the performance of the services herein required to be performed by the Contractor. To the extent permitted under state or federal law, the City shall protect the Contractor’s exclusive rights by proper ordinances, and may take action to enforce those ordinances upon request and at the City’s sole and absolute discretion. Should the City take administrative, law enforcement, or other legal action against any Person that infringes on the Contractor’s exclusive rights, the Contractor shall reimburse the City for its reasonable administrative, law enforcement, or other legal costs related to any such action. To the extent permitted under state or federal law, nothing herein shall preclude Contractor from taking such legal action against third parties as it deems appropriate 7.2.a Packet Pg. 478 ADDENDUM #1 City of Diamond Bar – DRAFT 19 June 12, 2023 to protect the exclusive nature of its Franchise. 2.3 EFFECTIVE DATE The effective date of this Agreement shall be thirty (30) days after the date which the City Council approves this Agreement. 2.4 TERM OF AGREEMENT The term of this Agreement shall be ten (10) years, commencing beginning September 1, 2025, and terminating on August 31, 2035, subject to extension as provided herein. Notwithstanding the foregoing, the unexcused failure or refusal of Contractor to perform any material term, covenant, obligation, or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained herein. 2.5 CITY’S OPTION TO EXTEND TERM City shall have the sole option to extend the Term for up to twenty-four (24) months following expiration of the Term under Section 2.4. The City may, upon at least ninety days (90-days) advance written notice to the Contractor prior to the expiration of the Term, exercise this extension option. If City provides this extension notice, this Agreement will automatically renew up to a maximum of twenty-four (24) months. This extension period shall terminate, upon the earlier of: (i) the expiration of the aforementioned twenty- four (24) months, or (ii) ninety (90) days following the date upon which City gives Contractor written notice of final termination. 2.6 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated hereby, all of which shall be true as of the date of this Agreement and as of the effective date: A. Contractor is validly existing as a corporation under the laws of the State of California. B. Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder: (1) conflicts with, violates or results in a breach of any Applicable Law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, decree, agreement (including, without limitation, the certificate of incorporation of Contractor) or instrument to which Contractor is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, agreement or instrument; or (3) will result in the creation or imposition of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. C. There is no action, suit or other proceeding as of the date of this Agreement, at law or in equity, or to the best of Contractor’s knowledge, any investigation, before or by any court or 7.2.a Packet Pg. 479 ADDENDUM #1 City of Diamond Bar – DRAFT 20 June 12, 2023 governmental authority, pending or threatened against Contractor or ________________ [parent/guaranteeing company] which is likely to result in an unfavorable decision, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor or ________________ [parent/guaranteeing company] in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the financial condition of Contractor or ________________ [parent/guaranteeing company]. D. Contractor has no knowledge of any Applicable Law in effect as of the date of this Agreement that would prohibit the performance by Contractor of this Agreement and the transactions contemplated hereby. E. Contractor has made an independent investigation, satisfactory to it, of the conditions and circumstances surrounding this Agreement and the work to be performed by it, and is satisfied that those conditions and circumstances will not impair its ability to perform the work and provide the Collection services required by this Agreement. F. The information supplied by Contractor in all submittals made in connection with negotiation and execution of this Agreement, including all materials in Exhibits of this Agreement, and all representations and warranties made by Contractor throughout this Agreement are true, accurate, correct and complete in all material respects on and as of the effective date of this Agreement. Note that inaccuracies in Contractor’s Proposal, such as material omissions of past and pending litigation as requested under the Request for Proposals through which this Agreement was procured, are grounds for termination of this Agreement. G. Contractor’s representative, designated in Section 14.3 shall have authority in all daily operational matters related to this Agreement. City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not within the scope of this Agreement. 2.7 CONDITIONS TO EFFECTIVENESS OF AGREEMENT The obligation of City to permit this Agreement to become effective and to perform its undertakings provided for in this Agreement is subject to the satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by City. A. Accuracy of Representations. Representations and warranties made by Contractor throughout this Agreement are accurate, true and correct on and as of the effective date of this Agreement. B. Absence of Litigation. There is no litigation pending in any court challenging the award of this Franchise to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. C. Furnishing of Insurance, Bond, and Letter of Credit. Contractor shall have furnished evidence of the insurance, bonds, deposit and letter of credit as required by Article 11, and shall comply with all ongoing requirements relating thereto. 7.2.a Packet Pg. 480 ADDENDUM #1 City of Diamond Bar – DRAFT 21 June 12, 2023 D. Effectiveness of City Council Action. City’s Resolution approving this Agreement shall have become effective pursuant to California law. 2.8 DELEGATION OF AUTHORITY The administration of this Agreement by City shall be under the supervision and direction of the City Manager’s office and the actions specified in this Agreement, unless otherwise stated, shall be taken by the Contract Administrator, or his or her designee. 2.9 LIMITATIONS TO THE SCOPE Notwithstanding any provision to the contrary contained in this Agreement, the exclusive franchise, right and privilege to provide Solid Waste Services at Premises within City granted to Contractor by this Agreement specifically excludes the following services, which services may be provided by Persons other than Contractor and which may be subject of other permits, licenses, franchises or agreements issued or entered by City: A. The sale or donation of Recyclable Materials or Organics Materials by the Generator to any person or entity other than Contractor ; provided, however, to the extent permitted by law, if the Generator is required to pay monetary or non-monetary consideration for the Collection, Transport, Transfer, or Processing of Recyclable Materials or Organics Materials, the fact that the Generator receives a reduction of discount in price (or in other terms of the consideration the Generator is required to pay) shall not be considered a sale or donation and shall not be exempt. B. Solid Waste that is removed from any Premises by the Generator, by means of “self-hauling” (as described in the City of Diamond Bar Municipal Code), and Transported personally by such Generator (or by his or her full-time employees, but not a subcontractor) to a Processing or Disposal Facility in a manner consistent with all applicable laws and regulations. C. Yard Waste removed from the Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor rather than as a hauling service. D. The Collection, Transfer, Transport, Recycling, Processing, and Disposal of animal waste remains from slaughterhouse or butcher shops for use as tallow. E. The Collection, Transfer, Transport, Recycling, Processing, and Disposal of by-products of sewage treatment, including sludge ash, grit and screenings. F. The Collection, Transfer, Transport, Recycling, Processing, and Disposal of Hazardous Substances, Hazardous Waste, and radioactive waste regardless of its source. G. Construction and Demolition Debris which is removed by a duly licensed construction or demolition company or as part of a total service offered by said licensed company or by the City, where the licensed company utilizes its own equipment in compliance with Construction and Demolition Debris requirements of the City of Diamond Bar Municipal Code. 7.2.a Packet Pg. 481 ADDENDUM #1 City of Diamond Bar – DRAFT 22 June 12, 2023 H. The Collection, Transfer, Transport, Recycling, Processing, and Disposal of Solid Waste by the City through City officers or employees in the normal course of their employment. I. Solid Waste Services for governmental agencies, other than the City, which may have facilities in the City, but over which the City has no jurisdiction in connection with the regulation of Solid Waste. J. Solid Waste Services for Solid Waste originating outside the City from hauling such Solid Waste over City streets, provided such collectors comply with any governing laws and/or ordinances. K. Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act (California Public Resources Code, Section 14500, et seq.). L. Edible Food which is collected from a Generator by other person(s), such as a person from a Food Recovery Organization or Food Recovery Service, for the purposes of Food Recovery, or which is Transported by the Generator to another person(s), such as a person from a Food Recovery Organization, for the purposes of Food Recovery, regardless of whether the Generator donates, sells, or pays a fee to the other person(s) to collect or receive the Edible Food from the Generator. M. Food Scraps that are separated by the Generator and used by the Generator or distributed to other person(s) for lawful use as animal feed, in accordance with 14 CCR Section 18983.1(b)(7). Food Scraps intended for animal feed may be Self-Hauled by Generator or hauled by another party. N. Contractor’s right to Collect and/or Dispose of Solid Waste shall not be exclusive in the event of failure to Collect under Article 12 of this Agreement during which Contractor fails to maintain substantially complete regular Collection services pursuant to this Agreement and the Collection schedules then in effect, for any reason, including a strike by Contractor’s employees or similar labor dispute. The City may provide for Collection and/or Disposal services from persons other than Contractor during such periods, including Contractor’s Bin and/or Roll-Off Box Service Customers. Contractor acknowledges and agrees that City may permit other Persons besides Contractor to Collect any or all types of the Solid Waste listed in this Section 2.9 as exempt from Contractor’s Franchise, including Recyclable Materials, without seeking or obtaining approval of Contractor under this Agreement. This grant to Contractor of an exclusive Franchise, right and privilege to Collect, Transport, or Process and Dispose of Solid Waste shall be interpreted to be consistent with all Applicable Laws, now and during the term of the Franchise, and the scope of this exclusive Franchise shall be limited by current and developing Applicable Laws with regard to Solid Waste handling, exclusive Franchise, control of Recyclable Materials, Solid Waste flow control, and related doctrines. In the event that future interpretations of current law, enactment or developing legal trends limit the ability of City to lawfully provide for the scope of Franchise services as specifically set forth herein, Contractor agrees that the scope of the Franchise will be limited to those services and materials which may be lawfully provided for under this Agreement, and that City shall not be responsible for any lost profits claimed by Contractor to arise out of further limitations of the scope of the 7.2.a Packet Pg. 482 ADDENDUM #1 City of Diamond Bar – DRAFT 23 June 12, 2023 Agreement set forth herein. In such an event, it shall be the responsibility of Contractor to minimize the financial impact to other services being provided as much as possible. 2.10 CITY’S RIGHT TO DIRECT CHANGES 2.10.1 GENERAL City may direct Contractor to perform additional services (including new Diversion programs, etc.) or modify the manner in which it performs existing services or bills for services. Pilot programs and innovative services which may entail new Collection methods, and different kinds of services and/or new requirements for Generators are included among the kinds of changes which City may direct. Contractor acknowledges that State law may increase the Diversion requirement during the term of this Agreement and Contractor agrees to propose services to meet such Diversion requirements. Contractor shall be entitled to an adjustment in its Contractor Compensation for providing such additional or modified services, if Contractor demonstrates that its cost of service would increase, as set forth in Sections 2.10.2 and 2.10.3. City may utilize cost components included in the Contractor’s Proposal in calculating equitable rate adjustments. 2.10.2 NEW DIVERSION PROGRAMS Contractor shall present, within sixty (60) days of a request to do so by City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: x Collection methodology to be employed (equipment, staffing, etc.). x Equipment to be utilized (vehicle number, types, capacity, age, etc.). x Labor requirements (number of employees by classification). x Type(s) of Containers to be utilized. x Type(s) of material to be Collected. x Provision for program publicity/education/marketing. x Projection of the annual financial results of the program’s operations in an operating statement format including documentation of the key assumptions underlying the projections and the support for those assumptions. x Any other information reasonably requested by the Executive Director. 2.10.3 CITY’S RIGHT TO ACQUIRE SERVICES At any time during the Term of this Agreement, City may permit other Persons besides Contractor to provide additional Solid Waste Services not otherwise contemplated under this Agreement. If pursuant to Sections 2.10.1 and 2.10.2, Contractor and City cannot agree on terms and conditions of 7.2.a Packet Pg. 483 ADDENDUM #1 City of Diamond Bar – DRAFT 24 June 12, 2023 such services within ninety (90) days from the date when City first requests a proposal from Contractor to perform such services, Contractor acknowledges and agrees that City may permit Persons other than Contractor to provide such services, which shall be considered exempt from the exclusivity provisions of Section 2.9. 2.11 OWNERSHIP OF SOLID WASTE AND CITY’S RIGHT TO DIRECT SOLID WASTE Once Solid Waste is placed in Containers and properly placed at the designated Collection location, ownership and the right to possession shall transfer directly from the Waste Generator to Contractor by operation of this Agreement. Subject to Contractor’s objective to meet the Source Reduction and Recycling goals which apply to City and City’s right to direct Contractor to Process and Dispose of Solid Waste at a particular licensed Solid Waste facility or to Dispose of Solid Waste at a particular licensed Disposal Site, if and only if City exercises such right by providing specific written direction to Contractor, Contractor is hereby granted the right to retain, Recycle, Process, Dispose of, and otherwise use such Solid Waste, or any part thereof, in any lawful fashion or for any lawful purpose desired by Contractor; this does not impact Contractor’s right to retain Recyclable Materials revenue under 5.3. Subject to the provisions of this Agreement, Contractor shall have the right to retain any benefit resulting from its right to retain, Recycle, Process, Dispose of, or reuse the Solid Waste which it Collects. Solid Waste which is delivered to a Disposal Site or sites (whether Landfilll, Transformation Facility, Transfer Station, Organic Materials Processing Facility or Material Recovery Facility) shall become the property of the Owner or operator of the Disposal Site(s) once deposited there by Contractor. City may obtain ownership or possession of Solid Waste placed for Collection upon written notice of its intent to do so, however, nothing in this Agreement shall be construed as giving rise to any inference that City has such ownership or possession unless such written notice has been given to Contractor. City has the option to provide written direction to the Contractor specifying a Facility for handling, Processing, and Disposal of Solid Waste. If City directs Contractor to a Facility other than a Designated Facility as listed in Exhibit 3 of this Agreement, or otherwise requested by Contractor, and in doing so it adversely affects the ability of the Contractor to meet either or both of the requirements of Section 11.1.3 and Section 5.2, then in this event the City and Contractor shall meet and confer and mutually agree on revised obligations for Sections 11.1.3 and 5.2. The foregoing notwithstanding, in the event City directs Contractor to a Facility other than a Facility listed in this Agreement or otherwise requested by Contractor, then Contractor shall be entitled to a rate adjustment based upon any increase or decrease in costs associated with handling, Processing, Disposal and Transportation. 2.12 CONTRACTOR’S CORPORATE STATUS Contractor represents and warrants that it is duly organized, validly existing and in good standing under Applicable Laws. It is qualified to transact business in the State of California and has the power to own its properties and to carry on its business as now owned and operated and as required by this Agreement. 7.2.a Packet Pg. 484 ADDENDUM #1 City of Diamond Bar – DRAFT 25 June 12, 2023 2.13 CONTRACTOR CORPORATE AUTHORIZATION Contractor represents and warrants that it has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of Contractor (or the shareholders, if necessary) have taken all actions required by Applicable Law, its articles of incorporation, and its bylaws or otherwise to authorize the execution of this Agreement. The Persons signing this Agreement on behalf of Contractor have authority to do so. Contractor shall authorize one employee for the City as a single point of contact for issues arising under this Agreement. City may accept that this employee’s actions are taken on behalf of and with the full approval of the Contractor. 2.14 ANNEXATIONS This Agreement extends to any territory annexed to the City during the term of this Agreement except to the extent that Collection by Contractor within that annexed territory would violate the provisions of Public Resources Code Section 49520. In such event, this Agreement shall become effective as to such area at the earliest possible date permitted by law, and City agrees that it shall cooperate with Contractor to fulfill any requirement necessary for Contractor to serve the annexed area consistent with this paragraph. 2.15 PERMITS AND LICENSES Contractor shall acquire and maintain all necessary permits and licenses for the Collecting, Transporting, Recycling, Processing, Disposing, and storing of Solid Waste as required under this Agreement. Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 13.3. Contractor must follow requirements of the City of Diamond Bar Municipal Code, including, but not limited to, obtaining a City of Diamond Bar business license. ARTICLE 3: SCOPE OF COLLECTION SERVICES 3.1 SERVICES TO BE PROVIDED – GENERAL The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not, unless excused in accordance with Article 13.8. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that Customers within City are provided reliable, courteous and high- 7.2.a Packet Pg. 485 ADDENDUM #1 City of Diamond Bar – DRAFT 26 June 12, 2023 quality Solid Waste Services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this section, whether such other aspects are enumerated elsewhere in the Agreement or not. 3.2 SINGLE-FAMILY DWELLING COLLECTION SERVICE Contractor shall provide a three-Container Collection program for the separate Collection of Refuse, source separated Recyclable Materials, and source-separated Organic Waste using Containers that comply with the requirements of Section 4.3. Single Family Dwelling includes multi-family dwellings of four or less units. Recyclable Materials and Organic Waste acceptable for collection are listed in Exhibit 4. Collection frequency shall be not less than once per week from Carts placed at a suitable location, which is typically on the curb, but may be in the street against the curb or in an alley. If a Customer and Contractor cannot agree upon the designated collection location, City shall make the final determination of the designated collection location. Recycling Carts and Organics Carts shall be collected on the same day as Refuse carts. 3.2.1 CART SIZES Contractor shall provide at minimum one 65-Gallon Cart for Refuse, one 65-Gallon Cart for Recyclables, and one 65-Gallon Cart for Organics. At Customers request, Contractor shall provide as a substitute 35 or 96-gallon Carts for Refuse Collection and / or 96-gallon for Recyclables or Organics Collection. The rate for the Collection of all three Carts shall be based on the size of the Refuse Cart. Customers may request and Contractor shall provide a second Recyclables and or Organics Cart at no additional charge. Additional Carts beyond one (1) for Refuse, two (2) for Recycling, and two (2) for Organics Collection may be requested at an additional monthly fee. 3.2.2 CART COLOR Carts shall comply with CalRecycle color and labeling requirements under SB 1383. Contractor shall provide blue Carts for the Collection of Recyclable Materials, green Carts for the Collection of Organic Waste and gray or black Carts for the Collection of Refuse. Alternatively, Contactor may provide Carts with blue, green, and gray or black lids to meet the Container color requirement. 3.2.3 REFUSE CART OVERAGE Residential Customers using Carts are entitled to two annual pickups per calendar year and an end- of-year pickup of material that does not fit in the Refuse Cart(s) at no additional cost, as provided in this Section 3.2.3. A pickup shall consist of up to the equivalent of three (3) large bags, boxes or barrels of Refuse and placement of more than that amount at any one time shall constitute two pickups. In addition to the two (2) free pickups, Contractor shall Collect all additional Refuse placed out for Collection in the Customer’s own Containers (bags, boxes, barrels, etc.) at no additional charge for two weeks beginning each December 26. This service is limited to Refuse that could 7.2.a Packet Pg. 486 ADDENDUM #1 City of Diamond Bar – DRAFT 27 June 12, 2023 otherwise be placed in the Refuse Cart, and not Bulky Items which are Collected in accordance with Section 1.12 and 3.6. Contractor shall Collect, and Customers may be charged an extra fee per pickup (in accordance with the approved rate schedule for overage pickups) of, all Refuse put out for Collection that does not fit in the Refuse Cart(s) above and beyond the free pickups described above. Customer shall be instructed to call in both free and additional overages. However, if not called in, Contractor shall Collect and record pickup per Section 4.1.6. 3.2.4 BACKYARD SERVICE Backyard service means the Contractor removes all Collection Carts, Green Waste bundles and Refuse Cart Overages per Section 3.2.3 from a Cart Customer’s designated Collection location other than curbside, such as backyard, side yard, or drive, for Collection, and returns Carts and other containers when Collection is complete. Contractor may charge customers requesting backyard service in accordance with the approved rate schedule, unless the Customer falls under the exception described in Section 3.2.5 below. 3.2.5 BACKYARD SERVICE FOR DISABLED PEOPLE Contractor shall provide disabled Customers with backyard service at no additional charge. Contractor will remove Refuse, Recyclable and Organic Waste Containers, Green Waste bundles and Refuse Cart Overages per Section 3.2.3 from Customer’s storage area, place them out for Collection, and return Containers to Customer’s storage area after Collection, ensuring that all doors or gates are closed securely. In order to qualify as disabled under this section, Customers must have been issued handicap placard from the Department of Motor Vehicles or otherwise obtain approval to receive such service from the City, following a verification site visit by Contractor’s route supervisor. Additionally, walk-out service need not be provided if an able-bodied adult resides with the disabled Customer. 3.2.6 DOOR-TO-DOOR HHW COLLECTION Contractor shall provide Residential Customers with door-to-door call-in HHW Collection service. Each Residential Dwelling Unit shall be entitled to two door-to-door Residential HHW pickups per calendar year at no additional charge. Items to be Collected include, at a minimum: Syringes and other Home Generated Sharps; paint and paint products including but not limited to thinners, glues, caulking, stains, wood preservatives and strippers; universal waste, household cleaners; automotive wastes; swimming pool chemicals; garden chemicals; fluorescent tubes; thermometers; and household batteries; and Electronic Waste. Contractor may direct Residential Customers to use the Bulky Item pickup option for televisions, computers and other HHW that may safely and legally be Collected as Bulky Items as described in Section 3.6. 7.2.a Packet Pg. 487 ADDENDUM #1 City of Diamond Bar – DRAFT 28 June 12, 2023 3.2.7 ANNUAL HOUSEHOLD HAZARDOUS WASTE EVENT Contractor will assist the City in increasing awareness of Household Hazardous Waste events by promoting the Los Angeles County Household Hazardous Waste collections held in Diamond Bar. Promotional activities will include: posting on Contractor’s website, inclusion in the Annual Brochures/ Mailings mailed to each Residential Customer, billing inserts, social media targeted outreach, and press releases to local news outlets. 3.2.8 CURBSIDE USED OIL AND OIL FILTER COLLECTION Contractor shall Collect used oil placed curbside beside Refuse Collection Cart by Customers on the regular Collection day at no additional charge. Contractor shall educate Customers to place used oil in clean containers and used oil filters in clean zip -lock bags. 3.2.9 HOME GENERATED SHARPS MAIL BACK PROGRAM Contractor will implement a program for Collection and safe processing of Home Generated Sharps generated by its Residential Customers, through a mail-based program and/or a drop-off program. Residential Customers requesting this service may apply to Contractor to participate in this program, and Sharps containers will be delivered directly to them at no cost to the Customer or City. Through a drop-off program, Contractor will make arrangements with pharmacies and/ or other locations throughout the City for Residential Customers to drop-off Sharps at no cost to the Customer or City. 3.2.10 MEDICATION TAKEBACK PROGRAM Contractor will assist the City in increasing awareness of medication takeback programs provided by the Los Angeles County Sheriff’s station and any third-party events held in Diamond Bar. Promotional activities will include: posting on Contactor’s website, inclusion in the Annual Brochures/ Mailings mailed to each Residential Customer, billing inserts, social media targeted outreach, and press releases to local news outlets. 3.2.11 FREECYCLE.COM Contractor will publicize to Residential Customers its free materials exchange/ gifting program, known as FreeCycle.org, and shall promote FreeCycle.org Contractor’ s website, and the Annual Brochure/Mailings described in Section 6.3.1.D. 3.2.12 ANNUAL HOLIDAY TREE COLLECTION Contractor shall provide holiday tree Collection from December 26 through the second Sunday in January. During this period, all holiday trees placed out for Collection by Residential Customers shall be Collected by Contractor. After this period, trees will be Collected as Bulky Items under Section 3.6. Trees up to seven (7) feet in length will be Collected and Diverted without Customers needing to cut 7.2.a Packet Pg. 488 ADDENDUM #1 City of Diamond Bar – DRAFT 29 June 12, 2023 them. Contractor may request that Customers with larger trees cut the trees to pieces no longer than seven (7) feet. Contractor will Divert all holiday trees from Landfill Disposal. 3.2.13 MULCH GIVE-A-WAY [TO BE UPDATED BASED ON PROPOSALS] Contractor shall distribute free mulch to Residential Customers. Contractor shall distribute coupons through quarterly Billings entitling Residential Customers to receive two bags per event at two community events per year to be identified by City. 3.3 COMMERCIAL AND MULTI-FAMILY COLLECTION SERVICES Contractor shall provide a three-Container Collection program for the separate Collection of Refuse, source separated Recyclable Materials, and source-separated Organic Waste using Containers that comply with the requirements of Section 4.3. Contractor shall provide a program sufficient to enable City and Customers to meet or exceed the requirements of SB 1383 as of the start of Collection services under this Agreement. Commercial Premises includes multi-family dwellings of five or more units. Recyclable Materials and Organic Waste acceptable for collection are listed in Exhibit 4. Collection frequency shall be at least once per week and more frequently if required to the waste generated at the Premises where the Containers are located. To resolve a dispute between Contractor and Customers, or if the City has health or safety concerns, City shall make final determination as to the number and size of Containers, frequency of Collection to be provided to Customers. Special consideration shall be given when determining the pickup areas to ensure that the flow of traffic is not impeded. 3.3.1 BIN SIZES Contractor shall provide 1, 1.5, 2, 3, 4 and 6 cubic yard Bins upon request. Contractor will service Bins equipped with compaction devices (known as compactors) that attach to the Bins if requested by Customer. The provision, sale, or lease of the compaction device itself is outside this Agreement. Contractor is not required to provide the compaction device. 3.3.2 COMMERCIAL AND MULTI-FAMILY PREMISES CART SERVICE Contractor shall offer Collection in Carts to Customers at Commercial Premises and Multi-Family Premises of five units or more that do not have space for, or do not generate enough waste to require the use of Bins for Collection. If Contractor and Customer have a disagreement as to whether Cart service is appropriate, or if City determines that Collection in Carts causes health and safety or other concerns, City shall make the final determination as to whether Collection in Carts may occur. 7.2.a Packet Pg. 489 ADDENDUM #1 City of Diamond Bar – DRAFT 30 June 12, 2023 3.3.3 CONTAINER COLOR Bins and Carts shall comply with CalRecycle color and labeling requirements under SB 1383. Contractor shall provide blue Containers for the Collection of Recyclable Materials, green Containers for the Collection of Organic Waste and gray or black Containers for the Collection of Refuse. Alternatively, Contactor may provide Containers with blue, green, and gray or black lids to meet the Container color requirement. 3.3.4 SITE VISITS, EDUCATION AND OUTREACH – COMMERCIAL RECYCLING AND ORGANICS [THIS SECTION SUBJECT MODIFICATION BASED ON PROPOSAL] Contractor will promote Commercial Recycling and Organics programs and assist the City in providing reports on Customers’ participation. Contractor shall conduct the planned tasks, and procedures contained in Exhibit 5 “AB 341, AB 1826, and SB 1383 Compliance Plan.” Annually, a Contractor representative will contact, via in-person meetings, all Multi-Family and Commercial Customers not subscribing to Recycling or Organics Collection service required under applicable CalRecycle requirements. The Contractor representative shall assist customers with selecting appropriate Containers and Container sizing, identifying acceptable Recyclables and Organics for Collection, and attempting to resolve any logistical detriments to providing Recyclables and Organics Collection service. Contractor shall provide a written proposal to each AB 341 and AB1826/SB 1383 non-compliant Commercial Customer annually. The proposal shall provide pricing for implementing Recycling and Organics service and reducing, or ‘right-sizing’, Refuse service to account for materials Diverted through the Contractor-provided programs; a proposed start date for the implementation of new Recycling services; a description of the requirements of AB 341 and AB 1826/SB 1383 any relevant City ordinances; a plan for training staff and/or residents; and any other components as directed by the City. A proposal template shall be approved by the City prior to initiation of services under this Agreement. Electronic copies of all service proposals from site visits that have been submitted to a Customer shall be provided to the City in an electronic storage format acceptable to the City, such as a cloud-based file sharing system that can be accessed by the City or its representatives. If a Customer rejects the proposal from the Contractor or does not provide a response within 30 days of the Contractor submitting the proposal, and, after at least three documented attempts by the Contractor to follow-up with the Customer, the Customer continues to be non-responsive, the Contractor may refer the Customer to the City for Enforcement Action through any future ordinances that may be implemented by the City. Such a referral to the City by the Contractor for non-compliant accounts must include a written summary and timeline of the actions taken by the Contractor to implement an AB 341 and AB 1826/SB 1383-compliant program; a copy of the written proposal submitted to the Customer by the Contractor; and any written correspondence from the Customer to the Contractor. If, after the City begins enforcement proceedings against the Customer, the Customer agrees to comply and implement an AB 341 and AB 1826/SB 1383-compliant program, the 7.2.a Packet Pg. 490 ADDENDUM #1 City of Diamond Bar – DRAFT 31 June 12, 2023 City will notify the Contractor of the Customer’s willingness to comply and the Contractor will coordinate with the Customer to implement an AB 341 and AB 1826/SB 1383-compliant program. Contractor will incorporate education regarding Recyclables and Organics Collection and the State requirements into materials produced under Section 6.3 and will develop its own Recycling and Organics-specific instructional materials for use in educating participating Customers. All Organics Recycling participants shall receive ongoing, on-site training from Contractor for management, kitchen staff, service employees, janitors, etc. Annually, Contractor will create and distribute a letter to all Customers that are enrolled in the Contractor’s Organics Recycling program to offer re-training services, printed collateral such as signage and posters, and general technical assistance. Additional materials may include instructional posters, brochures, educational presentations, bin signage, enclosure signage, stickers to be attached to internal recycling receptacles, or other formats as mutually agreed to between City and Contractor. All outreach materials must be submitted for review and approval by City prior to distribution. Contractor shall provide a report, on City-approved forms, to the City noting the time, Customer contact, name of Contractor’s staff that contacted the Customer, and result of each meeting and, if the Customer will not agree to a meeting, provide the time of contact, Customer contact name and number, and reason for not accepting a meeting. Reports will be updated on a quarterly basis and submitted with Contractor quarterly reports to the City. Contractor will report all Customers that have service levels within the thresholds of AB 341 on reporting forms provided by the City on a quarterly basis. The report will document whether the Customer receives Recycling service from the Contractor, self-recycles, or receives Recycling from a third party. Any internal Recycling programs or third-party recycling programs that the Contractor encounters while conducting Customer site visits shall be documented using a City-approved electronic reporting form and provided in an electronic format such as a cloud-based file-sharing system that can be accessed by the City or its representatives. 3.3.5 PROCESSING OF MIXED WASTE Contractor shall Process mixed Solid Waste at a Material Recovery Facility for those Commercial Customers that do not subscribe to a Source-Separated Recycling program, or otherwise participate in a qualifying Recycling program in accordance with AB 341. 3.3.6 SCOUT SERVICE Upon request, Contractor shall provide scout service, whereby Contractor will access Containers using a small vehicle either to move Containers to street or other public right-of-way for Collection, or Collecting Solid Waste directly from Container storage location. Under no circumstance shall Containers remain in the public right-of-way or outside of Container storage location for a period exceeding two (2) hours. In the event of a dispute between Contractor and Customer as to whether scout service will be used, Contractor Administrator will make the final determination. 7.2.a Packet Pg. 491 ADDENDUM #1 City of Diamond Bar – DRAFT 32 June 12, 2023 Contractor is responsible for verifying that an encroachment permit has been obtained from the City prior to placing a Container in the public right-of-way. If the Customer has not obtained an encroachment permit, the Contractor shall inform the Customer that the Container shall not be placed in the public right-of-way until the Customer provides Contractor with verification of an encroachment permit, instructing the Customer as to how to obtain the permit. A copy of the encroachment permit shall be affixed to the Container. 3.3.7 BIN PUSHOUT SERVICE Contractor may not charge a fee for pushing or rolling Bins to point of Collection. 3.3.8 LOCKING BINS Contractor shall provide locking Bin Service (providing the hasp and lock and servicing the lock) to Customers that request such service in accordance with the approved rate schedule, based upon a monthly fee per locking Bin. 3.3.9 REDELIVERY/RETURN TRIP FEE Contractor may charge a fee, per the approved rate schedule, in the event that Contractor arrives on time for a scheduled Collection of Bins or Roll-Off Boxes, is impeded from Collection due to Container being blocked or otherwise unable to be Collected due to issues within the Customer’ s control, and Contractor must return for Collection prior to the Customers next scheduled Collection. Charge may be assessed for the trip, not per Bin, in the event of a Customer with multiple Bins. 3.4 ROLL-OFF BOX SERVICE Contractor shall provide permanent and temporary Roll-Off Box Collection service upon request. When accepting an order for Roll-Off Box service, it shall be Contractor’s duty to assist Customer with arranging service that maximizes the Diversion of Solid Waste from Landfill Disposal. Contractor must deliver a temporary Roll-Off Box to a Customer within forty-eight hours of request (excluding Saturday, Sunday, and Designated Holidays). Contractor shall confirm that Customer has obtained an encroachment permit from the City prior to Contractor placing a Container in the public right-of-way. The provision, sale, or lease of compactor Roll-Off Boxes, which are enclosed Containers attached to a compaction devise, is not included in this Agreement. Providing service to such compactor Roll-Off Boxes is included. Rates shall be charged at a set rate for the service component (per pull) plus the per-ton charge (dump) based on actual tonnage Collected. Contractor may charge a fee in the event a scheduled Roll-Off Box Collection is impeded from Collection due to Container being blocked or otherwise 7.2.a Packet Pg. 492 ADDENDUM #1 City of Diamond Bar – DRAFT 33 June 12, 2023 unable to be Collected and Contractor must return for Collection. There will be no charges other than the specific charges identified in the approved rate schedule. Roll-Off Boxes shall comply with SB 1383 color and labeling requirements. 3.5 TEMPORARY BIN SERVICE Contractor shall provide temporary Bin Service to Customers upon request. Contractor must deliver a temporary Bin to a Customer within forty-eight (48) hours of request (excluding Saturday, Sunday, and Designated Holidays). Contractor shall confirm that Customer has obtained an encroachment permit from the City prior to Contractor placing a Container in the public right-of-way. There will be no charges other than the specific charges identified in the approved rate schedule. 3.6 ON-CALL BULKY ITEM PICKUP Contractor shall provide Bulky Item pickup service to all Residential Customers. Each Residential Dwelling Unit shall be entitled to four Bulky Item pickups per calendar year at no additional charge. Customers may put out up to four (4) Bulky Items at each pickup. Contractor may instruct Customers to provide Contractor with a minimum of one business days’ notice for the items, which shall be Collected on the Customer’s regular Collection day. Contractor shall Collect all Bulky Items as defined in Section 1.12 including items referred to as Electronic Waste or “E-waste.” The following provisions shall apply to this program: 1. No single item that cannot be handled by two workers will be accepted. 2. The following items will not be picked up: Hazardous Substances, Hazardous Waste, including waste oil or anti-freeze, with the exception of Bulky Items per Section 1.12 (including without limitation, universal wastes such as fluorescent bulbs, household batteries, and televisions, monitors and other items commonly referred to as “e-waste” that will be Collected by and Disposed of by Contractor in accordance with this section as well as Sections 3.6 and 5.2.5.) 3. Contractor shall record by class and weight (in tons) the Solid Waste Collected from Bulky Item pickups. Contractor shall record the kinds and weights (in tons) of this Solid Waste that is Diverted from Landfill Disposal through Recycling, reuse, Transformation, or other means of Diversion. Contractor shall include this information in its monthly reporting per Section 8.3.1. Residential Customers that exceed the number of free pickups and Commercial Customers may receive Bulky Item Collection under the same terms for a fee, in accordance with the approved rate schedule. 7.2.a Packet Pg. 493 ADDENDUM #1 City of Diamond Bar – DRAFT 34 June 12, 2023 3.7 CITY SERVICES 3.7.1 CITY FACILITIES Contractor shall collect all Solid Waste including but not limited to Recyclables, Organics, Bulky Items, Electronic Waste, and Construction and Demolition Solid Debris which is generated at City government Premises at no additional cost to the City. The City shall provide Contractor with a list of locations and number of containers, sizes, and frequency of collection from which such Solid Waste shall be collected. Such Premises include, but are not limited to, City Hall, City offices, parks, City yard and street maintenance operations. Solid Waste at City yard will include Solid Waste Collected from street litter Containers. The list of City locations and the number of containers, sizes, and frequency of collection may be modified from time to time by the Contract Administrator without additional compensation paid to the Contractor. Solid Waste generated by such City operations shall be collected by Contractor per a schedule provided to Contractor by the Contract Administrator. 3.7.2 CITY-SPONSORED EVENTS Contractor shall provide Solid Waste Collection and Disposal/Processing service for City-sponsored events at no additional charge to City or Ratepayers. This shall include providing Refuse Containers (Carts, Bins, Roll-off Boxes, and cardboard waste boxes with liners) to Collect and Dispose of, or Process, all Solid Waste. Contractor shall provide Containers for the Collection of Recyclables and Organics. The list of City-sponsored events may change over time and include, but are not limited to: x Concerts in the Park x City Birthday Celebration x Fourth of July x Fall Fun Festival x Winter Snow Festival x Arbor Day x Easter Egg Hunt 3.7.3 EMERGENCY COLLECTION AND DISPOSAL SERVICE Contractor will assist City at the City’ s request with emergency Collection and Disposal service in the event of major disaster, such as an earthquake, storm, riot or civil disturbance, or as otherwise determined necessary by the City, by providing Collection equipment and drivers normally assigned to City. Contractor may charge City for actual Disposal costs plus service rates per the approved rate schedule. 7.2.a Packet Pg. 494 ADDENDUM #1 City of Diamond Bar – DRAFT 35 June 12, 2023 3.7.4 ABANDONED ITEM COLLECTION FROM CITY RIGHT-OF-WAY PUBLIC PROPERTY Contractor will Collect and Dispose of, at no additional charge to City or Ratepayers, within one Business Day of notification from City, all items left in the City’ s right-of-way, such as sidewalks, alleys, streets, and parkways. Contractor will not be required to Collect Hazardous Waste (with the exclusion of Electronic Waste and universal wastes as provided in this Agreement), liquid wastes, or automobile parts that are individually too large for Collection by two people, but will be required to Collect any items defined as Bulky Items per Section 1.12. Contractor will properly Divert from Landfilling or Dispose of such items in accordance with Sections 5.2.3. 3.7.5 COMMUNITY DEVELOPMENT REVIEW SERVICES Upon City request and at no additional charge, Contractor will review building permit applicants’ plans and advise regarding adequacy of Container storage space and access, particularly to accommodate Recycling containers. 3.7.6 LARGE VENUE EVENT ASSISTANCE Contractor will assist planners of large venue events at no additional charge with reporting and planning needs as may be useful in meeting the requirements of AB 2176, found at California Public Resources Code 42648, et seq. and Contractor shall provide Recycling services upon request to special event planners. 3.7.7 CONFISCATION OF UNAUTHORIZED CONTAINERS 1) City authorizes Contractor to confiscate illegal Collection Containers located within the City’s public rights-of-way. Upon notification from City, or Contractor’s locating of an illegally placed Container, Contractor shall begin the following procedure within 24 hours: 2) Contractor shall first place a notice on Container, directing the illegal hauler or its Customer to remove the Container within 24-hours of notice, citing relevant sections of the City of Diamond Bar Municipal Code, indicating where the Container may be retrieved, impound and storage costs, and warning that, should the Container not be removed by the hauler that Container may be removed without warning. If the company can be identified and its address ascertained, Contractor shall mail the warning as well. 3) Notify City of the notice and request authorization to impound the Container. 4) With written City approval, impound the Container if it has not yet been removed by the illegal hauler. 5) For subsequent violations by the same company after the initial notice has been posted, and after Contractor has mailed a warning to the company, Contractor may request written approval from City to remove company’ s Containers immediately, mailing a notice if address is known as to where the Container may be retrieved and impound and storage costs. If 7.2.a Packet Pg. 495 ADDENDUM #1 City of Diamond Bar – DRAFT 36 June 12, 2023 address is unknown, Contractor shall place the notice as close as feasible to where the Container was located. Written approval from City under this section will include, but is not limited to, approval sent by e- mail or facsimile. 