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HomeMy WebLinkAbout2014-015 Atascadero Waste Alternatives SOLID WASTE COLLECTION FRANCHISE AGREEMENT This Solid Waste Collection Franchise Agreement (this "Agreement") is entered into on the 15th day of July, 2014 by and between the City of Atascadero, a political subdivision of the State of California ("City") and U.S.A. Waste of California, Inc., d/b/a Atascadero Waste Alternatives, a Delaware corporation ("Contractor") for Contractor to provide garbage, recycling and greenwaste services within the incorporated limits of City. RECITALS WHEREAS the City and Contractor are parties to that certain Solid Waste Franchise Agreement(the "Prior Agreement")dated November 27, 2007,which was approved by a Resolution of the City Council; and WHEREAS the City and Contractor have entered into amendments, modifying certain provisions of the Prior Agreement, and adding certain disposal and processing, and service requirements; and WHEREAS Cityand Contractor now desire to further amend and restate, in its entirety, the Prior Agreement,as set forth herein; and WHEREAS the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 19$9 (AB 939) Division 30 of the California Public Resources Code, commencing with §40000, has declared that it is within the public interest to authorize and require local agencies to make adequate provisions for Recyclable Materials handling within their jurisdictions; and WHEREAS the separate Collection, processing and marketing of Recyclable Materials for beneficial reuse or Recycling was selected in the City's Source Reduction and Recycling Element adopted in 1994, hereinafter referred to as the SRRE, as a means of meeting the 1995 and 2000 State mandated diversion goals of AB 939; and WHEREAS the City has determined thatan Agreement granted to a private company for the Collection, processing and marketing of commercial and residential Recyclable Materials is the most effective and efficient way to collect and divert commercial and residential Recyclable Materials within the City; and WHEREAS the City declares its intention of maintaining reasonable rates and high quality service for Garbage Service and the Collection, processing, and marketing of Recyclable Materials; and WHEREAS the Contractor is responsible for arranging for commercial and residential Recyclable Materials Collection, processing and marketing services; and WHEREAS this Agreement has been developed by and is satisfactory to the parties. NOW, THEREFORE, for and in consideration of the mutual promises herein contained, the adequacy of which is hereby acknowledged, it is hereby agreed by and between the City and Contractor as follows: Atascadero Solid Waste Collection Franchise Agreenaent (July 15, 2014) Page i ARTICLE 1 DEFINITIONS 1.1 "AB 939" means the California Integrated Waste Management Act of 1989, as it may be amended from time to time. 1.2 "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or indirect common ownership interest or common management shall be deemed to be "Affiliated with" Contractor and included within the term "Affiliates with" Contractor and included within the "Affiliates" as used herein. An Affiliate shall include a business in which Contractor owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in Contractor and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest exists, die constructive ownership provisions of Section 318(x) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply;provided,however, that(i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof, and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.3 "Agreement" means this residential and commercial Solid Waste Collection Franchise Agreement (including all exhibits and attachments, and any amendments thereto) between City and Contractor. 1.4 'Billings" means any and all statements of charges for services rendered by Contractor pursuant to this Agreement. 1.5 "California Integrated Waste Management Act of 1989" means Public Resources Code, §40000 et. seq. 1.6 "City" means the City of Atascadero, a political subdivision of the State of California, and all the territory lying within the municipal boundaries of the City as presently existing or as such boundaries may be modified during the tens, acting through the City Council or the City Manager. 1.7 "Collect" or "Collection" means to take physical possession, transport, and remove Garbage and Recyclable Materials within and from the City. 1.8.1 "Commercially Generated Recyclable Materials" means Recyclable Materials generated at commercial, governmental and/or industrial property and separated by the Waste Generator for Collection. 1.9 "Container" means any waste wheeler can or bin used for Collection and storing of Garbage or Recyclable Materials before removal. 1.10 "Contractor" means, USA Waste of California, Inc., d/b/a Atascadero Waste Alternatives, and its officers, directors, employees, agents, companies and subcontractors where applicable. Atascadero Solid Waste Collection Franchise Agreement(July 15, 201 4) Page 2 1.11 "Environmental Laws" means all federal and state statutes, county, local and City ordinances and regulations concerning public health, safety and tie environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC 9601 et sea.; the Resource Conservation and Recovery-Act, 42 USC 6901 et sea.; the Federal Clean Water Act, 33 USC 1251 et sea.; the Toxic Substances Control Act, 15 USC 2601 et sea.; the Occupational Safety and Health Act, 29 USC 651 et. sea.; the California Hazardous Waste Control Law, California Health and Safety Code §25100 et sea.; the California Hazardous Substances Account Act, California Health and Safety Code §25300 et sea.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et sea.: currently in force and as hereinafter amended, and all rules and regulations promulgated there under. 1.12 "Facility" means any plant or site, owned or leased and maintained and/or operated or used by Contractor for the purposes of performing the duties to fulfill this Agreement. 1.13 "Fiscal Year" means the period commencing January 1 and concluding December 31. 1.14 "Force Majeure" see section 12.4 for definition. 1.15 "Garbage" means solid waste comprised of rubbish, trash and refuse. 1.16 "Gross Revenues Collected" means any and all revenue or compensation actually collected by Contractor from customers under this Agreement for the exclusive collection, transportation, processing, recycling and disposal of Solid Waste, Recyclables, and Green Waste within die City, in accordance with Generally Accepted Accounting Principals (GAAP), net of Franchise Fees and AB 939 fees. The term Gross Revenues, for purposes of this Agreement, shall not include any: a) City, or other federal, state, or local taxes or surcharges; b) any customer late fees, NSF charges, interest, or reactivation charges; or c) any revenues generated from the sale of Recyclables or any recycling rebates received from the State. 1.17 "Hazardous Waste" means any discarded material or mixture of materials, which is toxic, corrosive, flammable, radioactive or which, because of its quantity, concentration, physical, chemical or infectious characteristics may do harm to either humans, animals or the environment, or as defined in Section 2, Chapter 6.5 §25117 of the Health and Safety Code and Public Resources Code§40141. 1.18 "Materials Recovery Facility" means a permitted Facility where Solid Waste or Recyclable Materials are sorted, processed, transferred or separated for the purposes of Recycling or reuse. 1.19 "Multifamily Dwelling Unit" means any Premises, other than a Single Family Dwelling Unit, used for residential purposes, irrespective of whether residence therein is transient, temporary or pennanent. 1.20 "Owner" means the person holding the legal title to the real property constituting the Premises to which solid waste collection service is to be provided under this Agreement. Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 3 1.21 "Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, the County of San Luis Obispo, local agencies, cities and special purpose districts. 1.22 "Premises" means any land or building in the City where Solid Waste is generated or accumulated. 1.23 "Recyclable Materials" means by-products or discards set aside, handled, packaged or offered for Collection from residential, commercial, governmental or industrial customers in a manner different from Solid Waste. Including, but not limited to, aluminum, newspaper, clear and colored glass, tin and bi-metal, all plastic containers, cardboard, chipboard, magazines, mixed paper (including magazines, phone books and junk mail) and motor oil and filters (separately collected). Greenwaste material is included in this definition, but is collected separately from other Recyclable Materials, and includes grass clippings, leaves, weeds, brush,wood, Christmas Trees and branches. 1.24 "Recycling" means the process of separating for Collection, Collecting, treating and/or reconstituting Recyclable Materials which would otherwise be discarded without receiving compensation or returning them to the economy in the form of raw materials for new, reused, or reconstituted products. The Collection, transfer, transportation or disposal of Recyclable Materials not intended for, or capable of, reuse is not Recycling. 1.25 "Related Party Entity" means any Affiliate that has financial transactions with Contractor. 1.26 "Residential Recyclable Materials" means Recyclable Materials generated at Single Family Dwelling Units and separated by the Waste Generator for Collection. 1.27 "Single Family Dwelling Unit" means each Premises used for or designated as a single family residential dwelling, including each unit of a duplex or triplex in all cases in which there is separate or individual Solid Waste Collection services. 1.28 "Solid Waste" means all putrescible and non-putrescible refuse, garbage, rubbish, and Recyclable Materials, and as otherwise defined in Public Resources Code §40191. 1.29 "Term"means the term of this Agreement, as provided for in Article 3. 1.30 "Transfer Station" includes those facilities used to receive solid wastes, temporarily store, separate, convert, or otherwise process the materials in the solid wastes, or to transfer the solid wastes directly from smaller to larger vehicles for transport and those facilities used for transformations. 1.31 "Waste Generator" means any Person as defined by the Public Resources Code, whose act or process produces Solid Waste as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014) Page 4 ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF CONTRACTOR 2.1 Contractor Status Contractor shall be an independent contractor and not an agent or employee of the City. 2.2 Contractor Authorization Contractor has the authority to enter into and perform its obligations under this Agreement. The Board of Directors and Contractor (or the shareholders, if 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 the authority to do so. 2.3 Compliance With Laws and Regulations Contractor shall comply with all existing and future City, county, state, and federal laws, including all Environmental Laws. 2.4 Grant and Acceptance of Agreement Subject to Article 3.4 (Conditions of the Effectiveness of Agreement), City hereby grants to Contractor the exclusive right and privilege to collect and dispose all Solid Wastes generated and/or accumulated within City. Subject to Article 4.2 City also hereby grants to Contractor the exclusive right and privilege to collect Recyclable Materials including greenwaste generated and/or accumulated at Single Family and Multi-family dwelling units in the City and Commercially Generated Recyclable Materials including greenwaste that are offered for Collection to Contractor in accordance with this Agreement. Contractor shall perform all duties required under this Agreement in accordance with all applicable current and future federal, state, and local laws and regulations at rates established by this Agreement and by City pursuant to the procedures set forth herein. For purposes of this Agreement, said laws, rules, and regulations shall include but not be limited to any policy, resolution, or ordinance adopted by a duly constituted governing body of a public agency, including joint powers authorities and districts. Contractor hereby accepts the Agreement on the terms and conditions set forth in this Agreement. 2.5 Serve Without Interruption Contractor shall perform all duties throughout the term of this Agreement without interruption. 2.6 Permits and Licenses Contractor shall procure, and keep in full force and affect, all permits and licenses, pay all charges and fees, and give all notices as necessary. In addition, any property owned or used by the Contractor in Atascadero shall be kept in a clean and orderly condition consistent with industry standard and the trucking yard located at 7675 San Luis Avenue shall not be used to store or transfer solid waste or recyclables without the approval of Atascadero. Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 5 2.7 Preservation of City Property Contractor shall pay to the City, on demand, the cost of all repairs to public property made necessary by any of the operations of Contractor under this Agreement directly caused by Contractor. ARTICLE 3 TERM OF AGREEMENT 3.1 Effective Date The effective date of this Agreement shall be September 1, 2014 (the "Effective Date"). 