Loading...
Waste Mgmt/Solid Waste 00AMENDED AND RESTATED AGREEMENT FOR THE COLLECTION, TRANSPORTATION AND DISPOSAL OF MUNICIPAL SOLID WASTE BETWEEN THE CITY OF LA QUINTA E►k WASTE MANAGEMENT OF CALIFORNIA, INC. JUNE 30, 2000 - JULY 30, 2008 C:\My Documents\WPDOCS\ContWaste2000.wpd July 11, 2000 Table of Contents ARTICLE TERM.......................................1 Section 1.1 Term ................................... 1 ARTICLE II SCOPE OF WORK ............................... 1 Section 2.1 Scope of Work ............................ 1 Section 2.2 Transportation and Disposal of Solid Waste ........ 2 Section 2.3 City-wide Automated Solid Waste Collection ........ 3 Section 2.4 Hazardous Waste Obligations of Contractor ........ 6 Section 2.5 Advisory Obligations of Contractor .............. 7 Section 2.6 Operational Requirements ..................... 7 ARTICLE III EQUIPMENT AND PERSONNEL ....................... 8 Section 3.1 Refuse Collection Vehicles .................... 8 Section 3.2 Low Emission Vehicles ....................... 9 Section 3.3 Containers ................................ 9 Section 3.4 Employees .............................. 10 ARTICLE IV SUPERVISION ................................ 10 Section 4.1 Authority of City .......................... 10 Section 4.2 Quantity of Municipal Solid Waste .............. 10 Section 4.3 Public/Customer Service and Accessibility ......... 10 Section 4.4 Complaints .............................. 11 Section 4.5 Customer Information and Public Education ........ 11 ARTICLE INSURANCE..................................14 Section 5.1 General Liability Insurance .................... 14 Section 5.2 Worker's Compensation and Employer's Liability Insurance ............................... 15 Section 5.3 Notice to City, Evidence of Insurance ............ 15 ARTICLE VI PERFORMANCE BOND .......................... 16 Section 6.1 Performance Bond ......................... 16 ARTICLE VII REPORTS....................................16 Section 7.1 Records and Reports; Solid Waste Collection ....... 16 Section 7.2 Inspection by City ......................... 17 Section 7.3 Maintenance of Financial Records .............. 17 Section 7.4 Audit .................................. 18 ARTICLE VIII ASSIGNMENT AND SUBCONTRACTING Section 8.1 Assignment and Subcontracting ..............18 ...............18 C:\My Documents\WPDOCS\ContWaste2000.wpd 11 July 12, 2000 ARTICLE IX BREACH, DEFAULT AND TERMINATION .............. 20 Section 9.1 Breach, Default and Termination ............... 20 ARTICLE X INDEMNITY .................................. 20 Section 10.1 Indemnification ........................... 20 Section 10.2 Hazardous Substances Indemnification ........... 21 Section 10.3 AB 939 Indemnification ..................... 22 ARTICLE XI COMPLIANCE WITH ALL LAWS .................... 23 Section 1 1.1 Compliance with All Laws .................... 23 ARTICLE XII TAXES.....................................23 Section 12.1 Taxes .................................. 23 ARTICLE XIII EXCLUSIVE RIGHTS ............................ 23 Section 13.1 Grant of Franchise ......................... 23 Section 13.2 Scope of Franchise; Exclusiveness .............. 23 ARTICLE XIV RATES.....................................24 Section 14.1 Maximum Rates to be Charged ................ 24 ARTICLE XV REVIEW OF RATES ............................. 25 Section 15.1 CPI Based Change ......................... 25 Section 15.2 Extraordinary Cost Based Change .............. 25 Section 15.3 Supporting Information ...................... 25 Section 15.4 Decision; Effective Date ..................... 26 Section 15.5 Final Year Payments ........................ 26 Section 15.6 City Right to Set Rates ...................... 26 Section 15.7 Maximum Rates ........................... 26 ARTICLE XVI CONTRACTOR PAYMENTS TO CITY ................ 27 Section 16.1 Franchise Fee Payments ..................... 27 Section 16.2 Fees Collected by Contractor on Behalf of City ..... 27 ARTICLE XVII COLLECTION FROM CITY FACILITIES AND CITY CLEANUPS 28 Section 17.1 Regular Disposal Service ..................... 28 Section 17.2 On -Call Bulky Item Collection ................. 28 Section 17.3 Disaster Debris Cleanup Implementation Plan ...... 29 Section 17.4 Illegal Dumping Assistance ................... 29 Section 17.5 Special Event Toilet Facilities ................. 30 ARTICLE XVIII HOLIDAYS ................................... 30 Section 18.1 Holidays ................................ 30 ARTICLE XIX OBLIGATIONS OF CITY .......................... 30 Section 19.1 Reasonable Cooperation ..................... 30 C:\My Documents\WPDOCS\ContWaste2000.wpd 111 July 12, 2000 ARTICLE XIX OBLIGATIONS OF CITY .......................... 30 Section 19.1 Reasonable Cooperation ..................... 30 Section 19.2 Exclusivity ............................... 30 ARTICLE XX GENERAL PROVISIONS .......................... 30 Section 20.1 Definitions .............................. 30 Section 20.2 Right of the City to Make Changes .............. 33 Section 20.3 Contractor's Status ........................ 34 Section 20.4 Force Majeure ............................ 34 Section 20.5 Failure to Perform ......................... 34 Section 20.6 Sale of Recyclables ........................ 35 Section 20.7 Rights, Remedies and Benefits Cumulative ........ 36 Section 20.8 Waivers ................................ 36 Section 20.9 Approval by City ... , ...................... 36 Section 20.10 Notices ................................. 36 Section 20.11 Arbitration .............................. 36 Section 20.12 Legal Jurisdiction .......................... 37 Section 20.13 Paragraph Headings ........................ 37 Section 20.14 Entire Agreement .......................... 37 Section 20.15 Subcontracting ........................... 37 Section 20.16 Compensation to Contractor .................. 37 Section 20.17 Fees for Refuse Collection ................... 37 Section 20.18 Fees for Unusual Conditions .................. 38 Section 20.19 Change of Ownership ....................... 38 Section 20.20 Contractor's Employee Relations ................38 Section 20.21 Bankruptcy .............................. 38 Section 20.22 Invalid Provisions .......................... 38 Section 20.23 Waiver of Performance ...................... 39 Section 20.24 Warranty ............................... 39 Section 20.25 Exhibits ................................ 39 Section 20.26 Guaranty by Waste Management, Inc. ........... 39 ARTICLE XXI OTHER OPERATIONAL REQUIREMENTS .............. 39 Section 21.1 Rules and Regulations Governing Recyclable Materials 39 Section 21.2 Cooperation with Subsequent Providers .......... 39 Section 21.3 Indemnification Regarding Lawsuits Challenging This Agreement .............................. 40 EXHIBIT A REFUSE COLLECTION RATE AND DISPOSAL CHARGE ............ A-1 B RESOLUTIONS OF THE CITY COUNCIL APPROVING THE AGREEMENT . B-1 C:\My Documents\WPDOCS\ContWaste2000.wpd iv July 12, 2000 THE CITY OF LA QUINTA AMENDED AND RESTATED AGREEMENT FOR THE COLLECTION, TRANSPORTATION AND DISPOSAL OF MUNICIPAL SOLID WASTE THIS AMENDED AND RESTATED AGREEMENT is made and entered into as of the S to day of jT, 2000, by and between the CITY OF LA QUINTA, a municipal corporation (hereinafter referred to as the "City") and WASTE MANAGEMENT OF CALIFORNIA, INC., a California corporation doing business as Waste Management of the Desert (hereinafter referred to as "Contractor"). ARTICLE I TERM Section 1.1 Term The Term of this Amended and Restated Agreement shall commence .S 2000 and shall end July 30, 2008, unless earlier terminated as provided herein. ARTICLE II SCOPE OF WORK Section 2.1 Scope of Work The Contractor shall collect, transport and dispose of all Municipal Solid Waste ("MSW") generated at Residential, Commercial, Industrial and Institutional Premises located within and under the jurisdiction of the City. The work to be done by Contractor includes the furnishing of all labor, supervision, equipment, materials, supplies and all other items necessary to perform the services required, including all finances and monies required for performance of the obligations of this Agreement and for financing, working capital and all other operating costs of every kind and description. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve the Contractor of the duty to furnish all others that may be required, whether enumerated or not. The work to be done by Contractor shall be performed in a thorough, workmanlike and efficient manner to the reasonable satisfaction of the City, so that residents, businesses and institutions within the City are provided reliable, courteous and high quality solid waste collection at all times. C:\My Documents\WPDOCS\ContWaste2000.wpd July 11, 2000 Section 2.2 Transportation and Disposal of Solid Waste Contractor shall transport and deliver all MSW collected pursuant to this Agreement to the Disposal Site designated by the City. MSW shall become the property of the operator of the Disposal Site (or other designee of the City as the City may determine from time to time) once it is delivered to the Disposal Site. Contractor shall maintain accurate records of the quantities of MSW delivered to the Disposal Site and shall cooperate with the City or its agents in any audits or investigations of such deliveries. Contractor shall cooperate with the operator of the Disposal Site with regard to operations therein, including by way of example, complying with directions from the operator to unload collection vehicles in designated areas, accommodating to maintenance operations and construction of new facilities, cooperating with the operator's Hazardous Waste Exclusion Program, and cooperating with the operator's tonnage tracking system. Unless and until the City designates in writing a different Disposal Site, or approves a written request by Contractor to change the Disposal Site, Contractor shall continue to deliver all MSW to the Coachella Landfill or, if that landfill is temporarily unavailable, to the Edom Hill Landfill. City shall have sole and absolute discretion to grant or deny Contractor's written request for a change of Disposal Site. If Contractor experiences increase operational costs due to increased transportation or operating costs resulting from City's designation of a Disposal Site other than the Edom Hill Landfill, the following procedures shall be followed: Contractor shall submit to City written, detailed documentation describing the reason for said transportation and/or operational cost increases. City may appoint an auditor to review contractor's documentation. The cost of the audit shall initially be paid by City, however, in the event that there is a discrepancy of five (5) percent or greater between the Contractor's operation costs and the City's audit review, then the Contractor shall reimburse to the City any amounts paid for the City's audit. Contractor shall provide any supplemental information requested by City or the auditor. If City determines that the transportation and/or operational cost increases are justified, City shall approve an increase in compensation to Contractor accordingly. If, in the opinion of City, Contractor may experience decreased operational costs such as decreased transportation, operating or variable costs resulting from City's designation of a new Disposal Site, the following procedures shall be followed. City shall provide and discuss with Contractor a written description of the operational and/or capital costs that City believes will decrease as a result of a change in the Disposal Site. Within thirty (30) days, Contractor shall provide City with written C:\My Documents\WPDOCS\ContWaste2000.wpd 2 July 11, 2000 documentation describing the projected decreases in operating and capital costs that will result from the change in the Disposal Site. City may appoint an auditor to review Contractor's documentation. The cost of the audit shall initially be paid by City, however, in the event that there is a discrepancy of five (5) percent or greater between the Contractor's operation costs and the City's audit review, then the Contractor shall reimburse to the City any amounts paid for the City's audit. Contractor shall provide any and all supplemental information requested by City and/or the auditor. Upon the completion of the auditor's review, City will determine, in City's sole discretion, whether transportation, operating and/or capital cost decreases are justified. City may then approve a decrease in compensation to Contractor according to the findings of the City's and/or auditor's review. City and Contractor acknowledge that Contractor may at some time in the future construct and operate a refuse transfer station in the Coachella Valley. Should the City direct the Contractor to deliver MSW to a transfer station located within the Coachella Valley, Contractor will not request a rate increase for the service fee portion of the rate. Section 2.3 Citywide Automated Solid Waste Collection A. Automated Solid Waste Collection Automated solid waste collection services shall be provided to all single family duplex, and triplex residents in the City, in gated and non -gated areas. Contractor shall provide residents with 96, 64, or 35 gallon wheeled carts for MSW and green waste storage. The MSW and green waste carts shall be of different coloration. Contractor shall provide all labor and equipment required to conduct automated MSW and green waste collection programs. Contractor shall collect all MSW and green waste at curbside unless back yard or side yard service is requested by a resident. There is an additional rate charge for back or side yard service. The MSW and green waste collection and disposal charge shall not vary due to container size as shown in Exhibit "A". Homeowner Associations in gated communities shall have a choice of whether homes in the Association will received automated, manual, or bin services. Contractor shall contact and offer in writing automated services at no additional charge to all Homeowner Associations in the first and third year of this contract. Contractor shall submit a written report to the City of the results of this inquiry within 60 days of sending said correspondence. Contractor shall convert Homeowner Associations to automated service if either the City or the Association request such service. C:\My Documents\WPDOCS\ContWaste2000.wpd 3 July 11, 2000 B. HOA Automated Public Education Program. All production and distribution costs relating to all public education materials required by this section shall be paid by Contractor. Ninety (90) days prior to commencement of the automated MSW collection program, Contractor shall submit to City, a draft public education package which may, at City's request, include the following: residents; 1. Draft brochures for HOA distribution; 2. Draft brochure to accompany delivery of the wheeled carts to HOA 3. Draft newsletter article to be transmitted to HOA, if requested; and 4. Hold one HOA meeting to inform HOA residents about the automated program, if requested. Contractor shall: 1. Produce and mail the direct mail brochures to HOA for distribution by the HOA to the residents three (3) weeks prior to delivery of the wheeled carts; 2. Produce the second brochure and deliver to HOA residents with the wheeled carts; 3. Hold one HOA meeting thirty (30) days prior to distribution of the wheeled carts to residents, if requested; and 4. Finalize the newsletter article and provide a camera ready copy to HOA, if requested by the newsletter deadline specified. C. Cost and Operational Statistics. Contractor shall record the cost, productivity, tons collected, person hours, number of stops, number of participating homes, number of routes and all other data on the automated MSW collection programs requested by City. Contractor shall record said data in a format required by City and shall submit said data to City by the tenth (10th) day of each quarter beginning in March 1997. Upon City's request, Contractor shall provide more frequent reports if needed. City reserves the right to request any and all additional information from Contractor needed by City, its auditors and consultants, to evaluate the productivity and cost of the automated MSW collection program and to report data to state and federal agencies as required by law. City may, in its sole discretion, conduct efficiency and/or time and motion field studies of the automated MSW collection program at any time and for any duration during the term of this Agreement. City reserves the right to request data more frequently than quarterly should City desire to do so. C:\My Documents\WPDOCS\ContWaste2000.wpd 4 July 11, 2000 D. Replacement of Lost. Damaged or Stolen Carts. Contractor shall, at its sole expense, provide residents who report damaged wheeled carts with a replacement cart within seventy-two (72) hours of the resident's request. Contractor shall also provide wheeled carts to all new residents that move into. City or change residences within City. Contractor shall, at its sole expense, provide residents who report lost or stolen wheeled carts with a replacement cart of the size requested by the resident (either 64 or 96 gallons) within seventy-two (72) hours of the resident's request. If a resident reports more than two (2) lost or stolen wheeled carts from the same address during the term of this Agreement, Contractor shall provide the first two (2) replacement carts at no charge to City or the resident. After the first two (2) replacement carts are provided, Contractor may charge the resident to replace lost or stolen carts a third or subsequent time. Contractor shall maintain complete and accurate records of all wheeled carts delivered to new residents and to residents reporting lost, stolen or damaged carts and shall submit a report to City by the tenth (10) day of each month, beginning in March, 1997, listing the number of crates so provided. E. Automated Collection Vehicles. Contractor shall utilize the front loader refuse collection vehicles fitted with a collection bin and a mechanical arm on the front of the truck or equivalent equipment as approved by the City Manager or designee for the automated MSW collection program. Contractor shall operate said trucks in a safe and efficient manner so as to minimize the blowing or spilling of MSW during the collection process. If MSW is spilled or blown by the wind, Contractor shall make all reasonable efforts to clean up and collect all spilled and blown MSW. F. Billing of Residential Customers Contractor shall bill residential customers via the tax rolls as described in Section 14.1. Contractor shall bear the risk that, if for any reason the property tax levy does not raise adequate funds, then in that event, Contractor's sole remedy shall be against the Contractor's customer and not against the City. The City does not guarantee the accuracy or adequacy of the levy or that the levy amount will be paid by the property owner. The City shall reasonably cooperate with Contractor in collecting payment from the residential customer. According to the tax roll billing schedule established by the County and City, Contractor shall provide to City and the County of Riverside updated residential tax roll billing data in a timely manner such that the new billing information can be put on the tax rolls for the upcoming year. It is anticipated that this information will be needed by August of 1996 and thereafter by July 30 of each of the following years. However, Contractor agrees to accommodate all requests from City with regard to the schedule for submitting said tax roll billing information. C:\My Documents\WPDOCS\ContWaste2000.wpd 5 July 11, 2000 In no event shall Contractor double bill any resident for MSW collection service. If a double billing occurs, Contractor shall immediately upon notification by City, the resident, homeowner's association, the County of Riverside or any other person or entity, issue a refund directly to the customer who was double billed along with a letter of apology. If a double billing has occurred for a period exceeding six (6) months, Contractor shall include in said refund the amount that was double billed plus interest on said amount at the prime interest rate published in the Wall Street Journal during the month in which the rebate is made, plus one percent (1 %). Contractor shall conduct route audits and internal audits of customer billing, records on at least an annual basis in order to prevent and detect any double billing of customers. In the event that an owner provides notice to the Franchisee that trash removal will not be needed during a continuous period of greater than four months for specified dates, and the Franchisee verifies that no trash removal was necessary during the specified time period, the owner shall be entitled to a refund of fifty percent (50%) of the assessed amount of the fee due to the waste hauler as collected on the tax roll. Said funds shall be calculated on an annual basis each January 301h for the prior calendar year, and shall be paid within thirty days of the calculation. A report of the calculation shall be provided to the City. Franchisee may request a rate adjustment in the subsequent year if said refunds exceed $4,000 in the prior given year (Resolution 97-69). G. Disabled Assistance Contractor will provide back yard or side yard MSW and green waste service at no additional charge to disabled and elderly residents who are unable to physically move their trash cans to the curb. Disabled residents must provide Contractor a copy of their Department of Motor Vehicles NI -Permanent disabled parking placard as proof of disability. Elderly customers can also apply for assistance noted above based upon their needs. Contractor will evaluate each elderly