HomeMy WebLinkAboutResolution 2006-018 N.C.S. 01/23/2006 Resolution No. 2006-018 N.C.S.
of the City of Petaluma, California
RESOLUTION APPROVING NON-EXCLUSIVE FRANCHISE
AGREEMENT REQUIRED FOR DROP BOX COLLECTION AND
DISPOSAL OF CONSTRUCTION DEBRIS AND COMMERCIAL
RECYCLABLE MATERIALS
WHEREAS, the City Council determined that the drop box collection and
disposal of construction debris and commercial recyclable materials were to be
allowed on anon-exclusive basis; and,
WHEREAS, the City has awarded an exclusive franchise agreement to
GreenWaste Recovery for the collection and disposal of all other solid waste,
recyclable materials and organic waste, along with street sweeping services; and,
WHEREAS, the City desires to allow for the non-exclusive collection and
disposal of drop box containers for construction debris and commercial recyclable
materials under strict collection, diversion, reporting and disposal requirements.
NOW, THEREFORE, BE IT RESOLVED that the City Council
approves the requirements contained in the non-exclusive Franchise Agreement
for drop box collection and disposal of construction debris and commercial.
recyclable materials.
BE IT FURTHER RESOLVED that the City Council authorizes the City
Manager to enter into agreements with any party who meets, agrees to, and
maintains the requirements of the approved non-exclusive agreements herein
attached.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the pproved as ~
Council of the City of Petahuna at a Regular meeting on the 23`~ day of January, ~ ~
2006, by the following vote:
City Attoniey
AYES: Mayor Glass, Harris, Healy,. Nau, O'Brien, Torliatt
NOES: None
ABSENT: Vice Mayor Canevaro
ABSTAIN: None
ATTEST:
City Clerk Mayor
Resolution No. 2006-018 N.C.S. Page 1
City ®f Petaluma
Application Instructions for a
Non-Exclusive Franchise Agreement
for Drop Box Collection
of Construction and Demolition Debris
and/or Commercial Recyclable Materials
BACKGROUND
The City of Petaluma (City), ih accordance with the California Integrated Waste Management
Act (Act) of 1989, is required to divert 50% of discarded materials from landfills. The City finds
that reusing and recycling construction and demolition debris (C&D) and recyclable materials
generated by commercial premises is essential to further the City's efforts to reduce waste and
comply with the Act, and that regulating and monitoring the activities of the drop box collection
companies that handle C&D and commercial recyclable materials will assist the City in
accomplishing its diversion goals.
This City is exercising its right under Chapter 8.1.6.1 15 of the City's Municipal Code to provide for
the collection, transportation, processing, recycling and disposal of C8~D and commercial
recyclable materials placed in drop boxes through non-exclusive agreements granted to one or
more collection providers. The City requires all companies providing drop box collection
services for C&D and commercial recyclable materials in the City to enter into anon-exclusive
franchise with the City in order to regulate this collection and recycling business, to ensure its
orderly operation, and to minimize the potential for adverse effects it may have on the local
environment. The non-exclusive franchise agreement for drop box collection and recycling
services for C8~D and. commercial recyclable materials (Attachment 1 hereto), describes the
terms and conditions that collection company must comply with including, but not limited to,
diversion of at least 60% of all CB~D collected, diversion of at least 90% of the commercial
recyclable materials collected, payment of franchise fees and other fees to the City, and
reporting of customer and collection data to the City.
Companies can apply for anon-exclusive franchise agreement for collection of only C&D, only
commercial recyclable materials, or both CS~D and commercial recyclable materials.
APPLICATION PREPARATION AND SUBMITTAL INSTRUCTIONS
Companies interested in entering anon-exclusive franchise agreement with the City granting
them right to provide drop box collection and recycling services for C&D and/or commercial
recyclable materials in the City shall prepare and submit an application to the City in
accordance with the instructions provided herein. An application fee of $500, in the form of a
check payable to the City of Petaluma, shall be submitted with the application.
The applicant shall submit six copies of its completed application and its application fee by mail
or in person to:
City Manager
City of Petaluma
1 1 English Street
Petaluma, CA 94952
(707) 778-4345
Resolution No. 2006-018 N.C.S. Page 2
APPLICATION CONTENT
The application shall contain the information requested in items 1 through 5 of this section.
1. Applicant Information. Provide a cover letter that includes, at a minimum, the following
applicant information. The cover letter shall be signed by an officer or agent of the
company submitting the application, who is duly authorized to bind the company to the
application.
A. Company Name:
6. Company Type:
? Sole Proprietorship
? Partnerships (includes limited, general, and limited liability partnerships)
? Corporation (includes limited liability companies)
C. Contact Name/Title:
D. Mailing Address:
City Zip Phone:
E. Fax: Email:
F. Services to be Provided (check all that apply):
? C&D ? Commercial Recyclables
2. Qualification Information:
A. Experience -Describe the applicant's experience in providing drop box
collection, transportation, processing, and/or disposal services for C&D and/or
commercial recyclable materials in the City, in Sonoma County, or in similar
jurisdictions in California in which the applicant is:
1. Required to operate under anon-exclusive franchise or permit system
2. Not required to operate under anon-exclusive franchise or permit system.
B. Municipal References -Provide the name, title, address, and telephone number
of at least one jurisdiction representative responsible for administering the non-
exclusive franchise or permit system, where applicant provides services, which the
City may contact to conduct a reference check.
C. Customer References -Provide the name, title, address, and telephone number
of at least three customers that recently received or currently receive drop box
collection services provided by the applicant, which the City may contact to
conduct a reference check.
Resolution No. 2006-018 N.C.S. Page 3
D. Proof of Insurance -Provide proof of insurance in the amounts specified in Section
10.2 of the attached non-exclusive franchise agreement.
