2022-2037 Burrtec Waste & Recycling Amended & Restated No. 2AMENDED AND RESTATED AGREEMENT
BETWEEN
CITY OF LA QUINTA
AND
BURRTEC WASTE AND RECYCLING SERVICES, LLC
FOR
SOLID WASTE HANDLING SERVICES
EFFECTIVE JULY 1, 2022
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TABLE OF CONTENTS
SECTION 1. RECITALS 2
SECTION 2. DEFINITIONS 2
2.1 AB 341 3
2.2 AB 939 3
2.3 AB 1826 3
2.4 Affiliate 3
2.5 Animal Waste 3
2.6 Bins 4
2.7 Bulky Items 4
2.8 CalRecycle 4
2.9 Cart 5
2.10 City 5
2.11 City Limits 5
2.12 City Manager 5
2.13 Collect/Collection 5
2.14 Commercial Premises 5
2.15 Container 6
2.16 Contractor 6
2.17 Customer 6
2.18 Dwelling Unit 6
2.19 Effective Date 7
2.20 Environmental Laws 7
2.21 Food Waste 8
2.22 Franchise Area 8
2.23 Franchise Fee 8
2.24 Green Waste 9
2.25 Gross Receipts 9
2.26 Hazardous Substance 9
2.27 Hazardous Waste 10
2.28 Multi -Family Dwelling 11
2.29 Municipal Code 11
2.30 Organic Waste 11
2.31 Person 12
2.32 Premises 12
2.33 Recyclable Material 13
2.34 Residential Premises 13
2.35 Rolloff Box 13
2.36 Single Family Dwelling 14
2.37 Solid Waste 14
2.38 Solid Waste Handling Services 14
2.39 Special Wastes 15
2.40 Temporary Service 15
2.41 Term 15
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SECTION 3. GRANT OF EXCLUSIVE FRANCHISE FOR SOLID WASTE HANDLING
SERVICES FROM ALL RESIDENTIAL AND COMMERCIAL PREMISES, AND FOR
PROVIDING TEMPORARY SOLID WASTE HANDLING SERVICE 17
3.1 Scope of Franchise 17
3.2 Matters Excluded from Scope of Franchise 17
SECTION 4. ENFORCEMENT OF EXCLUSIVITY 18
SECTION 5. ACCEPTANCE; WAIVER 18
SECTION 6. TERM 19
SECTION 7. CONDITIONS TO EFFECTIVENESS OF AGREEMENT 19
7.1 Accuracy of Representation 19
7.2 Absence of Litigation 19
7.3 Furnishing of Insurance, Bond, Letter of Credit, and Corporate Guarantee 19
7.4 Effectiveness of City Council Action 19
7.5 Payment of Fees and Costs 20
SECTION 8. SOLID WASTE HANDLING SERVICES PROVIDED BY CONTRACTOR 20
8.1 General 20
8.1.1 Equipment 20
8.1.2 Performance Standards 20
8.1.3 Noise and Disruption 20
8.1.4 Collection Times 20
8.1.5 Collection Schedule 20
8.1.6 Commingling of Routes 21
8.1.7 Replacement of Containers 21
8.1.8 Contractor's Containers 21
8.1.9 Missed Pick-ups 23
8.1.10 Record of Non -collection 23
8.2 Residential Solid Waste Handling Service 23
8.2.1 Single Family Dwellings — Automated Collection 23
8.2.3 Backyard Service 24
8.2.4 Single Family Dwellings — Bin Collection 24
8.2.5 Recycling Program for Single Family Dwellings Using Carts 24
8.2.6 Recycling Program for Single Family Dwellings Using Manual Service Error!
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8.2.7 Recycling Program for Single Family Dwellings Using Bin Service 25
8.2.8 Organic Waste Program for Single Family Dwellings Using Carts 25
8.2.9 Organic Waste Program for Single Family Dwellings Using Bin Service 25
8.2.10 Multi -Family Dwelling Organic Waste Program 26
8.2.11 Use of Bins for Multi -Family Dwelling Customers 26
8.2.12 Multi -Family Dwelling Recycling Program 26
8.2.13 Residential Bulky Item Service 27
8.2.14 Bulky Item Diversion 28
8.2.15 Proper Handling of Bulky Items 28
8.2.16 Residential Sharps Collection Program 28
8.2.17 Residential Non -Controlled Medication Collection Program 28
8.2.18 [Intentionally Omitted] 29
8.2.19 Residential Used Oil and Oil Filter Collection Program 29
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8.3 Commercial Solid Waste Handling Services 29
8.3.1 Commercial Bins and Rolloff Boxes 29
8.3.2 Commercial Carts 29
8.3.3 Commercial Recycling Program 29
8.3.4 Organic (Food Waste/Greenwaste) Waste Diversion Program 30
8.3.5 Commercial Bulky Item Service 31
8.4 Temporary Services 31
8.5 Recycling Obligations and Public Education Program 32
8.5.1 Minimum Requirements for Delivery of Recyclable Materials and Organic Waste
32
8.5.2 Extent of Applicable Franchise Rights 32
8.5.3 AB 939 Obligations, Guarantee, and Indemnification 33
8.5.3.1 Warranties and Representations 33
8.5.3.2 Waste Reduction and Program Implementation 33
8.5.3.3 Guarantee and Indemnification 33
8.5.4 Waste Generation/Characterization Studies 34
8.5.5 Implementation of Additional Diversion Services 34
8.6 Additional Services 35
8.6.1 Biennial Document Shredding Events 35
8.6.2 City Sponsored Events 35
8.6.3 Recycling Assistance for Special Events 35
8.6.4 Bin and Bin Enclosure Cleaning 35
8.6.5 Litter Abatement 36
8.6.6 Holiday Trees 36
8.6.7 Handling of Electronic Waste 36
8.6.8 Acceptance of Recyclable Materials and Household Hazardous Waste 36
8.7 Special Services 36
8.8 Street Sweeping 37
8.9 Pilot Programs 41
SECTION 9. MINIMUM STANDARDS FOR CONTRACTOR'S SOLID WASTE
HANDLING SERVICE COLLECTION VEHICLES 49
9.1 General 49
9.2 Air Quality/Fuel Requirements 49
9.3 Specific Requirements 50
9.4 Costs of Operation and Damages 51
9.5 City Inspection 51
9.6 Correction of Defects and Removal of Vehicles from Use within City 52
SECTION 10. CONTRACTOR'S SOLID WASTE HANDLING SERVICE PERSONNEL 52
10.1 Uniforms 52
10.2 Identification of Employees 52
10.3 Employee List 52
10.4 Driver's License 52
10.5 Discontinued Use of Unsatisfactory Employees 52
10.6 Training and Legal Compliance 52
10.7 Customer Service 53
10.7.1 Local Office; Local Participation 53
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10.7.2 Telephone Customer Service Requirements 53
10.7.3 Complaint Documentation 54
10.7.4 Resolution of Customer Complaints 54
10.7.5 Government Liaison 54
10.8 Education and Public Awareness 55
10.8.1 General 55
10.8.2 Implementation and On-going Education Requirements 55
SECTION 11. CONTRACTOR'S CONSIDERATION 56
11.1 Administrative Cost Reimbursement 56
11.2 Franchise Fee 56
11.3 Services at City Facilities 57
11.4 AB 939 Fee 57
SECTION 12. CHARGE FOR LATE PAYMENTS 59
SECTION 13. CONTRACTOR'S BILLING SERVICES AND SYSTEMS 59
13.1 Residential Customers 59
13.1.1 General — Tax Roll Billing 59
13.1.2 Credit for Residential Customers Receiving Bin Service 59
13.1.3 Refunds for Vacant Properties 59
13.2 Billing and Payment for Commercial and Multi -Family Customers 60
13.2.1 General 60
13.2.2 Unoccupied Premises 60
13.2.3 Delinquent Accounts 60
13.2.4 Minimum Requirements for Billing Statements 61
13.2.5 Billing System 61
13.2.5.1 Computerization of Account Information 61
13.2.5.2 Minimum Computer Programming Requirements 61
13.2.6 Billing Inquiries 62
13.2.7 Distribution of Public Information 62
13.3 Payment, Accounting Systems 62
13.3.1 Collection and Processing of Payments 62
13.3.1.1 Accounting and Deposit of Funds 62
13.3.1.2 Allocation of Funds 62
13.3.1.3 Allocation of Funds by City 63
13.3.1.4 Tax Roll Payments Limited 63
SECTION 14. FAITHFUL PERFORMANCE 63
SECTION 15. INSURANCE COVERAGE 64
15.1 Minimum Scope of Insurance 64
15.2 Minimum Limits of Insurance. 65
15.3 Deductibles and Self -Insured Retentions. 65
15.4 Other Insurance Provisions 65
15.4.1 General Liability and Automobile Liability Coverages 65
15.4.2 Workers' Compensation and Employers Liability Coverage 66
15.4.3 All Coverages 66
15.5 Acceptability of Insurers. 66
15.6 Verification of Coverage. 66
15.7 Loss or Reduction in Insurance 66
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SECTION 16. ASSIGNMENT, SUBLETTING, AND TRANSFER; REQUIREMENTS AND
LIMITATIONS 67
16.1 General 67
16.2 "Assignment" to be Broadly Interpreted 67
16.3 Nature of Agreement - Personal to Contractor 67
16.4 Procedure for Consideration of Assignment 67
16.5 Assignment to a Family Member 69
SECTION 17. REVIEW OF SERVICES AND PERFORMANCE 69
17.1 Performance Hearing 69
17.2 Performance Satisfaction Survey 70
SECTION 18. CITY'S REMEDIES; DEFAULT AND TERMINATION 71
18.1 Notice of Default 71
18.2 Failure to Cure 71
18.3 Review by City Manager 71
18.4 City Council Review 71
18.5 Performance During Reviews 72
18.6 Termination without Right to Cure 72
18.7 Liquidated Damages 73
18.7.1 General 73
18.7.2 Service Performance Standards; Liquidated Damages for Failure to Meet Standards
73
18.7.3 Calculations for Liquidated Damages 74
18.7.3.1 Collection Reliability 74
18.7.3.2 Collection Quality 74
18.7.3.3 Customer Responsiveness 74
18.7.3.4 Timeliness of Submissions to City 75
18.7.4 Process for Assessment of Liquidated Damages 75
18.7.5 Timing of Payment 75
SECTION 19. CONTRACTOR'S REMEDIES; ADMINISTRATIVE HEARING 75
19.1 Administrative Hearing 75
19.2 Other Remedies; Claims 76
19.3 Actions for Damages 76
SECTION 20. CITY'S ADDITIONAL REMEDIES 76
SECTION 21. RIGHTS OF CITY TO PERFORM DURING EMERGENCY 77
21.1 Provision of Service 77
21.2 Possession of Equipment 77
21.3 Exclusions from Right to Possession of Equipment without Compensation 77
SECTION 22. PRIVACY 77
SECTION 23. REPORTS AND ADVERSE INFORMATION 78
23.1 Monthly Reports 78
23.2 Quarterly Reports 78
23.3 Annual Reports 79
23.4 Financial Report 79
23.5 Adverse Information 80
23.6 Disaster Plan 80
23.7 Failure to Report 81
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SECTION 24. COMPENSATION 81
24.1 Contractor Rates 81
24.2 Resolution of Disputes Regarding Rate Adjustments 81
24.3 Annual Consumer Price Index Adjustments to Service Component 81
24.4 Limitations to Annual CPI Adjustments to Service Component 82
24.4.1 Rate Guarantee 82
24.4.2 Six Percent (6%) Cap 82
24.4.3 Compliance with Agreement 82
24.5 Disposal Component Adjustments 83
24.6 Discretionary Adjustments 83
24.7 Grants 83
SECTION 25. IDENTIFICATION OF CONTRACTOR 84
SECTION 26. CITY'S FLOW CONTROL OPTION 84
SECTION 27. INDEMNIFICATION 84
27.1 General 84
27.2 Hazardous Substances Indemnification 85
SECTION 28. CONTRACTOR'S BOOKS AND RECORDS; AUDITS 87
28.1 Maintenance and Inspection of Records 87
28.2 CERCLA Defense Records 87
28.3 Audits 88
28.3.1 Annual Examination of Services 88
28.3.2 Discretionary Audits 88
28.3.3 Route Audit 88
SECTION 29. TRANSITION OBLIGATIONS 89
SECTION 30. GENERAL PROVISIONS 90
30.1 Force Majeure 90
30.2 Independent Contractor 90
30.3 Pavement Damage 90
30.4 Property Damage 91
30.5 Right of Entry 91
30.6 Law to Govern; Venue 91
30.7 Amendment 91
30.8 Notices 91
30.9 Guarantee of Contractor's Performance 92
30.10 Savings Clause 92
30.11 Exhibits Incorporated 92
30.12 Joint Drafting 92
30.13 Attorneys' Fees and Litigation Costs 92
30.14 City's Authorized Agent 92
30.15 Integrated Agreement 93
30.16 Section Headings 93
30.17 Compliance with Law 93
EXHIBIT A
EXHIBIT B
EXHIBIT C
EXHIBIT D
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MAXIMUM RATE SCHEDULE FOR SOLID WASTE HANDLING SERVICES
CONTAINER/BIN SPECIFICATIONS
CITY FACILITIES
CITY SPONSORED EVENTS
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EXHIBIT E CORPORATE GUARANTEE
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AGREEMENT
This Amended and Restated Agreement ("Agreement") is entered into to be effective as
of the 1st day of July 2022, by and between the City of La Quinta ("City") and
Burrtec Waste and Recycling Services, LLC ("Contractor") (collectively, the "Parties") to
provide an exclusive franchise for Solid Waste Handling Services within the City.
RECITALS:
A. The Legislature of the State of California, by enactment of the California
Integrated Waste Management Act of 1989 ("AB 939"), has declared that it is in the public
interest to authorize and require local agencies to make adequate provision for the disposal of all
Solid Waste within their jurisdictions.
B. Pursuant to California Public Resources Code Section 40059(a)(1), the City
Council of the City has determined that the public health, safety, and welfare require that an
exclusive franchise agreement be awarded to a qualified solid waste enterprise for Solid Waste
Handling Services within the City Limits.
D. City and Contractor previously entered into that certain Agreement between City
of La Quinta and Burrtec Waste and Recycling Services, LLC for Solid Waste Handling
Services, Effective July 1, 2007 (the "Prior Agreement") and the parties wish to supersede the
Prior Agreement and enter into this Amended and Restated Agreement between City of La
Quinta and Burrtec Waste and Recycling Services, LLC for Solid Waste Handling Services,
Effective July 1, 2016.
E. City and Contractor are mindful of the provisions of the laws governing the safe
collection, transport, recycling, and disposal of Solid Waste, including AB 939, the Resource
Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA"). City and Contractor desire to leave no doubts as
to their respective roles and to memorialize that by entering into this Agreement, City is not
thereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and that it
is Contractor, not City, who is "arranging for" the collection, transport for disposal, composting,
and recycling of municipal Solid Waste in the City which may contain hazardous substances.
City and Contractor understand and agree that it is Contractor, and not City, who will arrange to
collect Solid Waste , that City has not, and, by this Agreement does not, instruct Contractor on
its collection methods, nor supervise the collection process, nor do the Parties intend to place
title to such Solid Waste in City, but rather intend that whatever, if any, title in and to such Solid
Waste that otherwise might exist in or with City in the absence of this Agreement is hereby
transferred to Contractor, and further that if Contractor gains title to such Solid Waste it is by
operation of law and agreement with its Customers and is not the result of this Agreement. By
entering this Agreement City and Contractor further desire to confirm that Contractor has agreed
to indemnify the City in connection with any claims relating to the inadvertent or intentional
collection, transportation and/or disposal of hazardous materials that may occur in connection
with Contractor's performance under this Agreement.
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F. The State of California has found and declared that the amount of Solid Waste
generated in California, coupled with diminishing Disposal capacity and interest in minimizing
potential environmental impacts from landfilling and the need to conserve natural resources,
have created an urgent need for State and local agencies to enact and implement an aggressive
integrated waste management program. The State has, through enactment of AB 939 and
subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011
(AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343,
Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of
2014 (AB 1826), and the Short -Lived Climate Pollutants Bill of 2016 (SB 1383), directed the
responsible State agency, and all local agencies, to promote a reduction in Landfill Disposal and
to maximize the use of feasible waste reduction, Reuse, Recycling, and composting options in
order to reduce the amount of material that must be Disposed; and,
G. SB 1383 establishes regulatory requirements for jurisdictions, Generators,
haulers, Solid Waste facilities, and other entities to support achievement of State-wide Organic
Waste Disposal reduction targets; and, SB 1383 Regulations require the City to implement
Collection programs, meet processing facility requirements, conduct contamination monitoring,
provide education, maintain records, submit reports, monitor compliance, conduct enforcement,
and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to
the Contractor, acting as the City's designee, and Contractor desires to take on these
responsibilities.
COVENANTS:
Based upon the foregoing Recitals and for good and valuable consideration, the receipt
and sufficiency of which is acknowledged by each of the Parties, City and Contractor hereby
agree as follows:
SECTION 1.
RECITALS
The Parties acknowledge the above recitals are true and correct and incorporate them
herein as if they were fully restated.
SECTION 2.
DEFINITIONS
Whenever any term used in this Agreement has been defined by the California Public
Resources Code, the definition of such term set forth therein shall apply unless the term is
otherwise defined in this Agreement.
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2.1 AB 341
"AB 341" shall mean collectively the act to amend Sections 41730, 41731, 41734, 41735,
41736, 41800, 42926, 44004, and 50001 of, to add Sections 40004, 41734.5, and 41780.01 to, to
add Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and to add and
repeal Section 41780.02 of, the California Public Resources Code, which mandates businesses
and public entities generating four (4) cubic yards or more of waste per week and multifamily
residential dwellings with five (5) units or more to recycle.
2.2 AB 939
"AB 939" shall mean the California Integrated Waste Management Act of 1989,
currently codified as California Public Resources Code Section 40000 et seq., as it may be
amended from time to time.
2.3 AB 1826
"AB 1826 shall mean an act to add Chapter 12.9 (commencing with Section 42649.8) to
Part 3 of Division 30 of the Public Resources Code, which mandates recycling of Organic Waste
by businesses.
2.4 Affiliate
"Affiliate" means a business in which Contractor owns a direct or indirect ownership
interest, a business (including corporations, limited and general partnerships and sole
proprietorships) which has a direct or indirect ownership interest in Contractor and/or a business
which is also owned, controlled or managed by any business or individual which has a direct or
indirect ownership interest in Contractor. For purposes of determining whether an indirect
ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal
Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided,
however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section
318(a)(2)(C) and in Section 318(a)(3)(C) thereof'; and (ii) Section 318(a)(5)(C) shall be
disregarded. For purposes of determining ownership under this paragraph and constructive or
indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall
be disregarded and percentage interests shall be determined on the basis of the percentage of
voting interest or value which the ownership interest represents, whichever is greater.
2.5 Animal Waste
"Animal Waste" shall mean animal carcasses, dead animals, and/or parts or portions of
dead animals. Animal Waste shall not include manure.
Back -Haul
"Back -Haul" means generating and transporting Organic Waste to a destination owned
and operated by the Generator using the Generator's own employees and equipment, or as
otherwise defined in 14 CCR Section 18982(a)(66)(A) (or successor section).
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2.6 Bins
"Bins" shall mean a metal Container, including dumpsters, compactors, and any similar
such devices with a capacity of under ten (10) cubic yards.
Blue Container
"Blue Container" has the same meaning as in 14 CCR Section 18982(a)(5) (or successor
section) and shall be used for the purpose of storage and Collection of Source Separated
Recyclable Materials (SSBCOW).
Bulky Items
"Bulky Items" means Solid Waste that cannot and/or would not typically be
accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses,
and rugs); appliances (including refrigerators with and without Freon, ranges, washers, dryers,
water heaters, dishwashers, plumbing, small household appliances and other similar items,
commonly known as "white goods"); Residential wastes (including wood waste, tree branches,
scrap wood, in the aggregate not exceeding one cubic yard per Collection); and clothing. For
purposes of this Agreement, and notwithstanding any provision hereof to the contrary, Bulky
Items shall specifically include electronic equipment (including stereos, televisions, computers
and monitors, cellular phones, VCRs, microwaves and other similar items commonly known as
"brown goods" and "e -waste"), batteries, and florescent light tubes. Bulky Items do not include
car bodies, Construction and Demolition Debris or items requiring more than two persons to
remove. A single Bulky Item is intended to mean an single appliance or other item meeting the
above definition, or a single "bundle" of small items (such as tree limbs or stumps) that have
been secured together so as to be able to be lifted and moved by no more than two men. In the
event a question arises as to whether a specific item, or category of items meets the definition of
Bulky Items, City shall be responsible to determine whether said definition shall apply, which
determination shall be final and binding on the Parties.
California Code of Regulations or CCR
"California Code of Regulations" or "CCR" means the State of California Code of
Regulations. CCR references in this Agreement are preceded with a number that refers to the
relevant Title of the CCR (e.g., "14 CCR, Division 7, Chapter 12" refers to Title 14, Division 7,
Chapter 12 of the California Code of Regulations).
2.7 CalRecycle
"CalRecycle" means California's Department of Resources Recycling and Recovery.
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2.8 Cart
"Cart" means a plastic Container with a hinged lid and wheels serviced by an automated
or semi -automated process, as opposed to a manual process of lifting and dumping.
2.9 City
"City" shall mean the City of La Quinta, a municipal corporation, located in Riverside
County, California.
2.10 City Limits
"City Limits" shall mean the territorial boundaries of the City together with all
amendments and changes thereto, which boundaries are depicted on maps, incorporated herein
by reference, that are kept on file in the office of the City Clerk of the City of La Quinta, and
which are from time to time amended to reflect changes.
2.11 City Manager
"City Manager" shall mean the City Manager of the City of La Quinta or his or her
designee.
2.12 Collect/Collection
"Collect" or "Collection" shall mean to take physical possession of, transport, and
remove Solid Waste from a premises.
Commercial Edible Food Generators
"Commercial Edible Food Generators" includes Tier One Commercial Edible Food
Generators and Tier Two Commercial Edible Food Generators, or as otherwise defined in 14
CCR Section 18982(a)(7) (or successor section). For the purposes of this definition, Food
Recovery Organizations and Food Recovery Services are not Commercial Edible Food
Generators, or as otherwise specified by 14 CCR Section 18982(a)(7) (or successor section).
2.13 Commercial Premises
"Commercial Premises" means Premises upon which business activity is conducted,
including but not limited to retail sales, services, wholesale operations, manufacturing and
industrial operations, but excluding Residential Premises upon which business activities are
conducted when such activities are permitted under applicable zoning regulations and are not the
primary use of the property. Notwithstanding any provision to the contrary herein, in the
Municipal Code, or otherwise, for purposes of this Agreement Premises upon which Hotels, and
Motels are operated, and Premises upon which four or more Dwelling Units exist shall be
deemed to be Commercial Premises.
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Compostable Plastics or Compostable Plastic
"Compostable Plastics" or "Compostable Plastic" means plastic materials that meet the
ASTM D6400 standard for compostability, or as otherwise described in 14 CCR Section
18984.1(a)(1)(A) or 18984.2(a)(1)(C) (or successor section(s)).
Compost
"Compost" has the same meaning as in 14 CCR Section 17896.2(a)(4), as may be
amended from time to time.
2.14 Container
"Container" means any and all types of Solid Waste receptacles, including Carts, Bins,
and receptacles provided by Customers.
2.15 Contractor
"Contractor" shall mean Burrtec Waste and Recycling Services, LLC, the entity granted
the franchise pursuant to this Agreement, or any party permitted pursuant to the terms hereof to
become the successor or assignee thereof.
2.16 Customer
"Customer" shall mean any person receiving Solid Waste Handling Services from
Contractor within the Franchise Area.
Diversion
"Diversion" (or any variation thereof including "Divert") means activities which reduce
or eliminate Discarded Materials from Disposal, including, but not limited to, source reduction,
Reuse, salvage, Recycling, and composting.
2.17 Dwelling Unit
"Dwelling Unit" shall have the meaning set forth in the Municipal Code.
Edible Food
"Edible Food" means food intended for human consumption. For the purposes of this
Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this
Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety
requirements of the California Retail Food Code. If the definition in 14 CCR Section
18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section
18982(a)(18) (or successor section) shall apply to this Agreement.
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2.18 Effective Date
"Effective Date" shall mean July 1, 2022.
2.19 Environmental Laws
"Environmental Laws" means all federal and state statutes, county, local and City
ordinances concerning public health, safety and the environment including, by way of example
and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, 42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6901 et
seq.; the Federal Clean Water Act, 33 USC § 1251 et seq.; the Toxic Substances Control Act, 15
USC §2601 et seq.; the Occupational Safety and Health Act, 29 USC §651 et seq.; the California
Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the Carpenter -
Presley -Tanner Hazardous Substance Account Act, California Health and Safety Code §25300 et
seq.; the Porter -Cologne Water Quality Control Act, California Water Code § 13000 et seq.; the
Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5
et seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated
thereunder.
Excluded Waste
"Excluded Waste" means Hazardous Substance, Hazardous Waste, Infectious Waste,
Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste,
and toxic substances or material that Facility operator(s) reasonably believe(s) would, as a result
of or upon acceptance, Transfer, Processing, or Disposal, be a violation of local, State, or Federal
law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be
Disposed of in Class III Landfills or accepted at the Facility by permit conditions, waste that in
Contractor's reasonable opinion would present a significant risk to human health or the
environment, cause a nuisance or otherwise create or expose Contractor or City to potential
liability; but not including de minimis volumes or concentrations of waste of a type and amount
normally found in Single -Family or Multi -Family Solid Waste after implementation of programs
for the safe Collection, Processing, Recycling, treatment, and Disposal of batteries and paint in
compliance with Sections 41500 and 41802 of the California Public Resources Code.
Food Recovery
"Food Recovery" means actions to collect and distribute food for human consumption
which otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24) (or
successor section).
Food Recovery Organization
"Food Recovery Organization" means an entity that primarily engages in the collection or
receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible
Food to the public for Food Recovery either directly or through other entities, including, but not
limited to:
A. A food bank as defined in Section 113783 of the Health and Safety Code;
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B. A nonprofit charitable organization as defined in Section 113841 of the Health
and Safety code; and,
C. A nonprofit charitable temporary food facility as defined in Section 113842 of the
Health and Safety Code.
If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs
from this definition, the definition in 14 CCR Section 18982(a)(25) (or successor section) shall
apply to this Agreement.
Food Recovery Service
"Food Recovery Service" means a Person or entity that collects and transports Edible
Food from a Commercial Edible Food Generator to a Food Recovery Organization or other
entities for Food Recovery, or as otherwise defined in 14 CCR Section 18982(a)(26) (or
successor section).
Food Scraps
"Food Scraps" means all food such as, but not limited to, fruits, vegetables, meat, poultry,
seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes
fats, oils, and grease when such materials are Source Separated from other Food Scraps.
Food -Soiled Paper
"Food -Soiled Paper" means compostable paper material that has come in contact with
food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins,
pizza boxes, and milk cartons.
2.20 Food Waste
"Food Waste" means Source Separated Food Scraps, Food -Soiled Paper, and
Compostable Plastics. Food Waste is a subset of SSGCOW. Edible Food separated for Food
Recovery shall not be considered Food Waste.
2.21 Franchise Area
"Franchise Area" shall mean all Premises within the City Limits, including Premises
which may be annexed and thereby added to the City Limits following the Effective Date.
2.22 Franchise Fee
"Franchise Fee" shall mean the franchise fee set forth and more fully defined in Section
11 hereof.
Gray Container
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"Gray Container" has the same meaning as in 14 CCR Section 18982(a)(28) (or
successor section) and shall be used for the purpose of storage and Collection of Gray Container
Waste.
Gray Container Waste
"Gray Container Waste" means Solid Waste that is collected in a Gray Container as
specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section
17402(a)(6.5) (or successor section(s)). Gray Container Waste may specifically include carpet,
Non-Compostable Paper and textiles.
Green Container
"Green Container" has the same meaning as in 14 CCR Section 18982(a)(29) (or
successor section) and shall be used for the purpose of storage and collection of Source
Separated Green Container Organic Waste (SSGCOW).
2.23 Green Waste
"Green Waste" means leaves, grass, weeds, and wood materials from trees and shrubs
(not more than six (6) inches in diameter or 48 inches in length) and similar materials generated
at the Premises.
2.24 Gross Receipts
"Gross Receipts" shall mean and include all monies, fees, charges, consideration, and
revenue received, charged or imputed to Contractor and any Affiliate of Contractor, in
connection with, arising from, or in any way attributable to the Solid Waste Handling Services
carried out by or on behalf of Contractor pursuant to this Agreement. Gross Receipts includes,
without limitation, monthly Customer charges for Collection of Solid Waste, without subtracting
Franchise Fees, fees imposed and collected pursuant to this Agreement, sums collected in
connection with Temporary Services, and transportation charges. Notwithstanding anything
herein to the contrary, Gross Receipts shall not include either: (1) revenues from the sale of
salvageable or Recyclable Material, or (2) AB 939 Fees, as defined herein, paid to City.
Hauler Route(s)
"Hauler Route(s)" means the designated itinerary or sequence of stops for each
segment of the City's collection service area, or as otherwise defined in 14 CCR Section
18982(a)(31.5) (or successor section).
2.25 Hazardous Substance
"Hazardous Substance" shall mean any of the following: (a) any substances defined,
regulated or listed (directly or by reference) as "Hazardous Substances", "hazardous materials",
"Hazardous Wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as
hazardous to human health or the environment, in or pursuant to (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et
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seq.(CERCLA); (ii) the Hazardous Materials Transportation Act, 49 USC §5101, et seq.; (iii) the
Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33
USC §1251 et seq.; (v) California Health and Safety Code §§25115-25117, 25249.8, 25281, and
25316; (vi) the Clean Air Act, 42 USC §7401 et seq.; and (vii) California Water Code § 13050;
(b) any amendments, rules or regulations promulgated thereunder to such enumerated statutes or
acts currently existing or hereafter enacted; and (c) any other hazardous or toxic substance,
material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any
other applicable federal, state or local laws or regulations, including any of the Environmental
Laws, currently existing or hereinafter enacted, including, without limitation, friable asbestos,
polychlorinated biphenyl's ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-
products.