resident's need on a case -by -case basis. Section 2.4 Hazardous Waste Obligations of Contractor A. General In the event the City decides to undertake provision of household hazardous waste collection events by itself or as part of a multi -city effort, Contractor shall, at the City's request, act as an agent for City, and shall arrange for the collection of household hazardous waste. In such an event, Contractor's compensation shall be increased in accordance with Section 20.2 of this Agreement. Acting as City's agent, Contractor may be asked to obtain cost estimates or quotes for providing household C:\My Documents\WPDOCS\ContWaste2000.wpd 6 July 11, 2000 hazardous waste collection or "round up" events at no additional cost to City. In the event that City directs Contractor to obtain such cost quotes or estimates, City reserves the right to unilaterally reject the quote or estimate, the right not to hold the event, and the right to retain another service provider to perform the household hazardous waste collection or round up services. City further reserves the right not to invoke the provisions of this section and to obtain household hazardous waste collection services in another manner and from another service provider. Section 2.5 Advisory Obligations of Contractor Contractor shall provide, at no cost, supportive services to City and to Residential, Commercial, Industrial and Institutional Premises occupied by Waste Generators and potential Waste Generators or their agents by providing the following: A. General consulting services on integrated waste management issues and concerns. Examples are, but not by way of limitation, preparing a position paper on a MSW issue, providing a legal opinion or policy recommendation on a focused concern or reviewing and commenting on proposed legislation or state regulations and their impact on La Quinta. B. Technical assistance services, such as the review of site plans, detailed drawings of enclosures for MSW containers and estimated volume and characterization of waste expected to be generated on a case -by -case basis, as may be required by the Municipal Code or conditions of approval for issuance for a development plan or building permit. Field trips to review subject property may be required to fulfill Contractor's obligation. C. Attendance of qualified knowledgeable employees at meetings of the City Council, City Planning Commission, City staff, the Association of Governments, the Local Task Force, etc. Such attendance shall be coordinated by both parties to this Agreement. Section 2.6 Operational Requirements A. Commercial 1. Collection during winter months shall be between 5:30 a.m. and 6:00 p.m. 2. Collection during summer months shall be between 5:30 a.m. and 6:00 p.m. B. Residential 1. Collection during winter months shall be between 5:30 a.m. and 6:00 p.m. CAMy Documents\WPDOCS\ContWaste2000.wpd 7 July 11, 2000 2. Collection during summer months shall be between 5:30 a.m. and 6:00 p.m. C. Refuse shall be collected from containers at the location of all residences and dwellings, whether a single family or multiple dwelling unit, not less than once per week. D. Refuse shall be collected at all places of business as often as shall be necessary to maintain a sanitary condition and provide reasonable convenience to such business establishments. E. Business establishments and apartment units of four (4) or more shall use containers specified by the Contractor which shall be sized to contain all refuse accumulation of the business for four (4) days or other period as determined applicable by the Contractor. The service level, bins required or frequency of pick-up shall be determined by Contractor and customer. F. Containers moved by the Contractor for his convenience, shall be returned to their original location by Contractor within a reasonable time. ARTICLE III EQUIPMENT AND PERSONNEL Section 3.1 Refuse Collection Vehicles Contractor shall furnish sufficient vehicles to maintain a regular schedule of collection. All equipment shall comply with each and all of the applicable provisions of the laws of the State of California and all ordinances, rules and regulations of the City having reference to such matters, features or services. All equipment used within the City shall be maintained in a satisfactory and proper mechanical condition and shall be neat and clean in appearance. Trucks shall be loaded and operated in such a manner that no MSW shall be spilled in streets or alleys. Should any MSW be spilled on any street, alley or elsewhere, it shall immediately be cleaned up. A broom and shovel shall be carried on each truck at all times for this purpose. If not so cleaned up by the Contractor, the City may clean up same and in such event Contractor shall pay upon demand one hundred fifty percent (150%) of the costs thereof. All collection vehicles will be painted uniformly. The Contractor's name and telephone number shall be shown on each side of each truck in letters at least three (3) inches high. C:\My Documents\WPDOCS\ContWaste2000.wpd 8 July 11, 2000 All vehicles and equipment used in the collection of MSW, if kept within the boundaries of the City, shall at all times when not in use be kept on private property of appropriate zone and not on streets or other public ways. Bodies of vehicles shall be metal and shall be so constructed that no MSW shall be spilled from said vehicles on the streets or alleys. Collection vehicles shall be washed thoroughly on the inside weekly and sanitized with a suitable disinfectant at least weekly. In addition, the Contractor shall provide two-way radio communication between the route supervisor and all vehicles. Vehicles which are replaced and any new vehicles shall be designed to utilize alternative -fuel or energy sources to minimize environmental pollution. Section 3.2 Low Emission Vehicles Currently, 50% of Contractor's residential and commercial route trucks are low emission vehicles. Contractor agrees to convert 100% of residential and commercial vehicles to low emission fuel by December 31, 2003. For each day past December 31, 2003 that the Contractor fails to have 100% of the residential and commercial route trucks powered by low emission fuel, the Contractor shall pay the City $500. For the purpose of this section , low emission fuel vehicles include CNG, electric, LNG, fuel cell or other City -approved low emission vehicles Section 3.3 Containers Contractor shall furnish, in accordance with the rates set forth on Exhibit A, all containers needed for MSW generated at Commercial, Industrial, Institutional and Multi -Family Residential Premises. Containers shall include two, three, four and six cubic yard bins with lids and 20, 30, 40 and 50 cubic yard roll -off boxes. The type, size and number of containers furnished to individual Waste Generators shall be those determined to best meet the needs of the Waste Generator and shall be sufficient to contain, with the lid closed, all MSW generated between collections. Containers shall be metal and leak proof. Bins (1 through 6 cubic yards capacity) furnished by Contractor shall be constructed with plastic lids that are in good repair and capable of being closed, with all hinges attached and operable. Containers shall be painted and repainted as required to maintain the attractive appearance of the community. Containers that have been painted or marked with graffiti shall be repainted or removed from the Premises by Contractor within twenty-four (24) hours of notification by the Waste Generator or City. At the same time as such containers are removed, they shall be replaced by like -sized containers without evidence of graffiti at no charge to the Waste Generator. Contractor shall clean and maintain all containers furnished by it in a safe and sanitary condition and whenever the City determines that cleaning is required to abate a health concern or nuisance condition. C:\My Documents\WPDOCS\ContWaste2000.wpd 9 July 11, 2000 Section 3.4 Employees Contractor shall furnish such competent and qualified drivers, mechanical, supervisory, clerical or other personnel as may be necessary to provide the services required by this Agreement in a safe and efficient manner and to serve the public in a courteous, helpful and impartial manner. All of Contractor's employees, while collecting refuse, shall be required to wear a uniform type of clothing approved by the City. Said uniform shall look freshly cleaned and pressed. Each employee shall at all times carry a valid operator's license for the type of vehicle he or she is driving. Each employee shall, at all times he/she is on duty, carry employment identification which shall be presented to City staff, customers, security guards and law enforcement officers upon request. ARTICLE IV SUPERVISION Section 4.1 Authority of City The City or the City's agent shall have the right, but not the duty, to inspect at any reasonable time the Contractor's operations, equipment and performance of the services required by this Agreement to determine whether the Contractor is performing in compliance with the Agreement, the laws of the State of California, City ordinances, and the laws and regulations of any other governmental agency. Contractor shall fully cooperate with the City in such inspections. Section 4.2 Quantity of Municipal Solid Waste In the event of a dispute between the Contractor and a business or other non- residential Waste Generator as to the quantity of MSW that such Person has placed for collection, the City shall investigate and make a determination and such determination shall be binding. Section 4.3 Public/Customer Service and Accessibility A. Office: Contractor shall maintain a business office within a ten (10) mile distance from the intersection of Washington & Highway 1 1 1 for purposes of carrying out its obligations under this Agreement. B. Office Hours: Contractor's office shall be open to the public from 8 a.m. to 5 p.m. Monday through Friday, except for holidays. C. Availability of Local Representative: A knowledgeable representative of the Contractor shall be available during office hours to communicate with the City and members of the public in person and by telephone. CAMy Documents\WPDOCS\ContWaste2000.wpd 10 July 11, 2000 D. Telephone: Contractor shall maintain a telephone system in operation at its office during business hours. Contractor shall arrange for its telephone number to be listed in all telephone directories generally distributed in the City and on all of Contractor's bills and invoices. The telephone shall be on a toll -free exchange for all residents of the City. Section 4.4 Complaints Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all Waste Generator complaints relevant to service and billing. Complaints shall be investigated within twenty-four (24) hours and appropriate action taken. Contractor shall record in a separate log, the form of which is approved by the City, all complaints, noting the name and address of the complainant, the date and nature of the complaint and the date and nature of resolution. The complaint log shall be available for inspection by the City during normal business hours. In addition, Contractor shall submit, by the 15th day of each month, a copy of the complaint log for the preceding month. Section 4.5 Customer Information and Public Education A. Coordination with City. Prior to January 30 of each year of the Term, Contractor and City shall agree on a Customer Information Plan (the "Plan") and budget for each year of operation. The Plan shall include all of the types of materials and information and the time and manner of dissemination for all of the information required pursuant to this Section 4.5. B. Customer Information Packet. The Plan shall include a professionally designed and prepared information handout. The pamphlet shall describe collection services available, guidelines on acceptable materials for MSW disposal and any special preparation, list holidays and how the collection schedule is modified, and prominently display telephone numbers to call for information or register a complaint. Special topics shall include holiday greenery collection, telephone book recycling, used motor oil collection and hazardous waste collection. The language of the pamphlet should focus on various age groups and businesses found in the community and should include information relating to persons in the City for limited periods such as weekends or winter season. Graphics selected for the pamphlet shall be well -designed and tasteful. City's recycling logo shall be included as a graphic element of the pamphlet. Final printing of pamphlet shall be done using paper with a minimum of fifty percent (50%) post -consumer content. The City shall provide Contractor with comments and edits on the draft pamphlet. Once finalized and printed for distribution, Contractor shall distribute, by a method approved in the Plan, the pamphlet to each Residential, Commercial, Industrial and Institutional Premises in the City according to the schedule in the Plan. The Contractor shall mail (first-class) a pamphlet to the holder of each new account, including residential, commercial, industrial and institutional, commencing MSW collection service during the Term. C:\My Documents\WPDOCS\ContWaste2000.wpd 11 July 11, 2000 C. Public Education Booklet The Plan shall include the development, preparation and distribution of a professionally designed informational booklet, suitable for use by the general public, on MSW management topics and issues, including, but not limited to, general comments on the status of MSW in the Coachella Valley, alternatives such as waste prevention, recycling, composting, land filling, hazardous waste disposal and new technologies, as well as a general discussion on costs of MSW collection, transportation and disposal (e.g., explanation of what the consumer pays for). City's recycling logo shall be included as a graphic element of the booklet. Final printing of the booklet shall be done using paper with a minimum of fifty percent (50%) post - consumer content. City shall provide Contractor with comments and edits on draft booklet. D. Consumer Information and Public Education Activities and Miscellaneous Products 1. Meetings, Presentations, Seminars, Workshops, Etc. Contractor shall ensure the attendance of appropriate employees of Contractor, on an as -needed basis, at meetings, presentations, seminars, workshops, etc. Said employees shall be knowledgeable representatives of Contractor. Such meetings or presentations include those to homeowners' associations, business groups, public or private schools and the like. 2. Special Events and Festivities. Contractor shall participate in community -sponsored events and festivities as deemed appropriate by City and Contractor. Such events include concerts, public building dedications and the like. Contractor may be a service provider and/or an active participant in the event by hosting a table and providing informational and educational materials. 3. Public Education Articles. City and Contractor shall agree in the Plan on the timing, number and format for public education articles. On possibility would be to require on the first day of each quarter Contractor shall submit a double- spaced typed article to the City to be considered for inclusion in City's newsletter. Length should not exceed two hundred (200) words; article shall be accompanied with a suitable three inch by five inch (3" x 5") black and white photograph. Forty-five (45) days prior to due date, Contractor shall contact City with a suggested topic for article. Final subject matter, editing and/or inclusion of article shall be subject to the sole and absolute discretion of the City. The intent of this section is to provide a public education service to the community. 4. Informational Flyers. Pursuant to the Plan, Contractor shall provide and mail informational flyers to be sent to each Resident concerning any topics designated according to the Plan. C:\My Documents\WPDOCS\ContWaste2000.wpd 12 July 11, 2000 5. Community Resource. Contractor may, from time -to -time, be contacted by Waste Generators or members of the general public with requests for information or assistance. Contractor shall treat such requests with courtesy, responding as fully and completely as possible, including following up by mailing, first class postage, written materials. 6. Press Releases. Pursuant to the Plan, or in the event of an emergency or nonscheduled event, Contractor and City shall coordinate any Press Releases and public service announcements. 7. Riverside County or Other Public Agency "ABOP" Disposal Centers. Pursuant to the Plan, Contractor shall publicize each public disposal center for antifreeze, batteries, motor oil and latex/water-based paint in the Coachella Valley through various techniques, which may include but not be limited to: a. Insert stuffed in envelope with customer's bill; b. Press releases and public service announcements; C. Submitting article for inclusion in City's newsletter; d. Posting of notices in public areas of Contractor's facilities, such as Recycle America buy-back center; and e. Distribution of informational flyers to general public at appropriate events and through the mail upon request. E. Fact Sheet Pursuant to the Plan, Contractor shall provide City a professionally designed and prepared draft fact sheet on household hazardous waste focusing on identification of common hazardous wastes in the household, how such materials should be stored and proper disposal methods for such wastes. Contractor shall rely upon local experience and include commonly found household hazardous wastes and the effect of desert climate. Final printing of fact sheet shall be done using paper with a minimum of fifty percent (50%) post -consumer content. City shall provide Contractor with comments and edits on fact sheet. Once finalized, Contractor and City shall mutually agree as to the method of distribution to households and desirable quantity; within thirty (30) days of said agreement, Contractor shall have printed and distributed the fact sheet as agreed. F. Special Events Contractor shall cooperate in publicizing regional household hazardous waste special events, and otherwise appropriately participating in them through means such as distributing educational materials, sharing in advertising costs, and hosting a table. CAMy Documents\WPDOCS\ContWaste2000.wpd 13 July 11, 2000 G. City's Right to Review and Approve All informational and educational materials to be distributed to the general public or customers of Contractor, developed pursuant to this Agreement or otherwise, including Notices to Customers, shall be subject to review and approval by City prior to distribution by Contractor. H. Maximum Expenditure on Public Information Materials Contractor shall spend up to an amount of Forty Thousand Dollars ($40,000) on all production and distribution costs relating to this section over the term of this Agreement. After evidence of that expenditure is provided to and approved by City any additional educational requirements as determined by the City (including cost of materials, production and distribution) shall be shared equally between City and Contractor. ARTICLE V. INSURANCE Section 5.1 General Liability Insurance The Contractor shall, at Contractor's sole cost and expense, obtain and maintain in full force and effect for the Term each of the following minimum insurance requirements: A. A comprehensive general liability policy with a minimum limit of not less than five million dollars ($5,000,000) combined single limit for bodily injury and property damage, providing at least all of the following minimum coverages, with any self -insured retention not exceeding one hundred thousand dollars ($100,000) per occurrence: 1. Premises operation; 2. Blanket contractual; and 3. Completed operations. B. A comprehensive automobile liability policy with minimum limit of not less than five million dollars ($5,000,000) combined single limit for bodily injury and property damage, providing coverage for at least any and all leased, owned, hired or non -owned vehicles used by the Contractor in fulfilling the terms of this Agreement, with any self -insured retention not exceeding one hundred thousand dollars ($100,000). Any and all mobile equipment which is not covered under this comprehensive automobile policy shall have said coverage provided for under the comprehensive general liability policy. C:\My Documents\WPDOCS\ContWaste2000.wpd 14 July 11, 2000 C. Each of the following endorsements shall be made a part of the above required policies as stipulated below: 1. "The City of La Quinta, its employees, officers, agents and contractors are hereby added as additionally insured." 2. "This policy shall be considered primary insurance as respects any other valid and collectable insurance the City of La Quinta may have, and any other insurance the City does possess shall be considered excess insurance only." 3. "The insurance shall act for each insured, and additional insured, as though a separate policy had been written for each. This, however, will not act to increase the limit of liability of the insuring company." 