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R-21-03 {00117640.1} COMMERCIAL SOLID WASTE SERVICES FRANCHISE AGREEMENT BETWEEN VILLAGE OF DEERFIELD AND LAKESHORE RECYCLING SYSTEMS DATED: JANUARY 19, 2021 {00117640.1} i TABLE OF CONTENTS Page PREAMBLE 1 ARTICLE I DEFINITIONS Section 1.1 Definitions 1 Section 1.2 Rules of Construction 3 ARTICLE II SCOPE OF SERVICES Section 2.1 Commercial Services 3 Section 2.2 Private Services 3 Section 2.3 Revenue Collection 3 Section 2.4 Excluded Services 3 Section 2.5 Exempted Services 4 Section 2.6 Modification of Required Services 4 ARTICLE III TERM OF SOLID WASTE & RECYCLING SERVICES AGREEMENT Section 3.1 Term of Agreement 4 Section 3.2 Assignment 5 ARTICLE IV SOLID WASTE COLLECTION AND DISPOSAL Section 4.1 Commercial Service 5 Section 4.2 Private Service 5 Section 4.3 Schedule and Location of Collection 5 Section 4.4 Disposal 6 Section 4.5 Solid Waste Collection Data 7 ARTICLE V COMPENSATION Section 5.1 Commercial Service 7 ARTICLE VI REVENUE COLLECTION Section 6.1 Billing of Accounts 8 Section 6.2 Commercial Service 8 Section 6.3 Private Service 9 ARTICLE VII TITLE TO COMMERCIAL MATERIALS Section 7.1 Title to Commercial Materials 9 ARTICLE VIII RECYCLABLE MATERIALS Section 8.1 Recyclable Materials Collection Service 9 Section 8.2 Recycling Marketing and Education 9 {00117640.1} ii ARTICLE IX CUSTOMER SERVICE STANDARDS Section 9.1 Service Options; Changes in Service 10 Section 9.2 Office and Telephone 10 Section 9.3 Minimum Customer Service Standards 10 Section 9.4 Cleanliness………………………………………………………………. 11 Section 9.5 Customer Service Survey 12 Section 9.6 Liaison 12 ARTICLE X BREACH; EVENTS OF DEFAULT AND REMEDIES Section 10.1 Breach by Contractor 12 Section 10.2 Events of Default and Remedies of Village 12 Section 10.3 Force Majeure 14 ARTICLE XI INSURANCE AND INDEMNIFICATION Section 11.1 Insurance 14 Section 11.2 Indemnification 14 ARTICLE XII MISCELLANEOUS Section 12.1 Non-Assignability 14 Section 12.2 Equal Employment Opportunity 15 Section 12.3 Prevailing Wages 16 Section 12.4 Performance Bond 16 Section 12.5 Equipment to be Used by Contractor 17 Section 12.6 Compliance with Laws 17 Section 12.7 Care and Performance 17 Section 12.8 No Alcohol or Drugs 18 Section 12.9 Governing Law 18 Section 12.10 Severability 18 Section 12.11 Entire Agreement 18 Section 12.12 Notices 18 Section 12.13 Publicity 19 Section 12.14 No Interpretation against Drafter 19 Section 12.15 Independent Contractor 19 EXHIBITS EXHIBIT A Pricing Sheets EXHIBIT B Insurance Provisions EXHIBIT C Form of Performance Bond {00117640.1} 1 This COMMERCIAL SOLID WASTE & RECYCLING SERVICES FRANCHSE AGREEMENT ("Agreement") is made and entered into as of the 19th day of January, 2021 by and between LAKESHORE RECYCLING SYSTEMS LLC, (the "Contractor") and the Village of Deerfield , Illinois (the "Village"). PREAMBLE WHEREAS, the Village, in order to protect the public health and welfare of its residents and commercial, industrial, and institutional entities, has deemed it necessary to collect, transport and dispose of Commercial Materials; and WHEREAS, the Village is authorized pursuant to the provisions of Section 11-19-1 of the Illinois Municipal Code (65 ILCS 5/11-19-1) to provide for the method or methods of collection, transportation and disposal of municipal waste located within its boundaries and to provide that the method chosen may be the exclusive method to be used within its boundaries; and WHEREAS, the Village desires to provide municipal waste collection, transportation and disposal services to its residential, commercial, industrial, and institutional entities, and to impose on its commercial, industrial and institutional entities rates and charges relating to such services; and WHEREAS, the Village has determined that it is in the best interests of its commercial, industrial, and institutional entities to contract with a single waste hauler to collect, transport and dispose of (or sell) Commercial Materials at a facility or facilities mutually agreed upon by the Village and the Contractor; and WHEREAS, the Contractor, pursuant to the terms of this Agreement and on behalf of the Village, is willing to collect, transport and dispose of (or sell) Commercial Materials at a facility or facilities mutually agreed upon by the Village and the Contractor. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions herein contained: ARTICLE I DEFINITIONS Section 1.1 Definitions Whenever used in this Agreement, the following terms shall have the following meanings unless a different meaning is required by the context: a) “Agency” means the Solid Waste Agency of Lake County, known as SWALCO. b) “Blocked Container” means a container that requires emptying pursuant to the terms of this Agreement, but which cannot be emptied, through no fault of the Contractor, due to physical obstruction impeding ingress or egress around the container. c) "Breach" means a breach of this Agreement by either the Village or the Contractor, in a manner described in Sections 10.1 or 10.2 of this Agreement. d) "Commercial Customer" means an individual commercial, industrial, or institutional entity that is not otherwise receiving garbage, recycling, and/or organic material hauling services {00117640.1} 2 through a Village franchise agreement and that is authorized by law to receive such franchise services from the Village. e) "Commercial Materials" means Municipal Waste, Recyclable Materials, Organic Material and any other similar materials. f) "Commercial Service" has the meaning set forth in Section 2.1 of this Agreement. g) "Contractor" means LAKESHORE RECYCLING SYSTEMS LLC, an Illinois corporation, and its successors and assignees. h) "Event of Default" means a declaration of default by either the Village or the Contractor, as described in greater detail in Sections 10.3 and 10.4 of this Agreement. i) “Food Scraps” mean garbage that is capable of being composted and as further defined in 415 ILCS 5/3.197. j) "Landscape Waste" means all accumulations of grass or shrubbery cuttings, leaves, tree limbs, aquatic weeds, and other material accumulated as the result of the care of lawns, shrubbery, vines and trees, and as otherwise described at 415 ILCS 5/3.270. k) "Municipal Waste" means garbage, refuse, industrial, lunchroom or other waste, and other material described at 415 ILCS 5/3.290 resulting from operation of residential, municipal, commercial or institutional establishments and from community activities; provided, however, that "Municipal Waste" shall not include Recyclable Materials or Organic Material. l) “Organic Material” means food scraps as described at 415 ILCS 5/3.197, and Landscape Waste as defined herein. m) “Prior Rate” shall mean the rate paid by a Customer in the calendar month prior to the date on which the Contractor commenced the provision of Commercial Services to that Customer, for services similar to the Commercial Services. n) "Private Service" means the collection of refuse and waste by the Contractor from Customers, pursuant to separate agreements or arrangements between a Customer and the Contractor. o) "Recyclable Materials" means aluminum cans, tin, steel and bi-metal cans; clear, green and brown glass bottles and jars; newspapers, magazines, and mixed papers (junk mail, chipboard, white and colored paper, brown Kraft paper bags); corrugated cardboard, #1 PETE plastic containers and #2 HPDE plastic containers, #3-#5 plastic containers and bags, aseptic beverage containers, and any other material or materials which the Village and Contractor mutually identify as a "Recyclable Material" subsequent to the execution of this Agreement, pursuant to Section 8.1(d) of this Agreement. p) “Recycling Contamination” means when at least 10% of the contents of the recycling container includes material that is not included in the definition of Recyclable Materials. q) "State" means the State of Illinois. {00117640.1} 3 r) "Village" means the Village of Deerfield, Illinois. s) "Village Code" means "The Deerfield Municipal Code" as amended. Section 1.2 Rules of Construction a) Grammatical Usage and Construction. In construing this Agreement, feminine or neuter pronouns shall be substituted for those masculine in form and vice versa, and plural terms shall be substituted for singular and singular for plural, in any place in which the context so requires. b) Defined Terms. All capitalized words and phrases throughout this Agreement shall have the meanings set forth in Section 1.1 and the other provisions of this Agreement. c) Headings. The headings, titles, and captions in this Agreement have been inserted only for convenience and in no way define, limit, extend, or describe the scope or intent of this Agreement. d) Calendar Days. Unless otherwise provided in this Agreement, any reference in this Agreement to “day” or “days” shall mean calendar days and not business days. If the date for giving of any notice required to be given, or the performance of any obligation, under this Agreement falls on a Saturday, Sunday, or federal holiday, then the notice or obligation may be given or performed on the next business day after that Saturday, Sunday, or federal holiday. ARTICLE II SCOPE OF SERVICES Section 2.1 Commercial Services Pursuant to this Agreement, the Contractor shall provide complete service for designated collection from commercial, industrial, or institutional entities as well as transportation and disposal (or sale) of collected Commercial Materials at one or more facilities as determined by the Village (for the landfilling of Municipal Waste) or as potentially determined by the Village (for Recyclable Materials and Organic Material) from Customers (collectively, the "Commercial Services"). The Contractor shall be the sole and exclusive provider Commercial Services to Commercial Customers under this Agreement. Section 2.2 Private Services The Contractor shall, on its own behalf (and not on behalf of the Village), provide for the collection, transportation and disposal of all Private Service waste in accordance with the provisions of Section 4.2 of this Agreement. Section 2.3 Revenue Collection The Contractor shall provide revenue collection services in accordance with Article VI for all Commercial Services provided under this Agreement. {00117640.1} 4 Section 2.4 Excluded Services Notwithstanding any provision of this Agreement to the contrary, the following services are not included within this Agreement: a) In general, solid waste collection, transportation and disposal from all single-family, multi- family and townhome dwellings within the Village. The Contractor should assume that any addresses not included in Appendix E of the Commercial Solid Waste RFP dated November 23, 2020, are excluded. b) Temporary roll-off services; c) Temporary construction/demolition debris collection and disposal services; and d) Commercial Services otherwise exempt from this Agreement by the Village Code, as it may be amended from time to time. Section 2.5 Exempted Services Solid waste collection, transportation and disposal from any commercial, industrial and institutional customers within the Village are not included within this Agreement if the Village approves the exemption of any such services under the terms of the applicable provisions of the Village Code. Section 2.6 Modification of Required Services The Village reserves the right to adjust or expand the scope of the Commercial Services required under this Agreement to accommodate changes in the definition of Commercial Materials or changes in the scope of services provided by SWALCO upon thirty (30) days written notice to the Contractor. The Village and the Contractor agree to negotiate an equitable adjustment to the Contractor's compensation under this Agreement required as a result of any adjustment or expansion of the scope of the Commercial Services. Section 2.7 Integration of RFP The terms of the Request for Proposals issued November 23, 2020 ("RFP") are hereby incorporated as if fully set forth herein. Should any terms of the RFP directly conflict with the terms of this Agreement, the terms of this Agreement shall control. ARTICLE III TERM OF SOLID WASTE & RECYCLING SERVICES AGREEMENT Section 3.1 Term of Agreement The initial term of this Agreement shall commence on April 1, 2021 ("Commencement Date"), and end on March 31, 2026. Upon the mutual written consent of both parties, this Agreement may be extended for up to five additional one-year renewal terms. At the end of any contract term the Village reserves the right to extend this Agreement for a period of up to ninety (90) days for the purpose of transitioning to a new collection service provider. {00117640.1} 5 Section 3.2 Assignment This rights and obligations under this Agreement may not be assigned or transferred by the Contractor to any other party, without the written consent of the Village, which shall not be unreasonably withheld. Any assignee or transferee must demonstrate to the Village's satisfaction that: (i) it is capable of providing the Commercial Service identified herein and otherwise abiding by the terms of this Agreement, and (ii) such assignee or transferee has the financial wherewithal to comply with the obligations and terms set forth herein. ARTICLE IV SOLID WASTE COLLECTION AND DISPOSAL Section 4.1 Commercial Service a) Commercial Materials shall be collected by the Contractor in accordance with the schedule provided in Section 4.3 of this Agreement and transported in accordance with Section 4.4 of this Agreement. b) Beginning on the Commencement Date, the Contractor shall provide Commercial Services to all Customers within the Village which have not been approved for an exemption in accordance with Section 2.5 of this Agreement. c) Beginning on the Commencement Date and at any time during which this Agreement is in force, the Contractor shall provide Commercial Services to previously exempted commercial properties within the Village that have elected to receive service under this Agreement and have been approved by the Village’s representative, at its sole discretion, to join the Agreement. Should such a property desire to join after the Commencement Date, the Contractor shall provide Commercial Services to that property beginning on the date to be mutually agreed by the Village and Contractor. Section 4.2 Private Service a) In addition to the Commercial Services provided by the Contractor under Section 4.1 of this Agreement, the Contractor may also make available to all Customers, Private Service for all types of solid waste not otherwise covered by this Agreement, including, but not limited to, Hazardous Waste as defined by the Resource Conservation and Recovery Act, 42 U.S.C. §§6901-6992k. b) For services provided pursuant to this Section 4.2, the Contractor agrees to keep available tractor loaders, trailers and other necessary equipment. Upon the request of a Customer, the Contractor shall furnish an estimate for the cost of removal of any materials in connection with Private Services to be provided by the Contractor. c) Nothing in this Agreement provides for exclusive rights of the Contractor to provide Private Service in the Village. Section 4.3 Schedule and Location of Collection a) Commercial Materials shall be collected in compliance with all applicable provisions of the Village Code, including, without limitation, Chapter 7 of the Village Code. The {00117640.1} 6 Contractor acknowledges that the Village may amend certain provisions of Chapter 7 of the Village Code in conjunction with the Village’s consideration of the award of this Agreement, and agrees to comply with Chapter 7 and the other applicable provisions of the Village Code, as may be amended. b) Private Service waste shall be collected in accordance with the provisions of Section 4.2 of this Agreement on days to be mutually agreed upon by the respective Customer and the Contractor. c) The Village agrees to cooperate in providing information, if any, relating to property vacancies or any other information that will assist the Contractor in the performance of its obligations under this Agreement. d) The Contractor shall make its best effort to provide the level of service and the timing of that service as requested by the Customer. Section 4.4 Disposal a) Municipal Waste. 1) Municipal Waste shall be removed from the Village at the close of each day of collection and shall be disposed of at one or more SWALCO -designated lawfully operated pollution control facilities at the Contractor’s sole cost and expense. 2) The Contractor acknowledges that the SWALCO-designated facilities in operation as of the effective date of this Agreement are the Countryside Landfill in Grayslake, the Veolia/Zion Landfill in Zion, the Livingston Landfill in Livingston County, Illinois, the Lee County Landfill in Lee County, Illinois, and the Newton County Landfill in Newton County, Indiana. Notwithstanding the foregoing, the Village reserves the right to direct the Contractor to dispose of all Municipal Waste at an alternate pollution control facility. 3) The Contractor may request authorization to deliver Municipal Waste collected pursuant to this Agreement to another pollution control facility. The Contractor shall be required to present to the Village sufficient information relating to such other pollution control facility to demonstrate that its operations and experience are comparable in terms of environmentally effective practices and cost to the pollution control facilities designated from time -to-time pursuant to Section 4.4(a)(2). The Village shall exercise its reasonable judgment in determining whether such other pollution control facility satisfied the environmental and economic objectives of the Village as they may be established from time-to-time. b) Recyclable Materials. 1) All Recyclable Materials shall be collected, separated and otherwise treated so as to facilitate the sale of Recyclable Materials to end-use markets or to Recyclable Material brokers. All collected Recyclable Materials shall be recycled regardless of the income received or the cost to the Contractor resulting from the sale of the Recyclable Materials. {00117640.1} 7 2) The Contractor shall deliver all collected Recyclable Materials to a recycling facility of its choice and shall notify the Village in writing of the designation of such facility and shall further notify the Village in writing if a new recycling facility is selected to receive the Village’s Recyclable Materials. Notwithstanding the foregoing, the Village reserves the right to designate an alternate recycling facility that, in the sole opinion of the Village, provides greater financial benefits to the Village. 3) No Recyclable Materials may be deposited in a landfill or waste incinerator. c) Organic Material. 1) All Organic Material shall be disposed of in a lawful manner. 2) Not less than 60 days prior to the date on which the Contractor commences disposal of Organic Material at a particular location, the Contractor shall notify the Village in writing of the designation of such location. Notwithstanding the foregoing, the Village reserves the right to reject any proposed location, or to direct the location of disposal to an alternate Organic Material facility that, in the sole opinion of the Village, is more cost effective than the facility previously being used by the Contractor under this Agreement. 