Page 1

REQUEST FOR PROPOSALS

FOR

THE CITY OF ANN ARBOR

COMPOSTING FACILITY OPERATIONS

RFP NUMBER 730

DATE: APRIL 7, 2009

DUE DATE: May 4, 2009

City Of Ann Arbor, Michigan

Systems Planning Unit

100 N. Fifth Ave.

P.O. Box 8647

Ann Arbor, MI 48107-8647

City of Ann Arbor

Composting RFP # 730

Page 2

TABLE OF CONTENTS

Section

Page

SECTION I: INTRODUCTION/OVERVIEW.............................................................................. 4 

1.1   Purpose/Objective ........................................................................................................ 4 

1.2 

Services Requested by City ............................................................................................ 4 

1.3 

Proposal Options ............................................................................................................. 5 

1.4 

Project Timetable ............................................................................................................ 7 

1.5 

Pre-Proposal Meeting/Site Inspection ............................................................................ 7 

1.6 

Required Proposer Information ....................................................................................... 7 

1.7 

Proposal Security and Letter of Credit ............................................................................ 8 

1.8 

Selection Criteria ............................................................................................................ 8 

1.9 

Exclusionary Criteria and Proposal Elimination ............................................................. 9 

1.10  Evaluation Criteria and Contractor Selection ................................................................. 9 

1.11  Experience/Strength of Operations Criteria and Contractor Selection ........................... 9 

1.12  Technical Criteria and Contractor Selection ................................................................. 10 

1.13  Financial Criteria and Contractor Selection .................................................................. 10 

1.14  Surety Bond .................................................................................................................. 11 

1.15  Interviews/Oral Presentation ......................................................................................... 11 

1.16  Clarification and Recommendation .............................................................................. 11 

1.17  Rejection of Proposals .................................................................................................. 12 

1.18  Independent Price Determination ................................................................................. 12 

1.19  Competition Intended .................................................................................................... 12 

1.20  Process for Entering into Agreement ............................................................................ 12 

1.21  Changes and Addenda to RFP Documents .................................................................. 12 

1.22  Cost Liability ................................................................................................................ 13 

1.23  Inquiries ........................................................................................................................ 13 

SECTION II: TECHNICAL SPECS ........................................................................................... 14 

2.1 

Background ................................................................................................................... 14 

2.2  

Scope of Services/Specifications .................................................................................. 19 

2.3  

Contract Term ............................................................................................................... 20 

2.4  

Material Delivery .......................................................................................................... 25 

2.6 

Processing Personnel .................................................................................................... 29 

2.7 

Compost Facility Operational Services ........................................................................ 29 

2.8 

Compost and Soil Product Marketing ........................................................................... 30 

2.9 

Acceptable Technologies .............................................................................................. 30 

2.10  Acceptable End Markets ............................................................................................... 30 

2.11  Information Technology ............................................................................................... 31 

2.12  Carbon Asset Management ........................................................................................... 31 

2.13  Reporting and Invoicing ............................................................................................... 31 

2.14  Changes to Facility ....................................................................................................... 33 

2.15  Contract Administration................................................................................................ 34 

2.16   Contract Incentives, Disputes and Liquidated Damages .............................................. 34 

2.17   Educational Facility and Tours ..................................................................................... 35 

SECTION III: SUBMITTALS AND REQUIREMENTS ........................................................... 36 

City of Ann Arbor

Composting RFP # 730

Page 3

3.1  

Proposal Summary ........................................................................................................ 36 

3.2 

Content and Form Proposals ......................................................................................... 36 

3.3 

Submission Requirements and Forms ........................................................................... 36 

3.4 

Cost Proposals ............................................................................................................... 41 

ATTACHMENT A Forms ............................................................................................................ 42 

ATTACHMENT B Service Agreement........................................................................................ 65 

ATTACHMENT C Technical Background .................................................................................. 95 

City of Ann Arbor

Composting RFP # 730

Page 4

SECTION I: INTRODUCTION/OVERVIEW

1.1 Purpose/Objective

The City of Ann Arbor is issuing this Request For Proposals for services to operate its

composting facility located at 4170 Platt Road, W.R. Wheeler Service Center Compost

Facility, and to market the resulting compost as a product to prospective buyers.

The City has a number of goals that will result from this RFP:

1. Accept and completely decompose yard debris generated by residents of and

municipal operations within the City of Ann Arbor (e.g. leaves, tree prunings,

grass, vegetative waste and pre-consumer food /food prep waste).

2. Accept and completely decompose yard debris generated by commercial and

private collection services in the region.

3. Maximize the value of the recovered organic materials in the waste stream.

4. Reduce the quantity of methane emitted to the atmosphere as a result of

organics decomposing within a landfill.

5. Provide an additional means of recovering material from the City of Ann

Arbor waste stream as part of the overall goal of achieving a 60% diversion

rate.

6. Secure the highest quality operating quality, low-odor and responsiveness to

marketplace conditions for the production of compost, wood chips, and soil

products.

7. Enable the City of Ann Arbor Compost Facility to be utilized to its fullest

capacity by selectively accepting, processing, and marketing incoming

quantities of merchant organic materials.

8. Create a dynamic and robust marketing and sales program for the all finished

compost.

1.2 Services Requested by City

The services being requested in this RFP are:

1. YARD DEBRIS COMPOSTING: The acceptance, weighing, size reduction,

mixing, windrowing, turning, curing, screening, and sale of residential and

small commercially generated yard debris.

2. SOURCE SEPARATED ORGANICS:

The acceptance, weighing, size

reduction, mixing, windrowing, turning, curing, screening, and sale of

university and small commercially generated source separated organics

(food) waste debris.

3. MARKETING AND SALES OF FINISHED COMPOST AND WOOD

MULCH: The preparation and execution of a marketing plan for the annual

City of Ann Arbor

Composting RFP # 730

Page 5

sale of all composted and size reduced incoming material to the City of

Ann Arbor Composting Facility. This effort could include but is not

limited to bagging, blending, and moisture conditioning for maximum

market value.

1.3 Proposal Options

One Contractor will be selected for the Composting Operations and Marketing/Sales

Services. The existing facility consisting of approximately 17 acres of pad, 9 acres of

staging and storage area, and a compost equipment storage building with a site

managers office. The MRF scale will be made available to the selected Contractor as

part of its normal operations. Additional land totaling approximately useable 8 acres, of

which 3.5 acres are currently utilized for compost windrows, is available to the selected

Contractor for active composting, wood waste processing, soil blending, bagging and

mulch distribution and sales.

The City of Ann Arbor has been developing and upgrading its composting equipment in

the many years that it has been composting the site. The City has appropriate and

specialized equipment designed specifically for composting including a windrow turner,

tub grinder, and screener. Together these items which form the core of the current

composting operation will be made available to the successful Contractor.

Table 1: Composting Facility Equipment(currently used)

Equipment Function

Capacity/

Throughput/ Size

Model/Type/

Acquisition Date

Tub Grinder Woody material

size reduction,

material blending

100 cy/hr

12’ w x 30’ l” (45’ with

conveyor extended) x

13’4” h

Morbark 1200XL,

2003

Windrow

Turner

Blend materials,

mix in water,

aerate, size

reduce

60 cy/min and 20 lf/min

31’ w x 14’ l x 13’3” h

Scarab 18HYD

525D5, 2004

City of Ann Arbor

Composting RFP # 730

Page 6

Table 1: Equipment List (con)

Equipment Function

Capacity/

Throughput/ Size

Model/Type/

Acquisition Date

Front End

Loader (2)

Material

movement, load

trucks, and

routine site

grading

Interchangeable “Tink”

2.5, 3.5 and 5.5 cy

buckets

John Deere 624J,

2005 & 2007

Dump Truck

(2)

Material

movement

8-12 cy with sides up

Ford F8000, 1995 &

LT8513, 1997

Flat Bed

Material

movement

22 cy with extended

sides

Ford F8000,

between 1991 &

1997

Light Duty

Truck (2)

Personnel

Transport

F-250 4X4 Crew

Cab, 2008, GMC

1500, 2006

Snow Plow Plowing Snow

Western 7.5 Pro Poly

Ultra, 2007

Compost

Screener

Compost

Screening

Star Screen

Erin 300 Compost

Screen, 1999

Air

Compressor

Operation of Air

Tools, Tire

Inflation

Sullair 185DPQJD,

Air Compressor, 2006

Watering

Truck

Add water during

windrow turning

1,000 gallons, use

5,000 gallons per

windrow

Briggs & Stratton

engine-powered pump

Mack MR688, 2000

The selected Contractor, at its sole option, may choose to utilize such equipment as it

already owns and feels may improve the efficiency and cost effectiveness of the

composting operation.

Should the Proposer choose to use City owned equipment, a purchase price for each

piece of equipment shall be included in the cost proposal. Alternatively, the Proposer

may present lease terms for each of the pieces of equipment that are required for use at

the City Composting Operation. The City retains the right to accept or reject proposals

for equipment purchase or lease on a case-by-case basis.

The City is considering plans to develop 53.8 acres (The Hilton Property) to the east of

City of Ann Arbor

Composting RFP # 730

Page 7

the current composting facility. There has been discussion about the creation of a

Residential Waste, Recycling and Organics Drop-off and Sales Service Center. This

Center would incorporate retail sales opportunities for the selected Composting

Contractor to sell bulk, bagged, and blended soil products, compost and wood mulch.

Any development of the Drop-Off Station is contingent on the financing of the proposed

plan.

1.4 Project Timetable

RFP Issued

Tuesday, April 7, 2009

Pre-Proposal Meeting/Site Inspection

Monday, April 13, 2009 @ 3:00 pm EDT

Deadline for Written Comments

Monday, April 20, 2009

Proposal Due Date

Monday, May 4, 2009 @ 2:00 pm EDT

Contractor Selection

May – July 2009

Council Consideration/Approval

Aug – Sep 2009

Project Start Date

By January 1, 2010

1.5 Pre-Proposal Meeting/Site Inspection

There will be a pre-proposal meeting/site inspection. This inspection will provide

prospective Proposers with an opportunity to observe current operations, survey the

available facilities, and inspect the available equipment. City Staff and Technical

Consultants will be available at the pre-proposal inspection to answer questions.

The pre-proposal meeting/site inspection will be held on Monday, April 13, 2009 at

3:00 p.m., at the Ann Arbor MRF 2nd Floor Education Center at 4120 Platt

Road, located at the WR Wheeler Service Center, Ann Arbor, Michigan.

Attendance at this conference is optional, but highly recommended. Administrative and

technical questions regarding this project will be answered at this time. If any questions

arise whose answers constitute modifications to this bid document, an addendum will be

issued.

1.6 Required Proposer Information

Form A-1: Statement of Organization

Form A-2: Proposer’s Qualifications

Form A-3: Key Staff Members

Form A-4: Incoming Material Quantities and Handling Protocols

Form A-5: Processing/Marketing Services Proposal – Work Summary

Form A-6: Land Stewardship, Agriculture, and Eco-System Services

Form A-7: Exceptions to Agreement

Form A-8: Financial Qualifications (sealed separately)

Form A-9: Safety Compliance and History Form

City of Ann Arbor

Composting RFP # 730

Page 8

Form A-10: Litigation History

Form A-11: Certificate of Recycled Paper Content

Form A-12: Compost Equipment Lease and Own Costs

Form A-13: Composting Processing Services Cost and Revenue Share

Form A-14: Cost Proposal Signature Page

1.7 Proposal Security and Letter of Credit

Each Proposer is required to furnish a Bid bond or cashier's check in the amount of

$10,000 to ensure that if the proposer is selected, it will enter into a performance

contract.

The Selected Contractor shall provide the City with a $250,000 Letter of Credit drawn on

a financial institution within the City limits with the following requirements:

a.

The credit is irrevocable for the length of the Contract.

b.

The credit is non-transferable.

c.

The beneficiary is the City of Ann Arbor, 100 N. Fifth Ave., Ann Arbor, MI

48107.

d.

The only document required for drawing on the letter of credit is a signed

affidavit from the City Administrator or the Contract Administrator stating

the amount of money required and stating there is a reasonable belief

that the Contractor owes the City or will owe the City the amount stated.

e.

Multiple draws must be permitted up until the full amount of the credit is

exhausted.

f.

The credit is to be governed by the Uniform Commercial code in the State

of Michigan.

g.

Presentation of the affidavit for a draw on the credit must be to a location

within the city limits and available during normal banking hours.

h.

Payments must be within 5 days of presentation of the affidavit.

1.8 Selection Criteria

Responses to this RFP will be evaluated using a point system, described in the following

sections of this RFP. The evaluation could include interviews of qualifying proposers.

During the interviews, the selected firms will be given the opportunity to discuss in detail

their proposal, qualifications, and past experience. The selection committee will be

comprised of City staff with support from its consultant Resource Recycling Systems.

Selection will be based on Proposer that best meets the City’s needs.

City of Ann Arbor

Composting RFP # 730

Page 9

1.9 Exclusionary Criteria and Proposal Elimination

Submitted proposals will be subjected to the following exclusionary criteria. Those

proposals failing to meet any or all of these criteria may be excluded from further

consideration.

• Submitted after deadline for proposals

• Did not provide all required information or required number of copies

• No signature on binding cover letter

• Ongoing and unresolved litigation with respect to composting operations at other

facility locations.

1.10 Evaluation Criteria and Contractor Selection

Proposals not excluded through this process will then receive a separate and more

comprehensive evaluation of their complete Technical and Cost Proposal.

The City has a strong interest in selecting the Proposer with the best quality and most

cost effective proposal.

Criteria described below will be ranked and incorporated into a Proposal Evaluation

process for the purposes of evaluating and scoring the proposals that are submitted.

Proposals will be evaluated based on the following criteria:

•

Experience and Strength of Operations

30%

•

Technical

30%

•

Cost

40%

1.11 Experience/Strength of Operations Criteria and Contractor Selection

The City will consider the experience and strength of operations aspects of the

Proposer’s proposed services. The experience and strength of operations of each

Proposer will be evaluated in terms of demonstrated performance to determine the

relative ability of each Proposer to implement the program elements described in this

RFP and to attain the City objectives for organics diversion. The City is seeking to

identify Proposers with demonstrated commitment to high performance and quality

management. All proposals will be evaluated by criteria that will include but are not

limited to:

(1)

Completeness of proposal in addressing the RFP requirements;

(2)

Demonstrated strength and experience in composting and marketing yard debris

and source separated food waste;

(3)

Demonstrated experience providing services to municipalities;

(4)

Previous experience in successfully designing and implementing transition plans

from existing municipal operations as required for program change-over;

(5)

Proven track record in the operation of high quality composting operations that

demonstrate low odor operational capabilities and the ability to produce quality

City of Ann Arbor

Composting RFP # 730

Page 10

finished product;

(6)

Demonstrated familiarity with State of Michigan composting regulations;

(7)

Experience in the provision of land stewardship, agriculture, and eco-system

services practices and activities;

(8)

Management knowledge and methods to deliver on performance requirements;

(9)

Recommendations and references;

(10) Demonstrated ability to avoid operationally related lawsuits and state level

enforcement actions;

Each Proposer’s experience and strength of operations will be evaluated based on the

information provided in each proposal. The City requests that Proposers complete the

References form located under Attachment 1 - Technical Proposal Forms and Checklist.

1.12 Technical Criteria and Contractor Selection

The City will consider the technical aspects of the Proposer’s proposed services to

determine if the Proposers can meet the proposed performance specifications and

criteria on a long-term basis. All proposals will be evaluated by criteria that will include

but are not limited to:

a. Capabilities and structure of project management team, experience of facility

manager and key personnel, relationships between management team and

corporate management, and internal controls;

b. Written assessment of proposed plan of operation and its potential to meet the

City’s requirements;

c. Review of performance of services similar to those proposed by the Proposer;

d. Quality of proposed operations and maintenance plans for existing and/or

proposed facilities;

e. Proposer ability to meet implementation schedule and the soundness of the plan

for transition to operations as described in the proposal;

f. Ability and willingness to accommodate educational and public tours of the

processing facilities;

g. Commitment to developing a strong market for compost, wood mulch and other

soil products in Southeastern Michigan;

h. Commitment to equal employment opportunity; and

i. Commitment to employee and public safety.

1.13 Financial Criteria and Contractor Selection

In evaluating cost structures submitted by Proposers, the City will compile and analyze

the financial and performance inputs provided in each Cost Proposal. A financial

City of Ann Arbor

Composting RFP # 730

Page 11

analysis for each Cost Proposal will be completed covering the full term of service with

net present value evaluations. The City will consider the Proposer’s proposed direct costs

and proposed revenue sharing associated with providing the services requested along

with balance of system costs and external costs in determining which Proposer best

meet the financial needs of the City. All proposals will be evaluated by criteria that will

include but are not limited to:

a. Bondability and insurability;

b. Verification that the proposed costs are consistent with the activities described

in the proposal and the Proposer’s operations and maintenance plans;

c. Proposed revenue sharing arrangements and costs (if any);

d. Appropriateness of the basis for unit cost escalation if any;

e. Access to relevant corporate financial records and/or audited financial

statements, and

f. Financial sensitivity to changes in service.

1.14 Bid Bond

Each Proposer is required to furnish a bid bond or cashier's check in the amount of

$10,000 to ensure that if the proposer is selected, it will enter into a performance

contract. A proposal, once submitted, becomes the property of the City. In the sole

discretion of the City, the City reserves the right to allow a bidder to reclaim submitted

documents provided the documents are requested and retrieved no later than 48 hours

prior to the scheduled bid opening.

1.15 Performance Bond

The Selected Contractor shall provide a performance bond equal to $200,000 as

Attachment B, Service Agreement Between Contractor and City of Ann Arbor. This

bond shall be provided by in compliance with Act No. 213 of the Michigan Public Acts

of 1963, as amended, being MCL 129.201 et seq. Further, the bond shall be approved

as to form by the City Attorney.

1.16 Interviews/Oral Presentation

One or more oral presentations to the City may be required prior to award of this

contract. Proposers will be notified in writing if oral presentations are to be scheduled.

1.17 Clarification and Recommendation

The City reserves the right to ask for additional information and clarification from or

about any or all of the Proposers.

The City's selection committee will submit its findings to City Council, who will make the

award for the City.

City of Ann Arbor

Composting RFP # 730

Page 12

1.18 Rejection of Proposals

The City reserves the right to reject any and all proposals and to waive any defect which

does not materially alter the specifications or the services to be provided. The City does

not intend to necessarily award a contract solely on the basis of any response made to

this request or on the basis of the evaluation and ranking of proposals submitted

pursuant to this request.

1.19 Independent Price Determination

By submission of a proposal, the Proposer is required to certify and in the case of a joint

proposal, each party is required to certify as to its own organization, that in connection

with this proposal:

1.

The costs in the proposal have been arrived at independently, without

consultation, communication, or agreement, for the purpose of restricting competition as

to any matter relating to such costs with any Proposer or with any competitor; and

2.

Unless otherwise required by law, the costs, which have been quoted in the

proposal, have not been knowingly disclosed by the Proposer and will not knowingly be

disclosed by the Proposer prior to award directly or indirectly to any other Proposer or to

any competitor.

1.20 Competition Intended

The Contractor shall utilize best efforts to recruit and maximize the participation of all

qualified segments of the business community in subcontracting work, including the

utilization of small business enterprises.

1.21 Process for Entering into Agreement

The scope, terms and conditions of the Agreement between the Proposer and the City

shall be in substantial conformance with the terms, conditions and specifications

described in this RFP and with the proposal that is submitted by the Proposer whose

proposal is found to be the "Most Advantageous" to the City.

The Proposer should be prepared to begin contract negotiations upon notification of the

Intent to Award. If the Proposer is not able to begin contract negotiations, the City may

disqualify that Proposer.

The City reserves the right to negotiate the Agreement to include any portion or portions

of the services covered by this RFP. The City reserves the right to reject any and all

proposals in total or by components.

1.22 Changes and Addenda to RFP Documents

Each change or addenda issued in relation to this document will be on file in the office

of Resource Recycling Systems Inc.. In addition, to the extent possible, copies will be

distributed to each person registered as having received a set of RFP documents.

It shall be the Proposer’s responsibility to make the inquiry as to changes and addenda

issued. All such changes or addenda shall become part of the contract and all Proposers

shall be bound by such changes or addenda.

City of Ann Arbor

Composting RFP # 730

Page 13

Information on all changes or addenda will be available at the office of Resource

Recycling Systems Inc. no less than five (5) working days prior to scheduled proposal

opening date.

Total bid inquiry or specific item cancellations may be issued later than the time

specified above.

1.23 Cost Liability

The City of Ann Arbor assumes no responsibility or liability for costs incurred by the

proposer prior to the execution of a Services Agreement. Total liability of the City is

limited to the terms and conditions outlined in the Services Agreement, included as

Attachment B of this RFP.

1.24 Inquiries

This RFP is issued by City of Ann Arbor Systems Planning Unit. All correspondence

regarding this RFP shall be addressed to:

Tom McMurtrie

Systems Planning, City of Ann Arbor

100 N. Fifth Ave.

P.O. Box 8647

Ann Arbor, MI 48107-8647

Phone: (734) 794-6430 x43707

Email: TMcMurtrie@a2gov.org

Fax: 734-996-3064

And copied to Resource Recycling Systems:

JD Lindeberg, PE, Principal and CFO

Resource Recycling Systems

416 Longshore Dr.

Ann Arbor, MI 48105

Phone: 734-996-1361 x241

Email: jdl@recycle.com

Fax: 734-996-5595

City of Ann Arbor

Composting RFP # 730

Page 14

SECTION II: TECHNICAL SPECS

2.1 Background

A. Michigan Yard Waste Ban

In October 1990, the State of Michigan enacted a bill that prohibits dumping of yard

clippings (defined as leaves, grass, and brush) in Michigan landfills. The bill

specified that all yard waste generated on government property would be prohibited

in Michigan landfills starting two years after the effective date of the legislation; all

yard waste would be prohibited from Michigan landfills starting four years after the

effective date of the legislation. The government yard waste ban came into effect

on March 28, 1993, and the complete yard waste ban came into effect on March 28,

1995.

