USA Waste of California, Inc.-1998-09 coCrI ,GTMM r
NUMBER- LLC
AGREEMENT BETWEEN THE CITY OF GRAND TERRACE AND
USA WASTE OF CALIFORNIA, INC. FOR THE PROVISION OF
INTEGRATED WASTE MANAGEMENT SERVICES
This Franchise Agreement ("Franchise Agreement") is entered into this 12-th
day of March, 1998 by and between the CITY OF GRAND TERRACE ("City") and USA
Waste of California, Inc., a Delaware Corporation (Contractor) for Integrated Waste
Management Services.
RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the
California Integrated Waste Management Act of 1989 ("AB 939"), has declared that it is
within the public interest to authorize and require local agencies to make adequate
provisions for solid waste and construction debris handling within their jurisdictions; and
WHEREAS, Pursuant to California Public Resources Code Section 40059 (a)(1),
the City Council of the City of Grand Terrace ("City") has determined that the public
health, safety, and well-being require that an exclusive franchise be awarded to a
qualified enterprise for the collection, transportation, recycling, composting, and
disposal of solid waste from commercial, residential and industrial premises in the City
of Grand Terrace; and
WHEREAS, the City Council of the City of Grand Terrace declares its intention of
maintaining reasonable rates for the collection, transportation, recycling, composting,
and disposal of solid waste and construction debris and for providing temporary bin/roll-
off services to commercial, industrial and residential properties within City Limits;
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
SECTION 1. GRANT OF EXCLUSIVE FRANCHISE.
This Franchise Agreement grants an exclusive franchise as provided herein and
pursuant to Ordinance No. 1_62 , of City of Grand Terrace and California Public
Resources Code Section 40059 (a)(1) to USA Waste of California, Inc. for the
collection, transportation, recycling, composting, and disposal of solid waste, recyclable
solid waste, and construction debris and for providing temporary bin/roll off services for
all commercial and industrial and residential premises within the City of Grand Terrace.
City reserves the right to amend Ordinance No. 162 and the terms of this Agreement in
any manner necessary for the safety or welfare of the public or to protect the public
interests. This Franchise Agreement shall be in force and effect beginning June 1,
1998 within the corporate limits of the City as they now or may hereafter exist, as
shown in Exhibit "A", Franchise Area.
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SECTION 2. DEFINITIONS
Whenever any term used in this Franchise Agreement has been defined by
Ordinance No. 162 , of the City of Grand Terrace or California Public Resources Code,
the definitions in the City Ordinance or Public Resources Code shall apply unless the
term is otherwise defined in this Agreement.
A. AB 939. "AB 939" shall mean the California Integrated Waste Management Act of
1989, as it may be amended from time to time.
B. Bins or Commercial Bins — "Bins" shall mean those containers provided by
Grantee for commercial, industrial and multi-family residential uses. Bins are of two
types: (1) Bins (usually 3 cubic yards in size) which are picked up by refuse trucks
by means of front loading apparatus; and (11) Roll-off Bins (usually 40 cubic yards in
size) which are picked up by trucks using rear loading winches onto rails.
C. Bulky Goods — means large and small household appliances, furniture, carpets,
mattresses, white goods, oversized yard waste such as tree trunks and large
branches if no larger than two feet (2) in diameter and four feet (4) in length and
similar large items discarded from residential service recipients.
D. Commercial Premises — means all premises in the City other than residential
premises. The term "Commercial Premises" includes, but is not limited to, stores;
offices; federal, state, county and local governmental facilities, including, but not
limited to schools, school district offices, special districts and water districts,
restaurants, rooming houses, hotels, motels, manufacturing, processing, or
assembly shops or plants, hospitals, clinics, and convalescent centers and nursing
homes (non-medical waste only) but does not include Single Family premises.
E. Commercial Solid Waste — means all types of solid waste, including Green Waste
and Recyclable Solid Waste, but no hazardous waste or medical waste generated or
accumulated at Commercial premises. "Commercial Solid Wastes" does not
include Resident Solid Waste from Single Family Residences.
F. Comaostables. "Compostables" shall mean chipped or bulk tree brush and/or
grass trimmings, plant and tree clippings, Christmas trees, leaves and other
discarded green waste from parks, yards, gardens, City facilities, residential
curbside collection programs in the City, and any vegetated areas and other
mutually acceptable organic bulking agents generated and collected from within the
geographical boundaries of the City.
G. Curbside. "Curbside" means a location for placement of refuse containers that
provides for convenient and efficient access by collection equipment.
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H. City Limits. "City Limits" means the boundaries of the City together with all
amendments and changes thereto, which boundaries are shown by maps
incorporated herein by reference and which are on file in the office of the City Clerk
of the City Council.
I. Contractor. "Contractor' means USA Waste of California, Inc. a Delaware
Corporation, the entity granted the Franchise pursuant to this Franchise Agreement.
J. Construction and Demolition Waste — means discarded building materials,
recyclable construction and demolition materials, wood, packaging, plaster, rock or
brick, drywall, cement and rubble resulting from construction, remodeling, repair and
demolition operations. "Construction and Demolition Waste" does not include
asbestos-containing materials or asbestos waste.
K. Franchise— means the exclusive right and privilege granted by this Agreement.
L. Franchise Fee — means the fee or assessment imposed by the City on Contractor
because of its status as party to this Agreement and which is intended to offset the
City's expense in administering this franchise and to compensate City for damage to
its streets, sidewalks, curbs and gutters and other infrastructure resulting from
Contractor's exercise of this franchise, the expenses of administering the program
for the Residential Solid Waste stream, reporting requirements under the Act and
other related expenses.
M. Green Waste or Yard Waste — means leaves, grass, clippings, brush an branches
generated from landscapes or gardens at Residential Premises, and incidental
pieces of scrap lumber no longer than twenty-four inches (24"), separated from other
Residential Solid Waste. "Green Waste" includes Holiday Trees but does not
include stumps or branches exceeding four inches (4") in diameter or four feet (4') in
length.
N. Green Waste Containers — means containers provided by Contractor or service
recipients for the temporary accumulation of Green Waste.
O. Hazardous Waste— means any substance, waste or mixture of wastes defined as a
"Hazardous Substance" or "Hazardous Waste" pursuant to the Resource
Conservation and Recovery Act ("RCRA"), the Comprehensive Environmental
Response Compensation and Liability ("CERCL"), 42 U.S.C. §§ 9601 et seq., and all
future amendments to either of them, or as defined by regulations promulgated by
the State of California. Where there is a conflict in the definitions employed by two
or more agencies having jurisdiction over hazardous or solid waste, the term
"Hazardous Waste" shall be construed to have the broader, more encompassing
definition.
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P. Multi-Family Bins -- means intended to be utilized for the temporary accumulation
and collection of Residential Solid Waste for Multi-Family Units.
Q. Multi-Family Premises — means residential units such as apartments,
condominiums and townhouses, other than Single Family dwellings, which utilize
Multi-Family Bins, as defined in this Agreement, and not cans or carts, for the
temporary accumulation and collection of Residential Solid Waste. "Multi-Family
Units" are covered by this Agreement.
R. Rec_y_clable Material —means a commodity which is sold for compensation, or given
away, but which is not discarded into the residential waste stream. A Recyclable
Material, which is discarded into the residential waste stream, loses its character as
a Recyclable Material and becomes Residential Solid Waste subject to this
Agreement.
S. Recyclables "Recyclables" shall mean products or substances, including but not
limited to paper, cardboard, metal, glass, grass clippings, garden waste, vegetable
matter, or other substances capable of being re-processed or reused, which have
passed through their originally intended usage and which have been discarded or
placed for collection by their owner in accordance with the methods prescribed by
this Agreement, whether or not such products have monetary value.
T. Recycled means the act of having processed Recyclable Solid Waste into a form
suitable for reuse and having marketed those processed -materials for a use
consistent with the requirements of AB 939. The act of marketing does not require
that revenue be generated from the processed materials.
U. Recyclables. "Recyclables" shall mean products or substances, including but not
limited to paper, cardboard, metal, glass, grass clippings, garden waste, vegetable
matter, or other substances capable of being re-processed or reused, which have
passed through their originally intended usage and which have been discarded or
placed for collection by their owner in accordance with the methods prescribed by
this Agreement, whether or not such products have monetary value.
V. Residential. Residential includes single family residences, multi-family residences,
including apartments and condominiums, but does not include hotels or motels.
W. Recycling Container means any container for the temporary accumulation and
collection of source-separated Recyclable Solid Wastes delivered by Contractor to
Residential Premises covered by this Agreement. Recycling Containers provided by
Contractor shall be as described in Contractor's Proposal. Contractor shall obtain
ownership of all Recycling Containers, which it delivers to residential service
recipients.
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X. Residential Premises or Single Family Dwelling or Single Family Unit —
generally means a detached building, or each unit of multi-family dwelling, with
kitchen facilities, which utilizes one or more carts or cans, but not a Multi-family Bin,
for the temporary accumulation and collection of Residential Solid Waste.
Y. Residential Solid Waste — means all types of solid waste, including any household
products with the characteristics of Hazardous Waste which may be found to have
been placed in the residential solid waste stream, including Green Waste and
Recyclable Solid Waste placed for collection by service recipients, which originates
from Single Family Units located within the City and which is to be collected
pursuant to this Agreement. "Residential Solid Waste" does not include Commercial
Solid Waste generated or accumulated at hotels, motels, nursing homes or
convalescent centers, barracks, dormitories or other similar places or institutions, or
the waste stream which is collected through the use of Multi-family Bins.
Z. Solid Waste. "Solid Waste" shall mean all waste that is acceptable for disposal in a
Class III Landfill and it shall not include Special Waste as defined herein and/or
waste designated for Class I or Class II Landfills.
AA. Special Wastes. "Special Wastes" shall mean all the items and materials which
are set forth in Exhibit "B", "Special Wastes."
SECTION 3. ACCEPTANCE: WAIVER.
Contractor agrees to be bound by and comply with all the requirements of
Ordinance No. 162 and this Franchise Agreement. Contractor waives
Contractor's right to challenge the terms of this Franchise Agreement and
Ordinance No. 162_ under Federal, State or local law, or administrative
regulation, as such laws and regulations exist as of the date of execution of this
Agreement. Contractor waives any right or claim to serve the City or any part of
the City under any prior grant of franchise, contract, license, or permit issued or
granted by any governmental entity including any right under Section 49520 of
the Public Resources Code.
SECTION 4. FRANCHISE AREA.
The Franchise Area granted by this Franchise Agreement shall be all
commercial, industrial and residential premises located within the corporate
boundaries of the City of Grand Terrace, as they now or may hereafter exist.
