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HomeMy WebLinkAboutSolid Waste Haul and Disposal Services BIDDER'S SOLICITATION SOLID WASTE HAUL AND DISPOSAL SERVICES AGREEMENT DOCUMENTS TOWN OF SOUTHOLD STATE OF NEW YORK �i TOWN OF SOUTHOLD Prepared by: Solid Waste Task Force Technical Committee 53095 Main Road Southold, NY 11971 May, 1997 Waste Management of New York 123 Varick Avenue Brooklyn, New York 11237 A Waste Management Company Phone 7181386.7900 718/628.7090 May 22, 1997 Office of Town Clerk Southold Town Hall 53095 Main Road Southold, NY 11971 RE: SOLID WASTE HAUL AND DISPOSAL SERVICES Gentlemen: On behalf of WM of New York, Inc. d/b/a Waste Management of New York, I am pleased to submit our proposal for the SOLID WASTE HAUL AND DISPOSAL SERVICES for the Town of Southold. We offer the Town a viable solution to handle their material in a cost effective, environmentally safe manner. • Acquired in March of 1996, WM of New York, Inc. is a wholly-owned subsidiary of WMX Technologies, Inc. of Oakbrook, IL. WMX holds 1001/6 of stock for WM of New York, Inc. WM of New York, Inc. is the former Resource NE located at 123 Varick Avenue, Brooklyn,NY. WMX is the leader in the solid waste industry and is known for it's ability to develop innovative strategies and programs in response to solid waste management needs. Over the years, WMX and it's subsidiaries have entered into numerous contracts providing a wide variety of waste management services. The existing WM of New York, Inc. team has been active in the solid waste industry for over 40 years and employs approximately 700 people and manages ten Materials Recovery Facilities. WM of New York, Inc. operates a. fleet of 200+ trucks, moving approximately 4,500 tons of waste daily. WM of New York, Inc. is incorporated in the State of Delaware and holds all the necessary permits for the handling of Municipal Solid Waste. WM of New York, Inc. operates three recycling facilities in New York, with a capacity of over 7,000 tons per day, in addition to 136 state-of-the-art "Subtitle D" Landfills throughout the United States. WM of New York, Inc.'s proposal covers the full scope of the Bid Proposal. WM, if selected by the Town, is committed to performing all services required in the Bid • and as described in the attached proposal for the price quoted. a x JCA Lic.#0928527 a )CA Lic.#0928528 dpi a division of WM of New York, Inc. AZIN A Waste Management Company Town of Southold May 22, 1997 page 2 We thank you for the opportunity to submit a proposal to the Town of Southold and look forward to working with you. Sincerely, CCharles P. Gusmano Director, Business Development • n I • BIDDER'S SOLICITATION SOLID WASTE HAUL AND DISPOSAL SERVICES AGREEMENT DOCUMENTS TOWN OF SOUTHOLD STATE OF NEW YORK TOWN OF SOUTHOLD Prepared by: Solid Waste Task Force Technical Committee 53095 Main Road Southold, NY 11971 Mav, 1997 NOTICE TO BIDDERS • Solid Waste Haul-Disposal Services The Town of Southold will receive sealed bids for solid waste haul-disposal services until the time and at the location herein specified which will then be opened and publicly read aloud; PLACE: Office Of the Town Clerk Southold Town Hall 53095 Main Road Southold, New York 11971 (516) 765-1800 DATE: Thursday, May 22, 1997 TIME: 1:00 P.M. EDST (LATE BIDS WILL NOT BE OPENED) The offer to be made in accordance with this Bid Solicitation shall include a bid on the following: A bid price per ton, to provide equipment and labor for hauling solid waste and disposing solid waste at the Contractor's Solid Waste Disposal Site. The term of this Agreement shall be three (3) years commencing on July 10, 1997. If the Town enters into an intermunicipal solid waste haul/disposal Agreement, the Town may terminate the Agreement at any time during Agreement years two (2) and three (3) by giving six (6) months written notice to the Contractor. The Town, at its sole discretion, shall have the option of renewing the Agreement for two additional one year terms by giving Contractor written notice of its intention to renew at least thirty (30) days prior to the expiration of the term. Bids must be made in writing on the forms furnished and shall be accompanied by a Bid Guaranty in the Form of certified check, money order, bank draft or standard form letter of credit made payable to Town of Southold, or bid bond, in the sum of one hundred thousand dollars ($100,000.00) wherein the named obligee shall be the Town of Southold. The successful Bidder shall be required to furnish a performance Bond, and . insurance in accordance with the instructions in the Bid Solicitation. 2 The bid price shall not include any tax, Federal, state, or local, from which the • Town of Southold is exempt. A Bidder may not withdraw his bid within forty-five (45) days after the opening of the bids, but may withdraw his Bid at any time prior to the scheduled time for the opening of bids. The Town reserves the right to reject any or all bids and to waive informalities, should this action be in the best interest of the Town of Southold. Bid Solicitation containing submission requirements, instructions, technical specifications, and bidding forms may be examined free of charge and at the following location on weekdays from 8:00 A.M. to 4:00 P.M.: Office Of the Town Clerk Southold Town Hall 53095 Main Road Southold, New York 11971 Upon payment of non-refundable fifty dollars ($50.00) Bid Solicitation may be picked up at: Office of the Town Clerk • Southold Town Hall 53095 Main Road Southold, New York 11971 Bidders will be allowed to ask questions regarding the Bid Solicitation during a pre-bid conference to be held at 9:00 A.M., Monday, May 17, 1997 at: Southold Town Hall 53095 Main Road Southold, New York 11971 All bidders are encouraged to inspect the Southold Town Transfer Station prior to the bid conference. Appointments to do so may be scheduled by calling James Bunchuck at (516) 734-7685. Judith T. Terry Town Clerk For further information regarding bidding requirements, contact Judith T. Terry (516) 765-1800. For information regarding Town Of Southold waste program and haul- disposal operations, contact James Bunchuck (516) 734-7665. . 3 TABLE OF CONTENTS GLOSSARY OF TERMS 7 SECTION A - SUBMISSION REQUIREMENTS 10 1.0 Project Purpose 11 2.0 Schedule 11 3.0 Examination OF Agreement Documents 12 4.0 Information to be Submitted 13 4.1 Contractual Bid 13 4.2 Supplemental Information 14 5.0 Bid Format 15 5.1 Binding 15 5.2 Form Preparation 15 6.0 Submission of Bid 15 6.1 Withdrawal Of Bids 16 6.2 Questions & Addenda 16 7.0 Bid Guaranty 16 8.0 Execution Of Agreement 17 9.0 Consideration Of Bids 17 10.0 Selection Of Contractor 18 11.0 Acceptance of Bid 18 • 12.0 Assignment 18 13.0 Limitation Of Funds Available 19 14.0 Insurance and Bonds 19 14.1 Insurance 19 14.2 Bonds 20 15.0 Indemnity (Hold Harmless) 21 16.0 Payments 21 17.0 Default 22 18.0 Term of Agreement 22 19.0 Service Agreement 22 20.0 Subcontracts 22 21.0 Rights and Options 23 SECTION B - BID SPECIFICATION 24 1.0 Requirements 25 2.0 Program Goals and Objectives 26 3.0 Potential Regulatory and Operational Changes 26 4.0 Character Of The Solid Waste 26 4.1 Quality and Characteristics 27 5.0 Program Activities 27 5.1 Collection 27 • 4 • 5.2 Loading Mode 28 5.3 Town of Southold Accident and Damage Policy 28 5.4 NYSDEC Part 360 Permit to Operate 28 6.0 Haul Services 29 6.1 Work Included 29 6.2 Equipment 29 6.3 Weighings 30 6.4 Routing Mode - Contractor's Responsibility 30 7.0 Disposal Services Program Activities 30 7.1 Work Included 31 7.2 Operational Capacity 31 7.3 Permit Requirements 31 7.3.1 Disposal Sites Inside State Of New York 32 7.3.2 Disposal Sites Outside State of New York 33 7.4 Weighings 35 8.0 Safety and Health Regulations 35 9.0 Operations and Procedures 36 9.1 Supporting Data 37 SECTION C -TOWN OF SOUTHOLD SOLID WASTE 38 HAUUDISPOSAL SERVICES 1.0 Intent 39 2.0 General Bid Statement 39 3.0 Unit Price Bid Schedule 43 3.1 Compensation 43 3.2 Evaluation Unit Bid Price Formula 44 4.0 Bid Security Acknowledgment 45 5.0 Information Schedules 45 Information Schedule A Information Schedule B Information Schedule C Information Schedule D Information Schedule E Information Schedule F Information Schedule G Information Schedule H Information Schedule I Information Schedule J Information Schedule K Information Schedule L Information Schedule M 5 SECTION D - APPENDICES Appendix A Sample Operating Agreement Appendix B New York State Department of Environmental Conservation Permit Appendix C Accident Report Appendix D Town of Southold SWMP (Executive Summary) Appendix E Town of Southold Overview of Transfer Station Operations • • 6 GLOSSARY OF TERMS • ADMINISTRATOR - Shall mean the Coordinator of municipal solid waste (or his agent) Of the Town of Southold, New York. AGREEMENT - Shall mean a Form operating agreement set forth by the Town and resulting from this Bid Solicitation between the Town of Southold and the successful Bidder to be executed in 1997. AGREEMENT DOCUMENTS - Shall include the notice to bidders, instructions, bid solicitation, bid Forms, information schedules, proposal, payment bond, bid bond, Agreement, performance bond, certificates of insurance, glossary of terms any general conditions or special conditions, and any addenda. The Agreement Documents will Form a part of the Agreement. AGREEMENT YEAR - Shall mean the period from July 10, of a calendar year to July 9, of the next calendar year. BIDDER - Shall mean any party or parties submitting in proper form a bid to perform the work as specified in the Agreement Documents. The successful Bidder selected by the Town to perform the specified work will thereafter be known as the Contractor. . BID PRICE - Shall mean the unit cost to determine the ranking of bidders. BID SOLICITATION - Shall mean this document, specifications, and any bid addenda issued. COMMENCEMENT DATE - Shall mean July 10, 1997. CONSTRUCTION MATERIALS AND/OR DEMOLITION DEBRIS (C&D) - Shall mean solid waste resulting from the construction, renovation, equipping, remodeling, repair and demolition of structures and roads. Such waste includes, but is not limited to, bricks, concrete and other masonry materials, soil, rock, wood, wall coverings, plaster, drywall, non-asbestos insulation and roofing shingles. CONSTRUCTION MATERIALS AND/OR DEMOLITION DEBRIS (C&D) DISPOSAL SITES - Shall mean any site designated by the Contractor where construction and demolition debris is disposed of in a manner that minimizes environmental hazards and is permitted under the design and operation requirements of 6NYCRR Part 360 or alternatively outside the State of New York, is permitted under design and operation requirements meeting the requirements of 1) that jurisdiction's applicable regulatory agency and 2) Town of Southold's minimum standards. GLOSSARY - 1 7 CONTRACT DOCUMENTS - Shall have the same meaning as Agreement Documents. CONTRACT YEAR - Shall have the same meaning as Agreement Year. CONTRACTOR - Shall mean the party contracting to perform the work, or the heirs, executors, administrators, agents, or successors thereof. COORDINATOR - Shall mean the coordinator of municipal solid waste for the Town of Southold. COUNTY - Shall mean Suffolk County, State Of New York. DAILY - Sunday to Saturday, inclusive. EPA - Environmental Protection Agency (Federal). HAUL-DISPOSAL SERVICES UNIT PRICE - Shall mean the Contractors compensation in dollars for each ton of solid waste actually hauled from the Town Of Southold Transfer Station to the Contractor-Designated Disposal Site and disposed of at the Contractor-Designated Disposal Site. HAZARDOUS WASTE - Shall mean (1) any "hazardous waste" as defined under the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et sea.. or • "hazardous substance" as defined under the comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq., or "hazardous waste" as defined under New York Environmental Conservation Law Section 27-0901 et seg., as each such law may be amended from time to time, and the regulations promulgated thereunder, and any analogous or succeeding Federal, state or local law, rule or regulation and regulations promulgated thereunder and (2) any other material which any governmental agency or unit having appropriate jurisdiction shall determine from time to time cannot be processed at the facility because it is harmful, toxic or dangerous. NOTICE OF AWARD - Shall mean written notice from the Town of Southold to the successful Bidder that the Town of Southold intends to award an Agreement to the successful Bidder, subject to compliance with all their terms and conditions of the Agreement Documents. NYSDEC - New York State Department Of Environmental Conservation. OSHA - Federal Williams-Steiger Occupations Safety & Health Act of 1970, plus subsequent revisions. GLOSSARY - 2 • 8 OWNER - Shall mean the Town Of Southold, New York. Also may be referred to as the Town. PERMIT - Shall mean any and all permits, licenses, approvals, certificates of public convenience and necessity, Franchises or authorizations which must be issued by any Governmental Body having jurisdiction thereof to legally enable the Contractor to transport and/or dispose Of construction and demolition debris. PERMITTEE - Shall mean any person issued a valid permit to haul construction and demolition debris or to construct, establish, maintain or operate a construction and demolition debris Disposal Site. RCRA - Resource Conservation Recovery Act (Federal). SOLID WASTE - Shall mean all putrescible and non-putresscible materials or substances, including but not limited to garbage, refuse, rubbish, ashes, agricultural wastes, and offal. (Solid Waste does not include C&D waste, recyclables, hazardous, or infectious waste). SOLID WASTE DISPOSAL SITE(Sl - Shall mean any site designated by the Contractor where solid waste is disposed of in a manner that minimizes environmental hazards and Is permitted under the design and operation requirements of 6NYCRR Part 360 - • Solid Waste Management Facilities, or alternatively outside of the State of New York, is permitted under design and operation requirements meeting the requirements of 1) that jurisdiction's applicable regulatory agency and 2) Town of Southold's minimum standards. Also may be referred to as Disposal Site(s). SUBCONTRACTOR - Shall mean an individual, firm or corporation having a direct contract with the Contractor for services, equipment, materials and/or labor. GLOSSARY - 3 • 9 w SECTION A SUBMISSION REQUIREMENTS BIDDERS INFORMATION, INSTRUCTIONS, AND AWARD BASIS • 10 SECTION A w SUBMISSION REQUIREMENTS BIDDERS INFORMATION, INSTRUCTIONS AND AWARD BASIS 1.0 PROJECT PURPOSE The Town of Southold expects that it will receive and need to dispose of approximately 10.000 tons of solid waste during the agreement year. It is possible that the Town of Southold will contract with another town to receive and dispose of their solid wastes. If this happens the quantity of wastes to be hauled and disposed of under this Agreement will increase. This Bid Solicitation will ensure Town of Southold's solid waste will continue to be 1) hauled From the Town of Southold Transfer Station to Disposal Site(s) and 2) disposed of at permitted Disposal Site(s). 2.0 SCHEDULE The schedule below is an estimate of the time period leading up to the commencement of the Agreement. Its intent is to provide each Bidder with an idea of when certain events may occur. The dates given are guidelines and should not be • construed as firm dates or deadlines due to the multiple parties involved in the decision making process. EVENT DATE Transfer Station Visits By Appointment Pre-Bid Conference May 12, 1997 Bid Opening May 22, 1997 Town Board Approval June 3, 1997 Agreement Executed On or Before June 25, 1997 Operations Commencement July 10, 1997 • 11 3.0 EXAMINATION OF AGREEMENT DOCUMENTS, FAMILIARITY WITH THE WORK It is the responsibility of each Bidder before submitting a Bid to (a) examine the Sample Operating Agreement and Agreement Documents thoroughly; (b) visit the site of the Town of Southold Transfer Station; (c) attend and be familiar with the outcome of the pre-bid conference (d) become familiar with conditions at the Town of Southold Transfer Station and Disposal Sites that may affect cost, progress, performance or furnishing of the work; (e) become familiar with and consider all federal, state and local laws, regulations ordinances, permits, approvals and orders that may effect the cost, progress, performance or furnishing of the work; (f) study and carefully correlate the Bidder's observations with the Agreement Documents; and (g) notify the Town Clerk of all conflicts, errors or discrepancies in the Agreement Documents. Reference is made to the following Appendices which contain supplemental information which is attached to and made part of the Agreement Documents: Appendix A: Sample Operating Agreement Appendix B: NYSDEC Part 360 Operating Permit Appendix C: Town of Southold Accident Report Reference is made to the following Appendices which contain supplemental information which is attached to the Agreement Documents solely for the convenience of bidders: Appendix D: Solid Waste Management Plan Summary Appendix E: 1996 Cumulative Waste Summary Reference is made to the Following information which is available for review by Bidders at the Town Clerk's Office during normal business hours - 8:00 P.M. to 4:00 P.M. Monday through Friday. i. Pending conceptual plans for the proposed Town of Southold Transfer Station. ii. Town of Southold Solid Waste Management Plan. This information is presented solely for the convenience of the Bidders and does not constitute part of the Agreement Documents. Bidders shall form their own conclusions and opinions from this information and shall confirm any information . 12 contained therein regarding facilities and equipment through site visits. The Town does not guarantee the accuracy of any information contained in these documents. • Before submitting a Bid, each Bidder shall, at the Bidder's own expense, make or obtain any additional inspections, examinations, or studies and obtain any additional data and information which may affect cost, progress, performance or furnishing of the work and which Bidder deems necessary to determine its bid for performing and furnishing the work in accordance with the time, price and other terms and conditions of the Agreement Documents. The failure or omission of the Bidder to receive and examine any form, instrument or document, or make required inquiries and inspections, shall not relieve the Bidder from any obligation contained in the Agreement Documents. The Town will be justified in rejecting any claim based on facts or conditions of which the Contractor should have been cognizant. The submission of a Bid will constitute an incontrovertible representation by Bidder that Bidder has complied with every requirement of this Bid Solicitation, that without exception the Bid is premised upon performing and Furnishing the work required by the Agreement Documents, and that the Agreement Documents are sufficient in scope and detail to indicate and convey understanding of all terms and conditions for performing and furnishing the work. Bidders will be allowed to ask questions regarding the Bid Documents during the pre-bid conference to be held at: • Town Hall 53095 Main Road Southold, New York 11971 May 12, 1997 at 9:00 A.M. 4.0 INFORMATION TO BE SUBMITTED WITH PROPOSAL 4.1 Contractual Bid For the purpose of assisting the Town in determining the responsible Bidders for this Bid Solicitation, the Bidder is required to submit the following minimum information with his bid: i. Contractor Bid Form ii. Bid Security or Bid Bond iii. Information Schedules A through M as applicable iv. Supplemental Information as described in 4.2 4.2 Supplemental Information . 13 In addition to the aforementioned forms, the Bidder is required to submit the . following supplemental information with his bid: i. Operational Plan: A plan describing the Bidder's assessment of the requested operation set forth in Exhibit M. This section shall be divided into the following subsections: o Haul A detailed summary of requirements for manpower, materials and supplies, mobile equipment, etc., shall be included to provide the Town with general anticipated guidelines for performance under the Agreement. o Disposal A detailed summary of requirements of site capacity, useful life, hours and days of the week, operation, etc., shall be included to provide the Town with general anticipated guidelines for performance under the Agreement. A copy of the current Permits to Construct and Permits to Operate shall be included. If the Solid Waste Disposal Site is located outside the State of New York, a copy of the current applicable laws and regulations governing the design, construction and operation of the Disposal Site shall additionally be included. • ii. Litigation: A section briefly describing any current litigation which in any way may affect the Bidder's operational capability of useful life of the Solid Waste Disposal Sites. iii. Subcontractors: If the Bidder intends to use one or more subcontractors to complete any portion of the work, the Bidder must so indicate this intent in its Bid. The Bidder is advised that any Agreement awarded will be contingent upon the use of the subcontractor(s) so identified. In the event that the Bidder desires to change the number or identity of such subcontractor(s), the proposed change must be submitted to the Town for approval. No such change shall be made without the Town's approval. In addition, it is the policy of the Town of Southold to encourage the participation of Minority Business Enterprises (MBE's) and Women- Owned Business Enterprises (WBE's) on Town projects. For this reason, the Agreement will require Contractor to use its best efforts to include among its subcontractors MBE and WBE firms. In the event the successful Bidder intends to subcontract in excess of twenty-five percent (25%) of the work, the Bidder will be required to submit to the Town an MBEIWBE Utilization Plan acceptable to the Town prior to the Town's execution of the Agreement. • 14 he event the dder • rv. tDisposal Site Subcontractor- In he Disposal Siteidentified in its tB d, the Bidder'shallfown furnish a statement, signed by an authorized representative of the Disposal Site, which provides for Bidder's use of the site pursuant to this Bid Solicitation in accordance with the Agreement Documents. THE SUPPLEMENTAL INFORMATION REQUIREMENTS MAY BE SATISFIED BY INCLUDING A REFERENCE TO AN INFORMATION SCHEDULE( AND S INCLUDED ISN THE BID.LE IDES THE INFORMATION RE 5.0 BID FORMAT 5.1 Binding The document(s) if bound shall be in a manner that will provide for easy evaluation access (to lie flat when opened). Printing on both sides of the sheets, provided a quality paper is utilized that will prevent the type from showing through, is acceptable. Paper with substantial recycled content is preferred. 5.2 Form Preparation . Bids shall be submitted in the form described in this Bid Solicitation. All r typed, in both words and blank spaces for id ategoriesshall requiPedP In the eerly v evenn ink o t price shown n words and its numerals for all equivalent shown in figures do not agree, the ODIFIED words LIMITED OR RESTRICTED IN Bidder. BIDS SHALL NOT BE QUALIFIED,s not livable, it shall be so indicated. ANY WAY. In the eventnot beconsider ificat ed,ion depending on the nature of the missing Incomplete bids may information. 6.0 SUBMISSION OF BID Each Bidder shall submit six (6) separate complete sets of his Bid which shall be enclosed in a sealed opaque envelope plainly marked on the outside with the be considered title of the work and the name and address of the diesigne ted in thNo Bid e Noti e t Bidders. unless filed on or before the time and at the placeers unopened. Bids received after the preferably registered, the opening When sent by mailp ealed Bid, marked as will be returned to Bidd bove should be , enclosed in an additional envelope similarly marked and addressed to: Office of the Town Clerk • Town of Southold 15 53095 Main Road Southold, New York 11971 Bids received prior to the time of opening will be kept securely unopened. No bid received thereafter will be considered. 6.1 Withdrawal of Bids Any Bidder will be given permission to withdraw its Bid upon receipt of a properly notarized written request made no later than the time set for opening. At the time of opening of the bids, if such Bid is included, it will be returned to the Bidder unopened. No bid may be withdrawn after opening until execution of the Agreement or rejection of all bids as provided herein. 6.2 Questions & Addenda All questions about this Bid Solicitation must be submitted in writing to the following: Town Clerk Town of Southold 53095 Main Road • Southold, New York 11971 No alterations to this Bid Solicitation will be considered valid unless in writing and issued as Addenda. All such addenda shall become part of the documents and all Bidders shall be bound by such addenda, whether or not received by the Bidders. All questions must be received at least ten (1 ID) calendar days before bid opening in order to be answered. It shall be the Bidder's responsibility to make inquiries concerning any addenda issued. All addenda will be on file at the Town Clerk's office at least twenty-four (24) hours before bids are opened. The Town will not be bound by oral clarifications. 7.0 BID GUARANTY Each Bid must be accompanied by a bid guaranty (Section C, Schedule 5.0.K), without condition or qualification, which shall be in the sum of one hundred thousand dollars ($100,000.00). The guaranty may be certified check, bank draft, money order, standard form irrevocable letter of credit, or a bid bond in the form attached. The bid bond shall be secured from a surety company authorized to do business in the State of New York • 16 as a surety. No Bid will be considered unless it is accompanied by the required . guaranty, certified check, money order or bank draft must be made payable to the order of the Town of Southold. The bid bond shall name the Town as the obligee. Cash deposits will not be accepted. The bid guaranty shall ensure the execution of the Agreement and the furnishing of the surety bond or other required bonds by the successful Bidder, all as required by the Agreement Documents. All guaranties will be returned within ten (10) days after the execution of the Agreement and required bonds, insurance and other Agreement Documents are received from the successful Bidder. 8.0 EXECUTION OF AGREEMENT, FURNISHING OF BONDS The successful Bidder, or its legally authorized representative, shall be required to appear in person within ten (10) days of the Notice of Award by the Town at the place and time designated by the Town to execute the Agreement and other Agreement Documents for Haul/disposal services. The successful Bidder shall, at its own cost and expense, procure, execute and deliver to the Town the following documents within ten (10) days of formal Notice of Award by the Town. • Performance Bond - A Performance Bond shall be in an amount of one million dollars ($1,000,000.00). This bond (as shown by example in Section C, Schedule 5.01), shall be maintained at the Contractor's own expense for the term of the Agreement. Failure or refusal of the successful Bidder to execute and/or deliver such bond within the time designated, shall constitute a breach of such Bidder of the Agreement created by the Town's acceptance of the bid. In such event, the Town may determine that such Bidder has abandoned the Agreement and the Town shall be entitled to take action for any and all damages it may suffer as the result of such breach. The Town's rights in this regard shall include but not be limited to a claim against the: bid bond provided. The Town specifically reserves any and all other rights against the Contractor as a result of his failure to perform as required by these documents. 9.0 CONSIDERATION OF BIDS The Town of Southold reserves the right to reject any/or all bids for haul and disposal services if such action is deemed to be in the best interests of the Town. To be considered responsive to this Bid Solicitation, each Bidder shall: A. Provide equipment, labor, maintenance and management services to haul and dispose of solid waste from the Town of Southold Transfer • 17 Station to Contractor designated Solid Waste Disposal Site(s) as set forth in Section B - Bid Specifications. • B. Reserve and provide a minimum available capacity of 15,000 tons (52 weeks/year) yearly, allowing for seasonal and other peak periods. C. Provide evidence of all current valid state and Federal permits, licenses, local ordinances, etc., required by law to receive solid waste at the designated Disposal Site(s). D. Provide evidence of physical and financial capability to perform services described in the bid specifications. 10.0 SELECTION OF CONTRACTOR Bids will be evaluated only if accompanied by the approved form of bid guaranty. Only bids solicited from firms or combinations thereof, who have sufficient management, engineering capabilities, operating, and maintenance experience to fulfill the Town's goals and comply with the applicable local, stake, Federal laws, ordinances, regulations, e.g. New York State Department of Environmental Conservation, Resource Conservation Recovery Act and Federal Environmental Protection Agency guidelines will be accepted. The Town will review the bids and make a selection recommendation based on the evaluation criteria included in this Bid Solicitation or take such other action as it deems in its best interest. • Any agreement awarded hereunder will be to the responsible Bidder whose Evaluation Unit Bid Price is the lowest. The Town of Southold reserves the right, in its sole discretion, to reject all bids submitted in response to this Bid Solicitation. 11.0 ACCEPTANCE OF BID The acceptance of a Bid will be a Notice of Award signed by a duly authorized representative of the Town, and no other act of the Town shall constitute the acceptance of a Bid. The acceptance of a Bid shall bind the successful Bidder to execute the Agreement and other Agreement Documents. 12.0 ASSIGNMENT The successful Bidder to whom any Agreement shall be let, granted, or awarded shall not assign, transfer, convey, sublet, or otherwise dispose of the Agreement or of his right, title, or interest therein or his power to execute such Agreement, to any person or corporation without the prior written consent of the Town. 13.0 LIMITATION OF FUNDS AVAILABLE • 18 The Contractor specifically agrees that any Agreement shall be deemed executory only to the extent of the funds appropriated for the purpose of the Agreement and that no liability shall be incurred by the Town beyond the funds appropriated on the date of execution of the Agreement by the Town for the said purpose. 14.0 INSURANCE AND BONDS 14.1 Insurance For the period from Agreement commencement date until one (1) year after Agreement termination date, Contractor must maintain insurance acceptable to the Town in the kinds and amounts set forth below. All such insurance coverage shall be provided by companies licensed to do business in New York State and the state in which the Disposal Site(s) is (are) located. The Town of Southold and its agent shall be named as an additional insured and coverage shall not be changed or cancelled until thirty (30) days written notice has been given to the Town. Within ten (10) days of the Notice of Award, Contractor shall furnish to the Town, certificates of insurance, in a form satisfactory to the Town Attorney, evidencing such insurance. The kinds and amounts of insurance are as follows: A. Contractor's Insurance - Insurance for liability for damage imposed by law of kinds and in the amounts hereinafter provided covering all work under the Agreement, whether performed by Contractor or his • subcontractors. The kinds and amounts of insurance are as follows: (1) Worker's Compensation Insurance -A Policy covering the operations of the Contractor in accordance with the provisions of Chapter 41 of the Laws of 1914 as amended, known as the Worker's Compensation Law, covering all operations Of the Contractor, whether performed by him or by his subcontractors. The Agreement shall be void and of no effect unless the person or corporation making or executing same shall secure compensation coverage for the benefit of, and keep insured during the life of said Agreement such employees in compliance with provisions of the Worker's Compensation Law. (2) General Liability (Comprehensive Form) Insurance - Contractor's liability insurance issued to and covering legal liability of the Contractor with respect to all work performed by him under the Agreement. The following insurance coverage shall be included: (a) Independent Contractor's Protective Liability - Covering work performed by subcontractors. • 19 (b) Completed Operations or Product Liability. . (c) Contractual Liability. (d) Broad Form Property Damage. (e) Personallniury. NOTE: If any of the rating classifications embody property damage exclusions C or U, coverage for eliminating such exclusions must be provided. Coverage for the above will be required in not less than the following amounts: SINGLE LIMITS OF LIABILITY: $ 1,000,000.00 AGGREGATE LIMITS OF LIABILITY: $10,000,000.00 (3) Automobile Liability Insurance - Policy shall include coverage for all owned as well as non-owned and hired vehicles, and limits shall not be less than the following amounts: BODILY INJURY LIABILITY PROPERTY DAMAGE LIABILITY . Aggregate: $3,000,000.00 Aggregate: $3,000,000.00 Each Person Each Occurrence Each Occurrence $1,000,000.00 $1,000,000.00 14.2 Bonds Prior to the execution Of the Agreement, the successful bidder shall furnish to the Town a Performance Bond wherein the named obligee is the Town of Southold. The Performance Bond's purpose is to secure the faithful performance of the Agreement. The bond amount shall be set forth in Section A-8.0. The bond shall be executed by a surety company approved by the Town authorized to do business in the State of New York and with an office or representative in Suffolk County, New York. The form shall be acceptable to the Town of Southold and shall have a term through the completion of services. As an alternative to the Performance Bond, the successful Bidder may furnish a certified check, bank draft, money order, or a standard form irrevocable letter of credit, certified check, bank draft or money order must be made payable to the order of the Town of Southold. The standard form irrevocable letter of credit shall be in a form acceptable to the Town of Southold. • 20 In the event the Contractor secures a Performance Bond from any of its • subcontractors. said bond shall also name the Town of Southold as a dual obligee. Should the Town designate another public or private gent of contract administrator, the same or others shall be added as additional named obligee at no added costs to the Town, upon written request from the Town. 15.0 INDEMNITY (HOLD HARMLESS) Contractor shall agree to defend, indemnify and :save harmless the Town against any and all liability, loss, damage, detriment, suit, claim, demand, cost, charge, attorney's fees and expenses of whatever kind or nature which the Town may directly or indirectly incur, suffer or be required to pay by reason of or in consequence of the carrying out of or the performance of the terms of such Agreement, or the failure to carry out any of the revisions, duties, services or requirements of such Agreement, whether such losses and damages are suffered or sustained by the Town directly or its employees, licensees, agents, engineers, citizens or by other persons or corporations, including any of the Contractor's employees and agents who may seek to hold the Town liable therefor. This indemnity shall include any and all claims, penalties or other losses or damages incurred by the Town as a result of enforcement or other proceedings by Federal, state or local government agencies relating to Contractor's Disposal Site(s) operation. This obligation shall be ongoing, survive the term of the Agreement and include, but not be limited to, claims concerning non-sudden • environmental impairments. The Bidder agrees to join in the commencement of any action or proceeding or in the defense of any action or proceeding which in the opinion of the Town constitutes actual or threatened interference or interruption with the Town's rights hereunder, including all necessary appeals which may be necessary, in the opinion of the Town. 16.0 PAYMENTS Contractor shall receive monthly payments for services performed during the prior calendar month upon submission of an invoice (with a Town voucher) that shall contain an itemized list of municipal solid waste haul trips from the Town of Southold Transfer Station including the tonnage of municipal solid waste and the manifest number for each load of municipal solid waste removed. Such payments shall be made within sixty (60) days of the Town's approval of Contractor's invoice. Contractor's monthly invoice shall include a daily summary of tonnage received by Contractor at the Transfer Station. The Town shall be entitled to deduct from any payment owing to Contractor any sums expended by the Town to cure any default or other non-compliance by Contractor. • 21 17.0 DEFAULT • In the event the Contractor fails to perform its obligations under the Agreement, the Town may terminate such Agreement, and the Town may procure the services from other sources and hold the Contractor responsible for any excess costs incurred and deduct from payments owing to the Contractor and/or draw upon the Performance Bond as full or partial reimbursement for such excess costs. The Town reserves the right to terminate the Agreement for just cause. 18.0 TERM OF AGREEMENT The term of this Agreement shall be three (3) years commencing on July 10, 1997. If the Town enters into an intermunicipal solid waste haul/disposal agreement the Town may terminate the agreement at any time during years two (2) and three (3) by giving six (6) months written notice to the Contractor. The Town, at its sole discretion, shall have the option of renewing the Agreement for two (2) additional one (1 ) year terms by giving Contractor written notice of its intention to renew at least thirty (30) days prior to the expiration of the term. 19.0 SERVICE AGREEMENT The Contractor shall be obligated to provide the Town • with disposal services without regard to the permit status of its Disposal Site. In the event that Bidder wishes to submit a bid for a Disposal Site for which Bidder does not currently have all necessary federal and state permits, Bidder shall, at its sole risk and expense, be responsible for obtaining and/or renewing its permits or providing to the Town an alternate Solid Waste Disposal Site at no additional cost (disposal plus any additional hauling) to the Town. This is a full service Agreement and failure of the successful Bidder to provide the identified Disposal Site or acceptable alternative Disposal Site, on or after the commencement date for services under the Agreement Documents awarded hereunder shall constitute a breach of this Agreement. The Bidder accordingly shall not be excused from it obligations hereunder by reason of any failure to obtain or maintain its permits at the identified Disposal Site. 20.0 SUBCONTRACTS In the event Bidder does not own the Disposal Site identified in its bid prior to execution of the Agreement, Bidder shall: (1) furnish to the Town a copy of the signed Agreement between Bidder and the Disposal Site Contractor which provides for Bidder's use of the site pursuant to this Bid Solicitation in accordance with the Agreement Documents; 22 (2) require the Disposal Site Contractor to furnish to Contractor and the Town a performance bond guaranteeing the availability of the Disposal Site throughout the term of the Agreement; (3) require the certificates Contractor to provide insurance naming the Town as additional insureds on all policies maintained by Contractor. 21.0 RIGHTS AND OPTIONS The Town of Southold, New York, reserves and holds at its discretion the following rights and options upon issuing this Bid Solicitation: 1. To award an Agreement to the candidate whose bid is judged to be the lowest responsible bid pursuant to Section 103 of the General Municipal Law of the State of New York. 2. To reject any and/or all bids. 3. To issue subsequent bid solicitations. 4. To issue additional and subsequent solicitations for statements of qualifications. and conduct investigations or interviews with respect to the • qualifications of each Bidder. 5. To designate another public body, private or public agency, group, or authority to act in its behalf for evaluation and Agreement negotiations. 6. To designate another public body, private or public agency, group, or authority to act in its behalf for contract administration of this project at any time during the Agreement period. • 23 SECTION B BID SPECIFICATIONS (TECHNICAUMANAGEMENT) • • 24 SECTION B BID SPECIFICATIONS TECHNICAL/MANAGEMENT 1.0 REQUIREMENTS This request for bids is issued for the Town of Southold, State of New York, Town Hall, 53095 Main Road, Southold, New York, 11971 (Telephone (516) 765-1800) The effort, shall be known as the Town of Southold Solid Waste Haul Disposal Service. The Town of Southold desires to issue an Agreement with a qualified Contractor to haul and dispose of a portion of its Solid Waste. The Town will need to dispose of approximately 10,000 tons of solid waste during the agreement years. The Contractor will ensure the Town that solid waste will continue to be; 1) hauled from the Town of Southolld's transfer Station to disposal site(s), and; 2) disposed at permitted disposal site(s). The following general services are sought in this request: • HAUL Provide equipment, labor, maintenance, management and policies to operate a transportation system for hauling solid waste from the Town of Southold transfer Station to Contractor designated disposal site(s) as set forth herein. Transportation equipment shall be in accordance with New York State Department of Transportation, Interstate Commerce Commission, United States Department of Transportation, as defined in the Code of Federal Regulations, or other applicable state and federal regulatory requirements. • Disposal Reserve capacity and provide equipment, labor, maintenance, management and policies to receive and dispose of solid waste from the Town of Southold Transfer Station as set forth herein. The Contractor's New York State Solid Waste Disposal Site(s) must be in compliance with all State of New York Department Of Environmental Conservation's and U.S. Government's Regulatory requirements, e.g., 6NYCRR Part 360, Resource Conservation Recovery Act (RCRA), Environmental Protection Agency - Subtitle D. et al. Disposal Sites outside New York State shall be • permitted by applicable local, state and Federal laws including RCRA and 25 Subtitle D and regulations deemed by the Town to be no less protective of the environment than those outlined in this specification. Disposal 40 alternatives that will be considered include land disposal, incineration, composting, etc., as long as they comply with regulatory requirements and environmental standards. 2.0 PROGRAM GOALS AND OBJECTIVES The goal of this project is the continued safe and reliable hauling and disposal of the solid waste materials from the Town Of Southold Transfer Station at minimum cost to the citizenry. It is also the objective of the Town of Southold to ensure that the haul- disposal operations proceed according to the provisions of this document and subsequent agreements/amendments are upheld. 3.0 POTENTIAL REGULATORY AND OPERATIONAL CHANGES During the term of the Agreement, there may be a number of regulatory and operational changes which may Affect the quantities and types of solid waste received at the Town of Southold Transfer Station and delivered to the Disposal Site. • This Agreement will not provide any guarantees with respect to the volume of waste to be hauled and/or disposed of by Contractor. The Town reserves the right to designate another public body, private or public agency, group or authority to act in its behalf for administration of the Agreement at any time during the term of Agreement. 4.0 CHARACTER OF THE SOLID WASTE The wastes which are to be hauled and disposed of under terms of this bid solicitation are to include typical municipal wastes from a rural community. This will include all waste types generated in private households, and, therefore, can include broken furniture, small appliances, and other wastes generated in a private home or apartment as allowed under 6NYCRR Part 360- 1:2(a) regulations and the Garbage, Rubbish and Refuse Law, Chapter 48 of the Code of the Town of Southold. Commercial waste may also be included in the solid waste stream. It may include any waste which is typically disposed of in dumpster or roll-off type container boxes at restaurants, small businesses, light industries, hospitals, office buildings etc. It should not include any wastes covered by special waste • 26 permits Such as pathogenic or hazardous materials, but the Town cannot guarantee that the waste stream does not contain same. Special costs associated with handling noncompliance loads will be compensated under Forced Accounting (Appendix A-9). 4.1 Quality and Characteristics The Town Of Southold's historical solid waste quantities and characterization data are included in the Appendices. Bidders are cautioned that actual quantities may differ significantly from these data. Recycling programs may affect the quantity and characteristics of the waste received at the Town of Southold Transfer Station. If the Contractor discovers any non-compliance waste (hazardous, regulated medical or special wastes), the Contractor shall notify the Town and dispose of the noncompliance waste in accordance with local, state and Federal regulations. Compensation for such waste disposal services shall be provided for under Forced Accounting (Appendix A-9). The Town makes no specific representations in the foregoing disclosure. 5.0 PROGRAM ACTIVITIES • 5.1 Collection The Town of Southold Transfer Station is open 7 days a week, except holidays, from 7:00 A.M. to 5:00 P.M. The Contractor will be expected to collect and remove solid waste from the Transfer Station during the following hours: Monday through Friday 7:00 A.M. to 4:00 P.M., The Transfer Station is closed on the following holidays: New Year's Day Columbus Day Martin Luther King Day Election Day Lincoln's Birthday Veterans Day Presidents Day 1/2 day before Thanksgiving Easter Sunday Thanksgiving Memorial Day 1/2 day before Christmas Independence Day Christmas Labor Day 1/2 day before New Year's Day The Contractor must make transfer containers available for loading seven days a . week, if requested, between 7:00 A.M. and 4:00 P.M. Removal of waste on 27 Sundays is frequently not required during the winter months. The Contractor will be expected to provide enough containers to empty • Transfer Station tipping floor on a daily basis, delivery and staging of an adequate number of containers for this purpose will be coordinated with Transfer Station Staff as needed. 5.2 Loading Mode The Contractor shall fully prepare transfer containers for loading, including assuring that container covers or empty containers are left open. Solid Waste will be loaded by the Town at its Transfer Station using a front end wheel loader or backhoe. After loading, Contractor will bring transfer containers to the Town's truck scales for weighing to prevent overloading and to document haul and disposal tonnages. Contractor will then covertar ( p) his load prior to leaving the site. If required by any local, state or Federal regulations or law, the contractor shall expert a and included in Provie sealed rthe unit pri for loadine bid's service shall be at the Contractor's 5.3 Town Of Southold Accident and Damage Policy • The Contractor shall be required to prepare an Accident Report C) Of any accidents and/or damage that occur while performing Cervi es under the term of the Agreement. Appendix The Town of Southold shall immediately be notified of an y major Occurreces such as bodily injury of structural damage to the Town's Transfer Station'An Accident Report will be submitted to the Town within twenty-four 24 containing the date, time, location, and complete description of all incidents. The offending ( ) hours Parts or representative/e thereof shall also be recorded and prior to departing the Town of required to sign the accident/damage report Southold Transfer Station. All accident and/or damage reports will be included in reports to the Town. 5.4 NYSDEC Part 360 Permit to Operate The Town Of Southold operates the Transfer Station under a New York State Department of Environmental Conservation (NYSDEC) Part 360 Permit to Operate. A copy of NYSDEC Permit is included as Appendix B. • 28 • 6.0 HAUL SERVICES For Solid Waste Haul-Disposal Services Agreement, the following services will include the tasks, responsibilities and performance required as outlined herein. 6.1 Work Included The Contractor shall provide the following major essential services or equipment and any other nonspecified items, without limitations, to maintain a reliable haul services operation in a manner that will meet the needs of the Town of Southold. • Management and operation of a fleet to accommodate the transport of solid waste from the Town transfer Station to Solid Waste Disposal Site(s) in accordance with all local, state, and Federal regulations. Financial liability and maintenance responsibility of transport equipment, i.e., dump trailers, transfer trailers bulk material containers, vehicles, personnel and services for open-top loading solid waste hauling activities. • Coordination of haul services with disposal services. 6.2 Equipment The Contractor shall provide reliable refuse handling and other essential ancillary equipment, along with personnel to operate and maintain a reliable haul services system in a manner that will satisfy the needs of the Town of Southold. The minimum level of haul services equipment acceptable to the Town to support the haul operation includes open-top trailers and bulk material containers. The Contractor will supply additional open-top trailers and containers, etc. The contractor must assure the Town that an adequate reserve supply of equipment exists to haul and dispose of the daily and seasonal solid waste including unpredictable surges or delays due to inclement weather and that transport equipment storage requirements will meet the Town of Southold Transfer Station requirements. Each bidder is therefore responsible for familiarizing itself with the Town of Southold Transfer Station site, solid waste, etc., to assure equipment compatibility. Transport equipment may be open-top bulk material containers, dump trailers, roll-off containers or opentop transfer trailers, provided that all such equipment is suitable for convenient loading given existing configurations of the Town of • Southold Transfer Station. 29 • Transport equipment shall be: 1) Registered with the State of New York Department of Motor Vehicles or equivalent agency; 2) designed to preclude spillage of waste; 3) loaded within their design capacity and New York State Department of Transportation regulations; 4) well maintained in good working order. Corroded, defective, bent, deformed or punctured trailers, roll-off boxes, or other containers of waste materials shall not be utilized at any time. Suitable covers shall be provided and used while transporting solid waste in open-top transport equipment. The bidder shall clearly indicate the quantity and type of transport equipment/vehicles it plans to use, their availability date, state of repair, and that such units are compatible with the Town of Southold Transfer Station scales and New York State DOT regulations, United States Department of Transportation, as defined in the Code of Federal Regulations, or equivalent. The Contractor will promptly remove from use any transport equipment/vehicle that does not conform with these requirements and replace it with an acceptable unit. The Contractor shall maintain its own off-site maintenance shop facilities for servicing the transport equipmentand vehicle fleet, unless it elects to subcontract for these services. No major maintenance may be done at the Town of Southold Transfer Station site. 6.3 Weighings The Town of Southold will provide certified weighing at the Town of Southold Transfer Station. The Contractor will accept these weights for invoicing purposes. All weights will be generated on current certified weigh scales. 6.4 Routing Mode - Contractor's Responsibility Contractor will have the right to select the route(s) for travel from the Town of Southold transfer Station to the Disposal Site(s). Contractor warrants and guarantees that, in selecting and utilizing such route(s), Contractor will insure that it is not violating any applicable motor vehicle height (overpass clearance), motor vehicle weight restrictions, local ordinances or Interstate Commerce Commission regulations. Contractor will indemnify and hold the Town harmless from any claims, fines and other damages assessed upon or incurred by the Town as a result of any violations of applicable restrictions or regulations relating to the routes traveled by the Contractor. 7.0 DISPOSAL SERVICES PROGRAM ACTIVITIES • 30 • For Solid Waste Haul-Disposal Service Agreement, the following disposal services will include the tasks, responsibilities and performance requirements as outlined herein. 7.1 Work Included The Contractor shall provide the following major essential services or equipment and any other nonspecified items, without limitations, to maintain a reliable disposal services operation in a manner that will meet the needs of the Town Of Southold. • Liability insurance, performance and payment bonds. • Safety equipment. 7.2 Operational Capacity The bidder shall identify in its proposal, the following information: • Disposal Site capacity. • • Flexibility of Disposal Site capacity to allow for seasonal variances in waste generation and sufficient to permit service in the tonnages bid. • Hours and days of the week that the designated Disposal Site will be open for receiving solid waste from the Town of Southold, including weekends, holidays and special closure periods. 7.3 Permit Requirements Throughout the term of Agreement that may result from this Bid solicitation. the Contractor must maintain all current and valid local, state and Federal permits, licenses, or other authorizations, (either temporary and permanent) which are required by law to receive solid waste at any and all Disposal sites designated by the bidder. Because of the varying terms of Solid Waste Disposal Site permits, it is possible that a permit will expire during the term of Agreement. The responsibility of obtaining and/or renewing a permit to operate is solely upon the Contractor. In the event a Contractor fails to maintain or obtain any necessary current and valid local, state and Federal permits, licenses, or other authorizations, allowing • the lawful use of its designated Disposal Site then the Contractor will be solely responsible for obtaining the utilization of an alternate Solid Waste Disposal Site 31 at no additional cost to the Town including any additional hauling cost because of the location of the alternate Disposal site. Under no circumstances shall such a change in Disposal Site or failure or inability to obtain permits by the Contractor be considered a change in conditions. In the event the Contractor is unable to find an alternate Disposal Site, it shall be deemed to be in default of the Agreement and liable for damages, bonds forfeitures and other expenses as provided in the Agreement. In the event the individual and/or entity submitting a bid in response to this bid solicitation is not the individual and/or entity named as the permit holder on any necessary current and valid local, state or federal permits, licenses or other authorizations, required by law to receive solid waste: at any disposal site designated by the bidder or any alternate disposal site, the bidder is required to provide satisfactory evidence to the Town of Southold of a binding contractual relationship between the bidder and the permit holder which provides the bidder with the irrevocable right to utilize the solid waste disposal site during the term of Agreement, or portion thereof, in a manner which is iin complete compliance with this bid solicitation and the bidder's bid submission. The agreement between the bidder and the permit holder shall include provisions that: 1. Provide Town with the right to discuss operational matters with the permit holder whenever necessary. 2. Require the permit holder to comply with directives of the Town which are consistent with and pursuant to the Agreement which shall result from this bid solicitation. 7.3.1 Disposal Sites Inside State of New York The Contractor's Solid Waste Disposal Sites, if located within the State of New York, must be in compliance with all State of New York Department of Environmental Conservation's and U.S. Environmental Protection Agency regulators requirements, e.g., 6NYCRR Part 360, Resource Conservation Recovery Act (RCRA), Environmental Protection Agency - Subtitle D, et al. The Solid Waste Disposal Site must have valid construction and operating permits in accordance with all applicable laws in the jurisdiction in which it is located. It shall be permitted to accept Town of Southold solid waste without violating applicable law. It shall meet the design, construction and operating requirements of ail applicable laws in the jurisdiction where the disposal site is operating. Disposal alternatives that will be considered include land disposal, incineration, composting, etc., as long as they comply with all the above • governing regulators requirements and environmental standards. The use of 32 Solid Waste Disposal Sites shall be subject to the: approval of the Town of • Southold based upon review of information submitted with the bid describing in detail the nature of the disposal process and other information reasonably requested by the Town. No Disposal Site shall be acceptable unless it poses no significant threat to the environment and its design, construction and operation complies with all applicable laws. 7.3.2 Disposal Sites Outside State of New York The Contractor's Solid Waste Disposal Sites, if located outside the State of New York must be in compliance with all the applicable local, state and Federal laws and regulations and U.S. Environmental Protection Agency regulatory requirements, e.g. Resource Conservation Recovery Act (RCRA), Environmental Protection Agency - Subtitle D, et al. The Solid Waste Disposal Sites must have valid construction and operation permits in accordance with all applicable laws in the jurisdiction in which it is located. It shall be permitted to accept Town of Southold solid waste without violating applicable law. It shall meet the design, construction and operating requirements of all applicable laws in the jurisdiction where the disposal site is operating. If the Solid Waste Disposal Site is a landfill, it must comply with the following minimum standards: • • Liner System. All proposed landfills under the Agreement shall be provided with at least a single liner system to restrict the migration of leachate and prevent pollution of underling soil or groundwater. Liner systems shall consist of low permeability soil admixtures, clays or synthetic materials. Liners are at a minimum to consist of materials having a demonstrated hydraulic conductivity and chemical and physical resistance not adversely affected by waste emplacement or sanitary landfill leachate, including synthetic geomembranes and soils such as clay or other semiimpervious admixture. Liner systems may consist of an impervious liner composed of at least two feet of clay with demonstrated hydraulic conductivity of 1x 10-> cm/sec or a synthetic single lining system of a thickness of at least 60 mils. Thicknesses down to 40 mils may be acceptable for composite liners which include impervious clay. Foundation: The proposed landfill shall be designed and constructed on an appropriate foundation which provides firm, relatively unyielding planar surfaces to support the liner system and which is capable of providing support 40 33 to the liner and resistance to the pressure gradient above and below the liner • resulting from settlement, compression or uplift. • Leachate Collection: The proposed landfill shall be equipped by a leachate drainage and removal system. The leachate drainage system shall consist of collection pipes and a drainage layer. The system shall be designed to ensure that the leachate head on the liner does not exceed one foot at any time. A leachate removal system shall be provided to remove leachate within the drainage system to a central collection point for treatment and disposal. • Leachate Treatment and Disposal: Leachate shall be treated and disposed of in accordance with all applicable laws, including applicable pretreatment standards and discharge limitations. • Gas Collection and Venting: The proposed landfill shall be equipped with a suitable gas collection and/or venting system which complies with all air pollution requirements and other applicable laws. • Surface Drainage Systems: The proposed landfill shall be designed with an appropriate surface drainage system which isolates the landfill from . adjacent surface water drainage in a controlled manner, as well as controlling run-off from the landfill itself. • Monitoring System: The proposed landfill shall be equipped with appropriate systems to monitor groundwater quality, gas production, leachate volume, quantity, slope and settlement status. The number and location of ground water monitoring wells shall be sufficient to define and detect any potential migration of contaminants. However, no fewer than one upgradient monitoring well and two downggradient monitoring wells shall be provided in any event. A regular sampling and analysis program shall be in place to verify that no groundwater contamination results from the landfill. • Closure: The proposed landfill shall have in place a written closure plan which conforms to applicable laws and standard industry practice. The closure plan shall be designed to insure that contamination does not spread from the landfill during) the post closure period. Bidder must clearly specify their intended disposal alternatives and support same with copies of appropriate experience, site location, permits, agreements et al., as outlined in this bid solicitation. The use of Solid Waste Disposal Sites shall be subject to the approval of the Town of Southold based upon review of • 34 information submitted with the bid describing in detail the nature of the disposal process and other information reasonably requested by the Town. The Contractor shall be solely and completely Responsible for any and all liability relative to contractor's failure to dispose of solid waste at an approved site. 7.4 Weighings The Town will compensate the Contractor for waste material hauled and disposed of on a net tonnage basis (short tons = 2000 pounds). The certified weighings will be made at the Southold Town Transfer Station. The Disposal Site will accept these weights for invoicing purposes. All weights will be generated on current certified weigh scales. In the event of any dispute over differences in net weights between the Town and Disposal Sites scales and weight records, the Town may make payment upon the weight it deems to be most correct, until the dispute is reconciled. Any claims for differences must be filed in writing within sixty (60) days of occurrence or the Town's calculation shall be deemed final and binding between the parties. 8.0 SAFETY AND HEALTH REGULATIONS The Contractor shall comply with all current Federal Department of Labor, Safety . and Health Regulations under the Occupational Safety and Health Act, 1972 (PL 91-596) and Section 107, Agreement Work Hours and Safety Standards Act (PL 91-54). Specific consideration shall be given, but not limited to, the following major areas: a. Maintenance safety procedures - guards and Shields on dynamic equipment, guards, railings, electrical lockouts, vehicle wheelblocks, audio vehicle backup alarms, vehicle wheel chocks, etc. b. Employee safety orientation, education, teaching, first-aid training, cardiopulmonary resuscitation, etc. c. Noise and dust control, ear protection, respirators, hard-hats, safety shields, glasses, protective clothing, sanitary facilities, etc., d. Fire and explosion preventions, control, equipment (fire blankets, extinguishers, first aid, hoses, etc.) and personnel escape alternatives. e. Traffic flow control patterns. f. Accident or injury reporting system (the Town shall received copies of all reports and immediate verbal notification). • 35 g. Employee health safeguards. • h. Mechanic's lien safeguard against work interference. The Contractor shall comply with all local, state and f=ederal regulations, laws and statutes which apply to the work and to safety in particular. The Contractor shall comply with New York State Department of Labor current requirements. The Contractor shall be solely and completely responsible for operational safety during performance of the Agreement. The obligation exists twenty-four (24) hours a day, each and every day throughout the terra of the Agreement. The Town of Southold shall not have any responsibility for means, methods, sequences of techniques selected by the Contractor for safety precautions and programs, or for any failure to comply with laws, rules, regulations, ordinances, codes or orders applicable to the Contractor furnishing and performing the services under the terms of the Agreement. 9.0 OPERATIONS AND PROCEDURES The Contractor will be required, prior to commencement of operations, to provide • the following operational plans to the Town for review and acceptance. Revisions, modifications, and updates shall be forwarded to the Town throughout the term of the Agreement. • Organization personnel and structure, showing the chain of command, names and telephone numbers and staffing requirements. • Operational plan - shifts, hours, etc. • Safety, disaster, and emergency procedures. • Transportation plan, including available transport equipment, vehicle fleet and reserve capabilities. • Inclement Weather Plan - This shall describe the bidder's plan should inclement weather alter normal daily operations as described in the bidder's operations plan. The inclement weather plan shall include hauling operations and disposal operations. The bidder's means of assessing inclement weather conditions (weather and road conditions), method of reporting to the Town and the alternatives shall tie described. • 36 9.1 Supporting Data • In the event the Town requires any information in support of Town held licenses and permits at the Town, County, State and Federal Revel, the Contractor will be required to furnish all licenses, permits and inspection reports regarding equipment and disposal sites which may be required by Town, County, State or Federal law. In the event the Contractor requires any information iin support of Contractor held licenses and permits at the Town, County, State and Federal level, the Town will cooperate in furnishing such information as it applies to the Southold Town operations. Operating (hauling and disposal) records shall be considered essential to the operation. The Contractor shall keep these data in an organized fashion that allows for easy retrieval and analysis. The Town, or its designee, may upon 24 hours notice inspect the contractor's records. Such records shall he kept, available by Contractor for a period of two (2) years ,after termination of this Agreement. In the event the Town requires additional information for reporting purposes, the Contractor will supply same. The Town, or its designee, may call upon the Contractor at anytime for an oral review of any technical matter. The Contractor shall file and update the following information as specified herein. Items Due Haul Equipment (Schedule H) as changes occur Haul Accident Report (Appendix C) on occurrence Disposal Accident Reports on occurrence Licenses, Permits and Inspection Reports on occurrence Part 360 Permit as changes occur All Bid Information Schedules as changes occur • 37 SECTION C TOWN OF SOUTHOLD SOLID WASTE HAUL-DISPOSAL SERVICES CONTRACTOR BID FORM 1.0 INTENT The undersigned hereby recognizes that these documents are complementary and are intended to provide for uniformity in bid evaluations. The formal Agreements resulting from this Bid Solicitation shall be in a form provided by the Town. These documents are intended to depict complete Solid Waste Haul-Disposal Services Agreement and therefore any discrepancies contained in the documents, of the omission from the documents of express reference to any work which obviously was intended under the Agreement, shall not excuse or relieve the Bidder from furnishing the same. No oral statement shall in any manner or degree modify of otherwise affect the terms of the Agreement. Work or materials described in words which have a well known technical or trade . meaning, shall be interpreted by such meaning. 2.0 GENERAL BID.STATEMENT TO: TOWN OF SOUTHOLD STATE OF NEW YORK 53095 MAIN ROAD SOUTHOLD, NEW YORK 11971 Gentlemen: The undersigned Bidder has carefully examined the forms and content of the Bid Solicitation, including notice to bidders, bid bond, sample operating agreement, performance bond, certificates of insurance, general conditions, bid specifications, and addenda, has familiarized itself with the sites of work, and hereby proposes to furnish all necessary services, permits, labor, materials, equipment, vehicles, and tools required to perform and complete the work in strict accordance with all of the bid documents written by or on behalf of the Town of Southold for this project. The undersigned Bidder agrees to abide by all conditions stated, intended, or implied both particularly and generally by the terms of this Bid Solicitation, the • Agreement to be provided by the Town, and the unit price Bid herein stated. 