In response, many municipalities in Michigan constructed composting facilities or

contracted for composting services. The City of Ann Arbor has been composting yard

waste since 1989, long before the adopted ban. This legislation assures that there

will be a continued need for composting operations throughout the state.

B. Need for composting facility in the City of Ann Arbor

The City provides its citizens with a final disposal option for the yard waste

generated within its borders. In addition, the City generates considerable organic

debris from its own parks and tree lawns that require management within the

context of the State of Michigan yard waste landfill ban.

The City is responsible for the management and oversight of all compostables

generated within the City of Ann Arbor. In this regard, the City serves a population

of approximately 114,740 in an area of about 28 square miles.

There are approximately 22,432 occupied single family homes in the City of Ann

Arbor, and about 26,769 multi-family homes.

Provision of composting services to the commercial sector is also an important

service. Because Michigan has banned yard debris from landfills, landscapers and

lawn maintenance services need a place to dispose of yard debris and to acquire soil

products like compost. The willingness and ability of The City of Ann Arbor to

provide services to the commercial sector fills an important business and waste

management niche in the Washtenaw County area.

There is a shortage of yard waste composting capacity throughout southeastern

Michigan. Numerous municipalities and hauling companies have approached the City

to inquire about the availability of capacity for yard debris for which they are

responsible. This material has been offered to the City for a tipfee that in some

City of Ann Arbor

Composting RFP # 730

Page 15

cases creates a good opportunity for the City facility to offset some of its own

operating costs associated with material generated within the City.

C. Property Use

The City of Ann Arbor purchased the WR Wheeler Service Center site in the late

1950’s for the purpose of creating a dump. In time it was redesigned to act as a

sanitary landfill and only in the late 1990’s was it finally decided that an expansion

was infeasible. Ultimately the landfill facility was closed for the disposal of municipal

solid waste in 1992.

Since that time the site has been used by various solid waste management and

recovery activities including material recovery, transfer, and composting. The site

continues to be a focus of Ann Arbor’s and to some extent the region’s solid waste

activities as an ongoing capital investment program involves the reconstruction of

the existing Material Recovery Facility (MRF), relocation of the Transfer Station, and

the expansion of the composting facility.

For nearly 20 years the City of Ann Arbor has owned and operated a compost facility

at the site of its closed Type II Landfill. The compost facility is part of a larger

materials recovery complex at the landfill site, now called the WR Wheeler Service

Center. WR Wheeler also includes the City’s Material Recovery Facility and Solid

Waste Transfer Station. The compost site has evolved and grown over the years,

including major windrow pad expansions in 1993 and 2006 and various equipment

upgrades.

In 2006, a series of operational relocations and expansions were undertaken at the

WR Wheeler Service Center, including activities at the compost site, such as a pad

expansion to increase capacity to 25,000 tons/year (115,000 CY).

A general site map showing planned changes is included in Attachment C, Exhibit A.

This facility shall set forth provisions for the protection of soil, air, ground, and

surface waters, both on- and off-site.

D. Compost Site Overview

The City of Ann Arbor Composting Facility is ideally situated, with natural buffers on

all sides including farm fields, roads, a railroad right of way, and wooded drain area.

The composting area is situated toward the center of a closed landfill site that has

more than 400 total acres of space. The compost windrows are located more than

500 feet away from the nearest residential neighbors. The Compost Facility is part

of the WR Wheeler Service Center that hosts a number of other functions for the

City. The functions of the 412-acre WR Wheeler Center include:

City of Ann Arbor

Composting RFP # 730

Page 16

• Ann Arbor Composting Facility – Three active composting areas occupy 3.5,

9, and 17 acres in area respectively. The new 17-acre compost pad on the

property south of the existing 9-acre composting site was constructed in 2006

and is primarily used for active windrow composting. The 9-acre site contains a

stormwater pond, tub grinding, and raw material mixing operations as well as

windrows of decomposing yard debris. The 3.5-acre site has been primarily used

for active windrow composting in the past, and was to be phased out to clear the

pad for the proposed new Drop-Off Station. However, new plans for locating the

Drop-Off Station closer to Platt Road leave the centrally located 3.5 acre pad

available for some composting and soil blending activities. However, because of

the central nature of the particular area, all activities proposed for this area will

have to be specifically approved in writing by the City or its representatives.

• Ann Arbor MRF – The City of Ann Arbor Material Recovery Facility (MRF)

occupies a total site footprint of 3.25 acres including a pre-engineered metal

building of 32,000 square feet (sf). The site is accessible by an asphalt road with

concrete loading and unloading areas surrounding the building.

• A truck scale and gate house that services the MRF, Transfer Station, and

compost site is located along the south side of the MRF building.

• Recycle Ann Arbor (RAA) Drop-Off Station (DOS) – The DOS is a full-

service drop-off recycling station serving the Ann Arbor and Washtenaw County

area, open to the general public and small businesses. The DOS is located at the

northwest corner of the site, but accessed off of Ellsworth Road. The DOS

currently sells bulk compost and wood mulch produced at the City’s Compost

Center. Refer to Attachment C, Exhibit E for the current contract between the

DOS operator, RAA and the City. This facility is slated to be moved within the

next five years to a more permanent facility accessed further south along Platt

Road, but adjacent to the proposed WR Wheeler Compost Facility Phase B

expansion. The development of the new Drop-Off Station is contingent on the

financing of the proposed plan.

• Ann Arbor Maintenance Facility – Addition of three buildings totaling

190,000 sf for vehicle maintenance was completed in 2007. The City’s existing

equipment yard services were relocated to this facility, which is located to the

west of the composting facility and is accessed off of Ellsworth Road and can be

accessed internally by the composting operations.

• Ann Arbor TS – The new Transfer Station (TS) was recently constructed to the

south of MRF and operated as a Type A Solid Waste Transfer Facility The TS

building (8,000 sf plus load-out bay) displaced some composting operations

resulting in relocation of those activities beginning in 2007 to the new 17-acre

pad.

City of Ann Arbor

Composting RFP # 730

Page 17

• Ann Arbor Compost Equipment Storage Building – To provide compost

equipment and operator support, a new equipment storage building was be

constructed south of the Transfer Station site, south of the paved access road.

The 3,600 sf building is used for maintenance of the compost screener and

compost windrow turner and an office for the site manager. This building was

was in operation as of late 2006. This facility will be made available to the

successful Contractor for use in managing the composting operation, performing

maintenance to equipment, storing tools and other materials essential to the

operation of the composting facility, and for use as an office.

Table 2: Site Description

ACTIVITY AREA

NET LOT

AREA

(ACRES)

SITE DESCRIPTION

A

OPERATIONS AND

MAINTENANCE FACILITY

(PHASE A)

46.3

CITY MAINTENANCE FACILITY

B

WASTE TRANSFER AND

MATERIAL RECOVERY

(PHASE B)

19.8

MRF, TRANSFER STATION , COMPOST

EQUIPMENT STORAGE BUILDING AND

OFFICE, PASSIVE RECREATION: POND,

GRAVEL PIT

B

COMPOSTING (PHASE

B), NORTH OF RR

12.4

COMPOST PAD, WINDROWS, YARD

WASTE DROP-OFF, GRINDER AREA,

FINISHED COMPOST, PASSIVE

RECREATION

B

COMPOSTING, (PHASE

B), SOUTH OF RR

17.3

COMPOST PAD, WINDROWS,

DETENTION BASIN, DRAIN, PASSIVE

RECREATION

C

COMPOSTING, (PHASE

C)

34.5

AGRICULTURE, PROPOSED ORGANICS

PROCESSING

D

WASTE TRANSFER AND

MATERIAL RECOVERY

(PHASE D)

19.3

PROPOSED DROP-OFF STATION

E. Design Features

New/expanded composting operations are carried out on an engineered surface

constructed of compacted aggregate (12 inches of slag, overlaying a compacted

base of engineered fill). This type of construction makes rainfall runoff and compost

material management efficient throughout the year and ensures that the entire

facility is accessible in all weather conditions. All-weather access provided by an

engineered surface facilitates turning and promotes the quick drainage of runoff

waters from beneath the windrows. Drainage structures have also been designed to

convey water away from the windrows and direct it off-site in a manner consistent

with surface water quality regulations.

City of Ann Arbor

Composting RFP # 730

Page 18

Stormwater runoff and leachate management is designed to minimize impact on

surrounding water resources as well as to maximize the efficiency of the site layout.

These designs were reviewed with both Pittsfield Township and Washtenaw County

technical experts to ensure compliance with local surface water quality requirements.

In the areas planned for compost windrow placement, surfaces are sloped at 1-2%

to facilitate runoff between windrows. Site operators regularly re-grade the pad

surface to manage the water runoff that can so often lead to facility odor problems.

F. Compost Site Expansion Description

The City of Ann Arbor increased its composting capabilities by creating a new 17-

acre compost pad on the property south of the existing 9-acre composting site. In

addition, the current grinding operation moved to the southern end of the current

operational pad area north of the railroad right of way. Together, these two

changes have enabled the City Composting Facility to expand its operations for the

expansion designated as Phase B. A drawing of the current site and its surroundings

is included in Attachment C, Exhibit A.

G. Operational Standards

The City has an excellent operating record at its composting facility. It is routinely

cited as an example of an excellent facility and numerous other compost site

operators visit it as an example of “best composting practices”. The compost

produced has been shown through both laboratory tests and application to be an

excellent product that can be used for a wide variety of applications (MDOT, home

gardens, and City of Ann Arbor Parks). The City will continue to implement

extensive measures to ensure that the quality of operations and final product meet

or exceed State and National standards for composting.

The successful applicant of this RFP will demonstrate a track record of “best

composting practices” and the implementation of extensive measures that ensure

the quality of operations and final product have met or exceeded State and National

standards for composting.

H. Permit Applications

As part of the site plan approval process with Pittsfield Township, the City submitted

permit applications for wetland impact to both Pittsfield Township and the MDEQ. In

addition, because the site lies adjacent to a County drain, the site plans were

submitted to the Washtenaw County Drain Commission. Together, all of these

applications were approved and the site was constructed in accordance with their

requirements. Since the disturbed area is greater than 5 acres, an NPDES Permit

through the MDEQ was also required and wetland mitigation was incorporated into

the City’s Maintenance Facility mitigation area south-west of the gravel pit to the

north.

City of Ann Arbor

Composting RFP # 730

Page 19

On March 26, 2008, PA 212 amendment to Part 115, Solid Waste Management, went

into effect. This legislation requires certain compost sites that meet the criteria to

be registered with the MDEQ and comply with new reporting, location and operating

requirements. The City of Ann Arbor Compost Facility is an MDEQ registered site.

See Attachment C, Exhibit B for the 2008 City of Ann Arbor Compost Facility

registration form and reporting requirements. The registration is good for 3 years,

but volumes and tonnage reporting to the MDEQ must occur on an annual basis.

I.

Community Relations

Compost site planning includes effective setbacks and buffers between all neighbors

and the site. It concentrates most heavily on limiting and mitigating the effect of

operations on the neighborhood to the south and west. These setbacks and buffers

were addressed primarily in the Planned Unit Development (PUD) application that

was submitted and approved with Pittsfield Township in 2004 for the entire WR

Wheeler Center activities.

Ann Arbor maintains a clear and simple presentation of the operating standards to

which the facility will adhere to assure that composting will be carried out with

attention to preventing odor and other nuisances. This document provides both

operators and observers of the facility with a clear protocol for managing difficulties

if they arise.

J.

Use of the Closed Landfill

At no time will any area associated with the closed landfill, its cap, or previous fill

area be used for any composting activity. Not only would this activity be in violation

of the City of Ann Arbor Post-Closure Plan, it would also create operational

difficulties for the composting facility.

2.2 Scope of Services/Specifications

A. General Provisions

The following general provisions cover all services to be provided by the Contractor.

B. Compliance with Laws and Regulations

The Contractor shall operate in accordance with the regulations set forth by the

MDEQ. Specifically, Act 451 of 1994, Part 115, Solid Waste Management, as well as

Act 212 of 2007 which amends that Act with regard to composting yard clippings.

In addition, the Contractor must keep records according to Section 11521(4)(d)(ii).

Sample forms are located in the Attachment C, Exhibit B.

City of Ann Arbor

Composting RFP # 730

Page 20

The Contractor will maintain the cleanout of the detention pond inlets and outlets in

accordance to the Stormwater Plan requirements. The Contractor will notify the City

if the ponds require non-routine maintenance/attention.

The Contractor shall be obligated to pay the City, as a penalty, Two Hundred and

Fifty dollars ($250) for each calendar day of occurrence for failure to maintain the

integrity of the wetland protection fence. The Contractor will be liable for all civil

and criminal fines levied against the City as a result of any violations.

The Contractor shall, at its sole cost and expense, obtain and maintain throughout

the term of the agreement all permits, licenses, and approvals necessary or required

for it or its employees and agents to perform work and services described (City or

Contractor to maintain MDEQ permits, pay fees).

C. Railroad Right of Ways

The City has obtained a lease agreement with the Ann Arbor Railroad for the two

crossings over the railroad right-of-way (ROW). The City will be responsible for

maintaining the lease and notifying the Ann Arbor Railroad when the Contractor takes

over Compost Facility operations.

The City will maintain the signage identifying the wetland areas near the Railroad ROW

crossings in accordance to the wetland permit. The Contractor will be responsible to not

disturb the wetland areas.

2.3 Contract Term

The term of this Agreement shall commence on the effective date of the Agreement.

The initial organics processing contract, should any be awarded, is anticipated to begin

on January 1, 2010. The proposed term of the Contract for Compost Facility Operation

Services is for five (5) years with options for two (2) one-year renewals, at the City’s

sole discretion.

The Proposer's response to this Request for Proposal (RFP) will be made a part of the

contract with the City. Terms and Conditions, substantially in the form contained herein,

shall be included in the Agreement between the City and the successful Proposer. In

this Section, "Proposer" is referred to as "Contractor."

Unless otherwise stated by the Proposer in the response to this RFP, the Proposer

agrees to the following Contract Terms and Conditions, which will become part of the

subsequently negotiated contract.

A. Subcontracting

None of the work or services covered by this Agreement shall be subcontracted,

except as set forth herein, without the prior written approval of the City of Ann

Arbor. Any work or services subcontracted hereunder shall be specified by written

contract or agreement and shall be subject to each provision of this Agreement.

City of Ann Arbor

Composting RFP # 730

Page 21

B. Assignment of Contract

The contractor shall not assign any interest in this Agreement, and shall not transfer

any interest in the same, whether by assignment or novation, without the prior

written consent of the City of Ann Arbor.

C. Evaluation, Reports, Information, and Audits

The Contractor agrees to participate fully in all evaluation activities initiated by the

City. The Contractor, at such times and in such form as the City of Ann Arbor may

require, shall furnish the City of Ann Arbor such reports as may be requested

pertaining to the work and services undertaken pursuant to this Agreement, the

costs and obligations incurred or to be incurred in connection therewith, and any

other matters covered by this Agreement. The Contractor shall retain all financial

and administration records for a period of three years after the expiration or

termination of this Agreement, and shall permit the City of Ann Arbor or any of its

representatives or auditors access to such records.

D. Confidentiality

The Contractor, its agents, and its employees, will keep and retain any and all

information and records generated under this Agreement in the strictest confidence

and will neither use such information or records nor disclose such information or

records to anyone without the explicit written permission of the City of Ann Arbor.

The Contractor warrants that it has and will continue to have safeguards in place to

assure that such information and records are kept confidential by the Contractor, its

agents, and its employees.

E. Proprietary Materials

The City of Ann Arbor acknowledges that in the course of performing

services, the Vendor may use products, materials, or propriety

methodologies. The City of Ann Arbor agrees that it shall have or obtain no

rights in such propriety products, materials, and methodologies except

pursuant to a separate written agreement executed by the parties.

The Vendor acknowledges that in the course of performing services for the

City of Ann Arbor, the materials and information produced for the City of Ann

Arbor are the exclusive properties of the City of Ann Arbor and may not be

disseminated in any manner without prior written approval of the City of Ann

Arbor.

F. Warranty

The Contractor warrants that the services to be provided by it hereunder will be

performed in a good, timely, and professional manner by qualified staff and in

accordance with generally accepted professional end-users.

City of Ann Arbor

Composting RFP # 730

Page 22

G. Independent Contractor

The Contractor shall perform all work and services described herein as an

independent contractor and not as an officer, agent, servant or employee of the City

of Ann Arbor. Contractor shall have exclusive control of and the exclusive right to

control the details of the services and work performed hereunder and all persons

performing the same and shall be solely responsible for the acts and omissions of its

officers, agents, employees, contractors and subcontractors, if any. Nothing herein

shall be construed as creating a partnership or joint venture between the City of Ann

Arbor and Contractor. No person performing any of the work or services described

hereunder shall be considered an officer, agent, servant or employee of the City of

Ann Arbor, nor shall any such person be entitled to any benefits available or granted

to employees of the City of Ann Arbor.

H. Certification as to Non-Debarment

The Contractor certifies that neither it nor its principals is presently debarred,

suspended, proposed for debarment, declared ineligible, or voluntarily excluded from

participation in the transaction covered by this Agreement. The Contractor

acknowledges and agrees that if it or its principals is/are presently debarred then it

shall promptly return to the City any funds received pursuant to this Agreement. In

such event, any materials received by the City pursuant to this agreement shall be

retained as liquidated damages.

I. Law to Govern

The Agreement is entered into and is to be performed in the State of Michigan, City

of Ann Arbor and Contractor agrees that the law of the State of Michigan shall

govern the rights, obligations, duties and liabilities of the parties to this Agreement

and shall govern the interpretation of this Agreement and jurisdiction for any claim

or lawsuit arising or resulting from this Agreement shall be Michigan courts and the

venue or place for such lawsuit shall be Washtenaw County, Michigan.

J. Forum Selection

The Contractor and its successors and assigns acknowledge and agree that all state

courts of record sitting in Washtenaw County, Michigan, shall be the exclusive forum

for the filing, initiation, and prosecution of any suit or proceeding arising from or out

of, or relating to, this Agreement, or any amendment or attachment thereto,

including any duty owed by the Contractor to the City in connection therewith.

K. Entirety

This Agreement and the Exhibits attached hereto contain the entire Agreement

between the parties as to the matters contained herein. Any oral representations or

modifications concerning this Agreement shall be of no force and effect.

City of Ann Arbor

Composting RFP # 730

Page 23

L. Scale Access Requirements

The Contractor will have access to the Material Recovery Facility scale which is

operated by City staff. It is open for use weekdays 7:00 am to 4:00 pm.

The scale operation has the following capabilities:

o Full and empty weights of incoming vehicles.

o Full and empty weights of outgoing vehicles.

o Provide paper weight tickets for each delivered load (if the scale is improperly

working or in need of maintenance, the Contractor will be responsible for material

weighing, including payment at an alternative location and will need to provide a

weight ticket).

o Have ability to enter required data into City owned web-based data management

tool (software upgrades may be required for Contractor to transfer data).

o Provide reports including data download that will assist the Contractor in meeting

the requirements outlined in Section 2.13.

o Have controlled access and security, such that theft of materials is effectively

prevented, employing use of security systems (alarms, cameras, etc.) as needed.

o Accommodate incoming material at a rate such that trucks delivering City

compostables are able to approach the site, enter, weigh in, unload all materials and

depart the site with a turn-around time of less than 30 minutes (inclusive of actual

time ejecting load).

The Contract will provide for liquidated damages should the Contractor fail to accept

City yard debris or source separated food waste materials at its Composting Facility

site at any time during the term of the Contract.

A site plan showing the entry road, scale area, composting related processing

stations, and other site features is provided as part of this RFP solicitation. Where

the Proposer believes that changes in the layout and location of various processing

stations could be changed in order to improve overall facility efficiency, these

changes may be proposed. Preference will be given to those Proposals that

minimize the capital cost requirements associated with site and other capital facility

changes.

M. Conflict of Interest

• No officer, employee, or agent of the City of Ann Arbor who exercises any

functions or responsibilities in connection with the planning and carrying out of

the program, nor any immediate family member, close business associate, or

organization which is about to employ any such person, shall have any personal

financial interest, direct or indirect, in the Contractor or in this Agreement and

the Contractor shall take appropriate steps to assure compliance.

• The Contractor agrees that it will not contract with any subcontractor in which it

City of Ann Arbor

Composting RFP # 730

Page 24

has any personal financial interest, direct or indirect. The Contractor further

covenants that in the performance of this Agreement no person having any

conflicting interest shall be employed.

• The Contractor agrees not to engage in activities on behalf of the City that

produce a direct or indirect financial gain for the Contractor other than the

agreed-upon compensation, without the City's informed, prior, written consent.

City of Ann Arbor

Composting RFP # 730

Page 25

2.4 Material Delivery

A. Source, Volume, and Type of Incoming Materials

Collection system:

City-collected material is delivered to the existing composting site in

one of two ways. Seasonal yard debris that is collected curbside is

delivered in side loading compactor vehicles. Fall leaf material is

collected primarily in rear loading packer trucks and dump trucks.