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SECTION 5. SERVICES PROVIDED BY CONTRACTOR
A. Single Family Residential
Contractor shall provide services using a completely 100% mechanized residential
container system for refuse, commingled recyclables and green waste. Mechanized
shall mean that Contractor shall provide collector trucks that are capable of picking up
containers, emptying them into collector trucks and then returning them to the curbside.
Parameters of this service shall include:
(1) Weekly Service: Once each week, Contractor shall collect the solid
waste, recyclables and compostables (except bulky items and household
hazardous waste) which have been placed, kept, or accumulated in
containers at single family residences within the Franchise Area and
placed at curbside prior to Contractor's normal weekly collection time. All
solid waste, compostables and recyclables must be placed within
containers at curbside, without obstructions, so as to permit collection.
City agrees to use its best efforts to enforce parking and other ordinances
so as to facilitate this curbside collection system. Contractor may
negotiate special pickup procedures above and beyond the normal
services described above with customers for an additional fee in an
amount provided in the approved rate structure.
(2) Green Waste Collection: Contractor agrees to collection and recycling of
green waste material, to be collected in a separate container. This shall
be done in a process mutually agreeable to both the City and Contractor.
(3) Recycling: Contractor will collect recyclables weekly with an automated
cart system.
B. Multi-Family Residential. Contractor shall provide solid waste, compostables and
recyclables collection services to all multi-family units, excluding those premises
indicated in Exhibit "E" of this Agreement. Parameters of the service shall
include collection and recycling programs as follows:
(1) Multi-Family Weekly Service. Not less than once per week, and
more frequently if required, to handle the waste stream of the
premises where the bins are located. Contractor shall collect the
solid waste (including bulky items which have been placed in a
closed bin), compostables and recyclables (except household
hazardous waste) which have been placed for collection in solid
waste or recycling bins.
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(2) Bulky Item and Household Hazardous Waste Services. In addition to
weekly service, Contractor shall provide bulky item services to multi-
family residences.
C. Commercial and Industrial Weekly Service. Not less often than once per week,
and more frequently if required to handle the waste stream of the premises
where the bins are located, Grantee shall collect the solid waste, compostables,
and recyclables which have been placed for collection in solid waste or recycling
bins.
(1) Construction and Temporary Bin/Roll-off Services. Grantee shall provide
construction and temporary bin/roll-off services using rates reflected in Exhibit
"E and 1=", as those rates may be amended by resolution of the City Council.
C. Additional Services
(1) Community Service Collection. Contractor shall provide roll-off
containers to any non-profit group, e.g. Boy Scouts, Girl's Club,
churches, soccer, little league, etc., free of charge for the express
purpose of the group collecting recyclable materials. Contractor
shall remit all revenues received to the group less the Contractor's
transportation cost.
(2) Community Cleanup Contractor shall perform and operate semi-
annual City cleanup days, free of charge. This program shall not
be required to include commercial solid waste. Contractor shall
provide an adequate number of bins based upon recent
experience. Bin transportation shall be provided free of charge.
The Contractor may schedule the semi-annual City cleanup days
to coincide with the County of San Bernardino's free dump days. if
the County's free dump day program is discontinued, and no other
alternative exists for having landfill tipping fees waived, the
Contractor shall pay all landfill fees for each load hauled during
semi-annual City cleanup days.
In addition to the service requirements of this Section, the
contractor shall provide one annual on-call residential cleanup at
each residence, which shall also be free of charge for all single
family residential units within the City Limits. The contractor shall
collect all bulky waste that has been placed curbside on the regular
scheduled collection day. This service shall be advertised so that
the resident will telephone the Contractor at least 48 hours prior to
the requested pick-up day to arrange for the service.
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(3) Construction and Temporary BinlRoll-off Services. Contractor shall
provide construction and temporary bin/roll-off services using rates
reflected in the approved rate structure, as those rates may be
amended by resolution of the City Council.
(4) Rental Bin Services. Contractor shall provide three cubic yard Bins
for use by households and dwelling units for the purpose of
temporary cleanups. This service shall be provided at an additional
cost to the customer requesting such services. Items deemed not
acceptable for this program include any dead animal, dirt, earth,
Hazardous Waste or Biohazardous Waste. In addition,
construction or industrial waste materials such as plaster, lumber,
brick, tile, or fixtures, resulting from building construction,
alterations, or manufacturing processes shall not be acceptable
under this program. All refuse placed in the containers must fit into
the container, and not exceed the dimensions of the container.
(5) Overflowing Bins. Contractor shall clean out any overflowing bins
or enclosures within twenty-four (24) hours of notification by City.
Contractor shall work with the City Manager or designee in
identifying continual problems in customer bins or enclosures.
(6) Christmas Tree Pickup. Contractor shall pick up, curbside, all
Christmas trees no later than January 7 of each year. The trees
shall be diverted from the landfill, either by deposit at a composting
facility, a tree farm or nursery, or a grinding operation.
(7) Refuse Collection and Recycling Sites. Contractor, at City's sole
option, shall provide refuse collection and recycling to the following
locations within the Franchise Area, at no charge to City or the
entities listed:
City Fire Stations
City Hail, City Public Buildings, Public Works Yard
and City Parks.
(8) Containers for Use of City Public Works Department. Upon request
Contractor agrees to provide 30 cubic yard Containers to the City
for use in public land cleanups and local maintenance at no
additional cost to the City as agreed. These Containers will be
serviced on an as-needed basis, and care will be exercised to
minimize disposal costs and maximize recycling. To that end,
separate container(s) will be dedicated to the collection of green
waste, and every effort will be made to divert this material from
disposal.
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(9) Bulky Item Services. Contractor shall provide temporary bin/roll-off
services to customers for numerous items from annual cleanups,
moving, extensive yard work, minor construction projects, etc.
according to the rate schedule in the approved rate structure as
that rate may be amended by the City Council. Bulky item pickups
shall be charged an additional fee in an amount provided in the
approved rate structure as that fee may be amended by resolution
of the City Council.
(10) Recycling Pro ram. The Contractor shall provide recycling
services in the Franchise Area in accordance with the following
terms:
Recycling Programs, Service Commencement, AB939 Topics,_Facility and
Revenue Considerations (Through both the collection of Recyclable Solid
Waste and the Sale or donation of Recyclable Materials)
1) Contractor warrants and guarantees that the City shall comply with requirements of
AB939 in that it shall cause at least twenty-five percent (25%) at the time specified
by AB939 and subsequently fifty-percent (50%) of the waste stream collected under
this Franchise Agreement to be diverted from ultimate deposit in landfills in
accordance with the regulations implementing the California Integrated Waste
Management Act of 1989 (as amended - also known as A13939). Contractor shall
implement alternatives identified in the City's Source Reduction and Recycling
Element (SRRE) and Household Hazardous Wastes Element (HHWE). Contractor
shall be responsible to implement the public education and awareness portions of
the SRRE and HHWE, at Contractor's expense. Contractor shall provide City with
written reports in a form adequate to meet City's reporting requirement to the
California Integrated Waste Management Board and to the County of San
Bernardino throughout the term of this Franchise wherein its performance under this
program is set forth in detail. In the event that City does not comply with the
requirements of AB939 or its successor legislation, resulting in any fine,
assessment, administrative order or any other cost being assessed against the City,
contractor expresses, agrees to indemnify, hold harmless and defend the City
against any such proposed assessment.
2) Recycling Containers. Contractor shall provide one (1) Recycling Container for
commingled Recyclable Solid Waste for each household having residential Refuse
(can) service in the program. The Recycling Containers shall have a minimum
capacity of 96 gallons. The type, color and design of the Recycling Containers are
subject to City Approval.
3) The Contractor shall distribute the Recycling Containers and shall maintain records
indicating which properties have received Recycling Containers. Contractor shall be
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
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responsible for the replacement of lost or damaged recycling containers at no cost
to the City or to the resident.
4) Contractor shall maintain an adequate stock of Recycling Containers to immediately
replace lost, stolen, or damaged Recycling Containers.
5) Collection Schedule. Collection of Recyclable Material shall be performed on the
same day that regular Refuse is collected. Residential accounts for single family
and multi-family dwellings having residential refuse (can) service shall receive
recyclable material collection not less than weekly.
6) Recyclable Materials to be Collected. The following Recyclable Materials shall be
collected in the residential recycling collection program:
• Newspaper
• HDPEIPETE Colored & Clear Plastic
* Mixed Paper{junk mail/magazines)
• Chipboard, Cardboard and Phone Books
• Rigid Containers, defined as aluminum Cans, HDPE and Pet Plastics,
All Colors of Glass Containers and Bi-Metal Cans.
Recycled items listed may be amended by approval of the City Manager.
7) Revenue from Recycling, Contractor agrees to a division of revenue received from
recycled materials with the City receiving 80% of net revenue per ton and Contractor
receiving 20% of net revenue per ton. Net revenue will be determined by two,
mutually agreed upon local processing fees per ton. Contractor agrees to pay City
not less than $500.00 per month.
SECTION 6.
A. Developments in Methods and Technologies_for Refuse and Recyclable
Materials Collection.
Contractor and the City acknowledge the dynamic nature of science and technology
and therefore agree to cooperate in the best interests of the City in efforts to research
and develop Recycled Solid Waste, Refuse and other pilot programs during the term of
this Agreement. In addition, Contractor shall meet with the City on an annual basis
during the second calendar quarter of each year to discuss scientific, technological and
economic developments and advancements in the field of Refuse and Recyclable
Materials management, and, if any are reasonably available, to suggest changes to the
methods currently utilized by the City or to suggest the implementation of pilot
programs.
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B. Household Hazardous Waste:
(1). Mobile Household Hazardous Waste Collection Program.
At least annually, the Contractor will participate with the County of San
Bernardino in a Mobile Household Hazardous Waste Collection Program
designed to collect not only non-permit required household hazardous wastes,
but also permit required household hazardous wastes, e.g., pesticides,
herbicides, oil base paint, etc. These County and Contractor roundups should
be coordinated in an effort to provide all residential non-permit required and
permit-required roundups annually. if the Household Hazardous Waste Program
is discontinued or modified by San Bernardino County, the Contractor may be
required, at City's request, to operate a similar program under terms and
conditions negotiated with the City, by amendment to the approved rate
structure. if the County landfill tipping fee is modified to eliminate Household
Hazardous Waste services, the City may require the Contractor to pay fees
which may be passed through to the customer.
(2). Motor Oil Program.
The Contractor shall pick up, on a weekly basis, used motor oil from residences
and multi-family units, upon request from the households, in quantities not to
exceed two gallons per household per request. The contractor may refuse to
accept any oil which has not been placed in an appropriate container, as
mutually agreed upon by the City and Contractor. The Contractor agrees to
have any oil collected under this section disposed of/recycled in accordance with
all pertinent federal, state and local laws and regulations.