2.26 Hazardous Waste
"Hazardous Waste" means all substances defined as Hazardous Waste, acutely
Hazardous Waste, or extremely Hazardous Waste by the State of California in Health and Safety
Code §25110.02, §25115, and §25117 or in the future amendments to or recodifications of such
statutes or identified and listed as Hazardous Waste by the US Environmental Protection Agency
(EPA), pursuant to the Federal Resource Conservation and Recovery Act (42 USC §6901 et
seq.), all future amendments thereto, and all rules and regulations promulgated thereunder.
Large Event
"Large Event" means an event, including, but not limited to, a sporting event or a flea
market, that charges an admission price, or is operated by a local agency, and serves an average
of more than 2,000 individuals per day of operation of the event, at a location that includes, but
is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street
system, or other open space when being used for an event. If the definition in 14 CCR Section
18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) (or
successor section) shall apply to this Agreement.
Large Venue
"Large Venue" means a permanent venue facility that annually seats or serves an average
of more than 2,000 individuals within the grounds of the facility per day of operation of the
venue facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a venue
facility includes, but is not limited to, a public, nonprofit, or privately owned or operated
stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium,
airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other
public attraction facility. For purposes of 14 CCR, Division 7, Chapter 12 and this Agreement, a
site under common ownership or control that includes more than one Large Venue that is
contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14
CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section
18982(a)(39) (or successor section) shall apply to this Agreement.
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2.27 Multi -Family Dwelling
"Multi -Family Dwelling" means either (i) any building or lot containing five (5) or more
Dwelling Units, or (ii) any building or lot containing two or more Dwelling Units which
Contractor determines (and City agrees) must receive Solid Waste Handling Services through the
use of shared Bins, since they are not reasonably able to receive individualized Solid Waste
Handling Service through the use of Carts. Any ambiguity as to whether a Customer's Premises
qualifies as a Single Family Dwelling or Multi -Family Dwelling shall be resolved by the City
Manager whose decision shall be final.
2.28 Municipal Code
"Municipal Code" shall mean City's Municipal Code.
Non-Compostable Paper
"Non-Compostable Paper" includes, but is not limited to, paper that is coated in a plastic
material that will not breakdown in the composting process, or as otherwise defined in 14 CCR
Section 18982(a)(41) (or successor section).
Non -Organic Recyclables
"Non -Organic Recyclables" means non-putrescible and non -hazardous recyclable wastes
including, but not limited to, bottles, cans, metals, plastics, and glass, or as otherwise defined in
14 CCR Section 18982(a)(43) (or successor section). Non -Organic Recyclables are a subset of
Source Separated Recyclable Materials.
2.29 Organic Waste
"Organic Waste" means Solid Wastes containing material originated from living
organisms and their metabolic waste products including, but not limited to, food, Yard
Trimmings, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing
Paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section
18982(a)(46) (or successor section). Biosolids and digestate are as defined in 14 CCR Section
18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
Paper Products
"Paper Products" include, but are not limited to, paper janitorial supplies, cartons,
wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as
otherwise defined in 14 CCR Section 18982(a)(51) (or successor section).
Performance-based Compliance Approach
"Performance-based Compliance Approach" means the method of complying with the SB
1383 Regulations through implementation of a collection system, programs, and policies in
accordance with 14 CCR, Division 7, Chapter 12, Article 17, or as otherwise defined as
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"performance-based source separated collection service" in 18982(a)(52.5) (or successor
section), and all associated requirements.
2.30 Person
"Person" shall mean any individual, firm, association, organization, partnership,
corporation, business trust, joint venture, the United States, the State of California, the County of
Riverside, towns, cities, and special purpose districts.
2.31 Premises
"Premises" shall mean any land, building, and/or structure within the City Limits where
Solid Waste is generated or accumulated.
Printing and Writing Papers
"Printing and Writing Papers" include, but are not limited to, copy, xerographic,
watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila
envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers,
posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise
defined in 14 CCR Section 18982(a)(54) (or successor section).
Processing
"Processing" means the controlled separation, recovery, volume reduction, conversion, or
Recycling of Solid Waste including, but not limited to, organized, manual, automated, or
mechanical sorting, the use of vehicles for spreading of waste for the purpose of recovery, and/or
includes the use of conveyor belts, sorting lines, or volume reduction equipment, or as otherwise
defined in 14 CCR Section 17402(a)(20) (or successor section).
Prohibited Container Contaminants
"Prohibited Container Contaminants" means the following: (i) Discarded Materials
placed in the Blue Container that are not identified as acceptable Source Separated Recyclable
Materials for the City's Blue Container; (ii) Discarded Materials placed in the Green Container
that are not identified as acceptable SSGCOW for the City's Green Container; (iii) Discarded
Materials placed in the Gray Container that are acceptable Source Separated Recyclable
Materials and/or SSGCOW to be placed in City's Green Container and/or Blue Container; and
(iv) Excluded Waste placed in any Container.
Recycle or Recycling
"Recycle" or "Recycling" means the process of Collecting, sorting, cleansing, treating,
and reconfiguring materials for the purpose of returning them to the economic mainstream in the
form of raw material for new, Reused, or reconstituted products that meet the quality standards
necessary to be used in the marketplace. Recycling includes processes deemed to constitute a
reduction of Landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling
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does not include gasification or transformation as defined in Public Resources Code Section
40201.
2.32 Recyclable Material
"Recyclable Material" or "Recyclables" shall mean that Solid Waste discarded within the
Franchise Area which is capable of being recycled.
2.33 Residential Premises
"Residential Premises" shall mean all premises upon which Dwelling Units exist.
Notwithstanding any provision to the contrary herein, in the Municipal Code, or otherwise, for
purposes of this Agreement Premises upon which hotels, and motels are operated, and Premises
upon which four or more Dwelling Units exist shall be deemed to be Commercial Premises.
Reuse
"Reuse" or any variation thereof, means the use, in the same, or similar, form as it was
produced, of a material which might otherwise be discarded, or as otherwise defined in 14 CCR
Section 17402.5(b)(2) (or successor section).
2.34 Rolloff Box
"Rolloff Box" means Solid Waste Collection Containers of ten (10) yards or larger,
including compactors.
SB 1383
"SB 1383" means Senate Bill 1383, Chapter 395 of the Statutes of2016, approved by the
Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and
39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section
42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions
reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as
amended, supplemented, superseded, and replaced from time to time.
SB 1383 Regulations or SB 1383 Regulatory
"SB 1383 Regulations" or "SB 1383 Regulatory" refers to the Short -Lived Climate
Pollutants (SLCP) Organic Waste Reductions regulations developed by CalRecycle and adopted
in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of
14 CCR and 27 CCR.
"SB 619" mean Senate Bill 619, Chapter 508 of the Statutes of 2021, amending Section
42652.5 of the Public Resources Code.
"Self -Hauler or Self -Haul
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"Self -Hauler" or "Self -Haul" means a person, who, in compliance with all
applicable requirements of the City Code, hauls Solid Waste, Organic Waste or recyclable
material he or she has generated directly to the appropriate facility, as required by SB 1383
Regulations. Self -hauler also includes a person who Back -Hauls waste, or as otherwise defined
in 14 CCR Section 18982(a)(66) (or successor section).
Service Level
"Service Level" refers to the number and size of a Customer's Container(s) and the
frequency of Collection service, as well as ancillary services such as lock/unlock service,
Container push/pull service, etc.
2.35 Single Family Dwelling
"Single Family Dwelling" means a building or lot containing one Dwelling Unit, and for
purposes of this Agreement includes buildings and lots with more than one Dwelling Unit where
such Dwelling Units are determined by the City to be reasonably able to receive individualized
Solid Waste Handling Service and the number of Dwelling Units on the premises is less than
four (4) (i.e., properties commonly referred to as a duplex or a triplex.) Any ambiguity as to
whether a Customer's Premises qualifies as a Single Family Dwelling or Multi -Family Dwelling
shall be resolved by City.
2.36 Solid Waste
"Solid Waste" shall mean and include all discarded putrescible and nonputrescible solid,
semisolid, and liquid wastes, including garbage, trash, Refuse, rubbish, construction waste,
industrial waste, commercial Solid Waste, Bulky Items, and any other discarded solid, semisolid,
and liquid waste permitted to be disposed of at a Class III landfill and which are included within
the definition of "Nonhazardous Solid Waste" set forth in the California Code of Regulations, as
it may be amended from time to time. Solid Waste does not include hazardous (Class I) waste,
low-level radioactive waste, untreated medical waste, or Special Wastes as defined herein.
2.37 Solid Waste Handling Services
"Solid Waste Handling Services" means the Collection, transfer, transport, recycling,
processing, and disposal of Solid Waste.
Source Separated
"Source Separated" means materials, including commingled Recyclable materials, that
have been separated or kept separate from the Solid Waste stream, at the point of generation, for
the purpose of additional sorting or Processing those materials for Recycling or Reuse in order to
return them to the economic mainstream in the form of raw material for new, reused, or
reconstituted products which meet the quality standards necessary to be used in the marketplace,
or as otherwise defined in 14 CCR Section 17402.5(b)(4) (or successor section). For the purposes
of the Agreement, Source Separated shall include separation of materials by the Generator,
Property Owner, Property Owner's employee, property manager, or property manager's
employee into different Containers for the purpose of Collection such that Source Separated
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materials are separated from Gray Container Waste and other Solid Waste for the purposes of
Collection and Processing.
Source Separated Blue Container Organic Waste or SSBCOW
"Source Separated Blue Container Organic Waste" or "SSBCOW" means Source
Separated Organic Wastes that can be placed in a Blue Container that is limited to the collection
of those Organic Wastes and Non -Organic Recyclables as defined in Section 18982(a)(43), or as
otherwise defined by Section 17402(a)(26.7) (or successor section.
Source Separated Green Container Organic Waste or SSGCOW
"Source Separated Green Container Organic Waste" or "SSGCOW" means
Source Separated Organic Waste that can be placed in a Green Container that is specifically
intended for the separate collection of Organic Waste by the generator, excluding Source
Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles.
Source Separated Recyclable Materials
"Source Separated Recyclable Materials" means Source Separated Non -Organic
Recyclables and SSBCOW.
2.38 Special Wastes
"Special Wastes" shall mean wastes other than Solid Waste including sewage, sludge,
industrial sludge, asbestos, auto bodies, tires, used motor oil, hazardous waste, Animal Waste,
explosive substances, radioactive materials, and other materials which may not be disposed of at
a Class III landfill or which require special handling.
Standard Compliance Approach
"Standard Compliance Approach" means the method for complying with the SB 1383
Regulations through implementation of a collection system pursuant to 14 CCR, Division 7,
Chapter 12, Article 3, and all associated program and policy requirements.
2.39 Temporary Service
"Temporary Service" shall mean Solid Waste Handling Services provided by Contractor
on an as -needed and temporary basis to any Premises within the City in conjunction with
construction, demolition, cleanup or other projects, and by use of temporarily placed Bins or
Rolloff Boxes.
2.40 Term
"Term" shall have the meaning ascribed in Section 6 of this Agreement.
Tier One Commercial Edible Food Generator
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"Tier One Commercial Edible Food Generator" means a Commercial Edible Food
Generator that is one of the following, each as defined in 14 CCR Section 18982 (or successor
section):
A. Supermarket.
B. Grocery Store with a total facility size equal to or greater than 10,000 square feet.
C. Food Service Provider.
D. Food Distributor.
E. Wholesale Food Vendor.
If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food
Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) (or
successor section) shall apply to this Agreement.
Tier Two Commercial Edible Food Generator
"Tier Two Commercial Edible Food Generator" means a Commercial Edible Food
Generator that is one of the following, each as defined in 14 CCR Section 18982 (or successor
section):
A. Restaurant with 250 or more seats, or a total facility size equal to or greater than
5,000 square feet.
B. Hotel with an on-site food facility and 200 or more rooms.
C. Health facility with an on-site food facility and 100 or more beds.
D. Large Venue.
E. Large Event.
F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility
size equal to or greater than 5,000 square feet.
G. A local education agency with an on-site food facility.
If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food
Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) (or
successor section) shall apply to this Agreement.
Yard Trimmings
"Yard Trimmings" means types of SSGCOW resulting from normal yard and
landscaping installation, maintenance, or removal that the Generators Source Separate and set
out in Green Containers for Collection for the purpose of Processing by the Contractor.
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SECTION 3.
GRANT OF EXCLUSIVE FRANCHISE FOR SOLID WASTE
HANDLING SERVICES FROM ALL RESIDENTIAL AND
COMMERCIAL PREMISES, AND FOR PROVIDING
TEMPORARY SOLID WASTE HANDLING SERVICE
3.1 Scope of Franchise
Except as hereinafter expressly set forth, City hereby grants to Contractor and Contractor
hereby accepts from City, for the Term hereof, the exclusive contract, right, and privilege to
Collect, transport, and dispose of all Solid Waste generated or accumulated within the Franchise
Area. The exclusive franchise, right and privilege to provide Solid Waste Handling Services
within City granted to Contractor by this Agreement shall be interpreted to be consistent with all
applicable state and federal laws, now in effect and adopted during the term of this Agreement,
and the scope of this Agreement shall be limited by all applicable current and developing laws
and regulations. In the event that future interpretations of current law or future enactments limit
the ability of City to lawfully grant Contractor the scope of services as specifically set forth
herein, Contractor agrees that the scope of this Agreement will be limited to those services and
materials which may be lawfully provided, and that City shall not be responsible for any lost
profits claimed by Contractor as a result thereof.
3.2 Matters Excluded from Scope of Franchise
Notwithstanding any other provisions set forth in this Agreement to the contrary, the
exclusive franchise granted herein shall exclude the Collection, transportation, recycling, and
disposal of:
(A) any Solid Waste otherwise within the scope of this Agreement which is
transported by a Self Hauler as that term is used in the Municipal Code, or any other City
ordinance, resolution, regulation or policy, as such may be adopted or amended from time to
time;
(B) the sale or donation of Recyclable Material by the person or entity that generated
such Recyclable Material (the "Generator") to any person or entity other than Contractor;
provided, however, to the extent permitted by law, if the Generator is required to pay monetary
or non -monetary consideration for the Collection, transportation, transfer, or processing of
Recyclable Material, the fact that the Generator receives a reduction or discount in price (or in
other terms of the consideration the Generator is required to pay) shall not be considered a sale
or donation;
(C) any Solid Waste otherwise within the scope of this Agreement which is Collected
or transported to a disposal or recycling facility by City employees in the course and scope of
their employment with City;
(D) the Collection, transportation, or disposal of Hazardous Waste, biohazardous
waste, untreated medical waste, infectious waste, Animal Waste, or other materials which do not
constitute Solid Waste;
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(E) the Collection, transportation, and disposal of Construction and Demolition Waste
by a contractor, handyman, repairman, or other similar service provider, as an incidental part of
the services provided to its Customers, rather than as a hauling service, provided that such waste
is not Collected or transported by a third party hired for the primary purpose of Collecting and
transporting said materials;
(F) the Collection, transportation, and disposal of Green Waste and related Solid
Waste by a gardener, or landscaper, as an incidental part of the gardening or landscaping services
provided to its Customers, rather than as a hauling service provided that such Solid Waste is not
collected or transported by a third party hired for the primary purpose of Collecting and
transporting said materials;
(G) Solid Waste Handling Services provided by any Person having a legal right to
continue doing so, pursuant to Public Resources Code Section 49520, et. seq., or otherwise, as
long as and to the extent such legal right continues to exist; except that to the degree any territory
in which Contractor has a franchise granted by another governmental entity is annexed into City
during the Term, Contractor agrees the provisions of this Agreement shall apply to such territory
and further acknowledges that this Agreement constitutes any notice required by the Public
Resources Code in connection therewith.
SECTION 4.
ENFORCEMENT OF EXCLUSIVITY
Contractor shall be responsible for enforcing the exclusivity of this Agreement. City
shall have the right to enforce the exclusivity provisions hereof if, in its absolute and sole
discretion, it chooses to do so, but City shall have no obligation to do so for the benefit of
Contractor or otherwise. City additionally shall have the right, but not the obligation, to request
that Contractor enforce the exclusivity provisions hereof. Contractor shall have an affirmative
obligation to enforce such exclusivity provisions when requested to do so by City. Should City
take administrative, law enforcement, or other legal action to protect Contractor's exclusive
rights, or otherwise enforce the exclusivity of this Agreement (including the adoption of any
resolution, ordinance, a public outreach and/or education program) intended to facilitate the
enforcement of the exclusive rights granted herein, Contractor shall actively participate in, and
fund, the same, and shall reimburse City for its all administrative, law enforcement, or other
legal costs and fees related to any such action unless Contractor provides advance written notice
to City of its opposition to such activity.
SECTION 5.
ACCEPTANCE; WAIVER
Contractor agrees to be bound by and comply with all the requirements of this
Agreement. Contractor waives Contractor's right to change the terms of this Agreement under
Federal, State, or local law, or administrative regulation. Contractor waives any right or claim to
serve the City or any part of the City under any prior grant of franchise, contract, license, or
permit issued or granted by any governmental entity including any right under Section 49520 of
the Public Resources Code. Additionally, by and upon the execution of this Agreement,
Contractor agrees to the termination of the Prior Agreement as of the Effective Date, agrees to
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waive any and all rights under the Prior Agreement, and agrees to release and hold the City
harmless from any of the City's obligations thereunder (excepting, however, the right to
compensation for services provided at the rates approved by City as of the Effective Date);
provided, however, nothing contained in this provision is intended to or shall relieve Contractor
from any obligation existing under the Prior Agreement pertaining to insurance, indemnification,
or other legal obligations to City or Customers (as opposed to obligations to provide service
pursuant to the terms thereof), or from any obligation set forth in the Prior Agreement which are
called out as surviving the termination thereof, and all such obligations, including specifically
those indemnification obligations relating to Environmental Laws, general liability, and AB 939
shall survive the termination of the Prior Agreement.
SECTION 6.
TERM
The term of this Agreement (the "Term") shall be for the period of time commencing on
July 1, 2022, and ending at midnight on June 30, 2037, unless this Agreement is terminated
sooner pursuant to Section 18 hereof, or otherwise.
SECTION 7.
CONDITIONS TO EFFECTIVENESS OF AGREEMENT
The satisfaction of each and all of the conditions set out below, each of which may be
waived in whole or in part by City in writing, is a condition precedent to the effectiveness of this
Agreement, and a condition of Contractor's continued right to the benefits conveyed herein:
7.1 Accuracy of Representation
All representations and warranties made by Contractor and set forth in this Agreement
shall be accurate, true, and correct on and as of the Effective Date of this Agreement.
7.2 Absence of Litigation
There shall be no litigation pending in any court challenging the award of this Franchise
to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance.
7.3 Furnishing of Insurance, Bond, Letter of Credit, and Corporate Guarantee
Contractor shall have furnished evidence of the insurance, bonds and letter of credit
required by Sections 14 and 15, and shall comply with all ongoing requirements relating thereto,
and shall provide the Corporate Guarantee required by Section 29.9.
7.4 Effectiveness of City Council Action
City's Resolution approving this Agreement shall have become effective pursuant to
California law.
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7.5 Payment of Fees and Costs
Contractor shall have made payment to City of all fees, costs and other payments due as
of the Effective Date as more fully set forth in Section 11.
SECTION S.
SOLID WASTE HANDLING SERVICES
PROVIDED BY CONTRACTOR
8.1 General
8.1.1 Equipment
Contractor shall furnish all labor, supervision, materials, supplies, and equipment
necessary to provide for all services required by the terms of this Agreement.
8.1.2 Performance Standards
Contractor shall perform Solid Waste Handling Services as required hereunder in
a workmanlike manner consistent with good housekeeping standards and all relevant provisions
of the Municipal Code. Contractor's equipment shall be water -tight, leak proof and maintained
in good repair with the goal of preventing any leaks or spills onto public or private property, and
eliminating objectionable odors. Contractor shall immediately clean up any spills from its
equipment of which it becomes or is made aware.
8.1.3 Noise and Disruption
Contractor shall perform Solid Waste Handling Services as required hereunder in
such a manner as to minimize noise and other disruptive impacts including, without limitation,
those upon traffic. Contractor shall use its best efforts to coordinate its Collection schedules
such that street sweeping on any given street shall occur the business day following Collection of
Solid Waste by Contractor.
8.1.4 Collection Times
All Solid Waste and Recyclable Material shall be Collected between the hours of
5:30 a.m. to 6:00 p.m., Monday through Saturday.
8.1.5 Collection Schedule
Contractor shall establish Collection routes and a Collection schedule which shall
be approved by the City Manager such that Customers at all Residential and Commercial
Premises within the City will have not less than one established Collection day each week.
Contractor shall provide notice to each Customer of its established Collection day(s), and shall
provide at least one week's notice to Customers of any change in their established Collection
day(s). Notwithstanding any provision herein to the contrary, should any established Collection
date fall on a legal holiday, or on any other holiday which is observed by either a landfill or other
lawful disposal site to which Solid Waste is taken for disposal, or a recycling facility to which
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Recyclable Material is taken, Contractor shall provide for Collection one (1) day later during the
pick-up week, and the regular pick-up schedule shall be resumed the following week. A pick-up
week shall be defined as Monday through Saturday. Contractor may not change its established
Collection schedules without obtaining the prior written consent of the City Manager.
Contractor does not typically provide Collection for Residential Premises on Mondays. If a
homeowner's association desires Collection for the entire community it governs to occur on a
Monday, than Contractor may include a surcharge for doing so in an amount that does not
exceed the maximum rate set forth on Exhibit A.
8.1.6 Commingling of Routes
Contractor shall not during its Collection process commingle Solid Waste
Collected hereunder with Solid Waste Collected in any other City, or on behalf of any other
entity operating or existing within City that is not subject to this Agreement, and is specifically
prohibited from combining Collection routes related to services provided pursuant to this
Agreement with Collection routes for other jurisdictions it may service. Notwithstanding the
forgoing, Contractor may combine Collection routes dedicated exclusively to the Collection of
Recyclable Materials Collected in Recycling Carts, Recycling Crates, or Recycling Bins, or
Collection routes dedicated exclusively to the Collection of Organic Waste Collected in Green
Carts, with Collection routes for other jurisdictions.
8.1.7 Replacement of Containers
Contractor shall, whenever possible, place Carts or Customer provided Containers
in the street gutter, adjacent to the curb upon completing Collection. Contractor shall replace all
Bins in the location upon the property of each Customer utilizing Bins designated for storage of
Bins, and shall secure gates, doors, and/or enclosures when applicable.
8.1.8 Contractor's Containers
(A) Contractor's Containers shall meet the minimum standards set forth on the
attached Exhibit B.
(B) Contractor shall be responsible to maintain and replace, as necessary, all of its
Containers.
(C) All Contractor's Containers shall be maintained by Contractor in good repair, and
any question as to the meaning of this standard shall be resolved by the City Manager.
(D) All Carts shall be maintained by Contractor in a watertight condition, as shall all
Bins which are used primarily for the disposal of Solid Waste containing liquids.
(E) Carts utilized in connection with the Prior Agreements may continue to be utilized
for services hereunder provided they are in good repair, meet the requirements set forth in
Exhibit B, and are replaced by Contractor with new Carts at no charge if requested by either a
Customer or City.
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(F) Contractor shall replace any damaged Carts at no charge to Customers, provided,
however, Contractor shall be entitled to charge Customers for the replacement of any Cart that
has been damaged by a Customer, ordinary wear and tear excepted, so long as such charges do
not exceed those set forth in Exhibit A.
(G) Contractor shall replace any lost or stolen Carts within three business days, at no
cost to Customers. Contractor shall only be obligated to replace one lost or stolen Cart annually
at no charge. For each replacement of a lost or stolen Cart greater than one annually, Contractor
shall be entitled to charge Customers an amount that does not exceed that set forth in Exhibit A.
(H) Contractor shall at Customer's request annually refurbish, replace, and steam
clean as necessary all Bins and Rolloff Boxes at no charge to Customers. Additional steam
cleaning shall be provided to any Customers who request it at a charge not to exceed Seventy
five dollars ($75.00) per Bin, or alternatively Contractor shall provide a replacement Bin/Rolloff
Box to Customers at no charge.
(I) Contractor shall remove any graffiti that appears on its Containers within twenty-
four (24) hours after becoming aware of it.
(J) All Bins and Rolloff Boxes shall be kept freshly painted in a uniform fashion and
shall be identified with Contractor's name and phone number in letters not less than three inches
high on its exterior so as to be visible when the Container is placed for use.
(K) At a Customer's request, Contractor shall provide Bins with locking lids and
locks.
(L) On or before July 1, 2022 , Contractor shall place a label on the body or lid of
each new Container that has been provided to a Customer that includes language or graphic
images, or both, that indicate the primary materials accepted and the primary materials
prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container
Contaminants for each Container.
(M) No later than January 1, 2026, Contractor shall provide all Customers with
Collection Containers that comply with the Container color requirements specified in this
Agreement or as otherwise specified in the SB 1383 Regulations. If an existing Container breaks
or is otherwise rendered non-functional on or after January 1, 2022, the Contractor shall replace
the non-functional Container with a Container that complies with the color requirements of this
Agreement. Notwithstanding this Section, the Contractor is not required to replace functional
Containers, including Containers purchased prior to January 1, 2022, that do not comply with the
color requirements of this Agreement prior to the end of the useful life of those Containers, or
prior to January 1, 2036, whichever comes first.
(N) Upon rollout of the Residential Food Waste program, Company shall provide to
all Residential and Multi -Family Dwelling Units kitchen pails designed to contain Food Waste
prior to placement in the Customer's Organic Materials Cart on a requested basis, and at no
additional charge. Company shall also subsequently provide new Customers with information
regarding the residential food waste collection program and the availability of a kitchen pail. If a
Customer requests an additional pail or requests a replacement pail, Company will provide the
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pail at the rate of $15 per pail. The Kitchen Pail cost shall increase annually by CPI in
accordance with Section 24.
8.1.9 Missed Pick-ups
In case of a missed pick-up called in by a Customer, Contractor shall Collect
Solid Waste and Recyclable Material from such Customer no later than the next day of the pick-
up week following the date of the call. Records of the addresses of all missed pick-ups shall be
maintained by Contractor, and shall be reported to City upon request. If Contractor demonstrates
to the satisfaction of the City Manager a pattern of ongoing late "set -outs" by a given Customer,
missed pick-ups resulting from late set -outs by that Customer shall not be counted as missed
pick-ups in evaluating Contractor's performance hereunder.
8.1.10 Record of Non -collection
When Contractor refuses to Collect any Solid Waste deposited for Collection,
Contractor shall leave a tag at least 2" by 6" in size, indicating the reason for Contractor's refusal
to do so. This information may be either handwritten or left by means of a check system (i.e.,
checking off boxes on a preprinted form). The tag shall provide Contractor's business name and
its local telephone number and shall be securely fastened to the Container or the article refused.
Contractor shall maintain a record of all such taggings at its place of business. Such record shall
contain the date of such notice, street address, reason for non -collection, and a summary of any
communications between Contractor and the Customer involved. Such notice shall be retained
so that it may be conveniently inspected by representatives of City upon request. In addition to
tagging un -Collected Containers, Contractor shall send a written notice to any Customer at a
Commercial Premises whose Container is not Collected explaining the reason for the non -
Collection, and records of such correspondence shall be maintained in the same manner as noted
above with regard to tags.
8.2 Residential Solid Waste Handling Service
8.2.1 Single Family Dwellings — Automated Collection
Contractor shall provide each Customer at a Single Family Dwelling with one (1)
ninety-five (95) gallon Cart designated for the Collection of mixed Solid Waste (a Refuse Cart),
and shall Collect all Solid Waste placed therein for Collection not less than once per week using
an automated Collection system at rates that do not exceed the maximum rates set forth in
Exhibit A. Contractor shall also, at no additional charge, Collect Solid Waste which a Customer
may occasionally place adjacent to their Refuse Cart(s) in bags or boxes for Collection. Upon
request from any Customer at a Single Family Dwelling, Contractor shall provide such Customer
with one or more additional Refuse Carts at no charge; provided, however, Contractor's monthly
rate for Solid Waste Handling Services to such Customers may be increased on a per Refuse Cart
basis in an amount that that does not exceed the maximum rates set forth in the attached
Exhibit A. Any Customer requesting a smaller Refuse Cart shall be provided with their choice
of either a sixty-five (65) gallon or thirty-five (35) gallon Refuse Cart by Contractor instead of
the standard ninety-five (95) gallon Cart noted above. Wherever feasible, Customers shall be
directed to place Carts for Collection in the street gutter, against the curb. If a Customer and
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Contractor cannot agree upon a Collection location, or if City determines the selected location to
cause safety or other concerns, City may make the final determination of the Collection location.
8.2.2 Backyard Service
Contractor shall provide "Backyard Service" to all Customers who request it.
This service shall require Contractor to use its own forces to bring a Customer's Carts (or, in the
case of Manual Service, the Customer's Containers and Recycling Crates) from the Customer's
backyard, side yard, or such other location at which the Customer's Containers are regularly
stored, to Contractor's Collection Vehicle; and, after disposal of the contents thereof, returning
said Containers to the location where they are regularly stored. Backyard Service shall be
limited to moving one Refuse Cart, one Recycling Cart, and one Organics Cart provided by
Contractor a distance of not to exceed 60 feet in each direction. Any Customer who has a
DMV issued NI -Permanent disabled placard, and any elderly person who demonstrates to the
reasonable satisfaction of Contractor an inability to transport his/her Collection Container to the
curb, shall be entitled to receive Backyard Service at no additional charge. Any other Customer
who requests Backyard Service may be charged an additional charge for such service that does
not exceed that set forth in the attached Exhibit A. In addition, Contractor may impose an
additional charge not exceeding that set forth on Exhibit A for each Cart or Customer provided
Container in excess of those noted above required to be moved as part of any Customer's
Barkyard Service. Any dispute regarding a Customer's eligibility for Backyard Service at no
charge shall be resolved by the City Manager.