Sources of Incoming

Material:

•

City of Ann Arbor Residential Curbside Collection

•

City of Ann Arbor Commercial Collection

•

City of Ann Arbor Parks and landscaping

•

City of Ann Arbor Drop-Off Station

•

Private Waste Haulers

•

University of Michigan

•

Private landscapers/contractors

•

Adjacent communities and private haulers

•

Local restaurants and grocery stores

Table 3: Total Quantities (Tons/Year)

2003

2004

2005

2006

2007

Yard Debris

5,003

4,481

7,374*

8,968

16,095

Leaves

4,843** 5,206

4,843**

4,843**

4,481

Food

66

62

55

43

43

Christmas Trees

93

75

75

105

66

Other (non-scale)

1,250

1,250

1,250

1,250

1,250

Total 11,255 11,074 13,598

15,209

21,934

* Increase in Yard Debris tonnage due to Private Haulers

** Data not available, so estimated tonnage based on 2004 and 2007 average.

City of Ann Arbor

Composting RFP # 730

Page 26

At the time of this RFP, actual data on 2008 tonnage levels were not yet available,

therefore the numbers provided are based on estimates prepared by City Staff and RRS.

While City cannot guarantee tonnage levels, the City does guarantee to grant the

successful Proposer exclusive rights as the sole private service provider of compostables

processing.

WMI currently receives approximately 20,000 tons of yard waste per calendar year from

the Central Wayne Communities. In order to assist the City in its planning, and for such

purposes only, the following chart represents the anticipated delivery schedule:

Table 4: Monthly Delivery Schedule

Jan <1%

Less than 200 tons

Feb <1%

Less than 200 tons

Mar <1%

Less than 200 tons

Apr 9-11% 1,800-2,200 tons

May 15-16% 3,000-3,200 tons

Jun 13-16% 2,600-3,200 tons

Jul 8-15% 1,600-3,000 tons

Aug 10-11% 2,000-2,200 tons

Sep 7-10% 1,400-2,000 tons

Oct 7-10% 1,400-2,000 tons

Nov 20-30% 4,000-6,000 tons

Dec ~2%

Less than 400 tons

B. Processing and Delivery Schedule

All compostables collected by the City shall be delivered only to the compost

processing facility, located at 4170 Platt Rd, Ann Arbor, MI. This facility will be

available to receive compostables collected as part of this program and as part of

any approved merchant composting activity carried out by the selected Contractor

five (5) days per week July through March, and six (6) days a week April through

June.

The hours will be Monday – Friday 8:00 am – 4:00 pm. During the months of

April, May, and June, the facility should also be open Saturdays 8:00 am –

12:00 pm.

C.

Holidays

The delivery of City collected compostables to the Composting facility will be delayed

by one day on the following holidays if that major holiday falls on a week day: New

Year's Day, Martin Luther King Day, Presidents’ Day, Memorial Day, Fourth of July,

City of Ann Arbor

Composting RFP # 730

Page 27

Labor Day, Veterans’ Day, Thanksgiving Day, and Christmas Day. The City shall be

responsible for determining the alternate collection day and for publicizing any

changes in collection schedules due to observance of the above holidays and for

informing the Contractor of the change in schedule.

D. Storms and Other Disasters

In case of a storm or other disaster, the Contract Administrator or the designee may

inform the Contractor that additional volumes of yard debris material will be

delivered to the facility by regularly scheduled collections and/or special collectors

who are hired specifically to collected downed trees or other materials requiring

processing at the composting facility. soon as practicable after such storm or

disaster, the Contractor shall advise the Contract Administrator or the designee of

the estimated time that special deliveries will continue.

E. Delivery of Yard Debris and Other Organics to Designated Facility

The City will direct all of its collected compostables to the processing site. In

addition to all other remedies provided herein, the City will retain the right to

terminate their contractual arrangements with organics Processing contractors, on

fifteen (15) days written notice, if they fail to accept City collected yard debris or

source separated food waste organics as set forth above.

The City will pay the contractually specified tipfee to the Processing Contractor for

compostables delivered to the Designated Facility as part of this program. Title to all

compostables shall pass to the Processing Contractor when delivered to the

processing site. Once processed, the City may wish to purchase compost, wood

chips, or other products for landscaping or other uses. Upon acceptance of the

compostables, title to those compostables shall transfer to the City and/or its

Contracted agent at no additional cost. Any loads rejected by the Processing

Contractor according to the delivery standards specified herein or otherwise modifled

by the final contract shall remain the full responsibility of the City.

Acceptable Materials: All bulk delivered yard debris materials contained in self-unloading

vehicles should be accepted at the site. Larger dimensional lumber,

tree branches and trunks and other large woody materials may be

accepted on a case-by-case basis. Small trucks and personal

vehicles should be directed to the Drop-Off Station (DOS) for tipping

in order to preserve safe operating conditions at the composting

facility.

Distribution/pick-up: Bulk distribution (requiring loading by front end loader) of both

finished compost and mulch may be made at the discretion of the

Contractor. Smaller quantities (by the bushel or pickup truck load)

may be sold by the Contractor or Recycle Ann Arbor at the Drop-Off

Station.

Current Tip Fees:

The current City Compost Facility Tip Fee Rates and Resolution are

included in Attachment C – Exhibit C.

City of Ann Arbor

Composting RFP # 730

Page 28

Current Sales Prices

The current City material sales Rate Sheet in included in Attachment

C – Exhibit D.

F. Product Marketing and Distribution

The City of Ann Arbor currently produces fully stabilized compost. Successful

production requires that the details of the site management plan be closely followed.

The City adheres to the highest industry standards in producing its compost. The

end market for the City’s composted material includes both public and private sector

users. Ann Arbor concentrates on selling to bulk and residential buyers in both

sectors to ensure all of its materials are marketed quickly to local users. Some of

the total produced is reserved for Recycle Ann Arbor use in blending and mixing of

special soil products, “designer mixtures” aimed directly at landscaping professionals.

The selected Contractor shall endeavor to develop a variety of markets for finished

compost that maximizes the marketplace value of the material and ensures that all

incoming material is sold within 12 months of coming onsite.

G. Special Provisions for Acceptance and Receipt of Materials

The following specific provisions are provided for Organics Processing Services to be

provided by the Contractor:

• Processing Contractor must be able to accommodate incoming material at a rate

such that trucks delivering City materials are able to approach the site, enter,

weigh in, unload all materials and depart the site with a turn-around time of less

than 30 minutes (inclusive of actual time ejecting load).

• In addition, the Processing Contractor must be able to process all incoming

material such that it operates in compliance with the requirements outlined in

Attachment C, Exhibit B. MDEQ requirements for incorporation of materials into

windrows).

• Cleanup of trash that arrives onsite as a result of the dumping process,

documenting trash that was delivered by the City, outside contractor, or other

site customer.

H. Compost Facility Maintenance and Utilities

The selected Processing Contractor will receive sole right to use the Compost

Storage and Maintenance Building. The selected Contractor will be responsible for

maintaining the building, its associated equipment, and the surrounding grass,

pavement, and sidewalks to a level that meets the common practice on the rest of

the site. In addition, selected contractor will be responsible for all utilities costs

(including but not limited to electricity, gas, water, sewer, telephone, internet),

facility insurance (according to City of Ann Arbor standards as listed elsewhere in

this document).

City of Ann Arbor

Composting RFP # 730

Page 29

I. Compost Facility Equipment and Safety

The selected Processing Contractor shall furnish all Processing equipment to

complete the Service Order Schedule. All vehicles shall be kept in good repair,

appearance and in a sanitary condition at all times. The Processing Contractor will

annually supply the City with an inventory of the equipment being used to service

this contract.

All equipment and facilities used by the Processing Contractor shall be subject to

inspection for sanitation, safety and appearance and subject to approval or rejection

by the Contract Administrator at anytime. Unsafe equipment may be immediately

ordered off the site by the Contract Administrator. Inspected equipment deemed

unsanitary or whose appearance does not meet city specifications must be replaced

or placed in a proper condition by the Processing Contractor as soon as is reasonably

possible or within 3 working days, whichever is less.

2.6 Processing Personnel

Processing Contractor shall furnish such qualified drivers, equipment operators

mechanical, supervisory, clerical and other personnel as may be necessary to provide

the services required in a safe, economical and efficient manner. Personnel shall operate

environmentally safe and clean equipment and facilities, in compliance with all

applicable State laws. The ultimate goal is to meet and exceed customer expectations,

environmental regulations and City Council directives, for efficient solid waste

management services.

As part of the proposal, the proposer will include the company standards for driver

requirements, behavior standards, uniform standards and drug testing, preferably from

the company employee handbook.

2.7 Compost Facility Operational Services

For Compost Facility Services required for the commercial compostables Processing

program, the following services will be provided.

A. Receiving of City of Ann Arbor residentially generated curbside yard debris

B. Receiving of City of Ann Arbor residentially generated leaves

C. Receiving of City of Ann Arbor generated source separated organics (food waste)

D. Receiving of University of Michigan generated source separated organics (food

waste)

E. Receiving of merchant generated yard debris and leaves

F. Receiving of commercially generated source separated organics

G. Receiving of clean wood waste

H. Processing of current inventory of partially composted Ann Arbor Compost

Facility material.

I. Marketing of current inventory of existing completely composted Ann Arbor

Compost Facility material

J. Marketing of future inventory of completely composted material

City of Ann Arbor

Composting RFP # 730

Page 30

K. Management all WR Wheeler properties designated as existing composting areas,

future composting areas, and agricultural areas .in a manner that maximizes

their benefit to the City of Ann Arbor according to the following priority:

a. Value-added composting and organics utilization (e.g. more composting,

colorization, blending, bulk sales)

b. Bio-energy production (anaerobic digestion)

c. Food production (organic urban farming, conventional agriculture)

d. Eco-system services (carbon sequestration and utilization, wetland

banking, species preservation)

2.8 Compost and Soil Product Marketing

It is the intention of the City of Ann Arbor to engage a contractor that is capable of

accomplishing a compost and soil marketing program that can achieve the following

outcomes:

A. Supply the City of Ann Arbor sufficient wood chip, soil product and compost to

meet its demand needs,

B. Supply the demand of citizens of the City of Ann Arbor for sufficient wood chip,

soil product and compost to meet their demands,

C. Supply current and future Drop of Station (DOS) sales needs for wood chip, soil

product and compost products,

D. Complete such value added operations (e.g. chip colorizing, bagging, other

innovative farm, garden, or landscape uses for compost) in a manner that

maximizes the value of the sold product and builds a long term, robust

marketplace for the Ann Arbor soil and compost brand.

2.9 Acceptable Technologies

The City of Ann Arbor will consider proposals from any offerer who proposes to utilize

either aerobic or anaerobic biological conversion technologies for the processing of

organic materials and the Composting Facility. Under no circumstances will any thermal

conversion technologies be entertained.

2.10 Acceptable End Markets

The City of Ann Arbor encourages the end use of its incoming organic stream as

products with the highest value application possible. Acceptable uses include but are

not limited to the following:

A. Biofuel in the form of methane or other energy source developed by digestion

processes,

B. Waste heat from the methanogenisis,

C. Finished, stabilized compost, (bagged or unbagged)

D. Blended soil product (mixed compost, sand and/or topsoil)

E. Potting mix (bagged or unbagged)

F. Shredded wood

G. Colorized shredded wood (bagged or unbagged)

H. Turf topdressing

I. Agricultural soil enhancement

City of Ann Arbor

Composting RFP # 730

Page 31

Use of final product from the facility as Alternate Daily Cover, or other use in a landfill is

not acceptable.

2.11 Information Technology

For this program the City will manage the incoming and outgoing flows of materials

through the City scale and such Customer Service Center databases and programs as

are required for monthly and annual reporting of flow tonnages, tipfee collections, and

material sales. The final IT protocol will be negotiated between the City and the

Composting Contractor.

2.12 Carbon Asset Management

As described in Section 2.8, the City will record the recovery the amount of organic

materials from the landfill. This effort will result in the elimination of carbon dioxide and

other gasses to the atmosphere. If the City decides to monetize the carbon emission

credits, the City will retain all ownership of carbon credits and other eco-system service

benefits. The City may engage with external consultants to measure the avoided

emissions.

2.13 Reporting and Invoicing

The Contractor will be expected to provide monthly, quarterly, and annual reports as

part of their regular invoicing cycle. Non-submittal of reports will result in non-payment

of invoices.

Invoice Documentation Requirements:

• Daily paper weight tickets for each incoming load, showing at a minimum the

chronological ticket number, location, date, time, truck number, type and source

(e.g. City, Institution, Commercial) of material collected, and weight of material

in pounds and tons.

• Daily paper weight tickets for each outgoing load that is greater than 2.0 CY

(one, non-self dumping pickup truck load) in volume. Pickup truck and

automobile outgoing loads to be reported as estimates of total volume and

submitted on a separate ticket.

• Dated summary electronic reports in a format acceptable to City sent on

monthly, quarterly, and yearly basis showing the itemized tabulation of the same

data as above along with tonnage reports on end-products marketed by tons

(with product type – e.g. insulation) and overall residue rate.

• Monthly calculations, with supporting data as required for any revenue sharing

arrangement formulas (e.g. calculation of a weighted average commodity

revenue).

City of Ann Arbor

Composting RFP # 730

Page 32

Invoicing must be accompanied by monthly, quarterly, and annual reports that include

the information outlined above in the reporting format below.

Reporting Components:

• Incoming material flows by source (e.g. City of Ann Arbor, University of

Michigan, etc.) including but not limited to:

o Curbside yard debris

o Fall leaf

o Source separated organics

o Residential source separated organics

o Institution source separated organics

o Commercial source separated organics

o Other materials TBD

• Outgoing material flows by end use (e.g. City of Ann Arbor, Drop-off

Station, etc.) including but not limited to:

o Finished, stabilized compost (bagged and unbagged)

o Other soil products

o Mulch (by type)

o Colorized mulch

o Biofuel

o Other products TBD

• All tipfees by date and type of material

• Material sales revenues by date and type of material

• Composting activities including:

o Quantity of material processed

o Type of processing

o Odor, noise, or visual complaints from neighbors

• Injuries

Annual Reporting Requirements for City Fiscal Year (July 1 – June 30):

• Summary of monthly reports

• Documentation to ensure compliance with bio-fuels requirement

• Summary of Preventative Maintenance and Repairs schedule

Additional Reporting Requirements:

• Quarterly reports.

• Additional data as needed for the City to complete the MDEQ “Composting

Facility Annual Reporting Form” at the end of the State of Michigan’s fiscal

year (October 1 – September 30) and to submit the form within the

mandatory timeframe.

• Additional data as required by the MDEQ for the “Composting Facility

Operational Records” (see Attachment C, Exhibit B).

City of Ann Arbor

Composting RFP # 730

Page 33

2.14 Changes to Facility

City Design Changes

The City shall have the right to require changes to the design of the compost facility

during the term of this Operating Contract. If any change adversely affects Contractor's

costs, guarantees, warranties, Product revenues and/or any other obligations set forth in

the Construction Contract or the Operating Contract, or affect Contractor's costs of

operations and maintenance of the compost facility, the affected number or standard

shall be appropriately adjusted to reflect the increased costs or changed circumstances.

Changes in Design or Construction

Contractor shall be solely responsible for the design, construction and installation of any

Design Change required by the City. The City shall be responsible for all costs of

changes in design, construction and installation of all approved changes to the compost

facility.

Contractor Design Changes to Compost Facility

Contractor shall have the right to make changes to the compost facility, at its sole cost

and expense, but only after written notice to the City containing detailed information

concerning the changes and expected effects on Contractor's guarantees of performance

and only to the extent that the changes (i) do not adversely affect Contractor's

guarantees of the compost facility’s performance set forth in the Contracts, (ii) do not

impair the quality and integrity of the compost facility as set forth in the plans and

specifications of this Operating and Management Contract, and (iii) do not impair

Contractor's ability to fulfill all of its obligations under the Construction Contract. The

City must consent in writing before Contractor may proceed with any work relating to

the change, which consent shall not be unreasonably withheld.

Impact of Design Changes

With respect to any changes requested by the City pursuant to Section 9.01, Contractor

shall furnish the City with (i) a statement of work, (ii) a firm price quotation for design

and installation, and (iii) the effect, if any, on the Performance Guarantees set forth in

Schedule 1 of this service Contract. Should the City and the Contractor be unable to

agree to a firm price for design and installation the City may still require the Design

Change to be completed and pay the Contractor its Direct Costs for the Design Change.

Protection and Clean Up

The contractor must maintain control of the site during all phases of the operation and

clean up all areas following completion of the pad, detention facility, and associated

roadway accessways. The contractor must provide trash removal of all materials and

equipment used or brought to the project site by the contractor. The contractor must

dispose of all waste products in an approved manner and in accordance with Federal,

State and local environmental protection regulations. The contractor must restore

adjacent affected areas to the pre-application condition, or as may be agreed to with the

City. No equipment shall be left to stand overnight that would block access to any

compost operation, building or other facility.

City of Ann Arbor

Composting RFP # 730

Page 34

2.15 Contract Administration

The Contractor shall designate a particular individual for contact by the Contract

Administrator or their authorized representative. All dealings, problems of contract

interpretation, other contact, etc., between the Contractor and the City shall be

conducted through the Contractor's designee and the Contract Administrator.

The City’s Contract Administrator or their authorized representative will evaluate work

performed under this contract. The Contract Administrator will determine the amount,

quality, acceptability of materials, and fitness of the work to be paid for under the

contract. The Contract Administrator will decide all questions which may arise in relation

to the work and related matters. The City's decisions shall be final and conclusive,

except as otherwise expressly provided in the contract and the Dispute Resolution

Process as outlined in the Service Agreement in Attachment B.

The Contractor and the Contract Administrator will meet quarterly at a minimum, to

discuss contract issues and review the monthly reports. The Contractor will also provide

written responses and reports to questions from the Contract Administrator, whenever

requested.

This agreement may be terminated by either party in the case of a breach of this

agreement by the other party, as outlined in the Service Agreement in Attachment A.

2.16 Contract Incentives, Disputes and Liquidated Damages

The City and the Processing Contractor will negotiate an incentive system to encourage

the Contractor to promote organics recovery and to help the City and the program

achieve high levels of Service Quality and Customer Satisfaction. The Organics Diversion

incentive system will be tied to the tonnage of Compostables delivered to the City’s

Designated Facility by the City and the Quantity and price of Compost Marketed,

Revenue Sharing and Residue Rates for processing that material.

Contractor must comply with MDEQ Compost Registration requirements as outlined in

Attachment C, Exhibit B that give guidance for on site management, odor control, and

other nuisance issues.

It is expected that neighbor complaints will be resolved quickly and without incident.

The Processing Contractor will be notified in writing by the Contract Administrator about

any persistent or continued complaints of service or odor by the customers or neighbors.

The Processing Contractor will respond within 48 hours in writing to the complaints and

offer course of action to resolve them.

If the complaints persist, the Processing Contractor and the Contract Administrator will

convene a Dispute Resolution Meeting as outlined in the Service Agreement in

Attachment B. At the meeting the issues will be discussed in detail. The result of the

meeting will be a statement signed by both parties with a course of action to resolve the

complaints.

City of Ann Arbor

Composting RFP # 730

Page 35

If the complaints still persist, the following schedule of liquidated damages will apply:

1. Failure or neglect to correct chronic site management or odor problems (chronic

shall mean three or more similar incidents) – each instance: up to $1,500.

2. Failure to provide Commercial Waste Processing within twenty four (24) hours of

request by the City (per occurrence): up to $500.

3. Processing of Solid Waste from any premise that has not been approved by City (per

occurrence, per premise): up to $500.

4. Failure to report an accident, incident or complaint by close of business on the same

day: up to $1,500 per occurrence; up to $2,500 per additional day until resolved.

5. Failure to submit complete, accurate reports and invoices in the specified format:

Nonpayment of invoice until submission of an accurate and appropriately formatted

invoice is received.

6. If, during the performance of their duties, any employee of the Contractor is found

to possess or be under the influence of alcohol or illegal drugs or to be under the

influence of any prescription drug which could impair the employee’s ability: $100.00

per employee, per occurrence.

The liquidated damages will only be assessed after continued violations after a Dispute

Resolution Meeting.

The liquidated damages provided for herein are not considered as penalties and were

not calculated in contemplation or anticipation that the Contractor would default. In the

event the Contractor does default or abandon the project, the City reserves the right to

collect from the Contractor or its surety, in addition to the liquidated damages, the

actual damages incurred by the City as a result of the default or abandonment.

The assessment of liquidated damages shall be determined by the Contract

Administrator or the designee and deductions made from the payment each month to

the Contractor. The decision of the Contract Administrator or the designee in the matter

will be binding. The Contractor may at their option initiate the dispute resolution process

included in the service agreement.

2.17 Educational Facility and Tours

Contractor shall make the composting facility reasonable available for tours by the City.

City will provide 48-hours notice and will adhere to customary composting facility safety

guidelines. Contractor, in the course of carrying out the requirements of the Contract,

will have the ability to utilize the educational facilities located at the MRF on an “as

available” basis.

City of Ann Arbor

Composting RFP # 730

Page 36

SECTION III: SUBMITTALS AND REQUIREMENTS

Proposers will submit a Technical and Cost Proposal package consisting of three sections. The

three sections, with more detailed requirements following, are:

• Section I:

Proposal Summary

• Section II:

Technical Proposal (including Form A-8 sealed inside in a separate

envelope.

o Commercial Compostables Processing Services

o Equipment Management Services

• Section III: Cost Proposal(s)

A proposal checklist and required forms are contained in Attachment A: Forms and

Checklist.