(3). Special Wastes.
Contractor may, but is not required to, provide such collection, transportation and
disposal services for special wastes. Contractor may provide such services for
special wastes if contracted to do so by customers under separate written
contracts negotiated between Contractor and the customer generating such
special wastes. A schedule of fees for these special waste services shall be
approved by the City Manager.
(4). Household Hazardous Waste Fee.
Contractor shall be responsible for collection and remittance to the City, a .20
cent per residence charge for household hazardous waste services.
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C. COMMUNITY EDUCATION.
Promotional Efforts.
Publicity and promotional efforts are of the utmost importance to achieve
acceptable participation levels for Refuse and Recycling in the City. The
Contractor, working in close contact with the City, shall be responsible for
providing promotional information for the program.
Promotional efforts include media advertising, education, contests and
community involvement programs to encourage participation by individual
volunteers, commercial enterprises and community groups (e.g. parent teacher
associations, schools and civic, youth and sporting organizations). All
promotional material, programs, contests and efforts must be reviewed and
approved by the City prior to public presentation or distribution.
SECTION 7. REIMBURSEMENT OF CITY EXPENSES.
1. The Grantee shall, within thirty (30) days after receipt from the City of a written
itemization, reimburse the City for its reasonable costs of granting this Franchise
Agreement to the extent not recovered by prepaid application fees, in an amount
not to exceed Five Thousand Dollars ($5,000.00).
2. Cash Bond. Contemporaneously with the execution of this Franchise
Agreement, the Contractor shall deposit a cash bond in the sum of one twelfth of
the estimated annual franchise fee, adjusted annually, in an interest bearing
account for the benefit of the City. The cash bond shall be on terms acceptable
to the City Attorney. The cash bond shall serve as partial security for the faithful
performance by Contractor of all provisions and obligations of this Franchise
Agreement.
(1) After thirty (30) days following Contractor's failure to pay the City an
amount owing under this Franchise Agreement, the cash bond may
be assessed by the City upon five (5) days prior written notice to
the Contractor for purposes including, but not limited to:
(a) Failure of Contractor to pay the City sums due under the
terms of the Franchise Agreement.
(b) Reimbursement of costs borne by the City to correct
Franchise Agreement violations not corrected by
Contractor, after due notice.
(c) Monetary remedies or damages assessed against
Contractor due to breach of the Franchise Agreement.
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SECTION 8. FRANCHISE TERM.
The Franchise term expires on June 30, 2008. Twenty-four months prior to this date,
the Contractor may request the City to consider an extension of this initial term.
SECTION 9. FRANCHISE TRANSFERABLE: CITY CONSENT REQUIRED
A. It is the expressed intent of the Parties to this Franchise Agreement that the
rights and privileges granted by this Franchise Agreement shall not be
transferred, sold, hypothecated, leased, assigned, nor shall any of the rights or
privileges herein be hypothecated, leased, assigned, sold or transferred, either in
whole or in part, nor shall title thereto, either legal or equitable, or any right,
interest, or property therein, pass to or vest in any person, except the Contractor,
either by act of the Contractor or by operation of law, nor shall any change in
control occur, without the prior written consent of City, expressed by resolution.
It is further understood and agreed that the City's consent to any of the above
actions or transactions may be withheld for any reason, with or without cause,
and that upon the occurrence of any of the above events, without consent of
City, City shall have the absolute right to terminate the Franchise Agreement
without notice. Any transfer in the franchise will require contractor to pay the City
a transfer fee of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00).
B. In addition to the rights provided City with respect to terminating the Franchise
Agreement, should Contractor take any of the actions provided in Subsection A
herein prior to obtaining written consent of City, all of the profits or twenty-five
percent (25%) of the Gross Operator Receipts, from the date of the unauthorized
action until the date City receives notice of the unauthorized action, whichever is
greater, shall be returned to the City.
C. City Consent, is required for any change in control of Contractor. "Change in
Control" shall mean any sale, transfer, or acquisition of Contractor. Contractor is
a corporation, and any acquisition of more than twenty-five percent (25%) of
Contractor's voting stock by any person, or groups of persons acting in concert,
who already own less than fifty percent (50%) of the voting stock shall be
deemed a change in control. Provided, however, that the transfer of stock of the
Contractor to another refuse company shall not be deemed a change in control.
SECTION 10. FRANCHISE FEE.
1. Beginning June 1, 1998 Contractor shall pay City a Franchise Fee of 15% of
gross revenues for all Commercial and Industrial business. Beginning June 1,
1998 Contractor shall pay a Franchise Fee of 12.5% of gross revenues for
Residential business, minus the Household Hazardous Waste fee. The
Franchise Fee for Residential business shall be 15% of gross revenues
beginning July 1, 1999.
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SECTION 11. FRANCHISE TRANSFER: FEES.
A. Any application for a franchise transfer or change in control, as described in
Section 9, Subsection A, shall be made in the manner prescribed by the City
Manager. The application shall include the payment and reimbursement to City
of up to $10,000 to cover the cost of all direct and indirect administrative
expenses including consultants and attorneys, necessary to adequately analyze
the application and to reimburse City for all direct an indirect expenses. In
addition, the Contractor shall reimburse the City for all costs not covered by the
transfer fee. Bills shall be supported with evidence of the expense or cost
incurred. The applicant shall pay such bills within thirty (30) days of receipt.
B. These franchise transfer fees are over and above any franchise fees specified in
this Franchise Agreement.
SECTION 12. IMPOSITION OF DAMAGES OR TERMINATION.
A. If the City Manager determines that the Contractor's performance pursuant to
this Franchise Agreement has not been in conformity with reasonable industry
standards which are obtained in similar cities in Southern California, the
provisions of this Franchise agreement, the requirements of Ordinance No. 162.
the requirements of the California Integrated Waste Management Board,
including but not limited to, requirements for source reduction and recycling (as
to the waste stream subject to this Franchise Agreement) or any other applicable
Federal, State, or local law or regulation, including but not limited to the laws
governing transfer, storage, or disposal of special wastes, the City Manager may
advise Contractor, in writing of such deficiencies. The Manager may, in such
written instrument, set a reasonable time within which correction of all such
deficiencies is to be made. Unless otherwise specified, a reasonable time for
correction shall be sixty (60) days from the receipt by the Contractor of such
written notice. The City Manager shall review the Contractor's response and
refer the matter to the City Council or decide the matter and notify the Contractor
of that decision, in writing. A decision or order of the City Manager shall be final
and binding on Contractor if the Contractor fails to file a "Notice of Appeal" with
the City Manager within 30 days of receipt of the City Manager's decision.
Within ten working days of receipt of a Notice of Appeal, the City Manager shall
either refer the appeal to the City Council for proceedings in accordance with
Section 12C-D, below, or refer the matter to a hearing officer as provided in
Section 13, below.
B. The City Council, in such case, may set the matter for hearing. The City Council
shall give Contractor, and any other person requesting the same, fourteen (14)
days written notice of the time and place of the hearing. At the hearing, the City
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Council shall consider the report of the City Manager indicating the deficiencies,
and shall give the Contractor, or its representatives and any other interested
person, a reasonable opportunity to be heard.
C. Based on the evidence presented at the public hearing, the Council shall
determine by Resolution whether the Franchise Agreement should be terminated
or liquidated damages imposed. If, based upon the record, the City Council
determines that the performance of Contractor is in breach of any material term
of this Franchise Agreement or impose liquidated damages, as defined below.
The decision of the City Council shall be final and conclusive, subject to referral
of the matter for an administrative hearing pursuant to section 13, below.
Contractor's performance under its franchise is not excused during the period of
time prior to the City Council's final determination as to whether such
performance is deficient.
D. This right of termination or to impose liquidated damages is in addition to any
other rights of City upon failure of Contractor to perform its obligations under this
Franchise Agreement.
E. Termination of Franchise. The City reserves the right to terminate Contractor's
franchise or impose liquidated damages in the event of any of the following:
(1) If the Contractor practices, or attempts to practice any fraud or
deceit upon the City.
(2) if the Contractor becomes insolvent, unable, or unwilling to pay its
debts, or upon listing of an order for relief in favor of contractor in a
bankruptcy proceeding.
(3) If the Contractor fails to perform in full force and effect, the workers
compensation, liability, indemnification coverage, or cash bond as
required by the Franchise Agreement.
(4) If the Contractor violates any orders or violation of any regulatory
body having jurisdiction over the Contractor relative to the
Franchise Agreement, provided that the Contractor may contest
any such orders or rulings by appropriate proceedings conducted in
good faith, in which no breach of the franchise shall be deemed to
have occurred.
(5) If the Contractor ceases to provide collection services as required
under this Franchise Agreement over all or a substantial portion of
its Franchise Area for a period of seven (7) days or more, for any
reason within the control of the Contractor.
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(6) If the Contractor willfully fails to make any payments required under
the Franchise Agreement and/or refuses to provide the City with
required information, reports and/or test results in a timely manner
as provided in the Franchise Agreement.
(7) Any other act or omission by the Contractor which materially
violates the terms, conditions or requirements of the Franchise, City
Ordinance, 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 the Contractor cannot reasonably correct or remedy
such violation within the time set forth in such notice and diligently
effect such correction or remedy thereafter.
F. Liquidated Damages.
(1) The City finds, and the Contractor agrees, that as of the time of the
execution of this Franchise Agreement, it is impractical, if not
impossible to reasonably ascertain the extent of damages which
shall be incurred by the City as a result of a material breach by
Contractor of its obligations under this Franchise Agreement. The
factors relating to the impracticability of ascertaining damages
include, but are not limited to, the fact that: (1) Substantial damage
results to members of the public who are denied services or denied
quality or reliable services; (II) Such breaches cause
inconvenience, anxiety, frustration, and deprivation of the benefits
of the Franchise Agreement to individual members of the general
public for whose benefit this Franchise Agreement exists, in
subjective ways and in varying degrees of intensity which are
incapable of measurement in precise monetary terms; (III) That
services might be available at substantially lower costs than
alternative services, and the monetary loss resulting from denial of
services or denial of quality or reliable services is impossible to
calculate in precise monetary terms; and (IV) The termination of
this Franchise Agreement for such breaches, and other remedies
are, at best, a means of future correction and not remedies are, at
best, a means of future correction and not remedies which make
the public whole for past breaches.
