Board Packet

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BOARD OF DIRECTORS Sofia Pereira, City of Arcata, Elaine Hogan, City of Blue Lake Leslie Castellano, City of Eureka Michael Sweeney, City of Ferndale, Chair Rex Bohn, County of Humboldt Frank Wilson, City of Rio Dell, Vice Chair Agenda Thursday, March 12, 2020 at 5:30 PM Eureka City Council Chambers 531 K Street, Eureka, CA

Copies Available: Copies of the agenda materials are available electronically via the internet at www.hwma.net, through individual HWMA member agencies or by calling HWMA at 707-268-8680. There may be a charge for copies.

Accessibility: Accommodations and access to HWMA meetings for people with special needs must be requested in advance of the meeting at 707 268-8680. (The Eureka City Council Chamber room is ADA accessible.) This agenda and other materials are available in alternative formats upon request.

1. Call to Order and Roll Call at 5:30 PM

2. Consent Calendar All matters listed under the Consent Calendar are considered to be routine by the HWMA Board and will be enacted upon by one motion, unless a specific request for review is made by a Board Member or a member of the public. The Consent Calendar will not be read. There will be no separate discussion of these items unless pulled for discussion.

a. Approve Minutes from the January 9, 2020 HWMA Board of Directors Meeting b. Approve December 2019 Financial Report c. Approve January 2020 Financial Report d. Approve Amendment Number 1 Between HWMA and Eel River Recology for Loading Services Agreement e. Approve Change of Merchant Services Provider for HWMA Credit Card Transactions f. Approve Resolution 2020-06 and Authorize the Executive Director to Execute an Agreement with Voya Financial to Implement the CalPERS Supplemental Income Deferred Compensation 457 Plan.

3. Oral and Written Communications This time is provided for people to address the Board or to submit written communications concerning matters not on this agenda. Board Members may respond to statements, but any request that requires Board action will be referred to staff for review. Reasonable time limits may be imposed on both the total amount of time allocated for this item, and on the time permitted to each individual speaker. Such time allotment or portion thereof shall not be transferred to other speakers.

4. Receive Presentation on North Coast Recycling Market Development Zone Activities for FY 2019-20

5. Receive and Approve the Classification and Compensation Study Results

6. Board Member Reports

7. Executive Director’s Report

8. Adjourn

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BOARD OF DIRECTORS Sofia Pereira, City of Arcata Frank Wilson, City of Rio Dell, Vice-Chair Leslie Castellano, City of Eureka HUMBOLDT WASTE Elaine Hogan, City of Blue Lake MANAGEMENT AUTHORITY Michael Sweeney, City of Ferndale, Chair Rex Bohn, County of Humboldt Minutes Thursday, January 9, 2020 at 5:30 PM Eureka City Council Chambers 531 K Street, Eureka, CA

Present: Michael Sweeney, Sofia Pereira, Frank Wilson, Rex Bohn, Elaine Hogan Absent: Leslie Castellano Staff: Jill Duffy, Tyler Egerer, Eric Keller-Heckman Legal Counsel: Nancy Diamond

1. Call to Order and Roll Call at 5:30 PM Chairman Sweeney called the meeting to order at 5:30 p.m. A quorum was present and acting.

2. Consent Calendar a. Approve Minutes from the November 14, 2019 HWMA Board of Directors Meeting b. Financial Reports for First Quarter FY 2019-20 c. Financial Reports for October 2019 d. Financial Reports for November 2019 e. Approve Amendment No. 3 to Agreement between HWMA and Executive Director Jill Duffy Chairman Sweeney opened the floor to public comment regarding the Consent Calendar. No comment was received. Chairman Sweeney closed the floor to public comment. Motion: Director Pereira moved and Director Wilson seconded the motion to approve the Consent Calendar. Action: Approve the Motion as made by Director Pereira and seconded by Director Wilson by the following vote: Ayes: Sweeney, Pereira, Wilson, Hogan, Bohn Nays: None Absent: Castellano

3. Oral and Written Communications Chairman Sweeney opened the floor to public comment regarding items not on the Agenda. No comment was received. Chairman Sweeney closed the floor to public comment.

4. Receive Presentation Outlining Independent Auditor’s Report for Fiscal Year 2018- 2019 to be Filed with Authority Archives, State Comptroller, and required Financial Institutions Executive Directory Duffy presented the Independent Auditor’s Report with commentary from Director of Finance and Administrative Services Egerer. Chairman Sweeney opened the floor to public comment regarding the Independent Auditor’s Report. No comment was received. Chairman Sweeney closed the floor to public comment.

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5. Fiscal Year 2019-20 Mid-Year Review; Receive Report and Approve Recommended Adjustments. Chairman Sweeney opened the floor to public comment regarding the Mid-Year Review. No comment was received. Chairman Sweeney closed the floor to public comment. Motion: Director Pereira moved and Director Hogan seconded the motion to approve the Consent Calendar. Action: Approve the Motion as made by Director Pereira and seconded by Director Hogan by the following vote: Ayes: Sweeney, Pereira, Wilson, Hogan, Bohn Nays: None Absent: Castellano

6. Receive Curbside Recycling Presentation by Linda Wise, Recology- Humboldt General Manager Chairman Sweeney opened the floor to public comment regarding the presentation by Linda Wise. Comment was received by the following members of the public: Maggie Gainer, of Zero Waste Humboldt, requested clarification on slide 13 of the presentation materials, regarding plastic; the purpose of the slide was to highlight problems of material distribution, not problems with management of the material itself. Chairman Sweeney closed the floor to public comment.

7. Board Member Reports There were no board member reports.

8. Executive Director’s Report Director of Operations Keller-Heckman provided information on the new materials reuse policy in effect at the Hazardous Waste facility.

9. Adjourn Chairman Sweeney adjourned the meeting at 6:43 p.m. Next Meeting: March 12, 2020 at 5:30 p.m. at Eureka City Hall Council Chambers

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: March 12, 2020

FROM: Tyler Egerer, Director of Finance and Administrative Services

SUBJECT: Item 2b) Receive December 2019 Financial Reports

RECOMMENDED ACTION: Review and Approve Review and Approve December 2019 Financial Reports.

DISCUSSION: Each month, staff presents an update on the Authority’s financials based on activity to-date for the period two months prior to the current month. This enables staff to provide a complete presentation of the full financial activity for that period, as financial data will have been recorded and finalized for the reporting period at that point.

Each year, pending the finalization of the Authority’s financial audit, these financial reports are presented as preliminary financial reports. Once the audit is finalized and staff closes out the prior year, information presented will represent accurate to-date financial activity and will be marked as such.

Attachment B, Statement of Operations for Period Ending 12/31/2019 is presented in summary format; detailed analysis of each division of the Authority is available by request for those interested in division performance. Highlights of Fiscal Year 2019-20 activity to date include:

a) Consistently strong activity through all divisions is resulting in increased revenue and expenses over initial budget estimates, as additional tonnage produces not only more revenue, but more disposal expenses. b) The Authority’s net deficit continues to decline thanks mostly to efforts by Authority staff to reduce day-to-day costs and continue to improve efficiency throughout all divisions. New employee time tracking software and other digitization efforts are reducing Authority-wide general expenses and increasing reporting accuracy to customers and vendors alike.

The Authority’s cash position is comprised of two accounts; 1) the Authority’s checking account, which handles the day-to-day expenses; and 2) the savings account. The combined value of these accounts equals the total cash available for Authority reserves and operating cash. The current value of the Authority operating fund and combined reserve funds are as follows:

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HWMA Operating Fund: $1,883,152.25 HWMA Undesignated, Capital, Personnel, and Stabilization Funds: $2,061,670.00

Authority Financials: Attachments A and B contain detailed balance sheet and income statement (Statement of Operations) information for the December financial report, for Board review and discussion. An analysis of that information as it relates to revenues and expenses, and current month disbursements to vendors and employees, is provided herein.

Revenues for December are performing Revenues through 12/31/19 approximately 14% over projections of budgeted estimates for Fiscal Year 2019-20. These estimates encapsulate all activity throughout the Tip Fees Authority, although finances will be influenced by future payouts for fees passed through to Diversion Member Agencies, revenue shares for salvaged materials sales, and the delayed receipt of grant CWP & Base revenues for grant-based projects. Rates

Staff continue to monitor diversion programs in Other terms of not only cost, but self-sustaining viability. At present, all divisions are operating above budgeted estimates, and are fully funded from self-sustaining revenues or fees passed-through from Self-Haul, Franchise, and Satellite Facility tipping fees.

Based on the above factors, and to facilitate long-term planning – relative to the Fiscal Year – for the Board and staff in decision making, the following estimation of growth for total revenues is provided below. The following graph tracks current, aggregate, monthly revenue activity against an annual trend line, generated from the previous five years of financial information. The trend line provides a reasonable estimation of how revenues are expected to be collected throughout the year. Revenue: Real Year-to-Date Earnings vs. Five-Year Trend $1,900,000 $1,700,000 $1,500,000

$1,300,000 FY 2019-20 $1,100,000 Poly. (5yr Avg) $900,000 $700,000 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June $500,000

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Ongoing disposal activities, a strong construction season, and a continued level of high participation in CRV reimbursement through the Authority’s Eureka Recycling Center are keeping revenue above estimates, resulting in a robust revenue profile for the Fiscal Year.

Expenses for December are also above Expenses through 12/31/19 budget projections. Total Expenses are approximately 6% above budgeted estimates, but do not yet include some one-time expenses related to depreciation Operations of Authority assets, and quarterly Payroll payments to Member Agencies for pass- Indirect through and recycling fees. Additionally, increases above budgeted estimates are Capital mostly related to increased solid waste Non-Cash tonnage disposed, which is offset by a similar increase in revenue as referenced above.

Payroll expenses are in line with projected budget estimates. Current staffing levels have been stable, leading to better planning for future expenditures, especially in preparation for the results of the salary survey and requirements related to minimum wage increases. Additionally, thanks to numerous safety enhancements, the Authority is seeing a steady decline in its worker’s compensation costs.

To provide long-term planning – relative to the Fiscal Year – the Board and staff in decision making, the following estimation of growth for total expenditures is provided below. The following graph tracks current, aggregate, monthly expense activity against an annual trend line, generated from the previous five years of financial information. The trend line provides a reasonable estimation of how expenses are expected influence the Authority’s financials throughout the year, and consider the effects of those one-time, lump sum payments for certain recurring annual costs. Expenses: Real Year-to-Date Expenditures vs. Five-Year Trend $1,250,000

$1,150,000

$1,050,000 FY2019-20 $950,000 Poly. (5yr Avg)

$850,000

$750,000

$650,000 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

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Staff continues to maintain a strong control on ongoing expenses, and the change in solid waste transportation and disposal contractors resulted in minimal impact on ongoing expenses in operations. Overall, staff is pleased to report that expenditure activity is settling into an expected rhythm, with anticipated expenditures for items outlined in the Capital Improvement Plan, or related to long-term debt payments, covered by reserve funds and sufficient operating revenues.

Monthly disbursements to Authority vendors and employees are summarized in Attachment D for the month of December. These disbursements are comprised primarily of day-to-day costs, representing approximately $348,000 in transportation and disposal costs and approximately $94,000 in CRV reimbursement payments to the general public. The budgeted $15,000 in funding to support the County RMDZ was paid this month as well.

Division Activities (as Summarized in Attachment C): Activity for all divisions is trending slightly higher than the previous fiscal year, fitting in line with recent trends throughout the past two fiscal years and assisted by alternating weather patterns (dry stretches leading to increased construction work, early spring cleaning, etc.; and wet stretches leading to increased green waste production). Staff notes that the increase in Hazardous Waste revenue compared to the previous year is due to a slight increase in fees collected through the solid waste tipping fee due the split of hazardous waste costs into a pass- through and a base fee. The significant increase in traffic is related to more open hours, though staff is seeing a fairly steady influx of material – meaning less material is being dropped off per trip.

Attachments: A) Authority Balance Statement, December 2019 B) Authority Statement of Operations, December 2019 C) Activity Report, December 2019 D) Cash Disbursements, December 2019

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Attachment A Humboldt Waste Management Authority Statement of Net Position For the Six Months Ending 12/31/2019

12/31/2019 6/30/2019 ASSETS AND DEFERRED OUTFLOWS

Current Assets: Cash and Investments $4,381,114 $4,671,245 Accounts Receivable: Customer (Net of Doubtful Accounts) 779,742 1,048,179 Grants 9,377 62,454 Deposits and Prepaid Expenses 111,964 134,971 Total Current Assets 5,282,197 5,916,849 Noncurrent Assets: Capital Assets: Property, Plant and Equipment, Net 4,810,015 4,531,624 Waste Authority Contract 221,171 221,171 Total Noncurrent Assets 5,031,186 4,752,795 Total Assets 10,313,383 10,669,644 Deferred Outflows: Pension Plan 353,026 353,026 Total Assets and Deferred Outflows 10,666,409 11,022,670

LIABILITIES, DEFERRED INFLOWS AND NET POSITION(DEFICIT)

Current Liabilities Accounts Payable and Accrued Liabilities 455,275 747,215 Accrued Payroll 155,447 149,327 Customer Deposits 2,350 2,869 Total Current Liabilities 613,072 899,411 Noncurrent Liabilities Long-term Debt Due After One Year 2,078,626 2,486,471 Net Pension Liability 586,002 586,002 Estimated Closure and Post-Closure Care Costs 9,541,001 9,541,001 Total Noncurrent Liabilities 12,205,629 12,613,474 Total Liabilities 12,818,701 13,512,885 Deferred Inflows: Pension Plan 43,190 43,190 Deferred Inflows: Unavailable Revenue 67,242 65,958 Total Liabilities and Deferred Inflows 12,929,133 13,622,033

NET POSITION (DEFICIT) Net Investment in Capital Assets 2,952,560 2,266,324 Unrestricted (Deficit) (5,551,922) (5,772,678) Total Net Position 336,638 906,991 Total Liabilities, Deferred Inflows and Net Position 10,666,409 11,022,670

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Humboldt Waste Management Authority Statement of Revenues, Expenses, and Changes in Net Position For the Six Months Ending 12/31/2019

YTD Actual Budget $ Var % Var OPERATING REVENUES: Gross Waste Management Fees 3,906,637 3,812,332 94,305 2.47% Less: Pass-Through Fees 185,379 658,556 (473,177) (71.85%) Net Waste Management Fees 3,721,258 3,153,776 567,482 17.99% Green Waste Fees 176,500 213,630 (37,130) (17.38%) Other Fees and Charges 1,019,928 897,133 122,795 13.69% Other Operating Revenues 988,925 914,289 74,636 8.16% Total Operating Revenues 5,906,611 5,178,828 727,783 14.05%

OPERATING EXPENSES: Operations and Maintenance 3,964,510 3,058,142 906,368 29.64% Administrative and General 971,619 1,481,546 (509,927) (34.42%) Professional Services 79,162 37,125 42,037 113.23% Depreciation and Amortization 210,279 (210,279) (100%) Closure-related Expenses 207 (207) (100%) Other Expenses 514,401 434,411 79,990 18.41% Total Operating Expenses 5,529,692 5,221,710 307,982 5.9% Operating Income (Loss) 376,919 (42,882) 419,801 (978.97%)

NONOPERATING REVENUES (EXPENSES): Interest Income 60 60 - Rental Income (Net of Expenses) 62,180 62,310 (130) (.21%) Grant Revenue (23,530) (294) (23,236) 7903.4% Grant Expense (21,299) (609) (20,690) 3397.37% Interest Expense (22,119) (19,173) (2,946) 15.37% Total Nonoperating Revenues (Expens… (4,708) 42,234 (46,942) (111.15%) Change in Net Position 372,211 (648) 372,859 (57539.97%)

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Attachment C Activity Report July 1, 2019 - December 31, 2019

Waste Tonnage Tonnage Revenue

Hawthorne Year to Date Prior YTD % of Prior Year to Date Prior YTD % of Prior

Franchise 20,190 22,107 91.3% $2,607,735 $2,850,789 91.5% Self Haul 10,834 10,787 100.4% $1,699,275 $1,686,665 100.7%

Subtotal 31,024 32,894 94.3% $4,307,010 $4,537,454 94.9%

Humboldt Sanitation 5,893 2,764 213.2% $580,824 $272,464 213.2% ERD 2,703 2,486 108.8% $266,456 $245,015 108.8%

TOTAL. 39,619 38,144 103.9% $5,154,290 $5,054,934 102.0%

Greenwaste 2,262 2,300 98.4% $163,666 $170,067 96.2%

Household Hazardous Waste Customers Revenue

Year to Date Prior YTD % of Prior Year to Date Prior YTD % of Prior

Commercial 251 305 82.3%$ 26,961.53 $ 17,580.40 153.4% Residential 3,596 1,947 184.7% $ 3,157.35 $ 3,046.11 103.7% Fortuna Residential 0 0 $ - $ - Revenue from Countywide Fee $ 309,427.04 $ 257,174.15 120.3%

TOTAL. 3,847 2,252 170.8% $339,546 $277,801 122.2%

Average Daily Average Daily Traffic Count Count YTD Exceptions Count Prior YTD Exceptions % of Prior

July 413 None 353 None 117.0% August 306 None 344 None 89.0% September 385 None 342 None 112.6% October 368 None 324 None 113.6% November 326 None 324 None 100.6% December 334 None 303 None 110.2% January 326 None 0.0% February 277 None 0.0% March 320 None 0.0% April 326 None 0.0% May 335 None 0.0% June 308 None 0.0%

Year-to-Date Average 355 332 107.1%

March 12, 2020 Printed on Recycled Paper Attachment D Page 12 of 162 December 2019 Disbursements

Paid To Amount Paid To Amount Access Humboldt $101.16 Mendes Supply Company $165.38 Advanced Security Systems $181.50 Mission Uniform & Linen $1,674.10 Advantage Financial Services $237.62 Munnell & Sherrill, Inc $526.01 Airgas USA LLC West Division $1,056.63 Nancy Diamond $2,349.56 Asbury Environmental Services $160.00 Network Management Services $5,063.77 AT & T $185.21 Nilsen Feed & Grain Company $161.90 B & B Portable Toilet Company $5,743.44 North Coast Laboratories, Ltd $726.00 Bettendorf Enterprises, Inc. $9,730.00 Northern California Gloves $1,031.72 Bicoastal Media Group $1,200.00 Northern California Safety Con $120.00 Blue Shield of California $39,713.63 Oak Harbor Freight Lines, Inc. $2,201.84 Cardmember Service $9,565.08 P G & E $5,729.10 Citi Cards $716.07 Pacific Motorsports $638.47 City of Eureka $6,931.94 Pacific Paper Co. $2,374.87 City of Modesto $25.00 Pape Machinery $1,458.34 Columbus US, Inc. $2,138.50 Pierson Building Center $268.88 County of Humboldt, Economic D $15,000.00 Pro Pacific Auto Repair, Inc. $217.02 CRV Cash $94,414.00 RCAA ‐ Beautiful Peninsula $103.00 Crystal Springs Bottled Water $114.00 Recology Humboldt County $225.00 DOWNEY BRAND ATTORNEYS LLP $1,728.00 Rogers Machinery Company, Inc. $142.16 Dry Creek Landfill, Inc $319,939.90 SCS Field Services $250.00 Eureka Humboldt Fire Extinguis $125.00 SETCO $759.50 Financial Pacific Leasing $11,940.12 Sharps Solutions LLC $1,140.00 Freon Free Inc $859.20 SHN Consulting Engineers and G $172.50 HOLT OF CALIFORNIA $286.59 Specialty Supply Company $31.20 Hooven & Company, Inc $10,867.46 Staples Credit Plan $14.95 Humana Insurance Co $2,805.44 Suddenlink $207.45 Humboldt Community Services Di $29.48 Thrifty Supply Company $139.95 Humboldt Fasteners $620.20 Times Standard $3,755.05 HUMBOLDT SANITATION CO. $8,925.84 Toyota Financial Services $333.08 I‐5 Tire, Inc $533.00 Uline Shipping Supply $4,924.73 Industrial Electric Arcata, In $471.60 UNUM Life Insurance Company of $282.75 James L Able Forestry Consulta $16,848.96 US Bank Office Equipment Finan $367.25 Koff & Associates $10,008.00 Valley Pacific Petroleum $5,940.97 L&M Renner, Inc $1,768.46 Verizon Wireless $480.82 Leon's Car Care Center $81.73 Western Chain Saw $48.26 Lost Coast Communications, Inc $600.00 Mad River Hardwood Co., Inc $24,837.41 Total Personnel Costs $192,343.41 Mad River Union $601.00 MAPLESERVICE $1,112.50 Total Disbursements $602,203.67

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: March 12, 2020

FROM: Tyler Egerer, Director of Finance and Administrative Services

SUBJECT: Item 2c) Receive January 2020 Financial Reports

RECOMMENDED ACTION: Review and Approve Review and Approve January 2020 Financial Reports.

Attachment B, Statement of Operations for Period Ending 01/31/2020 is presented in summary format; detailed analysis of each division of the Authority is available by request for those interested in division performance. Highlights of Fiscal Year 2019-20 activity to date include:

a) Consistently strong activity through all divisions is resulting in increased revenue and expenses over initial budget estimates, as additional tonnage produces not only more revenue, but more disposal expenses. b) One-time expenses and non-cash expenses related to prepaid expenses and depreciation have been input following the approved mid-year budget adjustments. Overall, this results in a much more accurate picture of the Authority’s activity throughout the fiscal year. Revenue and expenses continue to be over budget estimates; however revenues continue to outperform, resulting in a stronger overall position than originally estimated.

HWMA Operating Fund: $1,975,517.35 HWMA Undesignated, Capital, Personnel, and Stabilization Funds: $2,061,670.00

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Authority Financials: Attachments A and B contain detailed balance sheet and income statement (Statement of Operations) information for the January financial report, for Board review and discussion. An analysis of that information as it relates to revenues and expenses, and current month disbursements to vendors and employees, is provided herein.

Revenues for January are performing Revenues through 01/31/20 approximately 9% over projections of budgeted estimates for Fiscal Year 2019-20. These estimates encapsulate all activity throughout the Tip Fees Authority, although finances will be influenced by future payouts for fees passed through to Diversion Member Agencies, revenue shares for salvaged materials sales, and the delayed receipt of grant CWP & Base revenues for grant-based projects. Rates Staff continue to monitor diversion programs in Other terms of not only cost, but self-sustaining viability. At present, all divisions are operating above budgeted estimates, and are fully funded from self-sustaining revenues or fees passed-through from Self-Haul, Franchise, and Satellite Facility tipping fees.

$1,300,000 FY 2019-20 $1,100,000 Poly. (5yr Avg) $900,000 $700,000 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June $500,000

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Expenses for January are also above Expenses through 01/31/20 budget projections. Total Expenses are approximately 8% above budgeted estimates, but do not yet include some one-time expenses related to depreciation Operations of Authority assets, and quarterly Payroll payments to Member Agencies for pass- Indirect through and recycling fees. Additionally, increases above budgeted estimates are Capital mostly related to increased solid waste Non-Cash tonnage disposed, which is offset by a similar increase in revenue as referenced above.

$1,150,000

$1,050,000 FY2019-20 $950,000 Poly. (5yr Avg)

$850,000

$750,000

$650,000 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

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Monthly disbursements to Authority vendors and employees are summarized in Attachment D for the month of January. These disbursements are comprised primarily of day-to-day costs, representing approximately $392,000 in transportation and disposal costs and approximately $103,000 in CRV reimbursement payments to the general public. The landfill acquired a new compressor – a direct upgrade to take advantage of training received by employees on the previous equipment – for approximately $24,000, as part of ongoing upgrades to operating equipment at the Landfill.

Attachments: A) Authority Balance Statement, January 2020 B) Authority Statement of Operations, January 2020 C) Activity Report, January 2020 D) Cash Disbursements, January 2020

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Attachment A Humboldt Waste Management Authority Statement of Net Position For the Seven Months Ending 1/31/2020

1/31/2020 6/30/2019 ASSETS AND DEFERRED OUTFLOWS

Current Assets: Cash and Investments $4,475,939 $4,671,245 Accounts Receivable: Customer (Net of Doubtful Accounts) 752,867 1,048,179 Grants 9,377 62,454 Deposits and Prepaid Expenses 58,056 134,971 Total Current Assets 5,296,239 5,916,849 Noncurrent Assets: Capital Assets: Property, Plant and Equipment, Net 4,595,198 4,531,624 Waste Authority Contract 221,171 221,171 Total Noncurrent Assets 4,816,369 4,752,795 Total Assets 10,112,608 10,669,644 Deferred Outflows: Pension Plan 353,026 353,026 Total Assets and Deferred Outflows 10,465,634 11,022,670

LIABILITIES, DEFERRED INFLOWS AND NET POSITION(DEFICIT)

Current Liabilities Accounts Payable and Accrued Liabilities 630,628 747,215 Accrued Payroll 159,176 149,327 Customer Deposits 22,757 2,869 Total Current Liabilities 812,561 899,411 Noncurrent Liabilities Long-term Debt Due After One Year 2,078,626 2,486,471 Net Pension Liability 586,002 586,002 Estimated Closure and Post-Closure Care Costs 9,541,001 9,541,001 Total Noncurrent Liabilities 12,205,629 12,613,474 Total Liabilities 13,018,190 13,512,885 Deferred Inflows: Pension Plan 43,190 43,190 Deferred Inflows: Unavailable Revenue 67,242 65,958 Total Liabilities and Deferred Inflows 13,128,622 13,622,033

NET POSITION (DEFICIT) Net Investment in Capital Assets 2,737,743 2,266,324 Unrestricted (Deficit) (5,337,106) (5,772,678) Total Net Position (63,625) 906,991 Total Liabilities, Deferred Inflows and Net Position 10,465,634 11,022,670

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Humboldt Waste Management Authority Statement of Revenues, Expenses, and Changes in Net Position For the Seven Months Ending 1/31/2020

YTD Actual Budget $ Var % Var OPERATING REVENUES: Gross Waste Management Fees 4,455,473 4,449,180 6,293 .14% Less: Pass-Through Fees 359,056 768,313 (409,257) (53.27%) Net Waste Management Fees 4,096,417 3,680,867 415,550 11.29% Green Waste Fees 199,045 249,235 (50,190) (20.14%) Other Fees and Charges 1,222,716 1,046,655 176,061 16.82% Other Operating Revenues 1,096,059 1,067,039 29,020 2.72% Total Operating Revenues 6,614,237 6,043,796 570,441 9.44%

OPERATING EXPENSES: Operations and Maintenance 4,623,560 3,567,765 1,055,795 29.59% Administrative and General 1,100,105 1,728,067 (627,962) (36.34%) Professional Services 78,820 43,313 35,507 81.98% Depreciation and Amortization 237,287 245,326 (8,039) (3.28%) Closure-related Expenses 207 (207) (100%) Other Expenses 553,519 507,790 45,729 9.01% Total Operating Expenses 6,593,291 6,092,468 500,823 8.22% Operating Income (Loss) 20,946 (48,672) 69,618 (143.04%)

NONOPERATING REVENUES (EXPENSES): Interest Income 70 70 - Rental Income (Net of Expenses) 71,701 72,695 (994) (1.37%) Grant Revenue (23,530) (294) (23,236) 7903.4% Grant Expense (22,079) (609) (21,470) 3525.45% Interest Expense (22,385) (22,369) (16) .07% Total Nonoperating Revenues (Expens… 3,777 49,423 (45,646) (92.36%) Change in Net Position 24,723 751 23,972 3192.01%

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Attachment C Activity Report July 1, 2019 - January 31, 2020

Waste Tonnage Tonnage Revenue

Hawthorne Year to Date Prior YTD % of Prior Year to Date Prior YTD % of Prior

Franchise 24,056 26,261 91.6% $3,106,531 $3,386,770 91.7% Self Haul 12,846 12,607 101.9% $2,012,826 $1,970,278 102.2%

Subtotal 36,902 38,869 94.9% $5,119,357 $5,357,048 95.6%

Humboldt Sanitation 6,816 3,251 209.6% $671,873 $320,476 209.6% ERD 3,107 2,970 104.6% $306,246 $292,723 104.6%

TOTAL. 46,825 45,090 103.8% $6,097,476 $5,970,247 102.1%

Greenwaste 2,570 2,638 97.5% $185,367 $193,846 95.6%

Household Hazardous Waste Customers Revenue

Year to Date Prior YTD % of Prior Year to Date Prior YTD % of Prior

Commercial 281 348 80.7%$ 29,232.58 $ 22,700.30 128.8% Residential 4,373 2,193 199.4% $ 3,327.85 $ 3,212.11 103.6% Fortuna Residential 0 0 $ - $ - Revenue from Countywide Fee $ 365,705.66 $ 303,919.25 120.3%

TOTAL. 4,654 2,541 183.2% $398,266 $329,832 120.7%

Average Daily Average Daily Traffic Count Count YTD Exceptions Count Prior YTD Exceptions % of Prior

July 413 None 353 None 117.0% August 306 None 344 None 89.0% September 385 None 342 None 112.6% October 368 None 324 None 113.6% November 326 None 324 None 100.6% December 334 None 303 None 110.2% January 344 None 326 None 105.5% February 277 None 0.0% March 320 None 0.0% April 326 None 0.0% May 335 None 0.0% June 308 None 0.0%

Year-to-Date Average 354 332 106.6%

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Paid To Amount Paid To Amount

Advanced Display & Signs $ 196.28 Mendes Supply Company $ 283.86 Advanced Security Systems $ 578.00 Mercury Disposal Systems, Inc $ 67.00 Advantage Financial Services $ 237.62 Mission Uniform & Linen $ 1,529.58 Airgas USA LLC West Division $ 215.81 Nancy Diamond $ 966.00 APP IMPRINTS,LLC $ 950.46 NEAC $ 40.00 AT & T $ 183.17 Network Management Services $ 3,878.75 ATA Law Group $ 7,500.00 New Directions Environmental M $ 1,125.00 B & B Portable Toilet Company $ 4,786.60 North Coast Journal $ 288.60 Bank Fees $ 5,721.11 North Coast Laboratories, Ltd $ 3,715.00 Bettendorf Enterprises, Inc. $ 4,775.00 Northern California Gloves $ 1,648.66 Bicoastal Media Group $ 600.00 Northern California Safety Con $ 320.00 Blue Shield of California $ 32,247.08 Oak Harbor Freight Lines, Inc. $ 1,100.92 California Product Stewardship $ 2,250.00 Owsley Electric $ 5,290.68 Cardmember Service $ 6,039.77 P G & E $ 4,366.01 Carolina Software $ 300.00 Pacific Paper Co. $ 183.89 Cascadia Consulting Group $ 7,337.50 Pacific Watershed Assoc. $ 2,045.10 CITY OF EUREKA $ 520.00 Peterson CAT $ 831.66 City of Eureka $ 2,450.00 Picky Picky Picky Store $ 1,994.61 CRV Cash $ 102,827.00 Pierson Building Center $ 513.32 Crystal Springs Bottled Water $ 98.00 Recology Humboldt County $ 225.00 DOWNEY BRAND ATTORNEYS LLP $ 156.00 Rogers Machinery Company, Inc. $ 24,819.50 Dry Creek Landfill, Inc $ 339,818.36 Scrapper's Edge $ 73.68 Eel River Trans & Salvage $ 20.00 Security Lock & Alarm $ 630.71 Eureka Humboldt Fire Extinguis $ 370.32 SETCO $ 759.50 Farm Store $ 130.09 Sharps Solutions LLC $ 665.00 Financial Pacific Leasing $ 11,940.12 Suddenlink $ 207.45 Freon Free Inc $ 383.50 Thumper's Mechanical Service I $ 7,230.00 Golder Associates $ 8,926.97 Toyota Financial Services $ 333.08 HOLT OF CALIFORNIA $ 2,582.27 United Rentals Inc. $ 609.42 Humana Insurance Co $ 2,295.88 UNUM Life Insurance Company of $ 217.50 Humboldt Community Services Di $ 33.40 US Bank Office Equipment Finan $ 389.13 Humboldt Recycling $ 7,456.06 Valley Pacific Petroleum $ 3,374.11 HUMBOLDT SANITATION CO. $ 6,696.72 Verizon Wireless $ 410.82 I‐5 Tire, Inc $ 717.60 Vulcan Incorporated $ 3,771.82 Industrial Electric Arcata, In $ 386.05 World Class Emvronmental Resou $ 2,427.00 Koff & Associates $ 3,058.00 Lawrence & Associates $ 14,342.25 Lost Coast Communications, Inc $ 600.00 Total Payroll Expenses $ 144,103.79 Mad River Hardwood Co., Inc $ 28,202.51 Mad River Union $ 202.00 Total Disbursements $ 828,567.65

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: January 3, 2020 For Board Meeting: March 12, 2020

FROM: Jill K. Duffy, Executive Director

SUBJECT: Item 2d) Approve Amendment Number 1 to Agreement with Recology Eel River to extend the existing Loading Agreement for 6-months, ending October 31, 2020.

RECOMMENDED ACTION: Voice vote. Approve 6-Month Amendment Extension with Recology Eel River ending October 31, 2020.

DISCUSSION: At the March 8, 2018 meeting, the Board approved a 3-year Agreement with Recology Eel River, ending March 31, 2020 to provide Loading Services of Member Agency Franchise Solid Wastes at the Fortuna Transfer Station into HWMA’s designated transportation hauler’s trailers.

Staff proposes that the term of the agreement be extended for 6 months and terminate October 31, 2020.

This draft amendment has been reviewed and approved as to form by the Authority’s Legal Counsel, and Linda Wise, General Manager of Recology Eel River and Recology Inc. Legal Counsel. Additionally, the draft amendment has been reviewed by Garry Penning of Dry Creek Landfill as the Transportation and Landfill Disposal contractor.

Background The proposed amendment with Recology Eel River will enable continuation of trailer deliveries and loading of member agency material at the Fortuna transfer facility, into HWMA’s contract trailers. Recology loads Permitted Waste into an individual Trailer to the allowable weight capacity. Costs associated with loading trailers are already embedded in the franchise rates paid by member agency curbside customers.

The agreement addresses the practice of ‘commingling’ of member and non-member agency material, specifically by acknowledging that commingling may occur on the Fortuna transfer station’s Tip Floor. Approximately 15 years ago, an ‘Allocation Percentage Formula’ was used to establish jurisdiction of origin, and a tonnage audit was conducted in 2016. Information was reviewed and determined, at that time, that no modifications were necessary. With the new ownership and improved record keeping, Recology Eel River requests an agreement extension to review tonnage data with member agencies and Fortuna for possible adjustment to the Allocation Percentage Formula. If revisions to the Allocation Percentage Formula are necessary, changes

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will be approved by Recology Eel River and the respective jurisdictions holding the franchise agreement.

FISCAL IMPACT: These expenditures have been included in the proposed budget for FY 2019-20.

ALTERNATIVES: Board discretion

ATTACHMENTS: 1. Draft Amendment Number 1 between HWMA and Recology Eel River

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: March 12, 2020

FROM: Tyler Egerer, Director of Finance and Administrative Services

SUBJECT: Item 2e) Change of Merchant Services Provider for HWMA Credit Card Transactions

RECOMMENDED ACTION: Review and Approve Receive Report on Proposed Change of Merchant Services Provider from Eureka Payments (Redwood Merchant Services) to AxiaMed and Authorize Executive Director to enter into Agreement for Services.

DISCUSSION: Staff recommends that the Board approve change of its merchant service (credit card) provider from Eureka Payments to AxiaMed. AxiaMed services are able to integrate into the Authority’s new solid waste management platform, Compuweigh, to implement more efficient and software- backed credit card solutions for its customers. This change will result in minimal savings on card processing expenses, but the increase in efficiency of transactions and integration with new software will improve customer experience and overall transaction time through the Authority’s Tip Floor and Recycling Scalehouses.

Background In March 2012, the Authority moved from its previous – and first – merchant services provider, PowerPay, to Eureka Payments. PowerPay provided integrated services with the Authority’s previous solid waste platform, WasteWORKS, however over time the cost to accept credit cards through PowerPay had increased significantly and greater than originally anticipated. With the decision to use Eureka Payments services, the Authority was able to implement utility payment options allowing some of our larger customers to pay via credit card, without incurring significant processing fees.

The agreement with Westamerica Bank’s “Eureka Payments” has worked somewhat well through the last eight years, with costs remaining reasonably flat, providing business to a regional organization. Over time, the Authority’s equipment has fallen behind industry standards, and staff has had difficulty working with Eureka Payments to affect the appropriate upgrades.

The recommended move to AxiaMed comes via capability of the AxiaMed processing service being fully integrated support through Compuweigh. Scale staff will process credit cards directly through the software instead of utilizing an ancillary secondary, web-based processing software, which has had implementation issues due to several bugs and inefficient operating parameters.

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Paradigm Software, the software developers of Compuweigh, offer two separate merchant services firms for credit processing services. Discussions with Paradigm representatives during the June 2019 installation, combined with online references to the services provided by AxiaMed, and discussions between Authority and AxiaMed staff indicate that the AxiaMed service will be a better fit for the Authority. A basic review of the services provided by both AxiaMed and Elavon, in addition to aggregated review of complaints levied against each company in online review websites indicates that Elavon is less suited to smaller businesses. Rates appear to be comparable, and therefore where savings would be nearly identical financially, staff recommends the service with a better reputation for responsiveness.

This agreement will finalize the changes proposed under the new Compuweigh waste management software platform, allow both Scalehouses to implement identical payment solutions with identical training requirements, and improve efficiency in customer transactions, transaction accuracy, and integration with the Authority’s accounting software.

FISCAL IMPACT: The Authority currently budgets for approximately $30,000 in credit card processing fees per each Fiscal Year (July to June). An original proposal from AxiaMed indicates a slight savings of approximately $1,200 per year. Processing efficiencies for the Main Scalehouse and Recycling Scalehouse will contribute to slight savings through customer management and paper printing costs, as pertinent credit card information will be stored digitally in the Compuweigh platform.

CONTRACT EVALUATION: Legal Counsel has reviewed the attached terms and conditions.

ALTERNATIVES: The Board could

1. Remain with Eureka Payments. This keeps the service semi-local and would require more direct interaction on the part of Authority staff to ensure systems are being updated, while not providing integration efficiencies with Compuweigh; or

ATTACHMENTS: 1) AxiaMed Merchant Services Account Service Terms and Conditions (Account Agreement) 2) AxiaMed Payment Fusion Platform Service Terms and Conditions (Card processing software and hardware agreement). 3) Proposed Monthly Savings as of 11/19/2019

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TERMS AND CONDITIONS

As provided by the Merchant Application, Merchant, Axia Technologies (“ISO”) and Merrick Bank Corporation (“Bank”) have agreed to be bound by these terms and conditions. Bank and ISO are collectively referred to herein as the “Provider” and, subject to the requirements of the Network Rules, ISO and Bank allocate the duties and obligations allocated to Provider as they deem appropriate in their sole discretion and may jointly or individually assert or exercise the rights or remedies provided to Provider hereunder. Bank, ISO and Merchant agree as follows:

ARTICLE I – DEFINITIONS In addition to terms otherwise defined in this Agreement, capitalized terms shall have the meaning ascribed to them in this Article I. 1.01 “Account” means a commercial checking or demand deposit account maintained by Merchant for the crediting of collected funds and the debiting of fees and charges under this Agreement. 1.02 “ACH” means the Automated Clearing House paperless entry system controlled by the Federal Reserve Board. 1.03 “Agreement” means the Merchant Application, the Guaranty and these Terms and Conditions, and any supplementary documents referenced herein, and schedules, exhibits and amendments to the foregoing. 1.04 “American Express” means the Cards bearing the Marks of, and Card Network operated by, American Express Travel Related Services Company, Inc. or its affiliates. 1.05 “Authorization” means a computerized function or a direct phone call to a designated number to examine individual Transactions to obtain approval from the Card Issuer to charge the Card for the amount of the sale in accordance with the terms of this Agreement and the Network Rules. 1.06 “Bank” has the meaning set forth on the Merchant Application. 1.07 “Card” means (i) a valid credit card or debit card in the form issued under license from a Card Network. (“Bank Card”); or (ii) any other valid credit card or debit card or other payment device approved by Bank and accepted by Merchant. 1.08 “Card Issuer” means the financial institution or company which has provided a Card to a Cardholder. 1.09 “Card Network” means Visa U.S.A., Inc., MasterCard International, Inc., American Express Travel Related Services Company, Inc., DFS Services LLC (the owner of Discover) and their affiliates, or any other payment networks approved by Bank that provide Cards accepted by Merchant. 1.10 “Card Not Present” or “CNP” means that an Imprint of the Card is not obtained at the point-of-sale. 1.11 “Cardholder” (sometimes referred to as “Card Member” in certain Card Network materials) shall mean any person authorized to use the Cards or the accounts established in connection with the Cards. 1.12 “Cardholder Information” means any non-public, sensitive information about a Cardholder or related to a Card, including, but not limited to, any combination of Cardholder name plus the Cardholder’s social security number, driver’s license or other identification number, or credit or debit card number, or other bank account number. 1.13 “Chargeback” means the procedure by which a Transaction (or disputed portion thereof) is returned to Provider by a Card Issuer for any reason, including, but not limited to, cases where such item does not comply with the applicable Network Rules. 1.14 “Cash Over” means a Transaction using a Discover Card whereby the Cardholder elects to receive additional cash in excess of the purchase price, all as provided by Network Rules of Discover. 1.15 “Credit Voucher” means a document executed by a Merchant evidencing any refund or price adjustment relating to Cards to be credited to a Cardholder account. 1.16 “Discover Card” means a Card bearing the Discover Marks and accepted as part of the DFS Services Network. 1.17 “Guarantor” has the meaning set forth on the Merchant Application. 1.18 “Guaranty” has the meaning set forth on the Merchant Application. 1.19 “Imprint” means (i) an impression on a Transaction Record manually obtained from a Card through the use of an imprinter, or (ii) the electronic equivalent obtained by swiping a Card through a terminal and electronically capturing Card data and printing a Transaction Record. 1.20 “ISO” has the meaning set forth on the Merchant Application 1.21 “Merchant” has the meaning set forth on the Merchant Application. 1.22 “Merchant Application” has the meaning set forth on the Merchant Application. 1.23 “Network Rules” means the rules, regulations, releases, interpretations and other requirements (whether contractual or otherwise) imposed or adopted by any Card Networks and related authorities, including without limitation, those of the PCI Security Standards Council, LLC and the National Automated Clearing House Association (including, with respect to EBT, the Quest Operating Rules and with respect to PIN debit cards, the rules, regulations, policies and procedures of the applicable debit network). 1.24 “Provider” as provided by the introductory paragraph to these Terms and Conditions, means ISO and Bank together. 1.25 “Transaction” means any sale of products or services, or credit for such, from a Merchant for which the Cardholder makes payment through the use of any Card and which is presented to Provider for collection. 1.26 “Transaction Record” means evidence of a purchase, rental or lease of goods or services by a Cardholder from, and other payments to, Merchant using a Card, including preauthorized orders and Recurring Transactions (unless the context requires otherwise), regardless of whether the form of such evidence is in paper or electronic form or otherwise. 1.27 “Voice Authorization” means a direct phone call to a designated number to obtain credit approval on a Transaction from the Card Issuer, whether by voice or voice-activated systems.

