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2012-016
and, 4 -11 -2012 Ordinance No. 2012- 16 An Ordinance Approving the Village of Buffalo Grove and Waste Management of Illinois, Inc. Refuse and Recycling Collection and Disposal Agreement WHEREAS, the Village of Buffalo Grove is a Home Rule Unit by virtue of the Illinois Constitution of 1970; WHEREAS, On November 7, 2011, the Village of Buffalo Grove waived bids and authorized a Request for Proposal for Residential Solid Waste & Recycling Services; and WHEREAS, on April 2, 2012, the Village Board authorized staff to negotiate a contract for service with Waste Management following review and analysis of the proposals. WHEREAS, the Corporate Authority of the Village finds that it is in the best interest of the Village to enter into an agreement with Waste Management of Illinois, Inc. as the exclusive provider for the collection and disposal of residential recyclables, refuse and landscape waste within the community. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS: Section 1. The foregoing Whereas clauses are hereby incorporated herein. Section 2. The Village President and Village Clerk are hereby authorized to execute the Agreement by and between the village of Buffalo Grove and Waste Management of Illinois, Inc. which is attached hereto and made a part hereof. Section 3. This Ordinance shall be in full force and effect from and after its passage and approval. AYES: 6 — Berman Trilling, Sussman, Terson, Stein, Ottenheimer NAYES: ABSENT: 0 — None 0 - None ABSTAIN: 0 - None PASSED: April 16 , 2012. APPROVED: April 16 2012. ATTEST: Village Clerk • ' ' • April 16, 2012 VILLAGE OF BUFFALO GROVE and WASTE MANAGEMENT OF ILLINOIS, INC. REFUSE AND RECYCLING COLLECTION AND DISPOSAL AGREEMENT RECITALS........................................................................................................................... ..............................2 A. GENERAL PROVISIONS ........................................................................................ ..............................2 1. Scope of Work .......................................................................................... ..............................3 2. Exclusive Grant ......................................................................................... ..............................3 3. Contractor's Private Work ........................................................................ ..............................3 4. Contract Period ......................................................................................... ..............................3 5. Compliance With Applicable Laws ............................................................ ..............................3 6. Compliance With Equal Employ. Opp. Act and Illinois Human Rights Act .............................3 7. Permits, Licenses, Certifications and Taxes .............................................. ..............................3 8. Independent Contractor ........................................................................... ..............................4 9. Performance Bond .................................................................................... ..............................4 10. Insurance .................................................................................................. ..............................4 11. Indemnification ........................................................................................ ..............................5 12. Default ...................................................................................................... ..............................5 13. Non - assignment of Contract .................................................................... ..............................6 14. Non - Collection Due to Improper Material or Procedure ......................... ..............................6 15. Disputes ................................................................................................... ..............................6 16. Title to Municipal Waste, Landscape Waste and Recyclables ................. ..............................7 17. Notices ..................................................................................................... ..............................7 18. Severability ............................................................................................... ..............................7 19. Law to Govern and Venue ........................................................................ ..............................7 20. Right to Require Performance ................................................................. ..............................7 B. GENERAL OPERATING REQUIREMENTS .............................................................. ..............................8 1. Identification of Applicable Properties for Collection ............................. ..............................8 2. Collection Times ....................................................................................... ..............................8 3. Initial Start-Up Date .................:............................................................... ..............................8 4. Holidays .................................................................................................... ..............................8 5. Storage of Contractor's Equipment and Materials .................................. ..............................8 6. Public Information ................................................................................... ..............................8 7. Customer Complaints .............................................................................. ..............................9 8. Disposal of Waste .................................................................................... ..............................9 9. Sufficient Financial and Equipment Capabilities ...................................... ..............................9 10. Prevailing Wage ...................................................................................... .............................10 11. Current Estimate of Residential Service Units ........................................ .............................10 12. Vehicles ................................................................................................... .............................10 C. PROGRAM DESCRIPTIONS ................................................................................ .............................11 1. Municipal Waste Collection ..................................................................... .............................11 1 0 ' ' 0 2. Recyclables Collection ............................................................................. .............................14 3. Landscape Waste Collection .................................................................... .............................15 D. REVENUE COLLECTION ..................................................................................... .............................15 E. EXECUTION ......................................................................................................... .............................16 EXHIBIT A— WASTE MANAGEMENT RESPONSE TO THE REQUEST FOR PROPOSAL EXHIBIT B — FINAL COST PROPOSAL EXHIBITC — RECYCLING PROGRAM This Agreement is entered into this 161h day of April 2012, by and between The Village of Buffalo Grove, Illinois, an Illinois Municipal Corporation (hereinafter the "VILLAGE ") and Waste Management of Illinois, Inc., a Delaware Corporation (hereinafter the "CONTRACTOR "). RECITALS Whereas, Section 11 -19 -1 et. seq. of the Illinois Municipal Code, 65 ILCS 5/11 -19 -1) permits a municipality to enter into an exclusive Contract for the collection and final disposition of residential recyclables, garbage and refuse within the municipality; and Whereas, the Corporate Authority of the VILLAGE finds that it is in the best interest of the VILLAGE to enter into a Contract with the CONTRACTOR as the exclusive provider for the collection and final disposition of residential recyclables, garbage and refuse within the municipality. W ITN ESSETH In consideration of the mutual covenants and agreements hereinafter set forth, the VILLAGE and the CONTRACTOR agree as follows: A. GENERAL PROVISIONS 1. Scope of Work The CONTRACTOR responded to a Request for Proposal for Residential Solid Waste & Recycling Services for the VILLAGE which response is attached hereto as Exhibit A, dated December 31, 2011, and includes amendments and clarifications attached thereto and together constitutes the CONTRACTOR'S entire offer of service. The CONTRACTOR shall be responsible for all work to be performed under this agreement (hereinafter "Contract ") and as set forth within Exhibit A, and shall provide and furnish all of the labor, materials, necessary tools, expendable equipment and supplies, vehicles, transportation services, landfill and compost facility space required to perform and complete the collection and disposal of refuse and yard 01 waste, and further shall provide and furnish all of the labor, materials, necessary tools, expendable equipment and supplies, vehicles, transportation services required to perform the collection and disposal of recyclables. Such service shall be provided for all applicable properties within the corporate limits of the VILLAGE of Buffalo Grove and any territory hereinafter annexed, all in accordance with this Contract. The CONTRACTOR acknowledges that it is familiar with the number and type of properties to be served within the VILLAGE, and is familiar with the projected growth of the VILLAGE boundaries. 2. Exclusive Grant The VILLAGE agrees that in consideration of the faithful performance of the obligations herein undertaken by the CONTRACTOR, the VILLAGE, by execution of this Contract, grants to the CONTRACTOR, for the term of this Contract only, the sole and exclusive license to collect and dispose of residential municipal waste, landscape waste, and recyclables from all applicable properties within the corporate limits of the VILLAGE and any territory hereinafter annexed. 3. CONTRACTOR'S Private Work The CONTRACTOR may, at its option, Contract separately for work as a private scavenger or hauler and charge customers covered by this Contract for services not provided in this Contract, or Contract with customers not covered by this Contract. Any such private work shall be in accordance with all federal, state and VILLAGE laws, and shall not interfere with the CONTRACTOR'S performance under this Contract. 4. Contract Period The initial term of this Contract shall be five (5) years, commencing on May 1, 2012 and shall remain in full force and effect through midnight of April 30, 2017. Contract may be extended for an additional five year term upon the mutual agreement of CONTRACTOR and the VILLAGE. 5. Compliance With Applicable Laws The CONTRACTOR shall comply with all Federal, State, and local laws, ordinances, rules and regulations governing the work required under the terms of this Contract. 6. Compliance With Equal Employment Opportunity Act and Illinois Human Rights Act During the term of this Contract, the CONTRACTOR shall comply with the Equal Employment Opportunity Act and the Illinois Human Rights Act. The CONTRACTOR shall have a written equal opportunity policy statement declaring that it does not discriminate on the basis of race, color, religion, sex, national origin, disability or age as required by law. Findings of non - compliance with applicable Federal or State equal employment opportunity laws may constitute cause for termination of this Contract. 7. Permits, Licenses, Certifications and Taxes The CONTRACTOR shall secure and pay for, at its expense, all necessary permits, licenses and certificates required to perform the work herein. The CONTRACTOR shall maintain said permits, licenses and 3 certificates in full force and effect during the term of this Contract, and shall comply with all requirements thereof. No work shall proceed or commence without said necessary permits, licenses, and certificates. The CONTRACTOR shall pay all sales, use, property, income, and other taxes that are lawfully assessed against the VILLAGE or the CONTRACTOR in connection with the CONTRACTOR'S facilities and the work included in this Contract. The VILLAGE is exempt from paying certain taxes, including Federal Excise Tax, State and Local Retailers' Occupation Tax, Use Tax and Service Use Tax. 8. Independent Contractor The CONTRACTOR shall be deemed to be an independent CONTRACTOR, solely responsible for the control and payment of its operations and employees. 