Waste Mgmt/Recycling 96AGREEMENT
FOR THE COLLECTION AND RECYCLING
OF RECYCLABLE MATERIALS
BETWEEN
THE CITY OF LA QUINTA
AND
WASTE MANAGEMENT OF CALIFORNIA, INC.
July 14, 1996
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Table of Contents
ARTICLE I TERM....................................................1
Section1.1 Term......................................................1
ARTICLE II SCOPE OF WORK .......................................... 1
Section 2.1 Recyclable Materials ......................................... 1
Section 2.2 Household Hazardous Wastes .................................. 2
Section 2.3 Advisory Obligations of Contractor .............................. 2
Section 2.4 Recycling Programs at Special Events ........................... 3
Section 2.5 Funds Held in Trust for City ................................... 3
ARTICLE III EQUIPMENT AND PERSONNEL .............................. 4
Section 3.1 Collection Vehicles .......................................... 4
Section 3.2 Containers ................................................. 4
Section 3.3 Employees ................................................. 5
Section 3.4 Recycling Coordinator ........................................ 6
ARTICLE IV
SUPERVISION ............................................. 6
Section
4.1
Authority of City ............................................ 6
Section
4.2
Public/Customer Service and Accessibility ........................ 6
Section
4.3
Complaints ................................................. 8
Section
4.4
Customer Information and Public Education ....................... 8
ARTICLE V INSURANCE .............................................. 10
Section 5.1 General Liability Insurance ................................... 10
Section 5.2 Worker's Compensation and Employer's Liability Insurance ......... 11
Section 5.3 Notice to City, Evidence of Insurance ........................... 12
ARTICLE VI PERFORMANCE BOND .................................... 12
Section 6.1 Performance Bond .......................................... 12
ARTICLE VII REPORTS ................................................ 13
Section 7.1 Records and Reports; Recycling Operations ...................... 13
Section 7.2 Inspection by City .......................................... 14
Section 7.3 Maintenance of Financial Records .............................. 14
ARTICLE VIII ASSIGNMENT AND SUBCONTRACTING ..................... 15
Section 8.1 Assignment and Subcontracting ............................... 15
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ARTICLE IX BREACH, DEFAULT AND TERMINATION .................... 15
Section 9.1 Breach, Default and Termination ............................... 15
ARTICLE X INDEMNITY .............................................. 16
Section 10.1 Indemnification ............................................ 16
Section 10.2 Hazardous Substances and CERCLA Indemnification .............. 17
Section 10.3 AB 939 Indemnification ..................................... 18
ARTICLE XI COMPLIANCE WITH ALL LAWS ............................ 18
Section 11.1 Compliance with All Laws ................................... 18
ARTICLE XII TAXES...................................................19
Section 12.1 Taxes....................................................19
ARTICLE XIII AUTHORIZED RECYCLING AGENT ......................... 19
Section 13.1 Authorization .............................................. 19
Section 13.2 Exclusive Contract; Limitation on Responsibility of City ............ 19
ARTICLE XIV SALE OR DISPOSITION OF RECYCLABLE MATERIALS ....... 20
Section 14.1 Sale or Disposition of Recyclable Materials ....................... 20
ARTICLE XV COMPENSATION TO CONTRACTOR ........................ 21
Section 15.1 Compensation ............................................ 21
Section 15.2 Collection of Recyclable Materials for Commercial, Industrial or
Institutional Waste Generators Participating in Contractor's Recycling
Program..................................................22
ARTICLE XVI HOLIDAYS ............................................... 22
Section 16.1 Holidays .................................................. 22
ARTICLE XVII OBLIGATIONS OF CITY ................................... 22
Section 17.1 Obligations of City .......................................... 22
ARTICLE XVIII
Section 18.1
Section 18.2
Section 18.3
Section 18.4
Section 18.5
Section 18.6
Section 18.7
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GENERAL PROVISIONS ................................... 22
Definitions................................................22
Right of the City to Make Changes ............................. 25
Contractor's Status .......................................... 26
Force Majeure.............................................26
Failure to Perform .......................................... 26
Rights, Remedies and Benefits Cumulative ....................... 27
Waivers..................................................27
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Section 18.8 Approval by City ........................................... 27
Section 18.9 Notices ................................................... 27
Section 18.10 Arbitration ................................................ 28
Section 18.11 Legal Jurisdiction ........................................... 28
Section 18.12 Paragraph Headings ......................................... 28
Section 18.13 Entire Agreement ........................................... 28
Section 18.14 Subcontracting ............................................. 29
Section 18.15 Change of Ownership ....................................... 29
Section 18.16 Contractor's Employee Relations ............................... 29
Section 18.17 Bankruptcy................................................29
Section 18.18 Invalid Provisions .......................................... 29
Section 18.19 Waiver of Performance ...................................... 30
Section 18.20 Warranty ................................................. 30
Section18.21 Exhibits..................................................30
Section 18.22 Guaranty by Waste Management, Inc ............................ 30
ARTICLE XIX OTHER OPERATIONAL REQUIREMENTS .................... 30
Section 19.1 Rules and Regulations Governing Recyclable Materials ............. 30
Section 19.2 Air Quality; Alternative Fuel Vehicles ........................... 30
Section 19.3 Cooperation with Subsequent Providers ......................... 31
Section 19.4 Indemnification Regarding Lawsuits Challenging This Agreement .... 31
EXHIBITS
Exhibit A SCOPE OF SERVICES
Exhibit B REFUSE COLLECTION RATE
AND DISPOSAL CHARGE
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THE CITY OF LA QUINTA
AGREEMENT FOR THE COLLECTION AND RECYCLING
OF RECYCLABLE MATERIALS
THIS AGREEMENT is made and entered into as of thez;Wld day of J-t� I � ,
1996, 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 Agreement shall commence July 31, 1996 and shall end July 30, 2001,
unless earlier terminated as provided herein.
ARTICLE II
SCOPE OF WORK
Section 2.1 Recyclable Materials
Contractor shall collect and process Recyclable Materials from all participating
Residential, Commercial, Industrial and Institutional Premises located within and under the
jurisdiction of the City, in accordance with the requirements set forth in this Agreement. 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 conformance with Exhibit A
and 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 recycling services at all times.
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Section 2.2 Household Hazardous Wastes
A. General
Contractor shall be responsible to act as an agent for City to arrange for household
hazardous waste in the circumstances and to the extent provided in Section 2.4, Hazardous Waste
Obligations of Contractor, of the Agreement for the collection Transportation and Disposal of
Municipal Solid Waste of even date herewith, which Section 2.4 is incorporated herein by
reference.
B. Additional Obli atg ions
1. Publicity for Used Motor Oil Recycling. Contractor shall publicize the
curbside collection of used motor oil from Residential Premises and the collection program
available at the Recycle America buy-back center where used motor oil shall be redeemed for
value, through various techniques, including but not limited to:
a. Notice on customer's bill or an insert stuffed in envelope with bill;
b. Press releases and public service announcements;
C. Paid advertising, except billboard displays;
d. Submitting article for inclusion in City's newsletter;
e. Posting of notices in public areas of Contractor's facilities, such as
Recycle America buy-back center;
£ Distribution of informational flyers to general public at appropriate
events and through the mail upon request; and
g. Other methods as specified in Section 4.4 of this Agreement.
2. ,Special Events. Contractor shall cooperate in publicizing or otherwise
appropriately participating in regional used motor oil collection or promotional events.
Contractor's participation may include hosting a table and distributing educational materials,
paying for advertising, or otherwise participating in the events.