(2) After providing notice and opportunity to cure as set forth in Section
12.A., the City Council may, in its discretion, assess liquidated
damages not to exceed the sum of Seven Hundred Fifty Dollars
($750.00) per day, for each calendar day that service is not
provided by Contractor in accordance with this Franchise
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Agreement. The amount of the liquidated damages shall be
increased by the past year's consumer price index for the San
Bernardino-Riverside area on March 1 and effective July 1 of each
year. In addition, the Council may order the assessment against
the cash bond required by Section 7(2), above, the termination of
the Franchise Agreement, or both.
(3) The City finds, and the Contractor acknowledges and agrees that
the above described liquidated damages provisions represent a
reasonable sum in light of all the circumstances. Said liquidated
damages sums shall be applicable to each business day of delay
during which Contractor has been found by the City Council to be
in material default pursuant to this Section. The Contractor shall
pay any liquidated damages assessed by the City Council within
ten (10) days after they are assessed. If they are not paid with the
ten (10) day period, the City may withdraw them from the cash
bond required by Section 7(1), above, order the termination of the
franchise granted by this Franchise Agreement, or both.
SECTION 13. ADMINISTRATIVE HEARING PROCEDURES.
A. Should Contractor contend that the City is in breach of this Franchise
Agreement, it shall file a written request with the City Manager for an
administrative hearing on the allegation, within fourteen (14) days of the alleged
breach or of Contractor's notice thereof.
B. If either the City Manager or the City Council refers a matter to a hearing officer,
or if the Contractor should allege a breach of the Franchise by the City, City and
Contractor shall mutually agree on a hearing officer. If agreement is not reached
within twenty (20) working days of the filing of the notice of breach, then
Contractor shall select the hearing officer from a list of three potential Dearing
officers who are retired California Superior Court judges or Appellate Court
justices, none of whom are related to parties, prepared by the City Manager and
approved by the City Council.
C. The hearing shall be conducted according to California Code of Civil Procedure
Section 1280, et sea. The exclusive venue shall be in San Bernardino County,
California. A hearing officer to whom a matter is referred shall have the authority
to (1) order the City or Contractor to undertake remedial action to cure the breach
ad to prevent occurrence of similar breaches in the future; (II) Assess damages
and/or levy a penalty upon the City or the Contractor consistent with the terms of
this Franchise Agreement; or (111) Find there has been no breach. If the hearing
officer finds there has been no breach, such a decision precludes the City from
conducting a default hearing. For any occurrence or series of related
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occurrences, the penalty shall be reasonably related to the seriousness of the
breach of the Franchise Agreement, and may be levied in addition to damages.
D. The party losing the hearing shall be liable for the hearing officer's fees.
E. Any failure of the Contractor to comply with the hearing officer's order shall be
deemed a material breach of the Franchise Agreement, and may be grounds for
termination of the Franchise Agreement.
F. The hearing officer shall commence the hearing within thirty (30) days of
selection unless the parties and the hearing officer otherwise agree. Any party
to the hearing may issue a request to compel reasonable document production
from the other party. Disputes concerning the scope of document production
and enforcement of document requests shall be subject to agreement by the
parties, or if agreement is not reached within twenty (20) days of that document
request, then by disposition by order of the hearing officer. Any such document
request shall be subject to the proprietary rights and rights of privilege of the
parties, and the hearing officer shall adopt procedures to protect such rights.
Except as may be otherwise specifically agreed by the parties, no other form of
pretrial discovery shall be available to the parties; provided that if either party
notifies the hearing officer that a material violation of the franchise or rights in
connection therewith is claimed by either party, the provisions of Code of Civil
Procedure Section 1283.05 shall apply.
G. Neither party may communicate separately with the hearing officer after the
hearing officer has been selected. All subsequent communications between a
party and a hearing officer shall be simultaneously delivered to the other party.
This provision shall not apply to communications made to schedule a hearing or
request a continuance.
H. Until final decision is entered from the hearing officer proceeding under the
foregoing provisions and the time for appeal or other post-judgment petition has
expired, the imposition or enforcement of any penalties or sanctions provided in
the Franchise Agreement and related to the subject matter of the hearing shall
be stayed. The hearing officer may modify or cancel any proposed penalties or
sanctions upon finding that the party subject thereto acted with substantial
justification or if the interest of justice so require.
I. Any party to a hearing may petition the Superior Court in San Bernardino
County, California to confirm, correct, or vacate the award on the grounds stated
in the General Arbitration Act. Any proceedings on appeal shall be in
accordance with Code of Civil Procedures 1294 and 1294.2.
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SECTION 14. CITY'S ADDITIONAL REMEDIES.
In addition to the remedies set forth in Section 12 and 13, above, City Shall have the
following rights and remedies:
A. To rent or lease equipment from Contractor at its fair and reasonable
rental value for the purpose of collecting, transporting, recycling,
composting, and disposing of solid waste and construction debris and
providing temporary bin/roll-off services which Contractor is obligated to
collect, transport, recycle, compost, and dispose of solid waste and
construction debris and provide temporary bin/roll-off services pursuant to
this Franchise Agreement, for a period not to exceed six (6) months. In
the case of equipment not owned by Contractor, Contractor shall assign to
City, to the extent Contractor is permitted to do so under the instruments
pursuant to which Contractor possesses such equipment, the right to
possess the equipment. If City exercises its rights under this Section, City
shall pay to Contractor the reasonable rental value of the equipment so
taken for the period of City's possession thereof.
B. The right to license others to perform the services otherwise to be
performed by Contractor hereunder, or to perform such services itself; and
C. The right to obtain damages and/or injunctive relief. Both parties
recognize and agree that in the event of a breach under the terms of this
Franchise Agreement by Contractor, City may suffer irreparable injury and
incalculable damages sufficient to support injunctive relief, to enforce the
provisions of this Franchise Agreement and to enjoin the breach thereof.
SECTION 15. RIGHTS OF CITY TO PERFORM DURING EMERGENCY.
A. Should Contractor, for any reason whatsoever, except the occurrence or
existence of any of the events or conditions set forth in Section 27A "Force
Majeure', below, refuse or be unable to collect, transport, recycle, compost, and
dispose, and provide temporary binlroll-off services any or all of the refuse,
compostables, and recyclables which it is obligated under this Franchise
Agreement for a period of more than seventy-two (72) hours, and if as a result
thereof, debris, refuse, compostables, recyclables and construction debris should
accumulate in City to such an extent, in such a manner, or for such a time that
the City Manager should find that such accumulation endangers or menaces the
public health, safety, or welfare, then in such event City shall have the right,
upon twenty-four (24) hour prior written notice to Contractor, during the period of
such emergency, to temporarily take possession of any or all equipment and
facilities of Contractor previously used in the collection, transportation, recycling,
composting, and disposal of solid waste and construction debris and provide
temporary bin-roll-off services under this Franchise Agreement, and to use such
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equipment and facilities to collect, recycle, compost, and transport any or all
debris, refuse, compostables, recyclables, and construction debris and provide
temporary bin/roll-off services which Contractor would otherwise be obligated to
collect, recycle, compost, transport, and dispose of solid waste and construction
debris and provide temporary bin/roll-off services pursuant to this Franchise
Agreement. Contractor agrees that in such event it shall fully cooperate with City
to effect such a transfer of possession for City's use.
B. Contractor agrees that, in such event, City may take temporary possession of
and use all of said equipment and facilities without paying Contractor any rental
or other charge, provided that City agrees that, in such event, it assumes
complete responsibility for the proper and normal use of such equipment and
facilities. City agrees that it shall immediately relinquish possession of all of the
above mentioned property to Contractor upon receipt of written notice from
Contractor to the effect that it is able to resume its normal responsibilities under
this Franchise Agreement.
SECTION 16. PRIVACY.
A. 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 company, 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
the preparation of waste characterization studies or waste stream analyses
which may be required by A13939.
B. Contractor shall not market or distribute, outside the normal course of its
business, mailing lists with the names and addresses of customers.
C. The rights accorded customers pursuant to this Section shall be in addition to
any other privacy right accorded customers pursuant to Federal or State law.
SECTION 17. REPORTS AND ADVERSE INFORMATION.
A. Monthly Report. Contractor shall submit to City a Monthly Report in a form
acceptable to City on or before the fifteenth (151) day following the end of each
calendar month, which report shall at a minimum include the following
information:
1. Volume of Refuse collected by service type (in tons).
2. Volume of Refuse diverted from landfill disposal as the result of
Contractor's performance of the Recyclable Materials collection
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program, in manner consistent with the reporting requirements
promulgated pursuant to A13939.
3. Indication of recycling program participation. Participation rates
shall be determined form data gathered on a daily basis.
4. A record of Recyclable Materials sold reflecting the quantity or
tonnage sold of each category.
5. Information compiled concerning customer complaints, along with a
brief narrative describing any operational changes made to
respond to complaints received and to prevent their reoccurrence
in the future; and
6. A list of notices issued detailing Recyclable Materials contamination
problems and Contractor's follow-up actions, including copies of
contamination notices and warning letters issued during the month.
B. Annual Reports. The City shall require that within sixty (60) days after the close
of Contractor's fiscal year, the Contractor shall submit a written annual report, in
an audible form approved by the City, including, but not limited to, the following
information:
1. A summary of the previous year's (or, in the case of the initial
report year, the initial years) activities including, but not limited to,
services began or discontinued during the reporting year, and the
number of customers for each class of service;
2. A report, in a form satisfactory to the City, on the City's progress in
meeting, and maintaining its ability to meet its goals, under AB939,
along with any recommended changes.
3. A revenue statement, setting forth quarterly Franchise Fees and
the basis for the calculation thereof, certified by an officer of the
Contractor;
4. A revenue statement setting forth quarterly revenue received from
the sale of recyclables collected pursuant to this Agreement.
5. A list of Contractor's officers and members of its board of directors.
5. A list of stockholders or other equity investors holding five percent
(5%) or more the voting interest in the Contractor and any subsidiaries
unless Contractor is a public corporation whose annual reports are
publicly available.
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C. AB 939 Reporting: Contractor shall be responsible for the preparation of all
reports required under AB 939. This shall include development of all data and
reports required by the Integrated Waste Management Board. Reports will de
prepared and delivered to City in a form acceptable to City. Contractor shall
indemnify City against all requirements and penalties which may be imposed
under the government code as it applies to said reporting.
D. Adverse Information. Contractor shall provide City two copies of all reports, or
other material adversely affecting the Franchise Agreement, submitted by
Contractor to the EPA, the California Integrated Waste Management Board, or
any other Federal or State Agency. Copies shall be submitted to City
simultaneously with Contractor's filing of such matters with said agencies.
