Loading...
CC SR 20230516 03 - EDCO Annual CPI Rate Increase 2023 CITY COUNCIL MEETING DATE: 05/16/2023 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to approve EDCO’s residential solid waste collection and disposal services rate increase for Fiscal Year 2023-24. RECOMMENDED COUNCIL ACTION: 1) Approve EDCO’s residential solid waste collection and disposal rate increase of 6.0% for FY 2023-24; and 2) Adopt Resolution No. 2023-____, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA TO APPROVE A RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL SERVICES RATE INCREASE IN THE AMOUNT OF 6% for FY 2023-24. FISCAL IMPACT:If approved by the City Council, the City’s annual Collector Fee and Environmental Programs Fee will increase by 6.0% in the approximate amounts of $687,017 (to be deposited into the General Fund) and $173,490 (to be deposited into the Waste Reduction Fund), respectively for FY2023-24. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Vanessa Hevener, Project Manager REVIEWED BY: Lincoln Lo, Deputy Director of Public Works Ramzi Awwad, Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Resolution 2023-___ (page A-1) B. Amended and Restated Agreement with EDCO for Residential Solid Waste Collection Services (page B-1) C. Consumer Price Index for All Urban Consumers (CPIU) (page C-1) D. EDCO’s Rate Increase Request - Current FY 2022-23 and proposed FY 2023-24 rates (page D-1) BACKGROUND: On January 18, 2022, the City Council approved an amended and restated agreement for residential (single-family and multi-family) solid waste collection (Agreement) with 1 C, ~ ~ "' CITY O l97 RANCHO p ALOS VERDES 3 _ LL EDCO Disposal Corporation (EDCO) for a seven-year term expiring on June 30, 2029, with the option for an additional five-year term (Attachment B). Sections 6.2, 6.3, and 6.4 of the Agreement state that EDCO is entitled to receive annual rate increases subject to City Council approval as to compliance with the Agreement. These increases are not subject to an annual public protest hearing per Proposition 218 because on March 15, 2022, the City conducted a Proposition 218 public protest hearing adopting a formula authorizing annual rate increases for a five-year period, based on the rate adjustment formula in the Agreement. This rate increase request represents the second year of the approved rate adjustment schedule for single-family and multi-family rates. DISCUSSION: On March 14, 2023, EDCO requested a rate adjustment of 6.0% for Fiscal Year 2023-24, with the increase effective on July 1, 2023 (Attachment D). According to the Agreement with EDCO, the rate adjustment formula is based on the annual change in the Consumer Price Index for All Urban Consumers (CPI-U) US city average, (seasonally adjusted) for the Garbage and Trash Collection detailed expenditure category (Attachment C). Based on the CPI-U, the rate increase would be 6.13%; however, the Agreement with EDCO has a maximum annual rate increase of 6.0%. As such, the annual rate adjustment is requested at 6%. It is important to note if a proposed rate increase in any one year exceeds 6%, the portion of the increase that is disallowed may be added to any subsequent year’s rate increase to the extent that a subsequent adjustment remains below 6%. Impact on Residential Rates Including Multi-Family: The monthly rate charged to single-family customers with automated cart service, which is the overwhelming majority of customers in the City, is based on the size of the refuse cart chosen by the customer. The standard service is the 64-gallon cart. Table 1 shows the current monthly rate for most customers based on size of refuse cart, the proposed rate, and the increase amount based on a 6% increase. The monthly rates for most multi-family customers with bin service is based on the size of bins and the frequency of collection selected by the customer. Table 2 below shows the current monthly rate for typical customers (based on a 3 -yard bin collected once per week), the proposed rate, and the increase amount based on a 6% increase. A unique feature of the solid waste rate structure in the City of Rancho Palos Verdes is the Recycling Rebate. The Recycling Rebate is an amount that is deducted from each customer’s monthly charge to reflect the California Redemption Value (CRV) of the bottles and cans that customers place in EDCO’s recycling carts. The Recycling Rebate amount varies based on the service area; however, the rate for the overwhelming majority of customers is shown in Table 1 and Table 2. As a result, the effective amount paid by customers for solid waste services is less than the total rates that are charged to customers. 2 Table 1: Impact of Proposed Rates on Most Single-Family Automated Cart Customers Cart Size Current Monthly Rate 6% Increase Monthly Amount Proposed Monthly Rate Recycling Rebate Net Monthly Rate 35-gallon $26.06 $1.56 $27.62 ($1.58) $26.04 64-gallon (standard service) $33.54 $2.01 $35.55 ($1.58) $33.97 96-gallon $40.99 $2.46 $43.45 ($1.58) $41.87 Table 2: Impact of Proposed Rates on Most Multi-Family Customers (Excluding Organics) Service Area Current Monthly Rate 6% Increase Monthly Amount Proposed Monthly Rate Recycling Rebate Net Monthly Rate Area 1 $144.23 $8.65 $152.88 ($6.32) $146.56 Area 2 $126.60 $7.60 $134.20 ($5.24) $128.96 Multi-family customer organic waste is typically handled by landscapers. Therefore, organics collection and processing are not included in the rates shown in Table 2. Multi- family customers may obtain organic waste services from EDCO for an additional fee, self-haul in conformance with the requirements of SB 1383 (California’s Short-lived Climate Pollutant Reduction Law), or apply for a de minimis waiver if they meet certain specific conditions per SB 1383. This will typically depend upon how the building owner, building management or homeowners’ association board determines they will meet the requirements of SB 1383. The complete adjusted rate schedule for single family and multi-family is attached in the requested rate adjustment letter (Attachment D). Staff and the City Attorney's Office reviewed EDCO’s requested 6% rate increase and calculations for residential single-family and multi-family solid waste collection and disposal services and found them to be compliant with the terms of the Agreement. Collector Fee and Environmental Programs Fee The City receives an annual Collector Fee and an Environmental Programs Fee from EDCO. The annual Collector Fee (in the approximate amount of $648,130 in Fiscal Year 2022-23) helps offset some costs related to the residential and arterial streets’ wear and tear due to EDCO truck traffic on City roads. The annual Environmental Programs Fee (in the approximate amount of $163,670 in Fiscal Year 2022-23) helps offset some costs related to solid waste and recycling program implementation such as recycling events, annual report preparation, public outreach and education, in addition to stormwater pollution prevention activities such as street sweeping. 3 The Collector and Environmental Programs Fees will increase by the same 6%, to the approximate amounts of $687,017 (to be deposited into the General Fund) and $173,490 (to be deposited into the Waste Reduction Fund), respectively. CONCLUSION: Staff recommends that the City Council approve EDCO’s requested rate increase which have been found to be compliant with the terms of the Agreement. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Do not approve the fee increase which would result in a stop in services and potential litigation to enforce the terms of the Ag reement. 2. Take other action as deemed appropriate by the City Council. 4 RESOLUTION NO. 2023-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA TO CONSIDER AND APPROVE A RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL SERVICES RATE INCREASE IN THE AMOUNT OF 6% for FY2023-24. WHEREAS, The City of Rancho Palos Verdes (“City”) entered into an exclusive franchise agreement with EDCO Disposal Corporation (“EDCO”) for Residential Solid Waste Collection and Disposal Services on or about November 24, 2009, which was thereafter amended on June 30, 2015 (the “Agreement”); and WHEREAS, the term of the Agreement was set to expire on June 30, 2023, but the Agreement was amended and restated on January 18, 2022 to expire on June 30, 2029 with an additional five (5) year term, and WHEREAS, the City conducted a Proposition 218 public hearing on March 22, 2022 adopting a schedule of rate adjustments, including a formula for adjusting the rates, for a period not to exceed five years (“Five-Year Adjustment Formula”); and WHEREAS, the adoption of the Five-Year Adjustment Formula by the City Council is subject to the same procedures as a rate increase; and WHEREAS, EDCO has requested the annual rate increase pursuant to the Sections 6.2, 6.3, and 6.4 of Agreement based on the annual change in the Consumer Price Index for All Urban Consumers (CPIU) U S city average, (seasonally adjusted) for the Garbage and Trash Collection detailed expenditure category (Mnemonic XCPIUEHG02IUSA); and WHEREAS, Exhibit A, attached hereto and incorporated herein by this reference, establishes maximum rates for July 1, 2023 through June 30, 2024 (“Maximum Rates”); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The foregoing Recitals are hereby found to be true and correct and incorporated herein by this reference. Section 2. Refuse rates in Exhibit A shall take effect on July 1, 2023. Section 3. This Resolution shall become effective immediately. PASSED, APPROVED and ADOPTED this 16th day of May 2023. A-1 01203.0014/888090.1 Resolution No. 2023- Page 2 of 2 _____________________________ Barbara Ferraro, Mayor Attest: ____________________________ Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2023-___ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on May 16, 2023. __________________________ Teresa Takaoka, City Clerk A-2 Amended and Restated Agreement Between City Of Rancho Palos Verdes And EDCO Disposal Corporation For Residential Solid Waste Collection Services * * * January 18, 2022 B-1 Agreement Between City of Rancho Palos Verdes and EDCO Disposal Corporation for Res1dent1al Solid Waste Collection Services Contents 1 Defin1t1ons 3 1 1 AB 1826 3 1 2 AB 341 3 1 3 AB 939 3 1 4 Abandoned Items 3 1 5 Agreement 3 1 6 Affiliate 3 1 7 Applicable Law 4 1 8 Backyard Service 4 1 9 Billings 4 1 10 Bin 4 1 11 Bin Overage Clean-up Fee 4 1 12 Bin Service 5 1 13 Blue Container 5 1 14 Bulky Items 5 1 15 Cal Recycle 5 1 16 Cannabis Waste 5 1 17 Cart 5 1 18 Cart Collection Service 6 1 19 City 6 1 20 City Council 6 1 21 City Fac1lit1es 6 1 22 City Manager 6 1 23 Collect/Collection 6 1 24 Collector Fee 6 1 25 Collection Vehicle 6 1 26 Commercial 6 1 27 Commercial Edible Food Generator 7 1 28 Commercial Premises 7 1 29 Community Composting 7 1 30 Compactor 7 1 31 Compostable Plastics 7 1 32 Contractor 8 1 33 Contractor's Proposal 8 1 34 Contractor Compensation 8 1 35 Construction and Demolition Debns 8 1 36 Container 8 1 37 Contamination Fee 8 1 38 CPI 8 1 39 CRV 8 B-2 1 40 Customer 8 1 41 Disposal 9 1 42 Disposal S1te(s) 9 1 43 D1vers1on 9 1 44 Edible Food 9 1 45 Effective Date 9 1 46 Electronic Waste 9 1 47 Environmental Programs Fee 9 1 48 Environmental Laws 9 1 49 Excluded Waste 10 1 50 Facility 10 1 51 Food Recovery 10 1 52 Food Recovery Organization 11 1 53 Food Recovery Service 11 1 54 Food Scraps 11 1 55 Food-soiled Paper 11 1 56 Food Waste 11 1 57 Garbage 11 1 58 Gray Container 12 1 59 Gray Container Waste 12 1 60 Green Container 12 1 61 Green Waste 12 1 62 Organics Processing Facility 12 1 63 Gross Receipts 12 1 64 Hazardous Substance 12 1 65 Hazardous Waste 13 1 66 Household Hazardous Waste ("HHW') 13 1 67 Household Sharps Waste 13 1 68 lndemnitees 13 1 69 Landfill 14 1 70 Large Event 14 1 71 Large Venue 14 1 72 Local Education Agency 14 1 73 Materials Recovery Facility ("MRF") 14 1 74 Maximum Rate Schedule 14 1 75 Mulch 15 1 76 Mult1-Fam1ly Dwelling 15 1 77 Non-compostable Paper 15 1 78 Organic Waste 15 1 79 Owner 15 1 80 Person 16 1 81 Premises 16 1 82 Processing 16 1 83 Proh1b1ted Container Contaminates 16 1 84 Propos1t1on 218 16 1 85 Putresc1ble Waste 16 II B-3 1 86 Rate Schedule 16 1 87 Rate Year 17 1 88 Recycling 17 1 89 Recyclables 17 1 90 Recycling Rebate 17 1 91 Refuse 17 1 92 Renewable Natural Gas 17 1 93 Res1dent1al 17 1 94 Res1dent1al Premises 18 1 95 Roll-off Box 18 1 96 Route Review 18 1 97 Rubbish 18 1 98 SB 1383 18 1 99 SB 1383 Regulations 19 1 100 Scavenging 19 1 101 Scout Veh1cle(s) 19 1 102 Self-hauler (or Self-haul) 19 1 103 Service Level 19 1 104 Seniors 19 1 105 Service Area 1 19 1 106 Service Area 2 19 1 107 Single Family Dwelling 19 1 108 Solid Waste 20 1 109 Solid Waste Facility 20 1 11 O Solid Waste Collection Service 20 1 111 Source Separated 20 1 112 Source Separated Blue Container Organics Waste (SSBCOW) 20 1 113 Source Separated Green Container Organic Waste (SSGCOW) 20 1 114 Split Bin 20 1 115 State 20 1116Term 21 1 117 Tier One Commercial Edible Food Generator 21 1 118 Tier Two Commercial Edible Food Generator 21 1 119 Transfer 22 1 120 Transfer Station 22 1 121 Transformation 22 1 122 Transformation Facility 22 1 123 Transportation or Transport 22 1 124 Universal Waste 22 1 125 Waste Evaluation 22 1 126 Waste Generator 23 1 127 Working Day 23 2 GRANT AND ACCEPTANCE OF RIGHTS 24 2 1 Grant and Acceptance of Rights, Indemnity of Award 2 2 Enforcement of Exclus1v1ty 2 3 Effective Date, Start of Services Ill 24 24 25 B-4 2 4 Term of Agreement 25 2 5 Representations and Warranties of Contractor 25 2 6 Cond1t1ons to Effectiveness of Agreement 27 2 7 Delegation of Authority 28 2 7 1 City Representatives 28 2 7 2 Contractor Representative 28 2 8 L1m1tat1ons to Scope 28 2 9 City's Right to Direct Changes 30 2 9 1 General 30 2 9 2 New D1vers1on Programs 31 2 1 O Ownership of Solid Waste 31 2 11 Permits and Licenses 32 2 12 Contractor Name 32 2 13 Coordination with Other Junsd1ct1ons 32 2 14 Good Faith Negot1at1ons for Exclusive Commercial Service 32 3 Fees Paid to the City 34 3 1 Other City Fees 34 3 1 1 Collector Fee 34 3 1 2 Environmental Programs Fee 34 3 1 3 Recycling Rebate 34 3 2 Future Fees 35 4 Direct Services 36 4 1 General 36 4 1 1 High Quality Collection Service 36 4 1 2 Summary of Terms 36 4 1 3 Service Areas 1 and 2 36 4 2 Refuse 37 4 2 1 Cart Refuse Collection 37 4 2 2 Gray Cart Overage 37 4 2 3 Backyard Service 38 4 2 4 Backyard Service for the Disabled 38 4 2 5 Flag Lot Service 38 4 2 6 Bin Refuse Collection 38 4 2 7 Overflowing Containers 39 4 2 8 Scout Vehicles 40 4 2 9 Bin Push-out Service 40 4 2 1 0 Pup Route Service 40 4 2 11 Locking Bins 40 4 2 12 Return Tnp Fee 40 4 2 13 On-Call Bulky Item Pickup 41 4 2 14 Bulky Item D1vers1on 41 4 2 15 Household Hazardous Waste Events 42 4 2 16 Used 011 and Used 011 Filter Collection 42 4 2 17 Disposal of Electronic Waste and Other Special Wastes 42 4 2 18 Household Battery and Florescent Light Bulb Drop-Off 42 IV B-5 4 2 19 Household Sharps Waste Disposal Program 43 4 2 20 Optional Household Hazardous Waste Programs 43 4 3 Recycling 44 4 3 1 Recyclables Collection for Cart Refuse Customers 44 4 3 2 Recyclables Collection from Bin Refuse Customers 45 4 3 3 Add1t1onal Recyclables Programs 45 4 3 4 Warning Notice 45 4 3 5 Marketing and Sale of Recyclables 46 4 3 6 Minimum Recycling Requirements 46 4 3 7 Collection and Delivery of Recyclables 46 4 4 Organics Collection Program 46 4 4 1 Organics Collection for Single-Family Customers 46 4 4 2 Kitchen Caddies 4 7 4 4 3 Organics Collection for Mult1-fam1ly Customers 4 7 4 4 4 Holiday Tree Collection Program 48 4 4 5 Brush Clearing Events 48 4 4 6 Brush Clearing Events -HOAs 48 4 4 7 End Uses for Organics and Green Waste 48 4 5 City Services 49 4 5 1 City Fac1lit1es Collection 49 4 5 2 E-Waste at City Fac1lit1es 49 4 5 3 City-Sponsored Events 49 4 5 4 Clean-Up Event Collection 50 4 5 5 Emergency Collection and Disposal Service 50 4 5 6 Abandoned Item Collection 50 4 5 7 Street Sweeping Contract Management 51 4 6 Operations 52 4 6 1 Schedules 52 4 6 2 Missed Pickups 52 4 6 3 Vehicles 53 4 6 4 Containers 56 4 6 5 Litter Abatement 58 4 6 6 Personnel 59 4 6 7 ldent1f1cat1on Required 60 4 6 8 Fees and Gratu1t1es 60 4 6 9 Non-D1scriminat1on 60 4 6 1 O Report of Accumulation of Solid Waste, Unauthorized Dumping 61 4 7 Contamination Monitoring and M1nim1zat1on 61 4 7 1 Route Reviews 61 4 7 2 Waste Evaluations 61 4 7 3 On-board Cameras 62 4 8 Transportation of Solid Waste and Recyclables 62 4 9 Designated Fac1lit1es 63 4 9 1 Disposal Site 63 4 9 2 Designated Recycling Facility 63 4 9 3 Designated Organics Processing Facility 63 V B-6 ' 4 9 4 Facility Replacement Due to Non-Compliance 63 4 1 0 Status of Disposal Site 64 4 11 Dedicated Routes 64 4 12 Border Street Routing 64 4 13 Route Audit 64 4 14 Routing Plan Approval 66 4 15 Service Exceptions, Hazardous Waste Not1f1cat1ons 66 4 16 Manual Backyard Refuse Collection 67 4 17 Portuguese Bend Beach Club Litter Containers 67 4 18 Recyclables Collection for Manual Collection Customers 67 4 19 Organics Collection for Manual Collection Customers 67 • 5 Other Services 68 5 1 Customer B1lllng and Contractor Compensation 68 5 1 1 Cart B1lllng 68 5 1 2 Bin B1lllng 68 5 1 3 Compensation Entirely Through Approved Rates 69 5 1 4 Discounts 69 5 1 5 Contractor's Invoices 70 5 1 6 Customer Credits 70 5 1 7 Customer B1lllng AdJustments 70 5 1 8 Exemption From Service 70 5 1 9 Late Payments 71 5 1 1 O Electronic Billing and Payment 71 5 2 Customer Service 71 5 2 1 Local Office 71 5 2 2 Complaint Documentation 72 5 2 3 Resolution of Customer Complaints 72 5 2 4 Service L1a1son 72 5 3 Public Education and Outreach -Initial and Ongoing 73 5 3 1 General 73 5 3 2 Education and Outreach -Initial Rollout of Organics Collection 73 5 3 3 Education and Outreach -On-going 7 4 5 3 4 Contractor Representative 75 5 3 5 Community Events 76 5 4 Technical Assistance Program 76 5 4 1 Site V1s1ts and Waste Assessments 76 5 5 Customer Waiver Program Coordination 77 5 5 1 Contractor Waiver Request on Behalf of Customer 77 5 5 2 Waiver Revenf1cat1on 77 5 5 3 Contractor Recordkeeping of Customer Granted Waivers 78 5 6 Inspection and Enforcement 78 5 6 1 General 78 5 6 2 Commercial Customer Compliance Reviews 78 5 6 3 Number of Reviews 78 5 6 4 Non-Compliant Ent1t1es 79 5 6 5 Documentation of Inspection Actions 79 VI B-7 . 5 7 Procurement of Products with Recycled and Organics Contents 79 5 7 1 Recycled-Content Paper 79 5 7 2 Prov1s1on of Mulch 80 5 7 3 Renewable Natural Gas 80 5 7 4 Recordkeeping Requirements 80 5 8 Waste Generat1on/Charactenzat1on Studies 80 6 Contractor Compensation and Rates 82 6 1 General 82 6 2 Schedule of Future Adjustments, Automatic Adjustments, Prop 218 82 6 3 Method of Inflationary Adjustments 83 6 4 Maximum Allowable Rate Year Adjustment 83 6 5 Extraordinary Adjustments 83 6 6 Brush Clearing Tonnage Threshold Adjustment 84 6 7 Supporting Information 85 6 8 Potential Future Organics Facility on Palos Verdes Peninsula 85 7 Review Of Services and Performance 86 7 1 Performance Review Meeting 86 8 Records, Reports and Information Requirements 88 8 1 General 88 8 2 Records 88 8 2 1 General 88 8 2 2 Financial Records 89 8 2 3 Solid Waste and Recyclables Records 89 8 2 4 CERCLA Defense Records 90 8 2 5 Other Programs' Records 90 8 2 6 Audit 90 8 2 7 Payments and Refunds 91 8 3 Reports 91 8 3 1 Report Formats and Schedule 91 8 3 2 Monthly Reports 92 8 3 3 Quarterly Reports 92 8 3 4 Annual Report 93 8 3 5 Financial Report 94 8 4 Database for SB 1383 Reporting and Implementation Record 94 8 5 Reporting Adverse Information 95 8 6 Right to Inspect Records 95 8 7 Failure to Report 95 9 lndemnif1cat1on, Insurance, Bond and Letter of Credit 96 9 1 lndemnif1cat1on 9 2 Hazardous Substances lndemnif1cat1on 9 3 lndemnif1cat1on -Failure to Meet D1vers1on Requirements 9 4 Insurance 9 5 Faithful Performance Bond VII 96 97 98 99 104 B-8 9 6 Faithful Performance Letter of Credit 104 9 7 Forfeiture of Performance Bond 105 9 8 Forfeiture of Letter Of Credit 105 9 9 Performance Security Beyond Service Term 105 1 0 City's Right to Perform Service 106 1 0 1 General 1 06 1 0 2 B1lhng and Compensation to City During City's Possession 107 1 0 3 City's Right to Relinquish Possession 107 1 O 4 City's Possession Not a Taking 107 1 O 5 , Duration of City's Possession 107 , 11 Default, Remedies and L1qu1dated Damages 108 11 1 Events of Default 108 11 2 Right to Terminate Upon Default and Right to Spec1f1c Performance 110 11 3 L1qu1dated Damages 110 11 4 Excuse from Performance 114 11 5 Notice, Hearing and Appeal of City Breach 115 11 6 Assurance of Performance 115 12 Other Agreements of the Parties 116 12 1 Relat1onsh1p of Parties 116 12 2 Compliance with Law 116 12 3 Governing Law 116 12 4 Jurisd1ct1on 116 12 5 Assignment 116 12 6 Contracting or Subcontracting 119 12 7 Binding on Assigns 119 12 8 Cooperation in Preparation for Termination or Expiration of Contract 119 12 9 Parties in Interest 120 12 10 Waiver 120 12 11 Contractor's lnvest1gat1on 120 12 12 Condemnation 120 12 13 Notice 120 12 14 City Free to Negotiate with Third Parties 121 12 15 Privacy 121 12 16 Public Records, Exempt Information 121 13 Miscellaneous Prov1s1ons 122 13 1 Entire Agreement 122 13 2 Section Headings 122 13 3 References to Laws and Other Agreements 122 13 4 Interpretation 122 13 5 Agreement 122 13 6 Severab1lity 122 13 7 Exh1b1ts 122 13 8 Attorneys' Fees 123 VIII B-9 Exh1b1ts Exh1b1t 1 -Service Area #2 Exh1b1t 2 -Organics Program Implementation Plan Exh1b1t 3 -Initial Maximum Rates Effective April 1, 2022 Exh1b1t 4 -Faithful Performance Bond IX 124 125 128 130 B-10 AGREEMENT This Agreement for Integrated Solid Waste Management Services (hereinafter the "Agreement") Is entered into this 18th day of January 2022, by and between the City of Rancho Palos Verdes, California, ("City") and EDCO Disposal Corporation ("Contractor"), for the collection, transportation, recycling, processing, and disposal of solid waste and other services related to meeting the goals and requirements of the AB 939, AB 341, AB 1826, and SB 1383 RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (the "Act") (California Public Resources Code Section 40000 et seq ), has declared that It Is In the public interest to authorize and require local agencies to make adequate provIsIons for solid waste handling within their 1urisd1ct1ons, and, WHEREAS, the City Is obligated to protect the public health and safety of the residents and businesses of the City of Rancho Palos Verdes, and Collection of solid waste should be undertaken in a manner consistent with the exercise of the City's obligations for the protection of public health and safety, and, WHEREAS, the City's primary goals in entering into this Agreement are to ensure that 1) Collection Services are of the highest caliber, 2) Customer sat1sfact1on remains at the highest level, 3) the environment Is protected, 4) maximum d1vers1on levels are achieved, 5)Rancho Palos Verdes does its part to reduce greenhouse gas (GHG) emIssIons generated from waste Collection and disposal as part of Rancho Palos Verdes's 1mplementat1on of federal, state, and local efforts to address climate change, and, 6) that materials collected are put to the highest and best use WHEREAS, City declares its intention of maIntaIning reasonable rates and quality service related to the collection, transfer and transportation, recycling, processing, and disposal of solid waste and other services, and, WHEREAS, City and Contractor are mindful of new laws adopted by the State of California intended to divert recyclables and organic materials from being landfilled AB 341 mandates that commercial waste generators arrange for recycling services AB 1826 mandates that commercial waste generators recycle their organic waste AB 1594 will end the practice of excluding organic material used as Alternative Daily Cover (ADC) from the calculation of a 1urisd1ct1on's total per capita amount of waste disposed SB 1383 allows the Department of Resources Recycling and Recovery (CalRecycle) to implement new regulations on local 1urisd1ct1ons 1f s1gnif1cant progress has not been made in certain waste reduction goals, and, 1 of 123 B-11 WHEREAS, City and Contractor are mindful of the prov1s1ons of the laws governing the safe collection, transport, recycling, processing and disposal of solid waste, including AB 939, AB 341, AB 1826, and SB 1383, the Resource Conservation and Recovery Act ' ("RCRA") (42 US C § 6901 et seq, and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") (42 US C §9601 et seq) City and Contractor desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City 1s not thereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and that 1t 1s Contractor, not City, who 1s "arranging for" the collection from premises in the City, transport for disposal, composting or other processing, and recycling of municipal solid waste which may contain . hazardous substances, and further to confirm that as a material inducement to City entering into this Agreement, Contractor has agreed to fully indemnify City in connection with any claims, losses, liab1lit1es, lawsuits or actions 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, and, WHEREAS, City and Contractor are party to an Agreement for Res1dent1al Solid Waste Management Services for Service Area 1 dated November 24, 2009, and, WHEREAS, on June 30, 2015, City and Contractor amended their 2009 Agreement to include Service Area 2 in the Contractor's scope of service and to make other changes to the Agreement including adding brush clearing, changing the rate adJustment method, and including the management of the City's street sweeping contractor, and, WHEREAS, this Agreement 1s intended to restate and supersede all prior agreements between City and Contractor, and, NOW, THEREFORE, in cons1derat1on of the premises above stated and the terms, cond1t1ons, covenants and agreements contained in this Agreement, the Parties do hereby agree as follows 2 of 123 B-12 1 DefmItIons The terms used in this Agreement shall have the meaning set forth in this Article 1 In the event a term 1s not defined in this Article 1, then 1t shall have the meaning set forth 1n the Rancho Palos Verdes Municipal Code or in D1v1s1on 30, Part 1, Chapter 2 of the California Public Resources Code (with precedence given to def1nit1ons in the Rancho Palos Verdes Municipal Code over conflicting defin1t1ons contained 1n the Public Resources Code) Except as provided in Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms Otherwise, the following capitalized words and terms shall have the following meanings 1 1 AB 1826 "AB 1826" means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying D1v1s1on 30 of the California Public Resources Code), also commonly referred to as "AB 1826," as amended, supplemented, superseded, and replaced from time to time 1 2 AB 341 "AB 341" means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro, AB 341 ]), also commonly referred to as "AB 341 ", as amended, supplemented, superseded, and replaced from time to time 1 3 AB 939 "AB 939" means the California Integrated Waste Management Act of 1989, cod1f1ed in part at Public Resources Code section 40000 et seq , as 1t may be amended from time to time and as implemented by the regulations of the California Department of Resources Recycling and Recovery (CalRecycle), or its successor agency 1 4 Abandoned Items "Abandoned Items" means items abandoned in the public right-of-way, and on public premises including but not hmrted to Bulky Waste items and Yard Waste 1 5 Agreement "Agreement'' means this Amended and Restated Agreement for Res1dent1al Collection Services 1nclud1ng all exh1b1ts and any amendments 1 6 Aff1hate "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) that are directly or indirectly related to Contractor by virtue of direct or indirect ownership interest or common management An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business 3 of 123 B-13 ----- 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 ind1v1dual 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 (26 U SC § 318(a)), as in effect on the date of this Agreement, shall apply, provided, however, that (1) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C), and (11) 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 1 7 Applicable Law "Applicable Law" means all laws, regulations, rules, orders, directives, Judgments, decrees, permits, approvals, or other requirement of the United States, the State of California, the County of Los Angeles, the City of Rancho Palos Verdes (including, but not limited to, Chapter 8 20 of the Rancho Palos Verdes Municipal Code), and any federal, state, regional or local adm1nistrat1ve and regulatory agencies, that are applicable to any aspect of this Agreement or the provIsIon of Solid Waste Collection Services, that are in force on the Effective Date and as they may be enacted, issued or amended during the Term 1 8 Backyard Service "Backyard Service" Is defined in Section 4 2 3 Backyard Service "Billings" or "Billing" or "Bill" means the statement(s) of charges provided to Customers for services rendered by Contractor 110 Bm "Bin" means a front-loading Container with hinged lids and wheels with a capacity from two (2) to eight (8) cubic yards 1 11 Bm Overage Clean-up Fee "Bin Overage Clean-up Fee" means a fee charged to a Customer who allows his or her Container(s) to overflow within a three-month period of receIvIng a written notice from Collector that Customer had an overflowing Container incident 4 of 123 B-14 1 9 Billings 1 12 Bm Service "Bin Service" means Solid Waste Collection Services in which a Bin 1s used for the Collection of Solid Waste and Recyclables 1 13 Blue Container "Blue Container" or "Blue Cart" means a container used for storage and Collection of Source Separated Recyclables Materials or Source Separated Blue Container Organic Waste A Blue Container means a container where either 1) the lid of the container 1s blue in color, or, 2) the body of the container 1s blue in color and the lid 1s e1ther,blue, gray, or black in color 1 14 Bulky Items "Bulky Items" means Solid Waste that cannot and/or would not typically be accommodated w1th1n a Cart including spec1f1cally furniture (including chairs, sofas, mattresses, and rugs), appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other s1m1lar items, commonly known as "white goods"), yard debris, Green Waste and small pieces of wood limited to the equivalent of two 96-gallon Carts of contained material per collection, Electronic Waste, and clothing Bulky Items do not include car bodies, tires, Construction and Demolition Debris or items requmng more than two persons to remove Other items not spec1f1cally included or excluded above will be Collected provided that they are not more than eight feet in length, four feet in width, or more than 150 pounds In the event a question ever arises as to whether a spec1f1c item or category of items meets the defin1t1on of Bulky Items, the City Manager shall determine whether that defin1t1on shall apply, which determ1nat1on shall be final and binding on the Parties 1 15 Cal Recycle "CalRecycle" means the California Department of Resources Recycling and Recovery, or its successor agency 1 16 Cannabis Waste "Cannabis waste" means waste that 1s not hazardous waste which contains cannabis and that has been made unusable and unrecognizable in the manner required by State cannabis laws Cannabis waste 1s a subset of green waste and organic waste 1 17 Cart "Cart" means a plastic Container with a hinged lid and wheels serviced by an automated or semi-automated truck with a capacity of no less than 32-and no greater than 101- gallons 5 of 123 B-15 . 1 18 Cart Collection Service "Cart Collection Service" means collection service using Carts This includes service provided to Single-Family Premises (excluding those single-family customers that elect to use Bin collection service), Customers on Commercial Premises that generate small quant1t1es of waste and elect to use cart collection service, and Customers on Mult1-Fam1ly Premises with 1nd1v1dual storage capacity to store Carts with access to curbside service from side-loading collection vehicles 1 19 City ' ' ' "City" means City of Rancho Palos Verdes, California, a municipal corporation, and all the territory lying within the municipal boundaries of City as presently existing or as such boundaries may be mod1f1ed during the Term 1 20 City Council "City Council" means the City Council of the City of Rancho Palos Verdes, California 1 21 City Fac1ht1es "City Fac1ht1es" means all Premises owned or operated by City, now and in the future, including but not limited to, City Hall, City offices, parks, City yard (Silo Yard), and beaches 1 22 City Manager "City Manager" means the City Manager of the City of Rancho Palos Verdes or the City Manager's des1gnee 1 23 Collect/Collect1on "Collect" or "Collection' means to take physical possession, transport, and remove Solid Waste or Recyclables within and from City 1 24 Collector Fee "Collector Fee" 1s defined in Section 3 1 1 Collector Fee 1 25 Collection Vehicle "Collection Vehicle" 1s defined in Section 4 6 3 Vehicles 1 26 Commercial "Commercial" refers to services performed at or for Commercial Premises 6 of 123 B-16 1 27 Commercial Edible Food Generator "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) For the purposes of this defin1t1on, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators 1 28 Commercial Premises "Commercial Premises" means Premises upon which business actIvIty Is conducted, including but not limited to,reta1I sales, services, wholesale operations, manufacturing and industrial operations, but excluding Res1dent1al 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, and City Fac1lit1es Notwithstanding any provIsIon to the contrary in this Agreement, in the Rancho Palos Verdes Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses (as defined in the Rancho Palos Verdes Municipal Code) are occurring shall be deemed to be Commercial Premises Assisted Living Fac1llt1es, Convalescent Homes, Dormitories, Extended Stay Motels, Group Res1dent1al Fac1lit1es, Adult Res1dent1al Facilities, time­ shares, resorts, spas, Group Care Fac1lit1es, Hotels, and Motels and any other businesses not spec1f1cally listed at which residency Is transient in nature and hence should be class1f1ed as Commercial Premises In the event a question ever arises as to whether a spec1f1c Premises meets the defin1t1on of Commercial Premises, the City Manager shall determine whether that def1nit1on will apply, which determination shall be final and binding on the Parties 1 29 Community Compostmg "Community Composting" means any actIvIty that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet 1 30 Compactor "Compactor" means any Bin or Roll-off Box that has a compaction mechanism, whether stationary or mobile 1 31 Compostable Plastics "Compostable Plastics" means plastic material that meets the American Society for Testing and Materials (ASTM) D6400 standard for compostab1lity (sections 5 1 through 6 4 2 published May 2019) 7 of 123 B-17 1 32 Contractor "Contractor" means EDCO Disposal Corporation, a corporation organized and operating under the laws of the State of California and its officers, directors, employees, agents, companies and subcontractors 1 33 Contractor's Proposal "Contractor's Proposal" means the proposal submitted by Contractor to City on July 26, 2021 submitted to the City to address the impacts of SB 1383 This Agreement supersedes Contractor's Proposal and 1s the final written expression of the Parties' agreement 1 34 Contractor Compensation "Contractor Compensation" means the revenue received by the Contractor from Customers in return for providing services in accordance with this Agreement 1 35 Construction and Demoht1on Debris "Construction and Demolition Debns" means Solid Waste generated at a Premises that 1s directly related to construction or demolition act1v1t1es occurring thereon 1 36 Container "Container" means any and all types of Solid Waste or Recyclables receptacles, including cans/barrels, Carts, Bins and Roll-off Boxes 1 37 Contammat1on Fee "Contamination Fee" shall mean an amount charged by Contractor to Customers to offset Contractor's add1t1onal costs or d1min1shed revenue due to contamination of Refuse, Recyclables, Organics, or Green Waste placed in Containers 1 38 CPI "CPI" means the Consumer Pnce Index for All Urban Consumers (CPI-U), U S city average, (seasonally adJusted) for the Garbage and Trash Collection detailed expenditure category (Mnemonic XCPIUEHG02 IUSA or BLS Senes CUUR0000SEHG02) 1 39 CRV "CRV" 1s defined in Section 3 1 3 Recycling Rebate 1 40 Customer "Customer" means a Person rece1v1ng Solid Waste Collection Services from Contractor pursuant to the terms of this Agreement 8 of 123 B-18 1 41 Disposal "Disposal" means the ultimate d1spos1t1on of Solid Waste Collected by Contractor at a landfill or otherwise as permitted by Applicable Law 1 42 Disposal S1te(s) "Disposal S1te(s)" means the Solid Waste handling Facility or Fac1lit1es utilized for the ultimate Disposal of Solid Waste Collected by Contractor 1 43 D1versIon "D1vers1on" means any combination of waste prevention (source reduction), Recycling, reuse and composting actIvItIes that reduces waste disposed at landfills, provided such actIvItIes are recognized by CalRecycle as D1vers1on' 1 44 Edible Food "Edible Food" means food intended and suitable for human consumption For the purposes of this Agreement, Edible Food Is not Solid Waste 1f 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 def1nit1on in 14 CCR Section 18982(a)(18) for Edible Food differs from this def1nit1on, the def1nit1on in 14 CCR Section 18982(a)(18) shall apply to this Agreement 1 45 Effective Date "Effective Date" means the date on which the Agreement becomes binding upon the parties, which Is the date when all the cond1t1ons set forth below in Section 2 6 have been met, and both parties have properly executed the Agreement "" 1 46 Electronic Waste "Electronic Waste" or "E-Waste" means discarded electronic equipment and includes, but Is not limited to, stereos, telev1s1ons, CRTs, computers and computer monitors, VCRs, cellular phones, fax machines, household copiers, computer pnnters, video game consoles, other items with electnc plugs that are banned from landfilling, and other s1m1lar items commonly known as 'brown goods ' 1 47 Environmental Programs Fee "Environmental Programs Fee" Is defined In Section 3 1 2 Environmental Programs Fee 1 48 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 9 of 123 B-19 example and not lim1tat1on, the Comprehensive Environmental Response, Compensation and L1ab1lity Act of 1980, 42 U S C § 9601 et seq • the Resource Conservation and Recovery Act, 42 U SC § 6901 et seq • the Federal Clean Water Act, 33 U SC § 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 California 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 filill..... 