Section 2.3 Advisory Obligations of Contractor
Contractor shall provide, at no cost, supportive services to City, Residential, Commercial,
Industrial and Institutional Premises occupied by Waste Generators and potential Waste
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Generators or their agents by providing the following:
A. General consultative services on matters related to waste prevention, recycling
and composting.
B. Technical assistance services, such as the review of site plans, detailed drawings
of enclosures for recycling bins or dumpsters and estimated volume and character of Recyclable
Materials expected to be generated and/or recovered on a case -by -case basis, as may be required
by the Municipal Code or conditions of approval for issuance of a development plan 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 Commissions, City staff, the Coachella Valley Association of
Governments, the Local Task Force, etc. Such attendance shall be coordinated by both parties to
this Agreement.
Section 2.4 Recycling Programs at Special Events
From time to time, the City may require applicants for permits for special events to
implement a recycling program to divert MSW generated at the event from the landfill. Special
events occurring in the City on a regular basis include the tennis and golf tournaments,
conferences, conventions, art shows, concerts and cultural events. At the request of City,
Contractor shall assist the special event coordinator(s) in designing and implementing a recycling
program for their special event. Reimbursement to Contractor shall be agreed upon by City and
the permit applicant prior to Contractor commencing work on design and implementation of said
special event recycling programs.
Section 2.5 Funds Held in Trust for City
In the event that Contractor receives funds, on behalf of City, from ratepayers, the
Department of Conservation, the Integrated Waste Management Board, or any other entity,
Contractor shall hold said funds in trust for City, indicating on the trust account that City is the
owner of said funds and the purpose for which the funds were received. Contractor shall notify
City of receipt of such funds within thirty (30) days of receipt. Contractor shall provide City
with a quarterly financial status report of the tenth (1 Oth) day of April, July, October and January
of each year. The status report shall contain the following information: (1) last balance forward
in the account(s), (2) additional revenue received, by source(s), (3) expenditures made (if any)
including type, amount and recipient of funds, and (4) ending balance in the account(s).
Contractor shall not expend funds in this trust account without prior written approval by the City.
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ARTICLE III
EQUIPMENT AND PERSONNEL
Section 3.1 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 Recyclable Material shall
be spilled in streets or alleys. Should any Recyclable Material be spilled on any street, alley or
elsewhere, it shall immediately be cleaned up. A broom, shovel and oil absorbent material 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.
All vehicles and equipment used in the collection of Recyclable Materials, 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 trucks shall be metal and shall be so constructed that no Recyclable Materials
shall be spilled from said trucks 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.
Section 3.2 Containers
A. Existing Recycling Containers. The parties acknowledge that Contractor
has distributed recycling containers to participating Waste Generators as follows:
1. Residential (Curbside): Three rigid plastic, stackable crates to each
participating residence, one to be used for glass and plastic bottles, one for metal cans, and one
for newspaper.
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2. Residential (Multi -Unit or Centralized Recycling.): At least one
recycling bin or dumpster, specifically designed to reduce theft and material contamination, to
each multi -family residential development or development with centralized recycling.
3. Commercial. Industrial or Institutional: At least one bin or
dumpster for each type of Recyclable Material generated for each Premises whose
owner/occupant has elected to participate, the size of each bin coordinated with the amount of
Recyclable Materials generated, and the storage space available. The containers and bins are and
will remain the property of Contractor, who is responsible for maintaining them in proper
condition.
B. Recycling Containers. Contractor shall continue the current three box
system for recyclables which shall include a box for newspapers, cans and all other recyclable
materials including glass, plastic, metals, aerosol cans, supermix, telephone books, and cardboard
to the residential curbside collection program.
Contractor shall promptly replace lost, stolen or damaged stacking crates, box
sets, and recycling bins and dumpsters upon notification by residents, businesses, institutions or
the City, at no additional charge to City, the resident, institutional or business.
C. New Wheeled Carts. At resident's request, Contractor shall provide, at its
sole expense, up to 100 metal wheeled carts for use by City residents in moving their three
stacking recycling crates or their boxes to and from the curb on recycling collection day.
Contractor shall describe the availability of the wheeled carts in public education materials
prepared in accordance with Section 4.4 of this Agreement.
Residents may either pick up a wheeled cart at Contractor's offices during normal
business hours or telephone Contractor's office and request delivery of a wheeled cart.
Contractor shall deliver wheeled carts on a once per month basis to all residents that requested a
cart during the prior month.
Contractor shall make a monthly report to City on the number of wheeled carts
requested by, and delivered to, City residents, together with a list of the last name and address of
each resident receiving a cart.
Section 3.3 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.
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All of Contractor's employees, while collecting Recyclable Materials, 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.
Section 3.4 Recycling Coordinator
Contractor shall provide one full time employee dedicated to planning, promoting, and
implementing new and existing recycling and source reduction programs in the Coachella
Valley. The Coordinator's time shall be directed toward activities agreed to by the cities with
which Contractor holds recycling collection contracts or franchises in the Coachella Valley.
Examples of programs which may be planned, publicized and implemented by the Coordinator
include school recycling and education programs, expanded curbside recycling programs,
holiday greenery programs, etc.
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. 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 4.2 Public/Customer Service and Accessibility
A. Office: Contractor shall maintain a business office within a ten (10) mile
distance from the intersection of Highway 111 and Washington 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.
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C. Availability of Local Representative: Contractor shall designate one
person to serve as its representative to the City on all matters related to recycling. He or she shall
be a full-time employee who will serve as local recycling manager, responsible for supervising
and coordinating all recycling programs. 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.
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.
E. BuX Back Recycling_ Center: Contractor currently operates a state -
certified buy back/drop off recycling center where Recyclable Materials may be dropped off
and/or sold by City residents, businesses and institutions. Contractor shall continue to operate
the center at a location that is within ten (10) miles from the intersection of Highway 111 and
Washington. Contractor shall operate and maintain the center in a safe, aesthetically pleasing
and efficient manner.
F. Green Waste ProcessingFacility: At all times that a fully permitted Green
Waste Processing facility is operating in the Coachella Valley and accepting Green Waste From
the La Quinta area, Contractor shall:
(1) Provide free drop off of Green Waste to La Quinta residents, who
show proper identification, at Contractor's Recycle America facility located in Palm Desert.
Green Waste dropped off by La Quinta residents shall be transported by Contractor to the Green
Waste processing facility, and Contractor shall pay all tipping fees at the facility.
(2) Establish a price that shall be posted at the Contractor's Recycle
America facility for which landscapers, commercial, industrial and institutional customers may
deliver Green Waste generated in the City to Contractor. Said price shall be based on the cost of
handling and transporting the Green Waste to the Green Waste processing facility and paying all
tipping fees at said facility. Contractor shall accept all Green Waste delivered by landscapers,
commercial, industrial and institutional customers to Contractor's Recycle America facility for
the posted price.
(3) Provide bins or roll off containers for Green Waste, and Green
Waste collection services to commercial, industrial and institutional customers. The fee to be
charged for this service shall be the sum of (a) the appropriate Collection Rate then in effect as
shown in Exhibit B plus the tipping fee at the Green Waste processing facility. In no event shall
the fee charged for providing Green Waste containers and delivery of the collected Green Waste
to the Green Waste processing facility exceed the applicable Collection Rate plus the Disposal
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Charge then in effect.
Section 4.3 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 4.4 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. Cost. With the exception of brochures and mailers related to green waste
pick up (specified in Exhibit A, Section B2), all customer information brochures and mailers
shall be paid by Contractor up to a maximum amount of Twenty Thousand Dollars ($20,000)
after which time Contractor and City shall share the cost equally for additional material,
production and/or distribution.