9. Performance Bond At the time of the execution of the Contract, the CONTRACTOR, at its expense, shall provide the VILLAGE with a performance bond in the amount of four - hundred and sixty thousand dollars ($460,000.00), which shall be maintained in full force and effect throughout the term of this Contract and any extensions thereof. Said bond shall be executed with a surety company licensed to do business in the State of Illinois and acceptable to the VILLAGE and shall be subject to approval as to form and content by the VILLAGE'S attorney. This Contract shall not be executed unless said performance bond has been delivered and approved as herein provided. No work shall commence or proceed without said performance bond being approved and in full force and effect. Failure to provide or maintain said performance bond in full force and effect shall be cause for termination of this Contract. 10. Insurance The CONTRACTOR shall carry in its name, at its own expense, at least the following insurance coverage: (a) Workers' Compensation and Occupational Disease Insurance - Statutory amount for Illinois; (b) Vehicle Liability Insurance: (1) Bodily injury, with limits of not less than $3,000,000 each person and not less than $5,000,000 per occurrence. (2) Property damage, with limits of not less than $3,000,000 per occurrence Vehicle Liability and General Liability insurance policies. The CONTRACTOR shall furnish annually the VILLAGE with policy information which evidences compliance with the insurance requirements set forth herein, and with a certificate of insurance attesting to the required overages for the full term of the Contract, including the 30 day notice requirements. No work shall commence or proceed without said insurance overages being in full force and effect. (c) General Liability Insurance: 4 • ' ' • (1) Bodily injury, with limits of not less than $3,000,000 per person and not less than $5,000,000 per occurrence. (2) Property damage, with limits of not less than $3,000,000 for each incident and $5,000,000 per occurrence. (3) Contractual insurance - broad form, with limits of not less than $3,000,000 each occurrence and no more than $5,000,000 each occurrence. (d) Umbrella or excess liability coverage of $10,000,000 per occurrence and in the aggregate. (e) The insurance coverage shall be written with insurance companies licensed to do business in the State of Illinois and acceptable to the VILLAGE. All insurance premiums shall be paid without cost to the VILLAGE. Said policies shall provide that they may not be cancelled or reduced without thirty (30) days prior written notice to the VILLAGE. In the event of any cancellation or reduction, the CONTRACTOR is responsible for obtaining new insurance coverage. The CONTRACTOR shall name the VILLAGE as an additional insured on each policy for any liability arising out of the CONTRACTOR'S work. (f) The insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way limit the liability of the CONTRACTOR under the terms of this Contract. The CONTRACTOR shall procure and maintain, at its own cost and expense, any additional types and amounts of insurance, which, in its own judgment, may be necessary for its proper protection in the execution of the work. 11. Indemnification The CONTRACTOR shall indemnify, defend, save and hold harmless the VILLAGE, its officers and employees, from any and all liability, losses, costs, expenses, demands, taxes, claims, damages, lawsuits, proceedings, or causes of action, including worker's compensation claims, of any kind or nature whatsoever, including reasonable attorney's fees and costs of defense, that the VILLAGE may suffer, incur, sustain, or become liable for, on account of any injury to or death of its employees, or injury or death to any person, or damage to or injury to real estate or personal property, in any way resulting from, out of, or in connection with, or pursuant to this Contract, caused by the operations of the CONTRACTOR, its agents, employees, or any SubContractors in performance of the work to be conducted. The CONTRACTOR expressly understands and agrees that any performance bond or insurance coverage required by this Contract, or otherwise provided by the CONTRACTOR, shall in no way limit the responsibility to indemnify, keep and hold harmless and defend the VILLAGE, and to pay expenses and damages as herein provided. 12. Default All terms and conditions of the Contract are considered material and the failure of the CONTRACTOR to perform any of said terms and conditions shall be considered a breach of the Contract. If the CONTRACTOR fails to perform according to the terms and conditions herein, or fails to collect and /or dispose the municipal waste or landscape waste, or fails to collect and /or market the recyclables as 5 required herein for more than seven (7) consecutive working days, the VILLAGE shall reserve the right to determine if there has been sufficient cause to justify such lack of performance. If in the VILLAGE'S sole judgment, sufficient cause has been demonstrated, then the VILLAGE shall serve notice of default, identifying the Contract violations and stating that this Contract shall be deemed in default if the CONTRACTOR does not take action to correct the violation or re- establish the schedule within three (3) days of said notice. If, at the end of the three (3) day period, the CONTRACTOR has not made the necessary corrections, the VILLAGE shall take such steps as are necessary to furnish services according to the collection requirements provided in this Contract, and shall have the right to terminate the Contract. The VILLAGE shall also have the authority to engage another Contractor to perform services of this Contract which shall be at the cost of the VILLAGE. The CONTRACTOR shall be liable for any and all costs of such steps from the date of the notice of default. The remedies provided herein shall not be exclusive, but shall be in addition to any other remedy available to the VILLAGE including, but not limited to, claim on the performance bond, or other legal or equitable remedies. The failure of the VILLAGE to declare a default or insist on performance of any specific term or condition shall not constitute a waiver on the part of the VILLAGE to declare a default by the continuing or subsequent failure of the CONTRACTOR to perform according to the terms and conditions of the Contract. In the event the CONTRACTOR shall be adjudged bankrupt, either by voluntary or involuntary proceedings, then the Contract shall immediately terminate; and in no event shall the Contract be, or be treated as, an asset of the CONTRACTOR after adjudication of bankruptcy. If the CONTRACTOR shall become insolvent or fail to meet its financial obligations, then the Contract may be terminated at the option of the VILLAGE upon seven (7) days written notice to the CONTRACTOR and in no event shall the Contract be, or be treated as, an asset of the CONTRACTOR after the exercise of said option by the VILLAGE. In any event where the CONTRACTOR has not performed the work, even if such failure is caused by strikes, acts of God, or "force majeure ", beyond the CONTRACTOR'S control, the CONTRACTOR shall not be paid. 13. Non - assignment of Contract This Contract has been awarded by the VILLAGE based upon the specific evaluation of the CONTRACTOR, and the ability of the CONTRACTOR to perform the work. This Contract is not assignable by the CONTRACTOR either voluntarily or involuntarily, or by process of law, without the prior written consent of the VILLAGE, and shall not be or come under the control of creditors, or a trustee or trustees of the CONTRACTOR in case of bankruptcy, or insolvency of the CONTRACTOR. Any attempt to assign the Contract shall subject the Contract to immediate termination by the VILLAGE. 14. Non - Collection Due to Improper Material or Procedure If material is not collected due to non - compliance with State Statute, the CONTRACTOR shall leave the resident a card, note, or "door hanger" to (1) identify the specific reason for non - collection and (2) explain the proposed recourse the resident should take to alleviate the dispute. 15. Disputes The CONTRACTOR'S performance of the work under this Contract shall be observed and monitored by 2 the VILLAGE. Should the VILLAGE determine during the term of the Contract that the CONTRACTOR has not preformed satisfactorily, the CONTRACTOR, upon notification from VILLAGE, shall increase the work force, tools and equipment as needed to properly perform to the satisfaction of the VILLAGE. The failure of VILLAGE to give such notification shall not relieve the CONTRACTOR of its obligation to perform the work at the time and in the manner specified. 16. Title to Municipal Waste, Landscape Waste and Recyclables Title to municipal waste, landscape waste and recyclables shall pass to the CONTRACTOR when the materials are placed into the collection vehicle. Revenues from recyclables shall be in accordance with section C.2.g. herein. 17. Notices All notices required by this Contract shall be in writing and shall be delivered in person or sent by first class mail with sufficient postage prepaid, or by certified/ return receipt requested mail with sufficient postage and certification fees fully prepaid. Notices delivered personally shall be deemed received upon delivery. Notice delivered by mail shall be deemed to have been given as of the date of the United States Postal Service postmark. Notices to the parties shall be made and addressed to the following: If to the VILLAGE: Dane Bragg or VILLAGE Manager VILLAGE of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, IL 60089 If to the CONTRACTOR: Michael Brink or Municipal Marketing Manager Waste Management of Illinois, Inc. 1411 Opus Place, Suite 400 Downers Grove, IL 60515 Any changes of address may be sent by furnishing written notice to the other party. 18. Severability The invalidity of one or more of the phrases, sentences, clauses or subsections contained in this Contract shall not affect the validity of the remaining portion of this Contract so long as the material purposes of this Contract can be determined and effectuated. 19. Law to Govern and Venue The laws of the State of Illinois shall govern this Contract and venue shall be in Cook County, Illinois. 20. Right to Require Performance The failure of the VILLAGE, at any time, to require performance by the CONTRACTOR of any term or 7 condition in this Contract shall in no way affect the right of the VILLAGE thereafter to enforce said term or condition. Nor shall waiver by the VILLAGE of any breach of any term or condition of this Contract be taken or held to be a waiver of any succeeding breach of any such term or condition or a waiver of the term or condition itself. B. GENERAL OPERATING REQUIREMENTS 1. Identification of Applicable Properties for Collection The applicable properties located in the VILLAGE for which collection and disposal services of municipal waste, landscape waste and recyclables shall be provided pursuant to this Contract are as follows: The term UNIT shall mean all single - family residential units, 2- family residential units, attached and detached town homes, coach homes, and duplexes. The term UNIT shall include all multifamily residential dwellings whether classified as apartments, condominiums, or residential units that are combined with commercial and /or industrial units. 2. Collection Times The starting time for the pick -up service described herein shall not commence earlier than 6:00 am. All materials placed out for collections must be placed at the curb or alley (when available) by 6:00 am on the designated service day. 3. Initial Start -Up Date Collection of Refuse, Recyclables and Landscape Waste May 1, 2012 Monday, Tuesday, Wednesday, Thursday The CONTRACTOR shall give the VILLAGE at least 30 days written notice to any proposed route or schedule change. Any route or schedule changes shall be subject to approval of the VILLAGE which approval shall not be unreasonably withheld. 