E. Liticlation Regulatory Actions, and Liquidated Damages -Describe all past and
pending civil, legal, regulatory, and criminal actions now pending or for which
judgments were made in the past five years against the applicant, applicant's
key personnel, and all subsidiaries owned by applicant that are affiliated with
solid waste, recyclable materials, yard trimmings, and C8~D businesses. List the
amount of liquidated damages, fines, and/or penalties the applicant has paid,
the name of the jurisdiction to which such payments where paid, and the
event(s) which triggered the damages, fines, or penalties.
3. Operations Information
A. Diversion Plan -Describe applicant's plan to divert at least 60% of the C8~D
collected and/or 90% of all commercial recyclable materials collected, as
applicable. Provide, at a minimum, a list of materials to be accepted, a list of
facilities to be used to process C&D and/or commercial recyclable materials
collected, and the markets for such C8~D and/or commercial recyclable
materials. Identify the disposal site to be used for disposal of processing residue,
and C&D and/or commercial recyclable materials, which. is not otherwise
diverted from disposal.
B. Vehicles - Provide a description of the vehicles reasonably expected to be used
to provide service through the term of the non-exclusive franchise agreement. At
a minimum, include the vehicle make, model, year, and weight.
C. Drop boxes - Provide a description of the containers reasonably expected to be
used to provide service through the term of the non-exclusive franchise
agreement. At a minimum, include the number, type, and size of containers.
D. Hazardous Substance Procedures -Describe procedures for identifying and
handling hazardous waste disposed in the C&D and commercial recyclable
materials collected by the applicant. The plan shall describe: identification and
screening procedures; notification plan; disposal plan; and, employee training
program.
E. Customer Service Plans -Identify the location and hours of the applicant's
customer service center, which shall be available to all C8~D and commercial
recyclable materials customers in accordance with Section 5.5 of the non-
exclusive franchise agreement.
F. Billing Services -Describe applicant's procedures for billing C8~D and commercial
recyclable materials customers and recording customer payments.
4. Sianed Non-Exclusive Franchise Agreement
Attach to the application a signed copy of the non-exclusive franchise agreement
(which is Attachment 1 hereto) including the Secretary's Certificate (Exhibit C of the non-
exclusive franchise agreement), if appropriate.
5. Statement of Understanding and Representations
Resolution No. 2006-018 N.C.S. Page 4
Attach a signed copy of the statement of applicant's understanding and
representations (which is Attachment 2 hereto).
QUESTIONS
An applicant or prospective applicant may submit written questions to the City regarding the
non-exclusive franchise agreement or the application instructions. All questions shall be
submitted to:
City Manager
City of Petaluma
1 1 English Street
Petaluma, CA 94952
(707) 778-4345
CITY REVIEW
The City shall review the application. During the City's review, the information submitted in the
application may be subject to verification. The applicant shall cooperate with the City's review
of its application and any City request for clarification or additional information. Failure to
provide all required application information, false, inaccurate or misleading information, may be
grounds for rejection of your application.
Within 60 days of receipt of the application, the City shall provide a written response to the
' applicant notifying the applicant of the City's intent to seek City Council approval of the non-
. exclusive franchise agreement and the date such approval will be requested, or the City's
rejection of the application.
Resolution No, 2006-018 N.C.S. Page 5
NON-EXCLUSIVE FRANCHISE AGREEMENT
BETWEEN
THE CITY OF PETALUMA
AND
FOR
DROP BOX COLLECTION AND RECYCLIiVG
OF CONSTRUCTION AND DEMOLITION DEBRIS AND COMMERCIAL RECYCLABLE
MATERIALS
Scope of Agreement: (check all that apply)
? Construction and Demolition Debris (C&D)
? Commercial Recyclable Materials
January 2006
Resolution No. 2006-018 N.C.S. Page 6
Table of Contents
RECITALS 10
ARTICLE 1. DEFINITIONS 11
ARTICLE 2. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR 17
2.1 Corporate Status ........................................................................................................................17
2.2 Authorization ...............................................................................................................................17
2.3 Agreement will Not Cause Breach ..................................................:...,...................................17
2.4 No Litigation ..................................:.............................................................................................18
2.5 No Adverse Judicial Decisions .................................................................................................18
2.6 No Legal Prohibition ...................................................................................................................18
2.7 Contractor's Statements .....................................................................::....................................18
2.8 Contractor's Investigation .................:......................................................................................18
2.9 Ability to Perform ........................................................................................................................18
ARTICLE 3. TERM OF AGREEMENT 19
3.1 Effective Date ..............................................................................................:..................:...........19
3.2 Conditions to Effectiveness of Agreement .........................................:...................................19
3.3 Initial Term ....................................................................................................................................19
3.4 Automatic Renewal ...................................................................................................................19
ARTICLE 4. SCOPE OF AGREEMENT 20
4.1 Scope of Agreement .................................................................................................................20
4.2 Limitations to Scope ................................................:..................................................................21
4.3 City's Right to Grant Multiple Non-Exclusive Agreements ...................................................22
4.4 Agreement Consistent with Applicable Law .........................................................................22
4.5 Ownership of Materials ..............................................................................................................22
4.6 Notification to City of Non-Franchised Haulers ......................................................................22
ARTICLE 5. COLLECTION, RECYCLING, AND DISPOSAL SERVICES 22
5.1 Collection ................................................................................:.........................................:.........22
5.2 Recycling .....................................................................................................................................23
5.3 Disposal ........................................................................................................................................24
5.4 Billing ............................................................:................................................................................25
5.5 Customer Service ..........................................................:............................................................25
ARTICLE 6. STANDARDS AND REQUIREMENTS FOR SERVICES, EQUIPMENT, AND PERSONNEL............ 26
6.1 Operating Hours and Schedules .....................................................:........................................26
6.2 Collection Standards ...............................................................................................:.................26
6.2.1 lnst~uctions to Customer ..................................................................................................:26
6.2.2 Care of Private Property ............................:......................................................................26
6.2.3 Litter Abatement ...............................................................................................................27
6.2.4 Noise ....................................................................................................................................27
6.3 Vehicle Requirements ................................................................................................................27
6.4 Drop Box Requirements .............................................................................................................28
6.5 Personnel ......:..............................................................................................................................29
6.6 Hazardous Substance Inspection and Handling ...................................................................30
6.7 Non-Discrimination .....................................................................................................................30
6.8 Communication and Cooperation with City .........................................................................31
Resolution No. 2006-018 N.C.S. Page 7
ARTICLE 7. RECORD KEEPING AND REPORTING 31
7.1 General ........................................................................................................................................31