3.1 Proposal Summary

The Proposal Summary section is intended to serve as the document which proposal

evaluators can use to quickly understand technical, business and cost aspects of the

proposal. The items listed in the following subsections are required elements of the

Proposal Summary. The Proposal Summary must be submitted with the Technical

Proposal.

3.2 Content and Form Proposals

The proposal must be signed by a person who has legal authority to contractually bind

the Proposer. Proposers shall submit one (1) signed original and ten (10) complete

copies.

The Proposal shall include, but is not limited to, the following and must be presented in

the following order:

3.3 Submission Requirements and Forms

Proposer will submit a Technical and Cost Proposal package consisting of three sections.

The three sections, with more detailed requirements following, are:

• Section I:

Proposal Summary

• Section II:

Organics Processing Technical Proposal

• Section III:

Organics Processing Cost Proposal

A. Bid Bond

All Technical and Cost Proposals must be accompanied by the bid bond or letter of

credit as described in Section 1.7

City of Ann Arbor

Composting RFP # 730

Page 37

B. Proposal Authorization Signature

The Transmittal/Certification letter must be signed by an officer of the proposing

organization empowered to sign a document that commits the Proposer to the

obligations in the proposal.

C. Introduction to Proposal

Proposers should provide an overview of their proposal including a brief summary of

the Proposer, their services, corporate ownership, resources, track record and ability

to meet the needs of the City as expressed in this RFP.

D. Technical Proposal

The Technical Proposal is intended to serve as the document which proposal

evaluators can use to quickly assimilate all technical and business aspects of the

proposal. The items listed in the following subsections are required elements of the

Technical Proposal.

E. Proposer’s Statement of Organization (Form A-1)

Complete Form A-1, provided in Attachment A: Technical Proposal Forms and

Checklist. Form A-1 is a required form, showing the Proposer’s organization, that

must be completed as part of the Proposal. The questions that are not applicable

should be included and marked “Not Applicable”. The purpose of the form is not

intended in any way to limit the type, quality or quantity of data and information

supplied by the Proposer. Attach additional sheets if more space is required. If

Form A-1 is not completed in full it may result in disqualification.

F. Proposer’s Qualifications (Form A-2)

Form A-2 is a required form, showing the Proposer’s relevant experience in the

operation of a composting facility and the marketing of the resulting product. The

purpose of this form is to provide the technical reviewers with a summary

understanding of the experience that the Proposer has in completing the tasks

identified in this RFP

G. Key Project Staff Members (Form A-3)

Provide resumes for the 3 key staff members who will be working on this project.

Indicate who specifically will be managing the contract and would be the main

contact for the City’s Contract Administrator. Also indicate who will be the main

operations director and main person responsible for product sales and marketing for

the project.

H. Incoming Material Quantities and Handling Protocols (Form A-4)

Form A-4 is a required form that asks for information pertaining to the Proposer’s

projected incoming material expectations and management approach (including the

RFP requirements for weighing and reporting). Each Proposer is expected to provide

processing for a base amount that includes the current yard debris and bulk leaf

volumes. Additional merchant derived materials may be added to the amount of

City of Ann Arbor

Composting RFP # 730

Page 38

material to be processed and should be presented in the appropriate table on Form

A-4. Information pertaining to the Proposer’s planned approach for managing

incoming materials is also required.

I. Processing/Marketing Services Proposal – Work Summary (Form A-5)

Proposers should provide a condensed description of the proposed composting

receiving, processing, and marketing operations services. The description should be

complete from the point of receiving material all the way to final shipping, marketing

and reporting. Use Form A-4 along with supplemental information as required to

explain how the proposed operations will be carried out in a manner that is

consistent with best composting management practices.

At a minimum, the Proposer shall describe the following items in the work plan:

1. Equipment Utilization – The Proposer may use both City and privately owned

equipment for the proposed composting operations. In order to provide the City

with information pertaining to fuel use, maintenance, and equipment

depreciation, the Proposer shall identify the planned annual use (in hours) of the

proposed equipment.

2. Proposed Size Reduction, Mixing and Windrowing Protocols –including

description of the planned usage of City owned equipment, the addition of

Proposer provided equipment, deployment of staffing, and seasonal changes in

operations. Detail of the base area requirements windrows containing City

materials and expanded (if any) area requirements for windrows containing

merchant materials;

3. Proposed Windrow Turning/Combination and Monitoring – including

description of the planned usage of City owned equipment, the addition of

Proposer provided equipment, deployment of staffing, and seasonal changes in

operations. Information concerning the strategy for volume reduction and

windrow combination will be relevant if the Proposer suggests a increase in the

volumes of incoming materials. Attach a drawing of the active composting areas

and their proposed uses if necessary;

4. Curing, Screening and Finishing – including description of the planned usage

of City owned equipment, the addition of Proposer provided equipment,

deployment of staffing, and seasonal changes in operations;

5. Marketing, Sales and Value-Added Activities – including description of the

planned usage of City owned equipment, the addition of Proposer provided

equipment, deployment of staffing, and seasonal changes in operations.

Provide supporting documents showing demand for finished produce will ensure

that all incoming material can be removed from the site within in a year of its

arrival. Preference will be given to proposers who suggest higher value (both

social and economic) uses for compost.

J. Land Stewardship, Agriculture, and Eco-Systems Services (Form A – 6)

The Ann Arbor Compost Facility is contained within the WR Wheeler Service Center.

The Center encompasses a variety of uses ranging from City of Ann Arbor Wheeler

City of Ann Arbor

Composting RFP # 730

Page 39

Operations Center to a closed landfill. Besides composting, waste transfer and

recycling, a significant acreage of the property remains unused in the form of both

fallow farm land and forest. Proposers are encouraged to view these resources as a

means to “close the loop” on organics recovery in the City. For instance, utilization

of the agricultural land for “local” food cultivation, wetland development, and carbon

positive agricultural land and forest husbandry practices would all be encouraged.

K. Exceptions to Agreement (Form A-7)

Complete Form A-8 if Proposer intends to take any exceptions to the program

specifications set forth in the RFP documents or other terms and/or requirements of

the proposed Agreement. Instructions contained as part of Form A-6 indicate that

Proposers are to prepare the Cost Proposal forms based on the program

specification set forth in the RFP documents without considering any exceptions that

may be set forth on this form. In the event the Proposer takes exception to the RFP

specifications they may set forth those exceptions in the manner described in Form

A-7.

L. Financial Qualifications (Form A – 8) (To be sealed separately and opened

in the event that the City begins negotiations with the Proposer)

Proposers must provide a description of relevant Financial Qualifications as

described below. The City will make best efforts, but make no representation that

it will be able to maintain total confidentiality of Proposer’s financial information. A

Proposer that submits financial information that asks to have that information

treated as confidential should submit a statement justifying the request, cross

reference it in the proposal and label such confidential information as a separate

attachment, clearly identifying it as confidential. At all times, the City will comply

with the provisions of the Michigan Public Records Act as required by state law.

Financial information to be included with the Proposal includes:

1. The proposed Proposer’s summary financial statements for the past three fiscal

years. These statements must include, at a minimum, statements of financial

position and changes in financial position.

2. If the entity that will sign the Agreement has a parent company or is proposing

a joint venture, the parent company or joint venture company(ies) must also

provide financial statements for the most recent three fiscal years. The parent

company must provide a statement indicating its intent and means to provide

financial assurance of performance.

3. If the entity that will sign the Agreement has been in existence less than three

years, the Proposer must provide sufficient financial data to substantiate, to the

satisfaction of the City, the Proposer’s financial capability and viability of the

entity.

4. In addition to the financial statements, the Proposer must provide a statement

from the Chief Financial Officer indicating that there has been no material

change in the financial circumstances of the proposing entity (or its parent

company or owners if they are providing financial assurance of performance)

since the date of the last audited financial statements.

City of Ann Arbor

Composting RFP # 730

Page 40

5. Financing of the services and equipment will be the sole responsibility of the

successful Proposer. Proposer must demonstrate that it can provide the required

financing from either 1) internally generated funds or 2) commitments from

external sources.

6. Disclose any changes or contemplated changes in the structure of the firm (e.g.

mergers, spin-offs, and acquisitions) that may impact its financial condition.

The City reserves the right to require submission by Proposer, at no cost to the City,

of certified audited financial statements for the Proposer, and/or an opinion by a

Certified Public Accountant with regard to the financial status of such Proposer,

including ownership of, or interest in, equipment and facilities prior to award of an

Agreement.

M. Safety Compliance and History Form (Form A - 9)

The City places a high value on the workers who will be working on the premises of

the Wheeler Center, whether City employees or those of its selected Contractors.

Therefore Proposers shall provide information pertaining to OSHA violations and

their resolution and Worker’s Compensation Claim History including the workers'

compensation safety factor, EMR (experience modification rating).

N. Litigation History (Form A – 10)

1. The Proposer must provide a history for the last five (5) years of all claims,

settlements, arbitrations, litigation proceedings, and civil actions involving

$100,000 or more, and all criminal legal actions in which the company, its parent

company, subsidiaries, all partners, or principals were involved. For each case,

the Proposer must provide the following:

• The name of the claim, arbitration, litigation or action

• The amount at issue or the criminal charges alleged, and

• The status or final disposition of the case.

2. The Proposer must also provide details of any current or threatened legal actions

in Michigan (or any other state) against the Proposer or its parent company,

subsidiaries, all partners, principals, or joint venture company(ies) by a

governmental entity contracting with the Proposer or its parent company for

services relating to solid waste management, or against such a government

entity by the Proposer or its parent company or joint venture company(ies). For

each action, the Proposer must provide the following:

• The name of the action and the court in which the action is pending

• The action number and the amount at issue.

3. The Proposer shall provide a list of all enforcement actions taken against it

during the last five (5) years by any regulatory agency such as, but not limited

to, the United States Environmental Protection Agency, the Michigan Department

of Environmental Quality or a Local Enforcement Agency. The list shall include

name of the regulatory agency and the date of enforcement action.

City of Ann Arbor

Composting RFP # 730

Page 41

4. The Proposer shall inform the City if it has had a permit, franchise, license,

entitlements or business licenses that have been revoked or suspended in the

last five (5) years.

5. The Proposer must list any claims against a Bid or Performance Bond and the

results or any contractual defaults or termination over the last five (5) years.

O. Recycled Content Requirement (Form A – 11)

Proposers shall conform with City submittal requirements for recycled waste paper

content.

3.4 Cost Proposals

Each Proposer shall submit a Cost Proposal for Processing Services and Compost Facility

Services that includes all cost information as identified and described below.

A proposal checklist and required forms are contained in Attachment A: Cost Proposal

Forms and Checklist.

A. Compost Equipment Lease and Own Costs (Form A-12)

The Compost Equipment Lease and Own Costs Form must be filled out in full in

order to have evaluate the cost options for equipment use and preventative and

routine maintenance. Price quotes are per unit as specified in the form. All prices

quoted are for services as described in this RFP unless the Proposer submits specific

exceptions as part of Technical Proposal Form A-7: Exceptions.

B. Composting Processing Services Cost and Revenue Share Cost (Form A-

13)

The Processing Cost Proposal must be filled out in full in order to have the cost

proposals evaluated as part of the Contractor selection process. Price quotes are per

unit as specified in the form. All prices quoted are for services as described in this

RFP unless the Proposer submits specific exceptions as part of Technical Proposal

Form A-7: Exceptions.

C. Proposer’s Signature Page (Form A-14)

The Processing Cost Proposal Signature Page must be signed by an officer of the

proposing organization empowered to sign a document that commits the Proposer to

the price quotes stated in the Processing cost .

City of Ann Arbor

Composting RFP # 730

Page 42

CITY OF ANN ARBOR

DEPARTMENT OF

SOLID WASTE MANAGEMENT

Request for Proposals

Composting Facility Operations

ATTACHMENT A

TECHNICAL AND COST PROPOSAL FORMS

The following forms attempt to coincide with the required information contained within the

proposal. The forms are not inclusive of the information Proposer is responsible for providing.

It is the responsibility of the Proposer to comply with providing the requested information.

The City of Ann Arbor reserves the right, after proposals have been submitted, to meet with any

Proposer to gain clarification of their proposal.

City of Ann Arbor

Composting RFP # 730

Page 43

REQUEST FOR PROPOSAL

CITY OF ANN ARBOR

COMPOSTING FACILITY OPERATIONS

Technical and Cost Proposal Checklist

Checklist:

Proposal Summary

Transmittal/Certification Letter with Signature

Introduction to Proposal

Bid Bond

Technical Proposal

Form A-1: Statement of Organization

Form A-2: Proposer’s Qualifications

Form A-3: Key Staff Members

Form A-4: Incoming Material Quantities and Handling Protocols

Form A-5: Processing/Marketing Services Proposal – Work Summary

Form A-6: Land Stewardship, Agriculture, and Eco-System Services

Form A-7: Exceptions to Agreement

Form A-8: Financial Qualifications

Form A-9: Safety Compliance and History Form

Form A-10: Litigation History

Form A-11: Certificate of Recycled Paper Content

Cost Proposal

Form A-12: Compost Equipment Lease and Own Costs

Form A-13: Composting Processing Services Cost and Revenue Share

Form A-14: Cost Proposal Signature Page

This form must be signed by an individual authorized to commit the Proposer’s firm to the Agreement in

the manner set forth below.

Signature:

Type Name:

Title:

Date:

Please note that if exceptions are taken, all required information, as set forth above must be submitted.

City of Ann Arbor

Composting RFP # 730

Page 44

THIS PAGE LEFT BLANK INTENTIONALLY

City of Ann Arbor

Composting RFP # 730

Page 45

Attachment A: Form A-1

Proposer’s Statement of Organization

1. Full Name of Business Concern (Proposer):

2. Principal Business Address:

3. Principal Contact Person(s) for this Proposal (name and title):

Direct Phone Number (or Cell Phone):

Email Address:

4. Form of Business Concern (Corporation, Partnership, Joint Venture, Other):

5. If a corporation, in What State Incorporated and Date of Incorporation:

State:

Date:

6. If a Joint Venture or Partnership, Provide Date of Agreement:

Date:

City of Ann Arbor

Composting RFP # 730

Page 46

TECHNICAL PROPOSAL FORM A-1 CONTINUED

7. Provide names of partners or officers as appropriate and indicate if the

individual has the authority to sign in name of Proposer. Provide proof of the

ability of the individuals so named to legally bind the Proposer:

Name

Address

Title

8. List all firms participating in this project (including staffing companies,

equipment providers, maintenance firms, bagging contractors, colorizers, and

landscapers, etc.)

Name

Address

1.

2.

3.

4.

9. Outline specific areas of responsibility for each firm listed in Question 8.

Name

Responsibilities

1.

2.

3.

4.

10. Identify the provisions of any agreement between parties which assigns legal

or financial liabilities or responsibilities:

City of Ann Arbor

Composting RFP # 730

Page 47

11. If responding firm(s) are a partially or fully-owned subsidiary of another firm,

or share common ownership with another firm, please identify the parent firms

and the relationships:

City of Ann Arbor

Composting RFP # 730

Page 48

Attachment A: Form A-2

Proposer’s Qualifications

1. Number of Employees at this location or relevant regional locations:

2. Annual Sales at this location or relevant regional locations:

3. Primary line of business:

4. Identify relevant composting operations experience.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

5. Identify relevant organics marketing and soil blending operations experience.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

6. Identify other relevant experience that suggests useful qualifications for this project.

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

City of Ann Arbor

Composting RFP # 730

Page 49

Attachment A: Form A-3

Key Staff Members’ Resumes

Proposer’s Staffing

1. Organizational Chart: Attach an organizational chart(s) for the Proposer’s staff,

showing for each Service Type the necessary staffing by position, number of staff per

position and organizational responsibilities of each staff position and qualifications

required for each position.

2. Professional/Management Staff Resumes: For professional or management level staff

that will be responsible for providing services, provide a detailed resume indicating the

individual(s) areas of expertise and experience. Resumes must be provided in the

following format, however additional information may be provided at the option of the

Proposer.

1. Names and Title

2. Project Assignment

3. Name of Company working for:

4. Years Experience with:

This Company:

With Other Similar Companies:

5. Education:

Degrees:

Year and Specialization:

6. Professional References: (List a minimum of 3)

7. Other Relevant Experience and Qualifications

List Names and Titles of Attached Professional/Management Staff Resumes:

1. Name

Title

2. Name

Title

3. Name

Title

4. Name

Title

City of Ann Arbor

Composting RFP # 730

Page 50

Attachment A: Form A-4

Incoming Materials Protocol

1. Total Incoming Material: Annually the City delivers curbside collected yard debris

(primarily grass and small brush) to the Composting Facility. Historically, additional

quantities of yard debris have also been delivered to the site from private haulers. The

historical quantities of materials delivered to the City Compost Facility are shown in Table

3. The City estimates that disposal of both yard debris and leaves from with the City will

remain approximately constant going forward for the next five years. The Proposer shall

complete the following table which shows the quantities of yard debris, leaves, and other

source separated organics that they anticipate will be delivered to the site during

proposed operations.

Material Type

Yr. 1

Y. 2

Yr. 3

Yr. 4

Yr. 5

City Bulk Leaves

4,500

4,500

4,500

4,500

4,500

City Yard Debris

4,500

4,500

4,500

4,500

4,500

Total City

9,000

9,000

9,000

9,000

9,000

Merchant SSO

Merchant Leaves

Merchant Yard Debris

Total Merchant

Grand Total

Total Compost

Marketed

2. Incoming Material Management: Describe the means and methods that will be

employed to manage incoming material on a daily basis. Include a description where

appropriate that differentiates between the approaches for management of the different

types of material (attach an additional sheet if necessary).

City of Ann Arbor

Composting RFP # 730

Page 51

Attachment A: Form A-5

Compost Processing/Marketing Protocols – Work Summary

1. Equipment Utilization: A wide variety of equipment is necessary for the operation

of a composting facility. The equipment currently utilized by the City will be made

available to the contractor for their use. The Proposer may also choose to utilize its own

equipment instead of or in addition to the city-owned equipment.

City Owned Equipment

Description

Used

Annual Hrs

Tub Grinder

Morbark 1200XL, 2003

Y / N

Windrow Turner Scarab 18HYD 525D5, 2004

Y / N

Screener Erin Star Screener 300, 1999

Y / N

Front End Loader

John Deere 624J, 2005

Y / N

Front End Loader

John Deere 624J, 2007

Y / N

Dump Truck

Ford F8000, 1995

Y / N

Dump Truck

Ford LT8513, 1997

Y / N

Flat Bed Ford F800, between 1991 &

1997

Y / N

Light Duty Truck F-250 4X4 Crew Cab, 2008

Y / N

Light Duty Truck

GMC 1500, 2006

Y / N

Snow Play Western, 7.5 Pro Poly Ultra,

2007

Y / N

Watering Truck

Mack MR688, 2000

Y / N

Air Compressor

Sullair, 185DPQJD, Air

Compressor, 2006

Y / N

Proposer Owned

Equipment

Description

Annual Hrs

City of Ann Arbor

Composting RFP # 730

Page 52

TECHNICAL PROPOSAL FORM A-5 CONTINUED

1. Equipment Utilization (con):

Proposer Owned

Equipment

Description

Annual Hrs

If the Bidder does not suggest any material or equipment alternate, the Bidder MUST complete

the following statement:

For the work outlined in this request for bid, the bidder does NOT propose any material or

equipment alternate under the contract.

Signature of Authorized Representative of Bidder

2. Size Reduction, Mixing and Windrowing: Briefly describe the proposed approach

to grinding, debagging (if needed), mixing and windrowing including the type of

equipment that will be used, the typical steps required, and the layout of the site to

accomplish this task.. Give particular attention to how the existing site will be used

including the need for additional operational area beyond that already available. Provide

calculations to show that the quantities of incoming material conform to MDEQ

requirements pertaining to compost operations intensity (e.g. CY/acre limitations).

3. Windrow Turning/Combination and Monitoring: Briefly describe the proposed

approach to windrow turning/combination and monitoring the decomposing organic

matter. Describe frequency of operational activities, measurement tools, devices, and

standard practices.

City of Ann Arbor

Composting RFP # 730

Page 53

TECHNICAL PROPOSAL FORM A-5 CONTINUED

4. Curing, Screening and Finishing: Briefly describe the proposed approach to

curing, screening and finishing the decomposition process of the organic matter. Identify

the location of the activities, their respective area requirements and tools and standard

practices necessary to inform these activities.

5. Marketing, Sales and Value-Added Activities: Briefly describe the proposed

approach to marketing, sales and value-added activities (e.g. soil blending, colorizing)

that will enable the proposer to ensure that all of the incoming organic material is

completely processed and removed from the site on a timely basis. Details that show

practices that accomplish the highest and best use of these organics materials will be

given special attention.

City of Ann Arbor

Composting RFP # 730

Page 54

Attachment A: Form A-6

Land Stewardship, Agriculture, and Eco-System Services

1. WR Wheeler Service Center: Proposers are encouraged to identify strategies to

upgrade the fallow agricultural and/or the adjacent forest land to uses that accomplish

the goal of “closing the loop” on organics recovery in the City of Ann Arbor. Creative

strategies to increase cash flows while improving global and local air, water, and eco-

system quality are greatly encouraged.

City of Ann Arbor

Composting RFP # 730

Page 55

Attachment A: Form A-7

Exceptions to RFP Specifications and Service Agreement

Proposers are to prepare the Cost Proposal forms based on the program specifications set forth in the

RFP documents without considering any exceptions that may be set forth on this form.