3.2 Term of Agreement The term of this Agreement shall be six years four months commencing on the Effective Date and expiring six years four months thereafter on December 31, 2020, unless extended by the parties as provided in Article 3.3 (Option to Extend). In the event of a change of lave which would render the collection and disposal services to be implemented under this Agreement illegal, the City reserves the right to terminate this Agreement upon the giving of a six (6) month prior written notice of City's election to so terminate this Agreement. 3.3 Option to Extend The City shall have the sole option to extend this Agreement up to 48 months in periods of at least twelve (12) months each. If City elects to exercise this option, it shall give written notice not later than one hundred eighty (180) days prior to the initial termination date, or, if one extension has been exercised, one hundred eighty (180) days prior to the extended termination date. The terns and conditions of this Agreement shall be applicable during said extension option unless the parties mutually agree upon any changes. 3.4 Conditions to Effectiveness of Agreement The obligation of City to permit this Agreement to become effective and to perform its undertakings provided for in this Agreement is subject to the satisfaction of each and all of the conditions set out below, each of which maybe waived in whole or in part by City. A. Accuracy of Representations. The representations and warranties made by Contractor throughout this Agreement are accurate, true and correct on and as of the effective date of this Agreement. B. Absence of Litigation. There is no litigation pending in any court challenging the award of this Agreement to Contractor or the execution of this Agreement or seeking to restrain or enjoin its performance. C. Furnishing of Insurance and Performance Bond. At least 30 (thirty) calendar days before the effective date of the Agreement, the Contractor shall provide proof of insurance in the forin, coverages, and amounts specified in Article D of these specifications and the performance bond set forth in Section 10.5. D. Effectiveness of City Council Action. The City's approving this Agreement shall become effective pursuant to California law on or prior to the effective date of this Agreement. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 6 ARTICLE 4 SCOPE OF AGREEMENT 4.1 Scope of Agreement Subject to Article 4.2 (Limitations to Scope), the Agreement granted to Contractor shall be exclusive for Solid Waste, Recyclable Materials, and greenwaste, except where otherwise precluded by law. This Agreement does not include construction and demolition debris, however, the City reserves the right to add construction and demolition debris, at its discretion, at some point in the future: 4.2 Limitations to Scone The Agreement for the Collection, processing and marketing of Recyclable Materials granted to Contractor shall be exclusive except as to the following categories of Recyclable Materials listed in this Article. The granting of this Agreement shall not preclude the categories of Recyclable Materials listed below from being delivered to and Collected and transported by others provided that nothing in this Agreement is intended to or shall be construed to excuse any person from obtaining any authorization from City that is otherwise required by law: A. Recyclable Materials separated from Solid Waste by the Waste Generator and for which Waste Generator sells or is otherwise compensated by a collector in a manner resulting in a net payment to the Waste Generator for such Recycling or related services. B. Recyclable Materials donated to a charitable, environmental or other non-profit organization. C. Recyclable Materials which are separated at any Premises and which are transported by the owner or occupant of such Premises (or by his/her full-time employee) to a recycling center; D. Other Governmental Agencies within the City which can contract for separate solid waste and recycling services; and, E. The City may contract with third parties to process and market Recyclable Materials and may direct the Contractor to deliver Recyclable Materials collected by the Contractor under this Agreement to such third parties for processing. This Agreement to Collect, transport, process, and market Recyclable Materials shall be interpreted to be consistent with state and federal laws, now and during the term of the Agreement, and the scope of this Agreement shall be limited by current and developing state and federal laws with regard to Recyclable Materials handling, Recyclable Materials flow control, and related doctrines. In the event that changes in law limit the ability of the City to lawfully provide for the scope of services as specifically set forth herein, Contractor and City agree to work in good faith to amend the scope of the Agreement so as to comply with such changes in law, and the City shall not be responsible for any lost profits and/or damages claimed by the Contractor as a result of changes in law. 4.3 Administration of Agreement The City Manager or his designee shall administer this Agreement and shall supervise Contractor compliance with the Agreement terms and conditions. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 7 4.4 Use of City Streets Contractor shall have the right and privilege to operate Collection vehicles and equipment on any and all streets,public ways,rights-of-way, or easements of the City. 4.5 City Request to Direct Changes 4.5.1 General City may request Contractor to perform additional services (including state mandates, new diversion programs, etc.) or modify the manner in which it performs existing services. Pilot programs and innovative services that may entail new Collection methods, different kinds of services and/or new requirements for Waste Generators are included among the kinds of changes that City may request. Contractor shall present,within 30 days of a request to do so by City, a proposal to provide additional or expanded diversion services pursuant to the terns of Article 4.5.2. Contractor shall be entitled to an adjustment in its compensation in accordance with Article 8.9 (Extraordinary Adjustments), for providing such additional or modified services. 4.5.2 NeNv Diversion Programs Contractor shall present, within 30 days of a request to do so by City, a proposal to provide additional or expanded diversion or other services. The proposal shall contain a complete description of the following. a. Collection methodology to be employed (equipment,inanpower, etc.) b. Equipment to be utilized(vehicle number, types, capacity, age, etc.). c. Labor requirements (number of employees by classification). d. Type of Containers to be utilized. e. Provision for program publicity/education/marketing. f Materials Recovery Facility to be utilized for diversion and/or recovery of materials. g. A projection of the financial results of the program's operations for the remaining Term of the Agreement in a balance sheet and operating statement format including documentation of the key assumptions underlying the projections and the support for those assumptions. 4.5.3 City's Right to Acquire Services If pursuant to Article 4.5.2 (New Diversion Programs), Contractor and City cannot agree on terms and conditions of such new services in ninety (90) days from die date when City first requests a proposal from Contractor to perform such services, Contractor acknowledges and agrees that City may permit Persons other than Contractor to provide such services. 4.6 _Ownership of Garbaee and Recyclable Materials All Solid Waste Collected, removed, and transported by Contractor from the Premises where produced, generated, and/or accumulated pursuant to this Agreement shall be the property and responsibility of Contractor. Notwithstanding the foregoing, Contractor shall have no duty or obligation to collect any Hazardous Waste or other material that does not meet the definition of Solid Waste, and ownership of all such non-conforming materials shall remain with the Waste Generator. Once Recyclable Materials are placed in Containers and properly presented for Collection, ownership and the right to possession shall transfer directly from the Generator to Contractor by operation of this Agreement. Contractor is hereby granted the right to retain, recycle, process, reuse, and otherwise use such Recyclable Materials or any part thereof, in any lawful fashion or for any lawful purpose consistent with the hierarchy and goals of AB 939. Subject to the provisions of this Agreement, Contractor shall have the right to retain any benefit resulting from its right to retain, recycle, process or reuse the Recyclable Materials that it Ataseadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 8 Collects. Recyclable Materials or any part thereof,uhich are delivered to a Facility(processing Facility, transformation Facility, transfer station, or Material Recovery Facility) shall become the property of the owner or operator of the Facility(ies)once deposited there by Contractor. The Parties acknowledge that City has the right to direct Contractor to deliver Recyclable Materials including greenwaste Collected by Contractor to a third party for processing, marketing and sale. On July 15, 2014 the City entered into a non-exclusive agreement with North San Luis Obispo County Inc. to process and market Recyclable Materials Collected by the Contractor in the City for a six(6)year period ( the "Third Party Processing Agreement"). Separated cardboard collected from commercial customers in the City is not included in the Third Party Processing Agreement. For as long as this Third Party Processing Agreement remains in force, the City acknowledges and agrees that it shall require North San Luis Obispo County, Inc., to comply A ith all relevant terms and conditions of this Agreement and to ensure the proper handling and diversion of Recyclables by North San Luis Obispo County,Inc. 4.7 City's Right To Perform Service:Tagging of Improper Set-Outs In the event Contractor fails to Collect, remove, and dispose of Garbage or Recyclable Material on a customer's regularly scheduled Collection day, within twenty-four (24) hours of a request from City or a customer to do so, City may collect said materials and Contractor shall be liable for all related expenses incurred by City. Such expenses include but are not limited to disposal, administrative, and legal costs. Contractor shall reimburse City for such expenses as required. In the event Contractor does not collect any item or Container of Solid Waste, Recyclable Materials or greenwaste material due to a customer's non-compliance with rules and regulations for proper set-out, if possible Contractor shall attach a tag securely to the item or container not Collected specifying the reasons for non-collection. The tag shall contain Contractor's name and telephone number. ARTICLE 5 DIRECT SERVICES 5.1 General The work to be done by Contractor pursuant to this Agreement shall include the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perforin the services, as set forth in this Agreement. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required,whether enumerated or not. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that the residents and businesses within the City are provided reliable, courteous and high-quality Garbage and Recycling Collection services at all times. The enumeration of, and specification of requirements for., particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this Article, whether such aspects are enumerated elsewhere in the Agreement or not. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 9 5.2 Garbage.Recycling and Greenwaste Services Contractor shall provide weekly Collection of Garbage for all places and Premises within City, or such other level of service as may be determined by City with the consent of Contractor and at rates established by this Agreement. Contractor shall provide more frequent Collection services at rates established by this Agreement for those Premises within the City that generate larger volumes of Solid Waste. Contractor shall Collect and remove all Recyclable Materials and greenwaste placed in Containers (one Container for all commingled Recyclable Materials and a second Container for greenwaste) at the designated Collection locations for Single Family Dwelling Units and Multifamily Dwelling Units and shall also collect and remove all Commercially Generated Recyclable Materials including greenwaste, all at the rates established by this Agreement. Residential Recyclable Material and greenwaste Collection shall be weekly on the same day of the week as Garbage Collection service. Commercially Generated Recyclable Materials Collection shall be on a schedule as determined by Contractor and the Waste Generator. 5.3 Recyclable Materials To Be Collected Materials to be collected are to include but not be limited to: newspaper, aluminum, tin and bi-metal cans, clear and colored glass containers, all plastic containers, corrugated cardboard, mixed paper(including white and colored ledger paper, chipboard, junk mail, magazines and phone books) and motor oil and filter (which shall be collected separate from the Recycling Container). In addition greenwaste will also be Collected in a separate Container. 5.4 Refusal to Provide Collection Services Contractor may refuse to Collect Recyclable Materials or greenwaste and shall not be obligated to continue to provide Container(s) to any participant in the Recycling or greenwaste program who, after reasonable warning by Contractor, fails to properly sort and set out Recyclable Materials or greenwaste, including excessive contamination. Contractor shall report monthly to City any warning notices issued. 