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 1 49 Excluded Waste "Excluded Waste" means Hazardous Substance, Hazardous Waste, Infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated rad1oact1ve waste, and toxic substances or material that approved/designated facility operator(s) reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a v1olat1on of local, State, or Federal law, regulation, or ordinance, including land use restrictions or cond1t1ons, waste that cannot be disposed of in Class Ill Landfills or accepted at the facility by permit cond1t1ons, waste that in Contractor's reasonable opinion would present a s1gmf1cant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or Jurisd1ct1on to potential liability, but not including de min1m1s volumes or concentrations of waste of a type and amount normally found in single-family or mult1-fam1ly solid waste after 1mplementat1on 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 Excluded waste does not include used motor oil and filters, household batteries, universal wastes, and/or latex paint when such materials are defined as allowable materials for collection through this Agreement and the Waste Generator or Customer has properly placed the materials for Collection pursuant to instructions provided by the City or Contractor as set forth in this Agreement 1 50 Facility "Facility" means any plant or site, owned or leased and maintained, operated or used by Contractor for purposes of performing under this Agreement 1 51 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 CC R Section 18982(a)(24) 1 O of 123 B-20 1 52 Food Recovery Orgamzat1on 'Food Recovery Organization' means an entity that pnmanly 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, 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 D If the def1mt1on in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this def1nit1on, the defin1t1on in 14 CCR Section 18982(a)(25) shall apply to this Agreement 1 53 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 1 54 Food Scraps "Food Scraps" means discarded food that will decompose and/or putrefy and Is segregated for Collection and Recycling Food scraps includes, but Is not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, nee, beans, pasta, bread, cheese, and eggshells Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps 1 55 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, and pizza boxes 1 56 Food Waste "Food Waste" means Food Scraps, Food-Soiled Paper, and Compostable Plastics 1 57 Garbage "Garbage" means all putresc1ble waste that generally includes, but Is not limited to, animal, vegetative, food or any other waste that Is attendant with, or results from the storage, preparation, cooking or handling of food materials attributed to normal actIvItIes of a service unit 11 of 123 B-21 1 58 Gray Container "Gray Container" or "Gray Cart" means a Container used to store and collect Refuse, mixed waste, and Gray Container waste A means a container where either 1) the lid of the container Is gray or black in color, or, 2) the body of the container Is gray or black in color and the lid Is gray or black in color 1 59 Gray Container Waste "Gray Container Waste" means Refuse or mixed waste that Is Collected in a Gray Container that Is part of a Collection service that proh1b1ts the placement of Recyclables or Organic Waste in the Gray Container 1 60 Green Container "Green Container" or "Green Cart" means a Container used to store and collect Source Separated Green Container Organic Waste A green container means a container where either 1) the lid of the container Is green in color, or, 2) the body of the container Is green in color and the lid Is either green, gray, or black in color 1 61 Green Waste "Green Waste" means leaves, grass clippings, brush, branches, and other forms of organic materials generated from landscapes or gardens, separated from other Solid Waste 1 62 Organics Processing Facility "Organics Processing Facility" means a permitted Facility where Organics Is sorted, mulched or separated for the purposes of Recycling, reuse or composting 1 63 Gross Receipts "Gross Receipts" means any and all revenue received from Billings, and compensation in any form, of Contractor or subs1d1aries, parent companies or other Affiliates of Contractor, for the Collection and transportation of Solid Waste and Recyclables pursuant to this Agreement, in accordance with generally accepted accounting principles, including, but not limited to, Customer fees for Collection of Solid Waste and Recyclables, without subtracting Disposal fees, City fees or other fees or any other cost of doing business 1 64 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 waste", "toxic waste", "pollutants" or "toxic substances" or s1m1larly 1dent1f1ed as hazardous to human health or the environment, in or pursuant to (1) the Comprehensive Environmental Response, Compensation and L1ab11ity Act of 1980, 42 12 of 123 B-22 . USC § 9601 et seq (C ERCLA), (11) the Hazardous Materials Transportation Act, 49 USC § 5101, et seq , (111) the Resource Conservation and Recovery Act, 42 USC § 6901 et seq, (1v) the Clean Water Act, 33 USC § 1251 et seq, (v) California Health and Safety Code §§ 25110 02, 25115, 25117, 25249 8, 25281, 25316, 25501 and 25501 1, (v1) the Clean Air Act, 42 USC § 7401 et seq, and (v11) 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 1dent1f1ed as hazardous or toxic or regulated under any other applicable federal, state or local Environmental Laws currently existing or hereinafter enacted, including, without lim1tat1on, friable asbestos, polychlorinated b1phenyl's ("PCBs"), petroleum, natural gas and synthetic fuel products, and by-products 1 65 Hazardous Waste "Hazardous Waste" means and includes wastes defined as hazardous by Public Resources Code Section 40141 as It now exists or subsequently may be amended, as well as 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 recod1f1cat1ons of such statutes or 1dent1f1ed and listed as Hazardous Waste by the US Environmental Protection Agency (E PA), pursuant to the Federal Resource Conservation and Recovery Act (42 U SC § 6901 gt_seq ), all future amendments thereto, and all rules and regulations promulgated thereunder 1 66 Household Hazardous Waste ("HHW") "Household Hazardous Waste" means Hazardous Waste generated at Res1dent1al Premises 1 67 Household Sharps Waste "Household Sharps Waste" shall mean home-generated sharps, as defined in Section 117671 of the California Health & Safety Code, including hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of med1cat1ons, which are generated by a single-family or mult1-fam1ly residence 'Household Sharps Waste' does not include any waste generated in the course of operating a business concern at a residence, business generated waste, or medical waste not described in this Agreement 1 68 lndemmtees "lndemrntees" means the City, ,ts public offlc1als, officers, employees, consultants, agents, volunteers, and independent contractors serving in the role of the City offlc1als 13 of 123 B-23 1 69 Landfill "Landfill" means a "sohd waste landfill," as defined by Public Resources Code Section 40195 1 1 70 Large Event "Large Event" means an event, including, but not limited to, a sporting event or a flea market, that charges an adm1ss1on price, or 1s operated by a local agency, and serves an average of more than 2,000 ind1v1duals per day of operation of the event, at a location that include�, but 1s not limited to, a pµblic, nonprofit, or privat�ly owned park, parking lo,t, golf course, street system, or other open space when being used for an event 1 71 Large Venue "Large Venue" means a permanent venue facility that annually seats or serves an average of more than 2,000 ind1v1duals w1th1n the grounds of the facility per day of operation of the venue facility For purposes of 14 CCR, D1v1s1on 7, Chapter 12 and this Agreement, a venue facility includes, but 1s not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or c1v1c center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility For purposes of 14 CCR, D1v1s1on 7, Chapter 12 and this Agreement, a site under common ownership or control that includes more than one large venue that 1s contiguous with other large venues in the site, 1s a single large venue 1 72 Local Education Agency "Local education agency" means a school district, charter school, or county office of education that 1s not subJect to the control of City or county regulations related to solid waste 1 73 Materials Recovery Facility ("MRF") "Materials Recovery Facility" means a fully permitted Facility where Solid Wastes or Recyclables are sorted or separated for the purposes of Recycling, processing or composting 1 74 Maximum Rate Schedule "Maximum Rate Schedule" means that schedule of Customer rates at Exh1b1t 3 14 of 123 B-24 . 1 75 Mulch "Mulch" means a layer of material applied on top of soil, and, for the purposes of the Agreement, Mulch shall conform with the following cond1t1ons, or cond1t1ons as otherwise spec1f1ed in 14 CCR Section 18993 1 (f)( 4) Meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land application spec1f1ed in 14 CCR Section 17852(a)(24 5)(A)(1) through (3) 11 Was produced at one or more of the following types of Fac1ht1es a)A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that Is permitted or authorized under 14 CCR, D1v1s1on 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10), b)A Transfer/Processing Facility or Transfer/Processing operation as defined in 14 CCR Section 17402(a)(30) and (31 ), respectively, that Is permitted or authorized under 14 CCR, D1v1s1on 7, or, c)A Solid Waste Landfill as defined in PRC Section 40195 1 that Is permitted under 27 CCR, D1v1s1on 2 1 76 Mult1-Fam1ly Dwelling "Mult1-Fam1ly Dwelling" means any building or lot containing three or more dwelling units Mult1-Fam1ly Dwelling units generally receive Solid Waste and Recyclables Collection through the use of shared Bins, or Carts 1 77 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 1 78 Organic Waste "Organic Waste" or "Organics" means Green Waste, Food Waste, manure, and any other organic waste material which Is acceptable to be delivered to an organics processing facility such as an anaerobic digester, or composting facility Organic Waste includes Source Separated Green Container Organic Waste 1 79 Owner "Owner" means the Person holding the legal title to the real property constituting the Premises to which sohd waste collection service 1s to be provided under this Agreement or the Person holding legal title to the Disp osal Site, depending upon the context used in this Agreement 15 of 123 B-25 1 80 Person "Person" means any ind1v1dual, firm, assoc1at1on, organization, partnership, corporation, business trust, Joint venture, the United States, the State of California, the County of Los Angeles, c1t1es, and special purpose districts 1 81 Premises "Premises" means any land, or bu1ld1ng in the City where Solid Waste and Recyclables are generated or accumulated ' 1 82 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 1 83 Proh1b1ted Container Contaminates "Proh1b1ted Container Contaminants" means the following (1) Discarded Materials placed in the Blue Container that are not 1dent1f1ed as acceptable Source Separated Recyclables for the City's Blue Container, (11) Discarded Materials placed in the Green Container that are not 1dent1f1ed as acceptable Source Separated Organic Waste for the City's Green Container, (111) Discarded Materials placed in the Gray Container that are acceptable Source Separated Recyclables and Organic Materials to be placed in City's Green Container and/or Blue Container , and (1v) Excluded Waste placed in any Container 1 84 Propos1t1on 218 "Propos1t1on 218" means Articles XIIIC and XIIID of the California Const1tut1on and any implementing leg1slat1on promulgated thereunder, as may be amended from time to time 1 85 Putresc1ble Waste "Putresc1ble Waste" means wastes that are capable of being decomposed by micro­ organisms with sufficient rap1d1ty as to cause nuisances because of odors, gases, or other offensive cond 1t1ons 1 86 Rate Schedule "Rate Schedule" means the approved schedule of maximum perm1ss1ble monthly rates currently in effect on the date Solid Waste Collection Service 1s provided 16 of 123 B-26 1 87 Rate Year "Rate Year" means the period July 1 to June 30, for each year during the Term 1 88 Recycling "Recycling" means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream in the form of raw materials for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace Recycling does not include Transformation 1 89 Recyclables "Recyclables" or "Recyclable Materials" means those materials which are capable of being recycled and which would otherwise be processed or disposed of as Garbage Recyclables include those materials defined by the City, including newsprint (including inserts), mixed paper (including magazines, catalogs, envelopes, Junk mail, corrugated cardboard, brown bags and paper, paperboard, paper egg cartons, office ledger paper, and telephone books), glass containers, aluminum beverage containers, small scrap and cast aluminum (not exceeding forty (40) pounds in weight nor two (2) feet in any d1mens1on for any single item), steel including 'tin' cans, aerosol cans (empty, non-toxic products) and small scrap (not exceeding forty (40) pounds in weight nor two (2) feet in any d1mens1on for any single item), b1metal containers, #1-7 plastics regardless of form or mold (including but not limited to plastic containers, bottles, wide mouth tubs, plastic bags, film plastic, and polystyrene), aseptic containers, aluminum foil and pans, and those materials added by Contractor from time to time Recyclables includes Source Separated Blue Container Organic Waste 1 90 Recycling Rebate "Recycling Rebate" 1s defined in Section 3 1 3 Recycling Rebate 1 91 Refuse "Refuse" means all Solid Waste except Construction and Demolition Debris and Bulky Items 1 92 Renewable Natural Gas "Renewable Natural Gas" or "RNG" means gas derived from Organic Waste that has been diverted from a Landfill and Processed at an in-vessel d1gest1on facility that 1s permitted or otherwise authorized by 14 CCR to recover Organic Waste 1 93 Res1dent1al "Res1dent1al" refers to services performed at and for Res1dent1al Premises 17 of 123 B-27 1 94 Res1dent1al Premises "Res1dent1al Premises" means Premises upon which dwelling units exist, including, without lim1tat1on, Single Family and Mult1-Fam1ly Dwellings, apartments, boarding or rooming houses, condominiums, mobile homes, eff1c1ency apartments, and second units Notwithstanding any provIsIon to the contrary in this Agreement, in the Rancho Palos Verdes Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses are occurring shall not be deemed to be Res1dent1al Premises, and rather shall be deemed to be Commercial Premises Assisted Living Fac1lit1es, Convalescent Homes, Dormitories, Extended Stay Motels, Group Res1dent1al Fac1lit1es, Adult Res1dent1al Fac1lit1es, Group Care Fac1lit1es, Hotels,. Motels, time-shares, resorts, spas and any other businesses not spec1f1cally listed at which residency Is transient in nature and hence should be classified as Commercial Premises In the event a question ever arises as to whether a spec1f1c Premises meets the def1nit1on of Res1dent1al Premises, the City Manager shall determine whether that def1nit1on will apply, which determ1nat1on shall be final and binding on the Parties 1 95 Roll-off Box "Roll-off Box" means Solid Waste and Recyclables Collection Containers of 10-yards or larger 1 96 Route Review "Route Review" means a procedure in which ind1v1dual containers set out for collection along the Contractor's routes are visually or electronically inspected on a representative sample basis to determine the degree to which they are contaminated 1 97 Rubbish "Rubbish" means, without lim1tat1on, the following items waste and refuse capable of burning readily, including straw, packing materials, leather, rubber, clothing, bedding, books, rags and all s1m1lar articles which will burn by contact with flames or ordinary temperatures, and ashes, crockery, china, pottery, metal wire and other s1m1lar materials 1 98 SB 1383 "SB 1383" means Senate Bill 1383 of 2016 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 D1v1s1on 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 18 of 123 B-28 . 1 99 SB 1383 Regulations "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, D1v1s1on 7 and amended portions of regulations of 14 CCR and 27 CCR 1 100 Scavenging "Scavenging" means the unauthorized removal of Recyclables that have been set out for Collection 1 101 Scout Veh1cle{s) "Scout Veh1cle(s)" are defined in Section 4 2 8 Scout Vehicles 1 102 Self-hauler {or Self-haul) "Self-Hauler" or "Self-Haul" means a Person who hauls Solid Waste, Organic Waste, or recovered material they have generated to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66) Self-Hauler also includes a Person who Back-Hauls waste 1 103 Service Level "Service Level" means to the number and size of a Customer's Conta1ner(s) and the frequency of Collection service, as well as ancillary services such as lock/unlock service, Container push/pull service, etc 1 104 Seniors "Seniors" Is defined in Section 5 1 4 1 Senior Rate Reduction 1 105 Service Area 1 "Service Area 1" means all areas of the City outside of Service Area 2 1 106 Service Area 2 "Service Area 2" means that area of the City 1dent1f1ed in Exh1b1t 1 " 1 107 Single Family Dwelling "Single Family Dwelling" means a dwelling unit in a building containing two or fewer Res1dent1al dwelling units Single Family Dwelling units generally receive ind1v1dual Cart Refuse Collection service 19 of 123 B-29 1 108 Solid Waste "Solid Waste" means all putresc1ble and non-putresc1ble solid, semisolid wastes, including Garbage, trash, Refuse, paper, Rubbish, ashes, industrial wastes, Construction and Demolition Debris, discarded home appliances, Manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes that are permitted to be disposed of in a Class Ill Landfill 'Solid Waste' includes Recyclables, Organics, Green Waste, Construction and Demolition Debris, and Bulky Items Solid Waste does not include Hazardous Waste, or untreated medical waste 1 109 Solid Waste Facility "Solid Waste Facility" means a solid waste transfer or processing station, a composting facility, a gas1f1cat1on facility, a Transformation Facility, or a Disposal Site 1 110 Solid Waste Collection Service "Solid Waste Collection Services" means the Collection, Transportation, storage, Transfer, Processing, and Disposal of Solid Waste 1 111 Source Separated "Source Separated" means the segregation by the Waste Generator of Recyclables or Organics, which otherwise would become Solid Waste 1 112 Source Separated Blue Container Organics Waste (SSBCOW) "Source Separated Blue Container Organic Waste" or "SSBCOW" means Source Separated Organic Waste that can be placed in a Blue Container that 1s limited to the Collection of those Organic Wastes and Non-Organic Recyclables 1 113 Source Separated Green Container Organic Waste (SSGCOW) "Source Separated Green Container Organic Waste" or "SSGCOW" means Source Separated Organic Waste that can be placed in a Green Container that 1s spec1f1cally intended for the separate Collection of Organic Waste by the Waste Generator, excluding SSBCOW, carpets, Non-Compostable Paper, and textiles SSGCOW 1s a subset of Organic Waste 1 114 Split Bin "Split Bin" means a Bin that 1s split or d1v1ded into segregated sections, in which the material in each section 1s collected by separate vehicles 1 115 State "State" means the State of California 20 of 123 B-30 1 116 Term "Term" means the 1rnt1al Term of this Agreement together with any extension of the in1t1al Term as set forth in Section 2 4 1 117 Tier One Commercial Edible Food Generator '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 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 1 118 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 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 21 of 123 B-31 1 119 Transfer ''Transfer" means the act of transferring Solid Waste Collected by Contractor from Contractor's Collection vehicles into larger vehicles at a Transfer Facility for Transport to other Fac1lit1es for Processing or Disposing of such materials 1 120 Transfer Station "Transfer Station" means a Facility that received Solid Waste from collection vehicles and transfers the material to larger vehicles for transport to landfills and other destinations Transfer Stations may or may not also include MRFs, transferring residual, Refuse (Refuse left after the sorting of Recyclables) to landfills and Recyclables, including Organics and/or Construction and Demoht1on debris, to processors, brokers or end-users 1 121 Transformation "Transformation" means incineration, pyrolysis, d1st1llat1on, gas1f1cat1on, or biomass conversion other than composting 1 122 Transformation Facility "Transformation Facility" means a facility whose principal function 1s to convert, combust, or otherwise process solid waste by incineration, pyrolysis, d1st1llat1on, or b1olog1cal conversion other than composting A Transformation Facility does not include a composting facility or a biomass conversion facility 1 123 Transportation or Transport "Transportation" or "Transport" means the act of conveying Collected materials from one location to another 1 124 Universal Waste "Universal Waste" means any of the following waste that are cond1t1onally exempt from class1ficat1on as Hazardous Wastes pursuant to Title 22 of the California Code of Regulations (22 CCR), section 66261 9 (1) batteries as described m 22 CCR section 66273 2, (11) thermostats as described m 22 CCR section 66273 4, (111) lamps as described m 22 CCR section 66273 5, and (1v) cathode ray tube materials as described m 22 CCR section 66273 6 1 125 Waste Evaluation "Waste Evaluation" means a procedure m which representative samples of waste and recyclables are taken from vehicle loads and sorted at a permitted facility to determine the degree to which the material 1s contaminated 22 of 123 B-32 1 126 Waste Generator "Waste Generator" means any Person whose act or process produced Sohd Waste or Recyclables, or whose act first causes Sohd Waste or Recyclables to become subJect to regulation 1 127 Working Day "Working Day" means any day of the week except Saturday and Sunday and the following holidays New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksg1v1ng Day, or December twenty-fifth 23 of 123 B-33 2 GRANT AND ACCEPTANCE OF RIGHTS 2 1 Grant and Acceptance of Rights, Indemnity of Award SubJect to the terms and cond1t1ons of this Agreement (including but not limited to the exclusions set forth 1n Section 2 8 L1m1tat1ons to Scope and Applicable Laws, and to the rights of State, county and school district fac1lit1es, and other ent1t1es that are permitted pursuant to state law, to use a Solid Waste enterprise other than Contractor, City hereby grants to Contractor and Contractor hereby accepts from City, for the Term of this Agreement, the exclusive right and privilege to provide Solid Waste Collection Services at Res1dent1al Premises within the City City may grant collection agreements or permits or otherwise allow others to provide Solid Waste Collection Services to Res1dent1al Premises or provide services exempt from this Agreement per Section 2 8 L1m1tat1ons to Scope If there 1s a dispute as to whether the prov1s1on of a particular service to a particular customer 1s included under this Agreement, the City Manager will make the final determination, which determ1nat1on shall be final and binding on the Parties Contractor agrees to and shall timely take all actions that are reasonably necessary to defend the validity and enforceability of this Agreement and shall pay all costs related to such defense Contractor shall defend, indemnify, protect and hold harmless, the lndemnitees from any and all claims, actions or proceedings to attack, set aside, void, annul or seek monetary damages resulting from an approval by the City of this Agreement, provided, however, Contractor shall not be responsible for indemnifying the City for any monetary damages which are awarded as a result of, or arising from, the City's active negligence or gross misconduct The City shall promptly notify Contractor of any such claim, action, or proceeding The City and Contractor shall meet in good faith in an effort to come to a mutual agreement for a Joint defense, provided that the City shall be entitled to select legal counsel of its choice to conduct the defense 1f an agreement cannot be reached Contractor's obligations to pay all costs, defend, indemnify, protect and hold harmless under this section shall not be altered in the event City retains separate counsel 2 2 Enforcement of Exclus1v1ty City shall have the right to enforce the exclus1v1ty prov1s1ons of this Agreement 1f, in its absolute and sole d1scret1on, 1t chooses to do so, but shall have no obligation to do so for the benefit of Contractor or otherwise City add1t1onally shall have the right, but not the obligation, to request that Contractor enforce the exclus1v1ty prov1s1ons of this Agreement Contractor shall have an affirmative obligation to enforce such exclus1v1ty prov1s1ons when requested to do so by City If Contractor requests that City take adm1nistrat1ve, law enforcement, or other legal action to protect Contractor's exclusive rights, or otherwise enforce the exclus1v1ty of this Agreement (including the adoption of any resolution or ordinance intended to facilitate the enforcement of the exclusive rights granted in this Agreement), Contractor shall reimburse City for its all adm1nistrat1ve, law enforcement, or other legal costs and fees related to any such action 24 of 123 B-34 2 3 Effective Date, Start of Services This Agreement shall become effective on the Effective Date Start of service shall begin on April 1, 2022 ' 2 4 Term of Agreement The term of this Agreement shall start on April 1, 2022 and expire June 30, 2029 (the "Term") The Term may be extended by mutual agreement of the Parties for an add1t1onal five (5) year term beginning on July 1, 2029 2 5 Representations and Warranties of Contractor Contractor hereby covenants, represents, and warrants the following to City for the purpose of inducing City to enter into this Agreement and to consummate the transaction contemplated by this Agreement, all of which shall be true as of the Effective Date of this Agreement a)Contractor Is duly organized and validly exIstIng as a corporation under the laws of the State of California b)Contractor Is duly organized, validly existing and in good standing under Applicable Laws It Is qualified to transact business in the State of California and has the power to own its properties and to carry on its business as now owned and operated and as required by this Agreement c)Contractor has the authority to enter into and perform its obligations under this Agreement The Board of Directors or partners of Contractor (or the shareholders, 1f necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement The Persons signing this Agreement on behalf of Contractor have authority to do so d)Neither the execution of this Agreement nor the delivery by Contractor of services nor the performance by Contractor of its obligations hereunder (1) conflicts with, violates or results in a breach of any Applicable Law, (2) conflicts with, violates or results In a breach of any term or cond1t1on of any Judgment, decree, agreement (including, without lim1tat1on, the cert1f1cate of incorporation of Contractor) or instrument to which Contractor Is a party or by which Contractor or any of its properties or assets are bound, or constitutes a default under any such Judgment, decree, agreement or instrument, or (3) will result In the creation or ImposItIon of any encumbrance of any nature whatsoever upon any of the properties or assets of Contractor 25 of 123 B-35 e)There 1s no action, suit or other proceeding as of the date of this Agreement, at law or In equity, or to the best of Contractor's knowledge, any invest1gat1on, before or by any court or governmental authority, pending or threatened against Contractor which 1s likely to result 1n an unfavorable dec1s1on, ruling or finding which would materially and adversely affect the validity or enforceability of this Agreement or any such agreement or instrument entered into by Contractor in connection with the transactions contemplated hereby, or which could materially and adversely affect the ability of Contractor to perform its obligations hereunder or which would have a material adverse effect on the f1nanc1al cond1t1on of Contractor [This prov1s1on may be waived by the City } f)Contractor has no knowledge of any Applicable Law in effect as of the date of this Agreement that would proh1b1t the performance by Contractor of this Agreement and the transactions contemplated hereby g)Contractor has made an independent invest1gatIon, satisfactory to It, of the cond1t1ons and circumstances surrounding this Agreement and the work to be performed by 1t, and Is sat1sf1ed that those cond1t1ons and circumstances will not impair its ability to perform the work and provide the Collection services required by this Agreement h)The information supplied by Contractor in all subm1ttals made 1n connection with negot1at1on and execution of this Agreement, including but not limited to all 1nformat1on In Contractor's Proposal and all materials 1n Exh1b1ts to this Agreement, and all representations and warranties made by Contractor throughout this Agreement are true, accurate, correct and complete in all matenal respects on and as of the Effective Date of this Agreement 1)Contractor's Contractor Representative, designated in Section 2 7 2, shall have authority in all daily operational matters related to this Agreement City may rely upon action taken by such designated representative as action of Contractor unless the actions taken are not w1th1n the scope of this Agreement J)The landfills proposed by Contractor are properly permitted by the Regional Water Quality Control Board and CalRecycle, are class1f1ed as Class 3 landfills (permitted to receive municipal Solid Waste), comply with all Applicable Laws, are not on or being considered for inclusion on a state or federal Superfund list, or a CalRecycle list of Solid Waste fac11it1es failing to meet State minimum standards, 26 of 123 B-36 . and that they will in fact accept all Solid Waste Collected from within the City during the Term k)The Designated Recycling Facility Is properly permitted and in compliance with all Applicable Laws I)The Designated Organics Processing Facility Is properly permitted and Is in compliance with all Applicable Law m)No elected official, officer, agent or employee of the City has a financial interest, directly or indirectly, in this Agreement, the compensation to be paid under It and, further, no City employee who acts in the City as a "purchasing agent" as defined in the appropriate Section of California Statutes, nor any elected or appointed officer of the City, nor any spouse or child of such purchasing agent, employee or elected or appointed officer, Is a partner, officer, director or proprietor of the Contractor and, further, that no such City employee, purchasing agent, City elected or appointed officer, or the spouse or child of any of them, alone or in combination, has a material interest in the Contractor Material interest means direct or indirect ownership of more than five percent (5%) of the total assets or capital stock of the Contractor n)Contractor Is familiar with City's proh1b1t1on against acceptance of any gift by a City officer or designated employee Contractor shall not offer any City officer or designated employee any gifts proh1b1ted by the City 2 6 Cond1t1ons to Effectiveness of Agreement The sat1sfact1on of each and all of the cond1t1ons set out below, each of which may be waived in whole or in part by City in writing, Is a cond1t1on precedent to the effectiveness of this Agreement, and a cond1t1on of Contractor's continued right to the benefits conveyed in this Agreement a)Accuracy of Representations 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, and shall remain so during the Term of this Agreement b)Absence of L1t1gat1on There shall be no lit1gat1on 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 27 of 123 B-37 c)Furnishing of Insurance, Bond, and Letter of Credit Contractor shall have furnished evidence of the insurance, bonds and letter of credit required by Article 9, and shall comply with all ongoing requirements relating thereto d)Effectiveness of City Council Action City Council's approval of this Agreement shall have become effective pursuant to California law on or the Effective Date 2 7 Delegation of Authority ,2 7 1 City Representatives References in this Agreement to the "City" shall mean the City Council and all actions to be taken by City shall be taken by the City Council except where this Agreement expressly delegates the authority to the City Manager, 1n which case the action shall be taken by the City Manager, or his or her des1gnee The City Council may also delegate, in writing, add1t1onal authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees Contractor may rely upon actions taken by such delegates 1f they are within the scope of the authority so delegated to them 2 7 2 Contractor Representative Contractor shall, by the Effective Date, authorize and designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to this Agreement and who shall be responsible for working with City and/or City's designated representat1ve(s) to resolve Agreement-related issues ("Contractor Representative") Contractor shall include in the written des1gnat1on any lim1tat1ons upon the Contractor Representative's authority to bind Contractor City shall have the right to approve the Contractor's choice for Contractor Representative City shall be not1f1ed in advance of any change in Contractor Representative Contractor acknowledges and agrees that City may rely upon action taken by the Contractor Representative as actions of Contractor taken on behalf of and with the full approval of the Contractor unless the action 1s outside the scope of the authority delegated to him/her by Contractor as communicated in writing to City 2 8 L1m1tat1ons to Scope The exclusive franchise, right and privilege to provide Solid Waste Collection Services at Res1dent1al Premises within the City granted to Contractor by this Agreement spec1f1cally excludes the following services, which services may be provided by Persons other than Contractor and which may be the subJect of other permits, licenses, franchises or agreements issued or entered by City a)The sale or donation of Source Separated Recyclable Material by the Waste Generator to any Person or entity other than Contractor, provided, however, to the 28 of 123 B-38 extent permitted by law, 1f the Generator 1s required to pay monetary or non-monetary cons1derat1on for the Collection, transportation, transfer, or processing of Recyclable Material, the fact that the Generator receives a reduction or discount 1n price (or in other terms of the cons1derat1on the Generator 1s required to pay) shall not be considered a sale or donation, b)Solid Waste, including Organics and Bulky Items, and Recyclables which are removed from any Premises by the Waste Generator, and which 1s transported personally by such GeQerator (or by his or h�r full-time employees) ,to a processing or Disposal Facility in a manner consistent with all Applicable Laws and regulations, c)Green Waste removed from a Premises by a gardening, landscaping, or tree trimming contractor, utilizing its own equipment, as an incidental part of a total service offered by that contractor rather than as a hauling service, d)The Collection, Transfer, Transport, Recycling, Processing, and Disposal of animal waste and remains from slaughterhouse or butcher shops for use as tallow, e)The collection, transfer, transport, Recycling, processing, and disposal of by­ products of sewage treatment, including sludge, sludge ash, grit and screenings, f)The collection, transfer, transport, Recycling, processing, and disposal of Hazardous Substances, Hazardous Waste, Household Hazardous Waste and rad1oact1ve waste regardless of its source, g)Construction and Demolition Debris which 1s removed by a duly-licensed construction or demolition company or as part of a total service offered by that licensed company or by the City, where the licensed company utilizes its own equipment, h)Solid Waste generated on a Commercial Premises, 1)Temporary Bin and Roll-Off Box service (for material generated from temporary clean-up or Construction and Demolition proJects, not generated on an on-going basis by Residents), J)The Collection, transfer, transport, Recycling, processing, and Disposal of Solid Waste and Recyclables generated at City Facilities and City beaches or from 29 of 123 B-39 public works projects, or Collected from the public right's-of-way by City through City officers or employees in the normal course of their City employment, k)Solid Waste Collection Services for governmental agencies other than City, which may have fac11it1es in the City, but over which City has no jurisd1ct1on in connection with the regulation of Solid Waste, and, I)Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et seq , California Public Resources Code While the grant contained in this Agreement shall not be exclusive with respect to the above noted matters, Contractor shall still be obligated to provide those services which may be included in the above (including but not limited to Collection of Bulky Items, Collection of Organics, Collection of Recyclables, Collection of Solid Waste, and Collection at City Fac11it1es and other services pursuant to terms set forth in this Agreement The exclusive franchise, right and privilege to provide Solid Waste Collection Services within the City granted to Contractor by this Agreement shall be interpreted to be consistent with all Applicable Laws, and the scope of this Agreement shall be limited by all Applicable Laws In the event that future interpretations of current law, future enactments or developing legal trends limit the ability of City to lawfully grant Contractor the scope of services as spec1f1cally set forth In this Agreement, 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 2 9 City's Right to Direct Changes 2 91 General City may direct Contractor to perform add1t1onal Solid Waste Collection Services (including new D1vers1on 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, and different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes which City may direct Contractor acknowledges that State or City law may increase the D1vers1on requirement during the term of this agreement and Contractor agrees to propose services to meet such D1vers1on requirements Contractor shall be entitled to an adjustment In its Contractor Compensation for providing such add1t1onal or mod1f1ed services, including a profit factor equal to ten percent (10%) of the incremental cost of such add1t1onal or mod1f1ed services City may utilize cost components included in the Contractor's Proposal in calculating equitable rate adjustments If the City Manager and Contractor cannot agree on compensation for new or add1t1onal services, then City may contract with other parties 30 of 123 B-40 for such services, which shall be considered exempt from the exclus1v1ty prov1s1ons of Section 2 1 2 9 2 New D1vers1on Programs Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide add1t1onal or expanded D1vers1on services The proposal shall contain a complete descnpt1on of the following •Collection methodology to be employed (equipment, manpower, etc ) •Equipment to be utilized (vehicle number, types, capacity, age, etc ) •Labor requirements (number of employees by class1f1cat1on) •Type(s) of Containers to be utilized •Type(s) of material to be Collected •Prov1s1on for program public1ty/educat1on/marketing •Three-year pr0Ject1on of the financial results of the program's operations in an operating statement format including documentation of the key assumptions underiy1ng the pr0Ject1ons and the support for those as�urnpt1ons •The added cost for