ARTICLE II - CARD ACCEPTANCE

2.01 Honoring Cards. Merchant will accept all valid Cards when properly presented by Cardholders in payment for goods or services, subject to applicable Network Rules requiring Merchant to elect whether it will accept credit only, debit only or both debit and credit cards. Merchant’s election is set forth in the Merchant Application. Except to the extent explicitly provided by the Network Rules, Merchant may not establish minimum or maximum amounts for Card sales as a condition for accepting any Card. Merchant may, subject to applicable Law and the Network Rules, (i) impose a surcharge, under certain conditions and with proper disclosure to a Cardholder who elects to use a Card in lieu of payment by cash, check or other method of payment, or (ii) offer cash discounts to Cardholders making payment by cash or check. Merchant shall not engage in any acceptance practice that discriminates against or discourages the use of a Card Network’s Cards in favor of any other Card Network’s Cards, or favor any particular Card Issuer over any other Card Issuers. Note, many states prohibit or limit cases where Merchant may surcharge a Cardholder or offer cash discounts and the Card Networks impose restrictions on surcharging and cash discounting. Therefore, Provider strongly recommends that Merchant carefully consider and comply with all applicable Law and the Network Rules before Merchant begins to surcharge Cardholders or offer any cash discount. Merchant may not engage in a Transaction (other than a mail, internet, telephone order, or preauthorized sale to the extent permitted under this Agreement) if (i) the person seeking to charge the purchase to his or her Card account does not present the Card to permit Merchant to compare the signature on the Card to the signature on the Transaction Record; or (ii) the Merchant does not obtain an Imprint or otherwise use the physical Card to complete the Transaction. 2.02 Advertising. Subject to the Network Rules, Merchant will prominently display the promotional materials provided by Provider in its place(s) of business. Merchant’s use of promotional materials and use of any trade name, trademark, service mark or logo type (collectively, the “Marks”) associated with a Card is limited to informing the public that the Card will be accepted at Merchant's place(s) of business. During the term of this Agreement, Merchant may use promotional materials and Marks pursuant to and in strict compliance with the terms of this Agreement and the Network Rules. Upon notification by any Card Network or Provider, or upon termination of this Agreement, Merchant shall discontinue the use of such Card Network’s Marks and return any inventory or promotional materials to Provider. Merchant may not use any promotional materials or Marks associated with the Card Network in any way which suggests or implies that a Card Network endorses any goods or services other than Card payment services. Merchant’s website, if any, must prominently display the name of the Merchant and the name that will appear on the Cardholder statement. 2.03 Card Acceptance. When accepting a Card, Merchant will follow the steps and guidelines set forth in the Network Rules or otherwise provided by Provider from time to time for accepting Cards and in particular, will: (a) determine in good faith and to the best of its ability that the Card is valid on its face; (b) obtain Authorization from the Card Issuer to charge the Cardholder's account; (c) comply with the additional terms set forth in in this Agreement with respect to Telephone Orders, Mail Orders, Internet, Preauthorized Orders and Installment Orders and with respect to any Card Not Present Transactions; (d) document the approved Transaction in accordance with this Agreement and the Network Rules; and (e) deliver a true and completed copy of the Transaction Record to the Cardholder at the time the goods are delivered or services performed or, if the Transaction Record is prepared by a point-of-sale terminal, at the time of the sale. Except to the extent otherwise provided for in this Agreement, each Transaction Record must contain the following information: (i) Merchant’s legal name and/or registered trade name, Merchant’s location, and the Merchant’s merchant identification number designated by the Provider; (ii) the truncated version of the Card number as provided in the Network Rules; (iii) a brief description of the goods or services involved in the Transaction; (iv) the selling price, together with applicable taxes, other charges or gratuities, and the total amount of the Transaction; (v) signature of the Cardholder or authorized user as described in this Agreement, date of the Transaction and the Transaction approval number; (vi) any additional requirements of the Card Networks that may be applicable to specific merchant or transaction types, as amended from time to time; and (vii) such additional information which may from time to time be required by Provider, the Card Networks, or Card Issuers. Merchant will not transmit a Transaction Record to Provider until such time as: (i) the Transaction is completed; (ii) the goods or services have been shipped or provided, except as set forth in this Agreement and the Network Rules; or (iii) a Cardholder consent is obtained for a Recurring Transaction in accordance with terms of this Agreement and the Network Rules. 2.04 Authorization. Merchant will obtain an Authorization for all Transactions using a means approved by Provider. If Merchant cannot, for any reason, obtain an electronic Authorization through the use of a terminal, Merchant will request a Voice Authorization from Provider's designated authorization center and will legibly print the authorization number on the Transaction Record. Merchant will not obtain or attempt to obtain Authorization from Provider's authorization center unless Merchant intends to submit to Provider a Transaction for the authorized amount if Authorization for the Transaction is given. Merchant may not divide a single Transaction between two or more Transaction Records on a single Card to avoid Authorization limits that may be set by the Card Issuer. Merchant acknowledges that an Authorization provides only that the Cardholder account has sufficient credit available to cover the amount of the current sale and that an Authorization is not a guarantee that the Transaction will not be subject to dispute or Chargeback and does not warranty the Cardholder’s identity. Merchant may not attempt to obtain an authorization by successively decreasing the sale amount. Provider may refuse to process any Transaction Record presented by Merchant: (a) unless a proper authorization number or approval code has been recorded on the Transaction Record; (b) if Provider determines that the Transaction Record is or is likely to become uncollectible from the Cardholder to which the Transaction would otherwise be charged; or (c) if Provider has reason to believe that the Transaction Record was prepared in violation of any provision of this Agreement or the Network Rules. Merchant will use, and may not circumvent, fraud identification tools requested by Provider, including address verification system processing and CVV2 processing, and acknowledges that the use of these tools may prevent Merchant from accepting certain Cards as payment. Merchant acknowledges that its use of fraud identification tools may not prevent fraudulent Card usage, and agrees that any fraudulent Transaction may ultimately result in a Chargeback, for which Merchant retains full liability under this Agreement. 2.05 Retention and Retrieval of Cards. Merchant will use its best efforts, by reasonable and peaceful means, to retain or recover a Card when receiving such instructions when making a request for Authorization or if Merchant has reasonable grounds to believe the Card is counterfeit, fraudulent or stolen. Merchant’s obligations under this section do not authorize a breach of the peace or any injury to persons or property, and Merchant will hold Provider harmless from any claim arising from any injury to person or property or other breach of the peace in connection with the retention or recovery of a Card. 2.06 Multiple Transaction Records; Partial Consideration. Merchant may not prepare more than one Transaction Record for a single sale or for a single item, but will include all goods and services purchased in a single Transaction in the total amount on a single Transaction Record except under the following circumstances: (a) for purchases in separate departments of a multiple department store; (b) for partial payment, installment payment, delayed delivery or an advance deposit; or (c) for delayed or amended charges governed by Network Rules for travel and entertainment merchants and related Transactions. 2.07 Telephone Orders, Mail Orders, Internet, Preauthorized Orders and Installment Orders. Unless Merchant has been approved by Provider to accept mail, internet or telephone orders, Merchant warrants that it is a walk-in trade business, located in a retail business place where the public moves in and out freely in order to purchase merchandise or obtain services. If Merchant is not approved by Provider for Card Not Present Transactions and Provider determines Merchant has accepted unapproved Card Transactions which are placed by telephone, generated through telephone solicitation, mail order, internet sales or other means that does not create a Transaction Record that bears the Card Imprint and Cardholder's signature, this Agreement may be immediately terminated by Provider and the value of all Transaction Records collected from the first day of processing may be charged back to Merchant and all funds therefrom held as provided in Article IV of this Agreement. Unless approved by Provider, this Agreement does not contemplate regular acceptance of Cards for sales accepted by mail, internet or telephone nor through preauthorized orders. Regardless of whether Merchant has been approved by Provider for Card Not Present Transactions, Merchant assumes all responsibility for identification of the Cardholder and the validity of the Card information for Card Not Present Transactions. Merchant agrees to identify separately any high-risk transactions Merchant submits. The high-risk transactions include, but are not limited to, any under Merchant Category Code 5967 – Direct Marketing – Inbound Telemarketing Merchants.

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2.08 Lodging and Vehicle Rental Transactions. For lodging and vehicle rental Transactions, Merchant must estimate and obtain Authorization for the amount of the Transaction based upon the Cardholder's intended length of stay or rental. Additional Authorization must be obtained and recorded for charges actually incurred in excess of the estimated amount. Regardless of the terms and conditions of any written preauthorization form, the Transaction Record amount for any lodging or vehicle rental Transaction must include only that portion of the sale, including any applicable taxes, evidencing a bona fide rental of real or personal property by Merchant to the Cardholder and may not include any consequential charges. Nothing contained herein is intended to restrict Merchant from enforcing the terms and conditions of its preauthorization form through means other than a Transaction. 2.09 Returns and Adjustments; Credit Vouchers. Merchant's policy for the exchange or return of goods sold and the adjustment for services rendered will be established and posted in accordance with the Network Rules of the applicable Card Networks. Merchant will disclose, if applicable, to a Cardholder before a Transaction is made, that if merchandise is returned: (a) no refund, or less than a full refund, will be given; (b) returned merchandise will only be exchanged for similar merchandise of comparable value; (c) only a credit toward purchases will be given; or (d) special conditions or circumstances apply to the sale (e.g., late delivery, delivery charges, or other non-credit terms). If Merchant does not make these disclosures, a full refund in the form of a credit to the Cardholder's Card account must be given. Disclosures must be made on all copies of Transaction Records or invoices in letters approximately 1/4" high in close proximity to the space provided for the Cardholder's signature or on an invoice issued at the time of the sale or on an invoice being presented for the Cardholder's signature. Any change in Merchant’s return or cancellation policy must be submitted in writing to Provider not less than fourteen (14) days prior to the change. Provider may refuse to process any Transaction Record made subject to a revised return or cancellation policy of which Provider has not been notified as required herein. 2.10 Cash Payments. Merchant may not receive any payments from a Cardholder for charges included in any Transaction resulting from the use of any Card nor receive any payment from a Cardholder to prepare and present a Transaction for the purpose of effecting a deposit to the Cardholder's account. 2.11 Cash Advances; Scrip Purchases. Unless otherwise approved in advance by Provider, Merchant may not deposit any Transaction for the purpose of obtaining or providing a cash advance either on Merchant's Card or the Card of any other party and may not accept any Card at a scrip terminal, and either action will be grounds for Provider’s immediate termination of this Agreement. 2.12 Duplicate Transactions. Merchant may not deposit duplicate Transactions. Provider may debit Merchant for any adjustments for duplicate Transactions and Merchant is liable for any Chargebacks resulting therefrom. 2.13 Deposit of Fraudulent Transactions. Merchant may not accept or deposit any fraudulent or unauthorized Transactions and may not under any circumstances present for processing or credit, directly or indirectly, a Transaction which originated with any other merchant or any other source other than Transactions arising from bona fide purchases from Merchant for the goods and services for which Merchant has been approved under this Agreement. If Merchant deposits any such fraudulent or unauthorized Transaction, Provider may: (a) immediately terminate this Agreement; (b) withhold funds and demand an escrow as provided in this Agreement; or (c) report Merchant to the applicable Card Network. Merchant’s employees’ and agents’ actions are chargeable to Merchant under this Agreement. 2.14 Collection of Pre-Existing Debt. Merchant may not prepare and present to Provider any Transaction representing the refinancing of an existing Cardholder obligation, including, but not limited to, obligations: (a) previously owed to Merchant; (b) arising from the dishonor of a Cardholder's personal check or relating to a Chargeback; or (c) representing the collection of any other pre-existing indebtedness, including collection of delinquent accounts on behalf of third parties. 2.15 Data Security/Personal Cardholder Information. Except as otherwise provided by the Network Rules, Merchant may not, as a condition of sale, impose a requirement on Cardholders to provide any personal information as a condition for honoring Cards unless such information is required to provide delivery of goods or services or Merchant has reason to believe the identity of the person presenting the Card may be different than that of the Cardholder. Merchant will not, under any circumstances, release, sell or otherwise disclose any Cardholder Information to any person other than Provider or the applicable Card Network, except as expressly authorized in writing by the Cardholder, or as required by Law or the Network Rules. (a) Safeguards. Merchant will maintain appropriate administrative, technical and physical safeguards for all Cardholder Information. These safeguards will (i) ensure the confidentiality of Cardholder Information; (ii) protect against any anticipated threats or hazards to the security or integrity of Cardholder Information; (iii) protect against unauthorized access to or use of Cardholder Information that could result in substantial harm or inconvenience to any Cardholder; and (iv) properly dispose of all Cardholder Information to ensure no unauthorized access to Cardholder Information. Merchant will maintain all such safeguards applicable to Merchant in accordance with applicable Law and the Network Rules. (b) Compliance with Card Network Rules. Merchant represents, warrants and covenants that it is and will remain throughout the Term of this Agreement in compliance with (i) Network Rules related to data security, data integrity and the safeguarding of Cardholder Information, including the Payment Card Industry Data Security Standard (“PCI”), Discover Information Security Compliance (“DISC”), MasterCard’s Site Data Protection Program (“SDP”), the American Express Data Security Requirements (“DSR”), and Visa’s Customer Information Security Program (“CISP”), in effect and as may be amended, supplemented or replaced from time to time, and (ii) any data security guidelines or operating guide that Provider may provide to Merchant, as the same may be amended, supplemented or replaced from time to time. Merchant will cause all of its service providers, subcontractors and agents to comply with PCI, SDP, DISC, DSR and CISP requirements and any data security guidelines or operating guide provided by Provider at all times. Merchant will report any non-compliance immediately to Provider. To accomplish the foregoing, Merchant will encrypt all debit, credit or stored value card numbers whether in storage, transport or backup and will not store data security codes on its systems, network or software. (c) Annual Certification. Merchant will provide an annual certification to Provider if requested by Provider (in a form acceptable to Provider) certifying compliance with the data security provisions of this Agreement, including compliance with applicable Card Network requirements such as PCI, SDP, DSR and CISP. Merchant will provide annual certifications for Merchant’s service providers, subcontractors and agents. Failure to provide compliance certification will result in a non-compliance fee of $18.95 per month. (d) Information Use Limitations. Merchant may not sell, disclose, or otherwise make Cardholder Information available, in whole or in part, in a manner not provided for in this Agreement, without Provider’s prior written consent. Merchant may, however, disclose Cardholder Information to its service providers, subcontractors and agents who have a need to know such information to provide the services described in this Agreement, provided that those individuals or entities have assumed confidentiality obligations in accordance with this Agreement, or when such disclosure is required by legal process or applicable Law, and Merchant and its relevant service provider, subcontractor, or agent have entered into a written agreement containing Merchant’s and such individual’s or entity’s agreement to the foregoing data security provisions, including compliance with the Network Rules. (e) Response to Unauthorized Access. Merchant will notify Provider within twenty four (24) hours after it becomes aware of any actual or potential breach in security resulting in an unauthorized access to Cardholder Information. Merchant will provide any assistance that Provider, Card Issuer, regulators, governmental authority or any Card Network deems necessary to contain and control the incident to prevent further unauthorized access to or use of Cardholder Information. Such assistance may include, but not be limited to, preserving records and other evidence and compiling information to enable Provider and the issuing bank(s) or the Card Network to investigate the incident and provide assistance and cooperation to: (a) file suspicious activity reports (as applicable); (b) notify their regulators (as applicable); and (c) notify the affected Cardholder (as required). Unless the unauthorized access was due to Provider’s acts or omissions, Merchant will bear the cost of notifying affected Cardholder. (f) Miscellaneous. Merchant may not make a claim against Provider or hold Provider liable for the acts or omissions of other merchants, service providers, Card Issuers, Card Network, financial institutions or others that do not have a written contractual relationship with Provider or over which Provider has no control. These provisions supplement, augment and are in addition to obligations of indemnification, audit, confidentiality and other similar provisions contained in this Agreement. This Section and each of its subsections will survive this Agreement’s termination. Merchant may not store in any system or in any manner discretionary Card read data including without limitation CVV2 data, PIN data, address verification data or any other information prohibited by Network Rules. Merchant agrees that Provider may disclose to any Card Network information regarding Merchant and Merchant’s Transactions to any Card Network, and that such Card Network may use such information to perform its responsibilities in connection with its duties as a Card Network, promote the Card Network, perform analytics and create reports, and for any other lawful business purposes, including commercial marketing communications purposes within the parameters of Card Network Card acceptance, and transactional or relationship communications from a Card Network. A Card Network may use the information about Merchant obtained in this Agreement at the time of setup to screen and/or monitor Merchant in connection with the Card Network marketing and administrative purposes. Merchant agrees it may receive messages from a Card Network, including important information about Card Network products, services, and resources available to its business. These messages may be sent to the mailing address, phone numbers, email addresses or fax numbers of Merchant. Merchant may be contacted at its wireless telephone number and the communications sent may include autodialed short message service (SMS or "text") messages or automated or prerecorded calls. Merchant agrees that it may be sent fax communications. 2.16 Compliance with Laws and Network Rules. Merchant will comply with and conduct its Card activities in accordance with all applicable local, state, and federal statutes, regulations, ordinances, rules and other binding law, as the same may be enacted or amended from time to time (collectively, “Laws”) as well as all Network Rules. Merchant may not: (a) accept Cardholder payments for previous Card charges incurred at the Merchant location; (b) require a Cardholder to complete a postcard or similar device that includes the Cardholder’s account number, card expiration date, signature, or any other card account data in plain view when mailed; (c) add any tax to transactions, unless applicable Law expressly requires that Merchant be permitted to impose a tax (any tax amount, if allowed, must be included in the transaction amount and not collected separately); (d) enter into interchange any Transaction Record for a Transaction that was previously the subject of a Chargeback to Provider and subsequently returned to Merchant, irrespective of Cardholder approval (Merchant may pursue payment from the Cardholder outside the Card Network system); (e) request or use an account number for any purpose other than as payment for its goods or services; (f) disburse funds in the form of travelers cheques, if the sole purpose is to allow the Cardholder to make a cash purchase of goods or services from Merchant; (g) disburse funds in the form of cash, unless: (i) Merchant is a lodging or cruise line merchant disbursing cash to a Cardholder, (ii) Merchant is dispensing funds in the form of travelers cheques, Cards, or foreign currency, or (iii) Merchant is participating in the Card Network cash back or Cash Over service; (h) accept a Card for manual cash disbursement; (i) accept a Card to collect or refinance existing debt that has been deemed uncollectible by Merchant providing the associated goods or services; (j) enter into a Transaction that represents collection of a dishonored check; or (k) accept a Card for an unlawful Internet gambling transaction. Merchant will pay all Card Network fines, fees, penalties and all other assessments or indebtedness levied by Card Network to Provider which are attributable, at Provider’s discretion, to Merchant’s Transaction processing or business. The Card Network may require that Bank limit Merchant’s participation in the applicable Card Network and/or terminate this Agreement. 2.17 Merchant's Business. Merchant will notify Provider immediately if it intends to (a) transfer or sell any substantial part of its total assets, or liquidate; (b) change the basic nature of its business, including selling any products or services not related to its current business; (c) change ownership or transfer control of its business; (d) enter into any joint venture, partnership or similar business arrangement whereby any person or entity not a party to this Agreement assumes any interest in Merchant or Merchant's business; (e) alter in any way Merchant's approved monthly volume, average, or maximum ticket; (f) changes its return policies or to another fulfillment house different from those identified in Merchant Application; or (g) changes to its Account. Merchant will notify Provider promptly in writing if it becomes subject to any voluntary or involuntary bankruptcy or insolvency petition or proceeding. Merchant’s failure to provide notice as required above may be deemed a material breach and will be sufficient grounds for termination of the Agreement and for Provider’s exercise of all its rights and remedies provided by this Agreement. If any change listed above occurs, Provider may immediately terminate this Agreement. 2.18 Merchant’s Representations and Warranties. Merchant represents and warrants that: (a) all information contained in the Merchant Application or any other documents delivered to Provider in connection therewith is true and complete and properly reflects Merchant's business, financial condition and principals, partners, owners or officers (as applicable); (b) Merchant has power to execute, deliver and perform this Agreement, and this Agreement is duly authorized, and will not violate any provisions of Law, or conflict with any other agreement to which Merchant is subject; (c) Merchant holds all licenses, if any, required to conduct its business and is qualified to do business in every jurisdiction where it is required to do so; and (d) there is no action, suit or proceeding at law or in equity now pending or, to Merchant's knowledge, threatened by or against or affecting Merchant which would substantially impair its right to carry on its business as now conducted or adversely affect its financial condition or operations. 2.19 Merchant’s Covenants. Merchants covenants that: (a) each Transaction Record presented to Provider for collection is genuine and is not the result of any fraudulent activity, or a Transaction prohibited by a Card Network, or is not being deposited on behalf of any business other than Merchant as authorized by this Agreement; (b) each Transaction Record is the result of a bona fide purchase of goods or services from Merchant by the Cardholder in the total amount stated on the Transaction Record; (c) Merchant will perform all of its obligations to the Cardholder in connection with the Transaction evidenced thereby; (d) Merchant will comply with Provider's procedures for accepting Cards, and the Transaction itself will not involve any element of credit for any other purposes other than as set forth in this Agreement, and will not be subject to any defense, dispute, offset or counterclaim which may be raised by any Cardholder under the Network Rules, the Consumer Credit Protection Act (15 USC §1601) or other Law; and any Credit Voucher which Merchant issues represents a bona fide refund or adjustment on a Transaction by Merchant with respect to which a Transaction Record has been accepted by Provider. 2.20 Third Parties. Merchant may desire to use a third-party service provider to assist Merchant with its Transactions. Merchant shall not utilize any such third parties unless Merchant has disclosed such use to Provider previously in writing, and unless such third party is fully compliant with all Laws and Network Rules. Any third party used by Merchant must be registered with the Card Network prior to the performance of any contracted services on behalf of Merchant. Further, as between the parties to the Agreement, Merchant will be bound by the acts and omissions of any third-party service provider and Merchant will be responsible for compliance by such third-party service provider with all Laws and Network Rules. Merchant will indemnify and hold harmless Provider from and against any loss, cost, or expense incurred in connection with or by reason of Merchant’s use of any third parties, including third-party service providers. Provider is not responsible for any third-party service provider used by Merchant, nor is Provider required to process any Transaction which Provider receives from Merchant or its service providers in any format not approved by Provider. Provider has no responsibility for, and shall have no liability to Merchant in connection with, any hardware, software or services Merchant receives subject to a direct agreement (including any sale, warranty or end-user license agreement) between Merchant and a third party. 2.21 Recourse. Merchant acknowledges that ISO performs the services contemplated by this Agreement and ISO is responsible to Merchant for any failure to perform such services in accordance with the terms of this Agreement. While Bank satisfies settlement files pursuant to instructions provided by ISO, Bank is not responsible for independently verifying the accuracy of such settlement files. Accordingly, to the greatest extent permitted by the Network Rules, Merchant’s sole recourse for any failure by Provider under this Agreement is against ISO (and not Bank).

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2.22 Pre-Authorized Transactions. If Merchant agrees to accept a pre-authorized order, the Cardholder shall execute and deliver to Merchant a written request for such pre-authorization which will be retained by Merchant and made available upon request to Provider. Merchant will not deliver goods or perform services covered by a pre-authorization after receiving specific notification that the pre-authorization is cancelled or that the card covering the pre-authorization is not to be honored. 2.23 Pre-Authorization Health Care Transactions. If Merchant is a “Health Care Merchant” as indicated on the Merchant Application and accepts a pre-authorized health care Transaction(s) from a Cardholder, Merchant agrees to comply with any requirements in the Network Rules related to such Transactions. 2.24 Recurring Transactions. If Merchant agrees to accept a recurring transaction from a Cardholder for the purchase of goods or services which are delivered or performed periodically (a “Recurring Transaction”), the Cardholder shall complete and deliver to Merchant an order form containing a written request for such goods or services to be charged to the Cardholder’s account, the frequency of the recurring charges and the duration of time for which such Cardholder’s permission is granted. In the event a Recurring Transaction is renewed, the Cardholder shall complete and deliver to Merchant a subsequent order form for continuation of such goods or services to be charged to the Cardholder’s account. A Recurring Transaction may not include partial payments made to Merchant for goods or services purchased in a single Transaction, nor may it be used for periodic payments of goods or services on which Merchant assesses additional finance charges. A copy of the order form must be retained for the duration of the recurring charges and provided in response to Provider’s request. In addition, Merchant must record, retain, and promptly produce upon request the “ship to address” and address verification service code (where applicable) for each transaction. Merchant must not complete an initial or subsequent Recurring Transaction after receiving a cancellation notice from the Cardholder, the Card Issuer, Provider or other party or a response that the Card is not to be honored. 2.25 Limited Acceptance. (a) If appropriately indicated on the Merchant Application, Merchant shall be a limited acceptance merchant, which means that Merchant has elected to accept only certain Visa and MasterCard Card types as indicated on the Merchant Application, or via later notification. The Visa or MasterCard credit acceptance option on the Merchant Application refers to Visa credit and business transactions, and is what MasterCard refers to as “Other Card” transactions. Notwithstanding anything to the contrary in the Merchant Application, Merchant can elect (i) to accept only Visa or MasterCard non-PIN based debit/stored value/electronic benefit transactions (sometimes referred to as “signature debit” transactions, whether or not an actual signature is required), (ii) to accept only Visa or MasterCard Credit transactions, or (iii) to accept all Visa or MasterCard credit and signature debit transactions; provided, however, that a Merchant who accepts any Visa or MasterCard Card types must accept all valid Visa or MasterCard Card types issued by a non-U.S. issuer. Merchant is not required to accept Cards of Card Networks other than Visa or MasterCard in order to accept Visa or MasterCard Cards (except that transactions using Diner’s International Cards which also carry the MasterCard Mark must be accepted if Merchant accepts MasterCard Card transactions of the same type). Provider has no obligation other than those expressly provided under the Network Rules and applicable Law as they may relate to limited acceptance. Provider’s obligations do not include policing card types at the point-of-sale. Merchant will be solely responsible for the implementation of its decision for limited acceptance including but not limited to policing the Card Network type(s) of transactions at the point-of-sale submitted for processing by Provider. Should Merchant submit a Transaction for processing for a card type it has indicated it does not wish to accept, Provider may process that Transaction and Merchant will pay the applicable fees, charges, and assessments associated with that Transaction. Merchant will comply with any applicable Laws and Network Rules and other applicable rules and regulations for the Card Network type processed. (b) If Merchant has chosen to accept Discover Cards in the Merchant Application, Merchant must accept Discover Cards at all Merchant establishments, including in payment for purchases of goods and services, for charitable contributions and for Cash Over Transactions (subject to the terms of the Network Rules and other applicable rules and regulations), when properly presented for payment by a Cardholder. Subject to this section, Merchant must create a Transaction Record for each Discover Card Transaction and deliver at least one copy of the Transaction Record to the Cardholder. A Merchant may issue a Cash Over (subject to the terms of the Network Rules) in connection with a Discover Card Transaction. Merchant must deliver a single Authorization request for the aggregate total of the goods/services purchase amount and the Cash Over amount. In addition, the Transaction Record must include both the purchase amount and the Cash Over amount.

ARTICLE III - PRESENTMENT, PAYMENT, CHARGEBACK

3.01 Acceptance. Provider will accept from Merchant all Transaction Records deposited by Merchant under the terms of this Agreement and will present the same to the appropriate Card Issuers for collection against Cardholder accounts. Merchant must transmit Transaction Records and Credit Vouchers to Provider or its processing vendor on the same or next business day immediately following the day that such Transaction Records and Credit Vouchers have been originated. All presentment and assignment of Transaction Records, collection therefore and reassignment or rejection of such Transaction Records are subject to the terms of this Agreement and the Network Rules. Provider will only provisionally credit the value of collected Transaction Records to Merchant's Account and reserves the right to adjust amounts collected to reflect the value of Chargebacks (actual and anticipated), fees, penalties, late submission charges, reserve deposits, negative Transaction Record batch deposits and items for which Provider did not receive final payment. 3.02 Endorsement. By presenting Transaction Records to Provider for collection and payment, Merchant agrees to sell and assign all its right, title and interest in each Transaction Record completed in conformity with Provider's acceptance procedures. Merchant’s presentment of Transaction Records to Provider constitutes an endorsement by Merchant to Provider of such Transaction Records. Provider may supply such endorsement on Merchant's behalf. 3.03 Prohibited Payments. Provider may receive payment of any Transaction Record presented by Merchant and paid by Provider unless and until there is a Chargeback. Unless specifically authorized in writing by Provider, Merchant may not collect or attempt to collect any Transaction Record, including Chargebacks, and will hold in trust for Provider and promptly deliver in kind to Provider any payment Merchant receives, in whole or in part, of the amount of any accepted Transaction, together with the Cardholder's name and account number and any corresponding accompanying payment. 3.04 Chargebacks. Merchant will accept responsibility for all Chargebacks related to Merchant’s Transactions. Accordingly, Merchant will be liable to Provider in the amount of any Transaction disputed by the Cardholder or Card Issuer for any reason under the Network Rules. Merchant authorizes Provider to offset from funds due to Merchant or to debit the Account or, if applicable, the Reserve Account for the amount of all Chargebacks. Merchant agrees to fully cooperate with Provider in complying with the Network Rules regarding all Chargebacks. Merchant may not initiate a sale Transaction in an attempt to collect a Chargeback. Merchant will pay the current published fees for each Chargeback as listed on the Merchant Application and any other fines, fees, or assessments imposed by any Card Network or Card Issuer. 3.05 Reserve Account. Notwithstanding anything to the contrary in this Agreement and in addition to any other legal rights or remedies available to Provider, Bank may establish (without notice to Merchant) and Merchant agrees to fund and/or allow Provider to fund from the Account or by way of offset of funds otherwise due to Merchant, a non-interest bearing Chargeback reserve account (the “Reserve Account”) in an amount determined by Bank in its sole discretion. Such Reserve Account may be funded by all or any combination of the following, as determined by Bank: (i) one or more debits to Merchant’s Account or any other accounts held by Bank or any of its affiliates in Merchant’s name or on Merchant’s behalf; (ii) one or more deductions or offsets to any payments otherwise due to Merchant; (iii) Merchant’s delivery to Bank of a letter of credit; (iv) if Bank so agrees, Merchant’s pledge to Bank of a freely transferable and negotiable certificate of deposit; or (v) Bank’s demand of other security or increase of any discount rate, transaction fees or other fees. Any such letter of credit or certificate of deposit shall be issued by a financial institution reasonably acceptable to Bank. The Reserve Account may be established at any time or for any reason. Specific examples of reasons include: (a) Merchant engages in any Transaction processing that creates an overcharge to a Cardholder by duplicating Transactions; (b) any activity designed by Merchant to circumvent a “call center” message when attempting to process a Transaction; (c) Merchant breaches this Agreement, violates any representation, covenant or warranty herein, or violates any Network Rule or Law; (d) the Merchant Application is in any way inaccurate or becomes inaccurate subsequent to Provider’s approval of the Merchant Application; (e) Merchant changes its type of business without Provider’s prior written approval; (f) fraud, Merchant processes an unauthorized charge, or other action that violates Provider’s applicable risk management standards or is likely to cause a loss; (g) Merchant has Chargebacks exceeding one percent (1%) of the total number of transactions completed by Merchant in any thirty (30) calendar day period; (h) excessive numbers of requests from Cardholders or Card Issuers to retrieve documentation; (i) Merchant’s financial stability is in question or Merchant ceases doing business; or (j) Merchant terminates this Agreement. Once the Reserve Account is established, collected funds will be placed in the Reserve Account by Bank. Before releasing funds after this Agreement is terminated, Merchant will pay any equipment cancellation fees and any outstanding charges, losses or amounts, and Chargebacks for which Merchant has provided indemnification under this Agreement. Further, Bank may require Merchant to deposit additional amounts based upon Merchant's processing history and/or anticipated risk of loss to Bank into the Reserve Account. Once established, unless Bank determines otherwise at its sole discretion, the Reserve Account will remain in place for the later of (i) twelve (12) months, or (ii) such period thereafter during which Cardholder disputes may remain valid under the Network Rules. The provisions of this Agreement relating to account debits and credits apply to the Reserve Account and survive this Agreement’s termination until Bank terminates the Reserve Account. Any balance remaining after Chargeback rights have expired and all of Bank’s other anticipated expenses, losses and damages have been paid will be disbursed to Merchant.

ARTICLE IV - TERMINATION AND EFFECT OF TERMINATION

4.01 Term. This Agreement will be effective once Provider accepts it and, unless otherwise terminated, will continue for three (3) years (the “Initial Term”) with automatic annual renewal terms thereafter (each a “Renewal Term,” and together with the Initial Term, the “Term”) unless and until Merchant provides written notice of non-renewal to Provider not less than ninety (90) days before the end of the then-current Term. 4.02 Termination. (a) Without Cause. Provider may terminate this Agreement, without cause, upon thirty (30) days’ advance written notice to Merchant. (b) For Cause. Provider may terminate this Agreement in its sole discretion, effective immediately, upon written or verbal notice, or by closing Merchant’s point-of-sale terminal, if Provider reasonably determines that any of the following conditions exists: (i) Merchant has violated any provision of this Agreement or Provider is otherwise entitled to terminate this Agreement pursuant to any provision of this Agreement; (ii) there is a material adverse change in Merchant’s financial condition; (iii) if any case or proceeding is commenced by or against Merchant, its affiliates or principals under any Law dealing with insolvency, bankruptcy, receivership or other debt relief; (iv) any information which Merchant provided to Provider, including in the Merchant Application, was false, incomplete or misleading when received; (v) at any time during the Term, Merchant has had a monthly ratio of Chargebacks to total Transactions exceeding Card Network requirements or one percent (1%), or Chargebacks exceed two percent (2%) of any monthly dollar amount of total Transactions; (vi) an overdraft in the Account exists for more than three (3) days; (vii) Merchant or any of Merchant’s officers or employees has been involved in processing Transactions arising from fraudulent or otherwise unauthorized Transactions; (viii) Merchant is or will be unable or unwilling to perform its obligations under this Agreement or applicable Law; or the Network Rules (ix) Merchant has failed to timely pay Provider any amount due; (x) Merchant has failed to promptly perform or discharge any obligation under its Account or the Reserve Account; (xi) any of Merchant’s representations or warranties made in connection with this Agreement was not true or accurate when given; (xii) Merchant has defaulted on any agreement it has with Provider; (xiii) Provider is served with legal process seeking to attach or garnish any of Merchant’s funds or property in Provider’s possession, and Merchant does not satisfy or appeal the legal process within fifteen (15) days of such service; (xiv) any Network Rules are amended in any way so that the continued existence of this Agreement would cause Provider to be in breach of those rules; (xv) any guaranty supporting Merchant’s obligations is revoked, withdrawn, terminated or altered in any way; (xvi) if any circumstances arise regarding Merchant or its business that create harm or loss of goodwill to any Card Network; (xvii) termination is necessary to prevent loss to Provider or Card Issuers; (xviii) Merchant’s type of business indicated on the Merchant Application or as conducted by Merchant could endanger Bank’s safety or soundness; (xix) Merchant’s owner, officer, Guarantor, or corporate entity has a separate relationship with Bank and that relationship is terminated, (xx) Merchant appears on any Card Network's security reporting; or (xxi) Provider’s security for repayment becomes impaired. 4.03 Effect of Bankruptcy. Any account or security held by Provider will not be subject to any preference, claim or stay by reason of bankruptcy or similar Law. The parties expressly agree that the acquisition of Transactions hereunder is a financial accommodation and if Merchant becomes a debtor in any bankruptcy or similar proceeding, this Agreement may not be assumed or enforced by any other person and Provider will be excused from performance hereunder. 4.04 Effect of Termination; Early Termination Fee. If this Agreement is terminated, regardless of cause, Provider may withhold and discontinue the disbursement for all Cards and other Transactions in the process of being collected and deposited. If the Agreement is terminated for cause, Merchant acknowledges that Provider may be required to report Merchant's business name and the names and other identification of its principals to various Card Network and industry databases, including the Terminated Merchant File and the Merchant Alert to Control High Risk Merchants File (“MATCH”). Merchant expressly agrees and consents to such reporting if Merchant is terminated for any reason requiring listing on the MATCH file. Merchant waives and will hold harmless Provider from any claims that Merchant may raise as a result of Provider’s MATCH file reporting. Upon termination of the Agreement, Merchant will immediately cease requesting Authorizations. If Merchant obtains any Authorization after termination, the fact that any Authorization was requested or obtained will not reinstate this Agreement. Further, Merchant will return all Provider property, forms, or equipment. All obligations for Transactions prior to termination (including payment for Chargebacks and Provider’s expenses relating to Chargebacks) survive termination. Provider is not liable to Merchant for damages (including prospective sales or profits) due to termination. Following termination, Merchant will, upon request, provide Provider with all original and electronic copies of Transaction Records and Credit Vouchers, if any, that have been retained by Merchant as of the date of termination. Upon termination, any amounts due to Provider will accelerate and be immediately due and payable, without any notice, declaration or other act whatsoever by Provider. The parties agree that if this Agreement is terminated before completion of the Initial Term for any reason other than a material uncured breach by Provider, Merchant will pay Provider an early termination fee determined by multiplying (a) the number of months remaining from the date of termination to the end of the current Term, by (b)

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$25.00, plus Provider’s costs and attorneys’ fees incurred in connection with Merchant’s termination of this Agreement. Merchant agrees that these damages are not a penalty but are a reasonable computation of the financial harm caused by the early termination of this Agreement.