8.2.3 Single Family Dwellings — Bin Collection
Contractor may provide Customers at Single Family Dwellings who so request
with Bins in place of Refuse Carts, subject to City approval, provided the use of Bins at the
property in question complies with any and all applicable policies, rules and/or regulations of
City (including any such regulations as may be adapted from time to time applicable to screening
and storage.) In addition, if a homeowner's association governing a gated community advises
Contractor that it wishes its entire community to receive Solid Waste Handling Services utilizing
Bins rather than Carts, and upon approval of such request by City, Contractor shall provide Solid
Waste Handling Services to all Customers in such community through the use of Bins.
Contractor shall not be required to provide Refuse Carts to Customers receiving service utilizing
Bins as provided herein.
8.2.4 Recycling Program for Single Family Dwellings Using Carts
Contractor shall provide each Customer at a Single Family Dwelling with one (1)
ninety-five (95) gallon Cart designated for the Collection of Recyclables (a Recycling Cart) at no
additional charge. Upon request from any Customer at a Single Family Dwelling, Contractor
shall provide such Customer with one or more additional Recycling Carts at the rates set forth in
Exhibit A.. Any Customer requesting smaller Recycling Carts shall be provided with their
choice of either sixty-five (65) gallon or thirty-five (35) gallon Recycling Carts by Contractor
instead of the standard ninety-five (95) gallon Cart noted above. Contractor shall Collect
Recyclable Material placed in Recycling Carts for Collection from each Customer at a Single
Family Dwelling on the same day as such Customer's Refuse Cart is Collected. Customers shall
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be directed to place Recycling Carts in the same location for Collection as Refuse Carts. At a
minimum the following materials shall be allowed to be deposited by Customers for Collection
in Recycling Carts: aluminum cans; glass jars and bottles; bi-metal, and tin cans; empty aerosol
containers; PET plastic; HDPE plastic; plastics types 3 — 7; plastic bags, shrink wrap, plastic toys
and tools, and other plastic materials (if readily identifiable as being recyclable); juice boxes and
milk cartons (aseptic packaging, Tetra Pak° and waxed cardboard); coat hangers and metal foil;
newspaper; mixed paper (e.g., ledger, computer, junk mail, magazines, paperback books cereal
boxes, envelopes, paper shopping bags and non-metallic wrapping paper); corrugated cardboard;
and telephone books. Customers at Single Family Dwellings receiving Collection in Bins shall
receive either a Recycling Cart or a specially designated Bin for the Collection of at least the
above noted materials.
8.2.5 Recycling Program for Single Family Dwellings Using Bin Service
Contractor shall provide all Customers at Single Family Dwellings that utilize
Bins for Collection of Solid Waste with one ninety-five (95) gallon Recycling Cart for Collection
of Recyclable Material at no extra charge. Any Customer requesting a smaller Recycling Cart
shall be provided with their choice of either a sixty-five (65) gallon or thirty-five (35) gallon
Recycling Cart by Contractor instead of the standard ninety-five (95) gallon Cart noted above.
Any Customer who so requests, shall be given a Recycling Bin instead of a Recycling Cart and
may be charged at rates that do not exceed the maximum rates for commercial bin recycling set
forth in Exhibit A.
8.2.6 Organic Waste Program for Single Family Dwellings Using Carts
Contractor shall provide all Customers at Single Family Dwellings to whom it provides
Refuse Carts, with a ninety-five (95) gallon Cart for Collection of commingled Organic Waste (a
"Organic Waste Cart") at no additional charge. Contractor will make available a second Organic
Waste Cart at the rate set forth in Exhibit A to Customers who regularly recycle more than will
fit into their existing Organic Waste Cart(s). Any Customer requesting a smaller Organic Waste
Cart shall be provided with their choice of either a sixty-five (65) gallon or thirty-five (35) gallon
Organic Waste Cart by Contractor instead of the standard ninety-five (95) gallon Cart noted
above. Contractor shall Collect Organic Waste placed in Organic Waste Carts for Collection
from each Customer on the same day as such Customers' Refuse Cart is Collected. Customers
shall be directed to place Organic Waste Carts in the same location for Collection as Refuse
Carts. Contractor shall provide City with the name, address, and contact person for all gated
residential communities in City.
8.2.7 Organic Waste Program for Single Family Dwellings Using Bin Service
Contractor shall provide all Customers at Single Family Dwellings that utilize
Bins for Collection of Solid Waste, Organic Waste recycling services with one sixty-five (65)
gallon Organic Waste Cart for Collection of Organic Waste at no extra charge. Additional
Organic Waste Carts will be charged at the rates set forth in Exhibit A.
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8.2.8 Multi -Family Dwelling Organic Waste Program
Contractor shall provide all Customers at Multi -Family Dwellings with one
ninety-five (95) gallon Organic Waste Cart for Collection of Organic Waste at no extra charge.
Any Customer who so requests, shall be given a smaller Organic Waste Cart or additional
Organic Waste Carts at no additional charge. Additional Organic Waste Carts will be charged at
the rates set forth in Exhibit A.
8.2.9 Use of Bins for Multi -Family Dwelling Customers
Contractor shall supply Multi -Family Dwellings with Bins meeting the minimum
standards set forth in Exhibit B for Solid Waste Handling Services ("Refuse Bins"). Contractor
shall provide not less than one (1) Refuse Bin for every ten (10) Dwelling Units located at each
Multi -Family Dwelling, to be Collected not less than one time per week. Alternatively, if space
constraints make this impractical, the City Manager may approve the use of a lesser number of
Refuse Bins if they are Collected with a sufficient frequency to ensure public nuisance
conditions do not exist. The size of Refuse Bins utilized, and the frequency of their Collection,
shall be mutually agreed upon by Contractor and its Customers, except that Collection shall
occur not less than one time per week and City shall have the right to impose minimum
requirements for Bin sizes and more frequent Collection should it determine such action is
needed to protect public health, safety and welfare.
8.2.10 Multi -Family Dwelling Recycling Program
Contractor shall provide specially designated Bins for recycling (Recycling Bins)
at all Multi -Family Dwellings. Contractor shall provide not less than one Recycling Bin for
every twenty (20) Dwelling Units located at each Multi -Family Dwelling. Contractor shall
Collect Recyclable Material placed in Recycling Bins for Collection from each Customer once
per week, unless the management of the Multi -Family Dwellings requests and authorizes
Collection of Recycling Bins more than once per week. If warranted by specific circumstances
at any given Multi -Family Dwelling, Recycling Carts may be utilized instead of Recycling Bins,
and the minimum number of Recycling Bins/Carts may be adjusted. Multi -Family Dwellings
which require Recycling Bins, Carts and/or Rolloff Box for Collection of Recyclable Material
may be charged at rates that do not exceed the maximum rates for commercial bin recycling,
Cart Recycling or rolloff boxes set forth in Exhibit A.
At a minimum, all residents of a Multi -Family Dwelling shall have access to a
refuse recycling program, and any permitted adjustments to the required program (including the
use of Recycling Carts and adjustments to the minimum number of Recycling Bins/Carts) shall
be subject to approval by the City Manager. At a minimum, the following materials shall be
allowed to be deposited by Customers for Collection in Recycling Bins/Carts: aluminum cans;
glass jars and bottles; bi-metal, and tin cans; empty aerosol containers; PET plastic; HDPE
plastic; plastics types 3 — 7; plastic bags, shrink wrap, plastic toys and tools, and other plastic
materials (if readily identifiable as being recyclable); juice boxes and milk cartons (aseptic
packaging, Tetra Pak° and waxed cardboard); coat hangers and metal foil; newspaper; mixed
paper (e.g., ledger, computer, junk mail, magazines, paperback books cereal boxes, envelopes,
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paper shopping bags and non-metallic wrapping paper); corrugated cardboard; and telephone
books.
In addition to the foregoing paragraph, Contractor shall provide a source -
separation recycling program to all Premises with Multi -Family Dwellings (the "Multi -Family
Dwelling Recycling Program") that meets the standards required under AB 341 and SB 1383.
Contractor shall assist the City in identifying Multi -Family Dwelling Customers that are not in
compliance with the recycling requirements set forth in AB 341 and SB 1383. Contractor shall
provide periodic on-site visits to such Premises to offer and promote recycling services as
required, attempt to resolve any logistical detriments to providing these services, and notify and
request assistance from the City for potential follow up action where there is a repeated refusal to
implement Collection services for Recyclable Material. City agrees to provide reasonable
assistance to Contractor, which may include adding its name to materials prepared for
distribution to Customers regarding AB 341 and SB 1383 requirements, consideration of
ordinances which may assist with gaining compliance with AB 341 and SB 1383 requirements,
and occasional participation by City personnel in meetings with Customers who repeatedly
refuse to implement Contractor's Multi -Family Dwelling Recycling Program. Contractor shall
be responsible for ensuring that its Multi -Family Dwelling Recycling Program, combined with
its other programs, enables it to achieve the requirements of AB 341, SB 1383 and other
recycling provisions in this Agreement, and Contractor may be required to modify its program
from time to time, at no additional cost to the City or Multi -Family Dwelling Customers, as may
be necessary to meet requirements under AB 341 and SB 1383. Contractor shall produce, keep
current, and provide public information specifically outlining its Multi -Family Dwelling
Recycling Program, which shall specifically include the annual publication and distribution of a
brochure describing this service to all applicable Customers in City. Contractor may charge
Customers for services provided pursuant to its Multi -Family Dwelling Recycling Program that
require Recycling Bins, Carts and/or Rolloff Box for Collection of Recyclable Material at rates
that do not exceed the maximum rates for commercial bin recycling, Cart Recycling or rolloff
boxes set forth in Exhibit A.
8.2.11 Residential Bulky Item Service
Contractor shall provide unlimited Bulky Item Collection services to residents at
all Single Family Dwellings and Multi -Family Dwellings, serviced using residential carts, in City
on an on-call basis. Collection of up to four (4) Bulky Items shall occur on a Customer's regular
Collection day at no charge if the Customer provides 48 hours advance notice of the desire for
this service. Contractor may charge an amount not exceeding that set forth in Exhibit A for each
Bulky Item in excess of four (4) Collected on a Customer's regular Collection day, or for any
Bulky Item Collection requested for a day other than on a Customer's regular Collection Day.
Contractor shall produce, keep current, and provide public information specifically outlining its
Bulky Item Collection service, which shall specifically include the annual publication and
distribution during the month of October, or other month as agreed, of a brochure describing this
service to residents of all Single Family and Multi -Family Dwellings in City. The County of
Riverside may give to the City a disposal credit for participating in the Bulky Item program.
Contractor will be entitled to receive from City any said credit from the County of Riverside
relating to Bulky Item clean up services.
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8.2.12 Bulky Item Diversion
Bulky Items Collected pursuant to this Agreement may not be landfilled until the
following hierarchy of diversion efforts has been followed by Contractor:
a. Reuse as is (if energy efficient)
b. Disassemble for reuse or Recycling
c. Recycle, Transformation, other means of diversion
d. Disposal
This hierarchy is intended to preclude the use of front or rear loading packer
vehicles for Bulky Items unless the compaction mechanism is not used to compact the Bulky
Items. The disposition of Bulky Items shall be tracked by Contractor and this information shall
be included in Contractor's quarterly reports to City.
8.2.13 Proper Handling of Bulky Items
Contractor shall properly handle all materials required to be collected as Bulky
Items, including specifically items that require special handling pursuant to the Environmental
Laws, such as materials that constitute "e -waste."
8.2.14 Residential Sharps Collection Program
Contractor shall design a program for the collection of used needles (the "Sharps
Collection Program") that the City Manager finds satisfactory and approves. Contractor shall be
responsible to ensure the Sharps Collection Program complies with all applicable laws and
regulations. It is anticipated that the Sharps Collection Program at a minimum will allow for
Customer's to mail used needles to a specific collection location, in specialized packaging
provided by Contractor, and/or deliver used needles to a location in or near City designated by
Contractor. Once approved, Contractor shall implement the Sharps Collection Program at no
cost to City residents.
8.2.15 Residential Non -Controlled Medication Collection Program
On or before November 1, 2016, Contractor shall design and present a program to
City for the collection of unused non -controlled medicines (the "Non -Controlled Medication
Collection Program") that the City Manager finds satisfactory and approves. Contractor shall be
responsible to ensure the Non -Controlled Medication Collection Program complies with all
applicable laws and regulations. It is anticipated that the Non -Controlled Medication Collection
Program at a minimum will allow for Customer's to drop off unused medication (excepting
controlled substances) to a specific Collection location, in specialized packaging provided by
Contractor, and/or deliver unused medication (excepting controlled substances) to a location in
or near City designated by Contractor. If City desires to implement the proposed Non -
Controlled Medication Collection Program Contractor shall meet and confer in good faith with
City to attempt to arrive at agreeable rates. As part of any meet and confer process hereunder,
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Contractor shall provide all financial information related to the proposed program which City
reasonably deems necessary to evaluate the actual program costs and profits proposed by
Contractor.
8.2.16 [Intentionally Omitted]
8.2.17 Residential Used Oil and Oil Filter Collection Program
Contractor shall Collect, at no additional charge, used oil and used oil filters
placed for Collection by Customers at Single Family Dwellings on their regular Collection Day.
Contractor may impose requirements for this program to be followed by Customers, including
requirements related to the proper containerization of oil placed for Collection, provided any
such requirements shall be subject to City approval. Customers may also deliver used oil and oil
filters to Contractor's yard in Palm Desert at no charge.
8.3 Commercial Solid Waste Handling Services
8.3.1 Commercial Bins and Rolloff Boxes
Contractor shall provide all Customers at Commercial Premises ("Commercial
Customers") with at least one Bin and/or Rolloff Box for Collection of mixed Solid Waste, and
shall Collect all Solid Waste placed therein for Collection not less than once per week, at rates
that do not exceed the maximum rates set forth in Exhibit A. Commercial Customers
subscribing to mixed Solid Waste Collection Services will automatically be enrolled in the
Recycling and Organic Collection Programs unless a Waiver has been granted by City.
Contractor shall provide additional Containers to Customers and shall provide additional
Collections upon request, or as may be required by City's Municipal Code, health and safety
requirements, or by the City Manager, and may charge rates for such services which do not
exceed the maximum rates set forth in Exhibit A. Bins and Rolloff Boxes shall be Collected by
Contractor from the location upon each Customer's property designated for their storage, and
replaced to that location with gates and/or doors secured, as applicable, after Collection is
completed, unless different arrangements are agreed upon by the Customer and Contractor.
8.3.2 Commercial Carts
As an alternative to the requirements of Section 8.3.1, Contractor shall offer
Collection in Refuse Carts or Recycling Carts to Commercial Customers that do not have space
for, or do not generate enough waste to require the use of Bins for Collection. Rates for
Customers receiving such service shall not exceed the maximum rates set forth on Exhibit A. If
Contractor and Customer have a disagreement as to whether a Refuse Cart is appropriate, or if
City determines the Collection in a Refuse Cart causes health and safety or other concerns, City
shall make the final determination as to whether Collection in a Refuse Cart may occur.
8.3.3 Commercial Recycling Program
Commercial Customers that receive 95 gallon Refuse Carts shall also be entitled
to receive a ninety-five (95) gallon Recycling Cart, within which at least those Recyclable
Materials set forth in Section 8.2.5 may be placed for Collection, at rates not to exceed those in
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Exhibit A. Customers at Commercial Premises (Commercial Customers) utilizing Refuse Bins or
Rolloff Boxes shall have their choice of either ninety-six (95) gallon Recycling Carts or
Recycling Bins (with a capacity of two (2), three (3), four (4) or six (6) yards), within which at
least those Recyclable Materials set forth in Section 8.2.5 may be placed for Collection.
Contractor shall contact all Customers at Commercial Premises on an annual basis and advise
them of the availability of the above recycling programs and the recycling requirements under
SB 1383. At a minimum this contact shall include a site visit for any Customer at a Commercial
Premises that is not engaged in a recycling program. Contractor shall provide monthly reports to
City documenting its efforts, including the name address and phone number of each Customer
contacted, as well as the dates of contact and the results of the contact (i.e., if the contact resulted
in the implementation of a recycling program.) Contractor shall work with each Commercial
Customer to evaluate and recommend the most cost effective levels of solid waste services with
the implementation of beneficial recycling programs for that Customer's Recyclable Material.
Contractor shall include an assessment of each Commercial Customer's waste and recycling
performance in the quarterly reports to the City.
In addition to the foregoing paragraph, Contractor shall provide a source -
separation recycling program to all Customers at Commercial Premises (Commercial Customers)
(the "Commercial Customer Recycling Program") that meets the standards required under AB
341 and SB 1383. Contractor shall assist the City in identifying Commercial Customers that are
not in compliance with the recycling requirements set forth in AB 341 and SB 1383. Contractor
shall provide periodic on-site visits to such Premises to offer and promote recycling services as
required, attempt to resolve any logistical detriments to providing these services, and notify and
request assistance from the City for potential follow up action where there is a repeated refusal to
implement Collection services for Recyclable Material. City agrees to provide reasonable
assistance to Contractor, which may include adding its name to materials prepared for
distribution to Customers regarding AB 341and SB 1383 requirements, consideration of
ordinances which may assist with gaining compliance with AB 341and SB 1383 requirements,
and occasional participation by City personnel in meetings with Customers who repeatedly
refuse to implement Contractor's Commercial Customer Recycling Program. Contractor shall be
responsible for ensuring that its Commercial Customer Recycling Program, combined with its
other programs, enables it to achieve the requirements of AB 341 and other recycling provisions
in this Agreement, and Contractor may be required to modify its program from time to time, at
no additional cost to the City or Commercial Customers, as may be necessary to meet
requirements under AB 341 and SB 1383. Contractor shall produce, keep current, and provide
public information specifically outlining its Commercial Customer Recycling Program, which
shall specifically include the annual publication and distribution of a brochure describing this
service to all applicable Customers in City. Contractor may charge Commercial Customers for
services provided pursuant to its Commercial Customer Recycling Program at rates that do not
exceed the maximum rates set forth in Exhibit A.
8.3.4 Organic (Food Waste/Greenwaste) Waste Diversion Program
Contractor will develop and provide an organic waste recycling program that at
minimum meets the standards required under AB 1826 and SB 1383.
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Contractor shall be responsible for identifying customers required to participate in
the organic waste recycle program. Contractor will offer organic waste collection in accordance
with the approved "Commercial Foodwaste Rates" set forth in Exhibit A or as may be adjusted
under the terms of this Agreement. Contractor shall be responsible for ensuring that the organics
waste recycle meets the requirements of AB 1826 and SB 1383 and may be required to modify
its program from time to time (subject to rate adjustments pursuant to Section 24 of this
Agreement). Contractor shall produce, keep current, and provide public information specifically
outlining its organics waste recycle program
8.3.5 Commercial Bulky Item Service
Contractor shall provide unlimited Bulky Item Collection services to Commercial
and Multi -Family Customers, serviced by commercial bins, on an on-call basis. Contractor may
charge rates for such services which shall not exceed the maximum rates set forth in the attached
Exhibit A. Bulky Item Collection service calls shall be responded to within a reasonable time
but not longer than seven (7) days from the date of the Customer's call for service. Contractor
shall produce, keep current, and provide public information specifically outlining the Bulky Item
pick-up service. Bulky Items Collected pursuant to this Section are subject to the diversion and
handling requirements set forth in Sections 8.2.14 and 8.2.15.
8.4 Temporary Services
Contractor shall provide Temporary Services on an on call basis to any Customer
requesting such service pursuant to the following conditions:
(A) Bins and Rolloff Boxes utilized in connection with Temporary Services shall
meet the minimum standards set forth herein.
(B) No charges excepting rates not exceeding the maximum rates set forth in the
attached Exhibit A related to Bins or Rolloff Boxes utilized in connection with Temporary
Services shall be imposed by Contractor, unless approved in accordance with Section 8.7
(Special Services).
(C) Bins and Rolloff Boxes used in connection with Temporary Services shall not be
placed in any street; provided, however, this prohibition may be waived in extraordinary
circumstances by City's Director of Public Works. Any such waiver shall be in writing signed
by the City's Director of Public Works and shall be subject to such conditions as he may impose.
Bins and Rolloff Boxes used in connection with Temporary Services may be placed in the public
rights-of-way behind the boundary line of any street if an Encroachment Permit is obtained in
advance from the City, subject to such terms and conditions as may be imposed in the
Encroachment Permit. In no event shall any Bins or Rolloff Boxes remain in any public rights-
of-way for a period exceeding two consecutive weeks, unless a longer period is specifically
approved in writing by City.
(D) The City is currently considering whether to adopt an ordinance regulating the
recycling and disposal of construction and demolition waste. This ordinance, if and when
adopted, may require among other things: that contractors in City provide plans for recycling
waste generated at construction sites; evidence that construction waste is recycled; recycling
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requirements for construction waste of 50%, 75% or higher; reporting requirements for tracking
the diversion of construction waste from landfills; fee requirements; and such other requirements
as the City determines are appropriate. In addition to the general requirement set forth herein
that Contractor comply with any ordinances and regulations that City may from time to time
adopt, Contractor specifically agrees to comply with all provisions of any ordinance regulating
construction and demolition waste which City may adopt, and to provide services for contractors
in City as may be contemplated by any such ordinance at no charge (such as assistance in
preparing plans for the collection, recycling and disposal of construction and demolition waste.)
Contractor has agreed to, and shall be responsible to provide all administrative support (or such
part of it as requested by City) necessary to implement the City's construction and demolition
debris ordinance, if and when adopted. Until such time as (and if) an ordinance requiring
specific diversion levels for construction and demolition waste is adopted, Contractor shall make
all reasonable efforts to recycle construction and demolition waste, especially to the degree such
loads contain clean inert materials. In this regard, at a minimum it shall make available to
contractors separate containers within which to Collect different types of marketable materials,
such as dirt, steel, and wood.
(E) Notwithstanding any provision to the contrary herein, Contractor's exclusive right
to provide Temporary Services related to the Collection of green waste from golf courses during
"scalping season" from September to November each year, shall be limited in that if Contractor
is unable to provide service within 48 hours of a request for such service by any Customer at a
golf course, such Customer may contract with any solid waste enterprise to provide this service.
Any dispute as to whether a Customer may use another solid waste enterprise pursuant to this
Section shall be resolved by the City Manager whose decision shall be final and binding upon
Contractor.
8.5 Recycling Obligations and Public Education Program
8.5.1 Minimum Requirements for Delivery of Recyclable Materials and Organic
Waste
All Recyclable Materials Collected by Contractor from Recycling Carts or
Recycling Bins pursuant to this Agreement shall be delivered to a properly permitted facility for
recycling and reuse purposes. All Organic Waste Collected by Contractor pursuant to this
Agreement from Organic Waste Carts or in Bins or Rolloff Boxes designated for Organic Waste
Collection shall be delivered to a properly permitted facility for recycling, mulching or
composting. Contractor shall identify all facilities utilized for the purpose of complying with
this Section, and such facilities shall be subject to approval by City.
8.5.2 Extent of Applicable Franchise Rights
Nothing in this Agreement shall be construed as giving Contractor the right to
Collect Recyclable Material which has not been discarded and placed for Collection by
Contractor in the location designated for that purpose.
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8.5.3 AB 939 Obligations, Guarantee, and Indemnification
8.5.3.1 Warranties and Representations
Contractor warrants and represents that it is aware of and familiar with City's
Source Reduction and Recycling Element (the "SRRE"), that it is familiar with City's waste
stream, and that it has the ability to and will provide sufficient programs and services to ensure
City will meet or exceed the diversion requirements (including, without limitation, amounts of
Solid Waste to be diverted, time frames for diversion, and any other requirements) set forth in
AB 939, and all amendments thereto, and that it shall do so without imposing any costs or fees
other than those set forth on the attached Exhibit A (including if new programs are implemented
which are not called out herein).
8.5.3.2 Waste Reduction and Program Implementation
Contractor shall implement the programs identified in the Source Reduction and
Recycling Element (SRRE) and Household Hazardous Wastes Element (HHWE) of the City's
General Plan immediately upon the Effective Date hereof, and will implement any programs
required by any amendments or modifications thereto. Contractor shall provide City with
monthly, quarterly and annual written reports in a form adequate to meet City's AB 939 related
filing and reporting requirements to CalRecycle and to the County of Riverside throughout the
Term of this Agreement wherein City's performance under the above programs shall be set forth
in detail. Contractor shall be responsible to prepare, or assist City with the preparation of, all
reports and other information as may be required by any agency, including specifically, the State
of California, in order to comply with AB 939. Contractor shall reimburse City for any costs
City incurs in reviewing and revising any such reports, and in appearing before the CalRecycle
and/or the County of Riverside in relation thereto.
8.5.3.3 Guarantee and Indemnification
Contractor warrants and guaranties that it will carry out its obligations under this
Agreement such that: (i) both it and City will at all times be in compliance with the requirements
of AB 341, AB 939 and AB 1826, and (ii) City will meet or exceed the diversion requirements
(including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion,
and any other requirements) set forth in AB 341, AB 939 and AB 1826, and all amendments
thereto. In this regard Contractor agrees that it will, in addition to any other requirement
contained herein, at its sole cost and expense:
(A) to the extent legally permitted, defend, with counsel approved by City, indemnify,
and hold harmless City and City's officials, employees, and agents from and against all fines
and/or penalties and other liabilities which may be imposed by CalRecycle or any other
regulatory agency if: (1) Contractor fails or refuses to timely provide information relating to its
operations which is required pursuant to this Agreement or AB 341, AB 939, AB 1826 or SB
1383 and such failure or refusal prevents or delays City from submitting reports required by AB
341, AB 939, AB 1826 or SB 1383 in a timely manner; or (2) the source reduction and recycling
goals, diversion goals, program implementation requirements, or any other requirements of AB
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341, AB 939 or AB 1826 are not met with respect to the waste stream Collected under this
Agreement;
(B) assist City in responding to inquiries from CalRecycle;
(C) assist City in preparing for, and participating in, the CalRecycle biannual review
of City's SRRE pursuant to Public Resources Code Section 41825;
(D) assist City in applying for any extension, including under Public Resources Code
Section 41820, if so directed by City;
(E) assist City in any hearing conducted by CalRecycle relating to City's compliance
with AB 341, AB 939, AB 1826 and SB 1383;
(F) assist City with the development of and implement a public awareness and
education program that is consistent with the City's SRRE and Household Hazardous Waste
Element, as well as any related requirements of AB 341, AB 939, AB 1826 and SB 1383;
(G) provide City with recycling, source reduction, and other AB 341, AB 939, AB
1826 and SB 1383 related technical assistance;
(H) defend, with counsel acceptable to City, City and City's officials, employees, and
agents against the imposition of fines and/or penalties, or any other liabilities, issued by the
Board pursuant to AB 341, AB 939, AB 1826 and SB 1383;
(I) be responsible for and pay, any fees, penalties or other costs imposed against the
City by CalRecycle, and indemnify and hold harmless City from and against any fines, penalties,
or other liabilities, levied against it for violation of AB 341, AB 939, AB 1826and SB 1383
diversion requirements, or violation of any other provision of AB 341, AB 939, AB 1826 or SB
1383, arising from or in any way related to Contractor's performance of its obligations under this
Agreement.
8.5.4 Waste Generation/Characterization Studies
Contractor acknowledges that City must perform Solid Waste generation and Disposal
characterization studies periodically to comply with the requirements of AB 939. At the City's
request, Contractor agrees to perform a characterization study. The study will be to determine
weights and volumes of Solid Waste Collected and characterize Solid Waste generated, disposed,
transformed, diverted or otherwise handled/processed to satisfy the requirements of AB 939.
Contractor will perform additional studies every five (5) years thereafter. Contractor will submit
study data and results to City within 30 -days after study completion.
8.5.5 Implementation of Additional Diversion Services
In the event City does not meet the diversion requirements imposed by State Law,
including those imposed by AB 939, with respect to all waste generated in City, City may direct
Contractor to perform additional services (including the implementation of new diversion
programs) or modify the manner in which it performs existing services, and Contractor agrees to
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do so at no additional charge. Pilot programs and innovative services which may entail new
Collection methods, and use of new or alternative waste processing and disposal technologies are
included among the kinds of changes which City may direct.
8.6 Additional Services
As part of the consideration for entering this Agreement, Contractor shall provide the
following additional services at no charge, and shall not adjust its rates to Customers to offset
costs incurred in providing any of the following services:
8.6.1 Biennial Document Shredding Events
Not less than two times per year, using two shred trucks per event, on dates and at
locations in City agreed upon by Contractor and City, Contractor shall hold a document
shredding event for Customers in City. This event shall be structured to allow any City resident
or the owner of any business in the City may bring up to two "banker boxes" of documents to the
designated location for shredding. Contractor shall deliver the shredded materials to an
appropriate recycling facility, and shall not deliver such materials to a landfill for disposal.
Contractor may require reasonable evidence that persons delivering documents for shredding in
connection with this event are City residents or the owners of businesses in the City.
8.6.2 City Sponsored Events
Contractor shall provide Solid Waste Handling Services for not for profit events
sponsored by the City. These events shall include, without limitation, those set forth on the
attached Exhibit C. In fulfilling the obligations created by this Section, Contractor shall provide
Containers to Collect and dispose of all Solid Waste including cardboard waste boxes with
liners, Bins or Roll off Boxes as applicable, as well as Containers to Collect source -separated
Recyclable Materials. Contractor shall also provide up to forty (40) portable toilets per calendar
year for events sponsored by the City, or for use in connection with other activities as determined
by City. Portable toilets can be serviced up to two (2) times per event.
8.6.3 Recycling Assistance for Special Events
Contractor shall assist the coordinators of special events in City in the
implementation of recycling programs. Contactor shall be responsible to prepare and submit to
City a "waste reduction and recycling plan" prior to such events, and within 30 days following
each such event shall submit a "waste characterization report" listing the amount of each material
collected for disposal and recycling at the event.