3) No Organic Material may be disposed of at a landfill or solid waste incinerator, unless otherwise authorized by the Illinois Environmental Protection Act (415 ILCS 5/1 et seq.) and approved in advance and in writing by the Village. d) In the event that the Village directs the disposal of any Commercial Materials to any alternate facility pursuant to this Section 4.4, the Village and the Contractor agree to establish an equitable adjustment to the Contractor’s compensation under this Agreement as a result of an increase or decrease in realized costs. Section 4.5 Solid Waste Collection Data e) The Contractor shall provide to the Village and SWALCO, on a quarterly basis broken down by month, a report on: (i) the quantity (in tons) of all commercial solid waste collected within the Village; (ii) recycling diversion data, including the quantity (in tons) of commercial recyclables and organic material recycled and composted, and the number of business accounts that have recycling containers; and (iii) a breakdown of the number of Customers. f) The Contractor shall prepare and deliver to the Village, at least once every 12 calendar months, a service matrix, which shall include, without limitation: the name, service address, billing address (if different), contact person, telephone number and fax number of each Customer; the type and quantities of containers located on each Customer's site; the frequency of collections from each site; and an itemization of the days of collections and the current service rate applicable to each Customer. g) The Contractor acknowledges and agrees that program data and other public information will be provided by the Village to each Customer upon request. {00117640.1} 8 h) Failure to report the data required by this Section 4.5 may result in the Village fining the Contractor up to $100 per day the required data is not submitted to the Village or SWALCO. ARTICLE V COMPENSATION Section 5.1 Commercial Service a) For providing for, pursuant to this Agreement, the collection, transportation and disposal (or sale) of commercial refuse and recyclables at a facility or facilities determined by the Village, and for providing revenue collection services, the Contractor shall receive as compensation from each Customer the rates set forth in Exhibit A attached to this Agreement, except as provided in Section 5.1(b) of this Agreement, and as adjusted pursuant to Section 5.1(c) of this Agreement. The Contractor shall not impose or assess any fuel surcharges, administrative fees, environmental fees or charge Customers any amounts in excess of the charges permitted in Exhibit A. b) On April 1, 2022 and on each twelve-month anniversary date thereafter (the “Adjustment Date”), the charges as identified in Exhibit A shall increase by two (2%) percent over the prior period’s charges; provided that if the percentage increase in the CPI (as measured below) shall exceed two (2%), then the charges identified in Exhibit A shall increase by the percentage increase in the CPI, up to a maximum three and one-half (3.5%) percent increase in the CPI, and any percentage increase in the CPI over three and one-half (3.5%) percent shall be disregarded. That is, the charges identified in Exhibit A shall increase by a minimum of two (2%) and a maximum of three and one-half (3.5%) percent on each Adjustment Date. The percentage increase in the CPI on each Adjustment Date shall be determined by comparing the CPI from July preceding the Adjustment Date (“Most Recent CPI”) to the CPI reported by the U.S. Department of Labor for July in the year immediately preceding the year of the Most Recent CPI. The CPI means the Chicago-Naperville-Elgin Consumer Price Index for all Urban Consumers, All Items, Issued by the Bureau of Labor Statistics of the United States Department of Labor (1982-84=100). c) Notwithstanding the rates set forth in Exhibit A to this Agreement, if a Customer's Prior Rate is lower than the applicable rate set forth in Exhibit A, that Customer shall not be charged more than its Prior Rate for the Commercial Services during the period through and including March 31, 2022. Beginning on April 1, 2022, all Customers shall pay the applicable rate set forth in Exhibit A, as adjusted pursuant to Section 5.1(c) of this Agreement. d) The Contractor shall notify the Village in writing at least thirty (30) days prior to the effective date of any proposed increase in charges, and such increase shall not be effective until approved by the Village in writing as complying with the terms of the Agreement. e) The Contractor acknowledges and agrees that pursuant to Exhibit A of this Agreement, there shall be no charge for the weekly collection of Recyclable Materials from any individual Customer using one 4 cubic yard container or smaller with once per week service. If Customers are sharing containers for Municipal Waste disposal or are part of a larger building or strip mall that has multiple Customers, each individual Customer within the building or strip mall shall be provided one 65-gallon toter, one 96-gallon toter or one {00117640.1} 9 1, 1.5, 2 or 4 cubic yard container for recycling if requested. All other collections of Recyclable Materials shall be charged at the rates set forth in Exhibit A of this Agreement, including, without limitation, collections from Customers using multiple toters or containers. f) The Contractor is responsible for determining if each Customer is receiving sufficient service in terms of frequency of collection and on-site containers. If the Contractor deems that the capacity of on-site storage at the site of a Customer is exceeded regularly, it shall recommend to the Customer an increase in collection frequency or an upgrade of the container size and notify the Village of this recommendation. If a Customer leaves Municipal Waste outside of the Municipal Waste container, the Contractor may charge an excess Municipal Waste fee as sort forth in Exhibit A (this does not apply to the Recyclable Materials or Organics containers). If a Cust omer decides to change container size, such change shall be made at no cost to the Customer. If the Customer decides to change containers and not the size of the container it may be charged a delivery fee as set forth in Exhibit A. g) All containers utilized for the collection of Commercial Materials shall be properly labeled to indicate what materials are and are not accepted in the container. The labels to be used for the containers shall be prior approved by the Village. h) If the Contractor encounters Recycling Contamination in the recycling container, the Contractor is responsible for photographing (with a stamp identifying the date and time the photograph was taken) the contamination and notifying the Customer of the contamination issue and what items are not acceptable. After identifying five separate instances of Recycling Contamination within a calendar year, the Contractor may charge a Recycling Contamination fee as set forth in Exhibit A. i) In the event the Contractor is unable to provide collection services for any Commercial Materials container due to a Blocked Container, Contractor shall photograph the Blocked Container (with a stamp identifying the date and time the photograph was taken). If the Contractor encounters a Blocked Container three times with one year at the same Customer, the Contractor may notify the Village, providing the photographs required by this section. The Village will then notify the Customer of the Blocked Container concern and work with the Customer to avoid having a Blocked Container in the future. j) In the event that a Customer is unable to utilize any of the containers identified in Exhibit A of this Agreement, the Contractor shall charge that Customer pro-rated rates for the provisions of the Commercial Services, based upon the size and type of containers utilized by that Customer. ARTICLE VI REVENUE COLLECTION Section 6.1 Billing of Accounts Commercial Services provided under Section 4.1 of this Agreement are provided by the Contractor, pursuant to this Agreement. The Contractor shall perform, on a monthly basis in advance of services {00117640.1} 10 provided and pursuant to this Agreement, the billing and collection of Customers of all rates and charges relating to such Commercial Services. Section 6.2 Commercial Service The Contractor shall, on a monthly basis, bill each Customer, an amount payable for the collection, transportation and disposal (or sale) of Commercial Service waste and recycling for the following month. Each bill shall be payable by the Customer within thirty (30) days. Section 6.3 Private Service The Contractor may, but is not required to, include as an item on each Customer's bill an amount payable to the Contractor for the collection, transportation, and disposal of Private Service waste. The Contractor shall retain all amounts collected from each commercial entity pursuant to this Section 6.3. Alternatively, the Contractor may bill Customer separately for Private Service. ARTICLE VII TITLE TO COMMERCIAL MATERIALS Section 7.1 Title to Commercial Materials The Contractor shall retain title to all Commercial Materials collected pursuant to this Agreement. ARTICLE VIII RECYCLABLE MATERIALS Section 8.1 Recyclable Materials Collection Service a) Commercial Recycling Service. The Contractor shall collect, transport, and manage Recyclable Materials in accordance with Article IV of this Agreement. b) Recyclable Materials Collection Data. The Contractor shall provide to the Village and SWALCO a quarterly report, broken down by month, on the weight (in tons) of all Recyclable Materials collected from Customers under this Agreement. The report shall also contain an approximate count of the number of Customers from which Recyclable Materials have been collected, in order to determine participation and diversion rates. Failure to report the data required by this Section may result in the Village fining the Contractor up to $100 per day the required data is not submitted to the Village or SWALCO. c) The Village shall have the right to add materials to the list of Recyclable Materials listed in Section 1.1(o) of this Agreement, pending the availability of disposal or resale markets for the added materials and the prior approval of the Contractor. d) The Contractor, pursuant to this Agreement, shall ensure that all Recyclable Materials collected are properly processed and marketed. No collected Recyclable Materials shall be landfilled or incinerated, unless advance authorization to do so is given by the corporate authorities of the Village. {00117640.1} 11 e) The Contractor shall sell all Recyclable Materials, other than Organic Material, that are collected under this Agreement. If changes in the market for the sale of any particular Recyclable Material makes continued collection of such Recyclable Material not economically feasible, the Contractor shall consult with the Village regarding the market changes of the affected Recyclable Material. The Village may, in its discretion, agree to remove from the list of Recyclable Materials any economically infeasible item upon such market change. f) The Contractor agrees to meet periodically with representatives from the Village and the Deerfield business community to: (1) review the provision of commercial recycling pursuant to this Agreement; and (2) discuss the implementation of alternative approaches, programs and partnerships to improve the quality, quantity, and efficiency of commercial recycling and other sustainability initiatives within the Village. Section 8.2 Recycling Marketing and Education The Contractor shall make reasonable efforts to encourage all Customers to participate in the weekly collection of Recyclable Materials and/or Organics. Such reasonable efforts shall include without limitation meeting personally with representatives of each eligible Customer to provide each such Customer with information regarding Recyclable Materials and Organics services under this Agreement. It is expected that: (a) by May 1, 2022 and at the end of each service year thereafter, at least 60% of all Customers will be receiving services from Contractor for the weekly collection of Recyclable Materials and/or Organics, and (b) by May 1, 2024 at least 75% of all Customers will be receiving services from Contractor for the weekly collection of Recyclable Material and/or Organics. In the event that the Customer participation rate in the service providing weekly collection of Recyclable Materials does not average at least 75% [as reflected in the quarterly reports to be provided pursuant to Section 8.1(b)], then Contractor shall meet with the Village on a quarterly basis to review recycling participation among Customers and identify additional steps and programs that Contractor shall undertake to enhance participation among Customers in the collection of Recyclable Materials. ARTICLE IX CUSTOMER SERVICE STANDARDS Section 9.1 Service Options; Changes in Service The Contractor at its expense, shall be required to develop, print and distribute to all existing Customers, prior to the Commencement Date, and to all new Customers establishing regular service during the term of this Agreement, a brochure approved by the Village explaining the solid waste and recycling programs provided under this Agreement and the procedures for the Customers to modify or cancel the services provided by the Contractor. The brochure shall be updated and distributed whenever there is a change in the service or programs provided, or as directed by the Village. Section 9.2 Office and Telephone The Contractor shall maintain an office and toll-free telephone number for receipt of service calls or complaints, and shall be available for such calls on all business days from 7:00 a.m. to 5:00 p.m. The Contractor shall retain the services of at least one temporary full -time customer service representative to handle the addition of Customers to the Contractor’s service base during the first ninety days of the term of this Agreement. Additional customer service representatives shall be added as necessary to meet the minimum customer service standards set forth in Section 9.3 of this Agreement. {00117640.1} 12 Section 9.3 Minimum Customer Service Standards a) Complaints Generally. The Contractor shall cooperate with the Village in minimizing complaints from the Customers. A consistent pattern of failure to address complaints, or violations of Sections 9.3(a) through 9.3(h) of this Agreement (defined as having two or more complaints per month that is referred to the Village per Section 9.3(c)), shall entitle the Village to exercise the remedies provided to it pursuant to Section 9.3(h) and/or Article X of this Agreement. b) Initial Response. The Contractor shall give prompt and courteous attention to all Customer complaints that it may receive. The Contractor shall respond personally to every Customer from whom a complaint is received within twenty-four (24) hours; except that if the Contractor receives a complaint about a missed scheduled collection, then the Contractor shall immediately investigate such complaint and, if such scheduled collection was not made in accordance with the terms of this Agreement, then the Contractor shall cause such collection to be made within twenty-four (24) hours after receipt of such complaint. If the Contractor does not respond within the twenty-four (24) hour timeframe, the Village may hire a private hauler to perform the service and the Contractor shall be liable for compensating the Village for the costs associated with the private hauler’s services. Where any dispute arises between a Customer and the Contractor as to the manner of placing waste or the nature of the contents or the like, the Contractor shall, and does hereby agrees in the specific instance to, remove the waste even though, in its opinion, it is improperly placed or contained. Thereafter, the Contractor may seek resolution of any dispute through court, mediation, or arbitration proceedings, at its election. c) Referral to Village. If the Contractor is unable to resolve a complaint in a manner satisfactory to both the Contractor and the Customer, then the Contractor, within forty- eight (48) hours after receipt of such complaint, shall deliver notice of such complaint to the Village Administrator or his/her designee, which notice shall include the name and address of the Customer, the date and hour the complaint was received, the nature of the complaint, and the Contractor’s response to the complaint. The Village Administrator or his or her designee shall arbitrate each such complaint, and the Village Administrator’s or his or her designee’s decision concerning each such complaint shall be final and binding on the Contractor and the Customer. d) Answering Calls. During normal business hours and under normal operating conditions, a customer service representative employed by the Contractor shall answer the telephone access line. Ninety percent (90%) of the calls made to the customer service center shall be answered within thirty (30) seconds. The thirty (30) second maximum includes wait time or time spent ‘holding’ for a customer service representative. e) Busy Signals. Customers placing calls to the customer service center shall receive a busy signal no more than five percent (5%) of the time. f) Transferring Calls. During normal business hours, if after initially addressing a Customer’s concern, the customer service representative determines that the call should be transferred to another representative of the Contractor, the Customer shall be connected with a customer service representative within thirty (30) seconds thereof. {00117640.1} 13 g) Hang-ups. Incoming telephone calls from Customers shall not exceed an abandonment rate of five percent (5%). h) Compliance Rate. During normal business hours, the minimum standards set forth in this Section 9.3 shall be met no less than ninety percent (90%) of the time, measured on a monthly basis. Reports shall be provided to the Village on a monthly basis providing a log of inquiries received and action taken to address each complaint and call. The Contractor shall also distribute to the Village a log providing data which tracks the customer service representatives’ adherence to the standards set forth in Section 9.3(a) through 9.3(g) of this Agreement, as the Village may request in its discretion, on a monthly basis. The Village reserves the right to audit the Contractor’s complaint procedures as required by this Section 9.3.If the records and/or audit indicate a clear failure of the Contractor to comply with the minimum standards set forth in Sections 9.3(a) through 9.3(g) of this Agreement, then the Village reserves the right to require the Contractor to implement modifications to its customer service center to bring it into compliance with the requirements of this Section 9.3. Section 9.4 Cleanliness a) Generally. Contractor shall perform the work in a clean and orderly fashion and shall not cause to be deposited, or allow to remain, any Solid Waste, Landscape Waste, or Recyclable Materials at any pick-up area during performance of the Work. Contractor shall replace all container covers and shall replace all containers to their proper locations. b) Cleanup of Spills. Contractor shall immediately clean up any Solid Waste, Landscape Waste, or Recyclable Materials that it may have caused to spill onto private premises, parkways, streets, alleys or other public places, in a neat and workmanlike manner. Section 9.5 Customer Service Survey The Contractor will, every other calendar year, conduct a Customer service survey to assess the Contractor’s service performance under the Agreement, in a form, of a content, and administered in a manner to be approved in advance by the Village. Section 9.6 Liaison The Contractor shall designate in writing a person to serve as agent for the Contractor and liaison between the Contractor and the Village. ARTICLE X BREACH; EVENTS OF DEFAULT AND REMEDIES Section 10.1 Breach by Contractor Each of the following shall constitute a Breach on the part of the Contractor: a) A consistent pattern of failure by the Contractor to respond timely to and address Customer complaints in keeping with the customer service standards in Article IX and as further defined in Section 9.3(a). {00117640.1} 14 b) Failure of the Contractor to pay, within thirty (30) days after notice from the Village of nonpayment, amounts which are undisputed or which are due to the Village under this Agreement; c) Repeated failure of the Contractor to comply with Section 9.3(h) of this Agreement; d) Failure of the Contractor to perform in a timely fashion any obligation under this Agreement not referenced within Sections 10.1(a) or 10.1(b) of this Agreement, except that such failure shall constitute a Breach only if such failure remains uncured for seven (7) business days after notice to the Contractor from the Village of such failure; provided however, that this seven (7) day notice with opportunity to cure shall not be required in the event of persistent and repeated failure to perform; or e) Any of the following: (1) The Contractor's being or becoming insolvent or bankrupt or ceasing to pay its debts as they mature or making an arrangement with or for the benefit of its creditors or consenting to or acquiescing in the appointment of a receiver , trustee or liquidator for a substantial part of its property, (2) a bankruptcy, reorganization, insolvency, arrangement or similar proceeding being instituted by the Contractor under the laws of any jurisdiction, (3) a bankruptcy, reorganization, insolvency, arrangement or similar proceeding being instituted against the Contractor under the laws of any jurisdiction, which proceeding has not been dismissed within one hundred twenty (120) days, (4) any action or answer by the Contractor approving of, consenting to or acquiescing in any such proceeding, or (5) the levy of any distress, execution or attachment upon the property of the Contractor which shall (or which reasonably might be expected to) substantially interfere with its performance under this Agreement. Section 10.2 Events of Default and Remedies of Village a) If a Breach occurs under Section 10.1 of this Agreement, the Village may declare an Event of Default or Breach and may thereafter exercise any one or more of the following remedies: 1) The Village may terminate this Agreement immediately, upon notice to the Contractor. Subject to the provisions of subparagraph (5) below, upon such termination, the Contractor shall cease providing all services under this Agreement. 