providing such add1t1onal or expanded D1vers1on services •The proJected increase in the City's' D1vers1on rate 2 10 Ownership of Sohd Waste City and Contractor understand and agree that 1t 1s 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 Solid Waste Collected by Contractor in City Rather, the Parties intend that whatever, 1f any, title in and to the Solid Waste that 1s Collected by Contractor which otherwise might exist in or with City in the absence of this Agreement 1s hereby transferred to Contractor, and further that 1f Contractor gains title to such Solid Waste 1t 1s by operation of law and agreement with its Customers and 1s not the result of this Agreement At no time does City obtain any nght of ownership or possession of Solid Waste placed for Collection, and nothing in this Agreement shall be construed as giving nse to any inference that City has any such nghts City and Contractor agree that, for the purposes of the Uniform Commercial Code and all other laws imposing liability for defective products, 1t 1s Contractor, and not City which 1s to be considered the merchant 31 of 123 B-41 of goods recycled pursuant to this Agreement SubJect to the provIsIons of this Agreement, and unless City exercises its rights to direct the location for Disposal and processing of Solid Waste, Contractor shall have the right to retain, Recycle, process, dispose of, and otherwise use Solid Waste Collected pursuant to the terms of this Agreement In any lawful fashion or for any lawful purpose, and, further, shall have the right to retain any benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste which It Collects Ownership of Solid Waste shall transfer to Contractor when Customer places It at point of Collection 2 11 Permits and Licenses ' ' Contractor shall acquire and maintain, at its own expense, all permits and licenses required by Applicable Law for the Collecting, transporting, processing, and storing of Solid Waste, disposing of Solid Waste, and the Recycling and Processing of Recyclables and Organics, and maintain same In full force and effect throughout the Term Contractor shall provide proof of such permits, licenses or approvals and shall demonstrate compliance with the terms and cond1t1ons of such permits, licenses and approvals upon the request of the City Manager, or his or her des1gnee Failure to maintain all required permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11 2 Contractor must follow requirements of the Rancho Palos Verdes Municipal Code 2 12 Contractor Name Contractor name may not include "Rancho Palos Verdes" or any other language indicating that the Contractor Is a d1v1s1on of, or otherwise connected to, City 2 13 Coordmat1on with Other Jurisd1ct1ons In the event that Contractor were to be awarded a s1m1lar franchise agreement with another Jurisd1ct1on on the Palos Verdes Peninsula, or 1f the City had the opportunity to coordinate the services under this Agreement, or non-exclusive Commercial services, with another Jurisd1ct1on on the Palos Verdes Peninsula, Contractor shall act in good faith to 1dent1fy and realize efflc1enc1es and or economies of scale to reduce costs, or✓slow the growth of operating costs 2 14 Good Faith Negot1at1ons for Exclusive Commercial Service Parties understand the following •Contractor, and other solid waste enterprises, provide Solid Waste Collection Services to Commercial Premises in the City pursuant to separate non-exclusive franchise agreements with the City •Contractor, and the other solid waste enterprises, have been lawfully providing Solid Waste Collection Services for more than three previous years 32 of 123 B-42 •Pursuant to Public Resource Code 49520, Contractor, and the other solid waste enterprises, possess statutory rights to continue providing service for up to five (5) years after mailed not1f1cat1on to the solid waste enterprise(s) by the City that exclusive solid waste handling services are to be provided •On or about February 1, 2022, City not1f1ed Contractor, and other solid waste enterprises, that the City intended to authorize exclusive solid waste services for Commercial Premises on or about February 1, 2027 Based on the above understandings, Parties agree that prior to February 2025, Contractor and City shall enter into good faith negot1at1ons to amend the scope and terms of this Agreement to enable Contractor to provide exclusive Solid Waste Collection Services to Commercial Premises in the City Contractor's right to provide exclusive Solid Waste Collection Services to Commercial Premises in the City would start on or about February 1, 2027 33 of 123 B-43 3 Fees Paid to the City As part of its cons1derat1on for entering into this Agreement, and for the exclusive franchise, right and privilege to provide Solid Waste Collection Services as spec1f1ed in this Agreement, Contractor shall pay the fees spec1f1ed in this Article 3 3 1 Other City Fees 3 1 1 Collector Fee In cons1derat1on of t�e exclusive right to Collept provided in Section 2 1,of this Agreement, throughout the Term, Contractor shall continue to pay to City the Collector Fee For the twelve months ending June 30, 2022, the Collector Fee Is six hundred forty-eight thousand one hundred nineteen dollars ($648, 119) The Collector Fee shall adjust at the same rate that the Customer rates are adjusted pursuant to Article 6 Rate adjustments effective each July 1 will apply to the Collector Fee as of the following September 30 quarterly payment Contractor shall pay the Collector Fee quarterly The quarterly Collector Fee payment to the City Is due on September 30, December 30, March 30 and June 30 of each year If payment Is not received by the City by the due date, Contractor shall pay to City a penalty in an amount equal to ten percent (10%) of the amount owing for that quarter, plus interest at a rate of one and one-half (1 5%) per month 3 1 2 Environmental Programs Fee To support City's environmental efforts, throughout the Term, Contractor shall continue to pay to City an Environmental Programs Fee For the twelve months ending June 30, 2022, the Environmental Programs Fee Is one hundred sixty-three thousand six hundred e1ghty-e1ght dollars ($163,688) The Environmental Programs Fee shall adjust at the same rate that the Customer rates are adjusted per Article 6 Rate adjustments effective each July 1 will apply as of the following September 30 quarterly payment Contractor shall pay the Environmental Programs Fee quarterly The quarterly Environmental Programs Fee payment to City Is due on September 30, December 30, March 30 and June 30 of each fiscal year If payment Is not received by the City by the due date, Contractor shall pay to City a penalty In an amount equal to ten percent (10%) of the amount owing for that quarter, plus interest at a rate of one and one-half (1 5%) per month 3 1 3 Recycling Rebate Contractor shall rebate to Customers a Recycling Rebate equal to one dollar and f1fty­ e1ght cents ($1 58) per month in Area 1, and one dollar and thirty-one cents ($1 31) per month in Area 2, for each Single-family and Mult1-fam1ly Dwelling Unit This Recycling Rebate Is intended to reimburse ratepayers for the revenue Contractor receives in California Refund Value (CRV) funds ("Recycling Rebate") Actual CRV funds received 34 of 123 B-44 by Contractor may be higher or lower, adjUStments to this Recycling Rebate will not be made based upon actual CRV value received by Contractor This Recycling Rebate will be fixed, unless and until the CRV rate for all beverages under 24 oz Is adjusted The $70,000 per quarter amount will adjust by the same percentage change as the rate for the all beverages under 24 oz , which Is $0 05 per container as of the execution of this Agreement Adjustments will be prorated for any period between the date the new CRV rate becomes effective and the next scheduled payment date An increase in this Recycling Rebate does not result in an increase in Customer rates The quarterly Recycling Rebate payment to City Is due on September 30, December 30, March 30 and June 30 of each fiscal year If payment Is not received by the City by the due date, Contractor shall pay to City a penalty In an amount equal to ten percent (10%) of the amount owing for that quarter, plus interest at a rate of one and one-half (1 5%) per month 3 2 Future Fees In the event that City implements a new fee to be paid by the Contractor, Contractor shall be entitled to a rate adjustment in an amount sufficient to recover the fee from Customers City may elect to have Contractor pay in accordance with terms under Section 3 1, or on another schedule as City 1dent1f1es City may set deadlines and late fees, and add1t1onal fees would be subject to audit 35 of 123 B-45 4 Direct Services 41 General 4 1 1 High Quality Collection Service The work to be done by Contractor pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, superv1s1on, equipment, materials, supplies, and all other items necessary to perform the services required The enumeration of, and spec1f1cat1on of requirements for, particular items of labor or equipment shall not relieve Contractor of the quty to furnish all other items, as may be required, �hether enumerated elsewhere in this Agreement or not The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that all Customers are provided reliable, courteous and high-quality Solid Waste Collection Services 4 1 2 Summary of Terms Here 1s a summary of terms that are used in this Section 'Refuse' includes Garbage, Rubbish, and mixed waste, essentially, trash 'Refuse' 1s synonymous with Gray Container Waste 'Refuse' 1s collected in Gray Carts 'Recyclables' include non-organic recyclable material such as bottles, cans, and plastic 'Recyclables' also includes dry organic recyclable material such as paper and cardboard Recyclables set aside for collection are also known as Source Separated Blue Container Organic Waste (SSBCOW) Recyclables are collected in Blue Carts 'Greenwaste' includes grass, leaves, and yard trimmings 'Food Waste' includes Food Scraps and Food Soiled Paper 'Organics' includes both Greenwaste and Food Waste Organics set aside for collection are also known as Source Separated Green Container Organic Waste (SSGCOW) Organics are collected in Green Carts Only Greenwaste properly bundled may be placed outside the Green Carts for collection Although the def1nit1on of Food Waste in the SB 1383 Regulations includes Compostable Plastics, those are not allowed in the Green Container because they do not decompose as advertised 4 1 3 Service Areas 1 and 2 The City 1s organized into two service areas, Service Area 1 and Service Area 2 The boundaries of Service Area 2 are shown in Exh1b1t 1 Service Area 1 includes all other areas of the City outside of Service Area 2 Exh1b1t 1 shows that Service Area 2 1s further subd1v1ded into Areas A, B, C, and D Areas A and B in Service Area 2 receive automated Cart Collection service as described below in Sections 4 2 1, 4 3 1, and 4 4 1 Areas C and D 1n Service Area 2 receive unlimited backyard collection service as described further below in Sections 4 16, 4 18, and 4 19 36 of 123 B-46 4 2 Refuse 4 2 1 Cart Refuse Collection Contractor shall provide all Customers at Single Family Dwellings and Mult1-Fam1ly Dwellings without Bin Service, with one Gray Cart"", and shall Collect all Refuse placed therein for Collection not less than once per week If there Is a dispute between a Customer and Contractor as to whether Cart or Bin service shall be provided, the City Manager will make the final determination, which determination shall be final and binding on Contractor and Customer Cart Customers shall be instructed to place the Cart(s) in the street gutter for Collection, unless the Customer receives Backyard Service or flag lot service However, Contractor shall relocate Carts for Collection when necessary, and return them to their original posItIon Cart Customers that regularly require more than one Gray Cart may request add1t1onal Gray Carts for an add1t1onal charge per Cart per month in accordance with the Rate Schedule Customers may select a 35, 64 or 96-gallon cart The 64-gallon cart shall be the default in the event that a size Is not selected Mult1-Fam1ly Customers receiving Gray Cart service are entitled to the same services as Single Family Cart Customers and shall pay the same rates Contractor shall provide curbside collection service, in accordance with this Section 4 2 1 in the areas depicted as Area A and Area B in Service Area 2 shown in Exh1b1t 1 4 2 2 Gray Cart Overage Cart Customers may periodically generate more Refuse than will fit in the Gray Cart(s) Cart Customers are therefore entitled to two pickups per calendar year of material that does not fit in the Gray Cart(s) at no add1t1onal cost, so long as such material Is placed beside Customer's Gray Cart One pickup shall consist of up to the equivalent of three (3) large bags, boxes or barrels of Refuse Contractor shall Collect all Refuse put out for Collection, in add1t1on to the foregoing two (2) pickups to be provided at no charge Cart Customers may be charged per pickup in accordance with the approved Rate Schedule for overage pickups above two (2) per year In add1t1on to the two (2) no-charge pickups, Contractor shall Collect all add1t1onal Refuse placed out for Collection in the Cart Customer's own Containers (bags, barrels, etc ) at no add1t1onal charge during the period beginning December 26 through the end of the holiday tree Collection period (see Section 4 4 4) This service Is limited to Refuse that could otherwise be placed in the Gray Cart, and not Bulky Items, which are Collected in accordance with Section 4 2 13 To help facilitate Contractor record keeping, Contractor may request in public education materials that Customer call in Cart overages, but will Collect an overage whether or not It was called in Customers shall not be expected to call in from December 26 through January 15, the holiday tree Collection period 37 of 123 B-47 . 4 2 3 Backyard Service "Backyard Service" means the Contractor removes all Collection Carts, Green Waste bundles and Gray Cart Overages per Section 4 2 2 from a Cart Customer's designated Collection location other than curbside, such as backyard, side yard, or driveway, for Collection, and returns Carts and other containers when Collection 1s complete Customer may request backyard service and Contractor may charge customers requesting Backyard Service in accordance with the Rate Schedule, unless the Customer falls under the exception for disabled customers described below in Section 4 2 4 4 2 4 Backyard Service for the Disabled Contractor shall provide disabled Cart Customers with Backyard Service at no add1t1onal charge Contractor will remove Refuse, Recyclables and Organics and Green Waste bundles from Customer's outdoor storage area, place them out for Collection, and return Containers to Customer's outdoor storage area after Collection, ensuring that all doors or gates are closed securely Contractor shall not enter garages In order to qualify as disabled under this section, Customers must demonstrate to Contractor that they have been issued a handicap placard from the Department of Motor Vehicles, and received written conf1rmat1on from a medical doctor that the Customer 1s physically unable to reasonably wheel Carts to and from the curb Doctor's letter should include the duration of this d1sab11ity and Contractor may limit no-charge Backyard Service to this time period Walk-out service need not be provided 1f an able-bodied adult resides with the disabled Customer Contractor may require annual conf1rmat1on that the d1sab11ity continues and that no able-bodied ind1v1dual resides at the premises 4 2 5 Flag Lot Service The City includes Res1dent1al Premises located somewhat behind other Res1dent1al Premises (typically at cul-de-sacs), resulting in multiple driveways and limited curb space at the street where Carts would typically be placed for Collection Such lot placements are referred to as "flag lots " Where such limited curb space makes curbside placement of all Carts 1mpract1cal, Residents shall be permitted to line Carts up perpendicularly alongside their driveways, as close to the curb as 1s reasonable for Collection This arrangement will usually require Collection Vehicle drivers to leave their vehicles to pos1t1on Carts for Collection and return them to alongside the driveway Contractor will not be permitted to charge an add1t1onal fee for this add1t1onal effort 4 2 6 Bm Refuse Collection Contractor shall provide Bin Refuse Service to Res1dent1al Customers that do not receive Cart Refuse service Contractor shall Collect and remove all Refuse that 1s placed 1n Bins from the property of Customers receiving Bin Service, at least as frequently as required per the Rancho Palos Verdes Municipal Code and more frequently 1f required to handle the waste generated at the Premises where the Bins are located The size of Bins may be determined by mutual agreement between Customer and Contractor, provided, however, 38 of 123 B-48 the City Manager shall make the final determination as to the number and size of Bins, and frequency of Collection to be provided to Bin Customers Special cons1derat1on shall be given when determining the pickup areas to ensure that the flow of traffic 1s not impeded Contractor shall provide two, three, four and six cubic yard Bins upon request Contractor will service Bins equipped with compaction devices or "compactors" that attach to the Bins The sale, lease or prov1s1on of the compaction device itself 1s outside this Agreement 4 2 7 Overflowing Containers . . . Customers that regularly produce more Refuse than their current level of service can accommodate, may have their service level increased in accordance with the following procedure First Incident in Three Month Period -If more material 1s placed for Collection than fits in a Bin or Cart (unless Collection of the overage has been properly arranged under Section 4 2 2), Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and B1ll1ng addresses, 1f different) the picture and a letter instructing that subsequent instances of overflowing Container may result in a charge, and possibly in an increase in the level of service Second Incident in Three Month Period -Upon the second event of an overfilled Bin or Cart (unless Collection of the overage has been properly arranged under Section 4 2 2) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and Billing addresses, 1f different) the picture and a letter instructing that a third incident in that same three month period may result in an increase in the level of service For Bin Customers, 1f the Bin overflowed sufficiently to require the driver to leave the Collection Vehicle to clean around the Bin, Contractor may charge the Bin Overage Clean-up Fee in the Rate Schedule For Cart Customers, 1f Refuse was left beside the Cart for Collection other than as permitted under Section 4 2 2, Contractor may charge the Cart Overage Clean-up Fee in the Rate Schedule Third Incident in Three Month Period -Upon the third event of an overfilled Bin or Cart (unless Collection of the overage has been properly arranged under Section 4 2 2) in a three-month period, Contractor shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer (at both the service and Billing addresses, 1f different) the picture and a letter requesting that Customer increase its service level If the Customer declines, Contractor may pet1t1on City to permit Contractor to increase the service level to accommodate the higher demand for service, the City Manager shall make the final determination of whether to implement such an increase, which determination shall be final and binding If the Bin overflowed sufficiently to require the driver to leave the Collection Vehicle to clean around the Bin, Contractor may charge the Bin Overage Clean-up Fee in the Rate Schedule If Refuse was left beside the Cart for Collection other than as permitted under Section 4 2 2, Contractor may charge the Cart Overage Clean-up Fee in the Rate Schedule 39 of 123 B-49 4 2 8 Scout Vehicles Scout Vehicles are defined as vehicles that transport a Solid Waste Bin to and from the point of Collection to provide access by a Collection Vehicle Scout Vehicle service may be charged for in accordance with the Rate Schedule Any disputes between the Contractor and the Customer as to whether Scout Vehicle service will be used will be determined by the City Manager, which determination shall be final and binding Contractor shall make best efforts to m1nim1ze the amount of time Bins are staged on the street for Collection before being returned to their storage locations ' 4 2 9 Bm Push-out Service Contractor may charge a fee for push-out service in accordance with the Rate Schedule 1f the driver must move a Bin a over 35 feet from Customer's storage location to where the Bin must be pos1t1oned for Collection (without the use of Scout Vehicles) Any disputes between the Contractor and the Customer as to whether the Bin push-out service fee applies will be determined by the City Manager, which determ1nat1on shall be final and binding 4 2 10 Pup Route Service Cart Customers with difficult to access Collection locations shall receive service using small Collection Vehicles, or pup trucks These small vehicles will be used for curbside and back yard services for Refuse, Recyclables and Organics Collection Contractor may charge pup truck customers in accordance with pup truck rates in the Rate Schedule Customers receiving pup truck service 1mmed1ately pnor to the start of service under this Agreement will continue to receive this service Customers may request pup route service and Contractor must receive written approval from the City Manager prior to adding any Customer to, or removing any Customer from, the pup route The City Manager's dec1s1on shall be final and binding as to which Customers will or will not receive this service Customers receiving pup truck service and backyard service shall be charged the approved fees for each of these services 4 2 11 Locking Bms Contractor shall provide locking Bin Service (providing the hasp and lock and serv1c1ng the lock) to Customers that request such service in accordance with the Rate Schedule The approved fee may be charged for each locked Bin, based upon the number of scheduled pickups per week 4 2 12 Return Trip Fee Contractor may charge a fee, per the Rate Schedule, in the event that Contractor arrives on time for a scheduled Collection of Bins, 1s impeded from Collection due to Container being blocked or otherwise unable to be Collected due to factors within the Customer's control, and Contractor must return a second time for Collection Charge may be assessed for the trip, not per Bin, in the event of a Customer with multiple Bins 40 of 123 B-50 4 2 13 On-Call Bulky Item Pickup Contractor shall provide Bulky Item pickup service to all Single Family Dwelling and Mult1- Fam1ly Dwelling Customers Each Res1dent1al dwelling unit, including Bin and Cart Customer Dwelling Units, shall be entitled to three (3) Bulky Item pickups per calendar year at no add1t1onal charge Customers may put out up to four (4) Bulky Items at each pickup Pickup location will be curbside for both backyard and curbside Cart Collection Customers (no Bulky Item pickups from backyards), and by the Refuse Bin for Bin Customers Mult1-Fam1ly •complexes may arrange with Contractor for a ,complex-wide Bulky Item pickup day An item may be a piece of furniture, appliance, bag, box, or bed Contractor may instruct Customers to provide Contractor with a minimum of two Working Days' notice for the items that shall be Collected on the Customer's regular Collection day Contractor shall Collect all Bulky Items as defined in Section 1 14 including Electronic Waste The following prov1s1ons shall apply to this program •No single item that cannot be handled by two workers will be accepted •The following items will not be picked up Hazardous Substances, Hazardous Waste, including waste 011 or anti-freeze (For the purposes of this section, universal wastes such as fluorescent bulbs, household batteries, and Electronic Waste are not considered hazardous and will be Collected by and disposed of in accordance with this Section as well as Sections 4 2 14 and 4 2 17 by Contractor ) •Contractor shall record by type and weight (1n tons) the Solid Waste Collected from Bulky Item pickups Contractor shall record the kinds and weights (in tons) of Solid Waste diverted, 1f any, from the landfill through Recycling, reuse, Transformation or other means of D1vers1on Customers that exceed the number of no-charge pickups per dwelling unit may receive Bulky Item Collection under the same terms for a fee, in accordance with the Rate Schedule 4 2 14 Bulky Item D1vers1on Bulky Items Collected by Contractor in accordance with Section 4 2 13, or otherwise Collected under this Agreement, may not be landfilled or disposed of until the following hierarchy of D1vers1on efforts has been followed by Contractor 1 ) Reuse as 1s 2)Disassemble for reuse or Recycling 41 of 123 B-51 3)Recycle 4)Disposal This hierarchy Is intended to preclude the use of front or rear loading packer vehicles for Bulky Items unless either the compaction mechanism Is not used to compact the Bulky Items, or unless they have been designated for Disposal 4 2 15 Household Hazardous Waste Events Contractor shall educate Customers regarding local County Household Hazardous Waste Events In the event the County ceases to hold these events at its current local location,' Contractor shall work with City to 1dent1fy an alternative site upon which HHW events may be held The City may request that Contractor conduct an event no more than one time per calendar year for an add1t1onal cost 4 2 16 Used 011 and Used 011 Filter Collection Contractor shall Collect and Recycle used 011 and used 011 filters left curbside by Gray Carts on Collection day Contractor may instruct Customers to call-in for this service at least 24-hours in advance, but Contractor shall Collect used 011 and used 011 filters left for Collection whether or not a call-in was placed Contractor shall provide used 011 Recycling containers to Customers that request them Upon Collection of used 011, Contractor shall leave an empty Container Contractor shall include in its public education materials the availability of this program and the free used 011 Containers, and how to properly place the 011 and filters for Collection 4 2 17 Disposal of Electronic Waste and Other Special Wastes Contractor shall divert waste requiring special handling, such as Electronic Waste Collected in accordance with Sections 4 2 13, 4 2 15, 4 2 16, 4 5 2, 4 5 6, or by other means under this Agreement, by taking these goods to a properly permitted Facility, and not by landfilling Contractor may encourage Customers through public education materials to bring small items requiring special handling, such as fluorescent bulbs or batteries, to a local HHW drop-off location, but will properly process such material received through the provIsIon of services under this Agreement at no add1t1onal charge 4 2 18 Household Battery and Florescent Light Bulb Drop-Off Contractor shall provide two Containers for household batteries and two Containers for florescent light bulbs at City facilities as public drop-off sites Contractor shall be responsible for transporting full Containers to a properly permitted facility and replacing the Collection Containers Contractor shall pay for proper processing and disposal Contractor shall promote these sites in its newsletters, Billing inserts, and on its website Service under this section shall be provided by Contractor at no add1t1onal charge 42 of 123 B-52 . 4 2 19 Household Sharps Waste Disposal Program Contractor shall implement and administer during the Term of this Agreement a Household Sharps Waste Disposal Program Under this program, residents will contact Contractor, via Contractor's website or customer service center, and request a Household Sharps container Within seven calendar days.of request, Contractor shall mail or deliver Household Sharps container with pre-paid return postage to the resident Resident will fill the container with Household Sharps material, and small quant1t1es of acceptable medical waste, and mail 1t back to the designated vendor for proper treatment and disposal Contractor shall incorporate the Household Sharps Waste disposal program into its public education program Contractor shall provide up to two hundred fifty (250) Household Sharps containers each calendar year at no add1t1onal charge For any Household Sharps containers that exceed two hundred fifty (250) in a calendar year, Contractor may charge a fee of twenty-five dollars ($25 00) per container The charge for excess Household Sharps containers shall increase at the same rate per year as the annual calculated collection rate increase determined by Section 6 3 4 2 20 Optional Household Hazardous Waste Programs City may, but 1s not required to, implement any or all of the following options at any time during the Agreement Term Ava1lab1hty of these options does not preclude the City from using alternative programs 42201 Optional Door-to-Door HHW Collection City has the option at any time under this Agreement to direct Contractor to 1nit1ate a door­ to-door collection program for electronic waste, universal wastes, Sharps and other pharmaceuticals Contractor would be t.orrpcnsated at the rate of $0 50 per month per Res1dent1al Customer for the first Rate Year This rate shall increase at the same rate per year as the annual calculated collection rate increase determined by Section 6 3 Items to be Collected would include •Florescent bulbs •Household battenes •Household items containing mercury, such as thermometers and thermostats •Telev1s1ons, computer monitors, portable computers, •Small appliances, such as printers, scanners and other small desktop machines •Cell phones and other small electrical devices 43 of 123 B-53 •Microwave ovens, hair dryers and other small kitchen and grooming appliances •Sharps and non-controlled pharmaceuticals This program, 1f implemented, will•, be in add1t1onal to, and not replace, other services under this Agreement, such as no-charge bulky item collection of electronic and other wastes 4 2 20 2 Optional Pharn;,aceut1cal Drop Box Co,llect1on City has the option at any time under this Agreement to direct Contractor to place a pharmaceutical collection drop box at a City facility for the collection of all non-controlled medicines, including liquids and bottles in original packing Items would be accepted from City Residents, not items from medical professionals that obtained such items In the course of business The cost for this service Is $275 00 per month per 24-gallon Container per month Add1t1onal medicines Collected above 24-gallons shall be charged at $4 50 per pound Alternatively, the City may elect to pass this cost directly through Billings at $0 1 O per home per month These rates would be applicable during the first Rate Year, shall increase at the same rate per year as the annual calculated collection rate increase determined by Section 6 3 4 3 Recycling 4 3 1 Recyclables Collection for Cart Refuse Customers Contractor shall Collect all Recyclables from Single-family Res1dent1al Customers at no add1t1onal cost Contractor shall provide all Customers receiving Cart Refuse Collection, and one-unit homes with Bin service, with a Blue Cart for Collection of Recyclables'"', and shall Collect all Recyclables placed therein for Collection not less than once per week Contractor shall Collect Recyclable Material placed in Blue Carts for Collection from each Customer on the same day as Customers' Gray Cart Is Collected Cart Customers shall be instructed to place the Blue Cart(s) in the street gutter for Collection, unless the Customer receives Backyard Service or flag lot service Contractor shall relocate Carts for Collection when necessary, and return them to their original posItIon Contractor shall have a Recycling program whereby It, at a minimum, Collects newspaper, mixed paper (phone books, magazines, computer paper, Junk mail, and paper bags), cardboard, glass bottles and Jars, aluminum cans, plastic containers, tin/steel cans and any add1t1onal materials that can be recovered at the Designated Recycling Facility used by Contractor Contractor will update public education materials accordingly as new items are added to those recovered by the Designated Recycling Facility Customers that regularly require more than one Blue Cart may request add1t1onal Blue Carts for Recyclables Collection at no add1t1onal charge 44 of 123 B-54 Customers may select a 35, 64, or 96-gallon cart The 96-gallon cart shall be the default in the event that a size Is not selected 4 3 2 Recyclables Collection from Bm Refuse Customers Contractor agrees to provide, at no add1t1onal charge, unlimited Recyclables Collection service to Bin Customers without a waiver approved by the City Contractor may purchase Recyclables from its Customers The Contractor agrees to provide Recycling Bins and/or Blue Carts to such Customers in suff1c1ent quantItIes to meet the Recycling needs of each Customer Recyclables Collection programs shall be made available at a minimum for the same materials as included above in Section 4 3 1 4 3 3 Add1t1onal Recyclables Programs In add1t1on to the materials included above in Section 4 3 1, Contractor agrees to make programs available for all other Recyclables for which It has established markets The Contractor shall notify all Customers of the availability of free Recyclables Collection programs via a mailed notice at least once per year for the remainder of the Agreement 4 3 4 Warning Notice Contractor shall place a red tag or other warning notice approved by the City on all Blue Carts and Green Carts that are contaminated, indicating to the Customer why the Cart was not Collected, and providing Contractor's phone number For Bin Customers, or Cart Customers with off-site management such as small apartment bu1ld1ngs, Contractor shall also mail a copy of the warning to the Customer's Billing address The warning notice shall be affixed prominently onto the Container to ensure that It Is not inadvertently removed due to weather cond1t1ons The warning notice must be protected from ram, 1f precIpItatIon Is present or forecasted, by placing It in a clear plastic bag prior to affixing to Container The warning notice shall be at least two inches by six inches (2" x 6") in size The warning notice must 1dent1fy the steps the Waste Generator must take to restart Collection service Contractor shall document warning notices, recording the date and time of issuance, address of service recIpIent, reason for issuance, name of employee who issued the notice, and truck and route numbers Contractor shall notify City on a monthly basis of any warning notices issued pursuant to this section, and shall provide copies of such warnings to City upon request With prior written City authorization, Contractor may remove Containers from habitual contaminators that have received a total of three warnings on either or both Carts in any six-month period Blue and Green Carts will be returned only after six months, or upon direction of the City, or 1f there Is a change of occupancy Recycling and Organics Containers for Bin Customers will be returned upon written d1rect1on of the City, or 1f there Is a change of occupancy 45 of 123 B-55 4 3 5 Marketing and Sale of Recyclables Contractor shall be responsible for marketing and sale of all Recyclables Collected pursuant to this Agreement Subject to the requirement in Section 3 1 3 to rebate to Customers the Recycling Rebate, Contractor may retain revenue from the sale of Recyclables, and shall report the amount of such revenues to City upon request, with actual CRV revenue separately reported to permit City to track Customer part1c1pat1on in Recycling programs 4 3 6 Minimum Recycling Requirements o a a o Contractor shall divert from landf1ll1ng a minimum of 50% of all Sohd Waste 1t Collects under this Agreement Compliance will be measured on a calendar year basis Solid Waste Collected shall only be considered to have been Recycled or diverted as required under this Agreement 1f 1t 1s deemed to be D1vers1on by CalRecycle in connection with efforts to meet City's D1vers1on goals Contractor shall provide documentation to the City within 30 days of the end of each calendar year stating and supporting that calendar year's D1vers1on rate D1vers1on from sources other than Contractor's Collection and D1vers1on efforts (such as source reduction, reuse, or Recyclables diverted by Solid Waste enterprises, Collection of materials that are not the subject of this Agreement, or the efforts of self-haulers) 1s not be counted as D1vers1on achieved by Contractor If these D1vers1on requirements are not met, City may instruct Contractor to in1t1ate new programs at Contractor's expense for this goal to be met on a consistent basis 4 3 7 Collection and Delivery of Recyclables All loads of Recyclables shall be taken to the Designated Recycling Facility for material recovery Under no circumstances shall such loads be delivered for landfilling, even temporarily Recyclables properly set out for Collection (excluding contaminated loads that have been red-tagged and recorded) shall only be Collected 1n vehicles on dedicated Recycling routes bound for Fac1lit1es capable of Recycling Recyclables Emptying Containers of Recyclables that have been properly set out into a Refuse Collection vehicle load 1s proh1b1ted 4 4 Organics Collection Program 4 4 1 Organics Collection for Single-Family Customers Contractor shall provide all Single-family Customers receiving Cart Collection Service with a Green Cart for Collection of Organics, including Food Scraps, and Food Soiled Paper, but not including Compostable Plastics Contractor shall Collect all Organics from Single-family Res1dent1al Customers at no add1t1onal cost Contractor shall Collect all Source Separated Green Container Organics 46 of 123 B-56 ' Waste placed in Green Carts, as well as unlimited Green Waste tied and bundled as set forth below, and put out for Collection by Customers not less than once per week on the same day as Refuse Collection S1ngle-fam1ly Customers shall be instructed to place the Green Cart(s) in the street or gutter for Collection, unless the Customer receives Backyard Service or flag lot service Contractor shall relocate Green Carts for Collection when necessary Contractor shall return Green Carts to their original posItIon after Collection Contractor shall have an Organics Recycling program whereby It, at a minimum, Collects the types of Organics defined in Section 1 78 Contractor shall only be obligated to Collect Green Waste set out for Collection in bundles 1f It Is tied and bundled and placed beside Green Cart(s) Contractor shall not be required to Collect bundles that are greater than four (4)feet long and more than eighteen (18) inches In diameter Contractor may request Customer to call in unusually large Green Waste loads or bundled Green Waste In advance, and shall promote brush clearing in accordance per Section 4 4 5, but will Collect all material properly set out for Collection The Collection of Green Waste bundles under this Section Is not considered a Bu lky Item pickup Customers may request two add1t1onal Green Carts at no add1t1onal charge Residents with Carts beyond three per dwelling unit may be charged in accordance with the Rate Schedule Customers may select a 35 or 96-gallon cart The 96-gallon cart shall be the default in the event that a size Is not selected 4 4 2 Kitchen Caddies Upon