7.1.1 Maintenance of Records ...................................................................................:.............31
7.1.2 Retention of Records ........................................................................................................31
7.1.3 Inspection of Records .......................................................................................................32
7.1.4 Record Security ..................................................................................................................32
7.2 Records ...................................................:....................................................................................32
7.2.1 Financial and Operational Records ......................................:........................................32
7.2.2 Customer Records
7.2.3 CERCLA Defense Records ................................................................................................33
7.3 General Reporting Requirements ..........................................................................................:.33
7.4 Quarterly Report .........................................................................................................................34
ARTICLE 8. FRANCHISE FEES AND OTHER FEES 35
8.1 General ........................................................................................................................................35
8.2 Franchise Fee ..............................................................................................................................35
8.3 Vehicle Impact Fee ...................................................................................................................35
8.4 Contract Administration Fee ....................................................................................................35
8.5 Other Fees ..............................................................................................................................:....35
8.6 Adjustment to Fees ..........................................:..........................................................................35
8.7 Payment Schedule and Late Fees .............................................................................:............36
8.8 Overpayment of Fees ................................................................................................................36
ARTICLE 9. CONTRACTOR'S COMPENSATION AND RATES 36
9.1 Contractor's Compensation
' 9.2 City's Right to Set Maximum Rates ..........................................................................................36
9.3 Contractor's Rates .....................................................................................................................37
ARTICLE 10. INDEMNITY AND INSURANCE 37
10.'1 Indemnification ......................................................:...............:....................................................37
10.2 Insurance .....................................................................................................................................37
10.2.1 Minimum Scope of Insurance ..........................................................................................37
10.2.2 Minimum Limits of Insurance ............................................................................................38
10.2.3 Deductibles and Self-Insured Retentions .......................................................................38
10.2.4 Other Insurance Provisions ...............................................................................................38
10.2.5 Acceptability of Insurers ...................................................................................................39
10.2,6 Verification of Coverage .................................................................................................39
10.2.7 Required Endorsements ....................................................................................................39
10.2.8 Delivery of Proof of Coverage .........................................................................................40
10.2.9 Other Insurance Requirements ........................................................................................40
ARTICLE 11. DEFAULT AND REMEDIES 41
1 1.1 Events of Default .........................................................................................................................41
1 1.2 Right to Terminate upon Default ..............................................................................................42
1 1.3 City's Remedies Cumulative; Specific Performance ............................................................42
11.4 Liquidated Damages .................................................................................................................42
1 1.5 Diversion Non-Performance ..........................:...........................................................................44
1 1.6 Conditions Upon Termination
ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES 45
12.1 Relationship of Parties ................................................................................................................45
12.2 Permits and Licenses
Resolution No. 2006-018 N.C.S. Page 8
12.3 Compliance with Law ................................................................................................................46
12.4 Governing Law ......................:......................................................................................:.............46
12.5 Jurisdiction ...................................................................................................................................46
12.6 Binding on Successors ................................................................................................................46
12.7 Assignment ..................................................................................................................................46
12.8 Parties in Interest .........................................................................................................................46
12.9 Waiver ..........................................................................................:...............................................47
12.10 Notice Procedures .................................................................................................................47
12.1 1 Representatives of the Parties ...................:..........................................................................47
12.12 Notice of City's Right to Grant Exclusive Franchise
12.13 Criminal Activity of Contractor ............................................................................................48
12.13.1 Criminal Activity .................................................................................................:...........48
12.13.2 Notice .............................................................................................................................49
12.13.3 Contractor's Cure .........................................................................................................49
12.13.4 Transfer and Hiring ...............................................:.........................................................49
12.13.5 City's Remedy .........................................................................................:......................49
ARTICLE 13. MISCELLANEOUS AGREEMENTS 49
13.1 Entire Agreement .......................................................................................................................49
13.2 Section Headings ........................................................................:..............................................50
13.3 References to Laws ....................................................................................................................50
13.4 Interpretation ..........................................................................................................:...................50
13.5 Amendment ................................................................................................................................50
13.6 Severability ..........................................................:.......................................................................50
13.7 Counterparts ...............................................................................................................................50
. 13.8 Exhibits ........................................................................................................................:.................SO
List of Exhibits
A Contractor's Application
B Schedule for Liquidated Damages
C Secretary's Certification
Resolution No. 2006-018 N.C.S. Page 9
NON-EXCLUSIVE FRANCHISE AGREEMENT
BETWEEN
THE CITY OF PETALUMA
AND
FOR DROP BOX COLLECTION AND RECYCLING OF CONSTRUCTION AND
DEMOLITION DEBRIS AND COMMERCIAL RECYCLABLE MATERIALS
This non-exclusive franchise agreement (Agreement) is made and entered into this day
of , 20 , by and between the City of Petaluma, a charter city, (City) and
(Contractor.)
This Agreement grants Contractor the rights to Collect the following types of materials pursuant
to the terms and conditions of this Agreement: (check all that apply)
? Construction and Demolition Debris (C&D)
? Commercial Recyclable Materials
If Contractor's rights are limited to C&D Collection, any and all. rights and terms and conditions
related to Commercial Recyclable Materials referenced in this Agreement shall not pertain to
the Contractor. If Contractor's rights are limited to Commercial Recyclable Materials Collection,
any and all rights and terms and conditions related to C8~D referenced in this Agreement shall
not pertain to the contractor.