3.7.8 PROVISION OF STORAGE CONTAINERS Contractor will provide the City with eleven 40-cubic-yard portable storage containers to be used for storage at City facilities and schools for the duration of the Agreement, and will maintain them in a condition satisfactory to the City. Contractor may transfer ownership of these storage containers to City, provided Contractor will remove and Dispose of these containers when requested to by City. 3.7.9 PROCUREMENT OF RECOVERED ORGANICS WASTE PRODUCTS [TO BE MODIFIED BASED ON PROPOSAL] Contractor shall procure sufficient compost, mulch, and/or renewable natural gas to meet the City’s per capita requirement contained in SB 1383. Contractor may meet this obligation by one or a combination of the following activities: x Bulk Compost and/or Mulch Reserved for Jurisdiction – Company shall make available for City Compost or Mulch for use in City parks and facilities at no cost to the City. x Mulch Giveaway as described in Section 3.2.13. x Use of renewable natural gas in Collection vehicles. Contractor shall ensure sufficient capacity of California recovered organics waste products to meet the mandatory procurement requirements for jurisdictions contained in SB 1383, as may be amended, during the term of this Agreement including Agreement extensions granted by the City. Contractor shall provide assurance through the execution of a liability waiver stating that all organic waste products provided by the Contractor and used within the City are free from pathogens and inorganic waste material that may be harmful to the health and welfare of the City. The Contractor shall indemnify and hold harmless the City against any claims arising from contaminated recovered organic waste products provided by the Contractor as set forth in Section 11.1. 7.2.a Packet Pg. 496 ADDENDUM #1 City of Diamond Bar – DRAFT 37 June 12, 2023 ARTICLE 4: REQUIREMENTS FOR OPERATIONS, EQUIPMENT, AND PERSONNEL 4.1 OPERATIONS 4.1.1 SCHEDULES To preserve peace and quiet, Contractor shall provide Collection services from Residential areas only between 6:30 A.M. and 6:30 P.M. Monday through Friday, with Saturday Collection permitted during weeks with a Designated Holiday. Commercial and industrial locations may be Collected between 6:00 A.M. and 6:30 P.M. Monday through Saturday. Contractor may not make exceptions to these Collection days and times without advance written approval from the City. If the regularly scheduled Collection day falls on a Designated Holiday, Collection days for the remainder of that week shall all be postponed one Collection day. Contractor shall review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with City upon thirty (30) days written notice requesting said review. Contractor shall submit a copy of its schedule and route map within seven (7) Business Days if requested by City. If the plan is determined to be inadequate by City, Contractor shall revise it incorporating any changes reasonably necessary to make it satisfactory to City within thirty (30) days. Changes to schedules and routing shall not be implemented without City approval and not until at least fifteen (15) Business Days following notification to Customers. The City may restrict the timing and frequency of any route changes based upon the City of Diamond Bar City of Diamond Bar Municipal Code or any other applicable law or requirement. 4.1.2 MISSED PICKUPS When notified of a missed pickup (which was not justified under the provisions of this Agreement) prior to 12: 00 p.m., Contractor shall Collect the Refuse, Recyclables, and/ or Organics that was not Collected the same day. If notified after 12: 00 p.m., Collection must take place no later than the next Business Day. If Contractor determined that the missed pickup was justified under this Agreement, Contractor will notify Customer as to the reason within this same time period. 4.1.3 HOLIDAY COLLECTION SCHEDULE Contractor shall not be required to provide Collection services or maintain non-emergency office hours on the Designated Holidays. If the regularly scheduled Collection day falls on a Designated Holiday, Collection days for the remainder of that week shall all be postponed one Collection day and Residential Collection is permitted on Saturday during the make-up week. Only the City may change the holiday collection schedule. 7.2.a Packet Pg. 497 ADDENDUM #1 City of Diamond Bar – DRAFT 38 June 12, 2023 4.1.4 CHANGE IN COLLECTION SCHEDULE Contractor shall notify City forty-five (45) days prior to, and Customers not later than thirty (30) days prior to, any change in Collection operations which results in a change in the day on which Solid Waste Collection occurs. Contractor will not permit any Customer to go more than seven (7) days without service in connection with a Collection schedule change. City's approval of any change in Collection is required prior to such change, and such approval will not be withheld unreasonably. Any changes in the route map or Collection schedule shall require the prior approval of the City. City may require reasonable changes to the route map or Collection schedule, to improve service, to resolve complaints or for other reasons. Prior to the change of a route schedule, Contractor shall provide written notice of the change to affected Customers ninety (90) days in advance. Contractor shall coordinate with the Contract Administrator to ensure that Solid Waste Collection is compatible with the City’s street sweeping operations. Contractor will be required to complete their designated routes each day so as not to interfere with the City’s street sweeping operations. 4.1.5 DEDECATED ROUTES Solid Waste Collected in the City shall not be commingled in Collection vehicles with Solid Waste from other jurisdictions. All routes approved under this Agreement shall be dedicated exclusively to Solid Waste Collected in the City of Diamond Bar, with the exception of Commercial Organics routes. 4.1.6 OVERFLOWING CONTAINERS Customers that regularly produce more Refuse than their current level of service can accommodate may have their service level increased in accordance with the following procedure: A. Residential Customers First Incident in Six Month Period: If more material is placed for Collection than fits in a Cart (unless Collection of the overage has been properly arranged under Section 3.2.3), Contractor shall photograph the overflowing Cart, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing that further instances of an overflowing Cart may result in a charge, and possibly in an increase in the level of service. Second Incident in Six Month Period: Upon the second event of an overfilled Cart (unless Collection of the overage has been properly arranged under Section 3.2.3) in a three-month period, Contractor shall photograph the overflowing Cart, Collect the Solid Waste, and send to the Customer the picture and a letter instructing that a third incident in that same three month period may result in an increase in the level of service. If Refuse was left beside the Cart for Collection other than. as permitted under Section 3.2.3, Contractor may charge the Cart Overage Fee in the approved Rate Schedule. 7.2.a Packet Pg. 498 ADDENDUM #1 City of Diamond Bar – DRAFT 39 June 12, 2023 Third Incident in Six Month Period: Upon the third event of an overfilled Cart (unless Collection of the overage has been properly arranged under Section 3.2.3) in a three-month period, Contractor shall photograph the overflowing Cart, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. If the Customer declines, Contractor may petition City to permit Contractor to increase the service level to accommodate the higher demand for service. If Refuse was left beside the Cart for Collection other than as permitted under Section 3.2.3, Contractor may charge the Cart Overage Fee in the approved Rate Schedule. Each incident shall be counted as one of the Customer's free pickups or, if Customer has used the annual free pickups, Contractor shall Bill Customer for the additional pickups per the approved rate schedule. Contractor shall send City via e-mail or U.S. mail a copy of each letter and picture sent to a Customer under this Section 4. 1. 6. B. Commercial Customers First Incident in Six Month Period: If more material is placed for Collection than fits in a Container, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and billing addresses) the picture and a letter instructing that further instances of an overflowing Container may result in an increase in the level of service. Second Incident in Six Month Period: Upon the second event of an overfilled Container in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level. if the Customer declines, Contractor may petition City to permit Contractor to increase the service level to accommodate the higher demand for service. Contractor shall send City via e-mail or U.S. mail a copy of each letter and picture sent to a Customer under this Section 4.1.6. 4.1.7 GRAFFITI REMOVAL Contractor shall remove graffiti from any Container within three (3) Business Days (excluding Saturday, Sunday, and Designated Holidays of request by City or Customer at no additional charge. Contractor is required to proactively look for graffiti when Collecting Containers, with all graffiti removed from Containers as stated above after any Collection without notification. 4.1.8 LITTER ABATEMENT A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or Transportation process. If any Solid Waste or fluids leak or are spilled during Collection, Contractor shall promptly clean up all such materials. Each Collection vehicle shall carry a broom and shovel at all times for this purpose. 7.2.a Packet Pg. 499 ADDENDUM #1 City of Diamond Bar – DRAFT 40 June 12, 2023 Contractor shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by City. B. Clean Up. Contractor shall clean up litter in the immediate vicinity of any Solid Waste storage area if Contractor has caused the litter during the Collection process. Customer shall be responsible for cleanup of litter in Solid Waste storage area not caused by Contractor. Contractor shall identify instances of repeated spillage not caused by it directly with the Waste Generator responsible and will report such instances to City. Contractor may address habitual offenders in accordance with Section 4.1.6. In the event of a spill of materials (vehicle fluids, Organic Waste leachate, etc.), Contractor shall provide a cleanup of the spill to the satisfaction of City and other governing agencies. Cleanup methods may include pressure washing (Contractor must capture and reclaim water) or other similar clean-up methods. C. Covering of Loads. Contractor shall properly cover all open Roll-Off Boxes during Transport to the Disposal Site. 4.1.9 HEALTH AND SAFETY TRAINING Contractor shall provide suitable operations, health and safety training on an ongoing basis for all of its drivers and other employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. 4.1.10 UNAUTHORIZED MATERIAL REMOVAL Contractor shall dismiss or discipline employees who remove documents or any other material from Containers, other than specifically for the purposes of Disposal and Diversion as described in this Agreement. 4.1.11 REPORT OF ACCUMULATION OF SOLID WASTE; UNAUTHORIZED DUMPING Contractor shall direct its drivers to note (1) the addresses of any Premises serviced under this Agreement at which they observe that Solid Waste is accumulating and which is not being place out for Collection; and (2) the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City within five (5) Work Days of such observation. 4.1.12 ROUTE AUDIT Once during the first year or at City request but not more than once per year, Contractor shall conduct an audit of its Collection routes in the City. City may use information from the audit to develop a request for proposals for a new service provider. City may instruct Contractor when to 7.2.a Packet Pg. 500 ADDENDUM #1 City of Diamond Bar – DRAFT 41 June 12, 2023 conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses. City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers. In setting these audit dates, City will establish due dates for Contractor providing routing and account information, and later, the report, to City. The route audit, at minimum, shall consist of an independent physical observation by Person(s) other than the route driver of each Customer in City. This Person(s) is to be approved in advance by City. The route audit information shall include, as a minimum, the following information for each account: x Route Number; x Truck Number; x Number and size of Carts by waste stream (Refuse, Recycling, Organics) x Cart condition; x For Bin and Roll-Off Box Customers: x Route Number; x Truck Number; x Account Name; x Account Number; x Account Service Address; x Account Type (Residential, Commercial, Roll-Off Box Service); x Service Level per Contractor Billing system (Quantity, Size, Frequency, Waste Stream); x Observed Containers (Quantity, Size, Frequency, Waste Stream). x Container condition; x Proper signage; and, x Graffiti. Within thirty (30) days after the completion of the route audit, Contractor shall submit to City a report summarizing the results of the audit. This summary shall include: x Identification of the routes; x Route map; x Truck numbers; x Number of accounts, by route and in total (Residential, Commercial and Roll-Off Box Service); x Confirmation that all Refuse routes are dedicated exclusively to City Customers; 7.2.a Packet Pg. 501 ADDENDUM #1 City of Diamond Bar – DRAFT 42 June 12, 2023 x Number and type of exceptions observed; x Total monthly service charge (Residential, Commercial and Roll-Off Box Service), pre-audit; x Total monthly service charge (Residential, Commercial and Roll-Off Box Service), post-audit (subsequent to corrections of identified exceptions); and, x The report shall include a description of the procedures followed to complete the route audit. This description shall include the names and titles of those supervising the route audits and the name and titles of those performing the observations. The report shall also include a description of the changes and Contractor’s plans to resolve the exceptions. The results of the audit, and supporting back-up data, shall be available for review by City or its representative. 4.1.13 SERVICE EXCEPTIONS; HAZARDOUS WASTE NOTIFICATIONS A. Failure to Collect. When Solid Waste is not Collected from any Solid Waste Customer, Contractor shall notify its Customer in writing, at the time Collection is not made, through the use of a “tag” or otherwise, of the reasons why the Collection was not made. B. Hazardous Material Inspection and Reporting. Contractor reserves the right to reject Solid Waste observed to be contaminated with Hazardous Material and the right not to Collect Hazardous Material put out with Solid Waste. Contractor shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Material, found or observed in Solid Waste anywhere within the City. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Materials unlawfully Disposed of or released on any City property, including storm drains, streets or other public rights of way, Contractor will immediately notify the City Manager or the City Manager’s designee. Contractor shall implement and maintain a training program that will assist its employees in identifying and properly disposing of any Hazardous Material that may come into their possession. C. Hazardous Material Diversion Records. Contractor shall maintain records showing the types and quantities, if any, of Hazardous Material found in Solid Waste and which was inadvertently Collected from Customers within the City, but Diverted from Landfill Disposal. 4.1.14 COLLECTION OF FORMER CONTRACTOR’S CONTAINERS If any Solid Waste enterprise providing Solid Waste Services to Customers prior to the start of Collection services under this Agreement does not remove the Containers it had in use prior to the start of Collection services under this Agreement, Contractor shall Collect and Recycle/Dispose of all such Containers at no additional charge to City or Customers. 7.2.a Packet Pg. 502 ADDENDUM #1 City of Diamond Bar – DRAFT 43 June 12, 2023 4.2 VEHICLE REQUIREMENTS 4.2.1 GENERAL Contractor shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms as described in Contractor's Proposal. Any additional vehicles/routes that may be required to meet the service standards during the term of this Agreement, above the number included in Contractor's Proposal shall be done so at Contractor's sole expense. Contractor shall have available on Collection days sufficient reserve vehicles for each type of Collection vehicle, which can be dispatched within one (1) hour of any breakdown to complete the Collection routes and to respond to complaints and emergencies. Such reserve equipment shall correspond in size and capacity to the equipment used by the Contractor to perform the contractual duties. All equipment of Contractor used to provide the services set forth in this Agreement shall be subject to inspection by City upon request. 4.2.2 VEHCILE SPECIFICATIONS A. All route Collection vehicles will be not older than 2-years and in like-new condition upon initiation of services under this Agreement. Contractor shall operate no vehicles within the City over 10-years in age during the initial ten-year term of this Agreement and no older than 15-years in age during any future extensions of this Agreement. B. Such vehicles must be registered with the California Department of Motor Vehicles and shall have water-tight bodies designed to prevent leakage, spillage or overflow. Hoppers shall be enclosed on top and on all sides to prevent material from leaking, blowing or falling from the Vehicles. All such Vehicles shall have Each Collection vehicle shall be equipped with a shovel and broom for clean-up of spillage. Collection Vehicles shall never be loaded to exceed the manufacturer’s recommended weight limit or otherwise operated unsafely or in violation of any Applicable Law. C. At all times during the term of this Agreement, Contractor’s Collection vehicles shall comply with Department of Transportation requirements, South Coast Air Quality Management District Requirements and the California Air Resource Board requirements as they are currently in force and as they may be approved for Refuse removal vehicles, as well as other Federal, State and local laws and regulations that may be enacted during the term of this Agreement. D. All route Collection vehicles used by Contractor in providing Refuse, Recycling, and Organics Collection services, excluding spares, Roll-off Box Collection vehicles, scout vehicles, supervisor vehicles, Container delivery and other specialty vehicles used on a sporadic basis, shall use alternative fuel such as compressed or liquified natural gas, liquified petroleum gas, methanol, electricity, fuel cells, or other advanced technologies, approved by the South Coast Air Quality Management District (SCAQMD) for Solid Waste Services. 7.2.a Packet Pg. 503 ADDENDUM #1 City of Diamond Bar – DRAFT 44 June 12, 2023 4.2.3 VEHICLE IDENTIFICATION Contractor's name, local telephone number, and a unique vehicle identification number designed by Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than six (6) inches high. City must approve truck labeling. No advertising shall be permitted other than the name of the Contractor except promotional advertisement of the Recyclable Materials and Organic Materials programs, other programs specific to the City, or information requested by City. All advertisement must be approved by the City. Contractor shall not place City's name and/or any City logos on Contractor vehicles. 4.2.4 CLEANING AND MAINTENANCE 1) Contractor shall maintain all of its properties, vehicles, facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean, and operable condition at all times. 2) Vehicles used in the Collection of Refuse, Recyclable Materials, and Organics shall be painted, thoroughly washed, and thoroughly steam cleaned on a regular basis so as to present a clean appearance. City may inspect vehicles at any time to determine compliance with this Agreement. Contractor shall also make vehicles available to the County of Los Angeles for inspection, at any frequency it requests. Contractor agrees to replace or repair to the City’s satisfaction, any vehicle which City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 3) Contractor shall repaint all vehicles used in the Collection of Refuse, Recyclable Materials and Organics at least every five years, and within thirty (30) days' notice from City if City determines that their appearance warrants painting. 4) Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles which are not operating properly shall be removed from service until repaired and operating properly. Contractor shall perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and mileage, and shall make such records available to City upon request. 5) Contractor 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 shall maintain accurate records of repair, which shall include the date and mileage, nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6) Contractor shall clean up any leaks or spills from its vehicles per the National Pollutant Discharge Elimination System (NPDES) permit in effect at the time. No fluids shall be washed into storm drains at any time. All NPDES dry-cleaning measures shall be complied with. All Collection Vehicles must be equipped with absorbent for such cleanup efforts. 7.2.a Packet Pg. 504 ADDENDUM #1 City of Diamond Bar – DRAFT 45 June 12, 2023 7) Upon request, Contractor shall furnish City a written inventory of all equipment, including Collection vehicles, used in providing service. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity. 8) All vehicles used to provide services under this Agreement shall at all times have in the cab the registration of the truck, evidence of insurance meeting the requirements of this Agreement and an identification card with the name of whom to telephone in case of an accident or emergency. Each truck shall be equipped with a minimum of a 20 -pound fire extinguisher that has been certified by the state fire marshal. This fire extinguisher shall be recharged as needed, but not less than once annually. Vehicles shall be equipped with a shovel and broom to clean up any spillage. 9) All trucks used to provide services under this Agreement in the City shall be required to be completely enclosed with a nonabsorbent cover while Transporting Refuse, Recyclables or Compostable Materials or other Solid Waste materials in or through the city. "Completely enclosed with a nonabsorbent cover" means that Refuse, trash, Recyclable or Compostable materials shall not be visible from the public highway, nor shall any of the substances be permitted to leak, spill or become deposited along any public highway. 4.2.5 VEHICLE OPERATIONS Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by state or local weight restrictions on vehicles. Contractor equipment used for Refuse, Recycling, and Organics services shall be registered with the California Department of Motor Vehicles. Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205 and other applicable noise control regulations, and shall incorporate noise control features throughout the entire vehicle. Noise levels of equipment used for Collection shall comply with the City of Diamond Bar Municipal Code Chapter 8.16 and in no event shall the noise level exceed 75 dba when measured at a distance of 25 feet from the vehicle, five feet from the ground. Contractor shall store all equipment in safe and secure locations in accordance with City's applicable zoning regulations. Contractor shall be responsible for any damage, normal wear and tear excepted, resulting from or directly attributable to any of its operations, and which it causes to: City's driving surfaces, whether or not paved, public or private; associated curbs, gutters, and traffic control devices; and all other public and private improvements. 4.2.6 CITY INSPECTION PER CODE City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the provisions of the State Vehicle Code, including, but not limited to, California Vehicle Code Sections 27000(b), 23114, 23115, 42030, 42032, and all 7.2.a Packet Pg. 505 ADDENDUM #1 City of Diamond Bar – DRAFT 46 June 12, 2023 Vehicle Code Sections regarding smog equipment requirements. City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes or any provision of this Agreement. No vehicle directed to be removed from service shall be returned to service until it conforms and its return to service has been approved by the City. 4.2.7 VEHICLE INSPECTIONS Upon City request, Contractor shall submit the Safety Compliance Report/Terminal Record Update from its Biennial Inspection of Terminal, or BIT. If Contractor receives a terminal rating below satisfactory, the Contractor is in violation of the Agreement. The Contractor has the time allowed by the Department of California Highway Patrol (“CHP”) to cure violations and bring the terminal rating up to satisfactory. If the CHP does not adjust the rating to satisfactory or better within six months, then the Contractor shall be considered in default of the contract and the City may terminate the Agreement as provided in Section 13.2. 4.2.8 CORRECTION OF DEFECTS Following any inspection, the City Administrator shall have the right to cause Contractor, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Administrator’s decision will be final. 4.2.9 CITY INFORMATIONAL DISPLAYS Contractor shall equip all vehicles which Collect Solid Waste within the City with informational displays. The City shall advise Contractor as to the messages which should be displayed while vehicles are operating for the City. The City may, at its option, have the messages to be displayed changed once per year at no additional cost. 4.2.10 VEHICLE AND EQUIPMENT INVENTORY On or before the effective date of this Agreement, the Contractor shall provide to the Contract Administrator an inventory of Collection Vehicles and major equipment used by the Contractor for Collection or Transportation in performance of services under this Agreement. The inventory shall indicate each Collection vehicle by identification number, DMV license number, the age of the chassis and body, type of fuel used, the type and capacity of each vehicle, the date of acquisition, and the maintenance and rebuilt status. The Contractor shall submit to the Contract Administrator an updated inventory including all of the information required above in each annual report, or more often at the request of the City. Each vehicle inventory shall be accompanied by a certification signed by the Contractor that all Collection Vehicles meet the requirements of this Article. 7.2.a Packet Pg. 506 ADDENDUM #1 City of Diamond Bar – DRAFT 47 June 12, 2023 4.3 CONTAINER REQUIREMENTS 4.3.1 CART REQUIREMENTS A. Cart Selection, Distribution and Exchanges. Contractor shall provide Customers with new Refuse, Recycling and Organics Carts at the start of service under this Agreement, at no extra charge. In advance of initial new Cart distribution, Contractor shall mail a notice of rates, and provide Customers the opportunity to request service changes. If no response is received by Customer by specified date, Customer will retain the same level of service currently provided as reported by the previous waste hauler. B. Cart Design Requirements. The Carts shall be manufactured by injection or rotational molding and meet the Cart design and performance requirements as specified below. All Carts selected shall be subject to City approval. The City will not permit Carts and Cart lids with inconsistent colors or in poor condition to be used in the City at any time during the term of this Agreement, and may require Contractor to replace such Carts. Contractor shall ensure that all Carts in service during the terms of this Agreement comply with CalRecycle requirements under SB 1383. C. Cart Colors. The Refuse, Recycling and Organics Carts or Cart lids will be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Cart and Cart lid colors shall be consistent throughout the City, and shall comply with CalRecycle requirements under SB 1383. D. Capacity. References to Cart sizes of 35, 64, or 96 gallons are approximate. Acknowledging the different sizes provided by the various Cart manufacturers, the Carts shall be uniform in appearance and must conform to the following ranges in size: x 30 to 40 gallons, x 60 to 70 gallons, and x 90 to 101 gallons. E. Cart Handles. The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. Pinch points are unacceptable. F. Cart Lid Performance. Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously: x Prevents the intrusion of rainwater, rodents, birds, and flies; x Prevents the emission of odors; 7.2.a Packet Pg. 507 ADDENDUM #1 City of Diamond Bar – DRAFT 48 June 12, 2023 x Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism; x Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container; x Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended; x Remain closed in winds up to 25 miles per hour from any direction. All lid hinges must remain fully functional and continually hold the lid in the original designed and intended positions when either opened or closed or any position between the two extremes; and, x Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Container. x The lid handle shall be an integrally molded part of the lid; x The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, x The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body. G. Cart Labeling and Hot Stamping. Labels used on Carts shall be placed on the inside of the Cart lid, and hot stamps shall be on the top of the lid and/or on the body of the Cart. Each Cart shall be hot stamped with the material type (e.g., Refuse, Recycling, Organics) in English, Mandarin, and Korean. Labels shall include graphic instruction on what materials should and should not be placed in each Cart. Design for both the labels and the hot stamps must be approved by City prior to ordering labels or Carts. City shall approve what information is included on the label and in the hot stamp, as well as approve design and quality. Labels shall be replaced when worn, and when information on the label is in need of updating, but no later than 90 days of request from City. Information on the Carts shall include the telephone number to call for Contractor for Bulky Item pickups and for general Customer service. All Carts shall be labeled in accordance with CalRecycle requirements under SB 1383 throughout the term of this Agreement. H. Cart Performance Requirements. All Carts shall be designed and manufactured to meet the minimum performance requirements described below. I. Cart Load Capacity. Depending on the capacity, the Carts shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein. 7.2.a Packet Pg. 508 ADDENDUM #1 City of Diamond Bar – DRAFT 49 June 12, 2023 Cart Capacity Gallons) Minimum Load Capacity (lbs) 90-101 60-70 30-40 200 130 70 I. Cart Durability. Carts shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy its intended use and performance, for the term of this Agreement: x Maintain its original shape and appearance; x Be resistant to kicks and blows; x Require no routine maintenance and essentially be maintenance free; x Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with its intended use; x Resist degradation from ultraviolet radiation; x Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats); x The bottoms of Cart bodies must remain impervious to any damage, that would interfere with the Cart’s intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; x All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and, x Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City. J. Chemical Resistant. Carts shall resist damage from common household or Residential products and chemicals. Carts, also, shall resist damage from human and animal urine and feces. K. Stability and Maneuverability. The Carts shall be stable and self-balancing in the upright position, when either empty or loaded to its maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position. The Carts shall be capable of maintaining an upright position in sustained or gusting winds of up to 25 miles per hour as applied from any direction. The Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface. 7.2.a Packet Pg. 509 ADDENDUM #1 City of Diamond Bar – DRAFT 50 June 12, 2023 L. Cart Repairability Or Replacement. Contractor shall be responsible for Cart repair and maintenance, and replacing lost, stolen or damaged Carts within three (3) business days of notification (excluding Saturday, Sunday and Designated Holidays, at no additional charge to the Customer or to City, unless Contractor can demonstrate to the Contract Administrator that the damage or loss was due exclusively to the Customer’s intentional or wanton destruction. Contract Administrator shall make the final determination. All repairs must restore the Cart to its full functionality. If City permits a Cart replacement charge to be assessed against Customer, Contractor may charge the Customer the Cart Replacement Fee in the approved rate schedule. Unsightly/worn- out/broken Carts shall be replaced by Contractor upon Customer request at no additional cost to Customer. Customers are responsible for the cleanliness and sanitation of Carts. Contractor shall steam clean Carts upon request of Customers at the rates shown in the approved rate schedule. All Carts in service for the duration of this Agreement shall comply with color and labeling requirements specified by CalRecycle under SB 1383. 4.3.2 BIN REQUIREMENTS A. Cleaning and Maintenance. Contractor shall provide Customers with Bins required during the term of this Agreement and maintain Containers in safe working condition. The size of Contractor-provided Bins shall be determined by mutual agreement of Customer and Contractor. All Bins in use shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other apparatuses, which were designed for movement, loading, or unloading of the Bin shall be maintained in good repair. Upon Customer or City request, or if required to maintain the Containers in a clean condition, Contractor shall clean Customer Bins once per year at no additional charge. Contractor shall perform cleaning, repainting, or replacement of Bins as necessary to prevent a nuisance caused by odors or vector harborage, or if requested by Customer or City for an additional charge at the rates listed in the approved rate schedule. When a Bin is removed for cleaning, Contractor shall replace the Bin, either temporarily or as a change-out, with another Container. B. Bin Identification and Color. Each Bin placed in City by Contractor shall have the name of Contractor and phone number in letters not less than three (3) inches high on the exterior of the Bin so as to be visible when the Bin is placed for use. Bin type (Refuse, Recycling, Cardboard, Organic Waste) may be identified with an affixed sign. Bins shall be labeled to include English, Korean, and Mandarin and graphic instruction on what materials should and should not be placed in each Bin. Contractor shall have labels approved by City prior to ordering and placement on Bins. Labels shall be replaced when worn, and when information on the label is in need of updating, but no later than 90 days of request from City. 7.2.a Packet Pg. 510 ADDENDUM #1 City of Diamond Bar – DRAFT 51 June 12, 2023 Contractor shall repaint Bins at the City’s request if the City deems it necessary to maintain a neat appearance. All Bins in service for the duration of this Agreement shall comply with color and labeling requirements specified by CalRecycle under SB 1383. 4.3.3 ROLL-OFF BOX REQUIREMENTS Contractor shall provide sufficient Roll-Off Boxes to meet Customer demand throughout the Term of the Agreement, and will keep all Roll-Off Boxes clean, free from graffiti, equipped with reflectors, and with the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-Off Box so as to be visible when the Roll-Off Box is placed for use. Contractor shall properly cover all open Roll-Off Boxes during Transport as required by the State Vehicle Code. All Roll-Off Boxes in service for the duration of this Agreement shall comply with color and labeling requirements specified by CalRecycle under SB 1383. 4.4 PERSONNEL 4.4.1 QUALIFIED PERSONNEL Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. 4.4.2 IDENTIFICATION REQUIRED Contractor shall provide its employees, companies, and subcontractors with identification for all individuals who may make personal contact with residents or businesses in City. City may require Contractor to notify Customers yearly of the form of said identification. Contractor shall provide a list of current employees, companies, and subcontractors to City upon request. City reserves the right to perform a security and identification check through the City's Police Department on the Contractor and all their present and future employees employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause. 4.4.3 HAZARDOUS MATERIAL EMPLOYEE TRAINING Contractor shall establish and implement an educational program which will train Contractor's employees in the identification of Hazardous Material. Contractor's employees shall not knowingly place such Hazardous Material in the Collection vehicles, nor knowingly Dispose of such Hazardous Materials at the Processing Facility or Disposal Site. 7.2.a Packet Pg. 511 ADDENDUM #1 City of Diamond Bar – DRAFT 52 June 12, 2023 4.4.4 FEES AND GRATUITIES Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to request, solicit or demand, either directly or indirectly, any compensation or gratuity for services authorized to be performed under this Agreement except as described in this Agreement, in accordance with the approved rate schedule. 4.4.5 NON-DISCRIMINATION Contractor shall not discriminate in the provision of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, physical handicap, or medical condition in violation of any applicable federal or state law. 4.4.6 HIRING OF DISPLACED EMPLOYEES In accordance with Labor Code Sections 1070, 1072, 1075, and 1076, Contractor shall offer employment to qualified existing employees of the current contractor that may be displaced if the current contractor is not retained. Immediately following award of this Agreement, Contractor shall work with the current contractor to obtain a complete list of full-time non-management employees in good standing working exclusively to provide direct Collection services to City and Collection support services. Contractor shall conduct outreach, complete interviews, and offer employment to eligible employees. Contractor will not be required to hire for more positions than the maximum anticipated positions needed to provide the services required by this Agreement or hire employees for positions if those employees have not been successfully executing duties similar to those needed by Contractor to provide the services required by this Agreement. 4.4.7 CITY LIAISON Contractor shall designate a person to serve as agent and liaison between the Contractor and the City and shall maintain a telephone and a means for contact at all times including during periods of strike or other emergencies. The Contractor's City Liaison shall meet with the City as necessary to effectuate the purposes of the Agreement. Contractor shall immediately inform City of any changes in the designated City Liaison. Contractor shall not change this designation without prior approval of the City, excluding cases of termination of the employee. 4.4.8 SERVICE LIAISON Contractor shall designate a field supervisor as the City’s “Service Liaison” who shall be responsible for working with Contract Administrator to resolve Customer service-related complaints. The Service Liaison shall be accessible via cell phone or radio in the field at all times. Contractor shall immediately inform City of any changes in the designated Service Liaison. Contractor shall not change this designation without prior approval of the City, excluding cases of termination of the employee. 7.2.a Packet Pg. 512 ADDENDUM #1 City of Diamond Bar – DRAFT 53 June 12, 2023 4.4.9 ENVIRONMENTAL COORDINATOR To achieve a high level of Recycling education and awareness, Contractor will hire at least one full- time, fully trained and experienced, environmental coordinator. The environmental coordinator shall develop and conduct all education and outreach activities required under the Agreement including, providing technical assistance to Residential (including Multi-Family Premises), and Commercial Customers; promoting waste reduction, Recycling, and Diversion programs; submitting monthly reports to the City regarding waste audits, outreach activities, and any other information requested by the City. The environmental coordinator shall fully cooperate with the City in implementing the City’s Customer Education Plan. 4.4.10 CITY’S RIGHT TO APPROVE CITY AND SERVICE LIAISON City may request that Contractor change the City and Service Liaisons and shall have the right to approve the designated liaisons. Contractor shall immediately inform City of any changes in the designated liaisons. ARTICLE 5: PROCESSING AND DISPOSAL REQUIREMENTS 5.1 TRANSPORTATION OF DISCARDED MATERIALS The Contractor shall Transport all Solid Waste Collected under Article 3 to the Designated Facilities listed in Exhibit 3. The Contractor shall maintain accurate records of the quantities of Solid Waste Transported to Solid Waste facilities and will cooperate with the City in any audits or investigations of such quantities. 5.2 DIVERSION AND PROCESSING REQUIREMENTS Contractor shall Divert from Landfill Disposal a minimum of ___% of all Solid Waste it Collects under this Agreement excluding Construction and Demolition Debris. Compliance will be measured on a calendar year basis, except that compliance will be measured during the first compliance period for the fifteen (15) months ending December 31, 2026, and compliance during the final year will be based on a partial year if the term ends before December 31 in the final year. Solid Waste Collected shall only be considered to have been Recycled or Diverted as required under this Agreement if it is deemed to be Diversion by CalRecycle in connection with efforts to meet City’s Diversion goals. Contractor shall provide documentation to the City within 45 days of the end of each calendar year stating and supporting that calendar year’s Diversion rate. Diversion from sources other than Contractor’s Collection and Diversion efforts (such as source reduction, reuse, or Recyclable Materials Diverted by other Solid Waste enterprises, Collection of materials that are not the subject of this Agreement, or the efforts of self-haulers) is not to be counted as Diversion achieved by 7.2.a Packet Pg. 513 ADDENDUM #1 City of Diamond Bar – DRAFT 54 June 12, 2023 Contractor. Failure to achieve the minimum Diversion requirement may result in liquidated damages as described in Section 11.1 of this Agreement. In the event that the minimum Diversion requirement is not met, and, no sooner than three (3) years after the start of services under this Agreement, and not more often than once every two (2) years thereafter, the Parties agree to meet and confer regarding adjustments to the minimum Diversion rate, based on factors including waste characterization data provided by Contractor, trends in source reduction and reuse, trends in third party Diversion, the availability of permitted Facilities that are capable of Processing material to achieve the required levels of Diversion, emerging methods of Processing and Recycling/reusing new waste materials, the availability of markets, and the impact of scavenging. City shall consider such information provided by Contractor and other industry data and shall, at its sole discretion, determine if any adjustments to the minimum Diversion requirements shall be made, and such changes must be approved by the City Council before becoming effective. If these Diversion requirements are not met, City may instruct Contractor to initiate new programs at Contractor’s expense in order for this goal to be met on a consistent basis. 5.2.1 PROCESSING OF RECYCLABLES AND ORGANICS Contractor shall deliver all Collected Recyclables and Organics to a fully permitted Processing Facilities capable of separating and recovering materials to maximize Diversion credit for City in accordance with CalRecycle regulations. All expenses related to Recyclable and Organics Material Processing and marketing will be the sole responsibility of the Contractor. Contractor shall ensure that all Recyclables and Organics Collected are Diverted and not Disposed of in a Landfill except as a Residue resulting from Processing or loads rejected by the Processing Facility operator or loads not delivered to the Processing facility by Contractor due to the presence of excessive contamination rendering the Recyclable loads unfit for Processing. Recyclables or Organics loads rejected by the Processing Facility operator or not delivered to the Processing Facility due to excessive contamination shall be reported to City together with information regarding the source or route from which it originated. Failure to do so places the Contractor in default. The City has the option, but not obligation, to direct the Contractor where to deliver the material. 5.2.2 END USES FOR ORGANICS Contractor is responsible for monitoring how the Organic Material will be Diverted at selected facilities and for selecting alternative facilities if necessary to ensure full Diversion credit. Failure to do so places the Contractor in default. City has the option, but not obligation, to direct Contractor where to deliver the material, and if City directs Contractor to an alternative Facility then Contractor may request a rate adjustment in accordance with Section 2.10. 5.2.3 BULKY ITEM DIVERSION Bulky Items Collected by Contractor in accordance with Section 3.6, or otherwise Collected under this 7.2.a Packet Pg. 514 ADDENDUM #1 City of Diamond Bar – DRAFT 55 June 12, 2023 Agreement, may not be Landfilled or Disposed of until the following hierarchy of Diversion efforts has been followed by Contractor: 1) Reuse as is, 2) Disassemble for reuse or Recycling, 3) Recycle or market and sell Recyclable Materials for Recycling, 4) Disposal. This hierarchy is intended to preclude the use of front or rear loading packer vehicles for Bulky Items unless the compaction mechanism is not used to compact the Bulky Items, unless they have been designated for Disposal. 5.2.4 CONSTRUCTION AND DEMOLITION DEBRIS DIVERSION Contractor will bring all loads of mixed Construction and Demolition Debris to a C&D Designated Processing Facility as listed in Exhibit 3 for separation and recovery of this material. Contractor may deliver separated loads of Construction and Demolition Debris, such as clean dirt, concrete or rebar, to facilities specializing in the reuse of such materials, provided this material is Diverted from Landfill Disposal. Contractor shall Divert from Landfill Disposal a minimum of 75% or the State-mandated Construction and Demolition Diversion percentage, whichever is greater, of all Construction and Demolition Debris Collected. 5.2.5 DIVERSION OF ELECTRONIC, UNIVERSAL AND OTHER SPECIAL WASTE Contractor shall Divert waste requiring special handling, such as Electronic Waste, or “E-Waste” Collected in accordance with Sections 3.6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by Landfill Disposal. 5.3 MARKETING AND SALE OF RECYCLABLES Contractor shall be responsible for marketing and sale of all Recyclables Collected pursuant to this Agreement. Contractor may retain revenue from the sale of Recyclable Materials, and shall report the amount of such revenues to City upon request. In the event that Contractor is unable, after reasonable diligence, to sell or donate certain Recyclable Materials due to the lack of an available market, Contractor may request, and City may authorize Contractor, in its sole discretion, to Dispose of said Recyclables without sale, subject to on-going review by the City. In the event market conditions for said Recyclables change such that they can, once again, be sold by Contractor, City may withdraw its consent for Contractor to Dispose of said Recyclables and may, again, require Contractor to sell said Recyclables as otherwise provided in this Agreement. 