C. Customer Information Packet. Pursuant to the Plan, Contractor shall
provide to City a professionally designed and prepared draft of an information packet that shall
describe the curbside recycling program, multi -family recycling program, commercial, industrial
and institutional recycling program and the used motor oil recycling program. Said information
packet shall list and describe new Recyclable Materials being added to the program, including
junk mail, magazines, catalogs, telephone books, holiday greenery, aerosol cans and corrugated
cardboard, as well as those materials already collected (newspaper, glass, aluminum cans, steel
cans, plastic and used motor oil).
A letter from the Mayor and City Council urging residents and
businesses to participate;
2. A brochure or pamphlet detailing types of containers available,
preparation and storage of materials, collection days and times, and other information; and
3. A prominently displayed telephone number to call for assistance or
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register a complaint.
The language of the packet shall be prepared with sensitivity toward the
demographic characteristics of the community, including age and educational background.
Graphics selected for the packet shall be well -designed and tasteful. City's "Resort to Recycling"
logo shall be included as a graphic element on all packet materials. Final printing shall be done
using paper with a minimum of fifty percent (50%) post -consumer content.
City shall provide Contractor with comments and edits. Once finalized and
printed for distribution, Contractor shall distribute, by a method approved in advance by City, the
packet to each Residential, Commercial, Industrial and Institutional Premises in the City within
forty-five (45) days of Contractor's receipt of City's comments and edits. Contractor shall mail
(first class) a packet to the holder of each new account (residential, commercial and roll -off)
commencing MSW collection service during the Term. Contract shall inquire by first class mail
regarding the desire of any Person re -starting an account as to receipt of the packet.
D. Public Education Booklet with Inserts
Pursuant to the Plan, Contractor shall develop and have professionally designed
and prepared an information booklet with supplemental inserts, suitable for use by the general
public, businesses and institutions of the community, on topics including Green Waste and
composting; waste prevention; recycling for the home; the "weekender" recycles; recycling at the
office; recycling at school; recycling at a retain business; recycling for the holidays (holiday
greenery, greeting cards, wrapping paper); recycling appliances; costs to recycle and benefits of
recycling; etc. By April 1, 1997, Contractor shall submit a draft to City. City's "Resort to
Recycling" logo shall be included as a graphic element on all materials, including inserts. Final
printing shall be done using paper with a minimum of fifty percent (50%) post -consumer content.
City shall provide Contractor with comments and edits. Once finalized, Contractor and City
shall agree on the Persons to receive booklets, method of distribution and quantity needed.
Within thirty (30) days thereafter, Contractor shall print and distribute the booklets by
Contractor.
E. Consumer Information and Public Education Activities and Miscellaneous
Products
1. Meetinas 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.
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2. Special Events and Festivities. Contractor shall participate in community -
sponsored events and festivities as deemed appropriate by City and Contractor. Such events
include Spring Festival in Whitewater Park, 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. Tours of Contractor's Facilities. Contractor shall, on an occasional basis
and by advance appointment, conduct tours of Recycle America and other adjacent facilities,
without charge to either City or visitors. Such tours shall be subject to the regulation and
convenience of Contractor.
4. City Hall "Resort to Recycling" Event. Contractor shall, at request of
City, assist City in planning for the organizing an annual event for City Hall employees to
provide reinforcement for the City's recycling efforts at public facilities. Contractor's obligations
may include, but are not limited to, attending organizational and planning meetings, making
telephone calls, ordering supplies, reproducing handouts, arranging activities with local vendors,
preparing press releases and attending the annual event to interact with City Hall employees.
5. Community Resource. Contractor may, from time to time, be contacted
by members of the general public, residents, representatives or agents of businesses, industries or
institutions, private or public schools, homeowners' associations, business organizations and the
like, 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) written materials.
F. Public Education and Outreach Efforts on Behalf of Multiple Jurisdictions
City reserves the right to participate in a coordinated effort by those other
jurisdictions utilizing the services of Contractor, either by contract or franchise, in order to
produce a more effective public education and outreach campaign through a planned and focused
approach. Such an effort on the part of such jurisdictions, currently underway, is expected to
conclude in early 1996. At that time, City's direction to Contractor may be modified with regard
to this Section 4.04. Contractor shall cooperate and assist in such an approach.
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.
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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
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. 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."
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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, Post Office Box
1504, 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.
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.
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ARTICLE VI
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: Recycling Operations
Contractor shall file with the City written reports of Contractor's performance.
Contractor shall submit to the City the following reports, on forms approved by the City,
during the term of this Agreement.
1. Monthly Project Reports. Within fifteen (15) working days after the last day of
each month, Contractor shall submit a monthly project report to include at least all of the
following:
a. Summaries of tonnages of, and total value received for, all Recyclable
Materials collected and received at buy-back center, by material.
b. Summaries of tonnages of all Recyclable Materials sold, by material.
C. Market prices for all Recyclable Materials collected from curbside and
sold by Contractor. The weight receipts and sales receipts shall be
available for inspection by the City or the City's agent upon request.
d. Resident participation rates, by route, in terms of weekly set -out counts (1,
2, or all 3 crates constitutes one set -out).
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e. A summary of missed pickups and crate or box replacement, by route, an
explanation of noteworthy experiences, and a summary of telephone calls
received by category, including inquiries about the program, missed
pickups, and container replacement.
£ Presentations or contacts made during the prior month to homeowner
associations.
g. Cost breakdown ("Income Statements" and "Recycling Expenses") in the
form currently used or as they may be modified by City for operation of
the curbside recycling program for the prior month.
2. Yearly Project Status Reports. Within sixty (60) working days from the end of
each calendar year, Contractor shall submit a yearly project status report to include at least all of
the following:
a. Summary of all revenues and tonnages recovered by material, and
participation rates.
b. Overall assessment of operational performance during the year.
C. Detailed data to allow analysis of collection and processing equipment
handling capabilities.
d. Discussion of problems and noteworthy experiences in program operation.
3. Reports. All reports for curbside, multifamily, commercial recycling, as well as
other programs mutually agreed on by both parties, shall be sent to:
City Manager
City of La Quinta
Post Office Box 1504
78-495 Calle Tampico
La Quinta, CA 92253
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
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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
Within ninety (90) days after the close of each calendar year, Contractor shall deliver to
the City, as a supplemental report to its audited financial statement submitted pursuant to and
under the same terms as Section 7.3 of the Solid Waste Collection and Disposal Agreement, a
report showing the following information about the recycling operations conducted pursuant to
this Agreement:
(a) costs directly attributable to performance of residential curbside, commercial,
industrial and institutional recycling operation sunder this Agreement;
(b) costs allocated between Contractor's operations under the Solid Waste Collection
and Disposal Agreement and this Agreement and the bases for such allocations;
(c) the quantity, in Tons, of Recyclable Materials sold during the calendar year by
type and grade of material and the total revenue received from such sales;
(d) the amount, in Tons, of Recyclable Materials given away without charge to third
parties for reuse or for which a disposition cost or landfill tipping fee was paid,
and the total amount, if any, paid out;
(e) list of businesses, industries and institutions that participate in recycling programs
and the types of materials each recycles.
The supplemental report shall be prepared by Contractor and shall be accompanied by the
opinion of the certified public accountant to the effect that the information in the report has been
subjected to the auditing procedures applied in the audit of Contractor's basic financial
statements and in its opinion is fairly stated in all material respects.