4. "Thirty (30) days prior written notice shall be given to the City of La Quinta in the event of cancellation, reduction in coverage, or non -renewal of this policy for whatever reason. Such notice shall be sent to: City Manager, City of La Quinta, 78-495 Calle Tampico, La Quinta, California 92253." Section 5.2 Worker's Compensation and Employer's Liability Insurance The Contractor shall, at Contractor's sole cost and expense, obtain and maintain in full force and effect for the Term a Worker's Compensation and Employer's Liability policy written in accordance with the laws of the State of California and providing coverage for any and all employees of Contractor. This policy shall provide for: A. Coverage for worker's compensation (Coverage A). B. Coverage for one hundred thousand dollars ($ 100,000) employer's liability. C. An excess umbrella liability policy with a minimum of not less than five million dollars ($5,000,000) per occurrence. Section 5.3 Notice to City, Evidence of Insurance Concurrently with executing this Agreement, the Contractor shall furnish the City certificates of each policy of insurance required herein in form and substance satisfactory to the City. Such certificates shall show the type and amount of coverage, effective dates, and dates of expiration of policies, and shall have all required endorsements attached. Renewal certificates shall be furnished periodically to the City to demonstrate maintenance of the required coverages throughout the Term. C:\My Documents\WPDOCS\ContWaste2000.wpd 15 July 11, 2000 Any insurance company providing insurance or any surety providing a bond hereunder shall be an admitted insurer/surety in the State of California with a Best rating of at least "A", Class VIII or larger. No change in these requirements may be made without the prior written approval of the City, which it is under no obligation to provide. If the Contractor fails to maintain any insurance required by this Agreement, the City may procure and maintain, at the Contractor's expense, such insurance as it may deem appropriate. ARTICLE V1 PERFORMANCE BOND Section 6.1 Performance Bond The Contractor shall, at Contractor's sole cost and expense, concurrently with the execution of this Agreement, provide the City with a performance bond issued by a company and in a form satisfactory to the City, in the amount of one million dollars ($1,000,000). The performance bond shall indemnify the City against any losses or expenses sustained in the event of the default or failure of the Contractor to perform in accordance with the terms of this Agreement. Any surety providing a bond hereunder shall be an admitted surety in the State of California with a Best rating of at least "A", Class VIII or larger, unless a change in these requirements has been approved by the City in advance and in writing pursuant to Section 5.3. ARTICLE VII REPORTS Section 7.1 Records and Reports: Solid Waste Collection Contractor shall compile, on a daily basis, records of its Solid Waste collection operations covering those aspects of its operations, and in such detail, as the City may prescribe. Such records shall include, but are not limited to: 1. quantities of MSW collected by customer category (e.g., residential, commercial, industrial, institutional, multi -family); 2. number and categories of accounts served by each route, with each route identified by route number on a map provided to the City; 3. labor allocation information (e.g., amount of time spent in the City by service); CAMy Documents\WPDOCS\ContWaste2000.wpd 16 July 11, 2000 4. production data (e.g., tons of MSW collected per route, per worker hour, per worker day); 5. customer complaints; 6. general information, such as annual tons collected per residential household or per type of business; 7. tons delivered to each designated Disposal Site, per day, per week, per month, per year; and similar information which the City may request in order to evaluate the effectiveness and efficiency of the solid waste collection and disposal program. Contractor shall submit a report, giving the information required by City, in the format and at such time as specified by City, and shall prepare such other expanded or detailed reports utilizing the information it is required to compile, which the City may require from time to time. Section 7.2 Inspection by City The City or City's agent shall have the right, but not the obligation, to observe and inspect all of the Contractor's operations involved in providing services under this Agreement. In connection therewith, the City shall have the right to enter any of Contractor's facilities, speak to any of Contractor's employees and receive a response to any inquiries directed to such employees, and review and make copies of (at City's expense) all of Contractor's operational and business records related to this Agreement. If City so requests, Contractor shall make specified personnel available to accompany City employees on inspections. Except when in the City's sole determination an emergency exists, any inspection pursuant to this section shall require a minimum of twenty-four (24) hours notice prior to the inspection. Section 7.3 Maintenance of Financial Records A. Contractor's Accounting Records: Contractor shall maintain in its office accurate and complete accounting records containing the underlying financial and operational data relating to, and the basis for computation of all costs associated with providing service under this Agreement. The accounting records shall be prepared on an accrual basis, in accordance with Generally Accepted Accounting Principles consistently applied. The operating year for both accounting and all other record keeping purposes shall be the calendar year commencing January 1 and ending December 31. B. Inspection of Records: City and auditors and other agents selected by the City, shall have the right, during regular business hours, to conduct onsite inspections of the records and accounting system of the Contractor and to make copies, at the expense of the City, of any documents relevant to this Agreement. CAMy Documents\WPDOCS\ContWaste2000.wpd 17 July 11, 2000 C. Retention of Records: The Contractor shall retain all records and data required to be maintained under this Agreement for a period of three (3) years following the close of each Contractor's fiscal years, and for such further time as may be designated by City to enable it to complete any review or audit commenced during such three (3) year period. Section 7.4 Audit City shall have the right, but not the obligation to perform an audit of Contractor's financial records, relating to the performance of this Agreement, on an annual basis. Contractor shall fully cooperate with City and City's consultants, auditors, staff, and other designees by providing financial records, documents, audited financial statements, operating records, weight tickets, sales receipts for recyclable materials and all other documentation requested by City in the event City elects to conduct an audit. ARTICLE VIII ASSIGNMENT AND SUBCONTRACTING Section 8.1 Assignment and Subcontracting Except as may be provided for in Article IX (Breach, Default and Termination), neither party shall assign its rights, nor delegate, subcontract or otherwise transfer its obligation under this Agreement to any other Person without the prior written consent of the other party. Any such assignment made without the consent of the other party shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this Section when used in reference to Contractor, "assignment" shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (iii) any dissolution, reorganization, consolidation, merger, re- capitalization, stock issuance or reissuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which results in a change of Ownership or control of Contractor; (iv) any assignment by operation of law, including insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Contractor's property, or transfer occurring in the event of a probate proceeding; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of Ownership, or change of control of Contractor. C:\My Documents\WPDOCS\ContWaste2000.wpd 18 July 12, 2000 Contractor acknowledges that this Agreement involved rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor's experience, skill and reputation for conducting its Solid Waste Management operations in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste management practices, and (2) Contractor's's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement. If Contractor requests City's consideration of an consent to an assignment, City may deny or approve such request in its complete discretion. No request by Contractor for consent to an assignment need be considered by City unless and until Contractor has met the following requirements: A. Contractor shall undertake to pay City its reasonable expenses for attorney fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment; B. Contractor shall furnish City with audited financial statements of the proposed assignee's operations for the immediate preceding three (3) operating years; C. Contractor shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste Management experience on a scale equal to or exceeding the sale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, state or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste Management practices in full compliance with all federal, state and local laws regulating the collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the Terms of this Agreement in a timely, safe and effective manner. Under no circumstances shall City be obligated to consider any proposed assignment by City if Contractor is in default at any time during the period of consideration. C:\My Documents\WPDOCS\ContWaste2000.wpd 19 July 11, 2000 ARTICLE IX BREACH, DEFAULT AND TERMINATION Section 9.1 Breach. Default and Termination Breach of any of the terms of this Agreement (or of the Agreement for Collection and Recycling of Recyclable Materials entered into between the parties of even date herewith) shall constitute a default under this Agreement. If the Contractor does not cure the default within ten (10) days after notice thereof has been issued by the City, the City may terminate the Agreement as provided in Section 20.5. Upon termination of this Agreement, the City shall be at liberty to undertake directly the performance of the work or engage other parties to do so. Termination of this Agreement, as herein provided, shall not terminate, suspend or affect the liability of the Contractor or impair any other remedy for breach of this Agreement the City may have. Upon termination of this Agreement, the City shall have the right to acquire the Contractor's trucks and equipment, paying reasonable value therefor. ARTICLE X INDEMNITY Section 10.1 Indemnification Contractor hereby agrees to and shall indemnify and hold harmless City, its elected and appointed officials, commissions, officers, employees, and agents (collectively, indemnities) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the negligence or willful misconduct of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents, contractors and/or subcontractors to comply in all respects with the provisions of this Agreement, applicable laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents, contractor and/or subcontractors in performing services under this Agreement for which strict liability is imposed by law (including, without limitation, the Environmental Laws); (4) claims against City relating to the property tax levy for refuse collection, including but not limited to claims for refunds; and (5) any claim that the City has violated state or federal law in granting the franchise or in the City's performances under the Agreement. The foregoing indemnity shall apply regardless of whether such loss, C:\My Documents\WPDOCS\ContWaste2000.wpd 20 July 11, 2000 liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is also caused in part by any of the indemnities' negligence, but shall not extend to matters resulting from the indemnities' sole or active negligence, willful misconduct of breach of this Agreement. Contractor's duty to indemnify and defend from the aforementioned events arising during the Term of the Agreement and as it may be extended shall survive the expiration or earlier termination of this Agreement. Upon the occurrence of any Claim, Contractor, at Contractor's sole cost and expense, shall defend, with counsel approved by City, the City, its officers, employees, agents, assigns, and volunteers provided, however, that in the event the named parties to any such Claim (including any impleaded parties) include both the Contractor and the City, and if the City has one or more legal defenses available to it which are in direct conflict with the best interests of the Contractor and which therefor preclude the same counsel from representing the City and Contractor jointly, then the City shall have the right to select separate counsel, with the consent of Contractor which will not be withheld unreasonably, at the sole cost and expense of Contractor to pursue such legal defenses and to otherwise participate in the defense of such action on behalf of the City to the extent that joint representation of the City and Contractor is not permissible because of conflicts of interest between the City and Contractor. Contractor's duty to indemnify and defend shall survive the expiration or earlier termination of this Agreement. Section 10.2 Hazardous Substances Indemnification Contractor shall indemnify, defend with counsel reasonably acceptable to City, protect and hold harmless City, its elected and appointed officials, commissions, officers, employees, and agents (collectively, indemnities) from and against all claims, damages (including, but not limited to, special, consequential, natural resources and punitive damages), injuries, costs (including without limit any and all response, remediation and removal costs), losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, attorney's fees for the adverse party and expenses (including without limit attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity), (collectively, "Damages") of any kind whatsoever paid, incurred or suffered by, or asserted against, indemnities arising from or attributable to the acts or omissions of Contractor, its officers, directors, employees, companies or agents, whether or not negligent or otherwise culpable, in connection with or related to the performance of this Agreement, including without limit Damages arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any Hazardous Substance, Hazardous Waste, and/or House Hazardous Waste (Collectively, "Waste") in City at any places where Contractor transports, processes, stores or C:\My Documents\WPDOCS\ContWaste2000.wpd 21 July 11, 2000 disposes of City Solid Waste, and/or construction and street debris, or other Solid Waste. The foregoing indemnity is intended to operate as an agreement pursuant to § 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act, CERCLA, 42 USC. §9607(e) and California Health and Safety Code §25364, to defend, protect, hold harmless, and indemnify City from liability. This provision is in addition to all other provisions in this Agreement and shall survive the end of the term of this Agreement. The foregoing applies only to facilities owned or operated by Contractor or its Affiliates or any facility that Contractor selects for Disposal of Solid Waste Collected pursuant to this Agreement. Section 10.3 AB 939 Indemnification A. Contractor agrees to defend, with counsel approved by City, indemnify and hold harmless the City against all fines and/or penalties imposed by the California Integrated Waste Management Board ("Board"), if Contractor fails or refuses to provide information relating to its operations which is required under this Agreement and such failure or refusal prevents or delays City from submitting reports required by the Act (AB 939) in a timely manner. B. In addition, Contractor agrees, at its sole cost and expense, to: 1. assist City in responding to inquiries from the Board; 2. assist City in preparing for, and participating in, the Board's biannual review of the City's source reduction and recycling element pursuant to Public Resources Code Section 41825; 3. assist City in applying for an extension under Public Resources Code Section 41820, if so directed by City; 4. assist City in any hearing conducted by the Board which may culminate in issuance of a compliance Order held under Public Resources Code Section 41825; 5. defend, with counsel accepted by City, the City against the imposition of administrative civil penalties by the Board pursuant to Public Resources Code Section 41850; 6. indemnify and hold harmless the City against any such penalties which are levied by the Board except if the failure to attain the diversion requirements of the Act is due to (a) reduction or elimination of recycling programs provided for in this Agreement ordered by City under Section 20.2, (b) actions or omissions of a successor contractor so long as City is attaining the diversion requirement, or (c) City's failure to comply with applicable laws or to implement programs or take other actions reasonably necessary to attain the diversion requirements of the Act, which have been recommended and substantiated by Contractor in writing. C:\My Documents\WPDOCS\ContWaste2000.wpd 22 July 11, 2000 ARTICLE XI COMPLIANCE WITH ALL LAWS Section 1 1.1 Compliance with All Laws Contractor agrees to conform to and abide by all of the rules, regulations and ordinances of the City, and all laws of the State of California or the federal government, governing the collection and hauling of Recyclable Materials. Contractor shall cooperate with the City to facilitate its compliance with laws dealing with the minimization of waste generation and disposal, including maintenance of records and preparation of reports. Contractor agrees to conform to and abide by all the valid rules, regulations and ordinances of any governmental entity through which MSW may be hauled governing the collection and hauling of MSW. ARTICLE XII TAXES Section 12.1 Taxes The Contractor shall pay all federal, state and local taxes, including sales taxes, social security taxes, etc., which may be chargeable against the labor, material, equipment or other items necessary in the performance of this contract. ARTICLE XIII EXCLUSIVE RIGHTS Section 13.1 Grant of Franchise The City grants to the Contractor the exclusive franchise, right and privilege to engage in the business of collecting and transporting MSW generated within the City and to use the City streets for such purposes for the Term, and within the scope, of this Agreement. Section 13.2 Scope of Franchise• Exclusiveness The franchise granted to the Contractor shall be exclusive except as to the following categories of materials, which may be delivered to and collected and transported by others: C:\My Documents\WPDOCS\ContWaste2000.wpd 23 July 11, 2000 1. lawn clippings, branches, leaves and similar material generated by gardening or landscaping services which are transported by a Person performing such service as an incidental part of such service and not as a hauling business; 2. MSW which is personally transported by the Owner or occupant of the individual Residential Premises at which it is generated to a licensed public solid waste disposal facility; 3. MSW which is collected by City employees from City property and rights of way; 4. Debris caused by an earthquake or other disaster when assistance of other Persons is deemed necessary by the City; 5. Materials which are not MSW (e.g., untreated medical waste). 6. MSW generated by governmental entities which may, by law, make independent arrangements for collection and disposal of solid waste. 