2) The Village may seek and recover from the Contractor any unpaid amounts due the Village along with all of its substantiated costs for the failure of the Contractor to perform any obligation under this Agreement, and all damages, whether based upon contract, work stoppage, strike, Contractor negligence (including tort), warranty, delay or otherwise, arising out of the performance or non-performance by the Contractor of its obligations under this Agreement, and whether incidental, consequential, indirect or punitive, resulting from the Breach. 3) The Village may (A) call upon the sureties to perform their obligations under the performance bond, or (B) in the alternative, after releasing the sureties from their obligations under the performance bond, take over and perform the required services by its own devices, or may enter into a new agreement for the required {00117640.1} 15 services, or any portion thereof, or may use such other methods as shall be required in the opinion of the Village for the performance of the required services. 4) The Village shall have the power to proceed with any right or remedy granted by federal laws and laws of the State as it may deem best, including any suit, action or special proceeding in equity or at law for the specific performance of any covenant or agreement contained herein or for the enforcement of any proper legal or equitable remedy as the Village shall deem most effectual to protect the rights aforesaid, insofar as such may be authorized by law. 5) Upon any such termination of this Agreement, the Contractor shall, for a period to be determined by the Village in its sole and absolute discretion, but not longer than six (6) months, continue to perform the contractual services during which period the businesses shall pay the Contractor its scheduled compensation. b) No remedy by the terms of this Agreement conferred upon or reserved to the Village is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given to the Village. No delay or omission to exercise any right or power accruing upon any Event of Default or Breach shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or Breach or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. No waiver of any Event of Default or Breach shall extend to or shall affect any subsequent default or Event of Default or Breach or shall impair any rights or remedies consequent thereto. c) If the Contractor misses a collection under the Commercial Service, the collection must be corrected within 24 hours of the reported missed collection, or a charge of $50 per missed collection will be charged to the Contractor; provided, however, that the Contractor shall not be charged under this Section 10.2(c) for collections missed due to a labor dispute involving the Contractor’s labor force if the missed collection is rectified within seven (7) days after the missed collection. All charges levied against the Contractor under this Section 10.2(c) shall be credited to the affected Customer's account within 30 days after receipt of an invoice therefore. d) In the event of a strike or other labor stoppage, Contractor shall notify the Village within 24 hours after commencement of the strike or labor stoppage. If such strike or labor stoppage does not end within seven (7) business days of such notification, the Contractor will provide the Village with refuse collection dumpsters located in at least four (4) geographic locations for commercial customer drop-offs, which locations shall be mutually acceptable to the parties. In the event of a strike, that does not end within 14 days of notification, the Contractor will agree to meet with the Village and negotiate the potential provision of a credit for commercial customers under the agreement due to non-collection; provided however that any credit given, if any, shall be mutually agreed to by both parties. e) This Section 10.2 shall survive the termination of this Agreement. Section 10.3 Force Majeure . Neither the Contractor nor Village shall be liable for failure to perform their duties or for any resulting damage or loss if such failure is caused by a catastrophe, terrorism, riot, war, fire, accident, act of {00117640.1} 16 God, or other similar contingency that is beyond the reasonable control of the Contractor or the Village including without limitation: extraordinary inclement weather; explosion; widespread lack of adequate fuel, power, raw materials, labor or transportation facilities; material changes in governmental laws, regulations, requirements, orders, or actions, the impact of which is unrelated to Contractor, the Village, or Contractor's or the Village's performance, or failure to perform; national defense requirements; injunctions or restraining orders; and labor trouble and strike. In the event the Contractor asserts a right to suspend performance under this Section, the Contractor shall (i) within twenty-four (24) hours after it has knowledge of the effective cause, notify the Village of the cause for suspension, the performance suspended and the anticipated duration of suspension and (ii) advise the Village when the suspending event has ended and when performance will be resumed. Once the suspending event ends, the Contractor shall promptly resume performance. Changes in recycling markets or market prices are specifically excluded from the above force majeure contingencies contemplated in this section. ARTICLE XI INSURANCE AND INDEMNIFICATION Section 11.1 Insurance a) The Contractor shall maintain for the duration of this Agreement and any extensions thereof, insurance issued by a company or companies qualified to do business in the State of Illinois and that meet the requirements set forth in Exhibit B. The Contractor shall provide the Village with a certificate of insurance indicating that such insurance coverage meets the requirements contained in Exhibit B. The Contractor shall also provide Customers with a certificate of insurance upon request by the Customer. b) Insurance premiums shall be paid by the Contractor and shall be without cost to the Village. Section 11.2 Indemnification a) The Contractor agrees to indemnify, defend and hold harmless the Village, its elected and appointed officials, employees, agents, representatives and attorneys, in both their official and individual capacities, from and against any and all injuries, deaths, claims, losses, damages, suits, demands, actions and causes of actions, expenses, fees, including attorneys' fees, and costs which may accrue against the Village in consequence of entering into or performance or breach of this Agreement or which may result from or arise out of any action or omission of the Contractor, its officers, employees, agents or subcontractors, including, without limitation, any action or omission related to the disposal of any Commercial Materials in a landfill. b) In the event that the Contractor does not undertake to defend or indemnify the Village unconditionally from and against any and all injuries, deaths, claims, losses, damages, suits, demands, actions and causes of actions, expenses, fees, including attorneys' fees, and costs which may accrue against the Village in consequence of entering into this Agreement (or in the event that the Contractor does not deliver written confirmation to the Village of such unconditional undertaking within 15 days after written request from the Village), the Village shall have the right to terminate this Agreement; provided, however, that the Contractor's obligations under Section 11.2(a) shall survive any such termination. {00117640.1} 17 ARTICLE XII MISCELLANEOUS Section 12.1 Non-Assignability The Contractor shall not assign this Agreement or any part thereof without the prior written consent of the Village. Approval, if any, for such assignment shall be made by the corporate authorities of the Village. The Contractor shall not assign or subcontract this Agreement or the work hereunder, or any part thereof, to any other person, firm, or corporation without prior written consent of the Village, but the Contractor may perform its obligations hereunder through its subsidiaries or divisions. Such assignment shall not relieve the Contractor from its obligations or change the terms of Agreement. Section 12.2 Equal Employment Opportunity a) In the event of the Contractor's noncompliance with the provisions of this Section 12.2, the Illinois Human Rights Act or the Illinois Department of Human Rights Rules and Regulations, the Contractor may be declared ineligible for future contracts or subcontracts with the State or any of its political subdivisions or municipal cor porations, and this Agreement may be canceled or voided in whole or in part, and such other sanctions or penalties may be imposed or remedies invoked as provided by statute or regulation. b) During the performance of this Agreement, the Contractor agrees as follows: 1) That it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service; and further, that it will examine all job classifications to determine if minority persons or women are underutilized and will take appropriate affirmative action to rectify any such under-utilization. 2) That, if it hires additional employees in order to perform this Agreement or any portion hereof, it will determine the availability (in accordance with the Illinois Department of Human Rights Rules and Regulations) of minorities and women in the area(s) from which it may reasonably recruit and it will hire for each job classification for which employees are hired in such a way that minorities and women are not under-utilized. 3) That, in all solicitations or advertisements for employees placed by the Contractor or on the Contractor's behalf, the Contractor will state that all applicants will be afforded equal opportunity without discrimination because of race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service. 4) That the Contractor will send to each labor organization or representative thereof with which it is bound by a collective bargaining or other agreement or understanding, a notice advising such labor organization or representative of the Contractor's obligations under the Illinois Human Rights Act and the Illinois Department of Human Rights Rules and Regulations. If any such labor {00117640.1} 18 organization or representative fails or refuses to cooperate with the Contractor in its efforts to comply with such Act and Rules and Regulations, the Contractor will promptly notify the Illinois Department of Human Rights and the Village, and will recruit employees from other sources when necessary to fulfill the Contractor's obligations thereunder. 5) That the Contractor shall submit reports as required by the Illinois Department of Human Rights Rules and Regulations, furnish all relevant information as may from time to time be requested by the Illinois Department of Human Rights or the Village, and in all respects comply with the Illinois Human Rights Act and the Illinois Department of Human Rights Rules and Regulations. 6) That the Contractor shall permit access to all relevant books, records, accounts and work sites by personnel of the Village and the Illinois Department of Human Rights for purposes of investigation to ascertain compliance with the Illinois Human Rights Act and the Illinois Department of Human Rights Rules and Regulations. 7) That the Contractor shall include, verbatim or by reference, the provisions of this Section 12.2 in every subcontract it awards under which any portion of the Agreement obligations are undertaken or assumed, so that such provisions will be binding upon each subcontractor. The Contractor will promptly notify the Village and the Illinois Department of Human Rights in the event any subcontractor fails or refuses to comply therewith. In addition, the Contractor will not utilize any subcontractor ineligible for contracts or subcontracts with the State or any of its political subdivisions or municipal corporations. c) During the term of this Agreement, the Contractor shall comply in all respects with the Equal Employment Opportunity Act. The Contractor shall have a written equal employment opportunity policy statement declaring that it does not discriminate on the basis of race, color, religion, sex, national origin, ancestry, age, order of protection status, marital status, physical or mental disability, military status, sexual orientation, or unfavorable discharge from military service. Findings of non-compliance with applicable State or federal equal employment opportunity laws and regulations may be sufficient reason for revocation or cancellation of this Agreement. Section 12.3 Prevailing Wages a) To the extent the Prevailing Wage Act or similar laws apply, not less than the prevailing rate of wages, as determined by the Village or the Illinois Department of Labor, or determined by a court on review, shall be paid to all laborers, workers and mechanics performing work under this Agreement. The Contractor and each subcontractor shall keep an accurate record showing the names and occupations of all laborers, workers, and mechanics employed by them on this Agreement and showing the actual hourly wages paid to each such person. b) To the extent applicable, the Contractor shall comply with all applicable provisions of the Illinois Prevailing Wage Act, 820 ILCS 130/0.01 et seq. In addition, the Contractor and each subcontractor shall preserve their weekly payroll records for a period of three (3) years after the date of termination of this Agreement. {00117640.1} 19 Section 12.4 Performance Bond The Contractor shall furnish a performance bond for the faithful performance of this Agreement, in substantially in the form attached to this Agreement as Exhibit C, to be executed by a responsible surety company and to be in the penal sum of $500,000. Such performance bond shall be furnished annually by the Contractor for the following contract year and shall indemnify the Village against any loss resulting from any failure of performance by the Contractor. The initial bond shall be posted on or before the Commencement Date, and each successive bond shall be posted not later than January 1 of each successive calendar year. Section 12.5 Equipment to be Used by Contractor a) Contractor shall furnish, and maintain in a neat, clean, and sanitary condition, enclosed modern collection equipment approved by the Village for use in performing the Work. Contractor may use replacement, open trucks on a temporary basis in case of emergency, but only with the prior express written approval of the Village. No vehicle used in the performance of this contract shall have a gross vehicle weight rating (GVWR) of greater than 55,000 pounds. All vehicles shall be maintained in good working order and appearance, free of rust, and shall be clean at the start of each collection day. In the event that any vehicle is not properly operable, a substitute vehicle shall immediately be provided that complies with the terms herein. All vehicles shall display the name of the Contractor, a local phone number, and a vehicle identification number that is clearly visible on both sides. No vehicle shall be operated on a Village street that leaks any fluids from the engine or compaction mechanism. All vehicles shall be fully enclosed and operated in such a way that no Solid Waste leak, spill or blow off the vehicles. Should any Solid Waste leak, spill or blow off a vehicle due to the vehicle operator’s failure to properly monitor the load or to close opening, or due to failure of any mechanism, the Contractor shall be responsible for collecting or cleaning up such litter or fluids. If such litter or fluids are not cleaned up after notice (verbal or written) from the Village, the Village may clean up same, and the Village may bill the cost to the Contractor for services rendered. Drain plugs, if available, shall be kept closed except during collections in rainy weather. All vehicles shall be made available for inspection during regular business hours at the request. Contractor may use replacement, open trucks on a temporary basis in case of emergency, but only with the prior express written approval of the Village b) Containers used in connection with the provision of Residential Services by the Contractor pursuant to this Agreement shall be operable, safe and free of graffiti. Contractor shall replace any container in disrepair of this sort within three (3) days of notification by the Village or the customer. Containers with plastic lids that are ill-fitted or warping shall be replaced within three (3) days of notification by the Village, in order to maintain a tight- fitting seal to prevent access by pests. All containers will be adequately demarcated with the Contractor’s logo. Each container will have an inventory control number demarcated on each container that is cross-referenced to the service matrix. Contractor is encouraged to install RFID tags on Residential Customer carts and containers to assist with collection tracking. c) All equipment used by Contractor for the provision of Residential Services and Private Services pursuant to this Agreement shall be properly licensed by the State and shall conform to all federal and State equipment safety standards. {00117640.1} 20 Section 12.6 Compliance with Laws a) Notwithstanding any other provisions in this Agreement, the Contractor shall comply at all times with all applicable federal, State and municipal laws, ordinances and regulations at any time applicable to the Contractor's operations under this Agreement, with no increase to the Contractor's compensation as set forth in this Agreement. b) The Contractor shall obtain, at its own expense, all permits and licenses required by law or ordinance and maintain the same in full force and effect. Section 12.7 Care and Performance a) The Contractor shall undertake to perform all services rendered hereunder in a neat, thorough and competent manner, without supervision by the Village, and to use care and diligence in the performance of all specified services and to provide neat, orderly, uniformed and courteous employees and personnel on its crews. b) The Contractor shall be liable to the Village for damage to Village rights-of-way caused in connection with the provision of the Commercial Services or Private Services, ordinary wear and tear excepted. c) To the extent that the Contractor or its employees or agents violate any provisions on the Village Code, the Contractor shall be liable for fines due under the Village Code arising in the course of its provision of services under this Agreement. d) The Contractor acknowledges, and the Parties agree that, with respect to the Commercial Services to be provided to Customers under this Agreement, the Customers are third-party beneficiaries of this Agreement. Section 12.8 No Alcohol or Drugs The Contractor shall prohibit and use its best efforts to enforce the prohibition of any drinking of