In the event the Proposer takes exception to the RFP specifications they may set forth those exceptions

in the following manner.

1. The exceptions are to be presented on a paper whose pages are titled, “Form G: Exceptions to

Agreement”

2. Each exception must be presented separately by stating the specific exception, the suggested

changes to the program related to the exception, the suggested changes in the Agreement

language related to the exception, the manner in which the proposed change would benefit the

City, the customers or both, and the specific dollar change in each of the various service rates, as

proposed by the Proposer in this RFP, that would take place if the exception was accepted by the

City.

3. The exceptions must be followed with the following language without exception.

“Except as set forth above, Proposer is in complete agreement with the proposed

terms, conditions and business arrangements described in the RFP including the

attached Agreement. The Proposer assumes the risk of all conditions foreseen or

unforeseen and agrees to provide the services set forth in the Agreement under

whatever circumstances may develop other than as herein provided.”

4. This form must be signed by an individual authorized to commit the Proposer’s firm to the

Agreement in the manner set forth below.

Signature:

Type Name:

Title:

Date:

Please note that if exceptions are taken, all required information, as set forth above

must be submitted.

City of Ann Arbor

Composting RFP # 730

Page 56

Attachment A: Form A – 8

Financial Qualifications Form

Proposers are to prepare the Financial Qualifications forms based on the project specifications

set forth in the RFP documents. The Proposer shall place all of required information in a

separate sealed envelope and labeled an itemization of the contents.

City of Ann Arbor

Composting RFP # 730

Page 57

Attachment A: Form A – 9

Safety Compliance and History Form

Proposers are to prepare the Safety Compliance and History forms based on the project

specifications set forth in the RFP documents. Proposer may utilize additional sheets of paper,

Labeled Form A-9, setting forth the required information.

City of Ann Arbor

Composting RFP # 730

Page 58

Attachment A: Form A – 10

Litigation History

Proposers are to prepare the Litigation History form based on the project specifications set forth

in the RFP documents. Proposer may utilize additional sheets of paper, Labeled Form A-9,

setting forth the required information.

City of Ann Arbor

Composting RFP # 730

Page 59

Attachment A: Form A-11

Certificate of Recycled Paper Content

All proposals must be submitted double-sided on fifty percent (50%) total recycled waste paper

content with ten percent (30%) post consumer minimum with an accompanying electronic

version either emailed or submitted on portable media such as CD.

In connection with submitting this proposal, I attest that the requirement for use of recycled

paper content has been met and submit the attached as proof of said requirement.

Name & Signature

Title

Company Name

Attach documentation as necessary here:

City of Ann Arbor

Composting RFP # 730

Page 60

Attachment A: Form A-12

Compost Equipment Lease or Own Costs

Equipment Model/Type/

Acquisition Date

Purchase Price

($)

Proposed Contract

Purchase Price ($)

Proposed Contract

Lease* Price ($/yr)

Tub Grinder

Morbark 1200XL, 2003

$372,550

Windrow

Turner

Scarab 18HYD 525D5,

2004

$259,856

Front End

Loader

John Deere 624J, 2005

$181,300

Front End

Loader

John Deere 624J, 2007

$151,950

Dump Truck

Ford F8000, 1995

$ 71,785

Dump Truck Ford LT8513, 1997

$ 76,808

Flat Bed

Ford F8000, between

1991 & 1997

$ 69,175

Light Duty

Truck

F-250 4X4 Crew Cab,

2008

$ 23,380

Light Duty

Truck

GMC 1500, 2006

$ 12,757

Snow Plow

Western 7.5 Pro Poly

Ultra, 2007

$ 3,899

Compost

Screener

Erin 300 Compost

Screen, 1999

$188,470

Air

Compressor

Sullair 185DPQJD, Air

Compressor, 2006

$ 10,251

Watering

Truck

Mack MR688, 2000

$162,666

TOTAL**

* Costs shall include any routine or preventative maintenance and parts. The Contractor

shall cover all labor, parts and material costs associated with routine or preventative

maintenance. The Contractor shall preserve all maintenance records for duration of the

contract. The City will make quarterly inspections of all equipment and rolling stock to

review maintenance records and equipment status.

City of Ann Arbor

Composting RFP # 730

Page 61

Attachment A: Form A-13

Composting Processing Services Cost and Revenue Share

The Cost Proposal table must be filled out in full in order to have the cost proposals evaluated

as part of the Contractor selection process. The material volume totals used in the Cost

Proposal table MUST be the same as those presented in Form A-4, Incoming Material Quantities

and Handling Protocols.

Material (tons/yr)

Yr. 1

Y. 2

Yr. 3

Yr. 4

Yr. 5

City Bulk Leaves

4,500

4,500

4,500

4,500

4,500

City Yard Debris*

4,500

4,500

4,500

4,500

4,500

Total City

9,000

9,000

9,000

9,000

9,000

Tipfee for City Leaves

($/ton)

Tipfee for City Yard

Debris ($/ton)

Total City Cost ($)

Merchant SSO

Projected SSO Tipfee

($/ton)

Merchant Leaves

Projected Leaf Tipfee

($/ton)

Merchant YW Debris

Projected YW Tipfee

($/ton)

Total Merchant

(tons)**

Merchant Revenues

($)

% share to City

Total Share to City ($)

City of Ann Arbor

Composting RFP # 730

Page 62

Compost Marketed

(tons)

Projected Market

Revenue ($/ton)**

% Revenue Share to

City

Total Share to City ($)

*Quantities include small amounts of Source Separated Organics (SSO).

** Merchant & Market quantities are considered estimates and are used to compare cost

proposals.

City of Ann Arbor

Composting RFP # 730

Page 63

Attachment A: Form A-14

Proposer’s Signature Page

PROPOSER SIGNATURE PAGE

Company Name:

Address:

Address:

City/State/Zip:

Phone Number:

Fax Number:

The undersigned has examined the complete Request for Proposals and its requirements

contained in this solicitation and are submitting the following Technical and Cost Proposal in full

compliance with those requirements.

By submission of a proposal, the vendor is required to certify as to its own organization, that in

connection with this proposal:

a.

The costs in the proposal have been arrived at independently, without consultation,

communication, or agreement, for the purpose of restricting competition as to any

matter relating to such costs with any Proposer or with any competitor; and

b.

Unless otherwise required by law, the costs that have been quoted in the proposal have

not been knowingly disclosed by the vendor and will not knowingly be disclosed by the

vendor prior to award directly or indirectly to any other Proposer or to any competitor.

AUTHORIZED SIGNATURE:

The undersigned states that this price quote is submitted in full compliance with the provision

of the RFP to which this Technical and Cost Proposal is a response:

Signature:

Name/Title:

Date:

City of Ann Arbor

Composting RFP # 730

Page 64

THIS PAGE LEFT BLANK INTENTIONALLY

City of Ann Arbor

Composting RFP # 730

Page 65

CITY OF ANN ARBOR

DEPARTMENT OF

SOLID WASTE MANAGEMENT

Request for Proposals

Composting Facility Operations

ATTACHMENT B

City of Ann Arbor

Composting RFP # 730

Page 66

Attachment B

SERVICE AGREEMENT BETWEEN

CONTRACTOR

AND

CITY OF ANN ARBOR

The City of Ann Arbor, a Michigan municipal corporation, having its offices at 100 North Fifth Avenue,

Ann Arbor, Michigan 48104 (“CITY”) and,

, a

_______________________,having its offices at

("CONTRACTOR"),

Type of Business

Address

agree as follows:

The Contractor agrees to provide services to the City under the following terms and conditions:

I.

DEFINITIONS

Administering Service Area/Unit means the

.

Contract Administrator means the

, acting personally or through any

assistants authorized by the Administrator/Manager of the Administering Service Area/Unit

Project means ____________________________.

II.

DURATION

This agreement shall become effective on

, and shall remain in effect until

satisfactory performance of all services or

, whichever occurs first, unless terminated for

breach or as provided in this agreement.

III.

SERVICES

A. General Scope: The Contractor agrees to furnish all of the materials, equipment and labor

necessary; and to abide by all the duties and responsibilities applicable to it for the Project in

accordance with the requirements and provisions of the following documents, including all

written modifications incorporated into any of the documents, which are incorporated as part

of this Contract:

Contract and Exhibits

Proposal No. ________ and Addenda (if applicable)

Proposal of Contractor, dated ___________

The contract documents are complementary and what is called for by any one shall be binding.

The intention of the documents is to include all labor and materials, equipment and transportation

necessary for the proper execution of the Project. Materials or work described in words that so

applied have a well-known technical or trade meaning have the meaning of those recognized

standards.

City of Ann Arbor

Composting RFP # 730

Page 67

In case of a conflict among the contract documents listed above in any requirement(s),

the requirement(s) of the document listed first shall prevail over any conflicting

requirement(s) of a document listed later.

B.

Quality of Services: The Contractor’s standard of service under this agreement

shall be of the level of quality performed by businesses regularly rendering this

type of service. Determination of acceptable quality shall be made solely by the

Contract Administrator.

C.

Compliance with Applicable Law: The Contractor shall perform its services under

this agreement in compliance with all applicable laws, ordinances and

regulations.

D.

Location: The Contractor shall provide all of these services with the City of Ann

Arbor.

IV. RELATIONSHIP OF PARTIES

A.

The parties to this agreement agree that it is not a contract of employment but is

a contract to accomplish a specific result. Contractor is an independent

contractor performing services for the City. Nothing contained in this agreement

shall be deemed to constitute any other relationship between the City and the

Contractor.

B.

The Contractor certifies that it has no personal or financial interest in the project

other than the fee it is to receive under this agreement. The Contractor further

certifies that it shall not acquire any such interest, direct or indirect, which would

conflict in any manner with the performance of services under this agreement.

Further Contractor agrees and certifies that it does not and will not employ or

engage any person with a personal or financial interest in this agreement.

C.

Contractor does not have any authority to execute any contract or agreement on

behalf of the City, and is not granted any authority to assume or create any

obligation or liability on the City s behalf, or to bind the City in any way.

D.

Contractor certifies that it is not, and shall not become, overdue or in default to

the City for any contract, debt, or any other obligation to the City including real

or personal property taxes. City shall have the right to set off any such debt

against compensation awarded for services under this agreement.

V. COMPENSATION OF CONTRACTOR

A.

The Contractor shall be paid on the basis of the Fee Schedule submitted as part

of RFP #674. The City will indicate in writing to the Contractor which of the

options from the Fee Schedule will be selected.. Payment shall be made within

30 days of receipt of invoice by the Contract Administrator. It is understood and

agreed between the parties that the compensation stated above is inclusive of

any and all remuneration to which the Contractor may be entitled.

City of Ann Arbor

Composting RFP # 730

Page 68

VI. INSURANCE; INDEMNIFICATION

A.

The Contractor shall procure and maintain during the life of this Contract,

including the guarantee period and during any warranty work, such insurance

policies, including those set forth below, as will protect itself from all claims for

bodily injuries, death or property damage which may arise under this Contract;

whether the acts were made by the Contractor or by any subcontractor or

anyone employed by them directly or indirectly. The following insurance policies

are required:

1.

Worker's Compensation Insurance in accordance with all applicable state

and federal statutes. Further, Employers Liability Coverage shall be

obtained in the following minimum amounts:

Bodily Injury by Accident - $500,000 each accident

Bodily Injury by Disease - $500,000 each employee

Bodily Injury by Disease - $500,000 each policy limit

2.

Commercial General Liability Insurance equivalent to, as a minimum,

Insurance Services Office form CG 00 01 07 98. The City of Ann Arbor

shall be an additional insured. There shall be no added exclusions or

limiting endorsements including, but not limited to: Products and

Completed Operations, Explosion, Collapse and Underground coverage or

Pollution. Further, the following minimum limits of liability are required:

$1,000,000 Each occurrence as respect Bodily Injury Liability or

Property Damage Liability, or both combined.

$2,000,000 Per Job General Aggregate

$1,000,000 Personal and Advertising Injury

$2,000,000 Products and Completed Operations Aggregate

3.

Motor Vehicle Liability Insurance, including Michigan No-Fault Coverages,

equivalent to, as a minimum, Insurance Services Office form CA 00 01 07

97. The City of Ann Arbor shall be an additional insured. There shall be

no added exclusions or limiting endorsements. Coverage shall include all

owned vehicles, all non-owned vehicles and all hired vehicles. Further,

the limits of liability shall be $1,000,000 for each occurrence as respects

Bodily Injury Liability or Property Damage Liability, or both combined.

4.

Umbrella/Excess Liability Insurance shall be provided to apply excess of the

Commercial General Liability, Employers Liability and the Motor Vehicle coverage

enumerated above, for each occurrence and for aggregate in the amount of $1,000,000.

City of Ann Arbor

Composting RFP # 730

Page 69

B.

Insurance required under VI.A.2 and A.3 of this Contract shall be considered

primary as respects any other valid or collectible insurance that the City may

possess, including any self-insured retentions the City may have; and any other

insurance the City does possess shall be considered excess insurance only and

shall not be required to contribute with this insurance. Further, the Contractor

agrees to waive any right of recovery by its insurer against the City.

C.

In the case of all Contracts involving on-site work, the Contractor shall provide to

the City before the commencement of any work under this Contract

documentation demonstrating it has obtained the above mentioned policies.

Documentation must provide and demonstrate an unconditional 30 day written

notice of cancellation in favor of the City of Ann Arbor. Further, the

documentation must explicitly state the following: (a) the policy number; name

of insurance company; name and address of the agent or authorized

representative; name and address of insured; project name; policy expiration

date; and specific coverage amounts; (b) any deductibles or self-insured

retentions which shall be approved by the City, in its sole discretion; (c) that the

policy conforms to the requirements specified. An original certificate of insurance

may be provided as an initial indication of the required insurance, provided that

no later than 21 calendar days after commencement of any work the Contractor

supplies a copy of the endorsements required on the policies. Upon request, the

Contractor shall provide within 30 days a copy of the policy(ies) to the City. If

any of the above coverages expire by their terms during the term of this

Contract, the Contractor shall deliver proof of renewal and/or new policies to the

Administering Service Area/Unit at least ten days prior to the expiration date.

D.

Any insurance provider of Contractor shall be admitted and authorized to do

business in the State of Michigan and shall carry and maintain a minimum rating

assigned by A.M. Best & Company’s Key Rating Guide of “A-“ Overall and a

minimum Financial Size Category of “V”. Insurance policies and certificates

issued by non-admitted insurance companies are not acceptable unless approved

in writing by the City.

E.

To the fullest extent permitted by law, for any loss not covered by insurance

under this contract, Contractor shall indemnify, defend and hold harmless the

City, its officers, employees and agents harmless from all suits, claims,

judgments and expenses including attorney’s fees resulting or alleged to result,

in whole or in part, from any act or omission, which is in any way connected or

associated with this contract, by the Contractor or anyone acting on the

Contractor’s behalf under this contract. Contractor shall not be responsible to

indemnify the City for losses or damages caused by or resulting from the City’s

sole negligence.

VII. COMPLIANCE REQUIREMENTS

A. Nondiscrimination. The Consultant agrees to comply with the nondiscrimination

provisions of Chapter 112 of the Ann Arbor City Code and to take action to

assure that applicants are employed and are treated during employment in a

City of Ann Arbor

Composting RFP # 730

Page 70

manner that provides equal employment opportunity and tends to eliminate any

inequality based upon race, national origin or sex. The Consultant agrees to

comply with the provisions of Section 9:161 of Chapter 112 of the Ann Arbor City

Code, Exhibit A

B.

Wages: Under this Contract, the Contractor shall conform to Chapter 14 of Title

I of the Code of the City of Ann Arbor as amended; which in part states "...that

all craftsmen, mechanics and laborers employed directly on the site in connection

with said improvements, including said employees of subcontractors, shall

receive the prevailing wage for the corresponding classes of craftsmen,

mechanics and laborers, as determined by statistics for the Ann Arbor area

compiled by the United States Department of Labor. At the request of the City,

any contractor or subcontractor shall provide satisfactory proof of compliance

with the contract provisions required by the Section." Where the Contract and

the Ann Arbor City Ordinance are silent as to definitions of terms required in

determining contract compliance with regard to prevailing wages, the definitions

provided in the Davis-Bacon Act as amended (40 U.S.C. 278-a to 276-a-7) for

the terms shall be used.

Further, to the extent that any employees of the Contractor providing services

under this contract are not part of the class of craftsmen, mechanics and

laborers who receive a prevailing wage in conformance with Section 1:319 of

Chapter 14 of Title I of the Code of the City of Ann Arbor, the Contractor agrees

to conform to Chapter 23, Living Wage, of Title I of the Code of the City of Ann

Arbor, as amended. The Contractor agrees to pay those employees providing

Services to the City under this Agreement a “living wage,” as defined in Section

1:815 of the Ann Arbor City Code; to post a notice approved by the City of the

applicability of Chapter 23 in every location in which regular or contract

employees providing services under this agreement are working; to maintain

records of compliance; if requested by the City, to provide documentation to

verify compliance; to take no action that would reduce the compensation, wages,

fringe benefits, or leave available to any employee or person contracted for

employment in order to pay the living wage required by Section 1:815; and

otherwise to comply with the requirements of Chapter 23. A copy of selected

provisions of Chapter 23 of the Ann Arbor City Code is attached as Exhibit B.

The current living wage rates under Section 1:815 of the Ann Arbor City Code, as

adjusted in accordance with Section 1:815(3) of the Ann Arbor City Code, is

$10.33 an hour for a covered employer that provides employee health care to its

employees and $11.96 an hour for a covered employer that does not provide

health care to its employees.

VIII. WARRANTIES BY CONTRACTOR

A.

The Contractor warrants that the quality of its services under this agreement

shall conform to the level of quality performed by professionals regularly

rendering this type of service.

City of Ann Arbor

Composting RFP # 730

Page 71

B.

The Contractor warrants that it has all the skills and experience necessary to

perform the services it is to provide pursuant to this agreement. The Contractor

may rely upon the accuracy of reports and surveys provided to it by the City

except when defects should have been apparent to a reasonably competent

contractor or when it has actual notice of any defects in the reports and surveys.

IX. TERMINATION OF AGREEMENT; RIGHTS ON TERMINATION

A. Failure of the Contractor to collect and transport the materials required to be

collected pursuant to the contract documents or failure of the Contractor to perform

the work in the manner required to be performed pursuant to the contract

documents shall constitute a breach of the contract, provided such failure is not due

to war, insurrection, riots, or act of God.

B. If the Contractor fails to collect and transport the materials required to be collected

pursuant to the contract or fails to perform the work in the manner required to be

performed pursuant to the contract documents, the City may take the following

actions, at its discretion:

1. The City shall give the Contractor written notice of the breach and an

opportunity for corrective action within three (3) consecutive working/Processing

days or other period of time decided by the City. If the Contractor fails to

correct the breach within the time provided after the written notice, the City may

terminate the contract for breach of contract by the Contractor and all liability of

the City under the agreement to the Contractor shall cease.

2. If the Contractor has had repeated or cumulative breaches of the contract, the

City may terminate the contract immediately.

3. If the Contractor collects and transports a mix of materials not covered by this

contract with compost materials collected and transported under the terms of

this contract, such action shall be a breach of the contract for which the City may

terminate the contract immediately.

4. If the City terminates the contract for breach by the Contractor, the City may

take over compost Processing operations and shall be free to negotiate with

other Contractors for the performance of the work. A contract entered into with

another Contractor shall not release the Contractor of its liability to the City for

breach of this contract, including any excess costs resulting from the breach.

5. If the Contractor fails to collect and transport materials required to be collected

pursuant to the contract, the City may perform the compost Processing

operations that the Contractor failed to perform and shall be free to negotiate

with other contractors for the performance of the work. Any and all operating

expenses incurred by the City in so doing may be deducted from compensation

to the Contractor.

C. Neither a decision by the City not to take action nor the failure of the City to take

City of Ann Arbor

Composting RFP # 730

Page 72

action in the event of a breach by the Contractor shall constitute a waiver of the

City’s right to take action in the event of a subsequent breach by the Contractor.

D. The City reserves the right to terminate the contract at any point during the term

should funds not be appropriated for these services as part of the budget process for

the fiscal years following June 30, 2008.

E. If contracting services are terminated for reasons other than the breach of the

agreement by the Contractor, the Contractor shall be compensated for reasonable

time spent and reasonable quantities of materials used prior to notification of

termination.

X. OBLIGATIONS OF THE CITY

A.

The City agrees to give the Contractor access to staff and City owned properties

as required to perform the necessary services under the agreement.

B.

The City shall notify the Contractor of any defects in the services of which the

City has actual notice.

XI.

ASSIGNMENT

A.

The Contractor shall not subcontract or assign any portion of the services

without prior written consent to such action by the City.

B.

The Contractor shall retain the right to pledge payment(s) due and payable

under the agreement to third parties.

XII. NOTICE

All notices and submissions required under the agreement shall be by personal delivery

or by first-class mail, postage prepaid, to the address stated in this agreement or such

other address as either party may designate by prior written notice to the other. Notice

shall be considered delivered under this agreement when personally delivered to the

Contract Administrator or placed in the U.S. mail, postage prepaid to the Administering

Service Area/Unit, care of the Contract Administrator.