4. Holidays Holidays to be observed by the CONTRACTOR are as follows: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. No pick -up will be rendered on such holidays. Regular service shall be established on the next calendar day, which shall be Monday through Saturday. 5. Storage of CONTRACTOR'S Equipment and Materials No equipment or materials used to provide collection service shall be stored on any property, public or private, within the corporate limits of the VILLAGE unless otherwise agreed to by the parties. 6. Public Information The CONTRACTOR, at its expense, shall develop, print and distribute to all residential customers, a brochure, approved by the VILLAGE, explaining the solid waste, landscape, and recycling programs covered under this Contract whenever there is a change in the service or programs provided, including P • 0 changes in collection times. The brochure shall include a toll -free telephone number of the CONTRACTOR to be used for customer complaints as required herein. 7. Customer Complaints The VILLAGE and CONTRACTOR shall establish a mutually agreed to Customer Service Plan which shall include but not be limited to performance metrics for management and service of customer service calls and CONTRACTOR contacts with the public. The CONTRACTOR shall maintain an office and telephone service, with either a local exchange or a toll - free number, for the receipt of service calls or complaints, and shall be available for such calls on all working days from 7:00 a.m. to 5:30 p.m. Calls made after the time period noted shall be answered by an answering service which records all calls. All complaints shall be given prompt and courteous attention, and in case of a missed scheduled collection, the CONTRACTOR shall immediately investigate; and if verified, shall arrange for pick -up of said waste within 24 hours after the complaint is received. When requested, the CONTRACTOR shall report to the VILLAGE the status of service calls or complaints and shall maintain a daily log of such calls or complaints received, which record shall be open to the VILLAGE for inspection at any reasonable time. A monthly report of service calls or complaints shall be provided to the VILLAGE by the CONTRACTOR. 8. Disposal of Waste a. System Waste. "System Waste" is all waste that the VILLAGE has Contractually agreed will be disposed of in a Solid Waste Agency of Northern Cook County ( "SWANCC ") facility. Contractor shall transport for processing all System Waste collected pursuant to this Contract to SWANCC's Glenview Transfer Station. System Waste shall not be commingled with any non - system or private waste or with waste from outside the boundaries of the Village. b. Non - System Waste. i. Recycling materials shall be transported for processing and /or sale to a facility or facilities licensed and permitted under all applicable local, state and federal laws and regulations. ii. Landscape Waste collected shall be transported to a facility or facilities licensed and permitted under all applicable local, state and federal laws and regulations. iii. Bulk Items, including White Goods, shall be transported to a facility or facilities licensed and permitted under all applicable local, state and federal laws and regulations. 9. Sufficient Financial and Equipment Capabilities The CONTRACTOR shall have the necessary financial ability and sufficient equipment to satisfy the requirements placed upon it under the terms of this Contract. 10. Standard of Performance The CONTRACTOR shall undertake to perform all disposal services rendered hereunder in a neat, orderly and efficient manner, to use care and diligence, and to provide neat, orderly and courteous personnel on its crews and courteous and knowledgeable personnel in its customer service function. 11. Employees and Conduct The CONTRACTOR shall prohibit any drinking of alcoholic beverages or the use of any controlled substances, except by doctor's prescription, by its drivers and crew members while on duty or in the course of performing their duties required under the terms of this Contract. The VILLAGE shall have the right to inspect the results of the drug testing program for CONTRACTOR employees providing service to the VILLAGE provided that such does not violate any legal rights to confidentiality. In the event that any of the CONTRACTOR'S employees is deemed by the VILLAGE to be unfit or unsuitable to perform the services required under the terms of this proposal as a result of intoxication, drug use, incompetence, or by virtue of abusive or obnoxious behavior; then, upon request of the VILLAGE, the CONTRACTOR shall remove such employee from work within the VILLAGE and replace him /her with a suitable and competent employee. CONTRACTOR shall provide courteous personnel on its collection crews and courteous and knowledgeable personnel in its customer service and billing /payment functions. 12. Prevailing Wage The CONTRACTOR shall comply with any applicable prevailing wage requirements and all labor regulations enforced by state or federal agencies. 13. Current Estimate of Residential Service Units The following is the estimated number of residential service units currently being serviced in the VILLAGE: Single- family detached households 9,173 Multi- family, curbside pickup 2,147 Multi- family households, central container 3,507 The VILLAGE disclaims any warranties and or accuracy of these numbers. The CONTRACTOR may conduct a residential service unit count at the CONTRACTOR'S expense. 14. Vehicles All vehicles shall be maintained in good working order and appearance, free of rust, and shall be clean at the start of each collection day. No vehicle shall be operated on the VILLAGE streets that leaks any fluids from the engine or compacting mechanism. All vehicles shall display the name of the CONTRACTOR, and a vehicle identification number that is clearly visible on both sides of the vehicle. 10 CONTRACTOR shall be responsible for cleaning any fluids, municipal waste, landscape waste or recyclables that leak or otherwise spill from any vehicle. In the event the VILLAGE cleans any fluids, waste or recyclables that leak or otherwise spill from any vehicle, the CONTRACTOR shall be responsible for reimbursing the VILLAGE for any and all costs associated with the clean -up. Not later than December 31, 2012, the CONTRACTOR shall commence the use of at least two trucks that operate on compressed natural gas ( "CNG ") for the provision of garbage and refuse collection, and /or recyclable materials collection services. Each year thereafter, the CONTRACTOR shall add two trucks that use CNG fuel until all trucks collecting garbage and refuse and recyclable materials are CNG trucks; provided, however, that the CONTRACTOR may use trucks that do not operate on CNG per the requirement of this section, but only in the event of equipment failure on or related to the trucks that operate on CNG, and only to the minimal extent necessary to provide the collection services as required pursuant to this Contract. The CONTRACTOR shall also be required to convert a VILLAGE light duty vehicle to CNG at the sole cost of the CONTRACTOR based on a time frame as mutually agreed to by the VILLAGE and CONTRACTOR. C. PROGRAM DESCRIPTIONS All items placed out for collection by residents must be at the curb or alley by 6:00 a.m. on the designated collection day. The CONTRACTOR shall handle all carts, cans, and containers with reasonable care to avoid damage and attempt to replace them in the same upright position on the parkway or by the alley side where the containers were initially placed. In the event the CONTRACTOR cannot accept certain restricted items, the CONTRACTOR will utilize a dedicated communication mechanism to inform the residents as to the reason why the material was not accepted in accordance with the provision of section B.7. herein. 1. Municipal Waste Collection a. Definition: Municipal Waste is defined herein as the day -to -day accumulations of non- hazardous waste materials as may be generated in a household which includes discarded and unwanted putrescible and non putrescible household and kitchen wastes, including but not limited to food, food residues and materials necessarily used for packaging, storing, preparing, and consuming same, usually defined as "garbage ", and all combustible and non combustible waste materials resulting from the usual routine of domestic housekeeping including but not limited to boxes, cartons, wrapping, crockery, plastic containers, fixtures, and papers and small electronic appliances such as toasters, vacuum cleaners, etc, and those items not defined as Recyclables or Landscape Waste. Christmas trees, wreaths, and other ornamental indoor plants are included this definition. For the purposes of this agreement, the terms refuse, rubbish, garbage, solid waste, trash, and waste shall have the same meaning. The definition of Municipal Waste shall not include large automotive parts or tires, broken concrete, construction and /or demolition materials, building materials, rocks, soil, household hazardous wastes such as paints, oils, solvents or other materials that may present a fire hazard, any single household item too large to be placed in a compactor -type truck or for one person to reasonably manage, excluding bulk items as defined in section C.1.d herein, and /or material(s) resulting from fires, floods, flooding, or evictions. These types of items are not subject to collection under the agreement. Municipal Waste shall 11 • ' . • also not include electronic wastes that are banned from deposit in landfills as a result of Electronic Products Recycling and Reuse Act, 415 ILCS 150/1 et seq. The CONTRACTOR may accept incidental quantities of construction type materials provided that it does not exceed one cubic yard, it is properly bundled or contained in the provided cart, and that one person can safely load the materials into the collection vehicle. b. Frequency of Collection: Once per UNIT each week, unless twice is requested by the UNIT. C. Service Levels: The CONTRACTOR shall provide for once or twice per week the collection of garbage, refuse, recyclables, and yard waste materials for all occupied UNITS within the VILLAGE. All Municipal Waste as herein defined that is designated for collection and disposal may be placed in covered cans or containers not to exceed thirty (32) thirty -two gallons in capacity with a maximum weight for any one container and its contents not to exceed fifty (50) pounds (except asset forth in section C.1.c.ii.). Heavy duty bags which are securely fastened shall be considered proper containers so long as they do not exceed thirty (30) gallons capacity and are fifty (50) pounds or less in weight. ii. Carts may be considered in the future for an additional charge, as approved by the VILLAGE and CONTRACTOR. From May 1 through May 31 each year, the CONTRACTOR shall at its own expense, provide each unit covered under this agreement with an option of selecting a 65- gallon or 95- gallon commercial grade cart for the purpose of waste collection. If the resident does not make a choice prior to a specified response date as mutually agreed to by the VILLAGE and CONTRACTOR, the resident will be provided with a 95- gallon cart. The CONTRACTOR may charge a fee for replacing the cart with a different size if the option is not exercised between May 1 through May 31 each year. The carts will remain the property of the CONTRACTOR. The CONTRACTOR will be responsible for the distribution of and the maintenance of the carts in the event that the carts are damaged from normal usage. The CONTRACTOR shall be responsible for repair or replacement of the carts as a result of normal usage and wear and tear. The CONTRACTOR will not be responsible for the cleanliness and /or odors resulting from the cart usage by the residents. d. Bulk Item Service: Bulk items are defined as including but not limited to large items such as couches, chairs, mattresses and tables and other furniture pieces. Bulk items, as defined herein, are considered subject to collection by the CONTRACTOR according to the terms and definitions of this Contract. The CONTRACTOR will