5.4 USE OF DESIGNATED FACILITIES The Contractor, without constraint and as a free-market business decision in accepting this Agreement, agrees to use the Designated Facilities as listed in Exhibit 3 for the purposes of 7.2.a Packet Pg. 515 ADDENDUM #1 City of Diamond Bar – DRAFT 56 June 12, 2023 Processing and/or Disposing of all Source Separated Recyclable Materials, Source Separated Organics Materials, Refuse, Bulky Items, and other materials Collected in the City over the Term of this Agreement. Contractor agrees that such decision by the Contractor in no way constitutes a restraint of trade. The Contractor shall not knowingly deliver materials Collected under this Agreement to facilities that do not comply in all material aspects with Applicable Law. The Contractor, and not the City, must use reasonable efforts to assure that all Disposal, Transfer, and Processing facilities to which the Contractor delivers material under this Agreement are properly permitted to receive material Collected under this Agreement, except for any other facility that the City directs the Contractor to use. Failure to comply with this provision may result in the Contractor being in default under this Agreement. Contractor shall actively work with the Designated Facility(ies) operator(s) throughout the Term of this Agreement to ensure that Contamination remains below the limits established by Applicable Law, including, without limitation, SB 1383. Through written notice to the City annually on or before July 1, Contractor shall identify the facilities to which Contractor will Transport Solid Waste including Source Separated Organic Waste, Source Separated Recyclable Materials, Refuse, Bulky Items, and other materials Collected in the City over the Term of this Agreement. 5.5 USE OF CONTRACTOR-OWNED APPROVED FACILITEIS If the Contractor or Affiliate owns and/or operates a Designated Facility, all expenses associated with permitting, licensing, regulatory compliance, closure and post-closure, etc. and all other costs associated with the operation and ownership of the Designated Facility is the sole responsibility of the Contractor. All expenses related to Processing and / or marketing of Organics and Recyclables will be the sole responsibility of the Contractor. Any request to adjust the Contractor’s rates shall be done in accordance with Article 10. 5.6 SOLID WASTE CAPACITY GUARANTEE Solid Waste facility Capacity Guarantee Contractor shall provide City with guaranteed capacity for the following Solid Waste facilities for the Term of this Agreement: [INCLUDE LIST FROM COMPANY'S PROPOSAL] 7.2.a Packet Pg. 516 ADDENDUM #1 City of Diamond Bar – DRAFT 57 June 12, 2023 ARTICLE 6: OTHER SERVICES 6.1 BILLING AND CONTRACTOR COMPENSATION The Contractor shall be solely responsible for the billing and collection of payments for all Collection services. The Contract Administrator shall have the right to review and approve the format of all Customer bills. The Contractor shall be entitled to set rates for all services provided pursuant to this Agreement, provided that such rates do not exceed the maximum approved rates in accordance with the approved rate schedule. Contractor Compensation is exclusively derived from revenue received as a result of the Billings for services listed on the approved rate schedule, and Contractor shall charge no additional fees unless approved in advance by the City. 6.1.1 RESIDENTIAL CART CUSTOMERS Contractor shall Bill Residential Cart Customers quarterly in accordance with the approved rate schedule with invoice dated no sooner than the first day of the quarter Billed for, and payment shall be due no sooner than 30 days after invoice date. The quarters shall begin on February 1, May 1, August 1, and November 1. Extra Bulky Item pickups or extra overage pickups may be added to quarterly Billing or may be Billed at time of service. 6.1.2 COMMERCIAL CART AND BIN SERVICE Contractor shall be responsible for billing for Commercial Cart and Commercial Bin services and other special charges as permitted in the approved rate schedule on a monthly basis. Bills must be itemized by service type, Container size, frequency of service, discounts, and period billed for. All bills must carry a due date, not "due upon receipt." Bills will not carry an itemization of fees remitted to the City. 6.1.3 DISABLED CUSTOMER DISCOUNT Customers determined to be disabled, either by the issuance of a handicap placard from the Department of Motor Vehicles or by meeting City-established guidelines, will receive a X% discount off the standard monthly rate for one Refuse, Recycling and Organics Cart service. The disabled party must be the Customer named on the Billing. The discount shall be itemized or otherwise noted on Customer invoices. Contractor shall administer the review and processing of Customer discount applications. Contractor shall provide to the City an annual report containing the name and service address of all Customers receiving the Disabled Customer Discount. 6.1.4 SENIOR DISCOUNT Customers entitled to the senior rates included in the approved rate schedule are Customers that are listed in the Bill, reside at the Premises where service is received and are 60 years of age or older. 7.2.a Packet Pg. 517 ADDENDUM #1 City of Diamond Bar – DRAFT 58 June 12, 2023 The discount shall be itemized or otherwise noted on invoices. Contractor shall administer the review and processing of Customer discount applications. Contractor shall provide the City with an annual report (or more frequently if requested by City) containing the name and service address of all Customers receiving the Senior Customer Discount. 6.1.5 FORM OF PAYMENT Contractor will accept major credit cards for payment from Customers who request temporary Roll- Off Box or temporary Bin service that do not have an account with Contractor. Customers without such an account who do not use credit cards may be required by the Contractor to post a security deposit or to pay on a "Cash on Delivery C.O.D.” basis. Any unused portion of a security deposit will be refunded to the Customer within fifteen business days of the termination of service. 6.1.6 TEMPORARY BIN AND ROLL-OFF BOX SERVICE 1) Customers' temporary Bin and Roll-Off Box services may be Billed at the time of, or in advance of, service, or on a monthly or bi-monthly Billing cycle. 2) Contractor may request advance payment for temporary services. 3) Contractor may require outstanding temporary services balances be paid prior to providing subsequent temporary services. 4) Weekly Cart Collection services shall not be suspended due to outstanding balances for Bin or Roll-Off Box Services. 6.1.7 AUTOMATED BILLING PAYMENT Contractor shall make available to all Customers through Contractor’s website and customer service portal, an automated billing and payment system at no additional charge. This system should allow Customers to view and pay bills, obtain and electronic copy of their bill, request to cease paper billing and receive e-bills via email or through Contractor’s website. The Contractor will ensure that the electronic billing and payment website conforms to industry-standard practices for electronic commerce security. The Contractor must ensure that Customers receiving e-bills are also receiving billing inserts either via electronic mail or via US Postal Service. The Contractor shall promote the website-based billing and payment system on all paper bills sent to Customers. 6.1.8 BILL PAYMENT BY PHONE The Contractor shall make available to all Customers the ability to make bill payment by phone at no additional charge. 6.1.9 REVIEW OF BILLINGS Contractor shall review its Billings to Customers to determine that the amount which Contractor is billing each Customer is correct in terms of the level of service being provided to such Customer by 7.2.a Packet Pg. 518 ADDENDUM #1 City of Diamond Bar – DRAFT 59 June 12, 2023 Contractor. Contractor shall review Customer accounts annually and submit to City a written report of that review annually on the anniversary of the Effective Day of this Agreement. 6.1.10 SUSPENSION OF SERVICE DUE TO NON-PAYMENT A. Residential Customers: The following procedures apply to Customer accounts that are Billed quarterly for weekly Cart service: 1) For balances outstanding for 60 days after due date, Contractor shall send a reminder notice to Customer that payment is overdue. Notice should include a warning that balances outstanding after 75 days shall be assessed a late fee, and that, if balance remains outstanding after 90 days, service shall be suspended. 2) For balances outstanding for 75 days after due date, Contractor shall send a notice that that service may be discontinued if overdue balance is not received within 15 days. Contractor shall provide list of these Customers to the City the time these notices have been sent. Contractor may charge a late fee equal to 10% of balance outstanding for at least 75 days after due date. 3) For balances outstanding for 90 days, Contractor may provide Customer with notice that service has been suspended until outstanding balance is paid in full, including late payment fee, provided Contractor has completed steps 1 and 2 above and has provided City with a list of Customers being so notified. B. Commercial Customers: In the event of non-payment by a Commercial Customer Billed by Contractor, Contractor must follow these steps before suspending service: First Notice: If payment is not received by 15 days after due date, Contractor shall notify Customer in writing of the non-receipt of payment and that non-payment can result in suspension of service. Second Notice: If payment is not received within 15 days of the mailing of the first notice of non- receipt of payment, Contractor shall mail a second notice of non -receipt of payment, wanting that 1) service will be suspended in 15 days if payment is not received and that City will undertake code enforcement against the delinquent Customer, and 2) Contractor may assess a penalty of up to 10% on balances outstanding for sixty (60) days after the invoice date. Contractor shall not suspend service without prior approval from City. 6.1.11 DEBT COLLECTION Contractor shall be responsible for bad debt. Contractor may pursue independent collections against Customers. City will not pursue collections on behalf of Contractor. 7.2.a Packet Pg. 519 ADDENDUM #1 City of Diamond Bar – DRAFT 60 June 12, 2023 6.1.12 CONTINUED PROVISION OF SERVICE In the event of a Billing dispute or to avoid an immediate threat to public health or safety, Contractor shall continue to provide service to Customers if requested in writing by City, without regard to the status of said Customer account and at no expense to City. Billing disputes between Contractor and Customer may be resolved by City, and City' s decision shall be final and binding. 6.1.13 NO MARKETING The Contractor will not market or distribute mailing lists with the name or address of Customers. The Contractor’s obligations under this subsection are in addition to any other privacy rights accorded Customers under Applicable Law. 6.2 CUSTOMER SERVICE All service inquiries and complaints shall be directed to the Contractor. A representative of the Contractor shall be available to receive the complaints during normal business hours. All service complaints will be handled by the Contractor in a prompt, courteous, and efficient manner. 6.2.1 LOCAL OFFICE Contractor shall maintain a local office. Office Hours shall be, at a minimum, from 7:00 A.M. to 5:00 P.M., Monday through Friday, exclusive of Designated Holidays. A responsible and qualified representative of Contractor shall be available during Office Hours for personal communication with the public at the local office, and to receive payments from Customers. Contractor shall have either a representative, a message machine, or an answering service available outside of Office Hours. Calls received outside of Office Hours shall be responded to on the next business day. Contractor shall provide City with a twenty-four (24) hour emergency number to a live person, not voicemail. 6.2.2 CUSTOMER SERVICE PORTAL Contractor shall maintain a company website and customer portal for all customer service matters. The following customer transactions shall be supported both by automation (computer interaction) and by a live customer service representative, depending on customer preference: (1) creation of a new account; (2) closing an existing account; (3) requesting modification to service levels; (4) submitting billing information and inquiries; and (5) identifying the next service date (when the collection date is impacted by a Designated Holiday or other schedule change). Customer service shall be ADA compliant. The Contractor’s website, mobile applications and customer service telephone line shall be ADA compliant. 6.2.3 CUSTOMER COMPLAINTS, INQUIRIES AND SERVICE REQUESTS Contractor shall maintain a Customer Relationship Manager (CRM) system to record and maintain records of all customer complaints, inquiries, and service requests received including by telephone, 7.2.a Packet Pg. 520 ADDENDUM #1 City of Diamond Bar – DRAFT 61 June 12, 2023 voicemail, e-mail, text, written, in person or any other communication media. The record for each incident shall include the date and time of the incident, name, address and telephone number of caller, description of the compliant, inquiry or request, employee recording incident, and the action taken by Contractor to respond and remedy the incident. Contractor shall also record each instance of non-collection and the form of notification used to inform the participants of the reasons for non- Collection and the end result or means of resolution of the incident. All written Customer correspondence shall be recorded into the CRM system when received and shall be initially responded to within one (1) business day (excluding Saturday, Sunday, and Designated Holidays) of receipt. Contractor shall use best efforts to resolve complaints within two (2) business days. Service complaints received by City will be directed to Contractor. All forwarded complaints shall be recorded into the CRM system. All Customer service records and logs kept by Contractor shall be available to City upon request. City shall, at any time during regular Office Hours, have access to Contractor's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. 6.2.4 CUSTOMER SERVICE STANDARDS Customer care is among the most important aspects of the services to be required of the Contractor. Contractor shall perform customer service at a level that can be measured by the following two standards: A. Residential. The number of complaints in any one month shall not exceed 1% of the number of residential customers served. For example, if 15,745 residential accounts are served, any compliant above 154 in any given month will be considered a separate violation of this Agreement. B. Commercial. The number of complaints in any one month shall not exceed 2.5% of the number of commercial customers served. For example, if 300 commercial accounts are served, any compliant above 8 in any given month will be considered a separate violation of this Agreement. C. Call Center Capacity. Contractor must maintain sufficient telephone capacity during normal office hours to ensure that all calls will be answered in less than an average of thirty (30) seconds. Calls will be answered in less than an average of thirty (30) seconds, and thereafter will not be placed on hold longer than an average of one (1) minute before talking to a customer service representative of the Contractor. This standard must be measured quarterly, and the Contractor shall not exceed this standard or it will be considered a separate violation of this Agreement. Contractor shall ensure that all incoming calls are answered courteously and promptly during the office hours stated above. D. Service Standard Tracking. Contractor shall track complaints and call ringing and hold requirements and include results in its quarterly report to the City. In any 12-month period, 7.2.a Packet Pg. 521 ADDENDUM #1 City of Diamond Bar – DRAFT 62 June 12, 2023 accumulation by the Contractor of four or more separate customer service violations shall be deemed a material breach of this Agreement and shall subject Contractor to all remedies which are available to the City under this Agreement or otherwise. A violation is one month in which the number of complaints exceeds the maximum permitted under Section 5.3.3(A) or 5.3.3(B) or one calendar quarter in which fewer than 90% of calls placed by the City and its Customers to Contractor are answered by a live customer service representative before the fourth ring under Section 5.3.3(C). E. Customer Courtesy. Contractor shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. 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. 6.2.5 RESOLUTION OF CUSTOMER COMPLAINTS Disputes between Contractor and its Customers regarding the services provided in accordance with this Agreement may be resolved by the City. The City's decision shall be final and binding. Intervention by the City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Contractor. Nothing in this section is intended to affect the remedies of third parties against Contractor. To the extent that remedies are warranted through this Agreement, this section shall apply. 6.2.6 EMERGENCY CONTACTS Contractor shall provide the Contract Administrator with a twenty-four (24) hour emergency phone number to a live person, not a voicemail, where the Contractor can be reached. 6.2.7 MULTI-LINGUAL, TDD SERVICES Contractor shall at all times maintain the capability of responding to telephone calls in English, Mandarin, and Korean, and such other languages as City may direct. Contractor shall at all times maintain the capability of responding to telephone calls through Telecommunications Device for the Deaf (TDD) Services. These capabilities shall be maintained for both the local telephone number and the emergency telephone number. 6.3 CUSTOMER OUTREACH AND EDUCATION The Contractor shall be responsible for Customer outreach and education. Contractor shall develop and implement outreach and education material that describes and promotes the Contractor’s Solid 7.2.a Packet Pg. 522 ADDENDUM #1 City of Diamond Bar – DRAFT 63 June 12, 2023 Waste Services that are available to Customers and that addresses the requirements of AB 939, AB 341, AB 1826, and SB 1383 Diversion mandates. Contractor agrees to take direction from City to expand Customer knowledge concerning needs and methods to reduce, reuse and Recycle Solid Waste and to cooperate fully with City in this regard. All materials produced by Contractor relating to services provided under this Agreement, including, but not limited to: print, radio, television, or internet media before publication, distribution, and/or release, shall be approved by City Manager or designee prior to being printed for distribution. A draft of all text and illustrations shall be provided to City Manager or designee at least two (2) weeks in advance of production of the final document. Comments provided by the City Manager or designee shall be reasonably incorporated, and the final version of the text and illustrations shall be acceptable to both City and Contractor. Printed materials shall be printed on recycled content paper. All of Customer education materials shall be produced and/ or available in English, Mandarin, and Korean languages, including pictures wherever applicable. 6.3.1 ON-GOING EDUCATION REQUIREMENTS Contractor will provide a minimum of the following Customer education items to be developed at Contractor’s expense and distributed as indicated below: A. Initial Mailing. Contractor will prepare and mail an initial mailing to Customers explaining the transition from the existing program to the new program. The mailing will describe program changes, route changes, dates of program implementation, and other necessary information. B. How-To Instructional Packet. Contractor will prepare and distribute an Instructional Packet to new Customers when they start service. At a minimum, packet should include the following information. x Description of available services, x Explanation of when, where, and how to place Containers for Collection, x Explanation of which materials should be placed in each Container, x Service phone number and who to contact with service or billing questions. x Designated Holidays C. Container Labels and Instructions. All Containers shall be labeled in accordance with CalRecycle requirements under SB 1383 throughout the term of this Agreement. Contractor will place stickers and/or hot stamp, Recyclable and Organics Carts, and will place stickers on Bins and Roll-Off Boxes to demonstrate to Customers which materials are and are not acceptable for placement in each Container. Stickers shall be replaced when materials change or as labels become worn. Markings shall be written in English, Mandarin, and Korean. 7.2.a Packet Pg. 523 ADDENDUM #1 City of Diamond Bar – DRAFT 64 June 12, 2023 D. Annual Brochure/Mailing. Not less than once per year during each Rate Year, Contractor shall prepare and distribute to each Customer a mailing to update Customers regarding program basics, program changes, holiday schedules and other services related information. Mailings should promote and explain: all Solid Waste programs offered by City and Contractor (such as Recycling, Organics, Holiday Tree, Bulky Item Collections, and FreeCycle. com) described in detail; the environmental, regulatory, and other benefits of participating in Recycling; how to properly Dispose of Household Hazardous Waste such as syringes, paint, etc.; Collection schedules, including holiday schedules; Customers service numbers; and the procedures to begin and terminate services (if moving from Premises). The mailing shall also include all information required in 14 CCR Section 18985.1(a), including but not limited to the requirements on: x Information on Organic Waste Generator’s requirements to properly separate materials in appropriate containers. x Information on methods for the prevention of organic waste generation, recycling organic waste on-site, sending organic waste to community composting, and any other local requirements regarding organic waste. x Information regarding the methane reduction benefits of reducing the Landfill Disposal of Organic Waste, and the methods of Organic Waste recovery Contractor uses. x Information regarding how to recover organic waste. x Information related to public health and safety and environmental impacts associated with the Landfill Disposal of Organic Waste. x Information regarding programs for the donation of Edible Food. x Information regarding self-hauling requirements. Contractor will update and maintain its website to include all information covered in outreach materials; as well as the multi-family recycling instructional materials to be utilized by property owners, Front-of-house container labels, and links to the City’s information about Edible Food donation and self-haul. This brochure shall be at least four (4) pages and printed in full color. Contractor is responsible for all associated costs. E. Billing Inserts. City may require Contractor to insert notices in Contractor’s Billings up to four (4) times per year. City may instruct Contractor to prepare such notices at Contractor’s expense, or may choose to provide such notices for insertion. Additionally, City may periodically request that Contractor include informative language directly on the invoices it sends. F. Second Annual Mailer. Not less than once per year during each Rate Year, Contractor shall prepare and distribute to each Customer a one (1) page, double-sided mailer printed in full color. City 7.2.a Packet Pg. 524 ADDENDUM #1 City of Diamond Bar – DRAFT 65 June 12, 2023 and Contractor shall meet and confer to determine the subject matter of mailer. Contractor is responsible for all associated costs. The method of delivery to Customers is at the City' s discretion. F. Corrective Action Notice. Contractor shall develop a corrective action notification form for use in instances where a Customer sets out unacceptable materials for Collection, that explains the correct manner for Disposal of such items. G. Technical Assistance. Contractor is responsible for providing technical assistance to Customers to promote participation in the Diversion programs included in this Agreement, and future regulatory requirements. Contractor may utilize the services of a consultant to provide these services upon approval by the City. H. Website. The Contractor shall develop and maintain a website dedicated to services provided in the City that is accessible by the public. The web site shall include answers to frequently asked questions; holiday schedules; rates for Collection services; acceptable materials and by waste stream (Recyclables, Organics, and Refuse); proper Household Hazardous Waste Disposal procedures; other useful information, as well as informing Customers how to Contact Contractor. The Contractor’s website shall provide the public with the ability to e-mail complaints to the Contractor and request services or service changes. (see Section 6.2.2) 6.3.2 AB 341, AB 1826, AND SB 1383 COMPLIANCE Contractor shall ensure the City's compliance with AB 341, AB 1826, and SB 1383 by implementing the planned tasks, procedures, proposed staffing assignments, and schedules for AB 341, AB 1826, and SB 1383 included in Section 3.3.4 and more fully documented in the implementation plan included in Exhibit 5. Contractor will participate in the promotion of Recyclables and Organic Waste services available to Residential, Multi-Family, and Commercial Customers and will fully cooperate with the City to promote Customer education as follows: x Sending letters to Commercial Customers not recycling to inform them of the requirements of the Act; x Assisting the City in informing Commercial Customers about the waiver and exemption process and distributing and providing assistance in the preparation of the required form. x Completing a compliance review of all Commercial Customers that generate two cubic yards or more per week of Solid Waste per SB 1383 18995.1 (a)(1)(A); x Contacting Commercial Customers not recycling, by telephone to inform them of the requirements of the Act; x Conducting site visits to Commercial Customers not recycling or participating in Organics Collection, with each account not in compliance with the Act and subscribed to 2 cubic yards or more of Solid Waste service receiving at least one site visit every three years; 7.2.a Packet Pg. 525 ADDENDUM #1 City of Diamond Bar – DRAFT 66 June 12, 2023 x Evaluating requests for exemption or waiver from the Act’s requirements and providing the Contract Administrator periodic recommendations for exemption/waiver approval, including a site visit and re-evaluation at least every five years as required by the regulations; x Providing the City with sufficient data, in a format provided by the City, for the City to accurately monitor Commercial recycling efforts in the City, including an annual list of accounts not in compliance with the Act and the account-holder’s contact information; and x Identifying and promoting recycling services available to Customers on the Contractor website, within its annual newsletter, and within the customer bill as an insert. ARTICLE 7: FRANCHISE FEE, CALRECYCLE COMPLIANCE FEE, VEHICLE IMPACT FEE, AND OTHER FEES In addition to any other consideration set forth herein, as part of its consideration for entering into this Agreement, and for the exclusive Franchise, right and privilege to provide Solid Waste Services as specified herein, Contractor shall provide the following: 7.1 FRANCHISE FEE Contractor shall pay the City a Franchise Fee of _____ percent [amount to be based on proposal Attachment 6, Form 2.0 Rate Revenue] of Gross Receipts received from Customers billed by Contractor. The amount of the Franchise Fee may be increased by resolution of the City Council and, whenever said Franchise Fee is increased by resolution of the City Council, Contractor shall be permitted to pass through to Customers one hundred percent (100%) of the amount of such increase. Contractor and City agree that this Franchise Fee was set through good faith negotiations and represents the reasonable value of the public right-of-way franchise rights granted to Contractor under this Agreement and is a cost paid solely by the Contractor. Invoices submitted to Customers by Contractor shall not reference the Franchise Fee. 7.2 CALRECYCLE COMPLIANCE FEE Contractor shall pay to the City a CalRecycle Compliance Fee of Seven Hundred Fifty Thousand dollars ($750,000) annually as adjusted herein. The CalRecycle Compliance Fee amount represents a reasonable allocation of the City’s budgeted costs to comply with State mandates resulting from the enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016) which require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. Invoices 7.2.a Packet Pg. 526 ADDENDUM #1 City of Diamond Bar – DRAFT 67 June 12, 2023 submitted to Customers by Contractor shall not reference the CalRecycle Compliance Fee. The CalRecycle Compliance Fee shall be paid in monthly installments over the course of each Rate Year. The initial monthly payments shall be Sixty-Two Thousand Five Hundred ($62,500) due under the terms of Section 7.6. The foregoing notwithstanding, beginning with Rate Year 2 (July 1, 2026) and for all subsequent Rate Years, the amount of the CalRecycle Compliance Fee shall be adjusted annually to reflect the change in the average annual CPI for the twelve (12) month period ending December. If there is no increase in the CPI or if the CPI decreases, the CalRecycle Compliance Fee shall remain unchanged from the previous Rate Year. 7.3 RESIDENTIAL VEHICLE IMPACT FEE Contractor shall pay a Residential Vehicle Impact Fee of One Hundred Seventy-Five Thousand dollars ($175,000) annually as adjusted herein. The purpose of the Residential Vehicle Impact Fee is to reimburse the City for a portion of the costs to provide road maintenance to City’s streets due to the “wear and tear” caused by the use of Contractor’s Solid Waste Collection vehicles on City Streets. The Residential Vehicle Impact Fee shall be paid in monthly installments over the course of each Rate Year. The initial monthly payments shall be Fourteen Thousand Five Hundred Eighty-Three dollars and Thirty-Three cents. ($14,583.33) due under the terms of Section 7.6. The foregoing notwithstanding, beginning with Rate Year 2 (July 1, 2026) and for all subsequent Rate Years, the amount of the Residential Vehicle Impact Fee shall be adjusted annually to reflect the change in the average annual CPI for the twelve (12) month period ending December as calculated in Section 10.4.3. If there is no increase in the CPI or if the CPI decreases, the Residential Vehicle Impact Fee shall remain unchanged from the previous Rate Year. 7.4 RESIDENTIAL STREET SWEEPING FEE Contractor shall pay a Residential Street Sweeping Fee of One Hundred Seventy-Five Thousand dollars ($175,000) annually as adjusted herein. The purpose of the Residential Street Sweeping Fee is to reimburse the City for the cost of sweeping residential streets. The Residential Street Sweeping Fee shall be paid in monthly installments over the course of each Rate Year. The initial monthly payments shall be Fourteen Thousand Five Hundred Eighty-Three dollars and Thirty-Three cents. ($14,583.33) due under the terms of Section 7.6. The foregoing notwithstanding, beginning with Rate Year 2 (July 1, 2026) and for all subsequent Rate Years, the amount of the Residential Vehicle Impact Fee shall be adjusted annually to reflect the change in the average annual CPI for the twelve (12) month period ending December as calculated in Section 10.4.3. If there is no increase in the CPI or if the CPI decreases, the Residential Street Sweeping Fee shall remain unchanged from the previous Rate Year. 7.2.a Packet Pg. 527 ADDENDUM #1 City of Diamond Bar – DRAFT 68 June 12, 2023 7.5 CONTRACTING FEE Contractor shall make a one-time lump sum payment of One Hundred Thousand Dollars ($100,000) within seven (7) Business Days of execution of this Contract to reimburse the City for costs it incurred in connection with entering into this Agreement. 7.6 TIME AND METHOD OF FEE PAYMENTS TO THE CITY On or before the thirtieth (30th) day month following the end of calendar month, during the Term of this Agreement, Contractor shall remit to City The Franchise Fee, CalRecycle Compliance Fee, Residential Vehicle Impact Fee, and Residential Street Sweeping Fee as described in section 7.1 through 7.4. The fee payments shall be submitted with an itemized statement identifying the amount of each fee. If the fees are not paid to the City on or before the thirtieth (30th) day following the end of the calendar month, Contractor shall pay to City a penalty in an amount equal to ten percent (10%) of the amount of each delinquent fee, or portion thereof, owing for that month. Contractor shall pay an additional ten percent (10%), on any unpaid balance for each following thirty (30) day period the fees remain unpaid. Late payment penalties shall not be included in any revenue requirement. Each monthly Franchise Fee remittance to City shall be accompanied by a statement detailing Gross Receipts from Customers billed by Contractor for the period covered from all operations conducted or permitted, pursuant to this Agreement. In addition, Contractor shall maintain copies of all Billing and Collection records for five (5) years, following the date of billing, for inspection and verification by City at any reasonable time upon request. Each Franchise Fee payment shall be accompanied by the following certification which shall be executed by an officer of the Contractor: “I hereby certify that the foregoing statement of the payment to the City is made by me, that I am authorized to make such payment of the amount of the payment due, and that to the best of my knowledge and belief, the amount of the payment is true, correct and complete.” ARTICLE 8: RECORDS, REPORTS AND INFORMATION REQUESTS 8.1 GENERAL Contractor shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, Contractor agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with Applicable Laws and regulation and to meet the reporting and Solid Waste program management needs of City. To this extent, such requirements set out in this and other Articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this Article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and 7.2.a Packet Pg. 528 ADDENDUM #1 City of Diamond Bar – DRAFT 69 June 12, 2023 their content. Further, with the written direction or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency. 8.2 RECORDS 8.2.1 GENERAL Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft, and earthquake. Electronically maintained data/records shall be protected and backed up. All records shall be maintained for five (5) years, and shall continue to be available for five (5) years after the expiration of this Agreement. After minimum holding periods are met, Contractor will notify City 90 days before destroying records and offer records to the City. City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its Affiliates that City shall deem, in its sole discretion, necessary to evaluate annual reports, and Contractor' s performance provided for in this Agreement. Contractor agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to City and its official representatives during normal business hours. Account histories shall be accessible to the City by computer for a minimum of five (5) years after termination of the Agreement. Contractor shall make all records and documents to be reviewed and inspected by City as a part of any audit or other record review conducted by City, available for City' s review, inspection and copying within five (5) days of receiving written notice from City requesting the same. Additionally, City may review records at Contractor' s local facility during normal business hours, within five (5) days of request during normal business hours. Such records include, but are not limited to, financial, Solid Waste, CERCLA and Disposal records. 8.2.2 FINANCIAL RECORDS Contractor shall maintain financial records and expense and revenue information pursuant to its operations pursuant to this Agreement shall be segregated from other areas served by Contractor. Contractor shall maintain at least the following records: x Audited financial statements for Contractor or, if a guarantee was provided, for the parent company guarantor as a whole; x Financial statements (compiled, reviewed, or audited) of revenue and expense for this Agreement segregated from the other operations of Contractor (including without limitation 7.2.a Packet Pg. 529 ADDENDUM #1 City of Diamond Bar – DRAFT 70 June 12, 2023 those operations of Contractor in City and surrounding jurisdictions which are not covered by this Agreement), including a description of segregation methodology; and, x Complete descriptions of related party transactions (corporate and/or regional management fees, inter-company profits from Transfer, Processing or Disposal operations and supporting data). 8.2.3 SOLID WASTE RECORDS Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement: A. Customer services, billing, and City payment records; B. Tons Collected, Processed, Diverted, and Disposed by waste stream (Refuse, Recycling, Organics), by Customer type (Cart, Residential Bin, Commercial and Roll-Off Box), and facilities (Transfer Station, MRF, Organic Material Processing Facility, Transformation Facility or Landfill) where such material was taken (Residential Bin versus Commercial Bin tonnage may be estimated based upon Container distribution or other method approved by City); C. Quantity of Recyclable Materials recovered by material type; D. Bulky Item, results including tons Disposed and Diverted; E. Special Events tons including tons Disposed and Diverted; F. Routes; G. Facilities, equipment and personnel used; H. Facilities and equipment operations, maintenance and repair; I. Number of Refuse, Recycling and Organics Containers in service; J. Complaints; and, K. Missed pickups. Contractor shall maintain copies of said Billings and receipts, each in chronological order, for a period of five (5) years after the date of service and shall make said documents available for inspection by City upon request. Contractor may, at its option, maintain those records in computer form, on microfiche, or in any other manner, provided that the records can be preserved and retrieved for inspection and verification in a timely manner, are sufficient to verify accuracy of any Fees owed to the City, and may be produced in a form and manner sufficient to establish the existence of Customer obligations in a court of competent jurisdiction. 8.2.4 CERCLA DEFENSE RECORDS City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), State Hazardous Substance Law, and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the 7.2.a Packet Pg. 530 ADDENDUM #1 City of Diamond Bar – DRAFT 71 June 12, 2023 City was taken for Disposal, as well as where it was not taken, to be matters of concern. Contractor shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was Landfilled (and therefore establish where it was not Landfilled) and provide a copy or summary of the reports required in Section 8.3 for five (5) years after the term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to City. Contractor agrees to notify City’s Manager and City Attorney before destroying such records and to offer records to the City. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. 8.2.5 OTHER PROGRAMS’ RECORDS Records for other programs shall be tailored to specific needs. In general, they shall include: A. Plans, tasks, and milestones; and, B. Accomplishments in terms such as dates, activities conducted, quantities of products used, produced, or distributed, and numbers of participants and responses. 8.2.6 AUDIT City may conduct an audit of Contractor at any time. The scope of the audit, and auditing party, will be determined by City and the scope may include, but is not limited to: A. Extraordinary rate adjustment request; B. Compliance with terms of this Agreement; C. Customer service levels and Billing; D. Fee payments; E. Gross Receipts; F. Tonnage; G. Complaint log; H. Compliance with Mandatory Commercial Recycling, Mandatory Commercial Organics, and SB 1383; and I. Verification of Diversion rate. The first audit, to be performed during calendar year 2027, will be based on the Contractor' s reports and records from the start of the Agreement through calendar year 2026. Audits may be performed every third year thereafter (the triennial audit) and will be based on the period from the end of the previous audit through the end of the calendar year before the year in which the audit is to be performed. 7.2.a Packet Pg. 531 ADDENDUM #1 City of Diamond Bar – DRAFT 72 June 12, 2023 Contractor will reimburse the City the cost of such audits (including audits conducted by City staff) as shown in the following table. Audit Performed Audit Amount 2027 $90,000 2030 $98,000 2033 $108,000 Audit payments from the Contractor to the City are due January 1 of year the audit is being performed. Should the Agreement be extended beyond the extension terms as described in Section 2.5, the audits shall continue every third year, and each additional audit amount shall be increased by ten- thousand dollars ($10,000) per audit period for audits conducted after 2035. Should an audit conducted or authorized by the City disclose that Franchise or other fees payable by the Contractor were underpaid by two percent (2%) or more, or that tonnage was mis-reported by 2% or more, or that more than 2% of the Customers were inaccurately billed, for the period under review, City may expand the scope of the audit and Contractor shall pay for additional audit costs. 8.2.7 PAYMENTS AND REFUNDS Should an audit by the City disclose that any of the City fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of City fees and/or refund to Contractor's Customers any overcharges within sixty (60) days following the date of the audit. Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of 6%. Undercharges shall not be billed in arrears for more than ninety (90) days of service, with any remaining undercharges absorbed by Contractor. Should an audit disclose that fees were overpaid, City shall credit such amounts against future fees payable by Contractor with interest of 6%. 8.3 REPORTS Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Reports are intended to compile recorded data into useful forms of information that can be used to, among other things: 7.2.a Packet Pg. 532 ADDENDUM #1 City of Diamond Bar – DRAFT 73 June 12, 2023 x Determine and set rates and evaluate the efficiency of operations; x Evaluate past and expected progress toward achieving AB 939 goals and objectives; x Determine needs for adjustment to programs; and, x Evaluate Customer service and complaints. Contractor may propose report formats that are responsive to the objectives and audiences for each report. The format of each report requires approval by City. The Contractor agrees to submit all reports by electronic means in a format compatible with City’s software/computers at no additional charge, if requested by City. Contractor will provide a certification statement, under penalty of perjury, by an authorized Contractor official, that the report being submitted is true and correct. Monthly and Quarterly reports shall be submitted within 30 calendar days after the end of the reporting period. Annual reports shall be submitted within sixty (60) days following the reporting year. If requested, Contractor’s complaint summary, shall be sent to the City Administrator within five days of request. All reports shall be submitted electronically and in an electronic format compatible with City’s software/computers, at no additional charge, to City Manager and / or other City staff designated by the City Manager at e-mail addresses to be provided by City. City may additionally request hard copies, which would be delivered to: City Manager (or designated representative) City of Diamond Bar 21810 Copley Driver Diamond Bar, CA 91765 8.3.1 MONTHLY REPORTS A. Solid Waste Collected by Contractor for each month, sorted by type of Solid Waste (Refuse, Recyclable and Organic Materials) and type of Customer (Residential Curbside Service, Commercial, or Roll-Off Box Service) in tons, and the facilities where the tons were Processed or Disposed. Bulky Waste items shall be reported as a separate line item. This report is to be submitted in Microsoft Excel, or another software as requested by City. B. Number of Warning notices issued for contaminated Recyclable and Organics Containers, and HHW improperly placed for Collection. C. Narrative summary of problems encountered and actions taken with recommendations for City, as appropriate. D. HHW Collected. E. Customer complaint logs as described in Section 6.2.3. 8.3.2 QUARTERLY REPORTS The information listed shall be the minimum reported: 7.2.a Packet Pg. 533 ADDENDUM #1 City of Diamond Bar – DRAFT 74 June 12, 2023 A. Copies of promotional and public education materials sent during the quarter. B. Commercial recycling and organics site visits summary, including the name and address of Customer, the date of the visit and the contact name and phone number, demonstrating that the required visits have been made, and reason provided for not establishing a recycling or organics program, in accordance with Sections 3.3.4. The site visit summary will be completed on forms approved by the City. C. List of Customers that are required to participate in an Organics Recycling program per Public Resources Code Section 42649.81. D. List of Commercial and Multi-Family Premises Customers that do and do not participate in an Organics program, whether the Organics program is provided by Contractor or another party, and whether the program is for Food Waste and/or Yard Waste (such as a landscaper that composts or otherwise Diverts Organic Materials). E. Commercial and Multi-Family Customers participating in food recovery programs. F. Commercial and Multi-Family Customers using third-party recycling. G. Additional information that may be requested by CalRecycle or City related to Recycling and Organics programs. 8.3.3 ANNUAL REPORTS The Annual Report is to be essentially in the form and content of the monthly and quarterly reports combined, but shall also include: A. A complete inventory of equipment used to provide all services (such as vehicles and Containers by size and waste stream type Container is used for). B. Results of route audits. C. Number of routes and route hours per day by type of service. D. Copy of Hazardous Waste Diversion records showing types and quantities, if any, of Hazardous Waste that was inadvertently Collected, but Diverted from Landfill Disposal. E. Copies of all public education and outreach distributed during the reporting year including the date of distribution. F. A narrative summary of all City-sponsored, civic, and school events attended. G. Copies of invoices documenting the amount of RNG used to provide services in the City. If routes are commingled with other jurisdictions, Contractor must use an allocation method to quantify the City’s allocated amount. 7.2.a Packet Pg. 534 ADDENDUM #1 City of Diamond Bar – DRAFT 75 June 12, 2023 8.3.4 FINANCIAL REPORTS The City may, at City’s option, request the Contractor's audited financial reports/statements (or parent company, if parent company submits Corporate Guaranty of Performance), and Contractor’s internally prepared supplemental statement of income and expenses related specifically to the City Diamond Bar operations, for the most recently completed fiscal year in connection with an extraordinary rate adjustment request, billing audit, Franchise Fee audit, or verification of other information required under this Agreement. The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and audited, in accordance with Generally Accepted Auditing Standards (GAAS) by a certified public accountant (CPA) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost for preparation of the financial statements and audit shall be borne by Contractor as a direct cost of service. In addition, Contractor shall provide to City the supplemental schedule on a compiled basis showing Contractor's results of operations, including the specific revenues and expenses in connection with the operations provided for in this Agreement, separated from others included in such financial statements. 