7. Recyclable materials which are governed by separate agreement of even date with this Agreement entitled Agreement for the Collection and Recycling of Recyclable Materials. ARTICLE XIV RATES Section 14.1 Maximum Rates to be Charged The Contractor shall not charge or demand rates for such refuse collection service in excess of those set forth in the current approved rate schedule (Exhibit A). A copy of the then -current rate schedule shall be on file at City Hall and available for inspection by the general public. Any modification of such rates may be initiated by the Contractor or the City and shall be finally approved by the City before being charged. The Contractor shall inform the City, at its request, of the rates charged a particular individual or business. If a particular service is not provided a scheduled rate, the Contractor and customer may negotiate a rate after written notice to, and upon written approval of, the City. CAMy Documents\WPDOCS\ContWaste2000.wpd 24 July 11, 2000 ARTICLE XV REVIEW OF RATES Section 15.1 CPI Based Change Contractor may request in writing a rate increase once a year during the month of March, to reflect ordinary changes in the cost of doing business, as measured by fluctuations of the Consumer Price Index (CPI), published by the U.S. Department of Labor, Bureau of Labor Statistics, for the Los Angeles -Anaheim -Riverside area, subject to City Council approval. Such requests shall be accompanied by a statement from an independent certified public accountant that, based on a review of the Contractor's financial records, the Contractor's cost of providing service under this Agreement has increased at a rate at least equal to the increase in the CPI from January of the previous year to January of the current year. The fees or compensation may be increased in a percentage amount equal to fifty percent (50%) of the net percentage change in said CPI, computed as the difference between the index from January of the previous year to January of the current year. For a requested increase, the Contractor shall pay for one half of the processing costs not to exceed $3,000. Section 15.2 Extraordinary Cost Based Change In lieu of a rate increase request in writing under Section 15.1, the Contractor may request a rate adjustment on the basis of unusual changes or extraordinary increases in direct costs of operation. In such event, the Contractor shall provide a form in direct accordance with Section 15.3, which may be completely tested and audited by the City's accounting personnel, or if the City chooses, by an independent Certified Public Accountant, licensed public accountant or other agent. Any such testing and auditing shall be at the expense of the Contractor and under the sole direction of City. Section 15.3 Supporting Information The Contractor shall provide the City, in the event the Contractor requests a rate adjustment on the basis of unusual changes or extraordinary increases or costs of doing business, with a copy of its certified annual financial statements prepared by a Certified Public Accountant or a licensed public accountant, which shall have been prepared in compliance with Rule 58 of the "Rules and Regulations of the State Board of Accountancy," as established by the California Code of Regulations, Title 16, Chapter I. Such Certified Public Accountant or licensed public accountant shall be entirely independent of the Contractor and shall have no financial interest whatsoever in the business of the Contractor. The City may specify the form and detail of the financial statements. C:\My Documents\WPDOCS\ContWaste2000.wpd 25 July 11, 2000 The City, or its representative, shall upon request be provided access to Contractor's operating and financial records, including but not limited to (1) general ledger computer printout for the immediately preceding fiscal year, including line -item details on operating income; (2) documents and monthly schedules in support of the audited financial statements of cash receipts and surcharge revenue; (3) management reports showing profit and loss for the service provided to the City under this Agreement and for the Contractor's company -wide operations; and (4) working papers from prior or on -going audits, including those undertaken by Contractor or Contractor's parent company. Section 15.4 Decision: Effective Date The City shall render a written decision on the Contractor's request, either accepting, rejecting, modifying or deferring the same and reciting the basis of its decision. The decision shall be within the sole and absolute discretion of the City Council, subject to all applicable laws. Any rate increases granted by the City Council under the provisions of this section shall take effect beginning July 1 of that year for commercial industrial rates and January 1 of the following year for residential. Section 15.5 Final Year Payments Due to the fact that each year's tax rates which are computed for a calendar year are applied in the tax rolls in a fiscal year, during the final six (6) months of this Agreement Contractor will be entitled to only fifty percent (50%) of the tax role fees collected. Section 15.6 City Right to Set Rates Nothing in this Article 15 shall preclude City from adjusting rates in the years that Contractor does not file a CPI rate increase request for purposes of changing the fees described herein or for any other purposes. Section 15.7 Maximum Rates At any time during the term of this Agreement, the City may conduct an assessment, at its sole cost and expense, to determine the lowest rate for residential refuse collection services provided to incorporated municipalities in the Coachella Valley (the "Rate"). The Rate shall consider "like" services provided to other incorporated municipalities; "like services" shall be defined as MSW collection, curbside recycling, curbside bulky items and automated green waste collection. Any services by special agreements with gated communities shall not impact the definition of like services. The City desires, that consistent with the terms and conditions set forth herein, the rate charged by Contractor should not exceed one hundred and three percent (103%) of the Rate. As a result, and not withstanding any provision in Section 15 to the contrary, no rate increase request made by Contractor pursuant to CAMy Documents\WPDOCS\ContWaste2000.wpd 26 July 11, 2000 Section 15.1 and 15.3, shall result in the rate charged by Contractor to exceed one hundred and three percent (103%) of the Rate. The City shall be entitled to a rate reduction if the assessment determines that the City's rate exceeds (103%) of the lowest rate. In no event shall the City's Rate exceed the lowest rate for residential refuse collection provided to more than one other city in the Coachella Valley. ARTICLE XVI CONTRACTOR PAYMENTS TO CITY Section 16.1 Franchise Fee Payments In consideration for, among other things, an exclusive contract, the Contractor shall pay to the City eight percent (8%) of all gross receipts, exclusive of Disposal Charges and fees collected, by Contractor pursuant to Section 16.2, received by it under this Agreement. Payment shall be made to the City by the fifteenth (15th) of every month for the preceding month's receipts. In the event of termination, the balance due for the billing period during which the termination occurs, shall be paid within thirty (30) days of the date of termination. For those amounts collected initially by the City, City shall withhold the amounts attributable to AB 939, transfer costs to Edom Hill prior to the actual switch to Edom Hill, the eight percent (8%) franchise payment and any other amounts owed to the City pursuant to this Agreement or any amendment thereto. Section 16.2 Fees Collected by Contractor on Behalf of Cit From time to time, City may impose certain fees as part of the rates established for refuse collection service to fund recycling, source reduction, household hazardous waste or other similar programs. City may also find it necessary to impose fees as part of the rates established for refuse collection service due to new or existing federal or state laws or regulations. If and when the rate schedule is modified to include such fees, the Contractor shall collect said fees as part of the billing process and shall remit said fees to the City on a quarterly basis by the twentieth (20th) day of January, April, July, and October for the preceding quarter's fees. In the event of termination, the balance due for the quarter during which termination occurs shall be paid within thirty (30) days of the date of termination. Contractor shall submit a report to the City on the fifteenth (15th) day of each month describing the amount of such fees billed and collected during the preceding month. C:\My Documents\WPDOCS\ContWaste2000.wpd 27 July 11, 2000 ARTICLE XVII COLLECTION FROM CITY FACILITIES AND CITY CLEANUPS Section 17.1 Regular Disposal Service The Contractor agrees to provide collection services, at no charge to the City, for refuse containers on all City -owned property and at those locations designated by the City at which City -sponsored events are held. The collections shall be made at a frequency acceptable to the City. The locations at which such collections are to be made include, but are not limited to, the following: 1. City Hall 2. City Corporation Yard 3. Fritz Burns Park 4. Adams Park 5. Sports Complex on Avenue 50 6. Senior Center 7. As additional City facilities are developed or expanded, collection services shall be provided by the Contractor at no charge to the City. Section 17.2 On -Call Bulky Item Collection The Contractor shall provide bulky item pick up service. Bulky items include things such as appliances, household furniture, carpets, mattresses, trunks, stumps, or limbs of trees in bundles. The trunks, stumps, or limbs of trees should not exceed eighteen (18) inches in diameter nor four (4) feet in length. Homeowner Association and single family unit customers will each be entitled to an unlimited amount of pick- ups per calendar year, with a maximum of four (4) items per pick up, for no additional charge. Customers will provide Contractor with a 48-hour notice and the items will be collected on the customer's regular collection day. An additional charge of $10 may be applied to each item exceeding the allowed four (4) item per pick up limit. Contractor, at its sole expense, shall create a brochure describing the on -call, bulky item collection program. The brochure must be approved by the City. Contractor shall send the brochure, at its sole expense, to each customer once per year during the month of February throughout the duration of the contract. C:\Mv Documents\WPDOCS\ContWaste2000.WDd 28 July 11. 2000 Section 17.3 Disaster Debris Cleanup Implementation Plan On or before January 1, 1997, the Contractor (with input from City's representative) shall prepare a draft disaster debris cleanup implementation plan. Said plan shall advise the City concerning the procedures to be followed and the prioritization of debris cleanup in the event of an earthquake, flood, or other natural disaster. The plan shall address the following issues: 1. Establish priorities for disaster cleanup at critical facilities. 2. Outline procedures for reimbursement of costs for disaster debris cleanup. 3. Describe a plan for radio, cellular telephone, ham radio, and other methods of communication for use immediately after the disaster to coordinate the cleanup. 4. List key Contractor and City contact persons, telephone numbers, and other information necessary for communications after a disaster. 5. Provide maps showing proposed sites for stockpiling disaster debris that cannot immediately be transported to a landfill or to a recycling facility. In preparing the draft plan, the Contractor shall refer to similar plans developed for disaster debris cleanup in other cities, counties, and states. The Contractor shall also obtain information concerning disaster debris cleanup efforts after the recent Los Angeles earthquake and the 1989 San Francisco earthquake. The Contractor shall coordinate development of the disaster debris cleanup plan with Coachella Valley Business Emergency Service Teams so that the plan is consistent with the emergency preparedness plans for the Coachella Valley and with other Coachella Valley cities served by Contractor. The Contractor shall provide the draft disaster debris cleanup plan to the City for review. The Contractor shall discuss the plan with City representatives, and shall incorporate their comments into a final disaster debris cleanup plan. The final plan will be distributed to the appropriate employees of the Contractor and appropriate City employees. Section 17.4 Illegal Dumping Assistance Contractor will provide waste bins to be filled by City personnel and will haul debris which has been illegally dumped upon request from authorized City personnel. This service will be provided up to twelve bins per year. CAMy Documents\WPDOCS\ContWaste2000.wpd 29 July 11, 2000 Section 17.5 Special Event Toilet Facilities Contractor will provide up to a maximum of forty (40) portable toilet facilities for special events designated by City over the term of the Agreement subject to Contractor remaining in portable facility business. ARTICLE XVIII HOLIDAYS Section 18.1 Holidays Whenever a collection day falls on a holiday following a weekend (i.e., three-day weekend), Contractor shall provide an alternative collection day, either the day before or the day after the three-day weekend. If a holiday occurs mid -week, Contractor shall provide an alternate collection day during that week. ARTICLE XIX OBLIGATIONS OF CITY Section 19.1 Reasonable Cooperation The City shall reasonably cooperate with the Contractor as may be required to assist the Contractor in performing the services required under this Agreement. Section 19.2 Exclusivity So long as the Contractor is not in breach of this Agreement, the City will not permit any other Person to collect MSW for which the exclusive right to collect has been granted to the Contractor, from Premises within the City. Nothing contained herein shall be construed to prohibit the City from removing MSW (including trash and demolition debris) on City properties with its own employees or by means of separate contracts with other Persons. ARTICLE XX GENERAL PROVISIONS Section 20.1 Definitions 1. Agreement: "Agreement" means this Agreement between the City and Contractor for the Collection and Disposal of Municipal Solid Waste dated as of , including all exhibits and attachments, and any amendments hereto. C:\My Documents\WPDOCS\ContWaste2000.wpd 30 July 11, 2000 2. Act: "Act" means the California Integrated Waste Management Act of 1989, as amended, Public Resources Code Sections 40000, et seq. 3. Bulky Items: "Bulky Items" means furniture, household or industrial appliances, shipping crates and containers and other large bulky or heavy objects not normally discarded on a regular basis at Residential, Commercial or Industrial Premises. 4. City: "City" means the City of La Quinta, a municipal corporation, and all of the territory lying within the municipal boundaries of the City as presently existing or as such boundaries may be modified during the Term. 5. Collection: "Collection" means collection of MSW and its transportation to a Disposal Site. 6. Contractor: "Contractor" means Waste Management of California, Inc., a California corporation. 7. Commercial Premises: "Commercial Premises" means any premises occupied by stores, offices, and other commercial facilities providing goods and services. 8. Construction and Demolition Waste: "Construction and Demolition Waste" includes waste building materials, packaging and rubble resulting from construction, remodeling, repair and demolition operations on pavement, houses, commercial buildings and other structures. 9. Delivery: "Delivery" of Recyclable Materials by a Waste Generator shall be deemed to occur when Recyclable Materials are deposited in a receptacle or at a location that is designated for Collection pursuant to the City's Municipal Code, or is otherwise discarded. 10. Disposal Charge: The portion of the rates in Exhibit A included to cover payment of landfill or transfer station tipping fees. 11. Disposal Site: "Disposal Site" means the solid waste facility or facilities designated by the City for the ultimate disposal (by the Contractor) of MSW collected by the Contractor. The Disposal Site may include, but is not limited to, a solid waste landfill, a solid waste transfer or processing station, or a combination thereof. 12. Environmental Laws: "Environmental Laws" means all federal and state statutes and county and city ordinances concerning public health, safety and environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 6901 et seq.; the Federal Clean Water Act, 33 U.S.C. Section 1351 et seq.; the Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code Section 25100 et C:\My Documents\WPDOCS\ContWaste2000.wpd 31 July 11, 2000 seq.; the Porter -Cologne Water Quality Control Act, California Water Code Section 13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code Section 25249.5 et seq.; as currently in force or as hereafter amended and all rules and regulations promulgated thereunder. 13. Garbage: "Garbage" means all kitchen and table food waste and animal or vegetable waste that attends or results from the storage, preparation, cooking or handling of food stuffs. 14. Hazardous Waste: "Hazardous Waste" means a waste, or combination of wastes, which because of this quantity, concentration or physical, chemical or infectious characteristics, may do either of the following: (1) cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness; (2) pose a substantial present or potential hazard to human health or environment when improperly treated, stored, transported or disposed of or otherwise managed. Hazardous waste, extremely hazardous waste or acutely hazardous waste in California Health and Safety Code Sections 251 10.02, 25115 and 25117 or in future amendments to or recodifications of such statutes or identified and listed as hazardous waste by the U.S. Environmental Protection Agency pursuant to the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.). 15. Industrial Premises: "Industrial Premises" means premises occupied by manufacturing operations and other industrial facilities. 16. Institutional Premises: "Institutional Premises" means premises occupied by educational, health care, correctional, research and other similar facilities. 17. Municipal Solid Waste: "Municipal Solid Waste" or "MSW" means all discarded putrescible and non-putrescible solid, semi -solid and liquid wastes including Garbage, Refuse, Rubbish, Construction and Demolition Wastes or Bulky Items. MSW does not include (1) Hazardous Waste, (2) low-level radioactive waste regulated under California Health and Safety Code Section 25800 et seq., (3) untreated medical waste which is regulated pursuant to the Medical Waste Management Act, California Health and Safety Code Section 25015 et seq., or (4) Recyclable Materials which have been Segregated from other Waste Material by the Waste Generator. 18. Officer: "Officer" includes any elected or appointed member of the City Council and all other public officials of the City including but not limited to commission members, City Attorney, City Engineer, City Clerk, and City Manager. 19. Owner: "Owner" means the Person holding legal title to the real property constituting the Premises to which Recyclable Materials collection service is to be provided under this Agreement. C:\My Documents\WPDOCS\ContWaste2000.wpd 32 July 11, 2000 20. Person: "Person" means an individual, limited liability company, association, partnership, political subdivision, government agency, municipality, industry, public or private corporation, or any other entity whatsoever. 21. Premises: "Premises" means any land or building in the City where Recyclable Materials is generated or accumulated. 22. Recyclable Materials: "Recyclable Materials" means materials which are both (a) capable of being Recycled and (b) Segregated From Other Waste Material for collection and Recycling, rather than collection and disposal. 23. Recycle/Recycling: "Recycle" and "Recycling" mean the process of collecting, sorting, cleaning, treating and reconstituting materials that would otherwise become Municipal Solid Waste and returning these materials to the economic mainstream in the form of raw materials for new, reused or reconstituted products which meet the quality standards to be used in the marketplace. 24. Refuse: "Refuse" includes Garbage and Rubbish. 25. Residential Premises: "Residential Premises" means single family homes, townhouses, multi -unit buildings such as apartments and condominiums, and mobile home parks. 26. Rubbish: "Rubbish" means non-putrescible Solid Wastes such as ashes, paper, cardboard, tin cans, yard clippings, wood, glass, bedding, crockery, plastics, and rubber by-products. 27. Segregated From Other Waste Material: "Segregated From Other Waste Material" means (1) the placement of Recyclable Materials in separate containers by the Waste Generator, (2) the binding of Recyclable Materials separately from other waste material by the Waste Generator, (3) the physical separation of Recyclable Materials from other waste material by the Waste Generator. 28. Term: "Term" means the term of this Agreement. 29. Ton: "Ton" means a short ton of 2,000 pounds avoirdupois. 