ARTICLE VIII
ASSIGNMENT AND SUBCONTRACTING
Section 8.1 Assignment and Subcontracting
The Contractor may not assign its rights nor delegate or otherwise transfer its obligations
under this Agreement to any other Person without the prior written consent of the City. Any
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such assignment made without the City's consent shall be void and the attempted assignment
shall constitute a material breach of this Agreement. Notwithstanding the foregoing, the
Contractor may assign this Agreement to another California corporation which is also a wholly -
owned subsidiary of the Contractor's parent company, Waste Management, Inc., provided that
the assignee corporation assumes in writing the Contractor's obligations under this Agreement
and has a financial condition at least equal to that of the Contractor.
No subcontractor shall be engaged without the prior written approval of the City. In the
event the City does authorize the Contractor to engage a subcontractor to perform any of the
services herein, the Contractor shall remain directly responsible for the performance of the
Agreement.
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
Disposal of Municipal Solid Waste 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 18.5.
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 shall indemnify, defend with counsel approved by City and hold harmless the
City, its officers, employees and agents, assigns and volunteers (collectively, "indemnities"),
from and against any and all loss, liability, penalty, fine, forfeiture, claim, demand, action,
proceeding or suit, of any and every kind and description, whether judicial, quasi-judicial,
legislative or administrative in nature including, but not limited to, injury to and death of any
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person and damage to property or for contribution or indemnity claimed by third parties
(collectively, the "Claims"), arising out of or occasioned in any way by, directly or indirectly, (1)
the negligence or willful misconduct of Contractor, its officers, employees, agents, affiliates
and/or subcontractors in performing services under this Agreement; (2) the failure of Contractor,
its officers, employees, agents, affiliates and/or subcontractors to comply in all respects with the
provisions of this Agreement, applicable laws (including, without limitation, the Environmental
Laws) and regulations, and/or applicable permits and licenses; and/or (3) the acts of Contractor,
its officers, employees, agents, affiliates and/or subcontractors in performing services under this
Agreement for which strict liability is imposed by law (including, without limitation, the
Environmental Laws). The foregoing indemnity shall apply regardless of whether such loss,
liability, penalty, forfeiture, claim, demand, action, proceeding, suit, injury, death or damage is
also caused in part by the negligence of others, including that of any of the indemnities;
provided, however, that this indemnity does not extend to Claims to the extent that they are
caused solely by the active negligence of the City, its officers, employees or agents, or that they
are caused by the intentional misconduct of or breach of contract by the City, its officers,
employees or agents.
Upon the occurrence of any Claim, Contractor, at Contractor's sole cost and expense,
shall defend the City, its officers, employees, and agents, 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 and CERCLA Indemnification
Contractor shall indemnify, defend with counsel approved by City, protect and hold
harmless City, its officers, employees, agents, assigns, volunteers and any successor or
successors to City's interest (collectively, "indemnities") from and against all claims, actual
damages (including but not limited to special and consequential damages), natural resources
damages, punitive damages, injuries, costs, response remediation and removal costs, losses,
demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings,
interest, fines, charges, penalties, and expenses (including but not limited to attorneys' and expert
witness fees and costs incurred in connection with defending against any of the foregoing or in
enforcing this indemnity) of any kind whatsoever paid (collectively, "Claims"), incurred or
suffered by, or asserted against, City or its officers, employees, agents, or Contractors arising
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from or attributable to any pickup, repair, cleanup, or detoxification, or preparation and
implementation of any removal, remedial, response, closure or other plan (regardless of whether
or not undertaken due to governmental action) concerning any hazardous substances or
hazardous wastes including the release of such substances or wastes at any place where
Contractor stores or disposes of Municipal Solid Waste pursuant to this Agreement, provided
that this indemnity does not extend to Claims to the extent that they are caused solely by the
negligence or willful misconduct or breach of this Agreement by an indemnitee. The indemnity
provided in this section shall apply to Claims arising from acts or omissions of Contractor which
occur during the Term or which occurred prior to the commencement of the Term but after May
1, 1982, the date Contractor first began collection and disposal of MSW in the City. The
indemnity provided in this section shall not apply to Claims which arise from the disposal, prior
to or during the Term, of MSW by Contractor at a Disposal Site(s) which is/are not owned or
operated by Contractor or by an entity controlled by Contractor's parent company, Waste
Management, Inc. The foregoing indemnity is intended to operate as an agreement pursuant to
Section 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act,
("CERCLA"), 42 U.S.C. Section 9607(e) and California Health and Safety Code Section 25364,
to insure, protect, hold harmless, and indemnify City from all liability. The indemnity provided
in this Section 10.2 is separate from and supplementary to that provided in Section 10.1.
Notwithstanding the above, the Contractor shall in no event be obligated to provide more than a
maximum amount of One Million Dollars ($1,000,000) pursuant to the terms of this paragraph.
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;
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(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 20.02, (b) actions or omissions of a successor contractor so long as City is
attaining the diversion requirement during the portion of the calendar year (2000) prior to the
expiration of the Term, 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.
ARTICLE XI
COMPLIANCE WITH ALL LAWS
Section 11.1 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 Recyclable Materials may be hauled
governing the collection and hauling of Recyclable Materials.
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.
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ARTICLE XIII
AUTHORIZED RECYCLING AGENT
Section 13.1 Authorization
It is the intent of the City through this Agreement to appoint Contractor as its authorized
recycling agent pursuant to Public Resources Code Section 40105. As such, Contractor is
entitled to prosecute actions for damages or civil penalties pursuant to Public Resources Code
Section 41953, for unauthorized removal of Recyclable Materials placed for collection in the
residential curbside program, in violation of Public Resources Code Section 41950.
Section 13.2 Exclusive Contract: Limitation on Responsibility of City
A. Residential Premises
The City will not, during the Term, enter into a contract with, or grant a permit or
license to, any other person for the collection of Recyclable Materials from Residential Premises
within the City, the City having concluded that the public interest, health and welfare are best
served by centralized responsibility for such recycling with the company granted the exclusive
franchise to collect and dispose of Municipal Solid Waste.
The City shall cooperate with Contractor in legal actions Contractor pursues under
Public Resources Code Section 41953 for the unauthorized removal of Recyclable Materials
which are its property under Public Resources Code Section 41950(c), provided that such
cooperation need not extend to becoming a party in such actions.
B. Commercial Industrial and Institutional Premises
The parties recognize that the California Integrated Waste Management Act has
been authoritatively interpreted by the California Supreme Court as not providing local
government agencies with statutory authority to prohibit the collection of Recyclable Materials
from Commercial, Industrial or Institutional Premises when the Person collecting such
Recyclable Materials either (a) pays the Generator for them, or (b) removes them without any
charge, direct or indirect, to the Generator.
The Contractor recognizes that City has made no representations and gives no
assurances that the City will take any action to discourage or prohibit other Persons from
collecting Recyclable Materials from Commercial, Industrial or Institutional Premises, provided
they do not receive compensation fro the Waste Generator for doing so. This Agreement does
not authorize Contractor to collect Recyclable Materials placed for collection by other Recyclers
at Commercial, Industrial or Institutional Premises. Nor does this Agreement limit or modify
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Contractor's exclusive right to collect Municipal Solid Waste, to the extent such right has been
granted by City in the Agreement for Solid Waste Collection, Transportation and Disposal of
Municipal Solid Waste.
ARTICLE XIV
SALE OR DISPOSITION OF RECYCLABLE MATERIALS
Section 14.1 Sale or Disposition of Recyclable Materials.
Contractor shall transport and deliver the collected Recyclable Materials to a purchaser, a
licensed, permitted or certified recycling facility, or a Person who will use the materials in a
process or product and who will not landfill the Recyclable Materials. Contractor shall obtain a
certificate of purchase or end use, establishing that the materials delivered have in fact been
recycled. No Recyclable Materials collected shall be disposed of on land or through
Transformation without the prior written consent of the City.