Contractor's Initials City Manager's Initials
RECITALS
This Agreement is entered into with reference to the following facts and circumstances:
WHEREAS, the Legislature of the State of California, by enactment of the California Integrated
Waste Management Act of 1989 ("Act" or "AB939") and subsequent additions and
amendments (codified at California Public Resources Code Section 40000 et seq.), has declared.
that it is in the public interest to authorize and require local agencies to make adequate
provisions for Solid Waste Collection within their jurisdiction; and,
WHEREAS, the State of California ("State") has found and declared that the amouht of Solid
Waste generated in California, coupled with diminishing landfill space and potential adverse
environmental impacts from land filling and the need to conserve natural resources, have
created an urgent need for State and local agencies to enact and implement an aggressive
integrated waste management program. The State has, through enactment of the Act,
directed the responsible State agency, and all local agencies, to promote Disposal Site Diversion
and to maximize the use of feasible Solid Waste reduction, re-use, Recycling, and Composting
options in order to reduce the amount of Solid Waste that must be Disposed of in Disposal Sites;
and,
Resolution No. 2006-018 N.C.S. Page 10
WHEREAS, the Act requires local agencies to Divert 50% of discarded materials from landfills; and,
WHEREAS, landfill Disposal capacity in Sonoma County is in short supply, and the City is currently
directing its Solid Waste to landfill located outside of the County; and,
WHEREAS, the City finds that reusing and Recycling Construction and Demolition Debris (C8~D)
and Commercial Recyclable Materials is essential to further the City's efforts to reduce Solid
Waste Disposal and comply with the Act; and
WHEREAS, under Chapter 8.16.1 15 of the City's Municipal Code, the City has the authority to
provide for the Collection, Recycling, and Disposal of CB~D and Commercial Recyclable
Materials in Drop Boxes through a license granted to a Solid Waste Collection provider; and
WHEREAS, the City requires all haulers providing Drop Box Collection services for CAD and
Commercial Recyclable Materials in the City to obtain anon-exclusive franchise in order to
regulate this business, ensure its orderly operation, and to minimize the potential for adverse
effects it may have on the local environment; and
WHEREAS, the City Council has determined through an application process, that the Contractor,
by demonstrated experience, reputation, and capacity, is qualified to provide for the Drop Box
Collection of C&D and/or Commercial Recyclable Materials within the corporate limits of the
City and the Transportation of such material to appropriate places of Recycling, Processing,
and/or Disposal, and can provide insurance consistent with the City's requirements. The City
Council desires that Contractor be engaged to perform such services on the basis set forth in this
Agreement; and
WHEREAS, Contractor intends to use the City's streets, alleys, other public rights-of way, and
infrastructure to provide C&D and/or Commercial Recyclable Materials Collection services to
the City's residents and businesses; and
WHEREAS, the City intends to receive just and reasonable fees from the Contractor for City's
administration of the Agreement and for Contractor's use of the City streets, alleys, other public
rights-of-way, and infrastructure which the City may lawfully impose and the companies are
obligated to pay; and,
WHEREAS, this Agreement is satisfactory to the Parties,
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained
in this Agreement and for other good and valuable consideration, the Parties agree as follows:
ARTICLE 1
DEFINITIONS
For purposes of this Agreement, unless a different meaning is clearly required, the following
words and phrases shall have the following meanings respectively ascribed to them by this
Article and shall be capitalized throughout this Agreement:
"Abandon" means the following:
Resolution No. 2006-018 N.C.S. Page 11
a. Contractor's failure to remove aContractor-owned Drop Box within 5 calendar
days of receiving a written request from a Customer or the City, or
b. Contractor's failure to remove aContractor-owned Drop Box within 30 calendar
days upon termination of this Agreement.
"Act" means the California Integrated Waste Management Act of 1989 (Division 30 of the
California Public Resources Code), as amended, supplemented, superseded, and replaced
from time to time.
"Agreement" means this Agreement between the City and Contractor for the Drop Box
Collection, Transportation, Recycling, Processing, and Disposal of CS~D and Commercial
Recyclable Materials including all exhibits, and any future amendments hereto.
"Applicable Law" means all Federal, State, and local laws, regulations, rules, orders, judgments,
degrees, permits, approvals, or other requirement of any governmental agency having
jurisdiction over the Drop Box Collection, Transportation, Recycling, Processing, and Disposal of
C&D and Commercial Recyclable Materials that are in force on the Effective Date arid as they
may be enacted, issued, or amended during the Term of this Agreement.
"Approved C&D Processing Site" means the processing site on Road in
,California (name and address of Contractor's processing site), which was
selected by Contractor and approved by the City.
"Approved Commercial Recyclable Materials Processing Site" means the
processing site on Road in ,California (name and address of
Contractor's processing site), which was selected by Contractor and approved by the City.
"Approved Disposal Site" means the Disposal Site on Road in ,California
(name and address of disposal site where C&D and Commercial Recyclable Materials residue
will be disposed), which was selected by Contractor and approved by the City.
"Approved Processor" means the operator of the Approved C8~D Processing Site, and/or the
operator of the Approved Commercial Recyclable Materials Processing Site.
"Bin" means a container with capacity of approximately one to eight cubic yards, with a hinged
lid, and with wheels, that is serviced by a front end-loading Collection vehicle.
"Business Days" mean days during which City offices are open to do business with the public.
"Cart" means a plastic container with a hinged lid and wheels that is serviced by an automated
orsemi-automated Collection vehicle. A Cart has capacity of 20, 35, 64, or 96 gallons (or similar
volumes).
"C&D" means Construction and Demolition Debris.