8.4 REPORTING ADVERSE INFORMATION Contractor shall provide City two copies (one to the City Administrator, one to the City Attorney) of all reports, pleadings, applications, notifications, Notices of Violation, communications or other material relating specifically to Contractor’s performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States or California Environmental Protection Agency, CalRecycle, the Securities and Exchange Commission or any other federal, state or local agency, including any federal or state court. Copies shall be submitted to City simultaneously with Contractor’s filing or submission of such matters with said agencies. Contractor’s routine correspondence to said agencies need not be routinely submitted to City, but shall be made available to City promptly upon City’s written request. 8.5 RIGHT TO INSPECT RECORDS City shall have the right to inspect or review the specific documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor or its related party entities that City shall deem, in its reasonable discretion, necessary to evaluate annual reports, compensation applications provided for in this Agreement and Contractor's performance provided for in this Agreement. Contractor shall make all records and documents to be reviewed and inspected by the City as a part of any audit or other record review conducted by the City, available for the City’s review, inspection and copying within five business days (excluding Saturday, Sunday and Designated Holidays) of receiving written notice from the City requesting the same. 7.2.a Packet Pg. 535 ADDENDUM #1 City of Diamond Bar – DRAFT 76 June 12, 2023 8.6 FAILURE TO REPORT The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject Contractor to all remedies which are available to the City under the Agreement, the City of Diamond Bar Municipal Code, or otherwise. ARTICLE 9: REVIEW OF SERVICES AND PERFORMANCE 9.1 PERFORMANCE REVIEW MEETING City may hold a meeting annually to review Contractor's Solid Waste Collection efforts, source reduction, Processing and other Diversion services and overall performance under this Agreement (the " Solid Waste Services and Performance Review Meeting"). The purpose of the Solid Waste Services and Performance Review Meeting is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, Processing and Disposal to achieve a continuing, advanced Solid Waste Collection, source reduction and Recycling and Disposal system; and to ensure services are being provided with adequate quality, effectiveness and economy, and in full compliance with the terms of this Agreement. Topics for discussion and review at the Solid Waste Services and Performance Review Meeting shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939's goals, regulatory constraints, results of route audits, and Contractor performance. City and Contractor may each select additional topics for discussion at any Solid Waste Services and Performance Review Meeting. City shall notify Contractor of its intent to hold a Solid Waste Services and Performance Review Meeting at least sixty (60) days in advance thereof. Thirty (30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as it wishes to have considered, and shall contain the following: A. Current Diversion rates and a report on Contractor' s outreach activities for the past year. B. Recommended changes and/ or new services to improve City' s ability to meet the goals of AB 939 and to contain costs and minimize impacts on rates. A specific plan for AB 939 compliance shall be included. C. Any specific plans for provision for new or changed services by Contractor. The reports required by this Agreement regarding Customer complaints shall be used as one basis for review of Contractor' s performance, and Contractor may submit other relevant performance information and reports for consideration at the Solid Waste Services and Performance Review 7.2.a Packet Pg. 536 ADDENDUM #1 City of Diamond Bar – DRAFT 77 June 12, 2023 Meeting. In addition to the above, City may request Contractor to submit any other specific information relating to its performance for consideration at the Solid Waste Services and Performance Review Meeting, and any Customer may submit comments or complaints during or before the Meeting, either orally or in writing. Contractor shall be present at and participate in the Solid Waste Services and Performance Review Meeting. As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies ( although nothing contained in this provision should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to the terms hereof.) Should City require expanded or new services as a remedy for Contractor' s failure to perform its obligations hereunder, no additional compensation shall be due for such services. Otherwise, any new or expanded services required of Contractor shall be subject to the provisions of Section 2. 10. 9.2 PERFORMANCE SATISFACTION SURVEY If requested by the City, Contractor will create and conduct a survey at Contractor' s expense. If City would like to present results at a Solid Waste Services and Performance Review Meeting, City shall notify Contractor of its desire for such a survey at least 90 days in advance of the Solid Waste Services and Performance Review Meeting. The purpose of the survey is to determine Customer satisfaction with current Collection services and Customer service provided by Contractor. The Survey will be distributed to one hundred percent (100%) of the Customers. Contractor shall obtain City' s approval of the survey' s content, format, and mailing list prior to its distribution. City may require that Contractor have Customer responses to the survey returned directly to City. The survey results shall be made available to the City thirty (30) days prior to the Solid Waste Services and Performance Review Meeting. ARTICLE 10: CONTRACTOR COMPENSATION AND MAXIMUM SERVICE RATES 10.1 CONTRACTOR COMPENSATION The maximum approved rates set forth in Exhibit 1, as more fully defined as Contractor Compensation in this Article, shall be the maximum amount that the Contractor may charge Customers, as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, fees or surcharges due to the City as applicable, taxes, insurance, bonds, letters of credit, overhead, Disposal, Transfer, Processing, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. From time to time, Customers may request services for which a rate is not provided in Exhibit 1. In such cases, Contractor shall so advise the Contract Administrator and the Customer and Contractor 7.2.a Packet Pg. 537 ADDENDUM #1 City of Diamond Bar – DRAFT 78 June 12, 2023 shall negotiate a rate for the requested services. If agreement cannot be reached, the matter shall be referred to the Contract Administrator for establishment of the rate. Approved rates for requested services shall be included in Exhibit 1 in the next Rate Year. The Contractor shall impose no other charges for services provided under this Agreement to Customers unless approved in advance in writing by the City Manager. 10.2 INITIAL RATES The rates beginning September 1, 2025 and ending June 30, 2026 shall not exceed those set forth in Exhibit 1 hereto, unless amended by a written amendment to this Agreement entered into by and between the City and the Contractor. Contractor has reviewed these maximum rates and agrees they are reasonably expected to generate sufficient revenues to provide adequate Contractor Compensation. Unless and until the maximum rates set forth on Exhibit 1 are adjusted, Contractor will provide the services required by this Agreement, charging no more than the maximum rates authorized by Exhibit 1, except as provided herein and in Section 10.3. 10.3 SCHEDULE OF FUTURE ANNUAL RATE ADJUSTMENTS Beginning with Rates Year starting July 1, 2026 and ending on June 30, 2027 and for all subsequent Rate Years, Contractor may request an annual adjustment to the maximum rates shown in Exhibit 1. The Contractor shall submit its request in writing, to be received by City in Person or via certified mail, by the preceding March 31, and shall be based on the method of adjustment described in Section 10.4. All future adjustments are to be effective July 1 of the same calendar year, following the March 31 submission deadline. The City shall consider a failure to submit a written request by March 31 as Contractor's determination not to seek an adjustment and shall constitute a waiver by Contractor of its right to request such an increase for the subsequent Rate Year. However, the City reserves the right to initiate a rate adjustment in instances where the Contractor fails to submit a written rate adjustment request. Adjustment to the maximum rates is subject to the approval of the City Manager. If an annual adjustment that would have resulted in a rate decrease is not implemented for any reason, the next rate adjustment will be measured based on the change in indices from the last implemented rate adjustment; the intent is to ensure subsequent rate increases shall be offset with any decrease not previously implemented. Any rate adjustment percentage calculated using the procedure described in Section 10.4 resulting in a rate adjustment percentage greater than 5% in any Rate Year shall be capped at 5%. Any percentage amount over 5% or portion thereof in any one Rate Year will be carried over into any future Rate Year with a rate adjustment of less than 5%. 10.4 METHOD OF ADJUSTMENTS Pursuant to Section 10.3, the Contractor may request an adjustment to the maximum rates for all 7.2.a Packet Pg. 538 ADDENDUM #1 City of Diamond Bar – DRAFT 79 June 12, 2023 rates using the Excel worksheet entitled Exhibit 2 Rate Adjustment Procedure, subject to review and approval of the City. Exhibits 2A through 2D provide examples from the Excel worksheet. Exhibit 2E provides examples for calculating the average annual changes in the public indices. The rate adjustment calculation shall be prepared by completing the separate tabs in the Excel worksheet; Tab 2A for Single-Family Cart Service, Tab 2B for Bin Service, TAB 2C for Roll-Off Box Service, and Tab 2D for Other Services. 10.4.1 PROCEDURE FOR SINGLE-FAMILY CART SERVICE AND BIN SERVICE The following procedure applies for both Tab 2A – Single Family Cart Service and Tab 2B – Bin Service. Step One: Calculate Collection Component Percentage Change. The Collection Cost Component shall be calculated based on the following Cost Categories and Indices. Cost Category Index Labor Driver rates based on labor agreement. Fuel Producer Price Index WPU05522101PPI – Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. Equipment Producer Price Index PCU33612-33612 – Industry data for Heavy duty truck manufacturing, not seasonally adjusted. All Other Consumer Price Index CUURS49ASA0L1E – All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. The following procedural steps for completing Step One in Tab 2A – Single-Family Carts and Tab 2B – Bin Service refer to the image above. AB CD E F Row Cost Category Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D)Index Source 1 Labor 26.250 27.040 3.0095% 25.000%0.75% Note 10 2 Fuel 230.298 299.751 30.1577% 5.000%1.51% 3 Equipment 153.450 156.743 2.1460% 20.000%0.43% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 27.000%1.56% 5 Total Collection Component 77.000% 4.247% STEP ONE: Calculate Collection Component Percentage Change 7.2.a Packet Pg. 539 ADDENDUM #1 City of Diamond Bar – DRAFT 80 June 12, 2023 1) In Column A, enter the “Previous Index Values” for each Cost Category. For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average values of the indices for the year ending December 2025. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. 2) In Column B, enter the "New Index Value" for each Cost Category. The “New Index Value” shall be the annual average values of the indices ending December of the prior year. 3) In Column D, enter the “Component Weightings” for each Cost Category. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based [BASED ON CONTRACTOR’S PROPOPSAL]. For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in Step 5. Step Two: Calculate Material Handling Component Index. The following procedural steps for completing Step Two in Tab 2A – Single-Family Carts and Tab 2B – Bin Service refer to the image above. 1) Post collection facilities [BASED ON CONTRACTOR’S PROPOSAL]. 2) For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be [BASED ON CONTRACTOR’S PROPOSAL]. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application. 3) For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be [BASED ON CONTRACTOR’S PROPOSAL]. GH I J K L Row Facilities 4 Prior Period Tonnage 5 Prior Period Gate Fees 6 Prior Period Material Handling Cost (COL G * COL H) 12 Month Period Ending December Tonnage 7 Gate Fees Effective December 8 Estimated Material Handling Cost (COL J * COL K) 6 Refuse [FACILTY NAME] 14,643.4 $75.00 1,098,255 14,643.4 $78.75 1,153,168 7 Recycling [FACILITY NAME] 3,640.1 $90.00 327,609 3,640.1 $94.50 343,989 8 Organics [FACILITY NAME] 7,040.9 $90.00 633,681 7,040.9 $94.50 665,365 9 Unused - - - 10 Totals 25,324 $2,059,545 25,324 $2,162,522 11 Prior Period Index Value (G11 / I11) >> $81.3265 New Index Value (J11 / L11) >> $85.3928 STEP TWO: Calculate Material Handling Component Index 7.2.a Packet Pg. 540 ADDENDUM #1 City of Diamond Bar – DRAFT 81 June 12, 2023 For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fees" values shall be the values from previous year's rate application. 4) The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12-month period ending December 31st. 5) The "Gate Fees" values shall be [TO BE NEGOTIATED BASED ON CONTRACTOR’S PROPOSAL.] Step Three: Calculate Percentage Change in Weighted Material Handling Component Index. The following procedural steps for completing Step Three in Tab 2A – Single-Familyl Carts and Tab 2B – Bin Service refer to the image above. 1) Calculate the percentage change in the index and multiply by component weighting. 2) For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based [BASED ON CONTRACTOR’S PROPOPSAL]. For Subsequent rate adjustment applications, "Component Weightings" shall be as calculated in Step 5. Step Four: Calculate The Permitted Percentage Rate Change. The following procedural steps for completing Step Four in Tab 2A – Single-Family Carts and Tab 2B – Bins Service refer to the image above. 1) Column R, Row 15 is the total percentage rate adjustment by summing the Collection Component and the Material Handling Component. MN OP Q Row Cost Category Previous Index Value (COL I, ROW 11) New Index Value (COL K, ROW 11) Percent Change in Index (COL N - COL M) / COL M Component Weighting 3 Weighted Percentage Change 12 Material Handling Component 81.3265 85.3928 5.0000% 23.00%1.15% STEP THREE: Calculate Percentage Change in Weighted Material Handling Index RS TU V Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL R + COL S) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL T - COL U) 13 Collection Component 4.2470% 14 Material Handling Component 1.1500% 15 Total 5.3970% 0.0000% 5.3970% 0.3970% 5.0000% STEP FOUR: Calculate the Permitted Percentage Rate Change 7.2.a Packet Pg. 541 ADDENDUM #1 City of Diamond Bar – DRAFT 82 June 12, 2023 2) Any Allowed Carry Over percentage from prior period(s) may be entered into Column S, Row 15. 3) Column T, Row 15 represents the total Rate Adjustment. 4) The percentage amount above the maximum 5% is calculated in Column U, Row 15. 5) Column V, Row 15 calculated the Permitted Percentage Rate Adjustment. Step Five: Calculate Cost Component Weightings For Future Rate Adjustment Calculations. Under Tab 2A – Single-Family Carts and Tab 2B – Bins Service, the component weights are automatically reset to equal 100% for use in the subsequent rate adjustment. Step Six: Calculate The Adjusted Rate. The following procedural steps for completing Step Six in Tab 2A – Single-Family Carts and Tab 2B – Bins Service refer to the image above. 1) Column AB, Row 22 and as many subsequent rows are required, enter the rates for each service provided under the franchise agreement. WX T Z AA Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (W * X) Cost Component Increased (W + T) Cost Components Reweighted to Equal 100% for Future Adjustments 16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.9302% 17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0234% 18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8802% 19 Other (Except Material Handling) 27.0000% 1.5576% 0.4205% 27.421%27.1398% 20 Material Handling Component 23.0000% 1.1500% 0.2645% 23.265% 23.0263% 21 Total 100.00% 5.40% 1.03% 101.03% 100.00% STEP FIVE: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation AB AC AD AE Row Rate Category Current Rate Permitted Percentage Change (from Row 15 Column V) Rate Increase or Decrease (Column AB x Column AC) Adjusted Rate (Column AB + Column AD) 22 25.00$ 5.0000% 1.25 26.25$ 23 25.00$ 5.0000% 1.25 26.25$ 24 25.00$ 5.0000% 1.25 26.25$ STEP SIX: Calculate the Adjusted Rate 7.2.a Packet Pg. 542 ADDENDUM #1 City of Diamond Bar – DRAFT 83 June 12, 2023 2) Column AC represents the permitted percentage rate change. 3) Column AD represents the applicable rate increase or decrease. 4) Column AE represents the adjusted rate. 10.4.2 PROCEDURE FOR ROLL-OFF BOX SERVICE The following procedure applies for Tab 2C – Roll-Off Box Service. Step One: Calculate Collection Component Percentage Change. The Collection Cost Component shall be calculated based on the following Cost Categories and Indices. Cost Category Index Labor Driver rates based on labor agreement. Fuel Producer Price Index WPU05522101PPI – Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. Equipment Producer Price Index PCU33612-33612 – Industry data for Heavy duty truck manufacturing, not seasonally adjusted. All Other Consumer Price Index CUURS49ASA0L1E – All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. The following procedural steps for completing Step One in Tab 2C – Roll-Off Box Service refer to the image above. 1) In Column A, enter the “Previous Index Values” for each Cost Category. For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average values of the indices for the year ending December 2024. AB C D EF Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D) Index Source 1 Labor 26.250 27.040 3.0095% 30.000%0.90% Note 5 2 Fuel 230.298 299.751 30.1577% 6.000%1.81% 3 Equipment 153.450 156.743 2.1459% 25.000%0.54% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 39.000%2.25% 5 Total Collection Component 100.000% 5.499% STEP ONE: Calculate Collection Component Percentage Change 7.2.a Packet Pg. 543 ADDENDUM #1 City of Diamond Bar – DRAFT 84 June 12, 2023 For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. 2) In Column B, enter the "New Index Value" for each Cost Category. The “New Index Value” shall be the annual average values of the indices ending December of the prior year. 3) In Column D, enter the “Component Weightings” for each Cost Category. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based [BASED ON CONTRACTOR’S PROPOPSAL]. For Subsequent rate adjustment applications, "Component Weightings" shall be as calculated in Step 5. Step Two: Calculate The Permitted Percentage Rate Change. The following procedural steps for completing Step Four in Tab 2C – Roll-Off Box Service refer to the image above. 1) Column G, Row 5 is the total percentage rate adjustment. 2) Any Allowed Carry Over percentage from prior period(s) may be entered into Column H, Row 5. 3) Column I, Row 5 represents the total Rate Adjustment. 4) The percentage amount above the maximum 5% is calculated in Column J, Row 5. 5) Column K, Row 5 calculated the Permitted Percentage Rate Adjustment. GH I J K Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL G + COL H) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL I - COL H) 6 Collection Component 5.4986% 0.0000% 5.4986% 0.4986% 5.0000% STEP TWO: Calculate the Permitted Percentage Rate Change 7.2.a Packet Pg. 544 ADDENDUM #1 City of Diamond Bar – DRAFT 85 June 12, 2023 Step Three: Calculate Cost Component Weightings For Future Rate Adjustment Calculations. Under Tab 2C – Roll-Off Box, the component weights are automatically reset to equal 100% for use in the subsequent rate adjustment. Step Four: Calculate Cost Component Weightings For Future Rate Adjustment Calculations. The following procedural steps for completing Step Four in Tab 3A – Roll-Off Box Service refer to the image above. 1) In Column Q, Row 12 and as many subsequent rows are required, enter the rates for each service provided under the franchise agreement. 2) Column R represents the permitted percentage rate change. 3) Column S represents the applicable rate increase or decrease. 4) Column T represents the adjusted rate. LMN O P Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (L * M) Cost Component Increased (L + N) Cost Components Reweighted to Equal 100% for Future Adjustments 7 Labor 30.0000% 0.9029% 0.2709% 30.271% 29.8556% 8 Fuel 6.0000% 1.8095% 0.1086% 6.109% 6.0248% 9 Equipment 25.0000% 0.5365% 0.1341% 25.134% 24.7893% 10 Other (Except Material Handling) 39.0000% 2.2498% 0.8774% 39.877%39.3304% 11 Total 100.00% 5.50% 1.39% 101.39% 100.00% STEP THREE: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation QR S T Row Rate Category Current Rate Total Weighted Percentage Change (from Row 6 Column K) Rate Increase or Decrease (Column Q x Column R) Adjusted Rate (Column Q + Column S) 12 225.00$ 5.0000% 11.25 236.25$ 13 225.00$ 5.0000% 11.25 236.25$ 14 225.00$ 5.0000% 11.25 236.25$ STEP FOUR: Calculate the Permitted Rate Change 7.2.a Packet Pg. 545 ADDENDUM #1 City of Diamond Bar – DRAFT 86 June 12, 2023 10.4.3 PROCEDURE FOR OTHER SERVICES The following procedure applies for Tab 2D – Other Services. Rates for other services shall be based on changes in the Consumer Price Index CUURS49ASA0L1E – All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. 1) In Column A, enter the “Previous Index Values” for each Cost Category. For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average values of the indices for the year ending December 2024. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. 2) In Column B, enter the "New Index Value" for each Cost Category. The “New Index Value” shall be the annual average values of the indices ending December of the prior year. 3) Any Allowed Carry Over percentage from prior period(s) may be entered into Column D. 4) Column E represents the total Rate Adjustment. 5) The percentage amount above the maximum 5% is calculated in Column F. 6) Column G is the Permitted Percentage Rate Adjustment. 10.5 EXTRAORDINARY RATE ADJUSTMENTS Contractor or City may request an adjustment to maximum rates at reasonable times other than that allowed under Section 10.3 in the event of extraordinary changes in the cost of providing service under this Agreement. Such changes shall not include changes in the market value of Recyclables from the values assumed in Contractor’s Proposal, inaccurate estimates by the Contractor of its proposed cost of operations, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based on changes in a direct per ton fee assessed at the Disposal Site by federal, state, or local regulatory agencies after the effective date. AB C D E F G Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL C + COL D) Maximum 5% any Rate Year (Next Period Caryover) Total Permitted Percentage Rate Adjustment (COL E - COL F) 1 CPI 288.798 305.458 5.7687%0.0000% 5.7687% 0.7687% 5.0000% STEP ONE: Calculate Percentage Change in Index 7.2.a Packet Pg. 546 ADDENDUM #1 City of Diamond Bar – DRAFT 87 June 12, 2023 Contractor shall provide substantial proof and justification to support the need for the adjustment. For each request for an adjustment to the maximum rates brought pursuant to this section, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three years for the services provided under this Agreement. The City may request from the Contractor such further information as it deems necessary to fully evaluate the request and make its determination. Upon request by the City, Contractor shall provide a report of its annual revenues and expenses for the services provided in the City, and City shall have the right to audit this information in connection with the City’s review of Contractor’s rate adjustment request. City may consider increases or decreases in the Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. The City may, in its sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. Extraordinary rate adjustments shall only be effective after approval by City Council in compliance with California Constitution Article XIIID (Proposition 218) and the Proposition 218 Omnibus Implementation Act (Govt. Code Sections 53750 et. seq.) and may not be applied retroactively. A rate adjustment request made in response to a new service requested by City will be determined in accordance with Section 2.10. ARTICLE 11: INDEMNIFICATION, INSURANCE AND PERFORMANCE BOND 11.1 INDEMNIFICATION OF THE CITY 11.1.1 GENERAL To the maximum extent permitted by law, and without regard to the limits of any insurance coverage, Contractor agrees to indemnify, defend with counsel appointed by the City, protect and hold harmless the City, its representatives, officers, agents and employees, volunteers, and assignees (collectively, “Indemnitees”), from and against any and all causes of action, claims, fines, assessments, costs (including but not limited to reasonable attorneys’ and expert witness fees), losses, damages, penalties, forfeitures, demands, proceedings or suits, in law or in equity, of every kind and description, including, but not limited to, injury to and death of any Person and damage to property, injunctive relief, obligations, errors, omissions or liabilities, (“claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with (i) violations of the commerce clause of the U.S. Constitution, AB 939, the Comprehensive Environmental Response, Compensation and Liability Act, Title 42 U.S.C. §9601 et seq. (“CERCLA”), HSAA, RCRA, any 7.2.a Packet Pg. 547 ADDENDUM #1 City of Diamond Bar – DRAFT 88 June 12, 2023 other Hazardous Waste laws, other federal, state or local statutes or regulations, or municipal ordinances, which arise from, challenge any validity of, or relate to the award of, this Agreement; (ii) the negligent performance of the work or services of Contractor, its agents, employees, subcontractors, or invitees, provided for in this Agreement; (iii) the negligent acts or omissions of Contractor hereunder, or arising from Contractor's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, whether or not there is concurrent passive or active negligence, on the part of the City, its representatives, officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful misconduct of the City, its representatives, officers, agents or employees, who are directly responsible to the City, (iv) actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement, including but not limited to any challenge brought by referendum or under Proposition 218 (Calif. Const. Art. XIIID) to challenge the City’s entry into this Agreement or the setting of Solid Waste rates as set forth in this Agreement; and in connection therewith: A. Contractor will defend any action or actions filed in connection with any of said claim or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith; B. Contractor will promptly pay any judgment rendered against the City, its officers, agents, or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work or services of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents and employees harmless therefrom; C. In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work or services of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees. Contractor's obligations hereunder shall survive the termination or expiration of this Agreement. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 11.1.2 HAZARDOUS MATERIAL INDEMNIFICATION A. Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Contractor specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold Indemnitees harmless from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, 7.2.a Packet Pg. 548 ADDENDUM #1 City of Diamond Bar – DRAFT 89 June 12, 2023 penalties and any and all other losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Contractor that: 1. Results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as defined herein); or 2. Relates to material Collected, Transported, Recycled, Processed, treated or Disposed of by Contractor. B. Contractor’s obligations pursuant to this section shall apply, without limitation, to: 1. Any Claims brought pursuant to or based on the provisions of any Environmental Law; 2. Any Claims based on or arising out of or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance, or operation of Contractor of any Facility; 3. Any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, Transportation, Disposal, Processing, or use of any materials recovered by Contractor; 4. Any Claims based on or arising out of or alleged to be arising out of any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement. C. The foregoing indemnity and defense obligations shall apply irrespective of the negligence or willful misconduct of Contractor or any Affiliate of Contractor. D. For purposes of this section, the term "Hazardous Contaminant" shall mean any Hazardous Material any crude oil or refined or unrefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestos-containing material. The term "Hazardous Contaminant" shall also include any and all amendments to any referenced statutory or regulatory provisions made before or after the date of execution of this Agreement. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT 11.1.3 AB 939 INDEMNIFICATION AND GUARNATEE Contractor unconditionally guarantees compliance with the requirements of AB 939 as amended from time to time. Contractor shall carry out its obligations under this Agreement so that the City will meet or exceed the Diversion requirements set forth in AB 939, and all amendments thereto more 7.2.a Packet Pg. 549 ADDENDUM #1 City of Diamond Bar – DRAFT 90 June 12, 2023 fully set forth below. City and Contractor shall reasonably assist each other to meet the City's AB 939 Diversion requirements. In carrying out the provisions of this Section, Contractor agrees to perform the following obligations at its cost and expense: A. Defend, with counsel approved by City, indemnify and hold harmless the City against all fines and/or penalties imposed by the CalRecycle, if Contractor fails or refuses to provide information relating to its operations which is required under this Agreement and such failure or refusal prevents or delays City from submitting reports required by AB 939 in a timely manner; B. Assist City in preparing for, and participating in, CalRecycle's biannual review of the City's source reduction and recycling element pursuant to Public Resources Code Section 41825; C. Assist City in responding to inquiries from CalRecycle in applying for an extension under Public Resources Code Section 41820, if so directed by City; in conducting any hearing conducted by CalRecycle relating to AB 939; or in any other investigative or enforcement manner undertaken by any agency; D. Defend, with counsel acceptable to City, and indemnify and hold harmless the City against any fines or penalties levied against it for violation of AB 939's Diversion requirements, provided that Contractor's obligation to indemnify City shall be subject to the limitations set forth in Public Resources Code Section 40059.1(c) as may be amended from time to time; E. In cooperating with the City, should it seek to become its own enforcement agency, to the extent it may be permitted under state law. 11.1.4 CALRECYCLE INDEMNIFICATION Contractor’s duty to defend and indemnify herein includes payment of all fines and/or penalties imposed by CalRecycle, subject to the restrictions set forth in Public Resources Code Section 40059.1, if the requirements of AB 939, AB 341, AB 1826, and/or SB 1383 and corresponding regulations are not met by the Contractor with respect to the Discarded Materials Collected under this Agreement, and such failure is: (i) due to the failure of Contractor to meet its obligations under this Agreement, or, (ii) due to Contractor delays in providing information that prevents Contractor or City from submitting reports required by AB 939, AB 341, AB 1826, and/or SB 1383 and corresponding regulations in a timely manner. The provisions of this Section shall survive the termination or expiration of this Agreement. 11.2 EVALUATION OF LIABILITY The Contractor’s obligation to defend, hold harmless, and indemnify under Article 11 shall not be excused because of the Contractor’s inability to evaluate an Indemnitee’s liability or because the Contractor evaluates such liability and determines that the Indemnitee is not liable to the claimant. Within twenty (20) days of receiving written notice from the City of a claim for which the City is 7.2.a Packet Pg. 550 ADDENDUM #1 City of Diamond Bar – DRAFT 91 June 12, 2023 entitled to indemnity, the Contractor shall confirm to the City in writing that the Contractor will provide a defense to the claim and shall take appropriate actions to provide such defense. 11.3 SEPARATE COUNSEL The City may elect to have and consult separate legal counsel from the Contractor at any time during the pendency of any claim at its sole discretion. The City shall be responsible for paying its separate counsel unless: (i) the City reasonably determines and notifies Contractor that separate counsel is required to represent the City during the resolution of any claim; or (ii) a court of competent jurisdiction rules that the Contractor has refused to satisfy its obligations under this Article 11. Notwithstanding the preceding sentence or the first sentence of Article 11.1, with respect to a particular claim, if the Contractor confirms to the City in writing Contractor’s obligation to indemnify and defend the City, without reserving a right to later seek reimbursement from the City with respect to such claim, the City shall not object to the counsel representing it being the same counsel that represents Contractor in the defense of such claim and shall, if permitted by law, provide such written conflict-of-interest waiver as may be required for such joint representation. If the Contractor provides the aforementioned confirmation, but the City declines to consent to such joint representation, the City may retain its own counsel at its own expense, the City shall have no right of defense or reimbursement of defense costs with respect to such claim (but the City shall still be entitled to indemnity), the City shall reasonably cooperate with Contractor in the defense and settlement of such claim. If the Contractor does not provide the aforementioned confirmation, or if the Contractor provides such confirmation and the City is prohibited by law from providing such waiver, then the Contractor shall reimburse the City for the reasonable attorneys’ fees and costs of the City’s separate counsel with respect to such claim. 11.4 CONSIDERATION It is specifically understood and agreed that the consideration inuring to the Contractor for the execution of this Agreement consists of the promises, payments, covenants, rights and responsibilities contained in this Agreement and the consideration to the City are the Solid Waste Services Contractor shall perform pursuant to this Agreement. 11.5 OBLIGATION The execution of this Agreement by the Contractor shall obligate the Contractor to comply with the foregoing indemnification provisions; however, the collateral obligation of providing insurance must also be fully complied with as set forth in Article 11.8 below. 11.6 COLLECTION SERVICES SUBCONTRACTORS Any Subcontractor(s), independent contractor(s) or any type of agent(s) performing or hired to perform any term or condition of this Agreement on behalf of the Contractor, or as may be allowed by this Agreement, shall comply with each term and condition of this Agreement, including each term and condition of Article 11.8 entitled “INSURANCE” or a more appropriate level of coverage as 7.2.a Packet Pg. 551 ADDENDUM #1 City of Diamond Bar – DRAFT 92 June 12, 2023 determined by the City. This applies to subcontractors performing Collection services for City facilities. Furthermore, the Contractor shall be responsible for the Subcontractor’s acts, omissions and satisfactory performance of the terms and conditions of this Agreement. The Contractor shall require all Subcontractors performing Collection services under the terms of this Agreement to enter into an agreement containing the provisions set forth in this Article 11 in their entirety and Subcontractor shall fully indemnify the City in accordance with this Agreement. 11.7 SURVIVAL Contractor’s indemnity obligations shall survive the expiration or termination of this Agreement and continue until such obligations have been fully satisfied by the resolution of all claims for which indemnity obligations are owed to the City. 11.8 INSURANCE Contractor shall procure and maintain during the entire Term the following types of insurance, and shall maintain the following minimum levels of coverage, which shall apply to any claims which may arise from or in connection with Contractor' s performance hereunder or the actions or inactions of any of Contractor' s officers, agents, representatives, employees, or subcontractors in connection with Contractor' s performance. The insurance requirements hereunder in no way limit Contractor' s various defense and indemnification obligations, or any other obligations as set forth herein. A. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. The most recent editions of Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 00 01). 2. The most recent editions of Insurance Services Office form number CA 00 01 covering Automobile Liability, code 1 "any auto" and endorsement CA 00 25. 3. Workers' Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. B. Minimum Limits of Insurance. Contractor shall maintain in force for the term of this Agreement limits no less than: 1. Comprehensive General Liability: Ten Million Dollars ($10,000, 000) limit aggregate and Ten Million Dollars ($10,000,000) limit per occurrence for bodily injury, Personal injury and property damage. 2. Automobile Liability: Five Million Dollars ($5,000,000) single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California or provide evidence of State approval to be self- insured. Employers Liability in the minimum amount of One Million ($1,000, 000). C. Deductibles and Self -Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate 7.2.a Packet Pg. 552 ADDENDUM #1 City of Diamond Bar – DRAFT 93 June 12, 2023 such deductibles or self-insured retentions as respects City, its officials, employees and agents; or Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages a) The Indemnitees shall be named as additional insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; Premises owned, leased or used by Contractor; or vehicles owned, leased, hued or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the Indemnitees. b) Contractor's insurance coverage shall be primary insurance as respects the Indemnitees. Any insurance or self- insurance maintained by the Indemnitees shall be excess of Contractor' s insurance and shall not contribute with it. c) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Indemnitees. d) Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer' s liability. 2. Workers' Compensation and Employers Liability Coverage: The insurer shall agree to waive all rights of subrogation against the Indemnitees for losses arising from work performed by Contractor for City. 3. All Coverages: Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice (ten (10) days written notice in the event of cancellation for non-payment) by certified mail, return receipt requested, has been given to City. E. Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best' s Insurance Reports of size category VII or larger and a rating classification of A or better. F. Verification of Coverage. Within thirty (30) days of the execution of this Agreement, or prior to the start of service under this Agreement, whichever comes first, Contractor shall furnish City certificates of each policy of insurance required hereunder, in form and substance satisfactory to City. Such certificates shall show the type and amount of coverage, effective dates and dates of expiration of policies and shall have all required endorsements. If City requests, copies of each policy, together with all endorsements, shall also be promptly delivered to City. Renewal certificates will be furnished promptly upon renewal to City to demonstrate maintenance of 7.2.a Packet Pg. 553 ADDENDUM #1 City of Diamond Bar – DRAFT 94 June 12, 2023 the required coverage throughout the Term. G. Required Endorsements. 1. Insurance policies shall contain an endorsement in substantially the following form: “Thirty (30) days prior written notice by certified mail, return receipt requested, shall be given to City in the event of cancellation (Ten (10) days written notice in the event of cancellation for non-payment), reduction in coverage, or non -renewal of this policy. Such notice shall be sent to: City Manager City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 91765 2. “This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by City, including any self-insured retention or program of self- insurance, and any other such insurance shall be considered excess insurance only.” 3. “Inclusion of City as an insured shall not affect City's rights as respects any claim, demand, suit or judgment brought or recovered against Contractor. Thus policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's liability as set forth in the policy beyond the amount shown or to which Contractor would have been liable if only one party had been named as an insured." H. Other Insurance Requirements 1. In the event any services are delegated to another company or subcontractor, Contractor shall require such Contractor or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the Contractor or subcontractor's employees engaged in the work in accordance with this Section 11.8. The liability insurance required by this Section 11.8 shall cover all Contractor or subcontractors or the Contractor or subcontractor must furnish evidence of insurance provided by it meeting all of the requirements of this Section 11.8. 2. Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person against Contractor or any Contractor or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly report the facts in writing to the insurance carrier and to City. If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as it may deem proper and recover costs from the Contractor's Performance Bond and/or Letter of Credit provided under Sections 11.8 and 11.10. 7.2.a Packet Pg. 554 ADDENDUM #1 City of Diamond Bar – DRAFT 95 June 12, 2023 I. Cyber Liability. Contractor will maintain cyber liability insurance with a combined single limit of not less than One Million ($1,000,000) per event. Contractor’s cyber policy must include language related to Contractor data breach. Contractor shall verify by providing City Contract Manager a copy of the Declarations Page for the policy for City review prior to the Commencement Date. The insurance required by this subsection includes: 1. Premises Operations; 2. Independent Contractor's Protective; 3. Automobile Liability that includes Owned, Non-Owned, and Hired Motor Vehicles; 4. Broad Form Property Damage, including Completed Operations. J. Proof of insurance shall be mailed to the following address or any subsequent address as may be directed in writing by the City. City Manager City of Diamond Bar 21810 Copley Driver Diamond Bar, CA 91765 K. Modification of Insurance Requirements. The insurance requirements provided in this Agreement may be modified or waived by the City, in writing, upon the request of the Contractor if the City determines such modification or waiver is fin the best interest of the City considering all relevant factors, including exposure to the City. L. Rights of Subrogation. All required insurance policies shall preclude any underwriter’s rights of recovery or subrogation against the City with the express intention of the Parties being that the required insurance coverage protects both Parties as the primary coverage for any and all losses covered by the above-described insurance. The Contractor shall ensure that any companies issuing insurance to cover the requirements contained in this Agreement agree that they shall have no recourse against the City for payment or assessments in any form on any policy of insurance. The clauses ‘Other Insurance Provisions’ and ‘Insured Duties in the Event of an Occurrence, Claim or Suit’ as it appears in any policy of insurance in which the City is named as an additional insured shall not apply to the City. M. Failure to Obtain Insurance. The failure of the Contractor to obtain and maintain any required insurance shall not relieve Contractor of any liability under this Agreement (and the Contractor may be answerable to the City for damages or any other remedy on account of such breach) nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the Contractor concerning indemnification. N. No Limitation of Liability. By requiring insurance herein, City does not represent that coverage and limits will necessarily be adequate to protect Contractor, and such coverage and limits 7.2.a Packet Pg. 555 ADDENDUM #1 City of Diamond Bar – DRAFT 96 June 12, 2023 shall not be deemed as a limitation on Contractor’s liability under the indemnities granted to City in this contract. 11.9 FAITHFUL PERFORMANCE BOND The Contractor shall, prior to the initial date of the term of this Agreement, execute and file with the Clerk of the Council a surety bond in the penal sum of One-Hundred Twenty-Five Thousand Dollars ($125,000), similar to the form provided in Exhibit 7 or otherwise in a form with language that is acceptable to the City, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement, unless such requirement is waived by the City Manager. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be released only upon written release from City per Section 11.11 11.10 FAITHFUL PERFORMANCE LETTER OF CREDIT A. In addition to a corporate surety bond as noted in Section 11.9 above, Contractor shall furnish an irrevocable letter of credit in the amount of One Hundred Twenty-five Thousand Dollars ($125,000), from a financial institution acceptable to the City and in a form acceptable to the City Attorney as security for the performance of this Agreement the "LOC"). The LOC shall be the sole responsibility of Contractor, shall be unconditional and remain in force during the entire Term of the Agreement and shall be released only upon written release from City per Section 11.11. B. As an alternative to providing the performance bond and letter of credit required under 11.9 and 11.10, Contractor may provide a letter of credit in the amount of Two-Hundred Fifty Thousand Dollars ($250,000). The letter of credit shall be from a financial institution acceptable to the City in a form acceptable to the City Attorney as security for the performance of this Agreement. The LOC shall be the sole responsibility of Contractor, shall be unconditional and remain in force during the entire Term of the Agreement and shall be released only upon written release from City per Section 11.11. C. As an alternative to providing the performance bond and letter of credit required under 11.9 and 11.10, Contractor may deposit funds, on terms satisfactory to City, in an interest- bearing account at an institution satisfactory to both City and Contractor. Contractor may replace any required amount of the performance bond requirement, or the LOC requirement with an equivalent deposit. The deposit shall be accessible to the City immediately without action required by Contractor. The deposit shall be accessible to the City immediately without penalty, unless the funds on deposit are increased in excess of the total Two-Hundred Fifty Thousand Dollars ($250,000) required under Sections 11.9 and 11.10A by the maximum amount of the total potential penalty. The funds on deposit shall be the sole responsibility of the Contractor, shall be unconditional and remain on deposit during the entire Term of the Agreement and shall be withdrawn to Contractor' s custody only upon written release from City per Section 11.11. 