8.6.4 Bin and Bin Enclosure Cleaning
Contractor shall clean out any overflowing Bins or Bin enclosures within the
Franchise Area within twenty-four (24) hours of notification by City. Contractor may bill
Customers for any such services when they are required by City at rates subject to approval by
City. Contractor shall work with the City Manager in identifying continual problems in
Customer Bins or Bin enclosures.
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8.6.5 Litter Abatement
Contractor shall respond to calls from City's Maintenance and Code Enforcement
Divisions and from its Police Department, to provide Containers and dispose of Bulky Items and
other Solid Waste as a result of illegal or unauthorized dumping, or other Code enforcement
matters, occurring within the Franchise Area. Contractor agrees that if requested to provide such
services in connection with abatement activities for which reimbursement is sought from the
property owner by City through abatement liens or otherwise, Contractor will provide billing
information sufficient for City to include it in its liens, and Contractor will be paid at such time
as the abatement lien is paid, or reimbursement is otherwise obtained by City from the property
owner.
8.6.6 Holiday Trees
Contractor shall, free of charge, pick up all Holiday Trees placed out for
Collection by Customers during the first two (2) weeks following Christmas Day. Contractor
shall accept all Holiday Trees delivered to its yard in Palm Desert following the above two (2)
week period, at no extra charge.
8.6.7 Handling of Electronic Waste
Contractor shall Collect electronic waste, or "e -waste," placed for Collection by
any Customer, but shall handle and dispose of such materials in accordance with all applicable
laws and regulations.
8.6.8 Acceptance of Recyclable Materials and Household Hazardous Waste
Contractor shall accept, free of charge, batteries, florescent or mercury light tubes,
and materials commonly known as e -waste that are dropped off by Customers at Contractor's
yard in Palm Desert. Contractor shall seek grants, which if obtained, will enable it to similarly
accept any items which are Household Hazardous Waste at no charge to Customers. Contractor
shall use reasonable efforts to ensure that materials so delivered receive the highest possible rate
of recycling. Contractor shall properly store, handle and dispose of all e -waste and Household
Hazardous Waste once delivered to it, and in doing so shall comply with all laws and regulations,
including specifically the Environmental Laws.
8.7 Special Services
Contractor may provide special pickup procedures or services in addition to the services
described herein for Customers who request or require such services at reasonable rates
established by Contractor, which rates are subject to approval by the City Manager. Contractor
shall notify the City Manager of any such services prior to such time as they are provided in
order to allow the City an opportunity to conduct necessary inspections, review the proposed
rate, and impose appropriate regulations
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8.8 Street Sweeping
Pursuant to this Agreement, Contractor shall cause to be provided street sweeping
services within the City, which may be provided through the use of subcontractor(s) approved by
the City Manager, in his/her sole and absolute discretion, and Contractor shall cause to be
furnished all labor, equipment, and materials necessary for the satisfactory performance of the
street sweeping services. All street sweeping shall be in compliance with applicable law,
including that any vehicles will be compliant with SCAQMD rules 1186 and 1186.1. Contractor
shall dispose of or cause the disposal of all refuse collected by hauling the material to a legally
established refuse disposal site, at a site approved by the City.
In explanation of the foregoing, street sweeping services are to be provided to ameliorate
the impacts of inadvertent spillage of Solid Waste onto City's streets and rights-of-way, as well
as the impacts of Solid Waste which escapes from Containers due to wind and other natural
conditions, Street sweeping shall commence following the Effective Date on such date as is
directed by the City Manager, bearing in mind City currently completes street sweeping services
with its own equipment and personnel.
The level of street sweeping service Contractor (or City -approved subcontractor)
provides City under this Agreement shall, at a minimum, be equal to the level of street sweeping
service the City was receiving immediately prior to the Effective Date of this Agreement. At the
written request of the City Manager, Contractor (or City -approved subcontractor) shall cause to
be provided street sweeping in connection with any new streets added to the City such as if City
annexes additional territory beyond its current city limits and, in addition to the rates chargeable
under Section 8.8.2 below, Contractor may invoice City for any costs incurred for the new streets
at the same rate per curb mile proposed by Contractor (or City -approved subcontractor) as of the
Effective Date. If Contractor uses a City -approved subcontractor for street sweeping services, its
subcontractor may invoice the City directly at the above noted per curb mile rate for the new
streets.
8.8.1 General Provisions re Removal of Debris from Streets
Contractor agrees to cause to furnish all tools, equipment, apparatus, facilities, expertise,
labor, and materials (including water), and cause to be performed all work necessary to sweep all
public streets, alleys, cross gutters, and medians in the City (the "Street System") so as to remove
debris therefrom in a good and workmanlike manner. Said work shall be performed and
completed to the reasonable satisfaction of the City Manager, and consistent with industry
standards and the Service Standard Memorandum.
8.8.2 Costs Attributable to Street Sweeping
Notwithstanding any provisions in this Agreement to the contrary, the maximum cost that
Contractor (or City -approved subcontractor) may charge City for street sweeping services shall
not exceed One Hundred Sixty One Thousand Two Hundred Sixty Seven Dollars ($161,267.00)
per year ("Maximum Street Sweeping Costs"), adjusted by the CPI as set forth in Section 24.3 of
this Agreement. Street sweeping services shall be integrated into the service components and
rate structure set forth in Section 24 of this Agreement.
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8.8.3 Frequency of Sweeping
The entire Street System shall be swept once every two weeks, covering approximately
224 curb miles per two week cycle, with the intent that to the degree feasible streets will be
swept on the day after Solid Waste Collection services are provided to the adjacent Premises.
In addition to Contractor's causing of sweeping of City's entire Street System, and upon
written request by City, Contractor shall also cause to be provided sweeping services following:
(1) events within City Limits, including, but not limited to, parades, community celebrates, and
other activities involving the use of City streets, and (2) accidents and emergencies which
necessitate sweeping of streets during regular sweeping hours.
8.8.4 Operations; Compliance With Laws and Regulations
The street sweeping methods and procedures used by the Contractor (or City -approved
subcontractor) shall be consistent with the current standards in the industry, in compliance with
all federal, state and local laws and regulations, and shall be subject to the approval of the City
Manager.
8.8.5 Schedule and Routes
Street sweeping routes and schedules are to be developed by Contractor (or City -
approved subcontractor) and approved by the City Manager. Contractor (or City -approved
subcontractor) shall endeavor to set routes and schedules which follow the weekly Collection of
Solid Waste by Contractor. The City Manager shall approve the hours during which the
sweeping shall be performed and may direct Contractor to cause to be changed the schedule to
meet the needs of City to ensure adequate street sweeping.
The City Manager may grant Contractor (or City -approved subcontractor) an exception to
the above sweeping schedule due to extreme weather conditions; provided, however, Contractor
(or City -approved subcontractor) shall be required to perform extra sweeping work caused by the
extreme weather conditions without any additional charge to City. In the event Contractor (or
City -approved subcontractor) is prevented from completing sweeping, in accordance with the
schedule approved by the City Manager, due to equipment breakdown or for reasons other than
extreme weather conditions, Contractor (or City -approved subcontractor) shall be required to
complete the sweeping no later than by the end of next business day.
8.8.6 Emergency Services
Contractor (or City -approved subcontractor) shall provide emergency contact information
and a 24-hour on call telephone number. Contractor (or City -approved subcontractor) shall
provide services on an emergency basis outside of the sweeping hours and routes established
under this Agreement when requested by the City Manager (or designee). Contractor (or City -
approved subcontractor) shall provide up to ten (10) hours per year of emergency sweeping
services (meaning actual sweeping time, and not including travel time to and from service
locations), after regular business hours, upon request of the City Manager, at no cost, it being
expressly understood by City and Contractor that the City intends to continue to use the City's
existing street sweeping equipment and personnel on a limited basis, which includes off -hour
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emergencies, but there may be some instances during a year when the City Manager may request
additional emergency street sweeping services that are not capable of being completed by the
City's existing equipment or personnel.
8.8.7 Complaints and City Contact
Contractor shall cause to be resolved complaints related to street sweeping, including by
re -sweeping areas not properly serviced if necessary, within 24 hours. Contractor shall cause to
be provided a contact person with whom the City may directly communicate to discuss street
sweeping issues, and if a subcontractor is used by Contractor for sweeping City may directly
communicate with said subcontractor and give direction consistent with the terms hereof.
8.8.8 Sweeping Vehicle Speed
Street sweeping vehicles shall not operate at a speed that exceeds the manufacturer's
recommendations for the sweeper and/or the speed for good street sweeping practice as
determined by the City Manager. In no event shall vehicle speed exceed ten (10) miles per hour
during sweeping operations.
8.8.9 Safety
All safety related defects determined to exist on any sweeping vehicle shall be corrected
by Contractor (or City -approved subcontractor) prior to the vehicle being utilized for further
street sweeping operations.
8.8.10 Disposal of Refuse
Contractor (or City -approved subcontractor) shall dispose of all Solid Waste Collected in
the course of street sweeping in the same manner as required for Solid Waste Collected in the
course of providing Solid Waste Collection services. Contractor (or City -approved
subcontractor) shall not temporarily stockpile street sweeping debris on any public property
pending its ultimate disposal.
8.8.11 Contractor's Street Sweeping Equipment
(A) Type. Street sweeping equipment shall be a type consistent with the current
standards in the industry and shall be subject to the approval of the City Manager. In addition,
sweeping shall be conducted by either vacuum sweeper or combination sweepers. Mechanical
broom sweeper may be approved by the City for certain heavy sweeping areas. All street
sweepers utilized in this Agreement must be alternative fuel vehicles and meet all federal, state
and local regulations including but not limited to SCAQMD Rules 1186 and 1186.1;
(B) Quantity. There shall be a sufficient number sweepers to provide the level of
services required by the terms hereof;
(C) Condition. All vehicles and equipment used to perform street sweeping services
shall be kept and maintained in good mechanical condition and working order. Any of the
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primary sweepers which need to be permanently replaced due to age and the condition of the
vehicle shall be replaced with a new vehicle. In addition, the following shall apply:
(i)
Said equipment shall not be more than twelve (12) years old unless
specifically approved by the City Manager;
(ii) Said equipment shall be kept clean at all times;
(iii) Said equipment shall be painted in a fashion approved by the City
Manager; and,
(iv) Mechanical brushes and brooms shall be maintained in proper
condition and shall be replaced as recommended by the manufacturer or when pick-up
ability becomes impaired, whichever occurs sooner.
(D) Inspection. All equipment utilized for street sweeping operations shall be subject
to inspection by the City Manager at any time.
8.8.12 Contractor's Street Sweeping Personnel
(A) Qualifications. Contractor (or City -approved subcontractor) shall employ
competent and experienced drivers and mechanics for the performance of street sweeping
operations ("Street Sweeping Personnel").
(B) Uniforms. Street Sweeping Personnel shall wear a clean uniform bearing the
company's name, or other suitable clothing as approved by City Manager.
(C) Identification of Employees. Contractor (or City -approved subcontractor) shall
provide identification badges, cards or similar devices, for all of its Street Sweeping Personnel
who may make personal contact with residents of the City. City may require Contractor (or City -
approved subcontractor) to notify Customers yearly of the form of said identification.
(D) Employee List. Contractor (or City -approved subcontractor) shall provide City a
list of its Street Sweeping Personnel and update the list, as needed, to keep it current.
(E) Driver's License. Street Sweeping Personnel shall, at all times, carry a valid
operator's license for the type of vehicle he or she is operating.
(F) Discontinued Use of Unsatisfactory Employees. No Street Sweeping Personnel
shall continue to have any involvement whatsoever with regard to any work in anyway relating
to or arising from this Agreement if City gives notice to Contractor (or City -approved
subcontractor) that such person is determined by City to be intemperate, discourteous, disorderly,
inefficient, or otherwise objectionable.
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(G) Training and Legal Compliance. Contractor (or City -approved subcontractor)
shall provide operating and safety training for all of its Street Sweeping Personnel that meets
minimum OSHA, and all other applicable standards.
8.8.13 Contract Administration
(A) Verification. At the discretion of the City Manager, the City may require the
installation of odometers, time clocks, or other specialized equipment to verify work performed.
(B) Monthly Report. Contractor (or City -approved subcontractor) shall keep a daily
log of streets swept. Said log shall state the area and the number of curb miles swept. A monthly
report shall be prepared from the daily log and submitted to the City Manager. Alternatively, a
website/internet based reporting system may be established if deemed to be acceptable to the
City Manager.
8.8.14 Subcontracting
Contractor may utilize the services of a subcontractor to perform the services and meet
the obligations set forth in this Section 8.8 if it first obtains the prior written consent of the City
Manager. Any such subcontracting shall be subject to such reasonable conditions as may be
required by the City Manager, and shall be subject to the following: (1) Contractor shall be
responsible to ensure any permitted subcontractor complies with all applicable terms and
conditions of this Agreement, (2) any permitted subcontractor shall be required to provide a
written agreement to City, in a form approved by the City Attorney, demonstrating its agreement
to be bound by all applicable provisions of this Agreement, including specifically, without
limitation, the insurance and indemnity provisions set forth herein (although the insurance limits
may be adjusted to $5,000,000 rather than the $10,000,000 otherwise required), and (3)
Contractor shall be responsible for the actions and/or omissions of any permitted subcontractor
as if Contractor were carrying out the services in question itself.
8.9 Pilot Programs
The City may direct Contractor to perform additional services (including new diversion
programs, etc.) or modify the manner in which it performs existing services or bills for services.
Pilot programs and innovative services which may entail new Collection methods, different
kinds of services and/or new requirements for Customers, and alternative rate structures are
included among the kinds of changes which the City may direct. Contractor may receive an
adjustment in its compensation based on its reasonable costs for providing such additional or
modified services as agreed between the City and Contractor.
8.10 Three Container System.
8.10.1 General.
No later than January 1, 2022, Contractor shall provide a three -Container Collection
program for the separate Collection of Source Separated Recyclable Materials, SSGCOW, and
Gray Container Waste as specified in this Agreement, using Containers that comply with the
requirements of this Agreement and SB 1383 Regulations (or where a substantially similar
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arrangement whereby Green Waste is handled by a third party, no later than December 31,
2022). Contractor shall not knowingly Collect Blue, Green, or Gray Containers that include
Prohibited Container Contaminants.
8.10.2 Source Separated Recyclable Materials Collection (Blue Container).
Contractor shall provide Blue Containers to Customers for Collection of Source
Separated Recyclable Materials and shall provide Source Separated Recyclable Materials
Collection service. Contractor shall Transport the Source Separated Recyclable Materials to
Facility that recovers the materials designated for Collection in the Blue Containers, in
accordance with SB 1383 Regulations.
Source Separated Recyclable Materials that are to be accepted for Collection in the
Source Separated Recyclable Materials Collection program include the following: (i) Non -
Organic Recyclables such as: aluminum, glass bottles and jars, rigid plastics (marked # 1 through
# 7), and tin and bi-metal cans; and (ii) SSBCOW such as: Paper Products, Printing and Writing
Papers, wood and dry lumber.
8.10.3 SSGCOW Collection (Green Container). Contractor shall provide Green
Containers to Customers for Collection of SSGCOW and shall provide SSGCOW Collection
service. Contractor shall Transport the SSGCOW to a Facility in accordance with SB 1383
Regulations.
SSGCOW that are to be accepted for Collection in the SSGCOW Collection program
include the following: Food Scraps; Food -Soiled Paper; Yard Trimmings, which are defined
below; Carpets, non-Compostable Paper, textiles, and Prohibited Container Contaminants shall
not be Collected in the Green Containers. Yard Trimmings that are to be accepted for Collection
in the SSGCOW Collection program include the following: green trimmings, grass, weeds,
flowers, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees weighing no
more than 501bs, and other types of SSGCOW resulting from normal yard and landscaping
installation, maintenance, or removal, provided all SSGCOW fits inside the Green Container
with the lid closed and does not exceed 150 pounds.
Contractor may Collect compliant Compostable Plastics, as defined, in the Green
Containers for Processing. At least six months prior to the commencement of the Collection of
Compostable Plastics in the SSGCOW program, Contractor shall provide written notification to
the City whether the Facility can or cannot Process and recover these Compostable Plastics in
accordance with SB 1383 Regulations. If the Facility can process and recover Compostable
Plastics, and Contractor elects to Collect Compostable Plastics in the Green Container, then
Contractor shall provide annual written notification to the City that the Facility has and will
continue to have the capabilities to Process and recover the Compostable Plastics. If the Facility
cannot process and recover Compostable Plastics, then Contractor will not Collect Compostable
Plastics in the Green Container.
8.10.4 Gray Container Waste Collection.
Contractor shall provide Gray Containers to Customers for Collection of Gray Container
Waste, and shall provide Gray Container Waste Collection service. Contractor shall Transport
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the Gray Container Waste to a Facility in accordance with the SB 1383 Regulations. Contractor
may allow carpets, Non-compostable Paper and textiles to be placed in the Gray Containers.
Prohibited Container Contaminants shall not be Collected in the Gray Containers.
8.11 Use of Plastic Bags for SSGCOW Collection.
Contractor may require Customers and Generators to place Food Waste in plastic bags or
other paper wrappings and put the bagged or wrapped Food Waste in the Green Container.
Contractor shall provide written notification to the City that allowing the use of bags does not
inhibit the ability of the City to comply with SB 1383 Regulations, and that the Facility can
Process and remove plastic bags when it recovers SSGCOW. Contractor shall provide annual
written notification to the City that the Facility has and will continue to have the capabilities to
Process and remove plastic bags when it recovers SSGCOW.
8.12 Contamination Monitoring.
A. Actions upon Identification of Prohibited Container Contaminants.
Upon finding Prohibited Container Contaminants in a Container, Contractor shall follow
the protocols set forth in this Section.
1. Record Keeping. The driver or other Contractor representative shall record each
event of identification of Prohibited Container Contaminants in a written log or in the on -board
computer system including date, time, Customer's address, type of Container (Blue, Green, or
Gray Container).
2. Courtesy Pick -Up Notices. Upon identification of Prohibited Container
Contaminants in a Customer's Container, Contractor shall provide the Customer a courtesy pick-
up notice. The courtesy pick-up notification shall: (i) inform the Customer of the observed
presence of Prohibited Container Contaminants; (ii) include the date and time the Prohibited
Container Contaminants were observed; (iii) include information on the Customer's requirement
to properly separate materials into the appropriate Containers, and the accepted and prohibited
materials for Collection in the Blue Container, Green Container, and/or Gray Container; (iv)
inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with
information that following three consecutive instances of Prohibited Container Contaminants
within a six-month time period, Contractor may assess contamination Processing fees; and, (v)
may include photographic evidence. Contractor shall leave the courtesy pick-up notice attached
to or adhered to the Generators' contaminated Containers; at the Premises' door or gate; or,
subject to City's approval, may deliver the notice by mail, e-mail, text message, or other
electronic message.
3. Notice of Assessment of Contamination Processing Fees. If the Contractor
observes Prohibited Container Contaminants in a Generator's Container on more than three
occasions within a six-month time period, and issued courtesy pick-up notices on each of those
occasions, the Contractor may impose a contamination Processing fee of $15 for Residential
Customers and $75 for Commercial Customers_ (which will be adjusted annually pursuant to
_Section 24.3). Contractor shall notify the City in its monthly report of Customers for which
contamination Processing fees were assessed. Contractor shall leave a contamination Processing
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fee notice attached to or adhered to the Generators' contaminated Containers; at the Premises'
door or gate; or, subject to City's approval, may deliver the notice by mail, e-mail, text message,
or other electronic message. The contamination Processing fee notice shall describe the specific
material(s) of issue, explain how to correct future set outs, and indicate that the Customer will be
charged a contamination Processing fee on its next bill. The format of the contamination
Processing fee notice shall be approved by the City.
B. Disposal of Contaminated Materials. If the Contractor observes Prohibited
Container Contaminants in a Generator's Container(s), Contractor may Dispose of the
Container's contents, provided Contractor complies with any and all SB 1383 Regulations for
disposal and complies with the noticing requirements in subsection A above.
8.13. Route Reviews and Waste Evaluations.
Contractor shall meet its SB 1383 Regulations contamination monitoring requirements
commencing September 1, 2022, using either Route Reviews or Waste Evaluations; provided
however, that if Contractor complies with SB 1383 Regulations using a Performance-based
Compliance Approach, it shall monitor containers using waste evaluations, as outlined herein:
A. Route Reviews
1. If Contractor elects to perform Route Reviews, Contractor shall, at its sole
expense, conduct Hauler Route reviews for Prohibited Container Contaminants in Collection
Containers in a manner that is deemed safe by the Contractor; is approved by the City; is
conducted in a manner that results in all Hauler Routes being reviewed annually, and is
consistent and in accordance with SB 1383 Regulations. Containers may be randomly selected
along the Hauler Route. This Section should not be construed to require that every container on a
Hauler Route must be sampled annually.
2. Upon finding Prohibited Container Contaminants in the Container, Contractor
shall follow the contamination monitoring noticing procedures in Section 8.12.
B. Waste Evaluations
Alternatively, if Contractor elects to perform Waste Evaluations, Contractor shall,
conduct waste evaluations that comply with and meet the requirements of 14 CCR Section
18984.5(c) (or successor section). The City maintains the right to observe, or hire a third party to
observe, the waste evaluations.
1. Sampling Method, Study Protocols. The Contractor shall conduct waste
evaluations for Prohibited Container Contaminants by sampling the contents of Containers on
Hauler Routes in the following manner
a. If using a Standard Compliance Approach, Contractor shall conduct waste
evaluations at least twice per year and in two distinct seasons of the year in a manner that
complies with the requirements of 14 CCR section 18984.5(c) (or successor section). If using a
Performance-based Compliance Approach, Contractor shall conduct waste evaluations at least
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twice per year for the Blue and Green Containers and at least once per quarter for the Gray
Containers.
b. The Contractor's waste evaluations shall include samples of Source Separated
Recyclable Materials, SSGCOW, and Gray Container Waste.
c. The waste evaluations shall include samples from each Container type served by
the Contractor and shall include samples taken from different areas in the City that are
representative of the City's waste stream.
d. The waste evaluations shall include at least the minimum number of samples
specified in SB 1383 Regulations.
e. The Contractor shall Transport all of the material Collected for sampling to a
sorting area at a permitted solid waste Facility where the presence of Prohibited Container
Contaminants for each Container type shall be measured to determine the ratio of Prohibited
Container Contaminants present in each material stream by weight. To determine the ratio of
Prohibited Container Contaminants, the Contractor shall use the following protocol:
i. The Contractor shall take one sample of at least a 200 pounds from
the material Collected from each material stream for sampling.
ii. The 200 -pound sample shall be randomly selected from different
areas of the pile of Collected material for that material stream.
iii. For each 200 -pound sample, the Contractor shall remove any
Prohibited Container Contaminants and determine the weight of Prohibited Container
Contaminants.
iv. The Contractor shall determine the ratio of Prohibited Container
Contaminants in the sample by dividing the total weight of Prohibited Container Contaminants
by the total weight of the sample.
2. Contamination Response. If the sampled weight of Prohibited
Container Contaminants exceeds twenty-five percent (25%) of the measured sample for any
material stream, the Contractor shall:
a. If using a Performance-based Compliance Approach, notify the
City within fifteen (15) working days of the waste evaluation.
b. Within fifteen (15) working days of the waste evaluation, notify all
Generators on the sampled Hauler Route of their requirement to properly separate materials into
the appropriate Containers. The Contractor may provide this information by placing a written
notice on the Generators' Containers or the gate or door of the Premises; and/or by mail, email,
or electronic message to the Generators. The format of the warning notice shall be approved by
the City..
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c. If using a Performance-based Compliance Approach, Contractor
shall allow a representative of the City and/or CalRecycle to oversee its next scheduled quarterly
sampling of the Gray Containers, upon request.
3. Material Exceptions. Organic Waste that is textiles, carpet, hazardous wood
waste, human waste, pet waste, or material subject to a quarantine on movement issued by a
County agricultural commissioner is not required to be measured as Organic Waste when
calculating the amount of Organic Waste present in the Gray Container Waste.
C. Recordkeeping Requirements. Contractor shall maintain all applicable records
required under SB 1383 Regulations, and report to the City on a monthly basis on contamination
monitoring activities, route reviews and/or waste evaluations, and actions taken.
D. Nothing in this section shall prohibit Contractor from meeting its compliance
requirements by any alternative methods or procedures, provided it complies with SB 1383, the
SB 1383 Regulations, and/or any other applicable law, as may be amended from time to time, or
being relieved of, or delaying compliance with such requirement pursuant to SB 619.
8.14 Education and Outreach.
A. Contractor shall, create all applicable education materials and conduct all
education programs and activities as provided by and in accordance with the SB 1383
Regulations. Contractor shall cooperate and coordinate with the City on public education
activities.
B. On or before July 1, 2022, the Contractor shall develop a list of Food Recovery
Organizations and Food Recovery Services operating within the City, maintain the list on the
Contractor's City --specific website, share the list with the City if the City wants to post the list
on additional City websites, and update the list annually. The list shall include, at a minimum,
the following information about each Food Recovery Organization and each Food Recovery
Service:
1. Name and physical address;
2. Contact information;
3. Collection service area; and,
4. An indication of types of Edible Food the Food Recovery Service or Food
Recovery Organization can accept for Food Recovery.
C. At least annually, the Contractor shall provide Commercial Edible Food
Generators with the following information:
1. Information about the City's Edible Food Recovery program;
2. Information about the Commercial Edible Food Generator requirements under 14
CCR, Division 7, Chapter 12, Article 10;
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3. Information about Food Recovery Organizations and Food Recovery Services
operating within the City„ and where a list of those Food Recovery Organizations and Food
Recovery Services can be found; and,
4. Information about actions that Commercial Edible Food Generators can take to
prevent the creation of Food Waste.
D. The Contractor may provide the information required above by including it with
regularly scheduled notices, education materials, billing inserts, or other information
disseminated to Commercial Businesses.
E. Contractor shall comply with all applicable public education and outreach record
keeping and reporting requirements as provided by SB 1383 and the SB 1383 Regulations.
8.15 Generator Waiver Program Coordination.
8.15.1 General.
In accordance with SB 1383 Regulations, the City may grant waivers (de minimis,
physical space or Collection frequency) to Generators that impact the scope of Contractor's
provision of service for those Customers. Waivers issued shall be subject to compliance with SB
1383 Regulatory requirements, pursuant to 14 CCR Section 18984.11 (or successor section). If
using a Performance-based Compliance Approach, the City agrees it will only grant waivers if at
least ninety percent (90%) of Single -Family Generators and ninety percent (90%) of Commercial
Generators (including Multi -Family Generators) participate in the three -Container Collection
program.
8.15.2 Requests Submitted to Contractor.
Generators may submit requests for de minimis waivers, physical space waivers, and
Collection frequency waivers to the Contractor. Contractor shall within 10 -days review the
Generator's waiver application and inspect the Generator's Premises to verify the accuracy of the
application. Contractor shall provide documentation of the inspection, including the Contractor's
recommendation to approve or deny the waiver request, and send this information to the City
within 15 -days of receipt of the Generator's waiver application for the City's review and
approval. The City ultimately retains the right to approve or deny any application, regardless of
the Contractor's recommendation. Contractor shall report information regarding waivers
reviewed on a monthly basis.
8.15.3 Contractor Change in Customers' Service Levels.
When the City grants a waiver to a Generator, the City shall notify the Contractor within
10 -days of the waiver approval with information on the Customer and any changes to the Service
Level or Collection service requirements for the Customer. Contractor shall have 10 -days to
modify the Customer's Service Level and billing statement, as needed.
8.15.4 Reverification of Waivers.
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It shall be the responsibility of the Contractor to verify that the Generators with de
minimis, physical space constraint, or Collection frequency waivers continue to meet the waiver
requirements set forth in this Section. Contractor shall conduct such reverifications of waivers
through inspection of each Generator's Premises and review of applicable records at least once
every five (5) years for de minimis and physical space constraint waivers. Contractor shall
maintain a record of each waiver verification and provide a monthly report to the City
documenting the waiver reverifications performed and recommendations to the City on those
waivers that Contractor concludes are no longer warranted. The City shall make a final
determination of the waiver eligibility of Generators.
8.15.5 Contractor Recordkeeping of Generators Granted
Waivers. Upon Contractor request, no more than four (4) times per year, the City shall
provide Contractor an updated listing of waivers approved by the City, including the Generators'
names, mailing address, service address, and type of waiver. Contractor shall maintain waiver -
related records and report on waiver verifications, as required herein.
8.16 Inspection and Enforcement.
Beginning May 1, 2022, Contractor shall assist the City with and/or conduct applicable
inspections and enforcement, to the extent delegable, as required by SB 1383 Regulations.
Contractor shall maintain all applicable records from inspection and enforcement in
accordance with SB 1383 Regulations.
8.17 Complaints.
A. Contractor shall coordinate with the City and/or investigate any applicable
complaints, if required by and in accordance with SB 1383 Regulations.
B. Contractor agrees to maintain a computer database log of all applicable oral and
written complaints received by Contractor from Customers or other Persons. Contractor shall be
responsible for the prompt and courteous attention to, and prompt and reasonable resolution of,
all applicable Customer complaints. Contractor agrees to document and maintain for a period of
at least twenty four (24) months on a form or log all Complaints registered by Customers and
Persons.
8.18 Provision for Recovered Organic Waste Product.
Contractor agrees to coordinate and cooperate with the City to meet its Organic Waste
produce procurement target, as required by SB 1383 Regulations. Contractor and City may enter
into a separate agreement to meet the City's Organic Waste produce procurement target,
including, but not limited to, an agreement that the City may procure compost from Contractor
and that Contractor would market the compost material to the agricultural community on City's
behalf.
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SECTION 9.
MINIMUM STANDARDS FOR CONTRACTOR'S SOLID
WASTE HANDLING SERVICE COLLECTION VEHICLES
9.1 General
Contractor shall provide vehicles for the Collection of Solid Waste ("Collection
Vehicles") that are sufficient in number and capacity to efficiently perform the work required by
this Agreement in strict accordance with its terms. Contractor is expressly obligated to provide
such Collection Vehicles and routes as are required to meet the service standards set forth herein.