alcoholic beverages or use of illegal drugs by its drivers and employees while on duty or in the course of performing their duties under this Agreement. Section 12.9 Governing Law This Agreement and the rights of the Village and the Contractor under this Agreement shall be interpreted according to the internal laws, but not the conflict of laws rules, of the State of Illinois. Section 12.10 Severability The provisions of this Agreement shall be interpreted when possible to sustain their legality and enforceability as a whole. In the event any provision of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, in whole or in part, neither the validity of the remaining part of such provision, nor the validity of any other provisions of this Agreement, shall be in any way affected thereby. The unenforceability of any provision of this Agreement in a specific situation shall not affect the enforceability of that provision in any other situation. Section 12.11 Entire Agreement {00117640.1} 21 This Agreement sets forth the entire agreement of the Village and the Contractor with respect to the provision of the Commercial Services and compensation therefore, and there are no other understandings or agreements, oral or written, between the Village and the Contractor with respect to the Commercial Services and the compensation therefore, nor was the making and execution of this Agreement induced by any representation, statement, warranty, agreement, or action other than those expressed or explicitly referenced herein. Section 12.12 Notices All notices required or permitted to be given under this Agreement shall be in writing and shall be delivered (i) personally, (ii) by a reputable overnight courier or (iii) by certified mail, return receipt requested, and deposited in the U.S. mail, postage prepaid. Unless otherwise expressly provided in this Agreement, notices shall be deemed received upon the earlier of (a) actual receipt; (b) one business day after deposit with an overnight courier as evidenced by a receipt of deposit; or (c) three business days following deposit in the U.S. mail, as evidenced by a return receipt. By notice complying with the requirements of this Section, each party shall have the right to change the address or addressee, or both, for all future notices and communications to the other party but no notice of a change of address or addressee shall be effective until actually received. Notices and communications to the Village shall be addressed to, and delivered at, the following address: Village of Deerfield 850 Waukegan Road Deerfield IL 60015 Attention: Village Manager Notices and communications to the Contractor shall be addressed to, and delivered at, the following address: Lakeshore Recycling Systems 6132 W. Oakton Street Morton Grove, IL 60053 Attention: Joshua Connell, Managing Partner Section 12.13 Publicity The Village’s name, insignia or associated marks; photographs of the Village or any other publicity pertaining to the provision of the Commercial Services shall not be used in any magazine, trade paper, newspaper, or other medium without the express written consent of the Village. Section 12.14 No Interpretation against Drafter This Agreement has been negotiated by all Parties and shall not be construed against any Party as the drafter of this Agreement. Section 12.15 Independent Contractor Contractor acknowledges and agrees that the relationship of the parties hereunder shall be that of independent contractor and that neither Contractor nor its employees shall be deemed to be an employee of {00117640.1} 22 the Village for any reason whatsoever. Neither Contractor nor Contractor's employees shall be entitled to any Village employment rights or benefits whatsoever. Contractor is only authorized to operate pursuant to this Agreement and shall not be deemed an Agent of the Village when engaging in the activities authorized hereunder. [Signature page to follow] {00117640.1} Exhibit A EXHIBIT A PRICING SHEETS VILLAGE OF DEERFIELD COMMERCIAL SOLID WASTE HAULING & DISPOSAL SERVICES PRICE MATRIX EFF: APRIL 1, 2021 TO MARCH 31, 2022 TRASH Container Size Freguency of Service 1xWk 2xWk 3xWk 4xWk SxWk � 7xWk 65 gallon $ 17.75 $ 35.51 $ 53.26 $ 71.01 $ 88.75 $ 108.73 $ 139.79 95 gallon $ 17.75 $ 35.51 $ 53.26 $ 71.01 $ 88.75 $ 108.73 $ 139.79 1 cy $ 31.06 $ 62.14 $ 93.19 $ 133.15 $ 171.97 $ 210.80 $ 266.27 *1 cy compact ed $ 49.94 $ 98.00 $ 145.00 $ 190.00 $ 235.00 $ 325.00 $ 370.00 1.5 cy $ 35.51 $ 71.01 $ 110.95 $ 155.33 $ 199.71 $ 244.09 $ 288.47 *1.5 cy compacted $ 72.12 $ 150.00 $ 235.00 $ 325.00 $ 415.00 $ 500.00 $ 620.00 2 cy $ 39.93 $ 82.10 $ 122.04 $ 160.88 $ 205.26 $ 255.18 $ 299.57 *2 cy compacted $ 83.21 $ 160.00 $ 250.00 $ 340.00 $ 430.00 $ 520.00 $ 635.00 4 cy $ 68.79 $ 137.58 $ 208.59 $ 288.47 $ 360.58 $ 438.25 $ 521.47 6 cy $ 96.52 $ 190.83 $ 286.25 $ 372.48 $ 465.99 $ 560.30 $ 682.34 *6 cy compacted $ 249.64 $ 499.27 $ 748.92 $ 1,054.02 $ 1,331.39 $ 1,636.50 $ 1,969.34 8 cy $ 130.92 $ 255.18 $ 382.78 $ 532.56 $ 660.15 $ 787.73 $ 954.15 10 cy $ 147.56 $ 288.47 $ 432.71 $588.03 $ 732.26 $ 876.51 $ 1,054.02 20 yard roll off $ 399.41 per haul **S ton limit 30 yard roll off $ 438.25 per haul **6ton limit 40 yard roll off $ 499.27 per haul **7ton limit Qollection Only-Leas�d Servi� 20 yard compaction equipment $ 416.06 per haul **5 ton limit $ 375.00 per month 25 yard compaction equipment $ 438.25 per haul **5 ton limit $ 375.00 per month 30 yard compaction equipment $ 477.09 per haul **6 ton limit $ 375.00 per month 40 yard receiver bo x $ 477.09 per haul **6 ton limit $ 95.00 per month 2 yard stationary compactor rental only $ 195.00 per month 6 yard rear load compactor rental only $ 195.00 per month *Rental/Lease/Purchase of Apartment style compactor and receiver boxes will be the responsibility of the individual customer, and not the responsibility of the Village. -Roll-off loads will be charged an additional $55.00 per ton for each ton over the stated tonnage limit. Solid Waste Cost Proposal Prepared by Lakeshore Recycling Systems LLC VILLAGE OF DEERFIELD COMMERCIAL SOLID WASTE HAULING & DISPOSAL SERVICES PRICE MATRIX EFF: APRIL 1, 2021 TO MARCH 31, 2022 RECYCLING Container Size 1xWk 2xWk 65 gallon $ $ 50.00 95 gallon $ $ 50.00 1 cy $ $ 50.00 1.5 cy $ $ 55.00 2 cy $ $ 60.00 4 cy $ $ 100.00 6 cy $ 60.00 $ 120.00 8 cy $ 90.00 $ 180.00 10 cy $120.00 $ 240.00 20 yard roll off $ 399.41 per haul 30 yard roll off $ 438.25 per haul 40 yard roll off $ 499.27 per haul Please list all items included for recycling pick-up: All items listed on SWALCO's website including: -Glass jars and bottles -Plastic bottles and containers (#1 -#7) -Aluminum -Tin & metal cans Fregyencll of Service 3xWk 4xWk 5xWk $ 75.00 $100.00 $ 125.00 $ 75.00 $ 100.00 $ 125.00 $ 75.00 $ 100.00 $ 125.00 $ 88.00 $ 115.00 $ 145.00 $ 90.00 $ 120.00 $ 150.00 $ 150.00 $ 200.00 $ 250.00 $ 180.00 $ 240.00 $ 300.00 $ 270.00 $ 360.00 $ 450.00 $ 360.00 $480.00 $ 600.00 **S ton limit **6ton limit **7 ton limit 6xWk 7xWk $ 150.00 NIA $ 150.00 NIA $ 150.00 NIA $ 175.00 NIA $ 180.00 NIA $ 300.00 NIA $ 360.00 NIA $ 540.00 NIA $ 720.00 NIA -Cardboard & Paper (chip board, newspaper, magazines, junk mail, catalogs, paper bags, telephone books, of fice paper, file folders and paper towel rolls) -Asceptic packaging (milk and certain beverage containers) Cost Proposal Prepared by Lakeshore Recycling Systems LLC VILLAGE OF DEERFIELD COMMERCIAL SOLID WASTE HAULING & DISPOSAL SERVICES PRICE MATRIX EFF: APRIL 1, 2021 TO MARCH 31, 2022 ORGANICS Description of Service: Organic material container service on an "As-Needed" or "Per Pull" basis. Organic material includes food scraps and landscape waste as defined In the Illinois Environmental Protection Act. Container Size 65 gallon cart 95 gallon cart 1 cubic yard 1.5 cubic yard Cost "Per Pull" $ 16.65 $ 21.33 $ 32.00 $ 37.32 If any of the above pricing on a per pull basis would be lowered based on volume (i.e. one location having a need for multiple containers) please explain: Cost Proposal Prepared by Lakeshore Recycling Systems LLC {00117640.1} Exhibit B EXHIBIT B INSURANCE PROVISIONS A. Insurance Requirements The Contractor shall procure and maintain the following insurance during the entire term of the agreement described in Section 3.1: Type of Insurance Required Minimum Coverage 1. Workers' Compensation Statutory 2. Employers' Liability $1,000,000 per accident $1,000,000 disease (policy limit) $1,000,000 disease (each employee) 3. Commercial General Liability, including "occurrence" coverage for: premises and operations, independent Contractors protective, contractual liability, broad form property damage and XCU hazards, products and completed operations (including broad form property damage), personal injury liability, and owner's protective liability. $3,000,000 per person per occurrence for bodily injury $5,000,000 per occurrence for bodily injury $1,000,000 per occurrence for property damage. 4. Business Auto liability (including owned, non- owned and hired vehicles and coverage for environmental liability) $3,000,000 per person $5,000,000 per accident for bodily injury $1,000,000 per accident for property damage 5. Umbrella/Excess liability (to apply as excess over 2, 3 and 4 above) $5,000,000 per occurrence $5,000,000 annual aggregate B. Miscellaneous Provisions 1. The insurance policies set forth in Sections A3 and A5 of this Exhibit B shall continue to be maintained for a period of two (2) years following the termination of the Agreement. 2. Equivalent insurance must be maintained by each subcontractor of the Contractor. 3. All insurance companies must be reasonably acceptable to the Village and may include self-insurance obtained by the Contractor. Minimum insurance carrier requirements include a current rating from A.M. Best Co., Inc. (or any successor publication of comparable standing within the industry) of "A VIII" and a license to do business in the State of Illinois. 4. All liability coverages shall be written on an occurrence basis. {00117640.1} Exhibit B 5. Prior to commencing Services under the agreements, the Contractor shall deliver, or cause to be delivered, to the Village certificates of insurance (and other evidence of insurance requested by the Village) which the Contractor is required to purchase and maintain pursuant to this Schedule. The Contractor shall deliver certificates of renewal or replacement policies or coverage no less than ten (10) days prior to the effective date of each renewal or replacement policy or coverage. 6. All insurance coverage required to be purchased and maintained shall contain a provision or endorsement providing that the coverage afforded will not be cancelled, materially reduced or altered or renewal refused until at least thirty (30) days' prior written notice has been given to the Village by certified mail. 7. The Contractor shall be responsible for promptly reporting all claims to the appropriate insurer on behalf of itself, the Village and the additional insured’s set forth below. 8. The insurance policies set forth in Sections A3, A4, and A5 of this Exhibit B shall be endorsed to include the Village, the directors, officers, employees, agents and members of the Village, SWALCO and the directors, officers, employees, agents and members of SWALCO as additional named insured’s for all activities of the Contractor in the performance of the Agreement. Such insurance is to be primary and non-contributory with any insurance secured and maintained by such additional named insureds. {00117640.1} Exhibit C EXHIBIT C FORM OF PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: that [insert full name and address of proposer here:] ____________________________________________ __________________________________________________________________________________ as Principal (hereinafter called the “Contractor”), and [insert full name and address of surety here:] __________________________________________ __________________________________________________________________________________ (hereinafter called the “Surety”), as Surety, a corporation organized and existing under the laws of the State of , hereinafter called Surety, are held and firmly bound unto the Village of Deerfield, IL as Obligee, hereinafter called the Village, in the full and just sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000), for the payment of which sum of money well and truly to be made, the CONTRACTOR and Surety bind themselves, and their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents, said amount to include payment of actual costs and damages and for attorneys' fees, engineering fees, accounting fees, consulting fees, court costs, interest, and any other fees and expenses resulting from or incurred by reason of the CONTRACTOR’s failure to promptly and faithfully perform its contract with the Village, said contract being more fully described below, and to include attorneys' fees, court costs, and other expenses necessarily paid or incurred in successfully enforcing performance of the obligation of Surety under this bond. WHEREAS, the CONTRACTOR has entered into a written agreement dated , 2021, with the Village entitled “COMMERCIAL SOLID WASTE COLLECTION SERVICES AGREEMENT” (the “Contract”), the terms and conditions of which are by this reference incorporated herein as though fully set forth herein. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the CONTRACTOR shall well, truly, and promptly perform all the undertakings, covenants, terms, conditions, and agreements of the said CONTRACTOR under the Contract, including, but not limited to, the CONTRACTOR’s obligations under the Contract: (1) to provide and perform, in the manner specified in the Contract, all necessary work, labor, services, transportation, materials, equipment, apparatus, machinery, tools, fuels, information, data, and other means and items necessary for the collection of all municipal waste, landscape waste, and recyclable materials from all Customers, as provided in the Contract; (2) to procure and furnish all permits, licenses, and other governmental authorizations necessary in connection therewith and to comply with the laws of the State of Illinois and ordinances and regulations of the Village in connection therewith; (3) to procure and furnish the Performance Bond and all certificates and policies of insurance specified in the Contract; (4) to pay all applicable federal, state, and local taxes; (5) to indemnify the Village against any loss resulting from any breach or failure of performance by the CONTRACTOR under the Contract; (6) to do all other things required of the CONTRACTOR by the Contract; and (7) to provide, perform, and complete all of the foregoing in a proper and workmanlike manner and in full accordance and compliance with, and as required by, the Contract; all of which is herein referred to as the "Work," then this obligation shall be null and void; otherwise it shall remain in full force and effect. {00117640.1} Exhibit C For purpose of this bond, a claimant is defined as one having a direct contract with CONTRACTOR or with a subcontractor of Contractor to provide, perform, or complete any part of the Work. CONTRACTOR and Surety hereby jointly and severally agree that every claimant who has not had all just claims for the furnishing of any part of the Work paid in full, including, without limitation, all claims for amounts due for materials, lubricants, oil, gasoline, rentals of or service or repairs on machinery, equipment, and tools consumed or used in connection with the furnishing of any part of the Work, may sue on this bond for the use of such claimant, may prosecute the suit to final judgment for such sum or sums as may be justly due such claimant, and may have execution therein; provided, however, that Village shall not be liable for the payment of any costs or expenses of any such suit. To the extent applicable, the provisions of 30 ILCS 550/1 and 30 ILCS 550/2 shall be deemed inserted herein, including the time limits within which notices of claim must be filed and actions brought under this bond. CONTRACTOR and Surety hereby jointly agree that Village may sue on this bond if Village is held liable to, or voluntarily agrees to pay, any claimant directly, but nothing in this bond shall create any duty on the part of Village to pay any claimant. Surety, for value received, hereby stipulates and agrees that no changes, modifications, alterations, omissions, deletions, additions, extensions of time, or forbearance on the part of either the Village or the CONTRACTOR to the other in or to the terms of said Contract; in or to the schedules, plans, drawings, or specifications; in or to the method or manner of performance of the Work; or in or to the mode or manner of payment therefore shall in any way release the CONTRACTOR and Surety or either or any of them, or any of their heirs, executors, administrators, successors, or assigns, or affect the obligations of Surety on this bond, all notice of any and all of the foregoing changes, modifications, alterations, omissions, deletions, additions, extensions of time, or forbearance, and notice of any and all defaults by the CONTRACTOR or of the Village’s termination of the CONTRACTOR, being hereby waived by Surety. Notwithstanding anything to the contrary in the foregoing paragraph, in no event shall the obligations of Surety under this bond in the event of the CONTRACTOR’s default be greater than the obligations of the CONTRACTOR under the Contract in the absence of such CONTRACTOR default. In the event of a default or defaults by the CONTRACTOR, the Village shall have the right to reimburse itself from the proceeds of this bond for any and all costs, expenses, losses, damages, liquidated damages, liabilities, suits, judgments, awards, attorneys’ fees, and administrative expenses incurred, suffered, or sustained by the Village and/or chargeable to the CONTRACTOR under the Contract or this bond. In addition, the Village shall have the right to take over and complete the Contract upon 30 calendar days’ written notice to Surety, in which event Surety shall pay the Village all costs incurred by the Village in taking over and completing the Contract or, at its option, the Village may instead request that Surety take over and complete the Contract, in which event Surety shall take reasonable steps to proceed promptly with completion no later than 30 calendar days from the date on which the Village notifies Surety that the Village wants Surety to take over and complete the Contract. The Village shall have no obligation to actually incur any expense or correct any deficient performance of the CONTRACTOR in order to be entitled to receive the proceeds of this bond. No right of action shall accrue on this bond to or for the use of any person or corporation other than the Village or the heirs, executors, administrators, or successors of the Village. {00117640.1} Exhibit C Signed and sealed this day of __________, 2020. Attest/Witness: _________________________________________ CONTRACTOR By: __________________________________ By: ____________________________________ Title: __________________________________ Title: ____________________________________ Attest/Witness: _________________________________________ SURETY By: __________________________________ By: ____________________________________ Title: __________________________________ Title: ____________________________________ {00117635.5} RESIDENTIAL SOLID WASTE & RECYCLING COLLECTION SERVICES AGREEMENT BETWEEN VILLAGE OF DEERFIELD AND LAKESHORE RECYCLING SYSTEMS DATED: January 19, 2021 {00117635.5} i TABLE OF CONTENTS Page PREAMBLE 1 ARTICLE I DEFINITIONS Section 1.1 Definitions 1 Section 1.2 Rules of Construction 3 ARTICLE II SCOPE OF SERVICES Section 2.1 General Services 3 Section 2.2 Revenue Collection 4 Section 2.3 Right-of-Way Services 4 Section 2.4 Modification of Required Services 4 Section 2.5 Brochure 4 ARTICLE III TERM OF AGREEMENT Section 3.1 Term of Agreement 5 ARTICLE IV SOLID WASTE COLLECTION AND DISPOSAL Section 4.1 Municipal Waste 5 Section 4.2 Landscape Waste 6 Section 4.3 Recyclable Materials 7 Section 4.4 Private Services 8 Section 4.5 Vacant Properties 9 Section 4.6 Disposal 9 Section 4.7 Solid Waste Collection Data 10 ARTICLE V COMPENSATION Section 5.1 Residential Service 11 ARTICLE VI REVENUE COLLECTION Section 6.1 Billing of Accounts 11 Section 6.2 Private Service 11 ARTICLE VII TITLE TO RESIDENTIAL MATERIALS Section 7.1 Title to Residential Materials 12 ARTICLE VIII RECYCLABLE MATERIALS Section 8.1 Recyclable Materials Collection Service 12 {00117635.5} ii ARTICLE IX CUSTOMER SERVICE STANDARDS Section 9.1 Office and Telephone 13 Section 9.2 Minimum Residential Customer Service Standards 13 Section 9.3 Liaison 15 ARTICLE X BREACH; EVENTS OF DEFAULT AND REMEDIES Section 10.1 Breach by Contractor 15 Section 10.2 Breach by Village 15 Section 10.3 Events of Default and Remedies of Village 16 Section 10.4 Events of Default and Remedies of Contractor 17 Section 10.5 Force Majeure……………………………………………………………. 