39 1. The Undersigned Bidder also agrees as follows: FIRST: If this bid is accepted, to execute the Agreement and furnish to the Town a satisfactory performance bond, and insurance all within ten (10) calendar days. SECOND: To begin Solid Waste Haul-Disposal services operations on the commencement date of any Agreement awarded hereunder, having completed all necessary prior preparations of operational planning, personnel hiring, equipment procurement, subcontractor contractual agreements, and ancillary facilities, etc., to assure a smooth and orderly acceptance of these duties. THIRD: To pay the Town any and all damages it may incur as a result of the Contractor's failure to perform all acts necessary to the execution of the Agreement as provided in the Bid Solicitation. It is recognized and agreed that the Town has the unconditional right to utilize the funds provided by the bid bond posted by the Bidder as a means of obtaining indemnification or, payment of such damages. FOURTH: During the performance of this Agreement, the Contractor hereby • agrees as follows: a. The Contractor shall not discriminate against any employee or applicant for employment because of age, race, creed, color, sex, marital status, national origin, physical disability, and shall take affirmative action to ensure that they are afforded equal employment opportunities without discrimination because of age, race, creed, color-, sex, marital status, national origin or physical disability. Such action shall be taken with reference, but not be limited to: recruitment, employment, job assignment, promotion, upgrading, demotion, transfer, layoff, or termination, rates of pay, or other forms of compensation, and selection for training or retraining, including apprenticeship and on-the-job training. b. The Contractor shall comply with the provisions of Sections 290 through 301 of the Executive Law, shall furnish all information and reports deemed necessary by the State Commission for Human Rights under these nondiscrimination clauses and such sections of the Executive Law, and shall permit access to his books, records, and accounts by the State Commission for Human Rights, the Attorney General, and the Industrial Commissioner for purposes of investigation to ascertain compliance with these nondiscrimination clauses and such sections of the Executive Law and Civil Rights Law. 40 c. This Agreement may be forthwith cancelled, terminated, or suspended, in whole or in part, by the Town upon the basis of a finding made by the State Commission for Human Rights that the Contractor has not complied with these nondiscrimination clauses, and the Contractor may be declared ineligible for future Agreements made by or on behalf of the state or public authority or agency of the state, until he satisfies to the State Commission for Human Rights that he has established and is carrying out a program in conformity with the provisions of these nondiscrimination clauses. Such findings shall be made by the State Commission for Human Rights after conciliation efforts by the Commission have failed to achieve compliance with these nondiscrimination clauses and after verified complaint has been filed with the Commission notice thereof has been given to the Contractor, and an opportunity has been afforded to him to be heard publicly before three members of the Commission. Such sanctions may be imposed and remedies invoked independently or in addition to sanctions and remedies otherwise provided by law. d. No laborer, workman or mechanic in the employ of the Contractor or subcontractor shall be permitted or required to work more than eight hours in any one calendar day, or more than five days in any one week except as otherwise provided in Labor Code Section 220. . e. The Contractor shall include the provisions of clauses (a) through (e) in every subcontract or purchase order in such a manner that such provisions will be binding upon each subcontractor or vendor as to operations to be performed within the State of New York. The Contractor will take such action in enforcing such provisions of such subcontract or purchase order as the Town may direct, including sanctions and remedies. FIFTH: By submission of this bid, the Bidder and each person signing on behalf of any Bidder certifies, and in case of a joint bid each parry thereto certifies as to its own organization, under penalty of perjury that to the best of his knowledge and belief: a. The prices in this bid have been arrived at independently without collusion, consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such prices with any other Bidder or with any competitor. b. Unless otherwise required by law, the prices which have been quoted in this bid have not been knowingly disclosed by the Bidder and will not • 41 knowingly be disclosed by the Bidder prior to opening, directly or indirectly to any other Bidder or to any competitor. c. No attempt has been made nor will be made by the Bidder to induce any other person, partnership, or corporation to submit or not to submit a bid for the purpose of restricting competition. 2. The undersigned also declares that it has or they have carefully examined the Bid Solicitation requirements and sample operating agreement and that it has or they have personally inspected the actual location of work, together with the local sources of supply, has or have satisfied itself or themselves as to all the quantities and conditions, and waives all rights to claim any misunderstanding, omissions or errors regarding the same which such inspection and observation would have disclosed. The undersigned further understands and agrees that it is or they are to furnish and provide in return for the respective Evaluation Unit Bid Price, all the necessary materials, machinery, vehicles, implements, tools, labor services, and other items of whatever nature, and to do and perform all work necessary under the aforesaid conditions, to complete operations of the aforementioned Solid Waste Haul-Disposal Services operations in accordance with the Bid Solicitation requirements, which requirements are a part of this response, and that it or they will accept in full compensation therefore, the compensation provided for in Section C-3. 3. The undersigned submits herewith a bid guaranty within the form provided by the applicable bid documents in the amount of$100,000.00 for any option or combination thereof. In the event this proposal is accepted, and the undersigned fails, within ten (10) calendar days after date of receipt of Notice Of Award from the Town to execute and deliver an Agreement in the form provided by the Town or fails to execute and deliver evidence of proper insurance coverage and performance bond in the amounts required and in the prescribed form within ten (10) days after Notice of Award, the bid guaranty shall be forfeited and be retained by the Town toward the satisfaction of liquidated damages and not as a penalty. Otherwise, the total amount of bid guaranty liquidated will be returned to the Bidder. 4. The undersigned acknowledges the receipt of the following addenda, but it agrees that it is bound by all addenda whether or not listed herein and whether or not actually received, it being the Bidder's responsibility to receive and have knowledge of all addenda. ADDENDUM NUMBER AND DATES • 42 Number 1 - Dated: Number 2 - Dated: • Number 3 - Dated: Number 4 - Dated: Number 5 - Dated: 5. The Bidder has completed the Contract Bid Form and Unit Price Schedules in both words and numerals in accordance with these bid requirements. 3.0 UNIT PRICE BID SCHEDULE SOLID WASTE HAUL-DISPOSAL SERVICES SOUTHOLD TOWN, NEW YORK 3.1 COMPENSATION The undersigned hereby submits the following price bid to furnish Solid Waste Haul-Disposal Services, to Southold Town, New York for the terms July 10, 1997 through July 9, 2002. HAUL-DISPOSAL SERVICES The Haul-Disposal Service applicable unit price per ton for agreement year 1997-1998 is is/_ �i - L' dollars and gogLs ($ C , �I ). (C1) The Haul-Disposal Service applicable unit price per ton for agreement year 1998-1999 is 4 Cl_ dollars and C': QC�nts ($ ). (C2) The Haul-Disposal Service applicable unit price per ton for agreement year 1999-2000 is !\J �, dollars and 43 • �ents ($ ). (C3) • The Haul-Disposal Service applicable unit price per ton for agreement year 2000-2001 is kZ �� C�"�l \ \�h dollars and cents ($ ni\ S ). (C4) The Haul-Disposal Service applicable unit price per ton for agreement year 2001-2002 is Q �C C� �\ �u �� dollars and � 'cnents ($ � ) (G5) 3.2 EVALUATION UNIT BID PRICE FORMULA Evaluation Unit Bid Price = (C1 )10 000+(C2)10 000+(C3)10 000+ 5(C4)10,000+.5(C5)10,000 40,000 tons _ C= Evaluation Unit Bid Price = $ • The evaluation unit bid price formula is designed to evaluate years four and five at .5 the evaluate of each of the first three (3) years. WM of New York, Inc. DBA Bidder' Waste Managenent of New York 123 Varick Avenue Brooklyn. NY Firm-Corporation Address By 5-22-97 uthhrized Representative Date 44 • O� gUFFO(,�c O JUDITI3 T.TERRY Town Hall, 53095 Main Road • TOWN CLERK H P.O. Box 1179 r Southold, New York 11971 REGISTRAR OF VITAL STATISTICS O 1 Fax (516) 765-1823 MARRIAGE OFFICER RECORDS MANAGEMENT OFFICER Telephone (516) 765-1800 FREEDOM OF INFORMATION OFFICER OFFICE OF THE TOWN CLERIK TOWN OF SOUTHOLD May 1 , 1997 Dear Bidder: Please replace Page 44 in your bid packet for Solid Waste Haul Disposal Services with the enclosed Page 44. Thank you. . Town of Southold 4.0 BID SECURITY ACKNOWLEDGEMENT • 1 have attached the required bid security to this bide. 5.0 INFORMATION SCHEDULES I agree to furnish and include the following information schedules in addition to the information submitted with this proposal, as a part of this bid: A. Certification that the Bidder does not currently owe taxes, or other outstanding funds, or have pending or is currently involved in any litigation involving the Town of Southold, State: of New York (Schedule A, attached hereto). B. Location and address of the Bidder's main office and the main office of parent companies (if applicable) and Certified Statements of Ownership (Schedule B, attached hereto). C. Identification of Surety Company and its Agent, and written certification from the Surety verifying the bond specified herein will be provided (Schedule C, attached hereto). D. Identification of all currently registered parent bidding subsidiary corporate officers, and their addresses, and identification and certification of offices authorized to execute an Agreement on behalf of the firm (Schedule D, attached hereto). E. Detailed financial statement for the Bidder, and if applicable, for parent companies (Schedule E, attached hereto). F. Statement of Bidder's Qualifications and related experiences (Schedule F, attached hereto). G. Major Subcontractors - (Schedule G, attached hereto). H. Equipment - (Schedule H, attached hereto). 1. Maximum Specified Capacity - (Schedule I, attached hereto). J. Information on Bidder's Solid Waste Disposal Site(s) (Schedule J, attached hereto). K. Form of Bid Bond (Schedule K, attached hereto). 45 L. Performance Bond (Schedule L, attached hereto). M. Operation Plan (Schedule M, attached hereto). Dated: May 22, 1997 WM of New York, Inc. 11, Name of Bidder: waste Management of New York Address of Bidder: 123yarick Avenue Brooklyn New York 112:37 y:: ry-w-1cpnit- Signature Title Corporate Seal (If a Corporation) Incorporated under the laws of the State of Delaware Names and addresses of officers of the corporation: William P. Hulligan 8434 Carriage Greens Dr_ Dar;en Tr. (President) Name Address Thomas J. Jennings 70 Johnnycake 4; r pt_ N_ aryirnror ma (Secretary) Name Address Robert C. Bigg 210 Kathy Way Yardely, PA (Treasurer) Name Address (If an individual or partnership) Names and addresses of all principals or partners INFORMATION SCHEDULE A Town of Southold Bid Protect Solid Waste Haul-Disposal Services W4 ofNew YCrk' TM' I� herein certifies that as a This Bidder F�iE rtOfN��c - (Bidder ' s legal name) Bidder , it does not currently owe delinquent taxes or or.her outstanding funds , or having pending or currently involved in anu ii`,.igation involving the Town of 5ouzncld , State cf New York . PM of NEW Mxk, Inc. EM Name of Bidder : -eWtcENew York gy :���� � _ Date: _5/12/97_ Authorized Signature; • NOTE: ( 1 ) If blank not applicable , fill in with N/A (2) IF bidder owes the Town taxes or is involved in any litigation , a statement of ex_'_anation wiI _ be attached hereto . • Tax/Litigation Certification Schedule S .O .A BID (PROPOSAL) FORM • INFORMATION SCHEDULE B Town of Southold Bid Project Solid Waste Haul-Disposal Services The following is information on the undersigned Bidder ' s office locations : Bidder 's 'parent Bidder ' s Main Office Corporation Main Office W4 cf Nav York, Inc, EM Waste Mx matt of New Yolk W-X Tedrniog es, im. Charles Gusmano William Hulligan Manager ' s Name CContact) Manager ' s Name CContact) W4 of New York, Inc. EEA W%-te Ntmagatt of NEW Yuck W X Tednolocpes IM. Firm ' s Legal Name Parent Firm 's Legal Name 123 Varick Avenue 3003 But:terfeild Road _ Street Address (Box Numbers) Street Address (E=x Numbers) • Brooklyn, NY 112.37 Oakbrook, IL 60521 Citu State Zip City State Zip 718-533-5314 630-572--8800 Telephone Number Telephone Number The Bidder herein certifies that the 4 ' tUL: NEWW Firm is partially/wholly owned subsidiary of W'KTedrnloEOm irc• Parent Firm This N/A is owned N/ Parent Firm By N/A or is a(public/private stock corporation . • 5idder Cf`lce Locations/Ownership Schedule S .O .B Crertifica ion Face 1 of BID CPROPCSAL) FORM • WM of New York, Inc. DBA Name oz =_oder : Waste Management of New York Date : 5-22-97 Z'DC�Fries Gusmano • Note . S-ne-uIe ant^ to y me^ra_ed _-tz _- Sit:d Form . _ a nct • Kidd?^_ _. . _�� _ _-' ' -n -!nin=r='�:iJ • iNFORnATiON SCHEDULE C Town of Southold Bid Protect So-" id Waste Haul-Disposal Services' This _s :dentific2tion that Fireman's Fund Insurance Company wil _ Ce c-e Surety Companu For 4VM of New York. In.c. the S_tde- , on tris project and that the named Surety Company herein -3vides written certification that the named Surety Comaan_ u111 provite the Performance Bond, specified in, the Cort-a r Cocumer.ts, in the event the Bidder enters into an Ayreene- - with the =own . The Surety Company herein ce-tifies 6r s:.c- Cznpany is licensed to do business in the State of New Yo-i: . WM OF NEW YO K, INC. Pr inc' Da'_ . CSea: Donald S. Haufe, Assistan.t Secretary FIREMAN' S FUND INSURANCE COMPANY Surety Company Mersa M. DW-Iman Attorney-in-Fact • Su-ety .erlf"?cation Schedule S .O .C. 212 iPP.7?75Ai) FORM r FIREMAN'S FUND INSURANCE COMPANY MEN BY THESE PRESENTS:That FIREMAN'S FUND INSURANCE COMPANY,a Corporation duly organized and existing under the laws of California,and having its principal office in the County of Marin.State of California,has made,constituted and appointed,and does by these see, te�andappoint DONALD S . HAUFE , KAREN E. BOGARD , REBECCA R. ALVES , A MAKDAH, MELISSA M. NEWMAN, jointly or severally AGO IL iwful Attorney(s)-in-Fact,with full power and authority hereby conferred in its name,place and stead,to execute,seal,acknowledge and deliver any s,undertaking,recognizances or other written obligations in the nature thereof ________________--______________ the Corporation thereby as fully and to the same extent as if such bonds were signed by the President, sealed with the corporate seal of the t and duly attested by its Secretary,hereby ratifying and confirming all that the said Attomey(s)-in-Fact may do in the premises. 1f attorney is granted pursuant to Article VII,Sections 45 and 46 of By-laws of FIREMAN'S FUND INSURANCE COMPANY now in full force and SII.Appointment and Authority of Resident Secretaries,Attorney-In-Fact and Agents to accept Legal Process aid SLke Appearances. i.Appointment.The Chairman of the Board of Directors, the President, any Vice-President or any other person authorized by the Board of re Chairman of the Board of Directors,the President or any VicePwident may, from time to time,appoint Resident Assistant Secretaries and ,-Fact to represent and act for and on behalf of the Corporation and Agents to accept legal Process and make appearances for and an behalf of the 1. .Authority.The authority of such Resident Assistant Secretaries,Attorneys-in-Fact and Agents shall be as prescribed in the instrument evidencing intent.Any such appointment and all authority granted thereby may be revoked at any time by the Board of Direclon or by any person empowered to .ppointai of attorney is signed and sealed under and by the authority of the following Resolution adopted by the Board of Directors of FIREMAN'S FUND :E COMPANY at a meeting duly called and held on the 7th day of August, 1994,and said Resolution has not been amended or repealed: D, that the signature of any Vice-President, Assistant Secretary, and Resident Assistant Secretary of this Corporation, and the seal of this 1 may be affixed or printed on any power of attorney,on any revocation of any power of attorney,or on any certificate relating thereto,by facsimile, ver of attorney,any revocation of any power of attorney,or certificate bearing such facsimile signature or facsimile seal shall be valid and binding trporation" SS WHEREOF,FIREMAN'S FUND INSURANCE COMPANY has caused these prments to be signed by its Vice-President, and its corporate -r tied this 11th day of March . 1996 ws� -•:t°ie FIRE MA ' D I E COMPANY i• • By cr ca V. CALIFORNIAss IF MARIN I L t h day of March 19 96 ,before me personally came M. A. M a l l o n e e i,who,being by me duly sworn,did depose and say:that he is Vice-President of FIREMAN'S FUND INSURANCE COMPANY,the Corporation and which executed the above instrument;that he knows the seal of said Corporation;that the seal affixed to the said instrument is such corporate was so affixed by order of the Baud of Directors of said Corporation and that he signed his name thereto by like order. 3S WHEREOF,I have hereunto set my hand and affixed my official seal,the day and year herein first above written. A. KRIEGER D r 2 Cn%%J a 1(4511 2 T r, r. I pRN4 ,+ N Lary Pubac _ c s•; t.,..i u.:ibpr_s buy '+p.t93a J CERTIFICATE CALIFORNIA JF MARIN ss signed,Resident Assistant Secretary of FIREMAN'S FUND INSURANCE COMPANY,a CALIFORNIA Corporation,DO HEREBY CERTIFY :going and attached POWER OF ATTORNEY remains in full force and has not been revoked;and furthermore that Article VII,Sections 45 and 46 of of the Corporation,and the Resolution of the Board of Directors;set forth in the Power of Attorney,are now in force. sealed at the County of Marin.Dated the ?2nd day of May _' 19 97 �� ct c � Re,iEau Auistays Secraaly —11-67 UUUIV I r Ut- uuNat3t On this 22nd day of May 1997, before me personally appeare Melissa M. Newman , known to me to be Attorney-in-Fact of Fireman's Fund Insurance. C the corporation that executed the within instrument, and ac nowledged to me the same. th- - such corporation executed IN WITNESS WHEREOF, I have hereunto set my hand and affixed by official seal, at my office in the aforesaid county, the day and year in this certificate first above written. "OFFICIAL. SEAL' PATTY J. KENIS NOTARY rU° C ':Tl-_ IJ ILLINOIS MI Corr"k P- i r-.c:r^.s !^/17/99 • iNFORMATTON SCHEDULE 0 Town of Southold Bid Project Solid Waste Haul-Disposal Services The Bidder herein certifies that the below named individuals are the current registered corporate officers , along with their current permanent addresses , and designates their authority to execute an Agreement on behalf of the firm See Attached Officer ' s Name Officer ' s Name Subsidiary Parent Corporate Title Corporate Title Address Address City City State , Zip State, Zip Officer ' s Name Officer 's Name Subsidiary Parent Corporate Title Corporate Title Address Address City City State, Zip State, Zip Officer 's Name Officer 's Name Subsidiary Parent Corporate Title Corporate Title Address Address City City State, Zip State, Zip • Current Corporate Officers Schedule S .O .D BID (PROPOSAL) FORM Paye 1 OF 2 INFORMATION SCHEDULE D - (Continued) See Attached OFEicer ' =_ Name OFFicer ' s Name Subsidiary Parent Corpora--e Title Corporate Title Address Address City City State , ZiP State, Zip_ W cE NEw Ycxk, Inc. DM Name or Bi rider : bhsle Nxg[prant cE NEw Ycrk Z-- -pora.e By : / J Xe=i Date: Imo+ 72.1997 • NC _P blank nct applicable, rill in with N/A • OFFICERFS OF WMX TECHNOLOGIES, INC. Buntrock, Dean L. 3003 Butterfield Road Chairman of The Board & Cheif Executive Office Oakbrook IL 60521 Rooney, Philip B. (Phil) 3003 Butterfield Road President & Cheif Operating Officer Oakbrook IL 60521 Gertz, Rodney C. 3003 Butterfield Road Vice President-Technology Development & Management Oakbrook IL 60521 Hau, Thomas C. (Tom) 3003 Butterfield Road Vice President & Controller Oakbrook IL 60521 Hooks, H Vaughn 3003 Butterfield Road Vice President & Tax Oakbrook IL 60521 Jericho, Ronald M. (Ron) 3003 Butterfield Road Vice President-Reporting Oakbrook IL 60521 Payne, D.P. (Pat) 3003 Butterfield Road Senior Vice President - Human Resources & Communications Oakbrook IL 60521 Moore, Frank B. 3003 Butterfield Road Vice President-Government Affairs Oakbrook IL 60521 Koenig, James E. (Jim) 3003 Butterfield Road Vice President, Cheif Financial Officer & Treasurer Oakbrook IL 60521 Nustra, Susan C. (Sue) 3003 Butterfield Road Vice President-Treasury Oakbrook IL 60521 • Plunkett, William J. (Bill) 3003 Butterfield Road Vice President-Communications Oakbrook IL 60521 Tobecksen, Bruce D. 3003 Butterfield Road Vice President-Finance Oakbrook IL 60521 Wallgren, Donald A. (Don) 3003 Butterfield Road Vice President-Cheif Environmental Officer Oakbrook IL 60521 Witt, Thomas a, (Tom) 3003 Butterfield Road Vice President & Associate General Counsel Oakbrook IL 60521 Wittd, Linda R. (Lin) 3003 Butterfield Road Vice President & Associate Generale Counsel Oakbrook IL 60521 • BOARDIR Page 1 CONTRACTOR AFFIRMATION STATMENT WM OF NEW YORK, INC. NAME PRESIDENT AND DIRECTOR ADDRESS WILLIAM P. HULLIGAN PRESIDENT AND DIRECTOR 8434 CARRIGE GREEN DR. DARIAN, IL 60561 JAMES M. DANCY VICE PRESIDENT 156 CLIVEDEN DRIVE NEWTOWN, PA 18940 ROBERT C. BIGGS VICE PRESIDENT,TREASURER 1198 WATERWHEEL DR. YARDLEY PA 19067 THOMAS J. JENNINGS VICE PRESIDENT,SECRETARY 1030 FARMAL COURT AND DIRECTOR YARDELY, PA 19067 JEFFREY C. EVERETT ASSISTANT SECRETARY 400 S. ASHLAND AVENUE LA GRANGE IL 60525 DONALD S. HAUFE ASSISTANT SECRETARY 5546 BRUNER STREET HINSDALE, IL 60521 H. VAUGH HOOKS ASSISTANT TREASURER 6327 WESLEY STREET WILLOWBROOK, IL 60521 . SUSAN C. NUSTRA ASSISTANT TREASURER 19 W. 221 PATRICK HENRY SQ. OAKBROOK, IL 60521 L. MICHAEL COLLIER DIRECTOR 5 LAKEVEIW DRIVE NEWTOWN , PA 18940 • WMDIREC .4 M`r. y .. SEE ATTACHED FINANCIAL INFORMATION TNF ORMAT T pN SCHED iLE Town of Southold Bid Project Solid Waste Haul-Disposal Services STATEMENT OF BIDDER 'S FINANCIAL CONDITION 1 . This Bidder agrees to provide For any subsidiary and parent Firm , and hereto attaches a current or, the most recent Audited Financial StatementCs) including as a minimum the firms opinions , notes, revenue/expense statements, conditions of cash, etc . The attached statement provided includes : Accounting Firm Name Address Financial Per_od To Statement Date • 2 . The bidder c=_rtifies that he currently has an available line of credit in the amount of 5 A supporting documentary evidence attached to this Form is supplied by : Name Address Date 3 . The undersigned Bidder certifies to the validity of statement and agrees to Furnish any other information upon request that may be required by the Town of Southold , New York . Bidder ' s Financial ..ond_tion Schedule 5 .0 . E BID (PROPOSAL) FORM Page 1 of 2 INF00riA_I0N --DULL - - (continued ) The undersigned her=_bu authorizes and request=_ any person , firm or =drpdraticn = Furnish any inFo7mation requested `.0 Town c. Southold , New York in veriFicatien cc the firms Financia'- condition . Dated at 5-22-97 This 22 day df May iS-L7 W7[7F NV_ TTr_ Name of Bidder 1 = _ ancie; aslarzi Ifii�ts, HaiIle,el4 rant . State of New York , County cF lCi[>ce being duly sworn deposes and says that he s TTTEctor, asimM Mye1 3rExt of WH of NY Inc. Name cf Crganizaticn and that the answers_ to the Fcregdins questions and all Statement • therein conta: ned are true =nd d:rrect . Sworn _- me _.._s 22 day C May i�5�7• THOMAS M.LAMBERT Notary Public,Siale of New York No.41-0960140 Qualified in N=au Coua My- Ccmm.ssicn expires y � Nr.tar Corruniuion Expires July 9, _ NOTE : (1 ) (Bidder may submit additional information i` desired as Schedule L attachments . ) (2) IE blank nct applicable , Fill in with N/A -D ( F;;ZFC5AL. CREDIT AND FINANCIAL INFOW4ATION WMX Technologies, Inc. . (formerly WASTE MANAGEMENT, INC.) 3003 Butterfield Road Oak Brook, Illinois 60521 Parent Company of WMX Technologies, Inc. provides comprehensive waste management services to industrial and commercial customers in North America through its Waste Management, Chemical Waste Management and Wheelabrator Technologies units. The Company's services include collecting, processing and disposing of solid waste and also transporting, treating, recovering and disposing of chemical and radioactive wastes. Environmental services are also offered abroad through subsidiaries. FINANCIAL SUMMARY 1994 1995 Total Revenue $9,554,705,000 $10,247,617,000 Net Income $784,381,000 $603,899,000 Total Assets $17,423,173,000 $18,695,308,000 Cash and Short-Term Investments $143,052,x30 $225,274,000 Stockholders Equity $4,540,981,0D0 $4,942,339,000 • COMMON STOCK Listed on the New York Stock Exchange since 1971. Also listed on Chicago, Frankfurt, London, and Swiss Exchanges. Shares Outstanding (12/31/95).......................................................................................487,047,305 Total Market Capitalization(12/31/95) ..................................................................... $14,489,657,324 AVAILABLE COMMITTED CREDIT LINES (As of December 31, 1996) First Union National Bank ...........................................................................................$25,000,000 MellonBank............................................................................................................$25,000,000 NationsBank............................................................................................................$25,000,000 WachoviaBank ........................................................................................................$25,000,000 OtherBanks .......................................................................................................... $800,000,000 CREDIT RATINGS Moody's Standard & Poor's Long-Term Debt Al A Commercial Paper Pi Al • DUN & BRADSTREET RATING Dun & Bradstreet Rating Duns Number 5A2 047577416 f:\wmx\cmdfin.doc 21207 635PM SECURITIES AND EXCHANGE COMINUSSION Washington, D.C. 20539 FORM 10-Q (MARK ONE) S7 QUARTERLY REPORT PURSUA.IIT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996 TRANSITION REPORT PURSUANTTO SECTION 13 OR 115(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _ TO Commission file number 1-7327 WMR TECHNOWGIES, INC- (E=a name of Registrant u specified in iu chaner) • Delaware 36.2660763 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3003 Butterfield Road, Oak Brook, Illinois 60521 (Addo of pnngpat exe try off,") (Zip Code) Registrant's telephone number, including area code: (630) 572-8800 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that F.4strant was required to file such reports), and (2) has been subject to such riling requirements for the past 90 days. Yes C No _ Shares or Registrant's Common Stock SI par value, issued and outstanding at July 31, 1996 — 491,074.1-' • PART I. FINANCIAL :NFOFLKATION WMX TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) ($000•s omitted) ASSETS December 31, 199$ June 30. i CURRENT ASSETS: Cash and cash equivalents S rm 189,031 $ 266,43: Short-teinvestments 36,243 25,87 Accounts receivable, lees reserve of $66,840 in 1995 and $60,563 in 1996 1,880 934 Employee receivables 1,937,39 Parts and supplies 8'787 10,21 Costs and estimated earnings in excess of billings 210,864 204,55 on uncompleted contracts 334, 786 368,' 0 Prepaid expenses 360.404 _ 376.4, Total Current Assets 5 3 .021,049 S 3.189. 12 PROPERTY AND EQUIPMENT, at cost: Land, primarily disposal sites Buildings $ 4,575,117 S 4,816,18 Vehicles and equipment 1, 572,821 1,542,io • Leasehold improvements 7,498,718 7,795,26 87.986 91. 10 $13,734,642 $14,244,71 Less - Accumulated depreciation and amortization __(3.968.943) (4,315.80 Total Property and Equipment, Net 5 9 .765.699 S 9.928.9^ OTHER ASSETS: Intangible assets relating to acquired businesses, net $ 4,205,031 Sundry, including other investments $ 4,566, 1: :let assets of discontinued operations 1 _30.,572,9c_2 7 1,619, E _ _ Total Other Assets 5 5 .908. 560 Total Assets $18 , 695, 308 519, 303,83 The accompanying notes are an integral part of these balance sheets. • 3 WMX :ECIMOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME . FOR THE 'WREE MONTHS AND SIX MONTHS ENDED JUNE 30 (Unaudited) (000's omitted except per share amounts) Three Months Six Months Ended June 30 Ended June 30 1995 1996 1995 1995 REVENUE 52.635 . 665 S2.618. 12555.080.850 $5,035 , 216 Operating expenses $1,817, 192 $1,815,274 $3,501, 142 $3,495, ' 97 Special charges - - 140,600 Goodwill amortization 29, 544 32,806 59,054 64,370 Selling and administrative expenses 300, 322 289,268 587,852 576, '.54 Interest expense 111,847 99,603 218,370 198, 918 Interest income (14, 463) (6,857) (23 , 349) (13,699 Minority interest 40, 117 3::, 179 69,431 60,254 Sundry income, net (13 . 343) (27.1409) (30. 264) f38. 768 Income from continuing operations • before income taxes S 364,449 S 377,261 $ 558,014 S 692,890 Provision for income taxes 151 .987 154 244.260 284 . 670 Income from continuing operations 5 212,462 S 22:1,042 S 313,754 S 408,220 Income from operations of discontinued businesses, less applicable income taxes and minority interest of $6,382 and $6, 474 for the three months and six months ended June 30, 1995, respectively 6 . 665 6 . 618 MET INCOME $ 219 . 127 22:3.042 S 320. 372 $ 409 . 220 AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 485 .082 491i4031 484 . 968 492 . 593 EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE Continuing operations S 0.44 S 0.45 $ 0.65 $ 0.83 Discontinued operations 0.01 - 0.01 NET INCOME S 0.45 S 0.45 $ 0.66 $ 0,83 DIVIDENDS DECLARED PER SHARE $ 0. 15 $ 0. 16 $ 0.30 S 0.31 • The accompanying notes are an 17.tegral part of these statements. 5 WMX TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR TBE SIX MONTHS ENDED JUNE JO, 1996 1 (Unaudited) ($000's omitted except per share amounts) 1988 Employee Additional Cumulative Stock Employee Common Paid-In Translation Retained Treasury Ownership Stock Stock capital Adjustment Earnj q Stock Plan Benefit Trust Balance, January 1, 1996 $498,817 $422,801 $(102,943) $4,486,877 $ - $13,062 $350,151 Net income for the period - - - 408,220 - - - Cash dividends ($.31 per share) - - - (153,222) Dividends paid to Employee Stock Benefit Trust - 3,460 - (3,460) - - - Stock repurchase (5,000,000 shares) - - - - 168,305 - - Stock Issued upon exercise of stock options 217 (7,332) - - (25,617) - (28,622) Treasury stock received In connection with exercise of stock options - - - - 791 - - Tax benefit of non-qualified stock options exercised 4,999 - - - - - contribution to 1988 Employee Stock Ownership Plan - - - - - (3,333) - Treasury stock received as settlement for claims - - - - 2,400 - - Common stock issued upon conversion of Liquid Yield Option Notes 107 1,893 - - - - - Common stock issued for acquisitions 7,957 226,222 - - - - - Temporary equity related to put options - (135,957) - - - - - Proceeds from sale of put options - 14,774 - - - - - Adjustment of Employee Stock Benefit Trust to market value - 34,999 - - - - 34,999 Cumulative translation adjust- ment of foreign currency statements - - 15, 587) - - - - Balance, June 30, 1996 $507,098 $565,859 $(108, 530) $4,738,415 $145,879 $ 9,729 $356, 528 The accompanying notes are an integral part of this statement. WMX TECHNOLOGIES, INC. AND SUBSIDIARIES • NOTES TO CONSOLIDATED FINANCIAL, STATEMENTS (Unaudited) (SD00's omitted in all tables) The financial statements included herein have been prepared by WMX Technologies, Inc. ("WMX" or the "Company") without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting pri:aciples have been condensed or omitted pursuant to such rules and regulations. The financial information included herein reflects, in the opinion of the Company, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, income and expenses and disclosures of contingencies. Future events could alter such estimates in the near term. Certain amounts in previously issued financial statements have been restated to conform to 1996 classifications. Income Taxes - • The following table seta forth the provision for income taxes for continuing operations for the three months and six months ended June 30, 1995 and 1996: Three Months Six Months 1995 1 96 1995 1996 Ended June 30 Ended June 30 _ Currently payable S 69,859 $102,950 $129 880 Deferred 82,399 51,473 $168,333 Amortization of deferred 114,922 116,725 investment credit (271) x1 ) (542) (388) 1151,987 154 94 . 2 .9 $244 , 260 $224, 670 Business Combinations - During 1995, the Company and its principal subsidiaries acquired 136 businesses for $224,304,000 in cash (net of cash acquired) and notes, $77,689,000 of debt assumed, and 2,236,354 shares of the Company's common stock. Three of the aforementioned 1995 acquisitions, which otherwise met pooling of interests criteria, were not significant in the aggregate and, consequently, prior period financial statements were not restated. The remaining acquisitions were accounted for as purchases. In January 1995, the Company acquired all of the approximately 21.41 of the outstanding shares of Chemical Waste Managment, :no. ("CWM") that it did not already own, for $436.8 million of convertible subordinated notes. In July 1995, the Company acquired all of the approximately 3 . 1 million shares of Rust International Inc. (-Rust-) held by the public, :cr 516.35 per share in cash. • 9 Currency Agreements From time to time, the Company and certain of lts • subsidiaries use foreign currency derivatives to mitigate the impact of ,translation on foreign earnings and income from foreign investees. T icall• h these have taken the form of purcased put options or offsetting put and call options with different strike prices. The Company receives or pays, based on the notional amount of the option, the difference between the average exchange rate of the hedged currency against the base currency and the average (strike price) contained in the option. Complex instruments involving multipliers or leverage are not used. Although the purpose for using such derivatives is to mitigate currency risk, they do not qualify for hedge accounting under generally accepted accounting principles and accordingly, must be adjusted to market value at the end of each accounting period. Commodity Agreements The company utilizes collars, calls and swaps to mitigate the risk of price fluctuations on the fuel used, by its vehicles. quantities hedged equate to committed fuel purchases or anticipated usage and accordingly, gains and losses are deferred and recognized as fuel is purchased. The Company is exposed to credit lose in the event of non-performance by counterparties on interest rate, currency and commodity derivatives, but in all cases ouch counterpart-aa are highly rated financial institutions and the Company does not anticipate non-performance. Maximum credit exposure is represented by the fair value of contracts with a positive fair value at June 30, 1996, which is not material. Environmental Liabilities - The majority of the businesses in which the Company is engaged are intrinsically connected with the protection of the environment. As such, a significant portion of the Company's operating coats and capital expenditures could be characterized as costa of environmental protection. While the Company is faced, in the normal course of business, with the need to expend funds for environmental protection and remediation, it does not expect such expenditures to have a material adverse effect on its financial condition or results of operations because its business is based upon compliance with environmental laws and regulations and its services are priced accordingly. Such costs may increase in the future as a result of legislation or regulation; however, the Company believes that in general it benefits from increased government regulation, which increases the demand for its services, and that it has the resources and experience to manage environmental risk. As part of its ongoing operations, t..*.e Company provides for estimated closure and Post-closure monitoring costa over the operating life of disposal sites as airspace is consumed. The Company has also established procedures to evaluate its potential remedial liabilities at closed sites which it owns or operated, or to which it transported waste, including 107 Elites listed on the Superfurd National Priority List ("NPL') . The majority of the situations involving NPL sites relate to allegations that subsidiaries of the Company (or their predecessors) transported waste to the facilities in question, often prior to the acquisition of such subsidiaries by the Company. Where the Company concludes that it is probable that a liability has been incurred, provision is made in the financial statements. Estimates of the extent of the Company' s degree of responsibility for remediation of a particular site and the method and ultimate coat of remediation require a number of assumptions and are inherently difficult, and the ultimate outcome may differ from current estimates. However, the Company believes that its extensive experience in the environmental services business, as well as its involvement with a large number of sites, provides a reasonable basis for estimating its aggregate liability. As additional information becomes available, estimates are adjusted as necessary, while the Company does not anticipate that any such adjustment would be eaterial to ita financial statements, it is reasonably ulory or ofaenvironm ntalhstudiesaor otiheratfa torsecould ne essitatemtheare ordinglof • additional liabilities which could be material. 11 WTI's Gloucester County, New Jersey, trash-to-energy facility relies on a disposalfranchise for substantially all of its supply of municipal.solid waste. The Federal District Court stayed its injunction for as long as its r-19 is on appeal, plus an additional period of two years, to enable the state to devise an alternative nondiscriminatory approach. The Company believes that the State is considering an appeal of the District Court decision. • To date, court decisions with regard to flow control have not had a material adverse uncertainty effect it le not Company' s rations. However, given the surrounding possibleto predict what impact, if any, this matter may have in the future on the Company' s disposal facilities, particularly WTI's trash-to-energy facilities. In the ordinary course of conducting its business, the Company becomes involved in lawsuits, administrative proceedings and governmental investigations, including antitrust and environmental matters. Some of these proceedings may result in fines, penalties or judgments being assessed against the Company which, from time to time, may have an impact on earnings for a particular quarter or year. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on its results of operations or financial condition. Debt - In May 1996, the Company issued $200,000,000 of 6.7% Notes due May a price of 99.828%. In June 1996, the Companyissued $200,000,000 �of001, at Notes due June 15, 2001, at a price of 99.875%. Neither of these redeemable prior to maturity. issues is In July 1996, the Company issued $450,000,000 of 7.1% Notes due Aug-zst 2026, at a price of 99.945%. These rotes are not callable and include a put option on August 1, 2003. Legal Matters - See Part II of this Form 10-Q for a discussion of legal matters. • 13 Waste Clean Clean Consoli- Serviees Enerw water Coneulti Eliminations dated • Six Months Ended June 30 1996 - Revenue $4,242,252 $418,845 $313,220 5233,337 5(172,338) $5,035,316 Operating expenses 3,024,995 269,663 247,878 189,369 (172,338) 3,559,567 Selling and admin. expenses 478.996 19.825 45. 193 32. 140 - 576. 154 Margin 5 738.261 $129,357 $ 20. 149 $ 11,L28 S - 58595 1995_ Revenue $4,249,829 $472,294 $301,248 5225,548 $(168,069) $5,080,850 operating expenses 2,998,149 313,592 239,140 176,184 (166,869) 3,560, 196 Selling and admin. expenses 485.811 21,970 44.393 35. 678 - 587.852 Margin S 765,869 S136, 732 S 17, 715 5 13.Lab 5 (1.200) 5 932 .802 waste services - operating results for the three months and si:x months ended June 30 were as follows: Three Months Six Months 1996 1995 1996 1995 Operating Revenue $2,204,738 $2,217,204 $4,242,252 $4,249,829 expenses 1,571,011 1,564,937 3,024,995 2,998, 149 Selling and • admin. expenses 241.439 248.476 478.996 485.811 Margin S 392.288 S 403.791 S 738.261 S 765.869 Revenue by source for the three months and six months ended June 30 is shown in the following table: Three Months Six Months Percentage Percentage North America 1996 1995 Incr! (Dect_I 1996 1995 Inor! fDecr Residential S 319,418 S 304,307 S.C% S 531,835 S 597,394 5.81 Ccmmercial 419, 188 408,089 2. 7 824,232 802,400 2.7 Rolloff and industrial 360,002 343,299 4.9 675,849 648,382 4.2 Disposal, transfer and other` 528,008 549, 194 (3. 9) 984,665 988,957 (0.4) Industrial services 113,686 150, 148(24.3) 221,417 321,309 (31.1) International 464.436 462. 167 0.5904.254 _891,387 1.4 Total $2,204.738 $2,217. 204 (0. 5)9 51,,1 , 242 ,252 54,249,29 (0.2)q -Includes hazardous waste revenue of $I27, 754 do d $252,938, respectively, for the three month and six month periods of :196 and $161,455 and $291 ,936 for the comparable 1395 periods. 15 Revenue declined to $215.6 million in the second quarter of 1996, from $221.1 million in the second quarter of 1995. Revenue growth from the Lisbon, • Connecticut, waste-to-energy plant, which-began commercial operations in January f996, an industrial cogeneration facility acquired in Martell, California, and increased electric purchases by the utility customer of the company' s California independent power facilities was more than offset by the absence of construction revenue from the Lisbon facility, which contributed 58.6 million in the second quarter of 1995, and a continuing revenue decline in the clean air business, which is included in this segment. Air business revenue declined 19% compared with the second quarter of 1995, reflecting continuing industry-wide weakness in the face of regulatory uncertainties. For the six months, segment revenue declined $53.5 million to $418.8 million, due to the foregoing factors as well as lower spot pricing for trash disposal in the first quarter of 1996 in areas of Florida. Operating expenses were 63.6% of revenue for the three months ended June 30, 1996, compared with 65.0% of revenue during the June 30, 1995 quarter. This improvement resulted primarily from the absence of construction revenue on the Lisbon facility, which had no associated margin. Selling and administrative expenses declined to 4.2% of 1996 second quarter revenue from 5.0% of revenue in the comparable quarter of 1995. Improved air business results and lower energy development expense were responsible for the improvement. For the six months ended June 30, operating expenses were 64.4% of revenue in 1996 and 66.4% of revenue in 1995, while selling and administrative expenses were 4.7% of revenue in 1996 compared with 4.6% in 1995. The lower operating expense percentage was again largely the result of the absence of no-margin Lisbon construction revenue. Clean water - Operating results for the three months and six months ended June 30 were as followst Three Months Six Months • 1996 1995 1996 1995 Revenue $162,960 $164,213 $313,220 $301,248 Operating expenses 128,980 129,167 247,878 239,140 Selling and admin. expenses 22,605 22.811 45. 193 44, 393 Margin S 11,375 S 12,235 20, 149 S 17,715 Second quarter 1996 revenue of $163.0 million was down slightly from the $164.2 million in the second quarter of 1995, as lower revenue from North American and European water process businesses more than offset: growth from acquisitions made during the past twelve months. water process business revenues were negatively impacted by a large project being completed in 1995 and the timing of contract execution on orders booked late in 1995 and early in 1996. In addition, European revenue was negatively impacted by a weak German economy and a stronger dollar. First half segment revenue grew $12.0 million to $313.2 million in 1996 from $301.2 million in 1995. Acquisitions accounted for approximately $9.0 million of the growth with the balance coming from strong biosolids and contract operations and the Asian market, partially offset by the lower water process revenue in Europe and North America. Operating expenses were virtually unchanged in the second quarter of 1996 compared with the same period of 1995, but increased as a percentage of revenue to 79.1% from 78.7% in the previous year. Selling and administrative expenses were constant between years in both dollars and as a percentage of revenue. For the first six months of 1996, both operating expenses and selling and administrative expenses increased slightly in dollars but declined slightly as a percentage of revenue. The increase in selling and administrative costs was due largely to the growth of Asian operations. 17 Interest - • fhe following table sets forth the components of consolidated interest, net, for the three months and six months ended June 30, 1996 and 1995: Three Months Six Months 1996 1995 1996 1995 Interest expense $117,100 $131, 146 $233,589 $257,405 Interest income (6,857) (14,463) (13,699) (23,349) Capitalized interest (17,497) (19.299) (34.671) (39,035) Interest expense, net 5 92,746 5 97,384 5185,219 $195,021 The lower net interest expense in 1996 is a function of lower rates, including the benefit of refinancing certain debt, offsetting a reduction in capitalized interest and the impact of debt incurred to buy back the public ownership of CWM and Rust during 1995. Capitalized interest has declined as a result of continuing management effort to reduce capital expenditures. In the second quarter of 1996, WMX repurchased 5.0 million shares of its common stock and WTI repurchased 15.4 million of its shares (see ' Financial Condition - Capital Structure' below) . The debt incurred to fund these purchases will increase interest expense during the last half of 1996. Minority Interest - Minority interest declined in the second quarter and first six months of 1996 compared with the same periods in 1995 as a result of the purchase of the public • shares of CWM and Rust in 1995, and stock repurchases by WTI, which have increased the WMX ownership of WTI to approximately 651 at June 30, 1996. Accounting Principles - Effective January 1, 1996, the Company adopted Statement of Financial Accounting Standards ('FAS' ) No. 121 - Accounting for the Impairment of Long- Lived Assets and for Long-Lived Assets to Be Disposed Of. The adoption of this standard did not have a material impact on the financial statements. The Financial Accounting Standards Board has also issued FAS No. 123 - Accounting for Stock-Based Compensation - which the Company must: adopt in 1996. This statement provides an optional new method of accounting for employee stock cptions and expands required disclosure about stock options. If the new methcd of accounting Is not adopted, the Company will be required to disclose pro forma net income and earnings per share as if it were. The Company is studying FAS No. 123 and is gathering data necessary to calculate compensation in accordance with its provisions, but has not decided whether to adopt the new method or quantified its impact on the financial statements. Derivatives From time to time, the Company and certain of its subsidiaries use derivatives to manage currency, interest rate, and commodity (fuel) risk. Derivatives used are simple agreements which provide for payments based on the notional amount, with no multipliers or leverage. The Company' s use of derivatives has not been and is not expected to be material with respect to financial condition or results of operations. • 19 Accuisitione and Capital Expenditures - Capital expenditures, excluding property and equipment of purchased businesses, were $577.8 million for the six months ended June 30, 1996, and $585:0 million for the comparable period in 1995. In addition, the Company and its principal subsidiaries acquired 67 businesses for $92.8 million in cash and debt (including • ,debt assumed) and 8.0 million shares of -4MX common stock during the first six months of 1996. For the first half of 1995, 55) businesses were acquired for $119.6 million in cash and debt (including debt assumed) and 0.4 million shares of WMX common stock. The pro forma effect of accuisitions made during 1995 and 1996 is not material. Capital Structure - The Boards of Directors of WHX and WTI have authorized their respective companies to repurchase shares of their own common stock (up to 25 million shares in the case of WHX and 20 million shares in the ease of WTI) in the open market or in privately negotiated transactions. These programs extend into 1997. WTI repurchased 19.2 million shares under its program, including 15.4 million in the second quarter and 18.4 million during the first. six months of 1996- WMX had repurchased 5.0 million shares through June 30, 1996, all during the second quarter of the current year. In conjunction with its authorized repurchase program, WMX periodically sells put options on its own common stock. The put options give the holders the right at maturity to require the Company to repurchase :its shares at specified prices. Proceeds from the sale of the options are credited to additional paid-in capital. In the event the options are exercised, the Company may elect to pay the holder in cash the difference between the strike price and the market price of the Company' a shares in lieu of repurchasing the stock. At June 30, 1996, put options were outstanding on 12.5 million shares, 4.7 million of which subsequently expired unexercised as the price of the Company' s stock was in excess of the strike price at maturity. The remaining options expire in October and November of 1996 with strike prices of $33.45 to $35.17 per share. Excluding debt of acquired companies and the impact of currency translation, set debt Increased $172.2 million in the second quarter and $436.2 million during . the first six months of 1996. The increase was primarily a result of the share repurchases by the Company and WTI. Contingencies - WH International has received an assessment of approximately 417 million Krona (approximately $63 million) from the Swedish Tax Authority, relating to a transaction completed in 1990. WH International believes that all appropriate tax returns and disclosures were filed at the time of the transaction and intends to vigorously contest the assessment. There have been no significant developments in regard to this matter during the first six months of 1996. A subsidiary of WHI has been involved in litigation challenging a municipal zoning ordinance which restricted the height of its New Milford, Connecticut, landfill to a level below that allowed by the permit previously issued by the Connecticut Department of Environmental Protection ('DEP' ) . The WHI Subsidiary is presently under an order of the Superior Court to apply to the DEP for permission to remove all waste above the height allowed by the zoning ordinance. The Company believes that the removal of such waste is an inappropriate remedy and has appealed the Superior Court order to the Connecticut Supreme Court. The Company is unable to predict the outcome of this appeal or the nature and extent of any removal action that might ultiaately be required. However, if the Superior Court order is not modified, the subsidiary could incur substantial costs, which approved could vary significantly depending upon the nature of any plan eventually by the applicable regulatory authorities, the actual volume of waste to be moved, and other factors, and which could have a material adverse effect on the Company' s financial condition and results of operations in the near term. • 21 PART II - OTHER INF0RIQATION • ,ITEM 1. Lecal Proceedince. The majority of the businesses in which the Company is engaged are intrinsically connected with the protection of the environment and the potential for the unintended or unpermitted discharge of materials into the environment. In the ordinary course of conducting its business activities, the company becomes Involved in judicial and administrative proceedings involving governmental authorities at the federal, state and local level, including, in certain instances, proceedings instituted by citizens or local governmental authorities seeking to overturn governmental action where governmental officials or agencies are named as defendants together with the Company or one or more of its subsidiaries, or both. In the majority of the situations where proceedings are commenced by governmental authorities, the matters involved relate to alleged technical violations of licenses or permits ;pursuant to which the Company operates or is seeking to operate or laws or regulations to which its operations are subject, or are the result of different interpretations of the applicable requirements. From time to time the Company pays fines or penalties in environmental proceedings relating primarily to waste treatment, storage or disposal or trash-to-energy facilities. As of June 30, 1996, neither the Company nor any of its subsidiaries was involved in any such proceeding where it is believed that sanctions involved may exceed $100,000. Subject to the discussion below concerning the Company's New Milford, Connecticut landfill, the Company believes that these matters will not have a material adverse effect on its results of operation or financial condition. However, the outcome of any particular proceeding cannot be predicted with certainty, and the possibility remains that technological, regulatory or enforcement developments, the results of environmental studies or other factors could materially alter this expectation at any time. In May 1996, a Company subsidiary paid a civil penalty of $203,000 to settle an administrative proceeding brought by the United States Environmental . Protection Agency involving alleged failure by the subsidiary in 1985 to test Incoming loads of polychlorinated biphenyl wastes at the subsidiary's Model City, New York facility. In settling this matter, the subsidiary did not admit any violation of law. A subsidiary of the Company has been involved in litigation challenging a municipal zoning ordinance which restricted the height of its New Milford, Connecticut landfill to a level below that allowed by the permit previously issued by the Connecticut Department of. Environmental Protection ("DEP") . Although a lower court had declared the zoning ordinance's height limitation unconstitutional, the Connecticut Supreme Court reversed that ruling and remanded the case for further proceedings in the Superior Court in the judicial district of Litchfield. On November 8, 1995, the Superior Court ordered the Company's subsidiary to apply to the DEP for permission to remove all waste above the height allowed by the zoning ordinance. The Company believes that removal of such waste is an inappropriate remedy and its subsidiary has appealed the Superior Court order to the Connecticut Supreme Court. The Company is unable to predict the outcome of the appeal or any removal action that may ultimately be required following further appeals or as a result of the permitting process. However, if the lower court order as to removal of the waste is not modified, the subsidiary could incur substantial costs, which could vary significantly depending upon the nature of any plan which is eventually approved by applicable regulatory authorities for removing the waste, the actual volume of waste to be moved and other currently unforeseeable factors and which could have a material adverse effect on the Company's financial condition and results of operations in one or more future periods. ITEM 4. Submission of Matters to Vote of Security Holders. At the any's annual meeting of to elect the nominees listed in the followingsroposal tableasndire to�rsMay 109oflthe Company • was submitted to a vote of the Company' s stockholders. The following table also 23 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. WMX TECHNOLOGIES, INC. s J 9LS E. KOENIG James E. Koenigy Senior Vice President and Chief Financial Officer August 12, 1996 • • 25 EXHIBIT 12 WMX TECHNOLOGIES, I:NC. Ratio of Earnings to Fixed Charges (Unaudited) (millions of dollars, except ratio) Six Months Ended 30 1995(11 June 1996 Income From Continuing Operations Before Income Taxes, Undistributed Earnings from Affiliated Companies and Minority Interest . . . . . . ., 5595.0 $735.6 Interest Expense 257.4 233.6 Capitalized Interest . . . . . . ., (39.0) (34.7) One-Third of Rents Payable in the Next Year .. 25.6 26.9 Income From Continuing Operations Before Income Taxes, Undistributed Earnings from Affiliated Companies, Minority Interest, Interest and One-Third cf Rents 839.0 S961.4 • Interest Expense ,. $257.4 $233.6 One-Third of Rents Payable in the Next Year .. 25.6 26.9 Interest Expense plus One-Third of Rents . . . 283.0 �� $260.5 Ratio of Earnings to Fixed Chargee . . . . . . . 2.96 to 1 3.69 to 1 (1) The results for 1995 include a special charge ( $1:0.6 million before income taxes) , recorded by the Company' s Chemical waste Management, Inc. subeidlary, primarily related to a writeoff of certain investments Jr, hazardous waste treatment and processing technologies and facilities. Excluding the effect of this charge, the ratio of earnings to fixed charges would be 3.46 to 1. • . ..: , "- 7,77, .ref' ..'.. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 • FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURI-IUS EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 1995 ❑ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1.7327 WMX TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) DELAWARE 36-2660763 (State or other jurisdiction of (IRS Employer incorporation or organisation) Identification No.) 3003 BUTTERFIELD ROAD, OAK BROOK, ILLINOIS 60521 (Address of principal executive office) (Zip code) Registrant's telephone number, including area code: (708) 572-8800 Securities registered pursuant to Section 12(b)of the Act: Mile of Each Claw; Name of Each Exehao;e on whici Registered • Common Stock,$1.00 par value New York Stock Exchange Zurich Stock Exchange Chicago Stock Exchange Geneva Stock Exchange London Stock Exchange Basle Stock Exchange Frankfurt Stock Exchange Liquid Yield Option Notes due 2001 New York Stock Exchange 8.44% Debentures due 2018 New York Stock Exchange Liquid Yield Option Notes due 2012 New York Stock Exchange Chemical Waste Management Inc Liquid Yield Option Notes due 2010 New York Stock Exchange Convertible Subordinated Notes due 2005 New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant ( I) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 193mi during the preceding 1'_ months (or for such shorter period that the registrant was required to file such reports). and (2) has been subject to such filing requirements for the past 90 days. Yes X No _ Indicate by check mark if disclosure of delinquent filen pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitne proxy or information statements incorporated by reference in Pan III of this Form 10-K or any amendment to this Form 10-K. ❑x The aggregate market Value of the Noting stock of the registrant held by stockholders who were not affiliates las defined by regulations of the Securities and Exchange Commission) of the registrant was approximately$14,457,190.000 at February 1, 1996(based on the closing;sale price on the New York Stock Exchange Composite Tape on January 31. 1996, as reported by Th,e Wall Street Journal (Midwest • Edition)). At March 20, 19%.the registrant had issued and outstanding an aggregate of 494.495.743 shares Of its common stock of record. Documents Incorporated by Reference Those sections or portions of the registrant's 1995 Annual Report to Stockholders and of the registrant's proxy statement for the Annual Meeting of Stockholders to be held on May 10. 1996 described in Parts II. 111 and IV hereof are incorporated by reference in this report VVMX TECILNOLOGIES. INC. EXHIBIT INDEX • Number and Description of Exhibit- 1. lnappiicable '_. [nappiicable 3.1(a) Restated Certificate of Incorporation of registrant, as amended as of Slav 24. 1985 (incorporated by reference to Exhibit 4.1 to registrant's report on Form 10-Q for the quarter ended June 30, 1985) 3.1(b) Certificate of .Amendment of Restated Certificate of Incorporation of registrant, recorded May 23, 1986 tincorporated by reference to Exhibit 4(c) to regfsvant's registration statement on Form S-8. Registration No. 33-6265) 3.1(c) Cemficate of Designation of Preferred Stock of registrant filed January 30, 1987 (incorporated b_c reference to Exhibit 3.1(c) to registrant's 1986 annual report on Form 10-K) 3.1(d) Certificate of Amendment of Restated Certificate of Incorporation of registrant, recorded Slav 15. 1987 (incorporated by reference to Exhibit 4.5(d) to registrant's registration statement on Form S-l. Registration No. 33-15518) 3.1(e) Cemncate of Amendment of Restated Certificate of Incorporation of registrant. filed May 19. 1989 (incorporated by reference to Exhibit 3(e) to registrant's res_isvation statement on Form S-3. Registration No. 33-30190) 3.1(f) Cemncate of Amendment of Restated Certificate of Incorporation of registrant, filed May 18, 1990 (incorporated by reference to Exhibit 4(h) to registrant's registration statement on Form S-8. Registration No. 33-35936) 3.1;g) Cemncaw of Amendment of Restated Certificate of Incorporation of registrant, filed May 14, 1993 • (incorporated by reference to Exhibit 4(a) to registrant's report on Form 8-K dated May 14, 1993) 3.1(h) Conformed copy of Restated Certificate of Incorporation of registrant, as amended (incorporated by reference to Exhibit 4(b) to registrant's report on Form 8-K dated May 14, 1993) 3.2 By-laws of registrant, as amended and restated as of January 28. 1995 (incorporated by reference to Exhibit 3.2 to registrant's 1994 annual report on Form 10-K) 4.1iai Rights Agreement dated as of February 6. 1987, between :hg registrant and Harris Trust and Savings Bank. which includes as Exhibit A the form of Certincate of Designation of Preferred Stock, as Exhibit B. the form of Rights Certificate and. as Exhibit C. the Summary of Rights (incorporated be reference to Exhibit 4 to registrant's report on Form S-K fated January =6. 19871) 4.1(b) Cer.: icate of Adjustment relating to April 1987 stock split pursuant to Section l_ of the Rights Agreement (incorporated by reference to Exhibit 4.3(-b) to reeis mt's registration statement on Form S-1. Registration No. 33-13839( 4.1'.( Cerancate of .Adjustment relating to December :989 stock split pursuant to Section l'_ of the Rights Agreement (incorporated by reference to Exhibit 4.3(c; �o registrant's 1989 annual report on Form IO-K) - 4,2ta( Trust Indenture dated as of August 1. 1989 (incorporated by reference to Exhibit 4.3(a) to registrant s 1990 annual report on Form 10-K( 4.2(b( Firs; Supplemental Indenture dated as of December 1. .990 incorporated by reference to Exhibit 4.3(-p1 to registrant's 1990 annual report on Form 10-K( `In the case of incorporation by reference to documents filed urcer the Securities Exchange Act of 1931, the . registrant s file number under that Act is 1-73'_7. Chemical Waste Management. Inc.'s file number ❑rider that Act %las I-92:3 and Wheelabrator Technologies lat.'s file camterunder that Act is 0-142416. EX-i .Number and Descripoon of Exhibit* 10.15 Restricted Unit Plan for Non-Employee Directors of Wheeiabrator Technologies Inc. as amended through June 10. 1991 (incorporated by reference to Exhibit 19.03 to the report on Form i0-Q of Wheeiabrator Technologies Inc. for the quarer ended June 30. 19911 • 10.16 1988 Stock Plan for Executive Employees of Wheelabrator Technologies Inc. and its subsidiaries (the "WTI 1988 Stock Plan") (incorporated by reference to Exhibit '1_8.1 to amendment No. 1 to the registration statement of WTieeiabrator Technoioetes Inc. on Form S-8, Registration No. 33-31523) 10.17 Amendments dated as of September 7. 1990 to the WTI 1988 Stock Plan (incorporated by reference to Exhibit 19.02 to the 1990 annual report on Form 10-K of Whee!abrator Technologies Inc.) 10.18 Amendment dated as of November 1, 1990 to the WTI 1988 Stock Plan tincorporated by reference to Exhibit 19.04 to the 1990 annual report on Form 10-K of Wheelabrator Technologies Inc.) 10.19 1986 Stock Plan for Executive Employees of Wheelabrator Technologies Inc. and its subsidiaries (the "WTI 1986 Stock Plan'') (incorporated by reference to Exhibit 28.2 to Amendment No. I to the registration statement of W-heelabrator Technoioeies Inc. on Four( S-8. Registration No. 33-31523) 10.20 ,amendment dated as of November 1, 1990 to the WTI 1986 Stock Plan (incorporated by reference to Exhibit 19.03 to the 1990 annual report on Form 10-K of Wheelabrator Technologies Inc.) 10.21 Employment .agreement dated as of April 1. 1995 between the registrant and D. P. Payne 10.22 W'MX Technologies. Inc. 1992 Stock Option Plan (incorporated by reference to Exhibit 10.31 to registrant's registration statement on Form S-1. Registration No. 33-1.3849) 10.23 WAIX Technologies. Inc. 1992 Stock Option Plan for Non-Empioyee Directors (incorporated by reference to Exhibit 10.32 to registrant's registration statement on 44849) Form S-l. Registration No. 33- 10.24 ,I'heclabraior Tecianoiogies Inc. i992 Stock Option Plan (incorporated by reference to Exhibit 10.45 to the 1991 annual report on Form 10-K of Wheelabrator Technologies Inc.) • 10.25 Deferred Director's Fee Plan of Wheelabrator Technologies Inc. adopted June 10, 1991 (incorporated by reference to Exvbi[ 19.02 to the quarterh report on Form 10-Q of Wheelabrator Technologles Inc. for the quarter ended June 30. 1991) - l0'6 Waste Management International plc Share Option Plan (incorporated by reference to Exhibit 10.1 to the registration statement on Form F-1 of Waste Management International oic, Registration No. 33- 4651 1) 10.27 .amendment dated as of December 6. 1991 :o the WTI 1986 Stock Plan )incorporatea 5y reference to Exhibit 19.01 to the 1991 annual report on Form 10-K of Wheelabrator Technolog!es inc.) 10.28 :amendment dated as of December o. 1991 :o the WTI 1988 Stock Plan )incorporate,- by reference to Exhibit 19.02 to the 1991 annual report on Form 10-K of Wheelabrator Technologies Inc.) 10.29 Amendment dated as of December 6. 1991 :o the Restricted Unit Plan for Non-Erncio%ee Directors of Wheelabrator -echnoiegies Inc. inconorated by reference to i=shibit 19.05 to trig 1991 annual report on Forth 10-K of %l heelabrator Technologies lnc.l 10.30 First ,amended and Restated Intemationai Business Opportunities a_reemen, I nv ane none registrant. Chemical Waste Mana;ement. Inc.. Wheelabrator Technoice!es Inc_ Wase Manazement International. Inc.. '.Waste Management international plc and Rum Internaconai L.c.. ,late as of Januar I. 1993 .