"Change in Law" means any of the following events or conditions which has a material and
adverse effect on the performance by the Parties of their respective obligations under this
Agreement (except for payment obligations):
Resolution No. 2006-018 N.C.S. Page 12
a. The enactment, adoption, promulgation, issuance, modification, or written change
in administrative or judicial interpretation on or after the Effective Date of any
Applicable Law; or
b. The order or judgment of any governmental body, on or after the Effective Date, to
the extent such order or judgment is not the result of willful or negligent action, error
or omission or lack of reasonable diligence of the City or of the Contractor,
whichever is asserting the occurrence of a Change in Law; provided, however, that
the contesting in good faith or the failure in good faith to contest any such order or
judgment shall not constitute or be construed as such a willful or negligent action,
error or omission or lack of reasonable diligence.
"City" means the City of Petaluma, California, charter city and a municipal corporation, and all
the territory lying within the .municipal boundaries of the City as presently existing or as such,
boundaries may be modified during the Term. Unless otherwise specified in this Agreement any
action authorized or required by the City may be taken by the City Council or by an agent
designated by the City Council.
"City's Municipal Code" means the City of Petaluma Municipal Code and the City of .Petaluma
Charter.
. "Collect" or "Collection" mean the act of collecting C&D, Commercial Recyclable Materials,
and other material at the place of generation in the City.
"Commercial" shall mean of, from or pertaining to non-Residential Premises where business
activity is conducted, including, but not limited to, retail sales, services, wholesale operations,
manufacturing and industrial operations, but excluding businesses conducted upon Residential
property which are permitted under applicable zoning regulations and are not the primary use
of the property.
"Composting (or Compost)" includes a controlled biological decomposition of organic materials
yielding a safe and nuisance fee Compost Product.
"Compost Product" means the product resulting from the controlled biological decomposition of
organic materials that are Source Separated from the municipal Solid Waste stream, or which
are separated at a centralized facility..
"Construction and Demolition Debris (C&D)" includes rubble or debris generated by cleanup,
clearing, landscaping, yard renovation, pruning, gardening and other activities related to the
care and maintenance of property; and discarded building materials, packaging, debris, and
rubble that (1) results from construction, alteration, remodeling, repair or demolition operations
on any pavements, excavation projects, houses, Commercial buildings, or other structures, and
(2) is generated at a Premises pursuant to a construction or demolition permit issued by the City..
Construction and Demolition Debris shall expressly exclude putrescible wastes.
"Contractor" means (contractor's name), a (corporation, sole
proprietorship, partnership -select one term) organized and operating under the laws of the
State of California and its officers, directors,. employees, agents, companies, and
Subcontractors.
"Contractor's Application" means the application to provide Drop Box Collection services for
C&D and Commercial Recyclable Materials submitted by Contractor and received by the City
Resolution No. 2006-018 N.C.S, Page 13
and approved by the City on , 20 ,which is included as Exhibit A to this
Agreement and is incorporated by reference.
"Contractor Party(ies)" shall mean Contractor, officers, directors, or management or fiscal
employees (where "management employee" means any employee with direct or indirect
responsibility for direction and control over the Contractor's activities under this Agreement and
"fiscal" employee means an employee with direct or indirect responsibility and control duties
relating to financial matters under this Agreement).
"Criminal Activity" means those activities described in Section 12.13.1
"Customer" means the Person whom Contractor submits billing invoice to and collects payment
from for Collection services provided.
"Drop Box" means an open-top container with a capacity of six or more cubic yards that is used
for Collection of C8~D and Commercial Recyclable Materials and is serviced by a roll-off
Collection vehicle.
"Designated Waste" means non-Hazardous Substances which may pose special Disposal.
problems because of its potential to contaminate the environment and which may be Disposed
of only in Class II Disposal Sites or Class III Disposal Sites pursuant to a variance issued by the
California Department of Health Services. Designated Waste consists of those substances
classified as Designated Waste by the State of California, in California Code of Regulations Tifle
23, Section 2522 as may be amended from time to time.
"Disposal or Dispose (or variation thereof)" means the final disposition of Solid Waste at a
Disposal Site.
"Disposal Site" means a facility for ultimate Disposal of Solid Waste.
"Diversion" means activities that reduce or eliminate the amount of Solid Waste from Solid Waste
Disposal including, but not limited to, Recycling and Composting.
"Effective Date" means the date on which the latter of the two Parties signs the Agreement and
the date on which Contractor may begin to provide Drop Box Collection, Transportation,,
Recycling, Processing, and Disposal services for C&D and Commercial Recyclable Materials in
accordance with this Agreement.
"Federal" means belonging to or pertaining to the national general government of the United
States; or founded on or organized under the constitution of the United States.
"Franchise Fee" means the fee paid by Contractor to City for the privilege to hold the non-
exclusive rights granted by this Agreement.
"Generator" means any Person as defined by the Public Resources Code, whose act or process
produces C&D and Commercial Recyclable Materials as defined in the Public Resources Code,
or whose act first causes CB~D and Commercial Recyclable Materials to become subject to
regulation.
"Hazardous Substance" means any of the following: (a) any substances defined, regulated or
listed (directly or by reference) as "Hazardous Substances", "hazardous materials", "hazardous
wastes", "toxic waste", "pollutant" or "toxic substances" or similarly identified as hazardous. to
Resolution No. 2006-018 N.C.S. Page 14
human health or the environment, in or pursuant to (i) the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) of 1980, 42 USC §9601 et se . (CERCLA); (ii)
the Hazardous Materials Transportation Act, 49 USC § 1802, et sea.; (iii) the Resource
Conservation and Recovery Act, 42 USC §6901 et seg•; (iv) the Clean Water Act, 33 USC § 1251 et
sea.; (v) California Health and Safety Code §§251 1 5-251 1 7, 25249.8, 25281, and 25316; (vi) the
Clean Air Act, 42 USC §7901 et sea.; and (vii) California Water Code § 13050; (b) any
amendments, rules or regulations promulgated there under to such enumerated statutes or acts
currently existing or hereafter enacted; and (c) any other hazardous or toxic substance,
material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any
other Applicable Law currently existing or hereinafter enacted, including, without limitation,
friable asbestos, polychlorinated biphenyls ("PCBs"), petroleum, natural gas and synthetic fuel
products, and by-products.