17 ARTICLE XI INSURANCE AND INDEMNIFICATION Section 11.1 Insurance 18 Section 11.2 Indemnification 18 ARTICLE XII MISCELLANEOUS Section 12.1 Non-Assignability 19 Section 12.2 Equal Employment Opportunity 19 Section 12.3 Prevailing Wages 20 Section 12.4 Performance Bond 21 Section 12.5 Equipment to be Used by Contractor 21 Section 12.6 Compliance with Laws 22 Section 12.7 Care and Performance 22 Section 12.8 No Alcohol or Drugs 22 Section 12.9 Governing Law 22 Section 12.10 Severability 22 Section 12.11 Entire Agreement 23 Section 12.12 Notices 23 Section 12.13 Publicity 23 EXHIBITS EXHIBIT A Pricing Sheet EXHIBIT B Insurance Provisions EXHIBIT C Village Collection Sites EXHIBIT D Designated Condominiums Included in Residential Service EXHIBIT E Sample Food Scraps Brochure {00117635.5} 1 This SOLID WASTE & RECYCLING COLLECTION SERVICES AGREEMENT ("Agreement") is made and entered into January 19, 2021 by and between LAKESHORE RECYCLING SYSTEMS, LLC, an Illinois limited liability company (the "Contractor") and the VILLAGE OF DEERFIELD, an Illinois home rule municipal corporation (the "Village"). PREAMBLE WHEREAS, the Village, to protect the public health and welfare of its residents has deemed it necessary to collect, transport and dispose of Residential Materials (as defined in Section 1.1 of this Agreement); and WHEREAS, the Village is authorized pursuant to the provisions of Section 11-19-1 of the Illinois Municipal Code (65 ILCS 5/11-19-1) to provide for the method or methods of collection, transportation and disposal of municipal waste located within its boundaries and to provide that the method chosen may be the exclusive method to be used within its boundaries; and WHEREAS, the Village desires to enter into this Agreement to provide Residential Materials collection, transportation and disposal services from all residential single-family dwellings with two units or less, and four (4) condominium properties (the “Designated Condominiums” listed in Exhibit D) as well as Village-owned/public facilities, and to set the rates and charges relating to such services; and WHEREAS, the Village has determined that it is in the best interests of its residents to contract with a single waste hauler to collect, transport and properly manage Residential Materials at a facility or facilities selected in accordance with the terms of this Agreement; and WHEREAS, the Contractor, pursuant to the terms of this Agreement and on behalf of the Village, is willing to collect, transport and properly manage Residential Materials at a facility or facilities selected in accordance with the terms of this Agreement. NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions herein contained: ARTICLE I DEFINITIONS Section 1.1 Definitions Whenever used in this Agreement, the following capitalized terms shall have the following meanings unless a different meaning is required by the context: a) “Agency” means the Solid Waste Agency of Lake County, known as SWALCO. b) “Breach” means a breach of this Agreement by either the Village or the Contractor, in a manner described in Article X of this Agreement. c) “Bulk Items” means household items of such size as to render them unsuitable for deposit in a refuse container but which one person can lift into a refuse truck, such as furniture, mattresses, box springs, toilets, storm doors and windows, metal and lumber products and machine parts. {00117635.5} 2 d) “Condominium” means a multi-family building, containing more than two dwelling units which has been submitted to the provisions of the Illinois Condominium Property Act. e) “Container”, when used in connection with the term “Containerized Collection Service,” shall mean a covered, leak-proof, large capacity container or dumpster owned and provided by the Contractor with sufficient volume to contain all garbage and refuse placed for disposal at either the Village Collection Sites or by the occupants of the Designated Condominiums between regularly scheduled collections f) “Containerized Collection Service” means garbage and refuse collection service provided to the owners and occupants of Units in a Condominium in Containers provided by the Contractor. g) “Contractor” means Lakeshore Recycling Systems, LLC, and its successors and assignees. h) “Curbside” means no closer than two feet (2') nor farther than five feet (5') from the street pavement edge. i) “Designated Recycling Facility” means a materials recovery facility designated by the Village as a facility to which Recyclable Materials are transported for processing. j) “Event of Default” means a declaration of default by either the Village or the Contractor, as described in greater detail in Article X of this Agreement. k) “Food Scraps ” mean garbage that is capable of being composted and as further defined in 415 ILCS 5/3.197. l) “Hazardous Waste” shall have the meaning attributed to it in Section 3.220 of the Illinois Environmental Protection Act (415 ILCS 5/3.220). m) “Landscape Waste” means all accumulations of grass or shrubbery cuttings, leaves, tree limbs, aquatic weeds, and other material accumulated as the result of the care of lawns, shrubbery, vines and trees, and as otherwise described at 415 ILCS 5/3.270. n) “Landscape Waste Sticker” means a sticker or tag to be sold by the Contractor or its agents and that is to be affixed to Landscape Waste designated for collection from a Residential Customer who places for collection on a given pick-up day cans, bags or bundles of Landscape Waste. o) “Residential Service" has the meaning set forth in Section 2.1 of this Agreement. p) “Municipal Waste” means garbage, refuse, industrial, lunchroom or other waste, and other material described at 415 ILCS 5/3.290 resulting from operation of single-family and multi-family residential properties and from community activities; provided, {00117635.5} 3 however, that "Municipal Waste" shall not include Recyclable Materials or Landscape Waste. q) “Private Service” means the collection of refuse and waste by the Contractor from Residential Customers, pursuant to separate agreements or arrangements between a Residential Customer and the Contractor. r) “Recyclable Materials” means aluminum cans, tin, steel and bi-metal cans; clear, green and brown glass bottles and jars; newspapers, magazines, and mixed papers (junk mail, chipboard, white and colored paper, brown kraft paper bags); corrugated cardboard, #1 PETE plastic containers and #2 HPDE plastic containers, #3 - #5 plastic containers and any other material or materials which the Village identifies as a "Recyclable Material" subsequent to the execution of this Agreement, pursuant to Section 8.1(e) of this Agreement. s) “Residential Customer" means the owner or occupant of a single-family dwelling, townhome and multi-family dwellings of 2 or less units and Designated Condominiums listed in Exhibit D to whom the Contractor furnishes services pursuant to the Agreement. t) “Residential Materials” means Municipal Waste, Recyclable Materials, Landscape Waste, and any other similar materials. u) “State” means the State of Illinois. v) “Curbside” means within four (4) feet of the curb or edge of street pavement in front of a Residential Customer's property. w) “Unit” when used in connection with the term “Condominium”, shall mean an individual dwelling unit in a Condominium intended for independent ownership, occupancy and use. x) “Village” means Deerfield Village, Illinois. y) “Village Collection Sites” means those public areas owned or maintained by the Village or other public entity from which the Contractor is required to collect Residential Materials pursuant to this Agreement, as identified in Exhibit C to this Agreement. z) “Village Code” means "The Deerfield Municipal Code" as amended. aa) “Village Container” means a front-loading container suitable for automated waste and recycling collection by private waste haulers from a Municipal Collection Site. bb) “Wheeled Cart” means a two-wheel durable, plastic, lidded container suitable for curbside automated waste and recycling collection by private waste haulers. A Large Wheeled Cart shall have a capacity of approximately 95 gallons, a Medium Wheeled Cart shall have a capacity of approximately 65 gallons, and a Small Wheeled Cart shall have a capacity of approximately 35 gallons. “White Goods” means all discarded refrigerators, ranges, water heaters, freezers, air conditioners, humidifiers and other similar domestic and commercial large appliances as defined by section 22.28 of the Illinois Environmental Protection Act. {00117635.5} 4 cc) “White Goods” means all discarded refrigerators, ranges, water heaters, freezers, air conditioners, humidifiers and other similar domestic and commercial large appliances as defined by section 22.28 of the Illinois Environmental Protection Act. Section 1.2 Rules of Construction a) Grammatical Usage and Construction. In construing this Agreement, feminine or neuter pronouns shall be substituted for those masculine in form and vice versa, and plural terms shall be substituted for singular and singular for plural, in any place in which the context so requires. b) Headings. The headings, titles, and captions in this Agreement have been inserted only for convenience and in no way define, limit, extend, or describe the scope or intent of this Agreement. c) Calendar Days. Unless otherwise provided in this Agreement, any reference in this Agreement to “day” or “days” shall mean calendar days and not business days. If the date for giving of any notice required to be given, or the performance of any obligation, under this Agreement falls on a Saturday, Sunday, or federal holiday, then the notice or obligation may be given or performed on the next business day after that Saturday, Sunday, or federal holiday. ARTICLE II SCOPE OF SERVICES Section 2.1 General Services The Contractor shall provide the following solid waste hauling, collection and disposal services in accordance with the provisions of this Agreement: a) Municipal Waste. Collection and transportation and disposal of Municipal Waste as more particularly described in Section 4.1 of this Agreement. b) Landscape Waste and Food Scraps . Collection, transportation and disposal of Landscape Waste and Food Scraps as more particularly described Section 4.2 of this Agreement. c) Recyclable Materials. Collection, transportation and disposal of Recyclable Materials as more particularly described in Section 4.3 of this Agreement. d) Containers for Residential Customers. The Contractor shall provide refuse carts and containers as follows: (i) For each Residential Customer, the Contractor shall provide one (1) Large Wheeled (95 gallon) Cart for Municipal Waste, at the cost of the Contractor. (ii) For each Residential Customer, the Contractor shall provide one (1) Medium Wheeled Cart for Recyclable Materials, at the cost of the Contractor. (iii) The Contractor shall furnish at no separate cost to the Residential Customer a shared container for Condominiums. {00117635.5} 5 The Contractor on behalf of the Village shall furnish the services described in Sections 2.1(a), (b), (c) and (d) (the "Residential Services") and bill the Village for such services under this Agreement. The Contractor shall be the sole and exclusive franchisee of the Village to provide the Residential Services. e) Village Site Collection. The Contractor shall, without cost to the Village: (i) furnish Village Containers for the collection of Municipal Waste and Recyclable Materials at each Village Collection Site; and (ii) collect, transport, and dispose of such Municipal Waste and Recyclable Materials, at dates and times and subject to such additional conditions as set forth this Agreement. f) Electronic Device Recycling Collection Events. The Contractor shall provide drop-off collection of electronic devices (as defined by the Illinois Consumer Electronics Recycling Act 415 ILCS 151/1 et seq.) no less than twice annually for a seven-day period per collection. The Contractor shall supply as many 20 cubic yard roll-off containers as necessary during each seven-day collection event to satisfy drop-off demand. The Village shall instruct the Contractor where to locate the requested roll-off containers during each seven-day collection event. g) Shredding Event. The Contractor shall provide and pay for one shredding event per year, with the date and location to be determined by the Village, with reasonable notice to the Contractor. h) Books and Records; Audits. Contractor shall permit access to all relevant books, records, accounts and work sites by personnel of the Village. In addition, the Village shall have the right, upon reasonable notice to Contractor, to undertake appropriate audits to ensure compliance by Contractor with the terms of this Agreement. Section 2.2 Revenue Collection The Village shall provide revenue collection services in accordance with Article VI for all Residential Services provided under this Agreement. Contractor shall not be required to participate in billing or collecting services fees from Village Customers. Section 2.3 Right-of-Way Services The Contractor shall clear debris accumulated on public rights-of-way during inclement weather events, upon receipt of a request therefor by the Village and at a rate to be mutually determined by the Village and the Contractor. Section 2.4 Modification of Required Services The Village reserves the right to adjust or expand the scope of the Residential Services required under this Agreement, upon thirty (30) days prior written notice to the Contractor, to accommodate changes in the definition of “Residential Materials” or changes in the scope of services provided by SWALCO. The Village and the Contractor agree to negotiate an equitable adjustment to the Contractor's compensation under this Agreement required as a result of any adjustment or expansion of the scope of the Residential Services. Section 2.5 Customer Education; Website A. Customer Brochure. Upon execution of this Agreement, the Contractor, at its expense, shall be required to develop, print and distribute to all residential customers, and all new customers a brochure, approved by the Village, explaining the Municipal Waste, Recyclable Materials and {00117635.5} 6 Landscape Waste/Food Scraps programs covered under this Agreement. The brochure will include a method for customers to change their waste, recycling and/or landscape waste/Food Scraps services. The brochure shall be updated and distributed only if there is a change in services that warrants distributing a new brochure. B. Website. During the term of the Agreement, the Contractor will maintain a publicly accessible website with the following components: i. Information on service levels offered by Contractor to the Residential Customers and corresponding rates; ii. Contractor regulations and requirements for collection of Municipal Waste, Recyclable Materials, and Landscape Waste; iii. On-line bill payment for all services offered by Contractor to Residential Customers; iv. Submission of Cart size selection and Cart Change-Out/Replacement requests; and v. Scheduling of special collections and other service requests by Customers. ARTICLE III TERM OF AGREEMENT Section 3.1 Term of Agreement The initial term of this Agreement shall commence on April 1, 2021 (“Commencement Date”), and end on March 31, 2026. Upon the mutual written consent of both parties, this Agreement can be extended for up to five additional one-year renewal periods. At the end of any contract term, the Village reserves the right to unilaterally extend this Agreement for a period of up to ninety (90) days for the purpose of arranging to place a new contract in effect. ARTICLE IV SOLID WASTE COLLECTION AND DISPOSAL Section 4.1 Municipal Waste The Contractor shall collect, transport, and dispose of Municipal Waste in accordance with the following: a) Residential Customer Selection of Service. Each Residential Customer shall receive “Unlimited Service” from the Contractor, which shall consist of one of the following (i) Once-per-week subscription service which provides for collection by the Contractor of Municipal Waste from one Large Wheeled Cart and an unlimited number of approved containers, and for which the Residential Customer shall pay to the Contractor a flat monthly rate in accordance with the Schedule of Rates and Prices attached as Exhibit A of this Agreement. {00117635.5} 7 (ii) Once a week containerized services which provides for collection by the Contractor of Municipal Waste from shared containers from Designated Condominiums listed in Exhibit D, and for which the Residential Customer shall pay to the Contractor a flat monthly rate in accordance with Exhibit A of this Agreement. Each Residential Customer shall have the right, within 45 days of Commencement Date, to downsize their Large Wheeled Cart to a Medium or Small Wheeled Cart, at no additional charge. If the Cart size is changed after the first 45 days the Contractor may charge the Residential Customer a change of service charge as set forth in Exhibit A of this Agreement. b) Location of Service. The Contractor shall collect all Municipal Waste from single-family homes and townhomes that is placed by Residential Customers Curbside in front of the Residential Customer’s property. The Contractor shall collect Municipal Waste from Designated Condominiums that is placed in designated shared refuse containers. c) Time of Collection. Residential Customers are required to place containers Curbside no later than 6:00 a.m. on the designated day for collection. All Municipal Waste shall be collected from each Residential Customer no later than 7:00 p.m. on the designated day of collection, except as otherwise agreed between the Village and the Contractor. d) Transport and Disposal. All Municipal Waste collected pursuant to this Section 4.1 shall be transported and disposed of in accordance with Section 4.6 of this Agreement. e) Containers. The Contractor shall furnish, at no additional cost to the Residential Customer, an acceptable container for Municipal Waste, which shall be a Large Wheeled Cart, unless the Residential Customer opts to select a Medium or Small Wheeled Cart. If a Residential Customer chooses to use his own container for excess Municipal Waste, it must be a container of standard waterproof construction of durable metal or plastic material, with a tight-fitting cover and handles, not exceeding a capacity of approximately thirty-two (32) gallons. The Contractor shall, at a Residential Customer’s request and the Contractor’s sole cost and expense, provide an additional Medium Wheeled Cart or Large Wheeled Cart to the Residential Customer. All Wheeled Carts for Municipal Waste must be of the same style, color, and configuration, to insure uniformity of appearance. All Wheeled Carts will be owned and maintained by the Contractor. The Contractor will furnish, at no separate cost to the Residential Customers, shared Containers for Designated Condominiums. f) Bulk Item and White Good Service. Bulk item pick-up at Curbside is included as part of Municipal Waste collection. Such pick-up will be made once per week and will be conducted on the same day as the Municipal Waste pick-up and will include one Bulk Item per pick-up. White Goods collection will be on four days per year on dates mutually agreeable to the Village and Contractor. Residential Customers must call or email prior to the collection date to schedule a pick-up with Contractor on these designated days. g) Village Site Collection; Annual Free Disposal Volume; and Special Events. The