�c."Pora:ed by reference to Exhibit 2S to the reg:>-radon s,atemen: 3n Fnrrr. S_3 of Wheelabrator Tecr:nciogies Inc.. Regisuation No. 33-59606 In the case of incorpora::,n by reference to documents filed under the Securties Exchange pct of 1934, the • registrant s file number -der �.at act is I-'32 Chemical Waste Mana_ement. Lic ; rIe number under that act a as 1-9'53 anc '•aheei_'arator Technolo3)es Inc.'s file number under that act is )-:4246. EX-3 w PART I ITEM 1. BUSLNESS. r-FNERAL 1X Technologies, Inc. is a leading international provider of environmental and related services. Unless tnontext indicates to the contrary, as used in this report the terms "Company" and "WMX Technologies" refer to WMX Technologies. Inc. and its subsidiaries. The Company provides integrated solid waste management services in North America through Waste Management, Inc.. a wholly owned subsidiary of the Company (referred to herein, together with its subsidiaries and certain affiliated companies providing waste management and related services, as "Waste Management"). The Company's solid waste management services are provided to commercial, industrial, municipal and residential customers, as well as to other waste management.companies and consist of solid waste collection, transfer,resource recovery and disposal services. As part of these services, the Company is engaged in providing, through its Recycle America3, Recycle Canada3 and other programs, paper, glass, plastic and metal recycling services to commercial and industrial operations and curbside collection of such materials from residences; in removing methane gas from sanitary landfill facilities for use in electricity generation; and in providing medical and infectious waste management services to hospitals and other health care and related facilities. In addition, through Waste Management the Company provides street sweeping and parking lot cleaning services and Port-O- L.era portable sanitation services to municipalities and commercial and special event customers. Since mid-1995, Waste Management also has managed the scaffolding and other on-site industrial services businesses owned by the Company's Rust International Inc. subsidiary. The Company also provides hazardous waste management services in North America. The Company's chemical waste treatment. storage, disposal and related services are provided through Waste Management and Chemical Waste Management, Inc., a wholly owned subsidiary of the Company (referred to herein, together with its subsidiaries, as "CWM"), and are provided to commercial and industrial customers,as well as to other waste jr.e�aaP6 me itcompaniesand to governmental entities. Through Advanced Enviroiamental Technical Services, 0 '-owned subsidiary of the Company (referred to herein, together with its subsidiaries as "RETS"), any provides on-site integrated hazardous waste management services, including hazardous waste identification, packaging, removal and recycling services to industrial, institutional and governmental customers. Through its Chem-Nuclear Systems, Inc. wholly owned subsidiary (referred to herein, together with its subsidiaries, as "Chem-Nuclear"),. the Company also furnishes radioactive waste management services, primarily to electric utilities and governmental entities. The Company provides comprehensive waste management and related services internationally, primarily through Waste Management International plc. a subsidiary owned approximately 5617c by the Company and 1257C each by the Company's Rust International Inc. and Wheelabrator Technologies Inc. subsidiaries (referred to herein, together with its subsidiaries. as "Waste Management International"), Waste Management International provides a wide range of solid and hazardous waste management and related environmental services for has interests in projects or companies providing such services) in ten countries in Europe and in Argentina. Australia. Brazil. Brunei. Hong Kong, Indonesia. Israel, Malaysia. New Zealand, Taiwan andThailand. Waste !Management International also has an approximately 20% interest in Wessex Water Plc, an English publicly traded company providing water treatment, water distribution, wastewater treatment and sewerage services ("Wessex"). Wheelabrator Technologies Inc., an approximately 58%-owned subsidiary of the Company (referred to herein, together with its subsidiaries, as "WTI"l, provides a wide array of environmental products and services that are primarily utilized in meeting the needs of municipalities and industry for clean energy and clean water. WTI's clean energy group is a leading developer of facilities and systems for, and provider of services to, the trash-to-energy, energy, and independent power markets. Through the clean eiaergy group. WTI develops, arranges financing for, operates and owns facilities that dispose of trash and other waste materials in an environmentally acceptable manner by recycling them into electrical or steam energy. Also within this group are mess units .vhich design, fabricate and install technologically advanced air pollution control and systems and 2 Printed on recvc:ed paper For information relating to expenses and identifiable assets attributable to the Company's major business -groups. see Note 13 to the Companv's Consolidated Financial Statements filed as an exhibit to this report and incorporated by reference herein. For interim periods. the revenues and net income of certain of the Company's businesses may fluctuate for a number of reasons. including there being for some businesses less activity during the winter months. Regulatory or technoloeical developments relating to the environment :nay require companies engaged in environmental services businesses, including the Company, to modify, supplement or replace equipment and facilities at costs which may be substantial. Because certain of the businesses in which the Company is engaged are intrinsically connected with the protection of the environment and the potential discharge of materials into the environment a material portion of the Company's capital expenditures is, directly or indirectly, related to such items. See "Management's Discussion and Analysis of Results of Operations and Financial Condition" set forth on pages 16 to 24 of the Company's 1995 Annual Report to Stockholders (which discussion is filed as an exhibit to this report and incorporated by reference herein) for a review of property and equipment expenditures by the Company for the last three years. The Company does not expect such expenditures, which are incurred in the ordinary course of business, to have a materially adverse impact on its and its subsidiaries' combined earnings or its or its subsidiaries' competitive position in the foreseeable future because the Company's businesses are based upon compliance with environmental laws and regulations and its services are priced accordingly. Although the Company strives to conduct its operations in compliance with applicable laws and regulations. the Company believes that in the existing climate of heightened legal• political and citizen awareness and concerns, companies in the environmental services industry, including the Company, will be faced, in the normal course of operating their businesses, with fines and penalties and the need to expend funds for remedial work and related activities with respect to waste treatment, disposal and trash-to-energy facilities. Where the Company concludes that it is probable that a Liability has been incurred, a provision is made in the Company's financial statements for the Company's best estimate of the liability brsed on management's judgment and experience, • information available from regulatory agencies and the number, financial resources and relative degree of responsibility of other potentially responsible parties who are jointly and severally liable for remediation of a specific site, as well as the typical allocation of costs among such parties. IT a range of possible outcomes is estimated and no amount within the range appears to be a better estimate than any other, then the Company provides for the minimum amount within the range, in accordance with generally accepted accounting principles. Such estimates are subsequently revised, as necessary. as additional information becomes available. While the Company does not anticipate that the amount of any such re%ision will have a material adverse effect on the Company's operations or financial condition, the measurement of environmental liabilities is inherently difficult and the possibility remains that technological. regulatory or enforcement developments. the results of environmental studies, or other factors could materially alter this expectauon at any time. Such matters could have a material adverse impact on earnings for one or more fiscal quarters or years. While in general the Company's environmental services businesses have benefited substanually from increased governmental regulation, the environmental services industry itself is subject to extensive and evolving regulation by federal, state• local and foreign authorities. Due to the complexity of regulation of the industry and to public pressure, implementation of existine and future laws, regulations or initiatives by different levels of government may be inconsistent and difficult to foresee. In addition, the demand for certain of the Company's services may be adversely affected by the amendment or repeal. or reduction in enforcement of, federal. state and foreign laws and regulations on which the Company's businesses engaged in providing such services are dependent. Demand for certain of the Companv's services may also be adversely affected by delays or reductions in fundine, or failure of legislative bodies to fund• agencies or programs under such laws and regulations. The Company makes a continuing effort to anticipate reeulatorv, political and legal developments that might affect its operations but is not always able to do so. The Company cannot predict the extent to which any legislation or regulation that may be enacted, amended. repealed or enforced, or anv failure or delay in enactment or • enforcement of legislation or regulations or funding of agencies or programs. in the future may affect its operations. - 4 in size, are usually provided to the customer as part of Waste Management's services. Stationary compactors. which compact the volume of the stored waste prior to collection, are frequently installed on the premises of urge volume customers and are usually provided to these customers in conjunction with Waste Management's collection services. Containerization enables Waste Management to service most of its commercial and industrial customers with collection vehicles operated by a single employee. Compaction serves to decrease the frequency of collection. Commercial and industrial collection services (which include containerized service to apartment buildings) are generally performed under one- to three-year service agreements. Fees are determined by such considerations as market factors, collection frequency, type of equipment furnished, length of service agreement. type and volume or weight of the waste collected. distance to the disposal facility and cost of disposal. Residential Most of Waste Management's residential solid waste collection services are performed under contracts with, or franchises granted by, municipalities giving Waste Management exclusive tights to service all or a portion of the homes in their respective jurisdictions. Such contracts or franchises usually range in duration from one to five years. The fees received by Waste Management are based primarily on market factors, frequency and type of service, the distance to processing or disposal facilities and cost of processing or disposal. Residential collection fees are either paid by the municipalities out of tax revenues or service charges or are paid directly by the residents receiving the service. TRANSFER Waste Management operates 151 solid waste transfer stations. A transfer station is a facility where solid waste is received from collection vehicles and then transferred to, and in some cases compacted in, large, • specially constructed trailers for transportation to disposal or resource recovery facilities. This procedure reduces costs by improving utilization of collection personnel and equipment and improving the efficiency of transporting waste to final disposal facilities. The services of these facilities are provided to municipalities or counties and in most instances are also used by Waste Management and by other collection companies. Fees are generally based upon such considerations as market factors, the type and volume or weight of the waste transferred, the extent of processing of recyclable materials, the transport distance involved and the cos[ of disposal. RECYCLING A.ND ENERGY RECOVERY Recycling Waste Management provides recycling services in the United States and Canada through its Recycle Americas. Recycle Canadas and other programs. Recycling involves the removal of reusable materials from the waste stream for processing and sale or other disposition for use in various applications. Participating commercial and industrial operations use containers to separate recyclable paper, glass. plastic and metal wastes for collection. processing and sale by Waste Management- Fees are determined by such considerations as market factors, frequency of collection, type and volume or weight of the recyclable material, degree of processing required, distance the recyclable material must be transported and value of the recyclable material. As pan of its residential solid waste collection services. Waste Management engages in curbside collection of recvclable materials from residences in the United States and Canada. also through its Recycle Americas, Recycle Canada$ and other programs. Curbside recycling services generally involve the collection of recyclable paper_ glass. plastic and metal waste materials. which may be separated by residents into different waste containers or commingled with other recyclable materials. The recyclable materials are then typically deposited at a local materials recovery facility where they are sorted and processed for resale. 6 e , hazardous waste management and remediation requirements. These fatties have led to reduced demand and increased pressure on pricing for chemical waste management services, consequences which the Company expects to continue for the foreseeable future. • LOW-LEVEL AND OTHER RADIOACTIVE WASTE SERVICES Radioactive wastes with varying degrees of radioactivity are generated by nuclear reactors and by medical, industrial, research and governmental users of radioactive material. Radioactive wastes are generally classified as either high-level or low-level. High-level radioactive waste, such as spent nuclear fuel and waste generated daring the reprocessing of spent fuel from nuclear reactors, contains substantial quantities of long-lived radionuclides and is the ultimate responsibility of the federal government. Low-level radioactive waste. which decays more quickly than high-level waste, largely consists of dry compressible wastes (such as contaminated gloves, paper, tools and clothing), resins and filters which have removed radioactive contaminants from nuclear reactor cooling water, solidified wastes from power plants which have become contaminated with radioactive substances and irradiated hardware. Chem-Nuclear provides comprehensive low-level radioactive waste management services in the United States consisting of disposal,processing and various other special services. To a lesser extent, it provides services with respect to radioactive waste that has become mixed with regulated chemical waste. Chem-Nuclear's radioactive disposal operations involve low-level radioactive waste only. Its Barnwell, South Carolina facility is one of two licensed commercial low-level radioactive waste disposal facilities in the United States and has been in operation since 1971. A trust has been established and funded to pay the estimated cost of decommissioning the Barnwell facility. A second fund, for the extended care of the facility, is funded by a surcharge on each cubic foot of waste received Chem-Nuclear may be liable for additional costs if the extra charges collected to restore and maintain the facility are insufficient to cover the cost of restoring or maintaining the site after its closure (which Chem-Nuclear has no reason to expect). Under state legislation enacted in 1995, the Barnwell, South Carolina facility is authorized to operate until its current permitted disposal capacity is fully utilized unless such authorization is changed by legislation. However, presently pending irl the South Carolina • Supreme Court is a suit challenging the 1995 legislation, which repealed earlier legislation that would have closed the Barnwell facility to out-of-state wastes. While Chem-Nuclear believes the sunt (to which it is not a party) lacks merit, it is impossible to predict the outcome of the suit and its impact on future operations at Barnwell. Chem-Nuclear also processes low-level radioactive waste at its customers' plants to enable such waste to be shipped in dry rather than liquid form to meet the requirements for receipt at disposal facilities and to reduce the volume of waste that must be transported. Processing operations include solidification, demineralization, dewatering and filtration. Other services offered by Chem-Nuclear include providing electro-chemical. abrasive and chemical removal of radioacuve contamination, providing management services for spent nuclear fuel storage pools and storing and incinerating liquid radioactive organic wastes. INTERNATIONAL WASTE bIANAGEMENT AND RELATED SERVICES The Company is a leading provider of comprehensive waste management and related services internationally, primarily through Waste Management International, which conducts essentially all of the waste management operations of the Company located outside North America. Waste Management International's business may broadly be characterized into two areas of activity, collection services and treatment and disposal senices. The following table shows the derivation of Waste Management. International's revenues for the years indicated and includef revenue from construction of treatment or disposal facilities for third parties under "Treatment and Disposal Services": Year Ended December 31. 1993 1994 1995 Collection Services 69% 64% 64% • Treatment and Disposal Services . . . . 31% 36% 36% 10 frequency of collection pick-ups, and disposal arrangements. Longer-term contracts typically have formulae for periodic price increases or adjustments. Waste Management International also provides curbside recycling services similar to those provided by Waste Management in North America. • Street, industrial premises, office and puking lot cleaning services ate also performed by Waste Management International, along with portable sanitation/toilet services for such occasions as outdoor concerts and special events. Waste Management International's commercial and industrial solid and hazardous waste collection services are generally contracted for by individual establishments. In addition to solid waste collection customers, Waste Management International provides services to small quantity waste generator.;, as well as larger petrochemical, pharmaceutical and other industrial customers, including collection of hazardous, chemical or medical wastes or residues. Waste Management International has approximately 285.000 commercial and industrial customers. Contract terms and prices vary substantially between jurisdictions and types of customer. Waste Management International also provides commercial and industrial recycling services. Treatment and Disposal Services Treatment and disposal services include processing of recyclable materials, operation of both solid and hazardous waste landfills, operation of municipal and hazardous waste incinerators, operation of a trash-to-energy facility, operation of water and wastewater treatment facilities, operation of hazardous waste treatment facilities and construction of treatment or disposal facilities for third parties. The operation of solid waste landfills is currently Waste Management International's most significant treatment and disposal service. Treatment and disposal services are provided under contracts which may be obtained through public bid or tender or direct negotiation, and are also provided directly to other waste service companies. At December 31, 1995, Waste Management International owned, operated or maintained 23 waste treatment facilities, 79 recycling and recyclables processing facilities, 9 incinerators and 55 landfills. • Once collected,Vsolid wastes may be processed in a recyclables processing facility for sale or other disposition for use in various applications. Unprocessed solid wastes, or the portion of the waste stream remaining after recovery of recyclable materials, require disposal, which may be accomplished through incineration (in connection with which the energy value may be recovered in a trash-to-energy facility) or through disposal in a solid waste landfill. The relative use of landfills versus incinerators differs from country to country and will depend on many factors. including the availability of land. geological and hydrological conditions, the availability and cost of technology and capital. and the regulatory environment. The main determinant of disposal method is generally the disposal cost per cubic meter at local landfills, as incineration is generally more expensive. At present. in most countries in which Waste Management International operates, landfilling is the predominant disposal method employed. Waste Management International owns or operates solid waste landfills in Argentina, Australia, Brazil, Denmark- France. Germany, Hone Kong, Indonesia. Italy, New Zealand. Spain. Sweden and the United Kingdom. Landfill disposal agreements may be separate contracts or an integrated portion of collection or treatment contracts. Demand for solid waste incineration is affected by landfill disposal costs and government regulations. The incineration process fortnon-hazardous solid waste has also been influenced by two significant factors in recent years: (i) increasingly strict control over air emissions from incinerators: and, (ii) increasing emphasis on trash-to- energy incinerators, which utilize heat produced by incinerators to generate electricity and other energy. Incineration generates approximately 30% residue (by weight), which is either landfilled or, if permitted. recycled for use as a road base or in other construction uses. • Waste Management International's trash-to-energy incinerator in Hatnrn is a German-designed plant and the only privately operated trash-to-energy facility in Germany. It is among the first trash-to-energy facilities to fully 12 A services for destroying or recycling volatile organic compounds ("VOCs") from air and liquid sources and NOx from air sources. Both VOCs and NOx are detrimental to air quality and the environment generally. WTI's VOC • and NOx control systems are utilized by customers in a variety of industries. including oil refinenes. chemical plants and automobile production facilities. Complementing the emission control divisions is a measurement division which designs and installs continuous emissions monitoring systems for the utility, trash-to-energy, industrial furnace and petrochemical industries. all of which are affected by regulations requiring the continuous monitoring of stack emissions. Wheelabrator Clean Nater Through Wheelabrator Water Technologies. Inc. and its subsidiaries., WTI develops, operates and owns projects that purify water, treat water and wastewater, compost organic wastes and treat and manage biosolids. WTI also provides products and systems used to treat drinking water as well as industrial and municipal process water and wastewater. WTI is a leading provider of a broad range of water and wastewater treatment services to municipalities and industry throughout the United States. Canada and Mexico, including water and wastewater treatment plant start-up assistance, plant operations and maintenance, planning and management. training of plant supervisors, operators and laboratory and maintenance personnel. refining process systems, management systems for process control, and plant diagnostic evaluations and energy audits. WTI also provides specialty repair and cleaning services for industrial water and wastewater management equipment. In July 1995, WTI became the first company in the United States to acquire a publicly owned wastewater treatment plant pursuant to a federal Executive Order issued in 1992 which was intended to facilitate the privatization of municipal facilities. The agreement provides for a subsidiary of WTI to operate the 4.5 million gallon per day MCD Franklin Wastewater Treatment Plant in Franklin, Ohio for a period of 20 years and to • expand the f_rlity as needed to meet Pature population growth. In August 1995, WTI was selected by the City of Wilmington.Delaware to negotiate a similar public-private partnership, including the acquisition of that City's wastewater treatment plant. WTI also provides a range of biosolids management services, including land application, drying, pelletizing, alkaline stabilization and composting of non-hazardous biosolids to approximately 450 communities, typically pursuant to multi-year contracts under which WTI is paid by the generator to make beneficial use of the biosolids. Land application involves the application of non-hazardous btosolids as a natural fertilizer on farmland pursuant to rigorous site-specific permits issued by applicable state authorities. Biosolids are also used in land. reclamation projects such as strip mines. Regulations issued by the EPA in December 1992 under the Clean Water Act encourage the beneficial use of municipal sewage sludge by recoenizine the resource value of biosolids as a fertilizer and soil conditioner, and establish requirements for land application designed to protect human health and the environment. WTI also develops and operates facilities at which biosolids are dried and pelletized and has four facilities currently in operation. and one other facility under construction. WTI has approximately 560 dry-tons-per-day of biosolids drying capacity either in operation or under construction. Biosolids which have been dried are generally used as fertilizer by farmers, commercial landscapers and nurseries and as a bulking agent by fertilizer manufacturers. Development of dryer facilities generally involves various contractual arrangements with a variety of private and public entities, including municipalities (which getterate the biosolids), lenders. contractors and subcontractors which build the facilities, and end-users of the fertilizer generated from the treatment process. WTI also engineers and manufactures a variety of environmental products and systems. WTI provides single- source, advanced-systems solutions for the treatment of municipal drinking water. industrial process water and . wastewater and for slurry pumping and high solids dewatering. It also provides systems designed to remove solids from liquid streams through the use of self-cleaning barifilter screens, grinders, macerators. conveyors and 14 Rust also engages in providing process engineering, construction, specialty contracting and related services, but has announced its intenuon to sell or otherwise discontinue that business in North America and certain locations outside North America. The process engineering services currently provided by Rust are of two general • types: facility process engineering and facility design engineering. Process engineers create the processes by which facilities operate, such as chemical, petrochemical, energy and pulp and. paper plants. Design engineering services provided by Rust encompass the following disciplines: architectural. electrical, control systems, process piping, mechanical, structural. HVAC, and civil. The construction services currently provided by Rust are generally performed in connection with projects on which Rust has also provided the design engineering services. Rust also requisitions and procures equipment and construction materials for clients and performs quality assurance and quality control oversight of vendor manufacturing practices. Rust also has scaffolding and other on-site industrial services businesses, which are managed by Waste Management. See "Waste Services--Solid Waste Management, Recycling and Related Services—Related Services" above. REGULATION - - While in general the Company's environmental services businesses have benefited substantially from increased governmental regulation. the environmental services industry itself has become subject to extensive and evolving regulation by federal, state, local and foreign authorities. In particular, the regulatory process requires firms in the Company's industries to obtain and retain numerous governmental permits to conduct various aspects of their operations, any of which may be subject to revocation,modification or denial. As a result of governmental policies and attitudes relating to the industries, which are subject to reassessment and change, the Company believes that its ability to obtain applicable permits from governmental authorities on a timely basis, and to retain such permits, could be impaired. The Company is not im a position at the present time to assess the extent of the impact of such potential changes in governmental policies and attitudes on the permitting processes. but it could be significant. In particular, adverse decisions by governmental authorities on permit applications submitted by the Company may result in abandonment of projects, premature closure of facilities or restriction of operations, which could result in a loss of earnings from a facility, a write-off of capitalized development expenses or both. Federal, state, local and foreign governments have also from time to time proposed or adopted other types of laws, regulations or initiatives with respect to the environmental services industry. Included among them are laws, regulations and initiatives to ban or restrict the international, interstate or intrastate shipment of wastes, impose higher taxes on out-of-state waste shipments than in-state-shipments, reclassify certain categories of hazardous wastes as non-hazardous and regulate disposal facilities as public utilities. Certain state and local governments have promulgated "flow control" regulations, which attempt to require that all waste generated within the state or local jurisdiction must go to certain disposal sites. The United States Congress has from time to time considered legislation that would enable or facilitate such bans, restrictions, taxes and regulations. Due to the complexity of regulation of the industry and to public pressure, implementation of existing or future laws, regulations or initiatives by different levels of government may be inconsistent and difficult to foresee. Many state and local governments have enacted mandatory or voluntary recycling laws and bans on the disposal of yard-waste in landfills. The effect of these and similar laws is to reduce the volume of wastes that would otherwise be disposed in Company landfills. In addition, municipalities and other governmental entities with whom the Company contracts to provide solid waste collection or disposed services, or both. may require the Company as a condition of securing the business to provide recycling services and operate recvcling and composting facilities. which may cause the Company to incur substantial costs. The Company makes a continuing effort to anticipate regulatory, political and legal developments that might affect its operations but is not always able to do so. The Company cannot predict the extent to which any legislation or regulation that may be enacted, amended. repealed or enforced. or any failure or delay in enactment or enforcement of legislation or • regulations or funding of government agencies or programs, in the future may affect its operations. Such matters could have a material adverse impact on the Comnanv's earnings for one or more fiscal quarters or years. 16 recovery or disposal facilities. In addition. the Company's disposal facilities are subject to water and'air pollution laws and regulations. Poise pollution laws and regulations may also affect the Company's opemuons. Governmental authorities have the power to enforce compliance with these various laws and regulations and • violators are subject to injunctions, fines and revocation of permits. Private individuals may also have the right to sue to enforce compliance. Safety standards under the Occupational Safety and Health Act ("OSHA") are also applicable to the Company's solid waste and related services operations. The EPA and various states acting pursuant to EPA-delegated authority have promulgated rules pursuant to RCRA which serve as minimum requirements for land disposal of municipal wastes. The rules establish more stringent requirements than previously applied to the siting, construction, operation and closure of all but the smallest municipal waste landfill facilities. In certain cases, the failure of some states to adopt the federal requirements may increase costs to meet inconsistent federal and state laws applicable to the same facility. The Company does not believe that continued compliance with the more stringent minimum requirements will have a material adverse effect on the Company's operations. See also "RCRA" and "Superiund" below for additional regulatory information. In March 1996, the EPA issued regulations that require large, municipal solid waste landfills to install and monitor systems to collect and control landfill gas. The regulations apply to landfills that are designed to accommodate 2.5 million cubic meters or more of municipal solid waste and that accepted waste for disposal after November 8, 1987, regardless of whether the site is active or closed. The date by which each affected landfill must have such gas collection and control system depends on whether the landfill began operation before or after May 30, 1991. Landfills constructed, reconstructed, modified or first accepting waste after May 30, 1991 generally must have systems in place by late 1998. Older landfills generally will be regulated by the states and will be required to have landfill gas systems in place within approximately 30 months of EPA's approval of the state program. Many state solid waste regulations already require collection and control systems. While the Company has not yet completed its study of the new regulations, compliance with them is not expected to have a material adverse effect on the Company. • HAZARDOUS WASTE Waste Management and CWM are required to obtain federal, state, local and foreign governmental permits for their chemical waste treatment, storage and disposal facilities. Such permits are difficult to obtain, and in most instances extensive geological studies, tests and public hearings are required before permits may be issued. Waste Management's and CWM's chemical waste treatment, storage and disposal facilities are also subject to siting, zonme and land use restrictions, as well as to regulations lincluding certain requirements pursuant to federal statutes) which may govern operating procedures and water and air pollution, among ether matters. In particular. Waste Management's and CWM's operations in the United States are subject to the Safe Drinking Water Act (which regulates deep well injection), TSCA (pursuant to which the EPA has promulgated regulations concerning the disposal of PCBs). the Clean Water Act (which regulates the discharge of pollutants into surface waters and sewers by municipal, industrial and other sources) and the Clean Air Act (which regulates emissions into the air of certain potentially harmful substances). In their transportation operations. Waste Management and CWM are subject to the jurisdiction of the Interstate Commerce Commission and regulated by the DOT and by regulatory agencies in each state. Employee safety and health standards under OSHA are also applicable. Of Waste Management's and CNVM's chemical waste treatment or disposal facilities in the United States, all but one have been,issued permits under RCRA. The facility without an RCRA permit continues to have interim status. A final permit is to be issued jointly by the authorized state, subject to EPA oversight, and by the EPA. The regulations governing issuance of permits contain detailed standards for hazardous waste facilities on matters such as waste analysis, security, inspections, training, preparedness and prevention, emereency procedures, reporting and recordkeeping. Once issued, a final permit has a maximum fixed term of 10 years• and such permits for land disposal facilities are required to be reviewed five years from the date of issuance. The issuine agency (either the EPA or an authorized state) may review or modify a pemnt at any time during its term. 18 w Environmental and Infrastructure Engineering and Consulting Services The practice of engineering and architecture is regulated by state statutes. All states require engineers and architects to be registered by their respective state registration boards as a condition to offering or rendering •professional services. Many states also require companies offering or rendering professional services. such as Rust, to obtain certificates of authority. Rust's businesses are also subject to OSHA regulations and to NRC regulations concerning services provided to nuclear power plants. R.CRA Pursuant to RCRA. the EPA has established and administers a comprehensive, "cradle-to-grave" system for the management of a wide range of industrial by-products and residues identified as "hazardous" wastes. States that have adopted hazardous waste management programs with standards at least as stringent as those promulgated by the EPA may be authorized by the EPA to administer their programs in lieu of RCRA. Under RCRA and federal transportation laws, a transporter must deliver hazardous waste in accordance with a manifest prepared by the generator of the waste and only to a treatment. storage or disposal facility having a RCRA permit or interim status under RCRA. Every facility that treats or disposes of hazardous wastes must obtain a RCRA permit from the EPA or an authorized state and must comply with certain operating standards. The RCRA permitting process involves applying for interim status and also for a final permit. Under RCRA and the implementing regulations, facilities which have obtained interim status are. allowed to continue operating by mi complying with certain minimum standards pending issuance of a pert. RCRA also imposes restrictions on land disposal of certain hazardous wastes and prescribes standards for hazardous waste land disposal facilities. Under RCRA, land disposal of certain types of untreated hazardous wastes has been banned except where the EPA has determined that land disposal of such wastes and treatment residuals should be permitted. The disposal of liquids in hazardous waste land disposal facilities is also prohibited. The EPA from time to time considers fundamental changes to is regulations under RCRA that could facilitate exemptions from hazardous waste management requirements, including policies and regulations that could implement the following changes: redefine the criteria for determining whether wastes are hazardous; prescribe treatment levels which, if achieved, could render wastes non-hazardous; encourage further recycling and waste minimization: reduce treatment requirements for certain wastes to encourage alternatives to incineration; establish new operating standards for combustion technologies: and indirectly encourage on-site remediation. To the extent such changes are adopted, they can be expected to adversely affect the demand for the Company's chemical waste management services. in this regard, the EPA has recently proposed regulations which would have the effect of reducing the volume of waste classified as hazardous for RCRA regulatory purposes. See "Regulation" above. In addition to the foregoing provisions. RCRA regulations require the Company to demonstrate financial responsibility for possible bodily injury and property damage to third parties caused by both sudden and nonsudden accidental occurrences. See "Insurance" below. Also. RCRA regulations require the Company to provide financial assurance that funds will be available when needed for closure and post-closure care at is waste treatment, storage and disposal facilities, the toss of which could be substantial. Such regulations allow the financial assurance requirements to be satisfied by various means, including letters of credit, surety bonds, trust funds, a financial (net worth) test and a guarantee by a parent corporation. Under RCRA regulations, a company must pay the closure costs for a waste treatment. storage or disposal facility owned by it upon the closure of the facility and thereafter pay post-closure care costs. If such a facility is closed prior to its originally anticipated time, it is unlikely that sufficient funds will have been accrued over the life of the facility to fund such costs, and the owner of the facility could suffer a material adverse impact as a result. Consequently, it may be difficult to close such facilities to reduce operating costs at times when. as is currently the case in the hazardous waste • services industry, excess treatment. storage or disposal capacity exists._ 20 A new procedure for the adoption of waste management legislation (other than for proposals of a primarily fiscal nature[ which it is predicted may result in the speedier implementation of EU waste laws. The impact of current and future EU legislation will vary from country to country according to the degree • to which existing national requirements already meet or fall short of the new EU standards and. in some jurisdictions, may require extensive public and private sector investment and the development and provision of the necessary technology, expertise. administrative procedures and regulator structures. These extensive laws and regulations are continually evolving in response to technological advances and heightened public and political concern. Outside Europe. continuing industrialization, population expansion and urbanization have caused increased levels of pollution with all of the resultant social and economic implications. The desire to sustain economic growth and address historical pollution problems is being accompanied by investments in environmental infrastructure, particularly in Southeast Asia, and the introduction of regulatory standards to further control !industrial activities. The Company believes that Waste Management International's business is conducted in material compliance with applicable laws and regulations and does not anticipate that. maintaining such compliance will adversely affect the Company's financial position. There can be no assurance, however, that such requirements will not change so as to require significant additional expenditures or operating costs. Waste Management International operates facilities in Hoag Kong which are owned by the Hong Kong government. Control of the Hone Kong govertunent passes to the People's Republic of China in 1997. Waste Management International is unable to predict what impact, if any, this change will have on its operations in Hong Kong. COMPETPPION Waste Management encounters intense competition, primarily in the pricing and rendering of services, from various sources in all phases of its solid waste management and related operations. In the solid waste collection phase, competition is encountered, for the most part, from national, regional and local collection companies as well as from municipalities and counties (which, through use of tax revenues, may be able to provide such services at lower direct charges to the customer than can Waste Management) and some large commercial and industrial companies which handle their own waste collection. In the solid waste transfer, resource recovery and disposal phases of its operations, competition is encountered primarih from municipalities, counties, local governmental agencies, other national or regional waste management companies and certain large corporations not primarily involved in the solid waste management services business. The Company also encounters intense competition in pricing and rendering of services in its medical and infectious waste management, portable sanitation and street sweeping and parking lot cleaning services businesses from numerous large and small competitors. In its hazardous waste management operations, the Company encounters competition from a number of sources, including several national or regional firms specializing primarily in chemical waste management. local waste management concerns and, to a much greater extent, generators of chemical wastes which seek to reduce the volume of or otherwise process and dispose of such wastes themselves. The basis of competition is primarily technical expertise and the price, quality and reliability of service. Waste Management International encounters intense competition from local companies and governmental entities in particular countries, as well as from major international companies. Pricing, quality of service and type of equipment utilized are the primary methods of competition for collection services, and proximity of suitable treatment or disposal facilities, technical expertise, price, quality and reliability of services are the • primary methods of competition for treatment and disposal services. 22 allocations set forth in the preceding two paragraphs. In this connection CWTI. WTI, Rust, the'Company and Waste Management International have agreed that in order to minimize the potential for conflicts of interest among various subsidiaries under the common control of the Company and for so long as the Company shall • have beneficial ownership of a maiority of the outstanding voting equity interests of such subsidiary (or an option to obtain such ownership), the Company has the right to direct future business opportunities to the Company or the Company-controlled subsidiary which. in the Company's reasonable and good faith judgment. has the most experience and expertise in that line of business, provided that the Company may not allocate a business opportunity to a particular subsidiary if such business opportunity would involve the subsidiary in a breach of its agreement not to compete as described in the immediately preceding paragraphs. Opportunities outside North America relating to the provision of future waste management services are generally to be allocated to Waste Management International, except that opportunities outside North America relating to the WTI Allocated Activities and the Rust Allocated Activities are generally to be allocated to WTI and Rust, as the case may be. Environmental opportunities other than waste management activities are to be allocated in the Company's good faith judgment. No party.is liable for consequential damages, except for hist profits, for any breach of the IBOA. In addition, in connection with the transfer by Rust of its hazardous and radioactive substance remediation business (see "Acquisitions and Dispositions" below), the Company, Rust and their respective wholly owned affiliates agreed with OHM not to engage in providing on-site hazardous and radioactive substance remediation services in North America prior to 2002. INSURANCE While the Company believes it operates professionally and prudently, its business exposes it to risks such as the potential for harmful substances escaping into the environment and causing damage or injuries,the cost of which could be substantial. The Company currently maintains liability insurance coverage for occurrences under various environmental impairment, primary casualty and excess liability insurance policies. • The Company's insurance program includes coverage for pollution liability resulting from "sudden and accidental" releases of contaminants and pollutants. The Company believes that the coverage terms, available limits of liability, and costs currently offered by the insurance market do not represent sufficient value to warrant the purchase of "non-sudden and accidental" pollution liability insurance coverage. As such, the Company has chosen not to purchase risk transfer "non-sudden and accidental" pollution liability insurance coverage. To satisfy existing government requirements, the Company has secured non-risk transfer pollution liability insurance coverage in amounts believed to be in compliance with federal and state law requirements for "non-sudden and accidental" pollution. The Company must reimburse the insurer foriosses incurred and covered by this insurance policy. In the event the Company continues not to purchase risk transfer "non-sudden and accidental" pollution Liability insurance coverage, the Company's net income could be adversely affected in the future if "non-sudden and accidental" pollution losses should occur. EMPLOYEES WMX Technologies and its subsidiaries employ a total of approximately 73.200 persons in their worldwide continuing operations. Of this number, the Company employs approximately 38,700 persons in its North American solid and hazardous waste management services operations (excluding employees of the Rust scaffolding and other on-site industrial services business operated by Waste Management). Of this total, 35,900 persons are engaged. in its Waste Management solid waste and related services operations, including approximately 27,200 persons employed in solid waste collection, transfer. resource recovery and disposal activities, and approximately 8.700 managerial, executive, sales, clerical. data processing and other solid waste and related activities. Approximately 2.800 employees are employed in the Company's hazardous waste services business, including 100 as managers or executives. Approximately 2.000 are employed in hazardous waste treatment, storage and disposal activities (including approximately 530 performing technical, analytical or . engineering services), and approximately 700 are employed in sales. clerical. data processing and other hazardous waste-related activities. 24 R and by a majority of the public stockholders of CWM. As a result of the Merger. CWNI became a wholly owned subsidiary of the Company. On March 14, 1995, the Company's Board of Directors approved a plan to reduce the scope of the Wompany's chemical waste management services business by selling or otherwise eliminating technologies and service locations which were not meeting customer service or performance objectives. See "Management's Discussion and Analysis of Results of Operations and Financial Condition-1.995 Operations Compared with 1994---CWM," incorporated by reference in this report, for further information. y In May 1995, OHM acquired Rust's hazardous and radioactive substance remediation business in exchange for an approximately 37% interest in OFIM. In exchange for warrants to acquire an additional approximately 2.6% of OHM common stock, the Company also agreed in that transaction to guarantee up to $62 trillion of indebtedness of OHM. In July 1995, the Company acquired the approximately 4% of Rust's shares held by the public for $16.35 per share m' cash. The transaction was approved by a special committee of independent directors appointed by the Rust Board of Directors. As a result of that transaction, Rust became owned 60% by the Company and 40% by WTI. Additionally, Rust has announced its intention to sell or otherwise discontinue its process engineering, construction, specialty contracting and related services business. The terms of the sale have not yet been determined.The Company expects the sale of those portions of the business which are to be sold to be completed in 1996. In December 1995, the Company contributed its approximately 28% interest in ServiceMaster Consumer Services LP. ("SMCS"), a provider of Iawn care, pest control and other consumer services, to ServiceMaster LP. ("SMLP"), the owner of the remaining interest in SMCS, in exchange for an approximately 19% interest in SMLP and an option to purchase up to 1"' million SMLP limited partnership shams. •`the Company has also acquired numerous companies and interests in companies internationally through Waste Management International or its predecessors. See "International 'Waste Management and Related Services." ITEM 2. PROPERTIES. The principal property and equipment of the Company consists ofland (primarily disposal sites), buildings and waste treatment or processing facilities (other than disposal sites), and vehicles and equipment, which as of December 31. 1995 represented approximately 18%, 6% and 27%, respectively, of the Company's total consolidated assets. The Company believes that its vehicles, equipment and operating properties are well maintained and suitable for its current operations. See "Management's Discussion and Analysis of Results of Operations and Financial Condition" filed as an exhibit to this report and incorporated by reference herein for a discussion of property and equipment expenditures by the Company for the last three years and the capital budget for 1996. The Company's subsidiaries lease numerous office and operating facilities throughout the world. For the year ended December 31. 1995, aggregate annual rental payments on real estate leased by the Company and its subsidiaries approximated $140.367,000. The principal fixed assets of Waste 'Management consist of vehicles and equipment (which include, among other items, approximately 20.800 collection and transfer vehicles. 1.568,600 containers and 21,000 stationary compactors in the United States and Canada). Waste Management owns or leases real property in most states and Canadian provinces in which it is doing business. At December 31. 1995, 103 solid waste disposal facilities. aggregating approximately 65.740 total acres, including approximately 14.290 permitted acres, were owned by Waste Management in the United States and Canada and 30 facilities, aggregating approximately 13.340 total • acres, including approximately 5.860 permitted acres, were leased from parties not affiliated with Waste 26 w subsidiaries of the Company (or their predecessors) transported hazardous substances to the facilities in question. often prior to acquisition of such subsidiaries by the Company. Such proceedings arising under Superfund typically involve numerous waste generators and other waste transportation and disposal companies and seek to •allocate or recover costs associated with.site investigation and cleanup, which costs could be substantial. As of December 31, 1995, the Company or its subsidiaries had been notified that they are potentially responsible parties in connection with 106 locations listed on the Superfund National Priority List ("NPL"). Of the 106 NPL sites at which claims have been made against the Company, 19 are sites which the Company has came to own over time. All of the NPL sites owned by the Company were initially sited by others as land disposal facilities. At each of the 19 owned facilities, the Company is working in conjunction with the government to characterize or to remediate identified site problems. In addition, at these 19 facilities the Company has either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or is pursuing resolution of an allocation formula. The 87 NTL sites at which claims have been made against the Company and which are not owned by the Company are at different procedural stages under Superfund. At some, the Company's liability is well defined as a consequence of a governmental decision as to the appropriate remedy and an agreement among liable parties as to the share each will pay for implementing that remedy. At others, where no remedy has been selected or the liable parties have been unable to agree on an appropriate allocation, the Company's future costs are substantially uncertain. The Company periodically reviews its role, if any, with respect to each such location, giving consideration to the nature of the Company's alleged connection to the location(e.g., owner, operator, transporter or generator), the extent of the Company's alleged connection to the location (e.g., amount and nature of waste hauled to the location, number of years of site operation by the Company or other relevant factors), the accuracy and strength of evidence connecting the Company to the location.the number, connection and financial ability of other named and unnamed potentially responsible patties at the location. and the nature: and estimated cost of the likely remedy. Where the Company concludes that it is probable that a liability has been incurred,a provision is made in the Company's financial statements for the Company's best estimate of the liability based on management's . judgment and experience, information available from regulatory agencies and the number, financial resources and relative degree of responsibility of other potentially responsible parties who are jointly and severally liable for remediation of a specific site, as well as the typical allocation of costs among such parties. If a range of possible outcomes is estimated and no amount within the range appears to be a better estimate than any other, then the Company provides for the minimum amount within the range, in accordance with generally accepted accounting principles. Sites subject to state action under state laws similar to the federal Superfund statute are treated by the Company in the same way as NPL sites. The Company's estimates are subsequently revised. as deemed necessary, as additional information becomes available. While the Company does not anticipate that the amount of any such revisions will have a material adverse effect on the Company's operations or financial condition, the measurement of environmental Liabilities is inherently difficult and the possibility remains that technological, regulatory or enforcement developments, the results of environmental studies, or other factors could materially alter this expectation at any time. Such matters could have a material adverse impact on earnings for one: or more fiscal quarters or years. From time to time, the Company and certain of its subsidiaries are narned as defendants in personal injury and property damage lawsuits, including purported class actions, on the basis of a Company subsidiary's having owned, operated or transported waste to a disposal facility which is alleged to have contaminated the environment or, in certain cases, conducted environmental remediation activities at sites. Some of such lawsuits may seek to have the Company or its subsidiaries pay the costs of groundwater monitoring and health care examinations of allegedly affected persons for a substantial period of time even where no actual damage is proven. While the Company believes it has meritorious defenses to these lawsuits, their ultimate resolution is often substantially uncertain due to the difficulty of determining the cause. extent and impact of alleged contamination (which may have occurred over a long period of time). the potential for successive groups of complainants to emerge, the diversity of the individual plaintiffs' circumstances. and the potential contribution . or indemnification obligations of co-defendants or other third parties, among other factors. Accordingly, it is 28 Herbert A. Getz, age 40,has been a Senior Vice President of the Company since May 1995, a Vice President of the Company since May 1990 and General Counsel since August 1992. He has also been Secretary of the Company since January 1988. He also served as Assistant General Counsel of the Company from December • 1985 until August 1992. Mr. Getz has also held the offices of Vice President. General Counsel and Secretary at Waste Management from April 1989 until December 1993, and Vice President and Secretary of Rust from January 1993 to May 1994. He has also served as Secretary of WTI since hily 1995, a position he previously held..as well as being the General Counsel of WTI, from November 1990 until May 1993. \it. Getz commenced employment with the Company in 1983. He is Chairman of the Board of Directors of NSC and a director of OHM. Thomas C. Hau, age 60, has been a Vice President and the Controller and Principal Accounting Officer of the Company since he commenced employment with the Company in September 1990. From 1971 until his employment by the Company, Mr. Hau was a partner of Arthur Andersen LLP. William P. Halligan. age 52, has been Executive Vice President of Waste Management since January 1996, a position he previously held from September 1984 to January 1988. From 1986 to August 1993, he was also a Vice President of the Company. From August 1992 to March 1996, he also served as President of certain Waste Management operating groups. He was President of Waste Management from January 1988 to August 1992. He has been employed by the Company since 1979. Joseph M. Holsten, age 43, has been Chief Executive Officer of Waste Management International since July 1995. From October 1993 to July 1995, he was Executive Vice President and Chief Financial Officer of Waste Management. Mr. Holsten was Vice President of Acquisitions and Project Development for Waste Management International from April 1992 to August 1993 and Vice President, Chief Financial Officer and Treasurer of Rust from September to October 1993. Mr. Holsten has been employed by the Company since 1981. James E. Koenig, age 48, has been a Senior Vice President of the Company since May 1992, Treasurer of the Company since 1986 and its Chief Financial Officer since 1989. Mr. Koenig first became a Vice President of the Company in 1986. From 1984 to 1986, Mr. Koenig was Staff Vice President and Assistant to the Chief Financial Officer of the Company. Mr. Koenig has been employed by the Company since 1977. Mr. Koenig also served as Vice President, Chief Financial Officer and Treasurer of WTI from November 1990 to May 1993. He also serves as a director of WTI, Waste Management International and OH214. D. P. Payne, age 53. has been a Senior Vice President of the Company since April 1995, a position he previously held from 1990 to 1993. He also served as President and Chief Executive Officer and a director of CWhl from September 1991 to March 1995. Mr. Payne has been employed by the Companv since 1990. Phillip B. Rooney, age 51, has served as a director of the Company since 1981 and as its President and Chief Operating Officer since November 1984. Since January 1994, he has also served as Chairman of the Board and Chief Executive Officer of Waste Management. qtr. Rooney commenced employment with the Company in 1969 and first became an officer of the Company in 1971. Since November 1990, he has served as Chairman of the Board and Chief Executive Officer of WTI. Mr. Rooney is also a director of Waste Management International, WTI, Illinois Tool Works. Inc., Caremark International Inc.. Urban Shopping Centers. Inc., and ServiceMaster Management Corporation, the general partner of ServiceMaster Limited Partnership. Donald A. Wallgren, age 54, has been Vice President and Chief Environmental Officer of the Company since 1992 and Vice President of Environmental Management of Waste Management since January 1995. He was Vice President and Chief Environmental Officer at Waste 'Management :From 1989 to May 1990 . From 1990 • to 1992, he served as Vice President-Recycling. Development and Environmental 5ianagement of Waste Management. tifr. Wallgren has been employed by the Company since 1979. 30 I' ENZ 16. SELECTED FINANCIAL DATA. The following selected consolidated financial information for each of the five years in the period ended ecember 31. 1995 is derived from the Company's Consolidated Financial Statements. which have been audited 1v Arthur Andersen LLP, independent public accountants. whose report thereon is incorporated by reference in this report. The information below should be read in conjunction with "Management's Discussion and Analysis of Results of Operations and Financial Condition" and the Company's Consolidated Financial Statements. and the related Notes. and the other financial information which are filed as exhibits to this report and incorporated herein by reference. Year Ended December 31, 1991(1) 1992(2) 1993(3)(15) 1994(4)(6) 1995(5u6( (000's omitted,except per share amounts) Revenue from continuing operations . S 7,550,914 S 8.661.027 S 8,636.116 S 9.554.705 510,247.617 Income from continuing operations . . S 606.323 S 850.036 S 442,431 S 776,491 S 654.590 Earnings per common and common equivalent shareontinuing operations . . . . . . . . S 1.23 S 1.72 S .91 S 1.60 S 1.35 Total assets . . . . . . . . . . . . . . . . . . . 512.572,310 514,114,180 $16,263,476 517.423.173 518,695.308 Long-term debt, less portion payable within one year. . . . . . . . . . . . . . . 5 3.782.973 S 4.312.511 S 6.145.584 S 6.044.411 S 6.41_0.610 Dividends per share . . . . . . . . . . . . . S .42 S .50 S .58 S .60 S .60 (1) The results for 1991 include a special charge of 5296.000.000 (before tax and minority interest) primarily to reflect then current estimates of the environmental remediation liabilities at waste disposal sites previously used or operated by the Company and its subsidiaries or their predecessors. (2) The results for 1992 include a non-taxable gain of 52.10.000.000 (before minority interest) resulting from • the initial public offering of Waste Management International. special charges of S219,900,000 (before tax and minority interest) primarily related to writedowns of the Company's medical waste business. C%%M incinerators in Chicago, Illinois and Tijuana. Mexico and a former subsidiary's investment in its asbestos abatement business and certain restructuring costs incurred by the subsidiary and CWM related to the formation of Rust. and one time after-tax charges aggregating 571,139,000, or 5.14 per share, related to the cumulative effect of adopting two new accounting standards. (3) The results for 1993 include a non-taxable gain of 515.109.000 (before minority interest) relating to the issuance of shares by Rust, as well as the Company's share of a special asset revaluation and restructuring charge of 5550.000.000 (before tax and minont% interesn recorded by CW'NI related primaniy to a revaluation of CNVM's thermal treatment business. and a provision of approximately 514.000.000 to adjust deferred income taxes resulting from the 1993 tax law change. See 'Dotes 3 and 14 to the Company's Consolidated Financial Statements. 14) The results for 1994 include a charge of $9.200.000 (before tax and minority interestlrecorded by Rust to write off assets and recognize costs of exiting certain of Rust's service lines and closing offices in a consolidation of certain of its operating groups. See Note 14 to the Company's Consolidated Financial Statements. (5) The results for 1995 include a special charge of $140.600.000 (before tax) recorded by CWWNI. primarily to write off its mestment in facilities and technologies that it abandoned because they do not meet customer service or performance objectives, and a special charge of 5194,600.000 (before tax and minority interest) recorded by Waste Management International relating to actions it is taking to sell or otherwise dispose of non-ccre businesses and investments. as well as core businesses and investments in low potential markets, abandon certain hazardous waste treatment and processing technologies. and streamline its counts management organization. See Note 14 to the Company's Consolidated Financial Statements. • (6) In December 1995. the Rust Board of Directors approved a plan to sell or otherwise discontinue Rusts process enzineenng, construction, specialty contracting and similar lines of business. Accordingiy. these ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. Reference is wade to the paragraph under the caption "Compensation Committee Interlocks and Insider � articipauon" on cage 16 of the Proxy Statement and the information set forth under the caption "Certain ransacuons" begtrming on page 24 of the Proxy Statement for certain information with respect to certain relationships and reiated transactions, which paragraphs are incorporated herein by reference. PART rV ITE11I 14. EXHIBITS, FLNANCIAL STATEMENTS, SCHEDULE AND REPORTS ON FORA 8-K. (a) Financial Statements. Schedule and Exhibits. 1. Financial Statements—filed as an exhibit hereto and incorporated herein by reference. (i) Consolidated Statements of Income for the three years ended December 31, 1995: (ii) Consolidated Balance Sheets—December 31. 1994 and 1995; (iii) Consolidated Statements of Stockholders' Equity for the three years ended December 31. 1995: (iv) Consolidated Statements of Cash Flows for the three years ended December 31. 1995: (v) Notes to Consolidated Financial Statements: and (vi) Report of Independent Public Accountants. U. Schedule (i) Schedule II—Valuation and Qualifying Accounts (ii) Report of Independent Public Accountants on Schedule • All other schedules have been omitted because the required information is not significant or is included in the financial statements or the notes thereto, or is not applicable. III. Exhibits. The exhibits to this report are listed in the Exhibit Index elsewhere herein. Included in the exhibits listed therein are the following exhibits which constitute management contracts or compensatory plans or arrangeme.^.s (i) 1981 Stock Option Plan for Non-Employee Directorsof registrant (Exhibit 19 to registrant's report on Form 10-Q for the quarter ended June 30. 1982) ii) W NIX Technologies. Inc. 1982 Stock Option Plan. as amended to March I1. 1988 (Exhibit 10.3 to registrant's 1988 annual report on Form i6-K) (iii) Deferred Director's Fee Plan, as amended (Exhibit 10.3 to registrant's 1990 annual report on Form 10-K) (iv) Director's Phantom Stock Plan (Exhibit 10.9 to registra:nt's 1984 annual report on Form 10-K) (v) Employment Agreement. dated as of September 1. 1986, by and between the registrant and Phillip B. Rooney (Exhibit 19.4 to registrant's report on Form 10-Q for the quarter ended September 30. 19861 (vi) WMX Technologies. Inc. Corporate Incentive Bonus Plan (Exhibit B to registrant's Proxy Statement for its 1995 Annual Meeting of Stockholders (viii WMX Technologies. Inc. Supplemental Executive Retirement Plan. as amended and restated as of January 25. 1995 (filed with this report( 34 �r (xxyii Amendment dated as of December 6. 1991 to the WTI 1986 Stock Plan (Exhibit 19.01 to the 1991 annual report cn Form 10-K of Wheelabrator Technologies Inc.) (xxviiii Amendment dated az of December 6. 1991 to the \i-iI 1988 Stock Plan tExhibit 19.0: to the 1991 annual report ca Form 10-K of W'heeiabrator Technologies Inc.) (xxix) Amendment dated as of December 6. 1991 to the Restricted Unit Plan for Non-Emplovee Directors of Wheeiabrator Technologies Inc. (Exhibit 19.05 to the 1991 annual reo_on on Form 10-K of Wheelabrator Technologies Inc.) (xxx) WMX Technologies. Inc. Long Term Incentive Plan (as amended and restated as of January 27, 1994) (Exhibit A to registrant's Proxy Statement for its 1995 Annual Meeting of Stockholders) 'In the case of reference to documents filed under the Securities Exchange Act of 1934, the registrant's file number under that Act is I-7327. Chemical Waste Management's file number under that Act was 1-9253 and Wheelabrator Technologies Int.'s file number under that Act is 0-1.12.16. (b) Reports on Form 8-K. During the fourth quarter of 1995. the Company filed reports on Form 8-K as follows: (i) a report dated October 17. 1995 reporting under Item 5 the issuance of a news release concerning the Company's 1995 third quarter results of operations and a possible 1995 fourth quarter charge by Waste Management Intemational; and (ii) a report dated December :'_, 1995 reporting under Item 5 the issuance of news releases cenceming (A) the authorization by the Company's Board of Directors of a Company common stock reeurchase program. tB) an increase by WTI in its program for the repurchase of WTI common stock, (C) a fourth quarter 1995 exceptional charge cy Waste Management Intemational, (D) the decision by Rust to sell or otherwise discontinue its process engineering. constntction. specialm contracting and similar lines of business and the possibility of a related 1995 fourth quarter charge. (E) announcement of below- expectations 1995 fourth quarter -amines by Waste Management International, and (F) expected 1996 earnings growth by Waste Management International. :6 s . REPORT OF L\DEPE\BENT PLBLIC ACCOUNTANTS ON SCHEDULE To NVZIX Technologies. Inc.: • We have audited in accordance .ctth generally accepted auditing standards. the consolidated financial statements included in the W\LX Technologies. Inc. Annual Report to Stockholders for 1995 filed as an exhibit to and incorporated by reference in this Form !0-K, and have issued our report thereon dated February 5, 1996. Our audit was made for the purpose of forming an opinion on those statements taken as a whole. The schedule included on page 37 of this Form 10-K is the responsibility of the Company's management and is presented for purposes of complying with the Securities and Exchange Commission's rules and is not a pan of the basic financial statements. This schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and. in our opinion. fairly states in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a «hole. /S/ ARTHUR ANDERSEN LLP ARTHUR ANDERSEN LLP Chicago, Illinois. February 5. 