All Recyclable Materials collected by Contractor which are saleable shall be sold at fair
market value, which shall mean the highest price commonly paid by purchasers of such materials
in the Coachella Valley area at the time of sale.
ARTICLE XV
COMPENSATION TO CONTRACTOR
Section 15.1 Compensation
As full and complete compensation for all services required by this Agreement,
Contractor shall be entitled to:
A. Retain all of the revenues received by it from the sale of Recyclable Materials
collected from the recycling programs described in Sections C, D and E of Exhibit A.
B. Retain all of the revenues received by it from the sale of Recyclable Materials
collected from the recycling programs described in Sections A and B of Exhibit A, except that
any net income attributable to such programs shall be divided equally (i.e., 50% to Contractor
and 50% to City). "Net income" for purposes of this Section 15.1B shall be determined annually,
on a calendar year basis, and shall be calculated by subtracting from gross revenues earned from
the sale of Recyclable Materials the sum of (1) direct operating costs incurred in collecting,
handling, processing and transporting residential Recyclable Materials and (2) indirect costs
properly attributable to the residential recycling programs under generally accepted accounting
principles.
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The calculation of net income shall be based on Contractor's annual financial statement
and the supplemental report provided under Section 7.3 and the City's share shall be tendered
concurrently with such statements and reports (i.e., within 90 days after the close of each
calendar year).
Contractor will submit financial statements and reports for the final six (6) months of the
Term (i.e., January 1 through June 30, 2000) by March 30, 2001 together with the City's share of
net income for that period, if any.
C. Charge Waste Generators at Residential Premises for alternate service (such as
walk-in or backyard), with the prior written approval of the City.
D. Charge Waste Generators the rates approved by the City for collection of
Municipal Solid Waste ("MSW"), except as provided in Section 15.2 of this Agreement, as to
Commercial, Industrial or Institutional Premises which participate in the collection of Recyclable
Materials with Contractor.
No payment to Contractor is required or expected from the City, except for payments due
under Sections 2.4 and 3.2.C.
Section 15.2 Collection of Recyclable Materials for Commercial, Industrial or
Institutional Waste Generators Particilating in Contractor's Recycling
Prolamin
Contractor shall provide recycling of Recyclable Materials to any Commercial, Industrial
or Institutional Waste Generator that requests it.
Contractor may retain up to one hundred percent (100%) of the revenue received from the
sale of such Recyclable Materials, Contractor may charge the Waste Generator for collection of
Recyclable Materials up to but not more than one hundred percent (100%) of the applicable rate
(as set out in Exhibit B) for collection of MSW but not including the Disposal Charge
component.
ARTICLE XVI
HOLIDAYS
Section 16.1 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.
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ARTICLE XVII
OBLIGATIONS OF CITY
Section 17.1 Obligations of City
The City shall reasonably cooperate with the Contractor as may be required to assist the
Contractor in performing the services required under this Agreement.
ARTICLE XVIII
GENERAL PROVISIONS
Section 18.1 Definitions
1. Agreement: "Agreement" means this Agreement between the City and Contractor
for the Collection and Recycling of Recyclable Materials dated as of October 6, 1995, including
all exhibits and attachments, and any amendments hereto.
2. Act: "Act" means the California Integrated Waste Management Act of 1989, as
amended, Public Resources Code Sections 40000, et seq.
3. 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.
4. Collection: "Collection" means collection of Recyclable Materials and its
transportation to a processing facility.
5. Contractor: "Contractor" means Waste Management of California, Inc., a
California corporation.
6. Commercial Premises: "Commercial Premises" means any premises occupied by
stores, offices, and other commercial facilities providing goods and services.
7. 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.
8. Environmental Laws: "Environmental Laws" means all federal and state statutes
and county and city ordinances concerning public health, safety and environment including, by
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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 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.
9. 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.
10. Green Waste: "Green Waste" means grass clippings, shrubbery, tree trimmings,
and other plant material.
11. 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 25110.02, 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.).
12. Industrial Premises: "Industrial Premises" means premises occupied by
manufacturing operations and other industrial facilities.
13. Institutional Premises: "Institutional Premises" means premises occupied by
educational, health care, correctional, research and other similar facilities.
14. Municipal Solid Waste: "Municipal Solid Waste" or "MSW" means all discarded
putrescible and non-putrescible solid, semi -solid and liquid wastes including Garbage, trash,
Refuse, paper, Rubbish, ashes, industrial wastes, Construction and Demolition Wastes, discarded
home and industrial appliances, manure, vegetable or animal solid or semi -solid wastes and other
discarded substances or materials.
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
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Code Section 25015 et seq., or (4) Recyclable Materials which have been Segregated from other
Waste Material by the Waste Generator.
15. Officer: "Officer" includes any elected or appointed member of the City Council.
16. 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.
17. 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.
18. Premises: "Premises" means any land or building in the City where Recyclable
Materials is generated or accumulated.
19. 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.
20. 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.
21. Refuse: "Refuse" includes Garbage and Rubbish.
22. Residential Premises: "Residential Premises" means single family homes,
townhouses, multi -unit buildings such as apartments and condominiums, and mobile home parks.
23. 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.
24. 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.
25. Term: "Term" means the term of this Agreement.
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26. Ton: "Ton" means a short ton of 2,000 pounds avoirdupois.
27. Waste Generator: "Waste Generator" means the Owner or occupant of Premises
which initially produce Recyclable Materials.
Section 18.2 Right of the City to Make Changes
The City may, without amending this Agreement, 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 additional Recyclable Materials
collecting and processing services, or may otherwise direct Contractor to modify its performance
under any other section of this Agreement. 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. 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 18.3 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.
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Section 18.4 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 Recyclable Materials, subject to prior approval of City.
Section 18.5 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:
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.
July 14, 1996 27
DH/aprl5.rd3
The purpose of the Agreement is to facilitate the orderly collection of Recyclable
Materials 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 18.6 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 18.7 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 18.8 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 18.9 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
Post Office Box 1504
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
July 14, 1996 28
DWaprl5.rd3
other party in writing by certified mail.
Section 18.10 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 be entered in any
court having competent jurisdiction thereof. Such controversy or claim shall be submitted to one
arbitrator mutually selected fro 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 18.11 Legal Jurisdiction
This Agreement and the rights of the parties hereunder shall be interpreted under the laws
of the State of California.
Section 18.12 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 18.13 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 18.14 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 18.15 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 Recyclable Materials
collection, hauling, recycling and marketing. Such faith and confidence being a substantial
July 14, 1996 29
DH/aprl5.rd3
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 18.16 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 18.17 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 18.18 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.
Section 18.19 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.
July 14, 1996 30
DH/aprl5.rd3
Section 18.20 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 any thing of value to a City officer or
employee, the offer or receipt of which would violate California law.
Section 18.21 Exhibits
Exhibits A through C attached hereto are incorporated herein by this reference.
Section 18.22 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 XIX
OTHER OPERATIONAL REQUIREMENTS
Section 19.1 Rules and Regulations Governing Recyclable Materials
Contractor shall comply with Chapter 6.05 of the City Municipal Code and any
amendments thereto.
Section 19.2 Air Quality Alternative Fuel Vehicles
Contractor is strongly encouraged to use alternative, clean -burning fuel, such as natural
gas, in its collection vehicles, supervisors' automobiles, etc., in order to enhance air quality.
Section 19.3 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.