Customer request, Contractor shall provide each Single-family and Mult1-fam1ly Customer that receives Green Cart Collection Service with one (1) a food waste receptacle (kitchen caddy) that Customers can use for in-home storage of Food Scraps and Food Soiled Paper Kitchen cad1es shall be approximately one and one half (1 5) gallons with a hinged and t1ght-f1tting lid Contractor shall deliver food waste receptacles within five (5) days of Customer request The manufacture, model, color, and labeling of kitchen caddies shall be subJect to the approval of the City 4 4 3 Organics Collection for Mult1-fam1ly Customers Contractor shall provide Organics Collection Service to all Mult1-fam1ly Customers wrthout a waiver approved by the City Contractor shall provide sufficient Green Bins or Carts to Mult1-fam1ly Customers for Collection of Organics Customers may subscribe to the appropriate Service Level, which will include 64-gallon and 96-gallon Carts, or 2-cubic yard Bins Contractor shall place Green Carts and Bins at one or more community Collection points Contractor shall Collect all Organics from Single-family Res1dent1al Customers at no add1t1onal charge to City or customers 47 of 123 B-57 4 4 4 Holiday Tree Collection Program At no add1t1onal charge, Contractor shall operate an annual holiday tree Collection program from December 26 through January 15 During this period all holiday trees placed out for Collection by Cart and Bin Customers on Customer's regular Collection Day, at Customer's Collection location for Refuse Container Collection, shall be Collected by Contractor After this period, trees will be Collected as Bulky Items under Section 4 2 13 Trees up to seven (7) feet in length will be Collected and diverted without Customers needing to cut them Contractor may request that Customers with larger trees cut the trees to pieces no longer than seven (7) feet Contractor will divert all holiday trees from landf1ll1ng Upon request of the Owner or property manager, provided Customer's property has suff1c1ent space, Contractor shall place a Roll-Off Box at Mult1-Fam1ly complexes for the Collection of holiday trees to be diverted 4 4 5 Brush Clearing Events Contractor shall conduct two brush clearing events per year at no add1t1onal charge, one in April or May and one in September or October on dates to be set by the City Manager ("Brush Clearing Event") Each Brush Clearing Event will last for four Saturdays, each Saturday focusing on one of four areas in the City Contractor and City will instruct Residents to clear brush and other Green Waste from their properties and place It curbside for collection in tied bundles, barrels, compostable bags or other containers that will facilitate Collection by Contractor during Brush Clearing Events Contractor shall provide unlimited curbside Collection of Green Waste Customers may be instructed not to use plastic bags However, Contractor will Collect and divert Green Waste that Is placed for Collection in plastic bags One hundred (100) tons of brush/Green Waste collected per year through these events shall be processed at no add1t1onal cost, the level of processing brush/Green Waste included at no add1t1onal cost will be called the threshold Tonnage in excess of the threshold will be factored into the subsequent year's rate adJustment as described In Section 6 6 4 4 6 Brush Clearing Events -HOAs At no add1t1onal cost to City or Customers, Contractor shall provide and service sufficient Roll-Off Boxes up to twice per year to each homeowners' assocIatIon for the purpose of brush clearing Timing and placement of Containers to be mutually agreed upon between Contractor and each homeowners' assocIatIon 4 4 7 End Uses for Organics and Green Waste Contractor shall divert Organics and Green Waste materials Collected through weekly Cart and bundle Collection, holiday tree Collection and Brush Clearing Events from Disposal Contractor must provide end uses for Organics that maxImIze D1vers1on credit 48 of 123 B-58 for City according to regulations established by CalRecycle Green Waste may not be used as Alternate Daily Cover (ADC) Contractor 1s responsible for monitoring how the Organics and Green Waste will be diverted at the Designated Organics Processing Facility and for selecting alternative facilities 1f necessary to ensure full D1vers1on credit Failure to obtain full D1vers1on credit for Green Waste or Organics shall be considered a material breach and constitute an event of default by the Contractor City has the option, but not obligation, to direct Contractor where to deliver the material If Contractor 1s using an Organics processing facility that 1s in full compliance with the terms of this Agreement and prov1d1ng full D1vers1on credit, and City directs Contractor to use another facility at an add1t1onal cost to the Contractor, Contractor may request a rate adjustment for such add1t1onal costs City may review request for accuracy and reasonableness and shall grant a reasonable rate adjustment 4 5 City Services 4 5 1 City Fac1ht1es Collection Contractor shall Collect and dispose of all Refuse, Recyclable Material, and Organics put in Containers for Collection at City Fac1lit1es at no charge Service levels and number of City Fac1lit1es serviced may increase during the Term without any add1t1onal compensation paid to the Contractor or increase to rate payers Collections shall be scheduled at a time mutually agreed upon by Contractor and City, but not less than once per week Contractor shall allow each City Facility to use Carts, Bins, or Roll-off Boxes for Refuse, Recyclables, and Organics Collection, as determined by the City Manager Contractor will provide locking Bin Service for City 1f requested at no add1t1onal charge 4 5 2 E-Waste at City Fac1ht1es Contractor shall Collect and Recycle or properly dispose of all Electronic Waste placed at the City yard for Collection This material includes both items generated at City Facilities and items abandoned in the public right-of-way, including items Collected by City crews and Contractor crews 4 5 3 City-Sponsored Events Contractor shall provide Refuse, Recyclables, and Organics Collection and Disposal/processing service for City-sponsored events This shall include providing Containers (Bins, Roll-off Boxes, clearly labeled Recyclables and Organics Containers and cardboard waste boxes with liners) to Collect and dispose of, or process, all Refuse, Recyclables, and Organics as determined by City The Contractor shall provide these services at City-sponsored events, at no cost to City, the ratepayers, or the event sponsors City-sponsored events include, but are not limited to •Whale of a Day •4th of July Celebration •Shakespeare By the Sea 49 of 123 B-59 . •Beach Clean-up/Earth Day •Beach Clean-up/America Recycles Day •City Hall/Office Clean-up Day Add1t1onal events are ant1c1pated as well 4 5 4 Clean-Up Event Collection City holds approximately 15 clean-up events per year Contractor shall provide and service twenty-four (24) 40-cubic-yard Roll-Off Box pulls per year at no add1t1onal cost for these clean-up events City estimates two Roll-Off Box pulls per event, but the number used at each event may be higher or lower, as determined by City Contractor shall provide and service three-cubic-yard Bins at no add1t1onal cost for these clean-up events City may exchange these Roll-Off Box pulls for add1t1onal Bin pulls at a rate of six Bin pulls per Roll-Off Box pull 4 5 5 Emergency Collection and Disposal Service Contractor will assist City at the City's request with emergency Collection and Disposal service (1n the event of maier disaster, such as an earthquake, storm, not or c1v1I disturbance), or as otherwise determined necessary by the City, by prov1d1ng Collection equipment and drivers normally assigned to City Contractor may charge City for actual Disposal costs plus service rates per the Rate Schedule Contractor shall develop an emergency action plan that will include items such as •Emergency contact names and numbers, •A spec1f1c commitment of resources (such man-power, vehicles and refuse containers, to the extent not destroyed by the disaster) that would be made available to the City in the event of a natural disaster, and, •Optional resources that would be moved in from other locations should local resources be unavailable Contractor must obtain written City approval for this plan within 60 days of the execution of this Agreement City may ask Contractor to revise its submitted plan 4 5 6 Abandoned Item Collection City crews provide abandoned item Collection services, delivering abandoned items to the City yard for Collection and Disposal by Contractor In the event that City crews need add1t1onal assistance, Contractor will assist City crews (for up to twelve collection requests per calendar year, each request may include one or more items), by Collecting and disposing of, at no add1t1onal charge, w1th1n one Working Day of not1f1cat1on from City, 50 of 123 B-60 items left in the City's right-of-way, such as sidewalks, alleys, streets, and parkways Contractor will properly divert from landfilling or Dispose of such items in accordance with Sections 4 2 14 and 4 2 17 4 5 7 Street Sweeping Contract Management 'Contractor shall provide contract management services of City street sweeping services in accordance with the current requirements spec1f1ed by City at no add1t1onal cost to City Street sweeping services shall be provided through a street sweeping service provider engaged by City 0 0 () 0 In the event of (1) default of the street sweeping contract that Is not the result of the negligence or willful act of Contractor, and/or (11) termination of street sweeping services that Is not the result of the negligence or willful act of Contractor, such default or termination shall not be cause for default and/or termination of this Agreement 'Any agreement entered into by City and a street sweeping service provider, are referred to in this Agreement as the "Street Sweep ing Agreement " City shall assign the Street Sweeping Contract to the Contractor for contract management Contractor shall ensure that street sweeping services are provided in accordance with terms and cond1t1ons spec1f1ed by City in the Street Sweeping Agreement Contractor shall be responsible for all inquiries on street sweeping through its customer service call center and shall ensure that all matters are promptly corrected to the sat1sfact1on of City Contractor shall coordinate street sweeping services with City's Code Enforcement D1v1s1on to enforce parking regulations related to street sweeping actIvItIes, as directed by City's Director of Public Works Contractor shall deliver an annual report to City on the number of linear miles swept, amount of street sweeping debris collected and disposed, and other pertinent statIstIcs as may be required by the Director of Public Works Contractor shall be responsible for supervising the street sweeping service provider to ensure the street sweeping service provider performs street sweeping services to the highest level possible and properly disposes of street sweeping debris in a lawful manner Contractor shall ensure that all terms and provIsIons in the Street Sweeping Agreement are maintained On or before the 10th day of each month, Contractor will invoice City for street sweeping services performed during the preceding month by the street sweeping service provider Each invoice shall also ItemIze the add1t1onal street sweeping services performed during the preceding month, by hour, and the actual costs incurred for processing of collected sweepings and water There shall be no add1t1onal fees added by Contractor for contract management other than those requested by the street sweeping service provider 51 of 123 B-61 . City shall pay each invoice within thirty (30) days after receipt, except such amounts as City may in good faith dispute, which amounts City may withhold until resolution of the dispute Payment of any disputed amounts shall be made within ten (10) days following resolution of the dispute Contractor shall remit appropriate payment to the street sweeping service provider in accordance with the terms of Street Sweeping Agreement 4 6 Operations 4 6 1, Schedules To preserve peace and quiet, Solid Waste and Recyclables shall only be Collected between 7 00 a m and 7 00 p m Monday through Friday and between 9 00 a m and 5 00 p m on Saturday Saturday Collection hours are extended from 8 00 a m to 6 00 p m for holiday make-up Collections and for brush clearing events No Sunday Collection Is permitted without prior written approval from the City Manager Collection Is only permitted Monday through Friday for Cart service, unless Contractor receives advance written approval from the City Manager Saturday Collection for Cart service Is permitted on Saturday without advance approval 1f It Is necessary due to holiday scheduling or to Collect a missed pickup Contractor shall notify City no later than 7 00 a m on the following Monday morning 1f It Collected Cart Customers on a Saturday due to a missed pickup, and Contractor shall include the location of the missed pickup in the notice If the regularly scheduled Collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, Collection days for the remainder of that week shall all be postponed one Collection day, and regularly scheduled Collections shall resume by the following calendar week If one of these holidays falls on a Saturday, the Contractor shall perform Collection on the following Monday Holiday scheduling, including the add1t1on or deletion of holidays, Is not permitted without advance written City approval Contractor shall review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with City at least once annually, and upon thirty (30) day written notice requesting a review of its operations plan Contractor shall submit a copy of its Collection schedule and route map within seven days 1f requested by City If the plan Is determined to be inadequate by City, Contractor shall revise It incorporating any changes necessary to make It satisfactory to City within thirty (30) days No change in schedules and routing shall be implemented until fifteen (15) days after Contractor receives approval from City and not1f1es Customers 4 6 2 Missed Pickups When not1f1ed of a missed pickup prior to 1 00 pm , Contractor shall Collect the Refuse, Recyclables, and/or Organics that was not Collected the same day If not1f1ed after 1 00 p m , Collection must take place no later than noon of the next Working Day 52 of 123 B-62 4 6 3 Vehicles A General Contractor Is responsible for providing all vehicles required for the Collection of Solid Waste and Recyclables in sufficient number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms "" Contractor shall provide such Collection Vehicles as are required to meet the service standards set forth in this Agreement, even 1f such Collection Vehicles exceed those set forth in Contractor's Proposal Contractor shall have available on Collection days suff1c1ent back-up vehicles for each type of Collection Vehicle used to respond to complaints and emergencies B Spec1f1cat1ons Within twelve (12) months of the Effective Date, all Route Collection Vehicles shall be equipped with Near-Zero Natural Gas engines 'Near-Zero Natural Gas' engines emit 90% fewer NOx emIssIons than those limited by 2010 GARB standards, and meet the 2023 and 2031 GARB emIssIon standards All Route Collection Vehicles shall be fueled with Renewable Natural Gas "Route Collection Vehicles" means all Collection vehicles used for the weekly Collection of Refuse, Recycling or Organics, including Cart and Bin services, but excluding pup trucks and Scout Vehicles, and other Collection Vehicles used only for occasional services such as brush clearing events, Bulky Item Collection, City-sponsored events, clean-up events, Roll-Off Services, and holiday tree Collection Both Collection Vehicles and Route Collection Vehicles must be registered with the California Department of Motor Vehicles and shall have water-tight bodies designed to prevent leakage, spillage or overflow Collection Vehicles that use other fuel than natural gas may be used as spares to replace Route Collection Vehicles that are unavailable for no more than a total of 30 days per year per route, provided that the vehicles meet all other requirements of this Agreement At all times during the Term, Contractor's Route Collection Vehicles and Collection Vehicles shall comply with all applicable air pollution control laws, including but not limited to South Coast Air Quality Management District (GARB) emIssIon standards for Solid Waste Collection Vehicles as established in the California Code of Regulations Title 13 Section 2020 et seq and as they may be approved for Solid Waste and Recyclables removal vehicles, as well as other Applicable Laws Annually, Contractor shall provide City with documentation of such compliance tor each vehicle For example, with regard to GARB regulations, such documentation shall demonstrate, at a minimum, the vehicle number, make, model, year, control technology used or planned, and the year that the control technology was applied or Is planned to be applied C Vehicle ldent1f1cat1on and Labeling Each Collection Vehicle shall be marked with Contractor's name, toll free phone number, and a vehicle 1dent1f1cat1on number designated by Contractor for each Collection Vehicle which shall be prominently displayed on all such Vehicles, in lettering at least six inches in height and in contrasting colors, on each side and the rear of all Collection Vehicles City must approve truck labeling, and may place billboards with public notices on vehicles at no add1t1onal charge, no other advertising Is permitted If requested by City, Contractor shall place sIgnage on 53 of 123 B-63 Route Collection Vehicles indicating which material (Refuse, Recycling, Organics) 1s being Collected in the Vehicle As vehicles may be used to Collection different materials at different times, the s1gnage may be required to be changeable D Cleaning and Maintenance 1)Contractor shall maintain all properties, vehicles, fac11it1es, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable cond1t1on at all times 2)Collection, Vehicles shall be painted, thoroughly washed, and thoroughly steam cleaned on a regular basis so as to present a dean appearance City may inspect Collection Vehicles or any other equipment used in prov1d1ng service pursuant to this Agreement at any time to determine compliance with this Agreement Contractor shall also make all Collection Vehicles available to the County of Los Angeles for inspection regarding health concerns and requirements, at any frequency 1t requests Contractor agrees to replace or repair to the City's sat1sfact1on, any Collection Vehicle that City determines to be of unsightly appearance, leaking, or in unsatisfactory operating cond1t1on 3)Contractor shall repaint any or all Collection Vehicles within thirty (30) days' notice from City, 1f City determines that their appearance warrants painting City may not require a vehicle to be repainted 1f 1t has been repainted within the previous thirty (36) months 4)Contractor shall inspect each Collection Vehicle daily to ensure that all equipment 1s operating properly Collection Vehicles which are not operating properly shall be removed from service until repaired and operating properly Contractor shall perform all scheduled maintenance functions upon Collection Vehicles in accordance with the manufacturer's spec1f1cat1ons and schedule Contractor shall keep accurate records of all Collection Vehicle maintenance, recorded according to date and mileage, and shall make such records available to City upon request 5)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 cond1t1on Contractor shall maintain accurate records of repair, which shall include the date and mileage, nature of repair and the verif1cat1on by 54 of 123 B-64 signature of a maintenance supervisor that the repair has been properly performed and shall make such records available to City upon request 6)Contractor shall clean up any leaks or spills from its vehicles per the National Pollutant Discharge Elimination System (NPDES) permit in effect at the time No fluids shall be washed into storm drams 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 •7)Upon request, Contractor shall furnish ,City a written inventory of all equipment, including Collection Vehicles, used in prov1d1ng service pursuant to this Agreement This inventory shall list all equipment by manufacturer, year of production, ID number, date of acqu1s1t1on, type, capacity, and whether the vehicle 1s a spare E Operation Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances Contractor shall not load vehicles in excess of the manufacturer's recommendations or lim1tat1ons imposed by state or local weight restrictions on vehicles Contractor's equipment shall comply with US EPA noise em1ss1on regulations, currently cod1f1ed at 40 CFR Part 205 and other applicable noise control regulations (including but not limited to Section 8 20 120 of the Rancho Palos Verdes Municipal Code), as well as other Applicable Laws, and surh noise cor,trol features shall be incorporated throughout the entirety of all Collection Venicle Noise levels of equipment used for Collection shall comply with City ordinance and in no event shall the noise level exceed 75 dba when measured at a distance of 25 feet from the vehicle, five feet from the ground Contractor shall store all equipment in safe and secure locations in accordance with City's applicable zoning regulations Contractor shall be responsible for any damage resulting from or directly attributable to negligence or wrongful acts associated with any of its operations, and which 1t causes to driving surfaces in the City, whether or not paved, public or private, associated curbs, gutters and traffic control devices, and all other public and private improvements F Vehicle Cert1f1cat1on Contractor shall obtain a cert1f1cate of compliance (smog check) issued pursuant to Part 5 of D1v1s1on 26 of the California Health and Safety Code (Section 43000 et seq ) and regulations promulgated thereunder and/or a safety compliance report issued pursuant to D1v1s1on 14 8 of the California Vehicle Code (Section 34500 et seq ) and the regulations promulgated thereunder, as applicable to the vehicle Contractor shall maintain copies of such cert1f1cates and reports and shall make such cert1f1cates and reports available for inspection upon request by the City G City Inspection Per Code City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such 55 of 123 B-65 manner as may be appropriate to determine that the vehicle Is being maintained in compliance with the provIsIons of the State Vehicle Code, including, but not limited to, California Vehicle Code Sections 27000(b), 23114, 23115, 42030, 42032, and all Vehicle Code Sections regarding smog equipment requirements City may direct the removal of any vehicle from service 1f that vehicle Is found to be in nonconformance with applicable codes No vehicle directed to be removed from service shall be returned to service until It conforms with Applicable Laws, and its return to service has been approved by City H Vehicle Inspections Contractor shall submit the Safety Compliance Report!Terminal Record Update from its Biennial Inspection oLTerminal, or BIT If Contractor receives a terminal rating below satisfactory, Contractor shall notify the City Contractor has the time allowed by the Department of California Highway Patrol ("CHP") to cure v1olat1ons and bring the terminal rating up to satisfactory If the CHP does not adJust the rating to satisfactory or better within six (6) months, then this shall be considered a material breach of the Agreement, the Contractor shall be considered in default and the City may terminate this Agreement I Callforma Heavy Duty Inspection Program No later than the start of service under this agreement, Contractor shall submit to the City verif1cat1on that each Collection Vehicle has passed the California Heavy Duty Vehicle Inspection Thereafter, Contractor shall cause each Collection Vehicle to be tested annually in the California Heavy Duty Inspection Program and shall submit written verif1cat1on to City within ten (10) Working Days of the completion of such test Contractor shall not use any vehicle that does not pass such inspection J Correction of Defects Following any inspection, the City Manager shall have the right to cause Contractor, at its sole cost and expense, to recond1t1on or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly The City Manager's determination may be appealed to the City Council, whose dec1s1on shall be final K Collection Containers on Front of Vehicles At no time shall Contractor use a compartment mounted on the front of a Collection vehicle, or drive with a container held out in front of the vehicle, in operating Refuse, Recycling and Organics Routes Proh1b1ted examples include the Curotto Can method, or using a bin held out to the front of the vehicle into which material Is loaded These Collection methods may however be used for extra services such as brush cleanng events, holiday tree Collection, City-sponsored events, clean-up events, and Bulky Item Collection 4 6 4 Containers Contractor will provide Containers to be used under this Agreement City may select upgraded cart finishes, such as "granite," at no add1t1onal charge 56 of 123 B-66 4 6 4 1 Carts Contractor shall provide Cart collection Customers with Carts during the Term of this Agreement Carts and cart lids must meet color, size, uniformity, and quality requirements of the City Contractor shall provide and maintain Carts and Cart lids with consistent colors and in good cond1t1on Contractor shall maintain all Carts in good repair Carts shall be marked or labeled to include the Contractor's name and phone number, and information about what materials should and should not be placed in each type of Cart Cart markings and labels shall be subJect to City approval 4 6 4 2 Cart Mamtenance, ,Replacement and Exchange Contractor shall be responsible for repair and maintenance, unlimited graff1t1 removal, and replacing lost, stolen, damaged, worn-out or otherwise unsightly Carts and Contractor­ provided manual service Containers within two (2) Working Days at no add1t1onal charge to the Customer or to City, unless Contractor can demonstrate to the City Manager beyond a reasonable doubt that the damage or loss was due exclusively to the Customer's intentional or negligent behavior The City Manager's determination shall be final and binding If City permits a repair or replacement charge to be assessed against a Customer, charge shall be no more than the actual cost of repair or the Contractor's purchase price for a new Carts and Contractor-provided manual service Containers, whichever 1s lower No shipping/handling/delivery costs are to be charged to City or Customer All repairs must restore the Carts and Contractor-provided manual service Containers to their full functionality Replacement of lost/stolen Carts and Contractor-provided manual service Containers at no cost to Customer may be limited to one of each type (Gray, Blue, and Green) for each dwelling unit during the Contract term Upon Customer request, Contractor shall exchange Customer's Cart sizes Contractor may charge a single exchange fee for each exchange request, regardless of the number of Carts exchanged, in accordance with the Maximum Schedule of Rates 4643 Bms A Cleaning Contractor shall provide Customers with Bins required during the Term at no extra charge Contractor shall maintain Bins in a clean, sound cond1t1on free from putresc1ble residue All Bins in use shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted Wheels, forklift slots, and other apparatuses, which were designed for movement, loading, or unloading of the Bin shall be maintained in good repair Upon Customer or City request, or 1f required to maintain the Containers in a clean cond1t1on, Contractor shall dean all Bins for a fee in accordance with the Rate Schedule When a Bin 1s removed for cleaning, Contractor shall replace the Bin, either temporarily or as a change-out, with another Container Contractor shall remove graffiti from any Container within two Working Days of request by City or Customer Contractor 1s required 57 of 123 B-67 to proact1vely look for graff1t1 when Collecting Bins, with all graffiti removed from Containers 1n no later than one Working Day after any Collection without not1f1cat1on B Bm ldent1f1cat1on and Color Each Bin placed in the City by Contractor shall have the name of Contractor and phone number in letters not less than three (3) inches high on the exterior of the Bin so as to be v1s1ble when the Bin 1s placed for use Contractor shall label Bins with bilingual (English and Spanish) and graphic instruction on what materials should and should not be placed in each Bin Contractor shall repaint Bins upon City's request 1f the City deems 1t necessary to maintain a neat appearance All Refuse Bins shall be painted a uniform color of grey, and all Recycling Bins shall be painted a different, uniform color of blue 4 6 4 4 Roll-off Boxes Contractor shall provide sufficient Roll-off Boxes to meet City's demand throughout the Term of the Agreement, and will keep all Roll-off Boxes clean, free from graffiti, equipped with reflectors, and with the name and phone number of Contractor in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be v1s1ble when the Roll­ off Box 1s placed for use Contractor shall properly cover all open Roll-off Boxes during transport as required by the State Vehicle Code 4 6 4 5 Repa,r of Bms and Roll-off Boxes Contractor shall be responsible for repair and maintenance of Bins and Roll-off Boxes at no add1t1onal charge, and replacing lost, stolen or damaged Bins and Roll-off Boxes within two (2) Working Days at no add1t1onal charge to the Customer or to City All repairs must restore the Bins and Roll-off Boxes to their full functionality Unsightly/worn-out Bins and Roll-off Boxes shall be replaced by Contractor upon Customer request 4 6 5 Litter Abatement A Mm1m1zat1on of Spills Contractor shall use due care to prevent Solid Waste, Recyclables, or fluids from leaking, being spilled and/or scattered during the Collection or transportation process If any Solid Waste, Recyclables, or fluids leak or spill during Collection, Contractor shall promptly clean up all such materials Each Collection Vehicle shall carry a broom, shovel, absorbent, and containment materials at all times for this purpose Contractor shall not transfer loads from one vehicle to another on any public street, unless 1t 1s necessary to do so because of mechanical failure, or accidental damage to a vehicle, without prior written approval by City B Clean Up During the Collection or transportation process, Contractor shall clean up all litter spilled during Collection or otherwise caused by Contractor Contractor shall leave a "red tag" notice for Customer 1f litter not caused by Contractor 1s found in Container enclosure or around Containers Contractor may charge Customers in accordance with the Rate Schedule for the cleaning of Container enclosures or around the Container 1f 1t 1s littered due to overflowing Containers Contractor may address habitual offenders in accordance with Section 4 3 4 58 of 123 B-68 In the event of a spill of materials (vehicle fluids, waste, leachate, etc ), Contractor shall provide a clean-up of the spill to the sat1sfact1on of City and other governing agencies Clean-up methods may include pressure washing (Contractor must capture and reclaim water) or other s1m1lar clean-up methods C Covering of Loads Contractor shall properly cover all open debris boxes during transport to the Disposal Site 4 6 6 Personnel 0 0 0 A Qualified Personnel Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement m a satisfactory, safe, economical and efficient manner All drivers shall be trained and qualified m the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles The Contractor shall be responsible for ensuring that its employees comply with all Applicable Laws and regulations and meet all federal, state and local requirements related to their employment and pos1t1on B Hazardous Waste Employee Trammg Contractor shall establish and vigorously enforce an educational program which will tram Contractor's employees m the 1dent1f1cat1on of Hazardous Waste Contractor's employees shall not knowingly place such Hazardous Waste m the Collection Vehicles, nor knowingly dispose of such Hazardous Wastes at the processing Facility or Disposal Site C Customer Courtesy Contractor shall train its employees m Customer courtesy, shall proh1b1t the use of loud or profane language, and shall instruct Collection crews to perform the work quietly Contractor shall use its best efforts to assure that all employees present a neat appearance and conduct themselves m a courteous manner If any employee 1s found to be discourteous or not to be performing services m the manner required by this Agreement, Contractor shall take all necessary corrective measures including, but not limited to, transfer, d1sc1plme or termination If City has not1f1ed Contractor of a complaint related to discourteous or improper behavior, Contractor will consider reassigning the employee to duties not entailing contact with the public while Contractor 1s pursuing ,ts mvest1gat1on and corrective action process Contractor shall record Customer complaints regarding Customer service personnel m accordance with Section 5 2 2 Customer service representatives receiving multiple complaints are to be transferred from Customer service duties or, with City approval, d1sc1plined and appropriately trained D Unauthorized Material Removal Contractor shall d1sm1ss or d1sc1pline employees who remove documents or any other material from Containers, other than spec1f1cally for the purposes of Disposal and D1vers1on as described m this Agreement 59 of 123 B-69 E Trammg Contractor shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations F Compliance with lm m1grat1on Laws Contractor shall be knowledgeable of and comply with all Applicable Laws Contractor warrants and represents that all of its employees, including any and all prospective employees hired to perform services for the City under this Agreement and the employees of any subcontractor retained by the Contractor to perform a portion of the services under this Agreement, are and will be authorized to perform the services contemplated by this Agreement in full compliance with all applicable.state and federal laws, rules and regulations, including, but not limited to, the lmm1grat1on and Nationality Act of 1952 (commencing with Section 1101 of Title 8 of the United States Code), and the lmm1grat1on Reform and Control Act of 1986 (commencing with Section 1324a of Title 8 of the United States Code), as amended Contractor agrees to verify the legal status of all of its employees and provide documentation of such verif1cat1on whenever requested by the City If Contractor discovers that any employee It has retained Is not in compliance with lmm1grat1on Laws, Contractor agrees to terminate such employee G Representations Contractor's employees, officers, and agents shall at no time be allowed to 1dent1fy themselves or in any way represent themselves as being employees of the City Contractor's employees shall wear a company uniform when performing services on behalf of Contractor within the City 4 6 7 ldent1f1cat1on Required Contractor shall provide its employees, companies and subcontractors with 1dent1f1cat1on for all ind1v1duals who may make personal contact with residents or businesses in the City, including drivers City may require Contractor to notify Customers yearly of the form of its 1dent1f1cat1on Contractor shall provide a list of current employees, companies, and subcontractors to City upon request City reserves the right to perform a security and 1dent1f1cat1on check through the Los Angeles County Sheriff's Department on the Contractor and all its present and future employees employed by Contractor to work in the City, in accordance with accepted procedures established by City, or for probable cause 4 6 8 Fees and Gratu1t1es Contractor shall not, nor shall It permit any agent, employee, or subcontractors employed by It to request, solicit, demand, or accept, either directly or indirectly, any compensation, tip, or gratuity for services authorized to be performed under this Agreement 4 6 9 Non-D1scnmmat1on Contractor shall not discriminate in the provIsIon of service or the employment of Persons engaged in performance of this Agreement on account of race, color, religion, sex, age, 60 of 123 B-70 physical handicap or medical cond1t1on in v1olat1on of any applicable federal, state or local law 4 6 1 O Report of Accumulation of Sohd Waste, Unauthorized Dumping Contractor shall direct its drivers to note (1) the addresses of any Premises at which they observe that Solid Waste and/or Recyclables are accumulating and Is not being delivered for Collection, and (2) the address, or other location description, at which Solid Waste and/or Recyclables have been dumped in an apparently unauthorized manner Contractor shall deliver the address or description to City within one (1) Working Day of such ,observation 4 7 Contamination Momtormg and Mm1m1zat1on The Contractor shall implement a contamination monitoring program to mInimIze Proh1b1ted Container Contaminants in a manner that complies with Section 18984 5 of Title 14 of the California Code of Regulations The Contractor may conduct its contamination monitoring requirements through either Route Reviews, Waste Evaluations, or on-board video cameras, or a combination of these methods 4 7 1 Route Reviews For routes on which the Contractor conducts Route Reviews (1 e , on-route observations of ind1v1dual Containers), the routes must be reviewed at least once per year Upon finding Proh1b1ted Container Contaminates in a Container, Contractor shall notify the Customer of the contamInatIon The notice of contamination may be left at the Customer's location, or mailed, e-mailed, or electronically messaged to the Customer The not1f1cat1on shall include 1nformat1on about 1) the Collection day on which the Container was contaminated, 2) the nature of the contamination (e g , which type of Container was contaminated, etc , 3) 1nformat1on regarding the Customer's obligation to properly source separate materials in the appropriate Containers and, 4) the consequences of further contamination If feasible, the notice should include photographic evidence of the contamination 4 7 2 Waste Evaluations For routes on which Contractor performs Waste Evaluations (1 e , conducting waste characterizations of collected material at the processing fac1hty), Waste Evaluations shall be conducted at least twice per year from vehicle loads of Source Separated Blue Container Waste and from Source Separated Green Container Organics Waste, and at least once per quarter from vehicle loads of Gray Container Waste Waste Evaluations shall include samples of each material type, and samples from different areas of the City, and from different seasons in the year The Waste Evaluations shall include at least the number of samples required in Section 18984 5 (C)(1 )(e) of Title 14 of the California Code of Regulations 61 of 123 B-71 If the sampled weight of Proh1b1ted Container Contaminants in the Waste Evaluations exceeds 25 percent of the measured sample for any Container type, the Contractor shall perform one of the following •Notify all Customers on the sampled routes of their requirement to