XIII. DISPUTE RESOLUTION PROCESS

The City and the Contractor agree to first use the following process to resolve disputes

about issues related to the performance of this contract. If an issue arises requiring

resolution, either party shall initiate this dispute resolution process by notifying the other

party and scheduling a meeting. The meeting shall serve as a fact finding opportunity

to identify the issue, clarify the problem, review the applicable contract provisions

relating to the issue, discuss alternative remedies, and agree upon a means of dispute

resolution. The parties shall make a good faith effort to complete the agreed-upon

tasks within 30 days of the initial dispute resolution meeting, or specify an alternative

City of Ann Arbor

Composting RFP # 730

Page 73

schedule and deadline for resolving the issue. This dispute resolution process shall be

considered as one alternative to the City imposing liquidated damages. Nothing in this

contract section, Dispute Resolution Process, shall be construed or implied to reduce,

eliminate or otherwise affect the rights of the City or the Contractor to use any and all

other means of legal remedies.

XIV. EXTENT OF AGREEMENT

This agreement represents the entire understanding between the City and the

Contractor and it supersedes all prior representations or agreements whether written or

oral. Neither party has relied on any prior representations in entering into this

agreement.

This agreement may be altered, amended or modified only by written amendment

signed by the Contractor and the City.

XIV. SEVERABILITY OF PROVISIONS

Whenever possible, each provision of this agreement will be interpreted in a manner as

to be effective and valid under applicable law. However, if any provision of this

agreement or the application of any provision to any party or circumstance will be

prohibited by or invalid under applicable law, that provision will be ineffective to the

extent of the prohibition or invalidity without invalidating the remainder of the provisions

of this agreement or the application of the provision to other parties or other

circumstances.

XV. CHOICE OF LAW

This agreement shall be construed, governed, and enforced in accordance with the laws

of the State of Michigan. By executing this agreement, the Contractor and the City agree

to venue in a court of appropriate jurisdiction sitting within Washtenaw County for

purposes of any action arising under this agreement.

FOR CONTRACTOR

FOR THE CITY OF ANN ARBOR

By ________________________

Its:

By________________________

John Hieftje, Mayor

By________________________

Jacqueline Beaudry, City Clerk

City of Ann Arbor

Composting RFP # 730

Page 74

Approved as to substance

By ____________________________

Roger W. Fraser, City Administrator

By___________________________

Service Area Administrator

Approved as to form

________________________________

Stephen K. Postema, City Attorney

City of Ann Arbor

Composting RFP # 730

Page 75

EXHIBIT A

FAIR EMPLOYMENT PRACTICE

The Contractor, its agents or sub-contractors, shall comply with all requirements of Chapter 112

of Title IX of the Code of the City of Ann Arbor and in particular the following excerpts

therefrom:

9:161 NONDISCRIMINATION BY CITY CONTRACTORS

(1)

All contractors proposing to do business with the City of Ann Arbor shall satisfy

the nondiscrimination administrative policy adopted by the City Administrator in

accordance with the guidelines of this section. All contractors shall receive

approval from the Director prior to entering into a contract with the City, unless

specifically exempted by administrative policy. All City contractors shall take

affirmative action to insure that applicants are employed and that employees are

treated during employment in a manner which provides equal employment

opportunity and tends to eliminate inequality based upon race, national origin or

sex.

(2)

Each prospective contractor shall submit to the City data showing current total

employment by occupational category, sex and minority group. If, after verifying

this data, the Director concludes that it indicates total minority and female

employment commensurate with their availability within the contractor's labor

recruitment area, i.e., the area from which the Contractor can reasonably be

expected to recruit, said contractor shall be accepted by the Director as having

fulfilled affirmative action requirements for a period of one year at which time

the Director shall conduct another review. Other contractors shall develop an

affirmative action program in conjunction with the Director. Said program shall

include specific goals and timetables for the hiring and promotion of minorities

and females. Said goals shall reflect the availability of minorities and females

within the Contractor's labor recruitment area. In the case of construction

contractors, the Director shall use for employment verification the labor

recruitment area of the Ann Arbor-Ypsilanti standard metropolitan statistical

area. Construction contractors determined to be in compliance shall be accepted

by the Director as having fulfilled affirmative action requirements for a period of

six (6) months at which time the Director shall conduct another review.

(3)

In hiring for construction projects, contractors shall make good faith efforts to

employ local persons, so as to enhance the local economy.

(4)

All contracts shall include provisions through which the Contractor agrees, in

addition to any other applicable Federal or State labor laws:

(a)

To set goals, in conference with the Human Resources Director, for each

job category or division of the work force used in the completion of the

City work;

City of Ann Arbor

Composting RFP # 730

Page 76

(b)

To provide periodic reports concerning the progress the Contractor has

made in meeting the affirmative action goals it has agreed to;

(c)

To permit the Director access to all books, records and accounts

pertaining to its employment practices for the purpose of determining

compliance with the affirmative action requirements.

(5)

The Director shall monitor the compliance of each contractor with the

nondiscrimination provisions of each contract. The Director shall develop

procedures and regulations consistent with the administrative policy adopted by

the City Administrator for notice and enforcement of non-compliance. Such

procedures and regulations shall include a provision for the posting of

contractors not in compliance.

(6)

All City contracts shall provide further that breach of the obligation not to

discriminate shall be a material breach of the contract for which the City shall be

entitled, at its option, to do any or all of the following:

(a)

To cancel, terminate, or suspend the contract in whole or part and/or

compostables to make any required periodic payments under the

contract;

(b)

Declare the Contractor ineligible for the award of any future contracts

with the City for a specified length of time;

(c)

To recover liquidated damages of a specified sum, said sum to be that

percentage of the labor expenditure for the time period involved which

would have accrued to minority group members had the affirmative

action not been breached;

(d)

Impose for each day of non-compliance, liquidated damages of a

specified sum, based upon the following schedule:

Contract Amount

Assessed Damages

Per Day of

Non-Compliance

$ 10,000 - 24,999

25,000 - 99,999

100,000 - 199,999

200,000 - 499,999

500,000 - 1,499,999

1,500,000 - 2,999,999

3,000,000 - 4,999,999

5,000,000 - and above

$ 25.00

50.00

100.00

150.00

200.00

250.00

300.00

500.00

City of Ann Arbor

Composting RFP # 730

Page 77

(e)

In addition the Contractor shall be liable for any costs or expenses

incurred by the City of Ann Arbor in obtaining from other sources the

work and services to be rendered or performed or the goods or properties

to be furnished or delivered to the City under this contract.

City of Ann Arbor

Composting RFP # 730

Page 78

EXHIBIT B

LIVING WAGE ORDINANCE EXCERPTS

The Consultant, its agents or sub-contractors, shall comply with all requirements of Chapter 23

of Title I of the Code of the City of Ann Arbor and in particular the following excerpts therefrom:

1:813. Definitions.

For purposes of this Chapter, the following definitions shall apply:

(1)

“Contractor/vendor" is a person or entity that has a contract with the City

primarily for the furnishing of services where the total amount of the contract or

contracts with the City exceeds $10,000 for any 12-month period.

"Contractor/vendor" does not include a person or entity that has a contract with

the City primarily for the purchase of goods or property, or for the lease of goods

or property to or from the City.

(2)

"Covered Employee" means a person employed by a covered employer to

perform services which are covered or funded by the contract with or grant from

the City; provided, however, that persons who are employed pursuant to federal,

state or local laws relating to prevailing wages shall be exempt from this

Chapter.

(3)

"Covered Employer" means a contractor/vendor or grantee that has not been

granted an exemption from this Chapter pursuant to Section 1:817.

(4)

"Employee" means an individual who provides personal services performed for

wages under any contract calling for the performance of personal services,

whether written or oral, express or implied. The term "employee" does not

include any individual who volunteers to perform services for an employer if

(a)

The individual receives no compensation or is paid expenses, reasonable

benefits, or a nominal fee to perform the services for which the individual

volunteered; and

(b)

Such services are not the same type of services which the individual is

employed to perform for such employer.

(5)

"Employee Health Benefits" or "Health Benefits" means providing health care

benefits for employees (or employees and their dependents) at employer cost or

making an employer contribution toward the purchase of such health care

benefits for employees (or employees and their dependents), provided that the

employer cost or contribution equals no less than $1 an hour for the average

work week of such employee, and provided further that any employee payment

or contribution toward health care shall not exceed 50 cents an hour for the

average work week for such employee.

City of Ann Arbor

Composting RFP # 730

Page 79

(6)

"Grant" means any form of financial assistance to a "Grantee" as set forth and

defined in Section 1:813(7). "Grant" does not include financial assistance used

for the purchase or lease of property or other non-personnel costs.

(7)

"Grantee" is a person or entity that is a recipient of any financial assistance from

the City in the form of any federal, state or local grant program administered by

the City, revenue bond financing, tax increment financing, tax abatement, tax

credit, direct grant, or any other form of financial assistance that exceeds

$10,000 for any 12-month period, including any contractors, subcontractors, or

leaseholders of the grantee whose contract, subcontract or lease with the

grantee exceeds $10,000 for any 12-month period.

(8)

"Living Wage" means a wage equal to the levels established in Section 1:815.

(9)

"Person" means any individual, copartnership, corporation, association, club,

joint adventure, estate, trust, and any other group or combination acting as a

unit, and the individuals constituting such group or unit.

(10) "$10,000 for any 12 month period" is computed by taking the total amount of

the contract, grant or loan and dividing it by the number of months the contract,

grant or loan covers.

1:814. Applicability.

(1)

This Chapter shall apply to any person that is a contractor/vendor or grantee as

defined in Section 1:813 that employs or contracts with five (5) or more

individuals; provided, however, that this Chapter shall not apply to a non-profit

contractor/vendor or non-profit grantee unless it employs or contracts with ten

(10) or more individuals.

(2)

This Chapter shall apply to any grant, contract, or subcontract or other form of

financial assistance awarded to or entered into with a contractor/vendor or

grantee after the effective date of this Chapter and to the extension or renewal

after the effective date of this Chapter of any grant, contract, or subcontract or

other form of financial assistance with a contractor/vendor or grantee.

1:815. Living Wages Required.

(1)

Every contractor/vendor or grantee, as defined in Section 1:813, shall pay its

covered employees a living wage as established in this Section.

(a)

For a covered employer that provides employee health care to its

employees, the living wage shall be $10.33 an hour, or the adjusted

amount hereafter established under Section 1:815(3).

(b)

For a covered employer that does not provide health care to its

employees, the living wage shall be $11.96 a hour, or the adjusted

amount hereafter established under Section 1:815(3).

City of Ann Arbor

Composting RFP # 730

Page 80

(2)

In order to qualify to pay the living wage rate for covered employers providing

employee health care under subsection 1:815(1)(a), a covered employer shall

furnish proof of said health care coverage and payment therefore to the City

Administrator or his/her designee.

(3)

The amount of the living wage established in this Section shall be adjusted

upward no later than April 30, 2002, and every year thereafter by a percentage

equal to the percentage increase, if any, in the federal poverty guidelines as

published by the United States Department of Health and Human Services for the

years 2001 and 2002. Subsequent annual adjustments shall be based upon the

percentage increase, if any, in the United States Department of Health and

Human Services poverty guidelines when comparing the prior calendar year's

poverty guidelines to the present calendar year's guidelines. The applicable

percentage amount will be converted to an amount in cents by multiplying the

existing wage under Section 1.815(1)(b) by said percentage, rounding upward to

the next cent, and adding this amount of cents to the existing living wage levels

established under Sections 1:815(1)(a) and 1:815(1)(b). Prior to April 1 of each

calendar year, the City will notify any covered employer of this adjustment by

posting a written notice in a prominent place in City Hall, and, in the case of a

covered employer that has provided an address of record to the City, by a

written letter to each such covered employer.

City of Ann Arbor

Composting RFP # 730

Page 81

EXHIBIT C

FAIR EMPLOYMENT PRACTICE

The Contractor, its agents or sub-contractors, shall comply with all requirements of Chapter 112

of Title IX of the Code of the City of Ann Arbor and in particular the following excerpts

therefrom:

9:161 NONDISCRIMINATION BY CITY CONTRACTORS

(1) All contractors proposing to do business with the City of Ann Arbor shall satisfy the

nondiscrimination administrative policy adopted by the City Administrator in accordance

with the guidelines of this section. All contractors shall receive approval from the

Director prior to entering into a contract with the City, unless specifically exempted by

administrative policy. All City contractors shall take affirmative action to insure that

applicants are employed and that employees are treated during employment in a

manner which provides equal employment opportunity and tends to eliminate inequality

based upon race, national origin or sex.

(2) Each prospective contractor shall submit to the City data showing current total

employment by occupational category, sex and minority group. If, after verifying this

data, the Director concludes that it indicates total minority and female employment

commensurate with their availability within the contractor's labor recruitment area, i.e.,

the area from which the contractor can reasonably be expected to recruit, said

contractor shall be accepted by the Director as having fulfilled affirmative action

requirements for a period of one year at which time the Director shall conduct another

review. Other contractors shall develop an affirmative action program in conjunction

with the Director. Said program shall include specific goals and timetables for the hiring

and promotion of minorities and females. Said goals shall reflect the availability of

minorities and females within the contractor's labor recruitment area. In the case of

construction contractors, the Director shall use for employment verification the labor

recruitment area of the Ann Arbor-Ypsilanti standard metropolitan statistical area.

Construction contractors determined to be in compliance shall be accepted by the

Director as having fulfilled affirmative action requirements for a period of six (6) months

at which time the Director shall conduct another review.

(3) In hiring for construction projects, contractors shall make good faith efforts to employ

local persons, so as to enhance the local economy.

(4) All contracts shall include provisions through which the contractor agrees, in addition to

any other applicable Federal or State labor laws:

(a) To set goals, in conference with the Human Resources Director, for each job

category or division of the work force used in the completion of the City work;

(b) To provide periodic reports concerning the progress the Contractor has made in

meeting the affirmative action goals it has agreed to;

City of Ann Arbor

Composting RFP # 730

Page 82

(c) To permit the Director access to all books, records and accounts pertaining to its

employment practices for the purpose of determining compliance with the affirmative

action requirements.

(5) The Director shall monitor the compliance of each Contractor with the nondiscrimination

provisions of each contract. The Director shall develop procedures and regulations

consistent with the administrative policy adopted by the City Administrator for notice

and enforcement of non-compliance. Such procedures and regulations shall include a

provision for the posting of contractors not in compliance.

(6) All City contracts shall provide further that breach of the obligation not to discriminate

shall be a material breach of the contract for which the City shall be entitled, at its

option, to do any or all of the following:

(a) To cancel, terminate, or suspend the contract in whole or part and/or compostables

to make any required periodic payments under the contract;

(b) Declare the Contractor ineligible for the award of any future contracts with the City

for a specified length of time;

(c) To recover liquidated damages of a specified sum, said sum to be that percentage of

the labor expenditure for the time period involved which would have accrued to

minority group members had the affirmative action not been breached;

(d) Impose for each day of non-compliance, liquidated damages of a specified sum,

based upon the following schedule:

Contract Amount

Assessed Damages

Per Day of

Non-Compliance

$ 10,000 - 24,999

25,000 - 99,999

100,000 - 199,999

200,000 - 499,999

500,000 - 1,499,999

1,500,000 - 2,999,999

3,000,000 - 4,999,999

5,000,000 - and above

$ 25.00

50.00

100.00

150.00

200.00

250.00

300.00

500.00

(e) In addition the Contractor shall be liable for any costs or expenses incurred by the

City of Ann Arbor in obtaining from other sources the work and services to be

rendered or performed or the goods or properties to be furnished or delivered to the

City under this contract.

EXHIBIT D

City of Ann Arbor

Composting RFP # 730

Page 83

LIVING WAGE REQUIREMENTS

If a "covered employer," Contractor will comply with all the requirements of Chapter 23 of the

Ann Arbor City Code (Sections 1:811 B 1:821), in particular but not limited to the following

sections thereof:

1:813. Definitions.

For purposes of this Chapter, the following definitions shall apply:

(1)

"Contractor/vendor" is a person or entity that has a contract with the City

primarily for the furnishing of services where the total amount of the contract or

contracts with the City exceeds $10,000 for any 12month period.

"Contractor/vendor" does not include a person or entity that has a contract with

the City primarily for the purchase of goods or property, or for the lease of goods

or property to or from the City.

(2)

"Covered Employee" means a person employed by a covered employer to

perform services which are covered or funded by the contract with or grant from

the City; provided, however, that persons who are employed pursuant to federal,

state or local laws relating to prevailing wages shall be exempt from this

Chapter.

(3)

"Covered Employer" means a contractor/vendor or grantee that has not been

granted an exemption from this Chapter pursuant to Section 1:817.

(4)

"Employee" means an individual who provides personal services performed for

wages under any contract calling for the performance of personal services,

whether written or oral, express or implied. The term "employee" does not

include any individual who volunteers to perform services for an employer if

(a)

The individual receives no compensation or is paid expenses, reasonable

benefits, or a nominal fee to perform the services for which the individual

volunteered; and

(b)

Such services are not the same type of services which the individual is

employed to perform for such employer.

(5)

"Employee Health Benefits" or "Health Benefits" means providing health care

benefits for employees (or employees and their dependents) at employer cost or

making an employer contribution toward the purchase of such health care

benefits for employees (or employees and their dependents), provided that the

employer cost or contribution equals no less than $1 an hour for the average

work week of such employee, and provided further that any employee payment

or contribution toward health care shall not exceed 50 cents an hour for the

average work week for such employee.

(6)

"Grant" means any form of financial assistance to a "Grantee" as set forth and

City of Ann Arbor

Composting RFP # 730

Page 84

defined in Section 1:813(7). "Grant" does not include financial assistance used

for the purchase or lease of property or other nonpersonnel costs.

(7)

"Grantee" is a person or entity that is a recipient of any financial assistance from

the City in the form of any federal, state or local grant program administered by

the City, revenue bond financing, tax increment financing, tax abatement, tax

credit, direct grant, or any other form of financial assistance that exceeds

$10,000 for any 12month period, including any contractors, subcontractors, or

leaseholders of the grantee whose contract, subcontract or lease with the

grantee exceeds $10,000 for any 12month period.

(8)

"Living Wage" means a wage equal to the levels established in Section 1:815.

(9)

"Person" means any individual, copartnership, corporation, association, club,

joint adventure, estate, trust, and any other group or combination acting as a

unit, and the individuals constituting such group or unit.

(10) "$10,000 for any 12 month period" is computed by taking the total amount of

the contract, grant or loan and dividing it by the number of months the contract,

grant or loan covers.

1:814. Applicability.

(1)

This Chapter shall apply to any person that is a contractor/vendor or grantee as

defined in Section 1:813 that employs or contracts with five (5) or more

individuals; provided, however, that this Chapter shall not apply to a nonprofit

contractor/vendor or nonprofit grantee unless it employs or contracts with ten

(10) or more individuals.

(2)

This Chapter shall apply to any grant, contract, or subcontract or other form of

financial assistance awarded to or entered into with a contractor/vendor or

grantee after the effective date of this Chapter and to the extension or renewal

after the effective date of this Chapter of any grant, contract, or subcontract or

other form of financial assistance with a contractor/vendor or grantee.

1:815. Living Wages Required.

(1)

Every contractor/vendor or grantee, as defined in Section 1:813, shall pay its

covered employees a living wage as established in this Section.

(a)

For a covered employer that provides employee health care to its

employees, the living wage shall be $9.42 an hour, or the adjusted

amount hereafter established under Section 1:815(3).

(b)

For a covered employer that does not provide health care to its

employees, the living wage shall be $10.91 a hour, or the adjusted

amount hereafter established under Section 1:815(3).

City of Ann Arbor

Composting RFP # 730

Page 85

(2)

In order to qualify to pay the living wage rate for covered employers providing

employee health care under subsection 1:815(1)(a), a covered employer shall

furnish proof of said health care coverage and payment therefore to the City

Administrator or his/her designee.

(3)

The amount of the living wage established in this Section shall be adjusted

upward no later than April 30, 2005, and every year thereafter by a percentage

equal to the percentage increase, if any, in the federal poverty guidelines as

published by the United States Department of Health and Human Services for the

years 2003 and 2004. Subsequent annual adjustments shall be based upon the

percentage increase, if any, in the United States Department of Health and

Human Services poverty guidelines when comparing the prior calendar year's

poverty guidelines to the present calendar year's guidelines. The applicable

percentage amount will be converted to an amount in cents by multiplying the

existing wage under Section 1.815(1)(b) by said percentage, rounding upward to

the next cent, and adding this amount of cents to the existing living wage levels

established under Sections 1:815(1)(a) and 1:815(1)(b). Prior to April 1 of each

calendar year, the City will notify any covered employer of this adjustment by

posting a written notice in a prominent place in City Hall, and, in the case of a

covered employer that has provided an address of record to the City, by a

written letter to each such covered employer.

1:816. Employees Covered.

A covered employer shall pay each of its employees performing work on any covered

contract or grant with the City no less than a living wage as defined in Section 1:815.

1:817. Exemptions.

Notwithstanding any other provisions in this Chapter, the following exemptions shall apply:

(1)

Sweat equity contracts for home construction or rehabilitation grant will not

subject the grantee to coverage under this Chapter. Housing construction or

rehabilitation grants or contracts that are passed through to a contractor in their

entirety are exempt from the provisions of this Chapter, even when the City

participates in the selection of the contractor.

(2)

For any contract or grant, the City Council may grant a partial or complete

exemption from the requirements of this Chapter if it determines one of the

following:

(a)

To avoid any application of this Chapter that would violate federal, state

or local law(s); or

(b)

The application of this Chapter would cause demonstrated economic

harm to an otherwise covered employer that is a nonprofit organization,

and the City Council finds that said harm outweighs the benefits of this

Chapter; provided further that the otherwise covered nonprofit employer

City of Ann Arbor

Composting RFP # 730

Page 86

shall provide a written plan to fully comply with this Chapter within a

reasonable period of time, not to exceed three years, and the City Council

then agrees that granting a partial or complete exemption is necessary to

ameliorate the harm and permit the nonprofit organization sufficient time

to reach full compliance with this Chapter.