Contractor shall, without cost to the Village, at Village Collection Sites (see Exhibit C): (i) furnish Village Containers for the deposit of Municipal Waste at each Village Collection Site; and (ii) collect, transport, and dispose of such Municipal Waste and at dates and times mutually agreeable to the Village and the Contractor. {00117635.5} 8 The Contractor shall collect, transport and furnish the Village with containerized services for garbage and refuse at special events in accordance with the following: • Fine Arts Festival (June) - One (1) 20 cu. yd. container and 50 cardboard containers • Harvest Fest (September) - One (1) 20 cu. yd. container and 50 cardboard containers • Family Days (3rd and 4th of July) – Two (2) 20 cu. yd. container and 150 cardboard containers • Holiday Tree Sale – One (1) 6 cu. yd. container • Miscellaneous – 50 additional cardboard containers Section 4.2 Landscape Waste/Food Scraps Collection The Contractor shall collect, transport, and dispose of commingled Landscape Waste and Food Scraps in accordance with the following: a) Year-Round Containerized Landscape Waste/Food Scraps Collection. Each Residential Customer will, at no additional charge or cost, receive year-round weekly collection of Landscape Waste and Food Scraps by Contractor from a sealable 35-gallon container to be provided by Contractor (“Containerize Collection Service”). Contractor will only be obligated to collect any Landscape Waste/Food Scraps outside of the sealable 35-gallon container provided by the Contractor if the Residential Customer purchases one of the supplemental collection service options described in Section 4.2(b). b) Supplemental Residential Customer Landscape Waste/Food Scraps Collection. In addition to the Containerized Collection Service for Landscape Waste/Food Scraps, from April 1st through December 15th of each year (“Supplemental Collection Season”), each Residential Customer shall have the right to select one of the following supplemental Landscape Waste/Food Scraps Collection services: (i) Supplemental Collection Subscription. Each Residential Customer shall have the right to subscribe to a Landscape Waste/Food Scraps collection service from the Contractor for a flat annual rate set forth in Exhibit A that includes collection of an unlimited number of acceptable containers or bundles during the Supplemental Collection Season. (ii) Pay-per-Bag/Sticker System: A once-per-week volume-based system, for which the Residential Customer shall pay to the Contractor only in proportion to the quantity of Landscape Waste/Food Scraps actually collected from the Residential Customer. Contractor will collect all Landscape Waste/Food Scraps placed in acceptable containers or bundles affixed with a Landscape Waste Sticker during the Supplemental Collection Season. Contractor shall have no obligation to collect Landscape Waste/Food Scraps from any container or bundle which is not affixed with Landscape Waste Sticker. c) Containers/Bundles. The Contractor shall have no obligation to collect any Landscape Waste/Food Scraps unless such waste is either: (i) Placed in the sealable 35-gallon container provided by the Contractor; or {00117635.5} 9 (ii) Placed in biodegradable paper “kraft”-type bags of a capacity not to exceed 32 gallons; or BPI certified compostable liner bags (plastic bags will not be accepted). (iii) Placed in metal or plastic cans of a capacity not to exceed 32 gallons; or (iv) If the Landscape Waste cannot reasonably be placed in bags or cans, securely tied with biodegradable string or twine, in bundles not to exceed four feet in length and 24 inches in diameter. d) Christmas Trees. For all Residential Customers (whether or not subscribers for Landscape Waste/Food Scraps collection services), the Contractor shall collect, transport, and dispose of any Christmas tree left curbside by any Residential Customer between January 2 and January 25, at no cost to the Residential Customer. e) Location of Collection. The Contractor shall collect Landscape Waste/Food Scraps that is placed by each Residential Customer Curbside in front of the Residential Customer's property. f) Time of Collection. Residential Customers are required to place Landscape Waste/Food Scraps containers at street-side by 6:00 a.m. on the designated day for collection. All Landscape Waste/Food Scraps shall be collected from each Residential Customer no later than 7:00 p.m. on each designated day of collection, except as otherwise agreed between the Village and the Contractor. Landscape Waste/Foods Scraps placed out for pick-up through one of the Supplemental Residential Landscape Waste/Food Scraps Collection options will only be collected April 1 st through December 15th of each calendar year. The Contractor shall collect Landscape Waste/Food Scraps on the same day as the Contractor collects Municipal Waste and Recyclable Materials from the Residential Customer. g) Transport and Disposal. All Landscape Waste collected pursuant to this Section 4.2 shall be transported and disposed of in accordance with Section 4.6 of this Agreement. h) Food Scraps Collection Education and Awareness. Contractor will make all commercially reasonable efforts to encourage participation by Residential Customers in the Containerized Collection Service and to educate Residential Customers on appropriate materials to be disposed of with this service. Contractor will provide all Residential Customers with an educational brochure detailing those materials that are eligible for Food Scraps collection, in substantially the form attached to this Agreement as Exhibit E. Contractor will provide the Village with quarterly reports of volumes of Landscape Waste/Foods Scraps collected through the Containerized Collection Service. Section 4.3 Recyclable Materials The Contractor shall collect, transport, and manage Recyclable Materials in accordance with the following: a) Location of Collection from Residential Customers. The Contractor shall collect all Recyclable Materials from single-family homes and townhomes that are placed by Residential Customers Curbside in front of the Residential Customer’s property. The Contractor shall collect Recyclable Materials from Condominiums that are placed in designated shared Recyclable Materials containers. b) Time of Collection from Residential Customers. Residential Customers are required to place Recyclable Materials containers at street-side no later than 6:00 a.m. on the designated collection {00117635.5} 10 day. All Recyclable Materials shall be collected from each Residential Customer no later than 7:00 p.m. on each designated collection day, except as otherwise agreed between the Village and the Contractor. The Contractor shall collect Recyclable Materials from each Residential Customer once per week, on the same day as the Contractor collects Municipal Waste from the Residential Customer. c) Containers. The Contractor shall furnish a Medium Wheeled Cart for Recyclable Materials to the Residential Customer at no additional cost. Once a year, beginning in 2021, and during the entire month of May, Residential Customers will be allowed to upgrade the cart, at no charge, from a Medium Wheeled Cart to a Large Wheeled Cart one time during the term of this Agreement. If the Residential Customer chooses to use his own container for Recyclable Materials that exceed the capacity of the Cart provided by the Contractor , it shall be a container of standard waterproof construction of durable metal or plastic material, with a tight-fitting cover and with handles, not exceeding a capacity of approximately thirty-two (32) gallons. The Contractor shall provide an additional Medium Wheeled Cart or Large Wheeled Cart, at the Residential Customer’s option, at a cost as listed in Exhibit A. All Wheeled Carts for Recyclable Materials shall be of the same style, color, and configuration, to insure uniformity or appearance. In addition, all Wheeled Carts for Recyclable Materials shall have a different color lid than the Municipal Waste Wheeled Carts, shall have a recycling sticker or permanent stamp on the cart lid showing what items are accepted in the recycling program, and shall be approved by the Village prior to being ordered and used in the Village. Wheeled Carts shall be owned and maintained by the Contractor. The Contractor shall furnish at no separate cost to the Residential Customer a shared container for Condominiums. d) Village Sites Collection. The Contractor shall, without cost to the Village, at Village Collection Sites: (i) furnish Village Containers for the deposit of Recyclable Materials at each Village Collection Site; and (ii) collect, transport, and dispose of such Recyclable Materials, at dates and times mutually agreeable to the Village and the Contractor. e) Transport and Disposal. All Recyclable Materials collected pursuant to this Section 4.3 shall be transported and disposed of in accordance with Section 4.6 of this Agreement. f) Electronic Devices Recycling. The Contractor shall provide drop-off collection of electronic devices (as defined by the Illinois Consumer Electronics Recycling Act 415 ILCS 151/1 et seq.) on at least twice annually for a seven-day period each event. The Contractor shall supply as many 20 cubic yard roll-offs as necessary during each seven-day period. The Village shall instruct the Contractor where to locate the 20 cubic yard roll-offs during each seven-day collection event. g) Shredding Event. The Contractor shall provide and pay for one shredding event per year, with the date and location to be determined by the Village, with reasonable notice to the Contractor. Section 4.4 Private Services a) In addition to the Residential Services provided by the Contractor under Sections 4.1 through 4.3 of this Agreement, the Contractor shall also make available, to all Residential Customers, Private Service for collection of all types of solid waste not otherwise covered by this Agreement, including, but not limited to: White Goods; auto parts (excluding Hazardous Waste); large amounts of building materials (including lumber, structural steel, concrete, bricks and stones); heavy appliances; pianos; and such other bulky items that require more than one person to handle. {00117635.5} 11 b) For services provided pursuant to this Section 4.4, the Contractor agrees to have available tractor loaders, trailers, and other necessary equipment. Upon the request of a Residential Customer, the Contractor shall furnish an estimate for the cost of removal of any materials in connection with Private Services to be provided by the Contractor and shall provide the Private Services within one week of acceptance of the cost estimate. c) The Contractor shall charge Residential Customers the cubic yard rate as set forth in Exhibit A for Private Services. d) The Contractor, upon receipt of a notice from the Village, shall provide any Residential Customer in the Village a special emergency pick-up for garbage, refuse and miscellaneous waste materials, in circumstances requiring prompt disposition of the waste materials and where a delay in pick-up until the next regularly scheduled pick-up day would or might be injurious or detrimental to the health or welfare of the community. Any such special emergency service shall be completed at the direction of the Village. This provision does not and is not intended to provide free waste hauling service to the Village and its residents in the event of a natural disaster, such as tornado, wind storm, flooding or another similar occurrence. The Contractor shall charge for emergency services as set forth in Exhibit A. In the case of a natural disaster, if the Village decides it is necessary to provide disposal services to its residents the Contractor shall charge for such services as set forth in Exhibit A. Section 4.5 Vacant Properties The Village agrees to cooperate in providing information in its possession related to property vacancies or any other similar information that will assist the Contractor in the performance of its obligations under this Agreement. Section 4.6 Disposal a) Municipal Waste. i) Municipal Waste shall be removed from the Village at the close of each day of collection and shall be disposed of at one or more SWALCO-designated lawfully operated pollution control facilities at the Contractor’s sole cost and expense. The SWALCO-designated facilities in operation as of the Effective Date of this Agreement are the Countryside Landfill in Grayslake, the Zion Landfill in Zion, the Livingston Landfill in Livingston County, Illinois, the Lee County Landfill in Lee County, IL, and the Newton County Landfill in Newton County, Indiana. ii) Notwithstanding the foregoing, the Village reserves the right to direct the location of disposal to another pollution control facility. b) Landscape Waste/Food Scraps. i) All Landscape Waste/Food Scraps shall be disposed of in a lawful manner, at a properly permitted landscape waste composting facility or facilities. ii) Not less than 30 days prior to the date on which the Contractor commences disposal of Landscape Waste/Food Scraps at a particular location(s), the Contractor shall notify the Village in writing of the designation of such location. Notwithstanding the foregoing, the Village reserves the right to reject any {00117635.5} 12 proposed location, or to direct the location of disposal to an alternate Landscape Waste facility. iii) No Landscape Waste/Food Scraps may be disposed of at a landfill or solid waste incinerator, unless otherwise authorized by the Illinois Environmental Protection Act (415 ILCS 5/1 et seq.) and approved in advance and in writing by the Village. c) Recyclable Materials. i) All Recyclable Materials shall be collected, separated and otherwise treated to facilitate the sale of Recyclable Materials to end-use markets or to Recyclable Material brokers. All collected Recyclable Materials shall be recycled regardless of the income received or the cost to the Contractor resulting from the sale of the Recyclable Materials. ii) As of the Commencement Date of this Agreement, SWALCO does not have an agreement in place with a designated recycling facility (the “Designated Facility”), therefore the Contractor shall choose its own facility to take the Village’s Recyclable Materials to and notify the Village within 30 days of such location. Notwithstanding the foregoing, the Village reserves the right to designate an alternate Designated Facility. In the event that SWALCO does develop a Designated Facility, the Contractor shall delivery all collected Recyclable Material to the Designated Facility or, alternatively, the Contractor and the Village may mutually agree to allow the Contractor to continue using its own facility but the Contractor shall pay the equivalent economic benefit to the Village and Lake County that would have otherwise been derived from such Designated Facility. iii) No Recyclable Materials may be deposited in a landfill or waste incinerator, unless approved in advance and in writing by the Village. The Contractor shall abide by the Rules and Regulations set forth by the Designated Facility. The Village may terminate this Agreement if the Contractor fails to abide by the Rules and Regulations set forth by the Designated Facility used for the processing of collected Recyclable Materials. d) In the event that the Village directs the disposal of any Municipal Waste, Landscape Waste or Recyclable Materials to any alternate facility pursuant to this Section 4.6, the Village and the Contractor agree to negotiate an equitable adjustment to the Contractor’s compensation under this Agreement because of an increase or decrease in realized costs. Section 4.7 Solid Waste Collection Data a) The Contractor shall provide to the Village and SWALCO, on a quarterly basis, a report on the quantity, in tons, of: (i) Municipal Waste collected within the Village, (ii) Recyclable Materials collected within the Village, and (iii) Landscape Waste/Food Scraps collected within the Village. The Contractor shall also provide data to the Village on the amount of electronic devices collected from the Village’s drop-off program. {00117635.5} 13 b) The Contractor shall prepare and deliver to the Village, at least once every 12 calendar months, a breakdown, by number and type, of the Residential Customers in the Village. c) The Contractor acknowledges and agrees that the Village will provide program data and other public information to each Residential Customer upon request. ARTICLE V COMPENSATION Section 5.1 Residential Service a) For providing the services described in this Agreement, the Contractor shall receive as compensation from each Residential Customer the flat rates and volume rates set forth in Exhibit A attached to this Agreement, as adjusted pursuant to Section 5.1(b) of this Agreement. The Contractor shall not impose or assess any fuel surcharges , administrative fees, environmental fees, recycling contamination fees or charge Residential Customers any amounts in excess of the charges derived solely from the rates set forth in Exhibit A. b) On April 1, 2022 and on each twelve-month anniversary date thereafter (the “Adjustment Date”), the charges as identified in Exhibit A shall increase by two (2%) percent over the prior period’s charges; provided that if the percentage increase in the CPI (as measured below) shall exceed two (2%), then the charges identified in Exhibit A shall increase by the percentage increase in the CPI, up to a maximum three and one-half (3.5%) percent increase in the CPI, and any percentage increase in the CPI over three and one-half (3.5%) percent shall be disregarded. That is, the charges identified in Exhibit A shall increase by a minimum of two (2%) and a maximum of three and one-half (3.5%) percent on each Adjustment Date. The percentage increase in the CPI on each Adjustment Date shall be determined by comparing the CPI from July preceding the Adjustment Date (“Most Recent CPI”) to the CPI reported by the U.S. Department of Labor for July in the year immediately preceding the year of the Most Recent CPI. The CPI means the Chicago-Naperville-Elgin Consumer Price Index for all Urban Consumers, All Items, Issued by the Bureau of Labor Statistics of the United States Department of Labor (1982- 84=100). c) The Contractor shall notify the Village in writing at least thirty (30) days prior to the effective date of any proposed increase in charges, and such increase shall not be effective until approved by the Village in writing as complying with the terms of the Agreement. d) Contractor will offer hardship service, defined as backdoor service for Municipal Waste and Recyclable Materials collection charged the same rate as Curbside service to no more than 30 Residential Customers determined by the Village Manager to meet certain standards for hardship including all of the following: (1) physically unable to bring his or her refuse and recycling cart and containers to the curb, (2) no other individual living in the dwelling unit is physically able to bring the refuse and recycling cart to the curb, and (3) has provided a tax return documenting that Residential Customer’s income level is at or below poverty income level established for Lake County by the Illinois Department of Labor or the US Census Bureau. Contractor will not be required to provide hardship service to a Residential Customer unless and until the Village has identified the customer as eligible for such service. {00117635.5} 14 ARTICLE VI REVENUE COLLECTION Section 6.1 Billing of Accounts Residential Services provided under this Agreement are provided by the Contractor on behalf of the Village. The Contractor shall bill the Village on behalf of the Residential Customers, no less frequently than once every four (4) months. Each invoice shall be payable by the Village within thirty days after the date of the invoice, but in no event earlier than the date that is halfway through the service period for which the invoice is submitted. Section 6.2 Private Service The Contractor may, but is not required to, include as an item on each Residential Customer's bill an amount payable to the Contractor for the collection, transportation, and disposal of Private Service waste. The Contractor shall retain all amounts collected from each Residential Customer pursuant to this