properly separate materials into the appropriate containers The City may provide this information by placing a notice on the Customer's Container, gate, or door, and/or by mail, e-mail, or electronic message to the Customer, or, •Perform a targeted route review of containers on the routes sampled for waste evaluations to determine the sources of contamination and notify those Customers of their obligation to properly separate materials The City may provide this information to these Customers by placing a notice on the Customer's container gate, or door, and/or by mail, e-mail, or electronic message to the applicable Customers 4 7 3 On-board Cameras Contractor may accomplish contamination monitoring and mInimIzatIon by using on­ board cameras that are directed at the vehicle hopper If the Contractor via cameras detects excess contamination, Contractor shall follow up with the generators on that route using educational materials including mailers, door hangers, and Cart/Bin tags The notice shall include 1nformat1on regarding the Customer's requirement to properly separate materials into the appropriate Containers and may include photographic evidence 4 8 Transportation of Solid Waste and Recyclables Contractor shall transport all Refuse Collected to a Facility designated by the Contractor pursuant to Section 4 1 O (e g , Transfer Station, Waste-to-Energy Facility, Organics Processing Facility, MRF, Disposal Site) Contractor agrees to make all reasonable efforts to separate Recyclables from Refuse for D1vers1on from landfill Disposal During the Term of this Agreement, Contractor shall ensure that adequate processing and disposal capacity Is available to properly handle the City's flow of Solid Waste including Recyclables, Organics, and Greenwaste Contractor shall maintain accurate records of the quantItIes of Solid Waste and Recyclables transported to all Fac1lit1es utilized and will cooperate with City in any audits or investIgatIons of such quantItIes Contractor shall cooperate with the operator of any Disposal Site or Facility It uses with regard to operations therein, including, for example, complying with directions from the operator to unload Collection Vehicles in designated areas, accommodating to maintenance operations and construction of new facilities, and cooperating with its Hazardous Waste exclusion program 62 of 123 B-72 4 9 Designated Fac1ht1es Contractor shall designate each transfer station, transformation facility, processing facility or other Facility used by Contractor in the fulfillment of this Agreement, unless the City exercises its rights pursuant to Section 4 9 4 Contractor must receive written advance approval from City to use each transfer station, transformation fac1hty, processing facility or other Facility used by Contractor in the fulfillment of this Agreement When requesting approval for a new facility, Contractor shall provide the reasoning for such a change to City Contractor 1s responsible for ensuring that each Facility 1t uses 1s properly permitted prior to requesting City approval to use such Facility Contractor guarantees the City capacity at its EDCO Recycling and Transfer in the City of Signal Hill for the Agreement Term for all of the City's Refuse, Recyclables and Organics generated and required to be Collected under this Agreement 4 9 1 Disposal Site The Contractor shall dispose of Refuse Collected, that 1s not required to be processed, at the Disposal Site Contractor has designated the Orange County Landfill System, Puente Hills MRF as the Disposal S1te(s) as of the effective date of this Agreement 4 9 2 Designated Recycling Facility Contractor has designated EDCO Recycling and Transfer as the Recycling Facility as of the effective date of this Agreement ("Designated Recycling Facility") Contractor shall deliver all Recyclables collected in the City to the Designated Recycling Facility, at Contractor's expense and in accordance with all Applicable Laws Contractor shall ensure that, after processing, residue material shall not exceed the amount permitted by Applicable Law Contractor shall ensure that Recyclables are used in a manner that 1s class1f1ed as D1vers1on 4 9 3 Designated Organics Processing Facility Contractor has designated EDCO Recycling and Transfer, Falcon Transfer Station and, as possible alternative/backup sites, Carson Transfer Station, Bel Art Transfer Station, and CR Transfer as the Organics Processing Fac1lity(1es) as of the Effective Date of this Agreement ("Designated Organics Processing Facility") Contractor shall deliver all Organics collected in the City to the Designated Organics Processing Facility 4 9 4 Facility Replacement Due to Non-Compliance Contractor shall ensure that the Disposal Site, Designated Recycling Facility, Designated Organics Processing Facility, and other designated Fac1lit1es are properly permitted and in compliance with Applicable Law at all times during the Term Contractor shall 1mmed1ately inform City Manager in writing in the event of any non-compliance, and City, in its sole d1scret1on, shall have the right to require the use of a different Disposal Site, 63 of 123 B-73 Designated Recycling Facility, Designated Organics Processing Facility, or other designated Facility, to be selected by Contractor The City may also, in its sole d1scret1on, require the use of a different site at any time during the Term 1f the Disposal Site, Designated Recycling Facility, Designated Organics Processing Facility, or other designated Facility Is found to not be in compliance with the provIsIons of Sections 2 5 J), 2 5 k), 2 5 I) (as the case may be), and the City determines that the Disposal Site, Designated Recycling Facility, Designated Organics Processing Facility, or other designated Facility Is not acceptable due to a failure to comply with the terms of this Agreement or a finding by State or federal regulatory agencies that It Is not in compliance ,with Applicable Law, including the Environmental Laws, and Is unable to accept City's Solid Waste, Recyclables, or Organics (as the case may be) Under no circumstances, however, shall a change in one or more of Disposal Site, Designated Recycling Facility, Designated Organics Processing Facility or other designated Facility pursuant to this Section provide a basis for an increase in the Rates 4 10 Status of Disposal Site Any Disposal Site utilized by Contractor, shall be designed and constructed in accordance with 23 California Code of Regulations Section 2510 et seq ("Subchapter 15") Any such Disposal Site shall have been issued all permits from federal, state, regional, county and city agencies necessary for It to operate as a Class Ill Sanitary Landfill and Is in full regulatory compliance with all such permits 4 11 Dedicated Routes Solid Waste Collected in the City shall not be commingled in Collection Vehicles with Solid Waste from other 1urisd1ct1ons unless and until Contractor has obtained written advance approval from the City as to the Contractor's method of tonnage allocation 4 12 Border Street Routing The following streets bordering the City of Rolling Hills Estates shall be Collected on Wednesdays Browndeer Lane, Elkridge Drive, Indian Valley Road, Qua1lwood Drive, Stonecrest Road, and Whitley Collins Drive 4 13 Route Audit At City's request, but not more often than once every three years during the Term, Contractor shall conduct an audit of its Collection routes in the City at Contractor's expense City may use information from the audit to develop a request for proposals for a new service provider City may instruct Contractor when to conduct the audit in order for the results to be available for use in preparation of a request for proposals or for other City uses City may also instruct Contractor to conduct an audit at a time that would produce the most accurate Customer service information for a new service provider to use in establishing service with Customers City will establish the deadlines by which 64 of 123 B-74 ----- Contractor will provide City with (A) routing and account information, and (B) the route audit summary report The route audit, at minimum, shall consist of an independent physical observation by person(s) other than the route driver of each Customer in the City This person(s) 1s to be approved in advance by City The routing and account information shall include, as a minimum, the following 1nformat1on for each account For Cart Customers •Route Number, •Truck Number, •Number of Cart Customers •Number and size of Carts by waste stream (Refuse, Recycling, Organics) •Cart cond1t1on, For Bin Customers •Route Number, •Truck Number, •Account Name, •Account Number, •Account Service Address, •Service Level per Contractor Billing system (Quantity, Size, Frequency), •Observed Containers (Quantity and Size), •Container cond1t1on, •Proper s1gnage, and, •Graffiti Within thirty (30) days after the completion of the route audit, Contractor shall submit to City a report summarizing the results of the audit The route audit summary report shall include •ldent1f1cat1on of the routes, •Route map, •Truck numbers, •Number of accounts, by route and in total (Cart and Bin), •Confirmation that all routes are dedicated exclusively to Customers in the City, •Number and type of exceptions observed, •Total monthly service charge (Cart and Bin), pre-audit 65 of 123 B-75 •Total monthly service charge (Cart and Bin), post-audit (subsequent to corrections of 1dent1f1ed exceptions), and, The route audit summary report shall include a description of the procedures followed to complete the route audit This description shall include the names and titles of those supervising the route audits and the name and titles of those performing the observations Add1t1onally, the report shall include a description of the pre-audit training of the route auditors, particularly 1f temporary personnel are used The route audit summary report shall also include a description of the changes and Contractor's 'plans to resolve the exceptions The results of the audit, and supporting back-up data, shall be available for review by City or its representative 4 14 Routing Plan Approval Contractor's routing plan 1s subject to City approval and will limit cross-City traffic, traffic on maier streets during rush hour, and avoid streets by schools at times when children are going to and coming from school 4 15 Service Exceptions, Hazardous Waste Not1f1cat1ons A Failure to Collect When Solid Waste and/or Recyclables are not Collected from any Solid Waste and/or Recyclables service rec1p1ent, Contractor shall notify its service rec1p1ent in writing, at the time Collection 1s not made, through the use of a "red tag" or otherwise, of the reasons why the Collection was not made, pursuant to Section 4 3 4 B Hazardous Waste Inspection and Reporting Contractor reserves the right to inspect Solid Waste and Recyclables put out for Collection and to reject Solid Waste and Recyclables observed to be contaminated with Hazardous Waste and the right not to Collect Hazardous Waste put out with Solid Waste and/or Recyclables Contractor shall notify all agencies with 1urisd1ct1on, 1f appropriate, including the California Department of Toxic Substances Control, Local Emergency Response Providers, and the National Response Center of reportable quant1t1es of Hazardous Waste, found or observed in Solid Waste and Recyclables anywhere within the City In add1t1on to other required not1f1cat1ons, 1f Contractor observes any substances which 1t or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully disposed of or released on any City property, including storm drams, streets or other public rights of way, Contractor will 1mmed1ately notify City Manager or City Manager's des1gnee Contractor shall implement and maintain a training program that will assist its employees in 1dent1fymg and properly disposing of any Hazardous Waste that may come into their possession Hazardous Waste D1vers1on Records Contractor shall ma1nta1n records showing the types and quant1t1es, 1f any, of Hazardous Waste found in Solid Waste 66 of 123 B-76 . and Recyclables and which was inadvertently Collected from service recIpIents within the City, but diverted from landfilling 4 16 Manual Backyard Refuse Collection Contractor shall Collect Refuse from Customer-provided Containers once per week from Single-Family Customers and Mult1-Fam1ly Customers without Bin service in the areas depicted as Area C and Area Don the map in Exh1b1t 1 The Collection location for manual service shall be Customer's back or side yard, or other location that Is not v1s1ble from the street These Customers shall be "Manual Collection Customers " The number of Containers Is not limited Contractor may charge Customer for this service based on the rates in the Rate Schedule 4 17 Portuguese Bend Beach Club Litter Containers Contractor shall Collect and Dispose of Solid Waste and Recyclables from litter containers placed at the beach property for no more than the maximum rate 1dent1f1ed in the approved rate schedule Under this EDCO Agreement, Contractor Is required to provide this Collection service 1f requested, but does not have the exclusive right to provide this service, and the Portuguese Bend Beach Club may negotiate with other hault:H5 10r this service Contractor may charge for this service based on the rates in the Rate Schedule 4 18 Recyclables Collection for Manual Collection Customers At no add1t1onal cost to City or Customers, Contractor shall Collect Recyclables from Contractor-provided 32-gallon Containers with unattached lids and without wheels, placed at the same Collection location as Customer-provided Refuse Conta iners, once per week from Manual Collection Customers Recyclables Collected shall be the same as those Collected from Cart Customers Contractor shall provide a sufficient number of Containers to each Customer to meet each Customer's ind1v1dual needs 4 19 Organics Collection for Manual Collection Customers At no add1t1onal cost to City or Customers, Contractor shall Collect Organics from Contractor-provided 32-gallon wheeled Containers with unattached lids, as well as unlimited Green Waste tied and bundled as set forth in Section 4 4 1, placed at the same Collection location as Customer-provided Gray Containers, once per week from Manual Collection Customers Contractor shall provide a sufficient number of Containers to each Customer to meet each Customer's ind1v1dual needs 67 of 123 B-77 5 Other Services 5 1 Customer Billing and Contractor Compensation 5 1 1 Cart Billing Contractor shall Bill Cart Customers on a quarterly basis during the first month of each quarter, with payment due no sooner than 45 days after the invoice date Contractor shall Bill any one-time charges, such as extra Bulky Item or overage pickups Contractor shall absorb any bad debt If payment 1s not made by the due date, Contractor shall notify Customer in writing that the payment 1s late If payment 1s not made within 30 days after due date, Contractor shall notify Customer that the invoice 1s over-due and that non-payment will result in suspended service and further collection action If payment 1s not made within 15 days after this subsequent notice (a minimum of 90 days after in1t1al Billing), Contractor may submit a list of overdue Customers to the City Manager and, with City Manager's advanced written approval, may suspend service and/or pursue collection remedies This entire sequence of not1f1cat1ons must be followed by Contractor prior to suspending service or pursuing collection City shall not hen property or assist in payment collection process Billings shall include Contractor's telephone number for Billing and service inquiries 5 1 2 Bm 8111mg Contactor shall Bill Bin Customers monthly at the beginning of the month, with payment due no sooner than 30 days after the invoice date Contractor shall Bill any one-time charges, such as extra pickups or extra Bin cleanings Contractor shall absorb any bad debt If payment 1s not made within 15 days after the due date, Contractor shall notify Customer in writing that the payment 1s late If payment 1s not made within 30 days after due date, Contractor shall notify Customer that the invoice 1s over-due and that non-payment will result in suspended service and further collection action If payment 1s not made within 15 days after this subsequent notice, Contractor shall provide written notice to Customer that the Billing remains unpaid and that service will be suspended 1f payment 1s not received within 15 days (a minimum of 90 days from 1rnt1al Billing) This entire sequence of not1f1cat1ons must be followed by Contractor prior to suspending service or pursuing collection City shall not hen property or assist in payment collection process B1ll1ngs shall include Contractor's telephone number for Billing and service inquiries 68 of 123 B-78 5 1 3 Compensation Entirely Through Approved Rates Contractor Compensation Is exclusively derived from revenue received as a result of the Billings for services listed on the Rate Schedule, and Contractor shall charge no add1t1onal fees unless approved in advance by the City 5 1 4 Discounts Contractor shall offer the following discounts to its Customers 5 1 4 1 Senior R�te Reduction Monthly service rates for qualifying Senior Cart Customers, including Backyard Service and pup route surcharges, will be reduced by ten percent (10%) "Senior(s)" are defined as persons who are 65 years of age or older To qualify for this reduced rate, the Senior must reside at the Premises, own or lease the Premises in his/her name, and the Bill must be in the Senior's name Senior landlords are not entitled to the discount Contractor may request Seniors to re-confirm their entitlement to this reduction no more than once per year, using an application form that must be approved in advance by City 5 1 4 2 Pre-payment Discount Cart Customers that pay annually, at the beginning of the year for the full upcoming year's service, shall receive a five percent (5%) reduction in their rate This reduction applies to the entire rate, including both pup route and Backyard Service surcharges 5 1 4 3 Low-Income Rate Reduction Low-income Cart Customers may apply to receive a five percent (5%) reduction in service rates The income threshold for determination of applicability of this reduction shall be based upon the low-income thresholds established for ut11it1es under the California Alternate Rates for Energy (CARE) program The Bill must be in the name of the party qualifying for this reduction Contractor may request reduction recIpIents to re-confirm their entitlement to this reduction no more than once per year, using an application form that must be approved in advance by City 5 1 4 4 Application of Rate Reductions and Discount Rate reductions under Sections 5 1 4 1, 5 1 4 2, and 5 1 4 3 are not exclusive and a Customer may receive all reductions, 1f applicable The amount of each rate reduction shall be calculated on the full rate prior to application of any other reduction as shown in Table 1 on the following page Reductions apply to the monthly rate, including both pup route and Backyard Service surcharges, but excluding extra Cart charges, bulky item charges or overage charges 69 of 123 B-79 Table 1 -Application of Rate Reductions and Discount Total discount if also qualifies for Base Plus Low Plus Low Discount Income or Income or Paid Senior Paid Senior Quarterly Discount Annually Discount Paid and Paid If a resident qualifies for Quarterly Annually Sr C1t1zen Discount ' 10% 15% 15% 20% Low income Discount 5% 15% 10% 20% Contractor shall handle the adm1nistrat1on of these rate reductions In the event of dispute between Contractor and Customer as to the apphcab1hty of each rate reduction, the City Manager shall make the determination, which determination shall be final and binding 5 1 5 Contractor's Invoices Bills must include a customer service telephone number, service description, including Container size, frequency of service, Backyard Service and/or Scout Vehicle service and period billed for City must approve Contractor billings as to content and format of invoice All bills must carry a due date, and shall not use the phrase "due upon receipt" Bills must use the rates as they appear on the Rate Schedule, and will not separately 1tem1ze City fees, surcharges, disposal components or other breakdown of rates without advance written approval from City 5 1 6 Customer Credits If a missed pickup 1s not made within the time required per Section 4 6 2, Customer may request a credit Credit will be in proportion to the amount of service missed versus the total amount of service scheduled for the Billing period 5 1 7 Customer 8111mg AdJustments Should Contractor determine that Contractor has underb1lled a Customer, or Customers, Contractor may back-Bill for no more than six months Amounts overb1lled to Customers shall be refunded upon discovery and such refunds are not limited by time 5 1 8 Exemption From Service Customers may request that service be suspended for a period of no less than 2 months, provided that the entire residence will be uninhabitable for that period, that Containers will not be placed for Collection, and that gardeners will not use the Organics Containers during that period 70 of 123 B-80 Customers may request that service be suspended for a period of no less than six months for a long-term vacation, provided that Containers will not be placed for Collection, and that gardeners will not use the Organics Containers during that period Contractor may request proof of vacancy, such as suspended utility service or plane tickets In the event of a dispute between Customer and Contractor as to whether a Customer warrants a voluntary suspension of service, City shall make the determination, which determination shall be final and binding Contractor shall be permitted to charge a restart fee to resume service after a service suspension in accordance with the approved rate schedule and shall notify Customers requesting a suspension of this fee at the time of suspension request 5 1 9 Late Payments Contractor may charge interest on outstanding balances of no more than 1 5% per month beginning no sooner than 90 days after the date of the invoice Contractor may charge a maximum of $20 00 per check fee for checks returned for lack of sufficient funds In no event may Contractor charge an interest rate or a check fee in excess of that permitted by State or Federal law 5 1 10 Electronic 8111mg and Payment Contractor shall offer electronic invoice payment to Customers at no add1t1onal charge 5 2 Customer Service 5 2 1 Local Office Contractor shall maintain an office, which shall be open ("Office Hours"), at a minimum, from 8 00 AM to 5 00 PM , Monday through Friday, exclusive of holidays Contractor shall also provide a telephone number for service calls The telephone number shall be a toll-free number from all portions of the City The telephone number shall be listed in the phone director(1es) distributed to the City in the firm name by which the Contractor conducts business in the City Contractor shall be available to take live service calls at this telephone number between 8 00 A M and 5 00 P M on Monday through Friday, and between 8 00 AM and 12 00 P M on Saturday ("Telephone Service Hours") Contractor's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days If City receives more than five (5) complaints in any thirty (30) day period that Customers are unable to contact Contractor by phone, City may require Contractor to increase capacity Contractor shall have either a representative, a message machine, or an answering service available outside of Telephone Service Hours Calls received outside of Telephone Service Hours shall be responded to on the next Working Day Contractor's route supervisor shall remain accessible by phone during Collection hours The Contractor shall provide City with an emergency phone number 71 of 123 B-81 where the Contractor can be reached outside of the required Office Hours A live person, not vo1ce-ma1I, shall be available at that number at all times, twenty-four hours per day 5 2 2 Complaint Documentation Service complaints received by City will be directed to Contractor Contractor shall keep daily logs of complaints forwarded to It for a minimum of three (3) years Contractor shall log all complaints received, including the date and time the complaint was received, the name, address and telephone number of the caller/complainant, 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 Log shall also include each instance that Solid Waste and/or Recyclables are not Collected and the form of not1f1cat1on used to inform the partIcIpants of the reasons of non-Collection and the end result or means of resolution of the incident All written Customer complaints and Inqumes shall be date-stamped when received All complaints, both oral and written, shall be 1nit1ally responded to within one (1) Working Day of receipt Contractor shall use best efforts to resolve complaints w1th1n two (2) Working Days Contractor shall log action taken by Contractor to respond to and remedy the complaint 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 5 2 3 Resolution of Customer Complaints Should Contractor and Customers not be able to resolve a complaint, not be able to establish a mutually acceptable fee to be charged for services not included on the Rate Schedule, or otherwise disagree, the matter shall be determined by City, and City's dec1s1on shall be final Intervention by City Is not a cond1t1on 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 5 2 4 Service L1a1son Contractor shall designate in writing a field supervisor as "Service L1a1son" who shall be responsible for working with City and/or City's designated representat1ve(s) to resolve Customer service-related complaints City shall have the right to approve the Contractor's choice for a liaison City shall be not1f1ed in advance of any change In Service L1a1son Service L1a1son shall be accessible to the City daily by phone or in person 72 of 123 B-82 • 5 3 Public Education and Outreach -Initial and Ongoing 5 31 General 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, AB 341, AB 1826, and SB 1383 Accordingly, Contractor agrees to take direction from City 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 . . . Contractor shall maintain its own program of providing information relevant to needs and methods to reduce, reuse and Recycle Solid Waste, including materials for inclusion with its Bills All public education materials shall be approved in advance by City prior to reproduction and d1stribut1on 5 3 2 Education and Outreach -Initial Rollout of Organics Collection Contractor shall undertake a spec1f1c in1t1al public education and outreach campaign to facilitate the rollout of the Organics Collection Program This campaign shall, at a minimum, consist of the tasks and act1v1t1es outlined in this Section, and be undertaken in conJunct1on with the Implementation Plan outlined in Exh1b1t 2 •Two Direct Mall Pieces -Contractor shall prepare and send two distinct direct mail pieces to all res1dent1al homes 1dent1fying program parameters •Billing Insert-If the City billing allows, Contractor shall prepare and furnish a billing insert with a program overview at program launch •Email Not1f1cat1ons -Contractor shall notify For Customers with registered email addresses through the Contractor website, Contractor shall notify customers about the program as well as send other essential service not1f1cat1ons •Community Meetings -Contractor shall host community meetings in advance of program 1mplementat1on to stimulate awareness The number of community meetings shall be determined at the d1rect1on of the City •Web Page Information -Contractor shall update the green waste page on the dedicated Rancho Palos Verdes section of the Contractor's web site to explain the commingled organics program parameters as well as the provide the ability to order Kitchen Caddies •Follow-Up Postcards -After program 1mplementat1on, Contractor shall mail a follow-up postcard to all Single-family Customers to solicit feedback, and any answer any add1t1onal questions 73 of 123 B-83 •Environmental Times Newsletter -Contractor shall prepare and distribute The Environmental Times newsletter to provide sustainable education, and outline program parameters •Videos -Contractor shall provide two videos that will be available on the Contractor web site One for the program overview, and another on how to partIcIpate •Upon request, Contractor shall provide free educational presentations to mult1-fam1ly complexes, community organizations, and neighborhood groups Presentations shall focus on reducing, reusing and recycling During the presentations, Contractor • shall distribute brochures, posters, and other promotional and educational materials •Contractor shall develop focused bilingual education pieces for groundskeepers and custodial staff for use in ongoing education presentations 5 3 3 Education and Outreach -On-gomg After the rollout of the Organics Collection Program, and for the remaining Term of this Agreement, Contractor shall undertake an ongoing campaign of public education and awareness Prior to January 31st of each year during the Term, Contractor shall submit to the City a Public Education Plan At a minimum, the Plan shall address all the items outlined in this Section The City shall review, provide feedback, and approve the Plan within sixty (60) days Upon approval by City, Contractor shall implement the Public Education Plan •Instructional "How-to" Packets -An information packet shall be provided to each new Customer throughout this Agreement term This packet shall describe available services, including available Recycling and D1vers1on programs, provide instructions for proper use of the Carts and Bins provided (such as how to place Carts or other permitted items for Collection, the types of materials to be placed in each Cart), detail holiday Collection schedules, and provide Billing and Customer service telephone numbers This packet shall contain updated information on how to use Containers, when, where and how to place materials for Collection, and who to contact with service or Billing questions, and for Bulky Item pickups The packet shall also clearly indicate what materials, such as syringes and other Sharps, and other Household Hazardous Wastes (HHW), should not be disposed of In Containers This packet shall include instructions on how Customers should dispose of HHW, such as information on the HHW drop-off fac1lit1es and other available programs When new Customers contact Contractor to start service, Contractor shall provide new Customers with the option of receiving this new Customer "How-to" packet through electronic mail 74 of 123 B-84 •Container Labels and Hot Stamps -All Containers shall have stickers/labels and hot stamps to provide Customers with information about what materials may be placed in which Containers •B1lhng Inserts -City may require Contractor to insert notices in Contractor's Billings four (4) times per year for each Customer type, Cart and Bin Notices will be prepared and delivered to Contractor for insertion Add1t1onally, City may periodically request that Contractor include informative language directly on the invoices It sends •Annual Brochures/Mailings -Not less than once per year during each Rate Year, Contractor shall prepare and distribute to each Customer a mailing to update Customers regarding program basics, program changes, holiday schedules and other service-related information Mailings should promote and explain all Solid Waste and Recyclables programs offered by City and Contractor (such as Recycling, Organics, Holiday Tree and Bulky Item Collections) described in detail, the environmental, regulatory, and other benefits of partIcIpating in Recycling, how to properly dispose of Household Hazardous Waste such as syringes, paint, etc , Collection schedules, including holiday schedules, Customers service numbers, and the procedures to begin and terminate services This brochure shall be at least four (4) pages, and printed in full color Contractor Is responsible for all associated costs •Corrective Action Notice -Contractor shall develop a corrective action not1f1cat1on form for use in instances where a Customer sets out inappropriate materials for Collection, that explains the appropriate manner for Disposal of such items •Bi-annual Direct Mailed Letters for Non-Compliant Generators -Contractor shall prepare and mail not1f1cat1on letters to all non-compliant Mult1-fam1ly Customers •Website -Contractor shall develop and maintain a website to enable Customers to contact Contractor and to display holiday schedules, proper HHW disposal procedures, which materials are to be placed in Recyclables Containers and other useful information Contractor's website will provide Customers the means of entering their address to easily determine what their new Collection day will be •Newsletter -Contractor shall produce and distribute a localized ed1t1on of Contractor's quarterly "Environmental Times" to Customers Customers that sign up for electronic Bill payment shall receive this newsletter by electronic mail 5 3 4 Contractor Representative Contractor shall retain on ,ts staff an ind1v1dual who shall, as part of his or her Job function, routinely vIsIt cIvIc groups, school assemblies, homeowners' assocIatIons, Mult1-fam1ly 75 of 123 B-85 ' complexes and businesses, to promote and explain the Recycling and other programs Contractor offers, and part1c1pate in demonstrations, and c1v1c events 5 3 5 Community Events At the d1rect1on of City, Contractor shall part1c1pate in and promote Recycling and other D1vers1on techniques at community events and local act1v1t1es Such part1c1pat1on would normally include providing, without cost, Collection and educational and publicity information promoting the goals of City's Solid Waste and Recyclables program 5 4 , Technical Assistance program 5 4 1 Site V1s1ts and Waste Assessments No later than two weeks after the Effective Date, Contractor will provide an outreach and technical assistance plan to the City for approval 1dent1fying the site v1s1t schedule for which to send a Contractor representative to v1s1t each Mult1-Fam1ly Bin Customer's Premises for the purpose of assessing how much Recyclable Material and Organics 1s being disposed, assessing the Recyclables and Organics Collection Service Levels needed to meet the requirements of SB 1383 Regulations, and encouraging all Customers to establish Recyclables and Organic Materials collection service at least four weeks prior to July 1, 2022 when mandatory service 1s required Contractor shall also notify Customers of opportunities to reduce costs by subscribing to Recyclables and Organic Collection service, and reducing Gray Container Waste/Mixed Waste Collection service Contractor shall contact Mult1-Fam1ly and Commercial Customers and provide site v1s1ts according to the City-approved schedule Contractor will also provide a site v1s1t to any Mult1-Fam1ly or Commercial Customer that requests a site v1s1t, even 1f 1t 1s ahead of schedule Beginning July 1, 2022 and annually thereafter, Contractor representative shall follow up with Mult1-Fam1ly Customers who are required to part1c1pate in Recyclables and Organics Collection service under applicable law, including but not limited to AB 341, AB 1826, and SB 1383 and corresponding regulations The Contractor shall ensure that these Customers are part1c1pating in the Recyclables and Organics Collection Service If the Customer 1s not in compliance or not part1c1pating, the Contractor representative shall assist the Customers with selecting appropriate Containers and Container sizing, 1dent1fy acceptable Solid Waste Collection services as set forth in the Agreement, and attempt to resolve any log1st1cal barriers to providing Recyclables and Organics Collection service Contractor shall provide ongoing, on-site training for Customers' staff, including, but not limited to management, kitchen staff, service employees, and Janitorial staff, and Mult1- Fam1ly Customers' staff, including but not limited to the property manager, Janitorial staff, maintenance, and any other on-site staff members or contractors that handle Solid Waste For each on-site waste assessment conducted by Contractor, Contractor shall include documentation of the items listed below The City reserves the right to receive Contractor's documentation of add1t1onal information, and shall authorize the format for required information 76 of 123 B-86 a Pictures of material in all Containers, b Characteristics of the property, bus iness, and Customer type, c Written recommendations for the appropriate Service Level for each material type, d Prov1s1on of outreach and education materials appropriate to the Customer type, e Determination of sIgnage placement, f Determination of any on-going training needs, g Determination of any access needs, h Documentation of any special service needs (such as, but not limited to, seasonal Collection service, automated on-call Compactor, etc ), and, Documentation of records of communications with the Customer 5 5 Customer Waiver Program Coordmat1on The City has the authority to grant to ind1v1dual Customers waivers from the requirement to subscribe to Recyclables and Organic Waste Collection service These waivers may be granted for de mInimIs generation, lack of space, or every other week service The City cannot be delegated to a private entity (e g , Contractor) the authority to grant these waivers Contractor shall advise the City in determining which Customers shall qualify for a waiver 5 5 1 Contractor Waiver Request on Behalf of Customer Upon reasonable belief that a Customer may qualify for a de minImIs, physical space, or Collection frequency waiver, the Contractor may submit a request to the City to grant a waiver to the Customer, provided that adequate evidence of the de minImIs, physical space, or Collection frequency waiver requirements spec1f1ed in 14 CCR Section 18984 11 Is included with the request The City shall review and approve or deny the waiver request Contractor's request for cons1derat1on of a waiver shall include the Customer's name and address, type of Commercial Customer, or number of mult1-Fam1ly units 1f Customer Is a Mult1-Fam1ly Premises, reasons Customer may be eligible for the waiver, and evidence such as, but not limited to Service Level data, photo documentation, weight records, and technical assistance assessment results 5 5 2 Waiver Revenf1cat1on It shall be the respons1b1lity of the Contractor to verify that the Customers 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 reverif1cat1ons of waivers through inspection of each Customer's Premises and review of applicable 77 of 123 B-87 records at least once every five (5) years for de m,nim,s and physical space constraint waivers The Contractor shall maintain a record of each waiver verif1cat1on and provide a monthly report to the City documenting the waiver reverif1cat1ons 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 elig1b1lity of Customers 5 5 3 Contractor Recordkeepmg of Customer 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 Customers' names, mailing address, service address, and type of waiver Contractor shall maintain waiver-related records and report on waiver verif1cat1ons 5 6 Inspection and Enforcement 5 61 General During the Term, Contractor shall perform a an annual compliance review for each Mult1- fam1ly Customer as described in this Section 5 6 2 Commercial Customer Compliance Reviews The Contractor shall complete a compliance review of all Mult1-Fam1ly and Commercial Customers that generate two (2) cubic