Contractor's routine correspondence to said agencies. Contractor's routine
correspondence to said agencies need not be automatically submitted to City ,
but shall be made available to City upon written request, as provided in Section
26, below:
1. The Contractor shall submit to City copies of all pleadings,
applications, notifications, communications, and documents of any
kind, submitted by the Contractor to, as well as copies of all
decisions, correspondence, and actions by, any Federal, State, and
local courts, regulatory agencies, and other government bodies
relating specifically to Contractor's performance of services
pursuant to this Franchise Agreement. Any confidential data
exempt from public disclosure by State or Federal law shall be
retained in confidence by the City and its authorized agents and
City shall make every reasonable effort to ensure that it is not
made available for public inspection, except that City shall not incur
liability for its inadvertent disclosure of such information.
2. Contractor shall submit to the City such other information or reports
in such forms and at such times as the City may reasonably
request or require.
3. All reports and records required under this or any other section
shall be furnished at the sole expense of the Contractor.
4. A copy of each of Contractor's annual and other periodic public
financial reports, or where Contractor is a subsidiary of a public
corporation and other entities, as the City request, shall be
submitted to the City within thirty (30) days after receipt of a
request.
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D. Failure to Report. The refusal, failure or neglect of the Contractor to file any of
the reports required, or the inclusion of any materially false or misleading
statement or representation made knowingly by the Contractor in such report
shall be deemed a material breach of the Franchise Agreement, and shall
subject the Contractor to all remedies, legal or equitable, which are available to
the City under the Franchise Agreement or otherwise.
SECTION 18. ANNUAL REVIEW OF PERFORMANCE, QUALITY OF SERVICE,
AND SYSTEM AND SERVICE REVIEW.
A. At City's sole option, within ninety (90) calendar days of the first anniversary of the
effective date of this Franchise Agreement, and each year thereafter throughout the
term of the Franchise Agreement, City may hold a public hearing at which the
Contractor shall be present and shall participate, to review the Contractor's
performance and quality of service, refuse collection and recycling systems, and
other services. In addition, any customer may submit comments or complaints
during the review meetings, either orally or in writing, and these shall be considered.
B. Within thirty (30) calendar days after the conclusion of the public hearing, City may
issue a report with respect to the adequacy of performance and quality of service. If
any noncompliance with the franchise is found, City may direct Contractor to correct
the inadequacies in accordance with Sections 12 and 13, above.
C. Annually, or at any time after receiving notice from the City, the Contractor shall,
within sixty (60) calendar days, submit a report to City indicating the following:
D. All refuse collection, composting, and recycling services reported in refuse
collection, and recycling industry trade journals that are being commonly provided
on an operational basis, excluding tests and demonstrations, to communities in the
United States with comparable populations, that are not provided to City; and
1. Changes recommended to improve the City's ability to meet the goals of
AB939 and any subsequent legislation.
2. Any specific plans for provision of such new services by the Contractor, or a
justification indicating why Contractor believes that such services are not
feasible for the Franchise Area.
3 A report on the value of recyclables, the revenue obtained through the sale of
recyclables, and the expense of collecting and transporting the recyclables.
4. The City and Contractor hereby acknowledge that the Contractor has based
its residential rates in Exhibit "D" and its expectation of meeting AB939 goals,
upon the full participation of all residents in the refuse services described
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herein. The City and Contractor agree to consider reasonable modifications
to this Agreement in the event less than adequate participation is achieved.
E. Topics for discussion and review at the system and services review hearing shall
include, but shail not be limited to, services provided, feasibility of providing new
services, application of new technologies, customer complaints, rights of privacy,
amendments to the Franchise Agreement, developments in the law, new initiatives
for meeting or exceeding AB939's goals and regulatory constraints.
F. City and Contractor may each select additional topics for discussion at any systems
and services review hearing.
G. Not later than sixty (60) days after the conclusion of each system and service review
hearing, City shall issue a report. The report shall include a listing of any refuse
collection, and considered technically and economically feasible by City. City may
require Contractor to provide such services within a reasonable time, for reasonable
rates and compensation.
SECTION 19. COMPENSATION.
A. Contractor Rates. Contractor shall provide the services described in this
Franchise Agreement in accordance with the rates fixed by City from time to
time, all as described as set forth in the Exhibit's "D, E and F" "Schedule of
Rates", as those rates may be amended by Resolution of City Council.
B. Modification and Adjustment of Rates. Except as provided in Exhibit's "D, E,
and F", the rates set forth in Exhibit's "D, E and F" shall remain in effect until
adjusted by City by Resolution of the City Council.
C. Basis or Adjustment of Rates and Fees. Based on a finding that revenues from
sales of recyclables have been increased or decreased, upon sixty (60) days
notice to Contractor of the proposed change in rates, City Council may adopt a
resolution adjusting rates proportionate to the increased or decreased cost or
sales of recyclables.
D. Notice of Rate Increases. The Contractor shall provide the City and Customers,
written notice of the implementation of changes in any of its rates and charges
which are not subject to regulation by the City. The notice shall include a
statement of the reasons for the rate increase, which shall be approved by the
City before distribution.
E. Escalation of Rates (Commercial): The Contractor agrees that, after the
introduction of the charge for the Franchise Fee, rates for Commercial customers
shall not increase on an annual basis more than the Consumer Price Index as
approved for other rate outlined in Exhibit's "D, E and F."
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F. Resolution of Disputes Regarding Rate Adjustments. Any dispute regarding the
Annual Rate Adjustment and Landfill Tipping Fee adjustment, or the computation
thereof, described in Exhibit's "D, E or F", or any other dispute regarding
Contractor's reimbursement for fees, special services, or extraordinary costs
described in Exhibit's "D, E or F" , shall be decided by the City Manager, or
referred by the Manager to the City Council, or the hearing officer, as
appropriate.
G. Billing and Payment. Contractor shall bill all customers for all services, whether
regular or special. Contractor shall provide itemized bills in a form approved by
City, distinctly showing charges for all classifications of services, including the
charges for late payment. Billings shall be made quarterly in advance, or as
determined appropriate by the Contractor, for commercial and all bin service
customers, and shall be made no less than quarterly, in advance for all
customers.
H. Delinquent Accounts. Notice shall be given to the property owner of record
regarding the account and that any unpaid or delinquent bills may become a lien
against the property.
1. Refunds. Contractor shall refund to each customer, on a pro-rata basis, any
advance service payments made by such customer for service not provided
when service is properly terminated by the customer.
J. Recycling Repycling Rate Ad'ustment. The recycling rate includes the following cost and
revenue factors: Collection, Transportation, Processing, Non-Recyclable
Disposal, Community Education, State, County and City Reporting, and
Recyclable Revenue Credits.
K. Disposal Rate Ad'ustment. The disposal rate includes all costs above and
beyond the operator fee for collection of solid waste including, but not limited to:
Transportation, Landfill Tipping Fees, and Regulatory Fees.
Each individual cost factor shall be presented by the Contractor at the time of rate
adjustment. The Contractor shall provide supporting documentation and calculations to
support the presented cost factors. The City shall retain the right to have a comparative
rate study prepared by the Contractor for a disposal facility or program different than
the one utilized by the Contractor. The purpose of such rate study would be more
beneficial to the City. The City may designate that the Contractor use an alternative
facility or program. In any case, disposal rates shall be adjusted to fully compensate
Contractor for all disposal rate cost factors as pass-through costs.
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SECTION 20. COLLECTION EQUIPMENT.
A. Contractor shall provide an adequate number of vehicles and equipment for the
collection, transportation, recycling, and disposal of solid waste for which it is
responsible under this Franchise Agreement. The equipment of Contractor used
under this Franchise agreement shall be subject to inspection by City on a
semiannual basis but shall not be subject to any permit fees therefor.
1. All vehicles used by Contractor under this Franchise Agreement
shall be registered with the Department of Motor Vehicles of the
State of California, shall be kept clean and in good repair and shall
be uniformly painted. A sufficient supply of parts must be kept on
hand to ensure timely and continuous fulfillment of this Franchise
Agreement.
2. All bins and containers provided shall be kept in a reasonable
condition and appearance.
3. Contractor has agreed to name the specific organization that shall
provide all of the services under this Franchise Agreement, "USA
Waste Services of California, Inc." This name shall be used for all
correspondence, billing statements, directory listings, references,
signs, vehicle identification, etc.
4. Solid waste collection vehicles shall be washed at least once every
seven (7) calendar days.
5. "USA Waste Services", a local or toll free telephone number, and
vehicle number shall be visibly displayed on all vehicles in letters
and figures not less than five inches (5") high.
SECTION 21. PUBLIC ACCESS TO CONTRACTOR.
A. Office Hours. Contractor's office hours shall be, at a minimum, from 8:00 a.m. to
5:00 p.m. daily, on all collection days. A representative of Contractor shall be
available during office hours for communication with the public at Contractor's
principal office. In the event that normal business problems cannot be rectified
over the telephone, a representative of Contractor shall agree to meet with the
public at a location agreeable to Contractor and the public. Normal office hours
telephone numbers shall either be a local or toll free call. Contractor shall also
maintain a local or toll free after hours telephone number for answering service
available at said after-hours telephone number during all hours other than normal
office hours.
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B. Service Complaints.
(1) All Customer complaints shall be directed to Contractor. Contractor
shall record all complaints received by mail, by telephone, or in
person (including date, name, address of complainant, and nature
of complaint). Contractor agrees to use its best efforts to resolve
all complaints by close of business (waste collection) day following
the date on which such complaint is received. Service complaints
may be investigated by the City Manager or the Manager's
designee. Unless a settlement satisfactory to complainant, the
Contractor, and the Manager's designee is reached, the
complainant may refer the matter to the City Manager for review.
(2) Contractor shall maintain records listing the date of consumer
complaints, the customer, describing the nature of the complaint or
request, and when and what action was taken by the Contractor to
resolve the complaint. All such records shall be maintained and
shall be available for inspection by City, as described in Section 26.
Contractor shall prepare monthly summaries of consumer
complaints. The summaries shall be available and delivered
monthly to the City Manager or the City Manager's designated
representative.
C. Government Liaison Person. The Contractor shall designate a "government
liaison person" who shall be responsible for working with the City Manager or the
City Manager's designated representative to resolve customer complaints.
SECTION 22. CUSTOMER SERVICES.
A. Susnension of Service; Customers may suspend service for a period of not less
than one (1) month without penalty. Requests for suspension for periods less
than one (1) month will be subject to a fee of$10.00 per request.
SECTION 23. RESOLUTION OF DISPUTED CUSTOMER COMPLAINTS.
A. The Contractor shall notify customers of this complaint resolution procedure at
the time customers apply for or are provided service.
B. A customer dissatisfied with Contractor's decision regarding a complaint may ask
the City to review the complaint. To obtain this review, the customer must
request City review within 30 days of receipt of Contractor's response to the
Complaint, or within 45 days of submitting the complaint to the Contractor, if the
Contractor has failed to respond to the complaint. The City may extend the time
to request its review for good cause.