1996 .s WMX Technologies, Inc. 1995 Annual Report Serving the Global Environmental Marketplace SII i I i I Waste Management, Inc. A MILESTONE WORTH NOTING II This year, our Company celebrates a major milestone, the 25th anniversary of our founding as Waste Management,Inc. We began as a Company with modest resources, but a large vision that was backed by the spirit and imagination of terrific people committed to delivering the best waste services available. That commitment remains as strong today as at our inception as we look ahead confidently to the next millennium. While we changed our parent company name to WMX Technologies, Inc. a few years ago to reflect our broader range of environmental services, the name Waste Management remains our foundation and largest subsidiary. Indeed, Waste Management is the premier company in its industry in North America, leading the nation in providing recycling and comprehensive waste management services. Our first quarter-century sped past quickly.Waste Management grew remarkably,and along the way our people recorded numerous achievements of which we are justifiably very proud. Today, through Waste Management, we serve thousands of cities and towns and millions of customers. Waste Management's people daily go about the difficult job of managing society's waste. Their efforts enhance their communities through recycling and environmentally safe disposal services. It is hand work, and they do it exceptionally well. And so, we are pleased to recognize them In this our 25th year, and to offer them our sincerest thanks. They represent the greatness of our Company,and we are pleased to call them colleagues. 1995 is a year in which we will celebrate their continuing achievements. Hijoin ial HigWigks Thousands of dollars,except per share amounts 1994 1995 95 Change rResults o Continuing Operations Reyem e $ 9,554,705 $10,247,617 7.3% ' Operat ngOpera income before special charges°' 1,752,609 1,910,429 9.0% Operat ng income 1,743,425 1,575,236 (9.696) F Net'inc xne before special charges m 780,165 862,784 10.695 in me 776,4'91 654,590 (15.7%) i) Fin Position 3' Total assets $17,423,173 $18,695,308 7.3% ` Long-term and short-term debt 6,935,097 7,514,775 8.4% i E its z 6,329,474 6,589,664 4.1% { Per�otn non Share Net income from continuing operations before special charges'0 $ 1.61 $ 1.78 10.695 Net income from continuing operations 1.60 1.35 (15.6%) Dividends .60 .60 — Stockh lders'equity 9.38 10.15 8.2% Se$Man Lgenwrit's Discussion and Analysis for discussion of special charges in 1994 and 1995. Includes stockholders'equity,minority interest and put options. i :Cabl of Contents t lett¢r to Our Stockholders 2 ConWid ated Selected Financial Data 14 Manage nt's Discussion and Analysis 16 i s Rept rt o F Independent Public Accountants 24 Conoolid ated Financial Statements 25 Nous to Consolidated Financial Statements 30 fhvironr riental Policy 46 Dire�icto and Officers 47 Coroorale Information 48 =6 i i To Our Stockholders This year we celebrate a quarter-century of growth and achievement as a public company, a celebration marked by our 73,000 talented people serving a worldwide customer base. It's a milestone that pays tribute to the effort our people have invested in serving our customers and making us the world's environmental services leader. Anniversaries allow us to glance back with appreciation, but we also realize we must be sharply focused on the future. The 21st Century will bring with it enormous opportunities. Technology is transforming the way we work and deliver services. A global marketplace is expanding the expectations of our customers. Meanwhile, maturing regulatory environments throughout world markets are demanding newer technologies and more professional services. Building on our skills has been a daily requirement for 25 years, ever since we noted in our first letter to stockholders in 1971 that the solid waste industry was entering a new age of professionalism. Today we're continually improving and responding to rapid change in our industry. We're creating a company that is better able to convert fast-breaking change into opportunity, serve our customers, and deliver long-term value to our stockholders. Strategy Since 1971,the way we have sought to deliver stockholder value has changed. For 20 years we pursued a high-growth strategy based on acquisition. By the early 1990s, our increased size and diversity prompted a strategic response to the changes affecting our industry. We are just as committed to increasing stockholder value today as we were at our founding. Our strategy recognizes the tremendous assets we have put in place across North America and overseas. Today our strategy emphasizes: • Internal growth rather than acquisitions. • Improving returns on invested capital rather than revenue growth. • Generating increased owners' cash flow. • Consolidating our mission, strategies and culture into a single global vision. • And applying technologies that enhance services to our 20 million customers. 2 In 1995, we began to build a framework for this new strategy, implementing the best recommendations of a sweeping review of our operations.Among our actions: • We planned a more balanced approach to growth-one less dependent on acquisitions and more responsive to customer demand. While we expect to continue to grow our revenue base,we also must achieve a better return on our assets. • We launched our plan to create four global lines of business - in waste services, clean energy, clean water and environmental engineering and consulting services. This realignment aims our greatest strengths directly at what we see as the most pressing needs of a global marketplace. • We simplified our structure -by buying back the publicly owned shares of Chemical Waste Management, Inc. and Rust International Inc. To keep us more focused on the envi- ronmental services business, we also announced our intention to sell or discontinue Rust's process engineering, construction, specialty contracting and similar lines of business. • We focused our management team-to better identify and exploit the synergies among our lines of business and their globally integrated customer bases. Financial Performance In keeping with our strategy, we set an aggressive agenda and met a number of our financial goals for 1995. Our North American solid waste operations had a particularly strong year, and the Company achieved double-digit earnings growth before the impact of special charges. Consolidated net income in 1995 was $604 million, or $1.24 per share, versus $784 million, or $1.62 per share, a year earlier. Excluding special charges,net income per share front continuing operations was $1.78 versus $1.61 a year earlier. Revenue from continuing operations increased to $10.25 billion compared with $9.55 billion in 1994. (See Management's Discussion and Analysis beginning on page 16 for a broader discussion of financial results.) 3 We also met our objective of generating more than$500 million in owners' cash flow in 1995, and we expect to generate at least $600 million this year. This cash can be used to reduce debt,buy back shares and invest in our core businesses. In December, our Board authorized the repurchase of up to 25 million shares of WMX common stock over the next 24-month period. At the end of 1995, we had approximately 487 million shares outstanding. In addition,the Board of our Wheelabrator Technologies Inc. subsidiary authorized the repurchase of up to 20 million shares of its common stock over two years.Wheelabrator had approximately 179 million shares outstanding at the end of 1995. Waste Services Our waste services line of business accounts for the greatest share of our revenue and operating profit. It includes the operations of Waste Management, Inc. and Chemical Waste Management, Inc. in North America and Waste Management International plc overseas. Today we are working to fully leverage these assets. We're focused on continuous improvement, _ pricing our services competitively, increasing volumes and acquiring companies that add value and enable us to optimize our facilities network. We will enter new markets when we have an opportunity to obtain a strong position that affords us solid prospects for growth. Domestically, 1995 was a good year. Waste Management revenue grew more than 10 percent to more than $5.6 billion in 1995, with operating profit increasing to more than $1.2 billion. Waste Management represents approximately 55 percent of WMX's consolidated 1995 revenue from continuing operations and 66 percent of our consolidated operating profit excluding special charges. Waste Management completed 108 acquisitions in 1995. We recently announced our major entry into New York City with the purchase of the assets of that market's largest recycling and waste processing company, Resource NE, Inc. We view the purchase of ReSource, with associated revenue of $135 million and 6,000 commercial customers in Brooklyn, Queens and Manhattan, as a first step in expanding in this market. The New York metropolitan area generates approximately 9 percent of all the recycling and solid waste industry revenue in the United States. 4 The year's positive results- benefitted from strong growth in the value and volume of recyclable commodities, particularly fiber. Our recycling business now generates approximately $675 million in revenue. Recycling is an integral part of the services we offer customers. While we cannot control short-term swings in the prices of the commodities we recover and sell, we are focused on what we can control—our costs of collection and processing. We also are improving our management of commodity sales to obtain the best prices available. In a move to extend our North American recycling network, Waste Management acquired two recycling firms during 1995: Resource Recycling Technologies, Inc., which owns and operates material recovery facilities in the Northeast and Florida and designs and manages construction of solid waste recycling facilities and systems, and New England CR Inc., which operates 15 material recovery facilities. Waste Management also helped the City of Chicago launch the nation's largest "blue bag" recycling program. More than one million tons of material will be processed annually by Waste Management at four model sorting centers the company designed, built and now operates under a seven-year contract with the city. We now operate more than 170 material recovery facilities throughout the U.S. Our collection and disposal operations continued to perform well, and we are enjoying impressive results as we introduce new technologies to better serve our customers, including automated routing systems and our new Customer Service Centers. Our Customer Service Centers are making us more responsive and easier to deal with and they have helped boost both our customer satisfaction and retention rates. In several markets, including Oakland, California, we are using an innovative ONE PASSTM collection system, enabling us to collect recyclables, garbage and yard waste in one vehicle, reducing our cost of operations. • s Our people are more involved in our business than ever before. One example:The introduction of a `lead team" sales program among our employees. Designed to generate sales leads from drivers and other front-line people, this new program produced more than 95,000 suggestions and accounted for some $36 million in new revenue. One employee lead alone yielded a $1-million account. Business Improvement 2000, our process improvement initiative, continues to put our people's best ideas to work to lower costs and improve efficiencies both domestically and internationally. Our goal by the year 2000 is to achieve$200 to$300 million in annual savings. During 1995, the land disposal operations of our Chemical Waste Management unit were integrated into the Waste Management organization. Our land disposal network now includes 133 solid waste and seven hazardous waste facilities. The hazardous waste marketplace continued to be characterized by industry overcapacity, relatively low levels of customer demand and an uncertain regulatory climate. One bright spot came when the South Carolina _. legislature voted to allow our Chem-Nuclear Systems, Inc. disposal facility for low-level radioactive waste in Barnwell, South Carolina to receive waste from all states except North Carolina. The legislation also allows the facility to operate until its permitted disposal capacity is reached. In May,we strengthened our ability to provide our hazardous waste customers with technical support services such as lab pack management by acquiring 60 percent of Advanced Environmental Technology Corporation. The new entity, called Advanced Environmental Technical Services (AETS), allows us to offer services from more than 40 locations and make better use of our hazardous waste treatment, processing and disposal network. Internationally, we are making good progress in refocusing our business on the core waste services operations and in consolidating our overhead structure. Our goal is to reduce costs and improve operating results, cash flow and return on assets. We continued to see weakness in France and Italy as well as in the European hazardous waste markets, while operations in the United Kingdom, The Netherlands, Germany, Hong Kong, Spain and New Zealand met expectations. 6 The sharp price decline in recyclables during the second half of the year affected all of our international markets, particularly Germany, and strikes in France disrupted operations in that country late in the year. The Asia-Pacific region continues to present us with opportunities for growth. In (long Kong, we opened our SENT Landfill and in Thailand we are ready to construct that country's first industrial waste treatment facility. In January 1996, the Hong Kong government awarded us a contract to design, build and operate for 15 years a 2,500-tons-per-day waste transfer station. This year, we plan to improve our core waste services by building on the experience and know-hoes of our domestic operations. Clean Water The worldwide municipal and industrial markets for water services and technologies are projected to require billions of dollars of capital investment over the next 10 years. To expand • this business, we are focused on privatization of government-owned facilities and outsourcing by industrial customers of their water and wastewater needs. We support this service strategy with a comprehensive water technology base. We already are a leader in this marketplace. In November, we formed Wheelabrator Water Technologies, Inc., a new business unit within Wheelabrator Technologies Inc. designed to serve as the core of our clean water business. This new company employs more than 3,000 people in the U.S. and 26 overseas offices. Its 1995 water revenue surpassed$600 million. Wheelabrator Water constitutes one of the largest and most comprehensive water companies in North America. As well as being a leader in the privatization of municipal water treatment and wastewater treatment plants, biosolids management and the outsourcing of industrial water systems, we are concentrating on providing integrated water systems and services for multinational industrial clients in the chemical, petrochemical, electronics, pulp and paper and power industries, among others. We can provide virtually any industry or municipality with a complete range of services, expertise, equipment and technology solutions for water of any purity level, as well as wastewater and biosolids treatment and recycling. • We experienced significant successes in the past year. Among them was the completion of the first wastewater treatment plant public/private partnership in the United States, in Franklin, Ohio. Soon afterwards,we were selected to negotiate a public/private privatization for the 90-million-gallons-per-day wastewater treatment facility in Wilmington, Delaware.We also have been selected by the City of San Diego to join in a partnership agreement to develop and operate a 30-dry-ton-per-day biosolids pelletizing facility. In March, we opened an Asia-Pacific regional office in Singapore, which will be the regional center for the 10 offices we have in eight countries in that fast-growing region. We believe this will help us react effectively to the many opportunities throughout the Pacific Rim for our water and wastewater technologies. Clean Energy Our clean energy line of business includes the trash-to-energy and independent power operations of Wheelabrator Technologies and Waste Management International. We are optimizing the facilities we have in place and believe we can grow our business by providing our expertise to industrial clients interested in outsourcing their energy needs.We'll also look to develop and acquire select projects in the waste fuels and cogeneration areas. The most significant step to strengthen the global clean energy line of business was the formation of a joint venture between Wheelabrator Technologies and Waste Management International. Under this agreement, Waste Management International will develop facilities in Italy and Germany, where it has existing energy operations. Wheelabrator will have responsibility for early-stage marketing and general development of projects in other international markets. When a project is deemed viable, Waste Management International will have the right to acquire up to 49 percent of the equity in that project. Domestically, our 16 trash-to-energy and seven cogeneration plants continue to provide us with solid, steady cash flow. In this mature domestic trash-to-energy marketplace, we continue to optimize plant performance and develop new technologies. A number of our U.S. facilities reached 10-year anniversaries in 1995, and we completed our newest facility, in Lisbon,Connecticut. s Environmental Engineering and Consulting This, our fourth line of business, provides engineering and scientific services to governmental and industrial clients worldwide, acts as a catalyst for the marketing of our other global environmental services and serves as the source for leading-edge technology among the WMX companies. In performing these roles, this business, called Rust Consulting, has achieved significant success. Rust ranks among the world's top 10 environmental and design consultants. Its work includes commercial and engineering services for the development of the Barker power station and desalinization project in Oman; ongoing oversight of two Total Environmental Restoration Contracts for the U.S. Department of Defense; and development of an environmental master plan for Shanghai, China under contract to the World Bank. Rust has provided critical assistance to WMX companies, particularly in the solid waste area, where its joint projects ranged from the SENT landfill in Hong Kong and the Boston Central Artery project to composting facilities for private and public customers in Switzerland, Germany and Turkey. Rust Consulting employs approximately 4,400 people in 120 offices in over 35 countries, and uses strong local management to develop close relationships with customers and provide services around the globe. Management Changes A final element of our strategy is to align our management team to deliver on our commitment to develop a truly global organization. With this in mind, we reorganized our Management Committee. It includes the heads of our business groups and our senior corporate executive team.They meet regularly to unify our plans, monitor the implementation of recommendations from our strategic review and pursue initiatives to take advantage of the synergies among our operating units.We also are working to enhance six key areas—strategic planning, capital allocation, technology, leadership development, communications and management systems. • We also named a team to head our global lines of business. Phil Rooney, Chairman of Waste Management,heads our waste services line of business.The Clean Energy group is led by John Kehoe, President and Chief Operating Officer of Wheelabrator Technologies. John Goody, a Vice President of Wheelabrator and the Chief Executive Officer of Wheelabrator Water Technologies, is directing our Clean Water business. Tom Leonhardt was named President of Rust Consulting and will lead our environmental engineering and consulting activities. Along with these appointments, Joe Holsten was elected Chief Executive of Waste Management International and Ed Falkman was named Chairman of its Board. Together they have led the restructuring of our international operations. Herbert A. Getz was elected a Senior Vice President of the Company in May. He also serves as General Counsel and Secretary. William Hulligan was elected Executive Vice President of Waste Management in January 1996. Bill will assist Phil Rooney in leading the North American waste services line of business. In February 1996, he was also named Chairman of our Waste Management of New York business unit and will be responsible for managing our New York City area business expansion. Dr. James B. Edwards, President of the Medical University of South Carolina and former U.S. Secretary of Energy,was elected to our Board of Directors in May 1995. 'A Quarter Century of Service,A Lifetime Commitment to the Environment' Denise Daniels, a Waste Management of St. Louis Marketing Specialist, coined this theme in honor of our 25th anniversary. It embodies the spirit of our Company and people, and pays tribute to our values. Most important, it also holds us accountable to an unshakable contract for the future, a contract of respect for our customers, our people, our stockholders and our environment. 10 Together we are delivering superior environmental services through a global organization, one seamlessly molded by our skilled people, four lines of business, and 25 years of solid experience. We believe there is no other environmental company whose reach around the world is as vast—or whose range of advanced technologies and services is as proven. These capabilities will help us improve the returns on the assets we have assembled over 25 years. At the same time, we are absolutely committed to nurturing a Company culture in which every person associated with us—employee, stockholder or customer—is proud to be a part of WMX. We are enthusiastically approaching the next 25 years and all its uncertainties with resolve, knowledge and experience.We are excited to play a critical role in shaping tomorrow's world and, heeding the spirit of Denise Daniels' words, we plan to harvest our quarter-century of progress into a lifetime of environmental protection and preservation. Dean L. Buntrock Chairman of the Board Phillip B. Rooney President • s:, I EnWIDYwar fMfpy fi Untied S Lates,Canada, Worldwide:64,000 The Company is capability,introduced Management is aggres- Medco, kustria, pursuing a strategy customer service sively pursuing the De ,Finland, that balances internal facilities,improved sharing of best practices France,Germany,Italy, growth and selected customer satisfaction across the globe to The Nvdierlands,Spain, acquisitions to increase and launched"Business leverage the expertise Sweden United Kingdom, market share and fully Improvement 2000,"a of its people,technolo- Bm rici,I long Kong, use its operating net- program designed to gies and assets. i.. Ind inesJ a,Malaysia, work.The Company enhance its systems to TatdNan, d, has improved its sales deliver service. A ,New Zealand, Argy. and Brazil UQFW S 2tes,Germany, Worldwide: 1,800 The Company is posi- tion of power plants plans to add consistent Italy,S n and tioned to capitalize on that use waste fuels to value to its operating the�Peo le's Republic its project management generate clean energy, trash-to-energy and of China and operating expertise the Company is pursu- independent power to develop international ing new opportunities plants,integrating new energy projects.With a to serve global commu- environmental tech- unique core compe- nities,multi-national nologies,recycling ';... tence in the design, companies,govern- systems and providing development,financing, ments and major disposal services for ownership and opera- industrial customers.It specialty wastes. y � Urged Slates,Canada, Worldwide:3,000 The Company is a The Company plans of industrial water Mel ko, ustralia, leadingworldwide to enhance its position and wastewater treat- Belgium France, provider of water, through long-term ment,and provide �c Get viam,India, wastewater and operating contracts comprehensive systems Ind linesi t,Ireland,Israel, biosolids services and public/private to reuse and recycle lulttai I,Japm,Malaysia, supported by a strong partnerships with process water. The base of advanced municipalities.In addi- Spain, water technologies and tion,the Company :... and Taiwan process knowledge. will seek outsourcing Thopugh t the Worldwide:4,400 The Company provides continue to serve as the industrial clients, Untied S ates and its environmental engi- environmental technol- it expects to be a Latin America,Europe, neering,consulting and ogy and consulting catalyst to WMX as r Y Middle East,Africa scientific services to provider for the WMX the Company markets xi and cific a market that includes affiliated companies. environmental services j governmental and Additionally,as it serves on a global basis. industrial clients.It will goveinmental and i 13 WMX Technologies,Inc.and Subsidiaries Consolidated Selected Financial Data For the ten years ended December 31 (000's omitted except per share amounts) Revenue Costs and expenses Special charges Gains from stock transactions of subsidiaries and exchange of Exchangeable LYONS Other expense Income from continuing operations before income taxes Provision for income taxes Income from continuing operations Income(loss)from discontinued operations Income before extraordinary item and cumulative effect of accounting changes Extraordinary item,net of income taxes Cumulative effect of accounting changes Net income Average common and common equivalent shares outstanding Earnings(loss)per common and common equivalent share: Continuing operations Discontinued operations Extraordinary item Cumulative effect of accounting changes Net income Dividends per share December 37, Property and equipment,net Total assets Long-term debt Stockholders'equity Notes: (1)The results for 1986 include a non-taxable gain of$234,031,000 resulting (4)The results for 1990 include an extraordinary charge of$24,547,000 from the initial public offering of 18.9 percent of the common stock of reflecting the Company's percentage interest in the writedown by WTI of Chemical Waste Management,Inc.("CWM")in October 1986,as well as WTI's investment in the stock of The Henley Group,Inc.and Henley special charges of$158,268,000(before tax)for restructuring charges related Properties Inc.to market value. to certain facilities not transferred to CWM prior to its public offering and (5)The results for 1991 include a special charge of$296,000,000(before asset revaluations related to the writedown of non-operating assets. tax and minority interest),primarily to reflect then current estimates of the (2)The results for 1988 include a gain of$18,313,000(before tax)resulting environmental remediation liabilities at waste disposal sites previously used from the Wheelabrator Technologies Inc.("V77")transaction. or operated by the Company and its subsidiaries or their predecessors. (3)The results for 1989 include a non-taxable gain of$70,826,000 resulting (6)The results for 1992 include a non-taxable gain of 5240,000,000 from the public offering of 5,000,000 shares of common stock of CWM (before minority interest)resulting from the initial public offering of Waste and special charges of$112,000,000(before tax),principally relating to a Management International plc,('WM International")as well as special provision for the future impact of the then anticipated federal Subtitle D charges of$219.900,000(before tax and minority interest),primarily related to regulations which govern post-closure liabilities related to the Company's writedowns of the Company's medical waste business,CWM incinerators in solid waste landfills.These charges also include provisions for costs relating Chicago,Illinois and Tijuana,Mexico and a former subsidiary's investment in to certain hazardous waste facilities not transferred to CWM prior to its its asbestos abatement business and certain restructuring casts incurred by the initial public offering;the restructuring of the Company's lawn care and subsidiary and CWM related to the formation of Rust International Inc("Rust'). pest control businesses:and the final writedown of the Company's ocean incineration business. 14 _ 1986 1987 1988 1989 1990 1991 1992 1993 1994 _1995 $1,997,817 $2,729,482 $3,528,393 $4,413,742 $ 6,034,406 5 7,550,914 S 8,66.,027 S 8,636,116 $ 9,554.705 $10,247,617 $1,534,917 $2,102,169 $2742,214 $3,476,018 $ 4,866,382 S 6.137,936 S 7,070,953 a 7104,115 $ 7,811.280 $ 8,337,188 158,268 - - 112,000 296,000 219,900 550,000 - 335,193 (234,031) (160) (1,659) (89,317) (52,948) (53,516) (263,680) (15,109) - 31360 26,207 23,366 38,540 47,798 142,595 235042 208,812 379.960 40003 $ 507,303 s 601,266 $ 764,472 $ 876,501 $ 1173,174 $ 1,027,899 S 1,398,412 $ 788,298 $ 1,363,465 $ 1,171,633 136,373 274,188 300,249 314,366 463,865 421,576 47,237 345,867 586,974 517,043 $ 370,930 S 327,078 $ 464,223 $ 562,135 $ 709,309 $ 606323 S 92 1,175 $ 442,431 $ 776,491 $ 654,590 10345 7,890 (50,691) 370,930 5 327,078 $ 464,223 $ 562,135 $ 709,309 $ 606,323 S 92.,175 $ 452,776 $ 784,381 $ 603,899 - 24,547 - - - - 7J39 - - $ 37.0,930 S 327,078 $ 464,223 $ 562,135 $ 684,762 $ 6o6323 S 850,036 $ 452,776 $ 784,381 $ 603,899 421,815 449,146 453,711 459,727 476,580 493,167 493,948 485,374 484,144 485,972 $ .88 S .73 $ 1.02 $ 1.22 $ 1.49 $ 1.23 5 186 $ .91 $ 1.60 $ 1.35 - - - - .02 .02 (.Ill - - (.05) - - - - - (.14) - - $ .88 S .73 $ 1.02 $ 1.22 $ 1.44 $ 1.23 S 1.72 $ .93 $ 1.62 $ 1.24 $ .135 S .18 $ .225 $ .29 $ .35 $ .42 S .50 $ .58 $ .60 $ .60 $1,459,380 $1,963,661 $2,694,714 $3,659,118 $ 5,777,073 $ 6,692475 5 7,758,203 $ 8,769,459 $ 9,223.757 $ 9,765,699 $2,811,857 63387,588 $4,878,533 $6,405209 $10,518,243 $12772,310 514.11'1,180 $16264,476 $17,423,173 $18,695,308 $ 402,574 S 467,539 $1,270,286 $1,503817 $ 3,139,623 $ 3782.973 S 4,312511 $ 6,145,584 $ 6,044,411 $ 6,420,610 $1,580,264 51,885,253 $2,179,207 $2,738015 $ 3,673,017 $ 4133,100 S 4,319,645 $4,159452 $ 4,540,981 $ 4,942,339 (7)The results for 1993 include a non-taxable gain of$15,109,000,relating (10)In 1995,the Rust Boardof Directors approved a plan to sell or otherwise to the issuance of shares by Rust,as well as a special asset revaluation and discontinue Rusts process engineering construction,specialty contracting and restructuring charge of$550,000,000(before tax and minority interest) .similar lines of business.Accordingly,these businesses have been segregated recorded by CWM related primarily to a revaluation of its thermal treatment its discontinued operations in the financial statements since 1993.Tt is not business,and a provision of approximately$14,000,000 to adjust deferred practical to restate periods prior to the formation of Rust on January 1,1993, income taxes resulting from the 1993 tax It changefor the discontinued operations_ (8)The results for 1994 include a charge of$9,200,000(before tax and (11)Certain amounts have heen restated to conform to 1995 classifications. minority interest)recorded by Rust to write off assets and to recognize costs of exiting certain of Rust's service lines and closing offices in a consolidation of its other operations.This charge is included in casts and expenses. (9)The results for 1995 include a spedal charge of$140,600,000(before tax) recorded by CWM,primarily to write off its investment in facilities and tech- nologies that it abandoned because they do not meet customer service or performance objectives,and a special charge of 5194,600,000(before tax and minority interest)recorded by WM International relating to actions it is taking to sell or otherwise dispose of non-core businesses and investments,as well as core businesses and investments in low potential markets,abandon certain hazardous waste treatment and processing technologies,and streamline its country management organization. • 15 WMX Te(hnologies,Inc.and Subsidiaries Management's Discussion and Analysis Results Of Operations Consolidated Consolidated 1995 revenue from continuing focusing on streamlining business units,enhancing management operations of WMX Technologies,Inc.and its subsidiaries and planning processes,reducing operating costs and improving ("WMX"or the"Company')was S10.25 billion compared with profitability,improving customer satisfaction,and increasing $9.55 billion in 1994 and$8.64 billion in 1993. returns on capital and cash flow.As an outcome of these efforts, Consolidated 1995 net income was$603.9 million or 51.24 per management was realigned on the basis of four principal global share,compared with 5784.4 million or$1.62 per share in 1994 lines of business-waste services,clean energy,clean water,and and$452.8 million or$0.93 per share in 1993. Net income from environmental and infrastructure engineering and consulting ser- continuing operations was$654.6 million or 51.35 per share in vices. Executives were named to head each of these global lines 1995, $776.5 million or$1.6o per share in 1994,and$442.4 million of business.The shares of CWM and Rust owned by the public or$0.91 per share in 1993. were purchased by the Company.The management and sales Earnings from continuing operations during the three years organizations of Rust Industrial Services were integrated into the were impacted by special charges,gains from stock transactions waste services line of business to provide a seamless offering to of subsidiaries,and an increase in U.S.tax rates.The following industrial customers.Rust exchanged its remediation business table reconciles reported earnings per share from continuing in 1995 for an equity interest in OHM Corporation("OHM"). operations to earnings excluding such items: Wheelabrator Technologies Inc. ("X71")and WM International formed a joint venture in 1995 to develop trash-to-energy projects 1993 1994 1995 on a worldwide basis outside Germany,Italy and North America. Reported amount $0.91 $1.60 $1.35 A new management team at WM International completed an Gains on stock transactions extensive review of its operations and management structure of subsidiaries (0.02) to refocus on its core waste services business,and as a result Special charges(see Note 14 adopted a plan to sell or otherwise dispose of non-core to Consolidated Financial businesses and investments,as well as core businesses and Statements)- investments in low potential markets,abandon certain hazardous Chemical Waste waste treatment and processing technologies,and streamline its Management,Inc.("CWM") 0.59 0.19 country management organization.During the fourth quarter Waste Management International plc of 1995, the Company announced that Rust would sell or discon- CVM International") 0.23 tinue its process engineering,construction,specialty contracting Rust International Inc.(`Rust") 0.01 — and similar lines of business and focus on the environmental and Costs related to early infrastructure engineering and consulting business. Operating extinguishment of debt 0.01 results of the businesses to be discontinued have been segregated Adjustment to deferred income taxes from continuing operations in the Consolidated Statements of resulting from 1993 tax law change 0.03 Income and are not included in the analysis which follows. Amount excluding above items $1.51 $1.61 $1.78 The analysis of results of continuing operations which follows reflects the Company's traditional management structure of five The environmental service business has undergone significant principal subsidiaries,each of which has operated in a relatively change over the three-year period.Overcapacity in the hazardous discrete portion of the environmental services industry or geo- waste segment,an emphasis on waste minimization and recycling graphic area.WMI has provided integrated solid waste services as opposed to land disposal,increased competition for landfill and CWM has provided hazardous waste collection,transporta- volume,changes in government regulation,and slow growth in tion,treatment and disposal services in North America.WM the trash-to-energy market have affected the industry globally. International has provided these services,as well as trash-to- In addition,political uncertainty in Italy and economic conditions energy services,outside North America.WTI has been involved in France and Germany have further affected the Company's in trash-to-energy and independent power projects,water and international operations. wastewater treatment,and air quality control,primarily in North The Company has taken a number of steps to realign and America. Rust has served the engineering,construction,environ- restructure its business in response to these changing conditions mental and infrastructure consulting,and on-site industrial and to position itself for growth and improved profitability and related services market in the United Slates and a number into the 21st century.Hazardous waste operations have been of foreign countries. downsized and management of land disposal facilities has been Beginning in 1996,to conform to its new management structure, integrated into the Waste Management,Inc.("WMI")North the Company will report operating results along the four major American solid waste management organization.WMI itself was business lines discussed above. Note 13 to the Consolidated reorganized during late 1993 to flatten the organization and bring Financial Statements shows results of continuing operations for decision-making closer to the customer. During 1994,the 1993, 1994 and 1995 on a line-of-business basis,as well as on the Company commenced a major strategic review of its operations, hasis of the traditional management structure. 16 1994 Operations Compared With 1993 WMI WMFs revenue grew 8.80/6 to$5.12 billion in 1994 compared outside an eight state region in the southeastern United States with$4J0 hillion in 1993. Revenue growth occurred in all service (Southeast Compact')after June 30, 1994. Event business lines as shown in the following table: (revenue from relatively larger,typically non-recurring projects) Residential 4.60/(, was 9.0%of revenue in 1994 compared to 10.6%in 1993.The Commercial 81 decline in event business revenue was primarily the result of Rolloff and industrial 11A reduced off-site disposal firrm environmental cleanup projects. Disposal,transfer and other 11.5 During 1993,CWM completed a study of its business and began a strategic reconfiguration of its operations to meet then-current Price increases accounted for revenue growth of approximately market demand In connection therewith, CWM recorded a charge 1.5%.WMI focused on pricing on a customer-by-customer basis of 5550 million before tax, including 5381 million to write down and sought increases when and where appropriate. Pricing in the assets,primarily incinerators,and$169 million for cash expendi- commercial,rolloff and industrial lines generally continued the tures to be made as part of a program to reduce costs and improve positive trend begun in the fourth quarter of 1993. Residential efficiency.This restructuring was completed in 1994 and suhstan- work remained extremely competitive and disposal pricing varied tially all cash expenditures were made. As a result,overhead, by region,but generally improved during the year.Higher recy- including depreciation and amortization,was reduced in 1994 clable commodity prices,which can vary significantly from year by approximately S60 million on an annualized basis. to year,helped 1994 results. Volume increases accounted for Operating expenses declined as a percentage of revenue in revenue growth of 7.800%despite the negative impact of the loss 1994 to 70.0%compared to 76.5%in 1993. Benefits from the of volume from the contract to dispose of debris from I Iurricane restructuring were partial1v offset by severe weather in the north- Andrew in 1993 and the loss of a disposal contract for the City of east portion of the United,States during the first quarter,which Philadelphia as of July 1, 1994.The increase in disposal, transfer delayed projects and hampered operations, and a shift of revenue and other revenue was aided by special waste volume, which mix toward lower margin services.Selling and administrative increased over 20%,and recycling,which grew 29%(including expenses declined 522.3 million in 1994 on an absolute basis and the impact of higher commodity prices discussed above). Revenue were reduced from 19.3%of revenue to 16.3%, primarily as a decreases due to businesses sold exceeded revenue from acquisi- result of the restructuring. tions by approximately 0.5%in 1994,primarily the result of the ryTT WTt revenue increased 160/b to$1.32 billion in 1994. sale during the first quarter of that year of WMI's Modulaire" Businesses acquired in 1993 and 1994 contributed approximately mobile office business and certain other uncler-performing busi- 47%of the revenue increase,while incremental operating and nesses,coupled with reduced acquisition activity. construction revenue from new energy and water development Operating margins strengthened throughout the year following projects accounted for the remainder. Revenue from existing the 1993 reorganization discussed previously,and were 20.5% businesses was Flat in 1994 compared to 1993 of revenue compared with 20.4%in 1993.This improvement Consolidated revenue for the energy business line(which resulted from productivity increases,particularly in the selling includes WTI's air business)grew$83.1 million,or 11'%q in 1994 and administrative areas where expenses remained relatively to 5844.7 million. Revenue from trash-to-energy and independent constant in dollars and declined as a percentage of revenue, power facility operations grew$98.2 million from the prior year stronger pricing and increased volume,partially offset by higher level and generated approximately 82%of the 1994 revenue for costs of operating disposal facilities to comply with more stringent this business line compared with 78%in 1993.Air-related husi- environmental regulations. nesses were responsible for the halance of the revenue during CWM CWM revenue continued to decline in 1994, to hoth periods. Construction revenue on the Lisbon,Connecticut, $649.6 million from $661.9 million in 1993.The following table it facility provided half of the energy business analyzes revenue changes in 1994 compared with 1993growth.The third quarter 1994 commencement of commercial operations at the Falls Township trash-to-energy facility in Percentage Pennsylvania and the wood waste and scrap tire-fueled Ridge Increase,'(Decrease) Generating Station in Florida provided an additional 25%of the Price 2.90/6 revenue growth.Excellent plant operating performances,coupled Volume (7.2) with a shift in the mix of waste received at the trash-to-energy Purchased businesses 2_4 plants from lower-priced spot tons to generally higher-priced Total (1.9)% contract tonnage accounted for the remainder.Air business revenue fell in 1994 primarily because of an expected lull in air Price and volume increases for low-level radioactive waste pollution control retrofit activity by utilities between Phases I services,which increased revenue by 3.1%,were more than and II of the Clean Air Act Amendments of 1990.In addition, offset by a continuation of industry conditions which negatively many industrial customers delayed awards for air quality control impacted the remainder of the hazardous waste indusuv.The equipment purchases in response to economic uncertainty and strong results in the low-level radioactive waste services line to rule-making delays and limited enforcement activities by the resulted from the acceleration of volume received at CWM's U.S. Environmental Protection Agency. disposal facility in Barnwell,South Carolina, in anticipation of a Energy operating income increased to$247.0 million or state deadline which denied access to that facility to customers 29.2%of revenue in 1994, versus$208.7 million. or 27.4%of revenue, in 1993.The addition of the Falls Township and Ridge 17 facilities,modest improvement in gross margin,and a decline increase was obtained on the municipal contract in Buenos Aires, in selling and administrative expense were responsible for this Argentina.The volume increase in 1994 related primarily to con- improvement,despite Lisbon construction revenue having no struction activity on the solid waste SENT landfill in Hong Kong. associated margin recognition.Integration of acquired air busi- Economic and competitive pressures caused volume declines in nesses and a decrease in energy-related project development Italy,France,and Germany, which were more than offset by expenditures in response to limited market opportunities caused volume increases in other countries. selling and administrative costs to decrease in 1994 in both Revenue increases from acquisitions slowed in 1994 compared absolute terms and as a percentage of revenue. to 1993.With WM International well positioned in many of its Water revenue increased$97.1 million to$489.3 million in 1994, markets,it focused primarily on"tuck-in"acquisitions(small a 25%increase from the 1993 level of$392.2 million.Acquisitions acquisitions in markets where it already had a support staff)and contributed approximately$81.5 million or 84%of this revenue became more selective with respect to acquisitions. growth,and expanded W ITs presence in the industrial water and A significant portion of WM International's revenue arises in wastewater treatment markets while increasing the breadth of currencies other than pounds sterling(its reporting currency)or WTI's technology and process offerings.The full year impact of U.S. dollars.As a result,foreign currency movement has had and the New York Organic Fertilizer Company("NYOFCO")biosolids will continue to have an impact on reported revenue,expenses pelletizer facility,which began commercial operations in the third and net income,stated in both pounds sterling and U.S.dollars. quarter of 1993,accounted for an additional$35.5 million of incre- Both the Company and WM International periodically engage mental 1994 revenue. Increased 1994 revenue from sales of water in hedging transactions intended to mitigate currency risk. process systems and equipment to industrial customers was offset See"Derivatives.' by a decline in revenue from water,wastewater,and biosolids Operating expenses increased to 72.7%of revenue in 1994 contract service operations and curtailed equipment procurement compared to 71.5%in 1993 due to higher labor costs and pricing by municipal customers. pressure in Italy, pricing pressure in Germany and France,and Operating income from the water business line increased flow control issues and landfill permitting delays in Italy and 22%to$41.1 million or 8.4%of revenue in 1994 compared with France.Selling and administrative expenses decreased to 13.4% $33.7 million or 8.6%of revenue in 1993.Gross margin declined of revenue in 1994 compared with 14.1%in 1993 as a result of the to 24.5%of revenue in 1994 versus 24.9%in 1993 because of impact of"tuck-in"acquisitions,a higher revenue base to absorb competitive pricing pressures in the equipment product lines the cost of corporate and country management and administrative and faster relative growth of the process systems business,which infrastructure, integration of acquired businesses,and a continued is typically lower margin in nature. Selling and administrative focus on improved productivity and administrative cost reduction. expenses declined slightly in 1994 as a percentage of revenue Rust Rust's 1994 revenue from continuing operations was as a result of consolidation of acquisitions partially offset by increased own/operate development expenditures. $1.14 billion compared with billion i1993,an increase /o of 10.2%. Revenue growth by line line of business ss is shown in the WMlnternational WM International is a U.K. corporation following table($000's omitted): which prepares its financial statements in pounds sterling under accounting principles prevailing in the United Kingdom. Such Pee Increase accounting principles differ in certain respects from those gener- allyaccepted in the United States("US GAAP").The discussion Engineering and and analysis of WM International is based on US GAAP financial consulting services $ 298,879 $ 425,058 42.20/o statements with pounds sterling translated to U.S.dollars at the Remediation and rate used to translate WM International financial statements for industrial services 704,360 715,236 1.5% inclusion in the Company's consolidated financial statements. Asbestos abatement 31,765 N/A Stated in U.S.dollars,WM International revenue grew by Total $1,035,004 $1,140,294 10.2% 32997 million or 21.2%to$1.71 billion in 1994 compared with$1.41 billion in 1993.Components of revenue change In May 1993,Rust transferred its asbestos abatement business are as follows: to NSC Corporation("NSC")in exchange for a 41°%equity interest in NSC and NSC's ownership interest in two industrial services Percentage Increase businesses.Excluding the effect of the asbestos abatement busi- Price 1.71% ness,revenue increased 13.7%in 1994 compared with 1993 Volume(including start-ups) 8.9 Engineering and consulting services revenue grew by 42.2%in Purchased businesses 9.4 1994.The full year impact of 1993 acquisitions and domestic and Foreign currency translation 1.2 foreign 1994 acquisitions resulted in revenue growth of 35.5%. Total 21.211,lo The balance came from increases in existing businesses. -- - Remediation and industrial services revenue grew by 1.5%in Lower inflation and weak economic conditions in many 1994.Growth was the result of the full year impact of 1993 aequisi- European countries constrained WM International's ability to tions.Revenue in existing businesses declined due to severe increase prices in 1994. In Italy,where a substantial portion of weather in the first quarter and delays by scaffolding and industrial its business is municipal contracts,renewals during much of customers of scheduled plant maintenance.In addition,the antici- 1994 were consistently at reduced prices.However,a price pared award of a large Federal remedial contract was delayed. 18 In December 1994, Rust signed an agreement with OHM to expenses were 132%of 1994 revenue compared with 12.7%of acquire an approximately 37°%interest in OHM in exchange for 1993 revenue.The increase in 1994 is attributable to the lower Rust's remediation services business.This transaction was revenue base in existing businesses and to acquisition activity, completed in May 1995.For 1994,the business transferred had which typically initially increases these costs,although it is antici- revenue of$231.1 million and operating income(after operating pated that such expenses will decline as a percentage of revenue selling and administrative expenses)of$6.0 million. as the acquired companies are integrated into existing operations. Revenue from affiliated companies was$118.3 trillion in 1994 In 1994, Rust recorded a pretax charge of$92 million for the compared with$112.8 million in 1993 write-off of assets and the recognition of one-time costs incurred Excluding the charge discussed in the following paragraph, in the fourth quarter in connection with the discontinuance of its operating expenses were 79.70/6 of revenue in 1994 compared marine construction and dredging operations,and the closing of with 78.1%in 1993, partially the result of severe weather in the offices in a consolidation of its other operations.After tax and first quarter and delayed projects which resulted in less efficient minority interest,the charge reduced the Company's net income personnel utilization.In addition, 1994 saw a shift in revenue mix by$0.01 per share. in favor of lower margin businesses.Selling and administrative 1995 Operations Compared With 1994 WMI Revenue for WMI was$5.64 billion in 1995 compared with 60%interest in Advanced Environmental Technology Corporation. $5.12 billion in 1994,an increase of 10.3%. 1995 revenue growth In addition, unusually high revenue in the second quarter of 1994 by line of business is shown in the following table: at CWM's Barnwell,South Carolina, low-level radioactive waste Residential 630/6 disposal facility adversely impacted 1995 comparisons. However, Commercial 7.5 during June 1995,South Carolina approved legislation which Rolloff and industrial 7.5 extended the authorized life of the Barnwell site until its permitted Disposal,transfer and other 20.3 disposal capacity is fully utilized;previously,the site had been required to close at December 31, 1995.The legislation also again Revenue growth came from price(2.5 to 3%)and volume permitted acceptance of waste from outside the Southeast (6 to 6.5°%)increases,with acquisitions accounting for 10/4. Prices Compact. Event business continued to decline in 1995,to 7.7% of recyclable commodities continued the 1994 upward trend of revenue versus 9.0%in 1994. during the first six months of 1995,but then began moving Operating expenses increased as a percentage of revenue in downward and by the fourth quarter were below the levels of 1995 to 75.6%compared to 70.0%in 1994.The increase was the same period in the prior year. Beginning 1996,commodity a function of pressure on pricing, a lower revenue base, and a prices have been significantly below levels which were achieved shift in revenue mix toward lower margin technical services, in 1995 and management does not foresee these prices recovering which offset the benefit from personnel reductions.Selling and to 1995 levels during 1996. Volume growth was helped by a rela- administrative expenses declined in both absolute terms and as lively mild winter in 1995,whereas severe weather over a large a percentage of revenue as a result of personnel reductions. part of the country adversely affected the first quarter of 1994. During the first quarter of 1995,CWM recorded a pretax charge Volumes in 1995 were adversely impacted by the loss of the of$140.6 million, primarily to write off its investment in facilities disposal contract for the City of Philadelphia as of July 1, 1994. and technologies that it abandoned because they did not meet Revenue from recycling increased 71.9%in 1995 compared with customer service or performance objectives in the current market 1994 as a result of the favorable pricing discussed above, as well environment The percentages above exclude this charge. as WMI's marketing efforts and acquisition and construction of WTI WTI revenue increased 9.60h to$1.45 billion in 1995.Energy additional material recovery facilities. business line revenue was essentially Flat as higher revenue from Operating expenses were 675%of revenue in 1995 and 68.4%in operating energy plants was offset by lower construction revenue 1994.Milder weather in 1995,WMI's pricing effectiveness program, on the Lisbon facility and by a further decline in air business rev- improved safety performance,higher recyclable commodity prices, enue.Approximately 85%of the 542.3 million growth in revenue internalization of recycling processing,and continuing productivity from operating plants was accounted for by the Falls Township enhancements all contributed to the improvement.Selling and and Ridge Generating Station facilities which began operations in administrative expenses were 10.2%of revenue in 1995 compared 1994.Contractual price escalation on long-term trash disposal and with 10.8%in 1994.Although such expenses increased in absolute energy sale contracts, partly offset by curtailment of electrical put- dollars,productivity enhancements have enabled WMI to manage chases by certain utility customers,accounted for the balance of a higher revenue base with relatively modest selling and adminis- the operating plant revenue growth.Spot pricing,on the whole, trative expense increases,the majority of which result from was stable,although there were increases in certain markets offset acquisitions and pay-for-performance compensation plans. by declines in others,particularly Florida and the metropolitan CWM CWM revenue again declined in 1995 as waste minimiza- New York City area. Air business revenue declined$30.7 million to tion,recycling,over-capacity and shifting governmental regulation 15%of total energy revenue,reflecting a continuation of the indus- and enforcement continued to adversely affect the hazardous try-wide decrease in activity in the face of regulatory uncertainty. waste industry.Total 1995 revenue was$613.9 million compared Operating income from the energy business line grew$5.4 mil- with$649.6 million in 1994. Pricing and volume growth were lion to$252.4 million in 1995 and also increased as a percentage both negative,only partially offset by the 1995 acquisition of a of revenue to 30.11/o from 29.2%.Selling and administrative costs 19 were flat compared to 1994 both as a percent of revenue and in prices on rebids of municipal contracts in Italy.Acquisition activity absolute dollars,but operating margins improved due to cost con- continued to be below WM International's historical levels and - tainment efforts at operating energy facilities and less revenue on focused particularly on"tuck-in"acquisitions which can comple- the Lisbon facility where no margin was recognized. Development ment or expand existing operations in a given market.WM activity increased slightly because of activities associated with the International also increased its emphasis on acquisition and con- July 1995 joint venture agreement with WM International. struction of material recovery facilities to take advantage of a Revenue in the water business line increased$129.2 million continued emphasis on recycling as an alternative to land disposal. from$489.3 million in 1994 to$618.5 million in 1995,a 26% Operating expenses(excluding the special charge discussed increase.The full year impact of businesses acquired in 1994 below)increased to 75.6%of revenue in 1995 compared with provided approximately 64%of this increase.In 1995,WTI suc- 72.7%in 1994,a result of higher labor costs in Italy,continuing cessfully completed the privatization of the Miami Conservancy pressures on pricing,particularly in Italy and France,and disruption District wastewater treatment plant in Franklin,Ohio,the first of operations in France during the fourth quarter due to widespread privatization of a municipal wastewater treatment plant tinder strikes and industrial action against the government.Selling and Executive Order 12803 issued by President George Bush in 1992. administrative costs increased 2.5%in absolute terms but declined Approximately 4%of the 1995 revenue growth came from the as a percentage of revenue to 12.6%in 1995 from 13.4%in 1994 Baltimore I pelletizer facility,which began commercial operations due to the higher revenue base,the benefit of"tuck-in"acquisi- at the start of the year.Existing businesses accounted for the tions,and continued emphasis on productivity improvements. remainder of the revenue growth as WTI increased its biosolids Following a thorough review of its operations and management landspreading activities in California and experienced strong structure by a new management team,WM International worldwide demand for its surface cleaning and screen products. announced a fourth quarter pretax special charge of$194.6 mil- Operating income grew$9.6 million,or 23%,to$50.7 million and lion,related to actions it is taking to sell or otherwise dispose of represented 8.2%of 1995 water revenue. Faster relative growth of non-core businesses and investments,as well as core businesses the process systems business,which typically is lower margin in and investments in low potential markets,abandon certain haz- nature,and costs incurred to consolidate office and manufacturing ardous waste treatment and processing facilities,and streamline locations were the principal reasons for the slight operating mar- its country management organization.Approximately$34.3 mil- gin decline as a percent of revenue compared with 1994. Margins lion of this charge represents cash costs related to severance of in the contract services business improved compared with 1994 personnel and rents under noncancelable leases.Approximately due to cost reduction efforts,while equipment margins remained $11.2 million of the cash costs were paid prior to December 31, relatively stable and process systems margins declined slightly. 1995.The majority of the balance will be paid in early 1996, Selling and administrative costs increased$11.3 trillion in 1995 although certain rent payments on leased facilities will continue because of the full year impact of 1994 acquisitions,but declined into the future.WM International expects that upon completion as a percent of revenue to 14.5%,a result of a higher revenue base of these actions,overhead will be reduced by approximately and the integration of acquisitions into existing businesses. $20 million annually,which management plans to invest in new marketing initiatives and operational productivity enhancements. WM lnternallona/ WM International revenue, in U.S.dollars, However,the full benefit of these new programs will not be grew$154.2 million or 9.0%to$1.87 billion in 1995 compared reflected in the short term,and management has cautioned with$1.71 billion in 1994. Components of revenue change are WM International shareholders not to expect more than 5%to as follows: 10%growth in 1996 earnings. Percentage Rust Rust revenue from continuing operations decreased Increase/(Decrease) $112.9 million or 9.9%to$1.03 billion in 1995 compared with Price 1.8% $1.14 billion in 1994.Revenue by business line is shown in the Volume(including start-ups) (3.2) following table($000's omitted): Purchased businesses 4.5 Foreign currency translation 5.9 Percentage 1994 1995 Increase/(Decrease) Total 9.01Y0 Engineering and The major cause of the 1995 volume decline was the completion consulting services $ 425,058 $ 454,105 6.8% of the construction phase of the SENT landfill in Hong Kong, Industrial and which opened during the year.A new pricing mechanism intro- other services 484,178 511,102 5.6 duced by the Hong Kong government in March 1995,which Remediation _ 231,058 62,223 N/A requires generators to absorb a portion of the disposal cost for Total $1,140,294 $1,027,430 (9.9T/° waste brought to the Hong Kong incinerator,has resulted in vol- ume declines in certain waste streams,but the impact has been in May 1995,Rust exchanged its remediation business for an offset with other volumes.The future impact of these charges,on approximately 37%equity interest in OHM.Excluding the effect the incinerator and on the SENT landfill should they be extended of the remediation business,revenue increased 6.2%in 1995 to that facility,is uncertain.Pricing in Europe was negatively compared with 1994.This increase was the result of additional impacted in 1995 by relatively low inflation,highly competitive volume across existing businesses as the impact of acquisitions _ conditions in the solid waste market in France,softness in seg- was not significant.Revenue from affiliated companies declined ments of the hazardous waste market,and a continuation of lower to$89.7 million in 1995 from$118.3 million in 1994. 20 Backlog in continuing operations at December 31, 1995, of$349 million over their remaining terms, in addition,a portion was$476 million.down from$671 million at December 31, 1994. of any projects performed may be remediation work which Approximately$177 million of the 1994 backlog relating to the would now be performed by OHM. remediation business was transferred to OHM.The backlog Operating expenses were 79.5%of revenue in 1995 compared shown above does not include approximately$349 million with 79.7%in 1994.Selling and administrative expenses also at December 31, 1995, for several Department of Defense con- decreased to 13.1%of 1995 revenue from 13.21/6 of 1994 revenue. tracts, including two Total Environmental Restoration Contracts. These slight improvements were primarily the result of the elimi- There is no assurance that specific projects identified and per- nation of the relatively low margin remediation business. formed under these contracts will generate aggregate revenue Other Items Interest The following table sets forth the components of Minoritylnterese The minority interest in 1993 reflected the consolidated interest expense, net(5000's omitted): lower earnings of the Company's subsidiaries in that year and 1993 7994 19the minority interest(approximately$78.6 million)in the special 95 -- - -- -- -. 5 charge recorded by CWM. Minority interest in 1995 reflects the Interest expense $39031 $439,687 $506,207 repurchase of the public shares of CWM and Rust, as well as the Interest income (41,198) (34,488) (39,804) minority interest(approximately$41.3 million)in the special Capitalized interest (IW591) (104,512) (81,471) charge recorded by WM International. Interest expense,net $251,842 $300,687 $384,932 Sundry Income,Net Sundry income relates primarily to earnings Net interest expense has increased during the three-year recorded on the equity method from the Company's investments period,partially the result of an earlier management decision to in less than 50%-owned affiliates. In addition,CWM recognized increase the leverage of the Company. Debt levels increased in a gain in the first quarter of 1993 on the sale of shares of common 1993 to fund stock repurchase programs, acquisitions and capital stock of V7FI it had held for investment. expenditures,and approximately$130 million paid to acquire the Income Taxes In August 1993,the U.S. Congress passed and minority interest in a subsidiary of Rust.Debt Levels remained flat the President signed the Omnibus Budget Reconciliation Act of during 1994 but interest expense increased as a result of higher 1993,which, among other things, increased U.S. Federal income U.S. interest rates and the full-year impact of the 1993 borrowings. taxes for the Company and its domestic subsidiaries,retroactive The increase in debt in 1995 is primarily a result of the acquisition in certain cases to January 1, 1993.The provision for 1993 income of the public ownership of CWM and Rust.Capitalized interest taxes includes approximately$14.0 million to adjust deferred also declined substantially in 1995 as a number of significant income taxes as a result of this law.The consolidated income tax capital projects were completed and became operational near rate increased slightly in 1995 as it result of shifts in the sources the end of 1994. See'Financial Condition-Capital Structure.` of taxable income and the inability to realize tax benefits on a portion of the special charges. Accounting Principles Effective January 1, 1994,the Company adopted Statement of for fiscal years beginning after December 15, 1995.The Company Financial Accounting Standards CTAS")No. 112—Employers' does not believe the adoption of FAS No. 121 will have a material Accounting for Postemployment Benefits—and FAS No. 115— impact on the financial statements. Accounting for Certain Investments in Debt and Equity Securities. In October 1995,the FASB issued FAS No. 123—Accounting The adoption of FAS No. 112 did not have a material impact on for Stock-Based Compensation—which the Company also must the Company's financial statements as its previous accounting adopt in 1996.FAS No. 123 provides an optional new method of was substantially in compliance with the new standard.Other accounting for employee stock options and expands required than for short-term investments which were previously accounted disclosure about stock options.If the new method of accounting for in accordance with FAS No.115,the Company does not have is not adopted,the Company will be required to disclose pro significant investments of the type covered by that standard. forma net income and earnings per share as if it were.The The Financial Accounting Standards Board(`FASB")has issued Company is studying FAS No. 123 and is gathering data necessary FAS No. 121—Accounting for the Impairment of Long-Lived Assets to calculate compensation in accordance with its provisions,but and for Long-Lived Assets to Be Disposed Of—which is effective has not decided whether to adopt the new method or quantified its impact on the financial statements. Derivatives From time to time the Company and certain of its subsidiaries non-performance In addition,maximum credit exposure is repre- use derivatives to manage currency,interest rate,and commodity sented by the fair value of contracts with a positive fair value;at (fuel)risk.Derivatives used are simple agreements which provide December 31, 1995,such amounts were not inaterial.The impact for payments based on the notional amount,with no multipliers of derivatives on the Company's financial statements has not been or leverage.All derivatives are related to actual or anticipated significant. See Note 6 to Consolidated Financial Statements for instruments or transactions of the Company.While the Company further discussion of the use and accounting for such instruments. is exposed to credit risk in the event of non-performance by coun- Also see"Financial Condition—Capital Structure"for a discussion terparties to derivatives,in all cases such counterparties are highly of the Company's sale of put options in connection with its autho- rated financial institutions and the Company does not anticipate rized stock repurchase program. 