30. Waste Generator: "Waste Generator" means the Owner or occupant of Premises which initially produce Recyclable Materials. Section 20.2 Right of the City to Make Changes The City, without amending this Agreement, may direct Contractor to cease performing one or more types of service described in Article II, may direct Contractor to modify the scope of one or more such services, may direct Contractor to perform C:\My Documents\WPDOCS\ContWaste2000.wpd 33 July 11, 2000 additional MSW collecting and processing services, or may otherwise direct Contractor to modify its performance under any other section of this Agreement in writing. Contractor shall promptly and cooperatively comply with such direction. If such changes cause an increase or decrease in the cost of performing the services, an equitable adjustment in the compensation due Contractor shall be made. If directed by City, Contractor will continue to perform the new or changed service while the appropriate adjustment in compensation is being determined. If the City has directed a change in the scope of work under this Section and either party believes that such change will increase or decrease the costs of providing service, the party which believes Contractor's compensation should be adjusted shall within thirty (30) calendar days submit to the other party a proposed adjustment and the parties shall thereafter meet and discuss the matter. Contractor shall promptly provide all relevant schedules, supporting documentation and other financial information requested by the City to evaluate the necessity for an adjustment and the amount thereof. Within ninety (90) days of the submission of the proposed adjustment, the City will determine the amount of the adjustment, if any, and shall thereafter adjust Contractor's compensation accordingly. Any adjustments will be made effective as of the first day of the following fiscal year and will reflect the incremental cost or saving from the date the change became effective until the date of the rate increase. Section 20.3 Contractor's Status Contractor is and at all times shall be an independent contractor and nothing contained herein shall be construed as (1) making Contractor, or any person employed or engaged by Contractor, an agent or employee of the City, (2) creating a joint venture or partnership between the City and Contractor, or (3) authorizing Contractor to create or assume any obligation or liability for or on behalf of the City. Section 20.4 Force Majeure Either party to the Agreement is excused from default of performance because of conditions not the fault of and beyond its control, such as war, strikes, riots, civil insurrections and acts of God. In the event of strikes, Contractor shall provide alternative means of collecting and processing MSW, subject to prior approval of City. Section 20.5 Failure to Perform If the Contractor is in default as provided in Article IX, or fails to collect materials herein specified for a period in excess of five (5) consecutive scheduled working days, or in the sole judgment of the City fails to operate the system in a satisfactory manner for a similar period, the City may: C:\My Documents\WPDOCS\ContWaste2000.wpd 34 July 11, 2000 A. Notify the Contractor of the default and set a hearing to consider termination as provided in Article I, or notify the Contractor by certified mail that the Contractor has failed to perform waste disposal services for a period of five (5) consecutive, scheduled working days, and the City's intent to take over as hereinafter set out and operate such services using Contractor's equipment. Said notification shall state the date and time that the City intends to terminate the Agreement; or B. Use and operate Contractor's equipment itself until such matter is resolved and the Contractor is again able to carry out its operation under this Agreement. Any and all operating expenses incurred by the City in so doing shall be paid to the City by the Contractor within thirty (30) days of billing. If not so paid, it shall accrue interest and be an additional breach of contract. During such period, the liability of the City to Contractor for loss or damage to such equipment so used shall be that of a bailee for hire, ordinary wear and tear being specifically exempt from such liability and burden of proof regarding negligence being that of Contractor. The liability of Contractor to third person shall cease and all claims or demands arising out of the operation of the collection service shall be directed solely to the City. Provided, however, if Contractor is unable for any cause to resume performance at the end of thirty (30) calendar days, all liability of the City under this Agreement to Contractor shall cease and the City shall be free to negotiate with other contractors for the operation of said collection service. Such operation with another contractor shall not release Contractor herein of its liability to the City for such breach of this Agreement. C. In case of termination and City operation, the City shall have access to Contractor's records for the purpose of billing, and shall retain all payments and funds received for the period for which the City provides service. The purpose of the Agreement is to facilitate the orderly collection of MSW and preserving the general health, safety and welfare of City residents. Accordingly, the City has the right to determine when Contractor has not performed services satisfactorily, thereby constituting a failure to perform. Section 20.6 Sale of Recyclables Unless and until the City has directed the Contractor to deliver the MSW collected to a Transfer Station, the Contractor may salvage materials from the MSW it collects and shall be entitled to retain all revenues it receives from the sale of such recovered materials. The revenue derived from such sales is not included in "gross receipts" for purposes of calculating the Franchise Fee due to the City. Upon receiving direction from the City to deliver MSW to a Transfer Station, the Contractor shall cease any such salvage efforts. C:\My Documents\WPDOCS\ContWaste2000.wpd 35 July 11, 2000 Section 20.7 Rights Remedies and Benefits Cumulative It is agreed that each and every one of the rights, remedies and benefits provided by this Agreement shall be cumulative, and shall not be exclusive of any other said rights, remedies and benefits, nor of any other rights, remedies and benefits allowed by law. Section 20.8 Waivers One or more waivers of any covenant, agreement or condition of default regarding provisions of this Agreement by either the City or Contractor shall not be construed as a waiver of a further breach of the same covenant, agreement, condition or the right of such party thereafter to enforce each and every provision. Section 20.9 Approval by City Wherever approval by the City is required, it shall mean approval by the City Manager or the City Manager's designee. Section 20.10 Notices Under this Agreement, whenever provision is made for notice of any kind, it shall be deemed sufficient notice, and service thereof if the said notice is in writing and is deposited in the mail in a properly stamped envelope to be delivered by certified mail, addressed as follows: If to the City: Attention: City Manager City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 If to the Contractor: Attention: Division President Waste Management of the Desert 41575 Eclectic Street Palm Desert, CA 92261 Changes in the respective addresses to which such notices shall be directed may be made from time to time by either party. Notice of any such change in address shall be directed to the other party in writing by certified mail. Section 20.11 Arbitration Any controversy or claims arising out of or relating to this Agreement, or breach thereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may C:\My Documents\WPDOCS\ContWaste2000.wpd 36 July 11, 2000 be entered in any court having competent jurisdiction thereof. Such controversy or claim shall be submitted to one arbitrator mutually selected from the local panel of the American Arbitration Association. Each party shall bear its own costs, including attorneys fees, except that Contractor shall be responsible for paying the costs of the arbitrator. Section 20.12 Legal Jurisdiction This Agreement and the rights of the parties hereunder shall be interpreted under the laws of the State of California. Section 20.13 Paragraph Headings The paragraph headings of this Agreement are not a part of this Agreement and shall have no effect upon the construction or interpretation of any part of this Agreement. Section 20.14 Entire Agreement This document contains the entire Agreement of the parties hereto with respect to matters covered hereby, and no other agreement, statement or promise made by any party hereto, or agent of such party, which is not contained herein, shall be binding or valid. No purported modification, amendment or other change in this Agreement shall be valid unless set forth in writing, and signed by both Contractor and the City. Section 20.15 Subcontracting This Agreement, or any portion thereof, shall not be subcontracted except with the prior written consent of the City. No such consent shall be construed as making the City a party to such subcontract, or subjecting said City to liability of any kind to any subcontractor. Section 20.16 Compensation to Contractor A full compensation to the Contractor for all the services to be performed by it under this Agreement, including but not limited to those required by Articles ll, III, IV and VII, the Contractor shall be entitled to collect the service fee then in effect for all MSW collected by the Contractor under the terms of this Agreement. No payment is due Contractor from the City. Section 20.17 Fees for Refuse Collection Fees for refuse collection shall be set by resolution of the City Council and shall continue in full force and effect until amended by resolution of the City Council. C:\My Documents\WPDOCS\ContWaste2000.wpd 37 July 11, 2000 Section 20.18 Fees for Unusual Conditions For collections requiring special equipment or otherwise not set forth in the Agreement, fees may be charged as shall be agreed upon by the Contractor and the customer. The Contractor shall notify City of said consent in writing. Section 20.19 Change of Ownership The City, in entering this Agreement, has placed a special value, faith and confidence upon the experience, background and expertise of Contractor in the field of MSW collection, hauling, recycling and marketing. Such faith and confidence being a substantial consideration in the granting of this Agreement, the parties hereto agree therefore that no change of ownership or transfer of stock in the Contractor's business in an amount equal to or grater than ten (10) percent of such ownership or stock shall take place without the prior written consent of the City. Section 20.20 Contractor's Employee Relations Amounts of pay, vacation leave, sick leave, holiday leave, fringe benefits, and other employee -related matters applicable to Contractor's employees shall be wholly within the discretion of Contractor, subject to applicable law. Section 20.21 Bankruptcy If Contractor shall at any time during the term of this Agreement become insolvent, or if proceedings in bankruptcy shall be instituted by or against Contractor, or if Contractor shall be adjudged bankrupt or insolvent by any court, or if a receiver or trustee in bankruptcy or a receiver of any property of Contractor shall be appointed in any suit or proceeding brought by or against Contractor, or if Contractor shall make an assignment for the benefit of creditors, then and in each and every such case, this Agreement and the rights and privileges granted thereby shall immediately cease, determine, and be forfeited and canceled without notice and without suit or other proceeding. Section 20.22 Invalid Provisions The parties agree that in the event any covenant, condition or provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity hereof shall in no way affect any other provision in this Agreement if the provision does not materially prejudice either Contractor or the City in their respective rights and obligations hereunder and to that extent the provisions of this Agreement are severable. C:\My Documents\WPDOCS\ContWaste2000.wpd 38 July 11, 2000 Section 20.23 Waiver of Performance The failure of either party to insist in any instance upon a strict performance by the other party of any of the provisions, terms, covenants, reservations, conditions or stipulations contained in the Agreement, shall not be considered a waiver thereof, and the same shall continue and remain in full force and effect. No waiver by the City of any provision term, covenant, reservation, condition or stipulation contained in this Agreement shall be deemed to have been made in any instance unless expressed in the form of a resolution by the City Council. Section 20.24 Warranty The Contractor warrants that it has not employed any officer or employee of the City nor offered any gift, gratuity, contingent fee nor any other thing of value to such officer or employee of the City in order to secure his or her assistance in obtaining this contract. The Contractor agrees that it will not, during the Term, give or offer anything of value to a City officer or employee, the offer or receipt of which would violate California law. Section 20.25 Exhibits Exhibits A and B attached hereto are incorporated herein by this reference. Section 20.26 Guaranty by Waste Management, Inc. Concurrently with the execution of this Agreement, the Contractor shall furnish a written guaranty of its performance hereunder, in form and substance satisfactory to the City, executed by Waste Management, Inc. ARTICLE XXI OTHER OPERATIONAL REQUIREMENTS Section 21.1 Rules and Regulations Governing Recyclable Materials Contractor shall comply with Chapter 6.04 of the City Municipal Code and any amendments thereto. Section 21.2 Cooperation with Subsequent Providers At the expiration of the Term, or in the event of the Agreement's earlier termination under Section 9.1, Contractor, at its own expense, shall cooperate fully with the City to ensure an orderly transition to any and all new service providers. Such cooperation shall include, but not be limited to, providing route maps, route lists and other similar information. C:\My Documents\WPDOCS\ContWaste2000.wpd 39 July 11, 2000 Upon expiration, or earlier termination, the City shall have no continuing obligations to Contractor other than those expressly provided for in this Agreement. In connection therewith, Contractor acknowledges that Public Resources Code Section 49520 affords it no rights to notice or continuation of service greater than or different from those provided under this Agreement and agrees to waive whatever rights it may be afforded by Section 49520. Section 21.3 Indemnification Regarding Lawsuits Challenging This Agreement If any lawsuit by any third party is commenced challenging the legality of this Agreement, or challenging the action of the City Council in approving this Agreement, Contractor shall, at its sole cost, and with counsel approved by City, defend, indemnify and hold harmless the City, its officers, employees and agents against such lawsuit(s). If a final judgment of a court of competent jurisdiction determines that this Agreement is illegal or was unlawfully entered into by City, City may elect to terminate this Agreement and in such event Contractor shall have no claim against City for damages of any kind (including but not limited to loss of profits) on any theory. This Agreement, consisting of forty (40) pages, not including Exhibits A and B attached hereto, shall be executed in triplicate, of which each executed copy shall have the full force and effect of an original. Date: 4 7 L-:zc,-o0 ATTEST: APPROVED AS TO FORM: K TH INE JEN N, City Attorney Date: -7 I (OV Date: 71ZS 12.006 CITY OF LA QUINTA WASTE FORNIA, INC. By: V V V u r N Vice President �— By: �. Se C:\Mv Documents\WPDOCS\ContWaste2000.Wod 41 July 12, 2000 Guaranty THIS GUARANTY (the "Guaranty") is given as of the 5th day of July, 2000, by WASTE MANAGEMENT, INC., a corporation organized under the laws of the State of Delaware (hereafter "Guarantor"), to the CITY OF LA QUINTA, a municipal corporation (hereafter the "City"). THIS GUARANTY is made with reference to the following facts and circumstances: A. Waste Management of California, Inc. (hereafter "Contractor") is a corporation organized under the laws of the State of California. B. Contractor and the City have negotiated an Agreement for the Collection, Transportation and Disposal of Solid Waste, and Recycling of Recyclable Materials, dated as of July , 2000, (hereafter collectively referred to as the "Agreement"), under which the Contractor is granted the right to and assumes the duty of collecting Solid Waste and certain Recyclable Materials generated within the City and arrangement for their transport, processing, disposal or reuse. A copy of the Agreement is attached hereto and incorporated herein by this reference. C. It is a requirement of the Agreement, and a condition to the City's entering into the Agreement, that Guarantor guaranty Contractor's performance of the Agreement. D. Guarantor is providing this Guaranty to induce the City to enter into the Agreements. NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreements. Guarantor hereby irrevocably and unconditionally",guarantees to the City to take necessary actions, including, but not limited to the payment of funds, necessary to assure the complete and timely performance, satisfaction and observation by Contractor of each and every term and condition of the Agreement which Contractor is required to perform, satisfy or observe. In the event that Contractor fails to perform, satisfy or observe any of the terms and conditions of the Agreement, Guarantor will promptly and fully cause the performance of the Contractor's obligations, either through an affiliate of Guarantor or a third party satisfactory to the City in its reasonable judgement. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Contractor due to its breach of the Agreement. C:\My Documents\WPDOCS\ContWaste2000.wpd 1 July 12, 2000 2. Guarantor's Obligations are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited, and with respect to any payment obligation of Contractor under the Agreement, shall constitute a guarantee of payment and not of collection. 3. Waivers. The Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under it for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Contractor; (2) any amendment, modification or waiver of any provision of the Agreement; (3) the actual or purported rejection by a trustee in bankruptcy of the Agreement, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (4) any waiver, extension, release or modification with respect to any of the obligations of the Agreement guaranteed hereunder or the impairment or suspension of any of the City's rights or remedies against Contractor; or (5) any merger or consolidation of the Contractor with any other corporation, or any sale, lease or transfer of any or all the assets of the Contractor. Without limiting the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code Section 2819. The Guarantor hereby waives any and all benefits and defenses under California Civil Code Sections 2845, 2849 and 2850, including, without limitation, the right to require the City to (a) proceed against Contractor, (b) proceed against or exhaust any security or collateral the City may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor's benefit, and agrees that the City may proceed against Guarantor for the obligations guaranteed herein without taking any action against Contractor or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral the City may hold now or hereafter hold. Guarantor hereby waives any right which it may have to reimbursement from Contractor for amounts disbursed by Guarantor and any right of subrogation to the rights of the City against Contractor, including, without limitation, such rights as may be provided under California Civil Code Sections 2847 and 2848. Guarantor agrees that the City may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Contractor or any other guarantor or pledgor without impairing the City's rights and remedies in enforcing this Guaranty. The Guarantor hereby expressly waives diligence, presentment, demand for payment or performance, protest and all notices whatsoever, including, but not limited to, notices of non-payment or non-performance, notices of protest, notices of any breach or default, and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, Guarantor's obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by Guarantor or Contractor prior to such avoidance or recovery, and (b) payment in full of any obligations then outstanding. C:\My Documents\WPDOCS\ContWaste2000.wpd 2 July 12, 2000 4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed by Contractor, and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Contractor's obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by the City against Contractor arising out of the Agreement based on Contractor's failure to perform which has not been settled or discharged. 5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right to the City to take other or further action without notice or demand. No modification or waiver of any of the provisions of this Guaranty shall be effective unless it is in writing and signed by the City and by Guarantor, nor shall any waiver be effective except in the specific instance or matter for which it is given. 6. Attorney's Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees to pay actual attorneys' fees and all other costs and expenses incurred by the City in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the parties hereunder. 7. Governing Law: Jurisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws rules for all purposes, including, but not limited to, matters of construction, validity and performance. Guarantor agrees that any action brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following person as its agent for service of process in California: CT Corporation System 818 West Seventh Street, 2nd Floor Los Angeles, CA 90017 8. SeveraL ty. If any portion of this guaranty is held to be invalid or unenforceable, such invalidity shall have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect. 9. Binding on Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substantially all of its assets and its shareholder(s) in the event of its dissolution or insolvency. C:\My Documents\WPDOCS\ContWaste2000.wpd 3 July 12, 2000 10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Articles of Incorporation and By-laws, and that the person signing this Guaranty on its behalf has the authority to do so. 11. Subordination. Any claims Guarantor may have against Contractor are hereby subordinated to any and all claims of the City against Contractor until such time as the obligations of Contractor to the City are fully satisfied and discharged. 12. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows: To the City: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attention: City Manager with a copy: City Attorney, at the same address. To the Guarantor: Waste Management, Inc. 1001 Fannin, Suite 4000 Houston, TX 77002 Attention: General Counsel IN WITNESS WHEREOF, Guarantor has executed this Guaranty on the day and year first above written. WASTE MANAGEMENT, INC. By: Vice President By: %W J. idw Vice President & Assistant Secretary C:\My Documents\WPDOCS\ContWaste2000.wpd 4 July 12, 2000 EXHIBIT A selea posodad 0-1 6£68d aa:j dwna a3inuag N � m c E o= NN E m E U- a) "o O C C U to O) C4 7 � /M Ch 0 � N N N &93 N N fA Ci N N � d9 dN9 fA O N 0 CCi Go 69 N4 fH U U w w Ma A yy V V Z 8 a) 0 a) CD co co C C m m U V C U C a) C U C 3 a) (D O 0) N O as rn c c _ 4) c xmd m (D M CM c m m� m Mn vw a)�0: > x> U)> x U> y V m m E E o c O LQ T > O O O m U) 0 U rV[ � c L N (D U > N m O V pCp 'C -mp U ; 0 >' Ln C — � a) m Ld a) C U N V O O N U 69 N a C O O La L7 C 6 t C N C U 3 E m o 0 U r c� m >. m C E m >. a) 'm 0. E c S Z a�i m E 0 CD W N , a, 0, (a c (D a) LAC m E c a)c m cr dot Ev 'mm N EL 0 t a) E o T m v m O = a) O o O C N o •� c3i 3 NO 'p C N c 0) N N --p O` M O a m x a) Q 0 0)F-F-2 A-1 100% FRANCHISED JULY 2000 2 YARD SERVICE $ 48.34 $ 17.47 $ 3.88 $ 69.69 2 $ 84.20 $ 33.29 $ 7.76 $ 125.25 3 $ 118.30 $ 49.21 $ 11.63 $ 179.14 4 $ 152.21 $ 64.99 $ 15.51 $ 232.71 5 $ 186.18 $ 77.59 $ 19.39 $ 283.16 6 $ 220.41 $ 96.54 $ 23.27 $ 340.22 EXTRA EMPTY $ 28.68 3 YARD SERVICE 1 $ 60.67 $ 25.01 5.82 $ 91.50 2 $ 104.42 $ 48.28 11.63 $ 164.33 3 $ 147.22 $ 70.90 17.45 $ 235.57 4 $ 186.84 $ 93.46 23.27 $ 303.57 5 $ 228.98 $ 116.54 29.07 $ 374.59 6 $ 269.68 $ 138.96 34.89 $ 443.53 EXTRA EMPTY $ 39.39 4 YARD SERVICE 1 $ 82.96 $ 33.69 7.76 $ 124.41 2 $ 129.77 $ 63.37 15.51 $ 208.65 3 $ 178.35 $ 92.94 23.27 $ 294.56 4 $ 227.11 $ 122.84 31.01 $ 380.96 5 $ 273.22 $ 152.32 38.76 1 $ 464.30 6 $ 318.29 $181.661 46.51 $ 546.46 EXTRA EMPTY $ 53.30 6 YARD SERVICE 1 $ 124.46 $ 50.10 11.63 $ 186.19 2 $ 194.67 $ 96.18 23.27 $ 314.12 3 $ 267.49 $ 141.13 34.89 $ 443.51 4 $ 340.90 $186.09 46.51 $ 573.50 5 231.85 58.14 $ 699.83 g M79.51 EXTRA EMPTY NEW START FEE $ 5.71 RESTART FEE $ 15.00 DELIVERY FEE $ 16.16 LOCKED ENCLOSURE OR BIN PULL-OUT > 35' (per pick-up) $ 4•64 BIN PULL-OUT > 20' $ 26.55 LOCKING CONTAINER $ 51.81 REPLACEMENT LOCKING BAR $ 34.58 SATURDAY (for service < 6xlwk) $ 21.54 A-2 H z LL O V w (=j clo � M J a OD ci 00 Owa 69�� IL U) 0 0 z Q w W U) CO CO z coo oo LL w it w U. �< < VN J O o 0 w J N ct) V O J J O V � W C0 N O LL a 0 � a U 0 a a� E c 0 0 I� r r ch N r Crl 6% EA �, cc mO 0 N 2) O m M L t U U N fA N N N " �0 nm U n v'Q a�i~ N N Z Z aaaW 0 z � .