"Holidays" are defined as New Year's Day, Labor Day, Fourth of July, Thanksgiving Day, and
Christmas Day.
"Infectious Waste" means biomedical waste generated at hospitals, public or private medical
clinics, dental offices, research laboratories, pharmaceutical industries, blood banks, mortuaries,
veterinary facilities and other similar establishments that are identified in Health and Safety Code
Section 25117.5 as may be amended from time to time.
"Legislation" means any code, ordinance, resolution, or any other formal enactment of the
governing body of the City, which now exists or which may hereafter be adopted, which
constitutes law or regulation governing the operation of the Contractor..
"Liquidated Damages" means the amounts due by Contractor for failure to meet specific
quantifiable standards of performance as described in Section 1 1.4 and Exhibit B.
"Organic Materials" means those discarded materials that will decompose and/or putrefy
including Yard Trimmings and food scraps such as, but are not limited to, green trimmings, grass,
weeds, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees, small wood
pieces, other types of organic yard waste, vegetable waste, fruit waste, grain waste, dairy
waste, meat waste, fish waste, paper contaminated with Food Scrap, pieces of unpainted and
untreated wood, and pieces of unpainted and untreated wallboard. No discarded material
shall be considered to be Organic Materials, however, unless such material is separated from
Solid Waste and Recyclable Material.
"Parent Company" refers to a company owning more that fifty percent (50%) of the shares of
another company (subsidiary) or a company that has management control over such
subsidiary.
"Party or Parties" refers to the City and Cohtractor, individually or together.
"Person(s)" means any individual, firm, association, organization, partnership, corporation,
business trust, joint venture, the United States, the State of California, the County of Sonoma, and
special purpose districts.
"Premises" means any land or building in the City where CB~D or Commercial Recyclable
Materials are generated or accumulated.
"Processing" means to prepare, treat, or convert through some special method.
Resolution No. 2006-018 N.C.S. Page 15
"Processing Site" means any plant or site used for sorting, cleansing, treating, or reconstituting
C8~D or Commercial Recyclable Materials for the purpose of making such material available for
reuse.
"Putrescible Waste" means Solid Wastes originated from living organisms and their metabolic
waste products and from petroleum, which contains naturally produced organic compounds
and which are biologically decomposable by microbial and fungal action into the constituent
compounds of water, carbon dioxide and other simpler organic compounds.
"Rates" means the fees Contractor bills and collects from each Customer receiving Drop Box
Collection service under this Agreement.
"Recyclable Materials" means those non-hazardous materials or by-products which are set
aside, handled, packaged, or offered for Collection in a container different from Solid Waste
container or which are Source Separated from Solid Waste or C&D, for the purpose of being
reused or Processed and then returned to the economic mainstream in the form of
commodities.
"Recycle or Recycling" means the process of sorting, cleansing, treating and reconstituting at a
Recyclable Materials Processing Site materials that would otherwise be Disposed of at a landfill
for the purpose of returning such materials to the economy in the form of raw materials for new,
reused or reconstituted products.
"Regional Agency" means the Sonoma County Waste Management Agency.
"Residential" shall mean of, from, or pertaining to asingle-family Premises, multi-plex, or multi-
family Premises including single-family homes, apartments, condominiums, townhouse
complexes, mobile home parks, cooperative apartments, and yacht harbors and marinas where
residents live aboard boats.
"Solid Waste" means solid waste as defined in California Public Resources Code, Division 30, Part
1, Chapter 2, §40191 and regulations promulgated thereunder that the City Code requires
Generators within the City to set out for Collection. Excluded from the definition of Solid Waste
are CB~D, Hazardous Substance, Infectious Waste, Designated Waste, Source Separated
Recyclable Materials, Source Separated Organic Materials, and radioactive waste.
Notwithstanding any provision to the contrary, "Solid Waste" .may include de minimis volumes or
concentrations of waste of a type and amount normally found in Residential Solid Waste after
implementation of programs for the safe collection, recycling, treatment and disposal of
household hazardous waste in compliance with Section 41500 and 41802 of the California Public
Resources Code as maybe amended from time to time.
"Source Separated" means the segregation, by the waste Generator, of materials designated
for separate Collection for some form of Recycling, recovery, or reuse.
"State" means the State of California.
"Subcontractor" means a party who has entered into a contract, express or implied, with the
Contractor for the performance of an act that is necessary for the Contractor's fulfillment of its
obligations under this Agreement.
"Term" means the Term of this Agreement, including extension periods if granted, as provided for
in Article 3.
Resolution No. 2006-O18 N.C.S. Page 16
"Ton (or Tonnage)" means a unit of measure for weight equivalent to 2,000 standard pounds
where each pound contains 16 ounces.
"Transportation" means the act of transporting or state of being transported.
"Vehicle Impact Fee" means the fee paid by Contractor to City for the use of the City streets,
alleys, other public rights-of-way, and infrastructure and such fees shall be used by City to repair
and maintain City streets.
"Yard Trimmings" means those discarded materials placed by a Generator in a receptacle
and/or at a location that is designated for Collection that will decompose and/or putrefy,
including but not limited to, green trimmings, grass, weeds, leaves, prunings, branches, dead
plants, brush, tree trimmings, dead trees, small pieces of unpainted and untreated wood, and
other types of organic waste.. Yard Trimmings are a subset of Organic Materials.
ARTICLE 2
REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR
The Contractor, by execution of this Agreement, represents and warrants the conditions
presented in this Article.
2.1 CORPORATE STATUS
Contractor is duly organized, validly existing and in good standing under the laws of the State. It
is qualified to transact business in the City and State and has the power to own its properties and
to carry on its business as now owned and operated and as required by this Agreement.