21 Environmental Matters The majority of the businesses in which the Company is engaged and relative degree of responsibility of other PRPs who are jointly are intrinsically connected with the protection of the environment. and severally liable for remediation of the specific site,as well As such,a significant portion of the Company's operating costs as the typical allocation of costs among PRPs.These estimates and capital expenditures could be characterized as costs of envi- sometimes involve a range of possible outcomes.In such cases, ronmental protection.While the Company is faced,in the normal the Company provides for the amount within the range which course of its business,with the need to expend funds for environ- constitutes its best estimate.If no amount within the range mental protection and remediation,it does not expect such appears to be a better estimate than any other amount,then the expenditures to have a material adverse effect on its financial con- Company provides for the minimum amount within the range in dition or results of operations because its business is based upon accordance with FAS No. 5.See Note 7 to Consolidated Financial compliance with environmental laws and regulations and its ser- Statements for additional details regarding the Company's envi- vices are priced accordingly.Such costs may increase in the future ronmental liabilities. as a result of legislation or regulation; however,the Company Estimates of the extent of the Company's degree of responsibility believes that in general it benefits from increased governmental for remediation of a particular site and the method and ultimate regulation,which increases the demand for its services,and that it cost of remediation require a number of assumptions and are has the resources and experience to manage environmental risk. inherently difficult,and the ultimate outcome may differ from cur- As part of its ongoing operations,the Company provides rent estimates.However,the Company believes that its extensive for estimated closure and post-closure monitoring costs over experience in the environmental services business,as well as its the operating life of disposal sites as airspace is consumed.Such involvement with a large number of sites,provides a reasonable costs include a final cap and cover on the site,methane gas and basis for estimating its aggregate liability.As additional information leachate management,and groundwater monitoring. becomes available,estimates are adjusted as necessary.While the The Company has also established procedures to evaluate Company does not anticipate that any such adjustment would be potential remedial liabilities at closed sites which it owns or oper- material to its financial statements,it is reasonably possible that ated or to which it transported waste,including 106 sites listed technological,regulatory or enforcement developments,the results on the Superfund National Priority List("NPL")as of December 31, of environmental studies,or other factors could alter this expecta- 1995.In the majority of situations,the Company's connection tion and necessitate the recording of additional liabilities which with NPL sites relates to allegations that its subsidiaries(or their could be material.The impact of such future events cannot be predecessors)transported waste to the facilities in question,often estimated at the current time. prior to the acquisition of such subsidiaries by the Company. The Company spent$34.8 million, $58.8 million and$50.1 mil- The Company routinely reviews and evaluates sites requiring lion on remedial activities at closed sites in 1993, 1994 and 1995, remediation,including NPL sites,giving consideration to the respectively,and anticipates expenditures of approximately nature(e.g.,owner,operator,transporter,or generator),and the $48.5 million in 1996. extent(e.g.,amount and nature of waste hauled to the location, The Company has filed suit against numerous insurance number of years of site operation by the Company,or other rele- carriers seeking reimbursement for past and future remedial, vant factors)of the Company's alleged connection with the site, defense and tort costs at a number of sites.The carriers involved the accuracy and strength of evidence connecting the Company have denied coverage and are defending these claims.No amounts to the location,the number,connection and financial ability have been recognized in the financial statements for any future of other named and unnamed potentially responsible parties insurance recoveries. ("PRPs"),and the nature and estimated cost of the likely remedy. The Company and certain of its subsidiaries are named as defen- Where the Company concludes that it is probable that a liability dants in personal injury and property damage lawsuits,including has been incurred,provision is made in the financial statements. purported class actions,on the basis of a Company subsidiary's Cost estimates are based upon management's judgment and expe- having owned,operated or transported waste to a disposal facility rience in remediating such sites for the Company as well as for which is alleged to have contaminated the environment or,in cer- unrelated parties,information available from regulatory agencies tain cases,conducted environmental remediation activities at such as to cost of remediation,and the number, financial resources sites.See"Financial Condition—Risks and Uncertainties." Financial Condition Liquidity and Capital Resources The Company had working defines as"owners'cash flow,"is available to make acquisitions, capital deficits of$400.1 million at December 31, 1995,and reduce debt,or repurchase common stock.The Company has $115.6 million at December 31,1994,the result of emphasis on increased its emphasis on raising the level of owners'cash flow, minimizing working capital requirements.The Company operates which was$518 million in 1995 and,based on budgeted levels in a service industry with neither significant inventory not sea- of net income,capital expenditures net of dispositions,and sonal variation in receivables,and accordingly,minimizing working capital, is expected to exceed$600 million in 1996.The working capital typically does not significantly affect operations. Company believes that it has adequate liquidity and resources Cash flow from operating activities,less net capital expenditures to meet its current needs for replacement capital and finance (other than acquisitions)and dividends,which the Company anticipated growth. 22 Acquisitions and Capital Expenditures Capital expenditures, The Boards of Directors of WMX and WTI have authorized their including 5443.5 million, $56.8 million and$154.1 million for respective companies to repurchase shares of their own common property and equipment of purchased businesses in 1993, 1994 stock(up to 25 million shares in the case of WMX and 20 million and 1995, respectively,are shown in the following table shares in the case of WTI)in the open market or in privately ($000's omitted): negotiated transactions.These programs extend into 1997.WTI repurchased approximately 3.3 million shares in 1994 and approx- 1993 1994 1995 [mately 7.2 million shares in 1995.WMX has not repurchased any Land(primarily of its shares in the last two years. disposal sites) S 660,226 $ 582,287 $ 517,162 During 1994 and 1995,in conjunction with its authorized Buildings and leasehold repurchase program,WMX sold put options on 31.6 million shares improvements 195,472 141,164 148,818 of its common stock.The put options give the holders the right at Vehicles 373,055 226,005 345,768 maturity to require the Company to repurchase its shares at speci- Containers 231,586 167,936 181,225 fied prices. Proceeds from the sale of put options are credited to Other equipment 702,374 395,022 348,102 additional paid-in capital.In the event the options are exercised, Total 52,162,713 $1,512,414 $1,541,075 the Company may elect to pay the holder in cash the difference - between the strike price and the market price of the Company's During 1993,the Company and its principal subsidiaries acquired shares, in lieu of_epurchasing the stock. 189 businesses for$715.7 million in cash and debt(including debt Options on 17.9 million shares expired unexercised,as the assumed), 1,046,801 shares of WMX common stock and 1,635,471 price of the Company's stock was in excess of the strike price shares of WTI common stock.During 1994, 119 businesses were at maturity. Options on 4.7 million shares were exercised in acquired for$214.5 million in cash and debt(including debt February 1995, and the Company elected to settle them for cash assumed),73,809 shares of the Company's common stock and in the amount of$12.0 million,which was charged to paid-in 156,124 shares of WTI common stock. 136 businesses were capital.The remaining 9.0 million options expire at various dates acquired in 1995 for$302.0 million in cash and debt(including in 1996,at strike prices ranging from $27.34 to$31.45 per share, debt assumed)and 21236,354 shares of the Company's common The Company may sell additional put options in 1996. stock.The Board of Directors has approved a capital expenditure During 1994,the Company formed an Employee Stock Benefit budget of$1.2 billion(excluding acquisitions)for 1996.The Trust and sold 12.6 million shares of treasury stock to the Trust in Company currently expects to finance capital expenditures,as return for a 30-year,7.33%note with interest payable quarterly and well as any acquisition activity,through cash flow from operations, principal due at maturity.The Company has agreed to contribute The Company believes that it has adequate resources to finance to the Trust each quarter funds sufficient,when added to dividends any attractive acquisitions that become available. on the shares held by the Trust,to pay interest on the note as well Capital Structure Through 1993,the Company financed capital as principal outstanding at maturity.At the direction of an adminis- expenditures and acquisitions primarily through the use of debt, trative committee comprised of Company officers,the Trustee will taking advantage of favorable interest rates. Beginning in 1994, use the shares or proceeds from the sale of shares to pay employee increased emphasis has been placed on cash flow and reducing benefits,and to the extent of such payments by the Trust,the leverage.The following table reflects the impact of these strate- Company will forgive principal and interest on the note. gies. However,although the Company generated$518 million Risks and Uncertainties During the first quarter of 1995, of owners'cash flow in 1995,the debt to equity ratios were WM International received an assessment of approximately adversely impacted by the purchase,discussed below,of the 417 million Krona(approximately$62 million)from the Swedish public shares of CWM and Rust,as these transactions reduced Tax Authority,relating to a transaction completed in 1990.WM minority interest and increased debt. International believes that all appropriate tax returns and disclo- Decemlxr 31 1993 1994 1995 sures were filed at the time of transaction and intends to --- - vigorously contest the assessment. Long-term debt as a percent A subsidiary of WMI has been involved in litigation challenging of total capital 49.4% 45.6% 46.5% a municipal zoning ordinance which restricted the height of its Short-term and long-term debt New Milford, Connecticut landfill to a level below that allowed as a percent of short-term debt by the permit previously issued by the Connecticut Department and total capital 52.5% 49.4o/u 50.7% of Environmental Protection("DEP").Although a tower Court had The above ratios include minority interest in subsidiaries declared the zoning ordinance's height limitation unconstitutional, and put options as part of total capital,and exclude project debt during 1995 the Connecticut Supreme Court reversed this ruling of WTI.A significant portion of WTI's debt is project debt,the and remanded the case for further proceedings in the Superior interest and principal of which is expected to be paid by cash Court.In November 1995,the Superior Court ordered the WMI generated from operations of specific projects. subsidiary to apply to the DEP for permission to remove all waste In January 1995,the Company acquired all of the approximately above the height allowed by the zoning ordinance.The Company 21.4%of the outstanding shares of CWM that it did not already believes that removal of such waste is an inappropriate remedy own,in return for convertible subordinated debt(see Note 5 to and has appealed the Superior Court order to the state Supreme Consolidated Financial Statements),In July 1995,WMX acquired Court.The Company is unable to predict the outcome of the the approximately 3.1 million Rust shares held by the public for $16.35 per share in cash. 23 appeal or the nature and extent of the removal action that may or other third parties,among other things.Accordingly, it is possi- ultimately be required following further appeals or as a result of ble such matters could have a material adverse impact on the the permitting process.However, if the Superior Court order as to Company's earnings for one or more fiscal quarters or years. removal of the waste is not modified,the subsidiary could incur In the ordinary course of conducting its business,the Company substantial costs,which could vary significantly,depending upon becomes involved in lawsuits,administrative proceedings and the nature of any plan which is eventually approved by applica- governmental investigations,including antitrust and environmen- ble regulatory authorities for removing the waste,the actual tal matters.Some of these proceedings may result in fines, volume of waste to be moved,and other currently unforeseeable penalties or judgments being assessed against the Company factors,and which could have a material adverse effect on the which, from time to time,may have an impact on earnings for Company's financial condition and results of operations in one a particular quarter or year.The Company does not believe that or more future periods. these proceedings,individually or in the aggregate,are material Since 1994,WTI had been involved in litigation concerning per- to its business or financial condition. mits for the construction and operation of the Lisbon,Connecticut, Outlook Although the Company believes that the actions trash-to-energy plant.These matters were resolved during 1995 taken over the past three years position it for long-term growth and the plant began commercial operations in January 1996. From time to time,the Company and certain of its subsidiaries and improved profitability in a rapidly changing environmental p Y services market,a number of challenges remain.The current are named as defendants in personal injury and property damage lawsuits,including purported class actions,on the basis of a tow level of recyclable commodity prices and severe weather in Company subsidiary's having owned,operated or transported many portions of the United States at the beginning of 1996 have waste to a disposal facility which is alleged to have contaminated adversely impacted WMI.As a result of slow growth in the domes- the environment or,in certain cases,conducted environmental tic trash-to-energy business,WTI's revenue mix has been shifting remediation activities at such sites. Some of such lawsuits may to the lower margin water business.Consequently WTI manage- ment does not anticipate 1996 earnings growth in excess of 10%. WM International continues to confront political and economic groundwater monitoring and health care examinations of allegedly affected persons for a substantial period of time,even uncertainty in some of its largest markets. where no actual damage is proven.While the Company believes To the extent they are within its control,the Company e that it has meritorious defenses to these lawsuits,their ultimate responding in these challenges with increased management focus resolution is often substantially uncertain due to the difficulty of on core businesses,higher productivity through use of Increastechnoled determining the cause,extent and impact of alleged contamina- tion ogy,and greater coordination among business units. Increased tion(which may have occurred over a long period of time),the emphasis is also being placed on cash flow and control of capital potential for successive groups of complainants to emerge,the expenditures.However,in light of the risk factors highlighted diversity of the individual plaintiffs'circumstances,and the poten- above,the Company anticipates that 1996 earnings per share tial contribution or indemnification obligations of co-defendants growth(on continuing operations before special charges)will he in the range of 5%to 10%($1.87 to$1.96). Report of Independent Public Accountants Te the Stockholders and the Board of Directors of WMX Technologies,Inc We have audited the accompanying consolidated balance sheets In our opinion,the financial statements referred to above present of WMX Technologies,Inc.(a Delaware corporation)and fairly, in all material respects,the financial position of WMX Subsidiaries as of December 31,1994 and 1995,and the related Technologies,Inc.and Subsidiaries as of December 31, 1994 and consolidated statements of income,cash flows,and stockholders' 1995,and the results of their operations and their cash flows for equity for each of the three years in the period ended December each of the three years in the period ended December 31,1995 in 31, 1995.These financial statements are the responsibility of the conformity with generally accepted accounting principles. Company's management. Our responsibility is to express an opin- ion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards.Those standards require that we plan and per- form the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.An audit Arthur Andersen LLP includes examining,on a test basis,evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation.We believe that our audits pro- Chicago,Illinois vide a reasonable basis for our opinion. February 5, 1996 24 WMX Technologies,Inc.and Subsidiaries Consolidated Statements of Income For the three years ended December 31, 1995 (000's omitted except per share amounts) 1993 1994 1995 Revenue $8,636,116 $9,554,705 $10,247,617 Operating Expenses $5,907,097 $6,543,687 $ 7,045,070 Special Charges 550,000 - 335,193 Goodwill Amortization 92,994 108,093 117,482 Selling and Administrative Expenses 1,104,024 1,159,500 1,174,636 Gains from Stock Transactions of Subsidiaries (15,109) Interest Expense 293,040 335,175 424,736 Interest Income (41,198) (34,488) (39,804) Minority Interest 52,749 145,760 94,359 Sundry Income,Net (95,779) (66,487) (75,688) Income From Continuing Operations Before Income Taxes $ 788,298 $1,363,465 $ 1,171,633 Provision For Income Taxes 345,867 586,974 517,043 Income From Continuing Operations $ 442,431 S 776,491 $ 654,590 Discontinued Operations: Income from operations,less applicable income taxes and minority interest of$15,765 in 1993,$11,757 in 1994 and$15,040 in 1995 $ 10,345 $ 7,890 $ 11,958 Provision for loss on disposal,less applicable income tax benefit and minority interest of$34,151 (62,649) Net income $ 452,776 $ 784,381 $ 603,899 Average Common and Common Equivalent Shares Outstanding 485,374 484,144 485,972 Earnings per Common and Common Equivalent Share., Continuing Operations $.91 $1.60 $1.35 Discontinued Operations- Income from operations .02 .02 .02 Provision for loss (.13) Net Income $.93 $1.62 $1.24 The accompanying notes are an integral pan of these statements. • 25 WMX Technologies,Inc.and Subsidiaries Consolidated Balance Sheets As of December 31,1994 and 1995 ($000's omitted except per share amounts) 1994 1991 Current Assets Cash and cash equivalents $ 123,348 $ 189,031 Short-term investments 19,704 36,243 Accounts receivable,less reserve of $64,361 in 1994 and$66,840 in 1995 1,878,064 1,880,934 Employee receivables 9,859 8,787 Pans and supplies 194,445 210,864 Costs and estimated earnings in excess of billings on uncompleted contracts 347,064 334,786 Prepaid expenses 379,895 360,404 Total Current Assets $ 2,952,379 $ 3,021,049 Property and Equipment at cost Land,primarily disposal sites $ 4,158,612 $ 4,575,117 Buildings 1,332,568 1,572,821 Vehicles and equipment 7,118,714 7,498,718 Leasehold improvements 91,180 87,986 $12,701,074 $13,734,642 Less-Accumulated depreciation and amortization (3,477,317) (3,968,943) Total Property and Equipment,Net $ 9,223,757 $ 9,765,699 OtberAssets Intangible assets relating to acquired businesses,net $ 3,718,282 $ 4,205,031 Sundry,including other investments 1,345,104 1,572,977 Net assets of discontinued operations 183,651 130,552 Total Other Assets $ 5,247,037 $ 5,908,560 Total Assets $17,423,173 $18,695,308 Current Liabilities --- Portion of long-term debt payable within one year $ 890,686 $ 1,094,165 Accounts payable 971,796 1,072,372 Accrued expenses 940,507 991,539 Unearned revenue 265,024 263,029 Total Current Liabilities $ 3,068,013 $ 3,421,105 Deferred items Income taxes $ 669,566 $ 956,525 Environmental liabilities 704,015 622,952 Other 607,694 684,452 Total Deferred Items $ 1,981,275 $ 2,263,929 Long-Term Debt,less portion payable within one year $ 6,044,411 s 6,420,610 Minority Interest in Subsidiaries $ 1,536,165 $ 1,385,366 Commitments and Contingencies $ S Put Options $ 252,328 $ 261,959 Stockbobiers'Equity Preferred stock,$1 par value(issuable in series); 50,000,000 shares authorized;none outstanding during the years $ - $ - Common stock,$1 par value; 1,500,000,000 shares authorized; 496,386,758.shares issued in 1994 and 498,817,093 in 1995 496,387 498,817 Additional paid-in capital 357,150 422,801 Cumulative translation adjustment (150,832) (102,943) Retained earnings 4,181,606 4,486,877 $ 4,884,311 $ 5,305,552 Less- 1988 Employee Stock Ownership Plan 19,729 13,062 Employee Stock Benefit Trust(12,386,629 shares in 1994 and 11,769,788 in 1995,at market) 323,601 350,151 -- Total Stockholders'Equity $ 4,540,981 $ 4,942,339 Total Liabilities and Stockholders'Equity $17,423,173 $18,695,308 The accompanying notes are an integral part of these balance sheets. 26 WMXTedmologies,Inc.and Subsidiaries Consolidated Statements of Stockholders' Equity For the three years ended December 31,1995 1988 (SooO's omitted except per share amounts) Employee Employee Additional Cumulative Stock Stock Common Paid-in Translation Retained Treasury Ownership Benefit Stock Capital Adjustment Earnings Stock Plan Trust Balance,January1,1993 $496,203 $708,296 $(166,566) $3,521,190 $ 204,490 534,988 $ - Net income for the year S $ $ - $ 454776 $ - 5 - $ - Cash dividends(S.58 per share) - - (280,858) - Stock repurchase(8,443,400 shares) - - 278,363 - - Stock issued upon exercise of stock options 14 (8,749) - (18,285) Treasury stock received in connection with exercise of stock options - -- 357 - - Tax benefit of non-qualified stock options exercised - 2,825 - - - Contribution to 1988 ESOP(362,036 shares) - - - - - (7,329) Treasury stock received as settlement for claims - - - 3,429 - - Stock issued upon conversion of LYONS - (4,553) - (7,882) - - Stock issued for acquisitions - (4,655) - - (35,375) Transfer of equity interests among controlled subsidiaries - (24,694) - - - - - Cumulative translation adjustment of foreign currency statements - - (79,021) Balance,December31,1993 $496,217 $668,470 $(245,587) $3,693,108 $425,097 527,659 $ Net income for the year S $ $ $ 784,381 $ S Cash dividends(S.60 per share) - - - (290,266) - - - Dividends paid to Employee Stock Benefit Trust - 5,617 - (5,617) - -- - Stock issued upon exercise of stock options (5,948) - - (8,250) - (5,928) Treasury stock received in connection with exercise of stock options - - - 26o - - Tax benefit of non-qualified stock options exercised - 1527 - - - - - Contribution to 1988 ESOP(375,312 shares) - - (7,930) - Treasury stock received as settlement for claims - - - - 2,741 - Stock issued upon conversion of LYONS 96 1,442 (56) Common stock issued for acquisitions 74 1,471 - Temporary equity related to put options - (252,328) - - - Proceeds from sale of put options - 29,965 Sale of shares to Employee Stock Benefit Trust (12,601,609 shares) (106,327) - - (419,792) - 313,465 Adjustment of Employee Stock Benefit Trust to market value - 16,o64 - - - 16,064 Transfer of equity interests among controlled subsidiaries - (2,803) Cumulative translation adjustment of foreign currency statements 94,755 -- - - Balance,December31,1994 $496,387 $357,150 $(150,832) 54,181,606 S - S19,729 $323,601 Net income for the year $ - $ - $ S 603,899 $ - S - $ - Cash dividends($.60 per share) - - (291,421) - - Dividends paid to Employee Stock Benefit Trust - 7,207 - (7,207) - - Stock issued upon exercise of stock options 44 (4,405) - (1,763) - (17,393) Treasury stock received in connection with exercise of stock options - - - 663 - - Tax benefit of non-qualified stock options exercised - 2,049 - - -- - Contribution to 1988 ESOP(322,508 shares) (6,667) - Treasury stock received as settlement for claims - - -- 1,100 - - Common stock issued upon conversion of LYONS 150 2,448 - Common stock issued for acquisitions 2,236 13,908 - Temporary equity related to put options - (9,631) Proceeds from sale of put options 21,622 - -- - - Settlement of put options (12,019) - -- - Adjustment of Employee Stock Benefit Trust to market value 43,943 43,943 Transfer of equity interests among controlled subsidiaries - 529 - Cumulative translation adjustment of foreign currency statements - 47,889 - - - Balance,December31,1995 $498,817 $422,801 $(102,943) 54,486,877 $ - $13,062 $350,151 The accompanying notes are an integral pact of[hese statements, r WMX Technologies,Inc.and Subsidiaries Consolidated Statements of Cash Flows For the three years ended December 31, 1995 Increase(Decrease)in cash($000's omitted) 1993 1994 1995 Cash flows from operating activities, Net income for the year $ 452,776 $ 784,381 $ 603,899 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 796,691 880,466 885,384 Provision for deferred income taxes 154,782 298,564 250,828 Minority interest in subsidiaries 57,986 149,703 138,162 Interest on Liquid Yield Option Notes(LYONS) and WMX Subordinated Notes 37,162 33,551 23,021 Gain on sale of property and equipment,and of investments by subsidiary (14,061) (14,876) (91190) Contribution to 1988 Employee Stock Ownership Plan 7,329 7,930 6,667 Gains from stock transactions of subsidiaries (15,109) - - Special charges,net of tax and minority interest 285,300 202,492 Provision for loss on disposal of discontinued operations, net of tax and minority interest 62,649 Changes in assets and liabilities, excluding effects of acquired companies: Receivables,net (112,489) (133,506) 45,232 Other current assets 41,038 (109,174) 48,214 Sundry other assets (29,445) (42,195) (72,282) Accounts payable 33,328 155,254 39,669 Accrued expenses and unearned revenue (298,214) 43,121 (227,700) Deferred items (24,015) (259,020) 61,557 Minority interest in subsidiaries (2,021) 14,038 (3,854) Net casbprovided by operating activities $ 1,371,038 51,808,237 $2,054,748 Cash flows from investing activities: Short-term investments S 35,911 S 2,755 $ (4,196) Capital expenditures (1,719,178) (1,455,628) (1,386,932) Proceeds from sale of property and equipment,and of investments by subsidiary 134,169 276,822 141,774 Cost of acquisitions,net of cash acquired (581,745) (197,201) (224,304) Other investments (185,256) (74,446) (44,193) Acquisition of minority interests (129,524) (8,200) (68,370) Net cash usedfov investing activities $(2,445,623) $(1,455,898) $(1,586,221) The accompanying notes are an integral part of these statements. 28 1993 1994 1995 Cash flows from financing activities: Cash dividends $ (280,858) $ (290,266) $ (291,421) Proceeds from issuance of indebtedness 3,407,759 1,710,586 1,803,383 _ Repayments of indebtedness (1,682,950) (1,752,552) (1,860,451) Proceeds from exercise of stock options,net 9,193 7,970 14,132 Contributions from minority interests 28,072 22,169 24,394 Stock repurchases by Company and subsidiaries (315,302) (49,665) (102,484) Preferred stock redemption by subsidiary (5,000) Proceeds from sale of put options 29,965 21,622 Settlement of put options (12,019) Net cash provided by(used for)financing activities $ 1,160,914 $ (321,793) $ (402,844) Net increase in cash and cash equivalents $ 86,329 $ 30,546 $ 65,683 Cash and cash equivalents at beginning of year 6,473 92,802 123,348 Cash and cash equivalents at end of year $ 92,802 $ 123,348 $ 189,031 The Company considers cash and cash equivalents to include currency on hand,demand deposits with banks and short-term investments with maturities of less than three months when purchased. Supplemental disclosures of cash flow information: Cash paid during the year for: Interest,net of amounts capitalized S 263,716 $ 307,257 $ 401,715 Income taxes,net of refunds received $ 331,803 $ 241,657 $ 283,165 Supplemental schedule of noncash investing and financing activities: LYONS converted into common stock of the Company $ 3,329 $ 1,594 $ 2,598 Liabilities assumed in acquisitions of businesses $ 673,129 $ 244,560 $ 245,918 Fair market value of Company and subsidiary stock issued for acquired businesses $ 64,500 $ 4,773 $ 66,172 WMX Subordinated Notes issued for acquisition of CWM minority interest $ - $ - $ 436,830 • 29 WMX Technologies,Inc.and Subsidiaries Notes to Consolidated Financial Statements (000s omitted in all tabese cgmPerrbare.mount,) NOTE 7 Business and Financial Statements WMX Technologies,Inc.and its subsidiaries("WMX"or the The accompanying financial statements are prepared on a "Company")provide environmental,engineering and consulting, consolidated basis and include the Company and its majority- and industrial services to governmental,residential,commercial, owned subsidiaries.All significant intercompany transactions and industrial customers on a worldwide basis in four core lines and balances have been eliminated. See Note 13 for details of of business:waste services,clean energy,clean water,and envi- certain financial information by subsidiary,line of business and ronmental and infrastructure engineering and consulting.Through geographic area. 1995,process engineering,construction,specialty contracting The preparation of financial statements in conformity with gen- and similar services were also provided through businesses the erally accepted accounting principles requires management to Company intends to exit(see Note 15).These businesses have make estimates and assumptions that affect reported amounts of been classified as discontinued operations and are segregated assets,liabilities, income and expenses and disclosures of contin- from continuing operations in the accompanying financial genies. Future events could alter such estimates in the near term. statements and notes thereto. NOTE 2 Summary of Accounting Policies Revenue Recognition The Company recognizes revenue from Contracts in Process Information with respect to contracts in long-term contracts on the percentage-of-completion basis with process at December 31, 1994 and 1995 is as follows: losses recognized in full when identified.Changes in project per- formance and conditions,estimated profitability and final contract 1994 1995 settlements may result in future revisions to costs and income. Costs and estimated earnings Other revenues are recognized when the services are performed. on uncompleted contracts $2,618,921 $2,510,898 Foreign Currency Certain foreign subsidiaries'assets and Less:Billings on uncompleted contracts (2,365,334) (2,253,867) liabilities are translated at the rates of exchange at the balance Total contracts in process $ 253,587 $ 257,031 sheet date while income statement accounts are translated at the Contracts in process are included in the Consolidated Balance average exchange rates in effect during the period.The resulting Sheets under the following captions: translation adjustments are charged or credited directly to stock- holders'equity. Foreign exchange losses(net of related income Costs and estimated earnings taxes and minority interest)of$529,000, $3,610,000 and$1,226,000 in excels of billings on are included in the Consolidated Statements of Income for 1993, uncompleted contracts $347,064 $334,786 1994 and 1995,respectively. Billings in excess of costs and estimated earnings Sbort-Term investments The Company's short-term investments on uncompleted contracts primarily consist of securities having an investment grade of not (included in unearned revenue) (93,477) (77,755) less than A and a term to maturity generally of less than one year, and because the investments have always been held to maturity, Total contracts in process $253,587 $257,031 are carried at cost. Such investments include tax-exempt securi- All contracts in process are expected to be billed and collected ties,certificates of deposit and Eurodollar time deposits. within five years. Effective January 1,1994,the Company adopted Statement of Accounts receivable includes retainage which has been Financial Accounting Standards("FAS")No.115, "Accounting for billed,but which is not due pursuant to contract provisions until Certain Investments in Debt and Equity Securities."The adoption completion.Such retainage at December 31,1995,is$23,095,000, of FAS 115 did not have a significant effect on earnings for 1994, including$6,724,000 that is expected to be collected after one year. since the Company's accounting prior to adoption was substan- At December 31,1994,retainage was$33,743,000. tially in compliance with the new standard. Property and Equipment Property and equipment(including EnvironmentalZiabilities The Company provides for estimated major repairs and improvements)are capitalized and stated closure and post-closure monitoring costs over the operating life at cost.Items of an ordinary maintenance or repair nature are of disposal sites as airspace is consumed.The Company has also charged directly to operations. Disposal sites are carried at cost established procedures to evaluate potential remedial liabilities at and to the extent this exceeds end use realizable value,such closed sites which it owns or operated,or to which it transported excess is amortized over the estimated life of the disposal site. waste,including 106 sites listed on the Superfund National Priority Disposal site improvement costs are capitalized and charged to List("NPL").where the Company concludes that it is probable that operations over the shorter of the estimated usable life of the a liability has been incurred,provision is made in the financial state- site or the improvement. mems,based upon management's judgment and prior experience, Preparation costs for individual secure land disposal cells are for the Company's best estimate of the liability.Such estimates are recorded as prepaid expenses and amortized as the airspace is subsequently revised as deemed necessary as additional informa- filled.Significant costs capitalized for such cells include excavation tion becomes available.See Note 7 for additional information. and grading costs,costs relating to the design and construction of liner systems,and gas collection and leachate collection systems. Unamonized cell construction cost at December 31, 1994 and 1995 was$154,100,000 and$187,689,000,respectively. 3o Depreciation and Amortization The cost,less estimated Gain Recognition on Sale of Subsidiaries'Stock It is the salvage value,of property and equipment is depreciated over Company's policy to record in income gains from the sale or other the estimated useful lives on the straight-line method as follows: issuance of previously unissued stock by its subsidiaries.No such buildings—10 to 40 years;vehicles and equipment—3 to 20 years; gains were recorded in 1994 or 1995. leasehold improvements—over the life of the applicable lease. Accounting Principles The Financial Accounting Standards Board Intangible Assets Intangible assets relating to acquired busi- ("FASB")has issued FAS No. 121,"Accounting for the Impairment nesses consist primarily of the cost of purchased businesses in of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," excess of market value of net assets acquired("goodwill").Such which is effective for fiscal years beginning after December 15, 1995. goodwill is being amortized on a straight-line basis over a period The Company docs not believe the adoption of FAS 121 will have of not more than forty years.The accumulated amortization of a material impact on the financial statements. intangible assets amounted to$458,167,000 and$572,587,000 as In October 1995,the FASB issued FAS No. 123,"Accounting for of December 31, 1994 and 1995, respectively. Stock-Based Compensation;'which the Company also must adopt On an ongoing basis,the Company measures realizability of in 1996.FAS 123 provides an optional new method of accounting goodwill by the ability of the acquired business to generate current for employee stock options and expands required disclosure about and expected future operating income in excess of annual amorti- stock options.If the new method of accounting is not adopted,the zation.If such realizabilky is in doubt,an adjustment is made to Company will be required to disclose pro forma net income and reduce the carrying value of the goodwill.Such adjustments have earnings per share as if it were.The Company is studying FAS 123 historically not been material to the Company's financial statements. and is gathering data necessary to calculate compensation in accor- dance with its provisions,but has not decided whether to adopt the Capitalized Interest Interest has been capitalized on significant new method or quantified its impact on the financial statements. landfills,trash-to-energy planta and other projects under construe- new in accordance with FAS No. 34.Amounts capitalized and Restatement Certain amounts in previously issued financial netted against Interest Expense in the Consolidated Statements statements have heen restated to conform to 1995 classifications. of Income were$100,591,000 in 1993, $104,512,000 in 1994 and $81,471,000 in 1995. NOTE 3 Income Taxes The following tables set forth income from continuing operations and the income tax provision,showing the components by gov- before income taxes,showing domestic and international sources, ernmental taxing authority,for the years 1993 through 1995: Income From Continuing Operations Before Income Taxes 1993 1994 1995 Domestic $616.805 $1,187,938 $1,167,120 International 171,493 175,527 4,513 $785.298 $1,363,465 $1,171,633 Income Tax Provision(Benefit) Current tax expense U.S.Federal $133,581 $ 215,569 $ 224,924 State and local 29.893 49,549 48,957 Foreign 36,410 30,611 42,810 Total current $199.884 $ 295,729 $ 316,691 Deferred tax expense U.S. Federal $ 87,'92 $ 215,644 $ 181,873 State and local 29.464 33,689 36,101 Foreign 32,327 44,507 (16,538) Total deferred $149,583 $ 293,840 $ 201,436 U.S.Federal benefit from amortization of deferred investment credit $ (3,600) $ (2,595) $ (1,084) Total provision $345,867 $ 586,974 $ 517,043 The Federal statutory tax rate.in 1993, 1994 and 1995 is reconciled to the effective tax rate as follows: Federal statutory rate 35.0°% 35.0% 35.0% State and local taxes,net of Federal benefit 4.9 4.0 4.7 Amortization of deferred investment credit (0.4) (0.2) RD Amortization of intangible assets relating to acquired businesses 4.2 2.2 2.8 Federal tax credits (1.4) (1.0) (12) Non-taxable gains on issuance of stock by subsidiaries (0.7) Minority interest 2.8 4.2 33 Adjustment of deferred income taxes due to Omnibus Budget Reconciliation Act 1.8 Other,net (2.3) (1.1) (0.4) Effective tax rate 43.90/6 43.1% 44.1% 31 The Company uses the deferral method of accounting for The Company's subsidiaries have approximately$37 million investment credit,whereby the credit is recorded in income over of alternative minimum tax credit carryforwards that may be used -.. the composite life of the related equipment. indefinitely.Various subsidiaries have U.S. Federal and foreign Deferred income taxes result from the recognition,in different operating loss carryforwards of approximately$530 million and periods,of revenue and expense for tax and financial statement state operating loss carryforwards of approximately$513 million. purposes.The primary components that comprise the 1994 and Foreign operating losses of$253 million may be carried forward 1995 deferred tax(assets)liabilities are as follows: indefinitely;the remaining loss carryforwards have expiration dates through the year 2010.Valuation allowances have been 1994 1995 established for uncertainties in realizing the tax benefits of loss Deferred tax assets carryforwards and for the basis difference in certain assets.While Reserves not deductible until paid $ (491,061) $ (526,202) the Company expects to realize the deferred tax assets in excess Deferred revenue (25,708) (24,472) of the valuation allowances,changes in estimates of future taxable Net operating losses and income or in tax laws could alter this expectation.The increase tax credit carryforwards (159,269) (266,898) in the valuation allowance since 1993 is primarily attributable to Other (69,812) (73,834) uncertainty in realizing the tax benefit of certain foreign operating Subtotal $ (745,850) $ (891,406) loss carryforwards. Deferred tax liabilities The Company has concluded that development and expansion Depreciation and amortization $1,103,194 $1,368,258 of its foreign business requires that the undistributed earnings Other233,600 381,068 of its foreign subsidiaries be reinvested indefinitely outside the United States. If the reinvested earnings were to be remitted,the Subtotal $1,336,794 $1,7_49,326 U.S.income taxes due under current tax law would not be material. Valuation allowance($29,890,000 at December 31,1993) _78,622 98,605 Net deferred tax liabilities $ 669,566 $ 956,525 NOTE 4 Business Combinations During 1993,the Company and its principal subsidiaries acquired of debt assumed,and 2,236,354 shares of the Company's common 189 businesses for$581,745,000 in cash(net of cash acquired) stock.Three of the aforementioned 1995 acquisitions,which other- —. and notes, $133,941,000 of debt assumed,1,046,801 shares of the wise met pooling of interests criteria,were not significant in the Company's common stock and 1,635,471 shares of common stock aggregate and,consequently,prior period financial statements of Wheelabrator Technologies Inc.("WTI").These acquisitions were not restated.The remaining acquisitions were accounted were accounted for as purchases, for as purchases. During 1994, 119 businesses were acquired for$197,201,000 The following summarizes the pro forma effect on continuing in cash(net of cash acquired)and notes, $17,305,000 of debt operations of businesses acquired and accounted for as purchases assumed,73,809 shares of the Company's common stock and (including those which otherwise met pooling of interests criteria 156,124 shares of common stock of WTI.These acquisitions were but were not significant in the aggregate)in 1993, 1994 and 1995 accounted for as purchases. as if they had been acquired as of January 1 of the preceding One hundred thirty-six businesses were acquired in 1995 for year(unaudited): $224,304,000 in cash(net of cash acquired)and notes,$77,689,000 1993 1994 1995 Revenue as reported $8,636,116 $ 9,554,705 $10,247,617 Revenue of purchased businesses for period prior to acquisition as stated above 555,218 477,040 161,868 Pro forma revenue $9,191,334 $10,031,745 $10,409,485 Net income as reported $ 442,431 $ 776,491 $ 654,590 Net income of purchased businesses for period prior to acquisition as stated above 9,753 32,498 7,237 Adjustment for interest and goodwill amortization (18,532) (29,066) (7,649) Pro forma net income $ 433,652 $ 779,833 $ 654,178 Earnings per share as reported $.91 $1.60 $1.35 Effect of purchased businesses prior to acquisition as stated above (.02) .01 Pro forma earnings per share $.89 $1.61 $1.35 In January 1995,the Company acquired all of the approximately WMX note for every 81.1 CWM shares held.See Note 5 for addi- 21.4%of the outstanding shares of Chemical Waste Management,Inc. tional information.In July 1995,the Company acquired all of the ("CWM")that it did not already own.The transaction provided for approximately 3.1 million shares of Rust International Inc.(`Rust") the CWM public shareholders to receive a convertible subordinated held by the public, for$16.35 per share in cash. 32 NOTE 5 Debt The details relating to debt(including capitalized leases, which are not material)as of December 31, 1994 and 1995,are as follows: 1994 1995 Commercial Paper,weighted average interest 5.W,,to 1994 and 5.7,16 in 1995 S 946,702 $1,119,356 Tailored Rate ESOP Notes,weighted average interest 4.81%6 in 1994 and 4.74%in 1995 SQ000 20,000 _ Debentures,interest 8%0/,,,due 2018 249,085 249,085 Notes,interest 41v,%to 8'/,'%q due 1996-2011 2,684,170 3184,170 Step-bp Notes,interest 6.2200%through April 29, 1997 and 8%thereafter,due 2004 150,000 150,000 Solid waste disposal revenue bonds,interest 6%to 7.750/o,due 1996-2013 252,385 251,085 Installment loans and notes payable, interest 5.34%to 10.61Yo,due 1996-2020 1,29$436 1,233,871 Project Debt,interest 41%to 10.641%,due 1996-2010 764,859 735,646 other long-term borrowings 34,320 32,210 Liquid Yield Option Notes,zero coupon-subordinated,interest 90/6,due 2001 10,721 8,945 Liquid Yield Option Notes,zero coupon-subordinated,interest 60/6,clue 2012("Ex(hangeable LYONS") 361,438 53,996 Liquid Yield Option Notes,zero coupon-subordinated,interest 6%,clue 2010('CWM LYONs`i 132,981 36,840 WMX Subordinated Notes,interest 5.75%,due 2005 439,571 Total debt $6,935.097 $7514,775 LesS�nrrent portion 890,686 1,094,165 Long-term portion $6,044,411 $6,420,610 The long-teen debt as of December 31,1995,is due as follows: annum(determined on a semi-annual bond equivalent basis)for purposes of determining the prices at which WMX may purchase Second year 5 761,091 or redeem notes, as described below.At the option of the holder, Third year 2,158,232 each note will he purchased for cash by WMX on March 15, 1998, Fourth year 261,103 and March 15,2000,at prices of$78995 and$843.03, respectively, Fifth year 1,132,816 which represent the stated issue price plus accrued stated discount Sixth year and thereafter 2,107,368 to those dates.Accrued unpaid interest to those dates will also be $6,420,610 paid.The notes will be redeemable by WMX on and after March Certain of the Company's borrowings are redeemable at the 15,2000,for cash.at the stated issue price plus accrued stated discount and accrued but unpaid interest through the date of option of the holders prior to maturity. Such amounts and certain redemption.In addition,each note is convertible at any time prior other borrowings which would otherwise be classified as current liabilities have been classified as long-term debt because the to maturity,unless previously purchased or redeemed by WMX, Company intends to refinance such borrowings on a long-term Into 26.078 shares of WMX common stock,subject to adjustment basis with S1.503,000,000 of committed long-term borrowing facili- upon the occurrence of certain events.Upon anv such conversion, WMX will have the option of paying cash equal to the market des which it has available.The committed facilities provide for value of the WMX shares which would otherwise he issuable. unsecured long-term loans at interest rates of prime or LIBOR As of December 31. 1995,there were 549,810 such notes outstand- plus 30 basis points and commitment fees of 6 to 8 basis points per annum.'['here are no compensating balance requirements' ing with a maturity value amounting to$549810,000. of any informal arrangements in connection with loans which As of December 31,1994,CWM LYONS and the Exchangeable LYONS(together with the CWM LYONS,the"LYONS")were con- would be made under these facilities. In January 1995,the Companv acquired the outstanding CWM vertible into or exchangeable for CWM shares.On January 24,1995, the LYONS became convertible into the number of notes discussed shares it did not already own.The transaction provided for the CWM public shareholders to receive a convertible subordinated in the preceding paragraph to which the holders would have been WMX note clue 2005,with a principal amount at maturity of entitled had they convened or exchanged the LYONS immediately 51,000, for every 81.1 CWM shares held,with cash paid in lieu prior to the merger approval. of issuance of fractional notes.The notes are subordinated to all In May 1994,the Company issued,at par, $150,000,000 of ten- existing and future senior indebtedness of WMX. Each note bears year Step-Up Notes due April 30, 2004.The holders may elect to cash interest from January 24, 1995 at the rate of two percent per have the Step-of Notes or any portion thereof repaid on April 3Q annum of the S1,000 principal amount at maturity,payable semi- 1997,at The of their principal amount together with accrued annually.The difference between the principal amount at maturity interest.'Che interest rate on the Step-Up Notes is 6.2:°/o through of 51,000 and the 5717.80 stated issue rice of each note repre- April 29, 1997,and 8%thereafter. in November 1994,the Company p p issued 5200,000,000 of 8/,%Notes due November 15, 1999,at sents the stated discount which,together with the cash interest a price of 99.925%.Neither of these issues is redeemable at the payable on the notes,will accrue at a rate of 5.75 percent per option of the Company prior to maturity. • Si In January 1995,the Company issued$250,000,000 of BYeo/o Notes amount,together with accrued interest.The Company also issued due February 1,1998,at a price of 99.671%.In March 1995,the in May 1995,$100,000,000 of 7%Notes due May 15,2005,at a price Company issued$200,000,000 of 7/Mo Notes due March 22,1997,at of 99.293%. In June 1995,the Company issued$100,000,000 of a price of 99.9800/%.In May 1995,the Company issued$200,000,000 5.84%Notes due July 3,1996,at par.In October 1995,the Company - of 6.65%Notes due May 15,2005,at par.The holder of each 6.65% issued$250,000,000 of 6%%Notes due October 15,2000,at a price - Note may elect to have such Note,or any portion thereof which is a of 99.85%.None of these issues is redeemable at the option of the multiple of$1,000,repaid on May 15,2000 at 100Y/0 of its principal Company prior to maturity. NOTE 6 Derivative Financial Instruments From time to time,the Company uses derivatives to manage and do not represent the amount of exposure to credit loss, interest rate,currency and commodity risk.The portfolio of such The agreements provide only for the exchange of interest on the instruments(which are held for purposes other than trading)at notional amounts at the stated rates,with no multipliers or leverage. December 31, 1995,is set forth in the paragraphs which follow. While the subsidiaries are exposed to market risk to the extent Where deemed advantageous,management will use derivatives that receipts and payments under interest rate agreements are in the future. affected by market interest rates,such agreements are entered Interest Rate Agreements Certain of the Company's subsidiaries into as a hedge against interest rate exposure on existing debt have entered into interest rate swap agreements to reduce the Accordingly,differences paid or received under the agreements impact of changes in interest rates on underlying borrowings.The are recognized as part of interest expense over the life of the agreements.The impact of swap agreements on consolidated agreements are contracts to exchange fixed and floating interest a - age payments periodically over the term without the exchange interest expense and on the effective interest rate on consolidated ratdebt was immaterial.As of December 31,1995,interest rate agree- of the underlying notional amounts.The notional amounts of such ments in notional amounts and with terms as set forth in the agreements are used to measure interest to be paid or received following table were outstanding: Notional Currency Amount Pay Receive Duration of Agreement Sterling 20,000 Fixed Floating Feb. 1995-Feb.1999 Hong Kong dollar 250,000 Fixed Floating Feb. 1995-Feb.1997 Currency Agreements From time to time,the Company and involving multipliers or leverage are not used.While the Company _ certain of its subsidiaries use foreign currency derivatives to miti- may be required to make a payment in connection with these gate the impact of translation on foreign earnings and income from agreements,it will recognize an offsetting increase in the translation - foreign investees.Typically these have taken the form of purchased of foreign earnings or income from foreign investees.Although the put options or offsetting put and call options with different strike purpose for using such derivatives is to mitigate currency risk,they prices.The Company receives or pays,based on the notional do not qualify for hedge accounting under generally accepted amount of the option,the difference between the average exchange accounting principles,and accordingly must be adjusted to market rate of the hedged currency against the base currency and the aver- value at the end of each accounting period.Gains and losses on age(strike price)contained in the option. Complex instruments currency derivatives to date have not been material. As of December 31, 1995,the Company was party to the following average rate currency option(settles at expiration): Currency Notional Amount Hedged Against Collar,structured as offsetting put and call with different strike prices,covering the period January 1 to December 31,1996 100,000 Swedish Krona Sterling 34 Significant foreign currency contracts outstanding during 1993,1994 and 1995 were as follows. Currency Average Amount Hedged Against 1993 150,000 Sterling Dollar 9.300 Deutschemark Dollar 6,000 Finland Markka Sterling 1994 85.000 Deutschemark Sterling 132,000 French Franc Sterling 184,000 Swedish Krona Sterling 20,000,000 Italian Lire Sterling 10,000.000 Italian Lire Deutschemark 23.000 Deutschemark Dollar 141,000 Sterling Dollar 1995 46,600 Deutschemark Sterling 82,000 French Franc Sterling 13,500 Netherlands Guilder Sterling 180,000 Swedish Krona Sterling 1,500 Dollar Sterling 15,267,000 Italian Lire Sterling 11,820 Deutschemark Dollar 669 Sterling Swedish Krona 35,800 Sterling Dollar Commodity Agreements The Company utilizes collars,calls and deferred and recognized as fuel is purchased.The following table swaps to mitigate the risk of price Fluctuations on the fuel used summarizes the Company's positions in commodity derivatives as by its vehicles.Quantities hedged equate to committed fuel put- of December 31, 1995: chases or anticipated usage,and accordingly,gains and losses are 'rope Commodity Quantity Expiration Swaps Crude oil 3,000 hNs. 1996 Collars Crude oil 300 hhls. 1996 Swaps Crude oil 3,000 bhls. 1997 Collars Crude oil 350 hhls. 1997 Swaps Crude oil 2,000 bbls. 1998 Collars Crude oil 200 hNs. 1998 Collars Crude oil 100 hNs. 1999 The Company is exposed to credit loss in the event of non-perfor- formance.Maximum credit exposure is represented by the fair mance by counterparties on interest rate,currency and commodity value of contracts with a positive fair value;at December 31, 1995, derivatives,but in all cases such counterparties are highly rated such amounts were not material, financial institutions and the Company does not anticipate non-per- NOTE 7 Environmental Costs and Liabilities The majority of the businesses in which the Company is engaged The Company provides for estimated closure and post-closure are intrinsically connected with the protection of the environment. monitoring costs over the operating life of disposal sites as airspace As such,a significant portion of the Company's operating costs is consumed.Such costs for U.S.landfills are estimated based on and capital expenditures could he characterized as costs of envi- the technical requirements of the Subtitle C and D Regulations of ronmental protection.While the Company is faced, in the normal the U.S.Environmental Protection Agency or the applicable state course of business,with the need to expend funds for environ- requirements,whichever are stricter,and indude such items as final mental protection and remediation,it does not expect such cap and cover on the site,methane gas and leachate management, expenditures to have a material adverse effect on its financial and groundwater monitoring.Substantially the same standards are condition or results of operations because its husiness is based applied to estimate costs for foreign sites,even though current upon compliance with environmental laws and regulations and regulations in some foreign jurisdictions are less strict. its services are priced accordingly. 19 The Company has also established procedures to evaluate The Company's active landfill sites have estimated remaining potential remedial liablilities at closed sites which it owns or lives ranging from one to over 100 years hased upon current site --. operated,or to which it transported waste,including 106 sites plans and annual volumes of waste.During this remaining site on the NPL.In the majority of situations,the Company's connection life,the Company will provide for an additional$1.12 billion of with NPL sites relates to allegations that its subsidiaries(or their closure and post-closure costs, including accretion for the dis- predecessors)transported waste to the facilities in question, count recognized to date. often prior to the acquisition of such subsidiaries by the Company. As of December 31,the Company's liabilities for closure, The Company routinely reviews and evaluates sites requiring post-closure monitoring and environmental remediation costs remediation,including NPL sites,giving consideration to the were as follows- nature(e.g.,owner,operator,transporter,or generator),and the extent(e.g.,amount and nature of waste hauled to the location, 1994 1995 number of years of site operation by the Company,or other rele- Current portion,included in vant factors)of the Company's alleged connection with the site, Accrued Expenses $ 108,750 $ 13003 the accuracy and strength of evidence connecting the Company to Non-current portion 704,015 622,952 the location,the number,connection and financial ability of other Total recorded $ 812,765 $ 761.555 named and unnamed potentially responsible parties("PRPss"),and Amount to be provided over the nature and estimated cost of the likely remedy.Cost estimates remaining Iffe of active are based on management's judgment and experience in remediat- sites,including discount ing such sites for the Company as well as for unrelated parties, of$169 million in 1994 and information available from regulatory agencies as to costs of reme- $171 million in 1995 1,149,617 1118,739 diation,and the number,financial resources and relative degree of responsibility of other PRPs who are jointly and severably liable Expected aggregate undiscounted for remediation of a specific site,as well as the typical allocation environmental liabilities $1,962,382 $1,880,294 of costs among PRPs.These estimates are sometimes a range of Anticipated payments of environmental liabilities at December 31, possible outcomes.In such cases,the Company provides for the 1995,are as follows: amount within the range which constitutes its best estimate.If no amount within the range appears to be a better estimate than 1996 $ 138,603 any other amount,then the Company provides for the minimum 1997 97,621 amount within the range in accordance with FAS No.5.The 1998 49,416 Company believes that it is`reasonably possible,"as that term 1999 40,586 is defined in FAS 5("more than remote but less than likely"), 2000 32,115 that its potential liability could be at the high end of such ranges, Thereafter 1,521,953 which would be approximately 5150 million higher in the aggre- $1,880,294 gate than the estimate that has been recorded in the financial statements as of December 31,1995. The change in the expected aggregate undiscounted amount Estimates of the extent of the Company's degree of responsibility results primarily from changes in available airspace, for remediation of a particular site and the method and ultimate cost The Company and certain of its subsidiaries are named as defen- of remediation require a number of assumptions and are inherently dants in personal injury and property damage lawsuits,including difficult,and the ultimate outcome may differ from current estimates. purported class actions,on the basis of a Company subsidiary's However,the Company believes that its extensive experience in the having owned,operated or transported waste to a disposal facility environmental services business,as well as its involvement with a which is alleged to have contaminated the environment.While the large number of sites,provides a reasonable basis for estimating its Company believes it has meritorious defenses to these lawsuits, aggregate liability.As additional information becomes available, their ultimate resolution is often substantially uncertain due to a estimates are adjusted as necessary.While the Company does not number of factors,and it is possible such matters could have a anticipate that any such adjustment would be material to its financial material adverse impact on the Company's earnings for one or statements,it is reasonably possible that technological,regulatory or more quarters or years. enforcement developments,the results of environmental studies or The Company has filed suit against numerous insurance carriers other factors could necessitate the recording of additional liabilities seeking reimbursement for past and future remedial,defense and which could be material.The impact of such future events cannot tort claim costs at a number of sites.The carriers involved have be estimated at the current time, denied coverage and are defending these claims.No amounts Where the Company believes that both the amount of a have been recognized in the financial statements for any future particular environmental liability and the timing of the payments insurance recoveries. are reliably determinable,the cost in current dollars is inflated at 3%until expected time of payment and then discounted to pre- sent value at 7%.Had the Company not discounted any portion of its liability,the amount recorded would have been increased by approximately$171 million at December 31, 1995. 36 NOTE 8 Stock Options The Company has two stock option plans currently in effect Pursuant to the Director Plan,150,000 shares of the Company's under which future grants may he issued:the 1992 Stock Option common stock were initiallN reserved Options for 15,000 shares Plan(the"1992 Plan")and the 1992 Stock Option Plan for are to be granted, at the tune of election to the Board,to each Non-Employee Directors(the"Directors'Plan'). person who is not an officer or full-time employee of the Company Options granted under the 1992 Plan are generally exercisable or any of its subsidiaries. in equal curnulative installments over a three-to five-year period As part of the acquisitions of the CWM and Rust shares not beginning one year after the date of grant. Options granted under previously owned by the Company,as discussed in Note 4, the Directors'Plan become exercisable in five equal annual outstanding CWM stock options were converted into options installments beginning six months after the date of grant. to acquire approximately 2,873,000 Company shares at prices Under the 1992 Plan,non-qualified stock options may he granted of$21.97 to$6333 per share and outstanding Rust stock options it a price equal to 1000/0 of the market value on the date of grant, were converted into options to acquire approximately 1,976,000 for a term of not less than five years nor more than ten years. Company shares at prices of.$,21.39 to$40.10 per share. Twelvc million five hundred thousand shares of the Company's The status of the plans, including predecessor plans and replace- common stock were initially reserved for issuance under this plan. ment plans(together"Prior Plans")under which options remain outstanding,during the three years ended December 31,1995, was as follows: Shares Option Price January 1,1993— Outstanding 9,783 $ 3.46-$41.80 Available for future grant 14,822 — 1993— Granted 2,957 $30.90-$38.45 Exercisecl 551 S 3.46-$35.44 Cancelled— Prior Plans 119 $18.84-$41.80 Current plans 328 $30.69-$41.80 December 31,1993 Outstanding 11,682 $ 4.33-$41.80 Available for future grant 12,193 1994— Granted 3.729 $24.33-529.03 Exercised 462 $ 4-33-S2572 Cancelled— Prior Plans 312 514.72-$41.80 Current plans 826 S 8.57-$41.80 Additional shares available for future grant 6,000 December 31, 1994— Outstanding 13,811 $ 7.20-$41.80 Available for future grant 15,290 — .(995— Grantcd 3,1 t7 $23.21-528.90 Exercised 721 $ 7.20-S30.69 Cancelled— Prior Plans 1,111 .$21.39-S63.33 Current plans 316 $26.48-S41M Converted CWAM and Rust stock options 4,849 $21.39-$63.33 Shares no longer available for future grant 2,914 December 31, 1995 Outstanding 19,629 S 8.57-$63.33 Available for future grant 4,726 Options were exercisahle with respect to 9,859,656 shares at Decemher 31, 1995. 3? NOTE g Capital Stock The Board of Directors has the authority to create and issue up to If the Company or its assets are acquired in certain merger or 50,000,000 shares of$1 par preferred stock at such time or times, other transactions after a person acquires Company voting stock in such series,with such designations,preferences and relative or commences or announces an offer as provided above,each participating,optional or other special rights and qualifications, holder of a Right may purchase at the exercise price of the Right, limitations or restrictions thereof as it may determine. No shares shares of common stock of the acquiring company having a of the preferred stock have been issued. market value of two times the exercise price of the Right.If the Pursuant to a plan adopted by the Company in January 1987, Company is the survivor in certain merger transactions or in the each share of the Company's common stock carries the right event of certain other"self-dealing"transactions,each holder of (referred to herein as a"Right")to purchase one four-hundredth a Right may purchase at the exercise price of the Right,shares of (subject to adjustment)of a share of Series A Preferred Stock, Preferred Stock having a market value of twice the exercise price $1.00 par value("Preferred Stock"),at a price of$68.75(subject of the Right.Rights held by an acquiring person become void to adjustment).The Rights are tradeable only with the Company's upon the occurrence of such events. common stock until they become exercisable.The Rights become On December 8, 1995,the Board of Directors of the Company exercisable ten days after the earlier of a public announcement that authorized the repurchase by the Company of up to 25 million a person has acquired 20%or more of the Company's outstanding shares of its comon stock from time to time in the open market voting stock or a person's commencement or announcement of a or in privately negotiated transactions over a 24-month period, tender or exchange offer that would result in his owning 30%or On the same date,the Board of Directors of WTI authorized WTI more of the Company's outstanding voting stock.The Rights are to repurchase up to 20 million shares of its common stock over a subject to redemption by the Company at a price of$.0125 per Right, 24-month period.Both authorizations replaced existing common subject to certain limitations,and will expire on February 6,1997. stock repurchase programs. The Preferred Stock carries certain preferential dividend and liquidation rights and certain voting and other rights. NOTE 1 O Earnings Per Share Earnings per share are computed on the basis of the weighted 1994 1995 average number of common and common equivalent shares Common shares issued,net of outstanding during each year. Common stock equivalents relate Employee Stock Benefit Trust shares primarily to the impact of options outstanding under the per Consolidated Balance Sheets 484,000 487,047 Company's stock option plans. Effect of shares issuable under The following table reconciles the number of common shares stock options after applying shown as outstanding in the Consolidated Balance Sheets with the the"treasury stock'method 396 627 number of common shares used in computing earnings per share: Effect of using weighted average common shares outstanding during the year (252) (1,702) Common shares used in computing earnings per share 484,144 485,972 NOTE 71 Commitments and Contingencies The Company leases several of its operating and office facilities During 1994 and 1995,the Company sold put options on 31.6 mil- for various terms.Rents charged to costs and expenses in the lion shares of its common stock.The put options give the holders Consolidated Statements of Income amounted to$178,039,000 the right at maturity to require the Company to repurchase shares in 1993, $197,969,000 in 1994 and$186,248,000 in 1995.These of its common stock at specified prices.Proceeds from the sale of amounts include rents under long-term leases,short-term put options were credited to additional paid-in capital.The amount cancellable leases and rents charged as a percentage of revenue, the Company would be obligated to pay to repurchase shares of its but are exclusive of financing leases capitalized for accounting common stock if all outstanding put options were exercised has purposes. been reclassified to a temporary equity account. In the event the The long-term rental obligations as of December 31, 1995, options are exercised,the Company may elect to pay the holder are due as follows: in cash the difference between the strike price and the market price First year $ 170,311 of the Company's shares,in lieu of repurchasing the stock. Second year 152,711 Options on 17.9 million shares expired unexercised in 1994 and d year 140,162 1995,as the price of the Company's stock was in excess of the strike Third 132,892 price at maturity. Options on 4.7 million shares were exercised in Fourth Fifth year 126,872 February 1995,and the Company elected to settle them for cash at a Sixth through tenth years 545,675 total cost of$12,019,000.The remaining 9.0 million options expire Eleventh year and thereafter329,046 at various dates in 1996,at strike prices ranging from$27.34 to $31.45 per share. 