ARTICLE V - MISCELLANEOUS

5.01 Account Monitoring. Merchant acknowledges that Provider will monitor Merchant’s Transaction activity. In addition to Provider’s right to fund a Reserve Account as set forth in Section 3.05, Provider may upon reasonable grounds suspend disbursement of Merchant's funds for any reasonable period of time required to investigate suspicious or unusual Transaction activity. Provider will make good faith efforts to notify Merchant promptly following such suspension. Provider is not liable to Merchant for any loss, either direct or indirect, which Merchant may attribute to any suspension of funds disbursement. 5.02 Forms. Merchant will use only the forms or modes of transmission of Transaction Records and Credit Vouchers that are provided or approved in advance by Provider, and Merchant may not use such forms other than in connection with Transactions. 5.03 Indemnification. Merchant will defend, indemnify and hold Provider and its officers, directors, members, shareholders, partners, employees, agents, subcontractors and representatives harmless from and against any and all fines, penalties, claims, damages, expenses, liabilities or fees of any nature whatsoever, including attorneys’ fees and costs (collectively, “Damages”), asserted against or incurred by Provider arising out of, relating to or resulting from, either directly or indirectly: (a) a breach of the security of the system safeguarding Cardholder Information resulting in unauthorized access to Cardholder Information; (b) a breach of any representation, warranty or term of this Agreement, including, but not limited to, the data security provisions by Merchant, or any service provider, subcontractor or agent of Merchant; (c) the negligence, gross negligence or willful misconduct of Merchant in the performance of its obligations under this Agreement, including, but not limited to, the data security provisions; (d) any violation of applicable Law or Network Rules by Merchant; and (e) all third-party claims arising from the foregoing. Notwithstanding the preceding, Merchant is not liable to Provider if Damages are caused by, related to or arise out of Provider’s gross negligence or willful misconduct, or Provider’s breach of this Agreement. Merchant will promptly reimburse Provider for any assessments, fines, fees or penalties imposed by any Card Network in connection with this Agreement, including the data security provisions, and authorizes Bank to deduct any such sums from the Account, the Reserve Account or amount to otherwise be cleared and settled with Merchant. 5.04 Records. In addition to any records Merchant routinely furnishes to Provider under this Agreement, Merchant will preserve Transaction Records and Credit Vouchers and any written authorization of the Cardholder for the longer of the following: (a) two years after the Transaction is completed, (b) the period required by Law or the Network Rules, (c) if a dispute is pending, until such dispute is resolved. 5.05 Requests for Copies. Immediately after Merchant receives the request by Provider, Merchant will provide to Provider either the original or a legible copy (in a size comparable to the actual Transaction Record) of the paper Transaction Record and any other documentary evidence available to Merchant that Provider reasonably requests to meet Provider's obligations under Law (including its obligations under the Fair Credit Billing Act) or otherwise to respond to questions concerning Cardholder accounts. 5.06 Exclusivity. Merchant agrees that during the Term, Merchant will not enter into an agreement with any other entity that provides processing services similar to those provided by Provider and that Provider shall be Merchant’s exclusive provider of all Card processing services as set forth in this Agreement. 5.07 Fees and Charges. Merchant will pay to Provider the fees and charges set forth on the Merchant Application including any additional charges applied to transactions that fail to meet Card Network requirements for the lowest interchange levels. The fees and charges will either be debited from the Account through ACH or withheld from daily payments to Merchant for such amounts and for any other fees, charges or adjustments incurred by Merchant and associated with processing services. Provider may change fees, including adding fees for additional services utilized by Merchant, upon thirty (30) days’ written notice to Merchant. Card Network interchange fee changes do not require any prior written notice. 5.08 Security Interest. This Agreement constitutes a security agreement under the Utah Commercial Code. To secure payment of Merchant’s obligations under this Agreement, Merchant grants to Provider a security interest in all now existing or hereafter acquired: (a) Transactions, Transaction Records, Credit Vouchers and other items submitted to Provider for processing by or for Merchant; (b) accounts receivable and payment rights relating to or arising from this Agreement, including all amounts due Merchant (including any rights to receive credits or payments hereunder); (c) accounts maintained with Bank or any institution other than Bank, including without limitation the Account and the Reserve Account, in the name of or for the benefit of, Merchant or any Guarantor of Merchant’s obligations under this Agreement; (d) deposits, regardless of source, to Merchant’s or any Guarantor’s accounts with Bank or any institution other than Bank, including the Account and the Reserve Account; (e) all deposits and all other property and funds deposited by Merchant or withheld by Bank, including funds and property withheld as the result of security monitoring; and (f) proceeds of the foregoing. If Provider reasonably determines that Merchant has breached any obligation under this Agreement, or that proceeds of Merchant's future Transactions are unlikely to cover anticipated Chargebacks, credits, fees and adjustments, as reasonably determined by Provider (whether because this Agreement has been terminated or for any other reason), Provider may setoff or otherwise exercise its security interest without notice or demand by immediately withdrawing from or freezing any account or otherwise exercising its rights under this Agreement or those rights available under the Network Rules, applicable Laws, including the Utah Uniform Commercial Code, or in equity. In addition to the collateral pledged above, Provider may require Merchant to furnish such other and different security as Provider deems appropriate in its sole discretion to secure Merchant’s obligations under this Agreement. Bank may fully or partially prohibit withdrawal by Merchant of funds from Merchant's Account with Bank or financial institutions other than Bank, pending Bank’s determination from time to time to exercise its rights as a secured party against such accounts in partial or full payment of Merchant’s obligations to Bank. Merchant will execute any documents and take any actions required to comply with and perfect any security interest under this paragraph, at Merchant’s cost. Merchant represents and warrants that no other party has a security interest or lien in any of the collateral pledged above, and Merchant will obtain Bank’s written consent before it grants a lien or security interest in that pledged collateral to any other person. If Provider receives notice of federal or state lien against Merchant, Provider will establish a Reserve Account and send all deposits to lien holder as directed. Merchant will be responsible for any fees, management or other, that result from Merchant’s lien. Management fees shall be no less than $50.00 per lien. Merchant shall not assign to any third party any payments due to it under this Agreement, and all indebtedness arising from Transactions will be for bona fide sales of goods and services (or both) at its business locations and free of liens, claims, and encumbrances other than ordinary sales taxes; provided, however, that Merchant may sell and assign future Transaction receivables to Provider, its affiliated entities and/or any other cash advance funding source that partners with Provider or its affiliated entities, without consent from any Card Network. Notwithstanding the foregoing, Provider prohibits Merchant from selling or assigning future Transaction receivables to any third party without Provider’s prior written consent. 5.09 Modifications to Agreement. From time to time Provider may amend any provision or provisions of this Agreement, including, without limitation, those relating to the discount rate or to other fees and charges payable by Merchant by mailing written notice to Merchant of the amendment at least thirty (30) days prior to the effective date of the amendment, and the amendment will become effective unless Provider receives Merchant's written notice of termination of this Agreement before such effective date. If Merchant continues to submit Transaction Records to Provider or otherwise continues to process Transactions with Provider after such thirty (30) day period (even if notice of objection was provided to Provider), then Merchant shall be deemed to have accepted and agreed to such amendment. In addition, Merchant acknowledges and agrees that this Agreement is subject to amendment by Provider to conform to the Network Rules and Law and that amendments required due to changes in either the Network Rules, Law or judicial decision may become effective on such shorter period of time as Provider may specify if necessary to comply with the applicable Network Rule, Law or decision. As a matter of clarification, Merchant may not terminate this Agreement if Provider amends the Agreement as necessary to comply with applicable Network Rules, Law or a judicial decision. 5.10 Warranty Disclaimer. PROVIDER MAKES NO WARRANTIES REGARDING THE USE, OPERATION OR PERFORMANCE OR NON-PERFORMANCE OF SOFTWARE AND SYSTEMS UTILIZED FOR THIS AGREEMENT, WHETHER EXPRESS OR IMPLIED, AND PROVIDER EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 5.11 Limitation of Liability. Provider's liability with respect to any Transaction may not exceed the amount of the Transaction Record in connection with that Transaction less any applicable fees and charges. In no event will Provider or its agents, officers, directors or employees be liable to Merchant for any indirect, incidental, exemplary, punitive, special or consequential damages whatsoever, including, but not limited to, lost profits. Merchant waives all claims against Provider for any loss, claim, demand, penalty, action, delay, cost or expense (including reasonable attorneys’ fees) of any kind unless Merchant provides written notice to Provider of the occurrence that gave rise to the alleged liability within thirty (30) days after Merchant knew or should have known of the occurrence. Merchant will indemnify and hold Provider harmless from any claim relating to any Transaction Record paid for by Provider as may be made by anyone by way of defense, dispute, offset, counterclaim or affirmative action, or for any damages of or losses that Provider may incur as a result of Merchant's breach of this Agreement. Further, Merchant will reimburse Provider for all expenses and costs, including attorneys' fees, with regard thereto. Merchant acknowledges that the fees for the services provided to Merchant by Provider are very small in relation to the funds advanced to Merchant for Transactions and consequently Provider’s willingness to provide these services is based on the liability limitations contained in this Agreement. Therefore, in addition to greater limitations on Provider’s liability that may be provided elsewhere (including the per Transaction Record limitation above), any liability of Provider under this Agreement, whether to Merchant or any other party, whatever the basis of the liability, will not exceed, in the aggregate, an amount equal to the lesser of (a) the fees paid by Merchant to Provider during the last three (3) months, exclusive of fees and variable costs incurred by Provider to process Transactions, such as interchange costs, assessments and fees imposed by a third party or (b) fifty thousand dollars ($50,000). 5.12 Waiver. Provider’s failure by Provider to enforce one or more of the provisions of this Agreement will not constitute a waiver of the right to enforce the same or other provision in the future. 5.13 Written Notices. All written notices and other written communications required or permitted under this Agreement will be deemed delivered immediately when hand-delivered or sent via facsimile and the sender obtains a fax confirmation receipt, and upon mailing when sent first class mail, postage prepaid, addressed as follows: (a) If to Bank: At the facsimile number or address provided at the top of the Merchant Application. (b) If to ISO: At the facsimile number or address provided at the top of the Merchant Application. (b) If to Merchant: At the facsimile number or address provided as the billing address and to the contact listed on the Merchant Application. 5.14 Choice of Law; Jurisdiction; Waiver of Jury Trial. Utah law governs this Agreement. Any claim or cause of action arising out of this Agreement against Provider must be initiated and maintained exclusively in the state or federal courts located in Salt Lake County, Utah. To the extent permitted by applicable Law, Merchant and Provider waive any right to trial by jury in any action or proceedings regarding any litigation related to this Agreement and each agree that any such actions or proceedings will be tried by a judge without a jury. 5.15 Entire Agreement; Assignability. This Agreement expresses the entire understanding of the parties with respect to the subject matter hereof. This Agreement may be assigned by Bank or ISO without Merchant’s consent. This Agreement may not be assigned, directly or by operation of law by either Merchant or ISO, without Bank’s prior written consent. This Agreement will be binding upon and inure to the benefit of the parties' respective heirs, personal representatives, successors and assigns. 5.16 Deposit Account. Merchant will at all times maintain an Account at a bank that is a member of the Federal Reserve ACH system and approved by Provider and will provide Provider with proper authorization to debit the Account. All credits for collected funds and debits for fees, payments and Chargebacks and other amounts for which Merchant is liable under the terms of this Agreement will be made to the Account. During the term of this Agreement and for a period of one (1) year after the termination of this Agreement, Merchant may not close or change the Account without prior written approval by Provider, which approval may not be unreasonably withheld. Merchant will be solely liable for all fees and costs associated with the Account and for all overdrafts. Merchant hereby grants to Provider a security interest in the Account to the extent of any and all fees, payments and Chargebacks and other amounts due which may arise under this Agreement, and Merchant will execute any document and obtain any consents or waivers from the bank at which the Account is maintained as requested by Provider to protect its security interests therein. Merchant will maintain sufficient funds in the Account to accommodate all Transactions contemplated by this Agreement and all other fees, charges, credits or other payments or amounts due under this Agreement. 5.17 Credit and Financial Inquiries; Additional Locations; Inspections. Provider may make, at any time, any credit inquires which it may consider necessary to accept or review acceptance of this Agreement or investigate Merchant's deposit or Card acceptance activities subsequent to acceptance of this Agreement. Such inquiries may include, but are not limited to, a credit and/or criminal check of Merchant and business including its proprietor, partners, principals, owners or shareholders or officers. Upon Provider’s request, Merchant will provide the written consent of any person for which an inquiry has been or is to be made if such person has not executed this Agreement and will provide any financial statements, income tax and business tax returns and other financial information as Provider may consider necessary to perform initial or periodic reviews of Merchant's financial stability and business practices. Merchant may accept Cards only at locations approved by Provider. Additional locations may be added, subject to Provider's prior consent. Provider or Merchant may remove locations by providing notice as provided herein. Merchant will permit Provider, at any time and from time to time, to inspect locations to confirm that Merchant has or is adhering to the terms of this Agreement and is maintaining the proper facilities, equipment, inventory, records and license or permits (where necessary) to conduct its business. However, nothing in this paragraph may be deemed to waive Merchant's obligation to comply in all respects with the terms of this Agreement or the Network Rules. Provider, its internal and external auditors, and its regulators may audit compliance with this Agreement, compliance with Laws and Network Rules, including, but not limited to, relating to Card acceptance and Transaction processing, data security provisions and Card Network compliance. Merchant will make available its records maintained and produced under this Agreement, and Merchant’s facilities will be made accessible, upon notice during normal business hours for examination and audit and shall cooperate with such audits or examinations. Nothing in this section may be construed to require Merchant to give access to its facilities, personnel or records in a manner that unreasonably interferes with its business operations. Each party will bear its own expenses of any audit. 5.18 Marketing of Non-Card Services. From time to time, Provider may offer to Merchant certain additional products and services which may or may not be related to the processing of credit card and debit card Transactions. If such offers are made, Merchant may decline the offers or be deemed to have accepted the offers and be liable for payment therefor. If any additional product or service is offered by ISO independently of Bank, then ISO (and not Bank) shall be responsible to deliver and perform such product and service and, accordingly, Merchant may not assert any claim against Bank as it relates to such additional product or service provided by ISO. Likewise,

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if any additional product or service is offered by Bank independently of ISO, then Bank (and not ISO) shall be responsible to deliver and perform such product and service and, accordingly, Merchant may not assert any claim against ISO as it relates to such additional product or service provided by Bank. 5.19 Force Majeure. Provider will be released from liability hereunder if they fail to perform any obligation where the failure occurs by reason of any act of God, fire, flood, storm, earthquake, tidal wave, communications failure, sabotage, war, military operation, terrorism, national emergency, mechanical or electronic breakdown, civil commotion or the order, requisition, request or recommendation of any governmental authority, or either party’s compliance therewith, or governmental regulation, or priority, or any other similar cause beyond either party’s reasonable control. 5.20 No Third-Party Beneficiary. No other person or entity may be deemed to be a third-party beneficiary of this Agreement. 5.21 Severability; Conflict with Network Rules. If any provision in this Agreement is for any reason held to be invalid or unenforceable, no other provision shall be effected thereby, and this Agreement shall be construed as if the invalid or unenforceable provision had never been a part of it. In the event of a conflict between this Agreement and the Network Rules, the Network Rules shall govern and control. 5.22 IRS Reporting Information. Pursuant to Section 6050W of the Internal Revenue Code, merchant acquiring entities such as Bank and third-party settlement organizations are required to file an information return reflecting all payment card transactions and third-party network transactions occurring in a calendar year. This requirement applies to returns for all calendar years after December 31, 2010 and Merchant will receive a form 1099-K reporting Merchant’s gross transaction amounts for each calendar year. In addition, amounts payable under Section 6050W are subject to backup withholding requirements. Merchant acquirers such as Bank, either itself or through third parties, are required to perform backup withholding by deducting and withholding income tax from reportable transactions if (a) the payee fails to provide the payee’s taxpayer identification number (TIN) to the merchant acquirer; or (b) if the IRS notifies the merchant acquirer that the TIN (when matched with the name) provided by the payee is incorrect. Accordingly, to avoid backup withholding, it is very important that Merchant provides Bank with the correct name and TIN that Merchant uses when filing its income tax return that includes the transactions for Merchant’s business. In addition to the fees set forth on the Merchant Application, if Merchant fails to comply with the obligations set forth in this section, Provider may charge Merchant additional amounts determined by Provider and may pass through any additional fines, costs or expenses incurred by Provider. 5.23 Confidentiality. Merchant shall protect all information or other items proprietary to Provider that Merchant obtains knowledge of or access to as a result of Provider’s provision of the services pursuant to this Agreement (collectively, “Provider Confidential Information”) from unauthorized disclosure, publication, or dissemination with the same standard of care and discretion Merchant uses to protect similar confidential information of Merchant’s own, but in no event less than reasonable care. Furthermore, Merchant shall not use, reproduce, distribute, disclose, or otherwise disseminate Provider Confidential Information, except in connection with the performance of Merchant’s obligations under this Agreement. The Provider Confidential Information described in the previous sentence, shall include, but not be limited to, the following types of information and other information of a similar nature (whether or not reduced to writing): scientific, technical, or business information, product makeup lists, ideas, concepts, designs, drawings, techniques, plans, calculations, system designs, formulae, algorithms, programs, software (source and object code), hardware, manuals, test procedures and results, identity and description of computerized records, identity and description of suppliers, customer lists, processes, procedures, trade secrets, “know-how,” marketing techniques and material, marketing and development plans, price lists, pricing policies, and all other financial information. The obligations of non-disclosure provided hereunder shall continue during the Term and, (i) with respect to Provider Confidential Information that does not constitute a trade secret, for a period of three (3) years thereafter and, (ii) with respect to Provider Confidential Information that rises to the level of a trade secret under applicable Law, for such period of time thereafter as the Provider Confidential Information shall retain its status as a trade secret under applicable law, and no less than three (3) years thereafter.

Terms Below Are Additional Applicable Specifically to American Express Card Acceptance (capitalized terms below not defined elsewhere in the Agreement shall have the meanings assigned in the American Express Network Rules). With respect to participation in an American Express acceptance program, in the event of a conflict between the terms below and other terms of this Agreement, the terms below shall control.

A5.24 Transaction Data. Merchant authorizes Provider and/or its affiliates to submit American Express Transactions to, and receive settlement on such Transactions from, American Express or Bank on behalf of Merchant. A5.25 Marketing Message Opt-Out. Merchant may opt-out of receiving future commercial marketing communications from American Express by contacting Provider. Note that Merchant may continue to receive marketing communications while American Express updates its records to reflect this choice. Opting out of commercial marketing communications will not preclude Merchant from receiving important transactional or relationship messages from American Express. A5.26 Conversion to American Express Direct Merchant. Merchant acknowledges that it may be converted from American Express Card OptBlue program to a direct relationship with American Express if and when its Transaction volumes exceed the eligibility thresholds for the OptBlue program. If this occurs, upon such conversion, (i) Merchant will be bound by American Express’ then-current Card Acceptance Agreement; and (ii) American Express will set pricing and other fees payable by Merchant. A5.27 American Express as Third Party Beneficiary. Notwithstanding anything in the Agreement to the contrary, American Express shall have third-party beneficiary rights, but not obligations, to the terms of this Agreement applicable to American Express Card acceptance to enforce such terms against Merchant. A5.28 American Express Opt-Out. Merchant may opt out of accepting American Express at any time without directly or indirectly affecting its rights to accept Cards bearing Marks of other Card Networks. A5.29 Refund Policies. Merchant’s refund policies for American Express purchases must be at least as favorable as its refund policy for purchase on any other Card Network, and the refund policy must be disclosed to Cardholders at the time of purchase and in compliance with Law. Merchant may not bill or attempt to collect from any Cardholder for any American Express Transaction unless a Chargeback has been exercised, Merchant has fully paid for such Chargeback, and it otherwise has the right to do so. A5.30 Establishment Closing. If Merchant closes any of its Establishments, Merchant must follow these guidelines: (i) notify ISO immediately; (ii) policies must be conveyed to the Cardholder prior to completion of the Transaction and printed on the copy of a receipt or Transaction record the Cardholder signs; (iii) if not providing refunds or exchanges, post notices indicating that all sales are final (e.g., at the front doors, by the cash registers, on the Transaction record and on websites and catalogs); (iv) return and cancellation policies must be clearly disclosed at the time of sale; and (v) for Advance Payment Charges or Delayed Delivery Charges, Merchant must either deliver the goods or services for which Merchant has already charged the Cardholder or issue Credit for any portion of the Transaction for which Merchant has not delivered the goods or services. A5.31 American Express Network Rules. Merchant shall by bound by American Express Network Rules, including the Merchant Operating Guide: www.americanexpress.com/merchantopguide.

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PAYMENT FUSION PLATFORM

TERMS & CONDITIONS

These Terms and Conditions, as well as the terms set forth in the Sales Agreement and other documents executed by the parties constitute the agreement (“Agreement”) between Axia Holdings, Inc. and its subsidiaries and affiliates (including, without limitation, Axia Technologies, LLC (doing business as AxiaMed) (collectively, “Platform Provider”) and the contractual party utilizing the Products and Services hereunder (“Customer”). For adequate consideration, the receipt of which is hereby acknowledged, Platform Provider and Customer, intending to be legally bound, mutually agree to the following terms and conditions:

Definitions. Certain capitalized terms shall have the meanings set forth below: 1.1. “Association Rules” means the procedures, regulations, and rules, as may be amended from time to time, promulgated by American Express, MasterCard, VISA, Discover, and/or various other payment networks, NACHA and the settlement/sponsor bank, PCI and the PA-DSS, as applicable. 1.2. “Authorized Users” means persons or entities that are authorized by Customer to access and use the Services. 1.3. “Control Center” means the cloud-based payment device management solution owned and operated by Platform Provider, which may be provided to Customer as indicated on the Sales Agreement. 1.4. “Documentation” means the written materials provided to Customer from time to time, including terms and conditions, training manuals, support policies, API and related documentation, integration tools and manuals and other documentation related or assist or describe the Services and/or the Products provided by Platform Provider, including without limitation the PIM for Customer’s use with the Validated P2PE Solution. 1.5. “Engagement Hardware” means the applicable Platform Provider hardware distributed by Platform Provider and certified for use with the Services and used by Customer to enable the use of certain of the Services. 1.6. “Gateway Services” means the transaction processing services including the transmission, acceptance and authorization of credit, debit ACH and other transactions on behalf of Customer to a payment processing network through the Axia ePay Gateway, another gateway provided by Platform Provider and, as applicable, the Payment Fusion Platform. 1.7. “Hardware as a Service (HAAS) Service” means the hardware as a service license arrangement by Platform Provider to Customer to license Engagement Hardware pursuant to the terms set forth herein and in the Sales Agreement, which Customer may choose and Platofrm Provider may accept as indicated on the Sales Agreement. 1.8. “Payment Fusion Platform” means the cloud-based payment solution owned and maintained by Platform Provider including the hardware and software utilized for processing credit, debit and other transactions as well as transmitting other data between a Customer, a software solution utilized by a Customer as well as the consumers of the goods and/or services provided by the Customer. 1.9. “PIM” means the Validated P2PE Instruction Manual as poublished by Platform Provider, as may be amended from time to time. 1.10. “Product(s)” means all equipment, Engagement Hardware, firmware, Software, and other applications, including all updates, modifications, enhancements, replacements, provided to Customer under this Agreement. Each Product selected by Customer and the pricing related thereto shall be set forth on the Sales Agreement. 1.11. “Services” means the select Gateway Services and the other selected services provided by Platform Provider through the Payment Fusion Platform to Customer as expressly indicated on the Sales Agreement, which may include Control Center, Validated P2PE and the HAAS Service. 1.12. “Software” means the software programs, including without limitation the software related to the Gateway Services and Payment Fusion as well as related software & all pass-thru software licenses from third-party software providers whose software is part of the offering under this Agreement. 1.13. “Validated P2PE Solution” means a PCI validated Point to Point Encryiption Solution provided by Platform Provider and its subcontractors as an optional service hereunder, which may be provided to Customer as indicated on the Sales Agreement.

Use of Services and Products. Subject to and conditioned on Customer’s and its Authorized Users’ compliance with the terms and conditions of this Agreement, during the Term, Customer and its Authorized Users may access and use the Services and the Products. Platform Provider shall use commercially reasonable efforts to provide the Services to Customer and its Authorized Users. Services shall be provided consistent with generally accepted industry standards. Access and use of the Services are permitted by Platform Provider solely for Customer’s internal use and benefit. Any terms for the purchase of Engagement Hardware shall be set forth in the applicable Schedule. Platform Provider may, in its discretion from time to time, without liability to Customer, revise, modify, update, limit or replace any Products or Services in whole or in part, provided the Products and Services are not adversely affected in any material manner and Platform Provider provides reasonable notice to Customer prior to the occurrence of any such event. Documentation. Platform Provider shall provide Customer access to electronic versions of any applicable Documentation that Platform Provider makes generally available to its customers of the same Services and Products. Customer may print and reproduce the Documentation provided that: (i) the number of such copies is limited to those reasonably required for use by Customer,

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including, without limitation, training and archival purposes; and (ii) proprietary notices contained in the original copies of the Documentation are reproduced and included in all copies, whether such copies are made in whole or in part. Customer Responsibilities. 4.1. Customer agrees to use the Products and Services in accordance with applicable federal, state and local laws, policies procedures and judicial requirements (“Applicable Law”), the Association Rules and the Documentation provided by Platform Provider. 4.2. Customer is responsible for assuring the accuracy, quality, integrity, legality, reliability, appropriateness and ownership of all data as it is entered or uploaded. Platform Provider is not responsible for inability to perform Services due to Customer’s use of improperly formatted or corrupt files, viruses on media provided, or incompatible backup media or software. 4.3. Customer shall not transmit, store data that is subject to the rights of any third parties without first obtaining all required authorizations, consents, and/or rights in writing from such third parties, including the right to communicate with Authorized User1 by electronic communication. PLATFORM PROVIDER IS NOT LIABLE OR RESPONSIBLE FOR ANY ACTS OR OMISSIONS IN RELATION TO CUSTOMERS’ OR AUTHORIZED USERS’ USE OF THE SERVICES OR PRODUCTS, INCLUDING WITHOUT LIMITATION USE OF THE SERVICES AND PRODUCTS IN WAYS THAT ARE NOT IN COMPLIANCE WITH APPLICABLE LAWS. 4.4. Customer understands that Customer may not process transactions on behalf of any other entity or individual and that the use of the Products and Services is provided herein as a service for a single Merchant account. Any attempt to use the Products and Services herein for more than one Merchant account without additional agreements and fees for each merchant or MID may result in additional fees and charges or the revocation of the service license and termination of this Agreement. This service license is transferable and may be sold, traded, assumed or otherwise transferred to other individual or entity with the express written consent of Platform Provider. 4.5. To the extent that Customer is utilizing the Validated P2PE Solution, Customer shall comply with all requirements related to the validated P2PE Solution provided in the PIM at all times, as well as any and all related to validated P2PE set forth in the Association Rules. Customer fully acknowledges that it is responsible for maintaining their compliance in order to take advantage of the beneftis of the validated P2PE Solution. Customer shall maintain custody of all Engagement Hardware that is part of the Validated P2PE Solution, and shall immediately notify Platform Provider in the event that any such Engagement Hardware is lost or stolen, or otherwise compromised. Customer acknowledges that it is Customer’s responsibility to ensure that it is fully compliant with all of the requrements of PCI for the Validated P2PE Solution, and Platfrom Provider shall have no liability whatsoever for any non-compliance regardless of whether such non-compliance is related to the Services. 4.6. To the extent that Customer is utilizing Control Center, Customer shall at no time allow any person other than its own officers, directors or employees to access Control Center at any time, and shall ensure that any use of Control Center shall be consistent with the Documentation, in furtherance of the purposes hereunder, shall not endanger the security of the Payment Fusion system nor cause any harm to Platform Provider or its clients. Customer shall at no time resell any portion of Control Center. Customer shall be fully liable for any of its or its agents acts or omissions in relation to their use of Control Center in the management of their Engagement Hardware or otherwise. Hardware as a Service Terms. 5.1. Customer shall be granted a license by Platform Provider to use the Engagement Equipment as set forth in the Sales Agreement (“Licensed Equipment”) for the time period and at the monthly cost as set forth herein. Customer fully understands and agrees that Platform Provider shall retain all title and interest in the Licensed Equipment and Customer is not purchasing or holding title to any of the Licensed Equipment, and that at the end of the Term, Customer must return the Licensed Equipment as set forth herein with no option to purchase at any time. Platform Provider shall provide the Licensed Equipment to Customer as a service, which shall include Customer’s use of the Gateway Services hereunder. 5.2. Platform Provider shall use commercially reasonable efforts to ensure that the Licensed Equipment is in good working order to process payment transactions through the Payment Fusion Platform during the Term along with the support of Customer’s provider of POS software (“POS Provider”). In the event that the Licensed Equipment shall no longer permit the use by Customer of the Payment Fusion Platform for payment transactions, Customer shall provide immediate notice to POS Provider to provide Tier 1 customer support on the Licensed Equipment and POS Provider shall work with Platform Provider on any escalated issues that the POS Provider cannot resolve, including any issues involving the need to potentially replace the Licensed Equipment. In the event that it is determined by Platform Provider that the Licensed Equipment is no longer in working order and cannot be repaired at Customers place of business, Platfrom Provider shall replace the Licensed Hardware. The Licensed Equipment may be reconditioned equipment either at initial installation or upon replacement. Platform Provider has no obligation to upgrade any such Licensed Equipment at any time so long as such is in reasonable working order and has not been damaged at any time. Within fifteen (15) days of receipt of any replaced Licensed Equipment, Customer shall ship per Platfrom Provider’s instructions the replaced Licensed Equipment back to Platfrom Provider. Customer shall pay to Platform Provider the full amount of the Equipment Damages for each piece of Licensed Equipment that is either (i) not returned to Platfrom Provider within the 15 day period, or (ii) determined by Platform Provider to either be damaged while in the custody of Customer outside ordinary wear and tear or no longer in Good Working Order. Platform Provider shall have the rights related to collection of such amounts as set forth in Section 22 below. 5.3. Customer shall (i) keep the Licensed Equipment in good working order such that it continues during the Term and after Termination to function perfectly with no exterior damage apart from normal usage related wear and tear (“Good Working

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Order”); (ii) keep the Licensed Equipment free and clear of any liens or other encumbrances, and (iii) not permit any act where Platform Provider’s title or rights may be negatively affected. Customer shall be responsible for complying with and conforming to all laws and regulations relating to the possession, use or maintenance of the Licensed Equipment. Furthermore, Customer shall promptly pay all taxes, fees, licenses and governmental charges, together with any penalties or interest thereon, relating to the possession, use or maintenance of the Licensed Equipment. Customer shall notify Platfrom Provider immediately if (i) any Licensed Equipment is not in compliance with the terms and conditions contained herein, (ii) does not comply with US federal, state or local laws and regulations, (iii) is stolen or no longer in the possession of Customer, (iv) has been used for fraudulent purposes, or (v) is defective. Platform Provider reserves the right to suspend Service at any time to any such Licensed Equipment when the Licensed Equipment is not in compliance with the terms and conditions contained herein or the conditions above resolved. 5.4. Customer will be liable for the costs of repair or replacement of Licensed Equipment if damaged or lost due to theft, negligence, intentional acts, damage outside of ordinary wear and tear, unauthorized acts or other causes within the reasonable control of Customer, its agents or employees. With respect to any Licensed Equipment, any act of dropping the Licensed Equipment shall be considered outside of ordinary wear and tear. 5.5. All Licensed Equipment shall be delivered to Customer by Platform Provider with implementation instructions for Customer, and Customer shall have sole responsibility for installing the Licensed Equipment within Customer’s own business location. Customer shall be responsible for providing the power, network connectivity, and any and all site prep to permit the Licensed Equipment to function as intended. Authorized Users. Customer shall be responsible for ensuring Authorized Users’ compliance with the terms set forth herein, the Applicable Laws or other agreements, all acts or omissions by Authorized Users, and for any damages incurred as a result thereof. Customer shall have sole responsibility for terminating the access previously granted to any Authorized User, whether for termination of employment, reassignment, or any other cause. Platform Provider may disable an Authorized User’s access to the Services at any time in its sole discretion if Platform Provider has reason to believe that such Authorized User poses a security risk. Customer is responsible for designating user IDs and passwords for any and all Authorized Users. Customer agrees to hold all passwords, user IDs or other system access credentials and information under close control and shall notify Platform Provider immediately if access to such information is, or is thought to have been, released to any unauthorized party. Customer agrees not to allow multiple users to access the Software using a common account or user credentials. Security control of Platform Provider- assigned user ID’s and passwords are the sole responsibility of Customer and Platform Provider shall not be held responsible in any way for any breach in system security as a result of Customer’s actions or inactions. User IDs. Customer is solely responsible and liable for all activity occurring under the user IDs and passwords issued in connection with this Agreement whether or not such activities have been authorized by Customer. Customer shall abide by all applicable local, state, national and foreign laws, treaties and regulations in connection with its use of the Services as contemplated by this Agreement, including those related to data privacy, international communications and the transmission of technical or personal data. Customer shall: (i) notify Platform Provider immediately in writing of any unauthorized use of any password or user ID or any other suspected or known breach of security, including the loss or theft of any password or user ID or computer or device containing such information; (ii) take all steps reasonably necessary to prevent access and use of the Services by unauthorized users; and (iii) not provide false identity information to gain access to or use of the Services or the Software. Payment Terms. Customer shall pay the fees for the Products and Services as set forth in the Sales Agreement. The fees and charges will either be debited from an account designated by Customer through ACH. Customer agrees to take any additional actions requested by Platform Provider to permit the ACH of the amounts owed to Platform Provider hereunder. Platform Provider may change fees, including adding fees for additional services utilized by Merchant, upon thirty (30) days’ written notice to Customer; provided, however, that the increase of any fees related to the increase to Platform Provider of third party fees shall not require notice. Taxes. The fees and amounts specified to be payable by Customer hereunder do not include any sales, use, excise, value added, utility or other similar tax or charge which may be or hereafter become applicable to the Services provided hereunder. Customer is responsible for payment of any and all such taxes, including any HAAS, SAAS or software taxes, and shall fully indemnify Platform Provider hereunder for any such taxes. Products. At no time shall Customer utilize the Products or Services in any manner not consistent with Documentation or the terms herein, and shall not attempt to open any Engagement Hardware in any way. Customer shall follow any and all instructions in relation to the operation of the Products. To utilize the Services, Customer will be required to utilize the Licensed Equipment and keep such Licensed Equipment in Good Working Order. Platform Provider shall not be responsible for any misuse, neglect or abuse of, tampering with or any external forces affecting the Licensed Equipment. Customer shall be responsible for the installation and maintenance of any and all Licensed Equipment necessary for the provision of Services and to access the Software. The Engagement Hardware shall be subject to a manufacturer’s warranty as between Platfrom Provider, who retains ownership of the equipment and the device manufacturer as administered by the manufacturer. Platform Provider does not provide any warranties of any kind for the Engagement Hardware except as set forth herein. Customer shall maintain such insurance with third party insurance carriers to fully cover the replacement cost at the Equipment Damages price in the case of loss either in route to and from Customer or at Customer’s location or in Customer’s custody. Title and risk of loss of the Engagement Hardware shall pass to Customer upon shipment. Customer shall be responsible for all costs of insurance, taxes, storage, and transportation. Telecommunications; Internet access. For the avoidance of doubt, Platform Provider does not provide telecommunication or other wireless or internet services. Customer is responsible for obtaining access to the Internet using appropriate equipment and for ensuring proper security of Customer’s systems and access to the Services. Customer agrees to process data using third party programs, including specifically internet “browser” programs that support appropriate data security protocols compliant with

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Applicable Laws. Platform Provider makes no warranties of any kind and expressly disclaims in regard to the security and/or the services provided by any third party telecommunication or any wireless or internet provider. Platform Provider shall not be responsible or liable for any failure for any failure, delay or deficiency in communications or transmission facilities, integration into third party software, infrastructure or Services. Improper Use. Failure to comply with the terms of this Agreement or the Documentation may result in damage to the Products. Platform Provider shall have no liability for damage or any losses to the extent that it resulted from Customer’s gross negligence or willful misconduct or failure to comply with the terms of this Agreement, the Documentation, or any other written instructions provided by Platform Provider to Customer. Ownership. Nothing herein shall be deemed to grant to Customer or any Authorized User any ownership interest in the Products, Documentation, or Services. All Products, Documentation, Services and any derivative works based thereon, including any improvements, enhancements, modifications, updates, versions and releases, whether or not patentable or registered, will remain the exclusive property of Platform Provider (collectively, the “Platform Provider Materials”). Platform Provider expressly reserves all rights to the Platform Provider Materials not specifically granted herein. Customer shall not: (i) attempt to assign the right to access or use the Products or Services to any third party; (ii) allow or authorize access to or use of the Products or Services to any persons other than Authorized Users; (iii) use the Products or Services for any purpose other than Customer’s own internal business purposes; (iv) reverse engineer, disassemble or decompile the Products or Services or attempt in any fashion to obtain the source code to the Software; (v) knowingly use the Products or Services to send or store infringing or unlawful material or information; (vi) knowingly use the Products or Services to send or store material containing harmful computer codes, viruses, files, scripts, agents, or programs; (vii) interfere with or disrupt the integrity of the Products or the Software contained therein or Services or the data contained therein, or (viii) attempt to gain unauthorized access to the Software or Services or related systems or networks. Confidential Data. The Products and Services enable Customer to transmit, store, and receive certain information relating to financial transactions for Customer and its Authorized Users (the “Services Data”). The Services Data will include confidential information of Customer’s Authorized Users. Applicable Law, as well as ethical and licensure requirements, may impose obligations with respect to confidentiality and other obligations that may limit the right of Customers and persons acting on their behalf to make use of the Services or to transmit certain information to third parties. Customer represents and warrants that it will, at all times during the term of this Agreement and thereafter, comply with all Applicable LAws that are directly or indirectly applicable to that may now or hereafter govern the gathering, use, transmission, processing, receipt, reporting, disclosure, maintenance, and storage of the Services Data. It shall be Customer’s responsibility to cause all persons or entities under its direction or control, including Authorized Users, to comply with any such Applicable Laws. Customer, at all times during the term of this Agreement and thereafter, shall be solely responsible for obtaining and maintaining all legally necessary consents or permissions required or advisable to disclose, process, retrieve, transmit, and view the Services Data transmitted, stored, or received in connection with the Services. Customer agrees that Platform Provider and all other persons or entities involved in the operation of Services, have the right to monitor, retrieve, store and use Services Data in connection with the operation of the Services, and are acting on behalf of Customer in transmitting Data, and Platform Provider disclaims any obligations related to such Services Data. PLATFORM PROVIDER IS NOT LIABLE OR RESPONSIBLE FOR ANY CUSTOMER ACTS OR OMISSIONS IN USING THE SERVICES IN WAYS THAT ARE NOT IN COMPLIANCE WITH ANY APPLICABLE LAWS OR OTHER REQUIREMENTS OR CUSTOMER’S USE OR MISUSE OF DATA TRANSMITTED, MONITORED, STORED, OR RECEIVED. Equitable Relief. The parties acknowledge that monetary remedies may be inadequate to protect rights in Confidential Information and that, in addition to legal remedies otherwise available, injunctive relief is an appropriate judicial remedy to protect such rights. Warranties and Disclaimers. Subject to the limitations of this section and Sections 16 and 17 hereof and subject to such limitations as are expressly provided elsewhere in this Agreement, Platform Provider represents and warrants that Platform Provider has the legal right to perform the Services and provide Products to Customer and its Authorized Users, either itself or through third parties. The Services provided by it hereunder shall be performed, in all material respects, in a professional, timely, and workmanlike manner. In the event Customer believes Platform Provider has breached the warranty in the foregoing sentence, Customer shall promptly notify Platform Provider thereof including information necessary to allow Platform Provider to examine the issue and to re-perform any Services containing reproducible errors. THE SERVICES AND PRODUCTS ARE PROVIDED TO CUSTOMER ON AN “AS IS,” WITH ALL FAULTS BASIS. PLATFORM PROVIDER MAKES NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, OR WARRANTIES ARISING BY COURSE OF DEALING OR CUSTOM OF TRADE EXCEPT FOR THE EXPRESS WARRANTIES AND COVENANTS HEREIN. PLATFORM PROVIDER MAKES NO REPRESENTATION OR WARRANTY THAT THE SERVICES DATA OR THE SOFTWARE IS ACCURATE, COMPLETE, OR RELIABLE. PLATFORM PROVIDER FURTHER MAKES NO REPRESENTATIONS OR WARRANTIES THAT CUSTOMER’S ACCESS TO AND USE OF THE SERVICES WILL BE UNINTERRUPTED OR ERROR-FREE; FREE OF VIRUSES, UNAUTHORIZED CODE, OR POTENTIALLY HARMFUL COMPONENTS; WITHOUT DELAY; OR SECURE. For the avoidance of doubt, Platform Provider makes no warranties of any kind in regard to the services provided by any telephone company or other telecommunications provider. Platform Provider shall not be responsible for any failure of any telecommunications provider however constituted or described. Some jurisdictions do not permit the exclusion or limitation of implied warranties. Therefore, only if required by Applicable Law, some or all of the exclusions or limitations above may not apply.