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Page 27
C. Before reviewing the complaint, the City Manager shall refer it to the Contractor.
If the Contractor fails to cure the complaint within ten (10) days, the City
Manager shall review the customer's complaint and determine if further action is
warranted. The City Manager may request written statements from the
Contractor and customer, and/or oral presentations.
D. The City Manager shall determine if the customer's complaint is unresolved, and
if so, what remedy, if any, shall be imposed. The remedy under this Section
shall be limited to a rebate of customer charges related to the period of breach.
E. The City Manager may delegate these duties to a designee. The decision of the
City Manager or his designee shall be final on any matter under Five Thousand
Dollars ($5,000.00). In the event of a decision on a matter awarding Five
Thousand Dollars ($5,000.00) or more, Contractor may seek review pursuant
to Section 13, above.
SECTION 24. OWNERSHIP OF SOLID WASTE.
A. Once solid waste, compostables, recyclables, and construction debris are placed
in bins/roll-offs for collection, or containers at curbside, ownership shall transfer
to Contractor, subject to the terms of this Franchise Agreement, by operation of
law. Subject to Contractor's duty to meet the source reduction and recycling
goals which apply to City, Contractor is hereby granted the right to retain,
recycle, compost, dispose of, and otherwise use such refuse, compostables,
recyclables, construction debris, or any part thereof, in any lawful fashion or for
any lawful purpose desired by Contractor. Subject to the provisions of this
Franchise Agreement, Contractor shall have the right to retain any benefit or
profit resulting from its right to retain, recycle, compost, dispose of, or use the
refuse, compostables, recyclables, green waste, and construction debris, or any
part thereof, which is disposed of at a disposal site or sites (whether landfill,
transformation facility, transfer station, or material recovery facility) shall become
the property of the owner or operator of the disposal site or sites once deposited
there by Contractor. At no time does City obtain any right of ownership or
possession of solid waste placed for collection, and nothing in this Franchise
Agreement shall be construed as giving rise to any inference that City has such
rights. Contractor shall conduct an annual rate audit and recommend, if
necessary, a rate adjustment, including a reduction in rates to reflect an increase
in the value of recyclables.
Contractor acknowledges that the City may direct the location for disposal of
solid waste.
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 28
SECTION 25. INDEMNIFICATION AND INSURANCE.
A. Indemnification of City. Contractor agrees that it shall protect, defend with
counsel approved by City, indemnify, and hold harmless City, its officers,
employees, and agents and at no cost to City, from and against any and all
losses, liabilities, fines, penalties, claims, damages, liabilities, including
attorney's fees, arising out of or resulting in any way from Contractor's exercise
of this Franchise, unless such claim is due to the sole negligence or willful acts of
the City, its officers, employees, agencies, or contractors, or from the City's grant
of this Franchise to Contractor. Subject to the scope of this indemnification and
upon demand of the City, made by and through the City Attorney, the Contractor
shall appear in and defend the City and its officers, employees, and agents in
any claims or actions, whether judicial, administrative, or otherwise arising out of
the exercise of the Franchise Agreement. This provision is in addition to all other
provisions of this Agreement and is intended to apply to Contractor's actions
during the term of this Agreement and survive the end of the term of this
Agreement.
B. Indemnification of Contractor. The City shall indemnify, defend and hold the
Contractor, its affiliates and their respective officers, directors, employees, and
shareholders harmless from and against any and all liabilities, losses, damages,
claims, actions, causes of action, judgments, costs, and expenses (including
reasonable attorney's fees) arising from or in any manner related to the sole
negligence or willful acts of the City, its officers, employees, agents, or
contractors. Subject to the scope of this indemnification and upon demand of
the Contractor, made by and through its attorney, the City shall appear in and
defend the Contractor and its officers, employees, and agents in any claims or
actions whether judicial, administrative, or otherwise arising out of the exercise of
the Franchise Agreement.
C. Household Hazardous Substances Indemnification. Except with respect to
disposal facilities selected by the City pursuant to Section 24, Contractor shall
indemnify, defend with counsel approved by City, protect and hold harmless City,
its officers, employees, agents, assignees, and any successor or successors to
City's interest from and against all claims, actual damages (including but not
limited to special and consequential damages), natural resources damage,
punitive damages, injuries, costs, response, re-mediation and removal costs,
losses, demands, debts, liens, liabilities, causes of action, suits, legal or
administrative proceedings, interest, fines, charges, penalties, and expenses
(including but not limited to attorneys' and expert witness fees and costs incurred
in connection with defending against any of the foregoing or in enforcing this
indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted
against, City or its officers, employees, agents, or Contractors arising from or
attributable to any repair, cleanup or detoxification, or preparation and
implementation of any removal, remedial, response, closure or other plan
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 29
(regardless of whether undertaken due to governmental action) concerning any
household hazardous substance or household hazardous wastes at any place
where Contractor stores or disposes of municipal solid waste or construction
debris pursuant to this Franchise Agreement. The foregoing indemnity is
intended to operate as an agreement pursuant to Section 107 (e) of he
Comprehensive Environmental Response, Compensation and Liability Act,
"CERCLA", 42 U.S.C. Section 9607 (e) and California Health and Safety Code
Section 5364, to insure, protect, hold harmless, and indemnify City from liability.
This provision is in addition to all other provisions of this Agreement and is
intended to apply to Contractor's actions during the term of this Agreement and
survive the end of the term of this Agreement.
D. AB939 Indemnification. Contractor agrees to protect, defend, with counsel
approved by the City, and indemnify City against all fines or penalties imposed
by the California Integrated Waste Management Board in the event the source
reduction and recycling goals or any other requirement of AB939 are not met by
City with respect to the waste stream covered by this Franchise Agreement, or
Contractor's delays in providing information prevent City from submitting reports
required by AB939 in a timely manner. Contractor further agrees to appear and
represent the City in any appeals proceedings and/or litigation brought against
City for alleged failure to comply with AB939. One year prior to each compliance
reporting date pursuant to AB939, or at any time prior to the reporting date within
that one year period, if in the opinion of the City, based upon information
provided by the Contractor and the State of California, the City is not reasonably
convinced that the Contractor will be in non-compliance, the City may require
Contractor to provide a performance bond in the amount of FIVE HUNDRED
THOUSAND DOLLARS ($500,000.00) until such time as compliance is attained.
E. Worker's Compensation Insurance. Contractor shall obtain and maintain in full
force and effect throughout the entire term of this Franchise Agreement full
Worker's Compensation Insurance in accord with the provisions and
requirements of the Labor Code of the State of California. Endorsements that
implement the required coverage shall be filed and maintained with the City
Clerk throughout the term of this Franchise Agreement. The policy providing
coverage shall be amended to provide that the insurance shall not be
suspended, voided, canceled, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has
been given to City. The policy shall also be amended to waive all rights of
subrogation against the City, its elected or appointed officials, employees,
agents, or Contractors for losses which arise from work performed by the
persons insured for the City.
F. Public Liability Insurance. The limits of such insurance coverage, and
companies, if any, shall be subject to review. Contractor shall obtain and
maintain in full force and effect throughout the entire term of this Franchise
City of Grand Ten-ace-Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
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Agreement a Broad Form Comprehensive General Liability (occurrence) policy
with a minimum limit of FOUR MILLION DOLLARS ($4,000,000.00) aggregate
and ONE MILLION DOLLARS ($1,000,000.00) per occurrence for bodily injury
and property damage, with any self-insured retention not exceeding TWO
HUNDRED THOUSAND DOLLARS ($200,000.00) per occurrence. Said
insurance shall protect Contractor and City from any claim for damages for bodily
injury, including accidental death, as well as from any claim for property damage
which may arise from operations performed pursuant to this Franchise
Agreement, whether such operations be by Contractor itself, or by its agents,
employees, and/or sub-contractors. Copies of the endorsements evidencing the
above required insurance coverage shall be filed with the City Clerk. All of the
following endorsements are required to be made a part of the insurance policies
required by this Section:
(1) "The City, its employees, agents, Contractors, and officers, are
hereby added as insureds as respects liability arising out of
activities performed by or on behalf of Contractor."
(2) "This policy shall be considered primary insurance as respects any
other valid and collectible insurance the City may possess including
any self-insured retention the City may have, and any other
insurance the City does possess shall be considered excess
insurance and shall not contribute with it."
(3) "This insurance shall act for each insured, as though a separate
policy had been written for each. This, however, shall not act to
increase the limit of liability of the insuring company."
(4) "Thirty (30) days prior written notice by certified mail, return receipt
requested, shall be given to the City in the event of suspension,
cancellation, reduction in coverage or in limits, or non-renewal of
this policy for whatever reason. Such notice shall be sent to the
City Clerk.
The limits of such insurance coverage, and companies, shall be subject to review
and approval by the City Manager every year and may be increased at that time
and match the coverage provided by the City's own liability insurance policy.
The City shall be included as an additional insured on all policies and
endorsements. The requirements of this section may be satisfied in whole or in
part by Contractor's self-insurance program.
G. Modification. The insurance requirements provided herein may be modified or
waived in writings by the City Council upon the request of Contractor, or in the
sole discretion of the City provided the City Council determines such modification
or waiver is in the best interests of City considering all relevant factors, including
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 31
the fact that the parent of Contractor may be self-insured up to a certain
acceptable amount.
SECTION 26. CONTRACTOR'S BOOKS AND RECORDS: AUDITS.
A. Contractor shall maintain in auditable form all records relating to the services
provided hereunder, including, but not limited to, customer lists, billing records,
accounts receivable records, maps, AB939 compliance records, and customer
complaints, for the full term of this Franchise Agreement, and an additional
period of not less than three (3) years, or any longer period required by law or by
the City. The City shall have the right, upon five (5) business days advance
notice, to inspect all maps, AB939 compliance records, customer complaints,
and other like materials of the Contractor which reasonably relate to Contractor's
compliance with the provisions of the Franchise Agreement. Such records shall
be made available to City at Contractor's regular place of business, but in no
event outside the County of San Bernardino.
B. Should any examination or audit of Contractor's records reveal an underpayment
of any fee required under this Franchise Agreement, the amount of such
underpayment of any fee required under this Franchise Agreement, the amount
of such underpayment shall become due and payable to City with interest at the
legal rate of seven percent (7%) not later than fifteen (15) days after written
notice of such underpayment is sent to Contractor by City. Should any
underpayment of more than three percent (3%) be discovered, Contractor shall
bear the entire cost of the audit.
SECTION 27. GENERAL PROVISIONS.