7.2.a Packet Pg. 556 ADDENDUM #1 City of Diamond Bar – DRAFT 97 June 12, 2023 11.11 FORFEITURE OF PERFORMANCE BOND In the event Contractor shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, City may declare a portion or all of the performance bond forfeited to the City up to an amount which is necessary to recompense and make whole the City. Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount within thirty (30) days of the City's declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of the Agreement. 11.12 FORFEITURE OF LETTER OF CREDIT Thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, the LOC or deposit may be drawn upon by City for purposes including, but not limited to: A. Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City B. Reimbursement of costs borne by City to correct violations of this Agreement not corrected by Contractor, including but not limited to the liquidated damages described in Section 13.7. City may draw upon the entire LOC and convert it to a cash deposit, or draw upon the entire deposit, if Contractor fails to cause it to be extended or replaced with another satisfactory LOC or deposit no later than 60 days prior to its expiration during the term hereof. If City partially draws down LOC or deposit, Contractor must restore it to full amount within 30 days of City's draw. Failure to restore the LOC or deposit to its full amount within. thirty (30) days shall be a material breach of the Agreement. 11.13 PERFORMANC SECURITY BEYOND SERVICE TERM Some Agreement requirements extend beyond the Term and other requirements, such as minimum Diversion rates per Section 5.2, will not be substantiated until after the final service date. Therefore, the Contractor shall not terminate the performance bond, letter of credit or deposit, and will renew them to ensure continuous availability to the City, until receiving a written release from the City or until the second am -mal anniversary of the end of the Term. Permission from the City to discontinue holding these performance securities does not relieve Contractor of payments to the City that may be due, or may become due. 7.2.a Packet Pg. 557 ADDENDUM #1 City of Diamond Bar – DRAFT 98 June 12, 2023 ARTICLE 12: CITY’S RIGHT TO CONTRACT WITH THIRD PARTIES TO PERFORM FRANCHISE SERVICES 12.1 GENERAL In the event that Contractor, for any reason whatsoever, fails, refuses or is unable to Collect, Recycle, Process, Transport, or Dispose of any or all Solid Waste which it is required by this Agreement, at the time and in the manner provided in this Agreement, for a period of more than two business days, excluding Saturday, Sunday and Designated Holidays, and if, as a result thereof, Solid Waste should accumulate in City to such an extent, in such a manner, or for such a time that such accumulation endangers or menaces the public health, safety or welfare, then City shall have the right, but not the obligation, upon twenty-four (24) hour prior written notice to Contractor during the period of such emergency as determined by City, (1) to perform, or cause to be performed, such services itself with its own or other personnel without liability to Contractor; and/or (2) to take possession of any or all of Contractor's land, equipment and other property used or useful in the Collection and Transportation of Solid Waste, and to use such property to Collect and Transport any Solid Waste generated within City which Contractor would otherwise be obligated to Collect, Transport and properly Dispose of or Process pursuant to this Agreement. Further, the City shall have access to the MRF and composting facilities used by the Contractor for the Processing, Recycling and Organics Diversion of Solid Waste produced or accumulated with the City. The right of the City to enter upon and use facilities and equipment as specified herein shall extend following the date of cancellation of this Agreement for a period of ninety (90) consecutive calendar days. Notice of Contractor's failure, refusal or neglect to Collect, Transport and properly Dispose of or Process Solid Waste may be given orally by telephone to Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within one business day, excluding Saturday, Sunday and Designated Holidays of the oral notification. Contractor further agrees that in such event: A. It will take direction from City to effect the transfer of possession of equipment and property to City for City's use, or for use by any Person or entity designated by the City. B. It will, if City so requests, keep in good repair and condition all of such equipment and property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. C. City may immediately engage all or any personnel necessary or useful for the Collection and Transportation of Solid Waste, including, if City so desires, employees previously or then employed by Contractor, Contractor further agrees, if City so requests, to furnish City the services of any or all management or office Personnel employed by Contractor whose services are necessary or useful for Solid Waste Collection, Transportation, Processing and Disposal operations and for the billing and Collection of fees for these services. City agrees that it assumes complete responsibility for the proper and normal use of such equipment 7.2.a Packet Pg. 558 ADDENDUM #1 City of Diamond Bar – DRAFT 99 June 12, 2023 and facilities while in its possession. If the interruption or discontinuance in service is caused by any of the reasons listed in Section 11.5, City shall pay to Contractor the reasonable rental value of the equipment and facilities, possession of which is taken by City, for the period of City's possession, if any, which extends beyond the period of time for which Contractor has rendered bills in advance of service, for the class of service involved. 12.2 TEMPORARY POSSESION OF CONTRACTOR’S PROPERTY If City suffers an interruption or discontinuance of service (including interruptions and discontinuance due to events described in Section 13.8), City may take possession of and use all of Contractor's property described above until other suitable arrangements can be made for the provision of Solid Waste Services which may include the grant of a Franchise to another waste hauling company. 12.3 BILLING AND COMPENSATION TO CITY DURING CITY’S POSSESSION During such time that City is providing Solid Waste Services, as above provided, Contractor shall bill and Collect payment from all users of the above-mentioned services as described in Section 6.1 Contractor further agrees that, in such event, it shall reimburse City for any and all costs and expenses incurred by City in taking over possession of the above-mentioned equipment and property for Solid Waste service in such manner and to an extent as would otherwise be required of Contractor under the Terms of this Agreement. Such reimbursement shall be made from time to time after submission by City to Contractor of each statement listing such costs and expenses, but in no event later than five (5) Work Days from and after each such submission. 12.4 CITY’S RIGHT TO RELINQUISH POSSESSION It is further mutually agreed that City may at any time at its discretion relinquish possession of any or all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the Solid Waste Services as provided in this Agreement, whereupon Contractor shall be bound to resume the same. 12.5 CITY’S POSSESSION NOT A TAKING Except as otherwise expressly provided in the previous paragraph, City's exercise of its rights under this Article, 1) does not constitute a taking of private property for which compensation must be paid, 2) will not create any liability on the part of City to Contractor, and 3) does not exempt Contractor from any of the indemnity and insurance provisions of this Agreement, which are meant to extend to circumstances arising under this Section provided that the Contractor is not required to indemnify the City against claims and damages arising from the active negligence of the City, its elected and appointed boards, commissions, officers, employees and agents in the operation of Collection vehicles during the time the City has taken possession of such vehicles. 7.2.a Packet Pg. 559 ADDENDUM #1 City of Diamond Bar – DRAFT 100 June 12, 2023 12.6 DURATION OF CITY’S POSSESSION City's right pursuant to this Article to retain temporary possession of Contractor's facilities and equipment, and to render Collection services, shall terminate when City determines that such services can be resumed by Contractor, or when City no longer reasonably requires such property or equipment. In any case, City has no obligation to maintain possession of Contractor's property or equipment and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish possession to Contractor. ARTICLE 13: DEFAULT AND REMEDIES 13.1 EVENTS OF DEFAULT Contractor’s breach of each and any provision of the Franchise or this Agreement may constitute a default hereunder to the extent Contractor’s performance, services or obligations under this Agreement are materially and adversely impacted. Events of default by the Contractor include, but are not limited to, the following. A. Fraud or Deceit or Misrepresentation. If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a misrepresentation regarding material information to City. B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets. C. Failure to Maintain Coverage. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, performance bond, letter of credit, or indemnification coverage as required by this Agreement. D. Violations of Regulation. If Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred until a final decision adverse to the Contractor is entered. E. Failure to Perform. If Contractor ceases to provide all or a portion of the Collection, Processing or Recycling services, or any other Solid Waste Services as required under this Agreement for a period of seven (7) consecutive days or more, unless, and only to the extent, performance is excused pursuant to Section 13.8. 7.2.a Packet Pg. 560 ADDENDUM #1 City of Diamond Bar – DRAFT 101 June 12, 2023 F. Failure to Pay. If Contractor fails to make any payments required under this Agreement and/or refuses to provide City, within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in the Agreement. G. Failure to Cooperate with Audits. Failure to complete, perform or cooperate with any audit as described by this Agreement. H. Failure to Submit Reports or Documentation. Failure to complete or to provide required reports or documents to City as required by this Agreement. I. Acts or Omissions. 1. Any act or omission by Contractor relative to the services provided under this Agreement which violates the terms, conditions, or requirements of this Agreement, the California Integrated Waste Management Act of 1989, as it may be amended from time to time (AB 939), or any law, statute, ordinance, order, directive, rule, or regulation issued pursuant to AB 939 shall constitute a default by the Contractor. Any failure to correct or remedy any such violation within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, Contractor’s failure to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter shall constitute a default by Contractor. 2. Any situation in which Contractor or any of its officers, directors or employees are found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust activities, illegal Transport or Disposal of hazardous or toxic materials, or bribery of public officials shall constitute a default by Contractor. The term “found guilty” shall be deemed to include any judicial determination that Contractor or any of Contractor’s officers, directors or employees is guilty as well as any admission of guilt by Contractor or any of Contractor’s officers, directors or employees including, but not limited to, the plea of “guilty”, “nolo contendere”, “no contest”, and “guilty to a lesser charge.” J. False or Misleading Statements. Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement. K. Attachment. The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office facilities, or any part thereof. L. Suspension or Termination of Service. Any termination or suspension of the transaction of business by Contractor, including, without limitation, due to labor unrest including strike, work stoppage or slowdown, sick- out, picketing, or other concerted job action lasting more 7.2.a Packet Pg. 561 ADDENDUM #1 City of Diamond Bar – DRAFT 102 June 12, 2023 than seven (7) consecutive days, unless, and only to the extent, performance is excused pursuant to Section 13.8, or Section 6.1.10. M. Failure to Provide Assurance of Performance. If Contractor fails to provide reasonable assurances of performance as required under Section 13.10. N. Commingling of Recyclables With Refuse/Landfilling of Recyclables. If Contractor negligently or willfully empties Containers of properly set out Recyclable Materials or Organics into a Refuse load, or Transports a load of Recyclable Materials or Organics to a Landfill or other location at which the material will not be Diverted from Landfill Disposal. O. Failure to Comply with Requirements of SB 1383 Regulations. The Contractor fails to comply with requirements of the Agreement including public education, reporting, contamination monitoring, recordkeeping, or other obligations of this Agreement that delegate City’s responsibility and/or authority under SB 1383 Regulations to Contractor. P. Diversion Requirement. If Contractor does not reach Diversion requirement of ___% of all tonnage Collected by Contractor under this Agreement per Section 5.2 for two consecutive Rate Years. Q. Failure to Provide and Maintain Performance Bond and/or Letter of Credit and/or Deposit. Contractor fails to restore the full balance of the Performance Bond and/ or Letter of Credit and/ or deposit required under Sections 11.9 and 11.10 to the full required value within 30 days of being depleted due to payment to City under Sections 11.11 or 11.12, or Contractor allows any of the securities at any time for any other reason to lapse or fall below required minimums for any period of time. 13.2 RIGHT TO TERMINATE UPON DEFAULT AND RIGHT TO SPECIFIC PERFORMANCE The City may terminate this Agreement immediately upon written notice to the Contractor in the event the Contractor defaults under Article 13.1.Q entitled, “Failure to Provide and Maintain Performance Bonds and/or Letter of Credit and/or Deposit.” The Contractor shall be given ten (10) Business Days from written notification by the City to cure any default which, in the CITY’s sole opinion, creates a potential public health and safety threat. The Contractor shall be given ten (10) Business Days from written notification by the City to cure any default arising under subsections E, F, G, H, K, L, M, N, and Q in Article 13.1 provided, however, that the City shall not be obligated to provide Contractor with a notice and cure opportunity if the Contractor has committed the same or similar breach/default within a twenty-four (24) month period. The Contractor shall be given thirty (30) calendar days from written notification by the City to cure any other default (which is not required to be cured within ten (10) Business Days); however, the City 7.2.a Packet Pg. 562 ADDENDUM #1 City of Diamond Bar – DRAFT 103 June 12, 2023 shall not be obligated to provide Contractor with a notice and cure opportunity if the Contractor has committed the same or similar breach/default within a twenty-four (24) month period. Failure to allege breach/default shall not constitute waiver by the City. 13.3 CITY’S REMEDIES IN THE EVENT OF DEFAULT Upon the Contractor’s default, the City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions as it shall deem proper pursuant to the provisions in this Agreement or the City of Diamond Bar Municipal Code, including the following remedies. A. Waiver of Default. The City may waive any event of default or may waive Contractor’s requirement to cure a default event if the City determines that such waiver would be in the best interest of the City. The City’s waiver of an event of default is not a waiver of future events of default that may have the same or similar conditions. B. Suspension of the Contractor’s Obligation. The City may suspend Contractor’s performance of its obligations if the Contractor fails to cure default in the time frame specified in Article 13.2 until such time the Contractor can provide assurance of performance in accordance with the terms of this Agreement. C. Liquidated Damages. The City may assess Liquidated Damages for the Contractor’s failure to meet specific performance standards pursuant to Article 13.7B. D. Termination. In the event that the Contractor should default and subject to the right of the Contractor to cure, in the performance of any provisions of this Agreement, and the default is not cured for any default within ten (10) calendar days if the default creates a potential public health and safety threat or arises under Article 13.1. E, F, G, H, K, L, M, Q and or otherwise thirty (30) calendar days after receipt of written notice of default from the City, then the City may, at their option, terminate this Agreement. In the event the CITY decides to terminate this Agreement, the City shall serve twenty (20) calendar days written notice of its intention to terminate upon Contractor and will not be required by this Agreement to take any further action such as hold any hearing, bringing suite or taking any other action. In the event the City exercises its right to terminate this Agreement, the City may, at its option, upon such termination, either directly undertake performance of the services or arrange with other Persons to perform the services with or without a written agreement. Contractor shall not be entitled to any further revenues from Collection operations authorized hereunder from and after the date of termination. This right of termination is in addition to any other rights of the City upon a failure of the Contractor to perform its obligations under this Agreement. E. Other Available Remedies. The City’s election of one (1) or more of the remedies described herein shall not limit the City from any and all other remedies at law and in equity including injunctive relief and / or specific performance of any breach of this Agreement. 7.2.a Packet Pg. 563 ADDENDUM #1 City of Diamond Bar – DRAFT 104 June 12, 2023 13.4 CRIMINAL ACTIVITY Should the Contractor or any of its officers, directors or employees be found guilty of felonious conduct related to the performance of this Contract, or of felonious conduct related to anti-trust activities, illegal Transport or Disposal of hazardous or toxic materials, or bribery of public officials, the City reserves the right to unilaterally terminate this Contract or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other condition deemed appropriate short of termination) as it shall deem proper. Such action shall be taken after Contractor has been given notice and opportunity to present evidence in mitigation. The term “found guilty” shall be deemed to include any judicial determination that Contractor or any of Contractor’s officers, directors or employees is guilty and any admission of guilt by Contractor or any of Contractor’s officers, directors or employees including, but not limited to, the plea of “guilty”, “nolo contendere”, “no contest”, and “guilty to a lesser charge” entered as part of any plea bargain. 13.5 POSSESSION OF RECORDS UPON TERMINATION In the event of termination for an event of default, the Contractor shall furnish the Contract Administrator with immediate access to all of its business records, including without limitation, proprietary Contractor computer systems, related to its Customers, Collection routes, and billing of accounts for Collection services in the City of Diamond Bar. 13.6 CITY’S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE The City’s rights to terminate this Agreement under Article 13.3, and to take possession of the Contractor’s records under Article 13.5 are not exclusive, and the City’s termination of this Agreement and/or the imposition of Liquidated Damages shall not constitute an election of remedies. Instead, these rights shall be in addition to any and all other legal and equitable rights and remedies, including but not limited to termination, which the City may have. 13.7 LIQUIDATED DAMAGES A. General. City finds, and Contractor agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of certain specific obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that the services that are the subject of this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for 7.2.a Packet Pg. 564 ADDENDUM #1 City of Diamond Bar – DRAFT 105 June 12, 2023 such specific breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. B. Service and Diversion Performance Standards; Liquidated Damages for Failure to Meet Standards. The parties further acknowledge that consistent, reliable Solid Waste Service is of utmost importance to City and that City has considered and relied on Contractor's representations as to its quality-of-service commitment in entering into this Agreement. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if Contractor fails to achieve the performance standards, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which City will suffer. Therefore, without prejudice to City's right to treat such breaches as an event of default under this Article 13, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such specific breaches, considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each party specifically confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made. Contractor City Initial Here Initial Here The Contractor agrees to pay (as Liquidated Damages and not as a penalty) the following amounts: LIQUIDATED DAMAGES 1. Collection Reliability Amount A. For each failure to commence service to anew Customer account within seven (7) days after order, which exceeds five (5) such failures annually. $100.00 per occurrence. B. For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste from any established Customer account on the scheduled Collection day and not make up the Collection within the time allotted per Section 4.6.1: $100.00 per occurrence. 2. Collection Quality A. For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Containers upright which exceeds ten (10) such occurrences annually. $100.00 per occurrence 7.2.a Packet Pg. 565 ADDENDUM #1 City of Diamond Bar – DRAFT 106 June 12, 2023 LIQUIDATED DAMAGES B. For each occurrence of excessive noise or discourteous behavior which exceed ten (10) annually. $250.00 per occurrence C. For each occurrence of Collecting Solid Waste during unauthorized hours which exceeds five (5) such occurrences annually. $250.00 per occurrence D. For each failure to clean up Solid Waste spilled from Solid Waste Containers within ninety (90) minutes that exceeds ten (10) such failures annually. $150.00 per occurrence E. For each complaint that exceeds the maximum permitted number of complaints per month in Section 5.2.3. $150.00 per occurrence F. For each occurrence of failure to verify that Customer has obtained an encroachment permit from the City prior to Contractor placing a Container in the public right-of-way which exceeds ten (10) such occurrences annually. $100.00 per occurrence G. For each occurrence of failure to return a Container to Container storage locations, as described in Section 4. 1. 12 " Scout Service' of this Agreement, withal two (2) hours of set out which exceeds ten (10) such occurrences annually. $100.00 per occurrence 3. Collection Responsiveness A. For each failure to initially respond to a Customer complaint within one (1) business day, and for each additional day on which the complaint is not addressed, which exceed five (5) annually. $150 per occurrence B. For each failure to process Customer complaints as required by Article 5, which exceed five (5) annually. $150 per occurrence C. For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within three (3) business days of request from City or Customer. $50 per occurrence D. For each failure to repair or replace a damaged or missing Container within two (2) business days of request from City or Customer. $50 per occurrence E. For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor. $100 per occurrence F. For each additional thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date. $100 per occurrence G. For each violation under Section 5. 2.3 (one month of excessive complaints or one quarter of excessive delays in answering customer service calls). $500 per occurrence H. For each occurrence of inaccurate information being provided to Customers by Contractor' s customer service department which exceeds five (5) such occurrences annually. $100 per occurrence I. For every Organics Waste Cart Collected as Refuse without issuing a Warning Notice per Section 4.2.7 which exceeds ten (10) such occurrences annually $200 per Occurrence J. For each failure to issue a Warning Notice to a Customer for materials not collected due to improper set out which exceeds ten (10) such occurrences annually: $200 per Occurrence 7.2.a Packet Pg. 566 ADDENDUM #1 City of Diamond Bar – DRAFT 107 June 12, 2023 4. Diversion Efforts Amount A. For each calendar year, beginning calendar year 2010 through calendar year 2017, in which Contractor fails to provide support to the City within thirty 30) days of year- end, documenting that it Diverted at least 25% of the Solid Waste Contractor Collected under this Agreement. $25 for each ton below tonnage level, necessary to meet 25 % Diversion goal. B. For each calendar year, beginning January 1, 2018, in which Contractor fails to provide documentation to the City within thirty (30) days of year- end, supporting that it Diverted at least 25% of the Solid Waste Contractor Collected under this Agreement, excluding Construction and Demolition Debris loads, $25 for each ton below tonnage level necessary to meet 25 % Diversion goal. C. For each calendar year, beginning calendar year 2018, in which Contractor fails to provide documentation to the City within thirty (30) days of yearend, supporting that it Diverted at least 75 %, or the State -mandated Construction and Demolition Diversion percentage, whichever is greater, of all Construction and Demolition Debris loads it Collects under this Agreement. $25 for each ton below tonnage level necessary to meet 75%, or State- mandated Construction and Demolition Diversion goal, whichever is greater. 5. Timeliness of Submissions to City Amount A. Any report shall be considered late until such time as a correct and complete report is received by City. For each calendar day a report is late, the daily liquidated damage amount shall be: i) Monthly Reports: ii) Quarterly Reports: iii) Annual Reports: $25 per day $50 per day $100 per day 6. Accuracy of Billing Amount A. Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule, in excess of ten (10) annually: $25 per occurrence 7. Customer Education and Outreach Amount 7.2.a Packet Pg. 567 ADDENDUM #1 City of Diamond Bar – DRAFT 108 June 12, 2023 A. For each day that the Public Education and Outreach requirements contained in Section 5.3 are not adhered to after written notice provided to Contractor and Contractor does not cure within 30 days: 8. Cooperation with Service Provider Transition A. For each day routing information requested by City in accordance with Section 12.9 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service: $1000.00 per day B. For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.9: $1000.00 per day C. For delay in not meeting the requirements contained in Section 12.9 in a timely manner, in addition to the daily liquidated damages for breach under 8(a) and 8(b) above, liquidated damages of: $35,000.00 9. Diversion Efforts A. For each Rate Year (July 1, 2022 through June 30, 2023 considered the first Rate Year) in which Contractor fails to provide support to the City within forty-five (45) days of year-end, documenting that it Diverted at least ___% of the Solid Waste Contractor Collected under this Agreement per Section 4.6.1: 10. General Contract Adherence A. For each day that Contractor fails to provide services required under the Agreement, or comply with terms of the Agreement, five (5) business days after receipt of written notification from City that such services are not being provided or terms are not being met: $300.00 per day The City may determine the occurrence of events giving rise to liquidated damages through the observation by its own employees or representatives, investigation of Customer complaints or self- reporting by the Contractor. Prior to assessing liquidated damages, City shall give Contractor notice of its intention to do so. The notice will include a brief description of the incident(s)/non-performance. Contractor may review (and make copies at its own expense) all information in the possession of City relating to incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. City will provide Contractor with a written explanation of its determination on each incident(s)/non-performance prior to authorizing the assessment of liquidated damages. The decision of City shall be final. C. Amount. City may assess liquidated damages for each calendar day or event, as appropriate, that Contractor is determined to be liable in accordance with this Agreement. 7.2.a Packet Pg. 568 ADDENDUM #1 City of Diamond Bar – DRAFT 109 June 12, 2023 D. Timing of Payment. Contractor shall pay any liquidated damages assessed by City within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, City may proceed against the performance bond required by the Agreement or find Contractor in default and terminate this Agreement pursuant to Section 13.1, or both. 13.8 SUSPENSION OF PERFORMANCE 13.8.1 FORCE MAJEURE The Parties shall be excused from performing their respective obligations hereunder and from any obligation to pay Liquidated Damages to the extent and for the period of time they are prevented from so performing by reason of floods, earthquakes, pandemics, other acts of nature, war, civil insurrection, riots, acts of any government (including judicial action), and other similar catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from performance hereunder. The interruption or discontinuance of Contractor' s services caused by one (1) or more of the events excused shall not constitute a default by Contractor under this Agreement provided that other services delivered to properties in Diamond Bar (such as and without limitation electricity, gas, water, or Solid Waste Services) have been similarly disrupted as a direct result of the catastrophic event. Notwithstanding the foregoing, however, if Contractor is excused from performing its obligations hereunder for any of the causes listed in this section, City may contract with another provider to perform all or part of this Agreement until such time Contractor is able to perform. If Contractor is unable to renew its performance of this Agreement for a period of thirty (30) days or more, where the City is not significantly impacted by the catastrophic event, City shall nevertheless have the right, in its sole discretion, to terminate flus Agreement by giving ten (10) days' notice. 13.8.2 LABOR UNREST Labor unrest, including work stoppage or slowdown or sick-out conducted by Contractor' s employees or directed at Contractor is excused from performance only to the extent that the following requirements are met: x Contractor provides a contingency plan to the City prior to the execution of this Agreement demonstrating how services will be provided. Plan is subject to City Manager approval and Contractor shall amend plan until it meets City requirements, including reasonably demonstrating how City' s basic Collection and sanitary needs will be met to the City's satisfaction. x Contractor shall meet all requirements of this plan; if Contractor does not meet all requirements, City may choose to revoke this excuse from performance offered under this Agreement and may choose to use enforcement provisions under this Agreement, including Sections 13.1, 13.2 and 13.3. 7.2.a Packet Pg. 569 ADDENDUM #1 City of Diamond Bar – DRAFT 110 June 12, 2023 The party claiming excuse from performance shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section. The interruption or discontinuance of Contractor' s services caused by labor-related events excused under this Section 13.8.2 shall not constitute a default by Contractor under this Agreement. Notwithstanding the foregoing, however, if Contractor is excused from performing its obligations hereunder for any of the causes listed in this section for a period of thirty (30) days or more, City shall nevertheless have the right, at its sole discretion, to terminate this Agreement by giving ten (10) days' notice, and may contract with another party for Solid Waste Services. 13.9 DISPUTE RESOLUTION Except as may otherwise be set forth expressly herein, all disputes arising under this Agreement shall be resolved as set forth in this section. 13.9.1 NEGOTIATION AND MEDIATION The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement promptly by negotiations between the Parties' authorized representatives. The disputing Party shall give the other Parties written notice of any dispute. Within five (5) days after delivery of such notice, the authorized representatives shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary to exchange information and to attempt to resolve the dispute. If the matter has not been resolved within ten (10) days of the first meeting, any Party may initiate a mediation of the dispute. The mediation shall be facilitated by a mediator that is acceptable to all Parties and shall conclude within thirty (30) days of its commencement, unless the Parties agree to extend the mediation process beyond such deadline. Upon agreeing on a mediator, the Parties shall enter into a written agreement for the mediation services with each Party paying a pro rata share of the mediator' s fee, if any. The mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association; provided, however, that no consequential damages shall be awarded in any such proceeding and each Party shall bear its own legal fees and expenses. 13.9.2 CONFIDENTIALITY All negotiations and any mediation conducted pursuant to this section shall be confidential and shall be treated as compromise and settlement negotiations, to which Section 1152 of the California Evidence Code shall apply, which Section is incorporated in this Agreement by reference. 13.9.3 INJUNCTIVE RELIEF Notwithstanding the foregoing provisions, a Party may seek a preliminary injunction or other provisional judicial remedy if in its judgment such action is necessary to avoid irreparable damage or to preserve the status quo. 7.2.a Packet Pg. 570 ADDENDUM #1 City of Diamond Bar – DRAFT 111 June 12, 2023 13.9.4 CONTINUING OBLIGATION Each Party shall continue to perform its obligations under this Agreement pending final resolution of any dispute arising out of or relating to this Agreement. 13.9.5 FAILURE OF MEDIATION If after good faith efforts to mediate a dispute under the terms of this Agreement the parties cannot agree to a resolution of the dispute, any party may pursue whatever legal. remedies may be available to it at law or in equity before a court of competent jurisdiction and with venue in Los Angeles County. 13.10 ASSURANCE OF PERFORMANCE City may, at its option and in addition to all other remedies it may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default. ARTICLE 14: OTHER AGREEMENTS OF THE PARTIES 14.1 RELATIONSHIP OF PARTIES The parties intend that Contractor shall perform the services required by this Agreement as an independent Contractor engaged by City and not as an officer or employee of City nor as a partner of or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, Companies, Subcontractors and agents. Neither Contractor nor its officers, employees, Companies, Subcontractors and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City. 14.2 COMPLIANCE WITH LAW In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all Applicable Laws. 7.2.a Packet Pg. 571 ADDENDUM #1 City of Diamond Bar – DRAFT 112 June 12, 2023 14.3 GOVERNING LAW This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 14.4 JURISDICTION Except for those matters where Federal Courts have exclusive jurisdiction, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County. 14.5 ASSIGNMENT Except as may be provided for in Article 12, neither party shall assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement to any other Person without the prior written consent of the other party. Any such assignment made without the consent of the other party shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor' s assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (iii) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re -issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of ownership or control of Contractor; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Contractor of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor' s property, or transfer occurring in the event of a probate proceeding; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of Contractor. Contractor acknowledges that this Agreement involved rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor' s experience, skill and reputation for conducting its Solid Waste Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste management practices, and (2) Contractor' s financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement. 7.2.a Packet Pg. 572 ADDENDUM #1 City of Diamond Bar – DRAFT 113 June 12, 2023 If Contractor requests City's consideration of and consent to an assignment, City may deny or approve such request in its complete discretion. No request by Contractor for consent to an assignment need be considered by City unless and until Contractor has met the following requirements: A. Contractor shall pay to City in advance of consideration of any assignment a flat fee of $250,000 for expenses for City staff costs, consultant and attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment; B. Contractor shall pay the City a transfer fee equal to 1% of the gross revenues times the number of years (pro-rated for partial years) remaining under this Agreement (based on actual rate revenues for the prior 12-months), plus the City’s costs of processing and evaluating the assignment request; C. Contractor shall furnish City with audited financial statements of the proposed assignee's operations for the immediately preceding three (3) operating years; D. A proforma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such proforma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Contractor’s operations; and, E. Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or exceeding the sale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, state or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, state and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Material; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the Terms of this Agreement in a timely, safe and effective manner. Under no circumstances shall City be obliged to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. 14.6 AFFILIATED COMPANIES Contractor's accounting records shall be maintained on a basis showing the results of Contractor's operations under this Agreement separately from operations in other locations, as if Contractor were an independent entity providing service only to City. The costs and revenues associated with 7.2.a Packet Pg. 573 ADDENDUM #1 City of Diamond Bar – DRAFT 114 June 12, 2023 providing service to City shall not be combined, consolidated or in any other way incorporated with those of other operations conducted by Contractor in other locations, or with those of an Affiliate. If Contractor enters into any financial transactions with a Related Party Entity for the provision of labor, equipment, supplies, services, capital, etc., related to the furnishing of service under this Agreement, that relationship shall be disclosed to City, and in the financial reports submitted to City. In such event, City's rights to inspect records, and obtain financial data shall extend to such Related Party Entity or entities. 14.7 CONTRACTING OR SUBCONTRACTING Contractor shall not engage any contractors or subcontractors for the Collection of Solid Waste. 14.8 BINDING ON ASSIGNS The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns (if any) of the Parties. 14.9 TRANSITION TO NEXT CONTRACTOR Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Contractor shall cooperate fully with City and any subsequent Solid Waste enterprise it designates to assure a smooth transition of Solid Waste Services. Contractor's cooperation shall include, but not be limited to, providing route lists, Billing information and other operating records needed to service all Premises covered by this Agreement. In recognition of the difficulty inherent in Customer’s difficulty or inability to store two sets of Containers, Contractor shall remove its Containers in coordination with the distribution of Containers by the incoming service provider. Contractor shall cooperate with the City and incoming service provider in agreeing to the timing of Container removal; if parties cannot agree on a phase-out schedule and Contractor does not remove Containers in a timely manner that requires Customers to store two Containers, City, incoming service provider, or another entity may remove Contractor’s Containers and seek cost reimbursement from Contractor through its performance bond, letter of credit or other means. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Contractor shall, to the maximum extent feasible, provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Contractor shall be responsible for coordinating transfer immediately after Contractor’s final pickups, so as not to disrupt service. Contractor shall provide City with detailed route sheets containing service names and addresses, billing names and addresses, monthly rate, and service levels (quantity, material type, and size of Containers and pickup days) at least 90 days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Contractor shall provide means of access to the new service provider at least one full calendar day (excluding Saturday, Sunday, and Designated Holidays) prior to the first day of Collection by another 7.2.a Packet Pg. 574 ADDENDUM #1 City of Diamond Bar – DRAFT 115 June 12, 2023 party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 14.10 PARTIES IN INTERSET Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the parties to it and their representatives, successors and permitted assigns. 14.11 WAIVER The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other party of any provision of this Agreement. 14.12 CONTRACTOR’S INVESTIGATION Contractor has made an independent investigation ( satisfactory to Contractor) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 14.13 NOTICE All notices, demands, requests, proposals, approvals, consents, and other communications which this Agreement requires, authorizes, or contemplates shall be in writing and shall either be personally delivered to a representative of the parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to the City: City Manager City of Diamond Bar 21810 Copley Drive Diamond Bar, CA 92765 If to the Contractor: [NAME] [TITLE] [CONTRACTOR NAME] [ADDRESS] [CITY, ST, ZIP] 7.2.a Packet Pg. 575 ADDENDUM #1 City of Diamond Bar – DRAFT 116 June 12, 2023 The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three days from the date it is deposited in the mail. This notice shall also be sent by e- mail to the City Manager. 14.14 REPRESENTATIVE OF THE PARTIES All actions to be taken by City shall be taken by the City Council except as expressly provided herein. The City Council may delegate authority to the City Manager, and/ or to other City employees and may permit such employees, in turn, to delegate some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of the authority so delegated to them. Contractor shall, by the effective date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation end of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority expressly delegated to him/ her by Contractor as communicated to City. 14.15 CITY FREE TO NEGOTIATE WITH THIRD PARTIES City may investigate all options for the Collection, Transporting, Recycling, Processing and Disposal of Solid Waste for periods during which this Agreement has expired or been terminated. Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Solid Waste Services which are the subject of this Agreement, including without limitation Collection and Processing of Recyclable and Organic Materials, Disposal, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination of this Agreement pursuant to Section 13.2 or otherwise. 14.16 COMPLIANCE WITH MUNICIPAL CODE Contractor shall comply with those provisions of the City of Diamond Bar Municipal Code which are applicable, and with any and all amendments to such applicable provisions during the term of this Agreement. 14.17 PRIVACY Contractor shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer' s waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the 7.2.a Packet Pg. 576 ADDENDUM #1 City of Diamond Bar – DRAFT 117 June 12, 2023 authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement. 14.18 PROPRIETARY INFORMATION, PUBLIC RECORDS The City acknowledges that a number of the records and reports of Contractor are proprietary and confidential. Contractor is obligated to permit City inspection of its records on demand and to provide copies to City where requested. City will endeavor to maintain the confidentiality of all proprietary information provided by Contractor. Notwithstanding the foregoing, any documents provided by Contractor to City that are public records may be disclosed pursuant to the California Public Records Act. ARTICLE 15: MISCELLANEOUS AGREEMENTS 15.1 ENTIRE AGREEMENT This Agreement contains the entire integrated agreement and understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, promises, proposals (including Contractor's Proposal), and agreements between the Parties, whether written or oral. The. Parties acknowledge this document has been executed with the consent and upon the advice of counsel. Each of the Parties acknowledges that no Party or agent or attorney of any other party has made any promise, representation, or warranty, express or implied, not contained in this Agreement, to induce the other Party to execute this instrument. 15.2 SECTION HEADINGS The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 15.3 REFERENCES TO LAWS AND OTHER AGREEMENTS All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recodified, unless otherwise specifically provided. 7.2.a Packet Pg. 577 ADDENDUM #1 City of Diamond Bar – DRAFT 118 June 12, 2023 15.4 INTERPRETATION This Agreement, including the Exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 15.5 AGREEMENT This Agreement may not be modified or amended in any respect except by a writing sighed by the Parties. 15.6 SEVERABILITY Invalidation of any of the provisions contained in this Agreement, or of the application thereof to any person, by judgment or court order, shall in no way affect any of the other provisions hereof or the application thereof to any other person or circumstance, and that same shall remain in full force and effect, unless enforcement of this Agreement, as so invalidated, would be unreasonable or inequitable under all the circumstances or would frustrate the purposes of this Agreement and/ or the rights and obligations of the parties hereto. 15.7 EXHIBITS Each of Exhibits identified as Exhibit "1” through "8” is attached hereto and incorporated herein and made a part hereof by this reference. 