(3)

A loan shall be considered a grant under this ordinance only to the extent that a

loan is provided at below market interest rates and then only the difference

between the amount of the loan and the present value of the payments

thereunder, discounted over the life of the loan, shall be treated as financial

assistance under this ordinance.

(4)

A payment of funds for the purpose of purchasing services, property, or goods

on behalf of individuals being assisted by a covered employer or potentially

covered employer (sometimes known as a "pass through" grant) that is used for

said purchases shall not be considered a grant; such funds shall be considered a

grant only to the extent that any such funds are retained by the covered

employer or potentially covered employer to provide financial assistance and

support to its own operations.

1:818. Monitoring and Enforcement.

(1)

Every covered employer shall agree to the payment of a living wage as a

condition of entering into or renewing a covered contract or grant with the City,

shall agree to post a notice regarding the applicability of this Chapter in every

work place or other location in which employees or other persons contracted for

employment are working, and shall agree to provide payroll records or other

documentation as deemed necessary within ten (10) business days from the

receipt of the City's request. All City contracts and grants covered by this

Chapter shall provide that a violation of the living wage requirements of this

Chapter shall be a material breach of the contract or grant. The Human Rights

Office of the City shall monitor the compliance of each contractor/vendor or

grantee under procedures developed by the Human Rights Office and approved

by the City Administrator.

(2)

Each covered employer shall submit to the Human Rights Office of the City

information regarding number of employees and applicable wage rates of its

employees covered by this Chapter in such manner as requested by that office.

At the request of the Human Rights Office, any contractor/vendor or grantee

shall provide satisfactory proof of compliance with the living wage provisions of

this Chapter.

(3)

Any person may submit a complaint or report of a violation of this Chapter to the

Human Rights Office. Upon receipt of such a complaint or report, the Human

Rights Office shall investigate to determine if there has been a violation.

City of Ann Arbor

Composting RFP # 730

Page 87

1:819. Penalties and Enforcement.

(1)

A violation of any provision of this Chapter is a civil infraction punishable by a

fine of not more than $500.00 plus all costs of the action. The Court may issue

and enforce any judgment, writ, or order necessary to enforce this Chapter,

including payment to the affected employee or employees of the difference

between wages actually paid and the living wage that should have been paid,

interest, and other relief deemed appropriate.

(2)

Each day upon which a violation occurs shall constitute a separate violation.

(3)

In addition to enforcement under Subsections (1) and (2), the City shall have the

right to modify, terminate, and/or seek specific performance of any contract or

grant with an affected covered employer or to cancel, terminate or suspend the

contract in whole or in part and/or to compostables any further payments under

the contract or grant;

(4)

Nothing contained in this Chapter shall be construed to limit in any way the

remedies, legal or equitable, which are available to the City or any other person

for the correction of violations of this Chapter

1:821. Other Provisions.

(1)

No affected covered employer shall reduce the compensation, wages, fringe

benefits, or leave available to any covered employee or person contracted for

employment in order to pay the living wage required by this Chapter.

(2)

No employee covered by a federal, state or local law requiring the payment of

prevailing wages shall be covered by this Chapter.

(3)

This Chapter shall not be construed to apply to any person or entity that is a tax

exempt religious, educational or charitable organization under state or federal

law, but is not a contractor/vendor or grantee as defined in Section 1:813.

(4)

This Chapter shall not be applicable to the establishment and/or continuation of

the following if developed specifically for high school and/or college students:

(a)

A bona fide training program;

(b)

A summer or youth employment program;

(c)

A work study, volunteer/public service, or internship program.

City of Ann Arbor

Composting RFP # 730

Page 88

Exhibit E

Human Rights Forms

City of Ann Arbor Procurement Office

INSTRUCTIONS FOR CONTRACTORS

for completing CONTRACT COMPLIANCE FORMS

City Policy

The “non-discrimination in contracts” provision of the City Code, (Chapter 112, Section 9:161)

requires contractors/vendors/grantees doing business with the City not to discriminate on the

basis of actual or perceived race, color, religion, national origin, sex, age, condition of

pregnancy, marital status, physical or mental limitations, source of income, family

responsibilities, educational association, sexual orientation, gender identity or HIV status

against any of their employees, any City employee working with them, or any applicant for

employment. It also requires that the contractors/vendors/grantees include a similar provision

in all subcontracts which they execute for City work or programs.

This Ordinance further requires that each prospective contractor/vendor submit employment

data to the City showing current total employee breakdown by occupation, race and gender.

This allows the Procurement Office to determine whether or not the contractor/vendor has a

workforce which is reflective of the availability of women and under-represented minorities

within the contractor’s labor recruitment area (the area where they can reasonably be expected

to recruit employees). This data is provided to the City on the Procurement Office

Contract Compliance Forms (attached).

To complete the form:

1) If a company has more than one location, then that company must

complete 2 versions of the form.

•

Form #1 should contain the employment data for the entire

corporation.

•

Form #2 should contain the employment data for those employees:

• who will be working on-site;

• in the office responsible for completing the contract; or,

• in the case of non-profit grantees, those employees working on

the project funded by the City grant(s).

2) If the company has only one location, fill out Form #1 only.

3) Complete all data in the upper section of the form including the name of the person

who completes the form and the name of the company/organization’s president.

4) Complete the Employment Data in the remainder of the form. Please be sure to

complete all columns including the Total Columns on the far right side of the form, and

the Total row and Previous Year Total row at the bottom of the form.

5) Return the completed form(s) to your contact in the City Department for whom you

City of Ann Arbor

Composting RFP # 730

Page 89

will be conducting the work.

For assistance in completing the form, contact:

Dee Lumpkin, Procurement Office of the City of Ann Arbor

734-79

4

If a contractor is determined to be out of compliance, the Human Rights Office will work with

them to assist them in coming into compliance.

City of Ann Arbor

Composting RFP # 730

Page 90

Exhibit F

Performance Bond

1.

of

(referred to as "Principal"), and

, a corporation duly authorized to do business in the State of Michigan (referred to as "Surety"),

are bound to the City of Ann Arbor, Michigan (referred to as "City"), for

$

, the payment of which Principal and Surety bind

themselves, their heirs, executors, administrators, successors and assigns, jointly and severally,

by this bond.

2.

The Principal has entered a written contract with the City dated

,

200

,

for:

and this bond is given for that contract in compliance with Act No. 213 of the Michigan Public

Acts of 1963, as amended, being MCL 129.201 et seq.

3.

Whenever the Principal is declared by the City to be in default under the contract, the Surety

may promptly remedy the default or shall promptly:

(a) complete the contract in accordance with its terms and conditions; or

(b) obtain a bid or bids for submission to the City for completing the contract in accordance with

its terms and conditions, and upon determination by Surety of the lowest responsible bidder,

arrange for a contract between such bidder and the City, and make available, as work progress-

es, sufficient funds to pay the cost of completion less the balance of the contract price; but not

exceeding, including other costs and damages for which Surety may be liable hereunder, the

amount set forth in paragraph 1.

4.

Surety shall have no obligation to the City if the Principal fully and promptly performs under the

contract.

5.

Surety agrees that no change, extension of time, alteration or addition to the terms of the

contract or to the work to be performed thereunder, or the specifications accompanying it shall

in any way affect its obligations on this bond, and waives notice of any such change, extension

of time, alteration or addition to the terms of the contract or to the work, or to the specifications.

SIGNED AND SEALED this

day of

, 200 .

____________________________________________

(Name of Surety Company)

_____________________________________________

(Name of Principal)

By__________________________________________

(Signature)

By___________________________________________

(Signature)

Its__________________________________________

(Title of Office)

Its___________________________________________

(Title of Office)

Approved as to form:

____________________________________________

Stephen K. Postema, City Attorney

Name and address of agent:

_____________________________________________

_____________________________________________

City of Ann Arbor

Composting RFP # 730

Page 91

CITY OF ANN ARBOR PROCUREMENT OFFICE

Form #1

CONTRACT COMPLIANCE FORM

Questions about this form?

Call 734-794-6576

Entire Organization (Totals for All Locations where applicable)

Name of Company/Organization______________________________________________________________________________ Date Form Completed_____________________________________

Name and Title of Person Completing this Form_______________________________________________ Name of President __________________________________________________________

Address_________________________________________________________________________________

County_____________________ Phone #__________________________________

(Street address)

(City)

(State)

(Zip)

(Area Code)

Fax#_____________________________________________ Email Address__________________________________________________________________________________________________

(Area Code)

EMPLOYMENT DATA

Job Categories

Number of Employees

(Report employees in only one category)

Male

Female

White

Black or

African

American

Asian

Hispanic

or Latino

Native

Hawaiian or

Other Pacific

Islander

American Indian

or Alaska Native

White

Black or

African

American

Asian

Hispanic or

Latino

Native Hawaiian

or Other Pacific

Islander

American Indian

or

Alaskan

Native

TOTAL

COLUMNS

A-M

A

B

C

D

F

G

H

I

J

K

L

M

Exec/Sr. Level

Officials

Supervisors

Professionals

Technicians

Sales

Admin. Support

Craftspeople

Operatives

Service Workers

Laborers/Helper

Apprentices

Other

TOTAL

PREVIOUS

YEAR TOTAL

9/03

City of Ann Arbor

Composting RFP # 730

Page 92

CITY OF ANN ARBOR PROCUREMENT OFFICE

Form #2

CONTRACT COMPLIANCE FORM

Questions about this form?

Call 734-794-6576

Local Office (Only those employees that will do local or on-site work, if applicable)

Name of Company/Organization______________________________________________________________________________ Date Form Completed_____________________________________

Name and Title of Person Completing this Form_______________________________________________ Name of President __________________________________________________________

Address_________________________________________________________________________________

County_____________________ Phone #__________________________________

(Street address)

(City)

(State)

(Zip)

(Area Code)

Fax#_____________________________________________ Email Address__________________________________________________________________________________________________

(Area Code)

EMPLOYMENT DATA

Job Categories

Number of Employees

(Report employees in only one category)

Male

Female

White

Black or

African

American

Asian

Hispanic

or Latino

Native

Hawaiian or

Other Pacific

Islander

American Indian

or Alaska Native

White

Black or

African

American

Asian

Hispanic or

Latino

Native Hawaiian

or Other Pacific

Islander

American Indian

or

Alaskan

Native

TOTAL

COLUMNS

A-M

A

B

C

D

F

G

H

I

J

K

L

M

Exec/Sr. Level

Officials

Supervisors

Professionals

Technicians

Sales

Admin. Support

Craftspeople

Operatives

Service Workers

Laborers/Helper

Apprentices

Other

TOTAL

PREVIOUS

YEAR TOTAL

City of Ann Arbor

LIVING WAGE ORDINANCE

DECLARATION OF COMPLIANCE

The Ann Arbor Living Wage Ordinance (Section 1:811-1:821 of Chapter 23 of Title I of the Code) requires that employers

providing services to the City or recipients of grants for financial assistance (in amounts greater than $10,000 in a twelve-

month period of time) pay their employees who are working on the City project or grant, a minimum level of compensation

known as the Living Wage. This wage must be paid to the employees for the length of the contract/project.

Companies employing fewer than 5 persons and non-profits employing fewer than 10 persons are exempt from the

Ordinance. If this exemption applies to your firm, please check below:

______ This company is exempt due to the fact that we employ or contract with fewer than 5 individuals.

______ This non-profit agency is exempt due to the fact that we employ or contract with fewer than 10

employees.

The Ordinance requires that all contractors/vendors and/or grantees agree to the following terms:

a)

To pay each of its employees performing work on any covered contract or grant with the City, no less than the

living wage, which is defined as $11.71/hour when health care is provided, or no less than $13.06/hour for those

employers that do not provide health care. It is understood that the Living Wage will be adjusted upward each

year on April 30, and covered employers will be required to pay the adjusted amount thereafter. The rates stated

above include the adjustment for 2009.

b)

Please check the boxes below which apply to your workforce:

Employees who are assigned to any covered City project or grant will be paid at or above the applicable living

wage without health benefits Yes______ No_____

OR

Employees who are assigned to any covered City project or grant will be paid at or above the applicable living

wage with health benefits Yes_____ No_____

c)

To post a notice approved by the City regarding the Living Wage Ordinance in every work place or other location

in which employees or other persons contracting for employment are working.

d)

To provide the City payroll records or other documentation as requested; and,

e)

To permit access to work sites to City representatives for the purposes of monitoring compliance, investigating

complaints or non-compliance.

The undersigned authorized representative hereby obligates the contractor/vendor or grantee to the above stated

conditions under penalty of perjury and violation of the Ordinance.

Company Name

Address City State Zip

Signature of Authorized Representative

Phone (area code)

Type or Print Name and Title

Email address

Date signed

Questions about this form? Please contact:

Procurement Office City of Ann Arbor

Phone: 734/794-6576 Fax:734/994-1795

LW-2

→ NEW RATE EFFECTIVE APRIL 30, 2009←

LIVING WAGE ORDINANCE – CITY OF ANN ARBOR

$11.71 per hour $13.06 per hour

if the employer provides health

if the employer does NOT

care benefits*

provide health care benefits*

Employers providing services to or for the City of Ann Arbor or

recipients of grants or financial assistance from the City of Ann Arbor

for a value of more than $10,000 in a twelve-month period of time

must pay those employees performing work on a City of Ann

Arbor contract or grant, the above living wage.

ENFORCEMENT

The City of Ann Arbor may recover back wages either administratively or through

court action for the employees that have been underpaid in violation of the law.

Persons denied payment of the living wage have the right to bring a civil action

for damages in addition to any action taken by the City.

Violation of this Ordinance is punishable by fines of not more than $500/violation

plus costs, with each day being considered a separate violation. Additionally, the

City of Ann Arbor has the right to modify, terminate, cancel or suspend a contract

in the event of a violation of the Ordinance.

* Health Care benefits includes those paid for by the employer or making an employer

contribution toward the purchase of health care. The employee contribution must not exceed

$.50 an hour for an average work week; and the employer cost or contribution must equal no less

than $1/hr for the average work week.

The Law Requires Employers to Display This Poster Where

Employees Can Readily See It.

For Additional Information or to File a Complaint

Contact:

Dee Lumpkin, Procurement Assistant

734/794-6576 or dlumpkin@a2gov.org LW-1

City of Ann Arbor

Composting RFP # 730

Page 95

CITY OF ANN ARBOR

DEPARTMENT OF

SOLID WASTE MANAGEMENT

Request for Proposals

Composting Facility Operations

ATTACHMENT C

City of Ann Arbor

Composting RFP # 730

Page 96

Exhibit A

Site Drawings

City of Ann Arbor

Composting RFP # 730

Page 99

Exhibit B

MDEQ Permit Forms

EQP5228 (Rev 03/08)

MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

WASTE AND HAZARDOUS MATERIALS DIVISION

YEAR 2008 FOR DEQ USE ONLY

COMPOSTING FACILITY REGISTRATION FORM

Registration is required under authority of Section 11521(4) of Part 115, of the Natural

Resources and Environmental Protection Act, 1994 PA 451, as amended. Failure to

comply with the provisions of Part 115 may result in fines and/or imprisonment.

FOR ADDITIONAL INFORMATION, CONTACT THE MICHIGAN DEPARTMENT OF

ENVIRONMENTAL QUALITY, WASTE AND HAZARDOUS MATERIALS DIVISION,

STORAGE TANK AND SOLID WASTE SECTION, AT 517-241-2924

Date Received by DEQ:

Received by:

Site Map:

Yes

No

Fee:

Yes

No

COMPOSTING FACILITY PROPERTY OWNER

1. Legal Company Name or Municipality:

2. Area Code and Telephone Number:

3. Mailing Address:

4. Site Address:

5. County:

6. Legal description of Property, including Section, Township, and Range:

7. E-mail Address:

8. Property Owner(s) (Print or Type):

9. Signature(s):

COMPOSTING FACILITY DESCRIPTION AND OPERATOR

10. Specific Site Name:

11. Operator of the Composting Facility:

12. Mailing Address:

13. Web site:

14. Area Code and Telephone Number:

15. E-mail Address:

16. Describe how to find the site:

SITE MAP

17. Attach a detailed site map of the composting facility. The site map must include dimensions

and boundaries of existing compost piles, storage areas, surface water including retention

ponds, and structures.

Site map enclosed:

Yes No

EQP5228 (Rev 03/08)

COMPOSTABLE MATERIAL RECEIVED AND DISTRIBUTED

18. Number of cubic yards of yard clippings and other compostable material

brought to site during previous year:

19. Number of cubic yards of yard clippings and other compostable material

removed from site during previous year:

20. Number of cubic yards of yard clippings and other compostable material,

finished compost, and residuals on site at the end of the previous year:

21. Number of cubic yards of yard clippings and other compostable material

currently stored on site:

22. If a conversion factor was used to convert tons of material to cubic yards,

what conversion factor was used and for what material:

cubic yards

cubic yards

cubic yards

cubic yards

cubic yards of

per ton

cubic yards of

per ton

DATE COMPOSTING FACILITY BEGAN (WILL BEGIN) OPERATION

23. Date the composting facility began or will begin accepting yard clippings:

Date:

I, the undersigned property owner, swear and affirm, UNDER PENALTY OF LAW, that the statements contained herein are true and correct

and that the composting of yard clippings is done in accordance with the requirements of Act 451. I certify under penalty of law that the

information contained on this form, to the best of my knowledge and belief, is true, accurate, and complete. I am aware that there are

significant penalties for submitting false information, including the possibility of a fine and imprisonment.

PRINT NAME:

DATE:

SIGNATURE: ____________________________________________________________

PLEASE MAIL FORM, SITE MAP AND $600 REGISTRATION FEE TO:

REGULAR DELIVERY:

OVERNIGHT DELIVERY:

MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

OFFICE OF FINANCIAL MANAGEMENT

OFFICE OF FINANCIAL MANAGEMENT

REVENUE CONTROL/CASHIER’S OFFICE

REVENUE CONTROL/CASHIER’S OFFICE

P.O. BOX 30657

CONSTITUTION HALL

LANSING, MICHIGAN 48909-8157

525 WEST ALLEGAN STREET

LANSING, MI 48933

OPTIONAL INFORMATION

This section may be completed if you would like the DEQ to list your composting services in the DEQ Recycled Materials

Market Directory found at http://www.michigan.gov/deqrmmd.

V1. Would you like information about your composting facility included in the Recycled Materials Market Directory? If you mark no, do

not complete V2 and V3.

Yes No

V2. Describe who may deliver yard clippings to the composting facility:

V3. Additional notes:

EQP5228 (Rev 03/08)

INSTRUCTIONS FOR COMPLETING THE REGISTERED COMPOSTING FACILITY FORM

PLEASE NOTE: ALL FIELDS (EXCEPT OPTIONAL) MUST BE COMPLETED. IF A FIELD DOES NOT APPLY, PLEASE

PUT “0,” “N/A,” ETC. REGISTRATION FORMS MISSING INFORMATION WILL BE RETURNED.

IN ADDITION TO THE SUBMITTAL OF THIS FORM AND REGISTRATION FEE AND THE DEQ’S DEPOSIT OF THE FEE,

YOU MUST COMPLY WITH REPORTING, LOCATION AND OPERATING REQUIREMENTS ACCORDING TO

SECTION 11521(4) OF PART 115 TO QUALIFY AS A REGISTERED COMPOSTING FACILITY. THE DEQ WILL RESPOND

IN WRITING TO NOTIFY YOU OF RECIEPT OF YOUR FORM. YOUR COMPOSTING FACILITY WILL BE INCLUDED IN A

REGISTERED COMPOSTING FACILITY LIST THAT CAN BE FOUND AT http://www.mighigan.gov/deqrecycling.

DOCUMENTS TO SUBMIT: Submit $600 Site Registration Fee with original, completed, and signed registration form to:

MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

OFFICE OF FINANCIAL MANAGEMENT

REVENUE CONTROL/CASHIER’S OFFICE

P.O. BOX 30657

LANSING, MICHIGAN 48909-8157

FOR OVERNIGHT DELIVERY:

MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

OFFICE OF FINANCIAL MANAGEMENT

REVENUE CONTROL/CASHIER’S OFFICE

CONSTITUTION HALL

525 WEST ALLEGAN STREET

LANSING, MI 48933

Send check or money order (no cash) made payable to the STATE OF MICHIGAN. Your registration form WILL NOT be

accepted if it is missing information or does not include a site map and the registration fee. The registration is for a term of

3 years.

COMPOSTING FACILITY PROPERTY OWNER

1. Legal Company Name or Municipality: Enter the name of the individual, partnership, corporation, association,

governmental entity, or other legal entity who owns the property. The owner(s) of the property upon which the composting

facility business is located or their registered agent must submit the registration.

2. Area Code and Telephone Number: Enter telephone number of the company/municipality that owns the property.

3. Mailing Address: Enter the address where correspondence to the operator should be sent.

4. Site Address: The address of the composting facility even if the same as the mailing address for the property owner.

Please submit a plat map if no actual address has been assigned to the site.

5. County: Enter the County where the facility is located.

6. Legal description of Property, including Section, Township, and Range: Enter the legal description of the property

including Section, Township, and Range. Attach additional pages if necessary.

7. E-mail Address: Enter the e-mail address where electronic correspondence to the property owner could be sent.

8. Property Owner(s): Name(s) of the person(s) who own the property must be printed.

9. Signature(s): Person(s) who own the property must sign their name(s).

COMPOSTING FACILITY DESCRIPTION AND OPERATOR

10. Specific Site Name: Enter the business name of the composting facility.

EQP5228 (Rev 03/08)

11. Operator of the Composting Facility: The name(s) of the person(s) who operate the composting facility even if the same

as the property owner(s).