yards or more per week of Solid Waste, including Organic Waste, to determine their compliance with (1) Customer requirements under the City's Solid Waste Collection program, and, (11) ,f applicable for the Customer, Self­ Hauling requirements pursuant to 14 CCR Section 18988 3 and the Municipal Code, including whether a Mult1-Fam1ly or Commercial Business ,s complying through Back­ Hauling Source Separated Recycled and Organics Materials Source Separated Organic Materials The compliance review may mean a 'desk' review of records to determine Customers' compliance with the above requirements and does not necessarily require on-site observation of service, however, the City may require that the Contractor perform an on-s,te observation of service in add1t1on to or in lieu of the desk review 1f needed to obtain the required information 5 6 3 Number of Reviews The Contractor shall conduct enough compliance reviews, Hauler Route reviews, and inspections of Customers, to adequately determine the Customers' overall compliance with SB 1383 Regulations, AB 1826, AB 341, and the Municipal Code The number of reviews shall be no less than one (1) per year The City reserves the right to require add1t1onal inspections, 1f the City determines in ,ts sole d1scret1on that the number of inspections conducted by the Contractor ,s insufficient The City may require the Contractor to priont,ze inspections of ent1t1es that the City determines are more likely to be out of compliance 78 of 123 B-88 ' 5 6 4 Non-Compliant Ent1t1es From July 1, 2022 through June 30, 2023, Contractor shall provide educational materials in response to non-compliant Customers Contractor shall provide these educational materials to the non-compliant Customers within thirty (30) days of determ1nat1on of non­ compliance or 1mmed1ately upon determination of non-compliance 1f such non­ compliance Is determined during an inspection or a Route review Contractor shall document the non-compliant Customers and the date and type of education materials provided, and shall report such information to the City Beginning January 1, 2024, the Contractor shall, in add1t1on to providing the education materials described In this subsection, document non-compliant Customers and Customers determined through Contractor's compliance reviews pursuant to Section 5 6 2 and shall report all Customers and Customers with v1olat1ons of SB 1383 Regulations to the City The City shall be responsible for subsequent enforcement action against the Customers 5 6 5 Documentation of Inspection Actions The Contractor shall generate a written and/or electronic record and maintain • documentation for each inspection, and compliance review conducted and shall provide copies to the City on request 5 7 Procurement of Products with Recycled and Organics Contents The Contractor shall comply with the purchasing and recordkeeping requirements described in this Section 5 7 1 Recycled-Content Paper The Contractor shall procure Paper Products and Printing and Writing Paper for invoices, billing statements and inserts, reports, and public education materials, consistent with the requirements of the Public Contract Code (PCC) Sections 22150 through 22154 Add1t1onally, Paper Products and Printing and Writing Paper procured by the Contractor shall be eligible to be labeled with an unqualified recyclable label, as defined in 16 Code of Federal Regulations (CFR) Section 260 12 (2013) Contractor shall state on all materials prepared with post-consumer recycled content the following 'Printed on Recycled Paper' In accordance with 14 CCR Section 18993 3(c), the Contractor shall require all businesses from whom It purchases Paper Products and Printing and Writing Paper to certify in writing •The minimum percentage, 1f not the exact percentage, of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the Contractor The cert1f1cat1on shall be furnished under penalty of pequry in a form and manner determined by the Contractor and approved by the City The City may waive the cert1f1cat1on requirement 1f the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website, and, 79 of 123 B-89 f •That the Paper Products and Printing and Writing Paper offered or sold to the Contractor are eligible to be labeled with an unqualified recyclable label as defined in 16 CFR Section 260 12 (2013) 5 7 2 Prov1s1on of Mulch Upon City request, Contractor shall procure and provide on the City's behalf up to five hundred (500) cubic yards per calendar year of bulk Mulch derived from recovered Organic Waste for use in City parks and fac1lit1es Contractor shall provide an add1t1onal five hundred (500) cubic yards per calendar year of bulk Mulch for d1stribut1on to City residents • • • Contractor shall deliver Mulch in rolloff boxes or via dump truck within thirty (30) calendar days of request to the Silo Yard, or any accessible location within the City limits Upon request, Contractor shall provide the City with Mulch lab results and spec1f1cat1ons All Mulch provided by Contractor must meet or exceed State requirements for Mulch quality, including those standards regarding Mulch maturity, reduction of pathogens, elimination •of weed seeds, and concentrations of physical contaminants such as glass, plastic, metal, and other Non-Organic Recyclables All Mulch provided by Contractor must be suitable for use in landscaping, parks, sports fields, and community gardens, and must be suitable for d1stribut1on to the general public 5 7 3 Renewable Natural Gas If requested by City, Contractor shall provide the name, location, and contact information of each entity, operation, or Facility from whom the Contractor procured Renewable Natural Gas (RNG) If requested by City, Contractor shall provide the total amount of RNG procured by the Contractor for use m Contractor vehicles in the City of Rancho Palos Verdes, in diesel gallon equiva lents (OGE), including copies of any receipts, invoices, or other s1m1lar documentation 5 7 4 Recordkeepmg Requirements Contractor shall ma1nta1n records that demonstrate ongoing compliance with these requirements, including, but not limited to, copies of receipts, invoices, or other proof of purchase that describe the products purchased, by volume and type for all products spec1f1ed in this section, and copies of cert1f1cat1ons or other verif1cat1ons required by this Agreement Contractor shall submit these records, upon the City request 5 8 Waste Generat1on/Charactenzat1on Studies Contractor acknowledges that City must perform Solid Waste and Recyclables generation and Disposal characterization studies periodically to comply with the requirements of AB 939 Contractor agrees to part1c1pate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed and directed by City, to determine weights and volumes of Solid Waste and Recyclables Collected and 80 of 123 B-90 characterize Solid Waste and Recyclables generated, disposed, transformed, diverted or otherwise handled/processed, by Customer type (Cart, Bin), to satisfy the requirements of AB 939 Contractor will at its sole expense conduct such a waste generation and characterization study upon request of City, but not more than once every two years 81 of 123 B-91 6 Contractor Compensation and Rates 61 General The maximum rates set forth in Exh1b1t 3, and as more fully defined as Contractor Compensation in this Article, shall be the maximum amount Contractor may charge Customers as full, entire and complete compensation due pursuant to this Agreement for all labor, equipment, materials and supplies, taxes, insurance, bonds, letters of credit, overhead, Disposal, transfer, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed, subject , to the substantive and procedural requirements of Propos1t1on 218 (the "Maximum Rate Schedule") Contractor shall impose no other charges for services provided to Customers unless and until such add1t1onal fees or compensation have been duly noticed and subjected to a public hearing process in accordance with Propos1t1on 218 Contractor shall not charge for Collection at Premises owned and/or operated by the City now and in the future 6 2 Schedule of Future AdJustments, Automatic AdJustments, Prop 218 Beginning with the Rate Year starting July 1, 2023 and for all subsequent Rate Years during the Term, Contractor may request an annual adjustment to the Maximum Rate Schedule shown in Exh1b1t 3, subject to meeting the requirements of Propos1t1on 218 The Contractor shall submit its request in writing, to be received by City in Person or via cert1f1ed mail or by other means approved by the City, by the preceding March 30, and shall be based on the method of adjustment described in Section 6 3 Failure to submit a written request by March 30 shall result in Contractor waiving the right to request such an increase to the Maximum Rate Schedule for the subsequent Rate Year Missed rate adjustments may not be added to rate adjustment applications in ensuing years Further adjustments and/or increases to the Maximum Rate Schedule are strictly subject to the assent of the City and compliance with Propos1t1on 218 The City intends to comply with all Applicable Laws, including without lim1tat1on Propos1t1on 218, concerning the setting of adjustments to the Maximum Rate Schedule under this Agreement •Notice of Increases Contractor shall give prompt written notice of any duly­ adopted rate increases to all customers, which notice shall inform customers of the exact date on which the increase becomes effective These notices shall be provided on the Contractor's publicly-accessible website and shall also be included in those billing invoices mailed out at a time, and in conformance with, Government Code§ 53756 ' •No-Waiver of City D1scret,on While City reserves all powers afforded to c1t1es generally under the prov1s1ons of Applicable Law, this Agreement, including the rate adjustment elements hereof, has been agreed to by the parties following arms- 82 of 123 B-92 . length negotIatIons and upon advice of counsel, for the dual purposes of safeguarding public health and facilitating the performance of obligations undertaken by Contractor on City's behalf and for its benefit Accordingly, while this Agreement does not require City's approval of a Maximum Rate Schedule adjustment in every case, It does contemplate that City will exercise its powers reasonably and in good faith, and shall favorably consider and shall accord proper weight to a Maximum Rate Schedule proposal 1f accompanied by substantial supporting evidence In no case will City's failure to approve any spec1f1c Maximum Rate Schedule adjustment be a default hereunder, and City bears no liability to Contractor for any damages suffered by Contractor as a result of the failure to pass ,new Maximum Rate Schedules or adjustments thereto Accordingly, the City Council Is completely free within its police powers to exercise its d1scret1on in considering such matters, and the City has not contracted away any of its police powers or duties to protect the public health, safety or general welfare of its cItIzens pursuant to State and Federal law 6 3 Method of Inflationary AdJustments Contractor's rates in Exh1b1t 3, or those in effect at the time, shall be adJusted at the same rate as the annual change in the Consumer Price Index for All Urban Consumers (CPI­ U) U S city average, (seasonally adjusted) for the Garbage and Trash Collection detailed expenditure category (Mnemonic XCPIUEHG02 IUSA) However, such inflationary adjustments shall only apply "automatically" to the extent permitted by Government Code § 53756 and properly noticed pursuant to such statute In determining the annual change In the CPI, Contractor shall compare the change in the index for the twelve months ending in the December that 1mmed1ately precedes the planned July 1 rate adjustment effective date For each adjustment, the ending index value from the previous year's adjustment shall be used as the beginning index value for the current year's adjustment calculation 6 4 Maximum Allowable Rate Year AdJustment In any Rate Year, the annual rate adjustment may not exceed six percent (6%) If a proposed adjustment to the Maximum Rate Schedule in any one year exceeds six percent (6%), the portion of the adjustment that Is disallowed may be added to any subsequent Rate Year's adjustment to the extent that a subsequent adjustment remains below six percent (6%) New or increased Federal, State or locally imposed per ton disposal fee surcharges are excluded from the six percent (6%) per year rate adjustment cap 6 5 Extraordinary AdJustments Subject to meeting the substantive and procedural requirements of Propos1t1on 218, Contractor may request in writing an adjustment to the Maximum Rate Schedule other than that allowed under Section 6 3 in the event of extraordinary (1 e , non-inflationary) changes in the cost of providing service under this Agreement Contractor may submit such a request not more frequently than once every twelve (12) months Such changes shall not include changes in tipping fees for Refuse Disposal, Recyclable Material, Green 83 of 123 B-93 Waste or Organics processing costs, changes in the market value of Recyclables', changes in the cost of organics processing or land application, inaccurate estimates by the Contractor of its proposed cost of operations, unionization of Contractor's work force, change in wage rates or employee benefits, or the inability of the Contractor to dispose of any or all Solid Waste at a selected landfill, including due to closure of a Disposal Site The only exception that would permit an extraordinary adJustment based upon changes to the Refuse Disposal gate rate would be an increase in a direct per ton surcharge assessed at the Disposal Site by federal, state or local regulatory agencies after the Effective Date Contractor 1s expected to comply with SCAQMD Rule 1193, and the Air Resource Board's em1ss1on standards as they may be approved for Refuse removal , vehicles, as well as other Federal, State and focal laws and regulations that may be enacted during the Term, with no add1t1onal compensation Extraordinary rate adJustments shall only be effective after approval by City Council For each request for an adJustment to the Maximum Rate Schedule that Contractor may charge Customers brought pursuant to this section, Contractor shall prepare a schedule documenting the extraordinary costs and how such costs are proportionally and actually reflected in the Maximum Rate Schedule proposal Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement City shall review the Contractor's request and, in City's sole Judgment and absolute, unfettered d1scret1on, make the final determination as to whether an adJustment to the Maximum Rate Schedule will be made, and, 1f an adJustment 1s permitted following Propos1t1on 218 procedural compliance, 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 6 6 Brush Clearing Tonnage Threshold AdJustment Customer rates are assumed to include the cost of processing up to 100 tons of brush (the "threshold") Collected per Section 4 4 5 per calendar year In the event that the number of tons Collected during these brush clearing events in any one calendar year exceeds this 100 ton threshold, the threshold for subsequent calendar years will be set at this higher amount The rate adJustment effective the July 1 following the calendar year in which the threshold was exceeded will include the annual cost to process the number of brush tons by which the threshold was exceeded, as follows (new tonnage threshold -old tonnage threshold) x per ton brush processing rate(1) = Y Y -Current annual rate revenue = % increase to the annual rate adjustment(2) (1 ) The per ton brush processing rate per ton shall be $95 00 for rate adjustments based upon calendar year 2021 tonnage, and increased by CPI index in Section 6 3, and annually thereafter 84 of 123 B-94 . (2)As calculated in Section 6 4 above Rate adJustments will only be made in this manner and apply to subsequent years, no adJustments shall be made for the actual year 1n which the threshold was exceeded The threshold for subsequent calendar years and, 1f applicable, subsequent rate adJustments shall be the new, higher tonnage volume upon which the rate adJustment was based This rate adJustment may be earned out at least three decimal points (to one-tenth of one percent) 6 7 , Supporting Information Any request for an adJustment to the maximum rates made pursuant to Section 6 5 shall be accompanied by a copy of Contractor's cert1f1ed annual f1nanc1al statements prepared by a Cert1f1ed Public Accountant, which shall have been prepared in compliance with Rule 58 of the "Rules and Regulations of the State Board of Accountancy," as established by the California Code of Regulations, Title 16, Chapter I Such Cert1f1ed Public Accountant shall be entirely independent of the Contractor and shall have no f1nanc1al interest whatsoever in the business of Contractor City may specify the form and detail of the financial statements 6 8 Potential Future Organics Facility on Palos Verdes Peninsula If requested by City, Contractor shall work cooperatively with City and other local agencies to explore the feas1b1lity of siting an Organics Processing Facility on the Palos Verdes Peninsula In the event that an Organics Processing Facility 1s sited and becomes operational on the Palos Verdes Peninsula, Contractor shall reduce its customer rates to reflect the cost savings resulting from a) decreased operating costs resulting from reduced vehicle travel time to the more proximate organics processing facility on the Palos Verdes Peninsula, and, b) reduced t1pp1ng fees at the organics processing facility on the Palos Verdes Peninsula 85 of 123 B-95 7 Review Of Services and Performance 7 1 Performance Review Meeting City may hold a meeting or a public hearing annually to review Contractor's Solid Waste and Recyclables Collection efforts, source reduction, processing and other D1vers1on services and overall performance under this Agreement (the "Solid Waste Services and Performance Review Meeting") The purpose of the Solid Waste Services and Performance Review Meeting 1s to provide for a d1scuss1on and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, processing and Disposal to achieve a continuing, advanced Solid Waste and Recyclables 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 d1scuss1on and review at the Solid Waste Services and Performance Review Meeting shall include, but shall not be limited to, services provided, feas1b1lity of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new 1rntiat1ves for meeting or exceeding the' goals of AB 939, AB 341, AB 1826, and SB 1383, regulatory constraints, results of route audits, and Contractor performance City and Contractor may each select add1t1onal topics for d1scuss1on at any Solid Waste Services and Performance Review Meeting City shall notify Contractor of ,ts intent to hold a Solid Waste Services and Performance Review Meeting at least sixty (60) days in advance Thirty (30) days after receiving notice from City of a Solid Waste Services and Performance Review Meeting, Contractor shall submit a report to City which may contain such information as 1t wishes to have considered, and shall contain the following a)Current D1vers1on rates and a report on Contractor's outreach act1v1t1es for the past year b)Recommended changes and/or new services to improve City's ability to meet the goals of AB 939, AB 341, AB 1826, and SB 1383 and to contain costs and min1m1ze impacts on rates A spec1f1c plan for compliance shall be included c)Any spec1f1c plans for prov1s1on for new or changed services by Contractor d)Reports on Customer complaints 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 cons1derat1on at the Solid Waste Services and Performance Review Meeting In add1t1on to the above, City may request Contractor to submit any other spec1f1c information relating to its performance for cons1derat1on at the Solid Waste Services and Performance Review Meeting, and any Customer may submit comments or complaints during or before the Meeting, either orally or in writing Contractor shall be present at and part1c1pate 1n the Solid Waste Services and Performance Review Meeting 86 of 123 B-96 As a result of its findings following any Solid Waste Services and Performance Review Meeting, City may require Contractor to provide expanded or new services within a reasonable time and City may direct or take corrective actions for any performance inadequacies (although nothing contained in this prov1s1on should be construed as requiring City to hold a Solid Waste Services and Performance Review Meeting in order to enforce any rights or remedies 1t has pursuant to the terms of this Agreement ) Should City require expanded or new services as a remedy for Contractor's failure to perform its obligations hereunder, no add1t1onal compensation shall be due for such services Otherwise, any new or expanded services required of Contractor shall be subJect to the prov1s1ons of Section 2 9 87 of 123 B-97 8 Records, Reports and Information Requirements 81 General Contractor shall maintain such accounting, stat1st1cal and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement Also, Contractor agrees to conduct data collection, information and record keeping, and reporting act1v1t1es needed to comply with Applicable Laws and regulations and to meet the reporting and Solid Waste and Recyclables program management needs of City To this extent, such requirements set out in this Agreement shall not be considered limiting or necessarily complete In particular, this Article 1s intended to only highlight the general nature of records and reports and 1s not meant to exactly or comprehensively define the scope and content of the records and reports Further, with the written d1rect1on or approval of City, the records and reports to be maintained and provided by Contractor in accordance with this Agreement shall be adjusted in number, format, or frequency Contractor shall maintain all records necessary to allow the City to determine Contractor's compliance with the terms of this Agreement and compliance with the performance standards presented in this Agreement The records shall be maintained in a manner that allows for easy verif1cat1on of Contractor's performance 8 2 Records 8 21 General Contractor shall maintain records required to conduct its operations, to support requests 1t may make to City, and to respond to requests from City in the conduct of City business Adequate record security shall be maintained to preserve records from events that can be reasonably ant1c1pated such as a fire, theft and earthquake Electronically maintained data/records shall be protected, backed up and stored at a separate site from the original data All records shall be maintained for five (5) years, and shall continue to be available for five (5) years after the expiration of this Agreement, unless a shorter retention period 1s spec1f1cally provided in this Agreement (e g, Section 5 2 2 "Complaint Documentation") After minimum holding periods are met, Contractor will notify City 90 days before destroying records Contractor agrees that the records of any and all companies conducting operations addressed in this Agreement shall be provided or made available to City and its official representatives during normal business hours Account histories shall be accessible to the City by computer for a minimum of five (5) years City may review or utilize any of the records described in this section for any purpose whatsoever Such records include, but are not limited to, financial, Solid Waste and Recyclables, CERCLA and Disposal records 88 of 123 B-98 8 2 2 Fmanc1al Records Contractor shall maintain financial records relating to its operations pursuant to this Agreement separate and segregated from such records relating to its other operations Contractor shall maintain at least the following records •Audited financial statements for Contractor, •Financial statements of revenue and expense for this Agreement segregated frqm the other operations qf Contractor including a 9escript1on of segregation methodology (City may require this information to be at least complied 1f requested under Section 6 7 or Section 8 3 5), and, •Complete descriptions of related party transactions (corporate and/or regional management fees, inter-company profits from transfer, processing or Disposal operations) 8 2 3 Sohd Waste and Recyclables Records Contractor shall maintain and make available to the City upon request the following records relating to its operations pursuant to this Agreement a)Customer services and Billing/Service payment records, b)Records of tons Collected, processed, diverted and disposed by waste stream (Refuse, Recycling, Organics), by Customer type (Cart, Bin), and the Fac1lit1es (Transfer Station, MRF, Transformation Facility or landfill) where such material was taken, c)Quantity of Recyclables recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939, AB 341, AB 1826, and SB 1383, d)Bulky Item results and Special Event tonnages, including tons disposed and diverted, e)Routes, f)Fac1lit1es, equipment and personnel used, g)Fac1lit1es and equipment operations, maintenance and repair, h)Number and type of Refuse, Recycling and Organics Containers in service, 89 of 123 B-99 1)Complaints , and, J) Missed pickups 8 2 4 CERCLA Defense Records City views the ability to defend against actions arising under the Comprehensive Environmental Response, Compensation and L1ab1lity Act (CERCLA) and related lit1gat1on as a matter of great importance For this reason, City regards the ability to prove where Solid Waste Collected in Rancho Palos Verdes was taken for Disposal, as well as where It was not t'aken, 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), as well as where Recyclables and Organics Collected in the City were taken for processing and where any residual Refuse was taken for Disposal, for not less than five (5) years following the termination of this Agreement, and agrees to notify City's Risk Administrator and City Attorney at least ninety (90) days before destroying such records thereafter At any time, including after the expIratIon of the Term of this Agreement, Contractor shall provide copies of such records to City within fifteen (15) days of City's request for such records Records shall be in chronological and organized form and readily and easily interpreted The requirements of this section shall survive the expIratIon of the Term 8 2 5 Other Programs' Records Records for other programs shall be tailored to spec1f1c needs In general, they shall include 8 2 6 Audit a)Plans, tasks, and milestones, and, b)Accomplishments in terms such as dates, actIvItIes conducted, quantItIes of products used, produced or distributed, and numbers of partIcIpants and responses City may conduct an audit of Contractor at any time The scope of the audit, and auditing party, will be determined by City and the scope may include, but Is not limited to, compliance with terms of this Agreement, Customer service levels and Buffing, fee payments, Gross Receipts, tonnage, and verif1cat1on of D1vers1on rate The first audit, to be performed during 2024, will be based on the Contractor's reports and records from July 1 2022 through calendar year 2023 Audits will be performed every third year thereafter, (e g , the audit performed during 2026 will be based upon revenue from calendar years 2024 and 2025) Contractor will reimburse the City the cost of such audits (including audits conducted by City staff) up to $75,000 for the first audit, and $35,000 for each subsequent audit in 2022 dollars The $35,000 amount shall be increased annually by the change in CPI using the formula for the change in the service component of the 90 of 123 B-100 . rates in Section 6 3 Costs incurred by Contractor for conducting its own route audits, as required under this Agreement, are not included as part of this audit cost Should an audit conducted or authorized by the City disclose that fees payable by Contractor were underpaid by two percent (2%) or more, that tonnage was misreported by 2% or more, or that more than two percent (2%) of the Customers were inaccurately billed based on the auditor's sampling, for the period under review, City may expand the scope of the audit and also recover add1t1onal audit costs from the Contractor 8 2 7 Payments and Refunds ' ' ' Should an audit disclose that fees payable by the Contractor were underpaid or that Customers were overcharged for the period under review, Contractor shall pay to City any underpayment of fees and/or refund to Contractor's Customers or to City, as directed by City, any overcharges within thirty (30) days following the date of the audit Contractor shall pay interest to the City for any underpayment or overcharges at an annual rate of 12% Undercharges shall not be billed in arrears for more than six (6) months of service, with any remaining undercharges absorbed by Contractor Should an audit disclose that fees were overpaid, City shall credit such amounts against future fees payable by Contractor 8 3 Reports 8 3 1 Report Formats and Schedule 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 set rates and evaluate the financial efficacy of operations, b)Evaluate past and expected progress towards achieving AB 939, AB 341, AB 1826, and SB 1383 goals and ob1ect1ves, c)Determine needs for adJustment to programs, and, d)Evaluate Customer service and complaints Contractor may propose report formats that are responsive to the obJect1ves and audiences for each report The format of each report shall be approved by City In add1t1on to submitting all reports on paper, Contractor agrees to submit all reports in an electronic format approved by City, compatible with City's software/computers at no add1t1onal charge 91 of 123 B-101 Reports shall be submitted within thirty (30) calendar days after the end of the reporting period Annual reports for which a date 1s not otherwise spec1f1ed in this Agreement shall be submitted within thirty (30) calendar days after the end of the calendar year If requested, Contractor's complaint summary, described in Section 5 2 2, shall be sent to the City Manager w1th1n five (5) Working Days of request All reports shall be submitted to City Manager (or designated representative) City of Rancho Palos Verdes 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 8 3 2 Monthly Reports The information listed below shall be the minimum reported for the preceding month a)Warning notices issued for contaminated Recyclables and Organics Containers 8 3 3 Quarterly Reports Quarterly Report should contain at a minimum the information required in the monthly report and include the following a)Solid Waste and Recyclables Collected by Contractor for each month, sorted by type of Solid Waste Collected and diverted (Refuse, Construction and Demolition Waste, Organics) or Recyclables in tons (including contam1nat1on and D1vers1on rates for each waste stream and Customer type), Customer type (Cart, Bin) and 1dent1fying by tonnage and type the Fac11it1es where the Solid Waste or Recyclables were processed or disposed b)Quantity of Recyclables recovered by material type, as well as quantity of material diverted from landfills in compliance with AB 939, AB 341, AB 1826, and SB 1383, c)Gross Receipts by sector (Cart, Bin) d)Narrative summary of problems encountered (including scavenging) and actions taken with recommendations for City, as appropriate e)Materials Sales Sales statement showing kinds of material, quantity sold (in tons), and materials reJected for sale 92 of 123 B-102 f)Complaint summary for the quarter summarized by nature of complaints g)Description of Contractor outreach actIvItIes and copies of promotional and public education materials sent during the quarter h)Other information or reports that City may reasonably request or require 8 3 4 Annual Report The Annual Report Is to be essentially in the form and content of the quarterly reports, but shall also include a)A summary of the number of accounts and of Containers in service as of December 31 by size (number of gallons, number of yards), sector (Cart, Bin), service frequency, and type of service (Refuse, Recyclables, Organics, Construction and Demolition Waste) b)Records of tons Collected, processed, diverted and disposed by waste stream (Refuse, Recycling, Organics), by Customer type (Cart, Bin), and the Fac11it1es (Transfer Station, MRF, or landfill) where such material was taken, c)Gross Receipts by sector (Cart, Bin) d)A complete inventory of vehicles used to provide all services, including make, year, type, fuel used, use, California license number and whether or not It Is used as a spare e)Documentation of compliance with all applicable air pollution control laws for each vehicle f)A summary of the number of Containers by size (number of gallons, number of yards) and type of service (Refuse, Recyclables, Organics) g)General information about the Contractor and its most recent annual report h)Copy of Hazardous Waste D1vers1on records showing types and quantItIes, 1f any, of Hazardous Waste that was inadvertently Collected, but diverted from landfilling 1)Number of routes and route hours per day by type of service as of December 31 93 of 123 B-103 J)Operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement k)Documentation supporting that calendar year's D1vers1on rate I)Other information or reports that City may reasonably request or require 8 3 5 Fmanc1al Report the City may, at City's option, request and be provided with Contractor's financial reports for the most recently completed fiscal year in connection with any audit, extraordinary rate adjustment request, or verif1cat1on of other information required under this Agreement Contractor shall be required to provide the City with its audited financial statements only in the event that Contractor requests an extraordinary rate adjustment under Section 6 5 City and Contractor agree to use reasonable efforts to protect the conf1dent1al nature of the Audited Financial Statements, subject to the prov1s1ons of Section 12 16 Financial statements shall include a supplemental combining schedule showing Contractor's results of operations, including the spec1f1c revenues and expenses 1n 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 (GAAP) and audited, in accordance with generally accepted auditing standards (GAAS) by a cert1f1ed 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 add1t1on, Contractor shall provide to City the supplemental schedule on a compiled basis 8 4 Database for SB 1383 Reporting and Implementation Record Contractor shall furnish and maintain a database dedicated to the record keeping requirements of SB 1383 This system shall be capable of assisting the City to maintain all the information required by SB 1383 in a central location as well as providing the City with templates and a shared google environment for gathering data from nonexclusive commercial haulers Contractor shall provide the City with access to the SB 1383 reporting platform Contractor shall provide SB 1383 database at no add1t1onal charge Contractor's database shall maintain, monitor, and report information related to the following SB 1383 Implementation Record requirements •Organic Collection Services •Hauler Program •Contamination M1nim1zat1on •Waivers 94 of 123 B-104 •Education and Outreach •Edible Food Recovery Program •Recycled Organic Waste Procurement •Recycled Paper Procurement •Commercial Edible Food Generators •Inspection and Enforcement Contractor shall work directly with the City to ensure the City receives required information in a timely manner Contractor shall work as a liaison between the City and CalRecycle for the annual conference call, site v1s1ts and preparation of the Electronic Annual Report (EAR) 8 5 Reporting Adverse Information Contractor shall provide City two copies (one to the City Manager, one to the City Attorney) of all reports, pleadings, applications, not1f1cat1ons, Notices of V1olat1on, communications or other material relating in any way to Contractor's performance of services pursuant to this Agreement, submitted by Contractor to, or received by Contractor from, the United States, California Environmental Protection Agency, Cal Recycle, the Securities and Exchange Comm1ss1on or any other federal, state or local agency, including any federal or state court Contractor need not submit routine traffic and parking v1olat1ons Copies shall be submitted to City within thirty (30) days of receipt by Contractor, or sooner 1f reasonably apparent that to do so 1s materially relevant, and any responses by Contractor shall be submitted to City simultaneously with Contractor's filing or subm1ss1on of such matters with these agencies Contractor's routine correspondence to these agencies need not be routinely submitted to City, but shall be made available to City promptly upon City's written request 8 6 Right to Inspect Records City shall have the nght to inspect or review the spec1f1c documents or records required expressly or by inference pursuant to this Agreement, or any other s1m1lar records or reports of Contractor or its Affiliates that City shall deem, in its sole d1scret1on, necessary to evaluate annual reports, compensation applications provided for in this Agreement and Contractor's performance provided for in this Agreement Contractor shall make all records and documents to be reviewed and inspected by City as a part of any audit or other record review conducted by City, available for City's review, inspection and copying within five (5) days of receiving written notice from City requesting the same 8 7 Failure to Report The refusal or failure of Contractor to file any required reports, or to provide required information to City, or the inclusion of any materially false or misleading statement or representation by Contractor in such report shall be deemed a material breach of this Agreement as described in Section 11 1 and shall subJect Contractor to all remedies which are available to the City under this Agreement or otherwise 95 of 123 B-105 9 lndemmf1cat1on, Insurance, Bond and Letter of Credit 9 1 lndemmf1cat1on Contractor hereby agrees to and shall indemnify and hold harmless lndemnitees from and against any and all loss, liability, penalty, damage, costs and fees (including but not limited to all fees and charges of engineers, architects, attorneys and other professionals as well as all Court or other dispute resolution costs, and costs of exh1b1ts, reports and other s1m1lar defense expenses), forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, mJury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and 1n any way connected with (1) the negligence or willful misconduct or intentional acts or om1ss1ons of Contractor, its officers, employees, agents, contractors and/or subcontractors in performing services under this Agreement, (2)the failure of Contractor, its officers, employees, agents, representatives, contractors and/or subcontractors to comply in all respects with the prov1s1ons of this Agreement, Applicable Laws (including, without lim1tat1on, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses, (3) the acts of Contractor, its officers, employees, agents, representatives, contractors and/or subcontractors in performing services under this Agreement for which strict liability 1s imposed by law (including, without lim1tat1on, the Environmental Laws) The foregoing indemnity shall apply to any such loss, liability, penalty, damage, cost, forfeiture, claim, demand, action, proceeding, suit, mJury, death or damage, except that which 1s caused solely by the negligence or willful