A. Force Maieure. Contractor shall not be in default under this Franchise
Agreement in the event that the temporary bin/roll-off services and the collection,
transportation, recycling, composting, and disposal of solid waste and
construction debris provided by the Contractor are temporarily interrupted or
discontinued for nay of the following reasons: riots, wars, sabotage, civil
disturbances, insurrections, explosion, natural disasters such as floods,
earthquakes, landslides, and fires, strikes, lockouts, and other labor disturbances
or other catastrophic events which are beyond the reasonable control of
Contractor. Other catastrophic events do not include the financial inability of the
Contractor to perform or failure of the Contractor to obtain any necessary permits
or licenses from other governmental agencies or the right to use the facilities of
any public utility where such failure is due solely to the acts or omissions of the
Contractor. In the event a labor disturbance interrupts temporary bin/roll-off
services and the collection, transportation, recycling, composting, and disposal of
solid waste and construction debris by Contractor as required under this
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 32
Franchise Agreement, City may elect to exercise its rights under Section 15 of
this Agreement.
B. Independent Contractor. Contractor is an independent contractor and not an
officer, agent, servant, or employee of City. Contractor is solely responsible for
the acts and omissions of its officers, agents, employees, Contractors, and
subContractors, if any. Nothing in this Franchise Agreement shall be construed
as creating a partnership or joint venture between City and Contractor. Neither
Contractor nor its officers, employees, agents, or subContractors shall obtain any
rights to retirement or other benefits which accrue to City employees.
C. Pavement Damage. Contractor shall be responsible for any damage, due to
Contractor's negligence, to City's driving surfaces or other City property, whether
or not paved, resulting from overweight vehicles providing refuse collection and
temporary bin/roll-off services directly attributable and at the location of bins, roll-
offs, and containers on public or private property.
D. Property Damage. Any physical damage to public or private property, or other
City property caused by the negligent or willful acts or omissions of Contractor,
its employees, agents, or sub-contractors shall be repaired or replaced by
Contractor.
E. Right of Entry. Contractor shall have the right, until receipt of written notice
revoking permission to pass is delivered to Contractor, to enter or drive on any
public or private street, court, place, easement, or other private property
necessary for the purpose of providing temporary bin/roll-off services and the
collection, transportation, recycling, composting, and disposal of solid waste and
construction debris pursuant to this Franchise Agreement.
F. Law to Govern: Venue. The law of the State of California shall govern this
Franchise Agreement. In the event of litigation between the parties, venue in
state trial courts shall lie exclusively in the County of San Bernardino. In the
event of litigation in U.S. District Court, exclusive venue shall lie in the Central
District of California.
G. Fees and Gratuities. Contractor shall not, nor may it permit any agent,
employee, or sub-contractor to request, solicit, or demand either directly or
indirectly, any compensation or gratuity for temporary bin/roll-off services and the
collection, transportation, recycling, composting, and disposal of solid waste and
construction debris except as otherwise required under this Franchise
Agreement.
H. Prior Agreement and Amendment. This Franchise Agreement is intended to
carry out City's obligations to comply with the provisions of the California
Integrated Waste Management Act of 1989, (AB939) as it from time to time may
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 33
be amended, and as implemented by regulations of the California Integrated
Waste Management Board (Regulations), as they from time to time may be
amended. In the event that AB939 or other State or Federal laws or regulations
enacted after this Franchise has been enacted, prevent or preclude compliance
with one or more provisions of this Franchise Agreement, such provisions of the
Franchise shall be modified or suspended as may be necessary to comply with
such State or Federal laws or regulations. Except as otherwise provided herein,
no other amendment of this Franchise Agreement shall be valid unless in writing
duly executed by the parties. Any modifications as provided by Section 19.
I. Compliance with Franchise Agreement. Contractor shall comply with those
provisions of the San Bernardino County Code as adopted by the City of Grand
Terrace, as well as any ordinances, resolutions or regulations enacted by the
City of Grand Terrace which are applicable and with any and all amendments to
such applicable provisions during the term of this Franchise Agreement.
J. Notices. All notices required or permitted to be given under this Franchise shall
be in writing and shall be personally delivered or sent by telecopier (fax), or
United States Certified Mail, postage prepaid, return receipt requested, and
addressed as follows:
To City: City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
Attn: City Manager
Fax: (909) 783-7629
To Contractor: USA Waste of California, Inc.
800 S. Temescal St.
Corona, CA 91719
Attn: District Manager
Fax: (909) 272-0438
or to such other addresses as either party may from time to time designate by
notice to the other given in accordance with this Section. Notice shall be
deemed effective on the date personally served or, if mailed, three (3) business
days from the date such notice is deposited in the United States Mail.
K. Savings Clause and Entirety. If any non-material provision of this Franchise
Agreement shall for any reason be held to be invalid or unenforceable, the
invalidity or un-enforceability of such provision shall not affect the validity and
enforceability of any of the remaining provision of the Franchise Agreement. If
any material provision of this Franchise Agreement shall be held to be invalid or
unenforceable, the entire Franchise Agreement may be declared by either party
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 34
to be terminated and void subject to those rights which may have existed prior to
the date of this Agreement.
L. Exhibits Incorporated. Exhibits "A" through "F" are attached to and incorporated
into this Franchise Agreement by reference.
M. Identification Required.
(1) Contractor shall provide its employees, and sub-contractors with
identification for all individuals who may make personal contact with
residents of the City.
(2) The Contractor shall provide a list of current employees,
Contractors and sub-contractors, to the City upon request. The
City may require the Contractor to notify customers yearly of the
form of said identification.
PASSED, APPROVED, AND ADOPTED this 12th day of March ,
1998.
Mayor o the City of dran3 Terrace and to
the City Council thereof.
ATTEST:
1TY CLERK
APPROVED AS TO FORM:
CITY ATTORNE
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO)ss.
CITY OF GRAND TERRACE )
City of Grand Terrace-AdoptedExclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 35
I, BRENDA STANFILL, CITY CLERK of the CITY OF GRAND TERRACE,
CALIFORNIA, DO HEREBY CERTIFY that the foregoing Franchise Agreement was
duly passed, approved and adopted by the City Council, approved and signed by the
Mayor, and attested by the City Clerk, all at the meeting of said City Council held on the
12th day of march 1998, and that the same was passed and adopted by the
allowing vote:
AYES: Councilmembers Hilkey, Singley, and Garcia; Mayor Pro Tem Buchanan;
Mayor Matteson
NOES: None
ABSENT; None
ABSTAIN: None
CITY CLERK
CITY OF GRAND TERRACE
IN WITNESS WHEREOF: The parties hereto, on the day and year first written above,
have executed this Agreement.
USA Waste of California. Inc
V' e-President
BY: BY: &Z.:e,-I
City Manager, City of Grand terrace Mayor ity of Grand Terrace, California
ATTEST:
BY: (6u"q
City Clerk, City of Gr nd Terrace
APPROVED AS TO FORM:
BY:
�' )4 4za-"'
City Attorney
City of Grand Terrace AdoptedErclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 36
EXHIBIT A
FRANCHISE AREA
All portions of the City shown on the existing Official Map of the City of Grand Terrace
Corporate Limits on file at the City of Grand Terrace or as subsequently modified by
future annexations.
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EXHIBIT B
SPECIAL WASTES
Flammable waste.
Containerized waste (e.g. drum, barrel, portable tank, box, pail, etc.).
Waste Transported in a bulk tanker.
Liquid Waste.
Sewage sludge.
Waste from a pollution control process and/or industrial process.
Residue and debris from the cleanup of a spill or release of chemical substances,
commercial products or any other special wastes.
Contaminated soil, waste, residue, debris, and articles from the cleanup of a site or
facility formerly used for the generation, storage, treatment, recycling, reclamation, or
disposal of any other special wastes.
Dead animals and/or slaughterhouse waste.
Manure.
Waste water.
Explosive substances.
Radioactive Materials.
Hazardous Materials as defined by state and federal law.
Friable and/or nonfriable asbestos waste.
Empty containers which have been used for pesticides, herbicides, fungicides, or
rodenticides.
Waste which is prohibited from disposal at a Class III Landfill.
Waste which has been rejected from disposal at a landfill.
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EXHIBIT uC"
RECYCLING PROGRAMS, SERVICE COMMENCEMENT
AB939 TOPICS, AND FACILITY CONSIDERATIONS
A. Contractor guarantees to City that it shall cause at least twenty-five percent
(25%) at the time specified by AB939 and subsequently fifty percent (50%) of he
waste stream collected under this Franchise Agreement to be diverted from
ultimate deposit in landfills in accordance with the regulations implementing the
California Integrated Waste Management Act of 1989 (as amended) (also known
as AB939). Contractor shall implement alternatives identified in the City's
Source Reduction and Recycling Element (SRRE) and Household Hazardous
Wastes Element (HHWE). Contractor shall be responsible to implement the
public education and awareness portions of the SRRE and HHWE, at
Contractor's expense. Contractor shall provide City with written reports in a form
adequate to meet City's reporting requirements to the California Integrated
Waste Management Board and to the County of San Bernardino throughout the
term of this Franchise wherein its performance under this program is set forth in
detail.
B. Upon commencement of the Franchise Agreement, Contractor shall commence
regular refuse service to all residential dwelling units and commercial
establishments within the City as set forth in Section 5. The residential refuse
service shall include the pick up of recyclable materials and green waste. The
operator shall furnish one container for recyclables of 96 gallon size to each
residential customer who desires to participate in the curbside recycling program.
Contractor shall replace and repair container as may be necessary as a result of
normal wear and tear. The Contractor shall be permitted to bill all customers
according to the rates set forth in Schedule "D": at the beginning of said month.
In the event a residential customer has not then received a recycling container,
the recycling charge included in the rate shall be postponed until the first month
after delivery of the container.
D. The franchise fee as defined in Section 10 shall apply to all residential operator
pickup fees shall be included for franchise fee computation purposes.
E. Contractor shall implement a mechanized residential container system.
Mechanized shall mean that Contractor shall provide collector trucks that are
capable of picking up containers, emptying them into the collector truck, and
then returning them to the curbside without any human handling of the container.
F. The failure of Contractor to achieve any of the above shall be deemed a material
breach of this Franchise Agreement.
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Page 39
EXHIBIT "D"
SCHEDULE OF RATES
1. SINGLE FAMILY RESIDENTIAL SERVICE RATE
Single family service rates shall be based on the following formula.