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Exclusion of Damages;. IN NO EVENT SHALL PLATFORM PROVIDER BE LIABLE TO CUSTOMER FOR ANY INDIRECT, NON-COMPENSATORY, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES, INCLUDING BUT NOT LIMITED TO ANY LOST PROFITS OR REVENUE, LOST SAVINGS, LOSS OF DATA OR BUSINESS OPPORTUNITY, ANY GOVERNMENTAL, AGENCY, AND/OR REGULATORY FINES OR COSTS, OR OTHER DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OR USE OF THE SERVICES OR ENGAGEMENT HARDWARE, OR ERRORS, INACCURACIES, OMISSIONS, DEFECTS, UNTIMELINESS, SECURITY BREACHES, OR ANY OTHER FAILURE TO PERFORM BY PLATFORM PROVIDER OR ANY THIRD PARTY SOFTWARE PROVIDERS. THE FOREGOING EXCLUSION SHALL APPLY WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF A LIMITED REMEDY SET FORTH IN THE AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE. Some jurisdictions do not permit the exclusion of certain types of damages. Therefore, only if required by Applicable Law, some or all of the exclusions above may not apply. Limitations of Liability. EXCEPT FOR THE EXPRESS WARRANTIES AND COVENANTS HEREIN, CUSTOMER EXPRESSLY WAIVES AND SHALL NOT MAKE ANY CLAIM OF ANY KIND AGAINST PLATFORM PROVIDER ARISING OUT OF THE FAILURE OF PERFORMANCE OF THE PRODUCT, THE SERVICES OR THE PAYMENT FUSION PLATFORM, PAYMENT TERMINALS OR THE GATEWAY OR ARISING OUT OF THE BREACH OF ANY WARRANTY PROVIDED BY PLATFORM PROVIDER, OR THE MANUFACTURER OF EQUIPMENT. IF, DESPITE THE OTHER TERMS OF THIS AGREEMENT, PLATFORM PROVIDER HAS ANY LIABILITY TO CUSTOMER FOR ANY LOSS, HARM OR DAMAGE, THE PARTIES AGREE THAT PLATFORM PROVIDER’S LIABILITY TO CUSTOMER OR ANY OTHER PERSON UNDER OR RELATED TO ANY AND ALL SUCH LOSSES, HARMS, OR DAMAGES SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY CUSTOMER AND RECEIVED BY PLATFORM PROVIDER SPECIFICALLY FOR THE SERVICES (EXCLUDING THIRD PARTY PASS-THROUGH FEES OR EXPENSES) PROVIDED PURSUANT TO THIS AGREEMENT IN THE THREE (3) MONTHS PRIOR TO THE FIRST OCCURRENCE GIVING RISE TO THE CLAIM FOR LIABILITY. THE FOREGOING LIMITATION OF LIABILITY REPRESENTS THE ALLOCATION OF RISK OF FAILURE BETWEEN THE PARTIES AS REFLECTED IN THE PRICING HEREIN. CUSTOMER ACKNOWLEDGES THAT, ABSENT ITS AGREEMENT TO THIS LIMITATION OF LIABILITY, PLATFORM PROVIDER WOULD NOT PROVIDE THE SERVICES TO CUSTOMER. Indemnification. Platform Provider shall defend and hold harmless Customer and its Affiliates, officers, directors and employees harmless from any claim that the use of the Services violates or infringes any third party’s patent, copyright, trade secret or any other intellectual property rights. Customer shall give Platform Provider prompt notice of any such claim, shall cooperate fully with Platform Provider in its defense of the claim, and Platform Provider shall have sole control of the defense and settlement of any such claim. Should the Services hereunder be made the subject of any claim alleging misappropriation or infringement of any patent, copyright, trade secret, trademark or other intellectual property rights of any third person, Axia’s sole liability shall be, at its option, to procure the right to use Services free of such liability or to replace or modify the Services to be non-infringing. In the event that neither of the foregoing options are commercially reasonable in Axia’s sole discretion, Platform Provider shall have the right to terminate this Agreement without further obligation and shall return to Customer any prepaid fees for Services not yet rendered. Platform Provider shall have no obligation to defend or indemnify Customer for any claim arising from Customer’s use of the Services inconsistent with its Documentation or in combination with any software not provided or approved by Platform Provider. Term. This Agreement shall be effective on the Effective Date as set forth on the applicable schedule and shall continue for an initial term of three (3) years (the “Initial Term”), and shall continue thereafter for successive additional one-year terms (each a “Renewal Period” and together with the Initial Term, the “Term”) unless either party hereto provide written notice to the other of its intent not to renew at least sixty (60) days prior to the end of the then-current Term. Either party may terminate this Agreement immediately upon written notice to the other if the other party (i) materially breaches this Agreement and fails to cure such breach within thirty (30) days following written notice thereof, or (ii) becomes or is declared insolvent or bankrupt, commits an act of bankruptcy, or is subject to any proceeding in bankruptcy, receivership, liquidation or insolvency. Platform Provider shall have the right to terminate this agreement for any or no reason at any time. Effect of Termination. Upon termination or cancellation: (a) all rights granted hereunder shall terminate and Customer must immediately cease using the Services and accessing the Software for any purpose, including without limitation access to Control Center; (b) Customer shall de-install and destroy all copies of Software (including any Documentation) in its possession or under its control; and (c) Customer shall immediately pay to Platform Provider for all amounts due through the effective date of termination or cancellation as well as the amounts due, which Customer would be expected to pay, for the remaining portion of the Term, based on the average fees paid in the previous six (6) full months of active processing. If Customer has been using Services for less than six (6) months then the average will be taken from the number of full active months that Customer has been using Services. Equipment Return. If either party decides to terminate the current term upon expiration or otherwise terminates this Agreement, Customer shall have the sole obligation to arrange for, at Customer’s sole expense, the return of the Licensed Equipment. Within fifteen (15) days of the effective date of termination or expiration of the Agreement between the parties or termination, Customer must return the Licensed Equipment at its own expense in protective shipping packages which meet the Validated P2PE standards and provided by Platform Provider at Customer’s cost through common carrier insured for the full value of the Licensed Equipment, in as good order and condition as originally delivered, normal wear and tear excepted. If Customer fails to do so, Platform Provider will have the right to: (i) charge Customer an amount equal to $1,000 for each Ingenico IPP and $1,500 for each Ingenico ISC, iWL or other Ingenico device not received within the fifteen (15) day time period (“Equipment

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Damages”); and/or (ii) itself or through agents, recover and take possession of such Licensed Equipment, and for this purpose may enter any premises of Customer where such equipment is located during normal working hours to remove such Licensed Equipment, without being liable for trespass. Customer will promptly surrender the Licensed Equipment to Platform Provider or its agents in as good order and condition as originally delivered, normal wear and tear excepted. In the event that any of the equipment returned to Platform Provider is no longer usable by Platform Provider, normal wear and tear excepted, then Customer shall be liable for the Equipment Damages for each such piece of Licensed Equipment. Platform Provider reserves the right to charge the fees to the credit card or bank account provided by Customer or to set off on any amounts owed to Customer by Platform Provider. Customer is fully aware and agrees to the fees outlined in this agreement and all expenses for collection, legal fees, pick up cost or any other charges related to a default or material breach in terms of this agreement. Survival. Termination of this Agreement shall not affect the respective rights and responsibilities of the Parties to the extent that they arose prior to such termination. Assignment. Neither this Agreement, nor any of the rights or duties set forth herein, may be assigned by Customer without the prior written consent of Platform Provider, which may be withheld for any reason or no reason. Any such purported assignment shall be null and void. Notwithstanding the foregoing, Customer may assign any of its rights and obligations under this Agreement, in whole or in part, without Axia’s consent, to a successor entity as part of a merger, acquisition, internal reorganization or other change of control. Platform Provider may assign any of its rights and obligations under this Agreement, in whole or in part, without Customer’s consent. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors and permitted assigns. Independent Contractors. The Parties are independent contractors. This Agreement does not designate either party as the agent, employee, legal representative, partner or joint venturer of the other party for any purpose whatsoever and neither shall have the right, power or authority to create any obligation or responsibility on behalf of the other. Each party shall be fully liable for the acts and omissions of their employees, subcontractors, and agents hereunder. Force Majeure; Third Party Dependencies. Platform Provider shall not be in breach of this Agreement to the extent nonperformance is due to causes beyond the control and without the gross negligence or willful misconduct of Platform Provider. Such causes may include, but are not restricted to, acts of God, acts of a public enemy, acts of the government in either its sovereign or contractual capacity, fires, floods, terrorism, network or communications events, or strikes (each, a “Force Majeure Event”). Customer acknowledges that the Services and Products herein are provided by Platform Provider in conjunction with various unaffiliated third parties, and Platform Provider shall not be in breach of this Agreement to the extent nonperformance is due to any act or omission of such unaffiliated third parties, such as AWS, the USA ePay gateway, encryption/decryption facilities or others. Customer Indemnification. Customer will indemnify, defend and hold harmless Platform Provider, any subcontractor of Platform Provider, and any service provider related to the Products and Services and their respective officers, directors, agents, and employees, against all liabilities, damages, costs, expenses (including attorneys’ fees), claims, losses arising from or related to (1) breach of the terms of this Agreement or the Documents, (2) unauthorized or unlawful use of the Services, (3) the unauthorized or unlawful use of the Services by any unauthorized person, (4) any inaccurate or incomplete data provided to Platform Provider in the performance of Services, or (5) any negligence or willful misconduct by Customer, Authorized Users, or their respective agents, officers, directors or employees. Governing Law; Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California without regard to its conflict of laws provisions. Notices. All notices required or permitted under this Agreement shall be in writing and delivered via an internationally recognized overnight courier (for next business day delivery, receipt requested), or certified mail (return receipt requested), or in person to the other party at its address(es) set forth herein, or to such other address as either party may designate subsequently in writing, and shall be deemed effective upon receipt. Entire Agreement; Amendment. The Agreement sets forth the entire agreement and understanding of the parties hereto in respect of the transactions contemplated hereby, and supersedes all prior agreements, arrangements, or understandings relating to the subject matter hereof. This Agreement may be amended by Platform Provider at any time upon written or electronic notice to Customer of not less than ten (10) days prior to the effective date of such amendment. Rights Cumulative; Waiver. All rights and remedies conferred under this Agreement or by any other instrument or law shall be cumulative and may be exercised singularly or concurrently. The failure by either party to enforce any term of this Agreement shall not be deemed to be a waiver of future enforcement of that or any other term of this Agreement. Counterparts. This Agreement may be executed in any number of separate counterparts, each of which shall be deemed to constitute an original, but which together shall constitute one and the same instrument. Severability. In the event that any provision hereof is prohibited or unenforceable in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or unenforceability of such provision in any other jurisdiction. Bankruptcy. If Customer files for bankruptcy protection or an involuntary bankruptcy petition is filed against Customer, Platform Provider and Customer agree that Platform Provider shall be entitled to draw down against any deposit for any charges that are past due at that time. Should Platfrom Provider seek relief from the automatic stay in order to effect such action, although such relief may not be required under current law, Customer agrees and stipulates to the entry of relief from the stay and agrees to raise no defenses thereto. Platform Provider and Customer stipulate that the deposit and the Customer’s obligations under this Agreement arise out of the same transaction. If customer files for bankruptcy protection or an involuntary bankruptcy petition is

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filed against Customer, Platfrom Provider and Customer agree that Customer will return all equipment to Platfrom Provider within fourteen (14) days.

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Processing Analysis and Pricing Quotation for Humboldt Waste Management Authority

Statement Date ‐ October 2019 Eureka Payments Proposal Date ‐ 11/19/2019 Discount # of Per Item Discount # of Per Item Volume Rate Items Fee TOTAL Volume Rate Items Fee TOTAL

Sales Discounts Visa/MasterCard/Discover $115,649.17 0.12% $138.78 $115,649.17 0.08% $92.52 American Express $1,190.75 0.35% $4.17 $1,190.75 0.08% $0.95 Total $116,839.92 $142.95 $116,839.92 $93.47

Per Item Fees Visa 2657 $0.10 $265.70 2657 $0.08 $212.56 MasterCard 222 $0.10 $22.20 222 $0.08 $17.76 Discover 19 $0.10 $1.90 19 $0.08 $1.52 American Express 19 $0.10 $1.90 19 $0.08 $1.52 Total $291.70 $233.36

Card Brand Cost (Approx.) Total $2,453.48 $2,453.48

Additional Fees Data Breach Program $0.00 1 $6.95 $6.95 Merchant Service Fee 1 $10.00 $10.00 $0.00 Regulatory Fee 1 $2.45 $2.45 $0.00 Statement Fee $0.00 1 $5.00 $5.00 Total $12.45 $11.95

Total Volume $116,839.92 $116,839.92 Total Transactions 2917 2917 Average Ticket Size $40.05 $40.05 Total Fees $2,900.58 $2,792.26 Effective Rate 2.48% 2.39% Total Monthly Savings $108.31

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: March 12, 2020

FROM: Tyler Egerer, Director of Finance and Administrative Services

SUBJECT: Item 2f) Voya CalPERS Deferred Compensation 457 Plan Addition

RECOMMENDED ACTION: Review and Approve Approve Resolution 2020-06 and Authorize the Executive Director to Execute an Agreement with Voya Financial to Implement the CalPERS Supplemental Income Deferred Compensation 457 Plan.

DISCUSSION: Staff recommends the Board authorize the addition of a second Deferred Compensation 457 Plan (DC 457 Plan) for Authority’s employees. Board approval of this recommendation would provide additional retirement options to the Authority’s employees, at their cost. Employees are currently able to participate in the existing DC 457 Plan provided by Mass Mutual. Staff is proposing an additional DC 457, at no cost to the Authority, with the primary advantage being there is a local representative which allows interested employees to talk directly to a representative of Voya Financial to learn more about the DC 457 plan and receive assistance in building their retirement solutions outside of the CalPERS retirement provided by the Authority.

In December 2019, the Director of Finance and Administrative Services was approached by David Vallerga and Michael Kleczek of Voya Financial about the possibility of adding their CalPERS DC 457 Plan to the Authority’s suite of self-managed employee benefits. Mr. Vallerga was formerly the Authority’s representative for our Mass Mutual DC 457 plan and is familiar with the Authority’s employee profile and retirement needs.

The CalPERS DC 457 Plan incurs no additional costs to the Authority, as all funding is self- directed by employees, pre-tax, from their paychecks. As administrators, Authority staff will ensure that funds are being deposited regularly and that employees have the opportunity to meet with Mr. Vallerga on a regular basis as they are brought on as new hires, or have questions or changes they may wish to make to their current plan. Additionally, this plan offers a loan program and integration with the myCalPERS system to allow participating employees the chance to view their total retirement package in one convenient location, and potentially use their long-term retirement for small improvements in the near future. In effect, the Authority gains additional benefits and tools for its employees with no impact to current or future Authority expenses.

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Approval of this resolution and application process further positions the Authority to make regular changes in future fiscal years to determine which plan may be the best for the Authority moving forward, to implement a recurring Request for Information procedure to ensure participants are receiving the best rate for the investments, and to most likely consolidate plan vendors in the future to allow for more streamlined appraisal of the DC 457 plan offered to employees and continue to improve returns for retirement planning.

FISCAL IMPACT: No fiscal impact to the Authority; all activities are self-funded by employees, with minimal administrative time to manage the payments into the system and ensure compliance with the agreement with Voya. These duties are already assigned as part of the regular activities associated with twice-monthly payroll processing.

CONTRACT EVALUATION: Legal Counsel has reviewed the plan agreement and attached resolution.

ALTERNATIVES: The Board can reject the proposed addition. Employees will still have the opportunity to utilize the Mass Mutual DC457 plan currently provided by the Authority.

ATTACHMENTS: 1) Resolution 2020-XX, A Resolution of the Humboldt Waste Management Authority Approving Adoption of CalPERS Supplemental Income 457 Plan.

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RESOLUTION 2020-06

A RESOLUTION OF THE HUMBOLDT WASTE MANAGEMENT AUTHORITY BOARD OF DIRECTORS APPROVING ADOPTION OF CALPERS SUPPLEMENTAL INCOME 457 PLAN

WHEREAS, Humboldt Waste Management Authority desires to establish an additional deferred compensation plan for the benefit of its employees; and

WHEREAS, the Board of Administration ( the “Board”) of the California Public Employees’ Retirement System (“CalPERS”) has established the CalPERS Supplemental Income 457 Plan (the “CalPERS 457 Plan”) which may be adopted by a governmental employer the employees of which are public employees; and

WHEREAS, Humboldt Waste Management Authority believes that the CalPERS 457 Plan and the investment options available thereunder will provide valuable benefits to its employees; and

WHEREAS, the Board has appointed Voya Financial® (the Plan Recordkeeper) to perform recordkeeping and administrative services under the CalPERS 457 Plan and to act as the Board’s agent in all matters relating to the administration of the CalPERS 457 Plan;

NOW, THEREFORE, BE IT RESOLVED that Humboldt Waste Management Authority adopts the CalPERS 457 Plan for the benefit of its employees and authorizes and directs the Executive Director to execute the attached adoption agreement on behalf of Humboldt Waste Management Authority and to provide CalPERS or any successor agent duly appointed by the Board with such information and cooperation as may be needed on an ongoing basis in the administration of the CalPERS 457 Plan. A copy of this resolution, the agreement, and any attachments thereto shall be on file in the office of the Humboldt Waste Management Authority, 1059 W. Hawthorn St., Eureka, CA 95501.

PASSED, APPROVED, and ADOPTED as a resolution of the Humboldt Waste Management Authority Board of Directors, on this 12th day of March 2020, by the following vote:

AYES: NOES: ABSENT:

Michael Sweeney, HWMA Chairman Jill K Duffy, Clerk of the Board

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CalPERS Supplemental Income 457 Plan Employer Adoption Agreement

The employer identified below (the “Employer”) adopts the CalPERS Supplemental Income 457 Plan (the “CalPERS 457 Plan” or the “Plan”) for the benefit of its employees and agrees to be bound by and subject to the terms of the Plan, as it may be amended from time to time. The Employer further agrees and represents as follows:

1. The Employer is a political subdivision of the State of California and is eligible to adopt the Plan.

2. The Employer has duly adopted a resolution (copy attached) or taken such other official action as required for its lawful adoption and implementation of the Plan and has authorized the undersigned to execute this Agreement on its behalf.

3. The Employer has received and has had the opportunity to review the following documents and information:

• The Plan document;

• A description of the optional provisions of the Plan;

• A description of the investment options available to Plan participants and historical performance data for those investment options;

• A complete description of fees and expenses that will or may be charged to Plan participants including, but not limited to, investment fees and administrative expenses; and

• T he Enrollment Kit for eligible employees, which includes forms and information for employees to participate in the Plan.

Contributions

4. The Employer understands that its employees will have the opportunity to defer their own compensation by designating an amount or percentage to be withheld from each paycheck and contributed to the Plan on the employee’s behalf.

5. The Employer understands that the Plan must be made available to all employees and agrees to offer all employees the opportunity to participate in the Plan.

6. The Employer understands that the Plan cannot be made available to individuals who are not the Employer’s common law employees and agrees not to offer such individuals the opportunity to participate in the Plan.

7. The Employer understands that each employee’s deferrals under the Plan and any other eligible deferred compensation plan maintained by the Employer are subject to certain limits imposed by the Plan and the federal tax code. The Employer agrees to limit employees’ deferrals under all plans maintained by the Employer to amounts that do not exceed applicable limitations.

8. The Employer agrees to deduct deferral amounts from employees’ salaries and wages in accordance with the employees’ elections, to remit all amounts deducted to the Plan as soon as reasonably practicable after such amounts are withheld, and to accurately report the amounts remitted.

9. The Employer understands and agrees that all amounts deferred under the Plan shall be 100% vested and shall be deposited in the Public Employees’ Deferred Compensation Fund (the “Fund”), a trust established to hold such amounts, for the exclusive benefit of participants and their beneficiaries. The Employer shall have no right to Fund assets or to sell, redeem, or otherwise liquidate Fund assets, except as provided Plan section 10.6.

CalPERS-MR-8.15 #3039872.EC.G March 12, 2020 Printed on Recycled Paper Investments Page 45 of 162 10. The Employer understands and agrees that employees who defer compensation under the Plan will have the right to direct the investment of their individual Plan accounts by choosing among the investment options selected by the CalPERS Board of Admin- istration (the “Board”) and offered under the Plan. The Employer further understands and agrees that any employee who does not provide timely directions for investing his or her account will be deemed to have selected the Plan’s default investment. The Plan’s default investment is currently the CalPERS Target Retirement Fund designated for an employee, based on his or her expected retirement date. The Employer understands and agrees that the Board, in its sole discretion, may add, eliminate, or consolidate investment options offered under the Plan, including the Plan’s default investment option.

11. The Employer further understands and agrees that certain fees are charged to Plan participants for investment and administration expenses, and that such fees will be offset against investment returns or deducted from participants’ Plan accounts periodically.

Administration

12. The Employer understands and agrees that, except as specifically set forth in the Plan, the administration of the Plan and Fund is subject to the exclusive control of the Board and that the Board has the authority to retain third parties to provide investment services, record keeping, accounting, or other services for the Plan.

13. The Employer agrees to assist and cooperate in providing Plan information to employees and to follow administrative procedures established by the Board or its designee(s) from time to time.

14. The Employer has completed the attached New Employer Data Sheet, which is incorporated by reference. The Employer hereby certifies that all information provided in connection with its adoption of the Plan is true and accurate.

15. The Employer understands and agrees that the Board has retained the power and authority to amend the Plan from time to time, subject to limitations set forth in the California Government Code and the Plan. The Employer may not amend the Plan.

16. The Employer understands and agrees that its participation in the Plan may be terminated by the Employer or by the Board upon sixty (60) days advance written notice. Upon termination, all amounts held for participants will continue to be held in the Fund for the exclusive benefit of participants and their beneficiaries, except for distributions or transfers permitted under the Plan terms.

Name of Employer:

By: Title:

Date:

Accepted by CalPERS (or an agent duly appointed by the Board) on behalf of the Board of Administration of the California Public Employees’ Retirement System

Name of Employer:

By: Title:

Date:

SKU #EAA-1015 March 12, 2020 Printed on Recycled Paper Page 46 of 162

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: January 15, 2020

FROM: Jill Duffy, Executive Director

SUBJECT: Item 4) Receive Presentation on North Coast Recycling Market Development Zone

RECOMMENDED ACTION: Receive Presentation

DISCUSSION: Receive an update on the North Coast Recycle Market Development Zone and ZoneWorks Conference from Allison Tans, Interim Executive Director to the Workforce Development Board.

FISCAL IMPACT: No direct fiscal impact. The NCRMDZ received $15,000 in base FY 2019-20 funding from HWMA.

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: February 24, 2020 For Meeting of: March 12, 2020

FROM: Jill K. Duffy, Executive Director

SUBJECT: Item Receive and Approve the Classification and Compensation Study Results

RECOMMENDED ACTION: Voice vote. 1) Approve the Classification and Compensation Study Results; and 2) Other Board Direction as appropriate.

SUMMARY: Staff presents the Final Classification and Compensation Reports to the Board for review and approval. Katie Kaneko, President of Koff & Associates will provide an informational presentation and be available for Board questions.

Staff recommends the Board receive and approve the Classification and Compensation Study results and direct staff to return to the Board with necessary implementation steps.

Background: During FY 2018-19 draft budget considerations, the Board discussed the need to examine and manage the multi-faceted effects of the mandated State’s Minimum Wage tiered increases to the Authority’s pay structure, primarily to skilled entry level positions, and the need to evaluate appropriate salaries for all positions to minimize compression issues. HWMA staff proposed to conduct an in-house salary survey to guide proposed recommendations.

Our in-house review was limited to a brief evaluation of comparable positions and pay scales within the Authority’s Member Agencies. This review indicated HWMA salaries were between 15-20% below comparable positions as averaged across HWMA Member Agencies. Initial plans to increase the scope of the internal evaluation beyond this limited examination were hampered by available staff time to implement data collection as originally expected.

Staff secured the assistance of Koff & Associates to conduct a focused Classification and Compensation Study, completed in February 2020, to assist HWMA to provide an independent and objective review of salary and compensation benefits, with the development of a competitive pay and benefit structure for the Board’s consideration. Based upon market data, this study ensures that the plan is fiscally responsible, provides market comparables for similar classifications, ensure that internal relationships of salaries are equitable across HWMA, and will assist in the recruitment and retention of qualified staff.

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As previously noted, Katie Kaneko, President of Koff & Associates will provide a presentation detailing the approach, methodology, findings and recommendations to the Board.

Findings and Recommendation Highlights: Classification Study Management requested a focused review on two specific classifications 1) the Director of Finance & Administrative Services class description; and 2) review of an internal proposal to consolidate Utility Worker, Operator Technician and Lead Operator into a single classification “Materials Diversion Technician I/II/III.

The class description for the Director of Finance & Administrative Services was reviewed to ensure an accurate description of current programs, responsibilities and minimum qualifications, with a revised class description that reflects the current body of work and responsibilities.

HWMA management developed an internal proposal to consolidate Utility Worker, Operator Technician and Lead Operator classifications into a singular “Materials Diversion Technician I/II/III” where advancement would be driven by higher skill sets, and competency in the range of duties and ability to operate more complex equipment. This enables increased flexibility in scheduling and assignment of staff based on daily Authority needs at the Transfer Station, Eureka Recycling Center and Cummings Road Landfill, along with greater internal growth opportunities for current and future staff. Cross training opportunities in these three work areas would increase and become easier to implement due to the flexibility created by the proposed classification as well.

Both the revised class description and title change revision will be presented to the Board for consideration at a future meeting.

Compensation Study The Compensation Study found, in comparison to the market median, that HWMA base salaries are 15.9% below the market. However, when the Authority’s total compensation (salaries and benefits) were examined, the difference was reduced to an overall average of 3.6% below the market. The result of examining the total compensation of salaries and benefits provided to the employees puts the Authority in a more competitive position than limiting the review to salary data only. The recommendations in the study are therefore based on total compensation medians as it is a more accurate manner of evaluating and implementing necessary actions for the Board’s consideration.

The review determined that of the Authority’s 15 classifications eight (8) classifications are below the market total compensation, with five (5) of the classifications being greater than 5% below market total compensation. Three classifications have insufficient data due to not securing a minimum of four comparator agency matches.

A revised salary schedule was developed by the consultant to ensure classifications are placed into ranges appropriately and ensures internal equity amongst Authority staff. The salary schedule is proposed to have 35 ranges, each range represents a 5% change, with 5 steps in each

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range, 2.5% apart. As a result, some classifications are proposed to be adjusted in accordance with the revised salary schedule to adjust for the total compensation market median.

Implementation of the Study Results: There are three implementation phases related to this agenda item:

1) That the Board receive and approve the Classification and Compensation study findings and recommendations; and 2) That the Board review and discuss the draft Fiscal Year 2020-21 Budget which will incorporate the projected fiscal impacts into the FY 2020-21 Budget at the May 2020 meeting; and 3) The Board consider revised class descriptions, updated organization chart and the revised salary schedule for review and approval at the May 2020 meeting, to go into effect July 1, 2021.

No employee is proposed to be laid off or otherwise released from employment as a result of the proposed action.

Timing Staff proposes the revised classification and compensation adjustments go into effect July 1, 2020.

Attachments Attachment 1: “Volume 1: Classification Study – Final Report”, February 10, 2020 Attachment 2: “Compensation Study – Final Report”, January 31, 2020

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February 10, 2020

Volume I: Classification Study

Final Report

Humboldt Waste Management Authority

Submitted By: KOFF & ASSOCIATES

KATIE KANEKO President

2835 Seventh Street Berkeley, CA 94710 www.KoffAssociates.com [email protected] Tel: 510.658.5633 Fax: 510.652.5633

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February 10, 2020

Ms. Jill Duffy Executive Director Humboldt Waste Management Authority 1059 W. Hawthorne Street Eureka, CA 95501

Dear Ms. Duffy: Koff & Associates is pleased to present the Final classification and compensation report for the study of all positions in the Humboldt Waste Management Authority (“Authority”). Volume I documents the classification study process and provides recommendations and updated class specifications for select classifications. Volume II, to be sent under separate cover, documents the market compensation survey, findings, and recommendations. This first volume incorporates a summary of the study’s multi‐step process, which included results of written Position Description Questionnaires, interviews with employees and management, and employee review and comments in the form of draft class descriptions, and class allocation recommendations. We would like to thank you and Tyler Egerer for your assistance and cooperation without which this study could not have been brought to its successful completion. We will be glad to answer any questions or clarify any points as you are implementing the findings and recommendations. It was a pleasure working with you and we look forward to future opportunities to provide you with professional assistance.

Very truly yours,

Katie Kaneko President

2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 Background ...... 1 CLASSIFICATION STUDY GOALS ...... 1 CLASSIFICATION STUDY PROCESS ...... 2 CLASSIFICATION CONCEPTS ...... 2 Positions vs. Classifications ...... 2 The Relationship Between Classification and Compensation ...... 3 The Purpose of Having a Classification Plan ...... 3 Classification Descriptions ...... 4 Fair Labor Standards Act ...... 6 CLASSIFICATION FINDINGS AND RECOMMENDATIONS ...... 7 Classification Structure and Allocation Factors ...... 7 Classification Recommendations ...... 13 Title Change ...... 13 CONCLUSION ...... 14

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LIST OF TABLES

Table 1. Title Change Recommendations ...... 13

APPENDICES

Appendix I: New Class Descriptions

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EXECUTIVE SUMMARY Background In May 2019, the Humboldt Waste Management Authority (HWMA) contracted with Koff & Associates (K&A) to conduct a classification study for the Director of Finance and Administrative Services, Utility Worker, Operator Technician and Lead Operator classifications and conduct a total compensation for all Authority classifications. All classification and compensation findings, recommendations, and options for implementations are in Volumes I and II of this report. This classification review process was precipitated by:  Management proposed plan to consolidate Utility Worker/Operator Technician and Lead Operator for creation of Materials Diversion Technician I/II/III.  To ensure that the Director of Finance and Administrative Services Director class description reflects current programs, responsibilities, and minimum qualifications;  The desire to have a compensation plan that can meet the needs of the HWMA; and  The desire to ensure that internal relationships of salaries are based upon objective, non‐ quantitative evaluation factors, resulting in equity across the HWMA. The goal of the classification and compensation study is to assist the HWMA in developing a competitive pay and benefit structure, which is based upon market data to ensure that the plan is fiscally responsible, and that meets the needs of the HWMA with regards to recruitment and retention of qualified staff. CLASSIFICATION STUDY GOALS The goals and objectives of the classification portion of the study were to:  Obtain detailed information regarding each position through a variety of techniques, including written Position Description Questionnaires (PDQs) and interviews with employees and management;  Prepare an updated classification plan, including recommended class descriptions and position allocations that recognizes the scope and level of the various classes and positions, and is perceived equitable by management and employees alike;  Provide class descriptions and other documentation that includes information required for compliance with the Americans with Disabilities Act (ADA) and appropriate qualifications, including knowledge, skills, and other requirements that are job‐related and meet other legal guidelines; and  Provide sufficient documentation to allow the HWMA to maintain the classification system on a regular basis.

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CLASSIFICATION STUDY PROCESS The classification study procedures were as follows:  An initial meeting was held with HWMA management to clarify study scope, objectives, processes, and deliverables.  An orientation meeting was held for the ASD and Operations Manager to meet the consultant staff involved with the project, clarify study objectives and procedures, answer questions, and distribute the PDQs.  After the PDQ and related input were completed by employees and reviewed by management and consultant staff, interviews were conducted with all employees and management.  Following the analysis of the classification information gathered, draft class concepts, specifications were developed for management and employee review.  After resolution of issues, wherever possible, including additional contacts with employees and management to gain details and clarification, appropriate modifications were made to the draft specifications and allocations and this final report was prepared.

CLASSIFICATION CONCEPTS Positions vs. Classifications “Position” and “Classification” are two terms that are often used interchangeably but have very different meanings. As used in this report:  A position is an assigned group of duties and responsibilities performed by one person. A position can be full‐time, part‐time, regular or temporary, filled or vacant. Often the word “job” is used in place of the word “position.”  A classification or class may contain only one position or may consist of a number of positions. When you have several positions assigned to one class, it means that the same title is appropriate for each position; that the scope, level, duties, and responsibilities of each position assigned to the class are sufficiently similar (but not identical) that the same core knowledge, skills, abilities, and other requirements are appropriate for all positions, and that the same salary range is equitable for all positions in the class. The description of a position often appears as a working desk manual, going into detail regarding work process steps, while a class description emphasizes the general scope and level of responsibilities, plus the knowledge, skills, abilities, and other requirements for successful performance. When positions are classified, the focus is on assigned job duties and the job‐related requirements for successful performance, not on individual employee capabilities or amount of work performed. Positions are thus evaluated and classified on the basis of such factors as

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knowledge, skills, and abilities required to perform the work, the complexity of the work, the authority delegated to make decisions and take action, the responsibility for the work of others and/or for budget expenditures, contacts with others (both inside and outside of the organization), and the impact of the position on the organization and working conditions. The Relationship Between Classification and Compensation Classification and the description of the work and the requirements to perform the work are separate and distinct from determining the worth of that work in the labor market and to the organization. While recommending the appropriate compensation for the work of a class depends upon an understanding of what that work is and what it requires (as noted above), compensation levels are often influenced by two factors:  The external labor market; and  Internal relationships within the organization. Compensation findings and recommendations for the HWMA are covered in Volume II of this report. The Purpose of Having a Classification Plan A position classification plan provides an appropriate basis for making a variety of human resources decisions such as the:  Development of job‐related recruitment and selection procedures;  Clear and objective appraisal of employee performance;  Development of training plans and succession planning;  Design of an equitable and competitive salary structure;  Organizational development and the management of change; and  Provision of an equitable basis for discipline and other employee actions. In addition to providing this basis for various human resources management and process decisions, a position classification plan can also effectively support systems of administrative and fiscal control. Grouping of positions into an orderly classification system supports planning, budget analysis and preparation, and various other administrative functions. Within a position classification plan, job classifications can either be broad (containing a number of positions) or narrow (emphasizing individual job characteristics). Broad job classifications are indicated when:  Employees can be hired with a broad spectrum of knowledge, skill, and/or academic preparation and can readily learn the details of the HWMA, the department, and the position on‐the‐job; or  There is a need for flexibility of the assignment within a department or an organization due to changing programs, technologies, or workload.

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Individualized job classifications are indicated when:  There is an immediate need to recruit for specialty knowledge and skills;  There is a minimum of time or capability for on‐the‐job training; or  There is an organizational need to provide for specific job recognition and to highlight the differences between jobs. Most classification plans are a combination of these two sets of factors and we have chosen the middle ground in this study as being most practicable in the HWMA’s changing environment and service delivery expectations, as well as being in line with the HWMA’s strategic plan. This approach resulted in recommendations to retitle classifications to more accurately reflect current responsibilities. Classification Descriptions In developing the new and revised classification descriptions for assigned positions, the basic concepts outlined in the previous pages were utilized. The recommended class descriptions are included in Appendix I of this report. As mentioned earlier, the class descriptions are based upon the information from the written PDQs completed by the ASD and input from the Operations Manager, the individual job audit interviews, and from information provided by employees and managers during the review processes. These descriptions provide:  A written summary documenting the work performed and/or proposed by the incumbents of these classifications;  Distinctions among the classes; and  Documentation of requirements and qualifications to assist in the recruitment and selection process. Just as there is a difference between a position and a class, there is also a difference between a position description and a class description. A position description, often known as a “desk manual”, generally lists each duty an employee performs and may also have information about how to perform that duty. A class description normally reflects several positions and is a summary document that does not list each duty performed by every employee. The class description, which is intended to be broader, more general and informational, is intended to indicate the general scope and level of responsibility and requirements of the class, not detail‐ specific position responsibilities. The sections of each class description are as follows: Title: This should be brief and descriptive of the class and consistent with other titles in the classification plan and the occupational area.  The title of a classification is normally used for organization, classification, and compensation purposes within the HWMA. Often working titles are used within a department to differentiate an individual. All positions have a similar level of scope and

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responsibility; however, the working titles may give assurance to a member of the public that they are dealing with an appropriate individual. Working titles should be authorized by Human Resources to ensure consistency within the HWMA and across departmental lines. Definition: This provides a capsule description of the job and should give an indication of the type of supervision received, the scope and level of the work and any unusual or unique factors. The phrase “performs related work as required” is not meant to unfairly expand the scope of the work performed, but to acknowledge that jobs change and that not all duties are included in the class specification. Supervision Received and Exercised: This section specifies which class or classes provide supervision to the class being described and the type and level of work direction or supervision provided to this class. The section also specifies what type and level of work direction or supervision the class provides to other classes. This assists the reader in defining where the class “fits” in the organization and alludes to possible career advancement opportunities. Class Characteristics: This can be considered the “editorial” section of the specification, slightly expanding the Definition, clarifying the most important aspects of the class and distinguishing this class from the next higher‐level in a class series or from a similar class in a different occupational series. Examples of Typical Job Functions: This section provides a list of the major and typical duties, intended to define the scope and level of the class and to support the Qualifications, including Knowledge and Skills. This list is meant to be illustrative only. It should be emphasized that the description is a summary document, and that duties change depending upon program requirements, technology, and organizational needs. Qualifications: This element of the description has several sections:  A listing of the job‐related knowledge and skills required to successfully perform the work. They must be related to the duties and responsibilities of the work and capable of being validated under the Equal Employment Opportunity Commission’s Uniform Guidelines on Selection Procedures. Knowledge (intellectual comprehension) and Abilities (acquired proficiency) should be sufficiently detailed to provide the basis for selection of qualified employees.  A listing of educational and experience requirements that outline minimum and alternative ways of gaining the knowledge and abilities required for entrance into the selection process. These elements are used as the basic screening technique for job applicants.  Licenses and/or certifications identify those specifically required in order to perform the work. These certifications are often required by an agency higher than the HWMA (i.e., the State), and can therefore be appropriately included as requirements. Physical Demands: This section identifies the basic physical abilities required for performance of the work. These are not presented in great detail (although they are more specifically covered for documentation purposes in the PDQs) but are designed to indicate the type of pre‐

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employment physical examination (lifting requirements and other unusual characteristics are included, such as “finger dexterity needed to access, enter, and retrieve data using a computer keyboard”) and to provide an initial basis for determining reasonable accommodation for ADA purposes. Working Conditions: These can describe certain outside influences and circumstances under which a job is performed; they give employees or job applicants an idea of certain risks involved in the job and what type of protective gear may be necessary to perform the job. Examples are loud noise levels, cold and/or hot temperatures, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and other job conditions. Fair Labor Standards Act One of the major components of the job analysis and classification review is the determination of each classification’s appropriate Fair Labor Standards Act (FLSA) status, i.e., exempt vs. non‐ exempt from the FLSA overtime rules and regulations. As we review position description questionnaires and notes from the interviews, we analyze each classification’s essential functions to determine FLSA status. There are three levels for the determination of the appropriate FLSA status that are utilized and on which we base our recommendations. Below are the steps used for the determination of Exempt FLSA status. Salary Basis Test: The incumbents in a classification are paid at least $684 per week ($35,568 per year), not subject to reduction due to variations in quantity/quality of work performed. Note: computer professionals’ salary minimum is defined in hourly terms as $46.55 per hour. Exemption Applicability: The incumbents in a classification perform any of the following types of jobs:  Executive: Employee whose primary duty is to manage the business or a recognized department/entity and who customarily directs the work of two or more employees. This also includes individuals who hire, fire, or make recommendations that carry particular weight regarding employment status. Examples: executive, director, owner, manager, supervisor.  Administrative: Employee whose primary activities are performing office work or non‐ manual work on matters of significance relating to the management or business operations of the firm or its customers and which require the exercise of discretion and independent judgment. Examples: coordinator, administrator, analyst, accountant.  Professional: Employee who primarily performs work requiring advanced knowledge/education and which includes consistent exercise of discretion and independent judgment. The advanced knowledge must be in a field of science or learning acquired in a prolonged course of specialized intellectual instruction. Examples: attorney, physician, statistician, architect, biologist, pharmacist, engineer, teacher.  Computer professional: Employee who primarily performs work as a computer systems analyst, programmer, software engineer or similarly skilled work in the computer field performing a) application of systems analysis techniques and procedures, including consulting with users to determine hardware, software, or system functional

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specifications; b) design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specification; or c) design, documentation, testing, creation or modification of computer programs based on and related to user or system design specifications; or a combination of the duties described above, the performance of which requires the same level of skills. Examples: system analyst, database analyst, network architect, software engineer, programmer. Job Analysis: A thorough job analysis of the job duties must be performed to determine exempt status. An exempt position must pass both the salary basis and duties tests. The job analysis should include:  Review of the minimum qualifications established for the job;  Review of prior class descriptions, questionnaires, and related documentation;  Confirmation of duty accuracy with management; and  Review and analysis of workflow, organizational relationships, policies, and other available organizational data. Non‐exempt classifications work within detailed and well‐defined sets of rules and regulations, policies, procedures, and practices that must be followed when making decisions. Although the knowledge base required to perform the work may be significant, the framework within which incumbents work is fairly restrictive and finite. (Please note that FLSA does not allow for the consideration of workload and scheduling when it comes to exemption status). Finally, often times a classification performs both non‐exempt and exempt duties, so we analyze time spent on each type of duties. If a classification performs mostly non‐exempt duties (i.e. more than 50% of his or her time), then the classification would be considered non‐exempt. CLASSIFICATION FINDINGS AND RECOMMENDATIONS Classification Structure and Allocation Factors The proposed classification changes provides the related positions with a classification structure based on the interrelationship between duties performed, the nature and level of responsibilities, and other work‐related requirements of the jobs. A classification plan is not a stable, unchanging entity. Classification plans may be updated and revised by conducting classification studies that are organizational wide (review of the all classifications and positions) or position‐specific. The methodology used for both types of studies is the same, as outlined above. For either type of study, when identifying appropriate placement of new and/or realigned positions within the classification structure, there are general allocation factors to consider. By analyzing these factors, the HWMA will be able to change and grow the organization while maintaining the classification plan.

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1. Type and Level of Knowledge and Skill Required This factor defines the level of job knowledge and skill, including those attained by formal education, technical training, on‐the job experience, and required certification or professional registration. The varying levels are as follows: A. The entry‐level into any occupational field This entry‐level knowledge may be attained by obtaining a high school diploma, completing specific technical course work, or obtaining a four‐year or advanced college or university degree. Little to no experience is required. B. The experienced or journey‐level (fully competent‐level) in any occupational field This knowledge and skill level recognizes a class that is expected to perform the day‐to‐ day functions of the work independently, but with guidelines (written or oral) and supervisory assistance available. This level of knowledge is sufficient to provide on‐the‐ job instruction to a fellow employee or an assistant when functioning in a lead capacity. Certifications may be required for demonstrating possession of the required knowledge and skills. C. The advanced level in any occupational field This knowledge and skill level is applied in situations where an employee is required to perform or deal with virtually any job situation that may be encountered. Guidelines may be limited and creative problem solving may be involved. Supervisory knowledge and skills are considered in a separate factor and should not influence any assessment of this factor. 2. Supervisory/Management Responsibility This factor defines the staff and/or program management responsibility, including short and long‐range planning, budget development and administration, resource allocation, policy and procedure development, and supervision and direction of staff. A. No ongoing direction of staff The employee is responsible for the performance of his or her own work and may provide side‐by‐side instruction to a co‐worker. B. Lead direction of staff or program coordination The employee plans, assigns, directs, and reviews the work of staff performing similar work to that performed by the employee on a day‐to‐day basis. Training in work procedures is normally involved. If staff direction is not involved, the employee must have responsibility for independently coordinating one or more programs or projects on a regular basis. C. Full first‐line supervisor The employee performs the supervisory duties listed above, and, in addition, makes effective recommendation and/or carries out selection, performance evaluation, and

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disciplinary procedures. If staff supervision is not involved, the employee must have programmatic responsibility, including development and implementing goals, objectives, policies and procedures, and budget development and administration. D. Manager The employee is considered management, often supervising through subordinate levels of supervision. In addition to the responsibilities outlined above, responsibilities include allocating staff and budget resources among competing demands and performing significant program and service delivery planning and evaluation. This level normally reports to the Executive Director. E. Executive Management The employee has total administrative responsibility for the HWMA and reports to the Board of Directors. 3. Supervision Received A. Direct Supervision Direct supervision is usually received by entry‐level employees and trainees, i.e., employees who are new to the organization and/or position they are filling. Initially under close supervision, incumbents learn to apply concepts and work procedures and methods in assigned area of responsibility to resolve problems of moderate scope and complexity. Work is usually supervised while in progress and fits an established structure or pattern. Exceptions or changes in procedures are explained in detail as they arise. As experience is gained, assignments become more varied and are performed with greater independence. B. General Supervision General supervision is usually received by the experienced and journey‐level employees, i.e., employees who have been in a position for a period of time and have had the opportunity to be trained and learn most, if not all, duties and responsibilities of the assigned classification. Incumbents are cross‐trained to perform the full range of technical work in all of the areas of assignment. At the experienced‐level, positions exercise some independent discretion and judgment in selecting and applying work procedures and methods. Assignments and objectives are set for the employee and established work methods are followed. Incumbents have some flexibility in the selection of steps and timing of work processes. Journey‐level positions receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of assigned projects, programs, and team(s). Assignments are given with general guidelines and incumbents are responsible for establishing objectives, timelines, and methods to deliver work products. Work is typically reviewed upon completion for soundness, appropriateness, and conformity to policy and requirements, and the methodology used in arriving at the end results are not reviewed in detail.

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C. General Direction General direction is usually received by senior level or management positions. Work assignments are typically given as broad, conceptual ideas and directives and incumbents are accountable for overall results and responsible for developing guidelines, action plans, and methods to produce deliverables on time and within budget. D. Administrative and Policy Direction Administrative direction is usually received by executive management classifications. The incumbent is accountable for accomplishing HWMA‐wide planning and operational goals and objectives within legal and general policy and regulatory guidelines. The incumbent is responsible for the efficient and economical performance of the organization’s operations. 4. Problem Solving This factor involves analyzing, evaluating, reasoning, and creative thinking requirements. In a work environment, not only the breadth and variety of problems are considered, but also guidelines, such as supervision, policies, procedures, laws, regulations, and standards available to the employee. A. Structured problem solving Employees learn to apply concepts and work procedures and methods in assigned area of responsibility and to resolve problems and issues that are specific, less complex, and/or repetitive. Exceptions or changes in procedures are explained in detail as they arise. B. Independent, guided problem solving Work situations require making independent decisions among a variety of alternatives; however, policies, procedures, standards, and regulations and/or management are available to guide the employee towards problem resolution. C. Application of discriminating choices Work situations require independent judgment and decision‐making authority when identifying, evaluating, adapting, and applying appropriate concepts, guidelines, references, laws, regulations, policies, and procedures to resolve diverse and complex problems and issues. D. Creative, evaluative, or critical thinking The work involves a high‐level of problem‐solving requiring analysis of unique issues or increasingly complex problems without precedent and/or structure and formulating, presenting, and implementing strategies and recommendations for resolution. 5. Authority for Making Decisions and Taking Action This factor describes the degree to which employees have the freedom to take action within their job. The variety and frequency of action and decisions, the availability of policies, procedures,

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laws, and supervisory or managerial guidance, and the consequence or impact of such decisions are considered within this factor. A. Direct, limited work responsibility The employee is responsible for the successful performance of his or her own work with little latitude for discretion or decision‐making. Work is usually supervised while in progress and fits an established structure or pattern. Direct supervision is readily available. B. Decision‐making within guidelines The employee is responsible for the successful performance of their own work, but able to prioritize and determine methods of work performance within general guidelines. Supervision is available, although the employee is expected to perform independently on a day‐to‐day basis. Emergency or unusual situations may occur, but are handled within procedures and rules. Impact of decisions is normally limited to the work unit, project, or program to which assigned. C. Independent action with focus on work achieved The employee receives assignments in terms of long‐term objectives, rather than day‐to‐ day or weekly timeframes. Broad policies and procedures are provided, but the employee has latitude for choosing techniques and deploying staff and material resources. Impact of decisions may have significant program or HWMA‐wide service delivery and/or budgetary impact. D. Decisions made within general policy or elected official guidance The employee is subject only to the policy guidance of elected officials and/or broad regulatory or legal constraints. The ultimate authority for achieving the goals and objectives of the HWMA are with this employee. 6. Interaction with Others This factor includes the nature and purpose of contacts with others, from simple exchanges of factual information to the negotiation of difficult issues. It also considers with whom the contacts are made, from co‐workers and the public to elected or appointed public officials. A. Exchange of factual information The employee is expected to use ordinary business courtesy to exchange factual information with co‐workers and the public. Strained situations may occasionally occur, but the responsibilities are normally not confrontational. B. Interpretation and explanation of policies and procedures The employee is required to interpret policies and procedures, apply and explain them, and influence the public or others to abide by them. Problems may need to be defined and clarified and individuals contacted may be upset or unreasonable. Contacts may also be made with individuals at all levels throughout the HWMA.