Contractor shall have available on Collection day's sufficient back-up vehicles for each type of
Collection Vehicle used to respond to complaints and emergencies. Contractor shall use due care
to prevent Solid Waste from being spilled or scattered during the Collection or transportation
process. If any Solid Waste is spilled, Contractor shall promptly clean up all spilled materials.
Each Collection vehicle shall carry a broom and shovel at all times for this purpose. Contractor
shall not transfer loads from one vehicle to another on any public street or private roadway,
unless it is necessary to do so because of mechanical failure or damage to a Collection vehicle
which renders it inoperable. The Contractor shall clean up litter in the immediate vicinity of any
Solid Waste storage area (including the areas where Containers are delivered for Collection)
whether or not Contractor has caused the litter. Contractor shall notify the Customer and the
City after the second occurrence. If a second notice is delivered within six (6) months of the first
notice, and if Contractor is required to clean up the Customer's property, City either may require
the Customer to accept and pay for increased service (such as, a larger Container or more
frequent Collections as determined by the City in its reasonable discretion) or may authorize
Contractor to bill the Customer for additional clean-ups at rates established by City, or both.
Contractor shall cover all open Containers during transport to the disposal site.
9.2 Air Quality/Fuel Requirements
Contractor's Collection Vehicles shall comply with all rules and regulations of the
Southern California Air Quality Management District, the Air Resource Board, and any other
regulatory body that may be in effect during the term of this Agreement, as well as other Federal,
State and local laws and regulations that may be enacted during the term of this Agreement. In
addition to such requirements as may be imposed by the of the Southern California Air Quality
Management District, the Air Resource Board, or any other agency with similar jurisdiction, as
of the Effective Date all Collection Vehicles except so called "Rolloff Trucks" shall be powered
by engines that are either "alternative fuel powered" in accordance with the standards of the
South Coast Air Quality Management District and acceptable to City, or, in the absence of such
standards having been adopted by SCAQMD, fueled exclusively by either liquefied natural gas
or compressed natural gas. So long as no greater requirement is imposed by law (including by
standards imposed by SCAQMD), Contractor will not be deemed to have violated the minimum
requirement imposed by City for use of liquefied or compressed natural gas Collection Vehicles,
if a "spare" Collection Vehicle is used that does not meet this minimum requirement; provided
that no such spare shall be used as a replacement Collection Vehicle for more than 14
consecutive business days, and spare Collection Vehicles that do not meet the City's minimum
requirement shall not be used on more than a total of 60 days in any calendar year.
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9.3 Specific Requirements
Each Collection Vehicle utilized by Contractor in the performance of this Agreement
shall meet the following minimum standards:
(A) Each Collection Vehicle shall be registered with the California Department of
Motor Vehicles.
(B) Each Collection Vehicle shall be inspected, at least once every two years, either
by the California Highway Patrol or another appropriate local law enforcement agency have
jurisdiction to provide commercial vehicle inspections. A record of each vehicle's annual
inspection shall be kept by Contractor and the results of said inspections shall be made available
to the City Manager upon request.
(C) Each Collection Vehicle shall be equipped with devices capable of covering every
open section of the vehicle in which Solid Waste may be placed and, while operating upon the
public rights-of-way, shall be covered so as to prevent any Solid Waste from falling or being
blown or otherwise dislodged from the vehicle.
(D) Each Collection Vehicle shall be continuously maintained in a watertight and
leak -proof condition per industry standards. Contractor shall be responsible to promptly clean
any spillage or Solid Waste that leaks or otherwise escapes the vehicle.
(E) Each Collection Vehicle shall be painted periodically, and not less than once
every two years, which shall include all necessary body work, and shall be regularly cleaned, so
that such vehicles do not become unsightly, as determined by the City Manager. Contractor's
name, local or toll free telephone number, and a vehicle number shall be visibly printed or
painted in letters not less than five (5) inches in height on both sides of each Collection Vehicle.
Each Collection Vehicle shall display the words "Serving the City of La Quinta" in letters no less
than two (2) inches in height.
(F) Each Collection Vehicle shall be maintained in a clean and sanitary condition
both inside and out and shall be washed at least once every seven (7) calendar days and steam
cleaned on a regular basis.
(G) Each Collection Vehicle shall carry a broom, shovel, and operable fire
extinguisher, and shall be equipped with a communication device sufficient to allow the driver to
communicate directly with Contractor's dispatcher and/or main office.
(H) Each Collection Vehicle shall be kept in good repair and working order, and shall
be equipped with appropriate safety equipment, including any new safety related technologies
that become standard in the waste industry, and at a minimum shall have a video monitor based
back-up system, or its equivalent. Contractor shall keep a sufficient supply of replacement parts
and equipment on hand to ensure adequate vehicle maintenance and timely and continuous
performance of the services contemplated by this Agreement.
(I) Contractor shall inspect each Collection Vehicle daily to ensure that all equipment
is operating properly. Collection Vehicles which are not operating properly shall be removed
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from service until repaired and operating property. Contractor shall perform all scheduled
maintenance functions upon Collection Vehicles in accordance with the manufacturer's
specifications and schedule. Contractor shall repair, or arrange for the repair of, all of its
vehicles and equipment for which repairs are needed because of accident, breakdown or any
other cause so as to maintain all equipment in a safe and operable condition. Contractor shall
keep accurate records of all Collection Vehicle maintenance and repair, recorded according to
date and mileage, including signed verifications that repairs and maintenance has been properly
performed, and shall make such records available to City upon request.
(J) No Collection Vehicle shall be utilized if it is leaking break, hydraulic, or other
fluids, and Contractor shall clean up any leaks or spills from their vehicles per the NPDES
permit in effect at the time. No fluids shall be washed into storm drains at any time. All NPDES
dry-cleaning measures shall be complied with. All Collection Vehicles must be equipped with
absorbent for such clean-up efforts.
(K) Upon request, Contractor shall furnish City a written inventory of all equipment,
including Collection Vehicles, used in providing service pursuant to this Agreement. This
inventory shall list all equipment by manufacturer, ID number, date of acquisition, type and
capacity.
(L) Contractor shall utilize Collection Vehicles of a size, weight, nature, and type so
as to not be unreasonably intrusive on the community with respect to noise, emissions,
maneuverability, safety, and other factors and to avoid or minimize pavement damage and wear
and tear of the street or adjacent properties, as approved by the City Manager.
(M) Contractor shall not load Collection Vehicles in excess of the manufacturer's
recommendations or limitations imposed by state or local laws or regulations. Noise levels of
equipment used for Collection shall no event exceed seventy-five (75) dba when measured at a
distance of twenty-five (25) feet from the vehicle, five (5) feet from the ground.
(N) Any Collection Vehicle that the City Manager deems inappropriate for use in City
for any reason (including its appearance) shall be removed from service in City, until such time
as (and if) the City Manager determines his concern regarding said Collection Vehicle are
corrected.
9.4 Costs of Operation and Damages
Contractor shall be responsible for any costs incurred in connection with ensuring all
Collection Vehicles comply with all applicable laws and regulations, including without limitation
any such laws and regulations that may now exist or hereinafter be adopted relating to noise,
fuels, emission standards, or weight limits.
9.5 City Inspection
City may cause or require any Collection Vehicle used in performance of this Agreement
to be inspected and tested at any time and in such manner as may be appropriate to determine
that the vehicle is being maintained in compliance with the provisions of this Agreement.
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9.6 Correction of Defects and Removal of Vehicles from Use within City
Contractor agrees to immediately remove from service, and replace or repair, to the
City's satisfaction, any Collection Vehicle which City determines to be of unsightly appearance,
unsafe, unsanitary, leaking, out of compliance with any law or regulation or this Agreement, or
otherwise in an unsatisfactory operating condition; and any such vehicle shall not be returned to
service until the City Manager gives his written consent for its return.
SECTION 10.
CONTRACTOR'S SOLID WASTE HANDLING
SERVICE PERSONNEL
10.1 Uniforms
Each of Contractor's Collection employees shall wear a clean uniform bearing the
Contractor's name.
10.2 Identification of Employees
Contractor shall provide identification badges, cards or similar devices, for all of its
employees, and all authorized subcontractors, who may make personal contact with residents of
the City. City may require Contractor to notify Customers yearly of the form of said
identification.
10.3 Employee List
Contractor shall provide a list of current employees and authorized subcontractors to City
upon request.
10.4 Driver's License
Each employee operating a vehicle as part of his duties shall, at all times, carry a valid
operator's license for the type of vehicle he is operating. All employees who may have contact
with Customers in the course of performing their duties shall be able to speak English.
10.5 Discontinued Use of Unsatisfactory Employees
No employee shall continue to have any involvement whatsoever with regard to any work
in anyway relating to or arising from this Agreement if City gives notice to Contractor that such
employee is determined by City to be discourteous, disorderly, inefficient, or otherwise
obj ectionable.
10.6 Training and Legal Compliance
Contractor shall provide operating and safety training that meet minimum OSHA
standards for all personnel, and shall comply with all laws and regulations applicable to its
employees and personnel.
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10.7 Customer Service
10.7.1 Local Office; Local Participation
(A) Contractor shall maintain an office within a ten mile radius of the intersection of
Washington and Highway 111. Said office shall be open at a minimum, from 8:00 a.m. to 5:00
p.m. Monday through Friday, holidays excepted. At least one responsible and qualified
representative of Contractor, capable of communicating in English, shall be present and available
during all times that an office is required to be open as noted above ("Office Hours"), for
personal communication with the public, and a similarly qualified person shall be available for
communication with the public by phone during any times other than Office Hours when
Collection is occurring.
(B) Contractor shall, in addition to maintaining a local office, establish a local
presence in the City. Contractor shall achieve such presence by joining, and maintaining a
membership in, the La Quinta Chamber of Commerce, and by otherwise participating in the local
community, such as by sponsoring local events.
10.7.2 Telephone Customer Service Requirements
(A) Contractor shall maintain a toll free telephone number that rings at an office
within the Coachella Valley at all times during Office Hours. Both English and Spanish
speaking personnel will be available during Office Hours to assist Customers with telephonic
inquiries. Contractor shall have the ability (through the use of outside resources or otherwise) to
communicate with Customers who only speak Spanish to ensure their inquiries, questions,
complaints and other matters are dealt with in a reasonably timely fashion. All such personnel
shall be polite and responsive, and shall be sufficiently knowledgeable, and have the authority to
respond and/or advise Customers seeking assistance. Contractor's telephone system shall be
adequate to handle the volume of calls typically experienced on the busiest days. Contractor
shall also maintain a toll free telephone number for use at times other than Office Hours, which
number shall be published in the La Quinta telephone directory at the Contractor's expense.
Contractor shall have a representative, answering or message providing/receiving (voice -mail)
service available at said non -Office Hours telephone number. Calls received at times other than
during Office Hours shall be responded to on the next business day. Contractor shall provide
City with a 24-hour emergency number to a live person, not voice -mail.
(B) Contractor shall make reasonable attempts to answer all phone calls within five
(5) rings. If a call has been placed on hold for three (3) minutes, the caller will either be
switched to a message center which shall be responsible to obtain the caller's address and phone
number, or a Customer service representative will obtain the Customer's address and a number at
which the call can be returned. Contractor shall make at least three attempts within the next
twenty-four (24) hour period to return the call, with the first such attempt not more than one (1)
hour after the caller leaves the message. If Contractor is unsuccessful in contacting the Customer
after following this procedure, it shall send a letter to the caller indicating its efforts.
(C) Contractor shall record Customer complaints regarding Customer service
personnel in accordance with Section 10.7.3. Customer service representatives receiving
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multiple complaints are to be transferred from Customer service duties relating to services
performed under this Agreement.
10.7.3 Complaint Documentation
(A) All service complaints shall be directed to Contractor. Contractor shall log all
complaints received by telephone and said log shall include the date and time the complaint was
received, the name, address and telephone number of the caller, a description of the complaint,
the name of the employee recording the complaint and the action taken by Contractor to respond
to and remedy the complaint.
(B) All written Customer complaints and inquiries shall be date-stamped when
received and shall be initially responded to within one (1) business day (Monday through Friday)
of receipt. Contractor shall log action taken by Contractor to respond to and remedy the
complaint.
(C) Daily logs of complaints shall be retained for a minimum of twenty-four (24)
months and shall be available to City at all times upon request.
(D) All Customer service records and logs kept by Contractor shall be available to
City upon request. City shall, at any time during regular Office Hours, have access to
Contractor's Customer service department for purposes that may include monitoring the quality
of Customer service or researching Customer complaints. Contractor shall provide to City on a
monthly, quarterly, and annual basis, a complaint log, in a form approved by the City that
includes all of the complaints logged pursuant to this Section, the complainant and the resolution.
10.7.4 Resolution of Customer Complaints
(A) Disputes between Contractor and its Customers regarding the services provided in
accordance with this Agreement may be resolved by the City. The City's decision shall be final
and binding. Contractor shall pay City one hundred dollars ($100.00) for each City intervention
in a dispute between Contractor and a Customer if the City reasonably deems intervention is
required and the Customer's dispute is valid.
(B) Should Contractor and Customers not be able to establish a mutually acceptable
fee to be charged for special services as set forth in Section 8.7, the matter shall be dealt with
pursuant to this Section, be determined by the City, and the City's decision shall be final.
(C) Intervention by the City is not a condition precedent to any rights or remedies
third parties might otherwise have in any dispute with Contractor. Nothing in this Section is
intended to affect the remedies of third parties against Contractor.
10.7.5 Government Liaison
Contractor shall designate in writing a "Government Liaison" who shall be
responsible for working with City and/or City's designated representative(s) to resolve Customer
complaints. City shall have the right to approve the Contractor's choice for a liaison.
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10.8 Education and Public Awareness
10.8.1 General
(A) Contractor acknowledges and agrees that education and public awareness are
critical, key and essential elements of any efforts to achieve the requirements of AB 939, AB341,
AB1826 and SB 1383. Accordingly, Contractor agrees to exploit opportunities to expand public
and Customer knowledge concerning needs and methods to reduce, reuse and recycle Solid
Waste and to cooperate fully with City in this regard.
(B) Contractor shall maintain its own program of providing information relevant to
needs and methods to reduce, reuse and recycle Solid Waste with its bills. All public education
materials shall be approved in advance by City. Contractor shall keep a record of all promotional
and public education materials utilized, and shall provide quarterly reports summarizing its
public outreach and education efforts.
(C) At a minimum, Contractor shall conduct school assemblies and promote recycling
through presentations and educational materials to the Chamber of Commerce, homeowners
associations, construction contractors and other civic groups. Contractor shall also provide
articles on recycling for local newsletters. Contractor will report its public education activities to
City on a quarterly basis.
10.8.2 Implementation and On-going Education Requirements
(A) In order to promote public education, in addition to any other materials it
develops, Contractor shall create the following public education materials and programs at its
expense, which will be distributed as indicated below. All of these materials and programs shall
be produced and/or available in both English and Spanish languages.
(1) Container Labels — Refuse and Recycling Carts shall carry stickers/labels
or other identifying markings indicating the materials that should and should not be placed in
each Container, and noting holiday Collection schedules, and Contractor's Customer service
numbers.
(2) Annual Notices — Not less than once each year during the Term of this
Agreement, Contractor shall either prepare and mail notices to each Customer or take out an add
in a local paper approved by the City Manager, promoting and explaining the following:
programs (such as recycling, and Bulky Item Collections, and proper Hazardous Waste disposal);
changes in commercial services; Collection schedules, including holiday schedules; and the
procedures to begin and terminate services. These materials, and their precise content, shall be
subject to City Manager's review and approval.
(3) Corrective Action Notice — Contractor shall develop a corrective action
notification form for use in instances where a Customer sets out inappropriate materials for
Collection that explains the appropriate manner for disposal of such items.
(4) Web Site Page — Contractor shall dedicate one page of its web site to City
services, which shall include at least the following information: a listing of contact names and
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numbers for Customer Service; information on Bulky Item Collection; Collection schedules,
including holiday schedules; and the procedures to begin and terminate services. Contractor
shall assist the City in establishing a link to this web page from the City's web site.
(B) All brochures, mailings, and other educational materials are to be approved by the
City in advance of distribution, and shall bear the City seal, unless otherwise approved by the
City.
SECTION 11.
CONTRACTOR'S CONSIDERATION
In addition to any other consideration set forth herein, as part of its consideration for
entering this Agreement, and for the exclusive franchise, right and privilege to provide Solid
Waste Handling Services within City as specified herein Contractor shall provide the following:
11.1 Administrative Cost Reimbursement
Contractor shall reimburse City for: (1) its annual consultant costs in an amount equal to
One Hundred and Eight Thousand Dollars ($108,000.00) [adjusted annually on January 1 by the
change in the Consumer Price Index for All Urban Consumers, CUURA421 SA0 not seasonally
adjusted, all items index (CPI -U) — Los Angeles County, Riverside County, Orange County
average]; (2) its actual consultant costs related to requests from Contractor pertaining to this
Agreement [i.e., requests for discretionary rate adjustments, requests for transfers, or requests to
consider new programs]; and (3) its legal fees and out of pocket costs incurred in the
administration of this Agreement, including fees and costs associated with analyzing new
legislation, considering requests from Contractor (including specifically, without limitation,
requests for rate increases), and otherwise analyzing issues that arise in connection with this
Agreement (the "Administrative Cost Reimbursement"). Invoices for the Administrative Cost
Reimbursement will be provided to Contractor by City and shall be due to City within ninety
(90) days. If any invoice for the Administrative Cost Reimbursement is not paid on or before the
ninetieth (90th) day following the date upon which an invoice is mailed to Contractor, and in
addition to any other remedy provided by law, Contractor shall pay to City a penalty in an
amount equal to ten percent (10%) per month, or portion thereof, of the amount owing until paid.
11.2 Franchise Fee
Contractor shall pay to City, a franchise fee equal to ten percent (10%) of Contractor's
annual Gross Receipts each year, or portion thereof, during the entire Term of this Agreement
(the "Franchise Fee"). Except with respect to Gross Receipts collected by the County Tax
Assessor, said Franchise Fee shall be paid to City monthly on or before the fifteenth (15th) day
of each month. Should any such due date fall on a weekend or holiday in which the City's
business offices are closed, payment shall be due on the first day thereafter in which the City's
business offices are open. The amount of each payment shall be equal to ten percent (10%) of
Contractor's Gross Receipts in the calendar month preceding the date payment was due
(excluding amounts collected by the County Assessor). The Franchise Fee due hereunder shall
apply to Gross Receipts of Contractor collected after the expiration of the Term hereof relating to
Contractor's performance during the Term hereof. Franchise Fees shall be accompanied by a
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statement certified by an officer of Contractor attesting to the accuracy of the amounts paid, and
setting forth the basis for their calculation in a manner acceptable to City. The Franchise Fee due
in connection with amounts that are collected by the County Tax Assessor shall be deducted by
City prior to City forwarding funds it receives from the Tax Assessor for payment of Solid Waste
Handling Services to Contractor.
11.3 Services at City Facilities
Contractor shall provide Solid Waste Handling Services at all Premises owned and/or
operated by the City, at no cost to City and shall provide Containers for such service as City
deems appropriate for each of its various Premises (i.e., Carts, Bins or Rolloffs). Such services
shall be provided for all existing City facilities, as they may be expanded from time to time, and
all facilities acquired/constructed during the Term hereof. The existing City facilities at which
Solid Waste Handling Services are to be provided at no charge as of the Effective Date include,
but are not limited to, those listed in the attached Exhibit D. Excluded from the foregoing is the
Collection of waste resulting from the construction of new City facilities or demolition of
existing City facilities; provided, however, Contractor shall provide Solid Waste Handling
Services for such construction/demolition activities at City owned Premises at a rate that does
not exceed the maximum rate for such services as set forth on Exhibit A, including a discount of
fifteen percent (15%) off of the service component of such maximum rate.
11.4 AB 939 Fee
Contractor shall pay City an amount as more fully set forth below on a monthly basis
which is intended to defray City's costs associated with implementing and administering
recycling and diversion programs required to ensure compliance with AB 939 (the "AB 939
Fee"). Except with respect to Gross Receipts collected by the County Tax Assessor, said AB
939 Fee shall be paid to City monthly on or before the fifteenth (15th) day of each month.
Should any such due date fall on a weekend or holiday in which the City's business offices are
closed, payment shall be due on the first day thereafter in which the City's business offices are
open. AB 939 Fees shall be accompanied by a statement certified by an officer of Contractor
attesting to the accuracy of the amounts paid, and setting forth the basis for their calculation in a
manner acceptable to City. The AB 939 Fee due in connection with amounts that are collected
by the County Tax Assessor shall be deducted by City prior to City forwarding funds it receives
from the Tax Assessor for payment of Solid Waste Handling Services to Contractor. The
amount of each payment shall be based upon the type of service (excluding commercial
recycling bin services — no AB 939 fee) provided to each Customer and on a monthly basis shall
be as set forth on the following table:
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Table 1:
Monthly AB 939 Fee Calculation
• Customers receiving Carts or Manual Collection at Dwellings: $.10/month/Customer
• Rolloff Boxes: $1.00/ton of Solid Waste Collected
• Customers receiving refuse service in Bins:
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2 YARD BINS
Pickups Per Week
Monthly AB939 Fee
1
.90
2
1.63
3
2.32
4
3.02
5
3.67
6
4.41
3 YARD BINS
Pickups Per Week
AB939 Fee
1
1.19
2
2.14
3
3.07
4
3.95
5
4.88
6
5.77
4 YARD BINS
Pickups Per Week
AB939 Fee
1
1.61
2
2.72
3
3.84
4
4.97
5
6.05
6
7.13
6 YARD BINS
Pickups Per Week
AB939 Fee
1
2.41
2
4.09
3
5.78
4
7.48
5
9.11
6
10.76
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SECTION 12.
CHARGE FOR LATE PAYMENTS
In the event Contractor fails to timely make any of the payments provided for in this
Agreement (whether reimbursements, Franchise Fees, payments of funds collected in connection
with billing services, or otherwise), Contractor shall pay to City, as additional consideration, a
sum of money equal to five percent (5%) of the amount due. This amount is required in order to
defray those additional expenses and costs incurred by City by reason of the delinquent payment
including, but not limited to, the cost of administering, accounting for, and collecting said
delinquent payment and the cost to City of postponing services and projects necessitated by the
delay in receiving the revenue. In addition, any amounts not paid to City by Contractor within
sixty (60) days of the due date shall be subject to interest in the amount of seven percent (7%)
per annum, calculated on a daily basis for each day such sums remain past due.
SECTION 13.
CONTRACTOR'S BILLING SERVICES AND SYSTEMS
13.1 Residential Customers
13.1.1 General — Tax Roll Billing
Each Customer at a Single Family Dwelling will be billed via the County tax rolls an
amount for the service they receive (i.e., Automated via Carts or Manual Service); excepting
those premises for which a Self Hauler exemption has been established as provided in the
Municipal Code. If, for any reason, billing for a Customer at a Single Family Dwelling is not
placed on the tax rolls as contemplated by the parties herein, such Customer shall be billed for
services by Contractor in the same manner as other Customers, as set forth herein below. The
maximum rate Contractor may charge Customers at a Single family Dwellings (if any) that are
billed "directly" rather than through the tax rolls, shall be as indicated on the attached Exhibit A.
13.1.2 Credit for Residential Customers Receiving Bin Service
Any Customer at a Single Family Dwelling that receives Solid Waste Handling Services
in a Bin, rather than through the use of a Refuse Cart or Manual Service, shall be billed by
Contractor for such service as if they were a Commercial or Multi -Family Dwelling Customer
and shall receive a credit from Contractor in an amount equal to the monthly charge for the
service type for which they are billed on the tax rolls (with this credit clearly set forth on each
billing statement).
13.1.3 Refunds for Vacant Properties
Customers that own Single Family Dwellings which are vacant for more than one
hundred twenty (120) days shall be entitled to a refund from Contractor for any amounts paid on
the tax rolls for services hereunder for each thirty (30) day period during which the vacancy
exists. Such Customers shall be responsible to provide reasonable evidence to Contractor,
pursuant to such guidelines as the City Manager is hereby authorized to develop, demonstrating
the Premises was vacant for the period in question and that payments for which reimbursement is
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sought was placed on the tax rolls for the Premises and paid. Requests for refunds shall be made
within twelve (12) months of the date payment is due as established by the County Tax Assessor.
Contractor shall be responsible to develop a methodology for evaluating and paying such refund
requests, which shall be subject to the City Manager's approval. Any Customer grievance
regarding a request for a refund pursuant to this Section may be appealed by the Customer to the
City Manager whose decision shall be final. Contractor shall be entitled to receive a credit
against future Franchise Fee payments for overpayments of Franchise Fees that may occur due to
refunds provided pursuant to this Section.
13.2 Billing and Payment for Commercial and Multi -Family Customers
13.2.1 General
In connection with any Customer not billed on the County tax rolls for services provided
hereunder, Contractor shall provide itemized bills for Solid Waste Handling Services, distinctly
showing charges for all classifications of services, including charges for late payments.
Contractor acknowledges that it, and not Customers, is to pay a Franchise Fee and AB 939 Fee to
City as consideration for this Agreement. Accordingly, Contractor's bills shall not include
separate itemization of a "franchise fee" "AB 939 Fee" or other similar designation. Billings
shall be made monthly for Commercial Customers and may occur quarterly for Customers at
Multi -Family or Single Family Dwellings. Customers may be billed in advance of, or
subsequent to services being provided at the option of Contractor. Premises ordering service
after the first of the month or canceling service prior to the end of the month shall be charged on
a prorated per -pickup basis.
13.2.2 Unoccupied Premises
During any time when a Premises is unoccupied for more than one hundred twenty (120)
days, and Collection services are not provided by Contractor, Contractor shall not bill such
Premises for Solid Waste Handling Service. The Customer at any such Premises shall be
responsible to provide reasonable evidence to Contractor, pursuant to such guidelines as the City
Manager is hereby authorized to develop, demonstrating the Premises was vacant for the period
in question. Any Customer grievance regarding a claim that a Premises was unoccupied and
received no service, and hence should not be billed for a given period pursuant to this Section,
may be appealed by the Customer to the City Manager whose decision shall be final.
13.2.3 Delinquent Accounts
Contractor may discontinue service to any Customer as set forth in this Section.
Customers who have not remitted required payments within thirty (30) days after the date of
billing shall be notified on forms approved by the City Manager. Said forms shall contain a
statement that services may be discontinued fifteen (15) days from the date of notice if payment
is not made before that time. If payment is not made by the expiration of said fifteen (15) day
period, Contractor may discontinue service forty-eight (48) hours thereafter. Contractor shall
resume Solid Waste Handling Services on the next regularly scheduled Collection day for any
Customer whose service is discontinued upon receipt of payment of delinquent fees and any
related service restart charges, or at such sooner time as directed to do so by City. Any
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delinquent fees or service charges to be imposed in connection with delinquent accounts shall be
set by Contractor and be subject to City Manager approval.
13.2.4 Minimum Requirements for Billing Statements
In addition to any other pertinent data, billing statements mailed by Contractor shall be
printed to contain the following information:
(A) A "statement date" indicating the date the bill is generated and mailed.
(B) A notice to Customers that payments are due upon receipt of the bill, an
advisement that the Customer's account will become delinquent if payment is not received by the
30th day following the statement date, an advisement of the date and time by which payments
must be received in order to avoid delinquent fees (i.e., 4:00 p.m. on the 45th day following the
statement date), and a notification of the amount of fees that will be imposed and the potential
for service interruptions if payments are not received by the specified date and time.
(C) An advisement to Customers that payments can be made in the following manner:
designate; or
(1) by mailing payment to Contractor at such address as Contractor may
(2) by automatic withdrawal from a checking account; or
(3) by major credit card on-line (i.e., via the Internet).
(D) An advisement that inquiries relating to Solid Waste Handling Services should be
directed to Contractor, including an address, phone number and internet site, for such inquiries.
13.2.5 Billing System
13.2.5.1 Computerization of Account Information
Contractor shall provide and maintain, at its expense, computer equipment
sufficient to operate pertinent computer programs and otherwise provide the services required by
this Section. Contractor shall create, at its own expense, computer programs sufficient to operate
a computerized billing system, permanently maintain all account records and otherwise meet the
requirements of this Section.
13.2.5.2 Minimum Computer Programming Requirements
In addition to any other requirements set forth herein, the programs created by
Contractor to operate and maintain the billing system shall at a minimum be able to perform the
following functions:
(A) create a permanent record of any adjustment to a Customer's account;
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(B) work in connection with a backup system such that all Customer account data and
records is protected from a computer failure and permanently preserved on not less than a daily
basis;
(C) allow Customers to make payments on-line (i.e., via the Internet) by a major
credit card.
13.2.6 Billing Inquiries
All billing inquiries shall be entered into the computerized billing system.
Contractor's computer programs shall keep a permanent record of all billing inquiries and all
adjustments to Customer bills resulting therefrom.
13.2.7 Distribution of Public Information
If requested to do so by City, and at no charge to City, Contractor shall insert any
printed material prepared by City into its billing statements for delivery to its Customers. City
shall not request Contractor to include any printed material in its bills if such material is of a
size, shape, or weight that would increase Contractor's postage costs or if such material does not
fit into the envelopes utilized by Contractor to mail the bills. Any printed material to be included
in the bills to be mailed by Contractor shall be provided to Contractor within a reasonable time in
advance of Contractor's scheduled mailing date, such that the insertion of such material into
billing envelopes does not delay their scheduled mailing date.
13.3 Payment, Accounting Systems
13.3.1 Collection and Processing of Payments
13.3.1.1 Accounting and Deposit of Funds
All payments received by Contractor shall be appropriately credited to Customer
accounts, deposited in a bank account and accounted for in a businesslike manner utilizing
generally accepted accounting principles. To facilitate audits and record keeping Contractor
shall make all withdrawals from its bank accounts by check, regardless of whether the
withdrawal is to provide funds to City, Contractor, or any permissible subcontractor of
Contractor.