Section 6.2. Alternatively, the Contractor may bill each Residential Customer separately for Private Service. ARTICLE VII TITLE TO RESIDENTIAL MATERIALS Section 7.1 Title to Residential Materials The Contractor shall retain title to all Residential Materials collected pursuant to this Agreement. ARTICLE VIII RECYCLABLE MATERIALS Section 8.1 Recyclable Materials Collection Service a) Residential Recycling Service. The Contractor shall collect and manage Recyclable Materials in accordance with Article IV of this Agreement. b) Disposition of Recyclable Materials. The Contractor shall retain all income (and fully bear all losses) resulting from the disposition of Recyclable Materials. Contractor acknowledges that the Solid Waste Agency of Lake County may in the future have a rebate program whereby the Agency receives certain funds from the Designated Recycling Facility and distributes a portion of these funds to its members, including the Village, and Contractor waives any claim to any portion of the funds collected by the Agency through this program. c) Recyclable Materials Collection Data. The Contractor shall provide to the Village and SWALCO a quarterly report on the weight (in tons) of all Recyclable Materials collected from Residential Customers under this Agreement. The report shall also contain an approximate count of the number of Residential Customers from which Recyclable Materials have been collected, to determine participation and diversion rates. {00117635.5} 15 d) Recycling Education and Awareness. In addition to the brochure required pursuant to Section 9.1 and the cart sticker or stamp required pursuant to Section 4.3(c), the Contractor and Village agree to disseminate the recycling guidelines provided by SWALCO on their websites and social media in a coordinated manner. At least once per year during the term of this Agreement, the Contractor and Village agree to publicize and/or distribute the recycling guidelines to the Residential Customers to reinforce good recycling practices. e) Recycling Wheeled Cart Contamination. To address contamination of a Residential Customer’s Wheeled Cart for recycling the Contractor and Contractor agree as follows: (i) The Contractor may refuse to service a recycling Wheeled Cart if a Residential Customer does not properly segregate recyclable materials. At the time of refusal to provide service, the Contractor shall issue a notice to the Residential Customer that contains instructions for the proper segregation of Recyclable Materials, and the specific violation(s) made by the Residential Customer. If a Residential Customer receives two such notices within a 30-day period, the Contractor may exercise its right to not provide recycling service for a period of 30 days. This 30-day suspension shall be made in writing to the Residential Customer with a copy to the Village. (ii) If the Village and Contractor determine it is necessary to implement a formal recycling Wheeled Cart inspection program or a tag and educate program, it shall include a detailed program for educating Residential Customers prior to and during the implementation of the program. Key program elements that need to be agreed to by the Village and Contractor prior to implementing the tag and educate program are: 1) what procedures will be followed when a Wheeled Cart is determined to be contaminated, and 2) what are the ultimate steps to be taken for Residential Customers who continue to contaminate the Wheeled Cart. f) The Village and the Contractor shall mutually agree to add or subtract materials to or from the list of items included in the definition of Recyclable Materials as set forth in Article I of this Agreement. g) The Contractor shall ensure that all Recyclable Materials collected are properly processed and marketed. No collected Recyclable Materials shall be landfilled or incinerated, unless advance authorization to do so is given by the corporate authorities of the Village. h) The Contractor agrees to meet periodically with representatives from the Village to: (1) review the provision of residential recycling pursuant to this Agreement; and (2) discuss the implementation of alternative approaches, programs and partnerships to improve the quality, quantity, and efficiency of residential recycling and other sustainability initiatives within the Village. {00117635.5} 16 ARTICLE IX CUSTOMER SERVICE STANDARDS Section 9.1 Office and Telephone The Contractor shall maintain an office and toll-free telephone, for receipt of service calls or complaints, and shall be available for such calls on all business days from 7:00 a.m. to 5:00 p.m. The Contractor shall retain the services of at least one temporary customer service representative to handle the addition of Residential Customers to the Contractor’s service base during the first ninety days of the term of this Agreement. Additional customer service representatives shall be added as necessary to meet the minimum customer service standards set forth in Section 9.2 of this Agreement. Section 9.2 Minimum Customer Service Standards a) Complaints Generally. The Contractor shall cooperate with the Village in minimizing complaints from the Residential Customers. A consistent pattern of failure to address complaints, or violations of Sections 9.2(a) through 9.2(h) of this Agreement, shall entitle the Village to exercise the remedies provided to it pursuant to Section 9.2(h) and/or Article X of this Agreement. b) Initial Response. The Contractor shall give prompt and courteous attention to all Residential Customer complaints that it may receive. The Contractor shall respond personally to every Residential Customer from whom a complaint is received within twenty-four (24) hours or the next business day after receipt of such complaint; except that if the Contractor receives a complaint about a missed scheduled collection, then the Contractor shall immediately investigate such complaint and, if such scheduled collection was not made in accordance with the terms of this Agreement, then the Contractor shall cause such collection to be made within twenty-four (24) hours or the next business day after receipt of such complaint. Where any dispute arises between a Residential Customer and the Contractor as to the manner of placing waste or the nature of the contents or the like, the Contractor shall, and does hereby agrees in the specific instance to, remove the waste even though, in its opinion, it is improperly placed or contained. Thereafter, the Contractor shall immediately report the controversy to the Village for settlement before additional collection becomes necessary to avoid further disputes or disagreements between Residential Customers and the Contractor. c) Referral to Village. If the Contractor is unable to resolve a complaint in a manner satisfactory to both the Contractor and the Residential Customer, then the Contractor, within forty-eight (48) hours after receipt of such complaint, shall deliver notice of such complaint to the Village, which notice shall include the name and address of the Residential Customer, the date and hour the complaint was received, the nature of the complaint, and the Contractor’s response to the complaint. The Village shall arbitrate each such complaint, and the Village’s decision concerning each such complaint shall be final and binding on the Contractor and the Residential Customer. d) Answering Calls. During normal business hours and under normal operating conditions, a customer service representative employed by the Contractor shall answer the telephone access line. Ninety percent (90%) of the calls made to the customer service center shall {00117635.5} 17 be answered within thirty (30) seconds. The thirty (30) second maximum includes wait time or time spent ‘holding’ for a customer service representative. e) Busy Signals. Residential Customers placing calls to the customer service center shall receive a busy signal no more than five percent (5%) of the time. f) Transferring Calls. During normal business hours, if after initially addressing a Residential Customer’s concern, the customer service representative determines that the call should be transferred to another representative of the Contractor, the Residential Customer shall be connected with a customer service representative within thirty (30) seconds thereof. g) Hang-ups. Incoming telephone calls from Residential Customers shall not exceed an abandonment rate of five percent (5%). h) Compliance Rate. During normal business hours, the minimum standards set forth in this Section 9.2 shall be met no less than ninety percent (90%) of the time, measured on a monthly basis. Upon request, reports shall be provided to the Village providing a log of inquiries received and action taken to address each complaint and call. The Contractor shall also distribute to the Village a log providing data which tracks the customer service representatives’ adherence to the standards set forth in Section 9.2(a) through 9.2(g) of this Agreement, as the Village may request in its discretion. If the records indicate a clear failure of the Contractor to comply with the minimum standards set forth in Sections 9.2(a) through 9.2(g) of this Agreement, then the Village reserves the right to require the Contractor to implement modifications to its customer service center to bring it into compliance with the requirements of this Section 9.2. Section 9.3 Liaison The Contractor shall designate in writing the person to serve as agent for the Contractor and liaison between the Contractor and the Village. Section 9.4 Cleanliness A. Generally. Contractor shall perform the work in a clean and orderly fashion and shall not cause to be deposited, or allow to remain, any Solid Waste, Landscape Waste, or Recyclable Materials at any pick-up area during performance of the Work. Contractor shall replace all container covers and shall replace all containers to their proper locations. B. Cleanup of Spills. Contractor shall immediately clean up any Solid Waste, Landscape Waste, or Recyclable Materials that it may have caused t o spill onto private premises, parkways, streets, alleys or other public places, in a neat and workmanlike manner. ARTICLE X BREACH; EVENTS OF DEFAULT AND REMEDIES Section 10.1 Breach by Contractor Each of the following shall constitute a Breach on the part of the Contractor: {00117635.5} 18 a) Repeated failure of the Contractor to comply with Section 9.2(h) of this Agreement; b) Failure of the Contractor to perform in a timely fashion any obligation under this Agreement not referenced within Section 10.1(a) of this Agreement, except that such failure shall constitute a Breach only if such failure remains uncured for seven (7) days after notice to the Contractor from the Village of such failure; provided however, that this seven (7) day notice with opportunity to cure shall not be required in the event of persistent and repeated failure to perform; or c) Any of the following: (1) The Contractor's being or becoming insolvent or bankrupt or ceasing to pay its debts as they mature or making an arrangement with or for the benefit of its creditors or consenting to or acquiescing in the appointment of a receiver, trustee or liquidator for a substantial part of its property, (2) a bankruptcy, reorganization, insolvency, arrangement or similar proceeding being instituted by the Contractor under the laws of any jurisdiction, (3) a bankruptcy, reorganization, insolvency, arrangement or similar proceeding being instituted against the Contractor under the laws of any jurisdiction, which proceeding has not been dismissed within one hundred twenty (120) days, (4) any action or answer by the Contractor approving of, consenting to or acquiescing in any such proceeding, or (5) the levy of any distress, execution or attachment upon the property of the Contractor which shall (or which reasonably might be expected to) substantially interfere with its performance under this Agreement. Section 10.2 Breach by Village Each of the following shall constitute a Breach on the part of the Village: a) The Village's being or becoming insolvent or bankrupt or ceasing to pay its debts as they mature or making an arrangement with or for the benefit of its creditors or consenting to or acquiescing in the appointment of a receiver, trustee or liquidator for a substantial part of its property; b) A bankruptcy, reorganization, insolvency, arrangement or similar proceeding being instituted by the Village under the laws of any jurisdiction; c) A bankruptcy, reorganization, insolvency, arrangement or similar proceeding being instituted against the Village under the laws of any jurisdiction, which proceeding has not been dismissed within one hundred twenty (120) days; d) Any action or answer by the Village approving of, consenting to or acquiescing in any bankruptcy, reorganization, insolvency, arrangement or similar proceeding; or e) The levy of any distress, execution or attachment upon the property of the Village which shall (or which reasonably might be expected to) substantially interfere with the Village’s performance hereunder. Section 10.3 Events of Default and Remedies of Village a) If a Breach occurs under Section 10.1 of this Agreement, the Village may declare an Event of Default and may thereafter exercise any one or more of the following remedies: {00117635.5} 19 (i) The Village may terminate this Agreement immediately, upon notice to the Contractor. Subject to the provisions of subparagraph (v) below, upon such termination, the Contractor shall cease providing all services under this Agreement. (ii) The Village may seek and recover from the all of its substantiated costs for the failure of the Contractor to perform any obligation under this Agreement, and all damages, whether based upon contract, work stoppage, strike, Contractor negligence (including tort), warranty, delay or otherwise, arising out of the performance or non-performance by the Contractor of its obligations under this Agreement, and whether incidental, consequential, indirect or punitive, resulting from the Breach. In the Event of Default by the Contractor and notwithstanding that Contractor receives payment from Residential Customers, any costs incurred by the Village in obtaining alternative Residential Service shall be deemed damages suffered by the Village. (iii) The Village may (A) call upon the sureties to perform their obligations under the performance bond, or (B) in the alternative, after releasing the sureties from their obligations under the performance bond, take over and perform the required services by its own devices, or may enter into a new agreement for the required services, or any portion thereof, or may use such other methods as shall be required in the opinion of the Village for the performance of the required services. (iv) The Village shall have the power to proceed with any right or remedy granted by federal or State law as it may deem best, including any suit, action or special proceeding in equity or at law for the specific performance of any covenant or agreement contained herein or for the enforcement of any proper legal or equitable remedy as the Village shall deem most effectual to protect the rights aforesaid, insofar as such may be authorized by law. (v) Upon any such termination of this Agreement, the Contractor shall, for a period to be determined by the Village in its sole and absolute discretion, but not longer than six (6) months, continue to perform the contractual services during which period the businesses shall pay the Contractor its scheduled compensation. b) No remedy by the terms of this Agreement conferred upon or reserved to the Village is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given to the Village. No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver of any such Event of Default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. No waiver of any Event of Default shall extend to or shall affect any subsequent default or Event of Default or shall impair any rights or remedies consequent thereto. c) If the Contractor misses a collection under the Residential Service, the collection must be corrected within 24 hours of the reported missed collection, or a charge of $10 per missed collection will be charged to the Contractor; provided, however, that the Contractor shall not be charged under this Section 10.3(c) for collections missed due to a labor dispute {00117635.5} 20 involving the Contractor’s labor force if the missed collection is not rectified within seven (7) days after the missed collection. All charges levied against the Contractor under this Section 10.3(c) shall be remitted to the Village within 30 days after receipt of an invoice therefor. d) This Section 10.3 shall survive the termination of this Agreement. Section 10.4 Events of Default and Remedies of Contractor a) If a Breach occurs under Section 10.2 of Agreement, the Contractor may declare an Event of Default and terminate this Agreement immediately, upon notice to the Village. In such event, the Contractor's sole remedy shall be to seek and recover from the Village any unpaid amounts due the Contractor and any damages, whether incidental, consequential, indirect, or punitive, resulting from the Breach. The Contractor shall not be entitled to specific performance or any other equitable remedies. b) This Section 10.4 shall survive termination of this Agreement. Section 10.5 Force Majeure Neither the Contractor nor the Village shall be liable for the failure to perform their duties nor for any resulting damage or loss, if such failure is caused by a catastrophe, terrorism, riot, war, strike, fire, accident, act of God, including inclement weather, or similar contingency beyond the reasonable control of the Contractor or the Village, as the case may be; provided, however, that in the event of a strike that renders the Contractor unable to provide Residential Services as required by this Agreement, the Contractor shall cooperate in good faith with the Village to establish a location for the centralized drop-off by Residential Customers, and collection by the Contractor, of Residential Materials. Changes in recycling markets or market prices are specifically excluded from the above force majeure contingencies contemplated in this section. ARTICLE XI INSURANCE AND INDEMNIFICATION Section 11.1 Insurance a) The Contractor shall maintain for the duration of t his Agreement, and any extensions thereof, insurance issued by a company or companies qualified to do business in the State of Illinois and that meet the requirements set forth in Exhibit B. The Contractor shall provide the Village with a certificate and policies of insurance indicating that such insurance coverage meets the requirements contained in Exhibit B. b) Insurance premiums shall be paid by the Contractor and shall be without cost to the Village. {00117635.5} 21 Section 11.2 Indemnification Contractor agrees, at its sole cost and expense, to unconditionally indemnify and hold harmless and defend the Village and the Village’s former, current and future elected and appointed officials, trustees, agents, contractors, employees, representatives, attorneys and insurers and/or successors in interest of any kind (the “Village Indemnitees”) for and from any and all claims, actions, omissions, losses, injuries, lawsuits, counterparts, debts, dues, obligations, judgments, awards, demands, liens, costs, expenses, attorneys’ fees and liability for damages of any kind and causes of action of any kind and nature (including but not limited to all liabilities, claims, suits, costs and expenses which the Village or Village Indemnitees may hereafter incur, become responsible for, or pay out as a result of death or bodily injuries to any person, destruction or damage to any property, contamination of or adverse effects on the environment), whether known or unknown at this time, whether present or future or contingent, that are brought or filed against the Village, and/or the Village Indemnitees, by any person or entity arising out of, relating to, connected with, or in any way associated with the following: (a) Contractor’s breach of any term or provision of this contract; (b) any negligent or willful act or omission of Contractor, its employees, agents, or subcontractors in the performance of