5.5 Marketing and Sale of Recyclable Materials Contractor shall be responsible for the marketing and sale of all Recyclable Materials including greenwaste Collected pursuant to this Agreement. Revenues from the sales of these materials shall be retained by Contractor. The Parties acknowledge that the City has a right to direct the Contractor to deliver Recyclable Materials including greenwaste collected by the Contractor under this Agreement to a third party for processing, marketing and sale. 5.6 Operations 5.6.1 Schedules To preserve peace and quiet, no Garbage, Recyclable Materials including greenwaste shall be Collected from or within two-hundred (200) feet of residential Premises between 5:00 P.M. and 6:00 A.M. on any day. Residential Garbage, Recyclable Materials including greenwaste shall be Collected, Monday through Friday on the same day. The one exception is the Contractor may elect to collect motor oil and filters With a separate vehicle using an on-call program. When the regularly scheduled Collection day falls on a holiday, Collection shall take place on the following regularly scheduled Collection day. In the event die Contractor misses the Collection of properly set out Garbage, Recyclables, or greenwaste the Contractor shall collect the missed pickups within one (1)business day of notification. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014) Page 10 5.6.2 Vehicles A. General. Contractor shall provide a fleet of Collection vehicles sufficient in number and capacity to perform the work required by this Agreement and in strict accordance with its terms. Contractor shall have available on Collection days sufficient back-up vehicles in order to respond to complaints and emergencies. B. Specifications. All vehicles used by Contractor in providing Garbage, Recyclable Materials, and greenwaste Collection services under this Agreement shall comply with all federal, state, and local requirements for such vehicles as they now exist or may be amended in the future, including all applicable air emissions requirements, and shall be registered with the California Department of Motor Vehicles. All such vehicles shall have watertight bodies designed to prevent leakage, spillage or overflow. All such vehicles shall comply with U.S. Environmental Protection Agency noise emission regulations and other applicable noise control regulations. The Contractor will, in good faith, consider incorporating LNG trucks into its Collection fleet, to the extent practicable. C. Condition 1) Contractor shall maintain all of its properties, facilities, and equipment used in providing service under this Agreement in a safe, neat, clean and operable condition at all times. 2) Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles which are not operating properly and represent a safety hazard shall be taken out of service until they are repaired and do operate properly and safely. Contractor shall perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and mileage and shall make such records available to City upon request. 3) Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. Contractor shall maintain accurate records of repair, which shall include the date/mileage, nature of repair and the signature of a maintenance supervisor that the repair has been properly performed. 4) Contractor shall arrange all vehicles and other equipment in safe and secure location(s) in accordance with all applicable zoning regulations. D. Vehicle Identification. Each truck shall display in a prominent place a sign approved by the City. 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 limitations imposed by state or local weight restrictions on vehicles. 5.6.3 Garbage, Recycling and Greenwaste Containers Contractor shall supply up to 400 Single Family Dwelling Units with a 19 gallon container for garbage. Contractor shall supply all other Single Family Dwelling Units with a 32, 64 or 96 gallon Container for Garbage. The monthly service fee for each size Container is shown in Exhibit A. In addition each Single Family Dwelling Unit will receive from Contractor. a 96- gallon Container for all commingled Recyclable Materials except greenwaste and a 96-gallon Container for greenwaste. If requested by customer, Contractor shall provide to tie customer either a 32 gallon or a 64 gallon Recyclable and/or greenwaste Container, however the default Container size unless requested otherwise shall be 96 gallons. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page I 1 Contractor shall supply each multi-family complex and commercial or governmental agency with appropriately sized Containers for Garbage, commingled Recyclables and Greenwaste. Contractor agrees to provide additional Containers, as requested, by all Persons at the rental rate as shown on Exhibit A. Contractor agrees not to limit the specific type of Recyclable Material (such as cardboard only) that can be placed in a Container unless approved by the City on a customer by customer basis. For both residential and commercial customers, all garbage Containers shall be grey, all Recyclable Materials Containers shall be blue and all greenwaste Containers shall be green. Within the first 12 months of this Agreement, Contractor shall replace any existing Container that is not the proper color with a. Container that is the proper color that is either a new Container or a Container that is in the existing Contractor's inventory. Notwithstanding the foregoing 12 month timetable, Contractor agrees to use good faidi efforts to replace such containers within the first 9 months of this Agreement. Containers for Recyclable Materials shall include an in molded graphic or sticker which provides instructions to the Waste Generator. The final color and signage, including the in molded graphic or sticker on the Containers shall be approved by the City. The fee schedule for premium or additional services is shown on Exhibit A. City and Contractor acknowledge that from time to time, a customer may damage or destroy a Container. City and Contractor also acknowledge that from time to time Containers may be stolen from the curb or damaged due to normal use. The fee schedule to replace lost or damaged Containers is shown on Exhibit A. All Contractor supplied Containers for Garbage, Recyclables, and Greenwaste shall remain the property of Contractor. Containers damaged due to lack of reasonable care by the customer, or Containers damaged by graffiti may be replaced by Contractor, the fee for which shall be the same as for lost or damaged Containers as set forth on Exhibit A. Contractor may recover Containers used by customers for other than their intended purpose. 5.6.4 Litter Abatement Contractor shall use due care to prevent Garbage or Recyclable Materials from being spilled or scattered during the Collection or transportation process. If any Garbage or Recyclable Materials are spilled during Collection, Contractor shall promptly clean up all spilled materials. Each Collection vehicle shall carry a broom, shovel and oil spill kit at all times for this purpose. 5.6.5 Personnel A. General. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical, and other personnel as may be necessary to provide services required by this Agreement in a safe and efficient manner. If the City adopts a living wage ordinance, the Contractor agrees to voluntarily comply with the ordinance. B. Identification. Contractor shall ensure that while on duty each Collection worker wears a clean uniform that displays the Contractor's company name and the worker's name or identification number. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014) Page 12 C. Fees & Gratuities. 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 or gratuity for any services performed under this Agreement except as provided in Article 8 of this Agreement. D. Training. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. Contractor shall provide adequate operations, health and safety training, and Hazardous Waste identification and handling training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or oilier related operations. E. Customer Courtesy. Contractor shall train its employees in customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. Contractor shall use its best efforts to ensure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, Contractor shall take all necessary corrective measures. If City has notified Contractor of a complaint related to discourteous or improper behavior, Contractor will reassign the employee to duties not entailing contact with the public while Contractor is pursuing its investigation and corrective action process. 5.7 Disposal Reauirements A) Contractor shall dispose of all Solid Waste and Recyclable Materials Collected under this Agreement at Contractor's oven expense and in accordance with a.11 Federal, State and local laws, rules, and regulations. Contractor shall he responsible for securing an appropriate location for disposal of all Solid Waste and processing of all Recyclable Materials Collected by Contractor pursuant to this Agreement. B) Contractor shall secure within 90 days of the effective date of this Agreement, sufficient disposal site capacity commitment including landfill disposal site capacity to adequately serve the reasonable anticipated Garbage disposal needs of Contractor's customers. City reserves the right to review said disposal capacity commitments. C) If Contractor receives notice from the landfill operator or recyclables processor or otherwise finds, during the term of the Agreement, to be prevented from delivering Garbage to the designated site, Contractor shall immediately notify, in writing, the City Manager, stating the reason(s) Contractor is prevented, or expects to be prevented, from delivering Garbage at the designated facility. Contractor shall expeditiously identify and evaluate alternative sites. An alternative designated site or sites shall be arranged for and secured by Contractor. D) The parties understand and agree that City intends to commence and participate in waste diversion and resource recovery programs pursuant to regional and/or local implementation of AB 939, or such other programs as may be established by City. Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014)Page 13 E) Contractor shall deliver all Garbage to any landfill which collects the San Luis Obispo County AB 939 Tipping Fee Surcharge and Waste Management Program Fund Fee, pursuant to County Resolution No. 90-383. If the Contractor delivers Garbage to a landfill-which does not collect the County Tipping Fee Surcharge and Waste Management Program Fund Fee, die Contractor will make, on a monthly basis, the equivalent payment directly to the County's Waste Management Tipping Fee - AB 939 Trust Fund #0159 and Waste Management Tipping Fee Trust-Site Fund#0160. F) Payment of the equivalent fees shall be made to County within thirty (30) days after the end of each calendar month, or prorated portion thereof, in which the Contractor delivers waste to an alternate facility. In the event that Payment is not received by County within thirty (30) days after the date specified, then Contractor shall pay a penalty of ten percent (10%) on the outstanding balance, and Contractor shall also pay to County interest on die outstanding balance at a rate of ten percent (10%) per annum, or the maximum legal rate of interest,whichever is greater,from the date of Contractor's failure to pay. G) As of March 1, 2007 the Tipping Fee Surcharge for Fund # 0159 is$3.00 per ton and the Waste Management Program Fund Fee for Fund#0160 is $0.40 per ton. Payments made by the Contractor shall be sent to the County Franchise Coordinator along with an itemized statement regarding how the payment was calculated. Payments shall be adjusted to reflect any future changes in the amount of these fees. H) Contractor hereby agrees to dispose of all or a portion of the Solid Waste including Recyclable Materials collected pursuant to this Agreement in such manner as may be reasonably designated by City. As of die effective date of this Agreement the City has entered into an agreement with Chicago Grade Landfill Inc. to dispose of Solid Waste except for Recyclable Materials Collected by the Contractor from the City. The Contractor is directed to take all Solid Waste except for Recyclable Materials Collected in die City to Chicago Grade Landfill until such time as the City may direct otherwise. On July 15, 2014 the City entered into a non-exclusive agreement with North San Luis Obispo County Inc. to process and market all Recyclable Materials Collected by the Contractor (other than source separated cardboard) in the City for a 6 year period. Contractor is directed to take all Recyclable Material (other than separated cardboard) to North San Luis Obispo County Inc. until such time as the City may direct otherwise. I) Contractor may propose, and the City may consider other processing and disposal alternatives. In the event a different manner of or location for processing or disposal is selected by the City, then the Parties shall work in good faith to adjust the Contractor's rates hereunder to reflect any increase or decrease in disposal or processing fees, which adjustment shall be effective at the time the new designated manner of disposal or processing begins. City and Contractor will not unreasonably deny any such adjustment. In the event Contractor receives any additional compensation for the value, if any, of the Garbage or recyclables disposed in such a manner, such compensation shall be considered in connection with future rate adjustments. 5.8 Cleaning Commercial Bins Contractor shall steam clean and refurbish all commercial bins at Contractor's own expense up to once per year upon request. Customers desiring more frequent cleaning may arrange additional cleaning with Contractor at a rate established by City, including pickup, cleaning, and replacement of dumpster. Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 14 5.9 Clean-Up Days Each year throughout the term of this Agreement for a one-day period in the spring and a one-day period in the fall, Contractor shall collect, on a designated Saturday, at no additional charge to customers or City all solid wastes delivered to designated sites located within the City, pursuant to rules as mutually agreed by the parties. Said clean up days shall be established annually as mutually agreed by the parties. Contractor shall provide commercial paper shredding equipment at one of the two events to provide confidential, secure and discreet document shredding to the public. The Contractor has the option of malting the shredding day event a separate annual event, with suitable advertisement. Contractor shall prepare related public education materials and arrange for publication or broadcasting said materials. Contractor shall pay all advertising costs for said clean up days. 5.10 Exterior Trash Can and Recyclinu Can Service The Contractor shall provide weekly collection and disposal service to all exterior trash cans and recycling cans at existing City Facilities. Service shall include removal and disposal of trash and recycling within the City owned container, and provide and place a neve suitable can liner in the container. Service shall occur on Monday of each week, unless Monday is a holiday in which case service would be provided the following day. The estimated number of cans is as follows: a. Atascadero Lake Park i. Charles Paddock Zoo 05 cans ii. Lake Park/Pavilion/Lake Path 47 cans iii. Veteran's Memorial 02 cans iv. Alvord Field 07 cans b. Sunken Gardens/Historic City Hall 13 cans C. Colony Park/Community Center 16 cans d. Paloma Creek Park 20 cans e. Transit Center(Capistrano Ave) 03 cans E Downtown Core 12 cans 127 cans 5.11 Street Litter Removal and Sweeping Services The Contractor shall provide street sweeping service as scheduled below. The street sweeping service shall include vacuum, rotary brush sweeping and disposal of materials for all streets listed below(all curbs, and ac dikes, and two,-way center turn lane on ECR): Monthly g. El Camino Real-Santa Barbara Road to R/R bridge at Home Depot 37,000-ft h. Del Rio Rd - Graves Creek to Obispo Rd 2,800-ft i. San Ansehno Rd -Monterey Rd to ECR 1,300-ft j. Traffic Way- Santa Lucia Rd to Potrero Rd 2,500-ft k. Curbaril Ave — ECR to Coromar Ave 1,400-ft 1. Santa Rosa Rd —ECR to Old Santa Rosa Rd 1,600-ft m. Downtown Business District 7,100-ft Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 15 i. Olmeda Ave, Lewis Ave, Palma Ave ii. Entrada Ave,West Mall, East Mall Approx. 53,700-ft(10.2 miles) Quarterly (MayJune, October, December, February) n. Multi-Family Districts i. Santa Ysabel Ave, Robles Ave, Pueblo Ave, Sinaloa Ave 6,000-ft ii. Viejo Camino - ECR to La Paloma Ct. 1.,000-ft iii. Atascadero Avenue -Atasc Mall to 700' south of Morro Rd 2,700-ft iv. Tecorida Ave - Marchant Ave to San Andres Ave 1,300-ft o. Commercial i. West Front Rd - Portola Rd to Santa Rosa Rd. 1,400-ft ii. Atascadero Mall - H,%Nry 101 to Atascadero Ave 1,400-ft iii. East Front Rd/San Gabriel Rd - Santa Rosa Rd to ECR 1,900-ft iv. Capistrano Ave, Pueblo Ave/San Luis Ave. 3.600-ft Approx. 19,300-ft (3.7 miles) 5.12 Bio-Solids Transportation to Landfill The Contractor shall supply a suitable roll-off bin for use by City Wastewater Division to deposit dried bio-solids ready for transport to Chicago Grade Landfill. The Contractor shall also transport the material to the landfill once per year (approximately 250 tons per year. There will be no per ton landfill charge from Chicago Grade Landfill to the Contractor. 5.13 Provide Big Belly Solar Units The Contractor shall provide and deliver three "Big Belly Solar" units to the City within three months of effective dat. Units shall be delivered to three separate City facility locations as determined by the City. Units to be new and in good working order. The Contractor shall warranty the operation of the units for 12-months, after which City will assume maintenance responsibilities. 5.14 Garbage and Recycling Service in Public Areas The Contractor will provide collection of Garbage Containers and Recyclable Material Containers from City facilities enumerated and described on Exhibit B. 5.15 Material Processing 5.15.1 Receipt of Recyclable Material Including Greenwaste The Contractor shall have in place or have made arrangements for a Materials Recovery Facility or Facilities to receive and accept all deliveries of Recyclable Materials and greenwaste generated in the City. The Parties acknowledge that the City may direct Contractor to deliver Recyclable Materials including greenwaste Collected by Contractor under this Agreement to a third party for processing, marketing, and sale. Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014) Page 16 5.15.2 Status of Materials Recovery Facility Any Materials Recovery Facility used by contractor must be designed and constructed in accordance with all applicable state and local laws (e.g., CEQA, California Code of Regulations, etc). The Materials Recovery Facility must have all permits from federal, state, regional, county and city agencies necessary for it to operate as a Material Recovery Facility and must be in full regulatory compliance with all such permits. The selected Materials Recovery Facility must be authorized to accept, under its existing permit, and have sufficient uncommitted capacity to accept, all Recyclable Materials and/or greenwaste delivered to it by, or on behalf of, Contractor for the term of this Agreement. Contractor shall immediately notify City of any notice of breach or default received from Materials Recovery Facility. 5.15.3 Alternative Processing Facility If Contractor becomes unable to deliver the City's Recyclable Materials to Che Materials Recovery Facility due to causes within its control and which could have been avoided by the exercise of due care, the Contractor shall arrange for it to be accepted at another Materials Recovery Facility, in which case Contractor shall pay for any increased transportation costs, any differences in the fees charged at such Materials Recovery Facility and the fees then in effect under this Agreement. If Contractor's inability to deliver the City's Recyclable Materials to the Materials Recovery Facility is not due to causes within its control or which could have been avoided by the exercise of due care, then Contractor shall propose alternative Material Recovery Facilities including all related costs and City shall have the right to approve the alternative to be used. The City shall pay for the increased cost of using an alternative facility. 5.15.4 Disposition of Unauthorized Waste It is understood that the Contractor is not authorized and is not required hereunder to collect and transport Hazardous Waste or restricted or other waste that is not acceptable or permitted for disposal at a transfer station, Material Recovery Facility, or disposal site. In addition, Contractor shall not be required to collect containers that are not set out or filled in accordance with, or do not meet Contractor's collection requirements. Regardless of the reason, when any Solid Waste, Recyclable Material or other material is not collected by Contractor, Contractor shall leave a tag on the material stating the reasons for Contractor's refusal to collect the same. Adequate records of the tags shall be maintained by Contractor and shall be available to the City for inspection upon reasonable notice during business hours. If Contractor observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Waste unlawfully disposed of or released in reportable quantities in the City, including on, in, under or about City property, including streets, easements, rights of way and City waste containers, Contractor shall immediately notify the City of the same. If Contractor discovers Hazardous Waste, or other material that may not be legally accepted, among materials that it has inadvertently accepted, Contractor may either return such materials to the applicable Waste Generator or dispose of such waste at its own expense and pursue all legal rights and remedies it may have against die Waste Generator(s) of such Hazardous Waste, if-the Waste Generator(s)can be identified. 5.16 Disposal Contractor shall ensure that the residual from the Recyclable Materials delivered to the Materials Recovery Facility by the Contractor are disposed of at a permitted disposal site in full regulatory compliance. Monthly residue shall not exceed ten (10) percent of the monthly Recyclable Materials delivered to the Materials Recovery Facility. If the City directs Contractor to deliver Recyclable Materials to a third party facility for processing, then such third party facility shall be responsible for disposal of residual and the processing Atascadero Solid Waste Collection Franchise Agreeinent(July 15,2014) Page 17 requirements as described above and the City shall use its best efforts to enforce such requirements against the third party processor. ARTICLE 6 OTHER SERVICES 6.1 Billing and Collection of Charges Contractor shall be responsible for directly billing and collecting charges due from all residential and commercial customers at rates established by the Agreement. Contractor shall bill residential customers bi-monthly in advance and commercial customers monthly in arrears. The City shall approve the format of the bills sent to customers. The Contractor may indicate any AB 939 fees or other fees (other than franchise fees) as a separate line item on customer invoices. Contractor shall be solely responsible for collecting all delinquent charges pursuant to a collection method approved by City. City shall not be responsible for paying Contractor for said delinquent charges, provided, however, City may, at its sole discretion, establish a method for City to collect said delinquent charges as allowed by law. The City shall render reasonable cooperation, as requested by Contractor in its attempts to collect delinquent accounts. 6.2 Accounting Contractor shall keep a system of books and accounts relating to Contractor's performance of services under this Agreement in accordance with generally accepted accounting principles and shall keep all records for a period of at least three (3) years after the termination of this Agreement. City and its auditors shall have the right to examine all records and accounts of Contractor relating to Contractor's performance of services under this Agreement in order to ensure Contractor's compliance with the terms hereof, Monday through Friday between the hours of 9:00 a.m. and 5:00 p.m. upon forty eight (48) hours advance notice. In the event that Contractor requests a base year rate review pursuant to Section 8.3, and if requested by City, a certified public accountant selected by Contractor shall prepare at Contractor's expense audited statements of Contractor's financial records or reviewed statements related to this Agreement. Contractor shall not be required to provide such audit more than once per year. The scope of the audit shall be as selected by the City. City reserves the right to perform an independent audit at City's expense of Contractor's compliance with the franchise fee provisions of this Agreement. In the event there is a discrepancy of five (5) percent or more between the City's audit and Contractor's actual payments, Contractor shall reimburse City for the cost of said audit_ 6.3 Liaison With City Contractor shall maintain on-going liaison with City regarding all solid waste management activities and any matters relating to the performance of this Agreement, including complaints. Such liaison includes but is not limited to Contractor's attendance at City Council meetings as requested by the City and at no extra charge to the City. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014) Page 18 6.4 Comvlaints Contractor shall maintain a record of all written and verbal complaints received, which shall be provided to City upon request. Said record shall contain at minimum information as follows, subject to cooperation from the public: X Name, address, and telephone number of complaining party; X Name,service address, and telephone number if different than above; X Description of problem/complaint and related date and time if applicable; X Date received; and X Date and description of Contractor's response and action taken. Complaints received from customers or City shall be acted upon immediately and Contractor shall make every reasonable effort to resolve said complaints within twenty-four (24) hours of receipt. 6.5 Office Contractor shall maintain an office in the City of Atascadero at a fixed location where customers may by either phone, computer or in-person pay bills, arrange for service, and file complaints. Telephone numbers shall be a local call to residents and businesses of the City. Contractor shall at all times between 9:00 a.m. and 5:00 p.m., Monday through Friday, except holidays, have qualified personnel with whom City and members of the public may communicate. During all other hours, Contractor shall have a representative, answering or message providing/receiving (voice snail) service available to the public. Contractor's office and telephone shall be open to the public during normal business hours. 