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C. Influencing individuals or groups The employee is required to interpret laws, policies, and procedures to individuals who may be confrontational or to deal with members of professional, business, community, or other groups or regulatory agencies as a representative of the HWMA. D. Negotiation with organizations from a position of authority The employee often deals with Board, elected officials, government agencies, and other outside agencies, and the public to advance and represent the priorities and interests of the HWMA, provide policy direction, and/or negotiate solutions to difficult problems. 7. Working Conditions/Physical Demands This factor includes specific physical, situational, and other factors that influence the employee’s working situation. A. Normal office or similar setting The work is performed in a normal office or similar setting during regular office hours (occasional overtime may be required but compensated for). Responsibilities include meeting standard deadlines, using office and related equipment, lifting materials weighing up to 25 pounds, and communicating with others in a generally non‐stressful manner. B. Varied working conditions with some physical or emotional demands The work is normally performed indoors, but may have some exposure to noise, heat, weather, or other uncomfortable conditions. Stand‐by, call back, or regular overtime may be required. The employee may have to meet frequent deadlines, work extended hours, and maintain attention to detail at a computer or other machinery, deal with difficult people, or regularly perform moderate physical activity. C. Difficult working conditions and/or physical demands The work has distinct and regular difficult demands. Shift work (24‐7 or rotating) may be required; there may be exposure to hazardous materials or conditions; the employee may be subject to regular emergency callback and extended shifts; and/or the work may require extraordinary physical demands. Based on the above factors, in the maintenance of the classification plan when an employee is assigned an additional duty or responsibility and requests a change in classification, it is reasonable to ask:  What additional knowledge and skills are required to perform the duty?  How does one gain this additional knowledge and skills – through extended training, through a short‐term seminar, through on‐the‐job experience?  Does this duty or responsibility require new or additional supervisory responsibilities?  Is there a greater variety of or are there more complex problems that need to be solved as a result of the new duty?

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 Does the employee have to make a greater variety of or more difficult decisions as a result of this new duty?  Are the impacts of decisions greater because of this new duty (effects on staff, budget, agency‐wide activities, and/or relations with other agencies)?  Are guidelines, policies, and/or procedures provided to the employee for the performance of this new duty?  Is the employee interacting with internal and external stakeholders others more frequently or for a different purpose as a result of this new assignment?  Have the working or physical conditions of the job changed as a result of this new assignment? The analysis of the factors outlined above, as well as the answers to these questions, were used to determine recommended classifications for the studied HWMA employees. The factors above will also help to guide the placement of specific positions to the existing classification structure and/or revision of entire classification structure in the future. Classification Recommendations All studied class descriptions were updated in order to ensure that the format is consistent, and that the duties and responsibilities are current and properly reflect the required knowledge, abilities, and skills. Title Change The other change in the classification plan, as noted above, was the title change for three classifications. Table 1. Title Change Recommendations Current Classification Title Proposed Classification Title Director of Finance and Administrative Administrative Services Director Services Lead Operator Materials Diversion Technician III Operator Technician Materials Diversion Technician II Utility Worker Materials Diversion Technician I

Title changes are recommended to more clearly reflect the level and scope being performed, to consolidate work into broader categories that could be used agency ‐wide, as well as establish consistency with the labor market and industry standards. Any compensation recommendations (detailed in Volume II) are not dependent upon a new title, but upon the market value as defined by job scope, level and responsibilities, and the qualifications required for successful job performance. These recommendations are based on the concept changes for the classification where the movement through the series is driven by a higher skill set, competency in the full range of duties,

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the ability to operate more complex equipment, and is based on meeting the minimum qualifications and is not based upon a competitive promotion. CONCLUSION The revised classification descriptions serve as a general description of the work performed and provide a framework of the expectations of each position for the employee. Requests for the addition of new positions and classifications and/or reclassification of an existing position should follow established HWMA policies and procedures. Any decisions related to the addition of new positions and classifications, reclassification of an existing position, and promotion of an existing position will depend on the needs and resources of the HWMA and the availability of work, as well as the ability of existing positions to meet the qualifications of and perform the duties of the higher‐level class. Finally, as mentioned previously, a classification plan is not a static, unchanging entity. The classification plan should be reviewed on a regular, on‐going basis and may be amended or revised as required. It has been a pleasure working with HWMA on this critical project. Please do not hesitate to contact us if we can provide any additional information or clarification regarding this report.

Respectfully submitted by, Koff & Associates

Katie Kaneko President

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Appendix I

New Classification Descriptions

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August 2019 (insert approval date) FLSA: Exempt HUMBOLDT WASTE MANAGEMENT AUTHORITY

ADMINISTRATIVE SERVICES DIRECTOR

DEFINITION

Under administrative direction, plans, organizes, manages, and provides administrative direction and oversight for all functions and activities of the Authority’s finance, budgeting, accounting, human resources, risk management, and information technology; assists with functions and activities of the Authority Clerk, including administration, the legislative function, archiving of public records and public information, and filing officer services; oversees and formulates organizational policies, goals, and directives; coordinates assigned activities with other Authority divisions, officials, outside agencies, and the public; fosters cooperative working relationships among Authority divisions and with intergovernmental and regulatory agencies, and various public and private groups; provides highly responsible and complex professional assistance to the Executive Director in areas of expertise; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED

Receives administrative direction from the Executive Director. Exercises direct supervision over supervisory, professional, and support staff through subordinate levels of supervision.

CLASS CHARACTERISTICS

This is a division director classification that oversees, directs, and participates in all Administrative Services activities, including short- and long-term divisional planning as well as development and administration of divisional policies, procedures, and services. This class provides assistance to the Executive Director in a variety of administrative, coordinative, analytical, and liaison capacities. Successful performance of the work requires knowledge of public policy, Authority functions and activities, including the role of the Authority Board, and the ability to develop, oversee, and implement approved projects and programs in a variety of areas. Responsibilities include coordinating the activities of the division with those of other divisions and outside agencies and managing and overseeing the complex and varied functions of the division. The incumbent is accountable for accomplishing divisional planning and operational goals and objectives, and for furthering Authority goals and objectives within general policy guidelines.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only) Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.

 Recommends, directs, and coordinates the implementation of goals, objectives, policies, procedures, and work standards for the division; establishes, within Authority policy, appropriate budget, service, and staffing levels.  Assumes management responsibility for Finance programs, services, and activities including budget management, accounting and financial reporting, treasury and revenue management, purchasing and accounts payable, payroll, and capital improvements.  Analyzes and reconciles expenditure and revenue accounts, verifying availability of funds and classification of expenditures; researches and analyzes transactions to resolve problems; prepares monthly and year-end journal vouchers for a wide variety of financial programs.

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 Serves as the Authority’s principal budget officer; coordinates the development and administration of the Authority’s budget; assists with budget forecasting; reviews and controls programs and projects to ensure cost effectiveness; prepares and updates cash flow and projections.  Participates in the preparation of audit schedules and reports for external auditors during the annual auditing process.  Serves as public records coordinator; ensures compliance with the Public Records Act, the Freedom of Information Act, and the Brown Act; reviews and monitors legal requests for records; ensures that all public records are open to inspection at all times during office hours and that every person’s right to inspect any public record of the Authority is upheld.  Assists the Authority Clerk of the Board; attends meetings and oversees the recording of all official proceedings; supervises the preparation of public notifications, agendas, minutes, and other documents; directs the publication, filing, indexing, and safekeeping of all proceedings of the Board.  Participates in development and implementation of Authority policies and administrative regulations pertaining to human resources; ensures compliance with Federal and State laws and Board policies related to personnel management and employer/employee relations.  Oversees the administration of the Authority’s employee benefits program including employee health and medical programs, workers’ compensation, risk management, and retirement programs.  Plans, coordinates, and implements recruitment, examination, and selection processes; oversees the Authority’s equal employment process for protected groups.  Oversees the development, modification, and implementation of the Authority’s Information Technology strategic plans, processes, and procedures; investigates, evaluates and oversees administration of new applications and hardware/software upgrades related to all computer technology and the internet and intranet.  Plans, manages, and oversees the daily functions, operations, and activities of the risk management programs, including general insurance claims management and workers’ compensation.  Selects, trains, motivates, and directs division personnel; evaluates and reviews work for acceptability and conformance with division standards, including program and project priorities and performance evaluations; works with employees to correct deficiencies; implements discipline and termination procedures; responds to staff questions and concerns.  Contributes to the overall quality of the division’s service by developing, reviewing, and implementing policies and procedures to meet legal requirements and Authority needs; continuously monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures; assesses and monitors the distribution of work, support systems, and internal reporting relationships; identifies opportunities for improvement; directs the implementation of change.  Monitors legal, regulatory, technology, and societal changes and court decisions that may affect the work of the division; determines equipment acquisition, training programs, and procedural changes to ensure retention of qualified staff and the provision of services to the community in an effective, efficient, and economical manner.  Develops consultant requests for proposals for professional services and executes the advertising and bid process; evaluates proposals and recommends project award; coordinates with legal counsel to determine Authority needs and requirements for contractual services; administers contracts and agreements related to the assigned areas of responsibility.  Monitors and provides for financial forecasting and planning and analysis on Authority financial conditions.  Serves as Authority Treasurer including creating and maintaining investment policies, executing investment transactions, and managing investment portfolio; oversees and approves all transactions related to Authority investments.  Represents the division to other Authority divisions, elected officials, and outside agencies; explains and interprets divisional programs, policies, and activities; negotiates and resolves significant and controversial issues.  Conducts a variety of divisional organizational and operational studies and investigations; recommends modifications to programs, policies, and procedures as appropriate.

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 Attends and participates in professional group meetings; stays abreast of new trends and innovations in the areas of responsibility.  Directs the maintenance of working and official divisional files.  Prepares, reviews, and presents staff reports, various management and information updates, and reports on special projects as assigned by the Authority’s Executive Director.  Responds to public inquiries and complaints and assists with resolutions and alternative recommendations.  Performs related duties as assigned.

QUALIFICATIONS

Knowledge of:  Administrative principles and practices, including goal setting, program development, implementation, and evaluation, and supervision of staff, either directly or through subordinate levels of supervision.  Principles and practices of governmental accounting and auditing and finance administration, including budgeting, cash management, debt management, and investment management.  Principles and practices of contract management.  Principles, practices, and techniques of public human resources administration, including recruitment and selection, labor and employee relations, employee training and development, performance management, classification and compensation, and benefits administration.  Principles, practices, and procedures of public administration in a municipal setting.  Principles and practices of effective risk management programs, including basic regulatory and legal requirements.  Functions, authority, responsibilities, and limitations of an elected Authority Board.  Principles, practices, and procedures related to public agency record keeping.  Technical, legal, financial, and public relations problems associated with the management of finance programs.  Applicable Federal, State, and local laws, rules, regulations, ordinances, and organizational policies and procedures relevant to assigned area of responsibility, including Public Records Act, the Freedom of Information Act, and the Brown Act.  Methods and techniques of developing technical and administrative reports and business correspondence.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and Authority staff.  The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.  Modern equipment and communication tools used for business functions and program, project, and task coordination.  Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:  Develop and implement goals, objectives, practices, policies, procedures, and work standards.  Provide administrative and professional leadership for the division.  Prepare and administer budgets; allocate limited resources in a cost-effective manner.  Interpret, apply, explain, and ensure compliance with federal, state, and local policies, procedures, laws, and regulations.  Plan, organize, direct, and coordinate the work of management, supervisory, professional, and technical personnel; delegate authority and responsibility.  Select and supervise staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance in an objective and positive manner.  Research, analyze, and evaluate new service delivery methods, procedures, and techniques.

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 Effectively administer programs and projects with contractual agreements and ensure compliance with contractual obligations.  Analyze financial reports.  Effectively represent the Authority and the division in meetings with governmental agencies, contractors, vendors, and various businesses, professional, regulatory, and legislative organizations.  Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Conduct research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.  Direct the establishment of filing, record keeping, and tracking systems.  Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.  Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.  Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.  Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience: Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to a bachelor’s degree from an accredited college or university with major coursework in accounting, finance, business or public administration, or a related field and five (5) years of progressively responsible management and/or administrative experience in finance, accounting, and/or auditing.

Licenses and Certifications:  None.

PHYSICAL DEMANDS Must possess mobility to work in a standard office setting and use standard office equipment, including a computer and to operate a motor vehicle and to visit various Authority and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

ENVIRONMENTAL CONDITIONS

Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing divisional policies and procedures.

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August 2019 (insert approval date) FLSA: Non-Exempt HUMBOLDT WASTE MANAGEMENT AUTHORITY

MATERIALS DIVERSION TECHNICIAN I/II/III

DEFINITION

Under direct or general supervision, performs a variety of duties related to operational support and maintenance including load checking, salvage and recycling, dismantling appliances, and stormwater activities; uses and operates a variety of tools and light to heavy equipment; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED

Receives direct or general supervision from assigned supervisory personnel. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS

Materials Diversion Technician I: This is the entry-level classification in the diversion maintenance series. Initially under close supervision, incumbents with basic maintenance experience learn the use of tools, equipment, and a wide variety of practices and procedures involved in the operation and maintenance of disposal facilities. As experience is gained, assignments become more varied and are performed with greater independence. Positions at this level usually perform most of the duties required of the positions at the II level but are not expected to function at the same skill level and usually exercise less independent discretion and judgment in matters related to work procedures and methods. Work is usually supervised while in progress and fits an established structure or pattern. Exceptions or changes in procedures are explained in detail as they arise.

Materials Diversion Technician II: This is the journey-level class in the diversion maintenance series that performs the full range of duties required to ensure that materials diversion facilities are maintained in a safe and effective working condition and provides safety for public and Authority use. Responsibilities include inspecting and attending to assigned areas in a timely manner and performing a wide variety of tasks in the maintenance and repair of assigned facilities and systems. Positions at this level are distinguished from the I by the performance of the full range of duties as assigned, working independently, and exercising judgment and initiative. Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the assignments. This class is distinguished from the Supervisor in that the latter is responsible for providing technical and functional supervision and direction to lower-level maintenance staff and performs the most complex duties assigned to the series.

Materials Diversion Technician III: This is the advanced journey-level class in the diversion maintenance series that performs the full range of duties required to ensure that materials diversion facilities are maintained in a safe and effective working condition and provide the highest level of safety for public and Authority use. Responsibilities include complex heavy equipment operation including excavators and loaders in addition to performing a wide variety of tasks in the maintenance and repair of assigned facilities and systems. Positions at this level are distinguished from the II by the operation of more complex heavy equipment. Positions at this level receive only occasional instruction or assistance as new or unusual situations arise and are fully aware of the operating procedures and policies of the assignments. This class is distinguished from the Supervisor in that the latter is responsible for providing technical and functional

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Positions in the Materials Diversion Technician class series are flexibly staffed and positions at the higher level are normally filled by advancement from the lower level after gaining the knowledge, skill, and experience which meet the qualifications, after demonstrating the ability to perform the full range of work of the higher-level class, and meeting performance standards.

Some duties may be performed by positions at the entry (I) level in a learning capacity:  Monitors loads coming onto site; performs load inspections to ensure compliance with hazardous waste and other regulations; remove unpermitted waste.  Visually inspect and manually pull recyclable material such as tires, mattresses, wood, glass, metals from the tip floor and other areas; sort by type and deliver to appropriate location.  Directs and controls traffic; provides information to customers on safe unloading procedures; as assigned, separates private and commercial users to increase efficiency and safety; calms confused/angry customers.  Dismantles or processes freon and non-freon appliances.  Maintains and monitors landfill gas and leachate collection systems.  Assists in erosion control projects and site maintenance.  Assists in conducting environmental monitoring and sampling.  Operates and maintains a variety of light, medium, and heavy equipment related to materials diversion facilities such as a rail truck, baler, forklift, and front-end loaders.  Operates a variety of hand and power tools and equipment related to work assignment as instructed.  Observes safe work methods and makes appropriate use of related safety equipment as required.  Maintains public facilities, shop and garage areas, storage sites, and other work areas in a clean and orderly condition, including securing equipment at the close of the workday.  Assists customers; responds to requests and complaints from the public and answers questions or refers to supervisor, as necessary.  Maintains accurate logs and records of work performed and materials and equipment used.  Provides support at the landfill.  Responds to after-hours emergencies.  Performs related duties as assigned.

Materials Diversion Technician III In addition to above:  Operates and maintains heavy equipment related to facilities such as an excavator, skid steer, and multiple classes of front-end loader.  Provides needed information and demonstrations concerning how to perform certain work tasks to new employees in the same or similar class of positions, which may include conducting safety meetings.  Provides administrative and staff assistance to supervisor including purchasing, shipping, coordinating transportation, form completion and other necessary paperwork, and compilation of data for special projects.

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QUALIFICATIONS Some knowledge, skills, and abilities may be performed by positions at the entry (I) level in a learning capacity: Knowledge of:

 Maintenance principles, practices, tools, and materials for maintaining landfill facilities and landscapes, including rodent control and weed abatement.  The operation and minor maintenance of a variety of hand and power tools, vehicles and power equipment.  Basic traffic control procedures and traffic sign regulations.  Safety equipment and practices related to the work, including the handling of hazardous materials.  Safe driving rules and practices.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and Authority staff.  The structure and content of the English language to effectively perform the work.

Ability to:

 Perform maintenance on disposal facilities and equipment.  Operate specialized equipment related to assigned work.  Ensure optimal traffic flow related to operations.  Set up and operate traffic area construction zones, including cones, barricades and flagging.  Respond to Hazardous Waste spills in accordance with spill response procedures.  Safely and effectively use and operate hand tools, mechanical equipment, and power tools and equipment required for the work.  Maintain accurate logs, records and basic written reports of work performed.  Follow department policies and procedures related to assigned duties.  Understand and follow oral and written instructions.  Effectively communicate in person.  Establish and maintain effective working relationships with those contacted in the course of work.

In addition to above at the Materials Diversion Tech III:  Operate complex specialized heavy equipment related to assigned work.  Provides administrative and staff assistance to the supervisor including purchasing, shipping, transportation coordination, compilation of data for special projects, completion of forms and other operational paperwork.

Materials Diversion Technician I/II: Equivalent to the completion of the twelfth (12th) grade.

Materials Diversion Technician II: Two (2) years of experience performing diversion maintenance and equipment operation activities in a materials transfer, landfill, and recycling operations equivalent to that of the Materials Diversion Technician I at HWMA.

Materials Diversion Technician III: Six (6) years of experience performing diversion maintenance and experience with complex heavy equipment operation activities in a materials transfer, landfill, and recycling operations equivalent to that of the Materials Diversion Technician II at HWMA.

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Licenses and Certifications:

 Possession of a valid California class C driver’s license with satisfactory driving record acceptable for insurability within six (6) months of hire.  Must pass forklift proficiency test within three (3) months of hire.

Materials Diversion Technician II:  Possession of a twenty-four (24) hour HAZWOPER certification within six months.  Possession of an Environmental Protection Agency (EPA) refrigerant handling certificate.  Must pass front end loader proficiency testing prior to advancement.

Materials Diversion Technician III:  Must pass excavator and tractor-trailer proficiency testing prior to advancement.

PHYSICAL DEMANDS

Must possess mobility to work in the field; strength, stamina, and mobility to perform medium to heavy physical work, to work around machines, to climb and descend ladders, to operate varied hand and power tools and c equipment, and to operate a motor vehicle and visit various Authority sites; vision to read printed materials and inspect materials; and hearing and speech to communicate in person and over the telephone or radio. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards. Finger dexterity is needed to operate above-mentioned tools and equipment. Positions in this classification bend, stoop, kneel, reach, and climb to perform work and inspect work sites. Employees must possess the ability to lift, carry, push and pull materials and objects weighing up to 75 pounds, or heavier weights with the use of proper equipment.

ENVIRONMENTAL CONDITIONS

Employees work in the field and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes. Employees may interact with upset public in enforcing policies and procedures.

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January 31, 2020

Compensation Study

Final Report

Humboldt Waste Management Authority

KOFF & ASSOCIATES

KATIE KANEKO President 2835 Seventh Street Berkeley, CA 94710 www.KoffAssociates.com [email protected] Tel: 510.658.5633 Fax: 510.652.5633

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January 30, 2020

Ms. Jill Duffy, Executive Director 1059 West Hawthorne Eureka, CA 95501

Dear Ms. Duffy: Koff & Associates is pleased to present the Compensation Study Final Report to the Humboldt Waste Management Authority (“Authority”). This report documents the market compensation survey methodology, findings, and recommendations for implementation. We would like to thank you and Tyler Egerer for your assistance and cooperation without which this study could not have been brought to its successful completion. We will be glad to answer any questions or clarify any points as you are implementing the findings and recommendations. It was a pleasure working with the Authority and we look forward to future opportunities to provide you with professional assistance.

Very truly yours,

Katie Kaneko President

2835 Seventh Street, Berkeley, California 94710 | 510.658.5633 | www.KoffAssociates.com

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 Background ...... 1 Summary of Findings ...... 1 STUDY PROCESS ...... 2 Benchmark Classifications ...... 2 Comparator Agencies ...... 2 Cost of Labor Differential ...... 4 Salary and Benefits Data ...... 5 Data Collection ...... 7 Matching Methodology ...... 7 Data Spreadsheets ...... 8 MARKET COMPENSATION FINDINGS ...... 9 Summary of Findings ...... 10 INTERNAL SALARY RELATIONSHIPS ...... 10 RECOMMENDATIONS ...... 11 Pay Philosophy ...... 11 Proposed Salary Structure ...... 12 Proposed Salary Range Placements ...... 12 USING THE MARKET DATA AS A TOOL ...... 13

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LIST OF TABLES

Table 1. Benchmark Classification ...... 2 Table 2. Comparator Agencies ...... 3 Table 3. Cost of Labor Differential ...... 4 Table 4. Total Monthly Market Compensation Results Summary ...... 9

APPENDICES

Appendix I: Results Summary Appendix II: Market Compensation Findings Appendix III: Salary Range Placement Recommendations Appendix IV: Proposed Salary Schedule

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EXECUTIVE SUMMARY Background Beginning in October 2019, Koff & Associates (“K&A”) conducted a Compensation Study for the Humboldt Waste Management Authority (“Authority”). All compensation findings and recommendations are presented in this report. This compensation review process was precipitated by:  Annual tiered State Minimum Wage are resulting in on‐going loss of competitive wage for entry level positions and existing salary structure will not meet minimum wage requirements by January 2021.  The Authority’s desire to ensure that the incumbents in the studied positions were appropriately compensated.  The desire to have a compensation plan that can meet the needs of the Authority; and  The desire to ensure that internal relationships of salaries are based upon objective, non‐ quantitative evaluation factors, resulting in equity across the Authority. The goals of the compensation study are to assist the Authority in developing a competitive pay plan, which is based upon market data, and to ensure that the plan is fiscally responsible and meets the needs of the Authority with regards to recruitment and retention of qualified staff. Summary of Findings This report summarizes the study methodology, analytical tools, and the compensation (salary and additional benefits) survey findings. The results of the compensation study showed:  The Authority’s base salary data, overall, in comparison to the market median is below the market by 15.9%. One classification was above market, eleven were below market, and three classifications had insufficient data.  The Authority’s total compensation data, overall, in comparison to the market median are below the market by 3.6%. Four classifications are above market, eight were below market, and three classifications had insufficient data.  The influence of benefits on compensation was that it put the Authority in a more competitive position, therefore future salary recommendations will be based on total compensation median.  K&A considers a classification falling within 5% of the median to be competitive.

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STUDY PROCESS Benchmark Classifications

Classifications that we would expect to provide a sufficient sample for analysis were selected as “benchmarks” to use as the basis to build the compensation plan. Fifteen (15) classifications were selected and salary and benefits data were collected for each within the surveyed agencies. Benchmark classifications are those classifications that are compared to the surveyed agency, and these classifications are used as a means of anchoring the Authority’s overall compensation plan. The 15 benchmark classifications are listed in Table 1.

Table 1. Benchmark Classification Classification Title 1. Account Clerk II 2. Administrative Services Director 3. CRV Specialist/Scale Attendant 4. Director of Environmental Health and Safety 5. Director of Operations 6. Executive Director 7. Hazardous Waste Technician II 8. Health and Safety Coordinator II 9. Landfill Supervisor 10. Materials Diversion Technician III (Lead Operator) 11. Materials Diversion Technician II (Operator Technician) 12. Operations Supervisor 13. Program Analyst II 14. Scale Attendant 15. Scalehouse Supervisor

Comparator Agencies Another important step in conducting a market salary study is the determination of appropriate agencies for comparison. Typically, an agency considers the following factors when selecting a group of comparator agencies. 1. Organizational type and structure – It is generally recommended that agencies of a similar size and providing similar services to that of the Authority be used as comparators.

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When it comes to technical classes, the size of an organization is not as critical, as these classes perform fairly similar work. The difference in size of an organization becomes more important when comparing classes at the management level. The scope of work and responsibility for management becomes much larger as an organization grows. When it is difficult to find agencies that are similarly sized, it is important to get a good balance of smaller and larger agencies. 2. Similarity of population, staff, and operational budgets – These elements provide guidelines in relation to resources required (staff and funding) and available for the provision of services. 3. Scope of services provided – For the majority of classifications, it is important to select agencies providing similar services. Organizations providing the same services are ideal for comparators and most comparator agencies surveyed provide similar services to the Authority. 4. Labor market and geographic location – In the reality that is today’s labor market, many agencies are in competition for the same pool of qualified employees. No longer do individuals necessarily live in the communities they serve. The geographic labor market area, where the Authority may be recruiting from or losing employees to, was taken into consideration when selecting comparator organizations. Furthermore, by selecting employers within a geographic proximity to the Authority, the resulting labor market data generally reflects the region’s cost of living, housing costs, growth rate, and other demographic characteristics to the same extent as competing employers to the Authority. All factors mentioned should be considered in selecting the group of comparator agencies. Due to significant regional differences in how waste management services are provided, our primary focus was on selecting comparators that provided similar services to HWMA resulting in a vast array of comparator agency types and structures. There was not a sufficient number of joint powers authority’s or special districts that provided the comparable waste management services, therefore we needed to survey other organizational types such as cities and counties and expand into other geographic regions. The following is the list of agencies we surveyed: Table 2. Comparator Agencies Agency 1. City of Oxnard* 2. City of Redding 3. City of Santa Cruz 4. City of Santa Maria 5. City of Watsonville 6. County of Sacramento 7. County of San Joaquin

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Agency 8. County of Santa Cruz 9. County of Stanislaus 10. County Sanitation Districts of Los Angeles County 11. Monterey Regional Waste Management District 12. Salinas Valley Solid Waste Authority

*The City of Oxnard did not respond to our requests for survey information. We have listed them on the survey data attachments as N/C (Non‐Comparable). Cost of Labor Differential Use of a broader geographic survey group, as was done in this study by the inclusion of agencies throughout the state of California, generally raises questions on the impact of the cost of living differences and while that is a factor for survey agency selection, it is not the most appropriate method to measure regional differences in wages. Cost of Living focuses on the difference in the cost of consumer goods including housing and therefore can fluctuate more dramatically between locations. Cost of Labor measures regional differences in wage trends and is a more effective measure in drawing a comparison between salaries. K&A lists the Cost of Labor differentials to be utilized by the Authority to provide more accurate wage comparisons. To accomplish this, we used databases from the Economic Research Institute (ERI), a nationally recognized provider of data with respect to differences in the costs of living and cost of labor in cities with a population of over 10,000. The Cost of Labor percentages reflect regional differences in wages and are relevant to making compensation decisions because the focus is on what other employers are paying within the region rather than the differences in the cost of consumer goods. For more detailed information on the ERI’s Geographic Assessor methodology, please refer to Attachment A. The cost of labor percentages are as follows: Table 3. Cost of Labor Differential Agency Cost of Labor Differential City of Redding 3.1% City of Santa Cruz 11.3% City of Santa Maria 11.5% City of Watsonville 10.8% County of Sacramento 9.1% County of San Joaquin 7.3% County of Santa Cruz 11.3%

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Agency Cost of Labor Differential County of Stanislaus 6.2% County Sanitation District of Los Angeles 13.4% Monterey Regional Waste Management District 13.9% Salinas Valley Solid Waste Authority 14.7%

The differentials indicate that the surveyed agencies pay, on average, 10.2% more than the Authority. For those agencies having a lower cost of labor than the Humboldt region, salaries were adjusted down by the differential percentages in order to ensure parity with the Authority. Salary and Benefits Data The last element requiring discussion prior to beginning a market survey is the specific benefit data that will be collected and analyzed. The following salary and benefits data were collected for each benchmark classification.

1. Monthly Base Salary The top of the salary range and/or control point. All figures are presented on a monthly basis.

2. Employee Retirement The retirement data reflects the benefits offered to classic employees, since this is the retirement tier that we will find differences between employers:  PERS Formula: The service retirement formula for each agency’s Classic plan. For agencies with retirement systems established under the County Employees Retirement Law of 1937 (“37 Act”), retirement formulas were converted to the equivalent PERS formula for purposes of comparison.  Enhanced Formula Cost: The baseline PERS formula is 2%@62. There is typically a cost to the employer for offering a formula with a higher benefit than the baseline formula. For each enhanced formula, the cost to the employer is based on a percentage range calculated by PERS. K&A took the midpoint of the range and multiplied the percentage by the top monthly salary to calculate the cost of the enhanced formula. The percentage value for each enhanced formula is: . 2%@60: midpoint of range = 1.5% . 2%@55: midpoint of range = 2.7% . 2.5%@55: midpoint of range = 4.9% . 2.7%@55: midpoint of range = 6.4% . 3%@60: midpoint of range = 7.4%  Employer Paid Member Contribution: The amount of the employee’s contribution to PERS that is paid by the employer (Employer Paid Member Contribution).

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 Single Highest Year: The period for determining the average monthly pay rate when calculating retirement benefits. The base period is 36 highest paid consecutive months. When final compensation is based on a shorter period of time, such as 12 months’ highest paid consecutive months, there is a cost to the employer. Similar to the enhanced formula, the cost to the employer is based on a percentage range calculated by PERS. K&A took the midpoint of the range and multiplied the percentage by the top monthly salary to calculate the cost of the final compensation.  Social Security: If an employer participates in Social Security, then the employer contribution of 6.2% of the base salary up to the federally‐determined maximum contribution of $687 per month was reported. Note that the maximum contribution rate is that of 2019 in order to be consistent with the timeframe during which data was collected. It should be noted that HWMA does not participate in social security.  Other: Any other retirement contributions made by the employer.

3. Deferred Compensation Deferred compensation contributions provided to all employees of a classification with or without requiring the employee to make a contribution is reported.

4. Insurances The employer paid premiums for an employee with family coverage was reported. The employer paid insurances included:  Cafeteria/Flexible Benefit Plan  Medical  Dental  Vision  Life and Accidental Death and Dismemberment (“AD&D”) Insurances  Long‐Term Disability Insurance  Short‐Term Disability Insurance  Other

5. Leaves Other than sick leave, which is usage‐based, the number of hours off for which the employer is obligated. All hours have been translated into direct salary costs.  Vacation: The number of paid time off (or vacation) hours available to all employees who have completed five years of employment.  Holidays: The number of holiday hours (including floating hours) available to employees.  Administrative: Administrative (or management) leave is normally the number of paid leave hours available to Fair Labor Standards Act (“FLSA”) Exempt and/or

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management to reward for extraordinary effort (in lieu of overtime). This leave category may also include personal leave which may be available to augment vacation or other time off.

6. Auto Allowance This category includes either the provision of an auto allowance or the provision of an auto for personal use only. If a vehicle is provided to any classification for commuting and other personal use, the average monthly rate is estimated at $450. Mileage reimbursement is not included.

All of the benefit elements are negotiated benefits provided to all employees in the classification. As such, they represent an ongoing cost for which an agency must budget. Other benefit costs, such as sick leave, tuition reimbursement, and reimbursable mileage are usage‐ based and cannot be quantified on an individual employee basis. Data Collection Data was collected during the months of October through December 2019, through comparator agency websites, conversations with human resources personnel, and careful review of agency documentation such as classification descriptions, memoranda of understanding, organization charts, and other documents. Matching Methodology K&A believes that the data collection step is the most critical for maintaining the overall credibility of any study and relied on the Authority’s classification descriptions as the foundation for comparison. When K&A researches and collects data from comparator agencies to identify possible matches for each of the benchmark classifications, sometimes comparable matches are not 100% similar to the classifications at the Authority. Therefore, K&A does not match positions from other agencies to Authority positions simply based upon job titles, which can often be misleading. K&A analyzes class descriptions from other agencies before a comparable match is determined. K&A’s methodology is to analyze each class description and the whole position by evaluating factors such as:  Definition and typical job functions;  Distinguishing characteristics;  Level within a class series (i.e., entry, experienced, journey, specialist, lead, etc.);  Reporting relationship structure (for example, manages through lower‐level staff);  Education and experience requirements;  Knowledge, abilities, and skills required to perform the work;  The scope and complexity of the work;  Independence of action/responsibility; 7

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 The authority delegated to make decisions and take action;  The responsibility for the work of others, program administration, and for budget dollars;  Problem solving/ingenuity;  Contacts with others (both inside and outside of the organization);  Consequences of action and decisions; and  Working conditions. In order for a match to be included, K&A requires that a classification’s “likeness” be at approximately 70% of the matched classification. When an appropriate match is not identified for one classification, K&A often uses “hybrids” which can be functional or represent a span in scope of responsibility. A functional hybrid means that the job of one classification at the Authority is performed by two or more classifications at a comparator agency. A “hybrid” representing a span in scope means that the comparator agency has one class that is “bigger” in scope and responsibility and one class that is “smaller,” where the Authority’s class falls in the middle. If an appropriate match could not be found, then no match was reported as a non‐comparable (N/C). Data Spreadsheets For each benchmark classification, there are four information pages:  Top Monthly Base Salary Data  Benefit Detail (monthly equivalent values)  Total Compensation Data The average (mean) and median (midpoint) of the comparator agencies are reported on the top monthly salary and total compensation data spreadsheets. The % above or below that the Authority is compared to the average and median is also reported. The mean is the sum of the comparator agencies’ salaries/total compensation divided by the number of matches. The median is the midpoint of all data with 50% of data points below and 50% of data points above. In order to calculate the mean and median, K&A requires that there be a minimum of four (4) comparator agencies with matching classifications to the benchmark classification. The reason for requiring a minimum of four matches is so that no one classification has undue influence on the calculations. Sufficient data was collected from the comparator agencies for 38 of the 42 benchmark classifications. When using survey data to make salary range recommendations and adjustments, K&A recommends using the median, rather than the average, because the median is not skewed by extremely high or low salary values.

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MARKET COMPENSATION FINDINGS The following table represents a summary of the market top monthly (base) salary and total compensation (base salary plus benefits [retirement, insurance, leaves, and allowances]) findings. For each benchmark classification, the number of matches (agencies with a comparable position) and percent above or below the top monthly salary market median is listed. The table is sorted by total compensation market median in descending order from the most positive percentile (above market) to the most negative (below market). Table 4. Total Monthly Market Compensation Results Summary # of Top Base % Total Comp % Classification Title Matches Above or Below Above or Below Materials Diversion Technician II (Operator 7 .1% 6.3% Technician) Executive Director 10 ‐3.1% 4.3%

Scale Attendant 11 ‐3.9% 2.9%

Administrative Services Director 11 ‐9.9% 1.4% Materials Diversion Technician III (Lead 6 ‐14.5% ‐0.8% Operator) Director of Operations 9 ‐14.5% ‐1.9%

Hazardous Waste Technician II 6 ‐18.5% ‐4.2%

Operations Supervisor 9 ‐21.4% ‐6.0%

Account Clerk II 11 ‐21.7% ‐7.4%

Landfill Supervisor 11 ‐15.3% ‐7.5%

Director of Environmental Health and Safety 7 ‐21.1% ‐8.4%

Program Analyst II 10 ‐46.7% ‐21.7%

CRV Specialist/Scale Attendant N/A Insufficient Data Insufficient Data

Health and Safety Coordinator II N/A Insufficient Data Insufficient Data

Scalehouse Supervisor N/A Insufficient Data Insufficient Data

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Summary of Findings A total of fifteen benchmarks were surveyed; three (3) had insufficient data. The results summary spreadsheet found at Appendix I indicates that: Generally, a classification falling within 5% of the median is considered to be competitive in the labor market for salary survey purposes because of the differences in compensation policy, actual scope of work, and position requirements. However, the Authority can adopt a different standard.  The Authority’s Base salaries are on average 15.9% below the market.  The Authority’s Total Compensation (which includes both base salary and benefits) data, on average, is 3.6% below the surveyed marketplace. Overall, the difference between market base salaries and total compensation is significant and indicates that, overall, the Client’s benefits package contributes to a more competitive position.  Benchmarks below market:  Base salary data indicates that there were 11 benchmarks that fell below the market, 9 by more than 5%. Total Compensation data indicates that 8 benchmarks fell below the market, 5 by more than 5%.  8 benchmarks were more than 10% below the market for base salary;  1 benchmark was more than 10% below the market for total compensation.  Benchmarks above market:  There was 1 benchmark that was above the market within 5% for base salary;  There were 4 benchmarks that were above the market, 3 within 5%, for total compensation. Three (3) classifications are shown with insufficient data due to not having the required four comparator agency matches. K&A recommends the salary ranges for these classifications be set using internal alignment factors. Further analysis indicates that, on average, classifications are 3.6% below the market median based on total compensation. INTERNAL SALARY RELATIONSHIPS Building from the salary levels established for identified benchmark classes, internal salary relationships were developed and consistently applied in order to develop specific salary recommendations for all non‐benchmarked classifications. In the future, the Authority may need to utilize internal alignment practices if the number of staff grows and additional classifications are added or classifications change. While analyzing internal relationships, the same factors analyzed when comparing the Authority’s classifications to the labor market are used when making internal salary alignment recommendations.

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In addition, the following are standard human resources practices that are commonly applied when making salary recommendations based upon internal relationships:  Certain internal percentages are often applied. Those that are the most common are:  The differential between a trainee (or entry) and experienced (or journey) class in a series (I/II or Trainee/Experienced) is generally 10% to 15%;  A lead or advanced journey‐level (III or Senior‐level) class is generally placed 10% to 15% above the journey‐level.  A full supervisory class is normally placed at least 10% to 25% above the highest level supervised, depending upon the breadth and scope of supervision.  When a market or internal equity adjustment is granted to one class in a series, the other classes in the series are also adjusted accordingly to maintain internal equity. Internal equity between certain levels of classifications is a fundamental factor to be considered when making salary decisions. When conducting a market compensation survey, results can often show that certain classifications that are aligned with each other are not the same in the outside labor market. However, as an organization, careful consideration should be given to these alignments because they represent internal value of classifications within job families, as well as across the organization. For the purposes of this study, K&A utilized market data to develop the salary recommendations for all of the benchmarked classifications with sufficient market data and used internal equity principles to make the salary recommendation for benchmarks without sufficient market data and classifications that were not benchmarked. For the non‐benchmarked classification, internal alignments with other classifications will need to be considered, either in the same class series or those classifications that have similar scope of work, level of responsibility, and “worth” to the Authority. Where it is difficult to ascertain internal relationships due to unique qualifications and responsibilities, reliance can be placed on past internal relationships. It is important for Authority management to carefully review these internal relationships and determine if they are still appropriate given the current market data. It is also important to analyze market data and internal relationships within class series as well as across the organization, and make adjustments to salary range placements, as necessary, based on the needs of the organization. The Authority may want to make additional internal equity adjustments or alignments, as it implements the compensation strategy. This market survey is only a tool to be used by the Authority to determine market indexing and salary determination. RECOMMENDATIONS Pay Philosophy The Authority has many options regarding what type of compensation plan it wants to implement. This decision will be based on the level it desires to pay its employees compared to the market, whether it is going to consider additional alternative compensation programs, and how great the competition is with other agencies over recruitment of a qualified workforce. Most 11

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agencies target a pay philosophy of market median and our proposed structure and range placement recommendations are based on this approach. Proposed Salary Structure A structured salary schedule ensures that classifications are placed in ranges appropriately distinguishing them from higher and lower level classifications and would ensure internal equity amongst Authority staff. It is recommended that the Authority replace the existing classification plan with the Appendix IV salary structure with appropriate grades and ranges within which to place their classifications. The structure has 60 ranges, 2.5% apart, with 5 steps in each range, 5% apart. It is important to note that the salary range structure connects all salary ranges, and their steps, by formula, thereby allowing for COLAs to be applied to only one‐dollar figure in the table/matrix, which then automatically updates the entire table. Due to the formula that connects each range to the next (with 2.5% differentials between each range), there is a compounding effect when drawing relationships that span several ranges. For example, with 2.5% differentials between ranges, four ranges should represent a 10% differential. However, because the compounding effect of 2.5%, on top of 2.5%, on top of 2.5%, and so on, the differential between Range 1 and Range 4 is not exactly 10%, but it is slightly greater. Proposed Salary Range Placements Appendix III illustrates the proposed new salary range structure and salary range placement for each classification based on the market data as well as the internal relationship analysis. The recommendations are based on total compensation market median results, internal alignment, or adjustment due to uniqueness of the classification and difficulty with 70% matching at comparator agencies, the following calculation was used: 1. Multiplied the median total compensation percentage difference times the Authority’s current base salary to calculate the Market Placement Salary. 2. The classification was then placed within the proposed salary range with a maximum top monthly salary closest to the Market Placement Salary. 3. Internal alignment was used to build salary relationships between positions within a class series and to minimize potential salary compaction issues. K&A also modified the current internal alignment in certain instances where it seemed warranted based on market‐supported groupings and/or compaction issues. For all classifications, this recommended primary implementation procedure must be completed only at the initial time of implementation. In the future, if the Authority decides to implement annual across‐the‐board cost of living adjustment increases, only the salary schedule that was developed and included herein needs to be increased by the appropriate percentage, and each individual salary range will move up with this adjustment. This will ensure that the internal salary relationships are preserved and the salary schedule remains structured and easily administered.