make available the collection of bulk items each week at no additional cost to the resident. White goods such as refrigerators, washers, dryers, water heaters and those items defined by Illinois Administrative Code Title 35 Section 875.101 shall be collected based on a cost as set forth in Exhibit B attached hereto. e. Special Pick up and Optional Service: All other solid waste materials not heretofore provided for shall be collected and disposed of in unlimited quantity as a special pick up. Residents with additional material or home improvement projects may Contract separately with the CONTRACTOR. Such items shall include large amounts of building materials (including lumber, structural steel, concrete, bricks and stones), heavy appliances, pianos and such other bulky items that require more than one person to 12 0 ' ' 0 handle. Such items shall be arranged for pick up between customer and CONTRACTOR or other independent CONTRACTOR at a special charge to customer. The CONTRACTOR will make available 10, 15, 20 and 30 cubic yard containers or WM BAGSTER for this purpose. VILLAGE Requested Clean Ups The VILLAGE may request that the CONTRACTOR conduct curbside clean ups for activities including but not limited to illegally dumped refuse, code violations, foreclosures and emergencies as determined by the VILLAGE. The CONTRACTOR will determine the appropriate method and time for the clean ups so long as said waste is non - hazardous and is within the scope of this agreement at no additional cost to the VILLAGE. g. Public Building /Areas Collection: CONTRACTOR shall be required to collect municipal waste and recyclable materials via commercial containers, provided by the CONTRACTOR at or before the commencement date of this Contract, once per week at no cost from containers in public areas as described as follows: 1. Arboretum Golf Course, 401 Half Day Road 2. Arboretum Maintenance Building, 451 Half Day Road 3. Buffalo Grove Golf Club, 48 Raupp Boulevard 4. Buffalo Grove Maintenance shop, 454 Old Checker Road 5. Buffalo Grove Metra Station, 825 Commerce Court 6. Fire Station #25, 505 W. Dundee Road 7. Fire Station #26, 109 Deerfield Parkway 8. Fire Station #27, 100 W. Half Day Road 9. Police Department, 46 Raupp Boulevard 10. Public Works, 51 Raupp Boulevard 11. Village Hall, 50 Raupp Boulevard The VILLAGE may add additional VILLAGE owned or leased buildings or property without additional charge. h. Special Events: The CONTRACTOR shall provide roll -offs to the VILLAGE for special community events including but not limited to Buffalo Grove Days, Buffalo Grove Invitational Fine Art Festival and National Night Out throughout the Contract term. These services will be available to the VILLAGE starting May 1, 2012. i. Roll off Services: The CONTRACTOR shall provide 20- or 40 -yard roll -offs as available by the CONTRACTOR to the VILLAGE at no additional charge. The VILLAGE must provide the CONTRACTOR with a least 48 hours notice for placement of these containers. j. Disposal of Village Waste: All Municipal Waste and Recyclables will be disposed of by CONTRACTOR at a Village approved facility. All costs of collection and transportation of such waste will be borne by CONTRACTOR. k. Equipment to be used by CONTRACTOR: The CONTRACTOR agrees to collect all municipal waste in fully enclosed leak -proof modern packer -type trucks. Equipment used for special pick -up service may 13 be open body trucks, dump trucks, and similar type equipment. When open body trucks are used, the CONTRACTOR will use care to see that no litter or scattering of waste material occurs by providing a suitable covering. The VILLAGE agrees and covenants with the CONTRACTOR that during the lifetime of this Contract the VILLAGE will not require by ordinance or otherwise that the CONTRACTOR use any equipment not comparable with the present equipment in the performance of this Contract. 2. Recyclables Collection a. Definition: Recyclables are defined within Exhibit C, attached hereto. The list may be modified by mutual consent of the VILLAGE and CONTRACTOR. The Customer shall sort Recyclables and place them into a separate container for pick -up by the CONTRACTOR. White Goods shall be collected in accordance to the cost as set forth within Exhibit B. Recycling collection shall also include the collection of White Goods such as refrigerators, washers, dryers, water heaters and those items defined by Illinois Administrative Code Title 35 Section 875.101. Residents will not be responsible for the removal of refrigerants or mercury switches prior to collection. b. Frequency of Collection: Collection shall be once per week. The collection shall be on the same day as municipal waste collection. C. Service Level: Unlimited collection of the materials defined herein as part of monthly rate. Large boxes should be cut down to a nominal dimension of 2 feet x 2 feet and placed adjacent to the recycling cart. d. Containers - 65- gallon carts: The CONTRACTOR shall at its own expense, provide each Unit covered under this Contract with a 65- gallon commercial grade cart for the purpose of recycling collection. The carts will remain the property of the CONTRACTOR. The CONTRACTOR will be responsible for the distribution of and the maintenance of the carts in the event that the carts are damaged from normal usage. The CONTRACTOR shall be responsible for repair or replacement of the carts as a result of normal usage and wear and tear. The CONTRACTOR will not be responsible for the cleanliness and /or odors resulting from the cart usage by the residents. Each Unit may change out the 65- gallon cart for a 35- gallon or 95- gallon cart one -time at no charge from May 1 through May 31, for each year of the Contract. The CONTRACTOR may charge a fee for replacing the cart with a different size if the option is not exercised between May 1 through May 31 each year. Residents may rent additional carts, either 65- gallon or 95- gallon through the CONTRACTOR for a charge of $2.50 per month. e. Separate Vehicle Pick -up Required: Recyclable material shall not be co- mingled with municipal waste. A separate recycling pick -up shall be required with a separate vehicle. f. Disposal: All recyclables shall be collected, separated and otherwise treated so as to facilitate the sale of said materials to end -use markets or recycled material brokers. No materials collected as recyclable may be deposited in a landfill or waste incinerator, but shall be recycled regardless of the income received or the cost to the CONTRACTOR resulting from the sale of said materials. 14 0 i 1 0 g. Revenues: CONTRACTOR shall share all revenues from the sale of Recyclables with the VILLAGE in accordance with the following structure: • Industry standard, OBM Yellow Sheet Price for 48 Newspaper, less a processing cost of $60.00 per ton, shared equally between the VILLAGE and CONTRACTOR. This figure shall represent the "net rebate ". • The VILLAGE shall receive the net rebate, plus an additional $2.50 per ton of Recyclables collected. • Floor payout of $7.00 /ton. h. Recycling Incentives: CONTRACTOR agrees to provide recycling incentives through Recyclebank© at the request of the VILLAGE. The costs of the Recycling Incentive are added to CONTRACTOR'S Compensation set forth within Exhibit B, Final Cost Proposal. 3. Landscape Waste Collection a. Definition of Landscape Waste: Landscape Waste is defined as all accumulations of grass or a combination of grass shrubbery cuttings, twigs, leaves, branches, and other material accumulated as the result of routine care of maintenance of lawns, landscaping and gardens and as otherwise described at 415 ILCS 5/3.270. This definition does not include whole trees, stumps, sod, dirt, rock, and other comparable landscape materials. b. Frequency of Collection: Effective May 1, 2012, landscape waste will be collected one day each week from April 1st through December 15`n C. Service Levels: Weekly collection of the Landscape Waste shall be collected from April 1 through December 15"'' at a rate as set forth within Exhibit B. d. Containers /Preparation: Landscape waste materials must be placed in a biodegradable paper "Kraft" type bags, up to thirty -three (33) gallons in capacity. Shrubbery cuttings, tree branches or twigs must be placed in a landscape paper bag or in a securely tied bundle. Ties must be made of string or twine. Branch bundles must not exceed 4 feet in length. Bags containing landscape waste and /or branch bundles cannot exceed 50 pounds in weight. e. Separate Vehicle Pick -up Required: Landscape waste shall not be co- mingled with any other municipal waste. A separate landscape waste pick -up shall be required with a separate vehicle. f. Disposal: All landscape waste shall be disposed of at a lawfully operated landscape waste composting facility. Said facility may treat, compost, grind, or land apply said landscape waste. No landscape waste may be disposed of at a landfill or solid waste incinerator unless otherwise authorized by the Illinois Environmental Protection Act (415 ILCS 5/1). D. REVENUE COLLECTION 1. Compensation. The Contractor shall charge for refuse, recycling and yard waste collection services as stated in CONTRACTOR'S proposal set forth in Exhibit B, Cost Proposal. In addition, CONTRACTOR shall add to its charges the applicable SWANCC fee, as adopted by the VILLAGE that will be collected 1111.7 • . ' 0 by the CONTRACTOR and paid to the VILLAGE. The CONTRACTOR'S compensation shall be effective on May 1, 2012 and will be effective through April 30`h, 2017. Compensation for the extension term shall be established based upon mutual agreement of VILLAGE and CONTRACTOR. The CONTRACTOR shall perform on a quarterly basis, the billing and collection of all rates and charges established by the VILLAGE relating to services required by this Contract. The VILLAGE agrees to cooperate and assist the CONTRACTOR in the collection of funds owed for services performed. The VILLAGE further agrees to cooperate with respect to information, if any, relating to move -ins, move - outs or any other information that will assist the CONTRACTOR in the execution of this Contract. 2. Payment of SWANCC Fees. The CONTRACTOR shall, on a monthly basis, pay to the VILLAGE an amount equal to the monthly SWANCC fees it has collected as a result of its last monthly invoices. 3. Adjustment. CONTRACTOR and the VILLAGE agree to negotiate increases in the compensation rates set forth herein in the event new governmental fees or taxes relating to CONTRACTOR'S services are implemented or existing governmental fees or taxes relating to CONTRACTOR'S services are increased. E. EXECUTION This Contract entered into on the date first written above. VILLAGE of Buffalo Grove: it M CONTRACTOR: Waste Management of of Illinois, Inc. By: I A i I�j (C __ "40 M e Wink — Municipa Marketing Manager Attest: V .7 _%J r--n�� f!� ,ToLj GE,. '3if$. — OisrA,� r Al ItA 4 ) fn 0 0 EXHIBIT A- WASTE MANAGEMENT RESPONSE TO THE REQUEST FOR PROPOSAL 17 0 EXHIBIT B - FINAL COST PROPOSAL 18 0 0 EXHIBIT C - RECYCLING PROGRAM 0 The list of items below represents the current materials currently being accepted. This list may expand or Contract due to market conditions upon the mutual consent of the VILLAGE and CONTRACTOR. LIST OF RECYCABLES UBC TIN STEEL CANS ALUMINUM FOIL GLASS CONTAINERS ASEPTIC PACKAGING # 1 PET SODA, WATER, FLAVORED BEVERAGE BOTTLES #2 HDPE- NATURAL CONTAINERS #2 HDPE- PIGMENTED CONTAINERS # 3 PVC — VEGETABLE OIL BOTTLES, WINDOW CLEANERS ETC. # 5 LOPE — FOOD GRADE BOTTLES # 7 PP— YOGURT CUPS, SYRUP BOTTLES, OTHER FOOD CONTAINERS PET CONTAINERS ASEPTIC & GABLE TOP CARTONS RESIDENTIAL PAPER FIBER NEWSPAPER (70 TO 90% BY WEIGHT) NEWSPAPER INSERTS MIXED PAPER (10 TO 30% BY WEIGHT) CARDBOARD (NO WAX) CARRIER STOCK (SODA & BEER CASES) CATALOGS & TELEPHONE BOOKS CHIPBOARD (CEREAL, CAKE, & FOOD MIX BOXES) JUNK MAIL KRAFT PAPER MAGAZINES OFFICE PAPER * Denotes that item has a very limited market and may not be recyclable. 