6.6 Buy Back Center The Contractor agrees to continue to operate the existing San Luis Avenue Buy Back Center at no additional fee until January 1, 2016. Between the effective date of this contract and January 1, 2016 the Contractor will in good faith worlc with City Staff and San Luis Obispo IWMA to develop a service and funding plan for continued operation of the Buy Back Center, or the transfer of that requirement to local supermarkets, or others, in accordance with.CalRecycle regulations. As proposed by the Contractor. the Buy Back Center could remain open after January 1, 2016 under one of the following conditions: a. An additional to be determined and mutually agreeable increase in commercial rates, not to exceed 6.8%; or b. An additional to be determined and mutually agreeable monthly increase in residential rates in year 2 and then again in year 3. The increase in year 2 shall not exceed $0.40 per month and the increase in year 3 shall not exceed $0.40 per month. (These increases would be in addition to any CPI increases); or c. A cost sharing agreement with local supermarkets to offset operational costs of the Buy Back Center to avoid the need for onsite buy back facilities, or d. Other mutually agreeable terms, and or combination of the above. The proposed resolution will be brought back to the City Council for approval by August 15, 2015. In the absence of implementation of one or a combination of the above options, Contractor would have no obligation to continue operating the Buy Back Center beyond December 31, 2015. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 19 ARTICLE 7 PAYMENTS TO CITY 7.1 Franchise Fee Contractor shall pay to City a franchise fee in an amount set by City and collected by Contractor for services performed under this Agreement, payable monthly on or before the last business day of the following month. Contractor shall provide to Citywith each monthly franchise fee payment a statement of Gross Revenues Collected by Contractor during the previous montli. The initial amount of the franchise fee shall be 10%. Contractor shall pay a late charge of five (5) percent per month on all franchise fees that are not paid within thirty (30) days of the date due. The parties agree that such late charges represent a fair estimate of the City's added administrative expenses caused by such delinquent payments. The franchise fee is a pass through expense for purposes of this Agreement, and as such, if the City changes the franchise fee, the Contractor's rates under this Agreement shall be adjusted accordingly. The franchise fee shall be included in the rates charged by Contractor and shall not be separately itemized on bills to Contractor's customers. 7.2 AB 939 Fee If requested by City, Contractor shall pay an AB 939 fee, to be specified annually by the City. In addition if the San Luis Obispo County Integrated Waste Management Authority"IWMA" implements an AB 939 fee Contractor shall pay that fee directly to the IWMA. All AB 939 fees paid to the City or IWMA shall be considered a pass through cost for purposes of rate setting, and as such if the City or IWMA changes these fees, the Contractor's rates shall be adjusted accordingly. 7.3 Business License Tax Contractor shall pay each annual business license tax. 7.4 Other Fees The City shall reserve the right to set "Other" Fees, as it deems necessary. These expenses will be determined and a fee designed to reimburse the City. Such fees shall be set annually by City resolution and may be considered a pass through cost for purposes of rate setting, and as such if the City adopts or changes these fees, the Contractor's rates shall be adjusted accordingly. 7.5 Adiustment of Fees The City may adjust the amount of fees annually. Such adjustment shall be reflected in the rates that the Contractor is allowed to charge and collect from customers. 7.6 Review of Fee Payments The City, or its agent, reserves dhe right to annually perforin an independent review of fee payments at its own expense, to verify that fees are being paid in accordance with Agreement. Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014) Page 20 ARTICLE 8 CONTRACTOR'S COMPENSATION AND RATES 8.1 General Contractor's compensation provided for in this Article shall be the full, entire and complete compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, profit and all other things necessary to perform all the services required by this Agreement in the manner and at the times prescribed. The Contractor does not look to the City for payment of any sums under this Agreement. Contractor will perform the responsibilities and duties described in this Agreement in consideration of the tight to charge and collect from customers for services rendered at the established under this Agreement, as may be adjusted from time-to-tune. The City and Contractor, by mutual agreement, may re-structure the rates set forth in this Agreement as they deem appropriate so long as such re-structuring is revenue neutral to Contractor. 8.2 Collection Rates Contractor shall provide the Collection, recycling, transportation and disposal services required under this Agreement for the rates set forth in the Service Rate Schedule attached hereto and incorporated herein as Exhibit A, as the same may be adjusted in accordance with this Section. 8.3 CPI Adiustment Commencing on the one year anniversary of the effective date of this Agreement, and on the same date annually thereafter (the "Adjustment Date"), the rates set forth in this Agreement, as adjusted hereunder, shall be automatically adjusted by a percentage equal to 85% of the annual percent change in the Consumer Price Index ("CPI") for All Urban Consumers -All Items, for the Los Angeles - Riverside - Orange County metropolitan area (1982-84 = 1.00) as published by the Bureau of Labor Statistics for the 12-month period ending May 31. At least thirty (30) days prior to the Adjustment Date, Contractor shall notify City of the CPI adjustment to take effect on the Adjustment Date and shall provide City with its computations therefore. After January 1, 2015, but no more than once every two years, the Contractor may request a base year rate review. If such review is requested by Contractor, Contractor will use the guidelines and approach outlined in the City of San Luis Obispo's "Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates". Rates shall be based upon an operating ratio of 92 percent as defined in the Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates . 8.4 Extraordinary Rate Adiustments The rates set by this Agreement are calculated to pay certain expenses and costs that are of a contingent and uncertain nature. Therefore, in addition to the annual rate adjustment provided by Section 8.3, the rates under. this Agreement shall, upon written request of Contractor or City,be further adjusted on an interim basis for increased or decreased expenses associated with performance of the services hereunder clue to any one or more of the following causes: Atascadero Solid Waste Collection Franchise Agreement(July 15, 2011) Page 21 (a) material changes in Contractor's costs resulting from a Force Majeure event; (b) changes to Contractor's operations or the Franchise Fee or other fees required or initiated by City; (c) Contractor desires to provide additional new services or the City requests the Contractor to provide any additional new services, or Contractor desires or the City requests the Contractor to change the method of providing, or the technology used to provide, existing services under this Agreement; (d) any increase or decrease in disposal fees or in fees for the processing of Recyclable Materials if such Recyclables Materials are being processed at a third party facility; or (e) any change in law, statute, rule, regulation, ordinance, order or requirement of any federal,state, regional or local government that occurs after the Effective Date of this Agreement. If Contractor and City cannot agree on terms and conditions of such extraordinary rate adjustments the matter shall be submitted to the City Council for a determination of whether an extraordinary rate adjustment would be allowed and the amount of the adjustment. The determination shall be final. ARTICLE 9 RECORDS, REPORTS AND INFORMATION, STUDIES AND HEARING REQUIREMENTS 9.1 Records 9.1.1 General Contractor shall maintain records required to conduct its operations, to support requests it may make to City, and to respond to requests from City in the conduct of City business. Additionally, the Contractor shall also keep and maintain records reasonably necessary for audits, as required by this Agreement, and shall keep and maintain all records reasonably necessary to develop reports and financial statements required with respect to this Agreement. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data/records shall be protected and backed up. 9.1.2 Financial Records Financial records shall separate all records related to the services performed under this Agreement from any and all other types of businesses and operations conducted by the Contractor. 9.1.3 General Records City approved records (format) shall be maintained for the City separate from other jurisdictions relating to: customer services; weight of recyclable materials by type of materials; weight of garbage; routes; facilities, inventory of equipment and personnel used; facilities and equipment operations, maintenance and repair; processing, marketing and sale of recyclable materials including name of the purchaser, the date of sales transaction, processing cost per ton, quantity purchased, value per ton and net sales records; complaints; and, missed pick ups. If a third party is designated by the City to perform processing of Recyclables, then the reporting related to processing and sale of Recyclables shall be provided to the City and Ataseadero Solid Waste Collection Franchise Agreement (July 15, 2014)Page 22 Contractor by such third party, provided, however, that Contractor shall remain responsible for filing the certification for the City curbside recycling (CS) program and Contractor shall continue to receive the annual CRV payments. Contractor shall maintain records for a period of 3 year past the termination of this Agreement. 9.2 Reports 9.2.1 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. Contractor may propose report formats drat are responsive to the objectives and audiences for each report. The City shall approve the format of each report. Monthly reports shall be submitted within twenty (20) calendar days after the end of the month being reported. Annual reports shall be submitted before March 30th, for the previous Fiscal Year. 9.2.2 Monthly Reports The information listed shall be the minimum reported: 1. Garbage (sorted by type of Generator) and Recyclable Materials collected, in tons, by month, and cumulative for report year. 2. Complaint summary, for month and cumulative for report year and narrative summary assessment of problems encountered and actions taken with recommendations to City for improvement. 3. Number of accounts by category for each month of reporting year. 4. Commercial Recyclable Materials Container distributions. The City may designate any additional information that it wishes provided in the monthly reports. 9.2.3 Annual Report If requested by City, Contractor shall submit an Annual Report is to be essentially in the form and content of the monthly reports. The annual report shall also include a complete inventory of equipment used to provide all services. 9.3 Right toInspect Records City shall have the right to inspect or review documents or records required expressly or by inference pursuant to this Agreement, or any other similar records or reports of Contractor that City shall deem, in its reasonable discretion, necessary to evaluate the services performed by Contractor under this Agreement. The City retains the right to have an independent third party or agent of the City's choosing, such as a CPA, participate in the records inspection. The cost of such inspection or review will be borne by the City. 9.4 Waste Generation/Characterization Studies Contractor acknowledges that the City must perform Solid Waste generation and disposal characterization studies periodically to comply with AB 939 requirements. Contractor agrees to participate and cooperate with Cityand its agents to accomplish studies and data collection and prepare reports as needed to determine weights and volumes of Solid Waste generated, diverted, disposed, transformed, or otherwise handled/processed to satisfy AB 939 Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 23 requirements. ARTICLE 10 INDEMNIFICATION,INSURANCE AND BOND 10.1 Indemnification Contractor shall indemnify and Bold harmless City, its officers, elected officials, employees, and agents from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the negligence or willful misconduct of Contractor, its officers, employees agents and/or sub Contractors in performing services under this Agreement; (2) the failure of Contractor, its officers, employees, agents and/or subcontractors to comply in all respects with the provisions of this Agreement, applicable laws (including, without limitation, the Environmental Laws) and regulations, and/or applicable permits and licenses; (3) the acts of Contractor, its officers, employees, agents and/or subcontractors in performing services under this Agreement for which strict liability is imposed by law (including, without limitation, the Environmental Laws). Contractor further agrees to and shall, upon demand of City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) the City, its officers, elected officials, employees, and agents against any claims, actions, suits or other proceedings,whether judicial, quasi-judicial or administrative in nature, arising or resulting from any events described in the immediately preceding paragraph. Nothing in this paragraph, however, shall require Contractor to indemnify or defend City to the extent any claims or liabilities arise out of the sole negligence or willful misconduct of City, or the actions or activities of any third party processing facility or third parry disposal facility designated by the City Contractor's duty to indemnify and defend shall survive the expiration or earlier termination of this Agreement. 