12. Mailing Address: Enter the address where correspondence to the operator should be sent.

13. Web site: If applicable, enter the Web site where additional information about the composting facility can be obtained.

14. Area Code and Telephone Number: Enter the telephone number at which the operator can be contacted.

15. E-mail Address: Enter the e-mail address where electronic correspondence to the operator could be sent.

16. Describe how to find the site: Include landmarks or other description to help find the location of the composting activity.

SITE MAP

17. Attach a detailed site map that shows acreage of composting facility. The site map must include dimensions and

boundaries of existing compost piles, storage areas, surface water including retention ponds, and structures. Check “yes” to

indicate you have enclosed the site map.

COMPOSTABLE MATERIAL RECEIVED AND DISTRIBUTED

Complete the table with the appropriate information. If actual volumes are unknown please estimate the requested volumes. It

is expected that the volumes reported will reflect a reasonable natural volume reduction as a result of the composting process.

18.

Number of cubic yards of yard clippings and other compostable material brought to site during previous year.

19.

Number of cubic yards of yard clippings and other compostable material removed from site during previous year.

20.

Number of cubic yards of yard clippings and other compostable material, finished compost, and residuals on site at

the end of the previous year.

21.

Number of cubic yards of yard clippings and other compostable material currently stored on site.

22.

If a conversion factor was used to convert tons of material to cubic yards, what conversion factor was used and for

what material.

DATE COMPOSTING FACILITY BEGAN (WILL BEGIN) OPERATION

23. Date the composting facility began or will begin accepting yard clippings: Enter the month, day, and year the facility

first accepted yard clippings from another location or the month, day, and year the facility will begin accepting yard clippings.

SIGNATURE: Either the property owner where the composting facility is located or the registered agent may sign. If the

registered agent of the property owner signs, you must provide authorization to do so from the property owner. If multiple

property owners, all those with any ownership interest or their registered agent must sign the application.

VOLUNTARY INFORMATION:

V1. Would you like information about your composting facility included in the Recycled Materials Market Directory

(RMMD)? Mark “yes” if you would like your composting facility listed in the RMMD on our Web site at

http://www.michigan.gov/deqrmmd. Contact Lucy Doroshko, Environmental Science and Services Division, at 517-373-1322 or

e-mail doroshkl@michigan.gov with questions about the RMMD listing.

V2. Describe who may deliver yard clippings to the composting facility: Answer the following questions as applicable to

your facility. Is the facility open to the public? Is it limited to residents of a specific municipality, township, or county? Is it open

to landscaping or other businesses to deliver yard clippings or buy compost? Does the facility only accept yard clippings from

specific haulers with contracts with the facility? What are the hours of operation? Do you offer hauling services?

V3. Additional notes: Include any additional information you would like included in the RMMD. For example, do you accept

other materials for composting? Do you provide finished compost free to residents or sell finished product? Is there a minimum

or maximum amount that can be brought in at one time?

EQP 5229 (Rev 03/08)

MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY

WASTE AND HAZARDOUS MATERIALS DIVISION

FOR DEQ USE ONLY

Date Received by DEQ: _________________

Received by: __________________________

COMPOSTING FACILITY ANNUAL REPORTING FORM

Annual reporting is required to be submitted to the DEQ within 30 days after the end of each fiscal year under authority of Section 11521(4) of

Part 115, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended. Failure to comply with the provisions of Part 115

may result in fines and/or imprisonment. NOTE: The annual reporting period is the state’s fiscal year (October 1 through September 30); and this

form must be submitted to the DEQ by October 30.

FOR ADDITIONAL INFORMATION, CONTACT THE MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY, WASTE AND HAZARDOUS

MATERIALS DIVISION, STORAGE TANK AND SOLID WASTE SECTION, AT 517-241-2924

COMPOSTING FACILITY AND CONTACT

1. Legal Company Name or Municipality:

2. Mailing Address:

3. Site Address:

4. County:

5. Composting Facility Contact:

6. Area Code and Telephone Number:

7. E-mail Address:

8. Reporting year: October 1, 20 to September 30, 20

9. Size of composting facility: acres

COMPOSTABLE MATERIAL RECEIVED AND DISTRIBUTED

10. Number of cubic yards of yard clippings and other compostable material onsite as of

October 1 of the previous year:

cubic yards

11. Number of cubic yards of yard clippings and other compostable material brought to the

site from October 1 of previous year to September 30:

cubic yards

12. Number of cubic yards of yard clippings and other compostable material removed from

site from October 1 to September 30:

cubic yards

13, Number of cubic yards of yard clippings and other compostable material, finished

compost, and residuals on site at the end of September 30:

cubic yards

14. CONVERSION FACTOR: If a conversion factor was used to convert tons of material to cubic yards, what

conversion factor was used and for what material:

Check here if no conversion factor was used

Material:

Conversion Factor Calculation:

cubic yards=1 ton

cubic yards=1 ton

I, the undersigned property owner or authorized agent, swear and affirm, under penalty of law that the information contained on this form,

to the best of my knowledge and belief, is true, accurate, and complete. I am aware that there are significant penalties for submitting false

information, including the possibility of a fine and imprisonment.

PRINT NAME: ____________________________________________________________ DATE: ____________________________________

SIGNATURE: ____________________________________________________________

EQP 5229 (Rev 03/08)

INSTRUCTIONS FOR COMPLETING THE COMPOST FACILITY ANNUAL REPORTING FORM

PLEASE NOTE: ALL FIELDS MUST BE COMPLETED. FORMS MISSING INFORMATION WILL BE RETURNED.

All DEQ registered composting facilities must submit annual reports that summarize the volume of yard

clippings and other compostable materials that were composted during the state’s fiscal year (October 1

through September 30) on a form provided by the DEQ. Reports must be submitted to the DEQ by October 30.

Submit reports to:

Mr. Mathew Flechter

Department of Environmental Quality

Waste and Hazardous Materials Division

PO Box 30241

Lansing, Michigan 48909-7741

COMPOSTING FACILITY PROPERTY OWNER

1. Legal Company Name or Municipality: Enter the name of the individual, partnership, corporation, association,

governmental entity, or other legal entity who owns the property. The owner(s) of the property upon which the

composting facility business is located or their registered agent must submit the annual reporting form.

2. Mailing Address: Enter the address where correspondence to the operator should be sent.

3. Site Address: The address of the composting facility. Enter SAME if it is the same as the mailing address.

4. County: Enter the County where the facility is located.

5. Composting Facility Contact: The name(s) of the person(s) who are to be contacted if questions about the report.

6. Area Code and Telephone Number: Enter the telephone number at which the operator can be contacted.

7. E-mail Address: Enter the e-mail address where electronic correspondence to the facility contact may be sent.

8. Date that this report covers.

9. Include total acreage of composting facility including, staging, storage, and active composting areas.

COMPOSTABLE MATERIAL RECEIVED AND DISTRIBUTED

Complete the table with the appropriate information. If actual volumes are unknown please estimate the requested

volumes. It is expected that the volumes reported will reflect a reasonable natural volume reduction of 50% as a result of

the composting process.

10. Number of cubic yards of yard clippings and other compostable materials on site of the beginning of the fiscal year

reporting cycle (e.g. October 1 of previous year).

11. Number of cubic yards of yard clippings and other compostable material brought to site during previous year.

12. Number of cubic yards of yard clippings and other compostable material removed from site during previous year.

13. Number of cubic yards of yard clippings and other compostable material, finished compost, and residuals on site at

the end of the previous year.

14. If a conversion factor was used to convert tons of material to cubic yards, what conversion factor was used and for

what material. If conversions were done for more than two materials attached a separate sheet with the additional

conversion rates for each additional material.

SIGNATURE: Either the property owner where the composting facility is located or the registered agent may sign. If a

registered agent of the property owner signs the form, the DEQ must have a copy of that authorization on file. If multiple

property owners, all those with any ownership interest or their registered agent must sign the application.

3/26/08

Compost Volume Tracker

Section 11521(4)(c) of Part 115, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended,

requires Department of Environmental Quality (DEQ), registered composting facilities to keep records to document that

they have not accumulated yard clippings over 3 years unless they have the capacity to compost the yard clippings and

they have received DEQ approval for a longer time period. Beginning the third year of operation, and each year

thereafter, a facility needs to be able to document that they have been able to transfer off-site not less than 75 percent by

weight or volume of the amount of yard clippings and compost that was on-site at the beginning of the calendar year.

The Compost Volume Tracker is an example of a record that may be used to show compliance with these requirements.

A composting facility may develop their own format that better fits their needs. The form should contain all the information

contained in this form. The information from this form can be used to fill out the annual reporting form (EQP 5229) that

must be submitted to the DEQ by October 30 of each year. This form should NOT be sent to the DEQ as part of your

yearly reporting requirements but, if requested, it or one similar to it, should be made available to staff during a site

inspection.

Additional guidance to assist in composting yard clippings can be found in the Frequently Asked Questions document

posted on the composting web site located by going to www.Michigan.gov/DEQ by clicking on, “Waste,” then “Solid

Waste,” and then “Composting.”

1) Reporting year:

October 1, 20_____ to September 30, 20_____

2) Legal Company Name or Municipality:

3) Site Address:

4) Name of person preparing report:

5) Year and date that the site first

started to collect yard waste:

6) Number of cubic yards of yard clippings, other compostable material, and residuals onsite

as of October 1 of the previous year:

_____________

Cubic Yards

7) Number of cubic yards of yard clippings and other compostable material brought to the

site from October 1 of previous year through September 30:

_____________

Cubic Yards

8) Volume of compost removed from the site from October 1 through September 30:

_____________

Cubic Yards

9) Volume of residuals from the compost removed from the site from October 1 through

September 30:

_____________

Cubic Yards

10) Total volume on site at the end of the year not accounting for natural volume reduction

(line 6 + line 7 - line 8 - line 9):

_____________

Cubic Yards

11) Total measured volume on site on September 30:

_____________

Cubic Yards

12) Calculated natural volume reduction (line 10 divided by line 11):

_____________

Percentage

13) If a conversion factor was used to convert tons of

material to cubic yards, what conversion factor was

used and for what material?

Material:

________ cubic yards/ton

Material:

________ cubic yards/ton

Material:

________ cubic yards/ton

3/26/08

Date

Volume of

material

brought to site

(Cubic Yards)

Source of material

(e.g. municipality

collection, landscaping

company, citizen, etc)

Volume of

material

removed from

site

(Cubic Yards)

Disposition location of

material

(e.g. sold, provided

free to residents,

location where used for

municipal projects,

etc.)

Total volume of

material on-site

(Cubic Yards)

Operational Records of __________________________________ Composting Facility

Row # ___________

Date row started_____________ Date row completed ____________

C:N Ratio (estimated or calculated; circle one) ________

Content of row (e.g. 1 part leaves, 3 parts grass, 1 part wood chips) __________________________________________

Row dimensions (e.g. height, width, and length) __________________________________________________________

Check here if lab analysis of finished product is available.

Date

Temperature

(Measurement taken in middle

of pile every 10 feet and the

average temperature recorded)

Moisture Content

(Indicate whether the material is

wet or dry)

Pile Turned

(Put an X in this column if pile was

turned on this day and initials or

name of who did it)

Guidance for Operational Records Form:

This form represents a sample format of the records that must be kept according to Section 11521(4)(d)(ii). The form can be

changed to meet your individual needs but it must contain all the information contained on this example. This form should NOT

be sent to the DEQ as part of your yearly reporting requirements but, if requested, it or a form similar to it, should be made

available to staff during a site inspection.

Composting is the aerobic, or oxygen requiring, decomposition of organic materials by microorganisms under controlled

conditions. It is the same process that decays leaves and other organic debris in nature. Composting merely controls the

conditions so that materials can decompose faster. The composting process produces heat, which drives off moisture destroys

pathogens and weed seeds, and generates carbon dioxide. With good management, it produces a minimum of odors. The

factors that influence composting include:

C:N ratio – Organic materials must be appropriately mixed to provide nutrients needed for microbial activity and growth,

including a balanced supply of carbon and nitrogen. The preferred range is between 25:1 to 30:1 but ranges between 20:1 to

40:1 will also work. The C:N ratio of the pile can either be tested at a lab or estimated using various programs on the internet.

Oxygen – Sufficient levels of oxygen must be maintained in order to minimize the conditions that facilitate the excess

growth of odor causing microbes. It is preferred that the oxygen content be maintained at a level greater than 5 percent.

Factors that decrease oxygen concentration include too much moisture, small material size that increases pile density, pile

sizes that are too large (especially piles in excess of 12 feet tall), and piles that are turned infrequently.

Moisture – Sufficient moisture must be maintained to permit biological activity without hindering aeration. The ideal

moisture range is between 50 percent and 60 percent. Moisture between 40 percent and 65 percent work but this may affect

the oxygen content or require a longer time for the materials to compost. As a rule of thumb, materials are too wet if water can

be squeezed out of a handful of material and too dry if the handful does not feel moist to the touch.

Temperature – temperatures must be maintained that encourage vigorous microbial activity. A well run composting

process will achieve temperature ranges between 130 and 140 degrees F. Temperature ranges between 110 and 150 degrees

F have also shown to be sufficient. Temperature should be taken at the middle depth of the pile, every 10 to 20 feet and the

average temperature recorded. The instrument used to measure temperature should be of sufficient length to reach the center

of the pile.

The preceding guidance was adapted from the Michigan Compost Operator Training Certificate Course and the On-Farm

Composting Handbook. Additional guidance to assist in composting yard wastes can be found in the Frequently Asked

Questions document posted on the composting web site located at www.Michigan.gov/DEQ by clicking on, “Waste,” then “Solid

Waste,” and then “Composting.”

City of Ann Arbor

Composting RFP # 730

Page 117

Exhibit D

Current Sales Prices Resolution

City of Ann Arbor

Composting RFP # 730

Page 115

Exhibit C

Current Tip Fees

Field Operations Proposed Fee Increases

2010 Budget

ACTIVITY

Cost per Unit

Current Fee

Proposed

Fee

Percent

Increase

Total

Revenue

Impact

Proposed

Eff. Date

Last Fee

Increase

*Yard Waste to Compost

Center-under 10 cubic yards-

City Residents

$11.12/CY

$10/CY

$12/CY

20%

$0

07/01/09 07/01/07

Yard Waste to Compost Center-

10 cubic yards- Non-City

Resident

$11.12/CY

$15/cubic

yard

$18/CY

20%

$0

07/01/09 07/01/07

Yard Waste to Compost Center –

over 10 cubic yards – City Resident

$33.36/CY

$17.50/CY

$22.50/CY

29%

$0

07/01/09 07/01/07

Traffic Sign Inventory Request

$40 per ½ hr $30

$35 per ½ hr

17%

$0

07/01/09 07/01/08

Traffic Signal Timing /Phasing

$45 per 1/2

$35

$40 per ½ hr

14%

$0

07/01/09

07/01/08

Street Lighting Inspections –

Plan Review

$70

$68

$70

3%

$0

07/01/09

07/01/08

City of Ann Arbor

Composting RFP # 730

Page 116

Street Lighting Inspections –

Pole Inspections

$200

$188

$200

6%

$0

07/01/09

07/01/08

Explanation: * Residents are allowed 1 cubic yard of compost per visit at no charge

Fee revisions are adjusted for current hourly wages and other expenses.

100 N. Fifth Avenue

Ann Arbor, MI 48104

www.a2gov.org

City of Ann Arbor

Legislation Text

Title

Resolution to Approve Compost Rates and to Establish Administrative Guidelines for Future

Compost Rate Changes

Memorandum

The attached resolution establishes new compost rates effective March 1, 2009, and also establishes

guidelines to allow the City Administrator to make compost rate changes in the future. During the

past year, the market pricing for compost has decreased substantially due to the weakened

economy. For example, Southeast Oakland County Resource Recovery Authority has lowered their

compost pricing from $7 per cubic yard in 2008 to $3 per cubic yard in 2009 (minimum $15) for

loaded material, or free for those who shovel.

At the same time, the city’s compost facility has produced a larger quantity of finished compost than

in the past. As the result of this, the city currentlyhas an estimated 10,000 to 15,000 cubic yards of

surplus finished compost that did not sell last year. If this material is not removed from the site by

mid-2009, it may hamper compost processing efforts, particularly in the fall of 2009. The MDEQ is

enforcing new rules that limit the time compost can sit on a site. Compost that has remained static

too long loses a significant portion of its nutrient value.

In an effort to gauge the wholesale market for this material, the city issued Invitation to Bid 3986

requesting pricing for 1,000 cubic yards or more, with pickup of the material due by March 31, 2009.

This bid was sent to approximately 100 landscape suppliers in the area. Two responses were

received on December 12, 2008:

· Environmental Reclamation: $1.00/ton for 5,000 tons (approx. $.50/cubic yard)

· Lodi Farms: $2.75/cubic yard for 1,000 cubic yards

Discussions after the bid with Environmental Reclamation indicated a willingness to pay a higher

price if they were able to pick up the material after March 31 st . Staff re-bid the remaining compost

materials under ITB 3991 with a later pick up date and no bids were received at the January 6, 2009,

opening.

The City Administrator currently has the authority to change rates within the following parameters:

· $15.00-20.00/cubic yard for up to 10 cubic yards per truck load

· $10.00-15.00/cubic yard for 10 to 24 cubic yards per load

· $8.00-13.00/cubic yard for 25 or more cubic yards per load

Currently, rates are set at the lowest points within each of these parameters. Based on market

conditions and the amount of surplus material on hand, staff is recommending that the lower end of

these parameters be adjusted as follows:

· $5.00-20.00/cubic yard for up to 10 cubic yards per truck load

· $2.50-15.00/cubic yard for 10 to 24 cubic yards per load

· $0.50-13.00/cubic yard for 25 or more cubic yards per load

File #: 09-0068, Version: 2

City of Ann Arbor

Printed on 4/1/2009

Page 1 of 3

powered by Legistar™

File #: 09-0068, Version: 2

· $0.50-13.00/cubic yard for 25 or more cubic yards per load

Staff is recommending that the Administrator set the following initial rates:

· $7.00/cubic yard for up to 10 cubic yards per truck load

· $5.00/cubic yard for 10 to 24 cubic yards per load

· $2.75/cubic yard for 25 or more cubic yards per load

Any future rate changes will be posted 15 days in advance on the City's website and at the City's

Material Recovery Facility.

We expect that these price adjustments will allow us to eliminate the current surplus inventory, and

eliminate the potential costs for removal and/or disposal of the unsold surplus in the future.

Staff also evaluated the option of providing finished compost to city residents at no charge. However,

the City-subsidized drop-off station operated by Recycle Ann Arbor currentlysells this material, and

such a give-away would cut into their revenue. Staff is recommending against that option at this

point.

With the significant reduction of market rates for finished compost, staff has initiated an evaluation of

the tip fees for incoming compostable materials. A recommendation on any necessary adjustments

to these tip fees will be brought forward as part of the budget process for the new fiscal year starting

July 1, 2009.

As part of a review of operational efficiencies, staff has also initiated an evaluation of public-private

partnership opportunities for operating the Compost Center, similar to the arrangement that is

currentlyused for operating the City's Material Recovery Facility. A proposal for this evaluation will

be brought to Council within the next 60 days.

This resolution will supercede the compost rate resolution that was passed by City Council on April 7,

2008.

Staff

Prepared by: Tom McMurtrie, Systems Planning Unit

Reviewed by: Matthew J. Kulhanek, Fleet & Facility Manager and Sue F. McCormick, Public

Services Administrator

Approved by: Roger W. Fraser, City Administrator

Body

Whereas, The city currentlyoperates a compost operation providing finished compost and mulch to

customers in Ann Arbor and the surrounding region;

Whereas, The compost center has seen a significant increase in yard waste being delivered to the

site for processing;

Whereas, As a result of increased incoming material, it is estimated that there are approximately

10,000 to 15,000 cubic yards of finished compost material for sale;

Whereas, The City’s Invitationto Bid has indicated that the City’s compost pricing structure needs to

be changed to reflect current market conditions; and

Whereas, It is important for the compost site to move its products in a timely fashion to maximize

City of Ann Arbor

Printed on 4/1/2009

Page 2 of 3

powered by Legistar™

File #: 09-0068, Version: 2

Whereas, It is important for the compost site to move its products in a timely fashion to maximize

revenues, conserve space for other compost related activities on-site and preserve the high quality of

product being sold;

RESOLVED, That City Council approves the following rate parameters for compost products effective

March 1, 2009:

Finished Compost (up to 10 cubic yards): $5.00-20.00/cubic yard

Finished Compost (10 to 24 cubic yards): $2.50-15.00/cubic yard

Finished Compost (25 cubic yards or more): $.50-13.00/cubic yard; and

RESOLVED, That City Council provide staff with the ability to adjust rates within these parameters,

and that such rate changes be approved by the City Administrator;

RESOLVED, That administrative rate changes be instituted only after providing fifteen (15) days

notice via posting at the Material Recovery Facility scalehouse and the City's website;

RESOLVED, That this resolution supersede the compost rates resolution passed by City Council on

April 7, 2008; and

RESOLVED, That City Council authorize the City Administrator to take any necessary actions to

implement this resolution.

City of Ann Arbor

Printed on 4/1/2009

Page 3 of 3

powered by Legistar™

City of Ann Arbor

Composting RFP # 730

Page 121

Exhibit

Current City – RAA DOS Operating Agreement