15.8 ATTORNYS’ FEES If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding between the Parties in any way connected with this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorney' s fees and costs from the opposing Party. Attorneys' fees shall include attorney' s fees on any appeal. A Party entitled to attorney' s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery, expert fees, and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action. IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written. CITY OF DIAMOND BAR (“City” 7.2.a Packet Pg. 578 ADDENDUM #1 City of Diamond Bar – DRAFT 119 June 12, 2023 DATED: DATED: CITY OF DIAMOND BAR CONTRACTOR By: By: City Manager TITLE Approved as to form: By: City Attorney NAME OF COMPANY ATTEST: ADDRESS TELEPHONE City Clerk 7.2.a Packet Pg. 579 ADDENDUM #1 City of Diamond Bar – DRAFT 120 June 12, 2023 EXHIBIT 1: INITIAL MAXIMUM SERVICE RATES EXHIBIT 2: EXAMPLE OF RATE ADJUSTMENT PROCEDURE EXHIBIT 2A – RATE ADJUSTMENT PROCEDURE – SFD CARTS EXHIBIT 2B – RATE ADJUSTMENT PROCEDURE – BINS EXHIBIT 2C – RATE ADJUSTMENT PROCEDURE – ROLL-OFF BOXES EXHIBIT 2D – RATE ADJUSTMENT PROCEDURE – OTHER EXHIBIT 2E – EXAMPLE OF INDEX CALCULATION EXHIBIT 3: LIST OF DESIGNATED FACILITIES EXHIBIT 4: LIST OF DIVERSION PRORAM MATERIALS EXHIBIT 5: AB 341, AB 1826, AND SB 1383 COMPLIANCE PLAN EXHIBIT 6: CORPORATE GUARANTY EXHIBIT 7: FAITHFUL PERFORMANCE BOND EXHIBIT 8: CONTRACTOR’S PROPOSAL 7.2.a Packet Pg. 580 Exhibit 2A Rate Adjustment Procedure - SFD Carts Page 1 of 2 AB CD E F Row Cost Category Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D)Index Source 1 Labor 26.250 27.040 3.0095% 25.000%0.75% Note 10 2 Fuel 230.298 299.751 30.1577% 5.000%1.51% 3 Equipment 153.450 156.743 2.1460% 20.000%0.43% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 27.000%1.56% 5 Total Collection Component 77.000% 4.247% GH I J K L Row Facilities 4 Prior Period Tonnage 5 Prior Period Gate Fees 6 Prior Period Material Handling Cost (COL G * COL H) 12 Month Period Ending December Tonnage 7 Gate Fees Effective December 8 Estimated Material Handling Cost (COL J * COL K) 6 Refuse [FACILTY NAME] 14,643.4 $75.00 1,098,255 14,643.4 $78.75 1,153,168 7 Recycling [FACILITY NAME] 3,640.1 $90.00 327,609 3,640.1 $94.50 343,989 8 Organics [FACILITY NAME] 7,040.9 $90.00 633,681 7,040.9 $94.50 665,365 9 Unused - - - 10 Totals 25,324 $2,059,545 25,324 $2,162,522 11 Prior Period Index Value (G11 / I11) >> $81.3265 New Index Value (J11 / L11) >> $85.3928 MN OP Q Row Cost Category Previous Index Value (COL I, ROW 11) New Index Value (COL K, ROW 11) Percent Change in Index (COL N - COL M) / COL M Component Weighting 3 Weighted Percentage Change 12 Material Handling Component 81.3265 85.3928 5.0000% 23.00%1.15% RS TU V Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL R + COL S) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL T - COL U) 13 Collection Component 4.2470% 14 Material Handling Component 1.1500% 15 Total 5.3970% 0.0000% 5.3970% 0.3970% 5.0000% STEP Five: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation WX T Z AA Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (W * X) Cost Component Increased (W + T) Cost Components Reweighted to Equal 100% for Future Adjustments 16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.9302% 17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0234% 18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8802% 19 Other (Except Material Handling) 27.0000% 1.5576% 0.4205% 27.421%27.1398% 20 Material Handling Component 23.0000% 1.1500% 0.2645% 23.265% 23.0263% 21 Total 100.00% 5.40% 1.03% 101.03% 100.00% STEP TWO: Calculate Material Handling Component Index STEP ONE: Calculate Collection Component Percentage Change STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 581 Exhibit 2A Rate Adjustment Procedure - SFD Carts Page 2 of 2 (1) (2) (3) (4) (5) (6) (7) (8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9) (10) Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportation Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted. Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. References to Indices are as follows: For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application. All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025. The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. Labor: Driver rates based on labor agreement. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application. For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20. The "New Index Value" shall be the annual average value of the indices ending December of the prior year. Post collection facilities planned for use under this agreement. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 582 Exhibit 2B Rate Adjustment Procedure - Bins Page 1 of 2 AB CDE F Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D)Index Source 1 Labor 26.250 27.040 3.0095% 25.000%0.75% Note 10 2 Fuel 230.298 299.751 30.1577% 5.000%1.51% 3 Equipment 153.450 156.743 2.1459% 20.000%0.43% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 33.000%1.90% 5 Total Collection Component 83.000% 4.593% GH I JK L Row Facilities 4 Prior Period Tonnage 5 Prior Period Gate Fees 6 Prior Period Material Handling Cost (COL G * COL H) 12 Month Period Ending December Tonnage 7 Gate Fees Effective December 8 Estimated Material Handling Cost (COL J * COL K) 6 Refuse [FACILTY NAME] 7,662.1 $75.00 574,658 6,895.9 $78.75 543,051 7 Recycling [FACILITY NAME] 3,708.4 $90.00 333,756 3,708.4 $94.50 350,444 8 Organics [FACILITY NAME] $90.00 - 766.2 $94.50 72,407 9 Unused - - - 10 Totals 11,371 $908,414 11,371 $965,902 11 Prior Period Index Value (G11 / I11) >> $79.8921 ew Index Value (J11 / L11) >>$84.9481 MN OPQ Row Index Previous Index Value (COL I, ROW 11) New Index Value (COL K, ROW 11) Percent Change in Index (COL N - COL M) / COL M Component Weighting 3 Weighted Percentage Change 12 Material Handling Component 79.8921 84.9481 6.3284% 17.00%1.08% RS TUV Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL R + COL S) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL T - COL U) 13 Collection Component 4.5931% 14 Material Handling Component 1.0758% 15 Total 5.6690% 0.0000% 5.6690% 0.6690% 5.0000% STEP Five: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation WX TZAA Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (W * X) Cost Component Increased (W + T) Cost Components Reweighted to Equal 100% for Future Adjustments 16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.8992% 17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0172% 18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8554% 19 Other (Except Material Handling) 33.0000% 1.9037% 0.6282% 33.628%33.2425% 20 Material Handling Component 17.0000% 1.0758% 0.1829% 17.183% 16.9858% 21 Total 100.00% 5.67% 1.16% 101.16% 100.00% STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate Material Handling Component Index STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 583 Exhibit 2B Rate Adjustment Procedure - Bins Page 2 of 2 (1) (2) (3) (4) (5) (6) (7) (8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9) (10) For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportatio For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025. Labor: Driver rates based on labor agreement. The "New Index Value" shall be the annual average value of the indices ending December of the prior year. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20. Post collection facilities planned for use under this agreement. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application. The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. References to Indices are as follows: Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted. All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 584 Exhibit 2A Rate Adjustment Procedure - Roll-Offs Page 1 of 1 AB C D EF Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D) Index Source 1 Labor 26.250 27.040 3.0095% 30.000%0.90% Note 5 2 Fuel 230.298 299.751 30.1577% 6.000%1.81% 3 Equipment 153.450 156.743 2.1459% 25.000%0.54% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 39.000%2.25% 5 Total Collection Component 100.000% 5.499% GH I J K Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL G + COL H) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL I - COL H) 6Collection Component 5.4986% 0.0000% 5.4986% 0.4986% 5.0000% LMN O P Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (L * M) Cost Component Increased (L + N) Cost Components Reweighted to Equal 100% for Future Adjustments 7 Labor 30.0000% 0.9029% 0.2709% 30.271% 29.8556% 8 Fuel 6.0000% 1.8095% 0.1086% 6.109% 6.0248% 9 Equipment 25.0000% 0.5365% 0.1341% 25.134% 24.7893% 10 Other (Except Material Handling) 39.0000% 2.2498% 0.8774% 39.877%39.3304% 11 Total 100.00% 5.50% 1.39% 101.39% 100.00% (1) (2) (3) (4) (5)References to Indices are as follows: The "New Index Value" shall be the annual average value of the indices ending December of the prior year. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL P, ROWS 7-10. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate the Permitted Percentage Rate Change For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. STEP Three: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted. All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. Labor: Driver rates based on labor agreement. Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 585 Exhibit 2D Rate Adjustment Procedure - COther Rates Page 1 of 1 AB C D E F G Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL C + COL D) Maximum 5% any Rate Year (Next Period Caryover) Total Permitted Percentage Rate Adjustment (COL E - COL F) 1 CPI 288.798 305.458 5.7687%0.0000% 5.7687% 0.7687% 5.0000% (1) (2) (3) (4) STEP ONE: Calculate Percentage Change in Index For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value CPI CUURS49ASAL1E for the year ending December 2025. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the index value from the previous year's rate adjustment application. The "New Index Value" shall be the annual average value of the CPI CUURS49ASAL1E ending December of the prior year. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. Index shall be the CPI CUURS49ASA0L1E All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 586 EXHIBIT 2E Example CalculaƟon for Average Annual Change in Published Indices Fuel Index The fuel rate adjustment index is calculated using the “average annual change” as demonstrated in the example below, measured for the 12 months ending December prior to the Rate Year anniversary date compared to the 12 months ending December in the previous year. The Bureau of Labor StaƟsƟcs publishes the Producer Price Index for Fuels and Related Products and Power – Natural Gas. In the example below, the average annual index for the 12 months ended December 2022 of 299.7508 is entered in Column B, Row 2, “New Index Value,” of the example rate adjustment formula in Exhibit 2A, and the average annual index for the 12 months ended December 2021 of 230.2982 is entered in Column A, Row 2, “Previous Index Value” in Exhibit 2A. This would have resulted in a 30.1577% increase to the fuel component of rates as calculated in Column C, Row 2 of Exhibit 2A. PPI Commodity Data Series Id: WPU05522101 Not Seasonally Adjusted Series Title: PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted Group: Fuels and related products and power Item: Commercial natural gas, Pacific Base Date: 199012 Source: hƩps://data.bls.gov/Ɵmeseries/WPU05522101 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 184.3000 185.4000 183.2000 187.5000 190.8000 189.7000 186.2000 184.3000 181.9000 183.6000 190.3000 189.3000 186.3750 2014 195.0000 202.2000 216.3000 209.1000 206.2000 201.6000 203.1000 197.1000 195.3000 191.4000 193.6000 198.3000 200.7667 2015 196.6000 189.8000 183.1000 175.0000 169.3000 173.6000 173.5000 174.9000 171.0000 170.4000 171.1000 171.1000 176.6167 2016 173.1000 171.4000 164.2000 163.2000 161.4000 161.7000 170.3000 176.5000 176.5000 178.5000 183.4000 184.5000 172.0583 2017 192.1000 190.7000 188.5000 188.8000 188.1000 190.2000 187.4000 187.3000 185.8000 184.8000 190.9000 194.0000 189.0500 2018 193.1000 201.0000 195.8000 190.5000 184.6000 183.7000 185.1000 188.9000 186.1000 185.1000 191.3000 203.0000 190.6833 2019 203.5000 199.7000 198.5000 193.8000 187.0000 186.6000 185.4000 188.5000 184.4000 185.6000 190.9000 193.4000 191.4417 2020 195.1000 191.2000 187.3000 180.7000 178.8000 180.7000 178.5000 181.4000 185.6000 184.8000 200.8000 202.2000 187.2583 2021 206.2000 208.3000 212.7000 213.9000 215.9000 222.1000 223.6250 232.5240 238.5540 254.8440 267.3180 267.6130 230.2982 2022 269.8120 267.5040 265.5180 273.0230 291.6530 317.0510 306.7300 321.1900 330.3090 317.9990 312.2300 323.9900 299.7508 2023 363.911(P) 318.226(P) 284.739(P) 260.845(P) Percent Change in Index (299.7508 - 230.2982) / 230.2982 30.1577% 7.2.a Packet Pg. 587 EXHIBIT 2E Example CalculaƟon for Average Annual Change in Published Indices Equipment Index The PPI rate adjustment index is calculated using the “average annual change” as demonstrated in the example below, measured for the 12 months ending December prior to the Rate Year anniversary date compared to the 12 months ending December in the previous year. In the example below, the average annual index for the 12 months ended December 2022 of 156.743 is entered in Column B, Row 3, “New Index Value,” of the example rate adjustment formula in Exhibit 2A, and the average annual index for the 12 months ended December 2021 of 153.45 is entered in Column A, Row 3, “Previous Index Value” in Exhibit 2A. This would have resulted in a 2.146% increase to the Other cost category of the rates as calculated in Column C, Row 3 of Exhibit 2A. PPI Industry Data Series Id: PCU33612-33612- Series Title: PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted Industry: Heavy duty truck manufacturing Product: Heavy duty truck manufacturing Base Date: 200312 Source: hƩps://data.bls.gov/ Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 136.100 135.800 135.600 135.200 136.000 136.800 137.000 136.800 136.800 138.000 138.500 138.300 136.742 2014 138.800 139.200 139.300 139.100 139.100 139.100 139.100 139.400 139.400 139.600 139.700 139.600 139.283 2015 140.700 140.900 141.900 141.900 141.700 141.700 142.300 142.400 142.400 142.500 142.700 142.900 142.000 2016 144.300 144.300 144.200 144.600 144.800 144.600 144.600 144.800 145.200 145.000 145.200 145.400 144.750 2017 147.800 147.600 147.400 148.200 148.200 147.300 147.600 147.700 147.400 147.000 147.400 147.500 147.592 2018 147.600 148.500 148.700 148.500 148.800 148.800 149.200 150.300 150.300 150.300 150.300 150.300 149.300 2019 150.500 150.500 150.500 150.500 150.500 150.500 151.100 151.100 151.100 151.100 151.100 151.100 150.800 2020 151.800 151.800 151.800 151.800 151.800 151.800 152.600 152.600 152.600 152.700 152.700 152.900 152.242 2021 152.900 152.900 153.000 153.100 153.200 153.400 153.450 153.786 153.786 153.838 154.022 154.022 153.450 2022 154.646 154.701 154.701 154.701 156.845 157.527 157.546 157.683 157.743 158.147 158.232 158.446 156.743 2023 158.594 (P) 159.49(P) 159.491(P) 159.796(P) Percent Change in Index (156.743 - 153.450) / 153.450 2.146% 7.2.a Packet Pg. 588 EXHIBIT 2E Example CalculaƟon for Average Annual Change in Published Indices CPI Index The CPI rate adjustment index is calculated using the “average annual change” as demonstrated in the example below, measured for the 12 months ending December prior to the Rate Year anniversary date compared to the 12 months ending December in the previous year. In the example below, the average annual index for the 12 months ended December 2022 of 305.458 is entered in Column B, Row 4, “New Index Value,” of the example rate adjustment formula in Exhibit 2A, and the average annual index for the 12 months ended December 2021 of 288.798 is entered in Column A, Row 4, “Previous Index Value” in Exhibit 2A. This would have resulted in a 5.7987% increase to the Other cost category of the rates as calculated in Column C, Row 4 of Exhibit 2A. CPI for All Urban Consumers (CPI-U) Series Id: CUURS49ASA0L1E Not Seasonally Adjusted Series Title: All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted Area: Los Angeles-Long Beach-Anaheim, CA Item: All items less food and energy Base Period: 1982-84=100 Source: hƩps://data.bls.gov/Ɵmeseries/CUURS49ASA0L1E Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 236.321 236.585 237.113 236.908 237.043 236.819 236.625 237.591 237.654 238.825 238.064 237.852 237.283 2014 239.084 239.908 240.322 240.507 240.366 240.460 240.981 241.574 242.016 242.360 241.842 241.491 240.909 2015 242.003 242.806 243.957 244.138 244.800 245.236 245.394 245.896 246.488 247.539 248.120 248.140 245.376 2016 249.652 251.059 251.438 251.672 253.179 253.074 253.042 253.775 253.898 254.388 253.711 253.882 252.731 2017 256.209 257.518 257.903 258.472 258.872 258.924 260.020 260.698 261.277 262.829 262.656 262.960 259.862 2018 264.641 266.332 267.434 267.945 268.532 268.094 268.484 268.939 271.259 271.982 271.552 270.898 268.841 2019 273.579 273.716 274.954 276.185 276.421 277.384 277.590 278.131 278.935 279.732 279.781 278.812 277.102 2020 281.022 282.124 280.815 280.885 281.340 282.329 283.839 283.752 282.712 283.055 283.873 282.907 282.388 2021 282.846 282.860 283.389 286.255 287.323 288.958 290.279 290.327 291.056 292.702 294.154 295.428 288.798 2022 298.501 299.588 300.952 302.803 304.024 306.206 306.958 308.463 309.292 310.310 309.578 308.824 305.458 2023 312.000 313.159 313.828 316.523 Percent Change in Index (305.458 - 288.798) / 288.798 5.7687% 7.2.a Packet Pg. 589 EXHIBIT 6 CORPORATE GUARANTY Guaranty THIS GUARANTY (the “Guaranty) is given as of the ___ day of ___________, 2022. THIS GUARANTY is made with reference to the following facts and circumstances: A. ______________________, hereinaŌer (“Owner”) is a _______________________ organized under the laws of the State of ___________, which is wholly owned by _______________________. (Guarantor). B. Owner and the City have negoƟated an Agreement for CollecƟon, processing, and Disposal of Solid Waste dated as of __________ ____, (hereinaŌer “Agreement ”). A copy of this Agreement is aƩached hereto. C. It is a requirement of the Agreement, and a condiƟon to the City entering into the Agreement, that Guarantor guaranty Owner’s performance of the Agreement. D. Guarantor is providing this Guaranty to induce the City to enter into the Agreement. NOW, THEREFORE, in consideraƟon of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreement. Guarantor hereby irrevocably and uncondiƟonally guarantees to the City the complete and Ɵmely performance, saƟsfacƟon and observaƟon by Owner of each and every term and condiƟon of the Agreement which Owner is required to perform, saƟsfy or observe. In the event that Owner fails to perform, saƟsfy or observe any of the terms and condiƟons of the Agreement, Guarantor will promptly and fully perform, saƟsfy or observe them in the place of the Owner or cause them to be performed, saƟsfied or observed. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Owner due to its breach of the Agreement. 2. Guarantor’s ObligaƟons Are Absolute. The obligaƟons of the Guarantor hereunder are direct, immediate, absolute, conƟnuing, uncondiƟonal and unlimited, and with respect to any payment obligaƟon of Owner under the Agreement, shall consƟtute a guarantee of payment and not of collecƟon, and are not condiƟonal upon the genuineness, validity, regularity or enforceability of the Agreement. In any acƟon brought against the Guarantor to enforce, or for damages for breach of, its obligaƟons hereunder, the Guarantor shall be enƟtled to all defenses, if any, that would be available to the Owner in 7.2.a Packet Pg. 590 EXHIBIT 6 CORPORATE GUARANTY an acƟon to enforce, or for damages for breach of, the Agreement (other than discharge of, or stay of proceedings to enforce, obligaƟons under the Agreement under bankruptcy law). 3. Waivers. Except as provided herein the Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligaƟons under it for any reason whatsoever, including, without limitaƟon: (1) the insolvency, bankruptcy, reorganizaƟon or cessaƟon of existence of the Owner; (2) the actual or purported rejecƟon by a trustee in bankruptcy of the Agreement, or any limitaƟon on any claim in bankruptcy resulƟng from the actual or purported terminaƟon of the Agreement; (3) any waiver with respect to any of the obligaƟons of the Agreement guaranteed hereunder or the impairment or suspension of any of the City’s rights or remedies against the Owner; or (4) any merger or consolidaƟon of the Owner with any other corporaƟon, or any sale, lease or transfer of any or all the assets of the Owner. Without limiƟng the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code SecƟon 2819. The Guarantor hereby waives any and all benefits and defenses under California Civil Code SecƟon 2846, 2849, and 2850, including without limitaƟon, the right to require the City to (a) proceed against Owner, (b) proceed against or exhaust any security or collateral the City may hold now or hereaŌer hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agrees that the City may proceed against Guarantor for the obligaƟons guaranteed herein without taking any acƟon against Owner or any other guarantor or pledgor and without proceeding against or exhausƟng any security or collateral the City may hold now or hereaŌer hold. City may unqualifiedly exercise in its sole discreƟon any or all rights and remedies available to it against Owner or any other guarantor or pledgor without impairing the City’s rights and remedies in enforcing this Guaranty. The Guarantor hereby waives and agrees to waive at any future Ɵme at the request of the City to the extent now or then permiƩed by Applicable Law, any and all rights which the Guarantor may have or which at any Ɵme hereaŌer may be conferred upon it, by statute, regulaƟon or otherwise, to avoid any of its obligaƟons under, or to terminate, cancel, quit or surrender this Guaranty. Without limiƟng the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not affect the liability of the Guarantor hereunder: (a) at any Ɵme or from Ɵme to Ɵme, without noƟce the Guarantor, performance or compliance herewith is waived; (b) any other of any provision of its Agreement indemnificaƟon with respect to Owner’s obligaƟons under the Agreement or any security 7.2.a Packet Pg. 591 EXHIBIT 6 CORPORATE GUARANTY therefore is released or exchanged in whole or in part or otherwise dealt with; or (c) any assignment of the Agreement is effected which does not require the City’s approval. The Guarantor hereby expressly waives diligence, presentment, demand for payment or performance, protest and all noƟces whatsoever, including, but not limited to, noƟces of non-payment or non- performance, noƟces of protest, noƟces of any breach or default, and noƟces of acceptance of this Guaranty. If all or any porƟon of the obligaƟons guaranteed hereunder are paid or performed, Guarantor’s obligaƟons hereunder shall conƟnue and remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespecƟve of (a) any noƟce of revocaƟon given by Guarantor or Owner prior to such avoidance or recovery, and (b) payment in full of any obligaƟons then outstanding. 4. Term. This Guaranty is not limited to any period of Ɵme, but shall conƟnue in full force and effect unƟl all of the terms and condiƟons of the Agreement have been fully performed or otherwise discharged and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Owner’s obligaƟons under the Agreement. Guarantor shall not be released of its obligaƟons hereunder so long as there is any claim by the City against Owner arising out of the Agreement based on Owner’s failure to perform which has not been seƩled or discharged. 5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No noƟce to or demand on Guarantor shall be a waiver of any obligaƟon of Guarantor or right of the City to take other or further acƟon without noƟce or demand. No modificaƟon or waiver of any of the provisions of this Guaranty shall be effecƟve unless it is in wriƟng and signed by the City and by Guarantor, nor shall any waiver be effecƟve except in the specific instance or maƩer for which it is given. 6. AƩorney’s Fees. In addiƟon to the amounts guaranteed under this Guaranty, Guarantor agrees in the event of Guaranty’s breach of its obligaƟons to pay reasonable aƩorney’s fees and all other reasonable costs and expenses incurred by the City in enforcing this Guaranty, or in any acƟon or proceeding arising out of or relaƟng to this Guaranty, including any acƟon insƟtuted to determine the respecƟve rights and obligaƟons of the parƟes hereunder. 7.2.a Packet Pg. 592 EXHIBIT 6 CORPORATE GUARANTY 7. Governing Law: JurisdicƟon. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws, rules for all purposes including, but not limited to, maƩers of construcƟon, validity and performance. Guarantor agrees that any acƟon brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdicƟon over it by such courts. Guarantor appoints the following person as its agents for service of process in California: ___________ ___________ ___________ ___________ With a copy by cerƟfied mail to: ___________ ___________ ___________ ___________ 8. Severability. If any porƟon of this Guaranty is held to be invalid or unenforceable, such invalidity will have not have an effect upon the remaining porƟons of this Guaranty, which shall be severable and conƟnue in full force and effect. 9. Binding On Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substanƟally all of its assets and its shareholder(s) in the event of its dissoluƟon or insolvency. 10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execuƟon of this Guaranty has been authorized by all necessary acƟon under its ArƟcle of IncorporaƟon and By-Laws, and that the person signing this Guaranty on its behalf has the authority to do so. 11. NoƟces. NoƟce shall be given in wriƟng, deposited in the U.S. mail, registered or cerƟfied, first class postage prepaid, addressed as follows: To the City: City Manager 7.2.a Packet Pg. 593 EXHIBIT 6 CORPORATE GUARANTY City of Diamond Bar 21810 Copley Driver Diamond Bar, CA 91765 with a copy to the City Counsel at the same address. To the Guarantor: ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ By: ______________________ (Ɵtle) By: ______________________ (Ɵtle) 7.2.a Packet Pg. 594 EXHIBIT 7 CONTRACTOR’S FAITHFUL PERFORMANCE BOND Guaranty KNOW ALL MEN BY THESE PRESENTS: That , a California , as PRINCIPAL, and , a CorporaƟon organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinaŌer called OBLIGEE, in the penal sum of one-hundred twenty-five thousand dollars ($125,000) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the above bounden PRINCIPAL has entered into a contract, enƟtled "SOLID WASTE SERVICE FOR THE CITY OF DIAMOND BAR" with City, to do and perform the following work, to wit: Collect, Process and Dispose of Solid Waste generated within City, in accordance with the contract. NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligaƟons of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect. And the said Surety, for value received hereby sƟpulates and agrees that no change, extension of Ɵme, alteraƟon or addiƟon to the terms of the contract or to the work to be performed thereunder or the specificaƟons accompanying the same shall in any wise affect its obligaƟons on this BOND, and it does hereby waive noƟce of any such change, extension of Ɵme, alteraƟon or addiƟon to the terms of the contract or to the work or to the specificaƟons. 7.2.a Packet Pg. 595 EXHIBIT 7 CONTRACTOR’S FAITHFUL PERFORMANCE BOND In the event suit is brought by OBLIGEE to enforce the provisions of this bond, said Surety will pay to OBLIGEE a reasonable aƩorney’s fee, plus costs of suit, in an amount to be fixed by the court. IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this DAY OF 20 . a California CorporaƟon SURETY By: By: (PRINCIPAL) (ATTORNEY IN FACT) (SEAL) (SEAL) 7.2.a Packet Pg. 596 Exhibit 2A Rate Adjustment Procedure - SFD Carts Page 1 of 9 AB CD E F Row Cost Category Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D)Index Source 1 Labor 26.250 27.040 3.0095% 25.000%0.75% Note 10 2 Fuel 230.298 299.751 30.1577% 5.000%1.51% 3 Equipment 153.450 156.743 2.1460% 20.000%0.43% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 27.000%1.56% 5 Total Collection Component 77.000% 4.247% GH I J K L Row Facilities 4 Prior Period Tonnage 5 Prior Period Gate Fees 6 Prior Period Material Handling Cost (COL G * COL H) 12 Month Period Ending December Tonnage 7 Gate Fees Effective December 8 Estimated Material Handling Cost (COL J * COL K) 6 Refuse [FACILTY NAME] 14,643.4 $75.00 1,098,255 14,643.4 $78.75 1,153,168 7 Recycling [FACILITY NAME] 3,640.1 $90.00 327,609 3,640.1 $94.50 343,989 8 Organics [FACILITY NAME] 7,040.9 $90.00 633,681 7,040.9 $94.50 665,365 9 Unused - - - 10 Totals 25,324 $2,059,545 25,324 $2,162,522 11 Prior Period Index Value (G11 / I11) >> $81.3265 New Index Value (J11 / L11) >> $85.3928 MN OP Q Row Cost Category Previous Index Value (COL I, ROW 11) New Index Value (COL K, ROW 11) Percent Change in Index (COL N - COL M) / COL M Component Weighting 3 Weighted Percentage Change 12 Material Handling Component 81.3265 85.3928 5.0000% 23.00%1.15% RS TU V Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL R + COL S) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL T - COL U) 13 Collection Component 4.2470% 14 Material Handling Component 1.1500% 15 Total 5.3970% 0.0000% 5.3970% 0.3970% 5.0000% WX T Z AA Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (W * X) Cost Component Increased (W + T) Cost Components Reweighted to Equal 100% for Future Adjustments 16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.9302% 17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0234% 18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8802% 19 Other (Except Material Handling) 27.0000% 1.5576% 0.4205% 27.421%27.1398% 20 Material Handling Component 23.0000% 1.1500% 0.2645% 23.265% 23.0263% 21 Total 100.00% 5.40% 1.03% 101.03% 100.00% STEP TWO: Calculate Material Handling Component Index STEP ONE: Calculate Collection Component Percentage Change STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change STEP FIVE: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 597 Exhibit 2A Rate Adjustment Procedure - SFD Carts Page 2 of 9 AB AC AD AE Row Rate Category Current Rate Permitted Percentage Change (from Row 15 Column V) Rate Increase or Decrease (Column AB x Column AC) Adjusted Rate (Column AB + Column AD) 22 25.00$ 5.0000% 1.25 26.25$ 23 25.00$ 5.0000% 1.25 26.25$ 24 25.00$ 5.0000% 1.25 26.25$ STEP SIX: Calculate the Adjusted Rate City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 598 Exhibit 2A Rate Adjustment Procedure - SFD Carts Page 3 of 9 (1) (2) (3) (4) (5) (6) (7) (8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9) (10) Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportation Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted. Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. References to Indices are as follows: For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application. All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025. The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. The "New Index Value" shall be the annual average value of the indices ending December of the prior year. Post collection facilities planned for use under this agreement. Labor: Driver rates based on labor agreement. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application. For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 599 Exhibit 2B Rate Adjustment Procedure - Bins Page 4 of 9 AB CDE F Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D)Index Source 1 Labor 26.250 27.040 3.0095% 25.000%0.75% Note 10 2 Fuel 230.298 299.751 30.1577% 5.000%1.51% 3 Equipment 153.450 156.743 2.1459% 20.000%0.43% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 33.000%1.90% 5 Total Collection Component 83.000% 4.593% GH I JK L Row Facilities 4 Prior Period Tonnage 5 Prior Period Gate Fees 6 Prior Period Material Handling Cost (COL G * COL H) 12 Month Period Ending December Tonnage 7 Gate Fees Effective December 8 Estimated Material Handling Cost (COL J * COL K) 6 Refuse [FACILTY NAME] 7,662.1 $75.00 574,658 6,895.9 $78.75 543,051 7 Recycling [FACILITY NAME] 3,708.4 $90.00 333,756 3,708.4 $94.50 350,444 8 Organics [FACILITY NAME] $90.00 - 766.2 $94.50 72,407 9 Unused - - - 10 Totals 11,371 $908,414 11,371 $965,902 11 Prior Period Index Value (G11 / I11) >> $79.8921 ew Index Value (J11 / L11) >>$84.9481 MN OPQ Row Index Previous Index Value (COL I, ROW 11) New Index Value (COL K, ROW 11) Percent Change in Index (COL N - COL M) / COL M Component Weighting 3 Weighted Percentage Change 12 Material Handling Component 79.8921 84.9481 6.3284% 17.00%1.08% RS TUV Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL R + COL S) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL T - COL U) 13 Collection Component 4.5931% 14 Material Handling Component 1.0758% 15 Total 5.6690% 0.0000% 5.6690% 0.6690% 5.0000% STEP Five: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation WX TZAA Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (W * X) Cost Component Increased (W + T) Cost Components Reweighted to Equal 100% for Future Adjustments 16 Labor 25.0000% 0.7524% 0.1881% 25.188% 24.8992% 17 Fuel 5.0000% 1.5079% 0.0754% 5.075% 5.0172% 18 Equipment 20.0000% 0.4292% 0.0858% 20.086% 19.8554% 19 Other (Except Material Handling) 33.0000% 1.9037% 0.6282% 33.628%33.2425% 20 Material Handling Component 17.0000% 1.0758% 0.1829% 17.183% 16.9858% 21 Total 100.00% 5.67% 1.16% 101.16% 100.00% STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate Material Handling Component Index STEP THREE: Calculate Percentage Change in Weighted Material Handling Index STEP FOUR: Calculate the Permitted Percentage Rate Change City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 600 Exhibit 2B Rate Adjustment Procedure - Bins Page 5 of 9 AB AC AD AE Row Rate Category Current Rate Permitted Percentage Change (from Row 15 Column V) Rate Increase or Decrease (Column AB x Column AC) Adjusted Rate (Column AB + Column AD) 22 200.00$ 5.0000% 10.00 210.00$ 23 200.00$ 5.0000% 10.00 210.00$ 24 200.00$ 5.0000% 10.00 210.00$ STEP SIX: Calculate the Adjusted Rate City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 601 Exhibit 2B Rate Adjustment Procedure - Bins Page 6 of 9 (1) (2) (3) (4) (5) (6) (7) (8) The "Gate Fees" values shall be the most current per ton rate charged at each facility. (9) (10) For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. Note: For Contractor owned facilities, Gate fees will be negotiated based on an index for disposal and transportatio For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025. Labor: Driver rates based on labor agreement. The "New Index Value" shall be the annual average value of the indices ending December of the prior year. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL AA, ROWS 16-20. Post collection facilities planned for use under this agreement. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Tonnage" values will be set based on Contractor's Proposal. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Tonnage" values shall be the values from previous year's rate application. For Rate Year July 1, 2026 rate adjustment application, the "Prior Period Gate Fee" values will be set based on Contractor's Proposal. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Prior Period Gate Fee" values shall be the values from previous year's rate application. The Tonnage for each facility shall be the total tons delivered to the facility for the previous 12 month period ending December 31st. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. References to Indices are as follows: Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted. All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 602 Exhibit 2A Rate Adjustment Procedure - Roll-Offs Page 7 of 9 AB C D EF Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Component Weighting 3 Weighted Percentage Change (COL C * COL D) Index Source 1 Labor 26.250 27.040 3.0095% 30.000%0.90% Note 5 2 Fuel 230.298 299.751 30.1577% 6.000%1.81% 3 Equipment 153.450 156.743 2.1459% 25.000%0.54% 4 Other (Except Material Handling) 288.798 305.458 5.7687% 39.000%2.25% 5 Total Collection Component 100.000% 5.499% GH I J K Row Cost Component This Period Percentage Rate Adjustment Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL G + COL H) Maximum 5% any Rate Year (Next Period Carryover) Total Permitted Percentage Rate Adjustment (COL I - COL H) 6Collection Component 5.4986% 0.0000% 5.4986% 0.4986% 5.0000% LMN O P Row Cost Component Component Weighting This Period Percentage Change as Applied to Rate Adjustment Increase in Cost Components (L * M) Cost Component Increased (L + N) Cost Components Reweighted to Equal 100% for Future Adjustments 7 Labor 30.0000% 0.9029% 0.2709% 30.271% 29.8556% 8 Fuel 6.0000% 1.8095% 0.1086% 6.109% 6.0248% 9 Equipment 25.0000% 0.5365% 0.1341% 25.134% 24.7893% 10 Other (Except Material Handling) 39.0000% 2.2498% 0.8774% 39.877%39.3304% 11 Total 100.00% 5.50% 1.39% 101.39% 100.00% QR S T Row Rate Category Current Rate Total Weighted Percentage Change (from Row 6 Column K) Rate Increase or Decrease (Column Q x Column R) Adjusted Rate (Column Q + Column S) 12 225.00$ 5.0000% 11.25 236.25$ 13 225.00$ 5.0000% 11.25 236.25$ 14 225.00$ 5.0000% 11.25 236.25$ (1) (2) (3) The "New Index Value" shall be the annual average value of the indices ending December of the prior year. For Rate Year July 1, 2026 rate adjustment application, "Component Weighting" shall be based on Contractor's For Subsequent rate adjustment applications beginning with Rate Year July 1, 2027, "Component Weightings" shall be as calculated in COL P, ROWS 7-10. STEP ONE: Calculate Collection Component Percentage Change STEP TWO: Calculate the Permitted Percentage Rate Change For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value of the indices for the year ending December 2025. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the indices values from the previous year's rate adjustment application. STEP THREE: Calculate the Cost Components Weighting for Future Rate Adjustment Calculation STEP FOUR: Calculate the Adjusted Rate City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 603 Exhibit 2A Rate Adjustment Procedure - Roll-Offs Page 8 of 9 (4) (5)References to Indices are as follows: Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. Equipment: PCU33612-33612-PPI industry data for Heavy duty truck manufacturing, not seasonally adjusted. All Other: CUURS49ASA0L1EAll items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. Labor: Driver rates based on labor agreement. Fuel: WPU05522101PPI Commodity data for Fuels and related products and power-Commercial natural gas, not seasonally adjusted. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 604 Exhibit 2D Rate Adjustment Procedure - COther Rates Page 9 of 9 AB C D E F G Row Index Previous Index Value 1 New Index Value 2 Percent Change in Index (COL B - COL A) / COL A Allowed Carry Over Prior Period(s) Total Allowed Percentage Rate Adjustment (COL C + COL D) Maximum 5% any Rate Year (Next Period Caryover) Total Permitted Percentage Rate Adjustment (COL E - COL F) 1 CPI 288.798 305.458 5.7687%0.0000% 5.7687% 0.7687% 5.0000% (1) (2) (3) (4) STEP ONE: Calculate Percentage Change in Index For Rate Year July 1, 2026 rate adjustment application, the "Previous Index Value" shall be the annual average value CPI CUURS49ASAL1E for the year ending December 2025. For subsequent rate adjustment applications beginning with Rate Year July 1, 2027, the "Previous Index Value" shall be the index value from the previous year's rate adjustment application. The "New Index Value" shall be the annual average value of the CPI CUURS49ASAL1E ending December of the prior year. Rate increases are limited to no more than 5% per year with a carryover allowance for any amount over 5%. Index shall be the CPI CUURS49ASA0L1E All items less food and energy in Los Angeles-Long Beach-Anaheim, CA, all urban consumers, not seasonally adjusted. City of Diamond Bar Solid Waste Services Franchise Agreement 7.2.a Packet Pg. 605 Subject: Diamond Bar Addendum #2 From: Enrique Vazquez <enrique@sloanvazquez.com> Date: 7/20/2023, 5:35 PM To: "Quiroa, Lily" <LQuiroa@wm.com>, David Perez <DavidPerez@zerepmanagement.com>, Jesse Quintana <JesseQuintana@zerepmanagement.com> CC: 'Alfa Lopez' <ALopez@DiamondBarCA.Gov> Lily Quiroa, David Perez, AƩached is Addendum #2 consisƟng of responses to quesƟons submiƩed as of July 10, 2023. Please acknowledge receipt. Best regards, -- Enrique Vazquez Sloan Vazquez McAfee 626-347-3226 www.sloanvazquez.com AƩachments: DB RFP Addendum #2.pdf 377 KB AƩachment A..pdf 1.0 MB ͓ʹ ͳͳ ͳȀͶȀʹͲʹͶǡͳͳǣͶͻ 7.2.a Packet Pg. 606 REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES ADDENDUM #2 Issued by Prepared by: 3002 Dow Avenue, Suite 116, Tustin, CA 92780 Office: 866.241.4533 info@sloanvazquez.com · www.sloanvazquez.com Contact: Enrique Vazquez enrique@sloanvazquez.com 626-347-3226 July 20, 2023 7.2.a Packet Pg. 607 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 2 This addendum #2 to the RFP for Solid Waste Services consists of answers to questions submitted by proposers as of July 10, 2023, the deadline to submit questions. Note that the City has attempted to provide all information available by answering these questions. For questions that consisted primarily of requests to modify the language of the draft agreement, you are reminded that the process is to submit substitute language with your proposals for the City’s consideration. This step in the process is for questions and answers and not for negotiating. Negotiations will be limited to sections identified by proposers and for which substitute language is provided. For questions with a response of “Under Review”, the City will attempt to respond to these prior to the proposal due date but is not obligated to do so. Proposers are reminded to prepare their proposal without further answers to the questions already provided. And also include these questions in your proposals along with substitute language. Although the deadline to submit questions has expired, you are welcome to contact Enrique Vazquez through DiamondBarRFP@sloanvazquez.com or at 626-347-3226 with any technical questions regarding the worksheets. Also, if there are questions that arise during the preparation of the proposals, you may submit additional questions and every attempt will be made to respond to them. However, there is no guarantee that further questions will be answered. Proposer must continue the preparation of their proposals with the information provided thus far. RESPONSES TO QUESTIONS Question #1: There is subscription service for Commercial but there is none for Residential. Just confirming that Attachment 6 Residential service count is accurate. Need senior subscription information. Response: Proposers are to use the residential service subscription counts that are included in Attachment 6 Form 2.1 SFD. These service counts will be used to estimate the total revenue requirement of each proposal. The City does not have a breakdown of cart size for the 3,425 senior subscription count. For the purpose of this RFP, it will be assumed that the 3,425 senior subscriptions are for 64-Gallon cart size. Note: Footnote #1 incorrectly states 3,325 senior discounted accounts. This should be 3,425. The subscription counts for commercial service included in Attachment 6 Form 2.2 Commercial Rates represent the best-known subscription information available to the City. Each proposer must provide their own projection of subscription levels based on their own assumptions used for the preparation of their own proposal. As stated in the RFP, each proposer should take whatever steps it believes are necessary to determine the actual service requirements of the City and understand service conditions when preparing a proposal. 7.2.a Packet Pg. 608 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 3 Question #2: Please clarify why there are two rates. Additionally, there does not appear to be counts for 2A.? Response: Rate schedule Exhibit 2A is transitional and will not be required at the start of the new agreement. Please note that under the new agreement rates for muti-family of five or less units with cart service will be equivalent to the SFD rates and rates for multi-family dwellings of more than five will be equivalent to the Commercial cart rates. The 2023/24 rate schedule for both residential and commercial services is included at Attachment A. Question #3: Regarding Curbside Used Oil and Oil Filter Collection and Door-to-Door HHW. Handling hazardous materials of both types is not recommended especially oil in containers that may break and spill onto public property. HHW is also not recommended. Residents can be given free HHW cleanup event information sponsored by the County of Los Angeles. In the event City still requests this service, what collection history is available for this service? Response: The City is requesting Door-to-Door HHW Service, Curbside Used Oil and Filter Collection, and assistance to the City in increasing awareness of Household Hazardous Waste events by promoting the Los Angeles County Household Hazardous Waste collections held in Diamond Bar. 7.2.a Packet Pg. 609 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 4 The following data was provided by the existing hauler for 2022. Waste Oil: 16 gallons Oil Filters: Zero At Your Door Program: 0.73 tons of trash; 9.35 Tons Recycled E-Waste 16.6 Tons Question #4: Regarding the CalRecycle Compliance Fee, there may be an uneven allocation of this amount. Not sure if there is a forecasted level of activity in each sector to allocated this cost. CALRECYCLE Compliance Fee: Contractor shall pay to the City a CalRecycle Compliance Fee of Seven- Hundred Fifty Thousand Dollars ($750,000) adjusted annually as described in draft Agreement Section 9.2 and 9.7. The CalRecycle Compliance Fee amount represents a reasonable allocation of the City’s budgeted costs to comply with State mandates resulting from the enactment of AB 939 and subsequent related legislation including, but not limited to: AB 2176 (Chapter 879, Statutes of 2004), SB 1016 (Chapter 343, Statutes of 2008), AB 341 (Chapter 476, Statutes of 2011), AB 1826 (Chapter 727, Statutes of 2014), and SB 1383 (Chapter 395, Statutes of 2016) which require jurisdictions to implement solids waste Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. Should the City issue separate franchises for Residential and Commercial services, each franchisee shall pay a minimum CalRecycle fee of Three-Hundred Seventy-Five Thousand Dollars ($375,000). Response: The AB 939 Fee were allocated based on historical proportionate payments of AB 939 Fees by the haulers. Question #5: Regarding the Bin Pushout Service, there needs to be a distance limit. Response: Proposer must prepare their proposal based on the requirements specified in the RFP. Proposers may submit alternative proposals for the City’s consideration, however the City is under no obligation to review or consider any alternative proposal submitted. Question #6: Previous says no additional charge. 7.2.a Packet Pg. 610 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 5 Regarding charges for additional services, the Contractor’s proposed rate schedule shall include all charges for special services, including but not limited to: x Additional carts. x Scout service. x Locking bins. x Pulling or pushing containers to a collection vehicle. x Steam cleaning containers (excluding carts) more frequently than one time per year as requested by the customer. x Additional bulky item collection services. Response: Pulling or pushing containers to a collection vehicle shall be provided at no additional charge. Proposers may offer rates for any ancillary services that are not specifically listed or disallowed in the RFP or the draft agreement. Question #7: Regarding rate adjustments procedures, the labor category assumes there is a Labor Agreement such as with unions. Need to modify for non union. Response: Noted. Question #8: Draft Agreement call for a ten year contract with a 24 month extension. Would the City consider a 5 year extension or a rolling term? With the additional investment required for regulation(s) compliance most contracts awarded in the Southern California area are acknowledging that challenge and opting for longer terms or longer and multiple extensions. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #9: RFP states: When language differs between the RFP Sections and the draft agreement (Attachment 1), please confirm that the language of the draft agreement prevails. 