19 3 STATE OF ILLINOIS) ss. COUNTY OF COOK ) CERTIFICATE I, Janet M. Sirabian, certify that I am the duly elected and acting Village Clerk of the Village of Buffalo Grove, Cook and Lake Counties, Illinois. I further certify that on April 16, 2012, the Corporate Authorities of the Village passed and approved Ordinance No. 2012 -16, AN ORDINANCE APPROVING THE VILLAGE OF BUFFALO GROVE AND WASTE MANAGEMENT OF ILLINOIS, INC. REFUSE AND RECYCLING COLLECTION AND DISPOSAL AGREEMENT prepared, and a copy of such Ordinance was posted in and at the Village Hall, commencing on April 17, 2012 and continuing for at least ten days thereafter. Copies of such Ordinance were also available for public inspection upon request in the Office of Village Clerk. Dated at Buffalo Grove, Illinois, this 17th day of April, 2012 �% `YtL77 'Vilage Clerk (1� /� A, By 4 and, 4 -11 -2012 Ordinance No. 2012- 16 An Ordinance Approving the Village of Buffalo Grove and Waste Management of Illinois, Inc. Refuse and Recycling Collection and Disposal Agreement WHEREAS, the Village of Buffalo Grove is a Home Rule Unit by virtue of the Illinois Constitution of 1970; WHEREAS, On November 7, 2011, the Village of Buffalo Grove waived bids and authorized a Request for Proposal for Residential Solid Waste & Recycling Services; and WHEREAS, on April 2, 2012, the Village Board authorized staff to negotiate a contract for service with Waste Management following review and analysis of the proposals. WHEREAS, the Corporate Authority of the Village finds that it is in the best interest of the Village to enter into an agreement with Waste Management of Illinois, Inc. as the exclusive provider for the collection and disposal of residential recyclables, refuse and landscape waste within the community. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS: Section 1. The foregoing Whereas clauses are hereby incorporated herein. Section 2. The Village President and Village Clerk are hereby authorized to execute the Agreement by and between the Village of Buffalo Grove and Waste Management of Illinois, Inc. which is attached hereto and made a part hereof. Section 3. This Ordinance shall be in full force and effect from and after its passage and approval. AYES: _ 6 — Berman Trilling, Sussman, Terson Stein Ottenheimer NAYES: 0 — None ABSENT: 0 - None ABSTAIN: 0 - None PASSED: April 16 _ .2012. APPROVED: ATTEST: Village Clerk 2012. 4 April 16, 2012 VILLAGE OF BUFFALO GROVE and WASTE MANAGEMENT OF ILLINOIS, INC. REFUSE AND RECYCLING COLLECTION AND DISPOSAL AGREEMENT RECITALS........................................................................................................................... ..............................2 A. GENERAL PROVISIONS ........................................................................................ ..............................2 1. Scope of Work .......................................................................................... ..............................3 2. Exclusive Grant ......................................................................................... ..............................3 3. Contractor's Private Work ........................................................................ ..............................3 4. Contract Period ......................................................................................... ..............................3 S. Compliance With Applicable Laws ............................................................ ..............................3 6. Compliance With Equal Employ. Opp. Act and Illinois Human Rights Act .............................3 7. Permits, Licenses, Certifications and Taxes .............................................. ..............................3 8. Independent Contractor ........................................................................... ..............................4 9. Performance Bond .................................................................................... ..............................4 10. Insurance .................................................................................................. ..............................4 11. Indemnification ........................................................................................ ..............................5 12. Default ...................................................................................................... ..............................5 13. Non - assignment of Contract .................................................................... ..............................6 14. Non - Collection Due to Improper Material or Procedure ......................... ..............................6 15. Disputes ................................................................................................... ..............................6 16. Title to Municipal Waste, Landscape Waste and Recyclables ................. ..............................7 17. Notices ..................................................................................................... ..............................7 18. Severability ............................................................................................... ..............................7 19. Law to Govern and Venue ........................................................................ ..............................7 20. Right to Require Performance ................................................................. ..............................7 B. GENERAL OPERATING REQUIREMENTS .............................................................. ..............................8 1. Identification of Applicable Properties for Collection ............................. ..............................8 2. Collection Times ....................................................................................... ..............................8 3. Initial Start -Up Date .................;............................................................... ..............................8 4. Holidays .................................................................................................... ..............................8 S. Storage of Contractor's Equipment and Materials .................................. ..............................8 6. Public Information ................................................................................... ..............................8 7. Customer Complaints .............................................................................. ..............................9 8. Disposal of Waste .................................................................................... ..............................9 9. Sufficient Financial and Equipment Capabilities ...................................... ..............................9 10. Prevailing Wage ...................................................................................... .............................10 11. Current Estimate of Residential Service Units ........................................ .............................10 12. Vehicles ........................ ............................... ............................................ .............................10 C. PROGRAM DESCRIPTIONS ................................................................................ .............................11 1. Municipal Waste Collection ..................................................................... .............................11 1 } 2. Recyclables Collection ............................................................................. .............................14 3. Landscape Waste Collection .................................................................... .............................15 D. REVENUE COLLECTION ..................................................................................... .............................15 E. EXECUTION ......................................................................................................... .............................16 EXHIBIT A — WASTE MANAGEMENT RESPONSE TO THE REQUEST FOR PROPOSAL EXHIBIT B — FINAL COST PROPOSAL y1:I1:llr�:iXil`L�l�l1[el� :Z�Z : 2 M This Agreement is entered into this 16`h day of April 2012, by and between The Village of Buffalo Grove, Illinois, an Illinois Municipal Corporation (hereinafter the "VILLAGE ") and Waste Management of Illinois, Inc., a Delaware Corporation (hereinafter the "CONTRACTOR "). RECITALS Whereas, Section 11 -19 -1 et. seq. of the Illinois Municipal Code, 65 ILCS 5/11 -19 -1) permits a municipality to enter into an exclusive Contract for the collection and final disposition of residential recyclables, garbage and refuse within the municipality; and Whereas, the Corporate Authority of the VILLAGE finds that it is in the best interest of the VILLAGE to enter into a Contract with the CONTRACTOR as the exclusive provider for the collection and final disposition of residential recyclables, garbage and refuse within the municipality. WITNESSETH In consideration of the mutual covenants and agreements hereinafter set forth, the VILLAGE and the CONTRACTOR agree as follows: A. GENERAL PROVISIONS 1. Scope of Work The CONTRACTOR responded to a Request for Proposal for Residential Solid Waste & Recycling Services for the VILLAGE which response is attached hereto as Exhibit A, dated December 31, 2011, and includes amendments and clarifications attached thereto and together constitutes the CONTRACTOR'S entire offer of service. The CONTRACTOR shall be responsible for all work to be performed under this agreement (hereinafter "Contract ") and as set forth within Exhibit A, and shall provide and furnish all of the labor, materials, necessary tools, expendable equipment and supplies, vehicles, transportation services, landfill and compost facility space required to perform and complete the collection and disposal of refuse and yard 11A waste, and further shall provide and furnish all of the labor, materials, necessary tools, expendable equipment and supplies, vehicles, transportation services required to perform the collection and disposal of recyclables. Such service shall be provided for all applicable properties within the corporate limits of the VILLAGE of Buffalo Grove and any territory hereinafter annexed, all in accordance with this Contract. The CONTRACTOR acknowledges that it is familiar with the number and type of properties to be served within the VILLAGE, and is familiar with the projected growth of the VILLAGE boundaries. 2. Exclusive Grant The VILLAGE agrees that in consideration of the faithful performance of the obligations herein undertaken by the CONTRACTOR, the VILLAGE, by execution of this Contract, grants to the CONTRACTOR, for the term of this Contract only, the sole and exclusive license to collect and dispose of residential municipal waste, landscape waste, and recyclables from all applicable properties within the corporate limits of the VILLAGE and any territory hereinafter annexed. 3. CONTRACTOR'S Private Work The CONTRACTOR may, at its option, Contract separately for work as a private scavenger or hauler and charge customers covered by this Contract for services not provided in this Contract, or Contract with customers not covered by this Contract. Any such private work shall be in accordance with all federal, state and VILLAGE laws, and shall not interfere with the CONTRACTOR'S performance under this Contract. 4. Contract Period The initial term of this Contract shall be five (5) years, commencing on May 1, 2012 and shall remain in full force and effect through midnight of April 30, 2017. Contract may be extended for an additional five year term upon the mutual agreement of CONTRACTOR and the VILLAGE. 5. Compliance With Applicable Laws The CONTRACTOR shall comply with all Federal, State, and local laws, ordinances, rules and regulations governing the work required under the terms of this Contract. 6. Compliance With Equal Employment Opportunity Act and Illinois Human Rights Act During the term of this Contract, the CONTRACTOR shall comply with the Equal Employment Opportunity Act and the Illinois Human Rights Act, The CONTRACTOR shall have a written equal opportunity policy statement declaring that it does not discriminate on the basis of race, color, religion, sex, national origin, disability or age as required by law. Findings of non - compliance with applicable Federal or State equal employment opportunity laws may constitute cause for termination of this Contract. 