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
July 14, 1996 31
DWaprl5.rd3
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 19.4 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 thirty-two (32) 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: /q�'�o
ATT ST:
XAtJNDRA L. JUH A, City Clerk
APPROVED AS TO FORM:
4&_� 0- /,z A4 I-IU -
DAWN C. HONEYWELL, ity Attorney
Date: v , 1 S Sb
Date: USA,, 7 / 196
July 14, 1996
DH/aprl5.rd3
CITY OF LA QUINTA
GLENDA L. HOLT,Mayor
WASTE MANAGEMENT OF CALIFORNIA,
INC.
By:.me4
Prc�ic)pnt
By:
Af� Secretary
/4 SCAM/96Uctf!
32
THIS GUARANTY (the "Guaranty") is given as of the 22nd day of July 91996,
by WASTE MANAGEMENT, INC., a corporation organized under the laws of the State of
Illinois (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, dba "Waste Management of the Desert," all
of the issued and outstanding stock of which is owned by Guarantor.
B. Contractor and the City have negotiated (1) an Agreement for the Collection,
Transportation and Disposal of Solid Waste, and (2) an Agreement for the Collection and
Recycling of Recyclable Materials, each dated as of ,I1, i V 22 , 1996, (hereafter
collectively referred to as the "Agreements"), 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
each of the Agreements is attached hereto and incorporated herein by this reference.
C. It is a requirement of the Agreements, and a condition to the City's entering into
the Agreements, that Guarantor guaranty Contractor's performance of the Agreements.
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 the complete and timely performance, satisfaction and observation by
Contractor of each and every term and condition of both of the Agreements 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 either of the Agreements, Guarantor will promptly
and fully perform, satisfy or observe them in the place of the Contractor. 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 either or both of the Agreements.
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 Agreements, shall constitute a guarantee of payment
and not of collection, and are not conditional upon the genuineness, validity, regularity or
July 14, 1996
tVjun20.rd3
enforceability of the Agreements.
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 Agreements; (3) the actual or purported rejection by a trustee in bankruptcy of
the Agreements, or any limitation on any claim in bankruptcy resulting from the actual or
purported termination of the Agreements; (4) any waiver, extension, release or modification with
respect to any of the obligations of the Agreements 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 waives and agrees to waive at any future time at the request of the
City, to the extent now or then permitted by applicable law, any and all rights which the
Guarantor may have or which at any time hereafter may be conferred upon it, by statute,
regulation or otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or
surrender this Guaranty. Without limiting the generality of the foregoing, it is agreed that the
occurrence of any one or more of the following shall not affect the liability of the Guarantor
hereunder: (a) at any time or from time to time, without notice to the Guarantor, the time for
Contractor's performance of or compliance with any of its obligations under the Agreements is
extended, or such performance or compliance is waived; (b) the Agreements are modified or
amended in any respect; (c) any other indemnification with respect to Contractor's obligations
under the Agreements or any security therefor is released or exchanged in whole or in part or
otherwise dealt with; or (d) any assignment of the Agreements is effected which does not require
the City's approval.
July 14, 1996
fVjun20.rd3 2
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.
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 both of the Agreements 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 Agreements. Guarantor shall not be
released of its obligations hereunder so long as there is any claim by the City against Contractor
arising out of either of the Agreements 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:
July 14, 1996
Fl/jun20.rd3
Waste Management of the Desert
41575 Eclectic Street
Palm Desert, CA 92261
8. Severabili1y. 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.
10. Authori1y. 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
P.O. Box 1504
La Quinta, CA 92253
Attention: City Manager
with a cony: City Attorney, at the same address.
To the Guarantor: Waste Management, Inc.
Waste Management, Inc. West Group
18500 Von Karman Avenue, Ste. 900
Irvine, CA 92715
July 14, 1996
Wjun20.rd3 4
IN WITNESS WHEREOF, Guarantor has executed this Guaranty on the day and year first above
written.
WAST.
M.
July 14, 1996
H/junMrO A-1
EXHIBIT A
SCOPE OF SERVICES
A. Curbside Residential Recycling (Up to Four Units)
I . Collection. Contractor shall collect and remove all Recyclable Materials,
which are segregated and placed in or adjacent to recycling containers at the curbside, from all
single-family residences and all residential developments of four (4) or fewer units located in the
City where MSW collection service is individual can collection (as opposed to bin or dumpster
collection). For those single-family residences and residential developments that are walled
communities with private streets, alternative recycling methods shall be offered to the
homeowners' associations. Examples of recycling methods are curbside, walk-in or backyard,
central location containers, or others that may be approved by the City. Resolution of conflicts
in recycling methodology shall be at the sole discretion of the City.
2. Curbside Recyclable Materials. Recyclable Materials to be collected
include newspapers, glass, metal cans (aluminum and delabeled tin), used oil, plastic bottles,
magazines, catalogs, junk mail, aerosol cans, telephone books, and cardboard and such other
materials as mutually agreed upon in writing by Contractor and City. Contractor shall provide a
report to City each year on February 1 describing the status of Contractor's efforts to add wire
hangers, film plastics, and number 3, 4, 5, 6, 7 and 8 plastics to the curbside recycling program.
3. Time of Collection. Contractor shall collect the Recyclable Materials once
per week, regardless of weather conditions. To the extent possible, collection will be on the
same day of the week as collection of Municipal Solid Waste.
4. Missed Pickups. In case of a missed pickup called in by a resident or the
City, Contractor shall collect the Recyclable Materials from such resident within twenty-four
(24) hours. All calls relating to missed pickups shall be logged in by Contractor and such log
shall be available for inspection by the City.
B. Residential Green Waste Collection and Recycling Program
1. Green Waste Program Startup. On or before April 1, 1997, Contractor shall
implement a city-wide automated Green Waste collection and recycling program. Automated
Green Waste collection services shall be provided to all single family, duplex, and triplex
residences in City with the exception of the residences located within gated communities and
mobilehome communities.
July 14, 1996
DWaprl5.rd3 A-1
Contractor shall provide residents with a 96 gallon wheeled cart for Green Waste
storage. Contractor shall provide all labor and equipment required to conduct the automated
Green Waste collection and recycling program. Contractor shall collect all Green Waste at
curbside unless backyard or side yard service is requested by a resident. In the event backyard or
side yard service is requested, Contractor shall charge the rate listed on Exhibit B.
2. Public Education Program. Ninety (90) days prior to commencement of the
automated Green Waste collection program, Contractor shall submit to City, at City's request, a
draft public education package on the program including:
a. draft direct mail brochure and newsletter article;
b. draft brochure to accompany delivery of the wheeled carts to residents;
C. draft public service announcement for the City's cable television channel;
d. draft public service announcement for local radio stations; and
e. draft newspaper ad for placement in the Desert Sun.
City will provide Contractor with comments on the draft public education package
within twenty (20) working days. Contractor shall, at its sole expense:
a. Produce and mail the direct mail brochure to City residents three (3) weeks
prior to the delivery of the wheeled carts for Green Waste storage and
provide newsletter copy to City;
b. Produce the second brochure and deliver it to residents with the wheeled
carts;
C. Produce the public service announcements for the radio stations and the
cable television station. Contractor shall use best efforts to follow up with
verbal and written communication to the stations to make sure the public
service announcements are run a minimum of ten (10) times in the
fourteen (14) days prior to delivery of the wheeled carts and a minimum of
ten (10) times after delivery of the wheeled carts is completed; and
d. Produce the newspaper ads and submit them to the Desert Sun. Said ads
shall run a minimum of two (2) times during the fourteen (14) day period
prior to the distribution of the wheeled carts and a minimum of two (2)
times after the distribution of the wheeled carts to residents. Said ads shall
be a minimum of one sixteenth (1/16th) of a newspaper page in size.