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USING THE MARKET DATA AS A TOOL K&A would like to reiterate that this report and the findings are meant to be a tool for the Authority to create and implement an equitable compensation plan. Compensation strategies are designed to attract and retain excellent staff; however, financial realities and the Authority’s expectations may also come into play when determining appropriate compensation philosophies and strategies. The collected data presented herein represents a market survey that will give the Authority an instrument to make future compensation decisions. It has been a pleasure working with Authority on this critical project. Please do not hesitate to contact us if we can provide any additional information or clarification regarding this report.

Respectfully submitted by, Koff & Associates

Katie Kaneko President

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Appendix I

Results Summary

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Top Monthly Salary Data Total Monthly Compensation Data # of Classification Top Monthly Average of % above or Median of % above or Total Monthly Average of % above or Median of % above or Matches Salary Comparators below Comparators below Comp Comparators below Comparators below Account Clerk II $ 3,642 $ 4,483 ‐23.1% $ 4,432 ‐21.7% $ 6,765 $ 7,191 ‐6.3% $ 7,263 ‐7.4% 11 Administrative Services Director $ 7,629 $ 8,417 ‐10.3% $ 8,386 ‐9.9% $ 12,003 $ 12,015 ‐0.1% $ 11,838 1.4% 11 CRV Specialist/Scale Attendant $ 4,362 Insuff. Data Insuff. Data Insuff. Data Insuff. Data $ 7,642 Insuff. Data Insuff. Data Insuff. Data Insuff. Data 0 Director of Environmental Health and Safety $ 7,629 $ 8,779 ‐15.1% $ 9,243 ‐21.1% $ 12,003 $ 12,555 ‐4.6% $ 13,016 ‐8.4% 7 Director of Operations $ 7,629 $ 9,019 ‐18.2% $ 8,737 ‐14.5% $ 12,003 $ 12,907 ‐7.5% $ 12,233 ‐1.9% 9 Executive Director $ 10,335 $ 11,332 ‐9.7% $ 10,654 ‐3.1% $ 15,584 $ 15,701 ‐0.8% $ 14,910 4.3% 10 Hazardous Waste Technician II $ 4,362 $ 4,954 ‐13.6% $ 5,168 ‐18.5% $ 7,642 $ 7,965 ‐4.2% $ 7,966 ‐4.2% 6 Health and Safety Coordinator II $ 4,362 Insuff. Data Insuff. Data Insuff. Data Insuff. Data $ 7,642 Insuff. Data Insuff. Data Insuff. Data Insuff. Data 3 Landfill Supervisor $ 5,096 $ 5,961 ‐17.0% $ 5,877 ‐15.3% $ 8,536 $ 9,029 ‐5.8% $ 9,174 ‐7.5% 11 Lead Operator $ 4,362 $ 4,875 ‐11.8% $ 4,994 ‐14.5% $ 7,642 $ 7,856 ‐2.8% $ 7,700 ‐0.8% 6 Materials Diversion Technician II $ 3,809 $ 3,904 ‐2.5% $ 3,807 0.1% $ 6,968 $ 6,637 4.8% $ 6,527 6.3% 7 Operations Supervisor $ 5,096 $ 6,453 ‐26.6% $ 6,188 ‐21.4% $ 8,536 $ 9,677 ‐13.4% $ 9,049 ‐6.0% 9 Program Analyst II $ 4,362 $ 6,484 ‐48.6% $ 6,400 ‐46.7% $ 7,642 $ 9,645 ‐26.2% $ 9,300 ‐21.7% 10 Scale Attendant $ 3,642 $ 4,197 ‐15.2% $ 3,785 ‐3.9% $ 6,765 $ 6,853 ‐1.3% $ 6,571 2.9% 11 Scalehouse Supervisor $ 5,096 Insuff. Data Insuff. Data Insuff. Data Insuff. Data $ 8,536 Insuff. Data Insuff. Data Insuff. Data Insuff. Data 3 AVERAGE: ‐17.6% AVERAGE: ‐15.9% AVERAGE: ‐5.7% AVERAGE: ‐3.6%

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Appendix II

Market Compensation Findings

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 Account Clerk II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Accounting Technician II $6,700 114.7% $ 5,841 $ 3,975 $ 9,817 7/1/2019 unknown unknown 2 City of Watsonville Accounting Technician $6,072 110.8% $ 5,480 $ 2,676 $ 8,156 1/1/2019 1/1/2020 3.00% 3 Monterey Regional Waste Management District Accounting Assistant II $5,994 113.9% $ 5,263 $ 2,984 $ 8,247 7/1/2019 7/1/2020 3.50% 4 County Sanitation Districts of Los Angeles County Account Clerk II $5,114 113.4% $ 4,510 $ 2,753 $ 7,263 7/1/2019 7/1/2020 depends on March 2020 CPI 5 County of Santa Cruz Account Clerk $4,988 111.1% $ 4,490 $ 2,936 $ 7,426 9/21/2019 unknown unknown 6 City of Santa Cruz Accounting Assistant II $4,933 111.3% $ 4,432 $ 2,964 $ 7,396 3/23/2019 3/7/2020 3.00% 7 City of Santa Maria Finance Clerk II $4,559 111.5% $ 4,089 $ 2,168 $ 6,257 5/21/2019 12/31/2019 1.50% 8 County of San Joaquin Accounting Technician I $4,311 107.3% $ 4,018 $ 2,148 $ 6,166 7/9/2018 unknown unknown 9 County of Stanislaus Account Clerk III $4,020 106.2% $ 3,785 $ 2,620 $ 6,406 7/1/2019 7/1/2020 3.00% 10 County of Sacramento Account Clerk Level II $4,126 109.1% $ 3,782 $ 2,329 $ 6,111 7/1/2019 7/1/2020 2‐4% based on CPI March 2 11 Humboldt Waste Management Authority Account Clerk II $ 3,642 $ 3,642 $ 3,123 $ 6,765 7/1/2019 unknown unknown 12 City of Redding Account Clerk II $3,739 103.1% $ 3,627 $ 2,231 $ 5,857 4/10/2016 7/12/2020 1.50% 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $4,960 $ 4,483 $ 7,191 % Humboldt Waste Management Authority Above/Below ‐36.2% ‐23.1% ‐6.3%

Median of Comparators $ 4,933 $ 4,432 $ 7,263 % Humboldt Waste Management Authority Above/Below ‐35.4% ‐21.7% ‐7.4%

Number of Matches 11 11 11

N/C - Non Comparator

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Adjusted Top Step $ 3,642 $ 3,627 $ 4,432 $ 4,089 $ 5,480 $ 3,782 $ 4,018 $ 4,490 $ 3,785 $ 4,510 $ 5,263 $ 5,841

Classic1 2%@55 2.7%@55 2%@60 2%@55 2%@60 1.92%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 98 $ 232 $ 66 $ 110 $ 82 $ 57 $ 108 $ 67 $ 57 $ 122 $ 142 $ 158 EE Cost Sharing $ ‐36 $ ‐111 $ ‐20 $ ‐196 $ ‐58 ER Paid Member Contrib $ 255 $ 194 $ 316 Calc Classic EPMC as Spec Comp $ 18 Single Highest Year $ 22 $ 20 $ 23 $ 26 $ 29 Retirement Social Security $ 225 $ 340 $ 234 $ 249 $ 278 $ 235 Deferred Compensation $ 158 Other Ret. Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,339 $ 1,610 $ 1,505 $ 1,298 $ 1,810 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 81 $ 119 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 18 $ 46 2, 3 Insurance Life $ 7 $ 9$ 2$ 11 $ 8$ 3$ 1$ 4$ 0$ 3$ 20 $ 13 LTD4 $ 0$ 28 $ 30 $ 12 $ 9$ 22 $ 32 Vacation $ 228 $ 209 $ 256 $ 157 $ 337 $ 217 $ 232 $ 466 $ 218 $ 278 $ 304 $ 584 Holidays5 $ 196 $ 188 $ 239 $ 189 $ 295 $ 196 $ 216 $ 224 $ 160 $ 225 $ 283 $ 315

Leaves Admin Leave $ 67 Auto Allow

Benefit Package Total $ 3,123 $ 0 $ 2,231 $ 2,964 $ 2,168 $ 2,676 $ 2,329 $ 2,148 $ 2,936 $ 2,620 $ 2,753 $ 2,984 $ 3,975

N/C - Non Comparator 1 - City of Redding: Employees receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for Tier 1 Classic Employees hired before 1/1/13 with 10+ years of service 2 - County of San Joaquin: receives this amount after 10+ years of continuous service 3 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 4 - City of Santa Maria: Employee pays premium for first $3000 of monthly salary; City pays premium on excess of $3000 monthly salary up to $5000 monthly salary maximum; City pays 1.51% in excess of $3000/month up to $5000 per month = 1.51% x $2000/month max 5 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 Account Clerk II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Accounting Technician II $6,700 114.7% $ 5,841 $ 3,975 $ 9,817 7/1/2019 unknown unknown 2 Monterey Regional Waste Management District Accounting Assistant II $5,994 113.9% $ 5,263 $ 2,984 $ 8,247 7/1/2019 7/1/2020 3.50% 3 City of Watsonville Accounting Technician $6,072 110.8% $ 5,480 $ 2,676 $ 8,156 1/1/2019 1/1/2020 3.00% 4 County of Santa Cruz Account Clerk $4,988 111.1% $ 4,490 $ 2,936 $ 7,426 9/21/2019 unknown unknown 5 City of Santa Cruz Accounting Assistant II $4,933 111.3% $ 4,432 $ 2,964 $ 7,396 3/23/2019 3/7/2020 3.00% 6 County Sanitation Districts of Los Angeles County Account Clerk II $5,114 113.4% $ 4,510 $ 2,753 $ 7,263 7/1/2019 7/1/2020 depends on March 2020 CPI 7 Humboldt Waste Management Authority Account Clerk II $ 3,642 $ 3,642 $ 3,123 $ 6,765 7/1/2019 unknown unknown 8 County of Stanislaus Account Clerk III $4,020 106.2% $ 3,785 $ 2,620 $ 6,406 7/1/2019 7/1/2020 3.00% 9 City of Santa Maria Finance Clerk II $4,559 111.5% $ 4,089 $ 2,168 $ 6,257 5/21/2019 12/31/2019 1.50% 10 County of San Joaquin Accounting Technician I $4,311 107.3% $ 4,018 $ 2,148 $ 6,166 7/9/2018 unknown unknown 11 County of Sacramento Account Clerk Level II $4,126 109.1% $ 3,782 $ 2,329 $ 6,111 7/1/2019 7/1/2020 2‐4% based on CPI March 2 12 City of Redding Account Clerk II $3,739 103.1% $ 3,627 $ 2,231 $ 5,857 4/10/2016 7/12/2020 1.50% 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $4,960 $ 4,483 $ 7,191 % Humboldt Waste Management Authority Above/Below ‐36.2% ‐23.1% ‐6.3%

Median of Comparators $ 4,933 $ 4,432 $ 7,263 % Humboldt Waste Management Authority Above/Below ‐35.4% ‐21.7% ‐7.4%

Number of Matches 11 11 11

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Administrative Services Director Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 Monterey Regional Waste Management [Human Resources Manager / Accounting Manager] $12,196 113.9% $ 10,708 $ 4,569 $ 15,277 7/1/2019 unknown unknown 2 Salinas Valley Solid Waste Authority Finance‐Administration Manager $10,978 114.7% $ 9,571 $ 4,667 $ 14,238 7/1/2019 unknown unknown 3 County of Sacramento Administrative Services Officer III $9,755 109.1% $ 8,941 $ 3,682 $ 12,623 7/1/2019 6/21/2020 2‐4% based on CPI March 2 4 County of Santa Cruz Administrative Services Officer II $9,367 111.1% $ 8,431 $ 3,907 $ 12,338 9/21/2019 9/20/2020 2.75% 5 City of Santa Cruz2 [Finance Manager/ Human Resources Analyst II] $9,335 111.3% $ 8,387 $ 3,451 $ 11,838 8/24/2019 8/22/2020 4.00% 6 County of Stanislaus Manager III $8,906 106.2% $ 8,386 $ 3,788 $ 12,174 7/7/2019 7/1/2020 3.00% 7 City of Watsonville4 [Public Works Utilities Administrative Services Manager/ Human Resources Analyst] $9,089 110.8% $ 8,203 $ 3,626 $ 11,829 7/1/2019 7/1/2020 3.00% 8 City of Redding1 [Finance Officer / Senior Personnel Analyst] $8,446 103.1% $ 8,192 $ 3,539 $ 11,731 12/6/2015 unknown unknown 9 County Sanitation Districts of Los Angeles [Supervising Accountant/ Human Resources Analyst II] $8,852 113.4% $ 7,806 $ 3,464 $ 11,270 7/1/2019 unknown unknown 10 City of Santa Maria3 [Accounting Manager/ Management Analyst I] $8,627 111.5% $ 7,737 $ 1,984 $ 9,721 6/4/2019 12/31/2019 3.00% 11 Humboldt Waste Management Authority Administrative Services Director $ 7,629 $ 7,629 $ 4,374 $ 12,003 7/1/2019 unknown unknown 12 County of San Joaquin5 [Accounting Manager / Personnel Analyst I] $6,674 107.3% $ 6,220 $ 2,902 $ 9,122 3/13/2018 3/3/2020 1.00% 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 9,293 $ 8,417 $ 12,015 % Humboldt Waste Management Authority Above/Below ‐21.8% ‐10.3% ‐0.1%

Median of Comparators $9,089 $ 8,386 $ 11,838 % Humboldt Waste Management Authority Above/Below ‐19.1% ‐9.9% 1.4%

Number of Matches 11 11 11

N/C - Non Comparator

1 - City of Redding: Functional Match: This hybrid match represents that the duties of the class are performed by more than one class at the comparator agency. The salary displayed is an average of the matches.

2 - City of Santa Cruz: Functional Match: This hybrid match represents that the duties of the class are performed by more than one class at the comparator agency. The salary displayed is an average of the matches.

3 - City of Santa Maria: Functional Match: This hybrid match represents that the duties of the class are performed by more than one class at the comparator agency. The salary displayed is an average of the matches.

4 - City of Watsonville: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

5 - County of San Joaquin: Functional Match: This hybrid match represents that the duties of the class are performed by more than one class at the comparator agency. The salary displayed is the higher of the matches.

6 - County Sanitation Districts of Los Angeles County: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

7 - Monterey Regional Waste Management District: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

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County Monterey Humboldt Waste Salinas Valley City of Santa City of Santa City of County of County of San County of Santa County of Sanitation Regional Waste Agency Management City of Oxnard City of Redding Solid Waste Cruz Maria Watsonville Sacramento Joaquin Cruz Stanislaus Districts of Los Management Authority Authority Angeles County District

[Public Works [Finance Utilities [Supervising [Human [Finance Officer [Accounting [Accounting Manager/ Administrative Administrative Accountant/ Resources Finance‐ Administrative / Senior Manager/ Manager / Administrative Benchmark/ Comparator Agency Match N/C Human Services Manager Services Officer Manager III Human Manager / Administration Services Director Personnel Management Personnel Services Officer II Resources / Human III Resources Accounting Manager Analyst] Analyst I] Analyst I] Analyst II] Resources Analyst II] Manager] Analyst]

Top Step Salary $ 7,629 $8,446 $9,335 $8,627 $9,089 $9,755 $6,674 $9,367 $8,906 $8,852 $12,196 $10,978

Adjusted Top Step $ 7,629 $ 8,192 $ 8,387 $ 7,737 $ 8,203 $ 8,941 $ 6,220 $ 8,431 $ 8,386 $ 7,806 $ 10,708 $ 9,571

Classic1 2%@55 2.7%@55 2%@60 2%@55 2%@60 1.92%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 206 $ 524 $ 126 $ 209 $ 123 $ 134 $ 168 $ 126 $ 126 $ 211 $ 289 $ 258 EE Cost Sharing $ ‐335 $ ‐155 $ ‐465 $ ‐96 ER Paid Member Contrib $ 534 $ 460 $ 546 Calc Classic EPMC as Spec Comp $ 37 Single Highest Year $ 49 $ 31 $ 39 $ 54 $ 48 Retirement Social Security $ 508 $ 509 $ 554 $ 386 $ 523 $ 520 Deferred Compensation $ 25 $ 89 $ 62 $ 126 $ 321 Other Ret.2 $ 300 Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,202 $ 1,064 $ 1,505 $ 1,298 $ 1,662 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 59 $ 119 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 12 $ 3$ 6$ 18 $ 46 3, 4 Insurance Life $ 7 $ 20 $ 2$ 8$ 8$ 1$ 9$ 2$ 3$ 41 $ 21 LTD $ 0$ 53 $ 12 $ 74 $ 16 $ 44 $ 53 Vacation $ 477 $ 473 $ 484 $ 298 $ 505 $ 514 $ 359 $ 681 $ 484 $ 480 $ 618 $ 957 Holidays5 $ 411 $ 425 $ 452 $ 357 $ 442 $ 464 $ 335 $ 422 $ 355 $ 390 $ 577 $ 479

Leaves Admin Leave $ 381 $ 158 $ 323 $ 426 $ 239 $ 324 $ 226 $ 597 $ 110 Auto $ 116 Allow

Benefit Package Total $ 4,374 $ 0 $ 3,539 $ 3,451 $ 1,984 $ 3,626 $ 3,682 $ 2,902 $ 3,907 $ 3,788 $ 3,464 $ 4,569 $ 4,667

N/C - Non Comparator 1 - City of Redding: Employee receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for non-safety employees hired before 8/7/11 with 5+ years of service. 2 - County of Sacramento: The County also provides a Management Differential, County contributes 3.35% of salary. 3 - County of San Joaquin: receives this amount after 10+ years of continuous service 4 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 5 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Administrative Services Director Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Monterey Regional Waste Management [Human Resources Manager / Accounting Manager] $12,196 113.9% $ 10,708 $ 4,569 $ 15,277 7/1/2019 unknown unknown 2 Salinas Valley Solid Waste Authority Finance‐Administration Manager $10,978 114.7% $ 9,571 $ 4,667 $ 14,238 7/1/2019 unknown unknown 3 County of Sacramento Administrative Services Officer III $9,755 109.1% $ 8,941 $ 3,682 $ 12,623 7/1/2019 6/21/2020 2‐4% based on CPI March 2 4 County of Santa Cruz Administrative Services Officer II $9,367 111.1% $ 8,431 $ 3,907 $ 12,338 9/21/2019 9/20/2020 2.75% 5 County of Stanislaus Manager III $8,906 106.2% $ 8,386 $ 3,788 $ 12,174 7/7/2019 7/1/2020 3.00% 6 Humboldt Waste Management Authority Administrative Services Director $ 7,629 $ 7,629 $ 4,374 $ 12,003 7/1/2019 unknown unknown 7 City of Santa Cruz2 [Finance Manager/ Human Resources Analyst II] $9,335 111.3% $ 8,387 $ 3,451 $ 11,838 8/24/2019 8/22/2020 4.00% 8 City of Watsonville4 [Public Works Utilities Administrative Services Manager/ Human Resources Analyst] $9,089 110.8% $ 8,203 $ 3,626 $ 11,829 7/1/2019 7/1/2020 3.00% 9 City of Redding1 [Finance Officer / Senior Personnel Analyst] $8,446 103.1% $ 8,192 $ 3,539 $ 11,731 12/6/2015 unknown unknown 10 County Sanitation Districts of Los Angeles [Supervising Accountant/ Human Resources Analyst II] $8,852 113.4% $ 7,806 $ 3,464 $ 11,270 7/1/2019 unknown unknown 11 City of Santa Maria3 [Accounting Manager/ Management Analyst I] $8,627 111.5% $ 7,737 $ 1,984 $ 9,721 6/4/2019 12/31/2019 3.00% 12 County of San Joaquin5 [Accounting Manager / Personnel Analyst I] $6,674 107.3% $ 6,220 $ 2,902 $ 9,122 3/13/2018 3/3/2020 1.00% 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 9,293 $ 8,417 $ 12,015 % Humboldt Waste Management Authority Above/Below ‐21.8% ‐10.3% ‐0.1%

Median of Comparators $9,089 $ 8,386 $ 11,838 % Humboldt Waste Management Authority Above/Below ‐19.1% ‐9.9% 1.4%

Number of Matches 11 11 11

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 CRV Specialist/Scale Attendant Total Salary Next Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Percentage Salary Labor Top Step Package Increase Comp Date Increase 1 Humboldt Waste Management Authority CRV Specialist/Scale Attendant $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 2 City of Oxnard N/C 3 City of Redding N/C 4 City of Santa Cruz N/C 5 City of Santa Maria N/C 6 City of Watsonville N/C 7 County of Sacramento N/C 8 County of San Joaquin N/C 9 County of Santa Cruz N/C 10 County of Stanislaus N/C 11 County Sanitation Districts of Los Angeles County N/C 12 Monterey Regional Waste Management District N/C 13 Salinas Valley Solid Waste Authority N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Median of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Number of Matches 000

N/C - Non Comparator

Page 3a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Page 112 of 162 Humboldt Waste Management Authority Appendix II: Benefit Detail November 2019

CRV Specialist/ Benchmark/ Comparator Agency Match N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C N/C Scale Attendant

Top Step Salary $ 4,362

Adjusted Top Step $ 4,362

Classic 2%@55 Enhanced Formula Cost $ 118 EE Cost Sharing ER Paid Member Contrib $ 305 Calc Classic EPMC as Spec Comp $ 21 Single Highest Year Retirement Social Security Deferred Compensation Other Ret. Cafeteria Health $ 2,173 Dental $ 137 Vision $ 10 1 Insurance Life $ 7 LTD Vacation $ 273 Holidays2 $ 235

Leaves Admin Leave Auto Allow

Benefit Package Total $ 3,280 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

N/C - Non Comparator 1 - County of San Joaquin: receives this amount after 10+ years of continuous service 2 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

Page 3b of 45 Appendix IIb - HWMA Benefit Details March 12, 2020 Printed on Recycled Paper Page 113 of 162

Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 CRV Specialist/Scale Attendant Total Salary Next Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Percentage Salary Wages Top Step Package Increase Comp Date Increase 1 Humboldt Waste Management Authority CRV Specialist/Scale Attendant $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 2 City of Oxnard N/C 3 City of Redding N/C 4 City of Santa Cruz N/C 5 City of Santa Maria N/C 6 City of Watsonville N/C 7 County of Sacramento N/C 8 County of San Joaquin N/C 9 County of Santa Cruz N/C 10 County of Stanislaus N/C 11 County Sanitation Districts of Los Angeles County N/C 12 Monterey Regional Waste Management District N/C 13 Salinas Valley Solid Waste Authority N/C

Median of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Number of Matches 000

N/C - Non Comparator

Page 3c of 45 Appendix IIc - HWMA Market Compensation March 12, 2020 Printed on Recycled Paper Page 114 of 162

Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Director of Environmental Health and Safety Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Engineering and Environmental Compliance Manager $10,978 114.7% $ 9,571 $ 4,667 $ 14,238 7/1/2019 unknown unknown 2 County of Sacramento Waste Management Program Manager $10,413 109.1% $ 9,544 $ 3,820 $ 13,365 7/1/2019 6/21/2020 2‐4% based on CPI March 2 3 Monterey Regional Waste Management District Safety and Risk Manager $10,715 113.9% $ 9,407 $ 4,265 $ 13,673 7/1/2019 7/1/2020 based on SF CPI April 202 4 County Sanitation Districts of Los Angeles County1 [Environmental Health and Safety Supervisor/ Health and Safety Analyst I] $10,481 113.4% $ 9,243 $ 3,774 $ 13,016 7/1/2019 7/1/2020 depends on March 2020 CPI 5 County of Santa Cruz Environmental Programs Coordinator $9,827 111.1% $ 8,845 $ 3,941 $ 12,787 9/21/2019 unknown unknown 6 City of Redding Safety and Compliance Coordinator $8,295 103.1% $ 8,046 $ 3,501 $ 11,546 7/14/2019 6/28/2020 2.00% 7 Humboldt Waste Management Authority Director of Environmental Health and Safety $ 7,629 $ 7,629 $ 4,374 $ 12,003 7/1/2019 unknown unknown 8 City of Santa Maria Regulatory Compliance Supervisor $7,582 111.5% $ 6,800 $ 2,457 $ 9,257 5/21/2019 12/31/2019 1.50% 9 City of Oxnard N/C 10 City of Santa Cruz N/C 11 City of Watsonville N/C 12 County of San Joaquin N/C 13 County of Stanislaus N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 9,756 $ 8,779 $ 12,555 % Humboldt Waste Management Authority Above/Below ‐27.9% ‐15.1% ‐4.6%

Median of Comparators $ 10,413 $ 9,243 $ 13,016 % Humboldt Waste Management Authority Above/Below ‐36.5% ‐21.1% ‐8.4%

Number of Matches 777

N/C - Non Comparator

1 - County Sanitation Districts of Los Angeles County: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

Page 4a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Humboldt Waste Management Authority Page 115 of 162 Appendix II: Benefit Detail November 2019

[Environmental Waste Engineering and Director of Safety and Regulatory Environmental Health and Safety Environmental Management Safety and Risk Environmental Benchmark/ Comparator Agency Match N/C Compliance N/C Compliance N/C N/C Programs N/C Supervisor/ Health and Program Manager Compliance Coordinator Supervisor Coordinator Health and Safety Safety Manager Manager Analyst I]

Top Step Salary $ 7,629 $8,295 $7,582 $10,413 $9,827 $10,481 $10,715 $10,978

Adjusted Top Step $ 7,629 $ 8,046 $ 6,800 $ 9,544 $ 8,845 $ 9,243 $ 9,407 $ 9,571

Classic1 2%@55 2.7%@55 2%@55 1.92%@60 2%@60 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 206 $ 515 $ 184 $ 143 $ 133 $ 250 $ 254 $ 258 EE Cost Sharing $ ‐34 $ ‐496 $ ‐96 ER Paid Member Contrib $ 534 $ 491 $ 647 Calc Classic EPMC as Spec Comp $ 37 Single Highest Year $ 48 $ 46 $ 47 $ 48 Retirement Social Security $ 499 $ 592 $ 548 Deferred Compensation $ 95 $ 282 Other Ret.2 $ 320 Cafeteria $ 1,382 $ 2,029 Health $ 2,173 $ 1,610 $ 1,505 $ 1,810 $ 1,634 $ 2,648 Dental $ 137 $ 81 $ 119 $ 80 $ 143 $ 142 Vision $ 10 $ 6$ 46 3, 4 Insurance Life $ 7 $ 20 $ 11 $ 8$ 4$ 3$ 36 $ 21 LTD5 $ 0$ 30 $ 19 $ 39 $ 53 Vacation $ 477 $ 464 $ 262 $ 549 $ 919 $ 569 $ 543 $ 957 Holidays6 $ 411 $ 418 $ 314 $ 496 $ 442 $ 462 $ 507 $ 479

Leaves Admin Leave $ 381 $ 155 $ 529 $ 110 Auto Allow

Benefit Package Total $ 4,374 $ 0 $ 3,501 $ 0 $ 2,457 $ 0 $ 3,820 $ 0 $ 3,941 $ 0 $ 3,774 $ 4,265 $ 4,667

N/C - Non Comparator 1 - City of Redding: Employee receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for non-safety employees hired before 8/7/11 with 5+ years of service. 2 - County of Sacramento: The County also provides a Management Differential, County contributes 3.35% of salary. 3 - County of San Joaquin: receives this amount after 10+ years of continuous service 4 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 5 - City of Santa Maria: Employee pays premium for first $3000 of monthly salary; City pays premium on excess of $3000 monthly salary up to $5000 monthly salary maximum; City pays 1.51% in excess of $3000/month up to $5000 per month = 1.51% x $2000/month max 6 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

Page 4b of 45 March 12, 2020 Appendix IIb - HWMA Benefit Details Printed on Recycled Paper Page 116 of 162

Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Director of Environmental Health and Safety Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Engineering and Environmental Compliance Manager $10,978 114.7% $ 9,571 $ 4,667 $ 14,238 7/1/2019 unknown unknown 2 Monterey Regional Waste Management District Safety and Risk Manager $10,715 113.9% $ 9,407 $ 4,265 $ 13,673 7/1/2019 7/1/2020 based on SF CPI April 202 3 County of Sacramento Waste Management Program Manager $10,413 109.1% $ 9,544 $ 3,820 $ 13,365 7/1/2019 6/21/2020 2‐4% based on CPI March 2 4 County Sanitation Districts of Los Angeles County1 [Environmental Health and Safety Supervisor/ Health and Safety Analyst I] $10,481 113.4% $ 9,243 $ 3,774 $ 13,016 7/1/2019 7/1/2020 depends on March 2020 CPI 5 County of Santa Cruz Environmental Programs Coordinator $9,827 111.1% $ 8,845 $ 3,941 $ 12,787 9/21/2019 unknown unknown 6 Humboldt Waste Management Authority Director of Environmental Health and Safety $ 7,629 $ 7,629 $ 4,374 $ 12,003 7/1/2019 unknown unknown 7 City of Redding Safety and Compliance Coordinator $8,295 103.1% $ 8,046 $ 3,501 $ 11,546 7/14/2019 6/28/2020 2.00% 8 City of Santa Maria Regulatory Compliance Supervisor $7,582 111.5% $ 6,800 $ 2,457 $ 9,257 5/21/2019 12/31/2019 1.50% 9 City of Oxnard N/C 10 City of Santa Cruz N/C 11 City of Watsonville N/C 12 County of San Joaquin N/C 13 County of Stanislaus N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 9,756 $ 8,779 $ 12,555 % Humboldt Waste Management Authority Above/Below ‐27.9% ‐15.1% ‐4.6%

Median of Comparators $ 10,413 $ 9,243 $ 13,016 % Humboldt Waste Management Authority Above/Below ‐36.5% ‐21.1% ‐8.4%

Number of Matches 777

N/C - Non Comparator

Page 4c of 45 Appendix IIc - HWMA Market Compensation March 12, 2020 Printed on Recycled Paper Page 117 of 162

Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Director of Operations Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County of Sacramento Waste Management Operations Superintendent $13,126 109.1% $ 12,031 $ 4,332 $ 16,363 7/1/2019 6/21/2020 2‐4% based on CPI March 2 2 County Sanitation Districts of Los Angeles County Solid Waste Operations Superintendent $12,516 113.4% $ 11,037 $ 4,611 $ 15,648 7/1/2019 7/1/2019 unknown 3 Salinas Valley Solid Waste Authority Operations Manager $10,978 114.7% $ 9,571 $ 4,667 $ 14,238 7/1/2019 unknown unknown 4 County of Santa Cruz Assistant Public Works Superintendent $9,895 111.1% $ 8,907 $ 4,024 $ 12,931 9/21/2019 9/20/2020 2.75% 5 City of Santa Cruz [Superintendent of $9,724 111.3% $ 8,737 $ 3,497 $ 12,233 8/24/2019 8/22/2020 4.00% 6 County of Stanislaus Manager III $8,906 106.2% $ 8,386 $ 3,788 $ 12,174 7/7/2019 7/1/2020 3.00% 7 City of Redding1 [Deputy Director of Public Works / Public Works Supervisor] $8,597 103.1% $ 8,339 $ 3,578 $ 11,916 12/6/2015 unknown unknown 8 County of San Joaquin Solid Waste Operations Manager $8,499 107.3% $ 7,921 $ 3,334 $ 11,255 3/13/2018 3/3/2020 1.00% 9 Humboldt Waste Management Authority Director of Operations $ 7,629 $ 7,629 $ 4,374 $ 12,003 7/1/2019 unknown unknown 10 Monterey Regional Waste Management District MRF Supervisor $7,108 113.9% $ 6,241 $ 3,162 $ 9,402 7/1/2019 7/1/2020 3.50% 11 City of Oxnard N/C 12 City of Santa Maria N/C 13 City of Watsonville N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 9,928 $ 9,019 $ 12,907 % Humboldt Waste Management Authority Above/Below ‐30.1% ‐18.2% ‐7.5%

Median of Comparators $9,724 $ 8,737 $ 12,233 % Humboldt Waste Management Authority Above/Below ‐27.5% ‐14.5% ‐1.9%

Number of Matches 999

N/C - Non Comparator

1 - City of Redding: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

Page 5a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Page 118 of 162 Humboldt Waste Management Authority Appendix II: Benefit Detail November 2019

Humboldt Monterey County Sanitation Salinas Valley Waste City of Santa City of County of County of San County of Santa County of Regional Waste Agency City of Oxnard City of Redding City of Santa Cruz Districts of Los Solid Waste Management Maria Watsonville Sacramento Joaquin Cruz Stanislaus Management Angeles County Authority Authority District

[Superintendent of [Deputy Director Resource Recovery Waste Solid Waste Assistant Public Solid Waste Director of of Public Works / Resource Management Operations Benchmark/ Comparator Agency Match N/C N/C N/C Operations Works Manager III Operations MRF Supervisor Operations / Public Works Recovery Operations Manager Manager Superintendent Superintendent Supervisor] Supervisor‐Public Superintendent Tipping]

Top Step Salary $ 7,629 $8,597 $9,724 $13,126 $8,499 $9,895 $8,906 $12,516 $7,108 $10,978

Adjusted Top Step $ 7,629 $ 8,339 $ 8,737 $ 12,031 $ 7,921 $ 8,907 $ 8,386 $ 11,037 $ 6,241 $ 9,571

Classic1 2%@55 2.7%@55 2%@60 1.92%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 206 $ 534 $ 131 $ 180 $ 214 $ 134 $ 126 $ 298 $ 169 $ 258 EE Cost Sharing $ ‐349 $ ‐625 $ ‐96 ER Paid Member Contrib $ 534 $ 618 $ 773 Calc Classic EPMC as Spec Comp $ 37 Single Highest Year $ 50 $ 40 $ 55 $ 31 $ 48 Retirement Social Security $ 517 $ 687 $ 491 $ 552 $ 520 Deferred Compensation $ 120 $ 79 $ 126 $ 187 Other Ret.2 $ 403 Cafeteria $ 1,382 $ 2,029 Health $ 2,173 $ 2,202 $ 1,505 $ 1,298 $ 1,662 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 119 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 18 $ 46 3, 4 Insurance Life $ 7 $ 20 $ 2$ 8$ 1$ 9$ 2$ 3$ 24 $ 21 LTD $ 0$ 55 $ 74 $ 23 $ 26 $ 53 Vacation $ 477 $ 481 $ 504 $ 692 $ 457 $ 719 $ 484 $ 679 $ 360 $ 957 Holidays5 $ 411 $ 433 $ 470 $ 625 $ 427 $ 445 $ 355 $ 552 $ 336 $ 479

Leaves Admin Leave $ 381 $ 160 $ 336 $ 305 $ 343 $ 226 $ 110 Auto $ 450 Allow

Benefit Package Total $ 4,374 $ 0 $ 3,578 $ 3,497 $ 0 $ 0 $ 4,332 $ 3,334 $ 4,024 $ 3,788 $ 4,611 $ 3,162 $ 4,667

Page 5b of 45 March 12, 2020 Appendix IIb - HWMA Benefit Details Printed on Recycled Paper Page 119 of 162

Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Director of Operations Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 County of Sacramento Waste Management Operations Superintendent $13,126 109.1% $ 12,031 $ 4,332 $ 16,363 7/1/2019 6/21/2020 2‐4% based on CPI March 2 2 County Sanitation Districts of Los Angeles County Solid Waste Operations Superintendent $12,516 113.4% $ 11,037 $ 4,611 $ 15,648 7/1/2019 7/1/2019 unknown 3 Salinas Valley Solid Waste Authority Operations Manager $10,978 114.7% $ 9,571 $ 4,667 $ 14,238 7/1/2019 unknown unknown 4 County of Santa Cruz Assistant Public Works Superintendent $9,895 111.1% $ 8,907 $ 4,024 $ 12,931 9/21/2019 9/20/2020 2.75% 5 City of Santa Cruz [Superintendent of $9,724 111.3% $ 8,737 $ 3,497 $ 12,233 8/24/2019 8/22/2020 4.00% 6 County of Stanislaus Manager III $8,906 106.2% $ 8,386 $ 3,788 $ 12,174 7/7/2019 7/1/2020 3.00% 7 Humboldt Waste Management Authority Director of Operations $ 7,629 $ 7,629 $ 4,374 $ 12,003 7/1/2019 unknown unknown 8 City of Redding1 [Deputy Director of Public Works / Public Works Supervisor] $8,597 103.1% $ 8,339 $ 3,578 $ 11,916 12/6/2015 unknown unknown 9 County of San Joaquin Solid Waste Operations Manager $8,499 107.3% $ 7,921 $ 3,334 $ 11,255 3/13/2018 3/3/2020 1.00% 10 Monterey Regional Waste Management District MRF Supervisor $7,108 113.9% $ 6,241 $ 3,162 $ 9,402 7/1/2019 7/1/2020 3.50% 11 City of Oxnard N/C 12 City of Santa Maria N/C 13 City of Watsonville N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 9,928 $ 9,019 $ 12,907 % Humboldt Waste Management Authority Above/Below ‐30.1% ‐18.2% ‐7.5%

Median of Comparators $9,724 $ 8,737 $ 12,233 % Humboldt Waste Management Authority Above/Below ‐27.5% ‐14.5% ‐1.9%

Number of Matches 999

N/C - Non Comparator

Page 5c of 45 Appendix IIc - HWMA Market Compensation March 12, 2020 Printed on Recycled Paper Page 120 of 162

Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Executive Director Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority General Manager‐Chief Administrative Officer $16,631 114.7% $ 14,500 $ 6,209 $ 20,708 1/1/2018 unknown unknown 2 County Sanitation Districts of Los Angeles County Division Engineer $15,117 113.4% $ 13,331 $ 5,103 $ 18,433 7/1/2019 7/1/2019 unknown 3 County of Sacramento Chief Division of Solid Waste $14,531 109.1% $ 13,319 $ 4,547 $ 17,866 7/1/2019 6/21/2020 2‐4% based on CPI March 2 4 City of Redding1 [Director of Public Works / Deputy Director of Public Works] $11,319 103.1% $ 10,979 $ 4,571 $ 15,550 12/6/2015 unknown unknown 5 City of Watsonville Solid Waste Division Manager $11,936 110.8% $ 10,773 $ 4,253 $ 15,026 7/1/2019 7/1/2020 3.00% 6 County of Stanislaus Assistant Director $11,189 106.2% $ 10,536 $ 4,258 $ 14,794 7/7/2019 7/1/2020 3.00% 7 City of Santa Maria Solid Waste Manager $11,565 111.5% $ 10,372 $ 2,922 $ 13,294 6/4/2019 12/31/2019 3.00% 8 Humboldt Waste Management Authority Executive Director $ 10,335 $ 10,335 $ 5,249 $ 15,584 11/1/2019 unknown unknown 9 County of San Joaquin Integrated Waste Manager $11,003 107.3% $ 10,254 $ 4,030 $ 14,284 unknown unknown unknown 10 City of Santa Cruz Public Works Operations Manager $10,914 111.3% $ 9,806 $ 3,637 $ 13,443 7/1/2018 unknown unknown 11 County of Santa Cruz Public Works Manager‐Disposal Sites $10,506 111.1% $ 9,456 $ 4,159 $ 13,616 9/21/2019 9/20/2020 2.75% 12 City of Oxnard N/C 13 Monterey Regional Waste Management District N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 12,471 $ 11,332 $ 15,701 % Humboldt Waste Management Authority Above/Below ‐20.7% ‐9.7% ‐0.8%

Median of Comparators $ 11,442 $ 10,654 $ 14,910 % Humboldt Waste Management Authority Above/Below ‐10.7% ‐3.1% 4.3%

Number of Matches 10 10 10

N/C - Non Comparator

Page 6a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Humboldt Waste Management Authority Page 121 of 162 Appendix II: Benefit Detail November 2019

[Director of General Manager‐ Public Works Solid Waste Public Works Executive Public Works / Solid Waste Chief Division of Integrated Assistant Division Chief Benchmark/ Comparator Agency Match N/C Operations Division Manager‐ N/C Director Deputy Director Manager Solid Waste Waste Manager Director Engineer Administrative Manager Manager Disposal Sites of Public Works] Officer

Top Step Salary $ 10,335 $11,319 $10,914 $11,565 $11,936 $14,531 $11,003 $10,506 $11,189 $15,117 $16,631

Adjusted Top Step $ 10,335 $ 10,979 $ 9,806 $ 10,372 $ 10,773 $ 13,319 $ 10,254 $ 9,456 $ 10,536 $ 13,331 $ 14,500

Classic1 2%@55 2.7%@55 2%@60 2%@55 2%@60 1.92%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 Enhanced Formula Cost $ 279 $ 703 $ 147 $ 280 $ 162 $ 200 $ 277 $ 142 $ 158 $ 360 $ 391 EE Cost Sharing $ ‐392 $ ‐207 $ ‐692 $ ‐145 ER Paid Member Contrib $ 723 $ 685 $ 933 Calc Classic EPMC as Spec Comp $ 51 Single Highest Year $ 66 $ 51 $ 67 $ 73 Retirement Social Security $ 681 $ 668 $ 687 $ 636 $ 586 $ 653 Deferred Compensation $ 25 $ 133 $ 205 $ 158 Other Ret.2 $ 446 Cafeteria $ 1,382 $ 1,601 Health $ 2,173 $ 2,202 $ 1,064 $ 1,505 $ 1,298 $ 1,662 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 59 $ 119 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 12 $ 3$ 6$ 18 $ 46 3, 4 Insurance Life $ 7 $ 26 $ 2$ 8$ 8$ 1$ 9$ 2$ 3$ 32 LTD $ 0$ 62 $ 12 $ 74 $ 25 $ 80 Vacation $ 795 $ 633 $ 566 $ 399 $ 663 $ 766 $ 592 $ 764 $ 608 $ 820 $ 1,450 Holidays5 $ 557 $ 570 $ 528 $ 479 $ 580 $ 692 $ 552 $ 473 $ 446 $ 667 $ 725