7. Permits, Licenses, Certifications and Taxes The CONTRACTOR shall secure and pay for, at its expense, all necessary permits, licenses and certificates required to perform the work herein. The CONTRACTOR shall maintain said permits, licenses and 3 certificates in full force and effect during the term of this Contract, and shall comply with all requirements thereof. No work shall proceed or commence without said necessary permits, licenses, and certificates. The CONTRACTOR shall pay all sales, use, property, income, and other taxes that are lawfully assessed against the VILLAGE or the CONTRACTOR in connection with the CONTRACTOR'S facilities and the work included in this Contract. The VILLAGE is exempt from paying certain taxes, including Federal Excise Tax, State and Local Retailers' Occupation Tax, Use Tax and Service Use Tax. 8. Independent Contractor The CONTRACTOR shall be deemed to be an independent CONTRACTOR, solely responsible for the control and payment of its operations and employees. 9. Performance Bond At the time of the execution of the Contract, the CONTRACTOR, at its expense, shall provide the VILLAGE with a performance bond in the amount of four - hundred and sixty thousand dollars ($460,000.00), which shall be maintained in full force and effect throughout the term of this Contract and any extensions thereof. Said bond shall be executed with a surety company licensed to do business in the State of Illinois and acceptable to the VILLAGE and shall be subject to approval as to form and content by the VILLAGE'S attorney. This Contract shall not be executed unless said performance bond has been delivered and approved as herein provided. No work shall commence or proceed without said performance bond being approved and in full force and effect. Failure to provide or maintain said performance bond in full force and effect shall be cause for termination of this Contract. 10. Insurance The CONTRACTOR shall carry in its name, at its own expense, at least the following insurance coverage: (a) Workers' Compensation and Occupational Disease Insurance - Statutory amount for Illinois; (b) Vehicle Liability Insurance: (1) Bodily injury, with limits of not less than $3,000,000 each person and not less than $5,000,000 per occurrence. (2) Property damage, with limits of not less than $3,000,000 per occurrence Vehicle Liability and General Liability insurance policies. The CONTRACTOR shall furnish annually the VILLAGE with policy information which evidences compliance with the insurance requirements set forth herein, and with a certificate of insurance attesting to the required overages for the full term of the Contract, including the 30 day notice requirements. No work shall commence or proceed without said insurance overages being in full force and effect. (c) General Liability Insurance: 4 (1) Bodily injury, with limits of not less than $3,000,000 per person and not less than $5,000,000 per occurrence. (2) Property damage, with limits of not less than $3,000,000 for each incident and $5,000,000 per occurrence. (3) Contractual insurance - broad form, with limits of not less than $3,000,000 each occurrence and no more than $5,000,000 each occurrence. (d) Umbrella or excess liability coverage of $10,000,000 per occurrence and in the aggregate. (e) The insurance coverage shall be written with insurance companies licensed to do business in the State of Illinois and acceptable to the VILLAGE. All insurance premiums shall be paid without cost to the VILLAGE. Said policies shall provide that they may not be cancelled or reduced without thirty (30) days prior written notice to the VILLAGE. In the event of any cancellation or reduction, the CONTRACTOR is responsible for obtaining new insurance coverage. The CONTRACTOR shall name the VILLAGE as an additional insured on each policy for any liability arising out of the CONTRACTOR'S work. (f) The insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way limit the liability of the CONTRACTOR under the terms of this Contract. The CONTRACTOR shall procure and maintain, at its own cost and expense, any additional types and amounts of insurance, which, in its own judgment, may be necessary for its proper protection in the execution of the work. 11. Indemnification The CONTRACTOR shall indemnify, defend, save and hold harmless the VILLAGE, its officers and employees, from any and all liability, losses, costs, expenses, demands, taxes, claims, damages, lawsuits, proceedings, or causes of action, including worker's compensation claims, of any kind or nature whatsoever, including reasonable attorney's fees and costs of defense, that the VILLAGE may suffer, incur, sustain, or become liable for, on account of any injury to or death of its employees, or injury or death to any person, or damage to or injury to real estate or personal property, in any way resulting from, out of, or in connection with, or pursuant to this Contract, caused by the operations of the CONTRACTOR, its agents, employees, or any SubContractors in performance of the work to be conducted. The CONTRACTOR expressly understands and agrees that any performance bond or insurance coverage required by this Contract, or otherwise provided by the CONTRACTOR, shall in no way limit the responsibility to indemnify, keep and hold harmless and defend the VILLAGE, and to pay expenses and damages as herein provided. 12. Default All terms and conditions of the Contract are considered material and the failure of the CONTRACTOR to perform any of said terms and conditions shall be considered a breach of the Contract. If the CONTRACTOR fails to perform according to the terms and conditions herein, or fails to collect and /or dispose the municipal waste or landscape waste, or fails to collect and /or market the recyclables as 5 required herein for more than seven (7) consecutive working days, the VILLAGE shall reserve the right to determine if there has been sufficient cause to justify such lack of performance. If in the VILLAGE'S sole judgment, sufficient cause has been demonstrated, then the VILLAGE shall serve notice of default, identifying the Contract violations and stating that this Contract shall be deemed in default if the CONTRACTOR does not take action to correct the violation or re- establish the schedule within three (3) days of said notice. If, at the end of the three (3) day period, the CONTRACTOR has not made the necessary corrections, the VILLAGE shall take such steps as are necessary to furnish services according to the collection requirements provided in this Contract, and shall have the right to terminate the Contract. The VILLAGE shall also have the authority to engage another Contractor to perform services of this Contract which shall be at the cost of the VILLAGE. The CONTRACTOR shall be liable for any and all costs of such steps from the date of the notice of default. The remedies provided herein shall not be exclusive, but shall be in addition to any other remedy available to the VILLAGE including, but not limited to, claim on the performance bond, or other legal or equitable remedies. The failure of the VILLAGE to declare a default or insist on performance of any specific term or condition shall not constitute a waiver on the part of the VILLAGE to declare a default by the continuing or subsequent failure of the CONTRACTOR to perform according to the terms and conditions of the Contract. In the event the CONTRACTOR shall be adjudged bankrupt, either by voluntary or involuntary proceedings, then the Contract shall immediately terminate; and in no event shall the Contract be, or be treated as, an asset of the CONTRACTOR after adjudication of bankruptcy. If the CONTRACTOR shall become insolvent or fail to meet its financial obligations, then the Contract may be terminated at the option of the VILLAGE upon seven (7) days written notice to the CONTRACTOR and in no event shall the Contract be, or be treated as, an asset of the CONTRACTOR after the exercise of said option by the VILLAGE. In any event where the CONTRACTOR has not performed the work, even if such failure is caused by strikes, acts of God, or "force majeure ", beyond the CONTRACTOR'S control, the CONTRACTOR shall not be paid. 13. Non - assignment of Contract This Contract has been awarded by the VILLAGE based upon the specific evaluation of the CONTRACTOR, and the ability of the CONTRACTOR to perform the work. This Contract is not assignable by the CONTRACTOR either voluntarily or involuntarily, or by process of law, without the prior written consent of the VILLAGE, and shall not be or come under the control of creditors, or a trustee or trustees of the CONTRACTOR in case of bankruptcy, or insolvency of the CONTRACTOR. Any attempt to assign the Contract shall subject the Contract to immediate termination by the VILLAGE. 14. Non- Collection Due to Improper Material or Procedure If material is not collected due to non - compliance with State Statute, the CONTRACTOR shall leave the resident a card, note, or "door hanger" to (1) identify the specific reason for non - collection and (2) explain the proposed recourse the resident should take to alleviate the dispute. 15. Disputes The CONTRACTOR'S performance of the work under this Contract shall be observed and monitored by 6 the VILLAGE. Should the VILLAGE determine during the term of the Contract that the CONTRACTOR has not preformed satisfactorily, the CONTRACTOR, upon notification from VILLAGE, shall increase the work force, tools and equipment as needed to properly perform to the satisfaction of the VILLAGE. The failure of VILLAGE to give such notification shall not relieve the CONTRACTOR of its obligation to perform the work at the time and in the manner specified. 16. Title to Municipal Waste Landscape Waste and Recyclables Title to municipal waste, landscape waste and recyclables shall pass to the CONTRACTOR when the materials are placed into the collection vehicle. Revenues from recyclables shall be in accordance with section C.2.g. herein. 17. Notices All notices required by this Contract shall be in writing and shall be delivered in person or sent by first class mail with sufficient postage prepaid, or by certified/ return receipt requested mail with sufficient postage and certification fees fully prepaid. Notices delivered personally shall be deemed received upon delivery. Notice delivered by mail shall be deemed to have been given as of the date of the United States Postal Service postmark. Notices to the parties shall be made and addressed to the following: If to the VILLAGE: Dane Bragg or VILLAGE Manager VILLAGE of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, IL 60089 If to the CONTRACTOR: Michael Brink or Municipal Marketing Manager Waste Management of Illinois, Inc. 1411 Opus Place, Suite 400 Downers Grove, IL 60515 Any changes of address may be sent by furnishing written notice to the other party. 18. Severability The invalidity of one or more of the phrases, sentences, clauses or subsections contained in this Contract shall riot affect the validity of the remaining portion of this Contract so long as the material purposes of this Contract can be determined and effectuated. 19. Law to Govern and Venue The laws of the State of Illinois shall govern this Contract and venue shall be in Cool: County, Illinois. 20. Right to Require Performance The failure of the VILLAGE, at any time, to require performance by the CONTRACTOR of any term or 7 condition in this Contract shall in no way affect the right of the VILLAGE thereafter to enforce said term or condition. Nor shall waiver by the VILLAGE of any breach of any term or condition of this Contract be taken or held to be a waiver of any succeeding breach of any such term or condition or a waiver of the term or condition itself. B. GENERAL OPERATING REQUIREMENTS 1. Identification of Applicable Properties for Collection The applicable properties located in the VILLAGE for which collection and disposal services of municipal waste, landscape waste and recyclables shall be provided pursuant to this Contract are as follows: The term UNIT shall mean all single - family residential units, 2- family residential units, attached and detached town homes, coach homes, and duplexes. The term UNIT shall include all multifamily residential dwellings whether classified as apartments, condominiums, or residential units that are combined with commercial and /or industrial units. 