13.3.1.2 Allocation of Funds
With respect to payments received from each Customer, unless a Customer
specifically directs a different allocation, funds shall be allocated first to outstanding charges for
Solid Waste Handling Services, then to any related delinquency fees or other administrative
charges, up to the amount of any outstanding balance. Any overpayment shall be credited to
future bills in the same sequence, or returned to Customers as appropriate.
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13.313 Allocation of Funds by City
Within ninety (90) days of City's receipt of funds from the County Tax Assessor
for payment of Solid Waste Handling Services, City shall provide an accounting to Contractor of
the funds received and City's allocation of such funds. City shall at the same time forward the
amounts it received from the County Tax Assessor as payment for Solid Waste Handling
Services to Contractor, but shall withhold any amounts due to City as Franchise Fees and AB
939 Fees, as well as an amount equal to any amounts due to City pursuant to the terms hereof but
not yet paid by Contractor.
13.3.1.4 Tax Roll Payments Limited
City has agreed to continue the practice established in the Prior Agreement of
allowing the rates charged by Contractor to its Customers for services to be collected on the
County property tax rolls. City is not by entering this agreement imposing any tax or levy on
Contractor's Customers, and Contractor shall bear all risk that the property tax levy is not
sufficient to cover its fees for services. Should that occur, Contractor's sole remedy shall be
against its Customer, and Contractor shall have no recourse with City. In as much as payments
may occur through the tax rolls by Customer's prior to services being received, City shall have
the right to adjust payments to Contractor pursuant to Section 13.3.1.3 to ensure Contractor is not
paid for services it does not provide. For instance, in the event payments occur in advance of the
end of the Term of this Agreement, City shall not deliver funds to Contractor for periods
following the end of the Term in which Contractor does not actually provide services.
13.4 Billing and Enrollment
A. Any contamination Processing fees to be assessed for a Customer shall be
included and itemized on the Customer's invoice for the billing period in which the Contractor
notified the Customer of the assessment of the contamination Processing fee.
B. City requires that Generators subscribe to Collection services. Contractor shall
assist the City in ensuring that the subscription of Generators occurs in a timely and efficient
manner. Contractor shall maintain records and provide reports necessary for the City to verify
the subscription of Generators.
SECTION 14.
FAITHFUL PERFORMANCE
(A) Contemporaneously with execution of this Agreement, as security for
Contractor's faithful performance of all obligations of this Agreement, Contractor shall provide a
surety mechanism (the "Surety") as more fully defined below in the amount of One Million
Dollars ($1,000,000.00). The Surety may be comprised of a combination of a performance bond
and an irrevocable letter of credit however not more than ninety percent (90%) of the Surety may
be in the form of a performance bond. The letter of credit utilized to satisfy the Surety
requirement shall be drawn upon a financial institution with an office within one hundred (100)
miles of City, and otherwise in a form acceptable to the City Attorney, and the performance
bond, if any, shall be issued by a duly authorized corporate surety company authorized to do
business in California, and in a from acceptable to the City Attorney. The cost of the Surety
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shall be the sole responsibility of Contractor. The Surety shall be released within thirty (30) days
after both (i) the expiration of the Term of this Agreement; and (ii) Contractor's satisfactory
performance of all obligations hereunder.
(B) In the event Contractor shall for any reason become unable to, or fail in any way
to, perform as required by this Agreement, City may declare a portion or all of the Surety, as
may be necessary to recompense and make whole the City, forfeited to the City. Upon partial or
full forfeiture of the Surety, Contractor shall restore the Surety to its original amount within
thirty (30) days of the City's notice to do so. Failure to restore the Surety to its full amount
within thirty (30) days shall be a material breach of this Agreement.
(C) Notwithstanding any provision hereof to the contrary, thirty (30) days following
City providing Contractor with written notice of its failure to pay City any amount owing under
this Agreement, either the letter of credit or performance bond comprising the Surety may be
utilized by City for purposes including, but not limited to:
(1) Payment of sums due under the terms of this Agreement which Contractor
has failed to timely pay to City, including specifically liquidated damages.
(2) Reimbursement of costs borne by City to correct violations of this
Agreement not corrected by Contractor.
(D) City may draw upon the entire letter of credit utilized to meet Contractor's
obligations pertaining to the Surety, and convert it to a cash deposit, if Contractor fails to cause
the letter of credit to be extended or replaced with another satisfactory letter of credit no later
than sixty (60) days prior to its expiration.
SECTION 15.
INSURANCE COVERAGE
Contractor shall procure and maintain during the entire Term of this Agreement
the following types of insurance, and shall maintain the following minimum levels of coverage,
which shall apply to any claims which may arise from or in connection with Contractor's
performance hereunder or the actions or inactions of any of Contractor's officers, agents,
representatives, employees, or subcontractors in connection with Contractor's performance. The
insurance requirements hereunder in no way limit Contractor's various defense and
indemnification obligations, or any other obligations as set forth herein.
15.1 Minimum Scope of Insurance.
Coverage shall be at least as broad as:
1. The most recent editions of Insurance Services Office Commercial General
Liability coverage ("occurrence" form CG 00 01).
2. The most recent editions of Insurance Services Office form number CA 00 01
1001 covering Automobile Liability, code 1 "any auto".
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3. Workers' Compensation insurance as required by the Labor Code of the State of
California and Employers Liability insurance.
15.2 Minimum Limits of Insurance.
Contractor shall maintain in force for the term of this Agreement limits no less than:
a. Comprehensive General Liability: Ten Million Dollars ($10,000,000) limit
aggregate and Ten Million Dollars ($10,000,000) limit per occurrence for bodily
injury, personal injury and property damage. Such limits can be achieved through
a combination of primary and excess liability policies.
b. Automobile Liability: Ten Million Dollars ($10,000,000) limit aggregate and Ten
Million Dollars ($10,000,000) limit per accident for bodily injury and property
damage. Such limits can be achieved through a combination of primary and
excess liability policies.
c. Workers' Compensation and Employers Liability: Workers' compensation limits
as required by the Labor Code of the State of California and Employers Liability
limits of One Million Dollars ($1,000,000) per accident.
15.3 Deductibles and Self -Insured Retentions.
Any deductibles or self-insured retentions must be declared to and approved by City. If,
in the reasonable opinion of the City, Contractor does not have sufficient financial
resources to protect the City from exposure with respect to any deductibles or self-
insured retentions, at the option of City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retention's as respects City, its officials, employees and
agents; or Contractor shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
15.4 Other Insurance Provisions.
The policies are to contain, or be endorsed to contain, the following provisions:
15.4.1 General Liability and Automobile Liability Coverages
City, its elective and appointive boards, commissions, officials, employees, agents
and volunteers are to be named as additional insureds as respects: liability arising out of
activities performed by or on behalf of Contractor; Premises owned, leased or used by
Contractor; or vehicles owned, leased, hired or borrowed by Contractor. The coverage shall
contain no special limitations on the scope of protection afforded to City, its elective and
appointive boards, commissions, officials, employees, agents or volunteers.
Contractor's insurance coverage shall be primary insurance as respects City, its
elective and appointive boards, commissions, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by City, its officials, elective and appointive boards,
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commissions, employees, agents or volunteers shall be excess of Contractor's insurance and shall
not contribute with it.
Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to City, its officials, elective and appointive boards, commissions, employees,
agents or volunteers.
Coverage shall state that Contractor's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the limits of the
insurer's liability.
15.4.2 Workers' Compensation and Employers Liability Coverage
The insurer shall agree to waive all rights of subrogation against City, its officials,
elective and appointive boards, commissions, employees, agents and volunteers for losses arising
from work performed by Contractor for City.
15.4.3 All Coverages
Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in
limits except after thirty (30) days' prior written notice by certified mail, return receipt requested,
has been given to City.
15.5 Acceptability of Insurers.
The insurance policies required by this Section shall be issued by an insurance
company or companies authorized to do business in the State of California and with a rating in
the most recent edition of Best's Insurance Reports of size category VII or larger and a rating
classification of A or better, unless otherwise approved by the City Manager.
15.6 Verification of Coverage.
Contractor shall furnish City with certificates of insurance and with original
endorsements affecting coverage required by this Article. The certificates and endorsements for
each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on
its behalf. The certificates and endorsements are to be on forms provided by or acceptable to
City and are to be received and approved by City before work commences. City reserves the
right to require complete, certified copies of all required insurance policies, at any time.
15.7 Loss or Reduction in Insurance
In the event that Contractor fails to retain or maintain insurance with the scope and
amounts of coverage required hereunder, City shall have the right, but not the obligation to either
terminate this Agreement, or obtain insurance coverage as required herein on behalf of
Contractor and utilize funds from the Surety defined in Section 14 to pay the cost of providing
such coverage.
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SECTION 16.
ASSIGNMENT, SUBLETTING, AND TRANSFER;
REQUIREMENTS AND LIMITATIONS
16.1 General
Contractor shall not assign its rights, nor delegate, subcontract or otherwise transfer its
obligations under this Agreement (collectively referred to as an "Assignment") to any other
Person without the prior approval by the City Council of the City. Any such Assignment made
without the approval by the City Council of the City shall be void and the attempted Assignment
shall constitute a material breach of this Agreement.
16.2 "Assignment" to be Broadly Interpreted
For purposes of this Section the term "Assignment" shall be given the broadest possible
interpretation, and shall include, but not be limited to: (i) a sale, exchange or other transfer of
substantially all of the Contractor's assets dedicated to service under this Agreement to a third
party; (ii) a sale, exchange or other transfer of any membership interest of Contractor to a third
party; (iii) any dissolution, reorganization, consolidation, merger, re -capitalization, stock
issuance or re -issuance, voting trust, pooling agreement, escrow arrangement, liquidation or
other transaction which results in a change of ownership or control of Contractor; (iv) any
assignment by operation of law, including those resulting from mergers or acquisitions by or of
Contractor of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit
of creditors, writ of attachment for an execution being levied against this Agreement,
appointment of a receiver taking possession of Contractor's property, or transfer occurring in the
event of a probate proceeding; and (v) any combination of the foregoing (whether or not in
related or contemporaneous transactions) which has the effect of any such transfer or change of
ownership, or change of control of Contractor.
16.3 Nature of Agreement — Personal to Contractor
Contractor acknowledges that this Agreement involves rendering a vital service to City's
residents and businesses, and that City has selected Contractor to perform the services specified
herein based on (1) Contractor's experience, skill and reputation for conducting its Solid Waste
Handling Services in a safe, effective and responsible fashion, at all times in keeping with
applicable Environmental Laws, regulations and best Solid Waste management practices, and
(2) Contractor's financial resources to maintain the required equipment and to support its
indemnity obligations to City under this Agreement. City has relied on each of these factors,
among others, in choosing Contractor to perform the services to be rendered by Contractor under
this Agreement.
16.4 Procedure for Consideration of Assignment
If Contractor requests City's consideration of and consent to an Assignment, the City
Council of City may deny, approve or conditionally approve such request in its sole and absolute
discretion. Under no circumstances shall City be obliged to consider any proposed Assignment
if Contractor is in default at any time during the period of consideration. Should the City consent
to any Assignment request, such Assignment shall not take effect until all conditions relating to
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the City's approval have been met Any request for an Assignment shall be made in a manner to
be prescribed by the City Manager, and no request by Contractor for consent to an Assignment
need be considered by City unless and until Contractor has met (or with respect to matters that
would only occur upon completion of the Assignment if approved, made reasonable assurances
that it will meet) the following requirements:
(A) Contractor shall undertake to pay City its reasonable direct and indirect expenses,
including administrative, investigative, consulting, and attorney's fees and costs necessary to
investigate the suitability of any proposed assignee, and to review and finalize any
documentation required as a condition for approving any such Assignment (collectively the
"Administrative Assignment Fee"). An advance non-refundable payment of seventy five
thousand dollars ($75,000.00) towards the Administrative Assignment Fee shall be paid to the
City prior to City's consideration of any Assignment request, although Contractor shall be
responsible to pay all costs incurred by City in considering a request for Assignment, including
those in excess of the aforesaid deposit amount, regardless of whether City consents to the
Assignment.
(B) Contractor shall pay to City a transfer fee (the "Transfer Fee") in the following
amount:
(1) if the request is dated prior to June 30, 2019, the fixed Transfer Fee shall
be two hundred fifty thousand dollars ($250,000.00);
(2) if the request is dated after June 30, 2019, and prior to June 30, 2020, the
fixed Transfer Fee shall be two hundred thousand dollars ($200,000.00);
(3) if the request is dated after June 30, 2020, and prior to June 30, 2021, the
fixed Transfer Fee shall be one hundred fifty thousand dollars ($150,000.00);
(4) if the request is dated after June 30, 2021, and prior to June 30, 2022, the
fixed Transfer Fee shall be one hundred thousand dollars ($100,000.00);
(5) if the request is dated after June 30, 2022, and prior to June 30, 2023, the
fixed Transfer Fee shall be seventy five thousand dollars ($75,000.00);
(6) if the request is dated after June 30, 2023, the fixed Transfer Fee shall be
fifty thousand dollars ($50,000.00).
(C) If requested to do so, Contractor shall furnish City with audited financial
statements of the proposed assignee's operations for the immediately preceding three (3)
operating years.
(D) Contractor shall furnish City with satisfactory proof: (i) that the proposed
assignee has at least ten (10) years of Solid Waste management experience on an scale equal to
or exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in
the last five (5) years, the proposed assignee has not suffered any significant citations or other
censure from any federal, state or local agency having jurisdiction over its Solid Waste
management operations due to any significant failure to comply with state, federal or local laws,
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including the Environmental Laws and that the assignee has provided City with a complete list of
such citations and censures; (iii) that the proposed assignee has at all times conducted its
operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee
conducts its Solid Waste management practices in accordance with sound Solid Waste
management practices in full compliance with all federal, state and local laws regulating the
Collection and disposal of Solid Waste including Hazardous Substances; and, (v) of any other
information required by City to ensure the proposed assignee can fulfill the terms of this
Agreement in a timely, safe and effective manner.
(E) The proposed assignee shall execute an agreement assuming all of Contractors
rights and liabilities under this Agreement.
16.5 Assignment to a Family Member
(A) Contractor is a Limited Liability Company (LLC) the membership interests for
which are divided equally among four family members: Ed Burr, Cole Burr, Sandra Burr and
Tracy Burr. Notwithstanding the fact it would otherwise fall within the provisions of this
Section, any transfer of membership interests to an immediate family member of any of the
above noted members may occur with the written approval of the City Manager, and without any
of the other provisions of this Section 16 applying if Contractor certifies and the City Manager
verifies that the transfer is in fact to an immediate family member or members; and, the City
Manager finds both of the following: (i) that the transfer of membership interest will have no
adverse impact on Contractor's operations in City, and (ii) that the transfer of membership
interest will not result in any interest in Contractor being vested in any person who is not an
immediate family member of the above noted four initial members of Contractor. In the event
the City Manager is unable to make these findings, or has any concern regarding his ability to do
so, he may refer the matter in whole or part to the City Council for its consideration, approval, or
other action, and the City Council shall have the discretion to consider the matter as if it is a
transfer as described in Sections 16.1 through 16.4.
SECTION 17.
REVIEW OF SERVICES AND PERFORMANCE
17.1 Performance Hearing
(A) Commencing in or about October 2022, and on a biennial basis thereafter, City
may hold a public hearing to review Contractor's Solid Waste Collection efforts, source
reduction, processing and other diversion services and overall performance under this Agreement
(the "Solid Waste Services and Performance Review Hearing"). The purpose of the Solid Waste
Services and Performance Review Hearing is to provide for a discussion and review of
technological, economic, and regulatory changes in Collection, source reduction, recycling,
processing and disposal to achieve a continuing, advanced Solid Waste Collection, source
reduction and recycling and disposal system; and to ensure services are being provided by
Contractor with adequate quality, effectiveness and economy and in full compliance with the
terms of this Agreement. Topics for discussion and review at the Solid Waste Services and
Performance Review Hearing shall include, but shall not be limited to, services provided,
feasibility of providing new services, application of new technologies, Customer complaints,
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amendments to this Agreement, developments in the law, new initiatives for meeting or
exceeding AB 939's goals, regulatory constraints and Contractor performance. City and
Contractor may each select additional topics for discussion at any Solid Waste Services and
Performance Review Hearing.
(B) In addition to the Solid Waste Services and Performance Review Hearings City
may hold in accordance with the immediately preceding paragraph, if the number of Customer
complaints regarding Contractor's Solid Waste Handling Services are deemed by City to be
excessive, City may, at any time (subject to the paragraph immediately below), hold a Solid
Waste Services and Performance Review Hearing.
(C) City shall notify Contractor of its intent to hold a Solid Waste Services and
Performance Review Hearing at least ninety (90) days in advance thereof. Forty-five (45) days
after receiving notice from City of a Solid Waste Services and Performance Review Hearing,
Contractor shall submit a report to City which may contain such information as it wished to have
considered, and shall contain the following:
(1) Current diversion rates and a report on Contractor's outreach activities for
the past year.
(2) Recommended changes and/or new services to improve the City's ability
to meet the goals of AB 939 and to contain costs and minimize impacts on rates.
(3) Any specific plans for provision of changed or new services by
Contractor.
(D) The reports required by this Agreement regarding Customer complaints shall be
used as one basis for review of Contractor's performance, and Contractor may submit other
relevant performance information and reports for consideration at the Solid Waste Services and
Performance Review Hearing. In addition to the above, City may request Contractor to submit
any other specific information relating to its performance for consideration at the Solid Waste
Services and Performance Review Hearing, and any Customer may submit comments or
complaints during or before the Hearing, either orally or in writing. Contractor shall be present
at and participate in the Solid Waste Services and Performance Review Hearing.
17.2 Performance Satisfaction Survey
If requested by the City, Contractor will create and conduct a survey at Contractor's
expense in preparation for any Solid Waste Services and Performance Review Hearing held
pursuant to Section 17.1. City shall notify Contractor of its desire for such a survey at least
ninety (90) days in advance of the Solid Waste Services and Performance Review Hearing. The
purpose of the survey is to determine Customer satisfaction with current Collection services and
Customer service provided by the Contractor. The Survey will be distributed to a minimum of
ten percent (10%) of the Customers, selected at random. Contractor shall obtain City's approval
of the survey's content, format, and mailing list prior to its distribution. The City may require
that Contractor have Customer responses to the survey returned directly to the City. The Survey
results shall be made available to the City thirty (30) days prior to the Solid Waste Services and
Performance Review Hearing.
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SECTION 18.
CITY'S REMEDIES; DEFAULT AND TER1VIINATION
18.1 Notice of Default
If the City Manager determines that Contractor has defaulted in the performance of any
obligation hereunder, or that Contractor's performance pursuant to this Agreement with respect
to such matters has not been in conformity with reasonable industry standards which are obtained
in similar cities in Southern California, the provisions of this Agreement, the requirements of the
Municipal Code, the requirements of CalRecycle, including, but not limited to, requirements for
source reduction and recycling or any other applicable Federal, State, or local law or regulation,
including but not limited to the laws governing transfer, storage, or disposal of special wastes, or
hazardous wastes, the City Manager may provide written notice to Contractor of such default.
The City Manager may, in such written notice, set a reasonable time within which correction of
such default shall be made. Unless a longer or shorter time is otherwise specified by the City
Manager, a reasonable time for correction shall be thirty (30) days from the date such written
notice is given.
18.2 Failure to Cure
If Contractor fails to correct, to the satisfaction of the City Manager, all deficiencies
contained in the written notice thereof within the specified time, or if it is not reasonably possible
to correct such deficiencies within the specified time, and Contractor fails to commence to
correct or remedy such deficiencies within the specified time and diligently effect such
correction or remedy thereafter, then the City Manager may refer the matter to the City Council
for review, or review the matter himself.
18.3 Review by City Manager
If the City Manager reviews the matter and determines that Contractor has failed to
properly or adequately cure any default set forth above, the City Manager, in the exercise of his
discretion, may terminate this Agreement, or take such other action as he deems appropriate to
pursue any remedy available to City. A decision or order of the City Manager shall be final and
binding on Contractor unless Contractor files a "Notice of Appeal" with the City Clerk within
five (5) business days of the date the notice of the City Manager's decision is given. The City
Manager shall schedule any appeal for consideration by the City Council at the earliest feasible
City Council Meeting following the date a Notice of Appeal is given to City.
18.4 City Council Review
In the event an appeal of a decision of the City Manager is filed, or if the City Manager
refers the matter to the City Council without rendering a decision, the City Council shall set the
matter for consideration before the City Council as a regular agenda item. In reviewing the
matter the City Council may consider any information reported by the City Manager regarding
the deficiencies, and shall give Contractor, or its representatives and any other interested person,
a reasonable opportunity to be heard. The Council shall determine whether Contractor has failed
to properly or adequately perform as set forth above, and if so whether to terminate the
Agreement, or to pursue any other remedy available to City.
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18.5 Performance During Reviews
Contractor's performance under this Agreement is not excused during any period of time
when its performance is under review as set forth above, including at any time prior to a final
decision as to whether such performance is deficient.
18.6 Termination without Right to Cure
The above right of termination as a result of Contractor's failure to timely cure any
deficiency is in addition to City's right to terminate this Agreement without affording Contractor
an opportunity to cure in circumstances where Contractor is determined by City to have
materially breached this Agreement. City shall thus be afforded the right to terminate this
Agreement in the event of any material breach hereof by Contractor without affording Contractor
the right to cure as a result of any action, inaction or circumstance which is a legally defined
material breach, or is defined herein as a material breach, and/or under any of the following
circumstances which are hereby specifically defined as material breaches:
(A) If Contractor practices, or attempts to practice, any fraud upon City.
(B) If Contractor becomes insolvent, unable, or unwilling to pay its debts, or upon
listing of an order for relief in favor of Contractor in a bankruptcy proceeding.
(C) If Contractor willfully violates any orders or rulings of any regulatory body
having jurisdiction over Contractor relative to this Agreement. So long as City's rights are not
prejudiced during the pendency of any challenge to such orders or rulings by Contractor,
Contractor may contest any such orders or rulings by appropriate proceedings conducted in good
faith, in which case no material breach of this Agreement shall be deemed to have occurred until
a final ruling has been rendered.
(D) If Contractor ceases to provide Solid Waste Handling Services, including
Collection of Solid Waste and/or Recyclable Material, as required under this Agreement over all
or any portion of the Franchise Area for a period of seven (7) days or more, for any reason not
specified as a force majeure event hereunder.
(E) If Contractor fails to materially comply with any insurance or indemnification
requirement set forth in this Agreement.
(F) If City is required to pay any fine or penalty, which is not paid on its behalf by
Contractor or which Contractor fails, refuses, neglects or is unable to pay or indemnify City
against, relating to any diversion or other requirement of AB 939.
(G) If Contractor, or any management level employee of Contractor is convicted of a
Criminal Matter (as defined herein). For purposes of this Section the term Criminal Matter refers
to any felony or misdemeanor offense having any relationship to either Solid Waste Handling
Services or public corruption (including, without limitation, bribery, conflict of interest related
allegations, vote selling, or any similar type charges).
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18.7 Liquidated Damages
18.7.1 General
The City finds, and Contractor agrees, that as of the time of the execution of this
Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages
which shall be incurred by City as a result of a breach by Contractor of certain specific
obligations under this Agreement. The factors relating to the impracticability of ascertaining
damages include, but are not limited to, the fact that: (i) substantial damage results to members
of the public who are denied services or denied quality or reliable service; (ii) such breaches
cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to
individual members of the general public for whose benefit this Agreement exists, in subjective
ways and in varying degrees of intensity which are incapable of measurement in precise
monetary terns; (iii) that the services that are the subject of this Agreement might be available at
substantially lower costs than alternative services and the monetary loss resulting from denial of
services or denial of quality or reliable services is impossible to calculate in precise monetary
terms; and (iv) the termination of this Agreement for such specific breaches, and other remedies
are, at best, a means of future correction and not remedies which make the public whole for past
breaches.
18.7.2 Service Performance Standards; Liquidated Damages for Failure to Meet
Standards
The parties further acknowledge that consistent, reliable Solid Waste Handling
Service is of utmost importance to City and that City has considered and relied on Contractor's
representations as to its quality of service commitment in entering this Agreement with it. The
parties further recognize that some quantified standards of performance are necessary and
appropriate to ensure consistent and reliable service and performance. The parties further
recognize that if Contractor fails to achieve the performance standards, or fails to submit
required documents in a timely manner, City and its residents will suffer damages and that it is
and will be impractical and extremely difficult to ascertain and determine the exact amount of
damages which City will suffer. Therefore, without prejudice to City's right to treat such
breaches as an event of default, the parties agree that the following liquidated damage amounts
represent a reasonable estimate of the amount of such damages for such specific breaches,
considering all of the circumstances existing on the date of this Agreement, including the
relationship of the sums to the range of harm to City that reasonably could be anticipated and the
anticipation that proof of actual damages would be costly or impractical. In placing their initials
at the places provided, each party specifically confirms the accuracy of the statements made
above and the fact that each party has had ample opportunity to consult with legal counsel and
obtain an explanation of the liquida d ■• mage provisions at the time that the Agreement was
made.
Contractor
Initial Here
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City
Initial Here
18.7.3 Calculations for Liquidated Damages
Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts
set forth below for each type of action warranting such damages:
18.7.3.1 Collection Reliability
(A) For each failure to commence service to a new Customer account within seven (7)
days after order, which exceed five (5) such failures annually: $150.00
(B) For each failure, which exceeds ten (10) such failures annually, to Collect Solid
Waste from any established Customer account on the scheduled Collection day and not Collected
within the period described in this Agreement: $150.00
(C) For each failure to Collect Solid Waste, which has been properly set out for
Collection, from the same Customer on two (2) consecutive scheduled pickup days: $150.00
18.7.3.2 Collection Quality
(A) For each occurrence of failure to properly return empty Containers to avoid
pedestrian or vehicular traffic impediments or to place Containers upright with lids secured
which exceeds ten (10) such occurrences annually: $150.00
(B) For each occurrence of excessive noise or discourteous behavior which exceeds
ten (10) such occurrences annually: $250.00
(C) For each occurrence of Collecting Solid Waste during unauthorized hours which
exceeds five (5) such occurrences annually: $250.00
(D) For each occurrence of damage to private property which exceeds five (5) such
occurrences annually: $250.00
(E) For each failure to clean up Solid Waste spilled from Containers within 90
minutes that exceeds ten (10) such failures annually: $150.00
18.7.3.3 Customer Responsiveness
(A) For each failure to initially respond to a Customer complaint within one (1)
business day, which exceeds five (5) such occurrences annually, and for each additional day in
which the complaint is not addressed: $250.00
(B) For each failure to process Customer complaints to City as required herein, which
exceeds five (5) such occurrences annually: $250.00
(C) For each failure to remove graffiti from Containers, or to replace with Containers
bearing no graffiti, within twenty-four (24) hours of request from City or Customers: $150.00
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18.7.3.4 Timeliness of Submissions to City
(A) Any report shall be considered late until such time as a correct and complete
report is received by City. For each calendar day a report is late, the daily liquidated damage
amount shall be:
(1) Monthly Reports: $100.00 per day
(2) Quarterly Reports: $250.00 per day
(3) Annual Reports: $350.00 per day
18.7.4 Process for Assessment of Liquidated Damages
(A) City may determine the occurrence of events giving rise to liquidated damages
through the observation of its own employees or representative or investigation of Customer
complaints.
(B) Prior to assessing liquidated damages, City shall give Contractor notice of its
intention to do so. The notice will include a brief description of the incident(s)/non-performance.
Contractor may review (and make copies at its own expense) all information in the possession of
City relating to incident(s)/non-performance. Contractor may, within ten (10) days after
receiving the notice, request a meeting with City. Contractor may present evidence in writing
and through testimony of its employees and others relevant to the incident(s)/non-performance.
City will provide Contractor with a written explanation of his or her determination on each
incident(s)/non-performance prior to authorizing the assessment of liquidated damages. The
decision of City shall be final.
(C) City may assess liquidated damages for each calendar day or event, as
appropriate, that Contractor is determined to be liable in accordance with this Agreement.
18.7.5 Timing of Payment
Contractor shall pay any liquidated damages assessed by City within ten (10) days
after they are assessed. If they are not paid within the ten (10) day period, City may proceed
against any security required by this Agreement to obtain payment, deduct amounts due from
funds it receives from the County Tax Assessor which would otherwise be due Contractor,
and/or find Contractor in default and exercise its right to terminate this Agreement as set forth
herein.
SECTION 19.
CONTRACTOR'S REMEDIES; ADMINISTRATIVE HEARING
19.1 Administrative Hearing
Should Contractor contend that City is in breach of any aspect of this Agreement, it shall
give notice to the City Manager requesting an administrative hearing on the allegation. The
hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the
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parties, and shall be held before an impartial hearing officer to be determined by the City
Manager. The hearing officer shall make an advisory ruling on Contractor's allegations, and
suggest a remedy if a breach by City is determined to exist. The hearing officer's ruling and
recommendations shall become final and binding if the parties so agree in writing within thirty
(30) days of the date notice of the decision is given to both parties. Otherwise, the hearing
officer's ruling shall have no further force or effect.
19.2 Other Remedies; Claims
Contractor shall be entitled to all available remedies in law or equity for City's breach of
this Agreement; provided, however, Contractor shall not file or otherwise commence any action
against City, in law or equity, in any court, until after an administrative hearing as set forth above
has been completed, and the above noted thirty (30) day period to accept the hearing officer's
decision has passed, or either City or Contractor has given timely written notice to the other that
it will not accept the hearing officer's decision.
19.3 Actions for Damages
As a prerequisite to the filing and maintenance of any action for damages by Contractor
against City arising out of this Agreement, Contractor shall present a claim to City, as required
by Government Code Section 910 et seq., within 30 days of the date of the occurrence giving rise
to the claim for damages.
SECTION 20.