July 14, 1996
DH/aprl5.rd3 A-2
3. 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 al other data on the automated Green Waste 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 (1 Oth) day of each quarter beginning in March 1997. 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 Green Waste 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 Green Waste
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.
4. 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 within seventy-two (72) hours of the resident's request for
the first two reports. If a resident reports a third lost or stolen cart, Contractor may charge the
customer for a replacement cart. City or Contractor shall maintain complete and accurate records
of al 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 (IOth) day of each quarter, beginning in March
1997, listing the number of carts so provided.
5. 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 Green
Waste collection program. Contractor shall operate said trucks in a safe and efficient manner so
as to minimize the blowing or spilling of Green Waste during the collection process. If Green
Waste is spilled or blown by the wind, Contractor shall make all reasonable efforts to clean up
and collect all spilled and blown Green Waste.
6. Recycling of Green Waste. All Green Waste collected by Contractor shall be
delivered to a facility for recycling, mulching or composting. Ninety (90) days prior to the
commencement of the Green Waste Collection program, Contractor shall notify City in writing
of the facility where Contractor plans to deliver the Green Waste. Contractor shall not deliver
Green Waste to a facility without obtaining the prior consent of the City. In the event that
Contractor desires to change the Green Waste processing facility to which Green Waste is being
delivered, Contractor shall submit a written request to City at least thirty (30) days prior to the
date of the requested change. If it becomes known that the Green Waste processing facility
utilized by Contractor is not recycling, mulching or composting the Green Waste collected in
July 14, 1996
DH/aprl5.rd3 A-3
City, or is out of compliance with local, state or federal operating permits, laws or regulations, or
is processing and/or using Green Waste in such a way that the Green Waste collected from
within City will not count as MSW diverted for purposes of AB 939 and any other applicable
state or federal law, City reserves the right to direct Contractor to deliver the Green Waste to
another processing facility.
C. Multi -Unit Residential Recycling (Five Units and Above)
1. Contractor shall collect and remove all Recyclable Materials which are
segregated and placed in or adjacent to multi -family complexes with five or more residential
units located in the City and all such complexes with two or more units where MSW collection
service is bin or dumpster collection.
2. Multi -Unit Residential Recyclable Materials. Recyclable Materials to be
collected include newspaper, glass, metal cans, plastic bottles, magazines, catalogs, junk mail,
aerosol cans and such other materials as mutually agreed upon in writing by Contractor and City.
Contractor shall provide a report to City each year on February 1 describing the status of
Contractor's efforts to add wire hangers, film plastics, and number 3, 4, 5, 6, 7 and 8 plastics to
the curbside recycling program.
3. Time of Collection. Contractor shall collect the Recyclable Materials on a
regular basis, no less frequently than the time required to fill the bin or dumpster and at least
weekly for crates or boxes.
4. Requested Pickups. In the event Contractor missed a normal pickup or the
bin or dumpster fills prior to a normal pickup, Contractor shall collect the Recyclable Materials
from such complex within twenty-four (24) hours of notice by the City or property
manager/owner/tenant. All calls relating to missed or additional pickups shall be logged in by
Contractor and such log shall be available for inspection by the City.
D. Commercial, Industrial or Institutional Recycling
1. Collection. Contractor shall collect and remove designated Recyclable
Materials, which are segregated and placed in separate bins, from all businesses located in the
City which elect to participate in Contractor's recycling program.
2. Recyclable Materials. Recyclable Materials includes glass, corrugated
cardboard, computer paper, white paper, mixed office paper and such other materials as mutually
agreed upon in writing by Contractor and the City.
3. Time of Collection. Contractor shall collect the Recyclable Materials
placing a designated location for periodic collection regardless of weather conditions. To the
July 14, 1996
DH/aprl5.rd3 `�-4
extent possible, collection will be on the same day of the week as regular Municipal Solid Waste
collection.
4. Missed Pickups. In case of a missed pickup or full bin or dumpster called
in by a business, industry or institution, Contractor shall collect the Recyclable Materials from
such business, industry or institution within twenty-four (24) hours. All calls relating to missed
or extra pickups shall be logged in by Contractor and such log shall be available for inspection
by the City.
5. Curbside Recycling Service for Small Businesses. Contractor shall
provide the above -described curbside recycling program for selected small businesses with fewer
than 50 employees. Each year, Contractor shall contact thirty (30) small businesses that generate
MSW containing the materials collected by the curbside recycling program and invite them to
participate in the program. Contractor shall provide a set of three (3) stacking crates or a two (2)
box set, together with an informational packet describing the program, at no charge, to each
business desiring to participate in the curbside recycling program. Contractor shall utilize the
existing curbside recycling vehicles and crews to collect Recyclable Materials from the
participating businesses.
Contractor shall issue a report on October 1 and March 1 of each year listing the
small businesses contacted and the businesses actually participating in the curbside recycling
program. The list shall include the name of the business, contact person, address, telephone
number and type of crates or boxes being used for storage of Recyclable Materials. Said list
shall include the names of small businesses contacted that chose not to participate in the program
including the reason given for non -participation, and a description of any noteworthy experiences
or observations of Contractor with regard to the operation of this program. Contractor shall not
be required to pay the participating small businesses for Recyclable Materials collected by the
curbside recycling program pursuant to this section.
6. Commercial Premises Wastestream Audit Program. Upon request,
Contractor shall perform at no charge a wastestream audit for commercial premises. Said audit
shall, at a minimum, identify broad categories of solid waste by type and amount and shall
recommend methods of reducing that amount by waste prevention, recycling, reuse or
composting. Audit results shall be prepared in writing and forwarded to the requestor within
fifteen (15) days of audit field work. Program shall be oriented toward the needs of Commercial
Premises, taking into account possible savings and costs.
Contractor shall, within six (6) months after the commencement of the Term,
submit to City a draft of (1) a press release to announce availability of program and (2) a
presentation and brochures f6r Chamber of Commerce, other business associations and
distribution to individual businesses.
July 14, 1996
DH/aprl5.rd3 A-5
City shall provide Contractor with comments and edits on draft materials. Once
finalized, Contractor shall, within thirty (30) days, prepare and submit to City a schedule of
presentation (by name of organization, date, time, place of presentation). Contractor shall be
required to review with City, on or about each January 1 of the Term, the status of this program,
including the need to revise materials. Contractor shall report on a quarterly basis the name and
address of Commercial Premises for which a wastestream audit was completed, time on part of
Contractor to complete audit, estimated waste reduction and actual waste disposed, as well as
other noteworthy items.
E. City Facility Recycling Program
1. Collection. Contractor shall collect and remove all Recyclable Materials
which are segregated and placed in or adjacent to recycling storage containers at all City
facilities.
2. City Recyclable Materials. City Recyclable Materials includes glass,
corrugated cardboard, metal cans, plastic bottles, newspaper, and mixed office paper (including
white paper, computer paper, magazines, junk mail, file folders, and "post it" notes). The mixed
office paper may contain staples.
3. Time of Collection. Contractor shall collect the Recyclable Materials
placed in a designated location for periodic collection, regardless of weather conditions.
Collections shall be made with sufficient frequency that Recyclable Materials do not overflow
the storage containers.
4. Missed Pickups. In case of a missed pickup or full container reported by
City, Contractor shall collect the Recyclable Materials from the City facility within twenty-four
(24) hours. All calls relating to missed or extra pickups shall be logged in by Contractor and
such log shall be available for inspection by City.