7.2.a Packet Pg. 611 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 6 Response: For clarification, the statement in RFP Section 1, Page 1 which states, “If there are differences between this RFP and the Agreement, the terms and conditions in the Agreement shall prevail” was intended to mean differences between the RFP and the final agreement. Should proposers find differences or during the proposal preparation process, those should be identified for further clarification. Question #10: Will the City please revise Attachment 6 to the RFP (for all three lines of business) to limit the disclosure requirements of the Rate Proposal Forms or clarify that proposers are not required to provide any information that contains protected intellectual property, confidential information, or proprietary information? The information requested in Attachment 6 to the RFP (for each line of business) includes information that is unrelated to this RFP or the services, as well as protected proprietary information. By way of example only, the information requested includes profit assumptions, direct and indirect wage and compensation related to Contractor’s employees, costs and expenses related rent, utilities, telephone, information technology, office supplies, bad debt, accounting, legal, public outreach, and payments to the City (other than franchise fees). The requested information is excessive and is not typically requested in an RFP bidding process and does not have bearing on responses by proposers. Response: The information requested is specifically related to the proposed services requested in the RFP. It is common for this information to be requested and based on SVM’s experience managing solid waste procurement for municipalities, this is information has always been provided. Personal information is not being requested. For Equipment R&M and allocated costs, proposers may enter lump sums instead of itemizing each cost. The cost information is needed to evaluate the reasonability of the rate proposal. Question #11: Agreement Section 1.1, Section 14.5, Section 14.6. Will the City revise these sections to permit an assignment by Contractor to an affiliate having the same corporate parent entity? Transfer of Contractor’s obligations to a subsidiary or sister company will have no effect on the quality or timing of services provided. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. 7.2.a Packet Pg. 612 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 7 Question #12: Section 1.30. Will the City please add Excluded Waste to the definition of Container Contamination for clarity? This section includes “non-Solid Waste items” but doesn’t specify that Excluded Waste is prohibited. Response: The City is agreeable to adding Excluded Waste. Nevertheless, please provide proposed substitute language as required under Section 5 of the RFP. Question #13: Section 1.59. As drafted the definition of Organic Waste is overly broad and includes material that is not acceptable for processing by the applicable facilities. In addition, some of the products defined here are treated as solid waste (e.g. organic textiles and carpets) or recyclables (e.g. paper products, and printing and writing paper). Will the City revise this section accordingly or confirm that it will discuss reasonable revision to this definition in negotiations to correctly allocate these items into their proper definitions? Response: The intent is to ensure compliance with AB 341, AB 1826, and SB 1383. Proposers may describe their services and list the materials that will be included or excluded from the program. The final agreement will be modified to reflect the programs described by the successful hauler. Question #14: Section 1.65. This definition is unclear and includes three total definitions: a contract definition (Exhibit 4) and conflicting statutory definitions. Will the City please revise this definition to state that Recyclables are just those items included in Exhibit 4 for clarity and consistency. Response: The intent is to ensure compliance with AB 341, AB 1826, and SB 1383. Proposers may describe their services and list the materials that will be included or excluded from the program. The final agreement will be modified to reflect the programs described by the successful hauler. Question #15: Section 1.74. This definition is similar but not identical to the definition in Public Resources Code Section 40191 or Municipal Code Section 8.16.020. Will the City please revise to align this definition with applicable law? Response: Under review. 7.2.a Packet Pg. 613 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 8 Question #16: Section 2.1. Will the City please revise this section to state: “Contractor agrees to and shall timely take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense in accordance with Section 11.1.” for consistency with the indemnity provisions of this Agreement? Response: Under review. Question #17: Section 2.5. Will the City revise this section to provide for extension of the term upon written agreement with the Contractor? Unilateral extension rights do not permit Contractor to meet and confer with the City to discuss or account for circumstances on the ground that may warrant amendment to the agreement and places an undue and burden on Contractor. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #18: Section 2.7. As written, this section includes prospective and on-going obligations of Contractor, which by definition cannot be conditions precedent to effectiveness of the Agreement. Because these prospective and on-going obligations are addressed in subsequent sections of the agreement, will the City permit revision to this section during negotiations to remove such prospective and on-going obligations? Response: Under review. Question #19: Section 2.9(A). Sold or donated Organic Waste should not be exempted from the franchise because unlike recyclables it is a putrescible waste and not a commodity, and therefore is subject to the solid waste laws and regulations. In addition, opening the door to exempting Organic Waste from the scope of franchise agreements will lead to conflicts with the diversion goals, indemnity obligations, and potentially SB 1383 requirements including reporting, for example. As such, will the City remove this organics exemption? 7.2.a Packet Pg. 614 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 9 Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #20: Section 2.10. As drafted, this section suggests that Section 2.10.2 and Section 2.10.3 provide a rate adjustment mechanism for City directed changes. However, these sections do not provide for an adjustment mechanism, only certain circumstances under which adjustments are made. Will the City please revise this section to clarify how adjustments will be made, or in the alternative, permit revision to the agreement during negotiations to clarify how such adjustments are made? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #21: Section 3.2.13. Will the City please clarify whether the give-a-way is intended to be of mulch (as in the Agreement), or of compost (as on p. 7 of the May 3, 2023 version of the RFP), or some combination of both? The type of recovered organic waste product has different cost implications. Response: The Draft Franchise Agreement is correct. This requirement is for a mulch give-away. The City is required to procure 4,537 tons of recovered organic waste annually through December 31, 2026. The City can meet its procurement requirement by contracting with the hauler that uses or gives away organic end products on the City’s behalf. To this end, proposer may offer compost give-away service. The mulch give-away requirement may be combined with any proposed assistance to the City with procuring recovered organic waste products as addressed in RFP Section 3.8. Question #22: Section 3.4. Will the City provide a historical breakdown of estimated annual hauls and tons by material type for temporary and permanent Roll-Off Box customers? Form 2.3 appears to ask for this differential pricing and appears to be in conflict with this section. Response: The City does not have the annual hauls and tons by material for temporary and permanent roll-off box customers. PLEASE NOTE: Only provide the proposed rates in Column B. Service assumptions for 7.2.a Packet Pg. 615 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 10 Column D in Form 2.3 Roll-Off Rates are no longer required. Roll-Off and On-Call services will be evaluated on a per unit prices basis. Roll-Off and On-call services revenue will not be used to evaluate total revenue requirement. Accordingly, sections that request cost information for Roll-Off and On-Call services do not need to be filled in. Row 1 in Form 2.3 Roll-Off Rates is requesting rates for both permanent and temporary services. Row 2 is requesting the same for customer owned equipment (roll-off boxes, compactors). Question #23: Will the City consider differentiating fees for open top vs. compactor Roll-Off Box services, as the latter require additional service time? Response: Proposer must prepare their rate proposal based on the term specified in the RFP. Proposers may propose alternative proposals for the City’s consideration, however the City is under no obligation to consider or review any alternative proposal submitted. Question #24: Section 3.6. Will the City clarify that for Bulky Item Pickups that exceed the four Bulky Item limit for each pick up, Contractor may charge the applicable fee on the approved rate schedule? Will the City clarify that the cubic yards measure of Bulky Items (as on p. 6 of the May 3, 2023 version of the RFP) is specific only to bundled yard waste products? The RFP and Section 3.6 of the agreement appear to conflict as to the amount of acceptable Bulky Items, as some Bulky Items cannot be easily quantified by volume. Response: Contractor may charge a per item fee for each bulky item that exceeds four for each pickup. Contract may also charge a per event fee for each pickup event that exceeds four in a [calendar] year. Each event over four includes four items at the same rate. The reference in the RFP allowing customers to put out up to 3 cubic yards of material may be removed. It was intended to refer to Refuse Cart Overage requirement in page 5 of the RFP and in Section 3.2.3 in the Draft Agreement. Question #25: Section 3.7.1. Will the City provide a list of current and potential City locations to be serviced under this Agreement? Will the City please revise this section to provide that the parties will meet and confer once every two years to assess the scope of services provided at City Facilities, and any appropriate rate adjustments 7.2.a Packet Pg. 616 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 11 related to increased services at those facilities? As written, this section is unrestricted as to the amount of service and the number of facilities, which is unduly burdensome on the Contractor. Response: The list of facilities was provided with RFP as Attachment 5. This requirement is standard in Franchise agreements in California. Question #26: Section 3.7.2. Will the City please revise this section to clarify that Contractor shall provide services under this Section for only events organized and staffed by the City, and that City-sponsored events, organized and staffed by third parties, are excluded from this section and shall receive service from Contractor in accordance with Section 3.7.6? Will the City agree to a set maximum number of events on an annual basis? As written, this section is unrestricted as to the number of events which creates an undue burden on the Contractor. In the alternative, will the City revise this section to permit rate adjustments for changes to the scope of services or addition of events serviced by Contractor under this section? Will the City clarify whether Organics Carts and Bins provided by Contractor will be primarily intended for and used exclusively by vendors under this section? Containers at public events are often extremely contaminated resulting in significant costs to remediate. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #27: Section 3.7.6. Will the City clarify that recycling services provided under this section to Large Venues are provided under separate agreements? This section is unclear as drafted. Response: Under review. Question #28: Section 4.1.6(A) and (B). Will the City please change the period of overage incidents from a six-month period to a rolling twelve-month period? A rolling twelve-month period results in more consistent monitoring and correction of behavior. 7.2.a Packet Pg. 617 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 12 Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #29: Section 4.1.12. Will the City please revise this section to clarify that nothing in this section requires Contractor to provide any confidential information, proprietary information, or protected intellectual property of Contractor? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #30: Section 4.1.13. Will the City please replace instances of “Hazardous Material” with “Excluded Waste” (as defined in Section 1.43)? Excluded Waste is the appropriate defined term to use in this section. Response: Agreed. Please include in proposal as substitute language. Question #31: Section 5.1. Will the City please revise this Section to clarify that Contractor will cooperate with the City in any audits or investigation of such quantities “in accordance with the terms of this Agreement”? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #32: Section 5.3. Will the City revise this section to remove the obligation that Contractor disclose the revenue generated from Recyclables? Where Recyclables are sold, and for how much, is protected proprietary information. 7.2.a Packet Pg. 618 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 13 Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #33: Section 6.2.5. Will the City revise this section to clarify that disputes may be resolved reasonably by the City? In addition, will the City make the second paragraph mutual regarding the Contractor’s rights or remedies in any dispute with a third party? It is foreseeable that Contractor may have claims against third parties that cannot be contractually limited. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #34: Section 8.1. Will the City revise this section to state that Contractor shall conduct the data collection, information and recordkeeping, and reporting activities under this Agreement and as required by Applicable Law in its performance of obligations under this Agreement? As written, this section is vague and confusing and is so generalized it makes it impossible for Contractor to determine, and ultimately perform, its obligations under Article 8. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #35: Section 8.2 and Section 8.3. The scope of financial records required to be disclosed under these sections, particularly Section 8.2.2 and Section 8.3.4, is too broad and requires disclosure of confidential information, proprietary information, and protected intellectual property. Please revise this section, or confirm that the City is willing to discuss language during negotiations, to limit the scope of records, to provide for review but not possession by the City of confidential or proprietary information, and to include protections for Contractor’s confidential information, proprietary information, and protected intellectual property. 7.2.a Packet Pg. 619 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 14 Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #36: Section 8.2.7. Will the City remove the 90-day limitation for undercharges? This is unnecessarily punitive to Contractor where we are billing on a quarterly basis. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #37: Section 8.3.2(G). This section requires additional reporting above and beyond what is required by the Agreement or by CalRecycle. Will the City add language that the additional reports must be “readily available and related to Contractor’s performance of this Agreement”? In addition, will the City add language that Contractor is entitled to compensation for preparing reports that may be reasonably required but contain information or data not readily available to Contractor from records it is required to maintain under this Agreement? Preparation of additional reports requires substantial investment of Contractor’s resources to prepare. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #38: Section 8.3.3(G). Will the City revise this section to clarify that RNG, as defined under SB 1383, is not available for commercial use in the City, but may be utilized by Contractor at such time as it becomes commercially available in the City? Response: The RFP does not require the use of RNG vehicles (Refer to Addendum #1 RFP section Collection Vehicle Requirements page 11. Section 8.3.3(G) is a reporting requirement only If there something to report. 7.2.a Packet Pg. 620 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 15 Question #39: Section 8.4. Will the City revise this section to limit this section only to those reports, pleadings, applications, notifications, Notice of Violation, communications, or other material relating to Contractor’s performance of services under this Agreement that would limit or prohibit Contractor’s performance of this Agreement? As written this section is too broad and includes all routine and ordinary communications to such agencies that otherwise have no bearing on Contractor’s performance under this Agreement. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #40: Section 10.3. Will the City please revise this Section to state that any excess adjustment that has not yet been applied to the rate in the final year of the Term will be implemented in the final rate year? In addition, will the City clarify that should any CPI adjustment result in a negative rate adjustment, the adjustment for that year shall be 0%, and any negative adjustment will be rolled over to be applied to the subsequent year? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #41: Section 10.5. Will the City please revise this Section to state that if Contractor provides reasonable support and justification in its request for an extraordinary rate adjustment the City will not unreasonably deny the request? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #42: Section 11.1.1, Section 11.1.3, and Section 11.3. 7.2.a Packet Pg. 621 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 16 Will the City revise these sections to permit Contractor to select counsel for its indemnity obligations under the Agreement? As the party defending claims under these sections, it is paramount that the Contractor is able to choose its counsel provided such counsel is reasonably acceptable to the City. Further, the City has the right to choose its separate counsel under Section 11.3 if it would like to participate in the defense of any claim, so it is appropriate that Contractor be able to appoint counsel its counsel. Will the City please revise this section to clarify that Contractor’s indemnity obligations are limited to the extent permitted by Applicable Law, including without limitation, Public Resources Code Section 40059.1? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #43: Section 11.1.2.A. Will the City please revise this section to clarify as follows: …that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Contractor in its performance under this Agreement that:…” It is appropriate to clarify the scope of the indemnity under this section to Contractor’s performance under the Agreement. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #44: Section 11.1.3. Will the City revise this section to remove the first sentence regarding unconditional guarantees of compliance with the requirements of AB 939? It is not possible for any proposer to make this guarantee as written, as the agreement contemplates circumstances where performance under the agreement might be excused, such as Section 13.8. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. 7.2.a Packet Pg. 622 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 17 Question #45: Section 11.6. Will the City revise this section to remove the requirement that Subcontractors meet the insurance requirements under the Agreement, as Subcontractors are unlikely to be able to meet these requirements. Subcontractors will also have insurance, but it is unlikely to be in the amounts required by the City in Article 11. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #46: Section 11.8. Will the City permit reasonable and mutually agreeable changes to the insurance provisions of this Agreement during negotiations to align the requirements with the policies held by proposers? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #47: Section 12.1. Will the City discuss reasonable revisions to Section 12.1 during negotiations with proposers? As written, this section is too broad and extremely burdensome on proposers—it is not reasonable, practical, or possible from a liability perspective for the City to take possession Contractor’s equipment and property, require Contractor to maintain all such equipment and property, and employee Contractor’s employees to perform the services if the Contractor is not able to perform as contemplated by this Section. It is more reasonable to revise this section to state that in the event that the City reasonably determines that the accumulation of waste endangers or menaces public health, safety, or welfare, the City may contract with a third-party to perform the services until such time as Contractor is able resume performance. The remaining sections of this Article must be revised to align with changes made to Section 12.1. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. 7.2.a Packet Pg. 623 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 18 Question #48: Section 13.1. Will the City discuss reasonable revisions to this Section during negotiations to remove duplicative events of default and clarify ambiguous standards of performance? Many of the events of default listed in this section are co-extensive with each other, leading to confusion and ambiguity about which standard applies. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #49 Section 13.2. Will the City revise this section to state that, for events that cannot reasonably be cured in ten (10) Business Days or thirty (30) calendar days, as applicable, will be resolved in a reasonable time as agreed by the parties? Some events of default may not be reasonably able to resolve in the time prescribed and flexibility in this regard benefits both Contractor and the City. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #50: Section 13.5. In addition to the revisions in Section 8.2 and Section 8.3, this section explicitly requires Contractor to provide proprietary information to the City, which is unreasonable and unacceptable. Please revise this section or confirm that the City is willing to discuss reasonable revision to this section during negotiations to clarify that Contractor shall provide immediate access to non-confidential, non- proprietary business records it is required to maintain under this Agreement. Contractor is not able to provide to or put in the City’s possession confidential information, proprietary information, or protected intellectual property. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. 7.2.a Packet Pg. 624 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 19 Question #51: Section 13.7. Will the City please provide its basis for the amounts detailed in Section 13.7 and detail how the City determined these amounts were a reasonable estimate of damages for the alleged failure? Further, some damages listed in this section are determinable at the time of assessment and therefore cannot be liquidated damages by definition, making them unlawful penalties. Other penalties are unduly burdensome on Contractor or do not cite to particular sections of the Agreement so they are ambiguous as to the standards and obligations required to comply. Will the City permit mutually agreeable revisions to this Section during negotiations to resolve these issues? Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #52: Section 13.8.1. Will the City revise the language below as follows: The interruption or discontinuance of Contractor' s services caused by one (1) or more of the events excused shall not constitute a default by Contractor under this Agreement provided that other services in Diamond Bar (such as and without limitation electricity, gas, water, public transportation (including bus, tram, or train service), or Solid Waste Services) have been similarly disrupted as a direct result of the catastrophic event. It is reasonable and foreseeable that a Force Majeure event contemplated by this Section would impact only solid waste services but would not impact other services delivered to properties in the City that are delivered by pipe or by cable, such as electricity, gas, or water. Rather, public transportation, which relies on the use of drivers and surface streets, is a much closer analog and is a more appropriate comparison. In the alternative, please remove the language above entirely. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #53: Section 13.8.2. Will the City revise this section to state that Contractor will provide a contingency plan within fourteen (14) days of an event of labor unrest? Because the contingency plan depends on the facts and circumstances of the event of labor unrest, it is not practical to provide a contingency plan in advance of the event of labor unrest. 7.2.a Packet Pg. 625 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 20 Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #54: Section 14.9. This provision, as drafted, conflicts with applicable data security and privacy laws, such as the California Consumer Privacy Act’s protection of certain information and laws protecting trade secrets and business proprietary information. Will the City add language to this section clarifying that: (1) nothing in this Section requires Contractor to provide to the next contractor any confidential information, proprietary information, or trade secrets, which are otherwise protected under the Agreement; and (2) that any such transfer must comply with applicable laws, including, but not limited to, laws regarding data security and privacy laws? Will the City remove the language requiring the Contractor to provide security codes used to access garages and Bin enclosures? Customers, not Contractor, provide means of access. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. Question #55: Section 14.18. Consistent with Section 8.2 and Section 8.3, the scope of financial records required to be disclosed under this Agreement is unreasonably broad and requires disclosure of confidential information, proprietary information, and protected intellectual property. Please revise this section, or confirm that the City is willing to discuss language during negotiations to limit the scope of records, to provide for review but not possession of confidential or proprietary information, and to include the following language which is typical for provisions of this type: Notwithstanding anything to the contrary, Contractor acknowledges that City is legally obligated to comply with the California Public Records Act (“CPRA”). City acknowledges that Contractor may consider certain records, reports, or information contained therein, which Contractor is required to provide to City under this Agreement, to be of a proprietary or confidential nature. In such instances, Contractor will inform City in writing of which records are considered propriety or confidential. At such time as City receives a request for records under the CPRA or Federal Freedom of Information Act or a subpoena or other court order requesting disclosure of records that are marked or identified by Contractor as proprietary or confidential, City shall notify Contractor of the request, subpoena or order and of City’s obligation and intent to provide a response within 10 days. Contractor shall within five days either: (i) 7.2.a Packet Pg. 626 City of Diamond Bar, California Addendum #2 RFP for Solid Waste Services July 20, 2023 Page 21 consent in writing to the disclosure of the records; or (ii) seek and obtain, at Contractor’s sole cost and expense, the order of a court of competent jurisdiction staying or enjoining the disclosure of the records. Response: As per Section 5 of the RFP, proposers may propose alternative language in the Draft Agreement for the City’s consideration, however the City is under no obligation to accept it. Negotiations will be limited to section for which proposers offer alternative language. 7.2.a Packet Pg. 627 City of Diamond Bar DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ ZĞƐŝĚĞŶƟĂů ZĂƚĞƐƉƉƌŽǀĞĚĨŽƌ:ƵůLJϭ͕ϮϬϮϯ-:ƵŶĞϯϬ͕ϮϬϮ4 1 | Page Container Size Monthly ZĂƚĞ Standard service with 35-gallon refuse cart $31.09 Standard service with 64-gallon refuse cart $38.31 Standard service with 96-gallon refuse cart $45.96 Senior service with 35-gallon refuse cart $26.76 Senior service with 64-gallon refuse cart $33.03 Senior service with 96-gallon refuse cart $39.40 Multi Family (MF) Standard service with 35-gallon refuse cart $29.07 MF Standard service with 64-gallon refuse cart $35.82 MF Standard service with 96-gallon refuse cart $42.98 MF Senior service with 35-gallon refuse cart $25.02 MF Senior service with 64-gallon refuse cart $30.89 MF Senior service with 96-gallon refuse cart $36.84 Additional 35-gallon refuse cart $8.56 Additional 64-gallon refuse cart $12.83 Additional 96-gallon refuse cart $17.15 Additional Recycling Cart (beyond 2 carts)$2.40 Additional Green Waste Cart (beyond 1 cart) $6.06 Backyard Service Surcharge $28.40 Yard Waste Reduction Discount $4.12 Additional Special Overage Pickup >2 per year $11.56 Additional Bulky Item Pickup > allowed free $43.34 Cart Exchange (after free exchange period)$21.69 Emergency Service rates - 1 crew & 1 Trk / HR $122.85 Addendum #2 ATTACHMENT A 1 of 5 7.2.a Packet Pg. 628 City of Diamond Bar DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ ZĞƐŝĚĞŶƟĂů ZĂƚĞƐƉƉƌŽǀĞĚĨŽƌ:ƵůLJϭ͕ϮϬϮϯ-:ƵŶĞϯϬ͕ϮϬϮ4 2 | Page DƵůƚŝĨĂŵŝůLJZĂƚĞdĂďůĞƐǁŝƚŚŽƵƚKƌŐĂŶŝĐ^ĞƌǀŝĐĞƐ Monthly ZĂƚĞ Container Size Multi Family Standard service with 35-gallon refuse cart $27.39 MF Standard service with 64-gallon refuse cart $33.75 MF Standard service with 96-gallon refuse cart $40.49 MF Senior service with 35-gallon refuse cart $23.57 MF Senior service with 64-gallon refuse cart $29.10 MF Senior service with 96-gallon refuse cart $34.71 Addendum #2 ATTACHMENT A 2 of 5 7.2.a Packet Pg. 629 City of Diamond Bar DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ ZĞƐŝĚĞŶƟĂů ZĂƚĞƐƉƉƌŽǀĞĚĨŽƌ:ƵůLJϭ͕ϮϬϮϯ-:ƵŶĞϯϬ͕ϮϬϮ4 3 | Page ZŽůů-ŽĨĨŽdžŚĂƌŐĞƐ ZĂƚĞ Standard Roll-Off Box - Rate per pull (including container rental) 12 to 16 yard $278.52 25 to 30 yard $267.73 40 to 45 yard $259.18 Compactor Roll-Off Box – Rate per pull (excluding compactor rental) 30 yard $413.91 40 yard $462.28 Container Rental Fee – for use in Excess of 7 days without being serviced $33.09 Processing Per Ton $86.73 Temporary Roll-Off Box, 40 yard – rate includes container rental, pull and disposal up to 6 tons $739.29 Temporary Roll-Off Box, Low Boy – rate includes container rental, pull, and disposal up to 6 tons $784.18 Roll-Off Box Cleaning (above one per year) $150.33 Redelivery/Return Trip Fee/Dry runs – roll-off box $194.66 Addendum #2 ATTACHMENT A 3 of 5 7.2.a Packet Pg. 630 City of Diamond Bar DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ ŽŵŵĞƌĐŝĂůZĂƚĞƐApproved for July 1, 2023-June 30, 2024 1 | Page Container Size WŝĐŬƵƉƐƉĞƌǁĞĞŬ 1234 5 6Extra Empty 1.5 Cubic Yard $116.93 $192.17 extra bin (2) $105.24 $172.95 2 Cubic Yard $133.92 $232.18 $317.41 $410.76 $509.06 $594.29 $51.12 extra bin (2)$120.51 $208.95 $285.68 $369.70 $458.16 $534.85 3 Cubic Yard $165.80 $274.87 $385.95 $501.08 $614.18 $749.59 $59.20 extra bin (2)$149.21 $247.35 $347.36 $450.96 $552.78 $674.64 4 Cubic Yard $209.91 $337.83 $468.66 $667.48 $798.32 $969.71 $67.31 extra bin (2)$188.90 $304.04 $421.77 $600.72 $718.50 $872.75 6 Cubic Yard $250.56 $413.90 $579.35 $842.02 $1,005.40 $1,214.53 $78.18 extra bin (2)$225.50 $372.52 $521.41 $757.84 $904.86 $1,093.09 Organics Cart $49.88 $99.74 $149.62 $199.49 $249.37 $299.24 Recycling – 96 gal. $21.89 Recycling – 1.5 yd.$49.75 $79.23 Recycling – 2 yd. $57.11 $95.78 $127.10 $163.98 $202.70 $235.81 Recycling – 3 yd.$82.92 $127.82 $178.40 $231.03 $282.66 $345.54 Scout Service (3) $83.81 $199.69 $299.54 $399.39 $499.23 $599.07 ŝŶŚĂƌŐĞƐ ZĂƚĞ Temporary Bin – 3 cubic yard $166.77 pull Temporary Bin – 6 cubic yard $205.99 pull Bin Cleaning (over one per year) $67.15 Locking Bin, per bin per month $14.56 Redelivery/Return Trip Fee $129.93 Addendum #2 ATTACHMENT A 4 of 5 7.2.a Packet Pg. 631 City of Diamond Bar DŽŶƚŚůLJŽůůĞĐƟŽŶZĂƚĞƐ ŽŵŵĞƌĐŝĂůZĂƚĞƐApproved for July 1, 2023-June 30, 2024 2 | Page ZŽůů-off Box ŚĂƌŐĞƐ ZŽůů-ŽĨĨŽdžŚĂƌŐĞƐ ZĂƚĞ Standard Roll-Off Box - Rate per pull (including container rental) 12 to 16 yard $278.52 25 to 30 yard $267.73 40 to 45 yard $259.18 Compactor Roll-Off Box – Rate per pull (excluding compactor rental) 30 yard $413.91 40 yard $462.28 Container Rental Fee – for use in Excess of 7 days without being serviced $33.09 Processing Per Ton $86.73 Temporary Roll-Off Box, 40 yard – rate includes container rental, pull and disposal up to 6 tons $739.29 Temporary Roll-Off Box, Low Boy – rate includes container rental, pull, and disposal up to 6 tons $784.18 Roll-Off Box Cleaning (above one per year)$150.33 Redelivery/Return Trip Fee/Dry runs – roll-off box $194.66 ĚĚŝƚŝŽŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐ ZĂƚĞ Per Service Multi-Family Bulky Item Pickup – each pickup above four per year of up to four items. (per item) $40.42 Emergency Service Rates – one crew and one collection truck (per hour) $114.47 Addendum #2 ATTACHMENT A 5 of 5 7.2.a Packet Pg. 632 REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES ADDENDUM #3 Issued by Prepared by: 3002 Dow Avenue, Suite 116, Tustin, CA 92780 Office: 866.241.4533 info@sloanvazquez.com · www.sloanvazquez.com Contact: Enrique Vazquez enrique@sloanvazquez.com 626-347-3226 July 31, 2023 7.2.a Packet Pg. 633 City of Diamond Bar, California Addendum #3 RFP for Solid Waste Services July 31, 2023 Page 2 This addendum #3 to the RFP for Solid Waste Services consists of answers to questions submitted by proposers since the release of addendum #2 on July 20, 2023. To date, the following items have been distributed to proposers. 1. RFP: May 3, 2023 2. Notification #1: May 15, 2023 3. Addendum #1: July 12, 2023 4. Addendum #2: July 20, 2023 5. Addendum #3: July 31, 2023 Reminder: Proposers must acknowledge receipt of all addenda in their proposals. This can be done in the cover letter. You may continue to send technical questions regarding the worksheets to DiamondBarRFP@sloanvazquez.com or by calling Enrique Vazquez at 626-347-3226. Also, if there are questions that arise during the preparation of the proposals, you may submit additional questions and every attempt will be made to respond to them. However, there is no guarantee that further questions will be answered. Proposer must continue the preparation of their proposals with the information provided thus far. RESPONSES TO QUESTIONS Question #1: I see the new res rates on the addendum. Do these effectively replace the RFP #’s or are they still transitional rates? There’s a big jump. I take it this includes full organics program rates? 7.2.a Packet Pg. 634 City of Diamond Bar, California Addendum #3 RFP for Solid Waste Services July 31, 2023 Page 3 RFP… Response: The rates entered into the worksheets reflected the approved rates at the time the RFP was prepared and were entered into the worksheets to serve as an example of how to use the worksheet. The addendum #2 provided the most current approved rates to inform you of the most recent approved rates. Proposers should enter their proposed rates into the worksheets. There are no programmed transitional adjustments. All future adjustments to existing agreements will be based on the procedures in the agreements. Question #2: Are we allowed to submit one bid package and just break out Citywide, Com, and SFD? Or do we need a separate bid package for each? Response: You may submit proposals for 1) Commercial only (Fill in Attachment 6 Commercial Forms), 2) Residential only, (Fill in Attachment 6 Residential, or 3) Both residential and commercial (Fill in Attachment 6 Citywide). If you submit option 3, you don't have to submit option 1 and 2. Question #3: In Form 2.2 for recycling, the non-red cells are marked at 50% of trash rate, the red cells do not have a formula. Is this correct? 7.2.a Packet Pg. 635 City of Diamond Bar, California Addendum #3 RFP for Solid Waste Services July 31, 2023 Page 4 Red cells in organics are not formula driven…the others are referencing the trash rates values. Didn’t want to touch the aqua cells. Response: Commercial recycling container rates shall not exceed 50% of the rate proposed for the equivalent container size and frequency for trash collection. In Form 2.2, the recycling container rates beginning in row 19 shall not exceed 50% of the rate proposed for the equivalent container size and frequency proposed for trash collection in rows 1 through 12. If proposer is offering less than 50% than the rate proposed for trash collection, then enter the proposed rate directly into the cell. Otherwise, either enter 50% of proposed trash rate or enter formula that calculates 50% of the equivalent rate in rows 1 through 12. Organics container rates shall not exceed the rate proposed for the equivalent container size and frequency for trash collection. In Form 2.2, the organic container rates beginning in row 28 shall not exceed the rate proposed for the equivalent container size and frequency proposed for Trash collection in rows 1 through 12. If proposer is offering less than the rate proposed for trash collection, then enter the proposed rate directly into the cell. Otherwise, either enter rate equal to the proposed trash rate or enter formula the calculates 100% of the proposed trash rates entered in rows 1 through 12. 7.2.a Packet Pg. 636 City of Diamond Bar REQUEST FOR PROPOSALS FOR SOLID WASTE SERVICES Final Report Evaluation and Scoring of Proposals Prepared by: Municipal Solid Waste & Recycling Advisors 3002 Dow Avenue Suite 116 Tustin, CA 92780 Office: 714.348.6350 Fax: 714.276.0625 www.sloanvazquez.com November 30, 2023 7.2.b Packet Pg. 637 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page ii TABLE OF CONTENTS 1. OVERVIEW ............................................................................................................................................. 1 1.1 RFP Goals............................................................................................................................................. 2 Process Goals: Integrity, Competition, and Industry-Standard Contract Terms .................................. 2 A. Program Goals: Quality, High-Value Programs ............................................................................. 2 B. State Diversion Requirements ...................................................................................................... 2 1.2 Participating Proposers ....................................................................................................................... 3 2. EVALUATION PROCESS .......................................................................................................................... 3 2.1 Evaluation Criteria ............................................................................................................................... 4 Responsiveness (Pass/Fail).................................................................................................................... 5 Proposer’s Qualifications ...................................................................................................................... 5 Technical Qualifications ........................................................................................................................ 5 Number And Materiality of Exceptions to the Agreement ................................................................... 6 Financial ................................................................................................................................................ 6 Rate Proposal ........................................................................................................................................ 6 3. FINDINGS ............................................................................................................................................... 7 3.1 Evaluation Scores ................................................................................................................................ 7 3.2 Overview of Revenue Requirement and Proposed Rates ................................................................... 7 3.3 City Fees .............................................................................................................................................. 9 4. PROPOSED RATES ................................................................................................................................ 10 4.1 Residential Rates ............................................................................................................................... 10 4.2 Commercial Rates ............................................................................................................................. 10 5. PROPOSAL EVALUATION ..................................................................................................................... 11 5.1 Summary of Proposer Evaluation Highlights .................................................................................... 11 VVS ...................................................................................................................................................... 12 Waste Management ........................................................................................................................... 12 5.2 Overview of Analysis for each Evaluation Criterion .......................................................................... 13 Proposer’s Qualifications .................................................................................................................... 13 Technical Qualifications ...................................................................................................................... 15 7.2.b Packet Pg. 638 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page iii Number and Materiality of Exceptions to Agreement ....................................................................... 18 Financial .............................................................................................................................................. 19 6. RATE PROPOSAL EVALUATION ............................................................................................................ 20 6.1 Rate Proposal Competitiveness ........................................................................................................ 21 6.2 Rate Proposal Reasonableness ......................................................................................................... 22 6.3 Combined Rate Proposal Rating ....................................................................................................... 23 TABLE OF TABLES Table 1: Proposer Combination Options ....................................................................................................... 4 Table 2: Evaluation Criteria and Maximum Evaluation Score ....................................................................... 4 Table 3: Option Evaluation Score .................................................................................................................. 7 Table 4: Total Rate Revenue Requirement by Proposal ............................................................................... 8 Table 5: Revenue Requirement by Option .................................................................................................... 9 Table 6: Annual City Fees by Sector .............................................................................................................. 9 Table 7: Proposed Residential Rates ........................................................................................................... 10 Table 8: Proposed Commercial Rates ........................................................................................................ 11 Table 9: Proposer Staffing Overviews ......................................................................................................... 14 Table 10: Proposed Facilities ...................................................................................................................... 18 Table 11: Proposed Capital Investment ...................................................................................................... 19 Table 12: Proposed Collection Vehicles ...................................................................................................... 20 Table 13: Revenue Requirement Comptitiveness Rating ........................................................................... 21 Table 14: Revenue Requirement Reasonableness Rating .......................................................................... 23 Table 15: Combined Rate Proposal Rating .................................................................................................. 23 7.2.b Packet Pg. 639 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 1 1. OVERVIEW On May 3, 2023, The City of Diamond Bar released a Request for Proposals (RFP) to solicit proposals for solid waste services from Valley Vista Services (VVS) and Waste Management, Inc. (WM). By issuing the RFP for solid waste services, the City sought to competitively procure franchised solid waste services. A draft solid waste services franchise agreement (Agreement) was included with the RFP that provides definitions, contract terms, and conditions, including a complete description of the services to be provided. Currently, solid waste services are provided under a Residential Cart Customer Franchise Agreement with WM and a Commercial Bin and Roll-Off Box Franchise Agreement with VVS. WM provides collection services to residential premises that receive residential collection using carts and for temporary roll-off box and temporary bin collection service for cleanup or construction work performed at residential customers to whom WM provides collection service using carts. Temporary collection service for the construction of new residences, and all work on commercial premises, and residential premises that receive collection service using bins, are excluded from WM’s franchise agreement. VVS provides collection services to commercial premises and all residential premises that receive collection using bins and including temporary bin and temporary roll-off box collection service with the exclusion of residential premises that receive collection service using carts. VVS and WM were exclusively invited to present a proposal to provide solid waste service to their respective service area under the existing franchise agreements as well as a proposal to provide City- wide solid waste services including residential, commercial, and permanent roll-off and on-call services. The City reserves the right to invite additional proposers prior to making a final decision in the selection of a contractor or contractors should the City determine that proposals received from VVS and WM are inadequate to meet the City desired goals. The City is seeking service provider(s) who can deliver efficient service while meeting the recycling diversion targets set by the City and all requirements of State mandates. The successful contractor will be required to execute a franchise agreement with the City. The franchise agreement will be based on the Draft Agreement included with the RFP and may be modified to reflect the final negotiated terms and conditions of service. (e.g., the optional programs selected; agreed upon exceptions to the draft agreement, etc.). Services under the new agreement will commence on September 1, 2025, unless otherwise agreed upon. 7.2.b Packet Pg. 640 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 2 1.1 RFP Goals As part of the development of the RFP, the City established key process and program goals. These goals reflect the priorities and expectations of the City for the implementation of the RFP process, and the City’s goals and objectives for future collection services. Process Goals: Integrity, Competition, and Industry-Standard Contract Terms • Conduct the RFP process with integrity and transparency. • Stimulate competition among proposing companies. • Set high performance standards. • Ensure value for ratepayers. • Enter contract with fair terms and conditions. The City’s approach has been conducted with integrity and transparency. The RFP has resulted in the submission of competitive proposals with several alternative proposals. A. Program Goals: Quality, High-Value Programs • Consistent, reliable, and quality service • Efficient service delivery that provides a strong value to the ratepayers • Responsive customer service system • Well-planned and professionally executed transition to any new programs and services. • Quality outreach and education B. State Diversion Requirements A program goal of special note is the City’s desire to procure effective diversion programs to ensure compliance with regulatory requirements. The impact of the new State Law cannot be understated. SB 1383, targeting short-lived climate pollutants, includes numerous new requirements. The regulations are highly prescriptive, with many detailed requirements. To ensure compliance with the requirements, the state sets penalties on jurisdictions, haulers, and waste generators, ranging from $50/violation to $10,000/day. The legislation explicitly affirms that funding from the State is not required and therefore implementation will require new revenues and will have rate impacts. The City required proposers to include the programs and services necessary to meet the new requirements associated with SB 1383, as well as existing mandates. These requirements include the collection of organics (green waste and food waste) from residential, multi-family and commercial businesses; extensive outreach, education, documentation and reporting requirements; and program monitoring activities to evaluate effective program participation (I.e. does the amount of trash contaminating organics exceed the allowed levels). 