51,597,669 The Company's insurance program includes coverage for pollu- tion liability resulting from"sudden and accidental"releases of contaminants and pollutants.Management believes that the cover- age terms,available limits of liability,and costs currently offered by 38 the insurance market do not represent sufficient value to warrant A subsidiary of Waste Management Inc. ("WMI")has been Vie purchase of"non-sudden and accidental"pollution liability involved in litigation challenging a municipal zoning ordinance insurance coverage.As such,the Company has chosen not to pur- which restricted the height of its New Milford,Connecticut landfill chase risk transfer"non-sudden and accidental"pollution liability to a level below that allowed by the permit previously issued by insurance coverage.To satisfy existing government requirements, the Connecticut Department of Environmental Protection('DEP"). the Company has secured non-risk transfer pollution liability insur- Although a lower court declared the zoning ordinance's height once coverage in amounts believed to he in compliance with limitation unconstitutional,the Connecticut Supreme Court Federal and State law requirements for"non-sudden and acciden- reversed that ruling and remanded the case for further proceed- tal"pollution.The Company must reimburse the insurer for losses ings in the Superior Court,In November 1995,the Superior Court incurred and covered by this insurance policy. In the event the ordered the WMI subsidiary to apply to the DEP for permission to Company continues not to purchase risk transfer"non-sudden and remove all waste above the height allowed by the zoning ordi- ac(idental"pollution liability insurance coverage,the Company's nonce.The Comparry believes that removal of such waste is an net income could be adversely affected in the future if"non-sud- inappropriate remedy and has appealed the Superior Court order den and accidental"pollution losses should occur_ to the state Supreme Court.The Company is unable to predict the The Company has issued or is a parry to approximately 3,120 outcome of the appeal or the nature and extent of the removal bank letters of credit,performance bonds and other guarantees. action that may ultimately be required following further appeals Such financial instruments(averaging approximately$639,000 or as a result of the permitting process. However, if the Superior each),including those provided for affiliates and not otherwise Court order as to removal of the waste is not modified,the sub- recorded,are given in the ordinary course of business. Because sidiary could incur substantial costs,which could vary significantly virtually no claims have been made against these financial instru- depending upon the nature of any plan which is eventually mems in the past, management does not expect these instruments approved by applicable regulatory authorities for removing the will have a material adverse effect on the consolidated financial waste,the actual volume of waste to be moved and other cur- position or results of operations of the Company. rently unforeseeable factors,and which could hove a material Since 1994,WTI has been involved in litigation involving per- adverse effect on the Company financial condition and results mits for the construction and operation of the Lisbon,Connecticut, of operations in one or more future periods. trash-to-energy plant.These matters were resolved during 1995 In the ordinary course of conducting its business,the Company and the plant began commercial operations in January 1996. becomes involved in lawsuits,administrative proceedings and During the first quarter of 1995,Waste Management International governmental investigations, including antitrust and environmental plc C WM International")received an assessment of approximately matters. Some of these proceedings may result in fines,penalties 417 million Krona(approximately$62 million)from the Swedish or judgments being assessed against the Company which,from Tax Authority, relating to a transaction completed in 1990. WM time to time,may have an impact on earnings for a particular quar- International believes that all appropriate tax returns and disclo- ter or year.The Company does not believe that these proceedings, sures were properly filed at the time of the transaction and intends individually or in tha aggregate,are material to its business or to vigorously contest the assessment. financial condition. (NOTE 12 Benefit Plans The Company has a defined benefit pension plan for all eligible The following table sets forth the plan's funded status and non-union domestic employees of WMX,CWM and WMI.The the amount recognized in the Company's Consolidated Balance benefits are based on the employee's years of service and com- Sheets at December 31, 1994 and 1995 for its pension plan: pensation during the highest five consecutive years out of the last ten years of employment.The Company's funding policy is to 1994 1995 contribute annually the minimum required amount determined Actuarial present value of by its actuaries. benefit obligations: Net periodic pension expense for 1993,1994 and 1995,based Accumulated benefit obligations, on discount rates of 8.50°/%for all three years,included the including vested benefits I ollowing components: of 5120,881 and S 152,031 at December 31, 1994 and 1995, 1993 1994 1995 respectively s(136,713) $(167,287) Service(ost—benefits earned Projected benefit obligation $(156,609) $(191,059) during the year $10,785 $11,075 511,752 Plan assets at fair value. (merest cost on projected primarily common stocks, benefit obligation 9,507 11,532 13,228 bonds and real estate 136,740 167,068 Expected return on plan assets (11,055) (12,335) (13,237) Net amortization and deferral (1,451) (1,3t(b 33 Plan assets less than projected benefit obligation $ (19,869) $ (23.991) Neteriodic ensionex expense $ 7,786 $_8,962 $11,776 p 1 P _ Unrecognized net loss 39,304 29,801 Assumptions, used to determine the plan's funded stilus as Unrecognized overfunding at of December 31, are as follows: date of adoption(,January t. 1985) of FAS No.87,net of amortization, 1994 1995 being recognized over 15 years _ (8,727) (6,422) Discount rate 8.5% 7.75% Pension cost included in Rate of increase in compensation levels 4.01,10 4.01/0 prepaid(accrued)expenses s 10,708 $ (612_) Expected long-term rate of return on assets 9.00/0 9.0°/a 39 The Company also has a non-qualified defined benefit plan The expense for postretirement health care benefits was for officers of WMX,CWM and WMI who have served in such $7,300,000 in 1993, $4,668,000 in 1994 and$5,359,000 in 1995. capacities for at least 10 years at the time of retirement.The bene- The service and interest components of the expense were fits are based on the officer's years of service and compensation $3,000,000 and$4,300,000,respectively,in 1993,$1,049,000 and during the highest three consecutive years out of the last ten years 33,619,000,respectively,in 1994,and$1,094,000 and$4,265,000, of employment.The benefits are reduced by such officer's bene- respectively, in 1995. fits tinder the pension plan.This plan is not funded. Expense for The Company has an Employee Stock Ownership Plan("1988 1993,1994 and 1995 for this plan was$2,551,000, $3,418,000 and ESOP")for all eligible non-union united States and Canadian $4,202,000, respectively. employees of WMX,CWM and WMI.The benefits are based on WM International participates in both defined benefit and the employee's years of service and compensation.The Company defined contribution retirement plans for its employees in various contributes each year an amount,if any,determined by the Board countries.The projected benefit obligation and the plan assets of of Directors of the Company. the WM International defined benefit plans are not material. Other Information concerning the 1988 ESOP is as follows: subsidiaries participate in various multi-employer pension plans covering certain employees not covered under the Company's __. - 1993 1994 1995 pension plan,pursuant to agreements with collective bargaining Expense recorded(contribution) $7,329 $ 930 $ 667 units who are members of such plans.These plans are generally Interest expense on 1988 ESOP debt $1,510 $1,965 $1,147 defined benefit plans;however,in many cases,specific benefit llividends on unallocated levels are not negotiated with or known by the employer-contrib- 1988 ESOP shares used utors.Contributions of$15,242,000, plans were and e and 9,000 by the 1988 ESOP $ 964 $ 780 $ 555 for subsidiaries'defined contribution plans were made and __— --- charged to income in 1993,1994 and 1995,respectively. The Company has a Profit Sharing and Savings Plan("PSSP") The following table analyzes the obligation for postretirement available to certain employees of WMX,CWM and WMI.The benefits other than pensions(primarily health care costs),which terms of the PSSP allow for annual contributions by the Company is included in other deferred items on the Consolidated Balance as determined by the Board of Directors as well as a match of Sheets,as of December 31, 1994 and 1995: employee contributions up to$500 per employee($750 effective 1994 1995 January 1, 1996).Charges to operations for the PSSP were -- - $11,589,000 in 1993,$27,334,000 in 1994 and$24,882,000 in 1995. Accumulated Postretirement Rust,WTI and WM International also sponsor non-contributory Benefit Obligations: and contributory defined contribution plans covering both "^ Retirees $57,216 $52,255 salaried and hourly employees.Employer contributions are genet Otherfully eligible participants 10,960 9,682 ally based upon fixed amounts of eligible compensation and Other active participants 9,478 10,695 amounted to$18,614,000, $23,431,000 and$23,017,000 during 577,654 $72,632 1993, 1994 and 1995,respectively. Unrecognized: Effective January 1, 1994,the Company and its principal Prior service cost 627 566 subsidiaries adopted FAS No. 112, "Employers'Accounting for Gain 9,501 7,911 Postemployment Benefits."This new statement established $87,782 $81,109 accounting standards for employers who provide benefits to former or inactive employees after employment but before For measurement purposes,an 8.5%annual rate of increase retirement.The adoption of FAS 112 did not have a significant in the per capita cost of covered health care claims was assumed effect on earnings,because the Company's accounting prior to for 1996;the rate was assumed to decrease by 0.5%per year to adoption was substantially in compliance with the new standard. 6.0%in 2001 and remain at that level thereafter. Increasing the During 1994,the Company established an Employee Stock assumed health care cost trend by one percentage point in each Benefit Trust and sold 12.6 million shares of treasury stock to year would increase the accumulated postretirement benefit the Trust in return for a 30-year,7.33%note with interest payable obligation as of December 31, 1995 by approximately$4,341,000, quarterly and principal due at maturity.The Company has agreed and the aggregate of the service and interest cost components to contribute to the Trust each quarter funds sufficient,when of net postretirement health care cost for 1995 by approximately added to dividends on the shares held by the Trust,to pay interest $403,000.The weighted-average discount rate used in detennin- on the note as well as principal outstanding at maturity.At the ing the accumulated postretirement benefit obligation was 8.5% direction of an administrative committee comprised of Company in 1994 and 7.75%in 1995. officers,the trustee will use the shares or proceeds from the sale of shares to pay employee benefits,and to the extent of such payments by the Trust,the Company will forgive principal and interest on the note.The shares of common stock issued to the Trust are not considered to be outstanding in the computation of earnings per share until the shares are utilized to fund obligations for which the trust was established. 40 MOTE 13 Company's Operations in Different Industries and Geographical Areas The analysis of operations by industry segment which follows quality control,primarily in North America. Rust has served the reflects the Company's traditional management structure of five environmental and infrastructure engineering and consulting,and principal subsidiaries, each of which has operated in a relatively on-site industrial and related services markets in the United States discrete portion of the environmental services industry or geo- and a number of foreign countries. graphic area.WMI has provided integrated solid waste services Whereas solid waste,hazardous waste and trash-to-energy oper- and CWM has provided hazardous waste collection,transporta- ations have been performed by three distinct organizations in North tion,treatment and disposal services in North America.WM America,these services have been provided internationally by a International has provided these services,as well as trash-to- single management organization. Because of the different business energy services,outside North America.WTI has been involved environment for international operations,the Company has uran- in trash-to-energy and independent power projects,water and aged these as a discrete segment.Following is an analysis of the wastewater treatment(including biosolids management)and air Company's continuing operations by these historical segments. Trash To-Energy. International Engineering, Water Treatment, Waste Corporate Solid Hazardous Industrial and Air Quality and Management and Waste Waste Related Serviree Related Services Services Eliminations' Cous,lidated 1993 Revenue $4,702,166 $ 661,860 $1,035,004 $1,142,219 $1.411,211 $(316,344) $ 8,636,116 Operating expenses including goodwill amortization 3,193,183 506,264 808,694 792,719 1.009,145 (309,914) 6,000,091 Special charge - 550,000 - - 550,000 Selling and administrative expenses 547,413 128,058 131,575 107,276 198,969 (9,267) 1,104,024 I reome from operations $ 961,570 $ (522,462) S 94,735 $_2_42,224 $ 203,097 $ 2,837 $ 982,001 Identifiable assets $6,912,271 $1.498,631 $1,360,703 $3,081,709 $3._315,621 $_(169,169) $15,999.766 • Depreciation and amortization expense S 461,963 $ 63,971 $ 43,971 $ 75,323 S_ 121,050 S 22,084 $ 788,362 Capital expenditures"' 51,139,004 $ 157,786 $ 124,754 $ 303,905 $ 403,326 $ 26,009 $ 2,154,784 1'994 Revenue $5,117,871 S 649,581 $1,140,294 $1,324,567 $1,710,862 $(388,470) $ 9,554,705 Operating expenses including goodwill amortization 3.502,445 454,765 915,129 915,237 1,244,597 (380,393) 6,651,780 Selling and administrative expenses 549,608 105,736 153,230 119,380 230,014 1,532 1,159,500 Income from operations $1,065,818 $ 89,080 S 71,935 $ 289,950 $ 236,251 $ (9,609) $ 1,743,425 Identifiable assets $7,388,766 $1,375,341 $1,472,263 $3,276,611 $4,037,922 $(311,381) $17,239,522 Depreciation and amortization expense $ 479,333 $ 59,381 $ 57.542 $ 95,2_54 $ 154,575 $ 24,514 $ 870,599 Capital expenditures"' $ 950,383 $ 57,983 $ 57,242 $ 115,082 S 304,999 $ 20,397 $ 1506,086 1!995 Revenue $5,642,857 $ 613,883 $1,027,430 $1,451,675 51,865,081 S(353,309) $10,247,617 Operating expenses including goodwill amortization 3,806,798 463,984 816,528 1,015,269 1,410,282 (350,309) 7,162,552 Special charges - 140,600 - - 194,593 - 335,193 Selling and administrative expenses 578,290 94,551 135,012 130,976 235,807 1,174,636 Income from operations 51,257,769 $ (85,252) $ 75,890 $ 305,430 $ 24,399 $ (3,000) $ 1,575,236 Identifiable assets $8,506,954 $1,159,467 $1,387,565 $3,220,193 $4,235.589 $ 54,988 $18,564,756 Depredation and amortization expense $ 457,820 $ 48,860 $ 49,796 S 107,814 $ 181,341 $ 32,041 S 877,672 Capital expenditures"' $1,101,312 $ 65,080 $ 34,606 S 45,101 $ 263,352 $ 31,624 S 1,541,075 (1)Includes corporate office and elimination of intercompany transactions. (2)Includes property and equipment of purchased businesses. 41 As a result of a strategic review begun in 1994,management energy,clean water,and environmental and infrastructure engi- and operations of the Company have been realigned on the basis neeting and consulting.The following table analyzes continuing of four principal global lines of business-waste services,clean operations on a line-of-business basis. Environmental and Infrastructure Waste Clean Clean Engineering and Corporate and Services Energy Water Consulting Eliminations` Consolidated 1993 Revenue $ 7,457,371 $ 804,016 $392,194 3298,879 $(316,344) $ 8,636,116 Operating expenses including goodwill amortization 5,259,571 532,619 294,525 223,290 (309,914) 6,000,091 Special charge 550,000 - - - 550,000 Selling and administrative expenses 956,588 46,899 63,937 45,867 (9,267) 1,104,024 Income from operations $ 691,212 $ 224,498 $ 33,732 $ 29,722 $ 2,837 $ 982,001 Identifiable assets $12,356,320 $2,196,145 $485,349 $297,258 $664,694 $15,999,766 Depreciation and amortization expense $ 693,819 $ 62,777 $ 21,446 $ 10,320 $ - $ 788,362 Capital expenditures'' $ 1,802,781 $ 209,091 $112,965 $ 26,718 $ 3,229 $ 2,154,784 1994 Revenue $ 8,140,785 $ 888,037 $489,295 $425,058 S(388,470) $ 9,554,705 Operating expenses including goodwill amortization 5,738,990 589,610 369,592 333,981 (380,393) 6,651,780 Selling and administrative expenses 971,075 44,032 78,615 64,246 1,532 1,159,500 Income from operations $ 1,430,720 $ 254,395 $ 41,088 $ 26,831 $ (9,609) $ 1,743,425 Identifiable assets $13,470,901 $2,152,458 $587,480 $402,053 $626,630 $17,239,522 Depreciation and amortization expense $ 751,251 $ 62,460 $ 40,813 $ 16,075 $ - S 870,599 Capital expenditures"' $ 1,374,893 $ 76,392 $ 35,725 $ 14,576 S 4,500 $ 1,506,086 1995 Revenue $ 8,634,836 $ 893,513 $618,472 $454,105 $(353,309) $10,247,617 Operating expenses including goodwill amortization 6,099,597 574,865 477,842 360,557 (350,309) 7,162,552 Special charges 325,336 9,857 335,193 Selling and administrative expenses 972,018 44,751 89,922 67,945 1,174,636 Income from operations $ 1,237,885 $ 264,040 $ 50,708 $ 25,603 $ (3,000) $ 1,575,236 Identifiable assets $14,535,905 $2,025,491 $612,824 $392,486 $998,050 $18,564,756 Depreciation and amortization expense $ 742,148 $ 73,098 $ 44,744 $ 17,682 $ - $ 877,672 Capital expenditures"' $ 1,485,958 $ 12,404 $ 33.415 $ 9,288 $ 10 $ 1,541,075 (1)Includes property and equipment of purchased businesses. (2)Includes corporate office and elimination of intersegment transactions, 42 Foreign operations in 1995 were conducted in 10 countries in Brazil,Mexico,Israel,and Argentina.The information relating to the • Europe,eight countries in the Asia Pacific region,and Canada, Company's foreign operations is set forth in the following tables: United Other States Europe Foreign Consolidated 1993 Revenue $ 6,994,757 $1,241,811 $399,548 $ 8,636,116 Income from operations $_754,502 $ 184,412 $ 43,087 $ 982,001 Identifiable assets $12,444,968 $2,955,078 $599,720 $15,999,766 1994 Revenue $ 7,427,611 $1,504,154 $622,940 $ 9,554.705 Income from operations $ 1,476,067 $ 198,251 $ 69,107 $ 1,743.425 Identifiable assets $12,628,264 $3,725,393 $885,865 $17,239.522 1995 Revenue $ 7,837,050 $1,800,768 $609,799 $10,247,617 Income from operations $ 1,515,729 $ 172951 $ 41,556 $ 1,575,236 Identifiable assets $13,769,141 $3,920,962 $874.653 $18.564,756 No single customer accounted for as much as 3%of consoli- WM International is unable to predict what impact, if any,this dated revenue in 1993,1994 and 1995. change will have on its operations in Hong Kong.At December 31, WM International operates facilities in Hong Kong which are 1995,WM International had identifiable assets of$242.5 million owned by the Hong Kong government.On July 1, 1997,control related to its Hong Fong operations,which generated 1995 pretax of the Hong Kong government transfers to mainland China. income of approximately$16.5 million. • NOTE 14 Special Gains and Charges During the third quarter of 1993,the Company recorded a special related primarily to a write-off of the investment in facilities and charge of$550.0 million(before tax and minority interest)as a technologies that CWM abandoned because they do not meet result of CWM recording a special asset revaluation and restructur- customer service or performance objectives,but also includes ing charge.The charge consisted of$381.0 million to write down $22.0 million of future cash payments for rents under non-can- assets,primarily incinerators,and$1690 million for cash expendi- cellable leases,guaranteed bank obligations of a joint venture, tures. Substantially all of the cash expenditures were made as of and employee severance.The majority of the cash expenditures December 31, 1994.As a result of this program,overhead,includ- were paid in 1995,although certain of the non-cancellable leases ing depreciation and amortization,was reduced in 1994 by extend through the year 2002. approximately$60 million on an annualized basis. In the fourth quarter of 1995,WM International recorded an Results for 1993 include a non-taxable gain of$15.1 million exceptional charge of$194.6 million($152.4 million after tax) (before minority interest)relating to the second quarter issuance primarily related to the actions it is taking to sell or otherwise of shares by Rust in connection with the acquisition of the minor- dispose of non-core businesses and investments,as well as core ity interest in a subsidiary. businesses and investments in low potential markets,abandon In 1994,Rust recorded a charge of$9.2 million(before tax and certain hazardous waste treatment and processing technologies, minority interest)for the writeoff of assets and the recognition of and streamline its country management organization.The charge one-time costs incurred during the fourth quarter in connection reduced the Company's income by approximately$153.3 million with the discontinuance of its murine construction and dredging before tax($111.0 million after tax).The charge included operations,and the closing of offices in a consolidation of its $34.3 million of cash payments for employee severance and rents other operations.This charge is included in Operating Expenses under non-cancellable leases.Approximately$11.2 million of the ($6.6 million)and Selling and Administrative Expenses($2.6 mil- cash costs were paid prior to December 31, 1995.The majority of lion)in the Consolidated Statement of Income, the balance will be paid in early 1996, although certain rent In the first quarter of 1995,in response to the continuing payments on leasec facilities will continue into the future.WM deterioration of the chemical waste services market,CWM took International expects that upon completion of these actions, additional steps to realign its organization,and in connection overhead will be reduced by approximately$20 million annually, therewith,recorded a special charge of$140.6 million before which management plans to invest in new marketing initiatives tax($91.4 million after tax or$.19 per WMX share).The charge and operational productivity enhancements. • 41 Note i ll Discontinued Operations In December 1995,the Rust Board of Directors approved a plan sale of businesses and assets.The amounts Rust will ultimately real- to sell or otherwise discontinue Rust's process engineering,con- ize could differ materially in the near term from these estimates. struction,specialty contracting and similar lines of business and Revenues of the discontinued businesses were$499,461,000 in have Rust focus on its environmental and infrastructure engineer- 1993, $542,613,000 in 1994,and$731,731,000 in 1995.Following ing and consulting businesses.The discontinued businesses have is a summary of the assets and liabilities as of December 31,1994 been segregated and the accompanying consolidated balance and 1995, which are reflected on the consolidated balance sheets sheets,statements of income and related footnote information as net assets of discontinued operations: have been restated. Rust has engaged investment bankers to assist it in valuing and 1994 1995 identifying potential buyers for the major business units to be sold, Current assets $ 136,466 $ 163,662 and expects to complete the sales in 1996.Provision has been made Property and equipment for estimated loss on disposal of the discontinued operations,net of and other noncurrent assets 162,926 94,251 related tax benefits and minority interest,and is included in the 1995 Current liabilities (111,718) (122,529) consolidated statement of income.The provision for loss includes Noncurrent liabilities (4.023) (4,832) management's best estimate of the amounts to be realized on the Net assets of discontinued operations $ 183,651 $ 130,552 NOTE 16 Fair Value of Financial Instruments The following disclosure of the estimated fair value of financial Company or holders of the instruments could realize in a current instruments is made in accordance with the requirements of FAS market exchange.The use of different assumptions and/or estima- No. 107, `Disclosures about Fair Value of Financial Instruments." tion methodologies may have a material effect on the estimated fair The estimated fair value amounts have been determined by the value amounts.The fair value estimates presented herein are based Company,using available market information and commonly on information available to management as of December 31, 1994, accepted valuation methodologies.However,considerable judg- and December 31,1995.Such amounts have not been revalued ment is necessarily required in interpreting market data to develop since those dates,and current estimates of fair value may differ the estimates of fair value.Accordingly,the estimates presented significantly from the amounts presented herein. herein are not necessarily indicative of the amounts that the December 31,1994 December,31,1995 Carrying Estimated Carrying Estimated Amount Pair Value Amount Fair Value Nonderivatives— Assets— Cash and cash equivalents $ 123,348 $ 123,348 $ 189,031 $ 189,031 Receivables 1,887,923 1,887,923 1,889,721 1,889,721 Short-term investments 19,704 19,704 36,243 36,243 Liabilities— Commercial paper 946,702 944,837 1,119,356 1,120,209 Project debt 764,859 828,320 735,646 880.619 Liquid Yield Option Notes and WMX Subordinated Notes 505,140 500,410 539,352 576,024 Other borrowings 4,718,396 4,586,522 5,120,421 5,319,414 Derivatives relating to debt — 1,653 (74) Other derivatives carried as— Assets(in Other Assets) 307 307 Liabilities(in Accrued Expenses) (1,105) (16,245) (65) (16,647) Letters of credit,performance bonds and guarantees 44 Casb,Receivables and Sbort-Term Investments The carrying shown as assets and liabilities,as offsetting such amounts against amounts of these items are a reasonable estimate of their fair value. the related nonderivative instrument is permitted only pursuant to Liabilities For debt issues that are publicly traded,fair values are a right of setoff or master netting agreement. based on quoted market prices or dealer quotes.Due to the short- Off-Balance Sheet Financial Instruments In the normal course term nature of the ESOP notes,their carrying value approximates of business,the Company is a party to financial instruments with fair value.Interest rates that are currently available to the Company off-balance-sheet risk,such as bank letters of credit,performance for issuance of debt with similar terms and remaining maturities bonds and other guarantees,which are not reflected in the accom- are used to estimate fair value for debt issues that are not quoted panying balance sheets.Such financial instnunents are to be valued on an exchange. hased on the amount of exposure under the instrument and the Derivatives The fair value of derivatives generally reflects the likelihood of performance being required.In the Company's expe- rience,virtually no claims have been made against these financial estimated amounts that the Company would receive or pay to ter- instruments.Management does not expect any material losses to urinate the contracts at December 31,thereby taking into account result from these off-balance-sheet instruments and,therefore,is unrealized gains and losses.Dealer quotes are available for most of the opinion that the fair value of these instruments is zero. of the Company's derivatives. Deferred gains and losses are NOTE 17 Selected Quarterly Financial Data(Unaudited) The following is an analysis of certain items in the Consolidated Statements of Income by quarter for 1994 and 1995. First second Third FOLM11 Quarto Quarter Quarter Quarter Year 1994 Revenue $2,170,661 $2,420,106 $2,459,336 $2,504,602 $ 9,554,705 Gross profit 649,818 747,041 749,669 756,397 2,902,925 Income from continuing operations 161,777 202,155 207,093 205,466 776,491 Net income 162,612 203,117 212,885 205,767 784,381 Income from continuing operations per common and common equivalent share .33 .42 .43 .42 1.60 Net income per common and common equivalent share .34 .42 .44 .42 1.62 1995 Revenue $2,445,185 $2,635,665 $2,619,227 $2,547,540 $10,247,617 Gross profit 591,125 788,929 794,941 574,877 2,749,872 Income from continuing operations 101,292 212,462 230,801 110,035 654,590 Net income 101,245 219,127 23048 49,679 603,899 Income from continuing operations per common and common equivalent share .21 .44 .47 .23 1.35 Net income per common and common equivalent share .21 .45 .48 .10 1.24 See Note 14 to Consolidated Financial Statements for a discus- See Note 15 to Consolidated Financial Statements for a discus- sion of the special charges affecting the 1994 fourth quarter and sion of the decision to discontinue certain operations,announced hull year results and the 1995 first quarter,fourth quarter and full during the fourth quarter of 1995. year results. • 4; WMX Technologies, Inc. Environmental Policy WMX Technologies,Inc.is committed to protecting and enhanc- Risk Reduction ing the environment,and to updating its practices in light of 7.The Company will operate in a manner designed to minimize advances in technology and new understandings in health and environmental,health or safety hazards.We will minimize risk and environmental science. protect our employees and others in the vicinity of our operations Prevention of pollution and enhancement of the environment by employing safe technologies and operating procedures and by are the fundamental premises of the Company's business.We being prepared for emergencies.The Company will make avail- believe that all corporations have a responsibility to conduct their able to our employees and to the public information related to business as responsible stewards of the environment and to seek any of our operations that we believe cause environmental harm profits only through activities that leave the Earth healthy and safe. or pose health or safety hazards.The Company will encourage We believe that the Company has a responsibility not to compro- employees to report any condition that creates a danger to the mise the ability of future generations to sustain their needs. environment or poses health or safety hazards,and will provide The principles of this policy are applicable to the Company confidential means for them to do so. throughout the world.The Company will take demonstrable actions on a continuing basis in furtherance of the principles. Damage Compensation 8.The Company will take responsibility for any harm we cause to Environmental Protection and Enhancement the environment and will make every reasonable effort to remedy 1.The Company is committed to improving the environment the damage caused to people or ecosystems. through the services that we offer and to providing our services in a manner demonstrably protective of human health and the Research and Development environment,even if not required by law.We will minimize and 9.The Company will research,develop and implement strive not to allow any releases to the atmosphere,land,or water technologies for integrated waste management, in amounts that may harm human health and the environment. We will train employees to enhance understanding of environ- Public Policy and Public Education mental policies and to promote excellence in job performance 10.The Company will provide information to and will assist on all environmental matters. the public in understanding the environmental impacts of our activities.We will conduct public tours of facilities,consistent Waste Reduction,Recycling,Treatment and Disposal with safety requirements,and will work with communities near 2.The Company will work to minimize the volume and toxicity our facilities to encourage dialogue and exchange of information of waste generated by us and others.We will operate internal on facility activities. recycling programs.We will vigorously pursue opportunities to recycle waste before other management practices are applied. 11.The Company will support and participate in development of The Company will use and provide environmentally safe treat- public policy and in educational initiatives that will protect human ment and disposal services for waste that is not eliminated at health and improve the environment.We will seek cooperation the source or recycled. on this work with government,environmental groups,schools, universities,and other public organizations. Biodiversity 3 The Company is committed to the conservation of nature. Participation In Environmental Organisations We will implement a policy of"no net loss"of wetlands or other 12.The Company will encourage its employees to participate biological diversity on the Company's property. in and to support the work of environmental organizations,and we will provide support to environmental organizations for the Sustainable Use of Natural Resources advancement of environmental protection. 4.The Company will use renewable natural resources,such as water,soils and forests,in a sustainable manner and will offer Environmental Policy Assessment services to make degraded resources once again usable.We will 13.The Board of Directors of the Company will evaluate and conserve nonrenewable natural resources through efficient use will address the environmental implications of its decisions.The and careful planning. Executive Environmental Committee of the Company will report directly to the Chief Executive Officer of the Company and will Wise Use of Energy monitor and report upon implementation of this policy and other 5.The Company will make every reasonable effort to use environmental matters.The Company will commit the resources environmentally safe and sustainable energy sources to meet our needed to implement these principles. needs.We will seek opportunities to improve energy efficiency and conservation in our operations. Annual Environmental Report 14.The Company will prepare and make public an annual Compliance report on its environmental activities.The report will include a 6.The Company is committed to comply with all legal require- self-evaluation of the Company's implementation of these princi- ments and to implement programs and procedures to ensure ples,including an assessment of the Company's performance in compliance.These efforts will include training and testing of complying with all applicable environmental laws and regulations employees,rewarding employees who excel in compliance, throughout its worldwide operations. and disciplining employees who violate legal requirements. 46 `VMX Technologies, Inc. Directors and Officers WaMX Technologies • Board of Directors Dean L.Bannock Dr.Pastora San Juan Cafferty Dr.James B-Edwards Peer Pedersen Chairman of the Board& Professor,University of Chicago President,Medical University Managing Partner, Chief Executive Officer The School of Social Service of South Carolina Pedersen&Houpt PC. Phillip B.Rooney Administration Donald F.Flynn (Chicago law firm) President&Chief Operating Officer Jerry E.Dempsey Chairman of the Board&:President, _lames R.Peterson If.Jesse Annelle Chairman&Chief Executive Officer Flynn Enterprises,Inc.(financial Former President.Chief Executive Senior Partner,Arnelle,Hastie, PPG Industries,Inc.(glass,coatings advisory and venture capital firm) Officer&Director,The Parker and chemicals company) Pen Co.(manufacturer and McGee Willis&Greene p y Peter e t,HUrz n distributor of writing instruments) (California-based law firm) Howard H.Baker,Jr. President,Huizenga Capital Partner,Baker,Donelson, Management(financial Alexander B.Trowbridge Bearman&Caldwell management services) President,Trowbridge Partners,Inc. (Tennessee-based law firm) (consulting services); Former President,National Association of Manufacturers VIIMX Technologies Management Committee Dean L.Buntrock' Donald R.Chappel John J.Goody Thomas C.Leonhardt Chairman of the Board and Vice President&Controller Chief Executive Officer President&Chief Executive Officer Chief Executive Officer. Waste Management,Inc. Wheelabrator Water Technologies Rust Consulting Phillip B.Rooney' Michael J.Cale Joseph M.Holsted fames E.O'Connor President&Chief Operating Officer President,Waste Management- Chief Executive President Ronald S.Baker Technology Services Waste Management International plc Waste Management-Flonda President Luther Michael Collier William P.Hulligan' D.P.Payne` Waste Management-Mideast Executive Vice President Executive Vice Presidem: Senior Vice President- James J.Barry Waste Management,Inc Waste Management,Inc Human Resources&Communications President Robert P.Damien Harold L.Jorski James M.Rooney Waste Management-Midwest President President President Jerry W.Caudle Waste Management-Mountain Waste Management-Southeast Waste Management-Atlantic President Edwin G.Falkman John M.Kehoe,Jr. James D.Teter Waste Management-Southwest Chairman President&Chief Operating Officer President Waste Management International plc Wheelabrator Technologies Inc. Waste Management-West Herbert A.Getz' James E.Koenig" 'Member of the Executive Committee Senior Vice President Senior Vice President, General Counsel&Secretary Chief Financial Officer&Treasurer VVMX Technologies Officers Dean L.Buntrock' Thomas C.Han' Frank B.Moore Donald A.Wallgl Chairman of the Board& Vice President&Controller Vice President-Government Affairs Vice President, Chief Executive Officer Dr.Deborah C.Heckman Susan C.Nustra Chief Environmental Officer Phillip B.Rooney' Vice President-'technology Vice President-Treasury Thomas A.Witt President&Chief Operating Officer Development and Management William J.Plunkett Vice President& Herbert A.Getz' H.Vaughn Hooks Vice President-Cont-Communiu[ions Associate General Counsel Senior Vice President Vice President-Tax John D.Sanford 'Executive Officer General Counsel&Secretary Ronald M,Jericho Vice President-Project Finance James E.Koenig' Vice President-Reporting Bruce D.Tobecksen Senior Vice President Vice President-Finance Chief Financial Officer&Treasurer DT Pavl Senior Vice President-Human Resources&Comrnunicatiurts • ti� WMX Technologies, Inc. Corporate Information Common Stock Listings The Company's common stock is traded on the New York Stock The common stock is also listed for trading on the Chicago, Exchange under the symbol WMX. Frankfurt and London Stock Exchanges,and the Swiss Stock Exchanges in Geneva,Zurich and Basle. Common Stock Activity The table below sets forth by quarter,for the last two years,the high York Stock Exchange Composite Tape and the volume of shares and low sales prices of the Company's common stock on the New traded as reported by The Wall Street Journal(Midwest edition). 1994 Volume 1995 Volume First Quarter 104,953,700 First Quarter 89,716,300 Second Quarter 73,765,500 Second Quarter 71,824,200 Third Quarter 72,951,000 Third Quarter 76,302,300 Fourth Quarter 71,904,800 Fourth Quarter 81,227,200 High Low High Low First Quarter 3033/4 23 First Quarter 2978 25'/4 Second Quarter 293/8 22s/s Second Quarter 288/4 263/4 Third Quarter 303/8 263/8 Third Quarter 321/2 28/4 Fourth Quarter 30 241/ Fourth Quarter 30�/. 263/. At March 1, 1996,the Company had approximately 55,000 stockholders of record. Additional Information You may obtain,at no cost,copies of WMX Technologies In addition,any stockholder may be placed on the Company's 1995 Form 10-K report,annual environmental report and mailing list to receive quarterly reports by contacting the quarterly reports by writing to: Company at(708)572-8878. For information'regarding other WMX Technologies, Inc. matters concerning your stockholdings in the Company,you 3003 Butterfield Road may contact the Company toll-free at(800)WMX-1190. Oak Brook,Illinois 60521 Attention:Corporate and Public Affairs Department Corporate Responsibility and Community Investment WMX Technologies,Inc. is committed to serve the communities in better places in which to live by our people's participation in the which it operates.The Company supports and encourages this Company's educational,environmental,health and medical,and commitment through grants and resources that match not only the community enhancement programs. financial contributions of its people,but their volunteer service time as well.WMX has made communities all over the world Transfer Agent and Registrar Harris Trust and Savings Bank 311 West Monroe Street Chicago,Illinois 60606 Dividend Reinvestment and Stock Purchase Plan The WMX Technologies Dividend Reinvestment and Stock For further information,call or write to: Purchase Plan provides owners of the Company's stock a Harris Trust and Savings Bank convenient way to increase their holdings through automatic Dividend Reinvestment Service reinvestment of cash dividends,voluntary contributions of P.O.Box A3309 between$25 and$2,000 per month, or a combination of the two. Chicago,Illinois 60690 WMX stockholders may enroll in the plan at any time. (312)293-8615 Consolidation of Multiple Accounts To avoid receiving duplicate mailings,stockholders with more Harris Trust and Savings Bank,Shareholder Services Division, than one WMX Technologies registered account may wish to 311 West Monroe Street,Chicago,Illinois 60606, consolidate their stockholdings. For more information,contact Telephone(312)293-8615. Annual Meeting The Annual Meeting of Stockholders will be conducted at 100 Drury Lane(Illinois Highway 83 and Roosevelt Road), 2:00 p.m.Friday,May 10, 1996 at the Drury Lane Theatre, Oakbrook Terrace,Illinois. CO This book is printed on recycled paper and is recyclable. 48 i WMX Technologies' Global Environmental Resources i loss Haysewa area represents contribution W WMX revenue 1114HUNWCN waste Services The Company operates Our waste services business is the largest such44 from 790 collection enterprise in the world—and the leading recycler facilities with a fleet i and solid waste services provider in the United States. of 28,500 vehicles, 1 The Company operates the leading network of mcy- 227 transfer stations, cling,collection,processing,transfer and disposal 208 material recycling facilities.The Company's services are provided to 81 percent facilities and 195 land _ 18.8 million households,1.4 million commercial and disposal sites. I industrial customers and more than three thousand six hundred local governmental units worldwide. Clwn Energy 16 trash-to-energy Trash-to-energy and Our clean energy capabilities,facilities and projects facilities,seven independent power i make us one of North America's leading builders, cogeneration and projects in Germany, owners and operators of trash-to-energy and inde- independent Italy,Sweden,Taiwan pendent power plants.In addition,we operate a power plants in and the People's trash-to-energy plant in Germany and are pursuing North America. Republic of China. energy projects in Europe and in the Parc Rim. 9 percent The Company also manages coal-handling facilities, and provides patented treatment technology for process residues and combustion ash. Cls"Water Operator of 550 water, The Company is one of the leading contract opera- wastewater and ; tors and private owners of municipal and industrial biosolids projects; water and wastewater treatment facilities in North 4 biosolids pelletiurs; i America.The Company provides integrated water and installed base of services for government and multinational chemi- to more than 12,000 indus- cals,petrochemicals,electronics,pulp and paper, 6 percent trial water treatment and power industries and has an installed base of systems worldwide. thousands of municipal and industrial water treat- l ment systems worldwide. a Envkornno"1 Enghboodng and ConsulfMg Engineers,scientists The Company is a leading global provider of and technical person- technology-focussed environmental engineering and nel operating from 120 consulting services for public and private-sector clients. consulting offices in 35 countries around the globe. 4 percent �I 12 3, • INFORMATION SCHEDULE F Town of Southold Bid Project Solid waste Haul-Disposal Services The Bidder herein certifies that it is qualified to perform the work covered by this proposal , and that it is not acting as a broker on the behalf of others . To substantiate these qualifications, the Bidder offers the Following related information and references in order that the Town may evaluate the Bidder 's qualifications and experience . WM of New York, Inc. DBA 1 . Bidder 's Legal Name: Waste Management of NEW York 2 . Business Address: 193 Varick Avenue • Street Brooklyn NY 11237 City State Zip 3 . State incorporated: Delaware Year incorp . 1996 0928527 New York State; Business License No . : 0928528 S . No . years in contracting business under above name: lrs . 6 . Has firm ever defaulted on a contract? Yes No x ; 7 . Gross Value - work under current contract : 5 zn Million B . Number of Current Contracts: 18 S . Brief description general work performed by Firm: Collection, Processing, Recycling, and Disposal of various waste streams including Municipal Soil Waste, C&D Waste, sludge, and Incinerator Ash. OualiFications Summary Schedule S .O .F BID ( PROPOSAL) FORM Page 1 of Lt Y: INFORMA'ION SCHEDULE F - (Continued) 10 . Has firm ever `ailed to complete work awarded? Yes— No IF yes , attach support statement as to circumstances . 11 . Related Experience Reference (within previous 5 years) 11 . 1 Project Title: SEE ATTACHED EXPERIENCE Owner ' s Name: Address: Engineer: Address: Project Initial Start Date: Project Acceptance Date: initial Bid Value: 5 • Final Complete Project Value: S Brief Project Description: 11 .2 Project title: SEE ATTACHED EXPERIENCE Owner ' s Name: Address: Engineer: Address: Project initial Start Date: Project Acceptance Oat--: • Qualifications Summacu Sc`-edul_ BID (PROPOSAL) FORM Page 2 of • INFORMATION SCHEDULE F - (COnrfnLle.d) Initial Bid Value: $ Final Complete Project Value: 5 Brief Project Description: 11 . 3 Project Title: SEE ATTACHED EXPERIENCE Owner 's Name: Address: Engineer: Address: Project Initial Start Date: • Project Acceptance Date: Initial Bid Value: $ Final Complete Project Value: 5 Brief Project Description: • Qualifications Summary Sc!nedule S . C . F BID (PROPOSAL) ?ORM ?age 3 of u • INFORMATION SCHEDULE F - (Continued ) 12 . Principal Firm Member=_ ' Background/Experience (_ members minimum) . Attach current resumes as Schedule 5 . 0 .7 supplement or give concise description, by individual . AM cf NEW Y31C, Inc. Dom, Name of Bidder:VbBteN4miacEffentofNEwYcrk By :, ��G/ —ate: 5/22/97 (Authorized Signature) • NOTE: Any supplemental attachments or -odifications to this Form shall be labeled Schedule S . O . F, and shall be properly integrated into this Bid Form . If blank not applicable, fill in with WA • Oualif_cations Summary Schedule . . . F BID (PROPOSAL) FORM Pace � of • SCHFDIJT,F F ATTACHMENT Town of Oyster Bay TERM: 3-1-94 to present AMOUNT: $9.4 million per year CONTACT: Eric Swenson(516) 921-5811 Hauling and disposal of approximately 600 tons per dayt of municipal solid waste for the Town of Oyster Bay. Number of Employees: 60-70 Equipment utilized for this project: 2 payloaders 1 IT-12 3 yard tractors 1 excavator/grappler 1 sweeper 30-40 tractor/trailers • 10-15 staged trucks New York City Department of Sanitation TERM: 3-4-94 to 3-2-99 AMOUNT: $2.8 million per year CONTACT: Barbara Berg - (212) 837-8011 For the acceptance and processing of up to 300 tons per day of commingled metal, glass and plastic Number of Employees: 50-60 Equipment utilized on this project: numerous recycling/processing equipment 3 payloaders 2 yard tractors 6 tractor trailers 2 forklifts 1 excavator/grappler North Hempstead TERM: 1993 to 1994 AMOUNT: $375,000 per year CONTACT: Paul Roth(516) 767-4607 Contract to transfer, haul, process all of the commingled recyclables generated from the Town of which is approximately 6,000 tons per year Number of Employees: 50-60 Equipment utilized on this project: 3 payloaders 2 yard tractors 6 tractor trailers 2 forklifts 1 excavator/grappler North Hempstead TERM: 1989 to 1994 AMOUNT: $12,000,000 per year CONTACT: Paul Roth (516) 767-4607 Contract to transfer, haul, process and dispose of all municipal solid waste, • yardwaste, construction and demolition debris for the Town of North Hempstead. Tonnage generated was approximately 750 tons of waste materials per day, 200,000 tons per year. Number of Employees: 116 Equipment utilized on this project: 5 payloaders 6 yard horses 33 tractor trailers 3 IT-12's 1 sweeper Huntington TERM: 10/91 to 10/92 AMOUNT: $2.4 million per year CONTACT: Tom Chambers Transfer and hauling services for approximately 65,000 tons per year of incinerator ash from Ogden Martin Systems of Huntington. Number of Employees: 28 Equipment utilized on this project: 1 crane 2 excavators/grappler 250 railcars 10 staged trailers 25 tractor trailers Brookhaven TERM: 1/2/92 to 1/1/96 AMOUNT: $2.5 million per year CONTACT: Jim Heil (516) 541-6221 Transfer operation of 200,000 tons per year, transfer facility and hauling services for approximately 200,000 tons per year from the Town of Brookhaven to the Hempstead Resource Recovery Facility. Number of Employees: 16 Equipment utilized on this project: 1 excavator/grappler 2 payloaders 3 yard tractors 8 tractors 16 trailers New York City Department of Environmental Protection TERM: 4/93 to 4/95 AMOUNT: $8.6 million per year CONTACT: Tom Bensten (212) 860-9359 Transportation and disposal of 200 tons per day of dewatered sewage sludge for a one year contract Number of Employees: 70-75 Equipment utilized on this project: 70 tractors/trailers New York City Department of Environmental Protection TERM: 11/94 to 11/96 AMOUNT: $10.2 million for term of contract CONTACT: Anthony Maracis (718) 595-5047 Transportation and disposal of approximately 100 tons per day of grit and screening from Wards Island Number of Employees: 20 Equipment utilized on this project: 25 tractors/trailers • New York City Department of Environmental Protection TERM: 1/1/94 to 12/31/95 AMOUNT: $1.7 million per year CONTACT: Tom Bensten (212) 860-9359 Transportation and disposal of grit and screenings and supply dewatering containers Number of Employees: 50-60 Equipment utilized for this project: 100+ dewatering containers 40 tractor trailers 7 rolloffs 2 payloaders Town of Islip TERM: 1/1/92 to 12/31/94 AMOUNT: $33.8 million per year • CONTACT: Charles Weidner(516) 224-5643 Contract to supply hauling and disposal services for ash and bypass waste. Volumes are estimated at 40,000 tons per year. Number of Employees: 100-110 Equipment utilized for this project: numerous recycling/processing equipment 3 payloaders 2 yard tractors 6 tractor trailers 2 forklifts 1 sweeper 1 excavator/grappler Greenwich, CT TERM: 8/93 to 9/94 AMOUNT: $2 million per year CONTACT: Pat Nichols (203) 622-7740 Hauling and disposal services for approximately 4,200 tons per year of sewage • sludge from the Town of Greenwich, CT Number of Employees: 4-7 Equipment utilized for this project: 3-6 tractor trailers Greenwich, CT TERM: 12/96 to 12/96 AMOUNT: $300,000 per year CONTACT: Pat Nichols (203) 622-7740 Hauling, disposal and recycling of 5,000 tons per year of bulky waste and construction/demolition debris Number of Employees: 3-6 Equipment utilized on this project: 2-4 tractor/trailers City of Stamford TERM: 1/1/95 to 1/1/98 AMOUNT: $1.1 million per year • CONTACT: Jeannette Semon(203) 977-4590 Hauling and disposal of approximately 10,000 tons per year of municipal sludge for the City of Stamford. New award was just granted 1/1/97. Number of Employees: 4-7 Equipment utilized for this project: 3-6 tractor/trailers • • Management Team WM of New York's experienced,professional management team is a key element, perhaps the key element, in the Division's long-term strategy for growth. The WMI has assembled a dynamic mix of talented innovators, functional experts and seasoned professionals with which to manage the Division's extensive operations and pursue its goals. James Dancy, Executive Vice President for Waste Management, Inc. is responsible for the overall operations of Waste Management of New York. He also has responsibilities for other Waste Management divisions in New York,New Jersey and Pennsylvania. Mr. Dancy has more than 30 years experience in the solid waste and recycling industry. He holds a Bachelor of Science degree in Business Administration from St. Joseph's University in Philadelphia, PA. Some of the positions that Mr. Dancy has held with Waste Management include General Manager, District Manager and Regional Operations Manager. Mr. Dancy has also played a critical role in the establishment and growth of Waste Management International. James Lambros, Group Financial Vice President,has responsibilities for the financial management of Waste Management of New York and other Waste Management divisions • in the New York, New Jersey and Pennsylvania area. Mr. Lambros has been with Waste Management for ten years. He has a Bachelor of Science degree in Accounting from the University of Akron in Akron, Ohio. Mr. Lambros is a Certified Public Accountant. Prior to his recent position, he was the Manager of Accounting and Finance of Waste Management's Group Accounting Center in Morrisville, PA. Anthony Lomangino, as Division President, brings over 20 years of industry experience to WM of New York from the company founded by his family in 1954. His determination and foresight over the years have transformed a fledgling hauling and disposal operation (Allied Sanitation) into a full-service, vertically integrated solid waste management division of WMI. Mr. Lomangino is a leading proponent of alternative methodologies, and continues to be a motivator behind the Division's drive to develop innovative, particle and profitable solid waste management solutions. He as been appointed to the Solid Waste Advisory Boards of the boroughs of Manhattan and Brooklyn. He holds a B.S. in accounting (cum laude) from St. John's University. • • William F. Kaiser, Division Controller,has a wealth of business development/planning and finance experience with both start-up and blue-chip companies. Beginning his career in accounting and finance at Price Warehouse and then Xerox, Mr. Kaiser later established and directed the financial function at Atari's $350 million home computer division. As V.P. of Finance at Electronic Arts,he participated in the growth and development of the company from its inception in 1983 through and following its successful 1989 IPO. Immediately prior to joining WM (formerly Resource), Mr. Kaiser was CEO at Wedge Innovations, where he raised substantial venture capital for this fast- growing, privately held smart tools company. Mr. Kaiser holds a B.S. in accounting and economics, (cum laude) and a M.B.A. in finance and accounting from St. John's University, and is a Certified Public Accountant. Will Flower, Vice President of Communications and Community Relations, works with community organizations, community boards, environmental groups and the news media to foster an understanding and appreciation for the challenge of managing society's waste. Mr. Flower has 14 years experience in the area of environmental protection. Prior to joining Waste Management, he worked in the Director's Office of the Illinois Environmental Protection Agency. In 1990, Mr. Flower joined the team at Waste Management as the Senior Manager of Community Relations in the company's Midwest group. He was named Senior Manager of Community Relations in 1994 and was selected to work in New York following the acquisition of ReSource. Mr. Flower has a Bachelor of Administration from Sangamon State University (now University of Illinois). Charles Gusmano, Director of Business Development, has over 15 years experience in all facets of Solid Waste Management. Previously to his assuming his current position, he oversaw operations at all of the Divisions, Transfer and Long-haul operations. Mr. Gusmano holds a B.S. in Business Administration from Hofstra University. William C. Miller,Jr. PE, Director, Business Development and Special Projects, Mr. Miller brings over 30 years of national and international experience in the environmental field specializing in solid waste management. Mr. Miller is responsible for continued development and growth of the Division's Municipal Business segment. Prior to joining WM, Mr. Miller was a principal in William F. Cosulich Associates, PC a national environmental consulting firm. Mr. Miller holds a BECE from New York University and is a registered Professional Engineer in multiple states. Gary Adriance, Safety Manager, is responsible for all safety and training programs throughout WM of New York. Prior to joining the team at WM, Mr. Adriance was the Safety and Environmental Manager for Interstate Brands Corp. He has more than 25 years of experience in the safety field and served in the United States Air Force for 22 years. Mr. Adriance is a graduate of the United States Air Force Academy in Colorado Springs, CO. -own or Scuthcld Bid FrCiect CED Haul - Disposal Services h2 �.CdSc he'=by states that it 7rCGCSEs , awarded an Agreemen= t.. JSe :he FO11Cwing haul SU.'7CCn-7a=-5 On :h-' S ?ro�ect . Ccr=cast Tc'd=/ ncivi ua Address 'hcne Specialties _ . 7Yuidrn ��m 814$57-7704 Mligkinq 76 Llnim PhAalue 516-475-9197 _ . K-- l�ld SLLlivm RxjU*M8 NY �n4 — _ . Cittgide -- ¢zrna 800-560-1813 Tnr*ing _ Plains 800-993-9493 Taxki g -- lv . Name cr Bidd=r Oas?e Rna52fienMof New York 'u �=�— Caz 5/22/97 .Au�hcrized �i,-natur=) :n with N/A • • INFORMATION SCHEDULE H :own of Southold Bid Project Solid Waste Haul-Disposal Services The Bidder states that it owns the Following pieces of equipment that are available For use on the prnject, if awarded the agreement . Proposed Current Equipment Item Project Use Equipment Location SEE ATTACHED EQUIPMENT LISTING WM of New York, Inc. DBA Name of Bidder : Waste Management of New York By - �/7)_�� Oat= : 5/22/97 NOTE: Any supplemental attachments er modiFicatlons to this Form shail be labeled Schedule S . O . H and shall be properly integrated into the Bid Form . • IF blank not apoiicatie , Fill in with N/ Construction =quioment Scheduie S .O . H BID iPROPOSAL) FORM FIGURE 1 SCHEDULE OF EQUIPMENT TO BE PROVIDED NUMBER TYPE MAKE MODEL CAPACITY LOADERS 2 CATERPILLAR 980 5 C.Y. WHEELOADER or Bucket Equal or Grapple 1 Bucket GRAPPLER 1 EXCAVATOR CATERPILLAR EL300 Grapple or Equal Bucket TRACTORS 3 TRACTOR OTTAWA YARD 50 or HORSE TONS Equal 1 TRACTORS 25 TRACTOR MACK or Equal . TRANSFER TRAILERS 40 TRANSFER EAST 95-100 TRAILER or YARDS 1 Equal Walking Floor i The total number of vehicles will be a determination of the Contractor to perform all work as stated in the contract. Star owns and operates 100 plus comparable vehicles, providing total maintenance and operational experience. Kephart Trucking Co. owns and operates approximately 200 vehicles and provides long haul transportation. Star will provide emergency services for all vehicles within one hour of breakdown or spillage on public roadways . • Icl 125• NEW YORK, INC FIXED ASSETS - TA%XO JAILOR REPORT REL 06.02.01 A I IM14u-n uu(1K-2 FROM 0I-96 TIIRU 01-f -1 12 PERIODS f 14 DATE 01/17/91 TIA, .,3:51 "TY Loc COPC DISICOPC ACCTYPL OESCCDE 802802 802818 200 ______________ ____ _--_ _ ------------ IT ------- R D ACRS BEGN ASST DEPfl INSTALLED ------ DEPRECIATION ----- NET III ti IDIMIII II - --- I I L M D E S C R I P T I O N ===== G S CLSS DEPR LIFE METH _ COST _ __-ANNUAL ACCUMULATED BOOK VALUE ____ ______ _ __________________________________________ _ _ ____ ____ ____ ____ _ ______________ 81820001 1996 INIINNAIIONAL MODEL 4900 T D 0796 0796 0700 81820002 1996 INIERNAIIONAL MODEL 4900 T D 0196 0796 0100 81821)(103 1996 11111 VITALlONAL MODEL 4900 1 D 0796 0796 0100 8182/1004 1996 INIFRNAIIONAL MODEL 4900 T D 0796 0796 0700 81821)005 1996 III IEBRA IIONAI MODEL 4900 T D 0796 0196 0100 81820006 1996 INIERNAlJOHAL MODEL 4900 T I1 0796 0196 0100 81820007 1996 INIFRANIIONAI MODEL 4900 T D 0196 0196 0700 81820008 1996 1ITT IRNA IIONAL MOOFI- 11900 C/C 7 D 0196 0796 0700 8182"(109 USED 1987 INIERNATIONAL IIARVESTER T 0 0796 0796 0700 81820011 CONTRA RFIMR1)RSFMENT FOR TRUCK PAINTING C D 0396 0800 ACC I- IYPI 200 101 Al 1l 10 ASSETS •• OCOPC 802818 IOTAI5 10 ASSETS • • ILI 1:'5 WM UI III YORK , INC LIXED ASSETS - TAX DEPRECIATION REPORI REI. 06.02.01 PACE 2 IM Ine1-A TAA BOaK-z EAoM 01-96 THRO 01-97 FOR 12 PERIODS F14v DATE 01/17/97 TIME 08:0-1:51 1)IV I 0 COP: DISICOPC ACCTYPE OESCCOE 110:18112 802811 500 ---- ---- ---- ---- ------------ ------------------------- ------- R p ACRS BEGN ASST DEPR INSTALLED ------ DEPRECIATION NET HIM NOMBIR =-_-- I I E M D E S C R I P T I O N ===== C S CLSS OEPR LIFE METH COST -- ANNUAL ACCUMULATED BOOK VALUE -- - - - - - '--- ---- ---- ---- ----------- --------------- ------------ 81—15O0o-5- ---------- CAI 980: WIIEEI--OAOER-USE -------------------D T 0 0796 0796 0700 ON 72500.00 10357. 14 61287. 19 11212.81 AL(.I IYI'I 5111) I01Al ; 4 ASSETS 72,500.00 61 ,281. 19 340,030.52- 11.212.81 DIV loc COPC DISTCOPC ACCTYPE DESCCDE fl(G'8112 802811 520 nll5:11112 1III10A11 11011111114; IOIACKE IS T D 0396 0796 0300 81152003 PAIITS INR KOMATSII PC22000-3 SIIOP #50 T D 0796 0796 0700 •"" CUMPIITIII NTTIlUMT111 AS Df 01/96, SALE " ALCI - IYI'I. 5211 IOJAI S 2 ASSLIS "" 11LOP([ 802.811 10IAI S 32 ASSEIS • • • Lit Ulu YONK , !It(: f IXEP ASSETS - TAX �NECIATION PIPOHI Hll. 06.02.01 .'AGS 1 !.: FROM 01-96 TMRU 01-97 fOft 12 PCPIODS F PIY PAIL 1)1/17/97 TIML 0tl;1)1 :51 I MI4t)-A� TAX Ul)(1K-2 Olv I (A; COPc_-_-__---_-DISTCOPC ACCTYPE pESCCDE 802802 802825 200 -- ----- A- - -- � - --- ---------------- ------------ _ ---- ---- ---- DEPR —INSTAL---- --- I TION- ET R D ACRS REIGN ASST DEPR INSTALLED --ANN DEPRECIATION N AIUE Him UUM1111t I I t M D L SCR I P T I O N ===== G S CLSS DEPR LIFE METII COST ANNUAL ACCUMULATED ----BOOK ----- '----- ------ --------------------------------•-----NNIS- - - ---- ---- SINN ---- - -------- --- 82520001 1916 SIRICK TRAILER (208024 T D 0796 0796 0700 82520002 1916 SIRICK 1RAIIER (2080441 i D 0196 0196 0700 825200113 1916 SIRICK IRAII [H (208097( T D 0796 0796 0700 1252110/14 A111111 TR1lCKS1117 T D 0196 0196 0100 I 825201105 1986 MACK TRACTOR #228 T F 0596 0796 0500 82520006 1991 MACK (RUCK T 0 0796 0196 0700 82521)(107 1986 11111. Al UMINUM DAMP TRAILER #6 1 0 0796 0796 0700 82520008 1988 MACK TRACKTORS 7 D 0796 0796 0100 I 82520009 KAY01A - MACK TRIICK T D 0196 0796 0100 82520010 1992 MACK TVACIOR MODEL 011613 T D 0196 0796 0100 1752Uu11 1992 MACK IITACIn11 MODFL C11613 T D 0196 0196 0100 1252001' 1985 MACK IHAC101t #221 T F 0596 0196 0500 125Y00 13 1916 114ACIUR #2111) T F 0596 0196 0500 82520014 1986 MACK TRUCK - #"If 1 0 0796 0796 0700 82520015 1985 MACK TRACTOR #220 T F 0596 0796 0500 82520016 1984 IHU[OAUf IRA II FR 1 F 0596 0796 0500 F 0596 0196 000 12520017 1984 111111 MAUf IItAII Fit T D 0796 0196 0700 8252(1018 1991 MACK TRACIORS #230 125201119 1'191 fitAN:4111 II(AI1fR - #12 lOAOMASTER T D 0796 D196 0700 82520010 1991 11WIS1111 IIIAIIIR - #11 1 0 0196 0196 0100 . 1252"1171 1971 MACK 1RAG1011 1231 T D 0196 0796 0100 1252002' 1991 MACK IHACIOIts T D 0196 0196 0100 8252"(123 86 YANKIE IRAIIFR (lit ALLIED 'T 0 0196 0796 0700 12520/124 R6 YANKIL IHAIIIH (FR AT1,IEDj T D 0196 0796 0100 12520025 86 YANKIt. lItAIIIII (Ili At I. ILI)I i 0 0796 0196 0100 17521)"Z6 87 PATRIOT ([-A AILIID) i D 0796 0196 0100 125201127 1987 YAWL 1HA11ER i D 0196 0196 0700 0 0196 0196 0100 82520078 1981 STI'CO YAHKFI TI(AILER T p 0196 0796 0100 8752"029 117 PATRIOT (FIT All iEOI 12520030 11510 1987 YAW) TRUCK - GIIAMPION T D 0196 0796 0100 I 82520011 1980 MACK TRACTOR #222 T F 0596 0796 0500 82520032 1981 NAIEC TRI AX1E - TKAII-tit T D 0796 0796 0700 82520033 1990 DORSEY BUMP TRAILER T D 0796 0196 0100 12520014 1986 MACK T11ACT1111 #225 T D 0196 0796 0100 125211035 1985 MACK TRACTOR #232 1 D 0796 0796 0100 82520036 2 8[NSON DUMP TRAILERS 1 D 0796 0796 0700 125201117 11:•[" 1990 1111 STELL DUMP TKAII 1 0 0196 0196 0100 I 8252"038 1985 I'It1JEUA0f IRI-AXl E DUMP TRAI1 ERS T 0 0196 0796 0100 ; 82520039 1986 I101E11AUF THI-AZLE DUMP IRAIIFRS T 0 0196 0796 0100 /2520040 1983 IHOFIIAOF THI-AXLE DUMP IHAII IRS T D 0196 0796 0100 825200111 1992 MACK THACIOR MODEL 1:11613 T D 0196 0796 0700 82520042 1986 MACK IMACIOR MODEL R14713 #245 1 D 0196 0196 0100 825200113 1990 FRUEIIAOF STEEL TRI-AXLE PUMP TRAILER T 0 0196 0196 0700 825200114 1987 USED MACK IRACIOR MOOLL RN613 T D 0796 0196 0100 12520(1115 1993 MACK TRACTOR MODEL RD688S T D 0196 0796 0100 0 0 • 1 f•"� WM OW Y011H • INC FIX[V ASSETS - TAX DEPR .FION REPORT HEL 06.02.01 PACE I 13110-A TAx ..•OK-2 IRON 01-96 TNRU 01-97 FC. 12 PERIODS F14Y DATE O1/17/91 TIME 08: it --------- - - --------- ---- — - ------------- V IOC C01'C DISTCOPC ACCTYPE DESCCDE 802802 802813 300 ---- ---- ---- ---- ------------ --------------------—--- ------------ ------ -- -- -- ---- '---- R DACRS BECN ASST DEPR INSTALLED ------ DEPRECIATION ----- N ET IM NUM01e -- - - I I L M U L s C It I P T 1 0 N ----- C S CLSS DEPR U FE METH COST ANNUAL ACCUMIII-ATED BOOK VALUE --------- -----—----------------- ------ - - ---- ---- ---- ---- ------- ------ 330002 REFUSE CONIAINFR 22' T D 0796 0796 0100 330003 CONTAINER 25YD T D 0196 0796 0700 330004 26 YD CORIAINIH T D 0196 0196 ma 330005 TN0 26YD CONTAINERS T D 0196 0796 0700 330006 11111117 22 YARD TUBS T D 0196 0796 0700 330007 ONE 25 YARD CONTAINER T D 0796 0796 0700 330008 ONI 25 YARD CONTAINER T D 0796 0196 0700 I .330009 Ott[ 25 YANG CONIAINEit T D 0796 0796 0700 330010 TWO 25' CONIAIIIERS T D 0796 0796 0700 330011 22 YD CONTAINfli 1 D 0796 0796 0700 .13001' JC INDUSTRIES I D 0796 0196 0100 330013 COt11AINER 1 D 0796 0796 0700 130014 1 1 1/4Y11 1 LY0 1 IOYD k 125YO CONTAINERS I D 0796 0196 0700 1IM)Ili f10 F([ NO CONIAINIRS I D 0796 0796 0700 351111112 CIIMI'Nf SSOR 5111' AIMAl 1 1) 0196 0196 0 1 D 0196 0196 010 .53111111: COIIIAINF NS ACC IIYI•I 111111(11 AIS 16 ASSETS I DCOPC 802813 IDIALS 16 ASSETS I 1occ _T;ca 5RW 2encer Insurnnce. :mc. TO 171H6co7Q°8. P.89 ALLIED SANxTATION, =. , ETAL. SCEEn= OF sgumma NT CONTEST= ------------------------------- AMOV= OF YEAR DESCRIPTION ID/SERIAL HMMER ISSLRANCE ----------- --------- 079 1988 CAT %EMR EXCA MDL L3400A 4NF00325 $ 92,500 080 PULE JET FABRIC DUST COLLECTCiR $- 40, 000 081 9 MAXON BAND-FIELD RADIOS &. 2 PORT CSARGERS $ 51000 082 AT&T COMPVTER $ 65, 000 083 PORTABLE FORKLIF SCALE. $ 20, 000 084 TRtrilMEL BARRIER S 55, 000 085 1990 CATERPILLAR 980 5 227, 000 086 1992 CLARK MDL DPS 30 DIESEL TIRE MMT TRK ACCES 5 26, 154 087 L TOR= SELF CLEANING DOST 7703, MDL 770455 S 2,500 088 L TORIT BAG DUST COLL g 1 800 883383 & TJ1390-355 • 089 2. ERTL BALER MDL U1295 $ 45, 000 090 1 CAT TOOL CARRIER g 76', 000 MDL 1T12B & IXFOO694 091 FORKLIFT 5 20. 000 092 GRAPPLER S 120,000 093 MFG BELT FEEDER $ 225, 000 094 SYSTER MDL H80XL2 FORK TRUCX GOOSDO420IR $ 26, 800 095 SYSTER 14DL ABOXL2 FORK 7RUC7 G0051)0420OR $ 28, 800 096 :994 CATERPILLAR 936F BAC01411 $ 127, 500 097 CEN-1-RAL MFG CO. ROTAR': SC7=21 $ 45, 500 098 CATERPIL:.;+R EXC'"7ATOR 32CL 9KK02511 5 i321500 099 CAT ?,'HEEL LOADER 95OF SSKOIO82 S 115. 000 100 SYSTER FORKLIFT tMLU80XLZ GOOSM055883 $ 28, 800 101 OFFICE TRAILER OL104401 $ 91500 102 1 SIMPL 51X15 FSLM3RW/2GR $ 43. 940 103 1 SIMP SPEC.LOW 6X20 3 DEC7 $ 52, 110 104 1 $TRUC STEEL SUPT +7/C_-TJ S $ 54, 770 105 CAT MODEL 936F :T NQBEEL :OA:E 8A,01411 $ 125. 000 106 HYST'oR GOOSLOSS89S 5 28. 000 107 1994 KOMATSU WHEELCADER '�ASvO A20840 $ 285, 000 108 1994 KOMATSU MODEL 2C4CO 21154 $ 225. 000 l09 1994 KOMATSU MODEL PC200 A71238 $ 200. 000 110 CA:'?PIL:++ec CAS GENEPATC= 4EO0273 $ 295.000 ill _993 1;TERPILL.;.R ' 5ELLCAD = 75KC'099 5 190 , 000 ill MASTS 7APER SO_RT:NG SYS $ 105. :11 113 3 L^7I7 SET CF CFFIC3 >:=E=S 5 71. 195 114 OFF=--Ai AI:,cn ;T hO0^ST='n 65 0 7127 71 • CEC-2E-1 JS :2:5E FROM Eender Insurance, Inc. TD 171EG29MM P.07 ALLIED SANITATION, =C. , SIAL. SCM2MVLE OF EWU PHENT A1m0= OF YEAR DESCRIPTION ID/SERT.AL Ii1WBER INSURANCE ---- -.-_------- ---------------- --------- 001 1988 CTITERPILLAR GENERATOR 81205532 $' 64, 950 002 1985 HRS 10 BALER 2024 $' 250. 000 003 DETROIT DEISZL GENERATOR 6227-3 $' 30, 000 004 1988 R&zEMAGROCX CRUSHING PLANT HU1314 V 495. 000 005 1987 LI2mmo" WOOD SmuMDING PLAITT 860-044 $ 400, 000 006 1987 LINDEMANX CODTTRUC:ION WAS-1Z 861-030 $ 584, 000 007 1988 NEW HYSTER FORKL_7T I+9 HIOOX2. FSA-6221.7 $ 30, 092 008 1989 NEW HYSTER FORKLIFT MD HBOXL FOOSA07894J $_ 31. 95C 009 1985 KOMATSU 032A TRACP;MACHXNE 33036 $' 35, 000 010 1989 USED CAT EL300 EXCAVATOR 4NF289 $' 2.65, 00[ 011 HEAVY DUTY EDGE TROMMEL AD0241 $ 210, OOC 012 1991 CAT 980C WHEELLOADER 63XB984 $ 262,00( 013 1993 TMMATSU FRONTTEND LO ER A25340 S 203, 00C . 014 LINDEMAZNN DUST REDUCTION CMV S: 331SOC 015 1991 CAT 980C WHEELLOADER 63X9012 S 262, 00( 016 1988 GENIE BOOM 45881859 $: Z5. 000 017 LnMEMANN S C PICKING BELT 4565-6 $' 159, 750 018 1988 CATERPILLAR 980C WHEELLOADER 63XO7917 $7 140, 000 019 1988 =MATSU 220 GRAPPLER 222246 $ 67, 50( 020 1992 SCREENING PLANT NEMA ELEC- PAN CECBX1.2 $ 58, 65: 021 1991 NEW ALLIED t-IDL VZ PESETAL BOOM 1341 & 1342 $' 109, 00' 22 1990 KOMATSU PC200 LC-5 EXCAVATOR A49872 $ 100, 00 023 1992 KOMATSU WHEELLOADER WA45O-2 A25218 5 208. 90- 024 1992 KOMATSU THEETLLOA:ZR %•tA180-1 A75148 $' 87, 7.0 025 MOD 723 PORTABLE TROMMEL W/CCN 723 -04129 5 18E , SC 026 1993 HYSTER FOP.KL2=1 MODEL HBO= GOOSD0lS1OP $' 27, 97 027 1978 TRACT MOBILE MODEL 9TM 9866 $ 70, OC 028 1993 KOMATSU WHEELLOADER WA1SO-1 A75320 $ 82. 5C 029 1993 SYSTER MODEL HSOXL FORKLZ T GOOSDO181SP $ 27. 97 030 1.993 KOMATSU WHEELLOADER WA450-2 A25340 $ 203 , OC 031 KOMATSU =RAMZC: EXCAVATOR A71397 5 190, 0C 032 KOMATSU EXCA':ATOR A25386 $ 194 , 0C 033 KOMATSU EXCWZ:,TOR A80039 S' 160 . 00 034 KOMATSU EXG+VATOR A80069 $ 160 , OC 035 HYSTER FORK:,:FT GOOSD03139R S 28. 0C 036 KOMATSU WA800-1 A20886 $ 236 , 0[ 037 KOMATSU WA 420 : A25084 5 165 , OC 033 KOMATSU PC Z:LZc' A30161 $ :-60 , OC 039 KOMATSU PC 200 LC5 A71481 $ 190 . OC 040 LAECUITl-i CONCRE%Z :ULVERiz'R CF80101 5 28 . 90 041 KOMATSU WA 250 A65423 042 KOMATSU WA 250 1 A65438 $ 94, OC • C�b Tra 0--itrs • 1=. 