F. Collection of Holiday Greenery
Contractor shall collect Christmas trees and other holiday greenery on regular solid waste
collection days during the period December 26 through January 8. Contractor shall prepare a
public education flyer, brochure or postcard informing residents of this service. Residents will
be instructed to cut holiday greenery into 4-foot lengths and to remove tinsel, lights and
ornaments. Flocked trees shall be collected and handled by Contractor as municipal solid waste.
Greenery must be placed at curbside for collection by 7:00 a.m. on refuse collection day. The
greenery collected by Contractor shall be mulched or chipped and recycled or reused.
Contractor shall also operate two drop off locations where City residents may drop off
their holiday greenery. The locations shall be designated by City. The drop off locations shall
July 14, 1996
DWaprl5.rd3 A-6
be staffed by City. Holiday greenery delivered to the drop off locations by residents need not be
cut into 4-foot lengths. However, ornaments, lights and tinsel must be removed. Flocked trees
shall be accepted by Contractor at the drop off points and disposed of as municipal solid waste.
Contractor shall provide City with a report on or before February 10 listing and the
pounds/tons of holiday greenery collected at curbside, and the pounds/tons of holiday greenery
received at the drop off locations. Said report shall also include a copy of the weight ticket(s)
from the recycling, mulching or wood chipping operation where the greenery was recycled or
reused.
G. Backyard Composting Program
Contractor shall implement a backyard composting program, such as the Master
Composting program, within City. Contractor shall supply thirty (30) backyard composting
units, such as the "Soil Saver" unit or the equivalent, made of recycled plastic or recycled wood,
for free, to residents attending the backyard composting workshops. Contractor shall also
provide additional composting units at Contractors' cost, to residents requesting such units.
Contractor shall sell said units at the composting workshops and shall also have said units
available for sale at Contractor's office.
Contractor shall present backyard composting workshops at City parks, the Senior Center
or other appropriate locations on a semi-annual basis. Contractor shall provide educational
brochures on how to utilize the backyard composting units and shall demonstrate the backyard
composting techniques at the workshops. Contractor shall advertise the workshops with
brochures, posters located in the Senior Center, City Hall and other City facilities as well as
through flyers distributed through the schools. Contractor shall also place a minimum of one (1)
ads in the Desert Sun newspaper prior to each composting workshop. Contractor shall provide
City with a written report on each semi-annual composting workshop listing the number of
attendees, the reaction of the public and suggestions for future workshops.
July 14, 1996
DWaprl5.rd3 A-7
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REFUSE COLLECTION RATE AND DISPOSAL CHARGE
FOR COMMERCIAL ACCOUNTS
(Effective July 1, 1996)
LA GUINTA
PROPOSED SERVICE RATE
FREQUENCY
1
2 3
4
5
6
BIN SIZE
2
45.35
78.56 110.04
141.35
172.71
204,33
3
56.51
96.43 135.65
171.65
210.12
247.18
4
77.35
119.51 163.39
207.44
248.91
289.37
6
116.04
179.28 245.04
311.37
373.38
434.09
PROPOSED DUMP SURCHARGE
FREQUENCY
1
1 3
4
5
6
BIN SIZE
2
13.81
26.66 39.59
52.44
65.15
78.11
3
20.06
39.17 57.82 '
76.49
95.48
114.02
4
26.96
51.67 76.26
101.09
125.66
150.15
6
40.13
78.32 115.64
152.96
190.94
228.04
PROPOBYD LANDFML CLOSURE
COST
FREQUENCY
1
2 3
4
5
6
BIN SIZE
2
0.98
1.89 2.82
3.73
4.64
5.57
3
1.43
2.79 4.12
5.45
6.90
8.13
4
1.92
3.69 5.44
721
2.96
10.71
6
2.86
5.59 8.24
10.91
13.61
16.26
PROPOSED RECYCLING PROGRAM COST
FREQUENCY
'
1
2 3
4
S
6
BIN SIZE
2
4.19
9.09 12.02
15.92
19.79
23.71
3
6.09
11.89 17.55
23.22
28.98
34.61
4
8.19
15.69 23.15
30.69
39.15
45.58
6
12.18
23.78 35.10
46.43
57.96
6923
LA QUINTA
PROPOSED ROLLOFF RATE
PULL OR MONTHLY
EMPTY & RETURN FLAT RATE
20 YARDS 81.62 • 326.48
30 YARDS 115.47 • 461.88
40 YARDS 136.63 * 546.52
coo
*PLUS DUMP FEES CHARGED AT S30/TON PLUS $8.50 PER TON
RECYCLING CHARGE TO BE PAID TO CITY
'PLUS AB939 FEES CHARGED AT $6.77 PER TON
'DELIVERY CHARGE S 15.98
'EXTRA TRIP S45.44
NOTE: COMPACTOR ACCOUNTS WILL BE CHARGED AT THREE TIMES (3X) THE BASIC ROLLOFF RATE
OTHER FEES - RESIDENTIAL, COMMERCIAL AND ROLL -OFF
START FEE 5.65
RESTART FEE 14.91
RETURNED CHECK 15.00
.+
PROPOSED A8832 SURCHARGE
FREQUENCY
1
2 3
4
S
6
BIN SIZE
l
2.94
5.88 8.82
11.76
14.70
17.64
3
4.41
8.82 13.23
17.64
22.05
26.46
4
5.88
11.76 17.64
23.52
29.40
35.28
6
8.82
17.64 26,46
35.28
44.10
52.92
PROPOSED TRANSPORTATION SURCHARGE
FREQUENCY
1
Z 3
4
S
6
BIN SIZE
2
1.64
2.83 3.97
5.10
6.23
7.37
3
2.04
3.48 4.99
6.19
7.59
8.91
4
2.79
4.31 5.99
7.48
8.97
10.43
6
4.18
6.46 8.83
11.23
13.46
15.65
PROPOSED TOTAL RATE
INCLUDING ALL SURCHARGES
FREQUENCY
1
2 3
4
5
6
BIN SIZE
Z
68.91
123.92 177.26
230.29
283.20
336.73
3
90.54
162.60 233.26
300.64
371.01
439.31
4
123.09
206.62 291.77
377.42
460.06
541.53
6
184.21
311.07 439.33
568.18
693.46
816.19
PROPOSED ADDITIONAL COMMERCIAL CHARGES
2-YARD BIN -EXTRA EMPTY
3-YARD BIN -EXTRA EMPTY
4-YARD BIN -EXTRA EMPTY
6-YARD BIN -EXTRA EMPTY
LOCKED ENCLOSURE AIVD/OR PULLOUT OVER 35 FT
DELIVERY CHARGE
LOCKING CONTAINER
REPLACENWiT LOCTJNG BAR
SATURDAY SERVICE (<6X)
27.93
38.35
51.89
77.40
4.59 PER PICKUP
15.98
51.25
34.20
21.31
RESOLUTION 96-59
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING AN 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 Municipal Code authorizes the
removal and conveyance of recyclable materials; and
WHEREAS, City staff has negotiated an agreement in good faith pursuant to
Article I of the City's Refuse Collection Services Contract 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 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 a regular meeting of the La
Quinta City Council, held on this 22nd day of July, 1996, by the following vote, to wit:
AYES: Council Members Adolph, Henderson, Perkins, Sniff
NOES: Mayor Holt
ABSTAIN: None
ABSENT: None A� 1�
64° 1*V4'6L.C�
GLENDA L. HOLT, Mayor
City of La Quinta, California
AT ST:
AUNDRA L. JU LA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
DAWN C. HONEYWELL; City Attorney
City of La Quinta, California