2.2 AUTHORIZATION
Contractor has the authority to enter this Agreement and perform its obligations under this
Agreement. The Board of Directors of Contractor (or the shareholders, if necessary), sole
proprietor, or partners have taken all actions required by law, its articles of incorporation, its
bylaws, or otherwise, to authorize the execution of this Agreement. The Person signing this
Agreement on behalf of Contractor represents and warrants that they have authority to do so
and the corporate secretary's certificate in Exhibit C confirms this. This Agreement constitutes
the legal, valid, and binding obligation of the Contractor.
2.3 AGREEMENT WILL NOT CAUSE BREACH
To the best of Contractor's knowledge after reasonable investigation, the execution or delivery
of this Agreement or the performance by Contractor of its obligations hereunder does not
conflict with, violate, or result in a breach: (i) of any law or governmental regulation applicable
to Contractor; (ii) any term or condition of anyjudgment, order, or decree of any court,
administrative agency or other governmental authority; or, (iii) any Agreement or instrument to
which Contractor is a party or by which Contractor or any of its properties or assets are bound,
or constitute a default thereunder.
Resolution No. 2006-018 N.C.S. Page 17
2.4 NO LITIGATION
To the best of Contractor's knowledge after reasonable investigation, there is no action, suit,
proceeding or investigation, at law or in equity, before or by any court or governmental
authority, commission, board, agency or instrumentality decided, pending or threatened
against Contractor wherein an unfavorable decision, ruling or finding, in any single case or in the
aggregate, would:
A. Materially adversely affect the performance by Contractor of its obligations hereunder;
B. Adversely affect the validity or enforceability of this Agreement; or
C. Have a material adverse effect on the financial condition of Contractor, or any surety or
entity guaranteeing Contractor's performance under this Agreement.
2.5 NO ADVERSE JUDICIAL DECISIONS
To the best of Contractor's knowledge after reasonable investigation, there is no judicial
decision that would prohibit this Agreement or subject this Agreement to legal challenge.
2.6 NO LEGAL PROHIBITION
To the best of Contractor's knowledge after reasonable investigation, there is no Applicable Law
in effect on the date Contractor signed this Agreement that would prohibit the Contractor's
performance of its obligations under this Agreement and the transactions contemplated hereby.
2.7 CONTRACTOR'S STATEMENTS
The Contactor's Application and any other supplementary information submitted to the City,
which the City has relied on in entering this Agreement, do not: (i) contain any untrue statement
of a material fact, or (ii) omit to state a material fact that is necessary in order to make the
statements made, in .light of the circumstances in which they were made, not misleading.
2.8 CONTRACTOR'S INVESTIGATION
Contractor has made an independent investigation (satisfactory to it) of the conditions and
circumstances surrounding the Agreement and the work to be performed hereunder.
Contractor has considered such matters in entering this Agreement to provide services in
exchange for the compensation provided for under the terms of this Agreement.
2.9 ABILITY TO PERFORM
Contractor possesses the business, professional, and technical expertise to Collect, Transport,
Recycle, Process, and Dispose CB~D and Commercial Recyclable Materials generated in the
City. Contractor possesses the equipment, facility(ies), and employee resources required to
perform its obligations under this Agreement.
Resolution No. 2006-018 N.C.S. Page 18
ARTICLE 3
TERM OF AGREEMENT
3.1 EFFECTIVE DATE
The Effective Date of this Agreement shall be the date the latter of the two Parties signs the
Agreement and all conditions described in Section 3.2 are satisfied. The Effective Date shall be
the date on which Contractor may provide Drop-Box Collection, Transportation, Recycling,
Processing, and Disposal services authorized by this Agreement.
3.2 CONDITIONS TO EFFECTIVENESS OF AGREEMENT
The obligation of City to permit this Agreement to become effective and to perform its
undertakings provided for in this Agreement is subject to the satisfaction of all the conditions
below, each of which may be waived, in written form, in whole or in part by City.
A. Accuracy of Representations. The representations and warranties made in Article 2 of
this Agreement are true and correct on and as of the Effective Date..
B. Absence of Litigation. There is no litigation pending on the Effective Date in any court
challenging the award or execution of this Agreement or seeking to restrain or enjoin its
performance.
C. Furnishings of Insurance. Contractor has furnished evidence of the insurance and
performance bond required by Article 10 that is satisfactory to the City.
D. Effectiveness of City Council Action. The City Council action approving this Agreement
shall have become effective and all Parties shall have signed the Agreement pursuant to
Applicable Law prior to or on the Effective Date, provided that no restraining order of
any kind has been issued.
3.3 INITIAL TERM
The initial Term of this Agreement shall continue in full force for a period of five years,
commencing on the Effective Date, unless the City terminates the Agreement in accordance
with Section 1 1.2.
3.4 AUTOMATIC RENEWAL
Upon the expiration of the initial term (as defined in Section 3.3) or extended expiration date, this
Agreement shall automatically renew its term for aone-year period unless: (i) City terminates the
Agreement in accordance with Section 1 1.2 of this Agreement, or (ii) the City gives written
notice of termination of the Agreement to Contractor 120 calendar days prior to the initial
expiration date or extended expiration date of this Agreement.
Resolution No. 2006-018 N.C.S. Page 19
ARTICLE 4
SCOPE OF AGREEMENT
4.1 SCOPE OF AGREEMENT
This non-exclusive franchise, granted to Contractor with regard to C&D and Commercial
Recyclable Materials, authorizes Contractor to Collect, Transport, Recycle, Process, and Dispose
of (1) CB~D placed by a Residential or Commercial Generator in a Drop Box for Collection
provided that the Drop Box is located at the construction site or demolition site where the C&D is
generated, and the Customer has voluntarily arranged for Contractor to provide Collection
services, and (2) Commercial Recyclable Materials placed by a Commercial Generator in a
Drop Box for Collection provided that the Drop Box is located where the Commercial
Recyclable Materials are generated, and the Customer has voluntarily arranged for Contractor
to provide Collection services. The scope of the Agreement shall be non-exclusive except
where otherwise precluded by Applicable Law.