2. Collection Times The starting time for the pick -up service described herein shall not commence earlier than 6:00 am. All materials placed out for collections must be placed at the curb or alley (when available) by 6:00 am on the designated service day. 3. Initial Start -Up Date Collection of Refuse, Recyclables and Landscape Waste May 1, 2012 Monday, Tuesday, Wednesday, Thursday The CONTRACTOR shall give the VILLAGE at least 30 days written notice to any proposed route or schedule change. Any route or schedule changes shall be subject to approval of the VILLAGE which approval shall not be unreasonably withheld. 4. Holidays Holidays to be observed by the CONTRACTOR are as follows: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. No pick -up will be rendered on such holidays. Regular service shall be established on the next calendar day, which shall be Monday through Saturday. 5. Storage of CONTRACTOR'S Equipment and Materials No equipment or materials used to provide collection service shall be stored on any property, public or private, within the corporate limits of the VILLAGE unless otherwise agreed to by the parties. 6. Public Information The CONTRACTOR, at its expense, shall develop, print and distribute to all residential customers, a brochure, approved by the VILLAGE, explaining the solid waste, landscape, and recycling programs covered under this Contract whenever there is a change in the service or programs provided, including 8 changes in collection times. The brochure shall include a toll -free telephone number of the CONTRACTOR to be used for customer complaints as required herein. 7. Customer Complaints The VILLAGE and CONTRACTOR shall establish a mutually agreed to Customer Service Plan which shall include but not be limited to performance metrics for management and service of customer service calls and CONTRACTOR contacts with the public. The CONTRACTOR shall maintain an office and telephone service, with either a local exchange or a toll - free number, for the receipt of service calls or complaints, and shall be available for such calls on all working days from 7:00 a.m. to 5:30 p.m. Calls made after the time period noted shall be answered by an answering service which records all calls. All complaints shall be given prompt and courteous attention, and in case of a missed scheduled collection, the CONTRACTOR shall immediately investigate; and if verified, shall arrange for pick -up of said waste within 24 hours after the complaint is received. When requested, the CONTRACTOR shall report to the VILLAGE the status of service calls or complaints and shall maintain a daily log of such calls or complaints received, which record shall be open to the VILLAGE for inspection at any reasonable time. A monthly report of service calls or complaints shall be provided to the VILLAGE by the CONTRACTOR. 8. Disposal of Waste a. System Waste. "System Waste" is all waste that the VILLAGE has Contractually agreed will be disposed of in a Solid Waste Agency of Northern Cook County ( "SWANCC ") facility. Contractor shall transport for processing all System Waste collected pursuant to this Contract to SWANCC's Glenview Transfer Station. System Waste shall not be commingled with any non - system or private waste or with waste from outside the boundaries of the Village. b. Non - System Waste. i. Recycling materials shall be transported for processing and /or sale to a facility or facilities licensed and permitted under all applicable local, state and federal laws and regulations. ii. Landscape Waste collected shall be transported to a facility or facilities licensed and permitted under all applicable local, state and federal laws and regulations. iii. Bulk Items, including White Goods, shall be transported to a facility or facilities licensed and permitted under all applicable local, state and federal laws and regulations. S. Sufficient Financial and Equipment Capabilities The CONTRACTOR shall have the necessary financial ability and sufficient equipment to satisfy the 9 requirements placed upon it under the terms of this Contract. 10. Standard of Performance The CONTRACTOR shall undertake to perform all disposal services rendered hereunder in a neat, orderly and efficient manner, to use care and diligence, and to provide neat, orderly and courteous personnel on its crews and courteous and knowledgeable personnel in its customer service function. 11. Employees and Conduct The CONTRACTOR shall prohibit any drinking of alcoholic beverages or the use of any controlled substances, except by doctor's prescription, by its drivers and crew members while on duty or in the course of performing their duties required under the terms of this Contract. The VILLAGE shall have the right to inspect the results of the drug testing program for CONTRACTOR employees providing service to the VILLAGE provided that such does not violate any legal rights to confidentiality. In the event that any of the CONTRACTOR'S employees is deemed by the VILLAGE to be unfit or unsuitable to perform the services required under the terms of this proposal as a result of intoxication, drug use, incompetence, or by virtue of abusive or obnoxious behavior; then, upon request of the VILLAGE, the CONTRACTOR shall remove such employee from work within the VILLAGE and replace him /her with a suitable and competent employee. CONTRACTOR shall provide courteous personnel on its collection crews and courteous and knowledgeable personnel in its customer service and billing /payment functions. 12. Prevailing Wage The CONTRACTOR shall comply with any applicable prevailing wage requirements and all labor regulations enforced by state or federal agencies. 13. Current Estimate of Residential Service Units The following is the estimated number of residential service units currently being serviced in the VILLAGE: Single- family detached households 9,173 Multi- family, curbside pickup 2,147 Multi- family households, central container 3,507 The VILLAGE disclaims any warranties and or accuracy of these numbers. The CONTRACTOR may conduct a residential service unit count at the CONTRACTOR'S expense. 14. Vehicles All vehicles shall be maintained in good working order and appearance, free of rust, and shall be clean at the start of each collection day. No vehicle shall be operated on the VILLAGE streets that leaks any fluids from the engine or compacting mechanism. All vehicles shall display the name of the CONTRACTOR, and a vehicle identification number that is clearly visible on both sides of the vehicle. 10 h CONTRACTOR shall be responsible for cleaning any fluids, municipal waste, landscape waste or recyclables that leak or otherwise spill from any vehicle. In the event the VILLAGE cleans any fluids, waste or recyclables that leak or otherwise spill from any vehicle, the CONTRACTOR shall be responsible for reimbursing the VILLAGE for any and all costs associated with the clean -up. Not later than December 31, 2012, the CONTRACTOR shall commence the use of at least two trucks that operate on compressed natural gas ( "CNG ") for the provision of garbage and refuse collection, and /or recyclable materials collection services. Each year thereafter, the CONTRACTOR shall add two trucks that use CNG fuel until all trucks collecting garbage and refuse and recyclable materials are CNG trucks; provided, however, that the CONTRACTOR may use trucks that do not operate on CNG per the requirement of this section, but only in the event of equipment failure on or related to the trucks that operate on CNG, and only to the minimal extent necessary to provide the collection services as required pursuant to this Contract. The CONTRACTOR shall also be required to convert a VILLAGE light duty vehicle to CNG at the sole cost of the CONTRACTOR based on a time frame as mutually agreed to by the VILLAGE and CONTRACTOR. C. PROGRAM DESCRIPTIONS All items placed out for collection by residents must be at the curb or alley by 6:00 a.m. on the designated collection day. The CONTRACTOR shall handle all carts, cans, and containers with reasonable care to avoid damage and attempt to replace them in the same upright position on the parkway or by the alley side where the containers were initially placed. In the event the CONTRACTOR cannot accept certain restricted items, the CONTRACTOR will utilize a dedicated communication mechanism to inform the residents as to the reason why the material was not accepted in accordance with the provision of section B.7. herein. Municipal Waste Collection a. Definition: Municipal Waste is defined herein as the day -to -day accumulations of non- hazardous waste materials as may be generated in a household which includes discarded and unwanted putrescible and non putrescible household and kitchen wastes, including but not limited to food, food residues and materials necessarily used for packaging, storing, preparing, and consuming same, usually defined as "garbage ", and all combustible and non combustible waste materials resulting from the usual routine of domestic housekeeping including but not limited to boxes, cartons, wrapping, crockery, plastic containers, fixtures, and papers and small electronic appliances such as toasters, vacuum cleaners, etc, and those items not defined as Recyclables or Landscape Waste. Christmas trees, wreaths, and other ornamental indoor plants are included this definition. For the purposes of this agreement, the terms refuse, rubbish, garbage, solid waste, trash, and waste shall have the same meaning. The definition of Municipal Waste shall not include large automotive parts or tires, broken concrete, construction and /or demolition materials, building materials, rocks, soil, household hazardous wastes such as paints, oils, solvents or other materials that may present a fire hazard, any single household item too large to be placed in a compactor -type truck or for one person to reasonably manage, excluding bulk items as defined in section C.1.d herein, and /or materials) resulting from fires, floods, flooding, or evictions. These types of items are not subject to collection under the agreement. Municipal Waste shall 11 also not include electronic wastes that are banned from deposit in landfills as a result of Electronic Products Recycling and Reuse Act, 415 ILCS 150/1 et seq. The CONTRACTOR may accept incidental quantities of construction type materials provided that it does not exceed one cubic yard, it is properly bundled or contained in the provided cart, and that one person can safely load the materials into the collection vehicle. b. Frequency of Collection: Once per UNIT each week, unless twice is requested by the UNIT. c. Service Levels: The CONTRACTOR shall provide for once or twice per week the collection of garbage, refuse, recyclables, and yard waste materials for all occupied UNITS within the VILLAGE. All Municipal Waste as herein defined that is designated for collection and disposal may be placed in covered cans or containers not to exceed thirty (32) thirty -two gallons in capacity with a maximum weight for any one container and its contents not to exceed fifty (50) pounds (except as set forth in section C.1.c.ii.). Heavy duty bags which are securely fastened shall be considered proper containers so long as they do not exceed thirty (30) gallons capacity and are fifty (50) pounds or less in weight. ii. Carts may be considered in the future for an additional charge, as approved by the VILLAGE and CONTRACTOR. From May 1 through May 31 each year, the CONTRACTOR shall at its own expense, provide each unit covered under this agreement with an option of selecting a 65- gallon or 95- gallon commercial grade cart for the purpose of waste collection. If the resident does not make a choice prior to a specified response date as mutually agreed to by the VILLAGE and CONTRACTOR, the resident will be provided with a 95- gallon cart. The CONTRACTOR may charge a fee for replacing the cart with a different size if the option is not exercised between May 1 through May 31 each year. The carts will remain the property of the CONTRACTOR. The CONTRACTOR will be responsible for the distribution of and the maintenance of the carts in the event that the carts are damaged from normal usage. The CONTRACTOR shall be responsible for repair or replacement of the carts as a result of normal usage and wear and tear. The CONTRACTOR will not be responsible