09/1993 01 KEPHART TRUCKIIIG Equipment Information iM --------------------- ----------------- ;--- _________ --------------------------------- 1004-002 1986 FREIGHTLINER Tractor Lease : Model : JOAN GREEN Lie: AA64596 1004 SIN : IFUPYDYBEGH277777 State : FA 1004-003 1988 INTERNATIONAL Tractor Lease : Model : HAROLD GREEN Lie: ABOS470 1004 SIN: 2HSFBGSR9JC01Z26E State: PA 1004-008 1987 INTERNATIONAL Tractor Lease : Model: Lie: AB12609 1004 SIN: 2HSFBJXR6HCO8477= State: PA 1004-013 1.994 FREIGHTLINER Tractor Lease : Model : Lie: AA64594 1004 SIN: 1FUYDDYB0TH8802CE State : ?A 1004-015 1994 FREIGHTLINER Tractor Lease : Model : LEWIS UIXON Lie: AB39224 1004 SIN: 1FUYDDYB2RH8E0209 State: PA 1021-008 1965 PETERBILT Tractor Lease: Model : Lie: ABOO142 1021 S/N: 1XP9D29X7FN19213_ State: PA 1021-009 1987 PETERBILT Tractor Lease : Model : Lic: AA91239 1021 SIN: 1XP5DB9X1HN21723t1 State : PA 1045-003 196'* FREIGHTLINER Tractor Lease : Model : Lic : AA72213 1045 SIN : 1FUP2RYEEJR33=52.! State : ?A 1098-003 1993 PETERBIL' Tractor Lease : Model : TIM ELWOOD Lic : AA43092 1098 SIN: 1XP5DB9X9FN32=97? State : ?A 2004-001 1988 PETERBILT Tractor Lease : Model : Lic: AA85414 2004 SIN : ' XP5DB9X,JN2c337m- State : ?A 20136-003 1965 FREIGHTL:NEP. Tractor Lease : Model : 350 Lic : "A84876 2086 SIN : 1FUEYCYBY.F?269217 State : PA 3026-003 1983 :NTERNAT::NAL Tractor Lease : Model : RECCNSTRUC-EC Lic : AA77�54 3026 SIN : =K7180PA State : ?A • 9075-003 1988 :VTERNAT:CNAL Tractor Lease : Model : Lie: AA87568 3075 SIN: _HSFEX6R3JC0C6923 State : ?A 3086-003 1993 'FETERBIL.— Tractor Lease : Model : B.DEANNE EL::00D Lic: AA44226 3086 SIN: 1XPSDB9XX?N333324 State : FA Ile 'EF.HAF: rn, - Equ , pmer,t : r i:•rrnat i un 1Er u- • __ - -------------'--- ----- DurnR�r.ai I er . : _ FRUE'H.AUF -- L Mc.oelState : PA -_ =nUEHAUF =urnp Tr-a1 er L i c • TT:.41",i Moa. cl:ate : = a L'j'i! FRUEi-.AUF nluinp Trai I er M :aeI .- — St=te : PA 5/N: IH4C,i,�:3_1LF O1�_0_ RUEHAUE __ _ _ ❑rune Tc, ler - _0 r7 Lir-:1_L:•547 MJIle II ^tate : PA CIN : 7 Fl at Model : state . .—. Dump Tr ; ' er 1317:% 1• •ar;, FRUEHAUF Li :_ ; T'.-'f,v '= _—.—• 5/N: 1H4D0:32'_3Lp.0115()-: - •-;:UEH.AUF PA �crjq 7 - :�- - - .. - Lic M.,,7e AUF - - el - =tate : cuniiG Flat _ _ M :eel ' -- Flat sic : -.._ _ - - MoceI - � -�4F -- ^urne 'rai er Fla t _-- — — Li c State : = a ---- - -- - - -_ F1 at EH hoaeI _ _ - -- Equi [•rnert ;nfarrnation genu- • - -- ---------------------------------------------walki g F! oor-----------�- i1C- - 1:':_ Li na E: Lic : "Al m I _ .a- State : PA ;•:,ae_ DGFSEY _ ._ 'A 14 WaIL: ing 1 1'O 1`." OOFSEY Li c : ';A-'-` 45 _ Model : - - FA 1DTW1CWZ4NF'O--,C e55 state DORSEV —Walitia3 F119c _- 1144__-- �:. ;• — Li c : `:A1 .115 Model : •=tate : '=A :/N: 1DTW 1:W.:.I�NFO lo45^ DuFSSLl c Si N: :DTW1iW' :"rF '=C'o _1 Li c i "A V:?11-_ mo el : —' State: PA i C'TW 1 'W'Z—"NFi.` Ll c Model : -PA S/N: LDTWI WLINPO=JcB: 't" e .: i : F. ing FI •;or OORSEY NOaL I - ate : _A .. . ... ; lira 19'i ._ F cc ! I ':A 1':' : _. 1=SA- 1 :- uGnS Lic : 1;A.:Z..7 ; _111 1' DGF M.0 e • I :. c , O I c' �; - TRULY I NG= - - -----Equipment -nf<•rrnatrun (Mer. ---- ---------------- -------------- -urn Trailer :!A,:TE= [J:—T --_ p _ . . _._ Mn•jel Lic .. TSc• S/N: State : FA F I at . . ,!.>G : I TL'241',' Lic : /Ci: 1TTF•:5_O .i ,_ _ _ . _ State : Pk— C) _< 1939 TRANSCRAFT Flat Mooe1.:_._TLSIOK _ __ : StatePA StateI`'�n30 S/Ns 1TTF45_ :'=h.1V_ :_cy s p:?rr;r 19��DQF�EY Flat Mo.ie i • DGTLS'i'-i� Lic : TT540: _ S/N : 1DTPI�.WZ'fPFO_7 _,=. FA u 570 1-PS DORSEY -- Fiat - --- Mooe 1 : DGTLS'='<` Li c : S: h: .iDTF15WE7Y:Pi _-�n� tate : P.A. _ FGNTAINE :arv. ingi.Fr F1 it - mo-Cei ! E33JA'.ir1W- l-iAW _.- c : TV1• ?':•_ • ._ •;• •.•1r. F Y -. Stara : PA 1T.c v D FiSZ,-, -El.lt- Mallei : DGTU-:'4 r_ic : TVLic : Mp.�el ^uTL Lic : TVrjglc •.: _ Mr.,iol ^GTL_'' -- - .. _rc : TV'`�.�1� State . �a Model OGTL'c7 Lic : State : Fa Mocei :)GTL'.-9 Lic : 7V4•: : 71 _^TF1 :W__LF:C=_ __- -- =tats : - F; P71 It o/N : - �TF I t w F .:t3te : - •- • _ - _ usF':; 1'" '., CFSE' Fla tLic : mote JTGL- State : =a - t Monet : DGTL'o9 Lic : :77 :DTE1.7W :_.4 v _ .tate.: =4— 'RV- PON- • :,. : • 1 KEFHaP, ' TRuCt,irlu -- Equ: prnent Inf .: • -na±" -. Ment ;U7L ------- --- EAST ----------- --- - - --- -----".---,-_---'--- -------- Mr,Q2 ; UNLOADEF.. • .c. - _ Llc : _fat ? y 407: WalL: ir,� Model UNLCADEr./RE11TA. gtate : FA 19i 03 EAST_MFG Nal t; i ng F1 oar f —_ Mede i : .UNLQADEr%Rc?:TAL Mase : FA ,:,IN: M14: _: ?e4-EAST `IF..G —. _Dump M0.]e I -- - - =tat' , FP -._... _ .. .. :Jump -r a: 1 2 r - - --- .G4aV V. _' EAST MFG Li c : 7L6'0T6 Model : FA ^ 1N: IE1D_Fi= 19S5 EAST MFG - - LiL:SY4304� .----- _ . Mo.1i: • SIN. tE1D'= EAST. MEr, _ D•::nF' . . r-11 Dump r.•ai ler .—__ r !•?r_`.c�. nFG -_ -.�. . Ti3a.. 2r _ Li c : TN'c'.77='P . . del - - ='A CA -- - - - - 'tSC= : ep Til:_ ;1 - . . ul ._ t.EtHA T TRUCY.ING CC . — ent Informa.tion iMerr. ------------------- -- ----------------Lic : ------- -- --- IliimR T••ai I er - 1 .-006,- ?TO_.TI�f. t: —• Len=_ E : Model : - _ PA TI2Z. S/tt: T6I-- ---- 71:;_ -Ti,4: ; i•. TO TRAILCO 713::.-'>1G 1'% . Dutnp Trailer Lich•^ :.ease : - MOdei :-- _ jPA 71� : SIN: 4t, •q rr*• 1775--XRAILCO Dump TrZ: ler Lease : Model : PA 71'x= ^/N: 1065E - - -- --- F 1 at 1%''3 RAVENS I_ic : 7V4I. •77 Lease : Mode I : LGL: TF:'_T _ 74 --8/N: IRIFZ45at _7=J5�^ T'• 13-4-00_ ISS5 vIJLCAN L 1 c M ,el ,ILic: Leasa : f, •• - Stals . ='s 71:34 'N: 1 LZF-LS-,_F 101; '•Q o. . - ... - -- 135—•jil� nANSl7i%.: -- Lease : Mociel jOHN DAMS 3t:te : PA il := ;illi T. �__. _. i•._ . _ ' _ — Walling Fla•: ' mo.i /N:-. 1E1 . ..._... _.... . - - . i'Pc EAG . - i _�— A.:1 =tit ? . .. iE1FIWZc._nL:j _. I :FC:._71 —. /•x• EASTMF-G- - — Lr c : 1V169; 61 Model . FA — Lic : I»r„7e I Etate FA . . ... ._.Flat -- o•1Pt,. - _tate : =A Wa-1 i. : r. 3 fr-c,c,r _ rlcaae i -taLLAL — AL c : ° :, EAE7 -cr c., Lic : :tats : . FA • 1Lf„<. . : ; •_ _ J1 EFHART- TRUC},ING C : -- Equ ; ,menc Infurrnac M-�• ------------ - - -------- -•;L� + ' EAST MFG _ _ Dumc. Trai ! er _ Lease , Mc,-i JE=- FJi 'oo_: L, C : TT41=' 1 :tate : S/N: :ElF'yUL ?KRE104GS -um p M4 ie I : ^LY'+"' ENGLI=H Lic : Leasa : _ SiNF-:E1F''t.LG�LFD117s.= ..::>- ='4 70.59-oc') 1558 RAVENS Flat _case : — Model : GLEDIN 3TUGL: c__}: ' - — ' '- 7hr5'•. S/N: IRIF444L4FE:58'>7 4•:, State : OH RAvOI -- - -----FI at__-• - Lease : Model : ARTHURCCDL'- _I c : T''Sc+�.. E.=T1 '' Sta.-.a : .'H _ERA Lease : Madel : }:EVIN MEYEF. Lic : TS A .. "'D:._ :�E} 11�31== dtasa : FA _ :Ni- INE Flat Laa.sa : — MadQ a.l : FrJM NA� Lic : • :='A Ti): /N. : IN1t Flat -- - 4 Lease : I-Ar!-: 41 _, c . _a ase . - � Fnn ��,. : " - -' '_ • _ S/N: .r - tate . = � 7YG 708c otat2 : /N : 'i'1:'.^_• 4- :/:may nhV1_'' _—_ _ - _ease : 41D. - ,_C. .�c . - --- - - i'.,J- 1 . ,•2 _'Ai .tate . a. �.. - - • - at _ease : r ., :ai DAVE .:'77 --ClN: . D•TFlcw�. .�+��- - _ =tata . ?A--.-- 40a ~h • _ <, , , r. i 11 _t.E:HART TRUCFINCi CC ---4 - --t i ----Mer. 117 . _ :�� -- li _ . .; :. J Du::.c , ;-atter' -- ' Lease , Mn,e1 : —. TM1 44,� FA c.:-- .FG Ducnc• Trac ler Lease : Model : C.CEANNE EL6.•=0D _ : _ . -. .47=0 tE1 D2DOFFFI::.".__� St3ta : .-.. 1 CC,SS F1 at �; Maae.L�_EZ.=LE=c -_ Lis-, L-7 17 State : F; Df'RSEY_. _-- .. Dumc Trai_l.er Lease : Msa21 : 70M MA. Lic : TP7d�1B State : FA - - -r at i at* Lease : Model : Ci01j WELLS Lic : ar,:;� /Ni _�•'F,A ,1=l:llC1 StatE : - DurnG Tr'at 12r 1): 1)O- Ls s a : - • .1) S:'N: ST �iL: ��-- - - • -- - ?r state : PA -- 1'-. WIL1:S::S ytalJ:�t .Ft r _E _ e , nc •;el _ic : 7 . �: :d•: - - State : PA Q%)4::: Tr 11 n. —e3sE : _ - - - 71- 7 -,Fu L-- T7_'. . LEa = }ate : � �1D1___ . -_•, L";ao Sral ' �� >_7.✓.A VA=N . 710' _ -_ M.i•:2 1 `T:'J:'Cal) PR1D1 --- Stat _ =A . T� MARYiN MvEFc -•-al ar T _ .late ..J_p . . _ - _ M)•]2 1 _ACY::E `+EF. _, c -'f 1 _2 ase . -. U1 FIEFHART 'nL_ : ---- -------------------------------- ------ �� -;EIGHTLINEn M:,oe : . FLC:1 p:_4ST _ '1: .FU'!=G'!C-•`_ -n3=_1': i �taCE . yFA ;e • U':i1:c -A :11 . : bEF'HAF:T TRUCY:•IG CC T.q mer. I rl t .r o,at l on' (Mem - - --- ---------------------------- ----------------------------------------- I:aS'I :NTEF.NATIANAL—__. Tr'c ''r -- 9 e l •�' -.r: L i C : AA44bo6 SIN : MSFL;�ZEL:ShC.:44`_ at .: INTEFNATIC,NA_ PA '•4 1'?_:� :NTERNATICNAL Tr-act: r MaxLg.L... *:,QQ _ .._1..15.:_ ,iA4{._•_'�_ . C/N- _HSFSXZR7EC:0=44c-0 State : PA 1 IbITEENAII :(IAL _ . - __ Tractor Mn7e 1 •:rogq ... : c : i,- State : FA 1' :_'• :r-;=,..:TICNAL Tractor -- Model : 93001 LIc . AA41•_7; S/P1: _.r..!E!'�'::Z.^_.. r J`14�- -t&:2 : PA 7 19S,:, INTEF.NATIONAL Tr ac for • r".v1� , .'_. _ _ _031.. S/N: '�=F.''ZF•rn rq- • : t .tate : PA -==-I3HTL:'IER —..Tiactar _ M:•ae I L r : �+: . . _ State : =A Trac - ., —ACF. aC C : :- - - Iire AROG'�,74 Tr•aC: : r- —._ — M"4e ! FLC1=0 :-ST _Lic : �F3L2 : `A 1 - - =REI ::;,"T'_:.,cr Tr' aC : . � Trac : r alt _ 13'c : - cc_ _-+T•__':=.F - __ _13to : ` 4 Ri i i ! ❑ c =tate_ : a =n�AFT TRUCI' ::.0 }: Equip:nenc :.: : . . mat : :rn 'M_nc • -------------------------------------------- ' ----- -------- -------- Tr• _ctt _ — " FRE: =:'TL:t:EF. Mode i :-..BU-KARL _'-:' ease : FA - _ `I: :�UF'i^_Y33FH�cc54u State : act or J Lease : Model : OLAN SMITH Si.ats FA Tr ac 1: 1<;v - ?1 1•a:=:? GMC e Mh�7e l L-'ILL ALLEMAN Li c ;_ —. -- ase1._. :nate : F'A. S/N: 4VIWDLJFIF,M:.!_1 :- Tit ac' rIL._ri�I 19'='0 MA. - — —Lic : AE_ .ease : M.;.:el : EP ;AF'4(:H ^�- -_ • F'` 15' _i i l 1::?ci WESTERN STAT: T :u_Llc - ,- �,, - M1t,E HUSTED es= ' State: FA _ -- 71 1:-' - F•ETEF:EILT Tractor- o•; Model MI:HASL L P, - r_eas _.--, _ter.• " State: FA LN' - • _ - _ _ _ _- Trac ' _ I-ease ; Me.del DWIGHT !LL_ 0_7: 1 'stats F£TSFEILT 1 °� _a =TAF Lease : —m c. e.l : - .- 4 � 71=: SWV;F'DCCG7F} '-'11 - i'V. _INTFENwTTQNAL c Lease : Mo,ieI GF71=c =rata : FA ----- T,-ac : AG_ _ : ,7 Lease : Mr,aei JOE :L: -: i-=-. - = cA 71 ZY 1%; EUeMILY-C 17 ___ -rac - '' --- - - Lease - -- --- - Tr•aC : >r : Sc ENWuFT 'Lease . rt.�.:el _ =tare : - 71'_�- - - • 12.'09/ 1993 01 KEPHART TRUCKING _C Equipment Information tMer.0 ----------------------------- Trailer 4028-002 1989 DORSEY Dump Lie : TP76815 I-ease : Model : TOM MANEY 4028 SIN : 1DTD38N28KP0'27204 State : PA 787-004 1989 TIBROOK Dump TrailerLie : TH23052 Lease : SIN: lT9EAAT28KB0210lU el : BOB WELLS State : PA 4087 - Dump Trailer 032-002 1988 TIBROOK Lie : TS47398 Lease : Model : State : PA 6032 SIN: LT9EAAT263B021330 Walking Floor 048-003 1988 WILKENS Lie : TY40789 Lease : Model : State : PA 6048 SIN: IW92M45243BO77171 Dump Trailer oO98-003 1985 COBRA Lie: TW97302 Lease : Model : State : PA 6098 SIN: 1C9FA39B2F2133458 • 7031-002 1985 EAST MFG Dump TrailerLie : TT30960 Lease : Model : State : PA 7031 SIN: 1E1D1S28:FRB0633E Dump Trailer 7031 -004 1967 RAVENS Lie : TT30960 Lease : Model : State : PA 7031SIN : 1R1D1382=HE8 7000'5 Flat 703"2-002 1991 FONTAINE Lie : T762688 LeasModel : MARVIN MYEF' 7032e Si N : 13N145308!1155 '_ 35` State : ?A Dump Trailer 7034-004 1993 EAST MFG Lie : TD72164 Lease : Model : TUFFY 7034 SIN : 1E1F9U266FRJ1388c State : PA Flat 7036-005 1989 RAVENS Lie : 7Y53133 Lease : Model: RICKY PARRETT State : FA 7036 SIN % 1RIF1452OKE89108 Flat 7036-008 1992 RAVENS Lic : TY12716 Lease : Mode ! : JACKIE `:EFF State : PA 7036 SIN : lR1Fv4521dJ9-'_ '_46 70:38-003 1988 -RANS-FFlatAFT Lic : -Y2'-638 Lease : Model : State : PA . -7038 SIN : lTTF45207J10=0993 1990 7RANSCF.AF?' Flat 7043-00� Lie : 7Y44162 Lease : Model : CHARLIE EBEF.HAR : State : PA 7043 SIN : :TTF4520SL1034067 1993 TRAE Flat ILMOBIL 7043-004 Lie: T242210 Lease : Model :, FRED COBSON State : PA S/N : ! PTFS17S1F9007924 01 KEPHART TRUCKING ==. Equipment Information 'Meni- ---------------------------------------------------------------------------- 7116-006 1993 EAST MFG Dump Trailer - Lease : Model : ED RAPACH Lie : J94857 ME 7116 SIN: 1E1F9U281FRE142SO State : H£ '7119-002 1984 HILL AND STRAUS Walking Floor Lease : Model : MICHAEL LAIR Lie: TY31698 7119 SIN : 1A9SXT82XE1022075 State : PA 7119-004 1994 EAST MFG Walking Floor Lease : Model : Lic : TEMP 7119 SIN: lElUIX284RRK15760 State : PA 7119-006 1994 EAST MFG Walking Floor Lease : Model : Lie : TEMP 7119 SIN: lElU1X286RRKI `76i State : PA 7120-002 1989 FRUEHAUF Dump Trailer Lease : Model : DWIGHT MILLER Lic: T540948 7120 SIN: IMD03823KK000102 State : PA 7123-002 1980 RAVENS Flat • Lease : Model : BOB MAR'ZHALL Lic: TS57902 7123 SIN: 80718 State : PA 7L29-002 1989 DORSEY Flat Lease : Model : JOE BLICKLEY Lic : S31-77B 7129 SIN: ILTPl6W2'_:'PO=,057 State : ME 7129-004 1990 T.RANSCRAFT Flat Lease : Model : JOE BLI,KL=Y Lic : XA13035 7129 SIN : 1TT745206L :O'3 =S°4 State : PA 7130-002 1989 DORSEY Dump Trailer Lease : Model : BERNARD 70LrAR Lic : TZS`-338 7130 SIN : 1LTD3SN21`'D0= 21= State : PA Pump Trailer 7132-002 1969 71BROOK Lic : '17 Lease : Model : State : PA 7132 SIN : 292293 •7132-004 TIBROOK Dunp Trailer Lic : Lease : Model : State : FA 7132 SIN : 22562259 7132-006 1970 -IBROCK Pump Trailer Lic : '"Lease : Model : 7132 SIN : 37631377 State : FA • 7132-008 1976 TIBROOK Dunp 'railer Model : Lic: Lease : State :: PA 71.2 SIN : 75310 1970 TRAILCO Dump -railer 7132-010 Lic : 7T Model : Le Lease . State : PA • 121,09/ 199? 01 KEFHART TRUCKING CC Equipment :nformation (Ment ---------------------------- -------------------- KMJ602 1984 FRUEHAUF Flat Model : Lie : TV46176 SIN : 1H4P045Z- FF017602 State : PA KMJ604 1984 FRUEHAUF Flat Model : Lie: TV46178 SIN : 1H490452::5:'017604 State : PA 30 Equipment Items listed • • • 12:09/ 1993 01 KEPHART TRUCKING Equipment information <4e7 ---------------------------------------------- ---------- 24 SPECIAL CONTRUCTION Flat Model : LOW BOY Lie : TM12425 SIN : T55183PA State : PA 3 1992 SPECIAL CONTRUCT:ON Flat Model : WALLYS TRAILER Lie : TS87373 SIN : SW50796PA State : PA 31 BOSS Flat Model : EZ SLEEP Lie : TN61253 SIN : L6DSF0826GP000317 State : PA EZ1 1986 BOSS Flat Model : Lie : 7N61253 SIN : 16DS70826GF000317 State : PA K0840 1989 TRANSCRAFT Flat Model : TL90K Lie : TS14172 SIN: ITTF4520OK1033073 State : PA • K0850 1989 TRANSCRAFT Flat Model : TL90K Lic : TT54030 SIN : LTTF4520eK1033269 State : PA K0860 1989 DORSEY Flat Model : DGTL8945 Lie : TT54033 SIN : 1DTPI6W25KP0=7364 State : FA K0870 1989 DORSEY Flat Model : DGTL8945 Lie : 77!4032 SIN : '.DTF '.5W=7KF0=7*:6: State : FA K0390 1990 DORSEY Flat Model : DGTL69 Lie : 7'104108 SIN : 1DTP16W2°LFO«423 State : PA K0900 1990 DORcE1 Flat Model : DGTL89 Lie - 7V04109 S/N : State : PA K0910 1990 --ORSEY Flat Model : DGTL89 L . c : 7V35014 S/h : _DT?-cwG _. _ _ Y_Y State : PA K0920 1990 :ORSEY Flat Model : DGTL89 Lie - 7735013 . SIN : :DTP'.6W2CLF02=425 State : PA K09,30 L990 =ORSEY Flat Model : DG7L89 Lie : 7V46171 S/N : :DTF16W26LF026427 State : PA K0940 1990 CORSEY Flat Model :• DGTL89 Lie : -V46172 ciu . .. �ro, a�z^41..^-p42� State : PA • 13. 09/ 1993 01 KEPHART TRUCKING Equipment Information lM ------------------------------------------------------------------------- K0660 1988 RAVENS Dump Trailer Model : 10396468113941 Lic : TS14178 SIN : IRID13923JESS0442 State : PA K066T 1986 EAST MFG Dump Trailer Model : Lic: 7V35015 SIN: lE1D2R286GRE07383 State : PA K0670 1988 RAVENS Dump Trailer Model : 10396468113941 Lic: T247572 SIN: IRID13925JESE0443 State : FA K0660 1988 RAVENS Dump Trailer Model : 10396468112941 Lic : TS14176 SIN : 1R1D13926JE8EC533 State : PA K0690 1988 RAVENS Dump Trailer Model : 10396468113941 Lie : TS14175 SIN: IR1D13929JE860534 State : PA K0790 1985 EAST MFG Dump Trailer Model : Lic: TT43754 SIN: lE1D2R38ZFRJ0598c State : PA K0800 1989 BAXTER B17ILT Dump Trailer Model : Lic: TS87379 SIN : 1B9D2402!�KP15580�4 State : PA K0210 1989 BAXTER BUILT Dump Trailer Model : Lic : 7ES7378 SIN : : 59D24027FFI1 QOCc State : ?A K.1290 1987 COBRA Dump Trailer Model : Lic : 7:787734 SIN : 1C9DA36C2H1 : :38S= State : PA K1300 1969RAVENS Dump Trailer Modei : Lic : 7Y572SO SIN : :R1D:402_`'.ES9=C66 State : ?A KB1C9 19BE --. .AST .FG Dump Trailer model : Lic : 7735010 SIN : : EID2= == =ZL - ==6= State : PA KB110 1966 EAST ".FG Dump Trailer Mode 1 : Lic : TV35011 SIN : ! E1D-F2S7CZL:6866 State : ?A • KB111 1985 =PEC:AL —_2NT7UC7_: CN Dump 7raile9 Modei : SIN : 7R766331A State : ?A KJ ' 2.? 1988 FRUEHAUF Dump Trailer Model : Lie: TS40957 (Z/N. , 44n^942?:{044 c0"' State : 0 13:09- :992 01 KEPHART TRUCKi?.3 Equipment Information Y ---•---------------------------------------------------------------------- K1090 1992 DORSEY Walking Floor Model : Lie : XA18111 SIN : 1DTW18W27NPO30651 State : PA K1100 1992 DORSEY Walking Floor Mode 1 : Lie : XA18112 SIN : lDTWISW25NP030650 State : PA K1110 1992 DORSEY Walking Floor Model : Lie : XA18113 SIN: 1DTW18W2ONP030653 State : PA K1120 1992 DORSEY Walking Floor Model : Lie : XA18114 SIN : 1DTW1EW2'_:4P030654 State : :A K1. 130 L992 DORSEY Walking Floor Model : Lie: XA32945 SIN: LDTW18W24NP030655 State : PA K1140 1992 DORSEY Walking Floor . Model : Lie: XA18115 SIN : 1DTWl9W2GNP0306c16 State : PA K1150 1992 DORSEY Walking Floor Model : Lie: XA18116 SIN : 1DTW18W2XNPO30661 State : PA K1160 1992 OORSEY Walking Floor Model : Lic : ZA18117 SIN : :DTW1cW2::? FO i6=_ State : =A 91170 1992 DORSEY Walking Floor Model : Lic : XA18118 SIN : 1DTWLSW215P030659 State : PA K1180 1992 .ORSE'Z Walking Floor Model : Lic : XA16119 SIN : :DT« L_'N2': FC'_ ;c6 : State : ?A 1<1190 1992 :ORSEY 1.441king Floor Mode ! : Lic : XA1S120 SIN : :DTW._'«2? PC3"c :- State : ?A KIZCC 1952 :ORE--*--' Walking Floor Model : Lic : XA32946 SIN : State : FA • K12 -10 1992 :ORS-_'Y walking Floor Model : Lic : XA18121 SIN : :DTw!E'A2=.NF03C6c3 State : ?A K1220 1992 =ORSEY Walking Floor Model : Lic: XA18122 SIN : _DTWleW-.! :NF03C664 State: PA • -,•:,. ill,etEIrAFT —' — „ n___ rfvrrnatiorr .?lerlu ----------------- •- 41 Lic : A6157?1 ease : Me del . FRED CCIE_ON -tate . %V4._-,jq. 1:"' _ r- cc :. AE_0:00 Lic : MA•1el CHAFL:E ELEFHART ;::I- S7 FORDAL1 : _ _. Ljc : Mendel RiIL'PIE = IERCE .-- state ; FA J;; SIN: IFUYA'i()%NXHVA,_c4T4 FREIGHTLIt:E1 --- �3sa : Model : RON ZT`•'EFZ t3.t2 : p aq :FUFY)(YCJn__' _ '• - — Tractcr 47- A)I 1':'c': FORD Lic : qA• ._,;, :C1 ae_, : Me,dei : LARRY . .CI' _ state : Td33 clN: :FDY.A'"'i l:: 1LYA=. ._ : _-- _cTg_ Tractor r 47-•4,1=; : ?. r.TILT Lic : ACIO • -a3Se : FA ! t - iN " N.- Tr•a: : :�: - : • FORD._ Lic . AC 94.:7 Lease : M,: acl HU::.- _"'-"• cA AR, 7— Ell711 . , _ . . . �HTL CC Tr"iCt :r' . _ _ . . E./N: :FUY C:,y COIF - - - FETcni7 L LIC : F4A,_G' -ease : a __ - •.F_ ALN: : :.F=_^C; , ._. •- =ta: s _ - _ 7r, ac _ea _ • . . . . _.- - - -t a _ - —_. C -- 4.: 35e : Mn4el JCNE'f _.1 —_ — ..0 _ . cA__ __ Equi pmEot Info: r❑it t :.n cMe FRF T L-. AAS2164 i li�li _ 15'2'Sr MAC}: Trac` _ Mcde.l : F41r:1 '_ State : PA or _A\ �. .. - =•7- - Mace : _M 'i _ _ vr,'O MACK Li C MGOBI CHd l" : AA'Pi—•i•: PA__ . .-• -•- - 1 tnAcl Ang: ._1 L i c MACE ;,:'rl: 1M�AYOi7r.I"!r•.• _ - : r -tatE .• FA `1 Vcf 7r-3:70r' /N: — _ r �A :ate : _..F :-a V - In a - •-ent :rirormatton (Mer -- - ------------------------------------------- -- ------------ - ---- �„^— _. :'i9» FF.EI�scISL::1En -Tr ac Model : FLO1_:' _ =ST Lic : ALt�'F'oco State . 10 T-' Mo4ei : CHe•13 Lice Aea ' -_. =tat_ . F.4 1;% MACE: Tractor 164 CH_ -ic : Madel:. 1 --- /N: 1M1AAl l ,:.W'. : : __ State : F'A MAC}: Ma.:e I : CH,�, -i c : Stara : c : Au :%l4'? --- "—�/N:-•3-�-1-AAi_:`r...:w;, ....-�_ �tata : FA , .til 1j)?4 , .: ':P -r actor • _MndeJ : - Li cz— S/N: '. 11Af- ' 1:; V Wo•- , _ PA -4 MACK T:•a. - . . ... AA : YtF WO: : -_. =c =riL . . - - /N: E/N : .. _tll�_- . - _ ., . __ _ . eta A -- _. _ Wit: _��'-_ •C aa� : /N: • _.�. — . ._� F. _ - 74-ac. Mo-]e I =.W�� 1 = _ - _ r aLErA�.!)":5 • - - -- - - nt _ r.ErnAn- TRL'_. ._., Equi ,rnent Infor-rnati ,:n --------------------------- --- - - - --------------------------------------- RE: :�TLITNER -- T,'act r_ _. tnaei FLi : - . : +57 L : = . AL•'L4'y17 PA FRET aHTL:..En - 'it- . • e i Fl-D1_0�iST Lic : —.. E/N:. .:FiIYDSYL_:H47__ _ _ =`.3tz : cc :.5 1993 =F.E1CzHTLI:.Ei: Tractor Moae.l : FL_:=Oo4S2 _-- -- Lic! !6A S/N: 1FUYDS're7=H•a-__;.q. :tate: FA ;rREIGHTL-rNER. — -- - . T,-act:,t-- Mo,iel T LIC : cute : FA -F:EIGHTL.,.ER T`dct*'t, m.:,ueI : FLD1'!'o4-T Lic : AG:c_51 S/N: • 1FUYD5'rE F114-L; ..'•''.tate : FA `9 1993 FREIGHTL:':ER S/N: 1FUYDCYE4FH47 ' '=t3-` • =A 40 1''""'? FREIGHTL:::Er. Tr'3:- : . _ S/N: :FUYD YG:'H4 :_ . _ -- '- - Lic : 3/N : .r D3YL' 7rHi-___. _ ._te : - • a '` - _- - Lic : . .: eiCLi . L-. _ E—c - _ic : . 41 rn�aei . LC:_Oc- T L I 7_4 5t3te : Fs Equipment Irtf<.rmatic'n (M - -- -------------------------- - -------------- - ---------------- - ---------- 1 1NT- �AT: :... Tr a: tor . ._ __Mode 1 X400 A Li c : Ae•ao• _!N : =HS..--. State : FA Tt-ac t . L; c : AA .. : . i. lU3 1'3'' !TEF.PIATIGNAL Tractor M:.JeI r-,iFA 6t1. INTEFNAT.._NAL __. — Tractor -- Mr- Llc : AA'-"Ii . . T l . _ -•:.ti� 1'3`"'3 PETERL•IL- - - '—ease : {•'Tel 71f1 TL'IAOCIV Llc : AA4_•'.,t'" ...F'5riZ. FN--- -- State : 1C' 19'?v L.:T_F.:IAT _ _:.:._ Tract^r . Mode I 77 - - :NTEFP,.. . . . 17 � a= - . --HEFrCZ= - - - - - - . . T , INTERNAT:C..`:A- r ac - SAF: i 57 _ - • 490 . ::TF=.r.-. - - _. ..,_ _ Trac= -,-act ..A L l c : • 1..'09/ 1?93 01 KEPHART TRUCKING C Equipment information kMen -------------------------------------------------------------------- 7132-007 1981 KENWORTH Tractor Lease : Model : Lie : '" 7132. SIN : E191696 State : PA 7132-009 1979 KENWORTH Tractor ease : Model : Lie : "' 7132 SIN : 1724605 State : PA ''133-001 1988 PETERBILT Tractor Lease : Model : BOB TROUT Lie: AB03773 7133 SIN : 1XP5DB9X4JN2!4563 State : PA 134-001 1991 :HTERNATIONAL Tractor Lease : Model : JIM BENELECK Lie : TEMP 7134 SIN: —HSF'M'X6R--104`01? State : FA 135-001 1987 FREIGHTLINER. Tractor Lease : Model : JOHN DAVIS Lie : AB39619 7135 SIN : IFUEYCYBC•HH306871 State : PA • 75 Equipment Items list?d • • 12/09/ L993 01 KEPHART TRUCKING C- Equipment Information (Nen -------------- 7069-005 1993 INTERNATIONAL Tractor Lease : Lie : P2G73V Modal : GLENN STOCK State : OH 7069 SIN- ZHSFBMZROPC070007 7073-001 1989 PETERBILT Tractor Lease : Model : KEVIN MEYER Lia : AH13190 7073 SIN: 1XP5DB9X4KN269306 State : PA 7083-003 1989 WHITE-GMC Tractor Lie : AB00012 Lease : Model : RON NASO State : PA 7083 SIN: 4VIWDBCH4KN619266 7086-001 1989 WHITE-GMC Tractor Lease : Model : SHED GRAHAM Lie : AB27147 7086 SIN: 4VIWDBJF2VN6lZ:3c State : PA 7086-003 1988 INTERNATIONAL Tractor Lease : Model : LANCE DAMS Lie: AB32438 7086 SIN: 1HSRKACR83H529501 State : PA 7086-005 1988 Tractor FORD • Lie : AB36907 Lease : Model : MIKE MAYS Ph State : PA 7066 SIN: 1FDYA90XSJVAl079E 7086-007 1989 FREIGHTLINER Tractor Lease : Model : ROP LANCASTER Lie : AB38337State : PA 7086 SIN: 2FUYDSYBOKV34?50. 7095-001 1969 FREIGHTLINER Tractor Lease : Model : WALT MYERS Lie : AA76=65 7095 5"S : :FUYPXYBEF:HB'eco : State : PA 7095 Tractor-003 1988 INTERNATIONAL Lie : AB28219 Lease : Model : FRED ST . JOHN 7095 5/N: =HSFBX6R1 :C01 -C2_ State : PA 7097-001 1985 1MC Tractor Lease : Model : DAVE FpA;7KH0USEc: Lie : AB28775 7097 SIN .. :WUYPCJGP7N07==4`- State : =A Trac:cr 7097-003 1984 EENWORTH Lic : AA8='337 Lease : Model : State : PA 7097 S/N : T. ,. Tractor 7097-005 1985 INTERNA • -• AL Lie : .AB32c82 Lease : Model : JIM ,:OHNS • 7097 5/N : =HSFBJXRSFCA1 �005 State : A Tractor 7101 - D01 1965 -REIZ'HTL : :;E Lie : AA86651 Lease : Model : BERNARD FOLMAR 7101 C-114 . : FUPYS:'B6FW2&65-46 State : A -:actor 1988 :NTEF2NATI -NAL 105-001 Lie : AB 10998 Lease : Model.: OLAN S'7IH State : PA �in� SIN : 2HSFEGURXJ=C0862= • 1-Z/09i199= 01 KEPHART TRUCKIUG C Equipment Information (Men ------------------------------------------------------------------------- -e028-001 1988 INTERNATIONAL Tractor Lease : Model : TOM MANEY Lie : AA88109 4028 SIN : 2HSFEX6RXJC01492Z State : PA 4087-001 L990 MACK Tractor Lease : Model : BOB WELLS Lie : AA87923 4087 SIN : 1M2AA06YOLWO01600 State : PA 6032-001 1990 INTERNATIONAL Tractor Lease: Model : Lie : AA65568 6032 S/N: 2HSFBX6R1LCO33080 State : PA ')048-001 1990 MACK Tractor Lease : Mode 1 : Lie : AA73999 6048 SIN : iM2AA14Y5rr008793 State : ?A X098-001 1990 FORD Tractor Lease : Model : Lic: AA96704 6098 SIN: JFDYA90X2LVAO4748 State : PA 1031-001 1989 FORD Tractor • Lease : Model : Lic : AA96313 7031 SIN : 1FDYA9OX11:VA301l2 State : PA 7032-001 1989 PETERBILT Tractor Lease: Model : MARVIN MYERS Lie : AA96682 7032 SIN : 1XP5DB9XCKN268203 State : PA 7034-002 1968 PETERBILT Tractor Lease : Model : Lic : AA87384 7034 SIN : 1XP5DB9x4�"25_: 47 State : ?A 7036-002 1989 FORD Tractor Lease : Model : RICKY 3ARRE.:77 Lic : AB21S99 7036 SIN : -FDYA90X9KVA:?791 State : ?A 1036-003 1965 ORD Tractor Lease : Model*- JACKIE 'JEFF Lic : ABI--467 7036 SIN : !FDYA90X-Z7VA1-094-- State : =A 1036-006 1988 'r;ENWORTH Tractor Lease : Model : ED SHA : Lic : AB25734 7036 SIN : _XKDD29XX-X 5 ' '379 State : 7A 1038-004 :989 'SHITE-Gmc Tractor Lease : Modei : DOUG 9AFTL:Y Lic : ABOCS64 7038 SIN : 4VIWDBCH5!'462:^_6-- State : =A • 7043-001 1989 FREIGHTL--NER Tractor Lease : Model : FRED CC'-SCN Lic : AB15791 7043 S/N : :FUYDXYEC`':H339988 State : --A 1993 FREIGHTL = =� -act^ 7043-00 Mode , CHARL' "^E=HART Lic : AB3GEOC Lease : F - � State : FA 7043 SIN : UYDXYa__:..�-v48738- 12/09/ 13a� 01 KEPHART TRUCKING Equipment Information (Me -------------------- Z98 1989 MACK Tractor Lia : AA72560 PA Model : RW613 SIN : 1M2AY04Y9KM0057iPTracto State : PA 299 1988 MACK Ar Lic : Model : RW613 La : APh SIN : 1M2AY04Y4JM004006 State : PA 86 Equipment Items listed • 1 • 12/09/ 1993 01 KEPHART TRUCKI11C Equipment Information (F ------------------------------------------------------------------------- 157 1994 FREIGHTLINER Tractor Model : FLD12064ST Lic: AB24022 SIN : ZFUYDSYBXRA430654 State : PA 158 1994 FREIGHTLINER Tractor Model : FLD12064ST Lic : AB39399 SIN : 27'UYDSYB1RA430655 State : ?A 159 1994 FREIGHTLINER Tractor Model : FLD12064ST Lic: AB39397 SIN : 2FUYDSYB3RA430656 State : PA 160 1994 FREIGHTLINER Tractor Model : FLD12064ST Lie : AB39400 SIN : 2FUYDSYB5RA430657 State : ?A 161 1994 FREIGHTLINER Tractor Model : FLD12064ST Lic: AB39647 SIN: 2FUYDSYB7RA430655 State: PA 162 1994 FREIGHTLINER Tractor • Model : FLD12064ST Lie: AB39398 SIN : 2FUYDSYB9FA420659 State : ?A 163 1994 MACK Tractor Model : C14613 Lic: AB39483 SIN : 1M1AA13Y4P.WO30721 State : ?A 164 1994 MACK Tractor Model : CH613 Lic : AB39148 S/N : 1MlAAi3'::=.w02072� State : ?A 165 1994 MACK Tractor Model : CH613 Lic : AB39484 S/N : 1M1AA13YEF,;03')72: State : ?A 166 1994 MACK Tractor Model : CH613 Lic : Ab3? 149 1M1AA12YXF.ri0207-4 State : ?A 1167 1994 'SACK Tractor Model : Lic : S/N : State : ?A 166 1994 'SACK Tractor Model : Lic : S/N : :M1AA12Y3=..;-;0307Z5 tate : ?A • 01 1990 MACK Tractcr Model : CH613 Lic : AA94973 SIN : :M2AA06YXL::001183 State : ?A 202 1989 MACK Tractcr Model: R Lic : AB18318 C/V : !M24je7Y42%:02Zc74 State : ?A • 12/09/ 1993 01 KEPHART TRUCKING Equipment :nformat:on (Me -------------------------------------------------------------------------- 128 1991 INTERNATIONAL Tractor Model : 9400 6X4 SBA Lie : AB31622 SIN : 2HSFHMCR3MC04b383 State : PA 129 1991 INTERNATIONAL Tractor Model : 9400 6X4 SBA Lie: AB04053 SIN : 2HSFHMCROMC04o387 State : PA 130 1991 WHITE—GMC Tractor Model : WCA64T (NO SLEEPER) Lie : AB00977 SIN: 4V2VDBCE2MN639962 State : PA 131 1992 MACK Tractor Model : CH613 Lic : ABOC349 S/N : 1M2AA13Y4NW013607 State : ?A 132 1993 FREIGHTLINER Tractor Model : FLD120645T Lie : AB24916 SIN: 1FUYDSYB5PH472434 State : PA • 133 1993 FREIGHTLINER Tractor Model : FLD12064ST Lic: ABI-4917 SIN: 1FUYDSYBXPH47:431 State : PR 134 1993 FREIGHTLINER Tractor Model : FLD12064ST Lic : AB24918 SIN: 1FUYDSYB:FH47-43: State : PA 135 1993 FREIGHTLINER Tractor Model : FLD12064c7 Lic : AB24919 SIN : :TUYI)SYB7rJ4 Z43`- State : ?A 136 1993 FREIGHTLINER Tractor Model : FLD1206457 Lic : AB:-4920 SIN : :FUYDSYBJPL47 =432 State : ?A 138 1993. FREIGHTLINER Tractor Model : FLD12064ST Lic : A62:359 S,/N ,. !FUYDSYB?"?47:; 3b State : FA 139 1993 FREIG'r.TLI :7ER Tracor Model : FL1) 12C6YST Lic : A82c360 SIN : 1FUYD5•-BCF-4,437 State : ?A 140 1993 FREIGHTL : NER Tractor Model : FLD120645T Lic : AB:--361 • SIN: :FUYDSYB2FN47=438 State : ?A 1.41 1993 FREIGHTLINER Tractor Model : FLD120645T Lic : AB26362 SIN : : FUYDSYB4FH47:439 State : -A 192 1993 FREIGHTLINER Tractor Model : FLD12064ST Lic : AB26363 • 12/09/ 1993 01 KEPHART TRUCKING Equipment :nformation :Mc -------------------------------------------------------------------------- 100 1989 FREIGHTLINER Tractor Model : Lie : AA80142 SIN: .FUYDRYB4KH353937 State : PA 101 1989 FREIGHTLINER Tractor Model : Lie : AA80143 SIN: 1FUYDRYB6KH353936 State : FA 102'. 1989 FREIGHTLINER Tractor Model : Lie : AA80144 SIN: iFUYDRYBBKH353939 State : PA 103 1989 WHITE—GNC Tractor Model : WIA64T Lie : AA86388 SIN: 4V2WDBCE0KN6_ZZ01 State : PA 104 1989 FREIGHTLINER Tractor Model : GLIDER Lie: AA80140 SIN: 1FVBDOY90KH365846 State : PA • 105 1990 INTERNATIONAL Tractor Model : 9400 6X4 SBA Lie : AA91110 SIN: 2HSF14XZR4LC036100 State : PA 106 1990 INTERNATIONAL Tractor Model : 9400 6X4 SBA Lie : ABO6009 SIN: 2HSFHXZR8LC03510:: State : PA 107 1990 :NTERNATIONAL Tractor Model : 9400 6X4 SEA Lic : AA91112 SIN : =HSFFXZR8LC:'S0?' State : FA 10S 1990 :NTERNAT:CNAL Tractor Model : 9400 6X4 SBA Lie : AA91113 SIN : =HSFHXZRXLCO'oG98 State : FA 109 1990. :NTERNATICNAL Tractor Model : 9400 6X4 SBA Lic : AA91114 SIN : _HSFHriZREL�^v=cG9- State : FA 110 1990 : NTERNAT:CNAL Tractor Model : 9400 6X4 =BA Lic : AA91 _15 SIN : 2iiSF,M,XZR1L:..351 State : ?A 1 .11 1990 :NTERNAT:CNAL Tractor Model : 9400 6X4 3EA Lic : AB02204 . SIN : =HSFHXZR1LC035099 State : FA 112 1990 : NTERNAT:=NAL Tractor Model : 9400 6X4 SBA Lic : AB34493 SIN : ZHSFHXZRXLC0361:3 State : 'A 113 1990 :NTERNAT:--NAL Tractor Model : 9400 6X4 SHA Lic : AA44675 - - �& , LN 7711r-TI"N S;H�i7 ULL -owr of Southold Bid Project 50i1t Waste Haul-Disposal Services The Bidder herebu states that it will be prepared to dispose of up to the following Maximum Specified Yearly Capacities in tons of Town of Southold solid waste if awarded an Agreement Contract Year Maximum Tonstr Year p,.r Contract 1997-1998 10.000 1998-1999 10,000 1999-2000 10, 000 2000-2001 10, 000 • 2001-2002 10,000 Name of B` er : WM of New York, Inc. d/b/a Waste Management of New York Bu : Cate : May 22, 1997 • f1:i+•:; j nil Ilii _�[��_.__ 1Bi -_r.c-.: __.__ .•a =rte. ;� v Q . I BIC CPROPCSrL? POR- INFORMATION SCHEDULE J Town of Southold Bid Project Solid Waste Haul-Disposal Services NOTE: IF A BIDDER INTENDS TO UTILIZE MORE THAN ONE SOLID WASTE DISPOSAL SITE, AN INFORMATION SCHEDULE J MUST BE COMPLETED FOR EACH DISPOSAL SITE. The following is information on the undersigned Bidder 's Solid Waste Disposal Site: i . GENERAL A . Disposal Site Location WM of New York, Inc. d/b/a Name: Waste Management of New York Address: 215 Varick Avenue Brooklyn, NY 11237 Phone: ( 718) 533-5314 B . Disposal Site mailing address (i: different than I ) Address : same II . CURRENT OPERATIONS A . Operations Permit WM of New York, Inc. d/b/a Waste Management of New York 1 . Permittee : 2 . No . : 2-6104-00010/0001-0 3 . State : New York Date of issue : 9-13-94 5 . Date of Expiration: 9-13-99 Copy Encicsed : Yes : x No: _ Bidder 5--lid Waste Cispcsal Site(s ) Schedule 5 .0 .J BIC ( PROPCSAL) FORM Page 1 cf 7 INFORMAT'TON SCHEDULE i - (Con`lnUe.+ " B . Hours of Operations 1 . What are the PERMITTED operating hours? DAY A .M . P .M . MONDAY 24 hrs. to Tuesday 24 hrs. to Wednesday 24 hrs. to Thursday 24 hrs. to Friday 24 hrs. to Saturday 24 hrc to Sunday to 6-00 F . Are there any PERM'TTED closure periods stipulated? NO • 3 . What are the ACTUAL operating hours? DAY A . M . p ,M , Monday 24 hrs. t Tuesday 24 hrs. to Wednesday 24 hrs. to Thursday 24 hrs, to Friday 24 hrs. to Saturday to S a6- Sunday to 6.00 'i . What holiday or other period is the Disposal Site typically closed? DAY YES NO New Year ' s x to Memorial x t� Independence x to Labor x to Thanksgiving x to Christmas x to • Other (Specify ) to Bidder Sciid Waste Disposal Site(s ) Schedule S .D .J BID (PROPOSAL) FORM 'age = 7 • INFDRMATiDN SCHEDULE J - (continued) S . Will the ACTUAL operating hours in Question 11 , 0 .3 be extended up to the PERMITTED operating hours in Question II . B . 1 in order to accommodate Town of Southold solid waste? Yes No x (not needed) E . Are there any local agreements, ordinances , etc . which would prohibit extending the ACTUAL operating hours in Question II . B .3 up to the PERMITTED operating hours in Question II .B . 1 .? Yes No x C . What is the PERMITTED annual capacity in tons? 1998 1, 560, 000 1999 1,560,000 2000 1, 560,000 . 2001 1, 560,000 2002 1, 560,000 D . At the PERMITTED levels in Question 11 C . , what -' s the projected useful life in years? N/A E . What is the annual RECEIVING level today? 650,000 • Bidder 5ci.d Waste Z 0991 BiD ( PROPOSAL) =OR."S Paoe = of 7 • :NF'nP,MATInN `5CHE:QULF ? F . At the RECEIVING levels in Quest-4c- : : .E . , what is the projected useful life in years? N/A G . How much of the RECEIVING level in :uestion II . E. is committed to under contract in tons? 1998 none none 1999 2000 nonp 2001 none 2002 none • H . Does the Disposal Site have special waste restrictions or Gate Yes No Fee (S) 1 . Construction/Demolition x ? . Asbestos x 3 . wastewater 77eatment x Sludge u . Hazardous waste x • Bidder So. _.. waste Disposal Bl-ecs Bchedu'_e c C BID CPROPCS=L ; F_—mm y Page 1� of INFORMATION SCHEDULE J — (Continued) I . Are there any existing Agreements with local municipalities which prohibit: Item Yes No 1 . Routing to site x 2 . Weight limits between x state roads and site 3 . Number of vehicles x 4 . Vehicle size x S . Solid waste importation x outside jurisdictional area S . Host Community Benefits x III . EXPANSION PLANS A . Application Permit N/A 1 . Permittee: 2 . No . : 3 . State: `t . Date of Submission: S. Copy Enclosed: Yes No 6 . Submission Status: a . Expansion of current site or new site N/A b . Local Citizenry reaction_ N/A C . Regulatory agencu_ N/A • Bidder Solid Waste Disposal Site(s) Schedule 5 .0 .J 310 (PROPOSAL) FORM Face 5 of 7 • INFORMATION SCHEDULE 1 - rfonr J,ni 1._=n.7 d . Litigation N/A e . Likelihood to succeed N/A B . If you are successful in Question III .A . , what i=- the additional annual DESIGN capacity in tons (do not include figures from Question 1I . C . )? 1998 N/A 1999 2000 2001 2002 • C. At the annual DESIGN levels in Question III . S . , what would be the Projected useful life in years? N/A 0 . Would you be willing to share with the Town of Souzcid engineering -eports utilized for the preparation cf the Operating Permits on expansion Application? Yes No N/A E . Bidder 's Disoosal Site(s) Engineer of Record Firm 's Name Galli Engineering Firm 's Address_ 734 Walt Whitman Rd.. Melville, NY Project engineer Rich Galli . Bidder Soild ''aste Disposal Slze(s) Sc edu_e S .O . J BIC (PROPOSAL) FOR" Paye 3 of • INFORMATION SCHEDULE J- (Continued) IV . ATTACHMENTS Attach copies of all permits required of the dispcsal site(s) and a copy of the agreement, performance bond and insurance between bidder and permit holden to use the disposal site(s) during the term of this Agreement . Are you willing to meet with the Town of Southold to discuss your short and long term disposal capabilities? Yes x No The undersigned hereby certifies that services, material , or equipment to be Furnished as a result of this bid will be in full accordance with :own of Southold specifications aopiging thereto unless exceptions are indicated above and an explanation attached . WM of New York, Inc, d/b/a Bidding Company Waste Management of New York Address 123 Varick Ave. • Brooklyn NY 11237 Citu State Zig By Charles Gusmano Director, Business Development_ (Please Print or Type) NAME AND TITLE: Signature Phone No . ( 718) 533-5314 Date May 22, 1997 CORPORATE SEAL 3id0er Soiid Waste Disposal Site('5) SChP.dU S .Q .J • 310 CPROPCSAL) FORM Page 7 of 7 95-195 8891—ioc NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION APPLICATION FOR PERMIT TRANSFER (In Accordance with Uniform Procedures, Part 621.13) Please read ALL irslmchons on back before eomc!eting this application. Please TYPE or PRINT clearly in ink. PART 1—TRANSFEREE(NEW OWN ERfOP ERATORILESSEE)COMPLETES: 1. LIS PERMIT NUMSERISI AND THEIR EFFECTIVE AND EXPfRATIO', DATES. 2-6104-00010/0001-0 Effect4.ve : 9/13/94 Exuiration: 9/13/99 2. NAME OF TRANSFEREE II TELEPHONE `;UMBER Waste Manaa_ement of New Yor:c , a division of ?,,M of New Yort¢ , (7181336-7900 STREET Inc. 123 Varick Avenue CITY STATE Z!P CODE BrooKlyn y 237 :3. TRANSFEREE IS ALAN: X Owner M Cosmic- --Lessee e. NAME OF FACILITYIPROJECT Solid Waste Transfer Station . .Rec%,clables Handl_no S Recovery Facilit STREET 215 Varick Avenue CITY STATE ZIP CODE Brooklyn NY 1 :237 COUNTY TOWN Kings NA 5. HAS WORK BEGUN ON THE PROJECT? NA C3 Yes LJ No If no.proposed starting date: Apprczlmale completion date: If there will be any modifications to the current operation, the transferee must attach a state^..en[specifying the details. 6. CERTIFICATION: This certifies trial the transferee Is the current o'.vnerlooeratorllessee of the gamed facility. has a copy of the permit.understands and will comply with all conditions In the referenced permit. Faei!ny operations/project scopemschargeslemissions will remain the tame. Further, • I hereby affirm that under penalty of perjury that Information provided on this form and all atla_nments submitted herewith is true to the best of my knowledge and belief. False statements made herein are p;i�� or cufsuant to Section 210.65 of the Penal Law. Signature and Title X„ ""rte Date 4 PART 2—TRANSFEROR(FORMER OWNERIOPERATORILESSEe1 COMPLETES: 1. NAME OF TRANSFEROR TELEPHONE NUMBER New York Accuisition Sub , Inc . I 7081572-8800 STREET 3003 Butterfiel�_ Road CITY STATE Z'P CODE Oak Prcok ILL 50521 2. NAME OF FACILITYPRO.E::. IF DIFFERENT FROM NA:'E IN PART 1, NA 3. CERTIFICATION: This cenl'les tnat the fatuity referenced in Pan 1 of tris form Islwas trars,errea tc the party Identified as me new transferee ownenooera;craesseel cn Y�y )17L (date� � Signature ant Title x + "� �� l L'V"'L'r-'7 0, Date PART 3—PERMITTRANSFER VALIDATION SECTION—DEPARTMENT OF ENVIRONMENTAL CONSERVATION COMPLETES: jay tar.sle, C' cermn a::'C:e:. T,ansteree sualecl to c:-]:tons of perm,;!. without exceplK- I _1Transte, -' term,: z:rc•e❑. v.,!n me ICIIowing c:7 • canons _'See attac .e: re. ze- -erm.: oage(sl __JN. ac::::all0 eq'- ? - _-se cor:iele the es. ceT:: aomlcanon and return it :c 1-e c-:e'e:red Regional Pe•mil A:Tmis:ra:F. C a,, C, P.;:.,.a:_ its 1 -. .:rccr =•e oll'ce o = _.eoartr ent (see mad on reverse- S,gnature Date 1 95,19.5, 1931-t Do TarUE _ %=.'I YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATIONpEGlON2 same APPLICATION FOR PERMIT TRANSFER (In Accordance with Unllorrn Procedures. Part 621.13) ', 1996 Please read ALL -.. .cuors on DacK before compleunc :his acclmauc Please TYPE or P A Ow PART 1-TRANSFEREE(NEW OWNERIOPERATO R/LESSEE)COMPLETEpE r;, I. LIST PEP:!I7 NUMBER(S) AND-== = E=FEC-:VE AND EXPIRATION DATES. •'s'FAIRS 2-6104-00010/0001-0 Effective: 9/13/94 iration: 91F13/99 2, NAME C- TRANSFEREE . other than a- inmv c�a,.provide Taxpayer ID Nev York Acquisition Sub Inc Number STREET 'ELEPH7NE •.7MBEF 3003 Butterfield Road qng 572-8800 CITY Oak Brook STATE ZIP CODE _ IZ 3. TRANSFEREE iS MAN C.._., � 60521 Oderator Lessee 4 NAME C- rACiLITYIPROJECT STREET Solid Waste Transfer Station RecycT-bTec andTimg and Recovery Facility 215 Varick Avenue CITY Brooklyn STATE ZIP CODE COUNTYNY 11237 KingsTOWN 5 HAS WORK SEGUN ON THE ?=0.2.'- N/A r- J Yes -No II ^C. ---:Osed starbrg date: AIDDrox,mate COMDlet,c- :ate: If there will ce any modifications t- Ine current o_erauon. the transferee must attach a statement specifying Ire cetads. 6. CERTIFICATION: This certifies Ina: :-.e transferee is the current ownerroDeratornessee of the named fatuity has a copy of the permit. understands and will COMCN with all conew-ris - Ine referenced permit. Facility ooerafionworolect ScoPelolscnargeslerniss;cns will remain the same. Further. I hereby affirm mat under pens.:, c• cegcry mat information orovidea on tnrs form and all attachments submntec nerewnh IS )rue to the best of my knowledge and belief. False stareme^Is ma herem are punishable as a Class A misdemeanor pursuant to Sect pa 210.45 of the Penal Law. • Signature and Tule 41/°( _ L ^ —J- f lr Y Date PART 2-TRANSFEROR(FORMER OWN ERIOPERATORILESSEEI COMPLETES: 1, NAME OF TRANSFEROR It other than an individual,Provide Taxpayer 10 Star Recycling. n Number STREET TELEPHONE '.UMBER 215 Varick Avenue (718 386-7900 CITY Brooklyn STATE ZIP CODE 2. NAME CF F_Z, ITYIPROJEC- = D =--=Z-N7 R NY 11,232 _ _ F -0'd NAME iN PART 1 3 CERTIFICATICN This certifies Ina: Ire fatuity referenced in Part t of this form a o a i transferred to the ca-i aenuhed as the new transferee iownenooera:.rnesseel on , -1- yb ldate). Signature a-.d TheCom` Date `p PART 3-PERMIT TRANSFER VALIDATION SECTION-DEPARTMENT OF ENVIRONMENTAL CONSERVATION COMPLETES: G.Transler cermet aDdrove: T.3-.ste,e su Oleci to conditions of permit. without exception /L IIdaQSt€rL`.Cyef2rfyY y,Ce�f. GA,/,iFM"!f'LSdaf6 2ny _See a;tacnea revised oermit cagels • New add .-adonredwr - _ - --_ ;e Ine -,closed :vmrt aopuw:ron a-.c •shirr. It to;h=uncers,cned Re: c-ai Perm r Administrator. Division of Real>tY. AI s . r_ „ :-e C:pa.imer/r 11 -7 map or7eve-sel Smnalure -T—� - -a, r Aammwra:c, Dare New , )rk State Department of Environmental Conservation _ Divisior, of Regulatory Affairs, Region 2 Office . 47-40 21st Street, Long Island City, Tei: (718) 482-4997 Fax: (718) 48 482-4975-4975 13 September 1994 _ Langdon Marsh Don Uvv, Architect Commissioner 81 Sands Point Road Pott Washington, NY 11050 Re: DEC Permit No. 2-6104-00010/00001-0 Star Recycling, Inc., Solid Waste Transfer Station and Recyclables Handling and Recovery Facility, 215 Varick Avenue. Brooklyn, NY 11237 ECL Article 27 -- Solid Waste Management NOTICE OF PERMIT RENFWAL Dear Mr. Levy: The permit cited above is hereby renewed for a period of five (5) years. and the expiration date of this permit is changed to 13 September 1999. under the following condition: Within sixty (60) days of the date of this renewal, permittee shall submit to DEC a complete revised engineering report and facility site plan which satisfies all requirements of the . revised state solid waste management regulations, 6 NYCRR Part 360, which became effective on 9 October 1993. Said revised engineering report shall include revised versions of the operations and maintenance manual, training plan, contingency plan. closure plan, and personnel list as required by revised Part 360. All other terms and conditions of this permit remain in full force and effect as written. If you have any questions please call me at (718) 482-1997. e U truly yours. � � . J hn F. Cryan Iting Regional Permit A inistrator cc: R. Bruzzone. P. E., DEC Region 2 Solid Waste Engineer Capt. L. Belly, DEC Region Division of Law Enforcement M. Burke. Esq.. NYC Dept. of Sanaation A. Cucinotta. Star Recycling. Inc. JFC:bh (WP60,PERREN.00N) + •I-,iiti NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION 'AIT h'AMBER EFFECTIVE DATE • :6I-000010/1 C 9/13/89 / .CILITYIPROGRAM NLMBERfsI PERMIT EXPIRATION DATE(sI Under the Environmental Conservation Law I, 24766 9/13/94 i Article 15. Title 3: 6NYCRR 327, 6NYCRR 608: Article 25: 328, 329: Aouatic Pesticides Water Quality Certification Tidal Wetlands Article 15. Title 5: Article 17, Titles 7, 8: Article 27, Title 7; 6NYCRR 360. Protection of Water SPDES Solid Waste Management- Article 15. Title 15: Article 19: Article 27, Title 9; 6NYCRR 373. Water Supply Air Pollution Control" Hazarcous Waste Management Article 15. Title 15: Article 23, Title 27: Article 34: Water Transocrt Mined Land Reclamation u Coastal Erosion Management Article 15. Title 15: Article 24: Article 36: Long Islano Wells Freshwater Wetlands Fl000plain Management Article 15. Title 27: N—New, R—Renewal. M—Mocification• I Articles 1, 3, 17, 19, 27, 37; Wild. Scenic ano Recreational C—Construct ("only), 0-0pera:e ;'only) 6NYCRR 380: Radiation Control Rivers PERMIT ISSUED TO Mr. Anthonv Lomangino - Star Recvclinto inc. ADDRESS OF PERMITTEE 215 Varick Avenue - Brooklyn New York '11237 AGENT FOR PERMITTEE CONTACT PERSON. I TELEPHONE NUMBER Same (718) 779-4650 NAME AND ADDRESS OF PROJECT FACILITY(il different nom Permneel Sane LOCATION OF PROIECTFACILITY COUNTY 7OWNICITY VILLAGE 1 UTM COORDINATES Same I Kings 'New York DESCRIPTION OF AL THORIZED ACTA ITY Aerate a solid waste transfer station at a rate no,: exceedinq four thousand (4,000) cubic yards cer day of construction and demolition; _ebris and garbage. This permit is for the 215 ;arick Avenue facility only. GENERAL CONDITIONS ev acceptance of this permit, the permittee agrees that the eermit is contingent upon strict compli- ance with the ECL,all applicable regulations and the conditions specified herein or attached hereto. 1 The oermlttee Wad: 'e 011 C '-e appropriate rr{,ondl oerm t administrator or other c' a aeslgnzleo In the<geUd.:o,a Clom a no:lceo!,ntentwn to comm wort at least aN F•)_-r - sosance :he time of commencement and shall also comic h - — oroni n \,riling or ­ c^.aere[lon o, the\,ora The oemri or. =- sumer.:_ „oecuon by an aalnoneed,eoresentao,e or the Oeoa--?-^or in, clmemal Cons,,nnn, n.,h ma\lice,me,.or.su,e the ouodc mrerev -__ !es oon_e^ to ECL 471'110" Ana )APA §40UP 1 Thepermnteeha\e.:.S.c_P xoresr.c -. :hpeaecnoh I,- a aopucanon theTull legai resuor. - . -ora,.__^azes.direct r - reel or\\halr\Pr^Azure Ana p\wm •ullerp0 .,nvn4 OLL C --o,ect Cr :' ^pd hPreln anc aeeeo In mnemnll\ ala sa\e harm '+plate"-- jilt action. :t^a:H all co,rt C' P\en namea. f a; nnn rP,un,ne Imm � - . : crolec' This G,•cammrin, :�.a-.- -. r,en, " -odnv ,u,cenc - •^.n.P Ih„ norm,, at nine i"- e nonan : in, ,cenv.,. ._ ?c• _• -card n, a \.r,:.• r- am oonart,nn c• •-n cerm,l >r. •,on, .. ._.,-ECL ane ve.. _^ :uw nen, a f the n,"me .: - - -ea o\ - poresem anon a we to a„cline •r r\r^• •acts .,nmcant a. .,an,e, a,,ms<o\e•ea since •.- r- -.,! \. _eu In ^.tmam e - - ' _-.- ..r✓ mu,l suom ^ewa, aupm d:an -c _line ..^\ upleme".,. ._.-..•r,nn .. ,. .. .v rea r U..oa r lm P n, ari s Dncr .. .-P e\mratlon c:, of -he e\,Vme Permit dais _. r,to ^,raison .\,IP— ,PDES - .non mur• ,.ern..., .caul o HIZI ale orae a .ne H1% • _ I. m ! „l,. I C oai entg to a n la cnll _. _ ,.,DD _21 or - Y,,, nl` ISC P r r,CU \\ •�2 n4 "Dal! Pnl O �nll l IerOr le•r,l 'Pil O J a!O NU o ,O r • •O , IhP n,,m nCP , - - + •O f,_ 'ne an, line, T 1, .11,plO\a \ llnc[ 2'f2TP f, " _ i'lt,O _, tnlCn ma, ._ O Jnr ' eC! l I,,..n,,Ol in„D„'^” '?Deoa-.—`n,do,,not l:- to, 'DUIIV ,_.- -:2 or,' -_inuwe,or;;',.r•r,liewnl,na: ,-.nC\ :Celomml,- "lull nCrCl UrOra ^. Toarlm P-” - any OI the -c— ,,naa ons o, r"ci,emehts COr'• '.n So,,- :"=er or aeiern'^!,.cn m 100l1.callon e. - inn 5-_-' , or the Deov'-r-, ^.net is, In \\nen, aca arae '- ^•p It pl."T Sl, AN( E = ''.RMIT ADMIir,,.-R>TOR 9/13/89 George Danskin 5'� ..Dlf ;d. , Albany , ';'f 12233 AUTHORIZED SIC-,: °E KZ411 ` Z NEW YORK STATE DEPARTMENT OF ENVIRONIAENTAL CONSERVATION • / ADDITIONAL GENERAL CONDITIONS FOR ARTICLE 27 I Title 7: Solid Waste Management I 10. All activities authorized by this permit must be in strict contormance with the approved plans submitted by the applicant or his agent as the permit application. Such approved plans were prepared by on SPECIAL CONDITIONS 1 ) All activities authorized by this permit must be in strict conformance with the approved plans submitted by the applicant or his agent as part of the permit application. Such approved plans were received from Donald Levy, Architect, on January 7 , 1987, last revised February 5, 1987 titled "Premises at 215 Varick S' Brooklyn, New York - Star Recycling Inc. - Solid Waste Transfer Station. 2) The facility is permitted to receive only the materials listed in the "DESCRIPT' OF AUTHORIZED ACTIVITY" on page 1 of this permit as those materials so listed a, defined in 6NYCRR 360. No other solid waste of any kind including, but not limited to, industrial waste as defined in 6NYCRR Part 371 or waste containing asbestos , shall be admitted in the facility. 3) In the event any hazardous or unauthorized waste is found at the subject facili such prohibited waste shall be removed within 24 hours by a waste transporter authorized under 6NYCRR Part 364 to transport such waste to an appropriate disp site. 4) Permitted activities are limited to delivery, unloading, temporary storage, • compaction, loading, materials recovery, and trans-shipment of solid waste. No other activities including, but not limited to, disposal , combustion, or compos of solid waste is to be conducted at the facility. 5) If the facility is permitted to receive construction and demolition debris, suc debris shall not remain on the facility site for more than 48 hours, If the subject facility is permitted to receive gar=age, such Garbage shall not remain the facility site for more than 48 hours . If -he subject facility is permitted to receive garbaae, such garbage shall not remain on the facility site for more than 2.4 hours . j 6) All solid waste transported from the permitte_ facility shall be disposed of lawfully . i 7) Not more than 30 cubic yards of solid waste _er 100 souare feet of surface area shall to stored at -he site. No material on --e site shall exceed a height of 8 feet. 8) Access the subject facility shall be peri' --ed cn'_) ..nen an attendant is on duty. 9) 'lectors , zust, and _dors ,pall be c::ntrollec __. of =cave rears so that they Sr not const'. tute ^jisances hazards heal -- . :af=- _r 1C) The For-- -tee steal ' _ost =nd maint_- .r a sign . _'. ear'_ , eoitie r;m t'ne street , statins --.e name , -- _dress , and hours_ �f opera-` cn c- -h.e fac; ' = -y. Such sign • shall ._ s:) state --1 -he -_pes of solid was_:= =_c=c--_ --no rc- --ccepted at the subject -=-ciIity . DEC °ER�nT NU, IBER 2-5401 -000C' =,'l PROCRAen F,CILIT1 N_•• SER 24T66 plop 21 ' •� Special Conditions Cont. 11 ) Daily records shall report, in cubic yards, the type, origin, and place of disposal or sale of all material handled by the facility permitted herein. Such records shall be maintained for three (3) years and shall be available for inspection by the department on demand. 12) Within ten days after the end of each twelve-month period following the issuance of this permit, the Permittee shall submit to the department an annual report detailing the manner in which, each permit condition has been met, and a monthly listing showing the volume of each type of material handled and where such material originated and was disposed or sold. 13) At the facility, there shall be no open fire as defined in 6NYCRR 215. 14) Operation of the facility shall not result in an obstruction of traffic. 15) rlithin sixty days of the issuance of this permit, the Permittee shall submit an irrevocable letter of credit in the amount of $50,000 guaranteeing the subject business entity's compliance with the Environmental Conservation Law of the State of New York. See attached sample language. • 16) Adequate space for incoming solid waste shall be available at the facility. 17) Adequate fire protection ecuipment shall be on hand at the facility at all times. 18) This permit and the drawing cited in Special Condition 1 shall be kept on hand at the subject facility and shall be available for inspection by any representative of the department upon demand. • Page 3 of 3 INFORMATION SCHEDULE J Town of Southold Bid Project Solid Waste Haul-Disposal Services NOTE: IF A BIDDER INTENDS TO UTILIZE MORE THAN ONE SOLID WASTE DISPOSAL SITE, AN INFORMATION SCHEDULE J MUST BE COMPLETED FOR EACH DISPOSAL SITE . The following is information on the undersigned Bidder 's Solid Waste Disposal Site: I . GENERAL A . Disposal Site Location Name: Modern Landfill & Recycling Address: RD # 9, Box 317 • York, PA 17402 Phone: 717-246-2686 B . Disposal Site mailing address ( if different than i ) Address : A . CURRENT OPERATIONS A . Operations Permit 1 . Permittee: PA DEP 2 . No . : 1000113 3 . State : PA `t . Date of Issue: 5/27/93 5 . Date of Expiration: _ • 6 . Copy Enclosed : Yes : X No: -__, Bidder Solid Waste Disposal SiteCs) Scheduie 5 .O .J BID CPROPOSAL) FORM Page 1 of 7 INFORMATION SCHEDULE J -- (Continued) B . Hours of Operations 1 . What are the PERMITTED operating hours? DAY A .M . P .M . Monday 6:00 to 6:00 Tuesday 6.00 'to z4D Wednesday 6—.MII! 'to 6:00 Thursday 6-no 'to Friday )-- Friday 6.00 to 1:00 Saturday 6.00 to 1:00 am Sunday Closed to rineva E . Are there any PERMITTED closure periods stipulated? • _ . What are the ACTUAL operating hours? DAY A .M . P .M . Monday 6:00 to 41on Tuesday 6:00 to 4:90_ Wednesday 6:00 to 4:00 Thursday 6:00 to 4s9M_ Friday 6:00 to 4.00 _ Saturday 6:00 t= 10:-ID-am Sunday Closed- to rin=oa u , What holiday or other period is the -Oisposal Site typically closed? DAY v_c NO New Year ' s to Memorial x to Independence x to Labor x to Thanksgiving X to Christmas x =- Other (Spec-4 =,,j) — Bidder Oispcsal Site(s) Schedule S.O .J BID ( PROPOSAL) FORM Page 2 of 7 . INFORMATION SCHEDULE J - Cccntinued) S-. Will the ACTUAL operating hours in Question II .B .3 be extended up to the PERMITTED operating hours in Question II .B . 1 in order to accommodate Town of Southold construction material and/or demolition debris? Yes NO X G. Are there any local agreements, ordinances, etc. which would prohibit extending the ACTUAL operating hours in Question II .B.3 up to the PERMITTED operating hours in Question II .B.1 .? Yes IVO X C. What is the PERMITTED annual capacity in cubic yards? 1998 1,500 , 000 Tons Pending Permit 1999 2000 Pending Permit 2001 Pending Permit 2002 Pending Permit C . At the FFERMI'TED levels in Question ! I -C- , what is the projected useful lire in years? 1, 5 years in current disposal area. 7 years pending Nor ttsgast5iSspansdaw permit What is the annual REC=IVING --vel today? 3560 Tmn) yaw, Bidder Disposal Sitete) Schedule S .0 .J Page 3 of 7 BID :PROPOSAL) FORMS INFORMATION SCHEDULE J - [Continued) P. At the RECEIVING levels in Question II .E. , what is the projected useful life in years? 1.5 Years in current area 13-17 Years pending Northwest expansion G. How much of the RECEIVING level in Question II .E. is committed to under contract in cubic yards? 1998 3,600 Tons 1999 960 Tons 2000 zoos ----- --- 2002 ----- --- H. Does the Disposal Site have special wasze restrictions For: Gate Yes No Fee (S) 1 . Asbestos X 35 YARD X 35 TON E . Wastewater 7rearment _ Sludge � . Hazardous Waste R -- --- Bidder Disposal Site(s) Schedule S.G .J BID (PROPOSAL) FORM Page u of 7 • INFORMATION SCHEDULE J - C(:ontinved) I . Are there any existing Agreements with local municipalities which prohibit: item Yes No 1 . Routing to site _X 2. Weight limits between X_ state roads and site 3. Number of vehicles _ X It. Vehicle size _ X S . C&D importation X outside ,jurisdictional area X S. Host Community Benefits _ III . EXPANSION PLANS • A. Application Permit 1 . Permittee: _ PA DEP 2. No . : 3 . State. _ PA It . Date of Submission: _ 497 S. Copy Enclosed: Yes _ No X 6 . Submission Status: a . Expansion of current site or new site Current Site b . Local Citizenry Positive C. Regulatory agency_ Positive • Bidder Disposal Site(s) `.Schedule S.O .J BID (PROPOSAL) FORM Page 5 of 7 • INFORMATION SCHEDULE J -- (Continued) d . Litigation Yes e. Likelihood to succeed Probable- Def inate B. If you are successful in Question III .A . , what is the additional annual DESIGN capacity in cubic yards (do not include figures from Question 1998. ----------- 1,500,000 Tons 1999 1, 500_,000 Tons 2000 1,500 ,000 Tons 2001' 1,500 ,000 Tons 2002 • C. At the annual OESI-uN levels in Question " I 'S" what would be the projected useful life in years? 13-17 Years 0 , would you be willing to share with the Town of Southold engineering -eocrts ut:,42edVr the preparation cE the Operating Permits cn :xpansicnApp_icatic, - yes x No E. Bidder ' s Disposal Sits(s) Engineer of Reccrd Firms Name Rust E & i Firm ' s Address Fairfax, VA Pre)ect Engineer Jay Challa • Bidder Disposal Sites ) Schedule_c .0 •J BID (PROPOSAL) FORM Page ' °` INFORMATION SCHEDULE J - (Continued) IV. ATTACHMENTS. Attach copies of all permits required of the disposal site(s) and a copy of the agreement:, performance bond and insurance between bidder and permit holder to use the disposal site(s) during the term of this Agreement. Are you willing to meet with the Town of Southold to discuss your short and long term disposal capabilities? Yes No The undersigned hereby certifies that: services, material, or equipment to be furnished as a result of this bid will be in full accordance with Town of Southold specifications applying thereto unless exceptions are indicated above and an explanation attached. Bidding Company ase rtaNnagement o cl0ews�ork Address 123 Varick Avenue Brooklyn NY 11237 • City State Zip By Charles Gusmano Director of Business Development (Please Print or Type) NAME AND 'TITLE Signature Phone No . ( 718 ) 533-5314 Date 5/22/97 CC"PORATE SEAL Bidder Di-Ioosal Site(s) Schedule S.O .J BID (PROPOSAL) FORM Page 7 of 7 1N=0?na-p ini 5-_. L- K rORn or 9'u 3 WL •r Ai. - 55cN:S, �._.a_ we, th= undersign ed, WM of New York Inc. as ?rincipai , and --Eir man' nd Insurance Comoany - as Su.-ety , are hereby bele ant into own of Southold as Owner in the s r Ql}e Hundred Thousand Dollars 5100.000`00) :c,- the aaument of ane t-u_y be made, we hera:.y jcint_y a-t seve^z' ly 0u- heirs, exe=Llzm-s, fir 1 aay c= May . -- -ne above cb_aE_:or .s sJc t`at - -`-a`- the the Taw.- o: 5au:re_C a - e - . e_= a-d herebu -e Ce aFact he-e;P S , Pcr =-he hauling and dispcsz_ c= sc'_id was- NOL' . - ._=_. �R: , te; seiZ' E_d shall be rejected c.• .n the afar�ate shall be accepted _ oa T''=0a ane^ tle' ivgr ae Agjreementtli-1 the ' '-m21,��• 8:1e D... Ztln =oao_e==c in 4 gre_ment attache_ hereto ;prope-ly acco.-dance wit: said aid) r-.�-n'_5: rti.`icates ant Snei: c: insurance art a bone for �`is -aith=L. �ParEormance of said Agreement, and Por the -`yoe cc all persons ne^?ermi-Ig :abcr o- Eurnis;-i�q connection a therewith, nd spec is perform the A6e6m- ert ac_eata-cs 0-" seed 31;, then h c-Paced by _ie _ the same shail remain in^=once and • y _ • - - being exp:essly undes-stnod and a;-e_d t; at er_ n=ec shall , the Surety For any and a_1 claims o� jP _-na r,s - :n no event , exceed the Denai amount gEtion as herein stated . ° ' - Bond Schedule 5.0 .;C Page 1 c" 3 The aurety , For value received, `%are y st:nu:ates and acrees that the O'3_iyaz:ons salt Surat. a-d its DOi1d `ne11 be in nC Way impaired a_'ectet bu any ex:ens:cr, cF the time within which. the owner may ec=eoc su=` Hit . and said 5u:ety does hit-e5g waive ncti=e any suc^ extension . iN : 'rIc wH_EE:-, the rrincipai _ant the Sueet `ave here � _ Lint.: se= hares ant seals, and such OF them as are cer�are=:�-s have :a -sat th£__ -OrpCrat9 Sea:S Z7 be ` arnz= a"-; xe.- a. these Frew be s:_-ed by their mrooer Ca:1 t..he dad an: 'year `first ;_rte atzve . • WM 1C`�F\\ NEW YORK, INC. - - Pcinci_a: Donald S. Haufe, Assistant Secretary FIREMAN'S FUND INSURANCE COMPANY - Suret-- N1ssa� wman, A ornf� ey-:n- a ;cr-e_s F siretg : 233 S. Wacker, Ste. 2000 , Chicago, IL 60606 SFA; A CGR?DBo7:7N1 STA?r- CT ILLINOIS COUN'1 __ mai On " 22nd da•, CF Mav __ 97 �e persona ! ' fe Zama Donald S. Hau �e re tc n- mr.= ce_ng duly sw;;rn , d1C tancse arc say that ^e resines i - Hinsdale, Illinois that he '. Assistant Secretary oc the as. e Man ec•nt Opf 6hio-WesP r zneerve, A fid �1ana� many not h10 inch corpo.-z: :cn nescr_bat in and yh:_h axe=-Zed _he .—=reyo'ng i• instr''_me-- ; that he kncws the seal OF the that the seal 3F2, yet, t0 he instrument i5 SUCh CDt•D:rate Seal ; that it was so ar _ :xea bu the order e: the 3card cE ZirectOrs OF the corps _ ,a ' maned h: name t. �et y like orde- "OFFICIAL SEAL" IC KAREN E. BOGARD Nct ry PuD1:= NOI:AfiY PUBLIC STATE OF ILLINOIS Karen E. Bogard Fnrm, =My�I1mir:M"Lpires 4/20/99 SChetiule S .Q .K a_� r _ _ • Y C.n.NTFACTuR. C� 'PIT _- ` SSN; ~sc'= • cane a5 c - SeE r- -,le krOw-+ me - `:e a nenCeC or the f:rm of ',e known , ant end 3x9�u• =^ -n_ , Forego-`be an _ndivItua: ee�sc_:Set i- _�C W:, ` Ores0Ing ` ^st7unen� c . c:_ .r. the - -,ane -x-�u; _ ame _ and he du:u- ecknow.' edget =3Me -^t aL -=t5es r.37 or ant In a beha�: c` sa - _ oned tnerei- . t�e Wises hata:y ?ut::� • _�^,___ c__._ C\- : . itiC_'v :]U?i .0NTR4CTCrt) SS.v e =e75.".nc-_ iesc C a me <now- -Own - _ze :n =tet a _ WIPO sxec. ._et _: _ . - - znc _.._� acKnOW:-Cyst =-a= ne exeCCa_G '^eE e^ - _.. Sal hc_ary ?.:hlz� • o = dent GENERAL POWER OF ATMRNEY FIREMAN'S FUND INSURANCE COMPANY KNOW ALL MEN BY THESE PRESENTS:That FIREMAN'S FUND INSURANCE COMPANY,it Corporation duly organized and existing under the laws of the State of California,and having its principal office in the County of Marin.State of California,has made,constituted and appointed,and does by these • "resents make,constitute and appoint DONALD S . HAUFE , KAREN E. BOGARD , REBECCA R. ALVES , LINDA M. MAKDAH, MELISSA M. NEWMAN, jointly or severally CHICAGO IL its true and lawful Attomey(s)-in-Fact,with full power and authority hereby conferred in its name,place and stead,to execute,seal,acknowledge and deliver any and all bonds,undertaking,recognizances or other written obligations in the nature thereof _ and to bind the Corporation thereby as fully and to the same extent as if such bonds were signed by the President, sealed with the corporate seal of the Corporation and duly attested by its Secretary,hereby ratifying and confirming all that the said Attorney(s)-in-Fact may do in the premises. This power of attorney is granted pursuant to Article VII,Sections 45 and 46 of By-laws of FIREMAN'S FUND INSURANCE COMPANY now in full force and effect. "Article VII.Appointment and authority of Resident Secretaries,Attorney-in-Fact and Agents to accept Legal Process and Make Appearances. Section 45.Appointment.The Chairman of the Board of Directors, the President,any Vice-P'resideal or any otber person authorized by the Board of Directors,the Chairman of The Board of Directors,the President or any Vice-President may,from time to time,appoint Resident Assistant Smmiaries and Anomeys-lin-Fact to represent and act for and on behalf of the Corporation and Agents to accept legal process and make appearances for and on behalf of the Corporation. Section 46.Authority.The authority of such Resident Assistant Secretaries,Attorneys-In-Fact and Agents shall be as prescribed In the instrument evidencing their appointment.Any such appointment and all authority granted thereby may be revoked at any Bose by the Board of Directors or by any person empowered to make such appotatmem!' This power of attorney is signed and sealed under and by the authority of the following Resolution adopted by the Board of Directors of FIREMAN'S FUND INSURANCE COMPANY at a meeting duly called and held on the 7th day of August,1984,and said Resolution has not been amended or repealed: "RESOLVED, that the signature of any Vice-President, Assistant Secretary, and Resident Assistant Secretary of this Corporation, and the seal of this Corporation may be affixed or printed on any power of attorney,on any revocation of any power of attomey,or on any certificate relating thereto,by facsimile, aol any power of attorney,any revocation of any power of attorney,or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Corporation!' In WITNESS WHEREOF,FIREMAN'S FUND INSURANCE COMPANY has mused these presents to be signed by its Vice-President,and its corporate seal to be hereunto affixed this 11th d y of March , 1996 csQ FIREh DI COMPANY 1 ' By � vim-Pread,m STATE OF CALIFORNIA 1 COUNTY OF MARIN /1j ss Onthis 111h ;larch 96 M. A. Mallonee day of 19 before me personally came tome known,who,being by me duly sworn,did depose and say:that he is Vice-President of FIREMAN'S FUND INSURANCE COMPANY,the Corporation described in and which executed the above instrument;that he knows the seal of said Corporation;that the seal affixed to the said instrument is such corporate seal;that it was so affixed by order of the Board of Directors of said Corporation and that he signedhis name thereto by like order. IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal,the day and year herein first above written. I A. KRIEGER 0 rDn:x+ cI(A5ttz n �cil r.; ;t c -a�.w^anq N sent wetic LL 4�'S. .ar�rr 0 `\,• •L. �..,,,.:���•;,�.-sire-vvvl CERTIFICATE STATE OF CALIFORNIA COUNTY OF MARIN ss. I,the undersigned,Resident Assistant Sec-retary of FIREMAN'S FUND INSURANCE COMPANY,a CALIFORNIA Corporation,DO HEREBY CERTIFY that the foregoing and attached POWER OF ATTORNEY remains in full force and has not been revoked;and furthermore that Article VII,Sections 45 and 46 of the By-laws of the Corporation,and the Resolution of the Board of Directors;set forth in the Power of Attorney,are now in force. - Signed and sealed at the County of Marin.Dated the_22nd day of May 19 97 C PA �i Re,idm,Auin.m 369712—FF-11-97 STATE OF ILLINOIS COUNTY OF OuPAGE On this zzncl day of May 1997, before me personally appeared Melissa M. Newman known to me to be Attomey-in-Fact of Fireman's Fund Incnran,. , the corporation that executed the within instrument, and acknowledged to me that such corporation executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed by official seal, at my office in the aforesaid county, the day and year in this certificate first above . written. "OFFICIAL. SAL' / .� PATTY J. K E N I S (N bliC NOTAP,r 'C. CF ILLINOIS Mr Cort:-hr_i ^./17/99 • iNFORMATION SCHEDULE L PERFORMANCE BOND Bond No . KNOW ALL MEN BY THESE PRESENTS , ____ (hereinafter called the "principals) and (hereinafter called the Surety" ) are held and Firmly bound to t:he Town OF Southold (hereinafter called the "Owner" ) in the Full and just sum OF dollars (s ) good and .awful money eF the United States OF America, For the payment of which sum of money , well and truly to be made and done, the Principal binds himself, his heirs , executors , administrators and assigns and the Surety binds itself , its suece:=_sons and assigns , and severally , Firmly by these presents . WHEREAS, the Principal has entered into a certain written Agreeme-t bearing date on the day of Southold Sclid Waste Haul-Ois osalwith the Owner For the _ 'ohm of P Services , a copy OF ' which Agreement is annexed to and hereby made par;: of this bond as though herein set Forth in Fuji . • NOW, THEREFORE, the conditions of this cb' igation are such that it the Principal , his or its representatives or assigns , shill well and faithfully comply with and perform all the terms , covenants and conditions of said Agreement or :his ((,heir , its) Par-, to be kept and performed and all modifications , amendments , additions and alterations thereto that may hereafter be made, according to the true intent and meaning of said Agreement , and shall Fully incemniF9 and save harmless the Owner From all cost and damage which it may suffer by reason OF Failure so i. do , and shall Fuiiy reimburse and repay the Owner For all outlay and expense which the Owner may incur in making good any such default, and shall protect the said Owner against , and pay any and all amounts , damages , costs and judgments which may or shall be recovered against said Owner or its officers or agents or which the said Owner may be called upon to pay to anu person or corporation by reason OF any damages arising or growing out Of the doing eF said work , or the repair of maintenance thereof , or the manner of doing the same , or the neglect of the said Principal_ , or his (their , its) agents or servants or the improper performance eF the said work by the saidc°ncipal , or his (their , its) agents or servants , Cr the in:'ringement OF any patent or patent rights by reason OF the use OF any materials Furnished or work done as aforesaid or otherwise , then this obiigaticn shall be null and void , otherwise to remain in Full • force and effect ; Performance Bond Schedule S .C .L BID (PROPOSAL) FORM Page I of 2 • PRiivi=.="C HOw .'t?R =h- g c u.tee=wu , for va .ue received , hereby stipulates and agree=_ , if requested to do sc by the Owner , to Fullu perform and complete the work mentioned and described in said Agreement , pursuant to the terms, conditions, and covenants thereof , if For any cause the Principal fails or neglects to so Fully perform and complete such work and the Surety further agrees to commence such work of completion within ten ( 10) calendar days after written notice thereof from the Owner and to complete such work within ten C10) calendar days From the expiration of the time allowed the Principal in the Agreement For the completion thereof ; and further PROVI07-D HOWEVER, the Surety , For value received, For itself and its successors and assigns , hereby stipulates and agrees that the cbligation of said Surety and its bond shall be in no way impaired or affected by an extension of time , modification, work to be oerfcrmed thereunder , or by anu payment thereunder before the time required herein , or by any waiver of any provislons thereof, or by anu assignmen- , subletting e- other transfer of any work to be perFcrmed or any monies due or to become due thereunder ; and said Surety does herebu waive notice O any and all Of suc^ extensions , mcdificatiOnS, Omi55iOn5 , additions , • changes , payments , waivers, assignments , subcontracts and transfers , and herebu expressly stipulates and agrees that any and ail things done and cm tted to be done to and in reiaticn to assignees , subcontractors and other transferees shall have the same effect as to said Surety as though done or omitted to be done bg c. in relation to said Principal . iPJ WiTN75S WH=REEF, the Principal has 'hereunto set h!5 Cthair , its) hand and seal and the Surety has caused this instrument to be signedby its and 1 `h its cCrporate sea! to be hereunto affixed is da:; OF CIF Corporation add Principal Sea! and Attestation) By : Attest ----------- Add Corporate Seal By : Surety hAttest • Address CE SUr erU PerFormance Bond Schedule BIL .?RGPCSAC) FORM Page INFORMATION SCHEDULE: M • OPERATIONAL PLAN The Bidder hereby states that it proposes to implement the following operational plan to haul and dispose of Municipal Solid Waste (IVISW) from the Town of Southold Landfill if awarded an Agreement. I. Haul Summarize the manpower and equipment you will make available to perform under this Agreement. SEE ATTACHED OPERATIONAL PLAN . 