10.2 Landfill Diversion The Contractor acknowledges that the City has adopted a SRRE that selects Recycling programs as a means of diverting waste. It is therefore of foremost importance that the Recyclable Materials collected under this Agreement be converted into a functional and marketable product in order that the materials may be diverted from landfill disposal in compliance with the City's SRRE, and AB 939. The Contractor shall therefore ensure that the processing method used shall, at all times, meet the intent of the City's SRRE and AB 939. Should the Contractor find it necessary to utilize another method of processing in order to meet the intent of the SRRE and AB 939, the City shall be given an opportunity to make its own determination as to the suitability and cost-effectiveness of such process and shall approve such process in writing. If the City directs Contractor to deliver Recyclables to a third party for processing, then the foregoing requirements shall be enforced against such third party processor,rather than Contractor. 10.3 AB 939 Indemnification Contractor agrees to indemnify and hold harmless City, its officers, elected officials, employees, and agents from and against all fines and/or penalties imposed by the California Integrated Waste Management Board in the event the source reduction and Recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream Collected under this Agreement if such failure is due in substantial part due to the failure of Contractor to perform its obligations under this Agreement or for delays in providing information that prevents City from submitting reports required by AB 939 in a timely Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 24 manner. Nothing in this paragraph, however,shall require Contractor to indemnify or defend City to the extent any claims or liabilities arise out of the sole negligence or willful misconduct of City, or the actions or activities of any third party processing facility or third party disposal facility designated by the City. 10.4 Insurance During the term of this Agreement, Contractor shall carry insurance in accordance with this Article and such other insurance as required by law. Lack of insurance or inadequate insurance do not negate the Contractor's obligations under this Agreement. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery, except where caused by the active negligence, sole negligence, or willful misconduct of the City. Contractor hereby grants to the City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services (occupancy of premises) of Contractor herein, a waiver of any right to subrogation which any such insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Insurance shall be secured and approved by City's risk manager prior to commencement of work according to this Agreement. Maintenance of proper insurance coverage is a material element of this Agreement and failure to maintain or renew coverage or to provide evidence of coverage and/or renewal may be treated by the City as a material breach of Agreement. Contractor shall forward the City specifications and forms in Exhibit C to Contractor's insurance agent for compliance. A. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1 Insurance Services Office Commercial Liability coverage (occurrence form CO 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability insurance. 4. Pollution Legal Liability. B. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. Commercial or Comprehensive General Liability: Five Million Dollars ($5,000,000) combined single limit per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit. Commercial Liability policy shall contain no pollution exclusion of any description unless Contractor provides for pollution insurance coverage in an amount equal to or greater than Commercial Liability policy. 2. Automobile Liability: Five Million Dollars ($5,000,000) combined single limit per occurrence for bodily injury and property damage and accidental spills and discharges while transporting and/or processing materials. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and employers liability with limits of$1,000,000 per occurrence for bodily injury or disease. Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 25 4. Pollution Liabilities: One Hundred Thousand Dollars($100,000). C. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, Council members, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, Council members, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, Council members, its officers, officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty(30) days prior written notice by certified mail, return receipt required,has been given to the City. 6. Pollution, if on a Claims Made form: a. The Retro Date must be shown, and must be before the date of the contract or the beginning contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract work. C. If coverage is canceled or non-renewed, and not replaced with another claims made policy form with a Retro Date prior to the contract effective date, the Contractor must purchase extended reporting coverage for a minimum of two years after completion of contract. 7. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014)Page 26 D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A--VL Insurers selected by Contractor shall be admitted to issue the specific line of required insurance in the State of California. E. Verification of Coverage. Contractor shall furnish the City with copies of required insurance certificates or endorsements effecting coverage required herein. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. F. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish copies of required insurance policies and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. G. Occurrence Based Coverage. All policies secured by Contractor shall be occurrence and not claims based unless City so consents in writing. H. Upon direction of the City, Contractor shall reduce or eliminate deductibles or self-insured retentions with respect to the City or procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. If any third person makes a claim against Contractor or any subcontractors exceeding the amount of any deductibles or self-insured reserves,Contractor shall promptly notify the insurer and City thereof. 10.5 Performance Bond The Contractor shall provide and maintain at all times a valid Contractor's Performance and Payment Bond or bonds, letter of credit or other similar instrument reasonably acceptable to and approved in writing by the City in the amount of five hundred thousand dollars ($500,000). The bond, letter of credit or other similar instrument shall be issued for a period of not less than one year, and the Contractor shall provide a neva bond, letter of credit or similar instrument, and evidence reasonably satisfactory to the City of its renewability, no less than sixty (60) calendar days prior to the expiration of the bond, letter of credit or other similar instrument then in effect. The City shall be notified in writing of any cancellation by the issuer of the bond at least thirty days prior to such cancellation. ARTICLE 11 CITY'S RIGHT TO PERFORM SERVICE 11.1 General In the event that Contractor, for any reason whatsoever, fails, refuses or is unable to Collect, transport, process or market any or all Garbage or Recyclable Materials which it is required by this Agreement to Collect, process and market, at the time and in the manner provided in this Agreement, for a period of more than seven (7) calendar days, and if, as a result thereof, Garbage or Recyclable Materials should accumulate in the City to such an extent, in such a manner, or for such a time that the City Manager or his/her designee should find that such accumulation endangers or menaces the public health, safety or welfare, then City shall have the right, but not the obligation, upon twenty-four (24) hour prior written notice to Contractor during the period of such emergency as determined by the City Manager or his/her designee, (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 temporary possession of any or all of Contractor's equipment and other property to Collect, transport, process, market and/or dispose any Garbage or Recyclable Materials generated within the City which Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 27 Contractor would otherwise be obligated to Collect, transport, process or market pursuant to this Agreement. In the event the City takes possession of the Contractor's equipment and other property, the City shall be required to pay a reasonable rental fee for such equipment, but the City does not guarantee repair of existing problems with equipment and facilities. If Contractor is then providing billing services and City perfonns the services, Contractor will promptly forward to City all rates Contractor has collected in advance, or otherwise, to City for the period in duration equal to City's performance of the services. If Contractor does not promptly forward those rates, City may draw on the performance bond or other approved security for those amounts. Notice of Contractor's failure, refusal or neglect to Collect, transport, process, market and/or dispose Garbage or Recyclable Materials may be given orally by telephone to Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty-four (24) hours of the oral notification. Contractor further agrees that in such event: (1) It will take direction from City to affect the transfer of possession of property and equipment to City for City's use. (2) It will, if City so requests, keep in good repair and condition all of such property and equipment, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. (3) City may immediately engage all or any personnel necessary or useful for the Collection, transportation, processing marketing and/or disposing of Garbage or Recyclable Materials, including, if City so desires, employees previously or then employed by Contractor, Contractor further agrees, if 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 Garbage or Recyclable Materials Collection, Transportation, processing and marketing operations and for the billing and collection of fees for these services. City agrees that it assumes complete responsibility and liability for the proper and normal use of such equipment and facilities while in its possession. City shall pay to Contractor the reasonable rental value of the equipment and facilities, possession of which is taken by City, for the period of City's possession, if any, which extends beyond the period of time for which Contractor has rendered bills in advance of service. Except as otherwise expressly provided in the previous paragraph, City's exercise of its rights under this Article 11 (1) does not constitute a taking of private property for which compensation must be paid; (2) will not create any liability on the part of City to Contractor; and (3) does not exempt Contractor from the indemnity provisions of Article 10, Indemnification, Insurance and Bond, which are meant to extend to circumstances arising under this Article, provided that Contractor is not required to indemnify City against claims and damages arising from the negligence of City officers, employees and agents in the operation of Collection vehicles or performance of services during the time City has taken possession of such equipment. Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 28 11.2 Temporary Possession of Contractor's Property If the City suffers an interruption or discontinuance of service as described in Article 11.1 (including interruptions and discontinuance due to events described in Article 12.4, Excuse from Performance), City may take temporary possession of and- use all of Contractor's property described above until other suitable arrangements can be made for the provision of such services. The same notice requirements of Article 11.1 are applicable. 