misconduct of the lndemnitees', provided such willful misconduct or negligence 1s determined by agreement between the parties or by the findings of a court of competent Jurisd1ct1on In instances where an lndemnitee 1s determined by agreement between the parties or by the findings of a court of competent Jurisd1ct1on to have engaged in willful misconduct or been negligent and where the lndemrntees' willful misconduct or negligence accounts for only a percentage of the liability involved, the obligation of Contractor under this Section 9 1 will be for that entire portion or percentage of liability not attributable to the willful misconduct or negligence of the lndemrntee(s) Contractor further agrees to and shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) the lndemrntees against any claims, actions, suits in law or equity or other proceedings, whether Jud1c1al, quas1-Jud1c1al or adm1rnstrat1ve in nature, arising or resulting from any of the aforementioned events, and to reimburse 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 Contractor, upon demand of City, made by and through the City Attorney, shall protect City and appear in and defend the lndemrntees in any claims or actions by third parties, whether Jud1c1al, admm1strat1ve or otherwise, including, but not limited to disputes and lit1gat1on over the def1rnt1ons of "Solid Waste" or "Recyclables," the scope of the rights granted in this Agreement, conflicts between the rights granted in this Agreement and 96 of 123 B-106 . rights asserted by other Persons, or the limits of City's authority with respect to the grant of licenses, or agreements, exclusive or otherwise, or asserting rights under the United States or California Const1tut1ons or any federal or state law to provide Solid Waste Collection Services in the Service Area THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE GIVEN THE BROADEST POSSIBL E INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT 9 2 Hazardous Substances lndemmf1cat1on . . . A Without regard to any insurance coverage or requirements, and without limiting the above general indemnif1cat1on obligation in any way, Contractor spec1f1cally agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold harmless the lndemnitees from and against any and all claims, actions, hab1ht1es, damages, demands, Judgments, losses, costs, hens, 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 response costs, investIgatIve costs, assessment costs, monitoring costs, treatment costs, clean-up costs, removal costs, remed1at1on costs, and s1m1lar 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 lndemnitee Is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remed1ate, or otherwise clean-up, any Hazardous Contaminant (as defined in this Agreement), 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 hm1tat1on, to 1 any Claims brought pursuant to or based on the provIsIons of any Environmental Law, 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 of Contractor of any Facility, 97 of 123 B-107 3 any Claims based on or arising out of or alleged to be arising out of the marketing, sale, d1stribut1on, 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 1rrespect1ve of the negligence or willful misconduct of Contractor or any Affiliate of Contractor D For purposes of this section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste, any crude 011 or refined or unrefined petroleum product or any fraction or derivative, and any asbestos or asbestos­ containing material The term "Hazardous Contaminant" shall also include any substances added by any and all amendments to any Environmental Laws defining the terms in the prior sentence, whether made before or after the date of execution of this Agreement E In the event that the City exercises its right in writing under Section 4 8 to direct Contractor to use a Disposal Site other than a site approved in this Agreement, and that site 1s not owned or operated by Contractor, this indemnif1cat1on shall not apply for the tonnage directed by the City to this Disposal Site F 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 9 3 lndemmf1cat1on -Failure to Meet D1vers1on Requirements A To the extent authorized by law, Contractor agrees to indemnify and hold harmless City from and against all fines and/or penalties imposed by Cal Recycle in the event the source reduction and Recycling goals or any other requirement of AB 939, AB 341, AB 1826, and SB 1383 are not met by City with respect to the waste stream Collected under this Agreement B Contractor warrants and represents that 1t 1s familiar with City's waste characterization study as set forth in City's Source Recovery and Recycling Element (SRRE), and that 1t has the ability to and will provide sufficient programs and services to ensure City will meet or exceed the D1vers1on requirements (including, without lim1tat1on, amounts of Solid Waste to be diverted, time frames for D1vers1on, and any other requirements) set forth in AB 939, AB 341, AB 1826, and SB 1383, with respect to that portion of the Solid Waste and Recyclables generated in the City that 1s the subJect of this Agreement 98 of 123 B-108 C Contractor agrees to protect and defend lndemnitees with counsel selected by Contractor and approved by City, to pay all costs and fees (including, without lim1tat1on, fees and charges of engineers, architects, attorneys and other professionals, and costs of exh1b1ts, reports and other s1m1lar defense expenses) and to indemnify and hold lndemnitees harmless from and against all fines or penalties imposed by CalRecycle 1f the D1vers1on goals spec1f1ed in California Public Resources Code Section 41780 as of the date of this Agreement and hereafter throughout are not met by the City with respect to the Solid Waste and Recyclables Collected by Contractor and 1f the lack in meeting such goals are attributable to the failure of the Contractor to implement and operate the Recycling or D1vers1on programs or undertake the related actIvItIes required by this Agreement 9 4 Insurance 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 indemnif1cat1on obligations, or any other obligations as set forth in this Agreement A Mm1mum Scope of Insurance Coverage shall be at least as broad as 1 Insurance Services Office Commercial General L1ab1hty form CG 00 01, or current equivalent as approved by the Insurance Services Office 2 Insurance Services Office form number CA 00 01 covering Automobile L1ab1hty, code 1 "any auto" and endorsement CA 00 25 3 Workers' Compensation insurance as required by the Labor Code of the State of California and Employers L1ab1hty insurance B Mm1mum L1m1ts of Insurance Contractor shall maintain in force for the Term limits no less than 99 of 123 B-109 1 Comprehensive General L1ab1lity Ten M1ll1on Dollars ($10,000,000) limit aggregate and Five Million Dollars ($5,000,000) hm1t per occurrence for bodily injury, personal injury and property damage 2 Automobile L1ab1hty Ten Million Dollars ($10,000,000) hm1t aggregate and Five Million Dollars ($5,000,000) hm1t per accident for bodily injury and property damage 3 Environmental Impairment L1ab1hty Three Million Dollars ($3,000,000) limit aggregate 4 Workers' Compensation and Employers L1ab1hty Workers' compensation hm1ts as required by the Labor Code of the State of Cahforrna or provide evidence of State approval to be self-insured and Employers L1ab1lity hm1ts of $1,000,000 per accident 5 Crime Insurance Policy/Fidelity Bond Contractor shall secure and maintain during the life of this contract a blanket fidelity bond or proof of crime insurance policy from a company doing business 1n the State of California on all personnel in its employment The bond or policy shall be issued in the amount of at least $1,000,000 per occurrence Said bond shall protect City from any losses sustained through any fraudulent or dishonest act or acts committed by any employees of the provider and subcontractors, 1f any Proof of coverage must be submitted to City within 60 calendar days after execution of the contract and pnor to the delivery of services Proof of the fidelity bond or crime insurance policy shall be submitted to the agency annually during the contract renewal period C Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by City, which approval shall not be unreasonably withheld If, in the reasonable opinion of the City, Contractor does not have suff1c1ent f1nanc1al resources to pr otect 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 retentions as respects City, its offlc1als, employees and agents, or Contractor shall procure a bond guaranteeing payment of losses and related invest1gat1ons, claim adm1rnstrat1on and defense expenses D Other Insurance Prov1s1ons The policies are to contain, or be endorsed to contain, the following prov1s1ons 100 of 123 B-110 1 General L1ab1hty and Automobile L1ab1hty Coverages a)City, its elective and appointive boards, comm1ss1ons, offlc1als, employees, agents and volunteers are to be named as add1t1onal insureds as respects hab1hty arising out of act1v1t1es performed by or on behalf of Contractor, products and completed operations of Contractor, Premises owned, leased or used by Contractor, or vehicles owned, leased, hired or borrowed by Contractor The coverage shall contain 0 0 no special hm1tat1ons on the scope of protection afforded to City, its elective and appointive boards, comm1ss1ons, officials, employees, agents or volunteers b)Contractor's insurance coverage shall be primary insurance as respects City, its elective and appointive boards, comm1ss1ons, officials, employees, agents and volunteers Any insurance or self-insurance maintained by City, its officials, elective and appointive boards, comm1ss1ons, employees, agents or volunteers shall be excess of Contractor's insurance and shall not contribute With It c)Any failure to comply with reporting prov1s1ons of the pohc1es shall not affect coverage provided to City, its officials, elective and appointive boards, comm1ss1ons, employees, agents or volunteers d)Coverage shall state that Contractor's insurance shall apply separately to each insured against whom claim 1s made or suit 1s brought, except with respect to the hm1ts of the insurer's hab1hty 2 Workers' Compensation and Employers L1ab1hty Coverage -The insurer shall agree to waive all rights of subrogation against City, its off1c1als, elective and appointive boards, comm1ss1ons, employees, agents and volunteers for losses arising from work performed by Contractor for City 101 of 123 B-111 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 1n coverage or in limits except after thirty (30) days' prior written notice by cert1f1ed mail, return receipt requested, has been given to City E Accept ability 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 ed1t1on of Best's Insurance Reports of size category VII or larger and a rating class1f1cat1on of A or better F Venf1cat1on of Coverage Simultaneously with the execution of this Agreement, Contractor shall furnish City cert1f1cates of each policy of insurance required hereunder, in form and substance satisfactory to City The cert1f1cates and endorsements for each insurance policy are to be signed by a Person authorized by that insurer to bind coverage on its behalf Such cert1f1cates shall show the type and amount of coverage, effective dates and dates of exp1rat1on of policies and shall have all required endorsements The cert1f1cates and endorsements are to be on forms provided by or acceptable to City and are to be received and approved by City before work starts If City requests, copies of each policy, together with all endorsements, shall also be promptly delivered to City Renewal cert1f1cates will be furnished periodically to City to demonstrate maintenance of the required coverage throughout the Term G Contractors and Subcontractors Contractor shall include all contractors and subcontractors as insureds under its pohc1es or shall furnish separate cert1f1cates and endorsements for each contractor and subcontractor All coverages for contractors and subcontractors shall be subJect to all of the requirements stated 1n this Agreement H Required Endorsements 1 Insurance policies shall contain an endorsement 1n substantially the following form 102 of 123 B-112 "Thirty (30) days pnor written notice by cert1f1ed mail, return receipt requested, shall be given to City in the event of cancellation, reduction in coverage, or non-renewal of this policy Such notice shall be sent to City Manager City of Rancho Palos Verdes 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 2 "City, its public offlc1als, officers, employees, consultants, agents, volunteers, and independent contractors serving in the role of City officials are add1t1onal insureds on this policy 11 3 "This policy shall be considered pnmary insurance as respects any other vahd and collectible insurance ma1nta1ned by Crty, including any self-insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only 11 4 "Inclusion of City as an insured shall not affect City's nghts as respects any claim, demand, suit or Judgment brought or recovered against Contractor This policy shall protect Contractor and City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase Contractor's hab1lrty as set forth 1n the policy beyond the amount shown or to which Contractor would have been liable 1f only one party had been named as an insured " I Other Insurance Requirements 1 In the event any services are delegated to another company or subcontractor, Contractor shall require such Contractor or subcontractor to provide statutory workers' compensation insurance and employer's liability insurance for all of the Contractor or subcontractor's employees engaged in the work 1n accordance with this Section 9 4 The liability insurance required by this Section 9 4 shall cover all Contractor or subcontractors or the Contractor or subcontractor must furnish evidence of insurance provided by 1t meeting all of the requirements of this Section 9 4 103 of 123 B-113 2 Contractor shall comply with all requirements of the insurers issuing pohc1es The carrying of insurance shall not relieve Contractor from any obhgat1on under this Agreement If any claim exceeding the amount of any deductibles or self-insured reserves Is made by any third Person against Contractor or any Contractor or subcontractor on account of any occurrence related to this Agreement, Contractor shall promptly rep ort the facts In writing to the insurance earner and to City If Contractor fails to procure and maintain any insurance required by this Agreement, City may take out and maintain, at Contractor's expense, such insurance as It may deem proper and deduct the cost of that insurance from any moneys due Contractor 9 5 Faithful Performance Bond Concurrently with execution of this Agreement, Contractor shall deliver to City a performance bond in the sum of the amount of One M1lhon Seven Hundred Thousand Fifty Dollars ($1,750,000), s1m1lar in form to that attached hereto as Exh1b1t 4, which secures the faithful performance of this Agreement, including, without lim1tat1on, payment of any penalty and the funding of any work to cure a breach of this Agreement, unless such requirement Is waived by the City Manager The performance bond shall be executed by a surety company licensed to do business in the State of California, having an A VII or better rating, and approved by the City, and included on the list of surety companies approved by the Treasurer of the United States The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a cert1f1ed and current copy of his or her power of attorney The bond shall be uncond1t1onal and remain in force during the entire Term, and during the contInuatIon period after the Term as provided in Section 9 9 9 6 Faithful Performance Letter of Credit In add1t1on to the performance bond required by Section 9 5 above, Contractor shall furnish an irrevocable letter of credit in the amount of Two Hundred Fifty Thousand Dollars ($250,000), from a financial instItutIon acceptable to the City and in a form acceptable to the City Attorney as security for the performance of this Agreement (the "LOG") The LOG shall be the sole respons1b1hty of Contractor The LOG shall be remain in force during the entire Term, and during the contInuatIon period after the Term as provided in Section 9 9 The LOG shall be released within thirty (30) days after both (1) the expiration of the continuation period provided in Section 9 9, or upon the earlier termination of this Agreement, and (11) Contractor's satisfactory performance of all obligations hereunder 104 of 123 B-114 9 7 Forfeiture of Performance Bond 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 performance bond which 1s necessary to recompense and make whole the City forfeited to the City Upon partial or full forfeiture of the performance bond, Contractor shall restore the performance bond to its face amount within thirty (30) days of the City's declaration Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of this Agreement 9 8 Forfeiture of Letter Of Credit , Thirty (30) days following City providing Contractor with written notice of its failure to pay City any amount owing under this Agreement, City may draw upon the LOG for purposes including, but not limited to a Payment of sums due under the terms of this Agreement which Contractor has failed to timely pay to City b Reimbursement of costs borne by City to correct v1olat1ons of this Agreement not corrected by Contractor, including but not limited to the liquidated damages described in Section 11 3 City may draw upon the entire LOG and convert 1t to a cash deposit 1f Contractor fails to cause the LOG to be extended or replaced with another satisfactory letter of credit no later than 60 days prior to its expiration during the Term of this Agreement 9 9 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term and other requirements, such as minimum D1vers1on rates per Section 4 3 6, will not be substantiated until after the final service date Therefore, the Contractor shall not terminate the performance bond or letter of credit, and will renew them to ensure continuous availability to the City, until receiving a written release from the City Any performance bond or letter of credit will automatically expire at the end of 36 months after the end of the Term Perm1ss1on from the City to discontinue holding these performance securities does not relieve Contractor of payments to the City that may be due, or may become due 105 of 123 B-115 10 City's Right to Perform Service 10 1 General In the event that Contractor, for any reason whatsoever, fails, refuses or 1s unable to Collect, Recycle, process, transport or dispose of any or all Solid Waste or Recyclables as required by this Agreement, at the time and m the manner provided 1n this Agreement, for a period of more than forty-eight (48) hours, and 1f, as a result, Solid Waste should accumulate m the City to such an extent, m such a manner, or for such a time that such accumulation endangers or menaces the public health, safety or welt are, then City shall have the right, but not the obhgat1on, (1) to perform, or cause to be performed, such services itself with its own or other personnel without liability to Contractor, and/or (2) to take possession of any or all of Contractor's land, equipment and other property used or useful in the Collection and transportation of Solid Waste and Recyclables, and to use such property to Collect and transport any Solid Waste and Recyclables generated within the City which Contractor would otherwise be obligated to Collect, transport and properly dispose of or process pursuant to this Agreement Notice of City's determination to effect its rights under this Section may be given orally by telephone to Contractor at its principal office and shall be effective 1mmed1ately Written conf1rmat1on of such oral not1f1cat1on shall be sent to Contractor within twenty-four (24) hours of the oral not1f1cat1on Contractor further agrees that in such event 1 It will take d1rect1on from City to effect the transfer of possession of equipment and property to City for City's use, or for use by any Person or entity designated by the City 2 It will, 1f City so requests, keep in good repair and cond1t1on all of such equipment and property, provide all motor vehicles with fuel, 011 and other service, and provide such other service as may be necessary to maintain this property m operational cond1t1on 3 City may 1mmed1ately engage all or any personnel necessary or useful for the Collection and transportation of Sohd Waste and Recyclables, 1nclud1ng, rt' City so desires, employees previously or then employed by Contractor Contractor further agrees, rt' City so requests, to furnish City the services of any or all management or office Personnel employed by Contractor whose services are necessary or useful for Sohd Waste and Recyclables Collection, transportation, processi ng and Disposal operations and for the B1lhng and CollectJon of fees for these services City agrees that 1t assumes respons1b1hty for the proper and normal use of such equipment and fac1ht1es while in its possession 106 of 123 B-116 If the interruption or discontinuance in service 1s caused by any of the reasons listed in Section 11 4, City shall pay to Contractor the reasonable rental value of the equipment and fac11it1es, possession of which 1s taken by City, for the period of City's possession, 1f any, which extends beyond the period of time for which Contractor has rendered Bills in advance of service, for the class of service involved If the interruption or discontinuance in service 1s caused by any other reason, regardless of City's 1mplementat1on of options under this agreement, City may consider this a default 1 O 2 B1lhng and Compensation to City During City's Possession O O O 0 Contractor agrees that 1t shall reimburse City for any and all costs and expenses incurred by City, beyond that billed and received by City, in taking over possession of the above­ mentioned equipment and property for Solid Waste and Recyclables service in such manner and to an extent as would otherwise be required of Contractor under the terms of this Agreement Such reimbursement shall be made from time to time after subm1ss1on by City to Contractor of each statement listing such costs and expenses, but in no event later than five (5) Working Days from and after each such subm1ss1on 1 O 3 City's Right to Relinquish Possession It 1s further mutually agreed that City may at any time at its d1scret1on relinquish possession of any or all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the Solid Waste Collection Services as provided in this Agreement, whereupon Contractor shall be bound to resume the same 10 4 City's Possession Not a Taking The Parties agree that City's exercise of its rights under this Article ( 1) does not constitute a taking of private property for which compensation must be paid, (2) shall not create any liability on the part of City to Contractor, and (3) does not exempt Contractor from any of the indemnity and insurance prov1s1ons of this Agreement, which are meant to extend to circumstances arising under this section provided that Contractor 1s not required to indemnify City against claims and damages arising from the sole negligence of City, its public officials, officers, employees, consultants, agents, volunteers, and independent contractors serving in the role of City officials in the operation of Collection Vehicles during the time City has taken possession of such vehicles 10 5 Duration of City's Possession City's right pursuant to this Article to retain temporary possession of Contractor's fac11it1es and equipment, and to render Collection services, shall terminate whe� City determines that such services can be resumed by Contractor, or when City no longer reasonably requires such property or equipment In any case, City has no obligation to maintain possession of Contractor's property or equipment and/or continue its use for any period of time and may at any time, in its sole d1scret1on, relinquish possession to Contractor 107 of 123 B-117 . 11 Default, Remedies and L1qu1dated Damages 11 1 Events of Default All prov1s1ons of this Agreement to be performed by Contractor are considered material Each of the following shall constitute an event of default by the Contractor A Fraud or Deceit or M1srepresentat1on If the Contractor engages in, or attempts to practice, any fraud or deceit upon City or makes a m1srepresentat1on regarding material information to City B' Insolvency or Bankruptcy If Contractor becomes insolvent, unable,' or unwilling to pay its debts, files a bankruptcy pet1t1on or takes steps to liquidate its assets C Failure to Mamtam Coverage If Contractor fails to provide or maintain 1n full force and effect the Workers' Compensation, liability, or indemrnf1cat1on coverage as required by this Agreement, or 1f Contractor fails to provide or maintain in full force and effect the faithful performance bond and faithful performance letter of credit required by Sections 9 5 and 9 6 of this Agreement D V1olat1ons of Regulations If Contractor violates any order, rule or regulation of any regulatory body having 1urisd1ct1on over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted 1n good faith, in which case no breach of this Agreement shall be deemed to have occurred until a final dec1s1on adverse to the Contractor 1s entered E Failure to Perform If Contractor ceases to provide all or a portion of the Collection, processing or Recycling services, or any other Solid Waste Collection Services as required under this Agreement for a period of two (2) consecutive days or more, for any reason within the control of Contractor This includes, without lim1tat1on, any failure to perform by Contractor due to labor unrest, including strike, work stoppage or slowdown, sickout, picketing, or other concerted Job action, 1f not excused pursuant to Section 11 4 F Failure to Pay If Contractor falls to make any payments required under this Agreement and/or refuses to provide City, within ten (10) days of the demand, with required information, reports, and/or records in a timely manner as provided for in this Agreement G Failure to Cooperate with Audits Failure to complete, perform or cooperate with any audit as described by this Agreement H Failure to Submit Reports or Documentation Failure to complete or to provide required reports or documents to City as required by this Agreement 108 of 123 B-118 . Acts or Om1ss1ons Any act or om1ss1on by Contractor relative to the services provided under this Agreement which violates the terms, cond1t1ons, or requirements of this Agreement, or AB 939, AB 341, AB 1826, and SB 1383, or any Applicable Law Any failure to correct or remedy any such v1olat1on within the time set in the written notice of the v1olat1on or, 1f Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, 1f Contractor should fail to start to correct or remedy such v1olat1on within the time set forth in such notice and diligently effect such correction or remedy thereafter J Crimes Any s1tuat1on in which Contractor or any of its officers, directors or employees are found guilty of any crime related to the performance of this Agreement, or of any crime related to anti-trust act1v1t1es, illegal transport or Disposal of hazardous or toxic materials, or bribery of public officials The term "found guilty" shall be deemed to include any Jud1c1al determ1nat1on that Contractor or any of Contractor's officers, directors or employees 1s guilty as well as any adm1ss1on of guilt by Contractor or any of Contractor's officers, directors or employees including, but not limited to, the plea of "guilty", "nolo contendere", "no contest", and "guilty to a lesser charge " K False or M1sleadmg Statements Any representation or disclosure made to City by Contractor in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure 1s made, whether or not any such representation or disclosure appears as part of this Agreement L Attachment The seizure of, attachment of, or levy on, the operating equipment of Contractor, including, without limits, its equipment, maintenance or office fac1lit1es M Suspension or Termination of Service Any termination or suspension of the transaction of business by Contractor lasting more than two (2) consecutive days This includes, without lim1tat1on, any termination or suspension of the transaction of business by Contractor due to labor unrest, including strike, work stoppage or slowdown, sickout, p1cket1ng, or other concerted Job action, 1f not excused pursuant to Section 11 4 109 of 123 B-119 N Failure to Provide Assurance of Performance If Contractor fails to provide reasonable assurances of performance as required under Section 11 6 0 Commmghng of Recyclables with Refuse/Landf1llmg of Recyclables If Contractor empties a Container of properly set out Recyclables or Organics into a Refuse load, or transports Recyclables or Organics to a landfill or other location at which the material will not be diverted from landfilling P Failure to Meet 50% D1vers1on Goal Contractor fails to divert at least 50% of all• Solid Waste 1t Collects', per Section 4 3 6, for two consecutive calendar ye'ars Contractor shall have forty-eight (48) hours from the time 1t 1s given not1f1cat1on by City to cure any default arising under subsections C, E, F, G, H, I, K, L, M and N provided, however, that City shall not be obligated to provide Contractor with a notice and cure opportunity 1f Contractor has committed the same or s1m1lar breach within a twenty-four (24)month period Contractor acknowledges that 1t 1s not entitled to receive notice of default, or to cure such default, with respect to those matters listed in subsections A, B, D, Kand P above 11 2 Right to Terminate Upon Default and Right to Spec1f1c Performance If Contractor commits a material breach, including spec1f1cally any of the matters listed in subsections A through P of Section 11 1 above (and, 1f permitted to cure, does not cure 1t within the forty-eight (48) hours), City shall be entitled to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other cond1t1ons 1t deems appropriate short of term1nat1on) as 1t shall deem proper Should City decide to terminate this Agreement upon a default by Contractor, City shall have the right to do so upon giving ten (10) days notice to Contractor, and shall not be required to take any further action (such as holding any hearing, bringing any suit or taking any other action ) City's rights to terminate this Agreement and to take possession of Contractor's Facility and/or equipment are not exclusive, and City's term1nat1on of this Agreement shall not constitute an election of remedies Instead, such remedies shall be in add1t1on to any and all other legal and equitable rights and remedies that City may have By virtue of the nature of this Agreement, the urgency of timely continuous and high­ quality service, the time required to effect alternative service, and the rights granted by City to Contractor, the remedy of damages for a breach of this Agreement by Contractor 1s inadequate and City shall be entitled to seek in1unct1ve relief and/or spec1f1c performance of any breach of this Agreement 11 3 L1qu1dated Damages A General City finds, and Contractor agrees, that as of the time of the execution of 11 O of 123 B-120 this Agreement, 1t 1s 1mpract1cal, 1f not 1mposs1ble, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of certain spec1f1c obligations under this Agreement The factors relating to the 1mpract1cab1hty of ascertaining damages include, but are not limited to, the fact that (1) substantial damage results to members of the public who are denied services or denied quality or reliable service, (11) such breaches cause inconvenience, anxiety, frustration, and depnvat1on of the benefits of this Agreement to 1nd1v1dual members of the general public for whose benefit this Agreement exists, in sub1ect1ve ways and in varying degrees of intensity which are incapable of measurement m precise monetary terms, (111) 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 1s 1mposs1ble to calculate in precise monetary terms, and (1v) the term1nat1on of this Agreement for such spec1f1c breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches B Service Performance Standards, L1qu1dated Damages for Failure to Meet Standards The parties further acknowledge that consistent, reliable Solid Waste and Recyclables Handling Service 1s 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 1t The Parties further recognize that some quant1f1ed standards of performance are necessary and appropriate to ensure consistent and reliable service and performance The Parties further recognize that 1f 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 1t 1s and will be 1mpract1cal and extremely d1ff1cult to ascertain and determine the exact amount of damages that City will suffer Therefore, without pre1ud1ce to City's nght to treat such breaches as an event of default under this Article 11, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages for such spec1f1c breaches, cons1dern 19 all of ti 1e circumstances existing on the date of this Agreement, including the relat1onsh1p of the sums to the range of harm to City that reasonably could be ant1c1pated and the ant1c1pat1on that proof of actual damages would be costly or 1mpract1cal In placing their in1t1als at the places provided, each party spec1f1cally confirms the accuracy of the statements made above and the fact that each party has had ample opportunity to consult with legal counse 1 and obtain an explanation of the liquidated damage prov1s1ons at the t1r,ne that the Agreement was made Contractor & City 1$ Initial Her� Initial Here ____ Contractor agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below 111 of 123 B-121 1 Collection Reliability For each failure to start service to a new Customer account w1th1n seven (7) days after order, which exceeds five (5) such failures annually $100 00 For each failure, which exceeds ten (10) such failures annually, to Collect Solid Waste and/or Recyclables from any established Customer account on the scheduled Collection day and not make up the Collection w1th1n the time allotted per Section 4 6 2 $100 00 • 2 Collection Quality For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic 1mped1ments or to place Containers upright which exceeds ten (10) such occurrences annually $50 00 For each occurrence of excessive noise or discourteous behavior $250 00 For each occurrence of Collecting Solid Waste and/or Recyclables during unauthorized hours which exceeds ten (10) such occurrences annually $100 00 For each occurrence of damage to private property that exceeds five (5) such occurrences annually $250 00 For each failure to clean up Solid Waste and/or Recyclables spilled from Solid Waste and/or Recyclables Containers within ninety (90) minutes that exceeds ten (10) such failures annually $100 00 3 Customer Responsiveness For each failure to in1t1ally respond to a Customer complaint within one (1) Working Day, and for each add1t1onal day in which the complaint 1s not addressed, which exceed a cumulative total for all Customers of ten (10) such days annually $50 00 For each failure to process Customer complaints as required by Article 5, which exceed a cumulative total for all Customers of ten (10) such failures annually $50 00 For each failure to remove graffiti from Containers, or to replace with Containers bearing no graff1t1, within two (2) Working Days of request from City or Customer $ 50 00 per day For each failure to repair or replace a damaged or missing Container within two (2) Working Days of request from City or Customer $ 50 00 per day 112 of 123 B-122 For each failure to process a claim for damages within thirty (30) days from the date submitted to Contractor $50 00 For each add1t1onal thirty (30) day increment of time in which Contractor has failed to resolve a claim for damages within thirty (30) days from the claim date $50 00 4 D1vers1on Efforts For every Green Cart or Blue Cart Collected as Refuse without issuing a red tag per Section 4 3 4 $50 per Cart 5 Timeliness of Subm1ss1ons to City 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 Monthly Reports $50 per day Quarterly Reports $50 per day Annual Reports $100 per day 6 Accuracy of B1ll1nq Each Customer invoice that Is not prepared in accordance with the Rate Schedule, in excess of ten (10) such invoices annually $25 per invoice 7 Cooperation with Service Provider Trans1t1on For each day routing information requested by City in accordance with Section 12 8 Is received after City-established due dates, both for preparation of a request for proposals and for new service provider's 1mplementat1on of service $1,000/day For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste and/or Recyclables Containers Is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12 8 $1,000/ day For delay in not meeting the requirements contained In Sections 4 13 and 12 8 in a timely manner, in add1t1on to the daily liquidated damages for breach under ?