Leaves Admin Leave $ 517 $ 211 $ 377 $ 319 $ 559 $ 394 $ 364 $ 284 $ 167 Auto $ 300 $ 493 $ 450 $ 600 Allow

Benefit Package Total $ 5,249 $ 0 $ 4,571 $ 3,637 $ 2,922 $ 4,253 $ 4,547 $ 4,030 $ 4,159 $ 4,258 $ 5,103 $ 0 $ 6,209

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Executive Director Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority General Manager‐Chief Administrative Officer $16,631 114.7% $ 14,500 $ 6,209 $ 20,708 1/1/2018 unknown unknown 2 County Sanitation Districts of Los Angeles County Division Engineer $15,117 113.4% $ 13,331 $ 5,103 $ 18,433 7/1/2019 7/1/2019 unknown 3 County of Sacramento Chief Division of Solid Waste $14,531 109.1% $ 13,319 $ 4,547 $ 17,866 7/1/2019 6/21/2020 2‐4% based on CPI March 2 4 Humboldt Waste Management Authority Executive Director $ 10,335 $ 10,335 $ 5,249 $ 15,584 11/1/2019 unknown unknown 5 City of Redding1 [Director of Public Works / Deputy Director of Public Works] $11,319 103.1% $ 10,979 $ 4,571 $ 15,550 12/6/2015 unknown unknown 6 City of Watsonville Solid Waste Division Manager $11,936 110.8% $ 10,773 $ 4,253 $ 15,026 7/1/2019 7/1/2020 3.00% 7 County of Stanislaus Assistant Director $11,189 106.2% $ 10,536 $ 4,258 $ 14,794 7/7/2019 7/1/2020 3.00% 8 County of San Joaquin Integrated Waste Manager $11,003 107.3% $ 10,254 $ 4,030 $ 14,284 unknown unknown unknown 9 County of Santa Cruz Public Works Manager‐Disposal Sites $10,506 111.1% $ 9,456 $ 4,159 $ 13,616 9/21/2019 9/20/2020 2.75% 10 City of Santa Cruz Public Works Operations Manager $10,914 111.3% $ 9,806 $ 3,637 $ 13,443 7/1/2018 unknown unknown 11 City of Santa Maria Solid Waste Manager $11,565 111.5% $ 10,372 $ 2,922 $ 13,294 6/4/2019 12/31/2019 3.00% 12 City of Oxnard N/C 13 Monterey Regional Waste Management District N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 12,471 $ 11,332 $ 15,701 % Humboldt Waste Management Authority Above/Below ‐20.7% ‐9.7% ‐0.8%

Median of Comparators $ 11,442 $ 10,654 $ 14,910 % Humboldt Waste Management Authority Above/Below ‐10.7% ‐3.1% 4.3%

Number of Matches 10 10 10

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 Hazardous Waste Technician II Total Salary Next Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Percentage Salary Labor Top Step Package Increase Comp Date Increase 1 County of Santa Cruz Solid Waste Inspector II $6,689 111.1% $ 6,021 $ 3,289 $ 9,310 9/21/2019 unknown unknown 2 Salinas Valley Solid Waste Authority HHW Technician $6,536 114.7% $ 5,698 $ 3,948 $ 9,647 7/1/2019 unknown unknown 3 Monterey Regional Waste Management District HHW Technician $6,141 113.9% $ 5,392 $ 3,007 $ 8,399 7/1/2019 7/1/2020 3.50% 4 City of Redding Hazardous Waste Technician $5,098 103.1% $ 4,945 $ 2,589 $ 7,534 1/1/2017 unknown unknown 5 Humboldt Waste Management Authority Hazardous Waste Technician II $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 6 City of Santa Cruz Resource Recovery Worker II $4,533 111.3% $ 4,073 $ 2,925 $ 6,998 3/23/2019 3/7/2020 3.00% 7 City of Watsonville Solid Waste Aide II $3,987 110.8% $ 3,598 $ 2,302 $ 5,900 7/1/2019 unknown unknown 8 City of Oxnard N/C 9 City of Santa Maria N/C 10 County of Sacramento N/C 11 County of San Joaquin N/C 12 County of Stanislaus N/C 13 County Sanitation Districts of Los Angeles County N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 5,497 $ 4,954 $ 7,965 % Humboldt Waste Management Authority Above/Below ‐26.0% ‐13.6% ‐4.2%

Median of Comparators $ 5,620 $ 5,168 $ 7,966 % Humboldt Waste Management Authority Above/Below ‐28.8% ‐18.5% ‐4.2%

Number of Matches 666

N/C - Non Comparator

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Hazardous Hazardous Resource Solid Waste Aide Solid Waste Benchmark/ Comparator Agency Match Waste N/C Waste Recovery N/C N/C N/C N/C N/C HHW Technician HHW Technician II Inspector II Technician II Technician Worker II Top Step Salary $ 4,362 $5,098 $4,533 $3,987 $6,689 $6,141 $6,536

Adjusted Top Step $ 4,362 $ 4,945 $ 4,073 $ 3,598 $ 6,021 $ 5,392 $ 5,698

Classic1 2%@55 2.7%@55 2%@60 2%@60 2%@60 2%@55 2%@55 Enhanced Formula Cost $ 118 $ 316 $ 61 $ 54 $ 90 $ 146 $ 154 EE Cost Sharing $ ‐102 $ ‐57 ER Paid Member Contrib $ 305 Calc Classic EPMC as Spec Comp $ 21 Single Highest Year $ 30 $ 27 $ 28 Retirement Social Security $ 307 $ 223 $ 373 Deferred Compensation $ 162 Other Ret. Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,339 $ 1,810 $ 2,648 Dental $ 137 $ 127 $ 80 $ 142 Vision $ 10 $ 19 $ 6$ 46

Insurance Life $ 7 $ 12 $ 2$ 8$ 4$ 21 $ 12 LTD $ 0$ 26 $ 22 $ 32 Vacation $ 273 $ 285 $ 235 $ 221 $ 625 $ 311 $ 570 Holidays2 $ 235 $ 257 $ 219 $ 194 $ 301 $ 290 $ 307

Leaves Admin Leave $ 66 Auto Allow

Benefit Package Total $ 3,280 $ 0 $ 2,589 $ 2,925 $ 0 $ 2,302 $ 0 $ 0 $ 3,289 $ 0 $ 0 $ 3,007 $ 3,948

N/C - Non Comparator 1 - City of Redding: Employees receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for Tier 1 Classic employees hired before 1/5/11 with 5+ years of service. 2 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 Hazardous Waste Technician II Total Salary Next Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Percentage Salary Wages Top Step Package Increase Comp Date Increase 1 Salinas Valley Solid Waste Authority HHW Technician $6,536 114.7% $ 5,698 $ 3,948 $ 9,647 7/1/2019 unknown unknown 2 County of Santa Cruz Solid Waste Inspector II $6,689 111.1% $ 6,021 $ 3,289 $ 9,310 9/21/2019 unknown unknown 3 Monterey Regional Waste Management District HHW Technician $6,141 113.9% $ 5,392 $ 3,007 $ 8,399 7/1/2019 7/1/2020 3.50% 4 Humboldt Waste Management Authority Hazardous Waste Technician II $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 5 City of Redding Hazardous Waste Technician $5,098 103.1% $ 4,945 $ 2,589 $ 7,534 1/1/2017 unknown unknown 6 City of Santa Cruz Resource Recovery Worker II $4,533 111.3% $ 4,073 $ 2,925 $ 6,998 3/23/2019 3/7/2020 3.00% 7 City of Watsonville Solid Waste Aide II $3,987 110.8% $ 3,598 $ 2,302 $ 5,900 7/1/2019 unknown unknown 8 City of Oxnard N/C 9 City of Santa Maria N/C 10 County of Sacramento N/C 11 County of San Joaquin N/C 12 County of Stanislaus N/C 13 County Sanitation Districts of Los Angeles County N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 5,497 $ 4,954 $ 7,965 % Humboldt Waste Management Authority Above/Below ‐26.0% ‐13.6% ‐4.2%

Median of Comparators $ 5,620 $ 5,168 $ 7,966 % Humboldt Waste Management Authority Above/Below ‐28.8% ‐18.5% ‐4.2%

Number of Matches 666

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 Health and Safety Coordinator II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County of Sacramento Safety Specialist $8,190 109.1% $ 7,507 $ 3,022 $ 10,529 6/23/2019 6/21/2020 2‐4% based on CPI March 2 2 County Sanitation Districts of Los Angeles County Health and Safety Analyst Trainee $7,550 113.4% $ 6,658 $ 3,217 $ 9,874 7/1/2019 7/1/2020 depends on March 2020 CPI 3 County of Stanislaus Staff Services Analyst $5,592 106.2% $ 5,266 $ 2,882 $ 8,148 7/1/2019 7/1/2020 3.00% 4 Humboldt Waste Management Authority Health and Safety Coordinator II $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 5 City of Oxnard N/C 6 City of Redding N/C 7 City of Santa Cruz N/C 8 City of Santa Maria N/C 9 City of Watsonville N/C 10 County of San Joaquin N/C 11 County of Santa Cruz N/C 12 Monterey Regional Waste Management District N/C 13 Salinas Valley Solid Waste Authority N/C

Median of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Number of Matches 333

N/C - Non Comparator

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Health and Health and Staff Services Benchmark/ Comparator Agency Match Safety N/C N/C N/C N/C N/C Safety Specialist N/C N/C Safety Analyst N/C N/C Analyst Coordinator II Trainee Top Step Salary $ 4,362 $8,190 $5,592 $7,550

Adjusted Top Step $ 4,362 $ 7,507 $ 5,266 $ 6,658 Classic 2%@55 1.92%@60 2%@61 2%@55 Enhanced Formula Cost $ 118 $ 113 $ 79 $ 180 EE Cost Sharing $ ‐390 ER Paid Member Contrib $ 305 $ 386 $ 466 Calc Classic EPMC as Spec Comp $ 21 Single Highest Year $ 33 Retirement Social Security $ 465 $ 326 Deferred Compensation Other Ret. Cafeteria Health $ 2,173 $ 1,505 $ 1,839 $ 1,634 Dental $ 137 $ 119 $ 93 $ 143 Vision $ 10 $ 18 1, 2 Insurance Life $ 7 $ 3$ 0$ 3 LTD $ 14 Vacation $ 273 $ 432 $ 304 $ 410 Holidays3 $ 235 $ 390 $ 223 $ 333

Leaves Admin Leave Auto Allow

Benefit Package Total $ 3,280 $ 0 $ 0 $ 0 $ 0 $ 0 $ 3,022 $ 0 $ 0 $ 2,882 $ 3,217 $ 0 $ 0

N/C - Non Comparator 1 - County of San Joaquin: receives this amount after 10+ years of continuous service 2 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 3 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 Health and Safety Coordinator II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 County of Sacramento Safety Specialist $8,190 109.1% $ 7,507 $ 3,022 $ 10,529 6/23/2019 6/21/2020 2‐4% based on CPI March 2 2 County Sanitation Districts of Los Angeles County Health and Safety Analyst Trainee $7,550 113.4% $ 6,658 $ 3,217 $ 9,874 7/1/2019 7/1/2020 depends on March 2020 CPI 3 County of Stanislaus Staff Services Analyst $5,592 106.2% $ 5,266 $ 2,882 $ 8,148 7/1/2019 7/1/2020 3.00% 4 Humboldt Waste Management Authority Health and Safety Coordinator II $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 5 City of Oxnard N/C 6 City of Redding N/C 7 City of Santa Cruz N/C 8 City of Santa Maria N/C 9 City of Watsonville N/C 10 County of San Joaquin N/C 11 County of Santa Cruz N/C 12 Monterey Regional Waste Management District N/C 13 Salinas Valley Solid Waste Authority N/C

Median of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Number of Matches 333

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Landfill Supervisor Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County Sanitation Districts of Los Angeles [Solid Waste Operations Supervisor I/ Power Equipment Operator III] $8,544 113.4% $ 7,534 $ 3,406 $ 10,940 7/1/2019 7/1/2020 depends on March 2020 CPI 2 County of Santa Cruz6 [Public Works Supervisor/ Heavy Equipment Operator‐Disposal Site] $7,872 111.1% $ 7,086 $ 3,535 $ 10,621 9/21/2019 unknown unknown 3 Salinas Valley Solid Waste Authority10 [Field Operations Supervisor I/Heavy Equipment Operator Lead] $7,219 114.7% $ 6,294 $ 4,066 $ 10,360 7/1/2019 unknown unknown 4 Monterey Regional Waste Management [Site Maintenance Supervisor / Senior Site Maintenance Worker] $7,026 113.9% $ 6,169 $ 3,148 $ 9,317 7/1/2019 7/1/2020 3.50% 5 City of Watsonville3 [Integrated Waste Supervisor/ Utility Worker III] $6,680 110.8% $ 6,029 $ 3,145 $ 9,174 7/1/2019 7/1/2020 3.00% 6 City of Santa Maria2 [Solid Waste Landfill Supervisor/ Landfill Heavy Equipment Operator] $6,553 111.5% $ 5,877 $ 2,359 $ 8,236 5/21/2019 12/31/2019 1.50% 7 City of Santa Cruz1 [Resource Recovery Supervisor (Landfill)/ Resource Recovery Equipment Operator] $6,470 111.3% $ 5,813 $ 3,361 $ 9,174 8/24/2019 8/22/2020 4.00% 8 County of Stanislaus7 [Manager I / Landfill Lead Worker] $6,119 106.2% $ 5,762 $ 3,213 $ 8,975 7/1/2019 7/1/2020 3.00% 9 County of Sacramento4 [Waste Management Operations Supervisor / Landfill Equipment Operator] $5,841 109.1% $ 5,354 $ 2,622 $ 7,975 7/1/2019 7/1/2020 2‐4% based on CPI March 2 10 Humboldt Waste Management Authority Landfill Supervisor $ 5,096 $ 5,096 $ 3,440 $ 8,536 7/1/2019 unknown unknown 11 City of Redding Working Supervisor $5,244 103.1% $ 5,086 $ 2,623 $ 7,710 1/1/2017 unknown unknown 12 County of San Joaquin5 [Solid Waste Recovery Supervisor / Senior Solid Waste Recovery Worker] $4,904 107.3% $ 4,570 $ 2,262 $ 6,832 7/9/2018 unknown unknown 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 6,588 $ 5,961 $ 9,029 % Humboldt Waste Management Authority Above/Below ‐29.3% ‐17.0% ‐5.8%

Median of Comparators $ 6,553 $ 5,877 $ 9,174 % Humboldt Waste Management Authority Above/Below ‐28.6% ‐15.3% ‐7.5%

Number of Matches 11 11 11

N/C - Non Comparator

1 - City of Santa Cruz: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

2 - City of Santa Maria: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

3 - City of Watsonville: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

4 - County of Sacramento: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

5 - County of San Joaquin: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

6 - County of Santa Cruz: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

7 - County of Stanislaus: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

8 - County Sanitation Districts of Los Angeles County: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

9 - Monterey Regional Waste Management District: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

10 - Salinas Valley Solid Waste Authority: Span of Responsibility Match: This hybrid match represents that the duties are bridged by a higher and lower level classification at the comparator agency. The salary displayed is an average of the matches.

Page 9a of 45 March 12, 2020 Appendix IIa - HWMA TC Printed on Recycled Paper Page 130 of 162 Humboldt Waste Management Authority Appendix II: Benefit Detail November 2019

Humboldt County Monterey Salinas Valley Waste City of Santa City of Santa City of County of County of San County of County of Sanitation Regional Waste Agency City of Oxnard City of Redding Solid Waste Management Cruz Maria Watsonville Sacramento Joaquin Santa Cruz Stanislaus Districts of Los Management Authority Authority Angeles County District [Resource [Waste Recovery [Solid Waste [Solid Waste [Public Works [Solid Waste [Site [Field [Integrated Management Supervisor Landfill Recovery Supervisor/ Operations Maintenance Operations Waste Operations [Manager I / Landfill Working (Landfill)/ Supervisor/ Supervisor / Heavy Supervisor I/ Supervisor / Supervisor Benchmark/ Comparator Agency Match N/C Supervisor / Supervisor / Landfill Lead Supervisor Supervisor Resource Landfill Heavy Senior Solid Equipment Power Senior Site I/Heavy Utility Worker Landfill Worker] Recovery Equipment Waste Recovery Operator‐ Equipment Maintenance Equipment III] Equipment Equipment Operator] Worker] Disposal Site] Operator III] Worker] Operator Lead] Operator] Operator] Top Step Salary $ 5,096 $5,244 $6,470 $6,553 $6,680 $5,841 $4,904 $7,872 $6,119 $8,544 $7,026 $7,219

Adjusted Top Step $ 5,096 $ 5,086 $ 5,813 $ 5,877 $ 6,029 $ 5,354 $ 4,570 $ 7,086 $ 5,762 $ 7,534 $ 6,169 $ 6,294

Classic1 2%@55 2.7%@55 2%@60 2%@55 2%@60 1.92%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 138 $ 326 $ 87 $ 159 $ 90 $ 80 $ 123 $ 106 $ 86 $ 203 $ 167 $ 170 EE Cost Sharing $ ‐233 $ ‐29 $ ‐278 $ ‐63 ER Paid Member Contrib $ 357 $ 275 $ 527 Calc Classic EPMC as Spec Comp $ 25 Single Highest Year $ 31 $ 23 $ 38 $ 31 $ 31 Retirement Social Security $ 315 $ 374 $ 332 $ 283 $ 439 $ 357 Deferred Compensation $ 108 $ 86 $ 185 Other Ret. Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,674 $ 1,610 $ 1,505 $ 1,298 $ 1,810 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 81 $ 119 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 18 $ 46 2, 3 Insurance Life $ 7 $ 12 $ 2$ 11 $ 8$ 3$ 1$ 4$ 2$ 3$ 24 $ 14 LTD4 $ 0$ 37 $ 30 $ 12 $ 16 $ 25 $ 37 Vacation $ 319 $ 293 $ 335 $ 226 $ 371 $ 308 $ 264 $ 736 $ 332 $ 464 $ 356 $ 629 Holidays5 $ 274 $ 264 $ 313 $ 271 $ 325 $ 278 $ 246 $ 354 $ 244 $ 377 $ 332 $ 339

Leaves Admin Leave $ 255 $ 155 $ 73 Auto Allow

Benefit Package Total $ 3,440 $ 0 $ 2,623 $ 3,361 $ 2,359 $ 3,145 $ 2,622 $ 2,262 $ 3,535 $ 3,213 $ 3,406 $ 3,148 $ 4,066

N/C - Non Comparator 1 - City of Redding: Employees receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for Tier 1 Classic employees hired before 1/5/11 with 5+ years of service. 2 - County of San Joaquin: receives this amount after 10+ years of continuous service 3 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 4 - City of Santa Maria: Employee pays premium for first $3000 of monthly salary; City pays premium on excess of $3000 monthly salary up to $5000 monthly salary maximum; City pays 1.51% in excess of $3000/month up to $5000 per month = 1.51% x $2000/month max 5 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Landfill Supervisor Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 County Sanitation Districts of Los Angeles [Solid Waste Operations Supervisor I/ Power Equipment Operator III] $8,544 113.4% $ 7,534 $ 3,406 $ 10,940 7/1/2019 7/1/2020 depends on March 2020 CPI 2 County of Santa Cruz6 [Public Works Supervisor/ Heavy Equipment Operator‐Disposal Site] $7,872 111.1% $ 7,086 $ 3,535 $ 10,621 9/21/2019 unknown unknown 3 Salinas Valley Solid Waste Authority10 [Field Operations Supervisor I/Heavy Equipment Operator Lead] $7,219 114.7% $ 6,294 $ 4,066 $ 10,360 7/1/2019 unknown unknown 4 Monterey Regional Waste Management [Site Maintenance Supervisor / Senior Site Maintenance Worker] $7,026 113.9% $ 6,169 $ 3,148 $ 9,317 7/1/2019 7/1/2020 3.50% 5 City of Santa Cruz1 [Resource Recovery Supervisor (Landfill)/ Resource Recovery Equipment Operator] $6,470 111.3% $ 5,813 $ 3,361 $ 9,174 8/24/2019 8/22/2020 4.00% 6 City of Watsonville3 [Integrated Waste Supervisor/ Utility Worker III] $6,680 110.8% $ 6,029 $ 3,145 $ 9,174 7/1/2019 7/1/2020 3.00% 7 County of Stanislaus7 [Manager I / Landfill Lead Worker] $6,119 106.2% $ 5,762 $ 3,213 $ 8,975 7/1/2019 7/1/2020 3.00% 8 Humboldt Waste Management Authority Landfill Supervisor $ 5,096 $ 5,096 $ 3,440 $ 8,536 7/1/2019 unknown unknown 9 City of Santa Maria2 [Solid Waste Landfill Supervisor/ Landfill Heavy Equipment Operator] $6,553 111.5% $ 5,877 $ 2,359 $ 8,236 5/21/2019 12/31/2019 1.50% 10 County of Sacramento4 [Waste Management Operations Supervisor / Landfill Equipment Operator] $5,841 109.1% $ 5,354 $ 2,622 $ 7,975 7/1/2019 7/1/2020 2‐4% based on CPI March 2 11 City of Redding Working Supervisor $5,244 103.1% $ 5,086 $ 2,623 $ 7,710 1/1/2017 unknown unknown 12 County of San Joaquin5 [Solid Waste Recovery Supervisor / Senior Solid Waste Recovery Worker] $4,904 107.3% $ 4,570 $ 2,262 $ 6,832 7/9/2018 unknown unknown 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $ 6,588 $ 5,961 $ 9,029 % Humboldt Waste Management Authority Above/Below ‐29.3% ‐17.0% ‐5.8%

Median of Comparators $ 6,553 $ 5,877 $ 9,174 % Humboldt Waste Management Authority Above/Below ‐28.6% ‐15.3% ‐7.5%

Number of Matches 11 11 11

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 Lead Operator Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Equipment Operator‐Driver‐Lead $6,070 114.7% $ 5,292 $ 3,871 $ 9,163 7/1/2019 unknown unknown 2 County of Sacramento Transfer Equipment Operator $5,650 109.1% $ 5,179 $ 2,589 $ 7,768 6/23/2019 6/21/2020 2‐4% based on CPI March 2 3 Monterey Regional Waste Management District Sort Systems Operator $5,847 113.9% $ 5,133 $ 2,961 $ 8,094 7/1/2019 7/1/2020 3.50% 4 County Sanitation Districts of Los Angeles County Lead Site Maintenance Worker $5,506 113.4% $ 4,855 $ 2,778 $ 7,633 7/1/2019 7/1/2020 depends on March 2020 CPI 5 City of Santa Cruz Senior Resource Recovery Worker $4,935 111.3% $ 4,434 $ 2,964 $ 7,398 3/23/2019 3/7/2020 3.00% 6 Humboldt Waste Management Authority Lead Operator $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 7 County of Stanislaus Landfill Equipment Operator III $4,626 106.2% $ 4,356 $ 2,721 $ 7,077 7/1/2019 7/1/2020 3.00% 8 City of Oxnard N/C 9 City of Redding N/C 10 City of Santa Maria N/C 11 City of Watsonville N/C 12 County of San Joaquin N/C 13 County of Santa Cruz N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $5,439 $ 4,875 $ 7,856 % Humboldt Waste Management Authority Above/Below ‐24.7% ‐11.8% ‐2.8%

Median of Comparators $5,578 $ 4,994 $ 7,700 % Humboldt Waste Management Authority Above/Below ‐27.9% ‐14.5% ‐0.8%

Number of Matches 666

N/C - Non Comparator

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Senior Resource Transfer Landfill Lead Site Equipment Sort Systems Benchmark/ Comparator Agency Match Lead Operator N/C N/C Recovery N/C N/C Equipment N/C N/C Equipment Maintenance Operator‐Driver‐ Operator Worker Operator Operator III Worker Lead

Top Step Salary $ 4,362 $4,935 $5,650 $4,626 $5,506 $5,847 $6,070

Adjusted Top Step $ 4,362 $ 4,434 $ 5,179 $ 4,356 $ 4,855 $ 5,133 $ 5,292 Classic 2%@55 2%@60 1.92%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 118 $ 67 $ 78 $ 65 $ 131 $ 139 $ 143 EE Cost Sharing $ ‐111 $ ‐269 $ ‐53 ER Paid Member Contrib1 $ 305 $ 266 $ 291 Calc Classic EPMC as Spec Comp $ 21 Single Highest Year $ 24 $ 26 $ 26 Retirement Social Security $ 321 $ 270 Deferred Compensation $ 154 Other Ret. Cafeteria $ 2,029 Health $ 2,173 $ 2,339 $ 1,505 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 119 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 18 $ 46 2, 3 Insurance Life $ 7 $ 2$ 3$ 0$ 1$ 20 $ 12 LTD $ 28 $ 10 $ 21 $ 32 Vacation $ 273 $ 256 $ 298 $ 251 $ 299 $ 296 $ 529 Holidays4 $ 235 $ 239 $ 269 $ 184 $ 243 $ 276 $ 285

Leaves Admin Leave $ 61 Auto Allow

Benefit Package Total $ 3,280 $ 0 $ 0 $ 2,964 $ 0 $ 0 $ 2,589 $ 0 $ 0 $ 2,721 $ 2,778 $ 2,961 $ 3,871

N/C - Non Comparator 1 - County Sanitation Districts of Los Angeles County: Employees pay 1% of the 7% PERS Member Contribution 2 - County of San Joaquin: receives this amount after 10+ years of continuous service 3 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 4 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 Lead Operator Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Equipment Operator‐Driver‐Lead $6,070 114.7% $ 5,292 $ 3,871 $ 9,163 7/1/2019 unknown unknown 2 Monterey Regional Waste Management District Sort Systems Operator $5,847 113.9% $ 5,133 $ 2,961 $ 8,094 7/1/2019 7/1/2020 3.50% 3 County of Sacramento Transfer Equipment Operator $5,650 109.1% $ 5,179 $ 2,589 $ 7,768 6/23/2019 6/21/2020 2‐4% based on CPI March 2 4 Humboldt Waste Management Authority Lead Operator $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 5 County Sanitation Districts of Los Angeles County Lead Site Maintenance Worker $5,506 113.4% $ 4,855 $ 2,778 $ 7,633 7/1/2019 7/1/2020 depends on March 2020 CPI 6 City of Santa Cruz Senior Resource Recovery Worker $4,935 111.3% $ 4,434 $ 2,964 $ 7,398 3/23/2019 3/7/2020 3.00% 7 County of Stanislaus Landfill Equipment Operator III $4,626 106.2% $ 4,356 $ 2,721 $ 7,077 7/1/2019 7/1/2020 3.00% 8 City of Oxnard N/C 9 City of Redding N/C 10 City of Santa Maria N/C 11 City of Watsonville N/C 12 County of San Joaquin N/C 13 County of Santa Cruz N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $5,439 $ 4,875 $ 7,856 % Humboldt Waste Management Authority Above/Below ‐24.7% ‐11.8% ‐2.8%

Median of Comparators $5,578 $ 4,994 $ 7,700 % Humboldt Waste Management Authority Above/Below ‐27.9% ‐14.5% ‐0.8%

Number of Matches 666

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 Materials Diversion Technician II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County of Santa Cruz Disposal Site Maintenance Worker $6,491 111.1% $ 5,842 $ 3,248 $ 9,091 9/21/2019 unknown unknown 2 City of Santa Cruz Resource Recovery Worker II $4,533 111.3% $ 4,073 $ 2,925 $ 6,998 3/23/2019 3/7/2020 3.00% 3 City of Redding Solid Waste Truck Driver I $3,977 103.1% $ 3,857 $ 2,324 $ 6,181 1/1/2017 unknown unknown 4 Humboldt Waste Management Authority Materials Diversion Technician II $ 3,809 $ 3,809 $ 3,159 $ 6,968 7/1/2019 unknown unknown 5 Monterey Regional Waste Management District MRF Associate Operator $4,336 113.9% $ 3,807 $ 2,720 $ 6,527 7/1/2019 7/1/2020 3.50% 6 Salinas Valley Solid Waste Authority Diversion Worker II $3,989 114.7% $ 3,478 $ 3,518 $ 6,996 7/1/2019 unknown unknown 7 County Sanitation Districts of Los Angeles County Site Maintenance Worker $3,715 113.4% $ 3,276 $ 2,453 $ 5,729 7/1/2019 7/1/2020 depends on March 2020 CPI 8 County of San Joaquin Solid Waste Recovery Worker $3,217 107.3% $ 2,998 $ 1,939 $ 4,937 7/9/2018 unknown unknown 9 City of Oxnard N/C 10 City of Santa Maria N/C 11 City of Watsonville N/C 12 County of Sacramento N/C 13 County of Stanislaus N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $4,323 $ 3,904 $ 6,637 % Humboldt Waste Management Authority Above/Below ‐13.5% ‐2.5% 4.8%

Median of Comparators $3,989 $ 3,807 $ 6,527 % Humboldt Waste Management Authority Above/Below ‐4.7% 0.1% 6.3%

Number of Matches 777

N/C - Non Comparator

Page 11a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Page 136 of 162 Humboldt Waste Management Authority Appendix II: Benefit Detail November 2019

Materials Resource Solid Waste Disposal Site Site Solid Waste MRF Associate Diversion Benchmark/ Comparator Agency Match Diversion N/C Recovery N/C N/C N/C Recovery Maintenance N/C Maintenance Truck Driver I Operator Worker II Technician II Worker II Worker Worker Worker Top Step Salary $ 3,809 $3,977 $4,533 $3,217 $6,491 $3,715 $4,336 $3,989

Adjusted Top Step $ 3,809 $ 3,857 $ 4,073 $ 2,998 $ 5,842 $ 3,276 $ 3,807 $ 3,478

Classic1 2%@55 2.7%@55 2%@60 2%@55.5 2%@60 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 103 $ 247 $ 61 $ 81 $ 88 $ 88 $ 103 $ 94 EE Cost Sharing $ ‐102 $ ‐35 ER Paid Member Contrib2 $ 267 $ 197 Calc Classic EPMC as Spec Comp $ 19 Single Highest Year $ 23 $ 15 $ 16 $ 19 $ 17 Retirement Social Security $ 239 $ 186 $ 362 Deferred Compensation $ 114 Other Ret. Cafeteria $ 1,382 $ 2,029 Health $ 2,173 $ 2,339 $ 1,298 $ 1,810 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 20 $ 80 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 46 3, 4 Insurance Life $ 7 $ 9$ 2$ 1$ 4$ 1$ 15 $ 9 LTD $ 0$ 26 $ 7$ 16 $ 21 Vacation $ 238 $ 223 $ 235 $ 173 $ 607 $ 202 $ 220 $ 348 Holidays5 $ 205 $ 200 $ 219 $ 161 $ 292 $ 164 $ 205 $ 187

Leaves Admin Leave $ 40 Auto Allow

Benefit Package Total $ 3,159 $ 0 $ 2,324 $ 2,925 $ 0 $ 0 $ 0 $ 1,939 $ 3,248 $ 0 $ 2,453 $ 2,720 $ 3,518

N/C - Non Comparator 1 - City of Redding: Employees receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for Tier 1 Classic employees hired before 1/5/11 with 5+ years of service. 2 - County Sanitation Districts of Los Angeles County: Employees pay 1% of the 7% PERS Member Contribution 3 - County of San Joaquin: receives this amount after 10+ years of continuous service 4 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 5 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 Materials Diversion Technician II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 County of Santa Cruz Disposal Site Maintenance Worker $6,491 111.1% $ 5,842 $ 3,248 $ 9,091 9/21/2019 unknown unknown 2 City of Santa Cruz Resource Recovery Worker II $4,533 111.3% $ 4,073 $ 2,925 $ 6,998 3/23/2019 3/7/2020 3.00% 3 Salinas Valley Solid Waste Authority Diversion Worker II $3,989 114.7% $ 3,478 $ 3,518 $ 6,996 7/1/2019 unknown unknown 4 Humboldt Waste Management Authority Materials Diversion Technician II $ 3,809 $ 3,809 $ 3,159 $ 6,968 7/1/2019 unknown unknown 5 Monterey Regional Waste Management District MRF Associate Operator $4,336 113.9% $ 3,807 $ 2,720 $ 6,527 7/1/2019 7/1/2020 3.50% 6 City of Redding Solid Waste Truck Driver I $3,977 103.1% $ 3,857 $ 2,324 $ 6,181 1/1/2017 unknown unknown 7 County Sanitation Districts of Los Angeles County Site Maintenance Worker $3,715 113.4% $ 3,276 $ 2,453 $ 5,729 7/1/2019 7/1/2020 depends on March 2020 CPI 8 County of San Joaquin Solid Waste Recovery Worker $3,217 107.3% $ 2,998 $ 1,939 $ 4,937 7/9/2018 unknown unknown 9 City of Oxnard N/C 10 City of Santa Maria N/C 11 City of Watsonville N/C 12 County of Sacramento N/C 13 County of Stanislaus N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $4,323 $ 3,904 $ 6,637 % Humboldt Waste Management Authority Above/Below ‐13.5% ‐2.5% 4.8%

Median of Comparators $3,989 $ 3,807 $ 6,527 % Humboldt Waste Management Authority Above/Below ‐4.7% 0.1% 6.3%

Number of Matches 777

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Operations Supervisor Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County Sanitation Districts of Los Angeles County Solid Waste Operations Supervisor I $8,754 113.4% $ 7,720 $ 3,446 $ 11,165 7/1/2019 7/1/2020 depends on March 2020 CPI 2 County of Santa Cruz Public Works Supervisor $8,530 111.1% $ 7,678 $ 3,672 $ 11,350 9/21/2019 unknown unknown 3 Salinas Valley Solid Waste Authority Field Operations Supervisor I $8,367 114.7% $ 7,295 $ 4,261 $ 11,556 7/1/2019 unknown unknown 4 City of Santa Cruz Resource Recovery Supervisor (Recycling and Tipping) $7,143 111.3% $ 6,418 $ 3,417 $ 9,835 8/24/2019 8/22/2020 4.00% 5 County of Sacramento Waste Management Operations Supervisor $6,751 109.1% $ 6,188 $ 2,777 $ 8,965 7/1/2019 7/1/2020 2‐4% based on CPI March 2 6 Monterey Regional Waste Management District Senior MRF Operator $6,768 113.9% $ 5,942 $ 3,107 $ 9,049 7/1/2019 7/1/2020 3.50% 7 City of Redding1 [Public Works Supervisor / Transfer Station Operator] $6,059 103.1% $ 5,877 $ 2,871 $ 8,747 12/20/2015 7/12/2020 1.50% 8 City of Watsonville Waste and Recycling Center Supervisor $6,235 110.8% $ 5,627 $ 3,051 $ 8,678 7/1/2019 7/1/2020 3.00% 9 County of San Joaquin Solid Waste Recovery Supervisor $5,722 107.3% $ 5,333 $ 2,419 $ 7,751 7/9/2018 unknown unknown 10 Humboldt Waste Management Authority Operations Supervisor $ 5,096 $ 5,096 $ 3,440 $ 8,536 7/1/2019 unknown unknown 11 City of Oxnard N/C 12 City of Santa Maria N/C 13 County of Stanislaus N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $7,148 $ 6,453 $ 9,677 % Humboldt Waste Management Authority Above/Below ‐40.3% ‐26.6% ‐13.4%

Median of Comparators $6,768 $ 6,188 $ 9,049 % Humboldt Waste Management Authority Above/Below ‐32.8% ‐21.4% ‐6.0%

Number of Matches 999

N/C - Non Comparator

Page 12a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Humboldt Waste Management Authority Page 139 of 162 Appendix II: Benefit Detail November 2019

Humboldt County Monterey Salinas Valley Waste City of Santa City of Santa City of County of County of San County of County of Sanitation Regional Waste Agency City of Oxnard City of Redding Solid Waste Management Cruz Maria Watsonville Sacramento Joaquin Santa Cruz Stanislaus Districts of Los Management Authority Authority Angeles County District Resource [Public Works Waste Recovery Waste and Solid Waste Solid Waste Operations Supervisor / Management Public Works Senior MRF Field Operations Benchmark/ Comparator Agency Match N/C Supervisor N/C Recycling Center Recovery N/C Operations Supervisor Transfer Station Operations Supervisor Operator Supervisor I (Recycling and Supervisor Supervisor Supervisor I Operator] Supervisor Tipping) Top Step Salary $ 5,096 $6,059 $7,143 $6,235 $6,751 $5,722 $8,530 $8,754 $6,768 $8,367

Adjusted Top Step $ 5,096 $ 5,877 $ 6,418 $ 5,627 $ 6,188 $ 5,333 $ 7,678 $ 7,720 $ 5,942 $ 7,295

Classic1 2%@55 2.7%@55 2%@60 2%@60 1.92%@60 2%@55.5 2%@60 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 138 $ 376 $ 96 $ 84 $ 93 $ 144 $ 115 $ 208 $ 160 $ 197 EE Cost Sharing $ ‐59 $ ‐257 $ ‐321 $ ‐73 ER Paid Member Contrib $ 357 $ 318 $ 540 Calc Classic EPMC as Spec Comp $ 25 Single Highest Year $ 35 $ 27 $ 39 $ 30 $ 36 Retirement Social Security $ 364 $ 349 $ 384 $ 331 $ 476 Deferred Compensation $ 108 $ 178 Other Ret. Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,674 $ 1,505 $ 1,298 $ 1,810 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 119 $ 20 $ 80 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 46 2, 3 Insurance Life $ 7 $ 14 $ 2$ 8$ 3$ 1$ 4$ 3$ 23 $ 16 LTD $ 0$ 40 $ 12 $ 16 $ 24 $ 42 Vacation $ 319 $ 339 $ 370 $ 346 $ 356 $ 308 $ 797 $ 475 $ 343 $ 729 Holidays4 $ 274 $ 305 $ 346 $ 303 $ 321 $ 287 $ 384 $ 386 $ 320 $ 393

Leaves Admin Leave $ 113 $ 238 $ 84 Auto Allow

Benefit Package Total $ 3,440 $ 0 $ 2,871 $ 3,417 $ 0 $ 3,051 $ 2,777 $ 2,419 $ 3,672 $ 0 $ 3,446 $ 3,107 $ 4,261

N/C - Non Comparator 1 - City of Redding: Employees receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for Tier 1 Classic Employees hired before 1/1/13 with 10+ years of service 2 - County of San Joaquin: receives this amount after 10+ years of continuous service 3 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 4 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Operations Supervisor Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority Field Operations Supervisor I $8,367 114.7% $ 7,295 $ 4,261 $ 11,556 7/1/2019 unknown unknown 2 County of Santa Cruz Public Works Supervisor $8,530 111.1% $ 7,678 $ 3,672 $ 11,350 9/21/2019 unknown unknown 3 County Sanitation Districts of Los Angeles County Solid Waste Operations Supervisor I $8,754 113.4% $ 7,720 $ 3,446 $ 11,165 7/1/2019 7/1/2020 depends on March 2020 CPI 4 City of Santa Cruz Resource Recovery Supervisor (Recycling and Tipping) $7,143 111.3% $ 6,418 $ 3,417 $ 9,835 8/24/2019 8/22/2020 4.00% 5 Monterey Regional Waste Management District Senior MRF Operator $6,768 113.9% $ 5,942 $ 3,107 $ 9,049 7/1/2019 7/1/2020 3.50% 6 County of Sacramento Waste Management Operations Supervisor $6,751 109.1% $ 6,188 $ 2,777 $ 8,965 7/1/2019 7/1/2020 2‐4% based on CPI March 2 7 City of Redding1 [Public Works Supervisor / Transfer Station Operator] $6,059 103.1% $ 5,877 $ 2,871 $ 8,747 12/20/2015 7/12/2020 1.50% 8 City of Watsonville Waste and Recycling Center Supervisor $6,235 110.8% $ 5,627 $ 3,051 $ 8,678 7/1/2019 7/1/2020 3.00% 9 Humboldt Waste Management Authority Operations Supervisor $ 5,096 $ 5,096 $ 3,440 $ 8,536 7/1/2019 unknown unknown 10 County of San Joaquin Solid Waste Recovery Supervisor $5,722 107.3% $ 5,333 $ 2,419 $ 7,751 7/9/2018 unknown unknown 11 City of Oxnard N/C 12 City of Santa Maria N/C 13 County of Stanislaus N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $7,148 $ 6,453 $ 9,677 % Humboldt Waste Management Authority Above/Below ‐40.3% ‐26.6% ‐13.4%

Median of Comparators $6,768 $ 6,188 $ 9,049 % Humboldt Waste Management Authority Above/Below ‐32.8% ‐21.4% ‐6.0%

Number of Matches 999

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Program Analyst II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County of Santa Cruz Departmental Administrative Analyst $8,573 111.1% $ 7,716 $ 3,731 $ 11,447 9/21/2019 9/20/2020 2.75% 2 Salinas Valley Solid Waste Authority1 [Contracts and Grants Analyst / Recycling Coordinator] $8,367 114.7% $ 7,295 $ 4,261 $ 11,556 7/1/2019 unknown unknown 3 City of Santa Cruz Management Analyst $7,880 111.3% $ 7,080 $ 3,279 $ 10,359 8/24/2019 8/22/2020 4.00% 4 Monterey Regional Waste Management District Public Education and Outreach Coordinator $8,032 113.9% $ 7,052 $ 3,309 $ 10,361 7/1/2019 7/1/2020 3.50% 5 County of San Joaquin Management Analyst II $7,023 107.3% $ 6,545 $ 2,668 $ 9,213 7/9/2018 unknown unknown 6 City of Redding Management Analyst II $6,448 103.1% $ 6,254 $ 2,966 $ 9,220 4/10/2016 7/12/2020 1.50% 7 City of Watsonville Administrative Analyst $6,908 110.8% $ 6,235 $ 3,145 $ 9,379 7/1/2019 7/1/2020 3.00% 8 County Sanitation Districts of Los Angeles County Administrative Aide II $6,690 113.4% $ 5,899 $ 3,053 $ 8,953 7/1/2019 7/1/2020 depends on March 2020 CPI 9 City of Santa Maria Utilities Analyst $6,131 111.5% $ 5,499 $ 2,318 $ 7,817 5/21/2019 12/31/2019 1.50% 10 County of Stanislaus Staff Services Analyst $5,592 106.2% $ 5,266 $ 2,882 $ 8,148 7/1/2019 7/1/2020 3.00% 11 Humboldt Waste Management Authority Program Analyst II $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 12 City of Oxnard N/C 13 County of Sacramento N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $7,164 $ 6,484 $ 9,645 % Humboldt Waste Management Authority Above/Below ‐64.2% ‐48.6% ‐26.2%

Median of Comparators $6,966 $ 6,400 $ 9,300 % Humboldt Waste Management Authority Above/Below ‐59.7% ‐46.7% ‐21.7%

Number of Matches 10 10 10

N/C - Non Comparator

1 - Salinas Valley Solid Waste Authority: Functional Match: This hybrid match represents that the duties of the class are performed by more than one class at the comparator agency. The salary displayed is an average of the matches.