11. Disposal Summarize the identity and location of the primary and secondary sites you plan to use for disposal of the solid waste. Describe the arrangements between your company and the disposal site for use of the site. Describe any treatment the MSW will undergo during transport or upon arrival at the disposal site. Attach copies of the permits to construct and permits to operate the disposal site. Site No. 1 WM of New york, Inc. d/b/a NAME Wagtp M.il1aanmpnt of Nom Vnrk LOCATION 215 Varick Ave. Brooklyn, NY CONTACT PERSON AND PHONE NO. Charles Gusmano ( 718 ) 533-5314 Operational Plan Schedule 5.O.M • Bid (Proposal) Form 1 of 2 • ARRANGEMENTS FOR USE N/A TREATMENT OR UNUSUAL CONDITIONS NI/A Site No. 2 NAME Modern Landfill (Owned by Waste Management ) LOCATION PD # 9, Box 317 York, PA 1740:2 CONTACT PERSON AND PHONE NO. Sam Lybrand 215-736-9400 ARRANGEMENTS FOR USE N/A • TREATMENT OR UNUSUAL CONDITIONS N/A OPERATIONAL PLAN Schedule 5.O.M• Bid (Proposal) Form 2 of 2 . OPERATIONAL PLAN WM of New York, Inc. shall famish all labor and equipment necessary to transport and dispose of Municipal Solid Waste from the Town of Southold's facility and to perform its obligations under this Contract. The Transfer Facility shall be available for loading of Waste Management's trucks between the hours of 7:00 am to 4:00 pm Monday through Friday, and at such times as the transfer station is required to be operated pursuant to this contract. All transfer trailers shall be loaded, weighed and staged from 6:30 am to 4:30 pm Monday through Friday. Transportation and disposal shall be provided as specified in the bid documents, Monday through Friday, between the hours of 7:00 am and 4:00 pm. and if necessary other hours as described in the bid documents. Based on the Town's typical waste flow, truck(s) shall be dispatched from the Facility to our permitted approved Disposal Facilities. Each truck's departure from the Transfer Facility shall be staggered by 10 minutes per truck. The above schedule is only intended to be an outline, and will be approximately adjusted to handled fluctuations in waste flow to the Transfer Facility. • WM of New York, Inc. shall provide sufficient and reliable equipment to efficiently transport the Municipal Solid Waste as described in the Bid Documents during the term of the contract. See attached"Equipment Listing" included in this submission for specifications equipment intended for use. WM of New York, Inc. has the ability to commence work on the bid project within the time frame detailed in the bid documents. • 95-195 Mag)—loc NEP!YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION r� APPLICATION FOR PERMIT TRANSFER (In Accordance with Uniform Procedures, Part 621.13) • - Please read ALL instructions on back before eomp:eting this application. Please TYPE or PRINT cleahv 1n ink. PART 1-TRANSFEREE(NEW OWN ERIOPERATORILESSEID COMPLETES: 1. LIST PERMIT NUNISERISI A1tD THEIR EFFECTIVE AND EYP+RATIO.'. DATES. 2-6104-00010/0001-0 Effect4-ve:9/13/94 Esoiration: 9/13/99 2. NAA1E OF TRANSFEREE II TELEPHONE`;UMBER Waste Manaa_ement of New Yor:c , a division of ?'1N o' Veto YkSTATE 7181386-7900 STREET n123 Varick avenue CITY Z:F CODE Brooklvn 237 3. TRANSFEREE IS A/AN: 'XOwner ®Ooeratc- _Lessee 4. NAME OF FACILITY/PROJECT Solid haste Transfer Station Recyclables Hand14_na S Recovery Facility STREET 215 Varick avenue CITY Brooklyn STATE ZIP CODE NY 11,237 COUNTY I TOWN Kings NA S. HAS WORK SEGUIN ON THE FR.OJECT? VA 13 Yes 11 No It no.Cropose i starting date: Apprc:lmate completion date: If there will be any modifications to the current Operabcn. the transferee must attach a SlateTent specifying the details. 6. CERTIFICATION: This candles trial the transferee 1s lne current oNnerloperatonlessee of the cameo facility. has a Copy of the pe.•mn.understands and will comply with all conditions in the referenced Period. Facility operationstproleet scope ciscnargeslemisalons will remain the same. Further.I hereby affirm mat under Penalty of perjury that information provided on this form and all atta_nmems submitted herewith Is true to the best of my knowledge and belief. False statements made herein are pumsnab as a Class A misdemeanc: pursuant to Section 210.45 of the Penal Law. Signature and Title �• �/✓� y 'YJiils�tia.0 Date �. PART 2-TRANSFEitCR(FORMER OWNERIOPERATORILESSE7 COMPLETES: 1. NAME OF TRANSFEROR I TELEPHONE NUMBER New York Accuisition Sub , Inc . 7081572-4800 STREET 3003 eutterfiEald �oad CITY STA "c Z CODE Oak Or-nk ILL 50521 F3.2. .:NAME OF FACILITY'PRO.-- -. :F CIFFEFENT FROM NA."E IN PART t. NA CERTIFICATION. This cev:es tnztt tth,eylanhty re!eren.em in Part t of oris dorm iswas tra-verre:: tp the party icenufiea as me new transferee !ownenopera;craessem cit $— ✓/,.r7/� ,B�aa� j t) Y1 Signature anc Tole -UA L.�-�r�C- r—/ Date�/ Ige PART 3-PERMITTRANSFER VALIDATION SECTION-DEPARTMENT OF ENVIRONMENTAL CONSERVATION COMPLETES: I 1 tarste' c' cern:; o_:...._. T'ansleree Subject to ::-:I;IOns c! cerm❑ without ezceo::C _Tians!e' o cerci z _.e: ...'n Ire lonow-n r__ ' canons _See zl:a_ e: .= e. _ .: oa9elsl New 1L]'.'.:auo ec'_ e - ._se:o,—c:ele Ire err_ ____cerr•::aooncalion ane re'u ._ _ _ _e s';-ea Re cnal Pe,i A]�¢R::a;or C s.cn L R a... a: c e r ' e oln e o :d,:^er! (see map W IE e'Se' Spnalure Oa:e 95.195, 1931-10C K.Yfs• •?::YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION :E•C••AEGION 2 APPLICATION FOR PERMIT TRANSFER (In Accordance with Uniform PrOCedUreS. Part 621.13) FT`' Z � Jg05 Please read ALL :ors on cacK before comoletirc MIS accucauC-. Please TYPE or P INT early In nr • -PART t—TRANSFEREE(NEW OWNERIOPERATOR/LE:SSEE)COMPLETE 1. LIST P=P.!.-IT `:IJMBERISi AND_== = ==== "' RE �t . r . ...E AND EXPIRATION DATES. hrPAIRS 2-6104-00010/0001-0 Effective: 9/13/94 Expiration• 9/13/99 2. NAME C=TRANSFEREE other than n mdiVldual.provide Taxpayer 0 STREET New York Ac uisitioa Sub Inc. Number 'ELEPHONE \'UMBEP. 3003 Butterfield Road clTv )TOR 572-8800 - Oak Brook STATE ZIP CODE 3. TRANSFEREE iS AIAN: IL 60521 �G:.- 20Cerator '_Lessee 4 NAME OF -rACILITYIPROJECT STREET Solid Waste Transfer Station lino and Recovery Facility 215 Varick Avenue CITY Brooklyn STATE ZIP CODE COUNTY NY 11237 TOWN Kings S HAS WORK SEGUN ON THE F=O-E:-r N/A Yes No i! -d. :•_ppseo startirc date: Approximate cOmoietic- ]ate: If mere win ce any modifications is the current Oderation. Ine transferee must attach a. statement soil ire details. 6. CERTIFICATION. This certifies mai :re nanstetee is the current ownencoeratorliessee of the named facility. has a Copy of The permit. understands and will COmC'.v with all condc:dns - ire reterenced permit. Facility operationsorolect sedpermscnargeslemtsslzns will remain the same. Further I hereby athrr'f that under peva.:. -i 1py trial information provided on This form and an attachmentssubmmed nefewnn Is true to ins best of my Knowledge and belief. False sta'till ma herein are punishable as a Class A misdemeanor oursuant to SBcti=n 210.45 of three Panel Law. • Signature and Title /;( - 6 �2LC 2 -r v/ Date PART 2—TRANSFEROR (FORMER OWNERIOPERATORILESSEEI COMPLETES. t. NAME OF TRANSFEROR i It Other than an individual,provide Taxpayer to Star Recycling, n I Number STREET TELEPHONE NUMBER 215 Natick Avenue Clry 1718 386-7900 Brooklyn STATE ZIP CODE 2. •1AME 0= -C•,1_= - 112 7 NAVE �V PART t 3 CERTIFICATIC): This certifiess��Ina: toe to Cllily reierenceo in Part t of this (Orn m o vas Iransterred to ine paw': icennhep as he new Irdnsllr!' owner,00era:d-,essi l on d'a C -9 41 ,oats). Signature a-.c Tdle /" .. .. • y i Date `•�v�• PART 3—PERMIT TRANSFER VALIDATION SECTION—DEPARTMESEM NT OF ENVIRONMENTAL CONRVATION COPLETES; ,xTTrranster =ermn aoorove: T,2-,eree suolea to conditions of oermit witnoul exception —See attached revised ce•mii oagels New ao_ :a,lt aoclica:,on a-C-eNrr it TO:re ur=e's'-red Re: :7a: Perm ! Administrator. Dln$idn JI Regu.:c', AI 5 ,_- 3'!m 5?? rf dJ d�!ve•sel S:gnatufe ` -a - dm s .a. -ate New ,rk State Department of Environmental Conservation Division of Regulatory Affairs, Region 2 Office 47-40 21st Street, Long Island City, NY 11101 . Tel: (718) 482-4997 Fax: (718) 482-4975 13 September 1994 _ Langdon Marsh Don Levy, Architect Commissioner 81 Sands Point Road Port Washington, NY 11050 Re: DEC Permit No. 2-6104-00010/00001-0 Stu Recycling, Inc., Solid Waste Transfer Station and Recyclables Handling and Recovery Facility, 215 Varick Avenue. Brooklyn, NY 11237 ECL Article 27 -- Solid Waste Management NOTICE OF PERMIT REN-ENvAL Dear Mr. Levy: The permit cited above is hereby renewed for a period of five (5) years. and the expiration date of this permit is changed to 13 September 1999. under the following condition: Within sixty (60) days of the date of this renewal, permittee shall submit to DEC a complete revised engineering report and facility site plan which satisfies all requirements of the • revised state solid waste management regulations, 6 NYCRR Pan 360, which became effective on 9 October 1993. Said revised engineering report shall include revised versions of the operations and maintenance manual. training plan, contingency plan. closure plan, and personnel list as required by revised Part 360. All other terms and conditions of this permit remain in full force and effect as written. If you have any questions please call me at (718) 482-4997. e truly yours. J hn F. Cryan tins Regional Permit mit A inistrator cc: R. Bruzzor.e. P. E.. DEC Region '_ Solid Waste Engineer Capt. L. hell% . DEC Region -1 Division of Law Enforcement Nt. Burke. Esq.. NYC Deet. of Sanitation A. Cucinona. Star Recvchng. Inc. • JFC:bh CWP60 PERREN.CON) • 'I"�S'a NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION 'AIT livimBER EFFECTIVE DATE ol-006010/1 Mills 9/13/89 / CILITYIPROGRAM NL at BE R(s) PERMIT EXPIRATION DATE(s) / 24T66 Under the Environmental Constervation Law 9/13/94 ' I Article 15. Title 3: 6NYCRR 327, 6NYCRR 608: I Article 25: 328. 329: Aouatic Pesticides Water Quality Certification Tidal Wetlands Article 15. Title 5: Article 17, Titles 7, 8: (- Article 27, Title 7; 6NYCRR Protection of Water a SPDES I Solid Waste Management' Article 15. Title 15: Article 19: Article 27, Title 9: 6NYCRR Water Supply Air Pollution Control' Hazarcous Waste Managemer Article 15. Title 15: Article 23, Title 27: Article 34: Water Transoc t Mined Land Reclamation LI Coastal Erosion Management Article 15. :Itle 15: g Article 24: Article 36: Long IslanD Wells Freshwater Wetlands Fl0000lain Management Article 15. Title 27: N—Ifew, R—Renewat, M—Moclflcation. �— Articles 1, 3, 17, 19, 27, 37 Wild. Scenic and Recreational Rivers C—Construct ('only), 0-0pere".a !*only) 16NYCRR 380: Radiation Cont PERMIT ISSUED TO Mr. Anthony Lomangino - Star Recyclina =nc. ADDRESS OF PERMITTEE 215 Varick Avenue - Brooklyn New York 11237 I AGFN7 FOR PERMrtTEE CONTACT PERSON. I (718) 779-4650 TELEPHONE NUMBER Same NAME AND ADDRESS OF PROTECT FACILITY(If dltlerem Thorn Pernteet Sarre LOCATION OF PROIEC7 7ACILITYI COUNTY .OWNICITI VILLAGE I UTM COORDINATES Same Kings New York I DESCRIPTION OF ALT-HORIZED ACTH ITV Operate a solid waste transfer station at a rate ro: exceedinq four thousand (4,000) cubic yards --er day of construction and demolition _ebris and earbaee. This permit for *he 215 ',=rick Avenue facility only GENERAL CONDITIONS 9v acceptance Of this permit. the permrllee agrees that the permit is contingent upon strict compti. ince with the ECL,all applicable regulations and the conmttons specified herein or attached hereto. I the ottre."re{Odlir - - -±Orn Ce.- -e aDproonale riivamal hermit aammlSVator Of Otne' f edea{ naitc In ine!^PUd wort at least JN l'^ - - R ..FOClnnt anoer mrpnbon lO c' •]V dO[p ^-0 time OI commencement and Shall d150 nO11tV r' -' t• OrOm O::\ r ,a nlrnR OI _om C4•llOn OIr the Ih!\t Ort TFp DPIm I!IpD Mor. .- -+!UOlect:; -tiecurth oV en a,,;ncrrged l.Dreten,an\e of !-e Circa- or En, (C^5-1 the nrC11 m.J\ OCCII InP a\OIA 5U5 Doone Imere✓ ,. -:_ res Dull-a-: to [CL i7 t 1 .rd PAPA 4aN11' 1 The DPrmnlPe ndte :.=.r_ 2,ore45.\ C. rlreteCU11.,r'-^a001lreton mC ty,,:Pga"'wc - . :Oral.__Tate!.CJerl^' - 'r-C. ^I♦\nnl,'.Pr-azure anu o\ . nnervd anong o:.:: -J.ect ce K -rd herein eno-.. dgeedl In inCemmr\ and !a\e ndr� -.. n SU...m, Irr,r' _ _ _ Olei 'Jtd[P -'�rl, d(:'c ....-a�5 and co,I,C' as P'\ nAmP d' Thr' I1�'OJlln,rnt 'r..�- _. .e .rpnr .. -.rn ITV ♦�,UPnC -. .....n.e 1"', nr.rmrl •^.\ Cm _ - -_v n0".:- - 'or,Uc, _ -- d r -tit . ♦r `I - _ "d CI 1 i. 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'E2VIT ADMIN'a-31 TOR .. _C; 9/13/89 George Dans Kinolf =d A1banv, ';f11223" AUTHORIZED Sir•.:'. c_ - r - Z NEW YORK ST{TE DEPARTMENT OF ENVIRONMENTAL CONSERVATION i • / ADDITIONAL GENERAL CONDITIONS FOR ARTICLE 27 1 Waste management 1 10. All activities authorized by this permit must be In strict conformance with the approved plans submitted by the applicant or his agent a. the permit application. Such approved plans were prepared by on SPECIAL CONDITIONS 1 ) All activities authorized by this permit muse: be in strict conformance with the approved clans submitted by the applicant or his agent as part of the permit application. Such approved plans were received from Donald Levy, Architect, or January 7 , 1987, last revised February 5, 1987 titled "Premises at 215 Varick Brooklyn , New York - Star Recycling Inc. - Solid Waste Transfer Station. 2) The facility is permitted to receive only the rnaterials listed in the "OESCRIP- OF AUTHORIZED ACTIVITY" on page 1 of this pe,rm. it as those materials so listed defined in 6NYCRR 360. No other solid waste of any kind including, but not limited to , industrial waste as defined in 614YCRR Part 371 or waste containing asbestos , shall be admitted in the facility. 3) In the event any hazardous or unauthorized was-e is found at the subject facil such pronibited waste shall be removed within Z4 hours by a waste transporter authorized under 6NYCRR Part 364 to transport such waste to an appropriate dis site. 4) Permitted activities are limited to delivery, inloading, temporary storage, . compaction, loading, materials recovery, and trans-shipment of solid waste. N other activities including, but not limited to , disposal , combustion, or compo of solid waste is to be conducted at the facility, 5) If the facility is permitted to receive construction and demolition debris, su debris shall not remain on the facility site for more than a8 hours. If the subject facility is cermitted to receive gar dace, such Garbage shall not remai the facility site for more than 48 hours . If the suoject facility is permitte to receive aarbaee , such Garbage shall not re '_in on the facility site for mor than 24 ^ours . 6) 411 solid 'waste transported from the permitte_ facility shall be disposed of lawfully. i 7) Jot Wore than 30 cubic yards of solid ;,aste ==r ' 00 zouare feet _f surface are shall be stored at the site. No material oil --e site shall exceed a height of 8 feet. 8) Access the suojec- facility shall ''e p>r^•' --ea cnl , ,.nen an attendant is or duty. 9) .ectbrs , t , snd __ors _-,all be c_ntrol '. e:: e -=_ -, so that they not to senses - ^azards heal. _- . 10) 7re 'cr --ee jnal _CSt _n7 `aintc'.n sl _I' , _ earl cO1p1E 7^ the street . statins --e oa*e , __cress . and hours f e' =- -n C= ^e 7Y. Such sign • shall - _ o s-ate -ne -_ pes of solid ..as-:- z : --_ ,na n t __cepted at the subject --C1 : ' t': . DEC _FRUIT �LMBER 2-0401 -000C' _, 1 PROCRAm FnCICT) �_. SER 24T66 • Special Conditions Cont. 11 ) Daily records shall report, in cubic yards, the type, origin, and place of disposal or sale of all material handled by the facility permitted herein. Such records shall be maintained for three (3) years and shall be available for inspection by the department on demand. 12) Within ten days after the end of each twelve-month period following the issuance of this permit, the Permittee shall submit to the department an annual report detailing the manner in which each permit condition has been met, and a monthly listing showing the volume of each type of material handled and where such material originated and was disposed or sold. 13) At the facility, there shall be no open fire as defined in 6NYCRR 215. 14) Operation of the facility shall not result in an obstruction of traffic. 15) dithin sixty days of the issuance of this permit. the Permittee shall submit an irrevocable letter of credit in the amount of $50,000 guaranteeing the subject business entity' s compliance with the Environmental Conservation Law of the State of New York. See attached sample language. • 16) Adequate space for incoming solid waste shall be available at the facility. 17) Adequate fire protection ecuipment shall be on hand at the facility at all times. 18) This permit and the drawing cited in Special Conaition 1 shall be kept on hand at the subject facili:y and shall be, available for inspection by any representative of the deoar,:ment upon demand. • Page 3 of 3 . COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF ENVIRONMENTAL RESOURCES PIN. STLVANIA Ste, RE61ON - FIELD OPERATIONS Wiste Management: Program One Ararat Boulevard Harriaburg, Pennsylvania 17110 (717) 657-4:588 May 27, 1993 Mr. James L. Stips, General Manager 1 I L` COPY Modern Trash Removal of Tork, Inc. A.D. @9, Box 316 York, PA 17402 Re: Major Permit Modification Modern Landfill Permit No. 100113 Southwest Expansion Windsor and Lover Windsor Townships York County Dear Mr. Stipet I an pleased to enclose a Permit Modification approving the Southwest Expansion. It is Issued in accordance with the Pennsylvania Solid Waste Management Act, Act 97. • Compliance with the limitations and stipulations that have been not feeth on your permit is mandatory. You have the right to appeal any limitation or stipulation an stated an your permit. Any person aggrieved by this action may appeal, pursuant to Section 4 of the Environmental Hearing Board Act, 35 P.S. Section 7514, and the Administrative Agency Law, 2 Pa. C.S. chapter 5A, to the Environmental Hearing Board, Second Floor. Market Street State Office Building, 400 Market Street, P.O. Box 8457, Harrisburg, PA 17105-6457, (717) 787-3483. TDD users may contact the Board through the Pennsylvania Relay Service, (800) 654-5984. Appeals must be filed with the Environmental Hearing Board vithin 30 days of receipt of written notice of this action unless the appropriate statute provides a different time period. Copies of the appeal fora and the Board's rules of practice and procedure say be obtained from the Board, The appeal form and the Board's rules of practice and procedure are also available in braille or on audiotape from the Secretary to the Board at (717) 757-3483. This paragraph does not, in and of itself, create any right of appeal beyond that permitted byleapy rIcable statutes and decisional lar. // S1 . r ncis P. Fair G Program Manager yPF:SG CC: Tork County Solid Waste 6 Refuse Authority • Tork County Planning Commission Windsor Township Lover Windsor Township Rearmed paper • THIS AGREEMENT, made on the day of 1997, by and between the Town of Southold, a municipal corporation of the State of New York having its principal place of business at 53095 Main Road, Southold, New York hereinafter called the "Town" and hereinafter called the "Contractor." WITNESSETH WHEREAS, Contractor has submitted to the Town a bid dated 1997 ("Bid") in response to the Town's Bid Solicitation for Solid Waste Hauling-Disposal Services dated • 1997, ("Solicitation"); and WHEREAS, the Town Board of the Town of Southold by resolution No. adopted on authorized the Town Supervisor to enter into an agreement with the Contractor to perform certain services in connection with the handling of solid waste. NOW, THEREFORE, it is mutually covenarited and agreed by and between the parties hereto as follows: I. DEFINITIONS - Terms defined in the Bid Solicitation shall have the same meaning as if defined herein. II. SCOPE OF SERVICES - The Contractor shall perform the services in accordance with the description of those services as set forth in the Solicitation. • APPENDIX A-1 III . TERM OF AGREEMENT The term of this Agreement shall be Three C3) years commencing an July I IF the Town enters into an intermunicipal solid waste haul/disposal agreement the Town may terminate the agreement at any time during Agreement years two C2) and three C3) by giving six C6) months written notice to the Contractor . The Town, at its sole discretion, shall have the option of renewing the Agreement For two C2) additional one Cl) year terms by giving Contractor written notice of its intention to renew at least thirty C30) days prior to the expiration of the term . • IV . PRICE SCHEDULE/COMPENSATION The unit bid price schedule For the services to be Furnished by Contractor is Found in Section C - 3 . 1, 3.2. , Contractor 's bid which is incorporated into this Agreement . V . PAYMENTS A . The Contractor shall receive monthly payments For services performed during the prior calendar month . The Contractor shall submit a request For payment on a Town approved voucher Form along with Contractor 's invoice which shall include a daily summary of tonnage hauled by Contractor to a Disposal Site and disposed by Contractor at a Disposal Site as applicable . Such payments shall be made within sixty (E0) days of the Town ' s approval of Contractor ' s invoice . The Town shall be entitled to • deduct From any payment owning to Contractor any sums expended by the Town to cure any default or other Agreement nen-compliance by APPENDIX A-2 Contractor or to protect the Town From loss on account of ang claims Filed or reasonably anticipated to be Filed . VI . CONTRACTOR 'S WARRANTIES AND REPRESENTATIONS Contractor makes the Following warranties and representations: A . Contractor represents that the Town has made no commitment under this Agreement with respect to the volume of sclid . wasts to be handled ty Contractor during the term of this Agreement. B . Contractor warrants that Contractor shall • comply with all federal , state and local. laws, ordinances or regulations applicable to all of the services to be performed by Contractor . C. Contractor represents that the information Furnished by Contractor in the equipment schedules . included in the bid is accurate and complete and Contractor acknowledges that Town has relied upon the accuracy and completeness of that information in the selection of Contractor as the lowest responsible bidder . 0 . The Contractor represents that Contractor shall utilize its best efforts to insure that Minority and Women Owned Businesses (MBE ' s and WBE 's) have the opportunity to participate as subcontractors under this Agreement . In the event • the contractor subcontracts twenty-five percent C25:) or more of its work hereunder, Contractor shall submit to the Town an MBE AFFENDIX A-3 and a WBE Utilization Plan, prior to execution of this Agreement . E. In the event the Contractor 's Disposal Site is unable to receive and-dispose of the Town's waste For any reason (including failure to obtain or maintain necessary permits or licenses) , Contractor shall be responsible For providing to the Town an alternate Disposal Site for the Town 's use at no additional cost to the Town, and shall indemnify the Town against any additional hauling cost by the Town or its agent because of the location of the alternate Disposal Site . Under no circumstances shall a change in Disposal Sits(5) or failure or inability to obtain or maintain necessarg permits by the Contractor be considered a change in conditions . In the event • the Contractor is unable to find an alternate Disposal Site(s) , he shall be deemed to be in default of this Agreement and liable for damages, bond forfeitures and other expenses as provided in the Agreement . . VII . INDEMNI^ICATiON INSURANCE/BONDS A . Contractor agrees to defend, indemnify and save harmless the Town of Southold against any and all liability , loss, damage, detriment, suit, claim, demand, cost, charge, attorney 's Fees and expenses of what ever kind or nature which the Town may directly or, indirectly incur, suFFer or be required to pay by reason of or in consequence cf the Ccntracterr, carrying out cc performing under the terms of this Agreement, or Failure • to carry out any of the provisions, duties, services or requirements of this Agreement, whether such 'losses and damages APPENDIX A" are suffered or sustained by the Town directly or by its employees, licensees, agents, engineers, citizens or by• other persons or corporations, i-ncluding any of Contractor' s employees or agents who may seek to hold the Town liable therefore. This obligation shall be ongoing, shall survive the term of this Agreement and include, but not be limited to, claims concerning non-sudden environmental impairments . The Contractor shall ,coin in the: commencement of any action or proceeding or in the defense: of any action or proceeding which in the opinion of the Town constitutes actual or threatened interference or interruption with the Town 's rights • hereunder, including all appeals which, in the opinion of the Town, may be necessary . B . Contractor shall procure and maintain the insurance described in Section A of the Solicitation for a period commencing an the date of this Agreement and terminating no earlier than one year following termination of services under this Agreement . All such insurance coverage shall name the Town as an additional insured and shall provide that the coverage shall not be changed or canceled until thirty (30) days written notice has been given to the Town . All such insurance shall be issued by a company duly authorized to transact business in the State of New York and acceptable to the Town and shall include all riders and additional coverage necessary to insure that • Contractor, will be Financially able to meet its obligations under the foregoing indemnification . APPENDIX A-S • C. Contractor shall , for the period of the performance of services hereunder, maintain a Performance Bond in the amount of one million_CS1 , 000, 000 .00) dollars wherein named obligee is Iown of Southold . The Bond shall be in a form acceptable to the Town Attorney and issued by a surety licensed to do business in New York as a surety . VIII . FORCE MAJEURE If either party is delayed or prevented from fulfilling any of its obligations under this Agreement due to any act, event or condition , whether affecting the Town, the Contractor, the Disposal Site or any of the Town 's or the . Contractor's respective subcontractors or suppliers, to the extent that it materially and adversely affects the ability of either party to perform any obligation hereunder (except for payment obligations) , and if such act, event or condition is beyond the reasonable control and is not also the result of the willful or negligent action, inaction, or fault of the party relying thereon as ,justification for not performing an obligation or complying with any condition required of such party under the Agreement, the time for Fulfilling that. obligation shall be extended day-by-day For, the period o£' the uncontrollable circumstance; provided, however, that the contesting in good Faith or the Failure in good Faith to congest such action or in action shall not be construed as willful or, negligent action or a • lack of reasonable diligence of either party . Subject to the Foregoing, such acts or events shall include the £allowing: APPENDIX A-5 (1) an act of God (but not; including reasonably anticipated weather conditions For the geographic area of the Town or Disposal Site) ,, hurricane, landslide, lightning, earthquake, Fire, explosion, Flood, sabotage or similar occurrence, acts of a public enemy , extortion, war, blockade or insurrection, riet or civil disturbance; C2) the Failure of any appropriate Federal, state, county , town or local public agency or private utility having urisdiction in the areas in which the Transfer Station or Disposal Site is located to provide and maintain utilities, services, water and sewer lines and power transmission lines which are required For the operation or maintenance of the Transfer Station or Disposal Site; (3) governmental pre-emption of materials or services in connection with a public emergency or any condemnation or other taking by eminent domain of any portion of the Transfer Station or Disposal Site; and N) the presence of hazardous waste upon, beneath or migrating From the Transfer Station . It is speciFically understood that none of the Following acts or conditions shall constitute uncontrollable circumstances: Ca) general economic conditions, interest or inflation rates , or currency Fluctuations ; (b) the Financial condition of the Town , the Contractor, any of its affiliates or . any subcontractor ; Cc) union work rules, requirements or, demands which have the effect of increasing the number of employees AF'ENDIX A-7 employed otherwise increase the cost to the Contractor of operating its haul operation or the Disposal Site (d) equipment Failure; (e) any impact -of prevailing wage law, customs or practices an the Contractor ' s costs; CF) any act, event or circumstance occurring outside of the United States, or (g) any change in law or in the permit conditions or status of the Transfer Station Disposal Site or alternate Disposal Site . IX . SUBCONTRACTS Contractor shall not enter into any subcontracts in connection with the services to be performed by Contractor hereunder without the prior written approval by the town of such • subcontracts . All such subcontracts shall make express reference to the terms and conditions of this Agreement and shall obligate the subcontractor to comply with all applicable federal , state and local laws, ordinances or regulations relating to the services to be performed under the subcontract . in the event the subcontractor is required to Furnish any insurance or bonds For the benefit of Contractor, the Town shall also be named as an additional insured or obligee . X . PREVAILING WAGE RATES Contractor agrees to comply With the provisions of the New York State Labor Law relating to the payment of prevailing Wage rates to the extent applicable, or the applicable State Law in the state of disposal . In the event that at any time during per'ormance under this Agreement the Contractor is required to increase the wages paid to any of its employees as a AFFENDIX A-e result of such requirement, all costs resulting there From shall be borne exclusively by Contractor . XI . FORCED ACCOUNTING In the event the Town directs the Contractor, by written authorization signed either by the Town Supervisor or Town 's Solid Waste Coordinator, to perform additional services beyond the scope of those described in this Agreement, the Contractor shall be compensated For such additional services on the following basis: TOTAL COMPENSATION FOR ADDITIONAL SERVICES • DIRECT LABOR COST + DIRECT MATERIAL COST + OVERHEAD + PROFIT For the purposes of this Section: A . DIRECT LABOR COST shall include hourly wages, including overtime premiums actually paid plus the following Fringe benefits associated with those wages - group medical , group life insurance, pensions, FICA, uniforms, safety equipment or special tools . These fringe benefits shall be separately identified and shall not duplicate fringe benefits paid in connection with work performed within the scope of the Agreement . B . DIRECT MATERIAL COST shall be those costs actually paid by Contractor, for materials utilized by Ccntractar in performance of the additional services. . The costs for such materials shall not include sales tax for any materials which . constitute personal property incorporated into the structures, buildings, or real property of the Town since such personal APPENDIX A-S property is exempt From taxation under Section 1115 of the New York State Tax Law . C . OVERHEAD shall be 10: of the total of the Direct Labor Costs and the Direct Material Costs . D. PROFIT shall be 5: of the total of the Direct Labor Costs, the Direct Material Costs and the Overhead. XII . CONTRACTOR 'S OPERATIONS AND PROCEDURES REPORTS Contractor will provide the operating plan and supporting data listed in Sections A and B of the Solicitation to the Town For review and acceptance . Contractor will update the plan as necessary and Furnish copies of those updates to the • Town . XIII . DEFAULT In the event the Contractor iFails to ' perform its obligations under the Agreement, the Town may terminate the Agreement, procure the services From other sources and hold the Contractor responsible For any costs incurred . The Town also may deduct such costs From payments owing to the Contractor and/or draw upon the Performance Bond as Full or ;partial reimbursement For such excess costs . The Town reserves the right to terminate the Agreement For gust cause . XIV . SERVICE AGREEMENT The Contractor shall be obligated to provide the Town with disposal services without regard to the permit status Of its Disposal Site . In the event that Contractor submits a Bid APPENDIX A-10 • For a Disposal Site for which Contractor does not currently have all necessary Federal and state permits, or which after the acceptance of the Bid loses its permitted status, Contractor shall , at its sole risk and expense, be responsible For obtaining and/or renewing its permits or providing the Town an alternate Solid waste Disposal Site at no additional cost (disposal plus any additional hauling) to the Town . The parties agree that this is a Full service Agreement and Failure of the Contractor to provide the identified Disposal Site or acceptable alternative Disposal Site, on or after the commencement date shall constitute a breach of this Agreement . The Contractor accordingly shall not • be excused From its obligations hereunder by reason of any Failure to obtain or maintain its permits at the identified Disposal Site . XV . LIMITATION OF FUNDS The Contractor agrees that this Agreement shall be deemed executcry only to the extent of the Funds currently available For the purposes of this Agreement and that the Town incurs no liability beyond those available by authorization of the Town Board as of the date of this Agreement . XVI . DISPUTES/ARBITRATION Any disputes between the parties to this Agreement may be referred to arbitration by mutual agreement of the parties_ . Absent such an agreement, any actions or claims by . either party hereto shall be commenced in Supreme Court, Suffolk County , New York . APPENDIX A-11 In the event the parties agree to arbitrate a dispute, such arbitration shall be conducted in accordance with the rules of the American-Arbitration Association . In no event shall any demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim or dispute would be barred by the applicable statute of limitations . An award rendered by arbitrators following any such arbitration shall be final and judgment may be entered upon it in accordance with applicable law in any court having ,jurisdiction thereof . XVII . MISCELLANEOUS A . This Agreement shall tie governed by the laws • of the State of New York . . B . Contractor shall not assign , convey or otherwise transfer its rights or obligations under this Agreement without the prior written consent of the Town . C. This Agreement, including all Exhibits and documents referred to herein, along with the Specifications, Solicitation and the Bid, and all Appendices and Exhibits thereto, represent the entire agreement between the Town and Contractor relating to the Services to tie perfcrmed hereunder . This Agreement may be modified only by written agreement of Contractor and the Town . D . To the extent of any inconsistency among the • documents constituting the agreement of the parties, the priority among those documents shall be: APPENDIX A-12 1 . This Agreement ; E. Exhibits hereto; 3 . The Solicitation including Appendices; 't. Contractor 's Bid. E. Without limiting any other right and/or remedy which the Town may have at law or under this Agreement, if the Contractor is adjudged bankrupt or makes an assignment for the benefit of creditors cc a receiver is appointed For the Contractor or any insolvency arrangement proceedings are instituted by or, against the Contractor, the Town may terminate this Agreement . • F . Contractor agrees that it will conduct itself consistent with its status, said statues being that of an independent contractor and, Contractor, its employees or agents will neither hold themselves cut nor claim to be an officer or employee of the Town of Southold nor make claim to any right accruing thereto including, but not limited to, Worker ' s Compensation, Unemployment Benefits, Social Security or retirement membership or credit . G . IF any provision of this Agreement shall For any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement anti this Agreement shall be enforced as iF such invalid and unenforceable provision had • not been contained herein . X . Contractor agrees that it shall not APPENDIX A-13 discriminate and that it shall cause: there to be no discrimination against any employee who is employed in the work, or against any applicant for such employment, because of race, religion, color, sex, age, marital status, handicap or national origin in any manner prohibited by the laws of the United States or of the State of New York . These requirements shall include, but not be limited to, the following: employment; upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training . XVIII . NOTICES • All notices required to be given hereunder shall be made in writing by first class mail addressed as follows: • APPENDIX A-11: • If to the Town: Supervisor of the Town of Southold Town Hall 53095 Main Road Southold, New York 11971 With a copy to: Solid Waste Coordinator Town of Southold 53095 Main Road Southold, NY 11971 If to the Contractor: • IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. TOWN OF SOUTHOLD BY: Jean W. Cochran, Supervisor BY: APPENDIX A-15 f Waste Management of New York 123 Varick Avenue Brooklyn, New York 11237 IQ A Waste Management Company Phone 7181386.7900 Fax 7181628.7090 May 22, 1997 Office of Town Clerk Southold Town Hall 53095 Main Road Southold, NY 11971 RE: CONSTRUCTION & DEMOLITION DEBRIS (C&D) HAUL-DISPOSAL SERVICES SOLID WASTE HAUL AND DISPOSAL SERVICES Gentlemen: • WM of New York, Inc. has the following comments regarding the Contract: I. Requirement for appropriate screening measures to make sure that other waste types are not delivered. Town should be held responsible for any cost incurred in separating and/or disposing other waste types. 2. At the end of Section II the language "and Contractor's response" should be added. 3. In the 6th line of Section V after the word "Town" the language "after notice to Contractor and opportunity to cure" should be added. 4. To the end of Section VI(A) the following sentence should be added: The Town has warranted, however, that Contractor will receive all construction material and/or demolition debris, solid waste (whichever applies) received by the Town. 5. In the 7th line of Section VII(A) after the word "Agreement" the language "in a negligent manner" should be added. • x DCA Lic.#0928527 DCA Lic.#0928528 g rd a division of WM of New York, Inc. A Waste Management Company Town of Southold May 22, 1997 Page 2 6. In the 2nd line of Article XIII after the work"may" add "after written notice to Contractor and a reasonable opportunity to remedy the default'. In addition, in the 2nd to the last line after the word "Town" add "subject to the notice required herein". 7. In the 2nd line of Article XVI strike the work "may" and insert the word "shall'. In addition, the entire 2nd sentence of the 1 st paragraph beginning with "absent such" should be stricken. In the event that WM of New York, Inc. is the successful bidder, a mutually acceptable contract will be negotiated with the Town. • Should you have any additional questions, please do not hesitate in calling me at (718) 533-5230. Sincerely, i 7 Charles Gusmano Director, Business Development • APPENDIX B • NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION PERMIT • Alk New York State Cecartment of Envlronmentai Conservation • taboo Legal Affairs. Building 10 -SUNY, Stony Brook, NY 117?0-2356 Telephone: (516) 44A-0315 NOW Facsimile: (516) 44443=9 J4ehad D.Zama Cummiaiaaer I -G ISE T'ne Honorable Je= W. CGC!U-- Sune.^visor, Town of Southold Town Hall :309: Main Rcad Southold, New .-Grit 119 i 1 Re: Town of SOUCaCids T,-=.s:er Steen Faciiiry ide-anic_tion No. :- T >= !, De= Sunenisor Ccc r-= ?arrant :o LT,-( of-t Seete=be: -', 1991, Decision and. Cr zr of Decury Cammissoner dxard O'Sullivan. DtC `+o. -0-0, and :he Tows ,-ru, cf Se.tzWbe'', i996. or as - cznsion :ae Decar-eat herecv angrves ocer-4=ca o:the :z erri = szr s3IIon at te Cutcaove sitz ,nal =ztr : .. :9 , :?e rve Teesray, Occoe:r 3, i99o. Ocer=tion it _ ac i-r-,rdl be s detailed :W±e =armee:ng Z--.cr. -recared ov Ovinca 3c 3arriiac-i dated :e=abe:. :;9 and '.n addition. _:e Toa,„, ;ur. ctuViy vitit i e 'Gilowing ooeratme condiaons: 1. i'ae Town gust ccrniv vita 5 �;;CCRR Subparts :60-1 ?-ovisicnsj and — e . 99liTre- taaenso � C ^ :cJ ( W ,,a — C- ,z ooed _ - saecrcadv -ecifed 'O :;ds au :cr_aen me .cr me ?laps. -. ie Jwil :��ll R0L r,,-re :yY,eS .I ::,e more 2, 7: '-cu” 7-1m 8 =.::'- GC .CCeCCanCe Or .Ucrl Was"-. -ie Cv i. :: �l aS- 11 eC ss 7 SR05 :0 :CriCOI .u:Sznc2S SL'C:S OtG:viL= =?-^•ers. /eC-Ors. _.:s:. C,. T- .- 2.umCr.:__ :0 CCe=e :-:e .`=;i7i C :Q i-^- -:':O ^•:"• Seven i l days APPENDIX B-1 :. roe Town is prohibited Ton receiving at this fac:urr„ hazardous wase as de^r ed n 6 Nq'YMR P_rt 371 or:eguiac-'S medical waste as deane:d in 6 VYCRR Part 360. Approval —nus: be granred in acvanm in writing, by the Regional Solid Wase Eagineer, ro accept non-hpardous indu_zial wase at the Fac3ity. 6. The Town shad apply for and receive a permit for the: transfer ration before cue expnanon of this temporary authorization. 7. The Town must submit by December 31, 1996, to the: Department either 1.)a request for Part 360 re3isrration approval for the subject aandetaciiry, or, 2.)aa impleme=.Iioa schedule for the preparation, submittal and obtaining of a decision.by the Department on a permit for the subject transfer acility. In the event the latter is submitted, it may, if determined by the Department to be appropriate, result in a further caension of this tenmorary authorization. In no event, however, shall such extension exceed October 3, 1997. This authorization is conditioned upon the Town's strict adherence to the conditions as Outlined above and allure to do so nay result in a revocation of this authotiadon. i-) Veru tai✓yours, ii, • RAY E. CC)W E;, P.E. Re2ottal Dirr-cr REC:1 MC.'mns Enc. cc: L. Riiey A. Cava 1 [. _ nen APPENDIX B-2 .;wa ^ .. . ~�ict�"6.�4""" "T '� ,_v�Ia "'-;an, fY�. ::�y`�14^L'lb� �e`�.1'Cp•33w�L 1 1 1 1 APPENDIX C . Town of Southold Accident Report • TOWN OF SOUTHOLD ACCIDENT REPORT Date of Accident : _/_/_ Time of Accident—: —AM/PM Oral Report By : To: � Date : _/_/_ Time : AM/PM Location of Accident: Brief Descriotion o: Accident : • Check iF continued on separate sheet Action Taken: Additional Ac:icn Required & By Whom : Date of this Report :/ Sy : _ Department : ____ ANY POUICE REPORT 'PREPARED R GARCING THIS ACCIDENT MUST EE ATTACHED . Forward Accident Report to Seim waste Coordinator, • Southc_t Tewn Solid Waste istrict F . O . Box Cbl Cutchogue , New York i ' S=`.� APPENDIX - C • S.0 SIIMMARY This is a Summary of the update to the Solid 'Waste Management Plan (SWMP) for the Town of Southold. The Town's initial draft SW" was adopted by the Town Board on September 25, 1990, and a final SWMP an January 22, 1991. Since the adoption of the SWMP, there have been a number of changes in solid waste management in Southold and on Long Island. The update to the SWMP has been necessitated by several factors, including changes in solid waste generation, recycling initiatives, regulatory constraints, ' and available capacity at other solid waste facilities combined with changes in the cost of out-of-Town handling and processing by the private sector. These factors have resulted in a change in the Town's preferred processing alternative for the residual waste remaining after reduction, reuse, and recycling. S.1 Town Setting The Town of Southold is a rural town of approximately 54 square miles located • in eastern Suffolk County on Lang Island. It is bordered by the Peconic Bays and Gardiners Bay to the south, and the Long Island Sound to the north. The Town, along with the Town of Riverhead to the west, comprises the :forth Fork of the 'East End• of Long Island. It also includes the Hamlet of Fishers Island, a small island community covering approximately four sgu re miles. The Town supports a large agricultural cc=mmity, as well as a seasonal tourist population and a number of weekend/part-time residents. of the various communities in the Town, the larger residential areas are primarily located za Southold, Cutchogue, Greenport, and Mattituck. The Town possesses diverse ecological resources including beaches, bays, estuaries, lakes, freshwater and tidal wetlands, and the upland environment. These resources are the result of natural physiology and existing development patterns, and are important for their preservational, social, aesthetic, and recreational value. The Town comprises 5.38 of Suffolk County' s land area, but only 1.58 of the County' s population. The largest single land use in the Town is vacant land • 5158R/? _727 SWMP SUMMARY-1 APPENDIX D effort are: o Newspaper 0 Plastic containers o Major household appliances 0 Metal containers o Bulk Metals o Household hazardous waste o Clear glass o Waste oil o Leaves o Green glass o Old clothes o Brush o Brown glass o Batteries o Rood chips o Ti=es o Mixed Paper (other than cardboard) o Cardboard In accordance with its solid waste management planning efforts, the Town has implemented a mandatory curbside recyclablecollection program for those residents whose solid waste is collected by carters.. Residents that use carters are required to separate green, brown, and clear glass, plastic (HDPE 31 and 32) , tin and aluminum (commingled) , newspaper, and cardboard. Collection of • recyclablas from customers is currently performed once every other week. Collection by Town permitted carters is provided for residential, commercial, iascituclpnal, and industrial customers on an individual contract basis. Commercial, institutional, and industrial waste generators can also deliver their own wascas to the landfill provided they are permitted by the Town. Residents may also drop orf their wastes at the solid waste complex with a permit. It is esci=ced that approximately 107 tons per day of municipal solid waste was generated is the Town in 1992. This volume is based on 1992 scale house data :rpm the solid waste complex and includes recyc:lables. Future waste stream projecticrs have been formulated based on the 1992, data and weighted population estimates through the year 2015, and are as follows: Year Tons per day Tons per year 1989 123 44,895 1992 107 .7 391313 1095 126 . 6 46, 194 2000 134,2 48, 995 2005 144. 1 52, 583 2010 154.4 56,30'4 s0i5 155.3 60, 348 —7 sWMP SVMM;LRY-3 S.3 Alternatives In formulating the Town's original ?Ian (final SWMP January 1991) , a number of alternative processing methods and implementation alternatives had been evaluated. The alternatives have been reconsidered in terms of environmental soundness, applicability, effectiveness and cost, and are presented in this SWMP update. They include: o Waste Reduction o Land Clearing Debris Recycling o Household Hazardous Waste o Wasta-to-Energy Reduction/Recovery Removal o Municipal Solid Waste Composting o Materials Recycling o Landfill Disposal o Agrivaltural and Yard Waste o Clean ?ill Disposal Composting o Methods of Processing/Disposal of o Construction and Demolition Other Wastes Debris (C&D) Recycling Although the State has set a goal of 50% reduction, reuse, and recycling as a benchmark for resource recovers systems, it has been concluded as part of the • updated plan that, given the characteristics of its waste stream, the Town could target a reduction/reuse/recycl-i g (including composting) goal of approximately 70%. The alternatives that were previously evaluated in the original SW14P for long-term processing or disposal of the residual portion of the waste stream were: o Continued landfilling (no longer an alternative within the Town) o Use of a new, double-lined Town landfill adjacent to existing landfill (no longer a viable al=arnac•_re) o Prccsssing at the Brookhaven composting-energy recovery facility (has not been implemented at this time) o Processing at Huntingtca energy recovery facility c Processing at Babylon energyrecovery facility o Prccessing at an in-Town mixed solid wasta (MSr11 composting facility (no longer a viable alternative) o Yard waste exchange arrangement with a town having an energy recovery facility (re-evaluatea this past year with the towns of Huntington/Smithccwn) o PrLvace sector processingidisposaI (Lacluding possible use of Hempstead' s existing energy =ecovery facility and recently proposed private sector facilities) • p long haul to another facility (ccmocnent of tamperary transfer operations) SWMP SUMMARY-5 recovery system. �r4asta Reduction Waste reduction refers to the reduction of solid waste prior to disposal. This is an important consideration since it may affect the sizing or magnitude of individual operations and facilities. Reduction of the volume of waste could be achieved through Town support of legislation and other initiatives that aim to encourage residential, commercial, industrial, and institutional establishments to reduce waste generation at the source or point of packaging. This would effectively reduce the volume of wastes that the Town would need to make provisions for with regard to collection, processing, disposal, administration, and financing. Regarding the legislative aspects of waste reduction, the Town will continue to support Laws proposed by the County, State, and Federal gover.ments that strive to: o Reduce the volume and type of packaging materials, especially those • constituted of plastics which are essentially nonbiodegradable, nonreusable, and nonrecyclable o Expand the current beverage container deposit law to include a wider array of containers o Encourage greater use of recycled materials, or "products packaged in recycled or recyclable materials o Promote the development of household hazardous waste removal prcgrams o assist and encourage industrial, commercial, and institutional generators to undertake reduction and recycling programs o Assist and encourage homeowners to undertake backyard composting and to leave grass clippings on the lawn The Town will continue to support legislative efforts to establish deposits on batteries as a means of reducing the concentration of metals in various products and residues of solid waste processing. Batteries ccnstituta an easily removable source of potential contamination from the waste stream. =n addition to legislative actions, all. sectors of the Town (public, comme-coal, 'Industrial, and 'institutional establishments) will be encouraged by the Town to =educe • S'AMP SMAMARY-7 The materials targeted '_or source separation., curbside collection, and marketing include paper (newspaper and corrugated cardboard) , color segregated glass, tin and aluminum, plastics (PET and HDPE) , and ferrous and nonferrous metal containers. Leaves, brush and land clearing debris are also source separated for the purpose of composting. In addition, construction and demolition debris, white goods (major household appliances) , tires, and household hazardous waste are kept separate at the Collection Canter. As previously discussed, cmmmercial/industrial toxic or hazardous waste is currently regulated for proper handling and disposal by Federal and State law. These materials should not be handled by the Town and are recycled or processed at private sector ` facilities. Aec c"na• Ma=c- Household Annliances As with the i_itial TmM?, the updated SWMP's resource recovery system recommends that discarded major household appliances (also referred to as 'whita goods') continue to be tamporarily stockpiled and transferred on a regular basis . to private recycling facilities. White goods, comprising approximately It of the waste stream, include discarded refrigerators, washing machines, dryers, stoves, etc. Depending on .arkets, i= is possible that revenues could be generated from this material. R cyc1 +-n• T4-a5 A designated pertien of the solid waste complex is used to temporarily stockpile tires for shipment to appropriate reprocessing or recycling facilities. The temporary stockpile operations should be sized to stockpile up to 1,000 tires at any given time. using an assumed, generally accepted generation rate of one tire per person per year :or the Town's population of 20,002, approximateiv 20,000 tires per year could require disposal. Alternatively, using an estimated factor for tires in the residential :caste stream of 0. 64 tons per day (based on 1990 scale house :ata) , with an assumed weight of 25 pounds per tire, an average of approximately 19,000 tires per year would -ecru: zs proper disposal. eased on these estimates, _t may be necessary to size a. tire stockpile and transfer operation to handla between 19,000 and 20,000 tires per year. This would correspond to an average annualtransfer arrangement of approximately 20 shipments per year (1,000 tires per shipment) , or approximately cne shipment • every 2 and 1/2 weeks, with a_-owances for more `_requenc shipments ging certain peak periods. 5!-aR/-4 :02i SWI+lP SUMMARY-9 • Recycl+nc• Household Hazardous Waste (cant. ) o Gasoline o Spot Removers o Herbicides o Stain and Varnishes o Kerosene o Wood Preservatives o Paints o Unknown/Unlabeled Containers The resource recovery system in the Town's updated SWMP recommends that the Town work toward implementing an extensive public awareness, participation, and education program designed to provide information an the importance of properly disposing hazardous materials and the procedures to be followed. The Town's S.T.O.P. program is consistent with the New York State Solid Waste Management Plan guidelines since it can effectively help reduce the quantity of hazardous wastes entering the waste stream. Additionally, the S.T.O.?. program is expected to increase environmental consciousness and encourage residents to segregate and recycle wastes rather than discard them. It is estimated that approximately It of the wasta stream will be covered by this element. • Rectclima, Ccnst- 1c-4on and Demal -tion Debris. The development, planning, permitting, and capital cost of a construction and demolition debris processing facility is cost-effective if it is hand-ad by tie private sector rather than the Town. Consequently, as with the initial SWMP it is recommended is the updated ?!an that this waste no longer be accepcad at Town disposal facilities, except on a temporary basis. The recycling/processing of this waste should became the responsibility of the pr':rate sector, as is the case in most Towns an Lang =Bland. This would help to maximize the ef_iciency of recycling this material. Concrete, rocks, bricks, asphalt, lumber, and pallets are among the components of CS0 debris that can be processed and recycled. -- is estimated that approximately 15% of the waste stream is comprised of commeraially generated construction and demolition debris that could be recovered by this ?!an element. Const-uction and demolition wastes cram residents and contractors are handled is the same manner. • -27 gWMP SUMMARY-11 . OVERVIEW OF TRANSFER STATION OPERATIONS 1. DESCRIPTION OF RESOURCES No changes to the District's funding mechanisms or management structure is anticipated at this time, although development of a long-range plan for the District is now underway. 2. WASTE RECEIVING AND TRANSFER The Town transfer station operates under a temporary permit from the DEC (pending approval of plans for a new/re-designod transfer station). It receives municipal solid waste generated within the Town by residential and commercial sources. Approximately 10,000 tons are received annually. The waste is delivered individually both by residents and small commercial contractors bringing their own waste (self-haulers) as well as by commercial garbage carters. All waste to be transferred is deposited into a cement pit, or trench, inside the existing collection building where it resides until the long-haul trailer(s) arrive to be "live-loaded." The trench can hold approximately 300 cubic yards of waste. Permit conditions require all waste to be removed within 48 • hours of being received. Upon arrival and weighing at the scale, transfer trailers drive in a temporary loading "slot" located outside the collection building approximately 75 yards from the trench containing the waste to be loaded. The transfer trailers rest on an asphalt surface approximately 4 feet below the loading grade. All loading is done with a front end bucket loader fitted with hydraulic clamps to grab and hold the garbage. Waste is packed, or pressed down, into the trailer by the payloader bucket. Once filled with waste, the transfer vehicles pulls out of the slot and proceeds to the scale to be weighed. If too much weight is on the trailer, the truck will return to the loading slot where the payloader operator will remove enough waste to bring the truck to a legal weight. If more waste can be accepted, the operator will add it to the load. Upon being properly loaded, the truck will "scale out," receiving a weight ticket, and pull off to a convenient location where the driver will tarp the load. PLEASE NOTE: The New Transfer Station Currently Being Planned Will Allow for Indoor Loading and Tarping of the Waste. The Town Anticipates . Construction of the New Station Will Be Completed Sometime it 1998. Appendix E 3. RECYCLING OPERATIONS a) Following is a description of key elements oif Southold Town's source separation and recycling program. 1. Procedures for implementing the current program. Collection Methods. Recyclables are brought to the Collection Center in two ways: a) self-hauled by residents, and b) hauled from curbside by private carters. a) Self-hauled recvclables are accepted during the Collection Center's regular hours, 7:00 am - 5:00 pm, Monday through Sunday. Self-haulers deposit the following items at the recycling drop-off station: 1) glass bottles separated by color, 2) tin and aluminum cans into separate 2-cu. yard containers; 3) plastic containers; 4) polystyrene (PS)(#6 plastic); 5) mixed paper; and newspaper (ONP). Corrugated cardboard is also accepted, but at an outdoor "bunker" away from the main recycling drop-off station. The glass is deposited into 2-cu. yd containers. When full, the • glass containers are carried via forklift from the drop off station to roll-off containers located at a below-grade storage area outdoors, approx. 60 feet to the north of the main collection building; the tin/aluminum cans are brought to an outdoor "bunker" (a 30' by 40' paved area enclosed on 3 sides by movable concrete block walls 4' in height); the plastic is hand-sorted to remove HDPE and PET containers, which are then baled in one of two small vertical downstroke balers. The remaining plastic consists of a mix of#2 color containers and other miscellaneous plastic. This mix is removed in a container via forklift and dumped in another outdoor bunker; the PS is placed into bags set up in one of two PVC frame bins at the drop-off station. There are separate PS bags for "peanuts" used in shipping packages, block used to pack electronic equipment, and food service containers. Mixed paper is dropped off into 4-cu. foot size gaylord boxes, which are then loaded via forklift into a van-type trailer for hauling to the recycler. Corrugated cardboard is deposited in an outdoor "bunker" to hold until there is enough to load an open-top trailer for hauling to the recycler. The corrugated bunker is shared with carters bringing in corrugated from curbside. ONP is deposited into small carts used to transport the paper to roll-off containers • stationed at the outdoor storage area. The ONP is then hauled out under arrangement with a private firm. • b) Private carters deliver source-separated curbside recyclables consisting of all the same items as self-haulers, with the exception of polystyrene (#6 plastic). The glass bottles (also separated by color) are delivered directly to the roll-off containers at the bi-level drop area; the tin/aluminum cans, plastic containers, and corrugated cardboard are brought directly to the outdoor "bunkers" that were mentioned above. the curbside plastic comes in at too fast a rate to allow it to be sorted to extract the valuable HDPE and PET. It is merely loaded loose into an open top trailer for hauling to the recycler. The haulers bring mixed paper to the :same gaylord boxes used by the self-hauling public. They bring ONP directly to the roll-off in the bi-level area mentioned above. Processing Design/Description - The facility to which self-haulers bring their recyclables is a section of a large building (the Collection Center) that also houses an enclosed facility for the residential and commercial delivery of garbage, a mechanic workshop, and the Center's central office. The main residential self-hauler recycling drop-off area is on a covered concrete slab 50' by 25', open on one 50' side. It contains • containers and bins for the drop off of glass (sorted into clear, green, and brown), plastic, tin and aluminum cans, and polystyrene. It also contains the vertical balers used to bale HDEP and PET plastic, which is separated from the mixed plastic stream by facility staff. The corrugated is deposited at an outdoor bunker that is also used by haulers delivering corrugated from curbside. Mixed paper is deposited, by both self-haulers and curbside haulers, to the gaylord boxes that are lined up along one wall of the residential garbage drop-off floor. Curbside glass and ONP are delivered to roll-offs located in the bi-level drop area; curbside cans, plastic, and corrugated are delivered to the outdoor bunkers. 4. ACCOMPLISHMENTS/NEW ISSUES a) The 1996 period saw several significant and unique developments that contribute towards the MSW management goals set out in the SWMP. 1) Acquisition of Yard Waste Processing Eguioment. In anticipation • of receiving ultimate approval of the Town's compost plan. the District acquired the necessary equipment to process and compost 3 • all of the yard waste currently generated within the Town. 2) Enhancement of Source-Separation Recycling Program. The Town adopted a design concept for a new transfer station that reinforces its ability to handle existing source-separated recyclables from both self-haulers and carters, and which provides for future expansion of the source-separation program. This demonstrates the Town's commitment to source-separation as the operating principle behind all of its recycling efforts, and as the means to achieving the recycling rates envisioned in the SWMP. Southold is unique in this regard. 3) Addition of Polystyrene to Source-Separated Recycling Program. Southold became the first Town on Long Island to initiate a Town-wide polystyrene recycling program by participating in a pilot-project sponsored by the American Plastics Council (APC) and the County of Suffolk. Starting in May 1996, the recycling center collected and shipped to a Long Island vendor 3 grades of polystyrene (#6 plastic). Approximately 2 tons of this extremely light material (600 cu. Yds) were collected and moved. One of the grades, packaging "peanuts," were delivered directly to package • shipping outlets for re-use. 4) "Cans for Kids" Program. The Town initiated) a drop-off program to collect 5v deposit aluminum beverage cans for use by a local youth environmental organization. We estimate approximately $15,000 worth of these cans are delivered to the recycling center each year. The Town solicited and received the cooperation of local beverage distributors and sales outlets to accept cans delivered by youth group members who will use the income to fund group activities, which include nature area cleanups, ecosystem study sessions, and recreational camping and field trips. The drop off facility is designed to keep cans sorted into the required brand-name groupings, thus making it easier for the group to redeem them. b) Issues with a potential effect on MSW haul and disposal arrangements are listed below. Item Issue New Transfer Station Town plans to construct a new facility for • receiving and transferring waste and recyclables adjacent to the existing 4 • transfer station. A conceptual design has been approved. Engineering specifications for the new station will be completed by early summer and :submitted to the Town for approval and permit application to the DEC. Construction is expected to begin late in 1997. Existing loading patterns will be changed to accommodate construction activities. The Town will work with the contractor in advance to address any changes in loading arrangements, including any effects on the location where long-haul trailers are to be staged for loading or the time or days of week available for loading. • Permit for Full Scale Yard DEC approval of plan submitted in 1995. Waste Compost Facility (May depend on ultimate approval of Closure Plan). Town continues with previously approved small-scale composting program as well as volume reduction of excess yard waste (shredding • and chipping) for give-away program or use on-site as ground cover or slope-stabilizing medium. • Capping and Closure of The Town is planniing to begin capping and Landfill closure operations of the now inactive landfill (which is adjacent to the transfer station) within the next two years. This activity may have minor impacts on SW transfer operations due to increased traffic at the site or occasional diversion of resources to activities other than loading MSW. The Town will notify the contractor in advance if it appears that such impacts may result: in delayed or postponed loading operations. • ovwtmnf i 1996 CUMULATIVE WASTE SUMMARY THRU -DECEMBER DECEMBER teas I 1 YTD t6"Im _ I TeMI %CMp %CMpfmn I TOTAL Fmm TID .91P 9EB MM APR MAY AV, M AW 6EP CCT IW i T. F.R(N OEC ISM I TONS 1995 I I 1 13537 I I Cla9eaE. (in6{r.ToW 23737 •!76 691] 13761463 '041413746 16957 7237 92 top 20)37 to� 1071 I 1460 69% -16T%win �12 55034 25m 14M 6371214646 11797 3 T -,91131+P 9e37 219x v 1 9nm 51% T -Wn6Y w.M. 469) 370] 1]9] 7737 nM 75M 002 1]646 =37 7611 466 I T -w.TWrA IV 9yP) B6 BE 96046 lwW 12,4084976YMm 31 x°61 33043 M Os W21 32HW 31145 Mal 1 �Y 1.1% 011% j 69�51� a� S C&D 14637 19)25 376" 1037 52151 12193 3126 ]till 553 70 31321 20 52 1 212 oe 74 aas% 412% I 190023 4691% Cay.0 146 827 7991 T3em Me? 67" 1946 tell fi 137 1315 3722 1 ln..l..w 1310 ON 157. 13710 392 ale] so 159 em 1035 3737 I 137 -06.1% Siam I 237m 182% T PrLOrNInW11 1313 oM 1011 1460 1376 20237 M19 24671 lam Ino 199" I low 2156 11146% I 196785 eex Apw..N 021 OM 10 36m 092 tm 60 196 ,4w 3646 14637 I 19..15 329% 06.1% I .1e 12 2lam SnW M.W 1)]I 919 3362 260 ww 1111 Mal 3746 1176 21" 2112 1 to at .139% mIK 1 34637 f09x Tn.. 43W 006 1611 1166 12M4 W ��� lief 1)21 1212 /635 0046° 1 om HERR 140 j 12337 -0]% T G..10 00 TOTAL 90199 )9562 116959M790 2m1m 113)13 Inas) 276961 107137 246275 1371.37 i 1146.11 -16.1% 301% i 20e6055 19376 Rn,N.e..w I 1 1 1 2964 D •6aawJM,klr 1]55 S24 116p 01'+50701 IPI ei 1910 is Mn ea 70e 7K21 511594w0 I 471" "311%26 400% I 135273 lam 6r66e6 037 -wm -am I 370 40 54646 Om 037 °m Om 129 946 510 131 239 641 1x1 1 m � )m 11] 619 Tw 997 Ia w 1930 21" 20 meg A95 1 1w to M59% 2371]16 1 56].13 1355% 3SB I5 a5.11 2]171 "618 11535 a35m 9mm 46911 45767 33709 3x1.11 1 33715 210% ].1% I 172146 mm v xar.0a lbi.l 1246 111 761 237 991 637 711 150 792 536 907 I em o.1% 113% 1 1213 9537 XTOTAL'. 12900 41216 an 76 131112 957 67 10]137 37102 00137 123103 125370 213746 i 169911 160% nix I 11560.37 300% GRAND TOTAL. 139699 IM790 169935 1251.16 Useu 350191 MS 10 2.12137 3137.10 2)9846 337237 i ]46M.N J.m6 310% I 3350.W 23°% m I Vh .m (9rrr.) 1156 1237 ]065 1925 14141965 1013 1232 2137 los 1390 i Imo 111% 11.2% i Ie W2 17% I T..c.u w m1e EPR EPR 1 azm ox yiym„1 9 0 o e o 15 0 21 ° ° ° � I T- 96 -MSW0... -u T6]m W •ROTE.392MMMYw W2.637x13a9r1Y,.nn Orad.MW S- 96351..C6Drr.M�6r 6.16yn.20.e.r19r.r96hy6.ep19p rd FYd�p STM m6ntl x3535. swrwlTw.,Darn9n.r.asd6 w+.r. 1A09) 1996 CUMULATIVE RECYCLING SUMMARY THRU DECEMBER ------------ "T B ---_-_ I YTD %CHYge j TYY %Clomp D%EC la 1 Flw 1 TOTAL FraI YTD Tar Fran NOV DEC 1985 I TONS 1995 JAN YES MAH APP MAY JUN JUL AUG SEP OCT NOV i_.._-__..._. ................ . _..-.. i...-_..-.--..._...-- HOIIS&HUI D RECYGLING 1 1 GWM I 2863 17M 160X I ]9004 -169% CWY 2907 27 17 20]7 39.71 W48 3.73 3987 3714 3826 2833 2523 360 6.1% -59% 1 48.01 -488% & 451 2D] ]16 261 192 381 529 570 6Be 344 i]3 171] O.S% 41.1% i 2]139 172% Grwn 1524 1289 1276 1539 1743 2253 2090 20]7 2515 2138 1063 18.17 379% 3.1% 16175 46% 2205 IB OS law 1329 671 2155 21.11 1042 1103 12.20 1315 I 0,13 00% NO, 1 136 NAA Ru6c 077 0.13 013 013 2214 610% 62% 1 25542 21.0% PwAt,... 2300 to 25 10.8 1528 1164 17IN 1549 3789 ]7 B9 1910 1181 10283 67% 26.3% 1 118098 564% Cw 23M 1722 5841 704] 11017 Ne9 124 BO Inel 13532 1131] W37 1 i]7M 30 D% 303% � 147732 730% N.wP.W 1]48] +3253 80)4 14010 13231 9121 19747 '12635 11906 9901 M77 1 160 DO% 600% 1 IBM 352% C.,O j 150 150 150 150 150 IW 150 150 150 150 I SOIW 1 100 00% 00% 1 1100 156% CU B.m6l. 050 IW 100 100 100 100 100 100 100 100 105 j 3780 12 B% -51.8% 1 7657] 7.5% HH O.BYrea 4077 7916 5958 1]188 7628 3690 5545 9165 OS 01 6193 3380 ' 1DO 00% 1414% 1 53.05 742% W..6P.IAB 182 119 038 152 10.1 825 637 700 700 ?Do 700 bis 33.1% 413% 1 72.]5 tl% CW"v 122 4)1 701 703 581 ew 721 450 792 538 S.D7 1 2.50 00% 2378% I 2775 233% We..011paul 030 000 Deo 352 477 279 323 250 250 250 250 i 1 D cW 4waw INS 46 21.0x ).lx 1 axm 28M HOus.roM TOIW. ]BB 45 351+4 27471 44816 415]5 33500 BOB 76 40911 45767 38569 321.14 i i '0 1 1 M HOut.IdO H.cYc1ry 1 1 410% Z w%a HOOs. 408% 1 Q GYO.w 414% 444% We% 4]7% 459% 414% 40)% 395% 703% 776% .14% i 1 COMMERCIAL RECYCLING 1 1 X lastW33 2138% 251% 1 33.74 100% Scrap MOW, 1774 9w 3562 20w 60W 4114 3561 2.9 Be 2276 2177 zt9 66 e2 00 i] 2200% 617% 1 19175 190% m TY.. 4359 978 1081 1275 1285 1104 12W 0H 1212 1002 128 49.14 57.1% 404% 1 62019 120% CwmxaM TOW 9133 1898 5223 41.18 7375 53W 1955 3039 N8B 3110 3120 i 1 1 I YARD WASTE RECYCLING 1 l..wa 45 i0 1864 23205 01009 30261 7117 4753 2462 3551 24438 73540 1 69560 .737% 712% 1 298415 461% --co1Y.WJ 160 1100 W.5 ]Q.10 33925 20133 12486 9326 7]87 9009 42.89 i 11.30 -]]7% 516% i 142]16 1485% --u mO.W I 1 W.W CIYa 48335 2431% 700% 1 555176 308% tln ntl sO Btl 16990 124084 070]1 4]401 ]6543 71821 26199 71145 64061 3030 .690x 607% 107019 4�2% 834 107 IW B6 Bi 404 30482 W20 11411 32]3 61.13 10041 I 1 -wmovM 5 •,�•• 1118e8 -294% 400% I 851622 - YYJWOW I., 11250 7002 40185 IBW93 127882 W5 re 41320 31253 29060 61503 158424 i 1 165047 .196% 353% I 1370794 324% GRAND RECYCLING TOTAL. 51238 4Q 72 72589 2330 2a 1701 92 80379 87051 Bpi.]] 78305 91391 1830 1 1 AI FF.Y W4 I I w%Y 1" 407% 38]% 384% 546% 610% 248% 375% 373% 252% 327% 552% i 16 T% W.M4 S&. 1850 33.1% 41.2% 18822 47% W.ala O4lwB.u) 1155 1280 toes 1825 1620 1855 1875 12R 2174 14)5 UBO i 1 1 10 ERR ERR I 69 .115% T...(0055 0 15 0 21 0 0 0 I -.-____----------- __.................__-... 1 pM trunal B 0 0 3 1_--...._...__-- _ -NOTE.Ytl ,VMWMrwnpa90w.MwIb HOnrl.tlorW COLLECTED L.6wa 5aac.. $a6pM TOM6 D.P.r,m.m OI6o16 W.sre