this Agreement; (c) the violation or alleged violation by Contractor, it employees, agents, or subcontractors of any federal, state or local law, regulation, statute, ordinance, license, or permit and (d) the release, threatened release or presence of contaminants (which shall include but not limited to hazardous waste, hazardous substances and any material which any governmental agency or unit having appropriate jurisdiction shall determine from time to time is harmful, toxic, or dangerous) which occurs during the performance (or failure to perform) of this Agreement, including transportation and/or disposal of the Residential Materials and/or from or on the site(s) or facility(ies) utilized for disposal of the Residential Materials. In the event that any such claim, action, cause of action or lawsuit is brought or filed, the Village and Village Indemnitees shall have the right to determine the attorney(s) of its choice to represent and defend their interests in any legal or administrative action in the event that a conflict exists which prevents the same defense counsel from representing the Contractor and the Village or Village Indemnitees, all at the Contractor’s expense pursuant to this Agreement. Notwithstanding any other provision in this Agreement to the contrary, the duration of the indemnification hereunder shall be indefinite and survive the expiration of this Agreement. ARTICLE XII MISCELLANEOUS Section 12.1 Non-Assignability The Contractor shall not assign this Agreement or any part thereof or subcontract this Agreement or the work hereunder, or any part thereof, in either case to any other person, firm, or corporation without the prior written consent of the corporate authorities of the Village, who shall withhold or grant such approval at a regular meeting of the Village’s Board of Trustees. Nothing in this Agreement shall prevent the Contractor from performing its obligations hereunder through its subsidiaries or divisions but the performance by any such subsidiary or division shall not relieve the Contractor from its obligations or change the terms of Agreement. {00117635.5} 22 Section 12.2 Equal Employment Opportunity a) In the event of the Contractor's noncompliance with the provisions of this Section 12.2, the Illinois Human Rights Act or the Illinois Department of Human Rights Rules and Regulations, the Contractor may be declared ineligible for future contracts or subcontracts with the State or any of its political subdivisions or municipal corporations, and this Agreement may be canceled or voided in whole or in part, and such other sanctions or penalties may be imposed or remedies invoked as provided by statute or regulation. b) During the performance of this Agreement, the Contractor agrees as follows: (i) That it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status, national origin or ancestry, age, physical or mental handicap unrelated to ability, or an unfavorable discharge from military service; and further, that it will examine all job classifications to determine if minority persons or women are underutilized and will take appropriate affirmative action to rectify any such under-utilization. (ii) That, if it hires additional employees in order to perform this Agreement or any portion hereof, it will determine the availability (in accordance with the Illinois Department of Human Rights Rules and Regulations) of minorities and women in the area(s) from which it may reasonably recruit and it will hire for each job classification for which employees are hired in such a way that minorities and women are not under-utilized. (iii) That, in all solicitations or advertisements for employees placed by the Contractor or on the Contractor's behalf, the Contractor will state that all applicants will be afforded equal opportunity without discrimination because of race, color, religion, sex, marital status, national origin or ancestry, age, physical or mental handicap unrelated to ability, or an unfavorable discharge from military service. (iv) That the Contractor will send to each labor organization or representative thereof with which it is bound by a collective bargaining or other agreement or understanding, a notice advising such labor organization or representative of the Contractor's obligations under the Illinois Human Rights Act and the Illinois Department of Human Rights Rules and Regulations. If any such labor organization or representative fails or refuses to cooperate with the Contractor in its efforts to comply with such Act and Rules and Regulations, the Contractor will promptly notify the Illinois Department of Human Rights and the Village and will recruit employees from other sources when necessary to fulfill the Contractor's obligations thereunder. (v) That the Contractor shall submit reports as required by the Illinois Department of Human Rights Rules and Regulations, furnish all relevant information as may from time to time be requested by the Illinois Department of Human Rights or the Village, and in all respects comply with the Illinois Human Rights Act and the Illinois Department of Human Rights Rules and Regulations. {00117635.5} 23 (vi) That the Contractor shall permit access to all relevant books, records, accounts and work sites by personnel of the Village and the Illinois Department of Human Rights for purposes of investigation to ascertain compliance with the Illinois Human Rights Act and the Illinois Department of Human Rights Rules and Regulations. (vii) That the Contractor shall include, verbatim or by reference, the provisions of this Section 12.2 in every subcontract it awards under which any portion of the Agreement obligations are undertaken or assumed, so that such provisions will be binding upon each subcontractor. The Contractor will promptly notify the Village and the Illinois Department of Human Rights in the event any subcontractor fails or refuses to comply therewith. In addition, the Contractor will not utilize any subcontractor ineligible for contracts or subcontracts with the State or any of its political subdivisions or municipal corporations. c) During the term of this Agreement, the Contractor shall comply in all respects with the Equal Employment Opportunity Act. The Contractor shall have a written equal employment opportunity policy statement declaring that it does not discriminate on the basis of race, color, religion, sex, national origin, disability, or age. Findings of non-compliance with applicable State or federal equal employment opportunity laws and regulations may be sufficient reason for revocation or cancellation of this Agreement. Section 12.3 Performance Bond The Contractor shall furnish a performance bond for the faithful performance of this Agreement, in a form acceptable to the Village, to be executed by a responsible surety company and to be in the penal sum of Five Hundred Thousand Dollars ($500,000). Such performance bond shall be furnished annually by the Contractor for the following year of this Agreement and shall indemnify the Village against any loss resulting from any failure of performance by the Contractor. The initial bond shall be posted on or before the Commencement Date, and each successive bond shall be posted not later than January 1 of each successive calendar year. In lieu of furnishing a performance bond, the Proposer may demonstrate its ability top furnish an unconditional letter of credit to be delivered at Closing in favor of the Village, in the amount of Five Hundred Thousand Dollars ($500,000) drawn on a national or state-chartered bank acceptable to the Village. Any performance security required under this Section shall be in such form and with such provisions as are acceptable to the Village, in the Village’s sole discretion. Section 12.4 Equipment to be Used by Contractor a) Contractor shall furnish, and maintain in a neat, clean, and sanitary condition, enclosed modern collection equipment approved by the Village for use in performing the Work. Contractor may use replacement, open trucks on a temporary basis in case of emergency, but only with the prior express written approval of the Village. No vehicle used in the performance of this contract shall have a gross vehicle weight rating (GVWR) of greater than 55,000 pounds. All vehicles shall be maintained in good working order and appearance, free of rust, and shall be clean at the start of each collection day. In the event that any vehicle is not properly operable, a substitute vehicle shall immediately be provided that complies with the terms herein. All vehicles shall display the name of the Contractor, a local phone number, and a vehicle identification number that is clearly visible on both sides. No vehicle shall be operated on a Village street that leaks any fluids from the engine or compaction mechanism. All vehicles shall be fully enclosed and {00117635.5} 24 operated in such a way that no Solid Waste leak, spill or blow off the vehicles. Should any Solid Waste leak, spill or blow off a vehicle due to the vehicle operator’s failure to properly monitor the load or to close opening, or due to failure of any mechanism, the Contractor shall be responsible for collecting or cleaning up such litter or fluids. If such litter or fluids are not cleaned up after notice (verbal or written) from the Village, the Village may clean up same, and the Village may bill the cost to the Contractor for services rendered. Drain plugs, if available, shall be kept closed except during collections in rainy weather. All vehicles shall be made available for inspection during regular business hours at the request. Contractor may use replacement, open trucks on a temporary basis in case of emergency, but only with the prior express written approval of the Village b) Containers used in connection with the provision of Residential Services by the Contractor pursuant to this Agreement shall be operable, safe and free of graffiti. Contractor shall replace any container in disrepair of this sort within three (3) days of notification by the Village or the customer. Containers with plastic lids that are ill-fitted or warping shall be replaced within three (3) days of notification by the Village, in order to maintain a tight-fitting seal to prevent access by pests. All containers will be adequately demarcated with the Contractor’s logo. Each container will have an inventory control number demarcated on each container that is cross-referenced to the service matrix. Contractor is encouraged to install RFID tags on Residential Customer carts and containers to assist with collection tracking. c) All equipment used by Contractor for the provision of Residential Services and Private Services pursuant to this Agreement shall be properly licensed by the State and shall conform to all federal and State equipment safety standards. Section 12.5 Compliance with Laws a) The Contractor shall comply at all times with all applicable federal, State and municipal laws, ordinances and regulations at any time applicable to the Contractor's operations under this Agreement, with no increase to the Contractor's compensation as set forth in this Agreement. Specifically, but without limitation of the foregoing, the Contractor shall comply with any amended Village ordinances or regulations imposed in the discretion of the Village to protect the public health, safety, and welfare. b) The Contractor shall obtain, at its own expense, all permits and licenses required by law or ordinance and maintain the same in full force and effect. Section 12.6 Care and Performance The Contractor shall undertake to perform all services rendered hereunder in a neat, thorough and competent manner, without supervision by the Village, and to use care and diligence in the performance of all specified services and to provide neat, orderly, uniformed and courteous employees and personnel on its crews. The Contractor shall be liable to the Village for damage to Village rights-of-way caused in connection with the provision of the Residential Services or Private Services, ordinary wear and tear excepted. {00117635.5} 25 Section 12.7 No Alcohol or Drugs The Contractor shall prohibit and use its best efforts to enforce the prohibition of any drinking of alcoholic beverages or use of illegal drugs by its drivers and employees while on duty or during performing their duties under this Agreement. Section 12.8 Governing Law This Agreement and the rights of the Village and the Contractor under this Agreement shall be interpreted according to the internal laws, but not the conflict of laws, rules, of the State of Illinois. Section 12.9 Severability The provisions of this Agreement shall be interpreted when possible to sustain their legality and enforceability as a whole. In the event any provision of this Agreement shall be held invalid, illeg al, or unenforceable by a court of competent jurisdiction, in whole or in part, neither the validity of the remaining part of such provision, nor the validity of any other provisions of this Agreement, shall be in any way affected thereby. The unenforceability of any provision of this Agreement in a specific situation shall not affect the enforceability of that provision in any other situation. Section 12.10 Entire Agreement This Agreement sets forth the entire agreement of the Village and the Contractor with respect to the provision of the Residential Services and compensation therefor, and there are no other understandings or agreements, oral or written, between the Village and the Contractor with respect to the Residential Services and the compensation therefor, nor was the making and execution of this Agreement induced by any representation, statement, warranty, agreement, or action other than those expressed or explicitly referenced herein. Section 12.11 Notices All notices required or permitted to be given under this Agreement shall be in writing and shall be delivered (i) personally, (ii) by a reputable overnight courier or (iii) by certified mail, return receipt requested, and deposited in the U.S. mail, postage prepaid. Unless otherwise expressly provided in this Agreement, notices shall be deemed received upon the earlier of (a) actual receipt; (b) one business day after deposit with an overnight courier as evidenced by a receipt of deposit; or (c) three business days following deposit in the U.S. mail, as evidenced by a return receipt. By notice complying with the requirements of this Section, each party shall have the right to change the address or addressee, or both, for all future notices and communications to the other party but no notice of a change of address or addressee shall be effective until received. Notices and communications to the Village shall be addressed to, and delivered at, the following address: Deerfield Village 850 Waukegan Road Deerfield, Illinois 60015 Attention: Village Adminstrator {00117635.5} 26 Notices and communications to the Contractor shall be addressed to, and delivered at, the following address: Lakeshore Recycling Systems 6132 W. Oakton Street Morton Grove, IL 60053 Attention: Joshua Connell, Managing Partner Section 12.12 Publicity The Village’s name or insignia, photographs of the Village, or any other publicity pertaining to the provision of the Residential Services shall not be used in any magazine, trade paper, newspaper, or other medium without the express written consent of the Village. [SIGNATURES ON FOLLOWING PAGE] {00117635.5} EXHIBIT A SCHEDULE OF INITIAL RATES AND PRICES {00117635.5} {00117635.5} EXHIBIT B INSURANCE PROVISIONS A. Commercial General Liability Insurance Commercial general liability insurance with the following limits: Coverage Limits of Liability General Aggregate $5,000,000 Products and Completed Operations Aggregate $2,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence $2,000,000 The policy shall be endorsed so that the general aggregate limit applies separately to each project and each location. The products and completed operations aggregate shall be maintained for one year after the final payment. B. Workers Compensation & Employer’s Liability Workers Compensation Coverage IL statutory requirements Employer’s Liability Insurance Coverage Limits of Liability Bodily Injury by Accident (Each Accident) $1,000,000 Bodily Injury by Disease (Each Employee) $1,000,000 Bodily Injury by Disease (Policy Limit) $1,000,000 All employees who are to provide labor or service under the contract must be insured; no exclusions shall be allowed for any officer or employee. C. Business Auto Insurance: Coverage Limit of Liability All Owned, Hired, and Non-Owned Autos $1,000,000 D. Pollution Liability Insurance Coverage Limit of Liability Each Occurrence/General Aggregate $5,000,000 Pollution liability insurance limits may be modified by the Village, if deemed necessary. E. Umbrella Liability Insurance Coverage Limit of Liability {00117635.5} Excess over all primary policies $5,000,000 With respect to each of the policies required in this Exhibit B, Contractor shall not have a deductible higher than $5,000,000 without the express written consent of the Village. All insurers writing policies pursuant to this Exhibit B shall be licensed by the State of Illinois and rated A-VII or better by A.M. Best or comparable rating service. The comprehensive general liability, property damage, auto liability and umbrella insurance policy shall name the Village and the Village Indemnitees as an additional insured on a primary noncontributory basis with a waiver of subrogation in favor of the Village (the waiver of subrogation shall also apply to the workers’ compensation insurance). The Contractor shall provide the Village with certificates of insurance and policy endorsements acceptable to the Village evidencing the existence of the coverage described above, including form and deductibles, during the duration of this Agreement. The failure to provide acceptable insurance shall be deemed a breach of this Agreement entitling the Village to terminate this Agreement immediately. All policies of insurance shall provide the en dorsement that no coverage may be canceled, terminated or reduced by the insuring company without the insuring company having first given 30 days prior written notice to the Village by certified mail, return receipt requested. {00117635.5} EXHIBIT C VILLAGE COLLECTION SITES Location, size, frequency and number of Village and other public entity Containers to be furnished and serviced at no cost: Site Refuse, Size Recycle, Size Frequency Village Hall, 2 – 2 yd. containers 10 – 96 Gal carts 1x/week 850 Waukegan Road Public Recycling, Not Included 12 - 26” D x 41”H containers As Needed Various Downtown Locations Public Works, 3 – 2 yd. containers 3 – 96 Gal. cart 1x/week 465 Elm Street Water Reclamation Facility, 2 – 2 yd. containers 1 – 96 gal cart 1x/week 1045 Hackberry Road Deerfield High School, Not Included 24 - 96 Gal. carts 2x/week 1959 Waukegan Road 3 – 2 cu. yd. containers 2x/week West Deerfield Township Not Included 3 – 96 Gal carts 1x/week 601 Deerfield Road Deerfield-Bannockburn Not Included 5 – 96 Gal carts 1x/week Fire Protection District, 500 Waukegan Road Deerspring Pool, Not Included 2 – 96 Gal carts 1x/week 200 Deerfield Road Mitchell Pool, Not Included 3 – 96 Gal carts 2x/week 951 Wilmot Road Sachs Recreation Center, Not Included 4 yd. container 1x/week 455 Lake Cook Road Patty Turner (Senior) Center Not Included 1 – 96 Gal cart 2x/week 375 Elm Street Jewett Park Community Not Included 3 – 96 Gal cars 1x/week Center, 836 Jewett Park Drive {00117635.5} EXHIBIT D VILLAGE OF DEERFIELD DESIGNATED CONDOMINIUMS INCLUDED IN RESIDENTIAL SERVICE A. Deerfield Crossing Condominiums Common Address: 451 Elm Street Number of Units: 63 Condo units Service Level: • 2 Yd rel: 6 • 96 Gal toter fel rcy: 12 B. Regency of Deerfield Condominium Association Common Address: 1001 Deerfield Road Number of Units: 36 Condo units Service Level: • 2 Yd rel: 3 • 96 Gal toter fel rcy: 6 C. South Commons Condos Common Address: 610 Robert York Avenue Number of Units: 80 Condo units Service Level: • 2 Yd rel: 4 • 96 Gal toter rel rcy: 6 D. Coromandel Condos Common Address: 375 Kelburn Road Number of Units: 316 Condo units Service Level: • 2 Yd rel: 20 • 64 Gal toter fel rcy: 116 • 96 Gal toter rel: 84 {00117635.5} EXHIBIT E FOOD SCRAPS COLLECTION EDUCATIONAL BROCHURE