(a) and 7(b) above, liquidated damages of $10,000 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 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 inc1dent(s)/non-performance 113 of 123 B-123 Contractor may review (and make copies at its own expense) all information in the possession of City relating to inc1dent(s)/non-performance Contractor may, within ten (10)days after receiving the notice, request a meeting with City Contractor may present evidence in wntIng and through testimony of its employees and others relevant to the inc1dent(s)/non-performance City will provide Contractor with a written explanation of its determination on each inc1dent(s)/non-performance pnor to authorizing the assessment of liquidated damages The dec1s1on of City shall be final C Amount 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 D T1mmg 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 the performance bond required by this Agreement or find Contractor in default and terminate this Agreement pursuant to Section 11 2, or both 11 4 Excuse from Performance The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other natural disasters, war, c1v1I insurrection, nots, acts of any government (including Jud1c1al action), and other s1m1lar catastrophic events which are beyond the control of and not the fault of the party claiming excuse from performance hereunder Labor unrest, including, but not limited to, strike, work stoppage or slowdown, sick-out, picketing, or other concerted Job action conducted by Contractor's employees or directed at Contractor Is excused from performance only to the extent that the following requirements are met •Contractor provides a contingency plan to the City pnor to the execution of this Agreement demonstrating how services will be provided during the period of labor unrest The contingency plan Is subJect to City approval and Contractor shall amend the plan until It meets City requirements, including reasonably demonstrating how City's basic Collection and sanitary needs will be met to the City's sat1sfact1on •Contractor shall meet all requirements of this plan or City may choose to revoke this excuse from performance offered under this Agreement and may choose to use enforcement provIsIons under this Agreement, including Sections 11 1, 11 2 and 11 3, in which case Contractor Is not excused from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events The party claiming excuse from performance shall, within two (2) days after such party has notice of such cause, give the other party notice of the facts constituting such cause and asserting its claim to excuse under this section 114 of 123 B-124 The interruption or discontinuance of Contractor's services caused by one (1) or more of the events excused shall not constitute a default by Contractor under this Agreement Notwithstanding the foregoing, however, 1f Contractor Is excused from performing its obligations hereunder for any of the causes listed in this section for a period of ninety (90) days or more, City shall nevertheless have the right, in its sole d1scret1on, to (1) take possession of Contractor's land, equipment and other property and engage Contractor's personnel pursuant to Article 10, or (11) terminate this Agreement by giving ten (10) days' notice 11 5 Notice, Hearing and Appeal of City Breach (} (} 0 (I A Adm1rnstrat1ve 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 adm1rnstrat1ve hearing on the allegation A hearing officer shall be appointed by the City Manager, and the hearing shall occur as soon as reasonably possible, or on such date as mutually agreed by the City Manager The hearing officer shall make an advisory ruling on Contractor's allegations, and suggest a remedy 1f a breach by City Is determined to exist The hearing officer's ruling and recommendations shall become final and binding 1f the Parties so agree in writing within thirty (30) days of the date of notice of the dec1s1on ,s given to both Parties Otherwise, the hearing officer's ruling shall have no further force or effect B 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 start any action against City, in law or equity, in any court, until after an adm1rnstrat1ve hearing as set forth above has been completed, and the above noted 30 day period to accept the hearing officer's dec,s,on has passed, or either City or Contractor has given timely written notice to the other that ,t will not accept the hearing officers dec1s1on C 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 thirty (30) days of the date of the occurrence giving rise to the claim for damages 11 6 Assurance of Performance City may, at ,ts option and in add1t1on to all other remedies ,t may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, in such form and substance as City may require If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City, such failure or refusal shall be an event of default 115 of 123 B-125 12 Other Agreements of the Parties 12 1 Relat1onsh1p of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of City nor as a partner of or Joint venture with City No employee or agent or Contractor shall be or shall be deemed to be an employee or agent of City Except as expressly provided in this Agreement, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste Collection Services performed under this Agreement, and all Persons performing such services Contractor shall be solely responsible for the acts and om1ss1ons of its officers, employees, Affiliates, contractors, subcontractors and agents Neither Contractor nor its officers, employees, Affiliates, contractors, subcontractors and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to City employees by virtue of their employment with City, and Contractor waives any claim 1t may have or acquire to such benefits 12 2 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, including but not limited to the payment of prevailing wages, 1f applicable 12 3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California 12 4 Junsd1ct1on Except for those matters where Federal Courts have exclusive Jurisd1ct1on, any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive Jurisd1ct1on over such lawsuits With respect to venue, the Parties agree that this Agreement 1s made in and will be performed 1n Los Angeles County, Superior Court Southwest Jud1c1al District 12 5 Assignment Except as may be provided for in Article 1 O (City's Right to Perform Service), 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 written consent of City Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement 116 of 123 B-126 For purposes of this section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (1) a sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party, (11) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided such sale, exchange or transfer may result in a change of control of Contractor, (111) any d1ssolut1on, reorganization, consolidation, merger, re­ cap1tallzat1on, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liqu1dat1on or other transaction which results in a change of ownership or control of Contractor, (1v) any assignment by operation of law, including those resulting from mergers or acqu1s1t1ons 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 1n related or contemporaneous transactions) which has the effect of any such transfer or change of ownership, or change of control of 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 spec1f1ed in this Agreement based on (1) Contractor's experience, skill and reputation for conducting its Solid Waste Collection Services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste and Recyclables 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 If Contractor requests City's cons1derat1on of and consent to an assignment, City may deny or approve such request in its sole and absolute d1scret1on Any request for an assignment must be approved by the City Council, 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 1f approved, made reasonable assurances that 1t will meet) the following requirements a)Contractor shall pay City its reasonable expenses for attorney's fees and invest1gat1on costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a cond1t1on for approving any such assignment An advance payment of fifty thousand dollars ($50,000) towards expenses shall be paid to City prior to City cons1derat1on of any assignment request and Contractor shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of this deposit amount, regardless of whether City consents to the assignment 117 of 123 B-127 . b)Contractor shall pay the City a transfer fee equal to one percent (1 %) of the Gross Receipts 1t, or its assignee, will receive during the remaining Term, as estimated by City This transfer fee shall be waived for a transfer to an affiliate For purposes of this subsection, "affiliate" means an entity under the same management and Control as EDCO Disposal Corporation (the original contracting party) As used in this subsection, "Control" means the possession, direct or indirect, of the power to direct or cause the d1rect1on of the management and policies of a corporation, partnership, Joint venture, trust, or other assoc1at1on c)Contractor shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the 1mmed1ately preceding three (3) operating years d)A proforma f1nanc1al statement (income statement and balance sheet) for the proposed assignee with the proJected results of operations assuming that the assignment 1s completed Such proforma financial statement shall reflect any debt to be incurred by the assignee as part of the acqu1s1t1on of Contractor's operations e)Contractor shall furnish City with satisfactory proof (1) that the proposed assignee has at least ten (10) years of Solid Waste and Recyclables management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement, (11) that in the last five (5) years, the proposed assignee has not suffered any significant c1tat1ons or other censure from any federal, state or local agency having 1urisd1ct1on over its Solid Waste Collection operations due to any s1gnif1cant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with a complete list of any such c1tat1ons and censures, (111)that the proposed assignee has at all times conducted ,ts operations in an environmentally safe and consc1ent1ous fashion, (1v) that the proposed assignee conducts ,ts Solid Waste Collection Services in accordance with sound Solid Waste and Recyclables management practices in full compliance with all federal, state and local laws regulating the Collection and Disposal of Solid Waste and Recyclables including Hazardous Substances and Hazardous Waste, and, (v) of any other information required by City to ensure the 118 of 123 B-128 proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner Under no circumstances shall City be obliged to consider any proposed assignment by City 1f Contractor Is in default at any time during the period of cons1derat1on Should City consent to any assignment request, such assignment shall not take effect until all cond1t1ons relating to City's approval have been met In the event of any permitted assignment, the assignee shall fully assume all the liab1ht1es of the Contractor For purposes of this Section, the term "Assignment" shall refer to the proposed transferee(s) or other successor(s) in interest pursuant to the assignment Intra-family transfers of stock are spec1f1cally excluded'from the Assignment provIsIon and shall not be subJect to City cons1derat1on and consent 12 6 Contracting or Subcontracting Contractor shall not engage any contractors or subcontractors for the Collection, transfer, processing, Recycling or Disposal of Solid Waste or Recyclables 12 7 Binding on Assigns The provIsIons of this Agreement shall inure to the benefit to and be binding on the permitted assigns (1f any) of the Parties 12 8 Cooperation in Preparation for Termination or Exp1rat1on of Contract Prior to, and 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 Solid Waste Collection 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 City following termination shall be conclusively presumed to be grounds for spec1f1c performance of this covenant and/or other equitable relief necessary to enforce this covenant Contractor shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures Contractor shall be responsible for coordinating transfer 1mmed1ately after Contractor's final pickups, so as not to disrupt service Contractor shall provide City with detailed route 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, and provide an updated list two weeks before the transItIon and a final list of changes the day before the transItIon Contractor shall provide means of access to the new service provider at least one full Working Day prior to the first day of Collection by another party, and always within suff1c1ent time so as not to impede in any way the new service provider from easily servicing all Containers 119 of 123 B-129 . 12 9 Parties m Interest Nothing in this Agreement, whether express or implied, 1s intended to confer any rights on any Persons other than the Parties to 1t and their representatives, successors and permitted assigns 12 10 Waiver The waiver by either party of any breach or v1olat1on of any prov1s1ons of this Agreement shall not be deemed to be a waiver of any breach or v1olat1on of any other prov1s1on nor of any subsequent breach of v1olat1on of the same or any other prov1s1on The subsequent acceptance by either Party of any moneys that become due hereunder shall not be deemed to be a waiver of any pre-ex1st1ng or concurrent breach or v1olat1on by the other Party of any prov1s1on of this Agreement 12 11 Contractor's lnvest1gat1on Contractor has made an independent 1nvest1gat1on (satisfactory to Contractor) of the cond1t1ons and circumstances surrounding this Agreement and the work to be performed by It 12 12 Condemnation City fully reserves the rights to acquire Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain This prov1s1on 1s add1t1ve, and not intended to alter the rights of the Parties set forth in Article 1 O 12 13 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows If to City If to Contractor City Manager City of Rancho Palos Verdes 30940 Hawthorne Blvd Rancho Palos Verdes, CA 90275 President EDCO 6670 Federal Blvd Lemon Grove, CA 91945 120 of 123 B-130 The address to which communications may be delivered may be changed from time to time by a written notice given 1n accordance with this section Notice shall be deemed given on the day 1t 1s personally delivered or, 1f mailed, three days from the date 1t 1s deposited in the mail 12 14 City Free to Negotiate with Third Parties City may investigate all options for the Collection, transporting, Recycling, processing and Disposal of Solid Waste and Recyclables for periods during which this Agreement has , expired or been terminated Without limiting the generality of the foregoing, City may solicit proposals from Contractor and from third parties for the prov1s1on of Solid Waste Collection Services which are the subject of this Agreement, including without lim1tat1on Collection services, Disposal services, Recycling services, Organics services and processing, and any comb1nat1on of those services, and may negotiate and execute agreements for such services which will take effect upon the exp1rat1on or earlier termination of this Agreement pursuant to Section 11 1 or otherwise 12 15 Privacy Contractor shall strictly observe and protect the rights of privacy of Customers Information 1dent1fying ind1v1dual Customers or the compos1t1on or contents of a Customer's waste stream shall not be revealed to any Person, governmental umt, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer This prov1s1on shall not be construed to preclude Contractor from preparing, part1c1pating in, or assisting in the preparation of waste characterization studies or waste stream analyses that may be required by AB 939, AB 341, AB 1826, and SB 1383 This prov1s1on shall not apply to reports or records provided to City pursuant to this Agreement 12 16 Public Records, Exempt Information Contractor 1s obligated to permit City inspection of its records on demand and to provide copies to City where requested All documents that are provided to the City will be subject to disclosure 1f requested by a member of the public pursuant to the Public Records Act (Government Code Section 6250 et seq ) There are a very limited number of narrow exemptions to this disclosure requirement If Contractor believes the copies 1t provides to City are exempt from disclosure under the Public Records Act, Contractor must mark the portions considered as such and state the spec1f1c prov1s1ons of the Public Records Act that provides the exemption as well as the factual basis for claiming the exemption City, 1f 1t concurs with Contractor's conclusion, will endeavor to maintain the conf1dent1ality of documents so marked but will not guarantee to do so If the City chooses to withhold records from disclosure at the Contractor's request, and an action 1s brought against the City to force disclosure, the Contractor shall pay all attorney fees and lit1gat1on costs associated with defending that action, including without lim1tat1on, the City's and the prevailing plaintiff's attorney fees and lit1gat1on costs 121 of 123 B-131 . 13 Miscellaneous Prov1s1ons 13 1 Entire Agreement This Agreement contains the entire integrated agreement and understanding concerning the subJect matter in this Agreement and supersedes and replaces any prior negot1at1ons, promises, proposals (including Contractor's Proposal), 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 13 2 Section Headings The article headings and 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 prov1s1ons 13 3 References to Laws and Other Agreements All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recod1f1ed, unless otherwise spec1f1cally provided 13 4 Interpretation This Agreement, including the Exh1b1ts attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party part1c1pated in its drafting Where used 1n this Agreement, "shall" 1s mandatory and "may" 1s perm1ss1ve 13 5 Agreement This Agreement may not be mod1f1ed or amended in any respect except by a writing signed by the Parties 13 6 Severab1llty If any non-material prov1s1on of this Agreement 1s for any reason deemed to be invalid and unenforceable, the invalidity or unenforceab1lity of such prov1s1on shall not affect any of the remaining prov1s1ons of this Agreement, which shall be enforced as 1f such invalid or unenforceable prov1s1on had not been contained in this Agreement 13 7 Exh1b1ts Each of Exh1b1ts 1dent1f1ed as Exh1b1t "1" through "4" 1s attached hereto and incorporated in this Agreement and made a part of this Agreement by this reference 122 of 123 B-132 ' 13 8 Attorneys' Fees If either Party to this Agreement Is required to inItIate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in add1t1on to any other relief which may be granted, whether legal or equitable, shall be entitled to recover its reasonable attorney's fees and costs Attorneys' fees shall include attorney's fees on any appeal, and in add1t1on a Party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depos1t1ons and discovery and all other necessary costs the court allows which are incurred in such ht1gat1on All such fees shall be deemed to have accrued on start of such action and shall be enforceable whether or not such action Is prosecuted to Judgment IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first written above CITY OF RANCHO PALOS VERDES By..!_I ���___.:J,.��-. Name David Bradley Title Mayor EDCO DISPOSAL CORPORATION By-­ Na e Sandra L Burr Title Chair Approved w,� u)�� By ________ _ By�� Name Wilham W Wynder Title City Attorney ATTEST Bv��qJvu<(__ N��� aoka Title City�� Name John C Snyder Title Vice President 123 of 123 B-133 Exhibit 1 -Service Area #2 Map of UWS-Service Area 2 EXHIBIT g •'':':,.-1,,,_�¥,,.; ___ ..,. __ �:..,_ s ''-" II 01203.0014/760636.2 -····1 .. ' .. ,r<, ··-� . ...;' ,i; ' ,;t� •,: r,1., \ - •• -. · ¥ , � ... :-; ___ ·-•• �;:�. ·, ����v i .. :;,�· D A-30 B-134 fo'tl • . , I'.:: ;D. ~- / I ,, .. .-"" ' .. .,,, ';...,> A I IC"'u,,ce '""""' o l<'C Se•v«• ~---J B □A r~,1 Uie~#f.¥,h:v '),•'><,""Y.l!f'1'1. ,'lS. M:u,,1;)i t;riJ-mm~ .. ?;-. 11:w : S1vs.-"..'? ~ ;,"';~,1r · -~ 10. A,11r., .. .a1Pt1 \:,1rM f'•• S('f\,rt'~ ,_ ,,. Exh1b1t 2 -Organics Program Implementation Plan Contractor shall implement the Organics Collection Program according to the plan outlined in this Exh1b1t April 2022 •Organics Recycling Plan approved by the City •Schedule a series of detailed meetings with Operations, Maintenance, Container Support, Field Service Representatives, and Customer Service Representatives to review general aspects of the trans1t1on, enhance awareness, and stimulate d1scuss1ons of issues within all areas of the Contractor •Schedule dates and location of optional Community Meetings, subJect to COVID constraints at the time •Meet with the City bi-weekly or as desired to review 1mplementat1on and current level of act1v1t1es May 2022 •Electronic Draft of all public education materials presented to the City for review •City of Rancho Palos Verdes Res1dent1al Organics Recycling Coming �Soon webpage activated on Contractor web site •Website's Organics page updated to include Coming Soon Organics Recycling link along with supplemental information •Launch online orders for kitchen caddies •Conduct public workshops regarding the res1dent1al organics recycling program, including presentations at service clubs and community events, etc •Coming Soon Email Blast sent to Rancho Palos Verdes email subscribers from the Contractor website with 1nformat1on and guidelines for s1ngle-fam1ly res1dent1al customers •City approves all optional public education material •Meet with the City to review 1mplementat1on and current level of act1v1t1es 01203 0014/760636 2 B-135 June2022 •Initial four-panel color Organics Recycling Coming Soon public education piece mailed to all residents 1dent1fying program parameters •Second Organics Recycling Roll-Out public education piece mailed to all residents •Start kitchen caddie deliveries with public education hanging tags •Conduct ongoing public workshops regarding the res1dent1al organics recycling program, including presentations at service clubs and community events, etc •Meet with the City to review 1mplementat1on and current level of act1v1t1es July 2022 •Start organics collection service Adhere public ed hanging tag to organics cart •Add1t1onal Contractor Field Representatives will be available to personally discuss new program 1mplementat1on •Ongoing kitchen caddie deliveries with public education hanging tags •Conduct ongoing public workshops regarding the res1dent1al organics recycling program, including presentations at service clubs and community events •Follow-up postcard mailed to all res1dent1al customers with program reminders and cart placement •Meet with City to review any issue associated with this trans1t1on Ongoing •Ongoing kitchen caddie deliveries with public education hanging tags •Conduct ongoing public workshops regarding the res1dent1al organics recycling program, including presentations at service clubs and community events •Ongoing Environmental Times newsletter included in the billing mailed out to residents along with supplemental organics information starting with the new organics recycling guide 01203 0014nsosas 2 B-136 •Meet with City to review any issue associated with the performance of this Agreement 01203 0014nsos3s 2 B-137 Exh1b1t 3 -Initial Maximum Rates Effective April 1, 2022 Monthly Cart Service Rates One each Refuse, Recycling, and Organics Cart, rate based on size of Refuse Cart Refuse Cart Size 35-gallon 64-gallon 96-gallon Standard Service $26 06 $33 54 $40 99 Add1t1onal Refuse Cart $7 98 $10 64 $13 31 Add1t1onal Recycling Cart No-charge No-charge No-charge Add1t1onal Organics Cart $2 67 NA $5 33 Backyard apd Pup Service -Service Area ; only Backyard Service -per home per month, all cart sizes $8 20 Pup Service -per home per month, all cart sizes $6 85 Backyard and Pup Service -per home per month, all cart sizes $10 94 Manual Backyard and Manure Service -Service Area 2 only Manual Backyard Service for refuse, recycling, and organics -per home per month $75 49 Manure Service 32-gallon customer-provided can -per can, per month $26 36 Add1t1onal Cart Collection Services Add1t1onal Special Overage Pickup -Automated Cart Customers (in excess of two pickups per $6 65 calendar year) Add1t1onal Bulky Item Pickups (1n excess of three no-charge pickups per dwelling unit per $33 27 calendar year) Cart Exchange -one charge for exchange for all carts $19 97 Cart Re-delivery Fee (1f carts are pulled for non-payment, one charge for delivery of all carts) $33 27 Re-start Fee -after voluntary suspension of service, 1f carts have not been pulled $19 97 01203 0014/760636 2 B-138 I I Exh1b1t 3 - Initial Maximum Rates Effective April 1, 2022 (continued) Monthly Mult1-fam1ly Bin Rates Monthly Mult1-fam1ly Refuse Bm Rates -Service Area 1 Bin Size Pickups per Week 1 2 3 4 2-yard $103 46 $144 19 $184 90 $205 28 3-yard 144 23 184 94 225 70 266 42 3-yard w/compactor 288 42 369 91 451 34 532 84 4-yard 164 66 205 31 266 42 327 52 4-yard w/compactor 329 31 410 63 ,532 86 655 04 6-yard $205 39 $275 51 $327 53 $388 65 Recychng Bin/Cart No charge Monthly Mult1-fam1ly Refuse Bm Rates -Service Area 2 Bin Size Pickups per Week 1 2 3 4 2-yard $90 98 $126 83 $162 04 $180 19 3-yard 126 60 162 08 197 65 233 16 4-yard $144 43 $179 88 $233 21 $287 79 Manure 3-yard $164 81 Recychng Bin/Cart No charge Monthly Mult1-fam1ly Rates for Organics Collection Service -C1tyw1de Pickups per Week Bin Size 1 2 3 64-gallon $83 71 $167 43 $251 14 96-gallon 94 00 187 99 281 99 2-cubic yard $158 OS $316 09 $474 14 Each Add1t1onal Organics Bm/Cart 64-gallon $79 53 $159 06 $238 58 96-gallon 89 30 178 59 267 89 2-cubic yard $150 14 $300 29 $450 43 Other Monthly Mult1-fam1y Bm Service Rates Locking Bin Service $8 79 $11 32 $12 83 $14 32 Scout Service -Per Cart $1148 $19 96 $28 35 $36 79 Scout Service -Per Bin $34 45 $59 89 $85 06 $110 38 Bin Push-out Service $55 04 $98 14 $133 68 $166 52 (35 ft or further) Add1t1onal Service Charges for Mult1-fam1ly Bm Service Bin Cleaning per bin Add1t1onal Bulky Item Return Trip Fee Emergency Service Rate per Hour 5 6 $266 38 $283 88 327 48 340 38 654 97 680 74 399 02 424 09 795 31, 848 23 $451 66 $472 19 5 6 $233 11 $268 63 287 75 323 47 $347 71 $402 88 $16 53 $18 03 $45 23 $53 67 $135 69 $161 00 $202 09 $239 02 I Portuguese Bend Beach Club -beach htter container collection per month (not to exceed) 01203 0014nsos3s 2 Extra Pickups $73 78 86 08 172 19 98 40 199 45 $147 60 Extra Pickups $19 77 32 96 $46 14 $32 96 Extra Pickups per Cart $33 49 37 60 $63 22 $46 42 $33 12 $40 00 $112 58 IS2,636 65 I B-139 I I Exh1b1t 4 - Faithful Performance Bond KNOW ALL MEN BY THESE PRESENTS That , a California corporation , as PRINCIPAL, and , a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of ($ ), lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, Jointly and severally, firmly by these presents NOW, THEREFORE, THE CONDITION OF THIS OBLIG ATION IS SUCH THAT WHEREAS, the above bounden PRINCIPAL has entered into a contract, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with City, to do and perform the following work, to wit Collect, Process and Dispose of Solid Waste generated within City, in accordance with the contract NOW, THEREFORE, 1f the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said contract to be performed by said PRINCIPAL, as in said contract set forth, then this BOND shall be null and void, otherwise 1t will remain in full force and effect And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or add1t1on to the terms of the contract or to the work to be performed thereunder or the spec1f1cat1ons accompanying the same shall in any wise affect its obligations on this BOND, and 1t does hereby waive notice of any such change, extension of time, alteration or add1t1on to the terms of the contract or to the work or to the spec1f1cat1ons IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this DAY OF , 2021 a California Corporation By (PRINCIPAL) (SEAL) 01203 0014/760636 2 SURETY By (ATTORNEY IN FACT) (SEAL) B-140 C-1 March 14, 2023 Mr. Ramzi Awwad Director of Public Works City of Rancho Palos Verdes 30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275 Dear Mr. A wwad, We at family owned and operated EDCO want to thank the City of Rancho Palos Verdes for allowing EDCO to provide waste and recycling services to the community. It has and will always be our primary goal to provide superior customer service in the safest, most efficient manner possible. We have made a commitment to be recognized as a reliable service provider and focused on meeting state mandated goals in partnership with the city. That said, we respectfully submit to you a rate adjustment request. Please find attached the documentation to support the proposed July 1st, 2023, rate adjustment. Please note that the referenced annual CPI reflected a 6.13% increase, which has been capped at 6% per the terms of the Agreement. As such, the net effect of the July 1, 2023 adjustment is $2.01 per month for basic residential service and $8.65 on one time per week bin service As we all continue to navigate the robust changes and requirements of SB 1383, we will continue to strive to enhance the quality of life in the City of Rancho Palos Verdes and be truly recognized as a valued community partner. If any additional information pertaining to this submittal or any aspect of our services is needed, please feel free to contact me directly at (562) 520-2977. Thank you for allowing EDCO to be of service! ean General Manager cc: Mr. Lincoln Lo Public Works Deputy Director We·'ll Take Care of It'} P.O. Box 398 • Buena Park, California 90621 (562) 597-0608 • Fax: (714) 522-8429 • www.edcodisposal.com • Printed on Recycled Paper Monthly Automated Cart Residential Service Rates35-gallon 64-gallon 96-gallon$26.06 $33.54 $40.99$7.98 $10.64 $13.31No-charge No-charge No-charge$2.67 NA $5.33Backyard and Pup Service - Service Area 1 only$8.20$6.85$10.94Manual Backyard and Manure Service - Service Area 2 only$75.49$26.36Additional Cart Collection Services$6.65$33.27$19.97$33.27$19.97Monthly Multi-family Bin Rates - Service Area 1123456$103.46 $144.19 $184.90 $205.28 $266.38 $283.88 $73.78144.23 184.94 225.70 266.42 327.48 340.38 86.08288.42 369.91 451.34 532.84 654.97 680.74 172.19164.66 205.31 266.42 327.52 399.02 424.09 98.40329.31 410.63 532.86 655.04 795.31 848.23 199.45$205.39 $275.51 $327.53 $388.65 $451.66 $472.19 $147.60One each Refuse, Recycling, and Organics Cart; rate based on size of Refuse CartAdditional Bulky Item Pickups (in excess of three no-charge pickups per dwelling unit per calendar year)Cart Re-delivery Fee (if carts are pulled for non-payment; one charge for delivery of all carts)Re-start Fee - after voluntary suspension of service; if carts have not been pulledExtra PickupsRefuse Cart Size:Standard ServiceAdditional Refuse CartAdditional Recycling CartAdditional Organics CartAdditional Special Overage Pickup - Automated Cart Customers (in excess of two pickups per calendar year)2-yard3-yard3- yard w/compactor4-yard4- yard w/compactor6-yardRecycling Bin/CartCity of Rancho Palos Verdes Current Rates Effective 4/1/2022Backyard Service - per home per month; all cart sizesPup Service - per home per month; all cart sizesBackyard and Pup Service - per home per month; all cart sizesManual Backyard Service for refuse, recycling, and organics - per home per monthManure Service 32-gallon customer-provided can - per can, per monthCart Exchange - one charge for exchange for all cartsPickups per WeekBin SizeNo chargeEDCO Disposal Corporation1 of 73/15/2023C-2 City of Rancho Palos Verdes Current Rates Effective 4/1/2022Monthly Multi-family Bin Rates - Service Area 2123456$90.98 $126.83 $162.04 $180.19 $233.11 $268.63 $19.77126.60 162.08 197.65 233.16 287.75 323.47 32.96$144.43 $179.88 $233.21 $287.79 $347.71 $402.88 $46.14$164.81 $32.96Monthly Multi-family Rates for Organics Collection Service - Citywide123$83.71 $167.43 $251.14 $33.4994.00$ 187.99$ 281.99$ 37.60$ $158.05 $316.09 $474.14$63.22Each Additional Cart$79.53 $159.06 $238.5889.30$ 178.59$ 267.89$ $150.14 $300.29 $450.43Other Multi-famiy Bin Service RatesLocking Bin Service $8.79 $11.32 $12.83 $14.32 $16.53 $18.03Scout Service$34.45 $59.89 $85.06 $110.38 $135.69 $161.00$55.04 $98.14 $133.68 $166.52 $202.09 $239.02Additional Service Charges for Multi-family Bin Service$46.42$33.12$40.00$112.58$2,636.65Extra Pickups64 gallon96 gallon2-Cubic yardBin Push-out Service (35 ft. or further)2-yard3-yardBin Size4-yardManure 3-yardRecycling Bin/CartBin Size64 gallon96 gallon2-Cubic yardPickups per WeekBin Cleaning per binAdditional Bulky ItemReturn Trip FeeEmergency Service Rate per HourPortuguese Bend Beach Club - beach litter container collection per month (not to exceed)No chargePickups per WeekExtra PickupsEDCO Disposal Corporation2 of 73/15/2023C-3I I I I I I I I I I I I City of Rancho Palos Verdes Rates Effective 7/1/2023CPI %6.13%Maximum6.00%Monthly Automated Cart Residential Service RatesRefuse Cart Size:35-gallon 64-gallon 96-gallonStandard Service$1.56 $2.01 $2.46Additional Refuse Cart$0.48 $0.64 $0.80Additional Recycling CartNo-charge No-charge No-chargeAdditional Organics Cart$0.16 NA$0.32Backyard and Pup Service - Service Area 1 onlyBackyard Service - per home per month; all cart sizes$0.49Pup Service - per home per month; all cart sizes$0.41Backyard and Pup Service - per home per month; all cart sizes$0.66Manual Backyard and Manure Service - Service Area 2 onlyManual Backyard Service for refuse, recycling, and organics - per home per month$4.53Manure Service 32-gallon customer-provided can - per can, per month$1.58Additional Cart Collection Services$0.40$2.00$1.20$2.00Re-start Fee - after voluntary suspension of service; if carts have not been pulled$1.20Monthly Multi-family Bin Rates - Service Area 1Pickups per WeekExtra PickupsBin Size 1234562-yard$6.21 $8.65 $11.09 $12.32 $15.98 $17.03 $4.433-yard$8.65 $11.10 $13.54 $15.99 $19.65 $20.42 $5.163- yard w/compactor $17.31 $22.19 $27.08 $31.97 $39.30 $40.84 $10.334-yard$9.88 $12.32 $15.99 $19.65 $23.94 $25.45 $5.904- yard w/compactor $19.76 $24.64 $31.97 $39.30 $47.72 $50.89 $11.976-yard$12.32 $16.53 $19.65 $23.32 $27.10 $28.33 $8.86Recycling Bin/CartNo chargeOne each Refuse, Recycling, and Organics Cart; rate based on size of Refuse CartAdditional Special Overage Pickup - Automated Cart Customers (in excess of two pickups per calendar year)Increases effective 7/1/23Additional Bulky Item Pickups (in excess of three no-charge pickups per dwelling unit per calendar year)Cart Exchange - one charge for exchange for all cartsCart Re-delivery Fee (if carts are pulled for non-payment; one charge for delivery of all carts)EDCO Disposal Corporation3 of 73/15/2023C-4I I City of Rancho Palos Verdes Rates Effective 7/1/2023CPI %6.13%Maximum6.00%Increases effective 7/1/23Monthly Multi-family Bin Rates - Service Area 2Pickups per WeekExtra PickupsBin Size 1234562-yard $5.46 $7.61 $9.72 $10.81 $13.99 $16.12 $1.193-yard $7.60 $9.72 $11.86 $13.99 $17.27 $19.41 $1.984-yard $8.67 $10.79 $13.99 $17.27 $20.86 $24.17 $2.77Manure 3-yard $9.89 $1.98Monthly Multi-family Rates for Organics Collection Service - CitywidePickups per WeekExtra PickupsBin Size 12364 gallon$5.02 $10.05 $15.07$2.0196 gallon$5.64 $11.28 $16.92$2.262-Cubic yard$9.48 $18.97 $28.45$3.79Each Additional Cart Each Additional Cart64 gallon$4.77 $9.54 $14.3196 gallon$5.36 $10.72 $16.072-Cubic yard$9.01 $18.02 $27.03Other Multi-famiy Bin Service RatesLocking Bin Service$0.53 $0.68 $0.77 $0.86 $0.99 $1.08Scout Service$2.07 $3.59 $5.10 $6.62 $8.14 $9.66$3.30 $5.89 $8.02 $9.99 $12.13 $14.34Additional Service Charges for Multi-family Bin ServiceBin Cleaning per bin$2.79Additional Bulky Item$1.99Return Trip Fee$2.40Emergency Service Rate per Hour$6.75Portuguese Bend Beach Club - beach litter container collection per month (not to exceed)$158.20Bin Push-out Service (35 ft. or further)Recycling Bin/CartNo chargeEDCO Disposal Corporation4 of 73/15/2023C-5I I I I I I I ~================================~ ~ City of Rancho Palos Verdes New Rates Effective 7/1/2023CPI6.13%Maximum6.00%Monthly Automated Cart Residential Service Rates35-gallon 64-gallon 96-gallon$27.62 $35.55 $43.45$8.46 $11.28 $14.11No-charge No-charge No-charge$2.83 NA $5.65Backyard and Pup Service - Service Area 1 only$8.69$7.26$11.60Manual Backyard and Manure Service - Service Area 2 only$80.02$27.94Additional Cart Collection Services$7.05$35.27$21.17$35.27$21.17Monthly Multi-family Bin Rates - Service Area 1123456$109.67 $152.84 $195.99 $217.60 $282.36 $300.91 $78.21$152.88 $196.04 $239.24 $282.41 $347.13 $360.80 $91.24$305.73 $392.10 $478.42 $564.81 $694.27 $721.58 $182.52$174.54 $217.63 $282.41 $347.17 $422.96 $449.54 $104.30$349.07 $435.27 $564.83 $694.34 $843.03 $899.12 $211.42$217.71 $292.04 $347.18 $411.97 $478.76 $500.52 $156.46One each Refuse, Recycling, and Organics Cart; rate based on size of Refuse CartRefuse Cart Size:Standard ServiceAdditional Refuse CartAdditional Recycling CartAdditional Organics CartBackyard Service - per home per month; all cart sizesPup Service - per home per month; all cart sizesBackyard and Pup Service - per home per month; all cart sizesManual Backyard Service for refuse, recycling, and organics - per home per monthManure Service 32-gallon customer-provided can - per can, per monthAdditional Special Overage Pickup - Automated Cart Customers (in excess of two pickups per calendar year)Additional Bulky Item Pickups (in excess of three no-charge pickups per dwelling unit per calendar year)Cart Exchange - one charge for exchange for all cartsCart Re-delivery Fee (if carts are pulled for non-payment; one charge for delivery of all carts)Re-start Fee - after voluntary suspension of service; if carts have not been pulledBin SizePickups per WeekExtra Pickups2-yard3-yard3- yard w/compactor4-yard4- yard w/compactor6-yardRecycling Bin/CartNo chargeEDCO Disposal Corporation5 of 73/15/2023C-6 City of Rancho Palos Verdes New Rates Effective 7/1/2023CPI6.13%Maximum6.00%Monthly Multi-family Bin Rates - Service Area 2123456$96.44 $134.44 $171.76 $191.00 $247.10 $284.75 $20.96$134.20 $171.80 $209.51 $247.15 $305.02 $342.88 $34.94$153.10 $190.67 $247.20 $305.06 $368.57 $427.05 $48.91$174.70 $34.94Monthly Multi-family Rates for Organics Collection Service - Citywide123$88.73 $177.48 $266.21$35.50$99.64 $199.27 $298.91$39.86$167.53 $335.06 $502.59$67.01Each Additional Cart$84.30 $168.60 $252.89$94.66 $189.31 $283.96$159.15 $318.31 $477.46Other Multi-famiy Bin Service RatesLocking Bin Service$9.32 $12.00 $13.60 $15.18 $17.52 $19.11Scout Service$36.52 $63.48 $90.16 $117.00 $143.83 $170.66$58.34 $104.03 $141.70 $176.51 $214.22 $253.36Additional Service Charges for Multi-family Bin Service$49.21$35.11$42.40$119.33$2,794.85Bin SizePickups per WeekExtra Pickups2-yard3-yard4-yardManure 3-yardRecycling Bin/CartEmergency Service Rate per HourPortuguese Bend Beach Club - beach litter container collection per month (not to exceed)No chargeBin Push-out Service (35 ft. or further)Bin Cleaning per binAdditional Bulky ItemReturn Trip FeePickups per WeekExtra PickupsBin Size64 gallon96 gallon2-Cubic yard64 gallon96 gallon2-Cubic yardEDCO Disposal Corporation6 of 73/15/2023C-7I I I I I I I I I I I Series Id:Series Title:Area:Item:Base Period:Years:YearJan Feb Mar AprMay Jun Jul Aug Sep Oct Nov Dec2013411.126 411.805 412.305 413.675 414.511 414.802 416.505 417.760 418.357 419.687 421.427 422.2372014422.440 422.483 423.413 425.393 425.242 425.930 426.562 426.771 427.327 427.995 427.808 428.1872015427.734 429.248 429.235 429.807 431.234 430.813 431.229 432.967 433.843 434.829 436.428 436.9962016437.205 438.296 437.699 437.676 438.317 437.858 438.607 439.358 439.707 440.311 443.343 444.7452017446.266 447.699 446.987 447.129 447.272 448.046 448.328 448.717 449.008 452.196 453.820 453.5962018453.354 454.915 455.230 458.722 462.887 465.041 465.579 470.457 471.026 472.535 486.650 485.9352019475.687 477.474 478.569 479.449 480.865 480.984 482.138 483.987 484.346 486.133 486.485 486.7082020491.003 494.429 495.288 494.432 494.946 496.679 498.564 500.882 501.756 503.315 504.970 508.1902021512.722 517.270 518.505 518.579 516.440 517.202 521.185 524.408 529.934 530.114 529.053 532.5382022533.078 538.313 540.719 542.564 544.546 547.554 548.187 548.706 558.254 561.090 563.816 565.1852023570.41232.6476.130%Maximum6.0%Garbage and trash collectionDECEMBER 1983=1002013 to 2023Garbage and trash collection in U.S. city average, all urban consumers, seasonally adjustedCPI for All Urban Consumers (CPI-U)Original Data ValueCUSR0000SEHG02Seasonally AdjustedU.S. city averageC-8 Series Id:Series Title:Area:Item:Base Period:Years:YearJan Feb Mar AprMay Jun Jul Aug Sep Oct Nov Dec2013411.126 411.805 412.305 413.675 414.511 414.802 416.505 417.760 418.357 419.687 421.427 422.2372014422.440 422.483 423.413 425.393 425.242 425.930 426.562 426.771 427.327 427.995 427.808 428.1872015427.734 429.248 429.235 429.807 431.234 430.813 431.229 432.967 433.843 434.829 436.428 436.9962016437.205 438.296 437.699 437.676 438.317 437.858 438.607 439.358 439.707 440.311 443.343 444.7452017446.266 447.699 446.987 447.129 447.272 448.046 448.328 448.717 449.008 452.196 453.820 453.5962018453.354 454.915 455.230 458.722 462.887 465.041 465.579 470.457 471.026 472.535 486.650 485.9352019475.687 477.474 478.569 479.449 480.865 480.984 482.138 483.987 484.346 486.133 486.485 486.7082020491.003 494.429 495.288 494.432 494.946 496.679 498.564 500.882 501.756 503.315 504.970 508.1902021512.722 517.270 518.505 518.579 516.440 517.202 521.185 524.408 529.934 530.114 529.053 532.5382022533.078 538.313 540.719 542.564 544.546 547.554 548.187 548.706 558.254 561.090 563.816 565.1852023570.41232.6476.130%Maximum6.0%Garbage and trash collectionDECEMBER 1983=1002013 to 2023Garbage and trash collection in U.S. city average, all urban consumers, seasonally adjustedCPI for All Urban Consumers (CPI-U)Original Data ValueCUSR0000SEHG02Seasonally AdjustedU.S. city averageD-1