11.3 City's Right to Relinquish Possession It is further mutually agreed that City may at any time at its discretion relinquish possession of any or all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the services as provided in this Agreement,whereupon Contractor shall be bound to resume the same. 11.5 Duration of City's Possession City's right pursuant to this Article to retain temporary possession of Contractor's facilities and equipment, and to render Collection services, shall terminate when City determines that such services can be resumed by Contractor, or when City no longer reasonably requires such facilities or equipment. In any case, City has no obligation to maintain possession of Contractor's property and/or continue its use for any period of time and may at any time, in its sole discretion,relinquish possession to Contractor. ARTICLE 12 DEFAULT,REMEDIES AND LIQUIDATED DAMAGES 12.1 Events of Default All provisions of this Agreement to be performed by Contractor are considered material. Each of the following shall constitute an event of default. A. Fraud or Deceit. If Contractor practices, or attempts to practice, any fraud or deceit upon city. B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay its debts when due, or upon listing of an order for relief in favor of Contractor in a bankruptcy proceeding. The Contractor is also in default if there is an assignment for the benefit of its creditors. C.Failure to Maintain Coverage. If Contractor fails to provide or maintain in full force and effect the Workers' Compensation, liability, indemnification coverage or any insurance coverage or bond required under this Agreement. D. Violations of Regulation. If Contractor facilities fall out of full regulatory compliance or if Contractor violates any orders or filings of any regulatory body having jurisdiction over Contractor relative to this Agreement, provided that Contractor may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Agreement shall be deemed to have occurred. E. Failure to Perform. If Contractor ceases to provide Garbage, Recycling or Greenwaste services as required under this Agreement for a period of two (2) days or more, for any reason within the control of Contractor. F. Failure to Pay/Report. if Contractor fail<5 to make any timely payments, including Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 29 liquidated damages and penalties, required under this Agreement and/or fails to provide City with required information, reports, and/or records in a timely manner as provided for in the Agreement. G. Acts or Omissions. Any other act or omission by Contractor which violates the terms, conditions, or requirements of this Agreement, the California Integrated Waste Management Act of 1989, as it may be amended from time to time, or any order, directive, rule, or regulation issued thereunder and which is not corrected or remedied within the time set in the written notice of the violation or, if Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if Contractor should fail to commence to correct or remedy such violation within the time set fords in such notice and diligently effect such correction or remedy thereafter. H. False or Misleading 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 is made, whether or not any such representation or disclosure appears as part of this Agreement. 1. Attachment. There is a seizure of attachment of, or levy on, the operating equipment of Contractor, including without limits its equipment, maintenance or office facilities, or any part thereof. J. Suspension or Termination of Service. There is any termination or suspension of the transaction of business by Contractor, including without limit, due to labor unrest including strike, work stoppage or slowdown, sickout, picketing, or other concerted job action, lasting more than two business days, unless caused by a Force Majeure event. Upon default by the Contractor, the City Manager or his/her designee shall provide written notice to Contractor of the violation. The City Manager or his/her designee shall include in the notice, a demand that the Contractor correct the violation. The Contractor shall thereafter have thirty(30) days to cure the violation, of if the violation cannot be cured within such timeframe, the Contractor shall have commenced to cure said violation in a manner that is acceptable to the City, in its reasonable discretion. For purposes of this Agreement and any notice required thereunder, the term "days"shall mean calendar days. 12.2 Right to Terminate Upon Default Upon a default by Contractor, and Contractor's failure to cure, the City shall have the right to terminate this Agreement upon one (1) day notice if the public health or safety is threatened, or otherwise twenty (20) days notice, following a hearing by the City Council. This right of termination is in addition to any other rights of City upon a failure of Contractor to perform its obligations under this Agreement. City's right to terminate this Agreement and to take possession of Contractors equipment and facilities are not exclusive, and City's termination of this Agreement shall not constitute an election of remedies. Instead, they shall be in addition 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 lead time required to effect alternative service, and the rights granted by City to Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 30 Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled to injunctive relief. 12.3 Liquidated Damages A. General. City finds, and Contractor agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a breach by Contractor of its obligations under this Agreement. B.Service Performance Standards;Liquidated Damages for Failure to Meet Standards. The parties acknowledge that consistent, reliable Garbage, Recycling and Greenwaste service is of utmost importance to City and that City has considered and relied on Contractor's representations as to its quality of service commitment in awarding the Agreement to it. The parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The parties further recognize that if Contractor fails to achieve the performance standards, comply with complaint resolution criteria, or fails to submit required documents in a timely manner, City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages that City will suffer. Therefore, without prejudice to City's right to treat such non-performance as an event of default under this Article 12, the parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of hann to City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or inconvenient. Recognizing the importance of resolving any failure to meet the service performance standard, the City shall contact Contractor within two (2) days of any failing reported directly to the City. Contractor agrees to pay (as liquidated damages and not as a penalty) tie amounts set forth below: Collection Reliability and Quality For each failure over five (5) annually to commence service to a new customer account within seven (7) days after order: $150.00 For each failure over twenty-four(24) annually to Collect Garbage, Recyclables or Greenwaste,which has been properly set out for Collection, from an established customer account on the scheduled Collection day and not collected within 24 hours after notice of missed pick-up: $150.00 For each failure to Collect Garbage, Recyclables or Greenwaste,which have been properly set out for Collection, from the saine customer on two(2) consecutive scheduled pickup days: $150.00 For each occurrence over five (5) annually of damage to private property: $250.00 For each occurrence over ten (10) annually of discourteous behavior: ` 250.00 For each failure over ten (10) annually to clean up Garbage, Recyclables or Greenwaste ,spilled from Containers: $150.00 Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 31 For each occurrence over five(5) annually of Collecting Garbage, Recyclables or Greenwaste,during unauthorized hours: $250.00 For each failure to respond to a customer complaint within twenty-four(24)working hours: $100.00 Timeliness of Submissions to Citv REPORTS Any report shall be considered late until such time as City receives a correct and complete report. For each calendar day a report is late, the daily assessment shall be: Monthly Reports: For each infraction $25 per day Annual Reports: For each infraction $50 per day Liquidated damages will only be assessed after Contractor has been given the opportunity but failed to rectify the damages, as described in this Agreement (e.g., twenty-four (24) working hours to respond to a complaint). 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 incidents)/non-perfonnance. Contractor may review(and make copies at its own expense) all information in the possession of City relating to incident(s)/non-perfonnance. Contractor may, within ten (10) days after receiving the notice, request a meeting with City. If a meeting is requested, it shall be held by the City Manager or his/her designee. Contractor may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. The City Manager or designee will provide Contractor with a written explanation of his or her determination on each incidents)/non-performance prior to authorizing the assessment of liquidated damages. Tlie decision of the City Manager or designee shall be final. C. Amount. The City Manager or his/her designee 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. Timing of Payment. Contractor shall pay any liquidated damages assessed by City within thirty (30) days after they are assessed. If they are not paid within the thirty (30) day period, City may proceed against the security required by this Agreement or order the termination of this Agreement,or both. 12.4 Force Majeure 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 "acts of God", war, civil insurrection, riots, acts of any government (including judicial action), unavailability of third party disposal or processing facilities designated by the City, and other similar catastrophic events which are beyond the control of and not the fault of die party claiming excuse from performance hereunder. Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014) Page 32 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 Article. The interruption or discontinuance of Contractor's services caused by one or more of the events excused shall not constitute a default by Contractor under this Agreement. Notwithstanding the foregoing, however, if Contractor is excused from performing its obligations hereunder for any of the causes listed in this Article for a period of thirty (30) days or more, City shall have the right to review the circumstances under which the excuse from performance was granted. After such review, if the City determines the excuse from service is no longer valid, die City shall notify the Contractor in writing to resume service within two (2) days from the receipt of such notification. If the Contractor fails to resume service within the two (2) days, the City shall have the right to terminate this Agreement by giving ten (10) days notice, in which case the provisions relative to taking possession of Contractor's land, equipment and other property and engaging Contractor's personnel in Article 11, City's Right to Perform Services, and this Article 12 shall apply. 12.5 Financial Material Errors. Omissions or Irregularities The City may review, test and audit the books and records of the Contractor related to the services provided hereunder for the purpose of determining whether the Contractor is complying with the terms of tie Agreement. In the event that material errors or omissions or irregularities are identified, then the cost associated with the audit, test or review shall be paid by tie Contractor to tie City. In the case of errors, materiality shall be deemed to be five percent (5%) or greater in franchise fee payments due the City. Recovery of any over payment will be negotiated on a case-by-case basis. ARTICLE 13 OTHER AGREEMENTS OF THE PARTIES 13.1 Relationship 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 of Contractor shall be or shall be deemed to be an employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive control over tie manner and means of conducting the Recycling services performed under this Agreement, and all Persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, subcontractors and agents. Neither Contractor nor its officers, employees,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. 13.2 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 of the United States, the State of California, City, and with all applicable regulations promulgated by federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended during the Term. Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 33 13.3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 13.4 Jurisdiction 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 jurisdiction over such lawsuits. Venue of any such lawsuits shall be in San Luis Obispo County. 13.5 Assignment Except as may be provided for in Article 11, (City's Right to Perform Service), neither party shall assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement to any other Person without the prior written consent of the other party. Any such assignment made without the consent of the other party shall be void and the attempted assignment shall constitute a material breach of this Agreement. The Contractor shall consent to any assignment to a joint powers authority, or any similar public entity assignee of the City. In addition, Contractor may assign this Agreement w=ithout consent to another corporate affiliate of Waste Management, Inc., provided such entity has assets at least as significant as Contractor. For purposes of this Article when used in reference to Contractor, "assignment" shall include, but not be limited to (1) a sale, exchange or other transfer of at least fifty-one percent (51%) all of Contractor's assets dedicated to service under this Agreement to a third party; (2) a sale, exchange or other transfer of outstanding common stock of Contractor to a third party provided said sale, exchange or transfer may result in a change of control of Contractor; (3) any dissolution, reorganization, consolidation, merger, re-capitalization, stock issuance or re- issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which results in a change of ownership or control of Contractor; (4) any assignment by operation of law, including insolvency or bankruptcy, malting 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 any combination of the foregoing (whether or not in related or contemporaneous transactions)which has the effect of any such transfer or change of ownership, or change of control of Contractor. Contractor acknowledges that this Agreement involves rendering a vital service to City's residents and businesses, and that City has selected Contractor to perform the services specified herein based on (1) Contractor's.experience, skill and reputation for conducting its Solid Waste management operations in a.safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Contractor to perform the services to be rendered by Contractor under this Agreement. If Contractor requests City's consideration of and consent to an assignment, the City may deny or approve such request at its complete discretion. The City is concerned about the possibility that assignment could result in significant rate increases, as well as a change in the quality of service. Accordingly, the following standards have been set to ensure that assignment will result in continued quality service. In addition, the City reserves the right to solicit competitive bids for these services if the assignment results in a request by the assignee for rate increases that are higher than the inflationary index and do not reflect value changes in service standards. At a minimum, no request by Contractor for consent to an assignment Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014)Page 34 need be considered by City unless and until Contractor has met the following requirements: A. Contractor shall undertake to pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment; B. Contractor shall furnish City with audited financial statements of the proposed assignee's operations for the immediately preceding three (3)operating years; C. Contractor shall furnish City with satisfactory proof: 1) that the proposed assignee has at least five (5) years of Recyclable Material management experience on a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement; ?) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, state or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with state, federal or local Environmental Laws and that the assignee has provided City with. a complete list of such citations and censures; 3) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; 4) that the proposed assignee conducts its Solid Waste management practices in accordance with sound waste management practices in full compliance wadi all federal, state and local laws regulating the Collection, transportation, processing, marketing and disposal of Solid Waste including Hazardous Wastes; 5) that the proposed assignee, and any its officers, directors or employees have not been convicted of a) fraud or criminal offense in connection with obtaining, attempting to obtain, procuring or performing a public or private agreement related to Recyclables or Solid Waste services of any kind (including collection, hauling, transfer, processing, composting or disposal), including this Agreement or any amendment thereto or b) bribery or attempting to bribe a public officer or employee of a local, state, or federal agency in that officer or director's of Contractor's employee's official capacity; or c) embezzlement, extortion, racketeering, false claims, false statements, forgery, falsification or destruction of records, obstruction of justice, knowingly receiving stolen property, theft, or misprision (failure to disclose) of a felony; or d) unlawful disposal of Hazardous or designated waste the occurrence of which the Contractor knows or should have known; and, 6) of any other information required by City to ensure the proposed assignee can fulfill the Terms of this Agreement in a timely safe and effective manner. 13.6 Subcontracting Except as approved in writing by the City, Contractor shall not enter into an agreement to have another Person perform Contractor's duties of this Agreement. Contractor shall undertake to pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed subcontractor., and to review and finalize any documentation required as a condition for approving any such subcontracting agreement. 13.7 Binding on Assigns The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns of the parties. Atascadero Solid Waste Collection Franchise Agreement(July 15,2014)Page 35 13.8 Transition to Next Contractor If the transition of services to another Contractor occurs through expiration of term, default and termination, or otherwise, Contractor will cooperate with City and subsequent Contractor(s) to assist in an orderly transition which will include Contractor providing route lists and billing information. Contractor will not be obliged to sell Collection vehicles or Containers to the next Contractor. Depending on Contractor's circumstances at the point of transition, Contractor at its option may enter into negotiations with the next Contractor to sell(in part or all) Collection vehicles and/or containers. 13.9 Parties in Interest Nothing in the Agreement, whether express or implied, is intended to confer any rights on any persons other than the parties to it and their representatives, successors and permitted assigns. 13.10 Waiver The waiver by either party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either party of any monies that become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other party of any provision of this Agreement. 13.11 Contractor's Investigation Contractor has relied on its own investigations, and not on any representations of the City or its agents of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 13.12 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: City of Atascadero 6500 Palma AvenueAtascadero, CA 93422 Attn: City Manager If to Contractor: USA Waste of California, Inc., dba AWA 7625 San Luis Avenue Atascadero, CA 93422 Attn. Dan Harris The address to which communications may be delivered may be changed from time to time by a notice given in accordance with this Article. The notice, if mailed, is deemed served three (3) days after the mailing. 13.13 Representatives of the Parties 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 as provided below. The City Council may delegate, in writing, authority to the City Manager or his/her designee, City Attorney, and/or to other City employees and may permit such employees, in turn, to delegate in Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014) Page 36 writing some or all of such authority to subordinate employees. Contractor may rely upon actions taken by such delegates if they are within the scope of die authority properly delegated to them. Contractor shall, by the effective date, designate in writing a responsible officer who shall serve as the representative of Contractor in all matters related to the Agreement and shall inform City in writing of such designation and of any limitations upon his or her authority to bind Contractor. City may rely upon action taken by such designated representative as actions of Contractor unless they are outside the scope of the authority delegated to him/her by Contractor as communicated to City. 13.14 City Free to Negotiate with Third Parties City may investigate all options for the Collection, processing and marketing of Recyclable Materials after the expiration of the Term. Without limiting generality of the foregoing, City may solicit proposals from Contractor and from third parties for the provision of Garbage and Recycling services, and any combination thereof, and may negotiate and execute Agreements for such services that will take effect upon die expiration or earlier termination under Article 12.1 (Events of Default) of this Agreement. 13.15 Compliance with Citv Municipal Code Contractor shall comply x ith all provisions of the City Municipal Code and with any and all amendments to these provisions during the Term of this Agreement. 13.16 Privacy Contractor shall strictly observe and protect the rights of privacy of customers. Information identifying individual customers or the composition or contents of a customer's waste stream shall not be revealed to any person, governmental unit, private agency, or contractor, unless upon the authority of a court of law, by statute, or upon valid authorization of the customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in die preparation of waste characterization studies or waste stream analyses that may be required by AB 939. ARTICLE 15 MISCELLANEOUS AGREEMENTS 14.1 Entire Agreement This Agreement, including the exhibits, represents the full and entire Agreement between the parties with respect to the matters covered herein. 14.2 Article Headings The article headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 14.3 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 re-codified, unless otherwise specifically provided. This Agreement supersedes the Prior Agreement dated November 27, 2007, and any subsequent amendments. 14.4 Interpretation This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either party,,regardless of the degree to which either party participated in its drafting. Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014) Page 37 14.5 Agreeinent This Agreement may not be modified oI amended in any respect except by a writing signed by the parties. 14.6 Severability If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement drat shall be enforced as if such invalid or unenforceable provision had not been contained herein. 14.7 Exhibits Each of exhibits is attached hereto and incorporated herein and made a part hereof by this reference. IN WITNESS WHEREOF, City and Contractor have executed this Agreement as of the day and year first above written. The City of Atascadero USA Waste of California, Inc. By-- - ------ � - By---- -------- Doug Co Goran City Manager Vice Pre ent Attest. City Clerk Approved as to Fo f City Attorney Atascadero Solid Waste Collection Franchise Agreement(July 15,2014) Page 38 EXHIBIT A Atascadero Waste Alternatives Contract Rates Effective September 1, 2014 RESIDENTIAL RATES - - _ a ose - r n =. Trash Service ,,.Rate 19 Gallon Cart* $ 17.98 30 Gallon Cart* $ 20.58 Includes 90 Gallon Greenwaste Cart and a 90 60 Gallon Cart* $ 36.06 gallon (or 60 gallon) recycling cart 90 Gallon Cart* $ 46.56 ADDITIONAL SERVICES - Eco Bags $ 5.60 Labor per Hour $ 102.46 Residential Go Back $ 5.95 Mattress- Full $ 34.31 Green Waste Exempt $ (2.19) Mattress- King or Queen $ 37.47 Additional Green Waste Cart $ 7.10 Mattress-Twin $ 28.98 Additional Recycling Cart $ 7.10 Pull Out Fee $ 27.55 Lock Bar $ 49.44 Refrigerator or Freezer $ 76.83 Lock Bar, Lock & key $ 59.70 Returned Check Charge $ 16.95 Commercial Go Back $ 10.96 Tire $ 8.62 Appliances $ 39.10 Tire with Rim $ 11.82 Bin Pick up Fee $ 49.83 Unreturned Cart- 32 gallon $ 68.22 Billing Fee $ 8.62 Unreturned Cart- 60 gallon $ 85.24 Container Pick U $ 49.83 Unreturned Cart- 90 gallon $ 102.46 Container Delivery $ 49.83 Walk In Service $ 10.87 Drive in 100' - 200' $ 9.02 Walk In Service Credit $ 10.87 Drive in 200' - 300' $ 17.78 Roll Out Fee $ 26.50 Drive in over 300' $ 26.72 Carry Out $ 26.50 Extra Pick Up $ 5.95 Water Heater $ 39.10 Extra Yard $ 18.00 Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014) Page 39 EXHIBIT A Atascadero Waste Alternatives Contract Rates Effective September 1, 2014 COMMERUAIL COMMINGLE COMMERCIAL TRASH RATES RECYCLE RATES thl ;•5 t.� .. ... ... .........< .... - :::?x..... K:L+:....n.... - - • y: ;✓,v 5. 3+:':r.t',':'�w;.t�L�k'ilt it'," Rate : . Rate .rTrash:Service ::�•-���� r� _, ..� ': ,; Commtn"!e Rec cle;Seiv cep:' ' 1 C 1/week $ 103.95 1 C 1/week No charge 1 CY 2/week $ 193.52 ICY 2/week $ 53.47 1 CY 3/week $ 283.33 1 CY 3/week $ 94.43 1 CY 4/week $ 373.05 1 CY 4/week $ 134.61 1 CY 5/week $ 462.73 1 CY 5/week $ 174.42 1.5CY 1/week $ 103.95 1.5CY 1/week No Charge 1.5CY 2/week $ 193.52 1.5CY 2/week $ 60.40 1.5CY 3/week $ 283.33 1.5CY 3/week $ 106.67 1.5CY 4/week $ 373.05 1.5CY 4/week $ 152.34 1.5CY 5/week $ 462.73 1.5CY 5/week $ 198.90 2CY 1/week $ 118.06 2CY 1/week No charge 2CY 2/week $ 221.97 2CY 2/week $ 66.62 2CY 3/week $ 325.39 2CY 3/week $ 118.87 2CY 4/week $ 429.26 2CY 4/week $ 171.08 2CY 5/week $ 532.95 2CY 5/week $ 223.36 3CY 1/week $ 146.67 3CY 1/week No charge 3CY 2/week $ 276.82 3CY 2/week $ 77.80 3CY 3/week $ 406.90 3CY 3/week $ 143.41 3CY 4/week $ 540.78 3CY 4/week $ 207.69 3CY 5/week $ 672.35 3CY 5/week $ 272.16 3CY 6/week $ 814.03 3CY 6/week $ 336.58 4CY 1/week $ 175.48 4CY 1/week No charge 4CY 2/week $ 336.64 4CY 2/week $ 91.07 4CY 3/week $ 493.50 4CY 3/week $ 168.85 4CY 4/week $ 653.48 4CY 4/week $ 244.43 4CY 5/week $ 811.53 4CY 5/week $ 322.09 4CY 6/week $ 967.73 4CY 6/week $ 401.89 6CY 1/week $ 224.47 6CY 1/week $ 110.20 6CY 2/week $ 429.83 6CY 21week $ 205.89 6CY 3/week $ 583.80 6CY 3/week $ 302.77 6CY 4/week $ 840.27 6CY 4/week $ 399.53 6CY 5/week $ 1,045.61 6CY 5/week $ 496.33 6CY 6/week $ 1,337.74 16CY 6/week $ 593.25 32 gallon $ 27.09 64 gallon $ 39.62 96 gallon $ 44.18 Atascadero Solid Waste Collection Franchise Agreement(July 15, 2014) Page 40 EXHIBIT B Atascadero Waste Alternatives Contract Garbage and Recycling Service in Public Areas Facility Address Service City Hall 6500 Palma Avenue Waste / Recycle Creekside Building 6907 EI Camino Real Waste / Recycle George C. Beatie Skate Park 5493 Traffic Way Waste / Recycle Police Department 5505 El Camino Real Waste / Recycle Fire Station #1 6005 Lewis Avenue Waste / Recycle Fire Station #2 9801 W. Front St. Waste/ Recycle Lake Pavilion 9315 Pismo Avenue Waste/ Recycle Colony Park Maintenance Yard 5599 Traffic Way Waste/ Recycle/ Greenwaste Wastewater Treatment Plant 8005 Garbada Waste/ Recycle/ Greenwaste Atascadero Lake Park 9315 Pismo Avenue Waste/ Recycle/ Greenwaste Charles Paddock Zoo 9305 Pismo Avenue Waste / Recycle Alvord Baseball Field 9305 Pismo Avenue Waste / Recycle Paloma Park 111665 Viejo Camino Waste / Recycle / Greenwaste Colony Park Community Center 15599 Traffic Way Waste / Recycle Atascadero Solid Waste Collection Franchise Agreement (July 15, 2014) Page 41