CITY'S ADDITIONAL REMEDIES
In addition to any other remedies set forth herein, City shall be entitled to any or all of the
following rights and remedies in the event of a breach of this Agreement by Contractor:
(A) The right to use Contractor's Containers for the purpose of Collecting,
transporting, and/or disposing of Solid Waste, including Recyclable Material, for a period not to
exceed six (6) months. In the case of Containers not owned by Contractor, Contractor shall
assign to City, to the extent Contractor is permitted to do so under the instruments pursuant to
which Contractor possesses such Containers, the right to use and possess the Containers. If City
exercises its rights under this Section, City shall pay to Contractor the reasonable rental value of
the Containers for the period of City's possession thereof;
(B) The right to license others to perform the services otherwise to be performed by
Contractor hereunder, or to perform such services itself; and
(C) The right to obtain damages and/or injunctive relief. Both parties recognize and
agree that in the event of a breach of this Agreement by Contractor, City will suffer irreparable
injury and incalculable damages sufficient to support injunctive relief, to specifically enforce the
provisions of this Agreement, and to enjoin the breach hereof.
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SECTION 21.
RIGHTS OF CITY TO PERFORM DURING EMERGENCY
21.1 Provision of Service
Should Contractor, for any reason whatsoever, refuse or be unable to provide Solid Waste
Handling Services for a period of more than seventy-two (72) hours, and if as a result thereof,
Solid Waste should accumulate in City to such an extent or in such a manner that the City
Manager finds that such accumulation endangers or menaces the public health, safety, or welfare,
City shall have the right, upon twenty-four (24) hours prior written notice to Contractor, during
the period of such emergency, to temporarily take possession of any or all equipment and
facilities of Contractor previously used in providing Collection, transportation, and disposal of
Solid Waste and provide, through its own forces or otherwise, Solid Waste Handling Services
which Contractor otherwise would be obligated to provide pursuant to this Agreement.
Contractor agrees that in such event it shall fully cooperate with City to affect such a transfer of
possession for City's use.
21.2 Possession of Equipment
Contractor agrees, that in the event of circumstances described in Section 21.1 above,
City may take temporary possession of and use all of said equipment and facilities without
paying Contractor any rental or other charge. Upon Contractor giving City notice that it is able
to resume its normal responsibilities under this Agreement City shall either relinquish possession
of all of the above mentioned property to Contractor.
21.3 Exclusions from Right to Possession of Equipment without Compensation
Specifically excluded from the circumstances in which City may posses and utilize
Contractor's equipment without compensation are circumstances in which Contractor fails or
refuses to provide Solid Waste Handling Services hereunder for any reason which is not a force
majeure event as defined herein. In such circumstances City's right to utilize and possess
Contractor's equipment shall be subject to the provisions of the above Section 20.
SECTION 22.
PRIVACY
Contractor shall strictly observe and protect the privacy rights of Customers. Information
identifying individual Customers or the composition or contents of a Customer's Solid Waste
stream, or any of the billing information pertaining to any Customers, shall not be revealed to
any person, governmental unit, private agency, or company, unless upon the authority of a court
of law, by statute, ordinance, or regulation of a governmental agency having jurisdiction, or upon
valid authorization of the Customer. This provision shall not be construed to preclude
Contractor from preparing, participating in, or assisting in the preparation of waste
characterization studies or waste audits which may be required by AB 939 or this Agreement.
Contractor shall not market or distribute, outside the normal course of its business, mailing lists
with the names and addresses of Customers. The rights afforded Customers pursuant to this
Section shall be in addition to any other privacy right afforded Customers pursuant to federal or
state law.
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SECTION 23.
REPORTS AND ADVERSE INFORMATION
Records shall be maintained in forms and by methods that facilitate flexible use of data
contained in them to structure reports, as needed. Reports are intended to compile recorded data
into useful forms of information that can be used to, among other things:
a. Determine and adjust the maximum allowable rates and evaluate the financial
efficacy of operations;
b. Evaluate past and expected progress towards achieving AB 939 and SB 1383
goals and objectives;
c. Determine needs for adjustment to programs; and,
d. Evaluate Customer service and complaints.
Contractor may propose report formats that are responsive to the objectives and
audiences for each report. The format of each report shall be approved by City. In addition to
submitting all reports on paper, Contractor agrees to submit all reports in an electronic format
approved by the City, compatible with City's software/computers at no additional charge.
Monthly reports shall be submitted within twenty (20) calendar days after the end of the report
month. Quarterly reports shall be submitted within twenty (20) calendar days after the end of the
calendar quarter.
23.1 Monthly Reports
At a minimum, Contractor shall report the following to City on a monthly basis: Solid
Waste Collected by Contractor for each month, sorted by type of Solid Waste in tons broken
down at level acceptable to City (which at a minimum shall include: refuse, Organic Waste,
quarts of used oil, number of oil filters, e -waste item counts, types of recyclables including
PETE, HDPE, mixed plastics, aluminum, cardboard, mixed paper, sand, and concrete), as well as
by customer type (i.e., single family, commercial, roll -off, curbside used oil, etc.); the Facilities
where all Solid Waste Collected was processed or disposed; warning notices issued for
contaminated Recyclable Materials, and Organic Waste Containers; and a narrative summary of
problems encountered (including scavenging) and actions taken with recommendations for City,
as appropriate.
23.2 Quarterly Reports
At a minimum, Contractor shall report the following to City on a quarterly basis: the
information required in the monthly reports; the complaint summary for the quarter summarized
by nature of complaints; copies of promotional and public education materials sent during the
quarter; description of Contractor outreach activities conducted the previous quarter; and such
other information or reports that the City may reasonably request or require. Contractor shall,
upon demand by City, provide true and accurate copies of landfill tipping receipts and similar
such documents in order to enable City to verify Contractor's quarterly reports.
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23.3 Annual Reports
On or before June 30 of each year during the Term of this Agreement and within fifteen
(15) days prior to the end of the Term, Contractor shall submit a written annual report, at its sole
expense, in a form approved by City, which includes, but is not limited to, the following
information:
(A) A summary of the previous year's activities including, but not limited to, services
begun or discontinued during the reporting year, and the number of Customers broken down on a
monthly basis;
(B) Route maps for all residential routes operating in the City. A summary of the total
tons of Solid Waste Collected in City in the preceding year as well as a summary of the total
tonnage diverted from the State's landfill systems during that time frame;
(C) Information and reports required by City to meet its reporting obligations imposed
by AB 939 and the regulations implementing AB 939, in a form and content approved by the
City Manager;
(D) A revenue statement, certified by the chief financial officer of Contractor, setting
forth Franchise Fees and AB 939 Fees paid and the basis for the calculation thereof, including
specifically a breakdown of sources of revenue included in Gross Receipts and the amount of
revenue derived from each such source comprising Gross Receipts;
(E) A list of Contractor's officers and members of its Board of Directors;
(F) A list of stockholders or other equity investors holding five percent (5%) or more
of the voting interest in Contractor and any subsidiaries unless Contractor is a public corporation
whose annual reports are publicly available; and
(G) Contractor agrees to submit such reports and information on computer discs or
electronically in a standard format compatible with City's computer system as it may be
upgraded from time to time, at no additional charge, if requested by City.
23.4 SB 1383 Reports. To the extent not otherwise included in the reports specified in
Section 21.1, 21.2 and 21.3. Contractor shall provide to the City such reports, at such
frequency as may be required by SB 1383 Regulations
23.5 Financial Report
City may require that Contractor provide Contractor's financial reports/statements for the
most recently completed fiscal year in connection with an extraordinary rate adjustment request,
any audit, or any effort to verify information required under this Agreement, or make such
information available for review by its consultants. Financial statements shall include a
supplemental schedule showing Contractor's results of operations, including the specific
revenues and expenses in connection with the operations provided for in this Agreement,
separated from others included in such financial statements. The financial statements and
footnotes shall be prepared in accordance with Generally Accepted Accounting Principles
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(GAAP) and audited, in accordance with Generally Accepted Auditing Standards (GAAS) by a
certified public accountant (CPA) licensed (in good standing) to practice public accounting in the
State of California as determined by the State of California Department of Consumer Affairs
Board of Accountancy. The cost for preparation of the financial statements and audit shall be
borne by Contractor as a direct cost of service. In addition, Contractor shall provide to City the
supplemental schedule on a compiled basis. City shall to the extent legally possible keep
Contractor's Financial statements as confidential documents, not subject to the California Public
Records Act, including if Contractor avails itself of the protection afforded by Public Resources
Code Section 40062 in providing information required by this Section.
23.6 Adverse Information
(A) Contractor shall provide City two copies of all reports and other material
adversely affecting this Agreement submitted by Contractor to the United States Environmental
Protection Agency, CalRecycle, the California Regional Water Quality Control Board, and any
other federal, state, regional, or local regulatory agency. Copies shall be submitted to City
simultaneously with Contractor's filing of such matters with said agencies. Contractor's routine
correspondence to said agencies need not be automatically submitted to City, but shall be made
available to City upon written request.
(B) Contractor shall submit to City copies of all pleadings, applications, notifications,
communications, and documents of any kind submitted by Contractor to, as well as copies of all
decisions, correspondence, and actions by, any Federal, State, and local courts, regulatory
agencies, and other government bodies relating in any manner to Contractor's performance of
services pursuant to this Agreement. To the degree authorized by law, any confidential data
exempt from public disclosure shall be retained in confidence by City and its authorized agents
and shall not be made available for public inspection.
(C) Contractor shall submit to City such other information or reports in such forms
and at such times as City may reasonably request or require.
(D) All reports and records required under this or any other Section shall be furnished
at the sole expense of Contractor.
23.7 Disaster Plan
Contractor provided a disaster plan as part of the Prior Agreement. Within 90 days of the
Effective Date, Contractor shall prepare an updated draft disaster debris cleanup implementation
plan that sets forth procedures for collection of debris following a major disaster such as an
earthquake, fire or other similar event. The disaster plan shall address priorities for cleanup at
critical facilities, procedures for reimbursement for costs, describe communication plans, list key
contact persons, and provide maps showing proposed sites for stockpiling of disaster debris that
cannot be transported to the landfill. Contractor shall coordinate the plan with the Coachella
Valley Business Emergency Service Teams. The draft plan shall be presented to City for its
consideration, and the final plan shall incorporate City's comments. The final plan shall be
distributed to those employees of Contractor and City who would have a role in implementing it
in the event of a disaster.
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23.8 Failure to Report
The refusal, failure, or neglect of Contractor to file any of the reports required, or the
inclusion of any materially false or misleading statement or representation made knowingly by
Contractor in such report shall be deemed a material breach of the Agreement, and shall subject
Contractor to all remedies, legal or equitable, which are available to City under this Agreement
or otherwise.
SECTION 24.
COMPENSATION
24.1 Contractor Rates
Contractor shall provide services to Customers pursuant to this Agreement at rates it sets,
charges to, and collects from Customers, which rates shall not exceed those set forth in the
attached Exhibit A, which sets out the maximum rates that may be charged by Contractor, as
such maximum rates may be adjusted from time to time pursuant to the terms hereof. The
maximum rates set forth in Exhibit A are inclusive of all services to be provided, including
transportation, disposal, and Bin costs, and no other charges shall be imposed by Contractor for
such services.
24.2 Resolution of Disputes Regarding Rate Adjustments
Any dispute regarding an adjustment to the maximum rates Contractor may charge, or the
computation thereof, shall be decided by the City Manager. The rates in effect at the time such
dispute is submitted to the City Manager shall remain in effect pending resolution of such
dispute. The effective date of the adjusted maximum rate following the resolution of any such
dispute, whether retroactive or prospective, shall be determined by the City Manager.
24.3 Annual Consumer Price Index Adjustments to Service Component
Commencing on July 1, 2023, the service component associated with any of the
maximum rates as set forth in Exhibit A shall be adjusted, and such rates shall be adjusted
annually thereafter on each subsequent July 1st during the Term hereof (the "Adjustment
Dates"), by the following formula: The service component less applicable AB 939 Fee set forth
in Section 11.5 (if any) multiplied by a percentage equal to the change in the Consumer Price
Index ("CPI") for All Urban Consumers, CUURS49CSA0 not seasonally adjusted, all items
index (CPI -U) — Riverside-- San Bernardino -Ontario, CA average for the twelve (12) month
period commencing fifteen (15) months prior to the applicable Adjustment Date and ending three
(3) months prior to the applicable Adjustment Date. At least forty-five (45) days prior to
charging Customers any rate increased due to an increase in the CPI, Contractor shall obtain the
City Manager's approval to do so. The City Manager shall approve such a request unless he
determines, based upon substantial evidence, that the requested adjustment to the maximum rate
does not meet the requirements as set forth herein.
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24.4 Limitations to Annual CPI Adjustments to Service Component
Notwithstanding anything to the contrary in Section 24.3 above, the maximum annual
adjustment occurring pursuant to Section 24.3 shall be limited by the provisions set forth below:
24.4.1 Rate Guarantee
Contractor has made various assurances to the effect that City's rate for Solid Waste
Handling Services at Single Family Residential Dwellings will be among the lowest in the
Coachella Valley. Hence, notwithstanding any increase in the CPI no annual increase to the
maximum rates set forth on Exhibit A will exceed 103% of the lowest rate for "similar services"
provided to residents at Single Family Dwellings anywhere in the Coachella Valley. For
purposes of this Agreement, the rate for "similar services" is intended to mean the rate charged
for services that include automated curbside Collection of mixed solid waste, automated
collection of Recyclable Materials, Organic Waste materials and street sweeping services. No
consideration of manual collection, or other special services provided to gated communities shall
be considered when determining if services are similar in another community. As a further
limitation, the maximum rates on Exhibit A shall never exceed the lowest rate for similar
services in more than one City in the Coachella Valley (i.e., the maximum amount of any
increase to the maximum rate shall be limited such that City's rates shall always be either the
lowest, or second lowest rates for similar services in the Coachella Valley.)
24.4.2 Six Percent (6%) Cap
The service component of the maximum rate may not be increased in any given year by
more than six percent (6%) without regard to any higher increase which may otherwise be
justified by the formula set forth in Section 24.3.
24.5 Program Residential Rate Phase -In
In an effort to reduce the initial rate impact to ratepayers, the Contractor shall receive
the following compensation, in addition to the adjustment calculated in Section 24.3, as
described below:
• July 1, 2023, an additional two dollars and twenty-five cents ($2.25) per month added to
the Residential basic service rates calculated
• July 1, 2024, an additional eighty cents ($.80) per month added to the Residential basic
service rates calculated
• July 1, 2025, an additional eighty cents ($0.80) per month added to the Residential basic
service rates calculated
24.5.1 Compliance with Agreement
No increase to the maximum rates shall occur if the City Manager determines that
Contractor did not fully comply with all terms of this Agreement in the Rate Year preceding the
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increase, including without limitation, provisions hereof relating to reporting, diversion, and
Customer service standards.
24.6 Disposal Component and Recycling Processing Charges Adjustments
It is the intention of the parties that the disposal component and recycling processing
charges associated with any of the maximum rates as set forth in Exhibit A shall be adjusted no
more often than annually on each Adjustment Date such that they reflect each Customers pro -
rata share of any increase or decrease in the actual tipping fees charged by the location to which
Solid Waste or Organic Waste is delivered by Contractor for disposal or the recycling processing
charges as compared to sale of recyclables ("Net Recycling Costs") increase or decrease. As of
the Effective Date Contractor has indicated that the Edom Hill Transfer Station is to be the
disposal site, and the maximum rates set forth in Exhibit A reflect the costs of disposal at that
location. In the event the tipping fees charged by this disposal site increase or decrease, if a new
disposal site is proposed by Contractor and approved by City, or the Net Recycling Costs
increase or decrease, the parties shall negotiate in good faith to determine the appropriate pro -
rata change to the maximum rates charged to each Customer, taking into account all relevant
financial data including processing costs and revenues for Solid Waste not taken to the disposal
site, and the disposal component of the maximum rates set forth on Exhibit A will thereafter be
adjusted accordingly at the next Adjustment Date. The City Manager may approve changes in
the disposal component and recycling processing charges ("Net Recycling Costs") associated
with any of the maximum rates set forth on Exhibit A, or, in his discretion, may refer such
approval to the City Council.
24.7 Discretionary Adjustments
Contractor may request an adjustment to rates at reasonable times other than as set forth
in Section 24.3 for unusual changes in the cost of providing service under this Agreement. For
each request for an adjustment to the maximum rates brought pursuant to this Section Contractor
shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in
a form acceptable to City with support for assumptions made by Contractor in preparing the
estimate. City shall review the Contractor's request and, in the City Council's sole judgment and
absolute, unfettered discretion, make the final determination as to whether an adjustment to the
maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the
adjustment. City may consider increases or decreases in the Contractor's total revenues and total
cost of services when reviewing an extraordinary rate adjustment request. Contractor may not
request an extraordinary increase in the maximum rates as a result of: changes in fees or taxes
such as Social Security, disability or income tax; changes in the market value of Recyclables or
processing costs for Recyclables or Organic Waste; inaccurate estimates by the Contractor of its
cost of operations; or costs of compliance with South Coast Air Quality Management District
and Air Resource Board rules and standards for Collection Vehicles.
24.8 Grants
From time to time, Federal, State or local agencies including the City may provide to
Contractor grants to assist in financing qualified programs provided by Contractor in the City
(including, without limitation, grants for diversion programs and related equipment, alternative
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fuel vehicles and equipment, and Household Hazardous Waste Collection and Disposal.)
Contractor shall notify City upon receipt of any such grant funds that may be used to fund
services provided pursuant to the terms of this Agreement. With the exception of grants already
received by Contractor as of the Effective Date, and grants for either Household Hazardous
Waste Collection and Disposal or Collection Vehicles, any funds received through grants for
services in the City are intended to benefit City and its residents and businesses, and in essence
are held by Contractor in trust on behalf of City. Accordingly, Contractor agrees that the total
amount of compensation it receives from Customers hereunder, may be reduced by the amount
of any such grant, unless the grant is used to pay for services in City. The City Council shall
determine whether the reduction in Contractor's compensation shall be: (1) passed through to
Customers designated by City as a reduction to maximum rates; (2) as an offset to the next
increase to maximum rates requested by Contractor; (3) paid to City for use as City directs; or,
(4) applied in any combination of (1) through (3).
SECTION 25.
IDENTIFICATION OF CONTRACTOR
Contractor has agreed to use the name "Burrtec Waste and Recycling Services, LLC" to
identify itself to the public as the specific organization that shall provide all services under this
Agreement. Unless otherwise approved in writing by City, this name shall be used for all
correspondence, billing statements, directory listings, references, signs, and vehicle and Bin
identification.
SECTION 26.
CITY'S FLOW CONTROL OPTION
As of the Effective Date, and unless and until otherwise directed by City, Contractor may
deliver Solid Waste Collected hereunder to any facility it deems appropriate to meet the
requirements of this Agreement. It shall, however, notify City of all such facilities that it is
utilizing. City shall have the option to direct and/or approve which transfer station, recycling
facility, transformation facility, landfill, or other facility Contractor shall use to retain, process,
recycle and dispose of Solid Waste generated within the Franchise Area. Contractor expressly
consents to City's ability to direct the location for disposal of Solid Waste hereunder, and waives
any and all rights to challenge City's ability to do so, including without limitation any rights
under the Commerce Clause of the United States Constitution.
SECTION 27.
INDEMNIFICATION
27.1 General
(A) Contractor hereby agrees to and shall indemnify and hold harmless City, its
elected and appointed boards, commissions, officers, employees, and agents (collectively the
indemnities) from and against any and all loss, liability, penalty, forfeiture, claim, demand,
action, proceeding or suit in law or equity of any and every kind and description (including, but
not limited to, injury to and death of any Person and damage to property, or for contribution or
indemnity claimed by third parties) arising out of, resulting from, and/or in any way connected
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with this Agreement including: (1) the negligence or willful misconduct of Contractor, its
officers, employees, agents, Companies and/or subcontractors in performing services under this
Agreement; (2) the failure of Contractor, its officers, employees, agents, Companies and/or
subcontractors to comply in all respects with the provisions of this Agreement, applicable laws
(including, without limitation, the Environmental Laws), ordinances and regulations, and/or
applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents,
Companies and/or subcontractors in performing services under this Agreement for which strict
liability is imposed by law (including, without limitation, the Environmental Laws); and (4) any
challenge to the award of, or any provisions of this Agreement (including any claim that the
application of any provision hereof violates any provision of the California Constitution.) The
foregoing indemnity and hold harmless provisions 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 any of the indemnities negligence, but shall not extend to matters resulting
from the indemnities sole negligence, or willful misconduct. Contractor further agrees to and
shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys
acceptable to City) City, its elected and appointed boards and commissions, officers, employees,
and agents against any claims, actions, suits in law or equity or other proceedings, whether
judicial, quasi-judicial or administrative in nature, arising or resulting from any of the
aforementioned events, and to reimburse the City for any and all costs and expenses City incurs
in providing any such defense, either before, during or after the time Contractor elects to provide
such defense, including any and all costs incurred in overseeing any defense to be provided
herein by Contractor.
(B) Contractor, upon demand of the City, made by and through the City Attorney,
shall protect City and appear in and defend the City and its elected officials, officers, employees
and agents, in any claims or actions by third parties, whether judicial, administrative or
otherwise, including, but not limited to disputes and litigation over the definitions of "Solid
Waste" or "Recyclable Material," the scope of the rights granted herein, conflicts between the
rights granted herein and rights asserted by other Persons, or the limits of City's authority with
respect to the grant of licenses, or agreements, exclusive or otherwise, asserting rights under the
Dormant Commerce Clause or any other federal or state laws to provide Solid Waste Handling
Services in the City.
(C) The provisions of this Section shall not terminate or expire, shall be given the
broadest possible interpretation and shall survive the expiration or earlier termination of this
Agreement.
27.2 Hazardous Substances Indemnification
(A) Without regard to any insurance coverage or requirements, and without limiting
the above general indemnification obligation in any way, Contractor specifically agrees to and
shall, to the maximum extent permitted by law, defend (with counsel acceptable to City)
reimburse, indemnify, and hold City and its past and present officers, council members,
employees, consultants and agents (hereinafter "Indemnified Parties") harmless from and against
any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens,
expenses, suits, actions, attorneys' fees, consultant fees, penalties and any and all other losses,
damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to
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response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup
costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out
of or are alleged to arise out of or in any way relate to any action, inaction or omission of
Contractor that:
(1) results in any demand, claim, notice, order, or lawsuit, asserting that any
Indemnified Party is liable, responsible or in anyway obligated to investigate, assess, monitor,
study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as
defined herein); or
(2) relates to material collected, transported, recycled, processed, treated or
disposed of by Contractor.
(B) Contractor's obligations pursuant to this Section shall apply, without limitation,
to:
(1) any Claims brought pursuant to or based on the provisions of the
Environmental Laws, including without limitation the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA"), 42 U.S.C. § 9601 et seq., the Resource
Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 6901 et seq., the Carpenter -Presley -
Tanner Hazardous Substances Account Act (California Health & Safety Code Sections 25300 et
seq.), the California Hazardous Waste Control Laws (California Health and Safety Code Sections
25100 et seq.), the California Porter -Cologne Act (California Water Code Section 13000 et seq.),
and any and all amendments and regulations thereto, and any other Federal, State, regional or
local environmental statutory or regulatory provision;
(2) any Claims based on or arising out of or alleged to be arising out of the
ownership, use, lease, sale, design, construction, maintenance or operation by Contractor of any
facility;
(3) any Claims based on or arising out of or alleged to be arising out of the
marketing, sale, distribution, storage, transportation, disposal, processing or use of any materials
recovered by Contractor;
(4) any Claims based on or arising out of or alleged to be arising out of any
breach of any express or implied warranty, representation or covenant arising out of or in
connection with this Agreement.
(C) The foregoing indemnity and defense obligations shall apply irrespective of the
negligence or willful misconduct of Contractor or any Affiliate of Contractor.
(D) For purposes of this Agreement, the term "Hazardous Contaminant" shall mean
any "hazardous material," as that term is defined under California Health & Safety Code Section
25501(o); any "hazardous substance," as that term is defined herein or under California Health &
Safety Code Sections 25281(h), 25501(p), 25501.1 and under Title 42, Section 9601(14) of the
United States Code; any "hazardous waste," as that term is defined herein and under Title 42,
Section 6903(5) of the United States Code and under California Health & Safety Code Section
25501(q); any chemical which the Governor has identified as a chemical known to the State to
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cause cancer or reproductive toxicity pursuant to California Health & Safety Code Section
25249.8; any crude oil or refined or unrefined petroleum product or any fraction or derivative
thereof; and any asbestos or asbestos -containing material. The term "Hazardous Contaminant"
shall also include any and all amendments to the above -referenced statutory and regulatory
provisions made before or after the date of execution of this Agreement.
(E) The provisions of this Section shall not terminate or expire, shall be given the
broadest possible interpretation and shall survive the expiration or earlier termination of this
Agreement.
SECTION 28.
CONTRACTOR'S BOOKS AND RECORDS; AUDITS
28.1 Maintenance and Inspection of Records
Contractor shall maintain all records relating to the services provided hereunder,
including but not limited to Customer lists, billing records, accounts payable records, maps, AB
939 and SB 1383 compliance records, records reflecting the number of refuse, recycling and
Organic Waste routes and rout hours by service category (residential, commercial, roll -off, and
special services), records demonstrating facilities, equipment and personnel used to perform
services, records reflecting the number of refuse, recycling and Organic Waste containers in
service by frequency of collection for each customer group (residential, commercial, roll -off);
records reflecting the number of roll -off box pulls, and such other documents and materials
which reasonably relate to Contractor's compliance with the provisions of this Agreement (the
"Records"), for the full Term of this Agreement, and an additional period thereafter of not less
than three (3) years, or any longer period required by law. City shall have the right, upon five (5)
business days advance notice, to inspect the Records. Such Records shall be made available to
City at Contractor's regular place of business, but in no event outside the County of Riverside.
28.2 CERCLA Defense Records
City views the ability to defend against the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and related litigation as a matter of great
importance. For this reason, the City regards the ability to prove where Solid Waste Collected in
the City was taken for Disposal, as well as where it was not taken, to be matters of concern.
Contractor shall maintain data retention and preservation systems which can establish where
Solid Waste Collected in the City was landfilled (and therefore establish where it was not
landfilled) for not less than five (5) years following the termination of this Agreement, and
agrees to notify City's Risk Manager and City Attorney before destroying such records
thereafter. At any time, including after the expiration of the Term hereof, Contractor shall
provide copies of such records to City. The requirements of this Section shall survive the
expiration of the Term of this Agreement.
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28.3 Audits
28.3.1 Annual Examination of Services
Every year Contractor shall fund the cost of an independent audit by a Certified
Public Accounting firm of all accounts in City for each category of Customers serviced By
Contractor. The annual audit shall be completed and provided to City within ninety (90) days
following June 30th each year during the Term commencing in 2022. The audit shall at a
minimum include, but not be limited to, an examination of all Gross Receipts and Franchise Fees
paid thereon.
28.3.2 Discretionary Audits
In addition to the annual audits to be performed by Contractor, City may request
Contractor to make any or all Records available to an independent auditor or examiner, to be
selected by the City, at any time for auditing and examination purposes (a "Discretionary
Audit"). City shall bear the cost of any Discretionary Audit except as otherwise provided herein.
Should any Discretionary Audit reveal an underpayment of any Franchise Fee required pursuant
to this Agreement, the amount of such underpayment shall become due and payable to City not
later than fifteen (15) days after written notice of such underpayment is sent to Contractor by
City, complete with any additional late charges as set forth herein. If a Discretionary Audit
reveals inaccuracies or inconsistencies in more than five percent (5%) of all Customer accounts,
either with the Contractor's operations or billing systems, or an underpayment of Franchise Fees
of more than three percent (3%), Contractor shall bear the entire cost of such Discretionary
Audit.
28.3.3 Route Audit
Contractor shall complete an audit at its expense of its Collection routes for all
Customers at such times as may be requested by City. The timing of such audits is at the City's
discretion and may be required to be timed with the issuance of a request for proposals for a new
agreement. The route audit, at minimum, shall consist of an independent physical observation by
Person(s) other than the route driver or route supervisor of each Customer in the City. The route
audit shall include, as a minimum, the following information for each account:
• Route Number;
• Truck Number;
• Account Name;
• Account Number;
• Account Service Address;
• Service Level per Billing System (quantity, size, frequency);
• Service Level per Routing System;
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• Observed Containers (quantity, type and size);
• Bin condition;
• Proper signage; and,
• Graffiti.
Within thirty (30) days after the completion of the route audit, Contractor shall submit to City a
report summarizing the results thereof which shall include:
• Identification of the routes;
• Truck numbers;
• Number of accounts, by route and in total;
• Types of exceptions observed;
• Number of exceptions by type;
• Total monthly Billing, pre -audit;
• Total monthly Billing, post -audit (subsequent to
exceptions);
corrections of
• Percentage of the number of accounts with errors to the
served;
• Percentage of the "net" change in monthly Billing as a
total pre -audit monthly Billing; and,
identified
total number of accounts
result of the audit to the
The report shall include a description of the procedures followed to complete the audit, and shall
include the names and titles of those supervising the route audits and the name and titles of those
performing the observations. Additionally, the report shall include a description of the pre -audit
training of the route auditors, particularly if temporary personnel are used. The report shall also
include a description of the changes and Contractor's plans to resolve any exceptions. The
results of the audit shall be available for review by the City or its representative.
SECTION 29.
TRANSITION OBLIGATIONS
At the end of the Term, or in the event this Agreement is terminated for cause
prior to the end of the Term, Contractor shall cooperate fully with City and any subsequent solid
waste enterprise it designates to assure a smooth transition of services. Contractor's cooperation
shall include, but not be limited to, providing route lists, billing information and other operating
records needed to service all premises covered by this Agreement. The failure to cooperate with
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City following termination shall be conclusively presumed to be grounds for specific
performance of this covenant and/or other equitable relief necessary to enforce this covenant.
Contractor shall provide any new solid waste enterprise with all keys, security
codes and remote controls used to access garages, gates and bin enclosures. Contractor shall be
responsible for coordinating transfer immediately after its final collection activities, so as to not
disrupt services. Contractor shall provide City with detailed rout sheets containing service
names and addresses, billing names and addresses, monthly rate and service levels (number and
size of containers and pickup days) at least 90 days prior to the transition date, provide an
updated list two weeks before the transition, and a final updated list with any changes the day
before the transition. Contractor shall provide means of access to the new solid waste enterprise
at least one full business day prior to its first day of collection, and within sufficient time so as to
not impede in any way the new solid waste enterprise from easily servicing all containers.