7.2.b Packet Pg. 641 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 3 1.2 Participating Proposers Proposers were invited to submit three separate rate proposals: 1) for residential sector only, 2) for commercial sector services only, and 3) for both the residential and commercial sectors or citywide services. Both VVS and WM submitted proposals on the established due date of August 30, 2023. WM submitted the three separate rate proposals and in addition submitted an alternative rate proposal for residential only and an alternative for citywide services. VVS submitted a citywide rate proposal and clarified that their proposal included consideration for a residential only and a commercial only option. The alternative proposals will not be evaluated at this time, however, should the City opt to negotiate with WM, the alternative proposal will then be evaluated for consideration. The following is a brief description of each company. Valley Vista Services (VVS): VVS is a privately held company owned and operated by the Perez family. Based in City of Industry, CA., VVS was formally incorporated in 1957 but has been in business since 1957 when Manuel Perez procured his first truck and established City of Industry Disposal. VVS cited five jurisdictions to which it currently provides solid waste services under franchise agreements. The Perez family also owns and operates Grand Central Recycling, Inc. (GCR), a separate corporate entity that serves as a transfer station and material recovery facility. Waste Management (WM): WM with corporate headquarters in Houston, TX, is North America’s largest waste hauler and recycling processor. WM also maintains a local headquarters in Baldwin Park, CA. The company has provided similar services to more than 100 jurisdictions in Southern California for over 40 years. Nationwide, WM’s 43,000 employees serve more than 21 million customers throughout the U.S. and Canada. WM has been providing collection services in the City of Diamond Bars for over thirty years. 2. EVALUATION PROCESS Currently, WM provides solid wastes collection services only to the residential sector and VVS only to the commercial sector. By requesting for separate proposals for services to the residential sector only, the commercial sector only, and for citywide services from each proposer, this procurement process allows for the continuation of the current arrangement, that is, WM continues providing services to the residential sector and VVS to the commercial sector. But it also allows for reversing this arrangement with VVS providing services to the residential sector and WM to the commercial sector, or for granting an exclusive, citywide franchise to a single contractor. As a result, there are four Options for the City to select from resulting from the four possible combinations between VVS’s and WM’s proposals. As listed in Table 1, Option 1 represents the current configuration, that is WM providing services only to the residential sector and VVS only to the commercial sector. Option 2 swaps the service sectors so that VVS provides services only to the residential sector and WM only to the commercial sector only. Under 7.2.b Packet Pg. 642 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 4 Option 3, WM would provide citywide services under an exclusive franchise agreement. And under Option 4, VVS would provide citywide services under an exclusive franchise agreement. Table 1: Proposer Combination Options Sector WM VVS OPTION 1 (Current) Residential Only Commercial Only OPTION 2 Commercial Only Residential Only OPTION 3 Citywide n/a OPTION 4 n/a Citywide 2.1 Evaluation Criteria The evaluators consisting of Enrique Vazquez and other Sloan Vazquez McAfee (SVM) staff (the Evaluation Team) conducted an analysis and evaluation of the four Options based on the proposals submitted by each company on August, 2023 and other information submitted by proposers in response to requests by the Evaluation Team. The Evaluation Team reviewed and scored each Option based on a 1,000-point scale using the evaluation criteria set forth in the RFP and the percentage weighting listed in Table 2. Table 2: Evaluation Criteria and Maximum Evaluation Score Technical Proposal Evaluation Criteria Weighting Available Points Responsiveness to RFP Pass/Fail n/a Proposer’s Qualifications and Experience 5.0% 50 Technical Qualifications 30.0% 300 Financial Resources 10.0% 100 Rate Proposal 50.0% 500 Exceptions to the Draft Agreement 5.0% 50 TOTAL 100.0% 1,000 Note: n/a = not applicable The evaluation criteria, maximum score and scoring results are presented in Table 3. The six categories and their corresponding subcategories are described below. 7.2.b Packet Pg. 643 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 5 Responsiveness (Pass/Fail) Proposer must be fully compliant with the RFP and procurement procedures as demonstrated by submittal of all elements required by Sections 3 and 5 of this RFP; full completion of all rate proposal forms; compliance with process guidelines presented in Section 4; and adherence to the code of conduct signed by the proposer. Proposer’s Qualifications • Collection Experience. Demonstrated experience of company providing the requested or similar services to other jurisdictions. If the proposer is a joint venture, demonstrated experience of parties working together. • Jurisdiction Satisfaction. Satisfaction of proposer references with services received, including but not limited to, implementation, customer services, reporting, assistance developing diversion programs, and working cooperatively with City staff. • Management and Customer Service Systems. Demonstrated capabilities of the company’s existing management and customer service systems’ abilities to track and monitor contract compliance, quality of collection service, and call center responsiveness. • Key Personnel Qualifications. Extent and relevance of the qualifications and experience of key personnel proposed for the transition team and on-going management of collection operations. Technical Qualifications • Implementation Plan. Reasonableness of implementation schedule and ability to meet deadlines (e.g., reasonableness of equipment procurement schedules, implementation staffing levels, public education program, itemized steps for initiation, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution, new corporation or maintenance yard development, contingency plans, etc. o Customer Service. Customer service approach, staffing levels, and City-specific training programs. o Billing System. Billing approach and procedures for handling customer billing activities. o Collection Approach. Reasonableness and reliability of the proposed collection methods (e.g., technology, equipment, and containers); reasonableness of productivity and operating assumptions (i.e., number of routes, route drivers, route hours, stops per route, and other operating statistics), if applicable; and reasonableness of assumptions. • AB 341, AB 1826, and SB 1383 Implementation Plan. Completeness of proposed services, public education program, roll out and maintenance of diversion programs in all service sectors throughout the City, container/cart distribution. • Diversion Outreach and Education Programs. The nature, reliability, and innovation of proposed diversion programs and potential of such programs to divert solid waste from landfill disposal and meet diversion requirements. Compatibility of the proposed education program, staffing level, and program ideas with the needs of the City; and, the quality of public education samples relative to other proposers. Likelihood of diversion programs to meet State-mandated outreach City of Diamond Bar, California Section 6. Proposal Evaluation RFP for Solid Waste 7.2.b Packet Pg. 644 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 6 Services May 3, 2023 Page 32 and education, diversion monitoring and reporting and performance measurement requirements. • Proposed Operations Facilities. Plan for providing the facilities needed for equipment storage and parking, maintenance, and administration. Level of assurance provided, if any, about site acquisition and timely development of necessary facilities if not proposing an existing, operational and permitted facility. • Proposed Disposal, Transfer, and Processing Facilities. Reasonableness and reliability of the proposed facilities for disposal, transfer, and processing of solid waste, recyclable materials, and organic materials, including documentation of existing facility permitting/approvals and/or guarantee of sufficient capacity for tonnage from the City service area, and the reasonableness of proposed material transport plans. Number And Materiality of Exceptions to the Agreement The number, nature, and materiality of suggested changes to the Agreement will be considered in evaluating proposals. Financial • Financial Stability. Financial stability of proposer based on its financial ratios and other financial considerations. • Insurance. Demonstrated ability of proposer to obtain adequate insurance. Rate Proposal • Reasonableness of Rate Proposals. The logical relationship between proposed rates and operational assumptions. • Competitiveness of Rate Proposals. The competitiveness of the overall revenue requirement is evaluated relative to other proposals. Evaluators allocated points on a percentage basis after reading, analyzing, and, if necessary, clarifying the responses of each proposer in each of the evaluation sub-categories. The scores assigned to each of the proposals reflect the extent to which the company fulfilled the requirements of the evaluation criteria and the extent to which each criterion was fulfilled relative to other proposals. For example, except for the “Rate Proposal” category, the response that evaluators deemed to be the most thorough, complete, responsive, and/or effective was awarded the highest rating of 100%. Then, the remaining proposals were scored based upon the evaluator’s determination of divergence (decline) from the best rated response. Several factors were measured in each evaluation category. In some cases, responses were deemed to be equal and were allotted the same scores. 7.2.b Packet Pg. 645 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 7 3. FINDINGS 3.1 Evaluation Scores The evaluation scores for each Option are presented in Table 3. Additional descriptions and analysis of the Options provided in Sections 4 and 5. Based on this evaluation, Option 4-WM Citywide scored the highest with 952 points out of 1,000. Option 2-VVS Resi/WM Comm came in second with 947 points out of 1,000. Option 3 and 1 came in third and fourth, respectively. Table 3: Option Evaluation Score Technical Proposal Evaluation Criteria Available Points Option 1 WM-RESI VVS-COMM Option 2 VVS-RESI WM-COM Option 3 VVS CITYWIDE Option 4 WM CITYWIDE Responsiveness to RFP n/a Pass Pass Pass Pass Proposer’s Qualifications and Experience 50 49 49 50 48 Technical Qualifications 300 299 300 300 299 Financial Resources 100 90 90 80 100 Rate Proposal 500 440 460 453 460 Exceptions to the Draft Agreement 50 48 48 50 45 TOTAL 1,000 926 947 933 952 Ranking 4 2 3 1 3.2 Overview of Revenue Requirement and Proposed Rates This section includes an overview of revenue requirements for each proposal and for each option or arrangement of residential, commercial, or citywide services between VVS and WM. A comprehensive analysis of proposed rates is provided in Section 4, and a description of the analysis of the rate proposal and revenue requirement is provided in Section 6. The total revenue requirement by proposer for each proposal is provided in Table 4. Also included are the rate revenue 1 under the current franchise agreements, and comparisons of each rate proposal with the adjusted current rate revenue. Prior to the implementation of the new agreement contemplated with this RFP process, the current rates will be subject to an annual rate adjustment scheduled to take effect July 1, 2024. To allow for a more realistic comparison, the current rates have been adjusted by a 1 Current rate revenue is based on current service rates and subscription levels as reported by each of the franchisees and does not include revenue from roll-off services, temporary services, and other permitted charges. 7.2.b Packet Pg. 646 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 8 factor of 3.0%. The proposed rate under Options 1 through 4 would take effect September 1, 2025 and the first rate adjustment under the new franchise agreement (s) is scheduled for September 1, 2026. The rate revenue comparison by proposer for residential only and commercial only is provided for informational purposes only as either of those options would require services from both VVS and WM. Table 4: Total Rate Revenue Requirement by Proposal As already discussed, the proposed services can be configured into four possible combinations between VVS and WM, listed as Options in Table 1. The total revenue requirements for these four options are presented in Table 5. Included are also the current rate revenue, adjusted rate revenue, ranking based on revenue requirement, dollar differences from the adjusted current rate revenue, and percentage difference from the adjusted current revenue. Based on this measure only, WM’s Citywide proposal or Option 4 with the lowest rate revenue requirement of $8,410,415 ranks #1. The proposed rate revenue requirement for Option 4 represents a 12.9% decrease to adjusted current rate revenue. It is notable that Option 4 proposes an overall rate revenue reduction of $1,244,900 or 22.9% to the residential sector with an overall increase of $393,004 or 15.7% to commercial rate revenue. Option 2, with rate revenue requirement of $8,706,126, ranks as #2. Under Option 2, the haulers would swap sectors, with VVS providing services to the residential sector and WM to the commercial sector. The proposed rate revenue would increase by decrease by 9.8% over the adjusted current rate revenue with residential revenue decreasing by $768,576 or 10.8% and commercial rate revenue decreasing by $180,613 or 7.2%. VVS’s Citywide proposal or Option 3, with rate revenue requirement of $10,006,865, ranks #3, representing an overall rate revenue increase of 3.6% over adjusted current rate revenue with residential revenue decreasing by $768,576 or 10.8% and commercial rate revenue increasing by $1,120,127 or 44.6%. Ranking fourth is Option 1 with total rate revenue of $10,276,865, representing an overall increase of 6.4% over adjusted current rate revenue. This option represents a continuation of the current configuration with WM providing services to the residential and VVS to the commercial sector. Residential rate revenue would decrease by $498,576 or 7.0% and commercial rate revenue would increase by 1,120,127 or 44.6% over adjusted current rate revenue. Total Diff From Current % Diff From Current Total Diff % Diff From Current Residential Only 6,938,400 7,146,552 6,377,976 (768,576) -10.8%6,647,976 (498,576) -7.0% Commercial Only 2,435,692 2,508,763 3,628,889 1,120,127 44.6%2,328,150 (180,613) -7.2% Citywide 9,374,092 9,655,315 10,006,865 351,551 3.6%8,410,415 (1,244,900) -12.9% Proposal Current WM-Resi VVS-Comm Current Adj for Inflation 3% VVS WM 7.2.b Packet Pg. 647 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 9 Table 5: Revenue Requirement by Option 3.3 City Fees All proposals include payment of fees to the City as provided in Table 6. Table 6: Annual City Fees by Sector Option 1 Option 2 Option 3 Option 4 Sector Current WM-Resi VVS-Comm Current Adj for Inflation 3% WM-Resi VVS-Comm VVS-Resi WM-Comm VVS Citywide WM Citywide Residential 6,938,400 7,146,552 6,647,976 6,377,976 6,377,976 5,508,648 Commercial 2,435,692 2,508,763 3,628,889 2,328,150 3,628,889 2,901,767 Total 9,374,092 9,655,315 10,276,865 8,706,126 10,006,865 8,410,415 4 2 3 1 Residential (498,576) (768,576) (768,576) (1,637,904) Commercial 1,120,127 (180,613) 1,120,127 393,004 Total 621,551 (949,189) 351,551 (1,244,900) Residential -7.0%-10.8%-10.8%-22.9% Commercial 44.6%-7.2%44.6%15.7% Total 6.4%-9.8%3.6%-12.9% Ranking Difference From Current Rate Revenue Percentage Difference From Current Rate Revenue Fee Type Residential Commercial Total Franchise Fees $287,000 $123,000 $410,000 Cal Recycle $375,000 $375,000 $750,000 Residential Impact $175,000 $175,000 Residential Street Sweeping $175,000 $175,000 Total City Fees $1,012,000 $498,000 $1,510,000 7.2.b Packet Pg. 648 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 10 4. PROPOSED RATES 4.1 Residential Rates Proposed rates for standard residential cart service are provided in Table 7. Additional rates for ancillary residential services are provided in Exhibit 1. The first column in Table 7 provides the current rates followed by the adjusted rates and then the rates proposed under Options 1 through 4. As noted previously, the current rates will be subject to an annual rate adjustment scheduled to take effect July 1, 2024. The current rates have been adjusted by 3% to allow for a more realistic comparison. WM’s Citywide proposal or Option 4 offers the low lowest residential rates for a 64-gallon default cart service 2. WM’s proposed residential rates represent reductions from 9.5% to 24.1% from adjusted current rates for standard service and from 15.9% to 29.6% for senior service. VVS proposed the second lowest residential rates under Options 2 – residential only and Option 3 – citywide. VVS’s proposed residential rates represent reductions from adjusted current rates from 6.7% to 15.3% for standard service and from 7.5% to 20.9% for senior service. Table 7: Proposed Residential Rates 4.2 Commercial Rates A sample of current and proposed commercial rates for the most common commercial refuse collection services are provided in Table 8. The current rates will be subject to an annual rate adjustment effective July 1, 2024, a year prior to the start of the new agreement. 2 Standard service includes three 64-gallon carts: trash, recycling, and organics. Residents may choose to reduce or increase their cart sizes according to their needs. Rates Effective Date 1/2/2024 7/1/2024 Option 1 Option 2 Option 3 Option 4 Current WM-Resi VVS-Comm Current Adj for Inflation 3% WM-Resi VVS-Comm VVS-Resi WM-Comm VVS Citywide WM Citywide 35-Gallon Cart $31.09 $32.02 $29.54 $29.89 $29.89 $28.99 % Change from Current -7.8%-6.7%-6.7%-9.5% 64-Gallon Cart $38.31 $39.46 $36.39 $35.39 $35.39 $29.93 % Change from Current -7.8%-10.3%-10.3%-24.1% 96-Gallon Cart $45.96 $47.34 $43.66 $40.11 $40.11 $36.64 % Change from Current -7.8%-15.3%-15.3%-22.6% 35-Gallon Cart Senior $26.76 $27.56 $26.58 $23.91 $23.91 $23.19 % Change from Current -3.6%-13.3%-13.3%-15.9% 64-Gallon Cart Senior $33.03 $34.02 $32.76 $31.46 $31.46 $23.94 % Change from Current -3.7%-7.5%-7.5%-29.6% 96-Gallon Cart Senior $39.40 $40.58 $39.30 $32.09 $32.09 $29.31 % Change from Current -3.2%-20.9%-20.9%-27.8% 9/1/2025 7.2.b Packet Pg. 649 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 11 It should be noted that commercial rates cannot be fairly evaluated by comparing individual rates. The full value of commercial services is best evaluated by comparing the revenue requirement of the entire commercial sector based on proposed rates and subscription levels as provided in Table 5. Table 8: Proposed Commercial Rates 3 5. PROPOSAL EVALUATION This section provides an overview of the proposals submitted by VVS and WM. In Section 5.1, a summary of each company’s proposal highlights is provided. Section 5.2 provides an overview of the findings for each evaluation criterion category for both companies. 5.1 Summary of Proposer Evaluation Highlights The following summary provides highlights of the proposal evaluations: 3 WM proposed rates are for the first bin. Second and additional bins are offered at a lower rate. SIZE 1XWK 2XWK 3XWK 4XWK 5XWK 6XWK 2 Yard Bin $137.94 $239.15 $326.93 $423.08 $524.33 $609.03 3 Yard Bin $170.77 $283.12 $397.53 $516.11 $632.61 $772.08 4 Yard Bin $216.21 $347.96 $482.72 $687.50 $822.27 $998.80 2 Yard Bin $176.57 $326.29 $489.44 $652.58 $767.40 $874.96 3 Yard Bin $197.73 $368.62 $552.93 $737.23 $873.21 $1,001.94 4 Yard Bin $218.89 $410.94 $616.41 $821.88 $979.03 $1,128.92 2 Yard Bin $116.75 $210.15 $303.55 $396.95 $490.35 $525.32 3 Yard Bin $144.54 $260.18 $375.81 $491.45 $607.08 $722.72 4 Yard Bin $183.00 $329.40 $475.80 $622.20 $768.61 $915.01 2 Yard Bin $142.65 $256.76 $385.14 $513.53 $641.91 $770.29 3 Yard Bin $176.60 $317.89 $476.83 $635.78 $794.72 $953.67 4 Yard Bin $223.59 $402.47 $603.70 $804.94 $1,006.17 $1,207.41 CURRENT OPTION 1 & OPTION 3: VVS CITYWIDE AND COMMERCIAL ONLY OPTION 2: WM COMMERCIAL ONLY OPTION 4: FROM WM CITYWIDE 7.2.b Packet Pg. 650 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 12 VVS VVS submitted a comprehensive, high-quality proposal that was tailored to the City of Diamond Bar’s requirements. The following highlights from the VVS proposal provide a brief overview of some of the primary differentiators. Locally Owned and Community Focused. VVS described their family-owned business with over six decades of experience, local headquarters, customer service call center, and operating facilities. The company credits their commitment to “Satisfy the Customer at any Cost” as leading to their customers’ satisfaction. Local Infrastructure. VVS described their local infrastructure: • Grand Central Recycling, Inc. (GCR) – A materials recovery facility owned and operated by the Perez family as a separate corporate entity that plays a pivotal role in advancing their comprehensive waste management strategy. • Proposed Organics Processing. GCR will serve as a hub to manage the waste streams with a 38,850 square foot expansion scheduled to be completed by July 2024 and consisting of a $25M capital investment. This will add organics waste recovery capacity using the OREX (Organics Extrusion Press) Technology developed by Anaergia Corporation. • Kitchen Pails. VVS will provide a 3-gallon lidded, dishwasher-safe pail with introductory roll of pail liners and educational materials with clear program guidelines, detailing acceptable items for both the yard waste cart and the food waste pail to all SFDs and multi-family units. Waste Management WM also submitted a thorough, high-quality proposal, specialized for the City of Diamond Bar. The company emphasized its familiarity with the City while responding to the City’s new requirements. The following highlights from the WM proposal describe some of the company’s primary differentiators. Routing Technology. WM described their eRouteLogistics software for developing, managing, and modifying routes. The software is used daily by the operations team to ensure that each route is well- maintained and adjusted to reflect new developments and changes in service levels, customer counts, and traffic patterns. eRouteLogistics displays customer locations in a user-friendly map through a variety of coloring and labeling options and allows users to visualize existing and future routes. Updated in near real-time, eRouteLogistics enables our route managers, drivers, dispatchers, and customer service representatives to resolve any questions or concerns our customers or municipal partners may have concerning routes. Technology to Optimize Performance. WM described their operations framework, “Service Delivery Optimization” or SDO, which focuses on four pillars of performance: Safety, Service, Savings and Satisfaction. WM’s technology is used to define, track and measure all aspects of operations to achieve continuous improvement. The company also emphasized their network of facilities which they described as strategically located near Mission Viejo. 7.2.b Packet Pg. 651 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 13 Effective Outreach and Education. The company emphasized the importance of “innovative, personalized and proven” outreach and education to help customers in Mission Viejo navigate a major change in services, including the significant expectations that customers separate organics and recyclables as required by SB 1383. WM described an outreach and education campaign to engage customers throughout the term of the new agreement. Value, Partnership and Dedication. WM described the cost effectiveness achieved through SDO technology and the proximity of their facilities, and how this gives them the ability to offer reasonable rates. WM emphasized their 30 years of experience in delivering on-time, reliable services and their ability to provide dependable services from day one of the new contract. The proposal also highlighted the company’s stability as the largest service provider and ability to finance capital purchases and provide “gold-standard” insurance. Additionally, WM described the dedication of their local team and the service benefits associated with their knowledge of the City. 5.2 Overview of Analysis for each Evaluation Criterion The following summary of findings provides highlights of the key proposal components that were considered in the evaluation process. Proposer’s Qualifications Collection Experience. VVS and WM are both well qualified to provide service in the City of Diamond Bar. Each service provider offers extensive experience in Southern California and has the local infrastructure necessary to efficiently meet the City’s needs. VVS cited four cities in addition to Diamond Bar including the City of La Puente, City of Cypress, City of Walnut, and City of El Monte. WM cited five cities including the City of Arcadia, City of La Verne, City of San Dimas, City of Baldwin Park, and Chino Hills. Jurisdiction Satisfaction. VVS provided the reference list above from five jurisdictions all with service over eight years and the City of La Puente has been serviced over 29 years. WM provided the reference list above from five jurisdictions, four of which were all with service over twelve years and City for the Baldwin Park has been service for over 33 years. WM’s City of Chino reference from WM was only one year old and described as the latest transition executed and transitioned in five months. Both VVS and WM show longevity servicing these jurisdictions, which demonstrates jurisdiction stratification. Management and Customer Service Systems, Both VVS and WM offer customer service systems capable of tracking and monitoring contract compliance, quality of collection service, and call center responsiveness. Each company is exceptionally equipped with quality, industry-specific systems capable of meeting the City’s requirements for documentation, reporting, and billing. 7.2.b Packet Pg. 652 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 14 Both companies included digital enhancements to the customer service experience including on-line chat, mobile application, expanded website capabilities, focus on social media and community outreach. VVS included some new expanded customer service features: • Our Customer Service representative team comprises multilingual representatives proficient in English, Spanish, Cantonese, Tagalog, Mandarin, and Vietnamese. • VVS uses Cisco WebEx contract center ensuring tracking calls and wait times. • Additional customer service features include live chat, mobile app, user-friendly website, social media. WM included some new expanded customer services features: • Interactive Voice Response (IVR) - self-service options online. • Contact Back System – get a call back, no need to wait on hold. • Live Chat support – online direct chat option. • MY WM App – application for customer to pay bills and request and schedule service. • Repeat Issues within two months, issues a ticket to management that requires accountability and ticket closure. Key Personnel Qualifications. VVS and WM both employ exceptionally qualified personnel possessing decades of local industry experience. VVS included summary resumes for 13 staff of which four had an percentage dedication to the City of Diamond Bar equaling to 1.8 full-time employees. In their rate proposal forms, which included a budget to support their proposed rates, VVS provided funding for 3.8 full-time employees excluding drivers. WM included summary resumes for 19 staff of which 12 had a percentage dedication to the City of Diamond Bar equaling to 8 FTE. In addition, WM provided summary resumes for a senior leadership team of five. In their rate proposal forms, which included a budget to support their proposed rates, WM provided funding for 4.8 full-time employees, excluding drivers indicating a discrepancy between proposed FTE of 8 and budgeted FTE of 4.8. Table 9: Proposer Staffing Overviews VVS WM Title % Title % Contractor Representative 10% Public Sector Services Manager 100% Operations Supervisor 50% Public Sector Reginal Manager 25% Client Services Manager 20% Recycling Coordinator 25% 7.2.b Packet Pg. 653 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 15 Additional Service Rep 100% Sustainability Manager 100% District Manager 100% Roll-Off Route Manager 50% Residential Route Manager 50% Residential Route Manager 50% Commercial Route Manager 100% Operations Specialists 25% Contract Compliance Manager 25% Maintenance Manager 100% Full Time Equivalents 1.8 8.0 Chief Financial Officer Controller Human Resources Manager Operations Manager Risk and Safety Manager Miantenance Manager Government Affairs Diversion Compliance Coordinator Social Media & Outreach Coordinator Not Indicated Area Customer Experience Manager Communications Senior Manager Centralized Dispatch Manager Route Managers SB 1383 Team of three Senior Leadership Team of 5 Not Indicated Technical Qualifications Implementation Plan. Each company prepared a detailed implementation schedule designed to meet the deadlines necessary to commence the new agreement on September 1, 2025. The plans were reviewed for reasonableness and completeness. Both VVS and WM proposed implementation schedules capable of achieving staffing levels, procurement of equipment, customer outreach and education program development and transition activities necessary to facilitate the transition to new services. AB 341, AB 1826, and SB 1383 Implementation Plan. Both VVS and WM prepared detail summaries meeting compliance with AB 341 (Commercial Recycling), AB 1826 (Organics Recycling), and SB 1383 (Organics Waste Reduction). Each companies’ proposals addresses planning, education, diversion, implementation, reporting, and ongoing monitoring to achieve successful compliance. 7.2.b Packet Pg. 654 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 16 VVS and WM developed comprehensive programs to achieve the City’s diversion goals, ensure regulatory compliance and respond to the new SB 1383 requirements. Each company proposed collection programs designed to achieve the performance standards set forth in the agreement. Additionally, the companies proposed the required dedicated recycling coordinator and prepared a detailed outreach and education strategy to inform customers of the new requirements, promote effective program participation and notify customers of compliance issues. VVS identified a specific staff to serve as full-time recycling coordinator and WM committed to hire and train a qualified Recycling and Sustainability Manager for the City of Diamond Bar. Diversion Outreach and Education Programs. Both companies provided a thorough and comprehensive plan for outreach and education accompanied with quality educational materials and state of the art systems to support their programs. VVS proposal included the following activities to promote diversion programs: • Identifying key stakeholders and conducting preliminary meetings; training sessions for city personnel; providing information on proper sorting, container usage; targeted meetings with property owners; tracking and monitoring diversion rates, tonnages, and conducting waste compositions; generating regular reports to City; implementing contamination monitoring including physical inspections, photo documentation, and customer notifications; providing continuous assistance through helplines, online platforms, and community engagement events. • Food Rescue Collaboration including o Stakeholder Engagement: Identifying and partnering with established food rescue organizations. o Targeted Awareness Campaigns: Informing residents, businesses, and food establishments. o Collection and Donation Process: Establishing collection routes, providing safe and hygienic food storage and handling, collaborating with local food banks, shelters, and community organizations. WM proposal included the following activities to promote diversion programs: • Hiring a dedicated Recycling and Sustainability Manager • Targeted education and outreach for all sectors including conducting community workshops including chamber, civic group, HOAs/property managers, educational institutions; distributing educational flyers; creating how-to videos; providing City staff training including City’s contracted janitorial service; working with code enforcement; providing City staff training on how to properly recycle. • Incentive Programs: Residential recycling rewards, commercial recycling rewards, food recovery program that recognizes commercial customers who work with local food recovery organizations. • Use of Smart Truck SM program to track cart monitoring, which has been approved by CalRecycle for tracking contaminate routes. 7.2.b Packet Pg. 655 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 17 • Conducting SB 1383 route audits and cart monitoring; conducting waste evaluations; reports to the City; education and promotion using social media and website, conducting event education; providing non-compliance notifications; conducting annual site visits to review compliance; assistance to the City with waivers. • Commercial edible food recovery and donation: Create customized educational materials highlighting how and where to participate in edible food recovery and donation. Proposed Disposal, Transfer, and Processing Facilities. The facilities proposed by both companies meet the requirements of the RFP. Both companies demonstrated the viability of their facility plan and have secured the capacity necessary to manage the material collected within the City. VVS’s local infrastructure is located in closer proximity to the City. Table 10 provides a list of the proposed facilities to be used by proposers for landfilling and for recycling and organic waste material processing. 7.2.b Packet Pg. 656 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 18 Table 10: Proposed Facilities Type of Facility VVS WM Organics GCR Materials Recovery Facility 17445 Railroad St City of Industry, CA 91748 Materials are transported to Agromin Organics. Azusa Material Recycling Facility 1504 West Gladstone Azusa, CA 91702 Material to be pre-processed and transported to any of the following: • South Valley Compost Site • South Kern Industrial Center Compost Facility • WM Pala Composting Facility • Ecology Compost Recyclables Grand Central Recycling & T.S. 17445 Railroad St City of Industry, CA 91748 Azusa Material Recycling Facility 1501 West Gladstone Azusa, CA 91702 C&D Grand Central Recycling & T.S. 17445 Railroad St City of Industry, CA 91748 Downtown Diversion, Inc (DDI) 2424 E. Olympic Blvd Los Angeles, CA 90021 Maitri Road Recycling 24980 Maitri Rd. Corona, CA 92883 Disposal El Sobrante Landfill 10910 Dawson Road Corona, CA 91719 Olinda Alpha Landfill 1942 N. Valencia Brea, CA 928239 El Sobrante Landfill 10910 Dawson Road Corona, CA 91719 Transfer Grand Central Recycling & T.S. 17445 Railroad St City of Industry, CA 91748 Pomona Valley Transfer Station 1371 E. 9th St Pomona, CA 91766 Grand Central Recycling & T.S. 17445 Railroad St City of Industry, CA 91748 Azusa Material Recycling Facility & Transfer Station 1501 West Gladstone Azusa, CA 91702 Number and Materiality of Exceptions to Agreement VVS took no exceptions to the draft franchise agreement as published with the RFP. WM listed two exceptions, 1) Section 105. Extraordinary Rate Adjustments, and 2) Section 13.7 Liquidated Damages. With regards to Extraordinary Rate Adjustments, WM proposed changes to the draft franchise agreement that provides more latitude in the process for securing extraordinary rate 7.2.b Packet Pg. 657 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 19 adjustments. Additional negotiations will be required to finalize the franchise agreement and due to other considerations, such as their very competitive rates, SVM considers this a serious exception. With regard to liquidated damages, WM did not propose specific changes but took exception to this section to retain the option to discuss these items with the City during negotiations to further clarify and resolve standards of performance and penalty amounts that WM considers ambiguous, unclear, or excessive. SVM does not consider this exception to be difficult to resolve. Financial Financial Stability: VVS and WM demonstrated the financial capabilities necessary to service the City. Based upon the review of the submitted financial statements, both companies are capable of acquiring equipment and providing financial assurance of performance. WM is a large national corporation with reported revenue of $19.7B for fiscal year 2022 and an asset base of $31.4B. Based on its 2022 financial statement, WM’s current ratio calculates to 0.81 ($3,551B / $4,394B) and its debt ratio calculates to 0.78 ($24,503 / $31,367). VVS is local corporation with reported of $115M for fiscal year 2022 for Valley Vista and Grand Central Recycling combined and an asset base of $15.7M. Based on VVS report, its current ratio calculates to 0.84 ($15.7M / $18.6M) and its debt ratio calculates to 0.57 ($62.4M / $109.3M). Each company’s anticipated capital investment is shown in Table 11. As the largest solid waste services company in North America, WM’s financial capabilities exceed those of VVS, however for the purposes of the Diamond Bar contract, both companies are financially equipped to provide the financial stability required by the City. Table 11: Proposed Capital Investment Type of Investment VVS WM Sector Residential Commercial Total Residential Commercial Total Vehicles $4,981,199 11 $1,253117 4 $6,234,316 15 $2,800,000 8 $1,125,000 3 $3,925,000 11 7.2.b Packet Pg. 658 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 20 Total Units Containers Carts Pails Bins $2,500,491 45,819 15,273 0 $561,672 542 n/a 0 $3,062,163 $2,331,638 45,819 0 0 $510,553 476 n/a 578 $2,842,191 Other $0 $0 $0 $0 $80,000 $80,000 Total Capital $7,481,690 $1,814,789 $9,296,479 $5,131,638 $1,715,553 $6,847,191 Table 12 provides a list of the quantities and make and model of the collection vehicles proposed by each company. It should be noted that for WM, the quantity of vehicles provided in Table 11 differ from those in Table 12. The quantity and type of vehicle provided in Table 12 were taken from WM proposal while the quantity of vehicles provided in Table 11 were taken from WM Rate Proposal forms. This is an indication that WM’s proposal may be underpriced as it has not accounted for all the costs required to provide the vehicles it proposes to provide. Table 12: Proposed Collection Vehicles Company Automated Side Load Front-End Load Scout VVS Qty: 10 Chassis: CCC/LWT Body: McNeilus Cubic yard capacity: 28 Qty: 4 Chassis: CCC/LWT Body: F.F. Gomez Cubic yard capacity: 38 Qty: 1 Chassis: Not stated. WM Qty: 9 Chassis: Peterbilt 520, Autocar ACX Body: Not Stated Cubic yard capacity: 40 Qty: 4 Chassis: Peterbilt 520, 56 Body: Not stated Cubic yard capacity: 40 Qty: 2 Chassis: Ford F-150 6. RATE PROPOSAL EVALUATION Proposers were required to provide detailed financial information by completing the Rate Proposal Forms issued with the RFP. This information allows for the evaluation of the proposals rate revenue requirements and reasonableness of their cost assumptions. 7.2.b Packet Pg. 659 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 21 The RFP included criteria for evaluation of the Rate Proposal component of the proposals. The criteria are described in detail under Section 2.0, Proposal Evaluation Process and are included here in summary form for ease of reference: • Competitiveness of Cost Proposals: Cost competitiveness relative to other proposals. • Reasonableness of Cost Proposals: Logical relationship between proposed cost and operation assumptions. Proposals were evaluated on total first-year revenue requirement. The rate proposals were evaluated based on total revenue requirement. This is important because the economic value of the contract cannot be assessed based on the price of a specific service. For example, a low price quoted for the residential rate may not readily reflect the financial costs of the entire contract. For this reason, the proposals were evaluated on the overall revenue requirement to perform all the services required by the RFP. 6.1 Rate Proposal Competitiveness Each rate proposal’s competitiveness was determined using a formulaic approach. First, the rates quoted in the rate sheets by each proposer were used to project Year 1 revenue requirement. The proposal with the lowest total revenue requirement was given a rating of 100% for competitiveness. The remaining proposals were rated based on the percentage deviation from the proposal with the lowest revenue requirement. Based on this analysis Option 4-WM Citywide proposal offers the overall lowest revenue requirement for Year 1 and therefore receives a rating of 100%. Option 2 – VVS Residential / WM Commercial offers the second lowest revenue requirement. With a 3.0% additional requirement than Option 4, Option 2 receives a rating of 97.0%. Option 3-VVS Citywide receives a rating of 81.0% as it requires 19.0% more rate revenue than Option 4. Option 1-WM Residential / VVS Commercial requires 21.4% more rate revenue than Option 4 and receives a rating of 78.6%. Table 13: Revenue Requirement Comptitiveness Rating Proposer Year 1 Proposed Revenue Difference from Lowest Option Percent Difference from Lowest Option Rating Option 4: WM Citywide $8,410,415 $0 n/a 100.00% 7.2.b Packet Pg. 660 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 22 Option 2: VVS Residential WM Commercial $8,706,126 $295,711 3.0% 97.0% Option 3: VVS Citywide $10,006,865 $1,596,450 19.0% 81.0% Option 1: WM Residential VVS Commercial $10,276,865 $1,866,450 21.4% 78.6% 6.2 Rate Proposal Reasonableness In addition to evaluating rate proposal competitiveness, the reasonableness of the rate proposals was considered. The primary tool used to evaluate the reasonableness of the rate proposals was the preparation of a financial proforma to serve as the Benchmark Proforma. Prior to the public distribution of the RFP, SVM prepared the Benchmark Proforma to project the price for providing the services requested in the RFP. SVM has many years of experience in preparing solid waste services rate proformas. The model considers that there may be variations in proposer costs due to competitive advantages or long-term arrangements they may have made that allows some of the proposers to maintain an economic advantage. However, deviations from revenue requirement identified in the Benchmark Proforma must be reasonably explained. Our Benchmark Proforma indicated that the services contemplated in the RFP could reasonably be performed with a Revenue Requirement of $10M per year, representing an increase in revenue requirement of 20.1% from the adjusted current revenue requirement of $8.3M. To perform the reasonableness rating for each rate proposal, the revenue requirement for each rate proposal was compared to and rated based on the percentage deviation from the projected revenue requirement in the Benchmark Proforma. While it was anticipated that proposers would deviate from the Benchmark Proforma due to varying competitive advantages and/or disadvantages, deviations greater than 20% may indicate that a proposal is significantly underpriced or overpriced. This is important because an underpriced proposal can become problematic under a 10-year contractual commitment. If the proposer is financially unable to sustain its operations, the City may have to consider granting unexpected financial relief in order to minimize possible service disruptions. Based on this analysis, Option 2 and 4 offered first year revenue requirements below the Benchmark Proforma ranging from 13.1 to 16.0. Option 3 offered first year rate revenue at the same level as the benchmark proforma. Option offered rate revenue above the proforma. All of these deviations are reasonable. Option 3 came the closest to the benchmark proforma and received a rating of 100%. Option 1 followed and received a rating of 97%. Option 2 and 4 received a rating of 87% and 84% respectively due to their larger deviation from the benchmark proforma. 7.2.b Packet Pg. 661 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 23 Table 14: Revenue Requirement Reasonableness Rating Proposer Year 1 Proposed Revenue Difference from Lowest Option Percent Difference from Lowest Option Rating Option 4: WM Citywide $8,410,415 ($1,606,284) -16.0% 84% Option 2: VVS Residential WM Commercial $8,706,126 ($1,309,320) -13.1% 87.0% Option 3: VVS Citywide $10,006,865 ($3,901) 0.0% 100% Benchmark Proforma $10,010,766 $0 0% n/a Option 1: WM Residential VVS Commercial $10,276,865 266,099 2.7% 97.0% 6.3 Combined Rate Proposal Rating When the competitiveness and reasonableness ratings are combined, Option 4-WM Citywide ranks 1 with a 92% total. Option 2-VVS-Resi/WM Com ranks second with a 91.95% rating and followed by Option 3-VVS Citywide and Option 1-WM Resi/WM Com. Table 15: Combined Rate Proposal Rating Option 1 WM-RESI VVS-COM Option 2 VVS-RESI WM-COM Option 3 VVS CITYWIDE Option 4 WM CITYWIDE Revenue Requirement - Competitiveness 79.6% 97.0% 81.0% 100% 7.2.b Packet Pg. 662 City of Diamond Bar Solid Waste Services RFP November 30, 2023 Evaluation Analysis Final Report Page 24 Revenue Requirement - Reasonableness 97.3% 86.9% 100% 84.0% Combined Rating 87.950% 91.95% 90.50% 92.0% Ranking 4 2 3 1 7.2.b Packet Pg. 663 VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: FROM: ADDRESS: ORGANIZATION: AGENDA#/SUBJECT: I expect to address the Co reflect my name as written CITY CLERK (Opf al) -AV L;10P TE: p 6 it �7 DA PHONE: (Optional) cil on the subject agenda/subject item. Please have the Council Minutes above. 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