for the cleanliness and /or odors resulting from the cart usage by the residents. d. Bulk Item Service: Bulk items are defined as including but not limited to large items such as couches, chairs, mattresses and tables and other furniture pieces. Bulk items, as defined herein, are considered subject to collection by the CONTRACTOR according to the terms and definitions of this Contract. The CONTRACTOR will make available the collection of bulk items each week at no additional cost to the resident. White goods such as refrigerators, washers, dryers, water heaters and those iterns defined by Illinois Administrative Code Title 35 Section 875.101 shall be collected based on a cost as set forth in Exhibit B attached hereto. e. Special Pick up and Optional Service: All other solid waste materials not heretofore provided for shall be collected and disposed of in unlimited quantity as a special pick up. Residents with additional material or home improvement projects may Contract separately with the CONTRACTOR. Such items Snail include large amounts of building mater gals (including lumber, structural steel concre ±o tiricl<s and stones), heavy appliances, pianos and such other bulky items that require more than one person to 12 handle. Such items shall be arranged for pick up between customer and CONTRACTOR or other independent CONTRACTOR at a special charge to customer. The CONTRACTOR will make available 10, 15, 20 and 30 cubic yard containers or WM BAGSTER for this purpose. VILLAGE Requested Clean Ups The VILLAGE may request that the CONTRACTOR conduct curbside clean ups for activities including but not limited to illegally dumped refuse, code violations, foreclosures and emergencies as determined by the VILLAGE. The CONTRACTOR will determine the appropriate method and time for the clean ups so long as said waste is non - hazardous and is within the scope of this agreement at no additional cost to the VILLAGE. g. Public Building /Areas Collection: CONTRACTOR shall be required to collect municipal waste and recyclable materials via commercial containers, provided by the CONTRACTOR at or before the commencement date of this Contract, once per week at no cost from containers in public areas as described as follows: 1. Arboretum Golf Course, 401 Half Day Road 2. Arboretum Maintenance Building, 451 Half Day Road 3. Buffalo Grove Golf Club, 48 Raupp Boulevard 4. Buffalo Grove Maintenance shop, 454 Old Checker Road S. Buffalo Grove Metra Station, 825 Commerce Court 6. Fire Station 925, 505 W. Dundee Road 7. Fire Station #26, 109 Deerfield Parkway 8. Fire Station #27, 100 W. Half Day Road 9. Police Department, 46 Raupp Boulevard 10. Public Works, 51 Raupp Boulevard 11. Village Hall, 50 Raupp Boulevard The VILLAGE may add additional VILLAGE owned or leased buildings or property without additional charge. h. Special Events: The CONTRACTOR shall provide roll -offs to the VILLAGE for special community events including but not limited to Buffalo Grove Days, Buffalo Grove Invitational Fine Art Festival and National Night Out throughout the Contract term. These services will be available to the VILLAGE starting May 1, 2012. i. Roll off Services: The CONTRACTOR shall provide 20- or 40 -yard roll -offs as available by the CONTRACTOR to the VILLAGE at no additional charge. The VILLAGE must provide the CONTRACTOR with a least 48 hours notice for placement of these containers. I . Disposal of Village Waste: All Municipal Waste and Recyclables will be disposed of by CONTRACTOR at a Village approved facility. All costs of collection and transportation of such waste will be borne by CONTRACTOR. k. Equipment to be used by CONTRACTOR: The CONTRACTOR agrees to collect all municipal waste in fully enclosed leak -proof modern packer -type trucks. Equipment used for special pick -up service may 13 be open body trucks, dump trucks, and similar type equipment. When open body trucks are used, the CONTRACTOR will use care to see that no litter or scattering of waste material occurs by providing a suitable covering. The VILLAGE agrees and covenants with the CONTRACTOR that during the lifetime of this Contract the VILLAGE will not require by ordinance or otherwise that the CONTRACTOR use any equipment not comparable with the present equipment in the performance of this Contract. 2. Recyclables Collection a. Definition: Recyclables are defined within Exhibit C, attached hereto. The list may be modified by mutual consent of the VILLAGE and CONTRACTOR. The Customer shall sort Recyclables and place them into a separate container for pick -up by the CONTRACTOR. White Goods shall be collected in accordance to the cost as set forth within Exhibit B. Recycling collection shall also include the collection of White Goods such as refrigerators, washers, dryers, water heaters and those items defined by Illinois Administrative Code Title 35 Section 875.101. Residents will not be responsible for the removal of refrigerants or mercury switches prior to collection. b. Frequency of Collection: Collection shall be once per week. The collection shall be on the same day as municipal waste collection. C. Service Level: Unlimited collection of the materials defined herein as part of monthly rate. Large boxes should be cut down to a nominal dimension of 2 feet x 2 feet and placed adjacent to the recycling ca rt. d. Containers - 65- gallon carts: The CONTRACTOR shall at its own expense, provide each Unit covered under this Contract with a 65- gallon commercial grade cart for the purpose of recycling collection. The carts will remain the property of the CONTRACTOR. The CONTRACTOR will be responsible for the distribution of and the maintenance of the carts in the event that the carts are damaged from normal usage. The CONTRACTOR shall be responsible for repair or replacement of the carts as a result of normal usage and wear and tear. The CONTRACTOR will not be responsible for the cleanliness and /or odors resulting from the cart usage by the residents. Each Unit may change out the 65- gallon cart for a 35- gallon or 95- gallon cart one -time at no charge from May 1 through May 31, for each year of the Contract. The CONTRACTOR may charge a fee for replacing the cart with a different size if the option is not exercised between May 1 through May 31 each year. Residents may rent additional carts, either 65- gallon or 95- gallon through the CONTRACTOR for a charge of $2.50 per month. e. Separate Vehicle Pick -up Required: Recyclable material shall not be co- mingled with municipal waste. A separate recycling pick -up shall be required with a separate vehicle. f. Disposal: All recydables shall be collected, separated and otherwise treated so as to facilitate the sale of said materials to end -use markets or recycled material brokers. No materials collected as recyclable may be deposited in a landfill or waste incinerator, but shall be recycled regardless of the income received or the cost to the CONTRACTOR resulting from the sale of said materials. 14 g. Revenues: CONTRACTOR shall share all revenues from the sale of Recyclables with the VILLAGE in accordance with the following structure: • Industry standard, OBM Yellow Sheet Price for #8 Newspaper, less a processing cost of $60.00 per ton, shared equally between the VILLAGE and CONTRACTOR. This figure shall represent the " net rebate ". • The VILLAGE shall receive the net rebate, plus an additional $2.50 per ton of Recyclables collected. • Floor payout of $7.00 /ton. h. Recycling Incentives: CONTRACTOR agrees to provide recycling incentives through Recyclebank© at the request of the VILLAGE. The costs of the Recycling Incentive are added to CONTRACTOR'S Compensation set forth within Exhibit B, Final Cost Proposal. 3. Landscape Waste Collection a. Definition of Landscape Waste: Landscape Waste is defined as all accumulations of grass or a combination of grass shrubbery cuttings, twigs, leaves, branches, and other material accumulated as the result of routine care of maintenance of lawns, landscaping and gardens and as otherwise described at 415 ILCS 5/3.270. This definition does not include whole trees, stumps, sod, dirt, rock, and other comparable landscape materials. b. Frequency of Collection: Effective May 1, 2012, landscape waste will be collected one day each week from April 1st through December 151h C. Service Levels: Weekly collection of the Landscape Waste shall be collected from April 1 through December 151n at a rate as set forth within Exhibit B. d. Containers /Preparation: Landscape waste materials must be placed in a biodegradable paper "Kraft" type bags, up to thirty -three (33) gallons in capacity. Shrubbery cuttings, tree branches or twigs must be placed in a landscape paper bag or in a securely tied bundle. Ties must be made of string or twine. Branch bundles must not exceed 4 feet in length. Bags containing landscape waste and /or branch bundles cannot exceed 50 pounds in weight. e. Separate Vehicle Pick -up Required: Landscape waste shall not be co- mingled with any other municipal waste. A separate landscape waste pick -up shall be required with a separate vehicle. f. Disposal: All landscape waste shall be disposed of at a lawfully operated landscape waste composting facility. Said facility may treat, compost, grind, or land apply said landscape waste. No landscape waste may be disposed of at a landfill or solid waste incinerator unless otherwise authorized by the Illinois Environmental Protection Act (415 ILCS S/1). D. REVENUE COLLECTION 1. Compensation. The Contractor shall charge for refuse, recycling and yard waste collection services as stated in CONTRACTOR'S proposal set forth in Exhibit B, Cost Proposal. In addition, CONTRACTOR shall add to its charges the applicable SWANCC fee, as adopted by the VILLAGE that will be collected 15 by the CONTRACTOR and paid to the VILLAGE. The CONTRACTOR'S compensation shall be effective on May 1, 2012 and will be effective through April 3011', 2017. Compensation for the extension term shall be established based upon mutual agreement of VILLAGE and CONTRACTOR. The CONTRACTOR shall perform on a quarterly basis, the billing and collection of all rates and charges established by the VILLAGE relating to services required by this Contract. The VILLAGE agrees to cooperate and assist the CONTRACTOR in the collection of funds owed for services performed. The VILLAGE further agrees to cooperate with respect to information, if any, relating to move -ins, move - outs or any other information that will assist the CONTRACTOR in the execution of this Contract. 2. Payment of SWANCC Fees. The CONTRACTOR shall, on a monthly basis, pay to the VILLAGE an amount equal to the monthly SWANCC fees it has collected as a result of its last monthly invoices. 3. Adiustment. CONTRACTOR and the VILLAGE agree to negotiate increases in the compensation rates set forth herein in the event new governmental fees or taxes relating to CONTRACTOR'S services are implemented or existing governmental fees or taxes relating to CONTRACTOR'S services are increased. EXECUTION This Contract entered into on the date first written above. VILLAGE of Buffalo Grove: F-mmok- iman, Village President Village Clerk 16 CONTRACTOR: Waste Management of of Illinois, Inc. By it Mike Brink— Municipal Marketing Manager Attest: EXHIBIT A - WASTE MANAGEMENT RESPONSE TO THE REQUEST FOR PROPOSAL 17 EXHIBIT B - FINAL COST PROPOSAL W EXHIBIT C - RECYCLING PROGRAM The list of items below represents the current materials currently being accepted. This list may expand or Contract due to market conditions upon the mutual consent of the VILLAGE and CONTRACTOR. LIST OF RECYCABLES UBC TIN STEEL CANS ALUMINUM FOIL GLASS CONTAINERS ASEPTIC PACKAGING # 1 PET SODA, WATER, FLAVORED BEVERAGE BOTTLES #2 HDPE - NATURAL CONTAINERS #2 HDPE- PIGMENTED CONTAINERS # 3 PVC —VEGETABLE OIL BOTTLES, WINDOW CLEANERS ETC. # 5 LDPE — FOOD GRADE BOTTLES # 7 PP — YOGURT CUPS, SYRUP BOTTLES, OTHER FOOD CONTAINERS PET CONTAINERS ASEPTIC & GABLE TOP CARTONS RESIDENTIAL PAPER FIBER NEWSPAPER (70 TO 90% BY WEIGHT) NEWSPAPER INSERTS MIXED PAPER (10 TO 30% BY WEIGHT) CARDBOARD (NO WAX) CARRIER STOCK (SODA & BEER CASES) CATALOGS & TELEPHONE BOOKS CHIPBOARD (CEREAL, CAKE, & FOOD MIX BOXES) JUNK MAIL KRAFT PAPER MAGAZINES OFFICE PAPER * Denotes that item has a very limited market and may not be recyclable. 19