-- N O � N �69.� W-:� Y U N a� s U LL N N U- CO CO cr_ w A-3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE RESTATED AND AMENDED AGREEMENT FOR THE COLLECTION, TRANSPORTATION AND DISPOSAL OF MUNICIPAL SOLID WASTE BY AND BETWEEN THE CITY OF LA QUINTA AND WASTE MANAGEMENT OF CALIFORNIA, INC. WHEREAS, Chapter 6.04 of the La Quinta Charter and Municipal Code authorizes the collection, transportation and disposal of municipal solid waste; and WHEREAS, City staff has negotiated. a Restated and Amended Agreement, pursuant to City Council direction, with Waste Management of California, Inc., for the collection, transportation and disposal of municipal solid waste. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta that the Restated and Amended Agreement for Collection,. Transportation and Disposal of Municipal Solid Waste by and between the City of La Quinta and Waste Management of California, Inc., (Attachment 1 ) is hereby approved. PASSED, APPROVED and ADOPTED at an adjourned regular meeting of the La Quinta City Council, held on this 5' day of July, 2000, by the following vote, to wit: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pena NOES: None ABSTAIN: None ABSENT: None JOHWJJ. PENA, or City of La Quinta, California Resolution No. 2000-83 Waste Management Collection, Transportation & Disposal of Municipal Solid Waste July 5, 2000 Page 2 ATTEST: JU . GREEK, CMC%AA , City Clerk City of La Quinta, California (City Seal) APPROVED AS TO FORM: . KATHERI E JENSON ity Atto ney City of La Quinta, California B-2 RESOLUTION NO. 2000-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, APPROVING THE RESTATED AND AMENDED AGREEMENT FOR THE COLLECTION AND RECYCLING OF RECYCLABLE MATERIALS BY AND BETWEEN THE CITY OF LA QUINTA AND WASTE MANAGEMENT OF CALIFORNIA, INC. WHEREAS, Chapter 6.05 of the La Quinta Charter and Municipal Code authorizes the removal and conveyance of recyclable materials; and WHEREAS, City staff has negotiated a Restated and Amended Agreement, pursuant to City Council direction, with.Waste Management of California, Inc., for the collection and recycling of recyclable materials. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta that the Restated and Amended Agreement for Collection and Recycling of Recyclable Materials by and between the City of La Quinta and Waste Management of California, Inc., (Attachment 1) is hereby approved. PASSED, APPROVED and ADOPTED at an adjourned regular meeting of the La Quinta City Council, held on this 5t' day of July, 2000, by the following vote, to wit: AYES: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pena NOES: None ABSTAIN: None ABSENT: None B-3 — ()Q� - JOHN W PEN ayor City of La Quinta, California Resolution No. 2000-84 Waste Management Collection and Recycling of Recyclables July 5, 2000 Page 2 ATTEST: JUNE RE , CMC/AAE, Ity CI rk City of La Quinta, California (City Seal) APPROVED AS TO FORM: M. KATHER E JENSOCity Att ey City of La Quinta, California C .l This., bond replAces and supersedes Fireman's Fund Bond No. 11127317813 effective 8/1/2002. CHUBB GROUP OF INSURANCE COMPANIES & I CHUBB 15 Mountain View Road, P.O. Box 1615, Warren, New Jersey 07061-1615 FEDERAL INSURANCE COMPANY PERFORMANCE BOND Bond No. 8145 59 69 Amount $1, 000, 000.00 Know All Men By These Presents, Thatwe, Waste Management of California, Inc. (hereinafter called the Principal), as Principal, and the FEDERAL INSURANCE COMPANY, Warren, New Jersey, a corporation duly orga- nized under the laws of the State of Indiana, (hereinafter called the Surety), as Surety, are held and firmly bound unto City of La Quinta, CA (hereinafter called the Obligee), in the sum of One Million and No/ 100 --- Dollars ($ 1, 000, 000.00 --- ), for the payments of which we, the said Principal and the said Surety, bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. Sealed with our seals and dated this 12th day of August X1Y9 2002 WHEREAS, the Principal entered into a certain Contract with the Obligee, dated August 1 '46 for Trash Disposal in accordance with the terms and conditions of said Contract, which is hereby referred to and made a part hereof as if fully set forth herein. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bounden Prin- cipal shall well and truly keep, do and perform each and every, all and singular, the matters and things in said Contract set forth and specified to be by said Principal kept, done and performed, at the times and in the manner in said Contract specified, or shall pay over, make good and reimburse to the above named Obligee, all loss and damage which said Obligee may sustain by reason of failure or default on the part of the said Principal so to do, then this obligation shall be null and void; otherwise shall remain in full force and effect, subject, however, to the following conditions: NOTWITHSTANDING ANYTHING CONTAINED IN THE CONTRACT TO THE CONTRARY, THE LIABIL- ITY OF THE PRINCIPAL AND THE SURETY UNDER THIS BOND IS LIMITED TO THE TERM OF THE CONTRACT FROM August 1, 2002 TO August 1, 20C13 . ANY EXTENSIONS OR RENEWALS OF THIS BOND MUST BE CONSENTED TO IN WRITING BY THE PRINCIPAL AND THE SURETY. FAILURE TO EXTEND OR RENEW THIS BOND BY THE PRINCIPALAND THE SURETY SHALL NOT CONSTITUTE A DEFAULT UNDER THIS BOND. (over) Contracts with Renewal Options Form 15-02-0300 (Rev. 4-95) Any suit under this bond must be instituted before the expiration of two (2) years from the date on which final payment under the Contract falls due. No right of action shall accrue on this bond to or for the use of any person or corporation other than the Obligee named herein or the heirs, executors, administrators or successors of the Obligee. Waste Management of California, Inc. I Principal Terri Morris n, Attorney-i1-.Fact FEDE� INS NCE COMPANY annis MattfsoAi, -Attorne3k-jn-Fact Power of Attorney KNOW ALL MEN BY THESE PRESENTS that each of the entities listed on Exhibit A attached hereto (individually, the "Corporation') does hereby constitute and appoint Robert Bruce, Donald R. Gibson, Melissa Haddick, Jacqueline Kirk, Tannis Mattson, Terri Morrison, and Sandra Parker of Marsh USA Inc. as its true and lawful agent to execute and deliver, in the Corporation's name and on the Corporation's behalf, surety, performance, bid and payment bonds and to affix thereon the Corporation's seal. IN WITNESS WHEREOF, the Corporation has caused this instrument to be signe Vice Pre 'a ent and asurer and its corporate seal to be affixed hereto this Mday of , 2002. Witness: Donna L. Meals Director, FinanaaI surance Waste Management, Inc. Ronald. H. Jones Vice President and Treasurer 1328 1329409 Ontario Inc. NA 0000001 Active 1329 3368084 Canada Inc. NA-0000003 Active 1330 635952 Ontario Inc. NA-0000005 Active 1331 709292 Alberta Ltd. NA-0000006 Active 1332 730810 Alberta Ltd. NA-0000007 Active 1333 740922 Alberta Ltd. NA-0000008 -Active 1334 .762570 Alberta Ltd. NA-0000009 Active 0105 A 1 Compaction Inc. 13-2631473 Active 1336 Acaverde SA de C.V. NA-0000010 Active 1337 jAcaverde Senddos, SA de C.V. NA-0000011 Active 1448 Adam J. Deitrick and Sons Disposal & Coal Hauling, Inc. 23-2569755 Active 0109 Advanced Environmental Technical Services, L.L.C. 36-4016575 Active 0112 Akron R tonal Landfil, Inc. 31-1595650 Active 0113 Alabama Waste Disposal Solutions, L.L.C. 76-0641853 Active 0116 Alliance SanitaryLandfill, Inc. 23-2383025 Active 1480 Afstate Disposal Service, Inc. 39-1254020 Active 0118 All -Waste Systems, Inc. 13-2722291 Active 0121 American Landfill Gas Company 34-1817578 Active 0122 American LandfiN, Inc. 34-1355783 Active 0123 American RRT Fiber Supply, L.P. 23-2790769 Active 0124 American Waste Control of New York, Inc. 13-3469448 Active 0127 Anderson Landfill, Inc. 76-0590137 Active 0128 Anderson -Cottonwood Disposal Services, Inc. 68-0114107 Active 0133 Antelope Valley Recycling and Disposal Facility, Inc. 95-3344381 Active 0132 Arden Landfill, Inc. 25-1249512 Active 0142 Atlantic Waste Disposal, Inc. 36-3852536 Active 0145 Automated Salvage.Transport, Inc. W1292409 Active 1339 Awdwaste Services SA NA-000W13 Active 1567 AZ Newco, L.L.C. 69-000498 Active 1042 Azusa Land Reclamation, Inc. 95-2908438 Active 0150 B & E Cartage Inc. 55-0664208 Active 0151 B & L Disposal Co. 88-0087834 Active 0149 B&B Landfill, Inc. 58-2437473 Active 1029 Bads Pressure Turbine, LLP 74-2957622 Active 0153 Baltimore Environmental Recovery Group, Inc. 52-1913640 Active 0155 Bayside of Marion, Inc. 22-3479629 Active 0159 Bentofic Technologies (Canada), Inc. NA-0000016 Active 1469 BentD& Technologies (USA), Inc. 88-0388292 Active 0161 Best Recyding & Disposal, Inc. 41-1801671 Active 1343 Bestan Inc. NA-0000017 Active 0284 Big Dipper Enterprises, Inc. 45-0325454 Active 0162 Big Valley Transport Inc. 55-0697385 Active 0163 Bio-Energy Partners 36-3500224 Active 0165 jBisig Disposal Service, Inc. 16-1118480 Active 1454 Bland Disposal Service, Inc. 59-1662042 Active 1489 Blue Water Fiber Limited Partnership 38-3158273 Active 0376 Bluegrass Containment, L.LC. 76-0641298 Active 0169 Boone Waste Industries, Inc. 59-2978195 Active 0170 Booths Creek Sanitation, Inc. 55-0647125 Active 0171 Bosarge & Edmonds Contractors, Inc. 64-0715724 Active 0172 Boudin's Waste & Recycling, Inc. 64-0641846 Active 0173 Braddon Enterprises, Inc. 55-0625131 Active 0176 Brand Scaffold, Inc. UK-0000003 -Active 0177 Brazoria County Recycling Center, Inc. 76-0196W9 Active 0181 Bumsville Sanitaq Landfill, Inc. 41-1882463 Active 0185 C & L Disposal Company, Inc. 68-0130033 Active 0186 C.D.M. Sanitation, Inc. 41-1295804 Active 0167 ICID. Landfill, Inc. 16-1091396 Active 0188 C.I.D. Refuse Service, Inc. 16-1262429 Active 1568 CA Newco, LLC. 69-0003500 Active 0191 Cal Sierra Disposal 94-2349727 Active 0193 Califomia Asbestos Monofill, Inc. 68-0232434 Active 1481 Carifomia Waste Recovery Systems, Inc. UK-0000005 Active 0195 Campbell Wells Norm Corporation 76-0383660 Active 1346 lCanadian Waste Services Holdings, Inc. NA-0000020 Active 1347 Canadian Waste Services, Inc. NA 0000021 Active 1311 CAP/CRA, LL.C. UK-0000007 Active 0197. Capital Sanitation Company 88-0121888 Active 0196 lCapitol CiV Disposal, Inc. 84-0645674 Active 0377 Capitol Disposal, Inc. 76-0638591 Active 0198 Caramella-Balls rdini, Ltd. 88-0173055 Active 0199 Cardinal Ridge Development, Inc. 38-3020653 Active 1030 Carleton Farms Landfill, Inc. 38-3406996 Active 0200 Cannel Marina Corporation 9472643722 Active 0201 Carolina Grading, Inc. 57-=3608 Active 0202 Carver Transfer & Processing, LLC 41-1767917 Active 0203 Cedar Hammock Refuse Disposal Corporation 59-0804577 Active 0204 Cedar Ridge Landfill, Inc. 62-1727570 Active 0205 Central Disposal Systems, Inc. 42-0995450 Active 0206 lCentral Missouri Landfill, Inc. 43-1397423 Active entral Val Waste Services, Inc. 06-1487145 Active hadwick Road Landfill, Inc. 58-1798581 Active hambers Clearview Environmental Landfill, Inc. 25-1652556 Active E hambers Development Company, Inc. 25-1214958 Active hambers Development of Ohio, Inc. 76-0694900 Active hambers of Asia NA-0000159 Active 0168 Chambers of Georgia, Inc. 58-2397639 Active 1587 Chambers of Hong Kong, Inc. NA-0000156 Active 0217 Chambers of Mississippi, Inc. 25-1628285 Active 0219 Chambers of West Virginia, Inc. 25-1588129 1 Active 0220 Chambers Services, Inc. 25-1653548 Active 0221 Charlotte Landscaping and Sanitation Services Inc. 59-0862386 Active 1478 Chaska Sanitation, Inc. 41-1738897 Active 1010 ChastangLandfill, Inc. 76-0638602 Active 0224 Chemical Waste Management of Indiana, L.L.C. 36-4067587 Active 0227 Chemical Waste Management of the Northwest, Inc. 91-1089393 Active 0223 Chemical Waste Management, Inc. 36-2989152 Active 0231 Chesser Island Road Landfill, Inc. 58-2364490 Active 0233 Chiquita Canyon Landfill, Inc. 94-2993437 Active 0235 CID MRRF, Inc. 36-3970169 Active 0236 City D' stems, Inc. 37- . 7001 Active 0237 iCity Environmental Services Landfill, Inc. of Florida 58-1931257 Active 0239 City Environmental Services Landfill, Inc. of Hastings 38-3058445 Active 0240 City Environmental Services Landfill, Inc. of Lapeer 38-3278399 Active 0241 C' Environmental Services Landfill, Inc. of Panama C' 38-3261426 Active 0238 City Environmental Services Landfill, Inc. of Saginaw 38-3259281 Active 1561 City Environmental Services, Inc. of Florida 59-3503469 Active 0246 City Environmental Services, Inc. of Waters 38-=0069 Active 1560 City Environmental, Inc. 38-3407576 Active 0247 lCky Management Corporation 38-2056600 Active 0248 Clayton -Ward Company, Inc. 68-0253945 Active 0250 Cleburne Landfill Company Corp. 59-3069374 Active 0251 Cleburne Landfill Corporation 38-3125468 Active 0253 Cloverdale Disposal, Inc. 94-2668608 Active 0254 CNS Holdings, Inc. 36-4132352 Active 0255 CNSI Sub, Inc. 58-2140641 Active 0256 Coast Waste Managernent Inc. 95-2557952 Active 0257 Cocopah Landfill, Inc. 86-ON9420 Active 0259 Colorado Landfill, Inc. 76-0639312 Active 0264 Columbia Geosystems Ltd. MA40000024 Active 1031 lColumbia Regional Transportation, Inc. 764)648501 Active 1027 Commercial Disposal Service, Inc. 55-0521601 Active 0268 Connecticut Valley Sanitary Waste Disposal, Inc. 04-2796580 Active 0269 Conservation Services, Inc. 84-0915035 Active 0270 Container ReWcling Alliance, L.P. 36-3730138 Active 1312 Continental Waste Industries Arizona, Inc. 22-3146904 Active 0272 CopperMountain Landfill, Inc. 86-0697738 Active 0274 Coshocton Landfill, Inc. 31-1214800 Active 0275 Cougar Landfill, Inc. 76-0211843 Active 0276 lCountryside LandfiN, Inc. 36-2838336 Adve 1450 Cuyahoga Landfill, Inc. 76-0680496 Active 0280 CWM Chemical Services, L.L.C. 36-4203347 Active 0281 CWM Resource Recovery, Inc. 31-0951369 Active 1458 D & T Refuse Service, Inc. 34-1536941 Active 0283 Dafter Sanitary Landfill, Inc. 38-2754804 Active 0285 Dakota Resource Recovery, Inc. 41-1428516 Active 0286 Dauphin Meadows, Inc. 23-2390183 Active 0289 Deep Valley Landfill, Inc. 23-2886200 Active 0290 Deer Track Park Landfill, Inc. 39-1802678 Active 0291 DELand Landfill, Inc. 76-0590138 Active 0292 Delaware Recyclable Products, Inc. 51-0334417 Active 0293 Dickinson Landfill, Inc. 76-0325384 Active 0294 Disposal Service, Inc. 55-0618479 Active 1032 Don's Garbage Service, Inc. 93-0796632 Active 1594 Donahue/JRP Asia Pacific Ltd NA-0000163 Active 0299 Donno Company, Inc. 11-1734007 Active 0301 Duluth Waste Marketing, Inc. 76-05MI52 Active 0325 E.C. Waste, Inc. 664)523535 Active 0305 Earthcorp, L.L.C. 61-1342589 Active 0306 Earthmovers Landfill, L.LC. 61-1342691 Active 0307 East Live Landfill, Inc. 34-1637446 Active 0309 Eastern Development Services, Inc. 22-3576242 Active 0310 Eastern Disposal of Georgia, Inc. 76-0639270 Active 1559 Eastern One Land Corporation 76-0695122 Active 0319 Eastern Transfer of New York, Inc. 22-3535642 Active 0322 Eastern Waste of New York Inc. 22-3476672 Active 0324 Eastern Waste of West Virginia, Inc. 55-0758221 Active 1581 Ecolbec SA de CV NA-0000150 Acfive 0331 EI Coqui de San Juan 664)525083 Active 0332 1 El Coqui Landfill Company, Inc. 66-0555785 Active 0333 El Coqui Waste Disposal, Inc. 7640480500 Active 1033 ELDA Landfill, Inc. 76-0639272 Active 0335 Elk River Landfill, Inc. 41-1283941 Alive 1446 Envirofil Illinois Acquisition Corp. 91-2155129 Active 0339 Envirofil of Illinois, Inc. 37-0957555 Adive 0342 Environmental Control, Inc. 85-0325898 Active 0346 Equipment Credit Corporation 76-"71150 Alive 0347 Evergreen Landfill, Inc. 76-0472693 Active loll Evergreen Recyding and Disposal Facility, Inc. 76-0638587 Active 0354 F F F, Inc. 4140943545 Active 1355 F.U. International Ltd. NA4X00029 Active 0350 Farmers LandfiN, Inc. 434KNO 0 Adivee 0351 Feather River Disposal, Inc. 06-1479349 Alive 0353 FernleyDisposal, Inc. AF-0000023 Active 1479 Field of Dreams Recyding Center Inc. 41-1875126 Active 0358 Front Ra Landfill, Inc. 76-0479974 Acute 0359 Frontier Environmental, Inc. 59-3221517 Active 0361 G.C. Environmental, Inc. 764=898 Alive 0367 G.I. Industries 87-0430285 Active 0362 GA Landfills, Inc. 58-2293782 Alive 0363 Gallia Landfill, Inc. 31-1509605 Active 0364 Garnet of Maryland, Inc. 52-1916417 1 Alive 1595 GCP Engineering Ltd NA-0000164 Active 1359 Geolining Abdichtungstechnik GmbH NA-0000032 Active 0366 Georgia Waste Systems, Inc. 58-1028526 Active 1360 Gestion Des Rebuts D.M.P. NA-0000033 Active 0369 Glen's Sanitary Landfill, Inc. 38-2065407 Active 0371 Graham Road Recycling & Disposal Facility, Inc. 76-0412397 Active 0373 lGrand Central Sanitary Landfill, Inc. 23-2049337 Active 1477 Greater Midwest, Inc. 76-0697217 Active 0378 Green Valley Disposal Company, Inc. 94-2148643 Active 1596 Greenworks, Inc. 58-2330502 Active. 0381 Ground Sea Air International Forwarder Inc. NA-0000038 Active 1363 Grupo WMX, SA De C.V. NA-0000039 Active 0382 Guadalupe Rubbish Disposal Co., Inc. 95-2746842 Active 0383 Guam Resource Recovery Partners, L.P. 36-4149976 Active 0384 Gulf Disposal, Inc. 59-1052056 Active 0385 Guyan Transfer and Sanitation Service, Inc. 55-0487165 Active 1597 H.W. Ward Trash Co. 71-0684338 Active 0388 Ham Lake Haulers, Inc. 41-1704537 Active 0393 Harris Sanitation, Inc. 59-1219741 Active arwood Landfill, Inc. 52-1637402 Alive V edco Landfill, Ltd. NA-0000040 Active illsboro Landfill Inc. 93-0760239 Active 0400 Holyoke Sanitary Landfill, Inc. 04-2481863 Active 0402 IN Landfills, L.L.C. 61-1342588 Active 0404 Independent Sanitation Company 88-0126699 Active 1368 Intersan Inc. NA-0000041 Active 0408 jJahner Sanitation, Inc. 45-0410330 Active 0409 jJay County Landfill, L.L.C. 61-1342592 Active 0411 John Smith Landfill, Inc. 77-0462653 Active 1370 Johnson Filtration Syskems Limited NA-0000044 Active 0414 Jones Sanitation, L.L.C. 61-1342583 Active 0415 Junker Sanitation Services, Inc. 4140963253 Active 0416 K and W Landfill Inc. 38-2504167 Active 0417 Kahle Landfill, Inc. 43-1682575 Active 0418 Keene Road Landfill, Inc. 59-2044226 Active 0420 Kelly Run Sanitation, Inc. 25-1696669 1 Active 0421 Ken's Pickup Service, Inc. 38-3132789 Active 1372 Key Disposal Ltd. NA-0000045 Active 0422 Kimmins Recycling Corp. 59-2984276 Acute 0423 King George Landfill, Inc. 54-1632806 Active 1313 KN Industrial Services, Inc. 76-0697201 Active 0425 Knutson Material Recovery Facility, Inc. 41-1671543 Active 0426 Knutson Services, Inc. 41-0971940 Active 1482 Kubasch & Sons, Inc. 41-1247801 Active 1 0427 JUM Landfill, Inc. 84-1492401 Active 0430 Land Reclamation Company, Inc. 36-3640284 Active 1012 Landfill of Pine Ridge, Inc. 76-0638593 Active 0431 Landfill Services of Charleston, Inc. 55-0731302 Active 0432 Landfill Systems, Inc. 85-0444532 Active 0433 La 's Sanitary Service, Inc. 94-2362392 Active 0436 Laurel Highlands Landfill, Inc. 25-1640583 Active 0437 Laurel Ridge Landfill, L.L.C. 61-1342582 Active 0438 LCS Services, Inc. 55-0673745 Active 0440 LFG Production, L.P. 36-4191460 Active 0441 LG-Gamet of Maryland JV 52 2059945 Active 0443 Liberty Landfill, L.L.C. 61-1342590 Active 0444 Liberty Lane West Owners' Association 36-4163829 Alive 1325 Liberty Street Development Company, Inc. 76-0697202 Active 1565 jUghtning Disposal, Inc. 37-1332993 Active 0445 ILiquid Waste Management, Inc. 95-2779930 Active 1569 Longmont Landfill, L.L.C. 69-0003501 Active 1577 M.S.T.S. AG NA-0000146 Active 0452 M.S.T.S., Inc. 36-3542321 Active 0451 M.S.T.S., Limited Partnership 36-3790528 Active 0456 Mahoni Landfill, Inc. 34-1047662 Active 0457 Maplewood Landfill, Inc. 25-1636549 Active 0458 Mara i Bros., Inc. 22-1406M Active 0459 Mass Gravel Inc. 04-3117495 Active 0462 Mc Ginnes Industrial Maintenance Corporation 74-1532790 Active 0461 McDaniel Landfill, Inc. 45-0399545 Active 0753 McGill Landfill, Inc. 38-3076718 Active 0463 Meadowfill Landfill, Inc. 31-1509701 Active 0464 Michigan Environs, Inc. 38-2434760 Active 0466 Middle Island Ente , Inc. 55-0525092 Active 0467 Midwest Transport, Inc. 39-1829967 Active 0469 Minneapolis Refuse, Incorporated UK 40000017 Acute 0470 M-L Comrnenial Garbage Service, Inc. 55-0673425 Active 0472 Modesto Garbage Co., Inc. 94-1643145 Active 0475 Moor Refuse, Inc. 33-0622768 Active 0476 Mountain Indemnity Insurance Cornpny 03-0328445 Active 1378 Mountain Indemnity International Limited NA4XXX)W3 Active 0479 Mountainview Landfill, Inc. 76-0548746 Active 0478 Mountainview Landfill, Inc. 25-1538716 Active 0481 Napa Valley Disposal Service, Inc. 94-2220649 Active 1570 Nassau Landfill, L.L.C. 69-0003502 Active 0482 National Guaranty Insurance Company of Vermont 36-3643756 Active 1460 Naue Serrot Beteiliguns GmbH & Co. KG. NA4)000055 Active 1461 Naue Serrot Europe GmbH & Co. KG. NA40000056 Acdve 0483 Neal Road Landfill Corporation 94-2678091 Active 0486 1 New England CR Inc. 04-2771350 Active 0487 New Milford Landfill, L.L.C. 76-0641312 Active 1571 New Orleans Landfill, L.L.C. 69-0003503 Active 0489 NH/VT