FORMULA: Contractor's pick-up fee + Landfill Fee (Based upon average tons per
home) + Green Waste Charge + Recycling Charge + Household
Hazardous Waste Fee + Franchise Fee
The Franchise Fee Calculation will be 12.5% of the Contractors pick-up Charge +
Landfill Fee + Green Waste Charge + Recycling Charge
Beginning June 1, 1998 the Single Family Residential Rates will be as follows:
64 Gallon Container: $17.10 based on the following:
1
Contractors Pick-up Fee $10.64
Landfill Charge $1.86
(Based upon .78 tons per home per year at $28.50 per ton)
Green Waste Charge $.65
(Based upon 30% or .48 tons per year diversion at $16.25 per ton)
Recycling Charge $1.87
Franchise Fee $1.88 (12.5% of Gross)
Household Hazardous Waste Fee $.20
96 Gallon Container: $18.00 per month based on the following:
Contractors Pick-up Fee $10.64
Landfill Charge $2.66
(Based upon 1.12 tons per home per year at $28.50 per ton)
Green Waste Charge $.65
Recycling Charge $1.87
Franchise Fee $1.98 (12.5% of Gross)
City of Grand Terace-Adopled Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 40
Household Hazardous Waste Fee $.20
2. MULTI-FAMILY SERVICE RATE:
Bin service rates for multi-family units shall be the same as adopted for
commercial bin service.
3. ADDITIONAL SPECIAL SERVICE RATES.
A. "On Demand" appliance and bulky item pickup at ground level - first item $25.00
and $15.00 for each additional item.
B. All persons qualifying as handicapped by the City shall be entitled to free
carryout service to the collection vehicle. The operator may charge for such
carryout service for any other customer who requests it at the rate of $12.00 per
month.
C. Special enclosure cleanup service as described above, shall be charged at the
rate of $45.00 per hour, portal to portal. Special cleanup service by pickup truck
requested by any customer shall be charged at $45.00 per hour plus any
applicable landfill fees. If a compactor refuse truck is necessary, the charge
shall be $45.00 per hour plus any applicable landfill fees.
D. Individuals shall be entitled to a reasonable discount of the operators service
pickup fee in accordance with the Ordinance. Contractor may, at its discretion,
offer low income customers the same discount offered by Southern California
Edison.
E. Exemption from mandatory service shall be in accordance with the Ordinance.
Contractor may, at its discretion, credit the landfill component of the monthly bill
for customers who are on vacation for at least 30 consecutive days. Contractor
may, at its discretion, charge no monthly rate for a home that is uninhabited and
receives no service. Contractor may require property owners to sign a "Vacancy
Certificate" at least every six months. If Contractor's field audit discovers that a
house certified to be vacant, is inhabited, Contractor may retroactively charge
the property owner to the date of the Vacancy Certificate.
F. A "Service Change" fee in the amount of $20.00 may be charged each time a
customer changes to a different service level. The operator will select one
calendar month per year, during which month, "Service Change" fees will be
waived for any customer requesting a change in their service level. Customers
will be notified by operator regarding the availability of this change option.
4. ANNUAL ADJUSTMENT OF RATES.
As of July 1" of each year, the above refuse rates shall be adjusted as follows:
City of Grand Terrace Adopted Exclusive Solid Waste Franchise Agreement- USA Waste of California, Inc.
Page 41
A. The landfill fee portion of each rate designated above shall be adjusted in
accordance with an increase or decrease percentage to correspond with any
increase or decrease percentage in the landfill fee charged by the County of
San Bernardino.
B. The contractor's pickup fee designated above shall be adjusted in accordance
with the San Bernardino County refuse rate adjustment policy. Any adjustment
in excess of 5% shall be subject to approval by the City Council before
implementation by the operator. If the San Bernardino County refuse rate
adjustment policy is hereafter discontinued or significantly amended, the
operator's pickup fees shall be adjusted by 90% of the annual change in
successive indexes as of the month of March, per the "Consumer Price Index,
Los Angeles-Anaheim (unadjusted), All Urban Consumers, All Items" as
published by the Bureau of Labor Statistics.
5. EXTRAORDINARY ADJUSTMENT OF RATES.
Subject to the approval of City Council, the operator may request special rate
adjustments in the event its operating conditions significantly change, i.e., the
County of San Bernardino or the City directs the operator to a different landfill,
there is a change in State or Federal laws applicable to the operators refuse
business, or there is a significant change in the County's collection of tipping
fees and fees to operate the Household Hazardous Waste program.
6. SCHEDULE OF FRANCHISE FEES.
A. Beginning June 1, 1998 Contractor shall pay a Franchise Fee of 12.5% of gross
revenues for Residential business, minus the Household Hazardous Waste fee.
The Franchise Fee for Residential business shall be 15% of gross revenues
beginning July 1, 1999. This adjustment will result in a corresponding rate
adjustment.
7. NON-PAYMENT.
Contractor reserves the right to stop service after the customer is 60 days late or
longer. Contractor will then have the option to confiscate the container.
Reinstatement of the account along with delivery of the container will be $20.00.
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EXHIBIT "E"
SPECIAL SERVICES AND RATES
CITY OF GRAND TERRACE
1. SINGLE FAMILY RESIDENTIAL SERVICE:
Single family residential rates shall be as approved and modified by the City Council and
outlined in Exhibit "D" of the "Agreement Between the City of Grand Terrace and USA
Waste of California, Inc. for the Provision of Integrated Waste Management Services".
The Base Service Level for single family residential households shall be a separate container
(cart) for each of the following services: Refuse
Recycling
Green Waste
Additional carts are available for the following rates:
(to a maximum of three (3) additional carts per service)
Refuse: $7.00 per month per cart.
Recycling: $1.95 per month per cart.
Green Waste: $1.95 per month per cart.
Exchanges, in excess of one time per year: $15.00 per container
Back yard 1 Side Yard collection: $ 12.001 month
No charge for elderly or disabled
On-call Curbside Bulky Item Pick-Un: $25.00 per item, $15.00 each additional
(This is separate from the one free annual residential clean-up at the curbside)
Temporary Bin Service: (up to 5 days) $50.00
(includes one dump upon removal of the bin)
Scout Collection: 1.5 times the regular residential rate
(this service would be needed for residential properties when
a regular collection vehicle could not collect at the curbside
and a special small vehicle would be needed due to accessibility
of collection)
2. COMMERCIAL BIN SERVICE
All commercial bin customers shall be charged monthly rates as outlined in Exhibit "F",
attached. Collection service shall be at a minimum of one time per week and more often to
satisfy the demand of waste generated on the site.
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Rates for commercial service have two components: Service and Disposal
The Service component includes the container on-site and the actual labor to collect and haul
refuse to the landfill.
The Disposal component is the actual pass-through cost of disposing refuse at the landfill.
This component shall initially be based upon 110 pounds per cubic yard and shall be subject to
annual review when compared to the actual collection data.
Both of these components shall include the appropriate franchise fee for the City of Grand
Terrace.
Unscheduled Extra bin dumps:
while on-site $35.00 each
separate trip $50.00 each
3 cubic yard Temporary Bin (up to 5 days) $50.00 each
(one dump at collection)
Commercial Can Service: Optional service only and subject to contractor approval.
Basic service for commercial and industrial properties shall be Bin Service as outlined in the
attached Exhibit " F".
In special cases where there is either not appropriate space on site or with neighboring
businesses for the placement of commercial bins, the Contractor may allow Commercial Can
Service to satisfy the requirement of refuse removal service. This may also be allowed if is
demonstrated that the commercial business produces a very small amount of refuse and that the
smallest commercial bin would be inappropriate.
Said Commercial Can Service shall be collected via a typical 96-gallon residential type
container (one for refuse and one for recycling) and shall be placed at the curbside by the
commercial business on collection day. Extra containers shall be available at the established
residential rate, up to a maximum of three (3) refuse and three recycling containers.
Commercial Can Monthly Rate $29.95 / month
Bin Exchange in Excess of one time per year: $59.00
Lost or Stolen Bin: $500.00
Burned Bin: $280.00
Bin Revair(other than normal wear and tear) Actual cost of repair
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Locking Lids: $12.00 per month, multiplied by the
number of collections/week
Replacement Lock: $25.00
Replacement Key: $5.00
Commercial Bin Push Charges: (monthly per container)
Dismount 1/week 2/week 3/week
Distance
0-25' 0 0 0
26'-50' 7.00 14.00 21.00
51'-75' 9.00 18.00 27.00
76'-100' 10.00 20.00 30.00
101'-125' 11.-- 22.00 33.00
126'-150' 12.00 24.00 36.00
151;-175' 13.00 26.00 39.00
176'-200; 14.00 28.00 42.00
Over 200' 15.00 30.00 45.00
Commercial Bin Recycling Rates: The same as the established bin rates as outlined in
Exhibit "F", less the landfill disposal component of the rate.
Commercial and Industrial Bulky Item Service:
1 to 3 items $25.00 for the first item and $15.00 for each
additional item.
over 3 items Quoted and contracted by USA Waste
Services
Commercial Bin Compaction Char es: The monthly rate for compacted refuse shall be the
landfill component of the adopted standard bin rate (Exhibit "F") times 3. Ancillary bin
services shall also be multiplied by 3 for compacted bin service.
3. ROLL-OFF BIN SERVICE
The contractor shall charge a service rate (haul charge) and a landfill rate (tipping fee) based
upon the following:
Service Rate for 10-40 cubic yard containers: $170.00
Service Rate for Compactor - Type containers: $190.00
Landfill Rate: $ 38.82 / ton
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(includes $28.50 per ton tipping fee and 15% City Franchise Fees)
Additional Roll-off Charges:
Delivery: $ 59.00
Extra Trip $ 59.00
Relocation $ 59.00
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EXHIBIT "F"
CITY OF
GRAND TERRACE
MONTHLY COMMERCIAL BIN COLLECTION RATES
BIN SIZE- 2 CUBIC YARD 3 CUBIC YARD 4 CUBIC YARD 6 CUBIC YARDS 3 CUBIC YARD
RATE BAND RATE BAND RATE BAND RATE BAND TEMPORARY
CONSTRUCTION
NUMBER OF
COLLECTIONS
PER WEEK
1 $40.25 - $70.50 $65.90- $93.70 $119.65 - $123.90 $145.00- $179.00 $50
2 67.75 - 128.00 119.25 - 174.75 226.50- 235.00 275.00- 345.00 100
3 108.00- 198.50 185.00- 268.50 346.25 - 359.00 422.50- 524.50 150
4 148.25 - 269.00 251.00- 362.00 466.00- 483.00 567.50- 703.00 200
5 188.50- 339.00 217.00-456.00 585.50- 607.00 712.50- 882.00 250
6 228.75 - 409.75 382.75 - 549.50 705.00- 730.00 858.00- 1,061.00
Note: Bin rental charge is eliminated on multiple collections per week.
Includes 15% City Franchise Fee.
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