Page 13a of 45 Appendix IIa - HWMA TC March 12, 2020 Printed on Recycled Paper Page 142 of 162 Humboldt Waste Management Authority Appendix II: Benefit Detail November 2019

Humboldt County Monterey Salinas Valley Waste City of Santa City of Santa City of County of County of San County of Santa County of Sanitation Regional Waste Agency City of Oxnard City of Redding Solid Waste Management Cruz Maria Watsonville Sacramento Joaquin Cruz Stanislaus Districts of Los Management Authority Authority Angeles County District [Contracts and Departmental Public Education Program Management Management Administrative Management Staff Services Administrative Grants Analyst / Benchmark/ Comparator Agency Match N/C Utilities Analyst N/C Administrative and Outreach Analyst II Analyst II Analyst Analyst Analyst II Analyst Aide II Recycling Analyst Coordinator Coordinator] Top Step Salary $ 4,362 $6,448 $7,880 $6,131 $6,908 $7,023 $8,573 $5,592 $6,690 $8,032 $8,367

Adjusted Top Step $ 4,362 $ 6,254 $ 7,080 $ 5,499 $ 6,235 $ 6,545 $ 7,716 $ 5,266 $ 5,899 $ 7,052 $ 7,295

Classic1 2%@55 2.7%@55 2%@60 2%@55 2%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 118 $ 400 $ 106 $ 148 $ 94 $ 177 $ 116 $ 79 $ 159 $ 190 $ 197 EE Cost Sharing $ ‐63 $ ‐283 $ ‐27 $ ‐73 ER Paid Member Contrib $ 305 $ 413 Calc Classic EPMC as Spec Comp $ 21 Single Highest Year $ 38 $ 33 $ 30 $ 35 $ 36 Retirement Social Security $ 388 $ 387 $ 406 $ 478 $ 326 Deferred Compensation $ 212 Other Ret. Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,202 $ 1,610 $ 1,298 $ 1,662 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 81 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 18 $ 46 2, 3 Insurance Life $ 7 $ 15 $ 2$ 11 $ 8$ 1$ 9$ 0$ 3$ 27 $ 16 LTD4 $ 0$ 45 $ 30 $ 12 $ 74 $ 12 $ 29 $ 42 Vacation $ 273 $ 361 $ 408 $ 211 $ 384 $ 378 $ 623 $ 304 $ 363 $ 407 $ 729 Holidays5 $ 235 $ 325 $ 381 $ 254 $ 336 $ 352 $ 386 $ 223 $ 295 $ 380 $ 393

Leaves Admin Leave $ 120 $ 272 $ 324 $ 297 $ 84 Auto Allow

Benefit Package Total $ 3,280 $ 0 $ 2,966 $ 3,279 $ 2,318 $ 3,145 $ 0 $ 2,668 $ 3,731 $ 2,882 $ 3,053 $ 3,309 $ 4,261

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Program Analyst II Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Salinas Valley Solid Waste Authority1 [Contracts and Grants Analyst / Recycling Coordinator] $8,367 114.7% $ 7,295 $ 4,261 $ 11,556 7/1/2019 unknown unknown 2 County of Santa Cruz Departmental Administrative Analyst $8,573 111.1% $ 7,716 $ 3,731 $ 11,447 9/21/2019 9/20/2020 2.75% 3 Monterey Regional Waste Management District Public Education and Outreach Coordinator $8,032 113.9% $ 7,052 $ 3,309 $ 10,361 7/1/2019 7/1/2020 3.50% 4 City of Santa Cruz Management Analyst $7,880 111.3% $ 7,080 $ 3,279 $ 10,359 8/24/2019 8/22/2020 4.00% 5 City of Watsonville Administrative Analyst $6,908 110.8% $ 6,235 $ 3,145 $ 9,379 7/1/2019 7/1/2020 3.00% 6 City of Redding Management Analyst II $6,448 103.1% $ 6,254 $ 2,966 $ 9,220 4/10/2016 7/12/2020 1.50% 7 County of San Joaquin Management Analyst II $7,023 107.3% $ 6,545 $ 2,668 $ 9,213 7/9/2018 unknown unknown 8 County Sanitation Districts of Los Angeles County Administrative Aide II $6,690 113.4% $ 5,899 $ 3,053 $ 8,953 7/1/2019 7/1/2020 depends on March 2020 CPI 9 County of Stanislaus Staff Services Analyst $5,592 106.2% $ 5,266 $ 2,882 $ 8,148 7/1/2019 7/1/2020 3.00% 10 City of Santa Maria Utilities Analyst $6,131 111.5% $ 5,499 $ 2,318 $ 7,817 5/21/2019 12/31/2019 1.50% 11 Humboldt Waste Management Authority Program Analyst II $ 4,362 $ 4,362 $ 3,280 $ 7,642 7/1/2019 unknown unknown 12 City of Oxnard N/C 13 County of Sacramento N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $7,164 $ 6,484 $ 9,645 % Humboldt Waste Management Authority Above/Below ‐64.2% ‐48.6% ‐26.2%

Median of Comparators $6,966 $ 6,400 $ 9,300 % Humboldt Waste Management Authority Above/Below ‐59.7% ‐46.7% ‐21.7%

Number of Matches 10 10 10

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019 Scale Attendant Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 Monterey Regional Waste Management District Weighmaster $5,994 113.9% $ 5,263 $ 2,984 $ 8,247 7/1/2019 7/1/2020 3.50% 2 County Sanitation Districts of Los Angeles County Weighscale Operator $5,828 113.4% $ 5,139 $ 2,836 $ 7,975 7/1/2019 7/1/2020 depends on March 2020 CPI 3 County of Santa Cruz Cashier, Disposal Site $5,509 111.1% $ 4,959 $ 3,044 $ 8,003 9/21/2019 unknown unknown 4 City of Watsonville Public Drop‐off Attendant II $5,027 110.8% $ 4,537 $ 2,482 $ 7,019 7/1/2019 unknown unknown 5 Salinas Valley Solid Waste Authority Scalehouse Cashier $5,106 114.7% $ 4,452 $ 3,707 $ 8,158 7/1/2019 unknown unknown 6 County of Stanislaus Account Clerk III $4,020 106.2% $ 3,785 $ 2,620 $ 6,406 7/1/2019 7/1/2020 3.00% 7 County of Sacramento Scale Attendant I $4,126 109.1% $ 3,782 $ 2,329 $ 6,111 6/23/2019 6/21/2020 2‐4% based on CPI March 2 8 City of Santa Maria Account Clerk‐Scale House $4,134 111.5% $ 3,708 $ 2,128 $ 5,835 5/21/2019 12/31/2019 1.50% 9 City of Santa Cruz Landfill Gate Attendant $4,104 111.3% $ 3,687 $ 2,884 $ 6,571 3/23/2019 3/7/2020 3.00% 10 Humboldt Waste Management Authority Scale Attendant $ 3,642 $ 3,642 $ 3,123 $ 6,765 7/1/2019 unknown unknown 11 County of San Joaquin Cashier Clerk $3,891 107.3% $ 3,626 $ 2,068 $ 5,694 7/9/2018 unknown unknown 12 City of Redding Clerk II $3,326 103.1% $ 3,226 $ 2,137 $ 5,363 4/10/2016 7/12/2020 1.50% 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $4,642 $ 4,197 $ 6,853 % Humboldt Waste Management Authority Above/Below ‐27.5% ‐15.2% ‐1.3%

Median of Comparators $4,134 $ 3,785 $ 6,571 % Humboldt Waste Management Authority Above/Below ‐13.5% ‐3.9% 2.9%

Number of Matches 11 11 11

N/C - Non Comparator

Page 14a of 45 Appendix IIb - HWMA Benefit Details March 12, 2020 Printed on Recycled Paper Humboldt Waste Management Authority Page 145 of 162 Appendix II: Benefit Detail November 2019

Landfill Gate Account Clerk‐ Public Drop‐off Scale Attendant Cashier, Weighscale Scalehouse Benchmark/ Comparator Agency Match Scale Attendant N/C Clerk II Cashier Clerk Account Clerk III Weighmaster Attendant Scale House Attendant II I Disposal Site Operator Cashier

Top Step Salary $ 3,642 $3,326 $4,104 $4,134 $5,027 $4,126 $3,891 $5,509 $4,020 $5,828 $5,994 $5,106

Adjusted Top Step $ 3,642 $ 3,226 $ 3,687 $ 3,708 $ 4,537 $ 3,782 $ 3,626 $ 4,959 $ 3,785 $ 5,139 $ 5,263 $ 4,452

Classic1 2%@55 2.7%@55 2%@60 2%@55 2%@60 1.92%@60 2%@55.5 2%@60 2%@61 2%@55 2%@55 2%@55 Enhanced Formula Cost $ 98 $ 206 $ 55 $ 100 $ 68 $ 57 $ 98 $ 74 $ 57 $ 139 $ 142 $ 120 EE Cost Sharing $ ‐32 $ ‐92 $ ‐19 $ ‐196 $ ‐45 ER Paid Member Contrib2 $ 255 $ 194 $ 308 Calc Classic EPMC as Spec Comp $ 18 Single Highest Year $ 19 $ 18 $ 26 $ 26 $ 22 Retirement Social Security $ 200 $ 281 $ 234 $ 225 $ 307 $ 235 Deferred Compensation $ 158 Other Ret. Cafeteria $ 1,382 $ 1,601 $ 2,029 Health $ 2,173 $ 2,339 $ 1,610 $ 1,505 $ 1,298 $ 1,810 $ 1,839 $ 1,634 $ 2,648 Dental $ 137 $ 127 $ 81 $ 119 $ 20 $ 80 $ 93 $ 143 $ 142 Vision $ 10 $ 19 $ 3$ 6$ 18 $ 46 3, 4 Insurance Life $ 7 $ 8$ 2$ 11 $ 8$ 3$ 1$ 4$ 0$ 1$ 20 $ 10 LTD5 $ 0$ 23 $ 30 $ 11 $ 22 $ 27 Vacation $ 228 $ 186 $ 213 $ 143 $ 279 $ 217 $ 209 $ 515 $ 218 $ 316 $ 304 $ 445 Holidays6 $ 196 $ 168 $ 199 $ 171 $ 244 $ 196 $ 195 $ 248 $ 160 $ 257 $ 283 $ 240

Leaves Admin Leave $ 51 Auto Allow

Benefit Package Total $ 3,123 $ 0 $ 2,137 $ 2,884 $ 2,128 $ 2,482 $ 2,329 $ 2,068 $ 3,044 $ 2,620 $ 2,836 $ 2,984 $ 3,707

N/C - Non Comparator 1 - City of Redding: Employees receive combination of PERS (2% at 55) and PARS (0.7% at 55). PARS benefit available for Tier 1 Classic Employees hired before 1/1/13 with 10+ years of service 2 - County Sanitation Districts of Los Angeles County: Employees pay 1% of the 7% PERS Member Contribution 3 - County of San Joaquin: receives this amount after 10+ years of continuous service 4 - County Sanitation Districts of Los Angeles County: Life Insurance only; Employee can pay for AD&D coverage 5 - City of Santa Maria: Employee pays premium for first $3000 of monthly salary; City pays premium on excess of $3000 monthly salary up to $5000 monthly salary maximum; City pays 1.51% in excess of $3000/month up to $5000 per month = 1.51% x $2000/month max 6 - County of San Joaquin: Employees hired after 1/6/15 only receive 80hrs of Holiday, not eligible for 32hrs of floating holiday.

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019 Scale Attendant Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 Monterey Regional Waste Management District Weighmaster $5,994 113.9% $ 5,263 $ 2,984 $ 8,247 7/1/2019 7/1/2020 3.50% 2 Salinas Valley Solid Waste Authority Scalehouse Cashier $5,106 114.7% $ 4,452 $ 3,707 $ 8,158 7/1/2019 unknown unknown 3 County of Santa Cruz Cashier, Disposal Site $5,509 111.1% $ 4,959 $ 3,044 $ 8,003 9/21/2019 unknown unknown 4 County Sanitation Districts of Los Angeles County Weighscale Operator $5,828 113.4% $ 5,139 $ 2,836 $ 7,975 7/1/2019 7/1/2020 depends on March 2020 CPI 5 City of Watsonville Public Drop‐off Attendant II $5,027 110.8% $ 4,537 $ 2,482 $ 7,019 7/1/2019 unknown unknown 6 Humboldt Waste Management Authority Scale Attendant $ 3,642 $ 3,642 $ 3,123 $ 6,765 7/1/2019 unknown unknown 7 City of Santa Cruz Landfill Gate Attendant $4,104 111.3% $ 3,687 $ 2,884 $ 6,571 3/23/2019 3/7/2020 3.00% 8 County of Stanislaus Account Clerk III $4,020 106.2% $ 3,785 $ 2,620 $ 6,406 7/1/2019 7/1/2020 3.00% 9 County of Sacramento Scale Attendant I $4,126 109.1% $ 3,782 $ 2,329 $ 6,111 6/23/2019 6/21/2020 2‐4% based on CPI March 2 10 City of Santa Maria Account Clerk‐Scale House $4,134 111.5% $ 3,708 $ 2,128 $ 5,835 5/21/2019 12/31/2019 1.50% 11 County of San Joaquin Cashier Clerk $3,891 107.3% $ 3,626 $ 2,068 $ 5,694 7/9/2018 unknown unknown 12 City of Redding Clerk II $3,326 103.1% $ 3,226 $ 2,137 $ 5,363 4/10/2016 7/12/2020 1.50% 13 City of Oxnard N/C

Top Step Adjusted Total Summary Results Salary Top Step Monthly Average of Comparators $4,642 $ 4,197 $ 6,853 % Humboldt Waste Management Authority Above/Below ‐27.5% ‐15.2% ‐1.3%

Median of Comparators $4,134 $ 3,785 $ 6,571 % Humboldt Waste Management Authority Above/Below ‐13.5% ‐3.9% 2.9%

Number of Matches 11 11 11

N/C - Non Comparator

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Humboldt Waste Management Authority Appendix II: Market Compensation Data (sorted by Top Monthly Salary) November 2019

Scalehouse Supervisor Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Labor Top Step Package Increase Comp Date 1 County Sanitation Districts of Los Angeles County Solid Waste Operations Coordinator II $7,739 113.4% $ 6,825 $ 3,183 $ 10,007 7/1/2019 7/1/2020 depends on March 2020 CPI 2 County of Santa Cruz Accounting Clerical Supervisor II $6,807 111.1% $ 6,127 $ 3,314 $ 9,441 9/21/2019 unknown unknown 3 Monterey Regional Waste Management District Scale Supervisor $6,938 113.9% $ 6,091 $ 3,134 $ 9,226 7/1/2019 7/1/2020 3.50% 4 Humboldt Waste Management Authority Scalehouse Supervisor $ 5,096 $ 5,096 $ 3,440 $ 8,536 7/1/2019 unknown unknown 5 City of Oxnard N/C 6 City of Redding N/C 7 City of Santa Cruz N/C 8 City of Santa Maria N/C 9 City of Watsonville N/C 10 County of Sacramento N/C 11 County of San Joaquin N/C 12 County of Stanislaus N/C 13 Salinas Valley Solid Waste Authority N/C

Median of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Number of Matches 333

N/C - Non Comparator

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Adjusted Top Step $ 5,096 $ 6,127 $ 6,825 $ 6,091 Classic 2%@55 2%@60 2%@55 2%@55 Enhanced Formula Cost $ 138 $ 92 $ 184 $ 164 EE Cost Sharing ER Paid Member Contrib1 $ 357 $ 409 Calc Classic EPMC as Spec Comp $ 25 Single Highest Year $ 34 $ 30 Retirement Social Security $ 380 Deferred Compensation $ 183 Other Ret. Cafeteria $ 2,029 Health $ 2,173 $ 1,810 $ 1,634 Dental $ 137 $ 80 $ 143 Vision $ 10 $ 6 2, 3 Insurance Life $ 7 $ 4$ 1$ 23 LTD $ 14 $ 25 Vacation $ 319 $ 636 $ 420 $ 351 Holidays4 $ 274 $ 306 $ 341 $ 328

Leaves Admin Leave Auto Allow

Benefit Package Total $ 3,440 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 3,314 $ 0 $ 3,183 $ 3,134 $ 0

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Humboldt Waste Management Authority Appendix II: Market Compensation Findings (sorted by Top Monthly Salary) November 2019

Scalehouse Supervisor Total Salary Top Step Cost of Adjusted Benefits Next Salary Rank Comparator Agency Classification Title Monthly Effective Next Percentage Increase Salary Wages Top Step Package Increase Comp Date 1 County Sanitation Districts of Los Angeles County Solid Waste Operations Coordinator II $7,739 113.4% $ 6,825 $ 3,183 $ 10,007 7/1/2019 7/1/2020 depends on March 2020 CPI 2 County of Santa Cruz Accounting Clerical Supervisor II $6,807 111.1% $ 6,127 $ 3,314 $ 9,441 9/21/2019 unknown unknown 3 Monterey Regional Waste Management District Scale Supervisor $6,938 113.9% $ 6,091 $ 3,134 $ 9,226 7/1/2019 7/1/2020 3.50% 4 Humboldt Waste Management Authority Scalehouse Supervisor $ 5,096 $ 5,096 $ 3,440 $ 8,536 7/1/2019 unknown unknown 5 City of Oxnard N/C 6 City of Redding N/C 7 City of Santa Cruz N/C 8 City of Santa Maria N/C 9 City of Watsonville N/C 10 County of Sacramento N/C 11 County of San Joaquin N/C 12 County of Stanislaus N/C 13 Salinas Valley Solid Waste Authority N/C

Median of Comparators Insuff. Data Insuff. Data Insuff. Data % Humboldt Waste Management Authority Above/Below Insuff. Data Insuff. Data Insuff. Data

Number of Matches 333

N/C - Non Comparator

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Appendix III

Salary Range Placement Recommendations

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Humboldt Waste Management Authority Appendix III: Proposed Range Placement Recommendations January 2020

Class Title Current % from Total Market Percent Proposed Proposed Percent Study Rationale Maximum Comp Median Placement Difference Salary Range Maximum Difference Benchmark Monthly Salary Monthly Salary Executive Director $10,335 4.3% $9,891 ‐4.30% 51 $10,003 ‐3.21% X Market and Range Placement; Y‐rate Environmental Health and Safety Director $7,629 ‐8.4% $8,270 8.40% 41 $7,815 2.43% X Internal Alignment: anchor to Operations Director Operations Director $7,629 ‐1.9% $7,774 1.90% 41 $7,815 2.43% X Market and Range Placement Finance and Administrative Services Director $7,629 1.4% $7,522 ‐1.40% 41 $7,815 2.43% X Internal Alignment: anchor to Operations Director

Landfill Supervisor $5,096 ‐7.5% $5,478 7.50% 26 $5,396 5.88% X Internal Alignment: anchor to Operations Supervisor Operations Supervisor $5,096 ‐6.0% $5,402 6.00% 26 $5,396 5.88% X Market and Range Placement Scalehouse Supervisor $5,096 Insufficient Data N/A N/A 26 $5,396 5.88% X Internal Alignment: anchor to Operations Supervisor Program Analyst II $4,362 ‐21.7% $5,309 21.70% 25 $5,264 20.68% X Market and Range Placement Program Analyst I $3,809 N/A N/A N/A 21 $4,769 25.21% Internal alignment; 10% below Program Analyst I Hazardous Waste Technician II (formerly $4,362 ‐4.2% $4,545 4.20% 19 $4,539 4.06% X Market and Range Placement Senior Technician‐Household Hazardous Waste) Health and Safety Coordinator II $4,362 Insufficient Data N/A N/A 19 $4,539 4.06% X Internal alignment: anchor to Hazardous Waste Technician Materials Diversion Technician III (Lead $4,362 ‐0.8% $4,397 0.80% 18 $4,429 1.53% X Market and Range Placement Operator) Hazardous Waste Technician I $3,809 N/A N/A N/A 15 $4,112 7.96% Internal alignment; 10% below Hazardous Waste Technician Account Clerk II (Confidential) $3,809 N/A N/A N/A 15 $4,112 7.96% Internal alignment, 5% above Account Clerk II Health and Safety Coordinator I $3,809 N/A N/A N/A 15 $4,112 7.96% Internal alignment; 10% below Health and Safety Coordinator II Account Clerk II $3,642 ‐7.4% $3,912 7.40% 13 $3,914 7.47% X Market and Range Placement Scale Attendant $3,642 2.9% $3,536 ‐2.90% 9 $3,546 ‐2.63% X Market and Range Placement; Y‐rate Materials Diversion Technician II (Operator $3,809 6.3% $3,569 ‐6.30% 9 $3,546 ‐6.90% X Market and Range Placement; Y‐rate Technician) Account Clerk I $2,910 N/A N/A N/A 9 $3,546 21.86% Internal alignment; 10% below Account Clerk II (non‐ Confidential) Materials Diversion Technician I (Utility $2,910 N/A N/A N/A 3 $3,058 5.08% Internal alignment; 15% below Materials Diversion Worker) Technician II

Note: CRV Specialist/Scale Attendant‐client not moving forward with this classification

Legend for columns: Column 1 ‐ Classification Title Column 2 ‐ Client's current monthly maximum salaries Column 3 ‐ Percentage above or below Total Compensation Market Median Column 4 ‐ Proposed maximum monthly salary Column 5 ‐ This percentage expresses the difference between the client's current salaries and the consultant's proposed salaries Column 6 ‐ Salary range number of the consultant's newly proposed salary range schedule based on client's current salary schedule Column 7 ‐ Proposed maximum monthly salary based on client's current salary schedule Column 8 ‐ This signifies if the position was included in the benchmark study Column 9 ‐ The rationale expresses how the consultant arrived at each proposed maximum monthly salary recommendation (i.e., the proposed range placement within the newly proposed salary range schedule)

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Appendix IV

Proposed Salary Schedule

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Annually Monthly Per Pay Period Hourly Salary Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 1 28,733 30,170 31,678 33,262 34,925 2,394 2,514 2,640 2,772 2,910 1,197.21 1,257.07 1,319.93 1,385.92 1,455.22 13.81 14.50 15.23 15.99 16.79 2 29,451 30,924 32,470 34,094 35,798 2,454 2,577 2,706 2,841 2,983 1,227.14 1,288.50 1,352.92 1,420.57 1,491.60 14.16 14.87 15.61 16.39 17.21 3 30,188 31,697 33,282 34,946 36,693 2,516 2,641 2,773 2,912 3,058 1,257.82 1,320.71 1,386.75 1,456.08 1,528.89 14.51 15.24 16.00 16.80 17.64 4 30,942 32,489 34,114 35,820 37,611 2,579 2,707 2,843 2,985 3,134 1,289.27 1,353.73 1,421.42 1,492.49 1,567.11 14.88 15.62 16.40 17.22 18.08 5 31,716 33,302 34,967 36,715 38,551 2,643 2,775 2,914 3,060 3,213 1,321.50 1,387.57 1,456.95 1,529.80 1,606.29 15.25 16.01 16.81 17.65 18.53 6 32,509 34,134 35,841 37,633 39,515 2,709 2,845 2,987 3,136 3,293 1,354.53 1,422.26 1,493.37 1,568.04 1,646.45 15.63 16.41 17.23 18.09 19.00 7 33,322 34,988 36,737 38,574 40,503 2,777 2,916 3,061 3,214 3,375 1,388.40 1,457.82 1,530.71 1,607.24 1,687.61 16.02 16.82 17.66 18.55 19.47 8 34,155 35,862 37,655 39,538 41,515 2,846 2,989 3,138 3,295 3,460 1,423.11 1,494.26 1,568.98 1,647.43 1,729.80 16.42 17.24 18.10 19.01 19.96 9 35,008 36,759 38,597 40,527 42,553 2,917 3,063 3,216 3,377 3,546 1,458.69 1,531.62 1,608.20 1,688.61 1,773.04 16.83 17.67 18.56 19.48 20.46 10 35,884 37,678 39,562 41,540 43,617 2,990 3,140 3,297 3,462 3,635 1,495.15 1,569.91 1,648.41 1,730.83 1,817.37 17.25 18.11 19.02 19.97 20.97 11 36,781 38,620 40,551 42,578 44,707 3,065 3,218 3,379 3,548 3,726 1,532.53 1,609.16 1,689.62 1,774.10 1,862.80 17.68 18.57 19.50 20.47 21.49 12 37,700 39,585 41,565 43,643 45,825 3,142 3,299 3,464 3,637 3,819 1,570.84 1,649.39 1,731.86 1,818.45 1,909.37 18.13 19.03 19.98 20.98 22.03 13 38,643 40,575 42,604 44,734 46,971 3,220 3,381 3,550 3,728 3,914 1,610.12 1,690.62 1,775.15 1,863.91 1,957.11 18.58 19.51 20.48 21.51 22.58 14 39,609 41,589 43,669 45,852 48,145 3,301 3,466 3,639 3,821 4,012 1,650.37 1,732.89 1,819.53 1,910.51 2,006.03 19.04 19.99 20.99 22.04 23.15 15 40,599 42,629 44,760 46,998 49,348 3,383 3,552 3,730 3,917 4,112 1,691.63 1,776.21 1,865.02 1,958.27 2,056.18 19.52 20.49 21.52 22.60 23.73 16 41,614 43,695 45,879 48,173 50,582 3,468 3,641 3,823 4,014 4,215 1,733.92 1,820.61 1,911.65 2,007.23 2,107.59 20.01 21.01 22.06 23.16 24.32 17 42,654 44,787 47,026 49,378 51,847 3,555 3,732 3,919 4,115 4,321 1,777.27 1,866.13 1,959.44 2,057.41 2,160.28 20.51 21.53 22.61 23.74 24.93 18 43,721 45,907 48,202 50,612 53,143 3,643 3,826 4,017 4,218 4,429 1,821.70 1,912.78 2,008.42 2,108.84 2,214.29 21.02 22.07 23.17 24.33 25.55 19 44,814 47,054 49,407 51,878 54,471 3,734 3,921 4,117 4,323 4,539 1,867.24 1,960.60 2,058.63 2,161.56 2,269.64 21.55 22.62 23.75 24.94 26.19 20 45,934 48,231 50,642 53,174 55,833 3,828 4,019 4,220 4,431 4,653 1,913.92 2,009.62 2,110.10 2,215.60 2,326.38 22.08 23.19 24.35 25.56 26.84 21 47,082 49,437 51,908 54,504 57,229 3,924 4,120 4,326 4,542 4,769 1,961.77 2,059.86 2,162.85 2,270.99 2,384.54 22.64 23.77 24.96 26.20 27.51 22 48,260 50,673 53,206 55,866 58,660 4,022 4,223 4,434 4,656 4,888 2,010.81 2,111.35 2,216.92 2,327.77 2,444.16 23.20 24.36 25.58 26.86 28.20 23 49,466 51,939 54,536 57,263 60,126 4,122 4,328 4,545 4,772 5,011 2,061.08 2,164.14 2,272.35 2,385.96 2,505.26 23.78 24.97 26.22 27.53 28.91 24 50,703 53,238 55,900 58,695 61,629 4,225 4,436 4,658 4,891 5,136 2,112.61 2,218.24 2,329.15 2,445.61 2,567.89 24.38 25.60 26.87 28.22 29.63 25 51,970 54,569 57,297 60,162 63,170 4,331 4,547 4,775 5,014 5,264 2,165.43 2,273.70 2,387.38 2,506.75 2,632.09 24.99 26.23 27.55 28.92 30.37 26 53,269 55,933 58,730 61,666 64,749 4,439 4,661 4,894 5,139 5,396 2,219.56 2,330.54 2,447.07 2,569.42 2,697.89 25.61 26.89 28.24 29.65 31.13 27 54,601 57,331 60,198 63,208 66,368 4,550 4,778 5,016 5,267 5,531 2,275.05 2,388.80 2,508.24 2,633.66 2,765.34 26.25 27.56 28.94 30.39 31.91 28 55,966 58,765 61,703 64,788 68,027 4,664 4,897 5,142 5,399 5,669 2,331.93 2,448.52 2,570.95 2,699.50 2,834.47 26.91 28.25 29.66 31.15 32.71 29 57,365 60,234 63,245 66,408 69,728 4,780 5,019 5,270 5,534 5,811 2,390.23 2,509.74 2,635.22 2,766.99 2,905.33 27.58 28.96 30.41 31.93 33.52 30 58,800 61,740 64,827 68,068 71,471 4,900 5,145 5,402 5,672 5,956 2,449.98 2,572.48 2,701.10 2,836.16 2,977.97 28.27 29.68 31.17 32.72 34.36 31 60,270 63,283 66,447 69,770 73,258 5,022 5,274 5,537 5,814 6,105 2,511.23 2,636.79 2,768.63 2,907.06 3,052.42 28.98 30.42 31.95 33.54 35.22 32 61,776 64,865 68,108 71,514 75,089 5,148 5,405 5,676 5,959 6,257 2,574.01 2,702.71 2,837.85 2,979.74 3,128.73 29.70 31.19 32.74 34.38 36.10 33 63,321 66,487 69,811 73,302 76,967 5,277 5,541 5,818 6,108 6,414 2,638.36 2,770.28 2,908.79 3,054.23 3,206.95 30.44 31.96 33.56 35.24 37.00 34 64,904 68,149 71,556 75,134 78,891 5,409 5,679 5,963 6,261 6,574 2,704.32 2,839.54 2,981.51 3,130.59 3,287.12 31.20 32.76 34.40 36.12 37.93 35 66,526 69,853 73,345 77,013 80,863 5,544 5,821 6,112 6,418 6,739 2,771.93 2,910.53 3,056.05 3,208.85 3,369.30 31.98 33.58 35.26 37.03 38.88 36 68,189 71,599 75,179 78,938 82,885 5,682 5,967 6,265 6,578 6,907 2,841.23 2,983.29 3,132.45 3,289.08 3,453.53 32.78 34.42 36.14 37.95 39.85 37 69,894 73,389 77,058 80,911 84,957 5,825 6,116 6,422 6,743 7,080 2,912.26 3,057.87 3,210.76 3,371.30 3,539.87 33.60 35.28 37.05 38.90 40.84 38 71,642 75,224 78,985 82,934 87,081 5,970 6,269 6,582 6,911 7,257 2,985.06 3,134.32 3,291.03 3,455.59 3,628.36 34.44 36.17 37.97 39.87 41.87 39 73,433 77,104 80,959 85,007 89,258 6,119 6,425 6,747 7,084 7,438 3,059.69 3,212.68 3,373.31 3,541.98 3,719.07 35.30 37.07 38.92 40.87 42.91 40 75,268 79,032 82,983 87,133 91,489 6,272 6,586 6,915 7,261 7,624 3,136.18 3,292.99 3,457.64 3,630.52 3,812.05 36.19 38.00 39.90 41.89 43.99 41 77,150 81,008 85,058 89,311 93,776 6,429 6,751 7,088 7,443 7,815 3,214.59 3,375.32 3,544.08 3,721.29 3,907.35 37.09 38.95 40.89 42.94 45.08 42 79,079 83,033 87,184 91,544 96,121 6,590 6,919 7,265 7,629 8,010 3,294.95 3,459.70 3,632.69 3,814.32 4,005.04 38.02 39.92 41.92 44.01 46.21 43 81,056 85,109 89,364 93,832 98,524 6,755 7,092 7,447 7,819 8,210 3,377.33 3,546.19 3,723.50 3,909.68 4,105.16 38.97 40.92 42.96 45.11 47.37 44 83,082 87,236 91,598 96,178 100,987 6,924 7,270 7,633 8,015 8,416 3,461.76 3,634.85 3,816.59 4,007.42 4,207.79 39.94 41.94 44.04 46.24 48.55 45 85,159 89,417 93,888 98,583 103,512 7,097 7,451 7,824 8,215 8,626 3,548.30 3,725.72 3,912.00 4,107.61 4,312.99 40.94 42.99 45.14 47.40 49.77 46 87,288 91,653 96,235 101,047 106,099 7,274 7,638 8,020 8,421 8,842 3,637.01 3,818.86 4,009.81 4,210.30 4,420.81 41.97 44.06 46.27 48.58 51.01 47 89,470 93,944 98,641 103,573 108,752 7,456 7,829 8,220 8,631 9,063 3,727.94 3,914.33 4,110.05 4,315.55 4,531.33 43.01 45.17 47.42 49.79 52.28 48 91,707 96,293 101,107 106,163 111,471 7,642 8,024 8,426 8,847 9,289 3,821.14 4,012.19 4,212.80 4,423.44 4,644.61 44.09 46.29 48.61 51.04 53.59

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Annually Monthly Per Pay Period Hourly Salary Range Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 Step 1 Step 2 Step 3 Step 4 Step 5 49 94,000 98,700 103,635 108,817 114,257 7,833 8,225 8,636 9,068 9,521 3,916.66 4,112.50 4,318.12 4,534.03 4,760.73 45.19 47.45 49.82 52.32 54.93 50 96,350 101,167 106,226 111,537 117,114 8,029 8,431 8,852 9,295 9,759 4,014.58 4,215.31 4,426.07 4,647.38 4,879.75 46.32 48.64 51.07 53.62 56.30 51 98,759 103,697 108,881 114,326 120,042 8,230 8,641 9,073 9,527 10,003 4,114.94 4,320.69 4,536.73 4,763.56 5,001.74 47.48 49.85 52.35 54.96 57.71 52 101,228 106,289 111,603 117,184 123,043 8,436 8,857 9,300 9,765 10,254 4,217.82 4,428.71 4,650.14 4,882.65 5,126.78 48.67 51.10 53.66 56.34 59.16 53 103,758 108,946 114,394 120,113 126,119 8,647 9,079 9,533 10,009 10,510 4,323.26 4,539.43 4,766.40 5,004.72 5,254.95 49.88 52.38 55.00 57.75 60.63 54 106,352 111,670 117,253 123,116 129,272 8,863 9,306 9,771 10,260 10,773 4,431.35 4,652.91 4,885.56 5,129.84 5,386.33 51.13 53.69 56.37 59.19 62.15 55 109,011 114,462 120,185 126,194 132,504 9,084 9,538 10,015 10,516 11,042 4,542.13 4,769.24 5,007.70 5,258.08 5,520.99 52.41 55.03 57.78 60.67 63.70 56 111,736 117,323 123,189 129,349 135,816 9,311 9,777 10,266 10,779 11,318 4,655.68 4,888.47 5,132.89 5,389.53 5,659.01 53.72 56.41 59.23 62.19 65.30 57 114,530 120,256 126,269 132,583 139,212 9,544 10,021 10,522 11,049 11,601 4,772.07 5,010.68 5,261.21 5,524.27 5,800.49 55.06 57.82 60.71 63.74 66.93 58 117,393 123,263 129,426 135,897 142,692 9, 783 10,272 10,785 11,325 11,891 4,891.38 5,135.94 5,392.74 5,662.38 5,945.50 56.44 59.26 62.22 65.34 68.60 59 120,328 126,344 132,661 139,295 146,259 10,027 10,529 11,055 11,608 12,188 5,013.66 5,264.34 5,527.56 5,803.94 6,094.14 57.85 60.74 63.78 66.97 70.32 60 123,336 129,503 135,978 142,777 149,916 10,278 10,792 11,331 11,898 12,493 5,139.00 5,395.95 5,665.75 5,949.04 6,246.49 59.30 62.26 65.37 68.64 72.07

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HUMBOLDT WASTE MANAGEMENT AUTHORITY

Staff Report

DATE: March 5, 2020 For Meeting of: March 12, 2020

FROM: Jill K. Duffy, Executive Director

SUBJECT: Item 7) Executive Director’s Report for Month of February & March 2020

RECOMMENDED ACTION: Informational Only

• Anthony Heacock was the successful recruit for the position of Director of Environmental Health & Safety position and began work on February 3rd.

• Waste Characterization Audit activities kicked off on February 3rd through February 11th. All 96 samples collected from commercial and self-haul loads generated in member agencies received for audit at the Hawthorne Street Transfer Station. Self-hauled material was visually audited at the Hawthorne Street Transfer Station as well as the transfer stations located in McKinleyville (Humboldt Sanitation) and Fortuna (Eel River Recology). The second sampling event is scheduled to occur in late June of this year, with the final report presented in the early fall.

• Humboldt Bay Keeper, under the terms of the settlement agreement entered into in November 2017, conducted a site visit at the Hawthorne Street Transfer Station on February 3rd.

• The Dec-Jan Bimonthly Surface Water Sampling report was prepared and submitted to the NCRWQCB.

• Review of the 2019 Groundwater Monitoring Annual Report prepared by Golder and Associates was performed, with the approved document submitted to the NCRWQCB by January 31, 2020 per the WDR requirements.

• During daily inspection activities at the Cummings Road Landfill on Jan. 22nd, landfill observed slumping an area that had previously been repaired for a soil crack on the north mound, north side. The region had received approximately 0.66 inches of rain in the prior 72 hours. Landfill staff placed straw bales below the slumping area, regulatory agencies notified per WDR requirements, and HWMA’s Engineer visited the site to perform visual observations and recommend repairs.

The slump occurred on the same area where a minor side-slope soil crack was identified on June 28, 2019. The soil crack was repaired by Landfill staff in accordance with the maintenance repair summary that was approved by NCRWQCB and LEA, and uploaded March 12, 2020 Printed on Recycled Paper Page 160 of 162

onto GeoTracker on July 29th. The repair was accomplished by trackwalking, jute net installation, and seeding. The affected area and adjacent areas include a 3:1 side slope, and the June crack was located generally midway on a 50-foot run of slop with no significant up-gradient slope or drainage area.

• Landfill staff observed a number of holes around the landfill that were initially caused by small rodents (mice, gophers) digging burrows between the landfill cap and the 18” to 2’ soil cover. Neighborhood dogs discovering the rodent scent dug approximately 50 holes in the landfill over the course of a month. Landfill staff located the hole(s), flag and perform repairs. In a couple of cases, holes were significantly enlarged due to erosion caused by rainfall events, and required notification of the NCRWQCB and LEA. Landfill staff spoke with neighbors to describe the damage and importance of keeping dogs off the landfill. Roaming dog activity has significantly decreased over the past several weeks.

• Staff is working with Golder and Associates to address WDR Condition 62 which called for the installation of three (3) additional off-site monitoring wells initially identified in a corrective action order issued by the NCRWQCB in 2006. Under the WDR, HWMA must either install the wells or submit documentation acceptable to the NCRWQCB demonstrating why the wells cannot or should not be installed. In 2009, HWMA was unable to secure permission for well installation from the private landowners, which was conveyed to NCRWQCB staff. Furthermore, in May 2009, the NCRWQCB was presented with information from groundwater monitoring results which indicated that VOC detections in the groundwater were stable, decreasing or no longer detected in the areas upgradient of the proposed well locations.

Golder and Associates is preparing an update to the May 2009 correspondence incorporating the monitoring data and statistical analysis from the past 10 years to assess whether this condition remains necessary.

• Landfill Compressor was installed by Roger’s Machinery in mid-February and is now online. The compressor is significantly quieter than its 20+ year old predecessor.

• HWMA’s Safety Coordinator and HHW Technician conducted in-house 8-hour Hazardous Materials training to all operational staff over a three-day training period.

• The Emergency Action Plan, HHW Operations Plan and HHW Contingency Plan were revised and updated.

• The Hawthorne Street Transfer Stations Hazardous Materials Business plan was revised and updated.

• California Air Resource Board’s “ Diesel Off-Road Reporting (DOORS)” was submitted electronically by the March 1st deadline.

• North Coast Unified Air Quality Management District’s “2019 Emission Inventory Report” for total amount of landfill gas combusted was submitted February 27, 2020.

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• The draft FY Budget and Non-Standard Waste Fees was prepared for the Board’s March meeting. However, Recology submitted their final revised “Recycling Service Fee Adjustment” application on March 2, 2020. Staff is reviewing the revised fee application with recommended actions to be presented along with the draft FY Budget to the Board at the April meeting.

• As part of the regular Safety Training topics, discussions with staff about the coronavirus -COVID 19 has been held, with information provided by the CDC about recommended preventive actions, good personal and workplace hygiene practices and the importance of protecting others in the event an individual is sick was covered.

• Annual Mattress Recovery and Recycling - In 2019, HWMA sent 2,562 conforming mattresses for recycling, or an estimated 70. 5 tons was diverted from being landfilled

• Starting January 1st 2020 Futon mattresses are now being accepted at no charge through the Mattress Recovery and Recycling program.

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Customer Service Compliments:

December 30, 2019

Jill,

On Friday December 27, 2019, my (elderly) brother in law and I arrived at your facility with several e- waste items, which included a very heavy 30 year old Sony television.

When I asked an HWMA employee named Ben for instructions, he not only picked up and carried away the heavy heavy TV, he also mobilized additional employees to help unload all of the e-waste items from my truck!

I want to extend my highest complements to Ben and the entire HWMA crew for their truly amazing and exceptional customer service!

Best regards, Randy Mendosa

February 4, 2020 Hi Jill,

It seems a long time since your son attended the Arcata School District, but I thought of you when I dropped off a large load of e-waste at your facility. It was a complicated transaction with hazardous items, e-waste and appliances. As Director you should be proud of how well Ben and Ryan handled the event. Well organized and efficiently completed the crew handled my situation with a skill that makes your organization look very good. My experience was very positive, from making the appointment on the phone until I drove out of your yard.

I hope you can share these words of encouragement with your organization. I enjoy letting service people know when they perform above expectations.

Thank you, Dave Sloane Lead Maintenanceperson Arcata School District

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