Energy Recovery Corporation 02-0390004 Active 0490 Nichols Sanitation, Inc. 59-0973855 Active 0494 North Hennepin Recycling and Transfer Corporation 41-1243824 Active 0499 lNorthem Recycling, Inc. 13-3653031 Active 0500 INorftwmtem Landfill, Inc. 52-2023458 Active 0504 Nu -Way Live Oak Landfill, Inc. 68-0236308 Active 0507 Oakridge Landfill, Inc. 25-1547187 Active 0508 Oakwood Landfill, Inc. 57-0974474 Active 0509 Oil & Solvent Process Company 95-1864361 Active 0511 Okeechobee Landfill, Inc. 25-1628636 Active 0524 Orange CountyLandfill, Inc. 25-1683729 Acute 1028 P & R Environmental industries, Inc. 56-1803010 Active 1314 Pacific Waste Management, L.L.C. 98-0227312 Alive 0530 Palo Alto Sanitation Company 94-1075868 Active 0532 Pappy, Inc. 52-1561430 Active 0534 Peerless Landfill Company 59-3179491 Active 0536 Penn Wamer Club, Inc. 51-0114842 Active 0539 Pennwood Crossing, Inc. 22 2260307 Active 0537 Pen -Rob, Inc. 86-05M13 Active 0538 Penuelas Valley Landfill, Inc. 66-0560251 Active 0540 People's Landfill, Inc. 38-3406M Active 0541 Peterson Demolition, Inc. 41-1625867 Active 0543 Phoenix Resources, Inc. 23-2483102 Active 0545 Pine Grove Gas Development LLC 51-0372609 Active 0547 Pine Grove LandfiN, Inc. 23-2388139 Active 0648 Pine Grove Landfill, Inc. 31-1509609 Active 0550 Pine RLandfiN, Inc. 76-0680343 Active 0551 Pine Tree Acres, Inc. 38-2544258 Active 1014 Plantation Oaks Landfill, Inc. 76-0638592 Active 0552 Poly -Jon of Savannah, Inc. 58-1160814 Active 1015 Prairie Bluff LandfiN, Inc. 76-0638590 Active 1578 Promotora Ambientai SA de CV NA-WW147 Active 1582 Protocol SA de CV NA-0000151 Active 1016 Pulaski Grading, L.L.C. 76-0638043 Active 0559 Pullman Power Products Corporation 23-2146479 Active 0563 Quail HoNow Landfill, Inc. 62-1727567 Active 0564 lQuality Waste Control, Inc. 41-1249787 Active 1388 Questquill Ltd. 98-0221631 Active 0565 R & B Landfill, Inc. 25-1754371 Active 0567 R.S.W. Recycling, Inc. 88-0195598 Active 1390 Rail Cycle North Ltd. NA-0000064 Active 0569 Rail -Cycle L.P. 36-3830481 Active 0571 RCC Fiber Company, Inc. 63-1084653 Active 0572 RCI Hudson, Inc. 04-3044820 Active 0573 Reco Ventures, L.P. 76-0503271 Active 0574 Recycle & Recover, Inc. 58-1836132 1 Active 0575 Recycle America, Inc. 16-13529M Active 0576 Recycle Minnesota Resources, Inc. 41-1687537 Active 0579 RE-CY-CO, Inc. 41-0992714 Active 0581 lRedwood Landfill, Inc. 94-1443150 Active 0583 lRefuse Disposal, Inc. 55-0722986 Active 0585 Refuse Removal Systems, Inc. 94-2787728 Active 0587 Refuse Services, Inc. 59-1 098850 Active 0588 Refuse, Inc. 88-0094235 Active 0589 Regional Recycling Corporation 22 2631395 Active 0591 REI Holdings Inc. 36-4124520 Active 0593 Reliable LandfiQ, L.LC. 72-1407945 Active 0594 Remote LandfN Services, Inc. 62-1421307 Active 0595 1 Reno Disposal Co. 88-0087833 Active 0596 Resco Holdings Inc. 02-0424331 Active 0600 Resource Control Composting, Inc. 04-3044833 Active 0601 Resource Control, Inc. 04-2655361 Active 0604 Reuter Recycling of Florida, Inc. 59-2376090 Active 0605 Richland County Landfill, Inc. 58-1708996 Active 0606 Ridge Generating Station Limited Partnership 59-3048697 Active 0607 RIH Inc. 36-3870138 Active 0610 RIS Risk Management Inc. 764)308664 Active 0611 Riverbend Landfill Co. 93-07248M Active 0612 Rolling Meadows Landfill, Inc. 76-0325383 Active 1315 Ronnie's Sanitation Service, Incorporated 56-1289528 Active 1316 Rose Fine Reafty Corp. 11-1944881 Active 0614 RRT Design & Construction Corp. 16-1353118 Active 0615 RRT Empire of Monroe County, Inc. 16-1409567 Active 0617 RRT of New Jersey, Inc. 16-1336968 Active 0621 RTS Landfill, Inc. 58-1924102 Active 1585 Rust Associates NA-0000154 Active 0624 Rust Capital Corporation 63-1056011 Active 0625 Rust China Ltd. 364044887 Active 1586 Rust Construcciones Mexico NA-0000155 Active 1393 Rust Controladora, SA de C.V. NA-0000066 Active 1589 Rust Engineering NA-0000158 Active 1584 1 Rust Engineering - Brazil NA-0000153 Active 0626 Rust Engineering & Construction Inc. 63-1081016 Active 1593 Rust Engirmdng (Thailand) Ltd NA-00WI62 Active 0628 Rust Intemational Holdings Inc. 36-3777345 Active 0629 1 Rust International Inc. 63-1081055 Active 1691 Rust Sweden Holdings NA-0000160 Active 1592 Rust VAR Projekt AB NA-0000161 Active 0635 S & S Grading, Inc. 58-1858013 Active 0632 SW Landfill Limited Partnership 76-0404581 Active 0636 IS. V. Farming Corp. 22 2976860 Active 1394 S.E.R.B.S.A. de C.V. INA-0000067 Active 1396 Salutec SA NA-0000069 Active 0642 Sanifill de Mexico (US), Inc. 76-0419331 Active 1397 Sanifill de Mexico, S.A. de C.V. NA-0000070 Active 0644 Sanifill of Florida, Inc. 59-3366098 Active 1317 Sanifill of San Juan, Inc. NA-0000071 Active 0649 Sanifill Power Corporation 76-0496422 Active 0652 SC Holdings, Inc. 36-2898300 Active 1459 Serrot Corporation (Europe) GmbH NA-0000075 Active 0659 Serrot International, Inc. 36-3053263 Active 0503 Serrot International, Inc. Sales Corp 66-0490113 Active 1400 Serubam Servicos Urbanos E Ambientais Ltda NA-0000077 Active 1580 Servicios de Tech is Ambiental SA de CV NA-0000149 Active 1583 Servidos Integrales Proteccion Ambiental SA de CV NA-0000152 Active 0660 SES Bridgeport L.L.C. 36-4057298 Active 0661 SES Connecticut Inc. 02-0390443 Active 0662 ISF, Inc. 76-0472287 Active 0663 IShade Landfill, Inc. 23-2886198 Active 0665 Shoreline Disposal Service, Inc. 94-2680045 Active 0666 Sierra Estrella Landfill, Inc. 86-0717293 Active 0667 Signal Capital Sherman Station Inc. 02-0390302 Active 0668 iSignal Resco, Inc. 02-0361368 Active 0669 ISffryma Landfill, Inc. 25-1562752 Active 0673 Sonoma-Marin Waste Management, Inc. 68-0016286 Active 0676 ISouthem Alleghenies Landfill, Inc. 25-1249160 Active 0677 South6m Plains Landfill, Inc. 73-1384828 Active 1455 Southem Services of TN, L.L.C. 62-1612922 Active 1456 Southern Services of TN, L.P. 62-1443617 Active 0679 Southem Waste Services, L.L.C. 61-1342585 Active 0681 Spruce Ridge, Inc. 41-1591957 Active 1017 Stony Hollow Landfill, Inc. 76-0638597 Active 0685 Storey County Sanitation, Inc. 88-02,64671 Active 1018 Suburban Landfill, Inc. 76-0638596 Active 0692 Super Cycle, Inc. 41-1642303 Active 1566 Texarkana Landfill, L.L.C. 69-0003497 Active 0700 The Waste Management Charitable Foundation 04-3073733 Active 0701 The Woodlands of Van Buren, Inc. 36-3791221 Active 0703 Three Rivers Disposal, Inc. 81-0483309 Active 0705 TNT Sands, Inc. 57-0937314 Active 0706 Tonitown Landfill, Inc. 71-0811099 Active 0707 Town and Country Refuse, Inc. 59-1224889 Active 0708 Trail Ridge Landfill, Inc. 36-3667296 Active 0710 Transamerican Waste Central Landfill, Inc. 76-0463386 Active 0713 Transamerican Waste Industries Southeast, Inc. 76-0438549 Active 0714 Transamerican Waste Industries, Inc. 13-3487422 Active 0717 Transwaste, Inc. 72-1175292 Active 0719 Trash Hunters, Inc. 64-0852590 1 Active 0720 Td-County Sanitary Landfill, L.L.C. 61-0959217 Active 0723 Twin City Sanitation, Inc. 41-1535952 Active 1572 TX Newco, LLC 69-OW3504 Active 0727 United Waste Systems Leasing, Inc. 38-3324M Active 0728 United Waste Systems of Gardner, Inc. 04-3320949 Active 0730 United Waste Systems of Minneapolis, Inc. 41-1858816 Active 0731 United Waste Systems of Minnesota, Inc. 41-0837593 Active 0735 United Waste Systems, Inc. 41-1829772 Active 0736 United Waste Transfer, Inc. 41-1808172 Active 0739 USA South Hills Landfill, Inc. 25-1139448 Active 0740 USA VaNey Facility, Inc. 23-2886199 Active 0743 USA Waste Geneva Landfill, Inc. 34-1802751 Active 0746 USA Waste Industrial Services, Inc. 76-0555049 Active 1023 USA Waste Landfig Operations and Transfer, Inc. 76-0435557 Active 0741 USA Waste- Ma nt Resources, L.L.C. 13-3853086 Active 0749 USA Waste of California, Inc. 68-0306154 Active 0747 USA Waste of DC, Inc. 52-1884250 Active 0750 USA Waste of Ken", L.L.C. 61-1342584 Active 0751 USA Waste of Maryland, Inc. 52-1965713 Active 0754 USA Waste of Minnesota, Inc. 41-1824399 Active 0756 USA Waste of Mississippi, Inc. 64-0806536 Active 0761 USA Waste of New York City, Inc 11-3301809 Active 0766 USA Waste of Pennsylvania, L.L.C. 74-2921886 Active 0769 USA Waste of Texas Landfills, Inc. 76-0322548 Alive 0770 USA Waste of Virginia Landfills, Inc. 58-1932248 Active 0772 USA Waste of Virginia, Inc. 25-1578667 Active 0767 USA Waste San Antonio Landfill, Inc. 91-2155334 Active 0774 USA Waste Services North Carolina Landfills, Inc. 56-1982455 Active 0775 USA Waste Services of Nevada, Inc. 76-0656629 Active 0776 USA Waste Services of NYC, Inc. 1l1-3a01808 Active 0777 USA Waste Services -Hickory Hills, L.L.C. 61-1342594 Active 0737 USA-Crinc, Inc. 04-3299253 Active 0781 JUWS Barre, Inc. 04-3320948 Active 0787 lValley Garbage and Rubbish Company, Inc. 95-2090787 Active 0789 Van Handel Waste, Inc. 39-1575458 Active 0791 Vem's Refuse Service, Inc. 45-0435644 Active 0792 VHG, Inc. UK-0000023 Alive 0993 Vickery Environmental, Inc. 31-1153176 Active 0794 Voyageur Disposal Processing, Inc. 41-1734827 Active 0795 Voyageur Leasing, Inc. 41-1822351 Active 0796 Voyageur Services, Inc. 41-1766783 Active 0797 W/W Risk Management, Inc. 06-1165313 Active 0801 lWarner Company 51-0281233 Active 0802 lWarner Hill Development Company 34-1043478 Active 1 0805 Wasco Landfill, Inc. 68-0236309 Active 0811 Waste Away Group, Inc. 1 63-0898842 Active 0812 Waste Control Systems, Inc. 41-1800466 Active 0742 Waste Management Arizona Landfills, Inc. 86-0683003 Active 1417 Waste Management Austria mbH NA-0000092 Acute 0814 Waste Management Collection and Recycling, Inc. 95-2621587 Active 1418 Waste Management Controladora, S.A. de C.V. NA-0000093 Active 1419 Waste Management de Mexico S.A. de C.V. NA-0000094 Acute 0816 Waste Management Disposal Services of Colorado, Inc. 84-1004487 Active 0817 0818 Waste Management Disposal Services of Maine, Inc. Waste Management Disposal Services of Maryland, Inc. 01-0392888 36-2898301 Active Active 0819 linc. 04-2320990 Active 0820 lWaste Management Disposal Services of Oregon, Inc. 36-3548405 Active 0822 lWaste Management Disposal Services of Pennsylvania, Inc. 23-1665318 Active 0823 lWaste Management Disposal Services of Virginia, Inc. 36-3791008 Active 0824 lWaste Management Disposal Services of Washington,. Inc. 36-3743343 Active 1421 lWaste Ma merit Environmental Services B.V. 98-0356001 Active 0825 lWaste Management Environmental, L.L.C. 36-4290120 Active 0829 lWaste Management Financing Corporation 36-4200855 Active 0831 lWaste Management Holdings, Inc. 36-2660763 Active 0903 lWaste Ma meet Inc. of Florida 59-1094518 Active 1422 lWaste Management International B.V. NA4)000096 Active 1424 lWaste Ma International plc NA-0000097 Active 1425 Waste Management International Services (UK) Limited NA-0000098 Active 1426 Waste Management International Services Ltd. 98-0336025 Active 0832 Waste Management International, Inc. 36-3255004 Active 1423 Waste Management International, Ltd. NA-0000099 Active 0833 Waste Management Municipal Services of California, Inc. 77-0151385 Active 1476 Waste Management National Services, Inc. 764*86861 Acute 1024 Inc. 04-3509618 Active 0834 Waste Management of Alameda County, Inc. 94-0727420 Active 0748 Waste Management of Alaska, Inc. 91-1879241 Active 0835 Waste Management of Arizona, Inc. 86-0.198265 Active 0836 Waste Management of Arkansas, Inc. 04-2814811 Active 0837 Waste Management of California, Inc. 95-1735737 Active 0839 Waste Management of Carolinas, Inc. 56-0731307 Active 0840 lWaste Ma t of Central Florida, Inc. 59-199WO Active 0841 lWaste Ma t of Colorado, Inc. 84-0523684 Active 0843 lWaste Man of Connecticut, Inc. 06-1485581 Active 0844 lWaste Management of Delaware, Inc. 51-0094505 Active 0845 Inc. 37-1035820 Active 0846 Waste Management of Flint, Inc. 91-2155354 Active 0847 Waste Management of Florida Holding Company, Inc. 36-3993947 Active 0848 Waste Management of Georgia, Inc. 36-3319564 Active 1019 Waste Management of Hawaii, Inc. 76-0638599 Active 0852 Waste Management of Idaho, Inc. 82-0364976 Active 0853 Waste Management of Illinois, Inc. 36-2660859 Active 0854 lWaste Management of Indiana Holdings One, Inc. J 36-4039079 Active 0855 Waste Management of Indiana Holdings Two, Inc. 36�059574 Active 0856 Waste Management of Indiana, L.L.C. 36-4071447 Active 0858 Waste Management of Iowa, Inc. 42-0824220 Active 0859 Waste Management of Kansas, Inc. 48-0634806 Active 0860 Waste Management of Kentucky Holdings, Inc. 36-4059575 Active 0861 Waste Management of Ken" L.L.C. 36-4035849 Active 0862 Waste Management of Leon County, Inc. 36-3319565 Active 0863 lWaste Management of Louisiana Holdings One, Inc. 36-4142119 Acute 0865 Waste Man t of Louisiana, L.L.C. 36-4119910 Active 0866 lWaste Management of Maine, Inc. 01-0267739 Active 0W8 lWasW IIA of Maryland, Inc. 52-02504M Active 0869 lWaste Ma t of Massachusetts, Inc. 04-2535063 Active 0544 Waste Management of Metro Atlanta, Inc. 58-1937966 Active 0870 Waste Management of Michigan, Inc. 38-1214786 Active 0871 Waste Ma of Minnesota, Inc. 36-2698820 Acute 0872 Waste Ma t of Mississippi, Inc. 36-3005295 Active 0873 Waste Ma t of Missouri, Inc. 43-0992367 Active 0874 Waste Management of Montana, Inc 36-3564773 Active 0875 lWaste t of Nebraska, Inc. 36-3469702 Active 0758 Waste Management of Nevada, Inc. 88-0394159 Active 0876 Waste Management of New Hampshire, Inc. 04-2482447 Alive 0877 Waste of New Jersey, Inc. 36-37W143 Active 0878 Waste t of New Mexico, Inc. 85-0229020 Active 0879 Waste Management of New York, L.LC. 36-4206797 Active 0880 Waste Ma of North Dakota, Inc. 36-3798294 Active 0763 lWaste t of Ohio, Inc. 25-1673264 Active 0883 lWaste t of Oklahoma, Inc. 734XM5975 Active 0764 lWaste Management of Oregon, Inc. 93-0612655 Active 0885 lWaste Management of Penn Ivania, Inc. 25-1232336 Active 0886 Waste Management of Rhode Island, Inc. 36-3668109 Active 0887 Waste Management of South Carolina, Inc. 36-2945124 Active 08M Waste of South Dakota, Inc. 464)348394 Active 0889 Waste Man t of Texas, Inc. 75-1223528 Active 0718 Waste Ma t of Tunica Landfill, Inc. 644869334 Active 0890 Waste t of Utah, Inc. 874=156 Active 0892 IVVaste of Virginia, Inc. 54-0755417 Active 0806 lWaste of Washington, Inc. 36-3846342 Active 0893 Waste Manageffent of West Virginia, Inc. 36-3553198 Active 0894 Waste t of VVlsconsin, Inc. 39-0957466 Active 0895 Waste t of Wyoming, Inc. 36-3828554 Active 0896 lWaste Management Paper Stock Company, Inc. 36-3726719 Active 0897 Waste Management Partners, Inc. 36-3220911 Active 0898 Waste Management Plastic Products, Inc. 36-3761543 Active 1558 Waste Management Quebec Holdings, Inc. 764)695141 Active 0899 ICalifomia, Inc. 95-2370376 Active 0773 lWaste Management Recycling of New Jersey, Inc. 22-2508079 Active Waste Management Service Center, Inc. Waste Management Services SA Waste Management South America B.V. Waste Management Technob9Y Center, Inc. Waste Management Thailand B.V. Waste Management Transfer of New Jersey, Inc. Waste Management, Inc. Waste Management, Inc. of Tennessee Waste Resource Technologies Waste Resources of Tennessee, Inc. Waste to Energy Holdings, Inc. Waste to Energy1, LLC Waste to Energy 11, LLC Wastech Inc. Webster Parish Landfill, L.L.C. WEST Baltimore Inc. WEST Capital Inc. Peekskill Inc. WEST Westchester Inc. West Essex Disposal Co., Inc. Westchester Resco Associates, L.P. Westchester Waste Services Co., L.L.C. Western One Land Corporation Western U.P. Landfill, Inc. Western Waste Industries Westem Waste of Texas, LLC Wheelabrator Alloy Castings Ltd Wheelabrator Baltimore, L.L.C. Wtteelabrator Baltimore, L.P. Wheelabrator Bridgeport, L.P. VVheelabrafior Carteret Inc. VVheelabrator Cedar Creek Inc.. Wheelabrator Claremont Company, L.P. VVlteelabrator Concord Comps . L. P. Wheelabratior Concord Inc. Wheelab Mtor Connecticut Inc. jWheelabrator Culm Services Inc. m VN�eelabrator Emrironental Systems Inc. Wheelabrator Falls Inc. Wheeiabratior Frackville E Company Inc. Wteelabrator Frackville Properties Inc. lWheelabrator Fuel Services Inc. Wheelabrator Gloucester Company, L.P. Wheelabrator Gloucester Inc. Wheelabrator Guam Inc. lWheelabrator Hudson Energy Company Inc. 76-0659309 NA-0000�01 NA-0000102 36-3519386 98-0204718 22-2564195 73-1309525 36-2935128 94 3115054 54-0838353 7640652923 02-0519035 02-0519036 93-0936732 Active Active Active Active Active Active Active Active Active Active Active Active Active Awe E1431 1432 0901 1441 0779 0902 0904 0905 0906 1035 1036 1037 0908 62-1772690 02-0357495 363861933 02-0363274 02-0360305 ' 22-1844476 02-0367753 13-4064749 764688224 38-3110170 95-1946054 69-0003505 NA-0000157 36�057301 36�057307 36-4057309 ' 3�148540 02�143870 OZ-0390003 02-0394017 OZ-0393450 363908786 02-0442574 02-0412779 04-3024782 02-0393452 04-3100742 02-0442576 02-0396724 02-0391601 36-3926262 04-3048379 Active Active Active Active Active Active Active Active Active Active Active Active Alive Active Active Active Acute Active Active Active Active Active Active Active Active Active Active ActiVe Active Active Active' Active 0912 0913 0914 0915 1WESI 0916 0917 0919 0921 1475 0924 0925 1573 1588 0929 0154 0180 0930 0931 0932 0935 0936 0937 0938 0940 0941 0942 0943 0944 0946 0947 0948 0949 0950 lWheelabrator Land Resources Inc. 04-3036313 Active 0951 lWheelabrator Lassen Inc. 36-3926261 Active 0609 lWheelabrator Lisbon Inc. 61-1167063 Active 0952 Wheelabrator Martell Inc. 36-4051558 Active 0953 Wheelabrator McKay Bay Inc. 36-3240315 Active 0954 Wheelabrator Millbury Inc. 02-0412788 Active 0955 lWheelabrator New Hampshire Inc. 02-0390002 Active 0956 Wheelabrator New Jersey, Inc. 02-0391598 Active 0957 Wheelabrator NHC Inc. 02-0393448 Active 0460 Wheelabrator North Andover Inc. 36-3062971 Active 0958 Wheek&ator North Broward Inc. 04-3030218 Active 0959 Wheelabrator North Shore Inc. 02-0416066 Active 0960 VVheelabrator Norwalk Energy Company Inc. 02-0395269 Active 0961 lWheelabrator Penacook Inc. 02-0393449 Active 0962 IVVheelabrator Pinellas Inc. 36-3110153 Active 0963 lWheelabrator Polk Inc. 36-3820155 Active 0966 lWheelabrator Putnam Inc. 36-3908789 Active 0967 lWheelabrator Ridge Energy Inc. 36-3820153 Active 0968 IVYheelabrator Saugus Inc. 13-2740971 Active 0584 lWheelabrator Saugus, J.V. 04-2530905 Active 0969 lWheelabrator Shasta Energy Company Inc. 02-0395274 Active 0970 lWheelabrator Sherman Station Energy Company, G.P. 02-0390349 Active 0971 lWheelabrator Sherman Station One Inc. 024)390312 Active 0972 lWheelabrator Sherman Station Two Inc. 02-0390311 Active 0973 Wheelabrator Shrewsbury Inc. 02-0416064 Active 0974 Wheelabrator South Broward Inc. 02-0410164 Active 0975 Wheelabrator Spokane Inc. 02-0416522 Active 0977 Wheelabrator Technologies Inc. 22 2678047 Active 0976 Wheelabrator Technologies International, Inc. 364965264 Active 0920 Wheelabrator Westchester, L.P. 02-0367751 Active 0980 White Lake Landfill, Inc. 38,1889893 Active 0985 Williams Landfill, L.L.C. 61-1342579 Active 1556 WM Enefgy Solutions, Inc. 76-0695139 Active 0987 JWM International Holdings, Inc. 76-0607203 Active 1020 WM Landfills of Georgia, Inc. 764)638601 Active 1021 WM Landfills of Michigan, Inc. 76-0638598 Active 0613 WM Landfills of Ohio, Inc. 31-1509696 Active 0647 lWM Landfills of Tennessee, Inc. 62-1462526 Active 1579 WM Mexico Services SA de CV NA-00MI48 Active 0989 WM Partnership Holdings, Inc. 36-3974344 Active 0990 WM Resources, Inc. 25-1536159 Active 1440 WM Services SA NA-0000108 Active 1013 jWM Trading, Inc. 76-0638594 Active 0991 JWM Transportation Services, Inc. 76-0639311 Active 0992 WMI Medical Services of Indiana, Inc. 35-1724992 Active 1 0994 IWMI Mexico Holdings, Inc. 36-3912290 Active 0996 WMNA Container Recycling, Inc. 36-3716971 Active 0997 WMNA Rail -Cycle Sub, Inc. 36-3706246 Active 1575 WMST Illinois, L.L.C. AF-0000034 Active 1576 WMST Nevada, L.L.C. AF-0000035 Active 0928 WTI Air Pollution Control Inc. 36-4110833 Active 1002 WTI International Holdings Inc. 36-3908839 Active 1005 WTI Rust Holdings, Inc. 02-0351425 Active 1006 Wynne's Rubbish & Recycling, Inc. 41-1619393 Active 1007 Yell County Landfill, Inc. 71-0692520 Active ZenWVKremer Material Recovery, Inc. 41-1735813 Active 1008 Zenith/Kremer Waste Systems, Inc. 41-1405460 Active Chubb POWER Federal insurance Company Attn.: Surety Department OF Vigilant Insurance Company 15 Mountain View Road Surety ATTORNEY Pacific Indemnity Company Warren, NJ 07059 Know M by These Prew ts, That FEDERAL INSURANCE COMPANY. an Irda o" poration, VMMT INSURANCE COMPANY. a Now York corporatlon. and PACFIC tNDEMNTY COMPANY, a Wisoorn:in corporation, do each hereby coretihrte and appoint Donald R. Gibson, Robert L. Bruce, Sandra Parker, William Martin, Melissa Haddick and Tannis Mattson of Houston, Texas ------------------------------------------------------------------- ---- each ss #wk true and law kA Atto ney-Ni-Fact to execute under such desigretion in their names and to aft their corporate seals to and deer for and on thek behalf as surety thereon or otlnaMn. bonds and undertakings and other writings obligetwy in the nature thereof (other than baa bonds) given or executed In the course of business, and any iratrurnernts amerndirg or attenirg the same, and co iseMs to fhe modification or alteraW of any kaburrnernt referred to In said bonds or oblgadora. in WKnww Whereof, said FEDERAL INSURANCE COMPANY, VKM ANT INSURANCE COMPANY, and PACFIC INDEMNITY COMPANY have each e oectrted and:attested these prawft and affinad their corporate some on this 14th day of December, 2001 L), - N- 117" - '4-2yz z Is RwwmM C. Wendel, Assistant e.E. Robertson, STATE OF NEW JERSEY 1 Counq d Somerset j on tree 14 th dw d December, 2001 . before nos, a Notary Pubk of Nsw Jersey. pwoonWV eame Kenn@& C. WendW, b nw knows b be Asskntant SewWwy of FEDERAL *WJRANCE COMPANY. VKwANT INSURANCE COMPANY. and PACIFIC INDEMNITY COMPANY. the — w -0 w which sooecubd the kmgoinp Power of Mlornsy. and the said Keoonetb C. Wen" bent by me d* swan. did depose and say that he is Ibskntant Sea slimy of FEDERAL INSURANCE COMPANY, VKW ANT *WJRANCE COMPANY. and PACIFIC INIX3 eTY COMPANY and knows the oa pand seals thereof, that the seals atf , bow foregoing Power d AMomey are each corporate seek and were anereto sffi n by audxxft d the By4Am d said Companies; and that he sipped said Powir, of Attorney as Aa dwd Secntay d said Companies by No art wkr., and that he is acquainted wkh Frank E. Robertson, and knaves him to be Vfo ii of ands eipnturo �(frankE. � � to said Panzer of Mtaney is in aos genuine hndwn'tinp d Fr�k E. IAA . Nokq Pok Site of New Jersey 410-0-aw ra PUBitC � No. 2MI647 E)q*eSOERTFI N Notay PodMic Extract from the By -Laws of FEDERAL INSURANCE COMPANY. VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY. 