SECTION 30.
GENERAL PROVISIONS
30.1 Force Majeure
Contractor shall not be in default under this Agreement in the event that its ability to
provide Solid Waste Handling Services or Temporary Services, in compliance with its obligation
to do so hereunder, is temporarily interrupted or discontinued for any of the following reasons:
riots, wars, sabotage, civil disturbances, insurrections, explosion, natural disasters such as floods,
earthquakes, landslides, and fires, or "other catastrophic events" which are beyond the
reasonable control of Contractor. The term "other catastrophic events" does not include: (i) the
financial inability of Contractor to perform; (ii) failure of Contractor to obtain any necessary
permits or licenses from other governmental agencies; (iii) the failure to obtain the right, or the
loss of the right, to use the facilities of any public utility where such failure is due in substantial
part to the acts or omissions of Contractor; or (iv) strikes, lockouts, and other labor disturbances.
30.2 Independent Contractor
Contractor is an independent contractor and not an officer, agent, servant, or employee of
City. Contractor is solely responsible for the acts and omissions of its officers, agents,
employees, and subcontractors, if any. Nothing in this Agreement shall be construed as creating
a partnership or joint venture between City and Contractor. Neither Contractor nor its officers,
employees, agents, or subcontractors shall obtain any rights to retirement or other benefits which
accrue to City employees.
30.3 Pavement Damage
Contractor shall be responsible for the cost of repair of any extraordinary damage to the
public streets located within the City resulting from providing the services required hereunder.
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30.4 Property Damage
Any physical damage caused by the negligent or willful acts or omissions of employees,
agents, or subcontractors of Contractor to private or public property shall be promptly repaired or
replaced at Contractor's expense.
30.5 Right of Entry
Contractor shall not have the right, until Contractor receives permission from the
property owner, to enter or drive on any private street, court, place, easement, or other private
property for the purpose of providing Temporary Services and/or Solid Waste Handling Services
pursuant to this Agreement.
30.6 Law to Govern; Venue
The laws of the State of California shall govern this Agreement. In the event of litigation
between the parties, venue in state trial courts shall lie exclusively in the County of Riverside. In
the event of litigation in a United States District Court, exclusive venue shall lie in the Central
District of California.
30.7 Amendment
This Agreement is intended to carry out City's obligations to comply with the provisions
of AB 939, as implemented by regulations of CalRecycle ("Regulations"), as they from time to
time may be amended. In the event that AB 939 or other state or federal laws or regulations
enacted after this Agreement has been enacted, prevent or preclude compliance with one or more
provisions of this Agreement, such provisions of the Agreement shall be modified or suspended
as may be necessary to comply with such state or federal laws or regulations. Except as
otherwise expressly stated herein, no other amendment of this Agreement shall be valid unless in
writing duly executed by the parties.
30.8 Notices
All notices required or permitted to be given under this franchise shall be in writing and
shall be personally delivered or sent by telecopier (fax), or United States certified mail, postage
prepaid, return receipt requested, and addressed as follows:
To City:
To Contractor:
698/015610-0089
17695555.2 a04121122
City of La Quinta
Attn: City Manager
78-495 Calle Tampico
La Quinta, CA 92253
Fax: (760) 777-7101
Burrtec Waste and Recycling Services, LLC.
Attn: Chief Executive Officer
9890 Cherry Ave
Fontana, California 92335
Phone: (909) 822-2397; Fax: (909) 355-7158
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or to such other address or telecopier number as either party may from time to time designate by
notice to the other given in accordance with this Section. Notice shall be deemed given on the
date served if served personally or by Fax between the hours of 8:00 a.m. to 5:00 p.m. on any
regular business day for City's business offices. If served during other times, Faxed notice shall
be deemed given the first business day following the day upon which it is so faxed. If mailed,
notice shall be deemed given three (3) business days from the date such notice is deposited in the
United States mail.
30.9 Guarantee of Contractor's Performance
Pursuant to a guarantee in substantially the form attached as Exhibit E, Burrtec Waste
Group, Inc. ("Guarantor") has agreed to guarantee Contractor's performance of its obligations
pursuant to this Agreement, and Guarantor shall provide a fully executed copy of the Guarantee
required by this provision concurrently with Contractor's delivery of this Agreement to City.
30.10 Savings Clause
If any non -material provision of this Agreement is for any reason held to be invalid or
unenforceable, the invalidity or unenforceability of such provision shall not affect the validity
and enforceability of any of the remaining provisions of this Agreement.
30.11 Exhibits Incorporated
Exhibits A through E are attached to and incorporated in this Agreement by reference.
30.12 Joint Drafting
This Agreement shall be interpreted as if it were drafted jointly by the parties to the
Agreement.
30.13 Attorneys' Fees and Litigation Costs
In the event either party brings any action or proceeding to enforce or interpret the terms
or provisions of this Agreement, the prevailing party in any such action or proceeding shall be
entitled to recover its reasonable attorneys' fees and other litigation costs and expenses,
including without limitation expert witness fees, consultant fees and costs. Without limiting its
scope in any way, this provision is expressly intended to, and shall, apply to fees and costs
incurred in any appeal.
30.14 City's Authorized Agent
Notwithstanding anything contained herein to the contrary, and excepting amendments
hereto and such actions set forth herein specifically calling for City Council action or approval,
the City Manager is designated as the City's authorized agent to take any action with regard to
any matter, or enforce any right, set forth herein requiring action by the City.
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30.15 Integrated Agreement
This Agreement contains the entire integrated agreement and understanding concerning
the subject matter herein and supersedes and replaces any prior negotiations, promises,
proposals, and agreements between the Parties, whether written or oral. The Parties
acknowledges this document has been executed with the consent and upon the advice of counsel.
Each of the Parties acknowledges that no party or agent or attorney of any other party has made
any promise, representation, or warranty, express or implied, not contained in this Agreement, to
induce the other party to execute this instrument.
30.16 Section Headings
The section headings in this Agreement are for convenience of reference only and are not
intended to be used in the construction of this Agreement nor to alter or affect any of its
provisions.
30.17 Compliance with Law
In providing the services required under this Agreement, Contractor shall at all times, at
its sole cost, comply with all applicable laws and regulations of the United States, the State of
California, the provisions of the Municipal Code, and any federal, state, regional or local
administrative and regulatory agencies, now in force and as they may be enacted, issued or
amended.
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"Signature page to follow"
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ATTEST:
By:
"City"
Monika Radeva, City Cl
APPROVED AS
TO FORM.
By:
William H. Ihrke, Special Council
6981015610-0089
17695555.2 a04121/22
"C.ontracto
BURR
SER
Bv:
Its:
-94-
en, City Manager
EXHIBIT A
MAXIMUM RATE SCHEDULE FOR SOLID WASTE HANDLING SERVICES:
ATTACHED
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EXHIBIT A
-1-
City of La Quinta
Maximum Rates For Single Family Dwellings - Monthly*
Effective July 1, 2022
Single Family Dwellings
Service
Component
Disposal
Component
AB 939
Fees
Total Monthly
Rate*
Total Yearly
Rate
Tax Roll Billing
$ 12.35
$ 6.40
$ 0.10
$ 18.85
$ 226.20
Direct Billing
$ 14.04
$ 6.40
$ 0.10
$ 20.54
$ 246.48
Additional Refuse Cart
$ 8.41
$ 8.41
$ 100.92
Cart Replacement - ( Per Section 8.1.8 F) one-time fee
$ 70.50
$ 70.50
n/a
Bulky Item: in excess of 4 items or non -regular collection day**
$ 21.15
$ 21.15
n/a
Backyard Service
Basic Additional Charge for Backyard Service
$ 14.96
$ 14.96
$ 179.52
Charge for additional Recycling or Organics Cart
$ 2.95
$ 2.95
$ 34.40
PGA — 2nd Pick -Up Day
$ 9.99
$ 4.93
$ 14.92
$ 179.04
Surcharge for HOA's Desiring Monday Service
10% of Service Component
10% of Service Component
*The maximum rates on this sheet shall apply to all customers receiving automated or manual service utilizing carts or cans,
including specifically such customers (if any) at commercial premises.
**Charged for pickups in excess of four items, or pickup on a non -collection day. Pickup otherwise at no additional charge.
City of La Quinta
Maximum Rates for Customers Receiving Service in Bins - Commercial or Residential
Effective 7.1.2022
2 yd Bin Service
Pickups Per Week
Service Component
Disposal Component
Monthly Customer Rate
1 x per week
$
87.96
$
31.51
$
119.47
2 x per week
$
151.99
$
63.02
$
215.01
3 x per week
$
213.23
$
94.53
$
307.76
4 x per week
$
273.91
$
126.04
$
399.95
5 x per week
$
328.55
$
157.55
$
486.10
6 x per week
$
395.85
$
189.06
$
584.91
Extra Empty*
$
44.61
$
8.84
$
53.45
3 yd Bin Service
Pickups Per Week
Service Component
Disposal Component
Monthly Customer Rate
1 x per week
$
109.94
$
47.27
$
157.21
2 x per week
$
188.32
$
94.53
$
282.85
3 x per week
$
263.84
$
141.80
$
405.64
4 x per week
$
333.99
$
189.06
$
523.05
5 x per week
$
409.33
$
236.33
$
645.66
6 x per week
$
480.99
$
283.59
$
764.58
Extra Empty*
$
60.78
$
12.62
$
73.40
4 yd Bin Service
Pickups Per Week
Service Component
Disposal Component
Monthly Customer Rate
1 x per week
$
150.67
$
63.02
$
213.69
2 x per week
$
233.40
$
126.04
$
359.44
3 x per week
$
318.84
$
189.06
$
507.90
4 x per week
$
405.22
$
252.09
$
657.31
5 x per week
$
486.40
$
315.11
$
801.51
6 x per week
$
565.56
$
378.12
$
943.68
Extra Empty*
$
82.28
$
17.02
$
99.30
6 yd Bin Service
Pickups Per Week
Service Component
Disposal Component
Monthly Customer Rate
1 x per week
$
225.23
$
94.53
$
319.76
2 x per week
$
352.29
$
189.06
$
541.35
3 x per week
$
481.52
$
283.59
$
765.11
4 x per week
$
611.79
$
378.12
$
989.91
5 x per week
$
736.16
$
472.65
$
1,208.81
6 x per week
$
855.86
$
567.18
$
1,423.04
Extra Empty*
$
122.87
$
25.32
$
148.19
* Meaning occasional calls for extra service, or "emptying" of Bin.
Customers desiring a locking Bin may be charged a one-time charge of up to $87.08 to add a locking bar to their
Bin, and are subject to a charge not to exceed $33.50 each time the locking bar needs replacement.
The Service Component for Customers receiving services less than 6 times per week and who desire service on
Saturday may be increased by an amount to not to exceed $36.22
The monthly Service Component for Customers who keep Bins in locked enclosures may be increased by an
amount not to exceed $25.21.
The monthly Service Component for Customers who keep Bins in a location requiring Contractor to move them
more than 20 feet for collection purposes may be increased by an amount not to exceed $44.68.
CITY OF LA QUINTA
Commercial Bin Recycling Rates
Effective July 1, 2022
2 yd Bin Service
Processing
Monthly Rate
Pickups Per Week
1 x Per Week
$ 1.64
$ 64.67
2 x Per Week
$ 3.29
$ 118.07
3 x Per Week
$ 4.93
$ 170.19
4 x Per Week
$ 6.59
$ 222.02
5 x Per Week
$ 8.22
$ 270.95
6 x Per Week
$ 9.88
$ 325.99
Extra Empty*
$ .38
$ 32.88
3 yd Bin Service
Processing
Monthly Rate
Pickups Per Week
1 x Per Week
$ 2.46
$ 86.65
2 x Per Week
$ 4.93
$ 158.46
3 x Per Week
$ 7.40
$ 228.96
4 x Per Week
$ 9.88
$ 296.91
5 x Per Week
$ 12.34
$ 367.26
6 x Per Week
$ 14.81
$ 435.94
Extra Empty*
$ .57
$ 43.67
4 yd Bin Service
Processing
Monthly Rate
Pickups Per Week
1 x Per Week
$ 3.29
$ 117.45
2 x Per Week
$ 6.59
$ 202.99
3 x Per Week
$ 9.88
$ 289.79
4 x Per Week
$ 13.16
$ 377.03
5 x Per Week
$ 16.46
$ 461.83
6 x Per Week
$ 19.75
$ 545.67
Extra Empty*
$ .76
$ 59.29
6 yd Bin Service
Processing
Monthly Rate
Pickups Per Week
1 x Per Week
$ 3.29
$ 167.47
2 x Per Week
$ 6.59
$ 288.83
3 x Per Week
$ 9.88
$ 411.18
4 x Per Week
$ 13.16
$ 534.02
5 x Per Week
$ 16.46
$ 654.11
6 x Per Week
$ 19.75
$ 771.98
Extra Empty*
$ 1.14
$ 88.71
* Meaning occasional calls for extra service, or "emptying" of Bin.
Customers desiring a locking Bin may be charged a one-time charge of up to $85.22 to add a locking bar to
their Bin, and are subject to a charge not to exceed $32.79 each time the locking bar needs replacement.
The rates for Customers receiving services less than 6 times per week and who desire service on Saturday
may be increased by an amount to not to exceed $35.44.
The monthly rate for Customers who keep Bins in locked enclosures may be increased by an amount not
to exceed $24.67.
The monthly rate for Customers who keep Bins in a location requiring Contractor to move them more than 20
feet for collection purposes may be increased by an amount not to exceed $43.73.
96 -gal recycling cart will be charged at $33.86 per pick up.
CITY OF LA QUINTA
Maximum Rates for Service in Rolloff Boxes and Temporary Service
Effective July 1, 2022
Maximum Rolloff Box Rate is the Total of the Service Component and Disposal Component
Service Component:
Rolloff Box Size
Standard 20 yard box $180.54 per pull plus $1.00/ton of Solid Waste Collected
Standard 30 yard box $231.30 per pull plus $1.00/ton of Solid Waste Collected
Standard 40 yard box $267.86 per pull plus $1.00/ton of Solid Waste Collected
The Service Component for Rolloff Compactors is three times the per pull rate for the same size Rolloff
Box, plus $1.00 per ton of Solid Waste Collected
(Le., the Service Component for a 40yd. Compactor Is 3 x $267.86 = $803.58 + $1.00/ton)
Disposal Component:
Actual Amount Charged to Contractor for Disposal, plus franchise fee
Temporary Service Using Bins
Temporary Service utilizing a 3yd Bin is subject to a maximum rate, comprised only of a Service
Component, of $160.39 per servicing by Contractor
Temporary Service utilizing a 4yd Bin is subject to a maximum rate, comprised only of a Service
Component, of $175.80 per servicing by Contractor
Temporary Service Delivery Charge
Bins and Rolloff Boxes used for Temporary Services are subject to a delivery charge of $27.41
City of La Quinta
Maximum Service Component/Rate For Miscellaneous Charges
Effective July 1, 2022
New Start Fee
$
9.69
Re -Start Fee
$
25.48
Extra Trip - Rolloff Boxes Only
$
77.35
Returned Check
$
28.79
Bulky Item Service
Residential in excess of 4 items
or non -regular collection day
$21.15/Item
Commercial
$75.83!Item
CITY OF LA QUINTA
Commercial Organic Rates
Effective July 1, 2022
1-65 Gallon Cart 3-65 Gallon Cart
Recycling Total Recycling Total
# Pick -Ups Collection Material Franchise AB -939 Monthly # Pick -Ups Collection Material Franchise AB -939 Monthly
Per week Component Processing Fee Fee Rate Per week Component Processing Fee Fee Rate
1 536.04 $32.50 $7.62 $0.48 $76.64 1 $75.66 $97.45 $19.23 $1.19 $193.53
2 $72.06 $64.95 $15.22 $0.97 $153.20 2 $162.13 $194.85 $39.66 $2.47 $399.11
3 $108.10 $97.45 522.84 $1.45 $229.84 3 $227.00 $292.30 $57.70 $3.58 $580.58
4 $144.13 $129.90 $30.45 $1.94 $306.42 4 $302.67 $389.70 $76.93 $4.78 $774.08
5 $180.17 $162.40 538.06 $2.42 $383.05 5 $378.35 $487.15 $96.17 $5.97 $967.64
2-65 Gallon Cart 4-65 Gallon Cart
Recycling Total Recycling Total
# Pick -Ups Collection Material Franchise AB -939 Monthly # Pick -Ups Collection Material Franchise AB -939 Monthly
Per week Component Processing Fee Fee Rate Per week Component Processing Fee Fee Rate
1 $57.65 $64.95 $13.62 $0.85 $137.07 1 586.48 $129.90 $24.04 $1.48 $241.90
2 $115.30 $129.90 $27.24 $1.71 $274.15 2 5172.94 $259.80 $48.08 $2.95 $483.77
3 $172.95 5194.85 $40.87 $2.56 $411.23 3 $259.44 $389.70 $72.13 $4.43 $725.70
4 $230.62 5259.80 554.49 $3.42 $548.33 4 $345.91 $519.60 $96.17 55.90 $967.58
5 $288.27 $324.75 $68.11 54.27 $685.40 5 5432.40 5649.50 $120.21 $7.38 $1,209.49
1-35 Gallon Cart 536.04 $13.80 $5.54 50.35 $55.73
Extra Pickup Additional Cart after 4 Carts Per Week
# of Carts rate # of Carts
Per Pick up Per Pick up Per Pick -Up
1 $22.78 1 $55.87
2 $42.40 2 $111.59
3 $56.51 3 $167.56
4 $75.33 4 $241.59
5 $94.18 5 $302.00
2yd Bin
Recycling Total
# Pick -Ups Collection Material Franchise AB -939 Monthly
Per week Component Processing Fee Fee Rate
1 $118.91 573.61 $21.39 $0.90 $214.81
2 $234.52 $147.22 $42.42 51.62 $425.78
3 $351.78 $229.83 $64.62 $2.32 5648.55
4 $469.04 $294.44 $84.83 $3.01 $851.32
5 $586.30 $368.05 5106.04 $3.66 $1,064.05
6 $703.57 $441.66 $127.25 $4.41 $1,276.89
EXHIBIT B
CONTAINER/BIN SPECIFICATIONS
• Contractor shall provide Container Specifications to City for approval. All Containers
utilized by Contractor shall perform to the reasonable satisfaction of the City Manager in
order to be utilized in City.
• Each Refuse, Organic Waste and Recycling Cart utilized by Contractor shall be labeled on
the inside, or hot -stamped, in English and Spanish and with graphics so as to: (1)
explain/depict the items for which it is designated to Collect, and (2) identify the name and
phone number of Contractor.
• The body of Refuse Carts shall be a uniform Gray color, Recycling Carts shall be a uniform
Blue color and Organic Waste Carts shall be a uniform green color.
• While Contractor may continue to utilize Carts which were distributed to Customers under
the Prior Agreement, all labels on Cart's distributed pursuant to the Prior Agreement and
bearing the name of any solid waste enterprise other than Contractor shall be replaced as of
the Effective Date so as to identify Contractor as required herein.
• Any Cart distributed by Contractor in City after the Effective Date shall be newly
manufactured and have never previously been used for the Collection of Solid Waste;
excepting that Carts which have been refurbished such that they are "like new" may be used
so long as their condition is satisfactory as determined by the City Manager.
• Bins shall have lids that close securely and which are capable of being locked. Locks shall
be provided by Contractor upon request at rates that do not exceed those set forth in Exhibit
A.
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EXHIBIT B
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EXHIBIT C
SAMPLE LISTING OF CITY SPONSORED EVENTS
(This list is intended only as a sample of City sponsored events, and is not intended to be
all inclusive or to limit Contractor's obligations in any way.)
February "Concert in the Park" Civic Center Campus
March "La Quinta Arts Festival" Civic Center Campus
April "Community Picnic and Birthday Bash" Fritz Burns Park
April "Easter Egg Hunt" La Quinta Park
October "Halloween Carnival" Boys and Girls Club
December "Breakfast With Santa" Senior Center
December "Christmas Tree Lighting" Civic Center Campus
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EXHIBIT C
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EXHIBIT D
CITY FACILITIES AND PARKS LIST
(This list is intended only as a sample of existing City facilities, it is not intended to be all
inclusive or to limit Contractor's obligations in any way.)
City Hall
City Library
City Senior Center
Fire Stations (3 currently)
Police Sub -Station in Village
City Museum
City Corporate Yard
SilverRock Golf Course (including without limitation Organic Waste and refuse removal at: the
temporary clubhouse and maintenance building and the eventual permanent clubhouse, the pro
shop, such Organic Waste collection areas as may be established on site, and annual Organic
Waste removal related to over seeding and "scalping")
Fritz Burns Pool Building
La Quinta Sports Complex
Fritz Burns Park
Adams Park
La Quinta Park (Westward Ho/Adams Street)
Bear Creek Trail
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EXHIBIT D
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EXHIBIT E
CORPORATE GUARANTY
THIS GUARANTY (the "Guaranty) is given as of the 1St day of July, 2022, and is made
with reference to the following facts and circumstances:
A. Burrtec Waste and Recycling Services, Inc., hereinafter ("Contractor") is an
affiliate of Burrtec Waste Group, Inc. (Guarantor).
B. Contactor has entered an Amended and Restated Agreement Between The City of
La Quinta and Burrtec Waste and Recycling Services, LLC, for Solid Waste Handling Services
(the "Burrtec Franchise").
C It was a requirement of the Burrtec Franchise, that Guarantor guaranty
Contractor's performance of the Burrtec Franchise.
D. Guarantor is providing this Guaranty to induce the City to approve the Burrtec
Franchise.
NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows:
1. Guaranty of theBurrtec Franchise. 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 the Burrtec Franchise which
Contractor is required to perform, satisfy or observe. In the event that Contractor fails to
perform, satisfy or observe any of the terms and conditions of the Burrtec Franchise Guarantor
will promptly and fully perform, satisfy or observe them in the place of the Contractor (including
by causing the services required of Contractor to be performed by a Solid Waste Enterprise
acceptable to City). Guarantor hereby guarantees payment to the City of any damages, costs or
expenses which might become recoverable by the City from Contractor due to its breach of the
Burrtec Franchise. Included in the forgoing Guarantee, is a guarantee by Guarantor of any
continuing obligations assumed by Contractor as part of the Waste Management Franchise, and
any ongoing obligations of Contractor under the 2006 Burrtec Franchise.
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 Burrtec Franchise, shall constitute a
guarantee of payment and not of collection, and are not conditional upon the genuineness,
validity, regularity or enforceability of the Burrtec Franchise. In any action brought against the
Guarantor to enforce, or for damages for breach of, its obligations hereunder, the Guarantor shall
be entitled to all defenses, if any, that would be available to the Contractor in an action to
enforce, or for damages for breach of the Burrtec Franchise (other than discharge of, or stay of
proceedings to enforce, obligations under the Burrtec Franchise under bankruptcy law).
3. Waivers. Except as provided herein the Guarantor shall have no right to
terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations
EXHIBIT E
698/015610-0089
17695555.2 a04/21/22 - 1 -
under it for any reason whatsoever, including, without limitation: (1) the insolvency,
bankruptcy, reorganization or cessation of existence of the Contractor; (2) the actual or purported
rejection by a trustee in bankruptcy of the Burrtec Franchise, or any limitation on any claim in
bankruptcy resulting from the actual or purported termination of the Burrtec Franchise; (3) any
waiver with respect to any of the obligations of the Burrtec Franchise guaranteed hereunder or
the impairment or suspension of any of the City's rights or remedies against the Contractor; or
(4) 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 Section 2846, 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. City may unqualifiedly exercise in it 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.
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 the Burrtec Franchise have been fully
performed or otherwise discharged 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 Burrtec Franchise.
Guarantor shall not be released of its obligations hereunder as long as there is any claim by the
City against Contractor arising out of the Buntec Franchise based on Contractor's failure to
perform which has not been settled or discharged.
698/015610-0089
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EXHIBIT E
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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 of 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 in the event of Guaranty's breach of its obligations including to pay reasonable
attorney's fees and all other reasonable 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, with venue resting in Riverside County, California.
8. Severability. If any portion of this Guaranty is held to be invalid or
unenforceable, such invalidity will 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. Authority. Guarantor represents and warrants that it has the corporate power and
authority to give this Guaranty, that its execution of this Guaranty has been authorized by all
necessary action under its Article of Incorporation and By -Laws, and that the person signing this
Guaranty on its behalf has the authority to do so.
11. 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:
698/015610-0089
17695555.2 a04/21/22
City Manager
City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Fax: (760) 777-7101
EXHIBIT E
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with a copy to the City's Legal Counsel at the same address.
To the Guarantor:
Guarantor:
Burrtec Waste Gr
By:
698/015610-0089
17695555.2 a04/21/22
Burrtec Waste Group, Inc
9890 Cherry Ave.
Fontana, California 92335
Attn: Chief Executive Officer
Fax: (909) 355-7158
(nth: }
EXHIBIT E
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BUSINESS SESSION ITEM NO. 3
City of La Quinta
CITY COUNCIL MEETING May 17, 2022
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION TO APPROVE AMENDED FRANCHISE
AGREEMENT WITH BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR
SOLID WASTE HANDLING SERVICES AND ADJUSTED MAXIMUM SERVICE
RATES
RECOMMENDATION
Adopt a Resolution to approve an Amended Franchise Agreement with Burrtec
Waste and Recycling Services, LLC for Solid Waste Handling Services and
adjusted maximum service rates; and authorize the City Manager to execute
the amended agreement.
EXECUTIVE SUMMARY
• The City of La Quinta (City) has had a Franchise Agreement (Agreement)
with Burrtec Waste and Recycling Services, LLC (Burrtec) since 2007.
The current 10 -year Agreement was approved in 2016.
• SB 1383 legislation launched in January 2022, requiring the City to
provide Organics Recycling programs and services to all residents and
businesses. These programs and services are not included in the current
Agreement with Burrtec.
• The term of the amended Agreement (Attachment 1) is 15 years,
effective July 2022 through June 2037. This length enables Burrtec to
maintain lower rates throughout the Agreement term and reduce the
initial impact of added costs for implementing SB 1383 Organics
Recycling programs and services.
FISCAL IMPACT
There is no change to the current 10% Franchise Fee on Burrtec's gross
receipts or AB 939 fee schedule for residential and commercial. The
Agreement will annually generate approximately $850,000 in Franchise Fees
to the General Fund; $60,000 in AB 939 funding for the City's recycling
program efforts; and $108,000 in reimbursable administration fees over the
term of the agreement.
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BACKGROUND/ANALYSIS
In July 2007, the City entered into a 9 -year Agreement with Burrtec for solid
waste handling services. The initial term was amended in 2016 due to
significant recycling legislation. Assembly Bill 341 required mandatory
recycling for businesses and multi -family dwellings. Assembly Bill 1826
required mandatory commercial organics recycling for businesses. These
mandates increased Burrtec's service costs. The amended 10 -year Agreement
that covers these services expires in June 2026.
With the implementation of Senate Bill 1383 (SB 1383) in 2022, the City is
required to provide Organics Recycling to all residents and businesses to
support State-wide organic waste disposal reduction targets. These programs
and services are not included in the current Agreement with Burrtec. This
amended Agreement incorporates changes to successfully implement SB 1383
requirements.
SB 1383 Required Programs and Services
• Residential food waste collection
• Contamination monitoring and inspection
• Edible food recovery for businesses
• Education and outreach
• City procurement of recycled organic waste products
• Compliance reporting and State inquiries
• Container labels indicating accepted materials
• Standardized container colors
The City and Burrtec will conduct inspections, remote monitoring, and
compliance reviews from January 2022 through December 2023. Those found
not in compliance with SB 1383 regulations will be provided educational
materials to assist with compliance. Beginning January 2024, the City may
issue violations with monetary penalties for those found not in compliance.
Rate Adjustments
The total monthly cost adjustment for new SB 1383 residential services will
be spread out over the first four years of the Agreement. The annual increase
of rates will not be higher than the local region Consumer Price Index (CPI)
average annual increase and must be negotiated by the City Manager.
Residential service rates in La Quinta are and will continue to be among the
lowest in the Coachella Valley.
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Residential Services - The proposed 2022 Maximum Rate Schedule
(Attachment 2):
Single -Family Dwelling
2021 Rate
(existing)
2022 Rate
(proposed)
Service Component
$11.26/month
$12.35/month
Disposal Component
$6.40/month
$6.40/month
AB 939 Fee
$0.10/month
$0.10/month
Total Rate
$17.76/month
$213.12/year
$18.85/month
$226.20/year
Additional Residential Services
2021 Rate
(existing)
2022 Rate
(proposed)
Additional Refuse Cart
$7.93/month
$95.16/year
$8.41/month
$100.92/year
Backyard Service for 3 containers
$7.48/month
$89.76/year
$14.96/month
$179.52/year
Backyard Service additional container
$7.48/month
$89.76/year
$2.95/month
$34.40/year
PGA 2nd Pick-up Day
$14.14/month
$169.68/year
$14.92/month
$179.04/year
Surcharge for Homeowners
Association desiring Monday service
10% of Service
Component
10% of Service
Component
Commercial Services - Burrtec will continue to educate businesses and
multi -family dwellings about decreasing their overall waste handling costs.
Recycling rates are about half the cost of landfill waste rates. Additionally, the
proposed landfill rate increase is approximately 13.5%, while the recycling
rate increase is 8% and food waste rate increase is just 3.5%.
ALTERNATIVE;
Council may direct staff to publish a Request for Proposal and competitively
bid these services. Staff does not recommend this alternative because of
Burrtec's past performance and overall community satisfaction with services
provided.
Prepared by:
Approved by:
Jeremy Griffin, Management Specialist
Gilbert Villalpando, Director
Attachments: 1. Amended Franchise Agreement with Burrtec
2. 2022 Maximum Rate Schedule
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