'Alpo nm of attorney for and on bd of the Comparny may and steal be executed In the nan and on behalf of the Canpeny, eloper by the Chairman or the President ar a Vice President or an Ankft t Vice President. )** with tins Secretary or an Assistant Secretary, under #wk respective desIg netiorns. The signatureof such oAbers may be engraved, printed or Iti-cpaphed. The signature of each of the folowirng dneem Chairman. President, any Vice President, any Assistant Vice Presiders. any Secretary. any Assistant Secretary and the seal of the Company may be eftboed by facelnift to any power of attorney or to any cuffcale relating thereto appoirslrg Assistant Sec reteries or Attomaysdn-Fad for purposes ortfy of execulirg and attesting'bands and undertel irgs and other writings obligatory in the nature tlweof. and any such power of dWmey or cerbiats bewft such facsirrnle sWddt ra or facsimile seat snap be valld and binding upon the Company and any such power so executed and canNitisd by such facsimile signature and f esirrnile seal shah be veld and binding upon the Company with respect to any bond or untderteldrg to which k b attached." 1, Kenneth C. Wendel. Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY (the `Comnpantes) do hereby cw* that (Q the foregoing extract of the By -Lawn of the Corrpernin Is true and correct, (Ii) the Ca rp miss are duly loeraed end aulfnortaed to tiarnsed suety buss nees in al 50 of ft Urxted Stales of America and the District of Cd nft and are sultabed by the U. S. Treseury Depertrnernt; tin 2w, Federal and VVw t are ioanaeA in Puerb Rion and the U. S. Virgin islernrim and Federal k ioer-e n InArnerican Sunnca. Guam, and each of the ProWnces of Canada Prince Edinwd Islar4 and (IQ the foregoing Power of Attorney Is true, correct and in ful force and GMen under rnny hand and seek of said Comnparnies at Warren, NJ this day of �►al�ett► � + e'I'Ew Yoa�` Kemeln C. Wendel. Assistant Secxattery IN THE EVENT YOU WISH TO NOTIFY US OF A CLAIM, VERIFY THE AUTHENTICITY OF THIS BOND OR NOTIFY US OF ANY OTHER MATTER, PLEASE CONTACT US AT ADDRESS LISTED ABOVE, OR BY Telephone (908) 903-3485 Fax (908) 903-3656 e-mail: suretyQchubb.com ts404ns Md. 4-0 CONSEW k WASTE MANAGEMENT 41-575 Eclectic Street Palm Desert, CA 92260 (760)340-2113 (760)340-0417 Fax www.wmdesert.com June 14, 2004 Mr. Jerry Herman Community Development Director City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Re: Updated Performance Bond No. 6224770 Dear Mr. Herman: Please find enclosed an updated Performance Bond as required in the contract for Trash DisposaL This bond will remain in effect until August 1, 2005. If you have any questions, please contact me. Sincerely, Frank Orlett District Manager Enclosure FO/ph •� SAFECO0 CONTINUATION CERTIFICATE SAFECO INSURANCE COMPANY OF AMERICA a certain Bond No. 6224770 dated effective August 12003 (MONTH -DAY -YEAR) on behalf of Waste Management of California, Inc. (PRINCIPAL) and in favor of City of LaQuinta (OBLIGEE) does hereby continue said bond in force for the further period beginning on August 12004 (MONTH -DAY -YEAR) and ending on August 1 2005 (MONTH -DAY -YEAR) Amount of bond $1,000,000.00 Description of bond Trash Disposal Premium: N/A , Surety upon PROVIDED: That this continuation certificate does not create a new obligation and is executed upon the express condition and provision that the Surety's liability under said bond and this and all Continuation Certificates issued in connection therewith shall not be cumulative and that the said Surety's aggregate liability under said bond and this and all such Continuation Certificates on account of all defaults committed during the period (regardless of the number of years) said bond had been and shall be in force, shall not in any event exceed the amount of said bond as hereinbefore set forth. Signed and dated on June 4 2004 (MONTH -DAY -YEAR) SAFECO INSURANCE COMPANY F AMERICA PO Box _526, Stele, WA 9812,(15 6 ATTORNEY MATTSON MARSH USA, INC. Agent 1000 MAIN, SUITE 3000, HOUSTON, TX 77002 Address of Agent 713-276-8528 Telephone Number of Agent SEAL .1953 S-0157/SAEF 01/02 ®A registered trademark of SAFECO Corporation FRP IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of America, First National Insurance Company, American States Insurance Company of American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance". This means that under certain circumstances we may be eligible for reimbursement of certain surety bond losses by the United States government under a formula established by this Act. Under this formula, the United States government pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of all losses to be paid by all insurers for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap. This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes governing the terms of this bond or any generally applicable rules of law. At this time there is no premium charge resulting from this Act. S-6248 2103 '� Cr POWER SAFECO Insurance Company PO Box 34526 i OF ATTORNEY Seattle, WA 98124-1526 No. 5713 KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint **********DONALD R. GIBSON; SANDRA PARKER; wELLIAM L. POWER; MELISSA HADDICK; TANNIS MATTSON; JACQUELINE KIRK; CURTIS WILLEFORD; JOE MARTINEZ; TERRI MORRISON; MARY ANN GARCIA; Houston, Texes************************+****+**+*****+»**sw**sr********+***s**s***s****a *vas***** its true and lawful attomey(s)4ri-fact with full authority to execute on its behaff fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this 7th R.A. PIERSON, SECRETARY CERTIFICATE day of November , 2001 4 �' C;��' 'f" MIKE M GAVICK. PRESIDENT Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeys4n-fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28,1970. "On any certificate executect by the Secretary or an assistant secretary of the Company setting out, (1) The provisions of Article V, Section 13 of the By -Laws, and 01) A copy of the power-of-attomey appointment, executed pursuant thereto, and (111) Certifying that said power-of-attomey appointment is in full force and effect,_ the signature of the certifying officer may be by facsimile, and the seal of the Company may be a.facsimile thereof." I, R.A. Pierson, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -taws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this day of 4'—'ffL&U SEAS, � SEAL S-09741SAEF Vol R.A. PIERSON, SECRETARY ® A registered trademark of SAFECO Corporation 11f7101 PDF ,1 ? WASTE MANAGEMENT 41-575 Eclectic Street Palm Desert, CA 92260 (760)340-2113 (760)340-0417 Fax www.wmdesert.com June 16, 2005 U ! Mr. Torn Genovese �1 City Manager ` City of La Quinta 78-495 Calle Tampico La Quinta, CA '92253 Re: Updated Bond Numbers 6224770 and 6224783 Dear Mr. Genovese: Please find enclosed the updated bond #6224770 for Trash Disposal as well as bond #6224783 for Recycling Services, both required in the contract between the City of La Quinta and Waste Management Inc. These bonds will both remain in effect until August 1, 2006. If you have any questions, please contact me. Sincerely, Frank Orlett District Manager Enclosures FO/ph Gina A. Rodriguez Marsh USA, Inc. 1000 Main MARSH Suite 3000 Houston, Texas 77002 713 276-8661 Fax: 713 276-8538 gina.a.rodriguez@marsh.com June 10, 2005 Porsche Hughes WM of California, Inc. 41-575 Eclectic Street Palm Desert, CA 92260 Subject: City of La Quinta Bond No. 6224770 Dear Porsche: Enclosed please find the renewal for the referenced bond. It is ready for submission to the Obligee. Should you have any questions please do not hesitate to call me. Sincerely, cv Gina A. Rodriguez Client Representative /gar enclosure \\USHOUFPOI \grodri06$\ WORD\ W M FORMS\RENE WAL CO V ER.doc F�l - � SAFECO' CONTINUATION CERTIFICATE SAFECO INSURANCE COMPANY OF AMERICA a certain Bond No. 6224770 dated effective August 1 2003 (MONTH -DAY -YEAR) onbehalfof Waste Management of California, Inc. (PRINCIPAL) and in favor of City LaQuinta (OBLIGEE) does hereby continue said bond in force for the further period beginning on August 1 2005 (MONTH -DAY -YEAR) and ending on August 1 2006 (MONTH -DAY -YEAR) Amount of bond $1,000,000.00 Description of bond Trash Deposit Premium: N/A , Surety upon PROVIDED: That this continuation certificate does not create a new obligation and is executed upon the express condition and provision that the Surety's liability under said bond and this and all Continuation Certificates issued in connection therewith shall not be cumulative and that the said Surety's aggregate liability under said bond and this and all such Continuation Certificates on account of all defaults committed during the period (regardless of the number of years) said bond had been and shall be in force, shall not in any event exceed the amount of said bond as hereinbefore set forth. Signed and dated on June 9 2005 (MONTH -DAY -YEAR) SAFECO INSURANCE COMPANY OF AMERICA PO Box 3415 6, Seattle, WA,98124-1526 r\ TTORNEY-IWFACTI Tdnnis M Marsh USA, Inc. Agent 1000 Main St., Suite #3000, Houston, TX 77002 Address of Agent 713-276-8000 Telephone Number of Agent / O$P0, �G SEAL ey, 195 1 p S-0157/SAEF 01/02 ® A registered trademark of SAFECO Corporation FRP IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of Americas, First National Insurance Company, American States Insurance Company or American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance". This means that under certain circumstances, we may be eligible for reimbursement of certain surety bond losses by the United States government under a formula established by this Act. Under this formula, the United States government pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of all losses to be paid by all insurers for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap. This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes governing the terms of this bond, or any generally applicable rules of law. At this time, there is no premium charge resulting from this Act. A F E C Cr POWER SAFECO Insurance Company PO Box WA 9 � OF ATTORNEY Seattle, WA 8124-1526 No. 5713 KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint **********DONALD R. GIBSON; SANDRA PARKER; WILLIAM L. POWER; MELISSA HADDICK; TANNIS MATTSON; JACQUELINE KIRK; CURTIS WILLEFORD; JOE MARTINEZ; TERRI MORRISON; MARY ANN GARCIA; Houston, Texas*************************************************************************************** its true and lawful attorney(s)-in-fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this 7th R.A. PIERSON, SECRETARY CERTIFICATE day of November 2001 4 �C_ cyl?_, G` MIKE M GAVICK, PRESIDENT Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeys-in-fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (1) The provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of the power-of-attomey appointment, executed pursuant thereto, and (iii) Certifying that said power-of-attomey appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, R.A. Pierson, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation SEAL a� 19513 OP this Q+ �- SEAL x 14 or day of _j �- R.A. PIERSON, SECRETARY 2a�S S-0974/SAEF 2/01 ® A registered trademark of SAFECO Corporation 11/7/01 PDF BE McGRIFF SEIBELS & WILLIAMS OF TEXAS 10375 Richmond Ave., Suite 1700 9 Houston, Texas 77042-4143 9 TEL — (713) 877-8975 * FAX — (713) 877-8974 1111X"WFAW��4"N,' it oo'Q August 12, 2005 Porsche Hughs Waste Management of California, Inc. 41-575 Eclectic Street Palm Desert, CA 92260 RE: Requested Surety Bond Please find enclosed your requested surety bond. Should you have any questions, please feel free to give us a call. Regards, Mary Aln'nVarcia Senior Account Service Representative C\Documents and Settings\mgarcia\My Documents\Bond Cover Lettff.doc Fa SAFECO° State of Texas Surety Bond Claim Notice In accordance with Section 2253.021(f) of the Texas Government Code and Section 53.202(6) of the Texas Property Code, any notice of claim to the named surety under this bond(s) should be sent to: SAFECO Surety Adams Building 4634 154th PL NE Redmond, WA 98052 Mailing Address: SAFECO Surety PO Box 34526 Seattle, WA 98124 Phone: (425) 376-6535 Fax: (425) 376-6533 www.SAFECO.com S-6128/SAEF 8/01 ® A registered trademark of SAFECO Corporation FRP PTgC0 CONTINUATION CERTIFICATE SAFECO INSURANCE COMPANY OF AMERICA a certain Bond No. 6224770 dated effective August 1 2003 (MONTH -DAY -YEAR) on behalf of Waste Management of California, Inc. (PRINCIPAL) and in favor of City of LaQuinta (OBLIGEE) does hereby continue said bond in force for the further period beginning on August 1 2005 (MONTH -DAY -YEAR) and ending on August 1 2006 (MONTH -DAY -YEAR) Amount of bond One Million and NO/100------------------ (1,000,000.00) Description of bond Trash Disposal Washington , Surety upon PROVIDED: That this continuation certificate does not create a new obligation and is executed upon the express condition and provision that the Surety's liability under said bond and this and all Continuation Certificates issued in connection therewith shall not be cumulative and that the said Surety's aggregate liability under said bond and this and all such Continuation Certificates on account of all defaults committed during the period (regardless of the number of years) said bond had been and shall be in force, shall not in any event exceed the amount of said bond as hereinbefore set forth. Signed and dated on August 12 2005 (MONTH -DAY -YEAR) SAFECO INSURANCE COMPANY OF AMERICA McGriff, Seibels & Williams of Texas, Inc. Agent Pr - SEAL 10375 Richmond Ave., Suite 1700, Houston, Texas 77042-4143 Address of Agent (713) 877-8975 Telephone Number of Agent S-0157/SA 06/04 OdICUL W anU LIIV Q01 FRP EXHIBIT B IMPORTANT NOTICE TO SURETY BOND CUSTOMERS REGARDING THE TERRORISM RISK INSURANCE ACT OF 2002 As a surety bond customer of one of the SAFECO insurance companies (SAFECO Insurance Company of America, General Insurance Company of America, First National Insurance Company, American States Insur- ance Company or American Economy Insurance Company), it is our duty to notify you that the Terrorism Risk Insurance Act of 2002 extends to "surety insurance". This means that under certain circumstances we may be eligible for reimbursement of certain surety bond losses by the United States government under a formula established by this Act. Under this formula, the United States government pays 90% of losses caused by certified acts of terrorism that exceed a statutorily established deductible to be paid by the insurance company providing the bond. The Act also establishes a $100 billion cap for the total of all losses to be paid by all insurers for certified acts of terrorism. Losses on some or all of your bonds may be subject to this cap. This notice does not modify any of the existing terms and conditions of this bond, the underlying agreement guaranteed by this bond, any statutes governing the terms of this bond or any generally applicable rules of law. At this time there is no premium change resulting from this Act. IZAMR 2/03 Safeco Insurance Companies POWER PO Box 34526 OF ATTORNEY Seattle, WA 98124-1526 No. 10104 KNOW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint ****************************MARC W. BOOTS; MARY ANN GARCIA; JOY HAJOVSKY; LESLIE K. HUDGENS; BEVERLY A. IRELAND; VICKIE LACY; MISTY MEEHAN; P. T. OSBURN; STEPHEN R. SMITH; AMY SUSTAIRE; Houston, Texas; SUSAN SHOEMAKE; San Antonio, Texas*************** its true and lawful attorney(s)-in-fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents A this 3rd day of August 2005 �✓4ru, �ofec1t__z STEPHANIE DALEY-WATSON, SECRETARY MIKE PETERS, PRESIDENT, SURETY CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of the power -of -attorney appointment, executed pursuant thereto, and (iii) Certifying that said power-of-attomey appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, Stephanie Daley -Watson, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation S-0974/DS 4/05 this day of ZLJ,, I )%Sr A L � %Wlot%anrue,t' STEPHANIE DALEY-WATSON, SECRETARY Safeco and the Safeco logo are registered trademarks of Safeco Corporation. WEB PDF CITY OF LA QUINTA SCOPE OF WORK FOR ASSIGNMENT REVIEW Background The City of La Quinta (City) contracts with Waste Management of the Desert (WM) for exclusive residential and commercial solid waste services. The existing contract expires on July 30, 2008. WM has notified the City that it intends to assign the La Quinta contract and other operations of Waste Management of the Desert to Burrtec Waste Industries, Inc. Article VIII of the City's agreement with WM describes the assignment provision. The City "may deny or approve such request in its complete discretion." As described in that section, in response to a request for an assignment: a) The company shall pay the City its reasonable expenses to investigate the suitability of the proposed assignee; b) The company shall furnish the City with audited financial statements of the proposed assignee's operations for the past three years; c) The company shall furnish the City with satisfactory. proof that it has the experience and regulatory track record required by Section 8.1(C) of the agreement. The City has requested Hilton, Farnkopf & Hobson, LLC (HF&H) to assist in its review of the proposed assignment. Study Objective The objective of our study is to review the information to be provided by WM and its proposed assignee as required by Section 8.1 of the agreement, and to report to the City on the qualifications and financial resources of the proposed assignee to take over the Palm Desert operations. Scope of Work Our scope of work shall consist of the following tasks: 1) Preparing a request for information to be sent to WM on City letterhead identifying the information required to review the proposed assignment. 3/6/2006 Page 1 City of La Quinta We anticipate that this request will include information about both WM and the proposed assignee. 2) Reviewing relevant sections of the existing franchise agreement, and reports submitted by WM to the City documenting the scope of the current operations in the City. 3) Reviewing the information provided by WM, the proposed assignee and the City. 4) Calculating financial ratios based on the financial statements provided by WM and the assignee in order to compare the financial resources of the two companies. 5) Asking follow-up questions of WM and the proposed assignee to clarify any unclear or missing information. 6) Contacting a sample of other jurisdictions that contract with the proposed assignee in Southern California as references. 7) Preparing a brief report describing the results of our review. We anticipate that this report will include: ■ A summary of the experience and operating history of the proposed assignee. • The financial resources of the proposed assignee compared to WM. ■ A comparison of the La Quinta contract revenues to the assignee's overall operations. • The results of reference checks of the proposed assignee. ■ General areas of the franchise agreement that might be updated to help the City effectively monitor the contractor's performance in the future. ■ Whether the assignee maintains the level of insurance coverage required under the agreement. 8) Meeting once with City staff or other City officials to discuss the report. UrnitatinnS WM, its proposed assignee, and the City must provide all of the required information in the format requested in order for us to perform the scope of work. The scope of work does not include negotiating or preparing language to amend the existing agreement, or preparing staff reports to present the proposed assignment to the City Council. 3/ 6/ 2006 Page 2 City of La Quinta Project Costs We will perform the scope of work described above for a fixed fee of $20,000. The fixed fee includes preparing the request for information, reviewing the submitted information, performing the financial statement analysis, performing the reference checks, preparing the report and revising it once, and attending one meeting. We will bill the City $15,000 upon submittal of the draft report and $5,000 upon submittal of the final report. If we are requested to perform any additional activities that are not described in the scope of work (such as attending additional meetings, or modifying/negotiating changes to the existing waste hauling agreement) we will provide the requested services for an additional fee based on time and materials. Hourly rates for our consultants for additional work are as follows: Senior Vice President $220 Senior Manager $185 Senior Associate $175 Associate $115 Expenses for additional work will be billed as follows: Mileage: , In-house document reproduction: Postage/ overnight mail/ other Schedule $0.445 per mile (or as adjusted by IRS) $0.15 per page Actual We will prepare the request for information after receipt of written authorization to proceed. We anticipate it will take approximately 30 to 45 days from receipt of all requested information from the contractor to complete the review. AGREED TO AND ACCEPTED BY: Thomas P. Genovese, City Manager CITY OF LA QU I NTA, CA Page 3 City of La Quinta Date: April 5, 2006