This non-exclusive franchise does not grant the Contractor any rights to Collection of C&D or
Commercial Recyclable Materials that includes Putrescible Wastes weighing in excess of 10% of
the total weight of materials placed by Generator in a Drop Box for Collection.
The Contractor shall be responsible for the following services:
A. Collecting C&D placed by Customer in a Drop Box for Collection as requested by
Customer.
B. Collecting Commercial Recyclable Materials placed by Customer in a Drop Box for
Collection as requested by Customer.
C. Providing each Customer, upon delivery of Drop Box, a printed list that specifies the
materials that cannot be placed in the Drop Box (i.e., Putrescible Waste and Hazardous
Substances).
D. Transporting Collected materials to an Approved C&D Processing Site, Approved
Commercial Recyclable Materials Processing Site, or Approved Disposal Site.
E. Furnishing all labor, supervision, vehicles, Drop Boxes, other equipment, materials,
supplies, and all other items and services necessary to perform its obligations under this
Agreement.
F. Paying all expenses related to provision of services required by this Agreement including,
but not limited to, Franchise Fees, taxes, regulatory fees, Collection costs, Transportation
costs, Processing costs, Disposal costs, utilities, etc.
G. Providing all services required by this Agreement in a thorough and professional manner
so that residents, businesses, and the City are provided timely, reliable, courteous and
high-quality service at all times.
H. Performing all services in substantial accordance with this Agreement at all times using
best industry practice for comparable operations.
Resolution No. 2006-018 N.C.S. Page 20
I. Complying with Applicable Law.
J. Performing or providing all other services necessary to fulfill its obligations under this
Agreement.
K. Diverting a minimum of 60% of the C8~D Collected from Disposal. The Diversion rate shall
be calculated each. month based upon the weights of C&D Collected and Diverted.
L. Diverting 90% of the Commercial Recyclable Materials Collected from Disposal. The
Diversion rate shall be calculated each month based upon the weights of Commercial
Recyclable Materials Collected and Diverted.
The enumeration and specification of particular aspects of service, labor, or equipment
requirements shall not relieve Contractor of the duty of accomplishing all other aspects
necessary to fulfill its obligations under this Agreement whether such requirements are
enumerated elsewhere in the Agreement or not.
4.2 LIMITATIONS TO SCOPE
The C8~D and Commercial Recyclable Materials listed below in this Section may be Collected
and Transported by other Persons provided that such Persons-shall do so in accordance with the
City's Municipal Code.
A. C8~D or Commercial Recyclable Materials Mixed with Putrescible Waste. C&D or
Commercial Recyclable Materials in Drop Boxes that include Putrescible Wastes
weighing in excess of 10% of the total weight of materials in the Drop Box.
B. C&D and Commercial Recyclable Materials Collected by Other Non-Exclusive Franchise
Haulers. C8~D and Commercial Recyclable Materials Collected by a party that has
executed aNon-Exclusive Franchise Agreement with the City for Drop-Box Collection
and Recycling of C8~D and Commercial Recyclable Materials.
C. Commercial Recyclable Materials Collected in Carts or Bins. Commercial Recyclable
Materials placed in Carts or Bins and Collected by (1) the party that has executed an
Exclusive Franchise Agreement with the City for Solid Waste, Recyclable Materials, and
Organic Materials Services, or (2) by a Person (or company) through a private
arrangement with the Generator, and the Generator is compensated for the materials
Collected.
D. Donated Materials. C&D and Recyclable Materials Generated in the City that Source
Separated are donated by the Generator to youth, civic, charitable, or other nonprofit
organizations.
E. Materials Hauled by Owner or Occupant, or its Contractor. CB~D or Commercial
Recyclable Materials that is removed from any Premises by the Owner or Occupant and
are Transported to a Disposal Site or Processing Site by (i) the Owner or Occupant of such
Premises, by full-time employee of Owner or Occupant that uses the Owner's or
Occupant's equipment to transport materials; or (ii) by a contractor whose removal of
the C&D or Commercial Recyclable Materials is incidental to the service being
performed and such contractor removes materials at no additional or separate fee.
Resolution No. 2006-018 N.C.S. Page 21
4.3 CITY'S RIGHT TO GRANT MULTIPLE NON-EXCLUSIVE AGREEMENTS
The City may grant an unlimited number of Persons similar non-exclusive franchise agreements
for Drop Box Collection, Transportation, Recycling, Processing, and Disposal of C&D and
Commercial Recyclable Materials.
4.4 AGREEMENT CONSISTENT WITH APPLICABLE LAW
This Agreement and scope of this franchise shall be interpreted to be consistent with Applicable
Law, now and during the Term. If future judicial interpretations of current law or new laws,
regulations, or judicial interpretations limit the ability of the City to lawfully provide for the scope
of services as specifically set forth herein, Contractor agrees that the scope of the Agreement
will be limited to those services and materials which may be lawfully provided and that the City
shall not be responsible for any lost profits or losses claimed by Contractor to arise out of
limitations of the scope of the Agreement set forth herein. In such an event, it shall be the
responsibility of Contractor to minimize the financial impact of such future judicial interpretations
or new laws.
4.5 OWNERSHIP OF MATERIALS
Once C&D and Commercial Recyclable Materials are placed in a Drop Box for Collection by
Contractor, ownership and the right to possession of such materials shall transfer directly from the
Customer to Contractor.
City may obtain ownership or possession of C&D and Commercial Recyclable Materials placed
in the Drop Box for Collection upon written notice to Contractor of its intent to do so. However,
nothing in this Agreement shall be construed as giving rise to any inference that City has such
ownership or possession unless such written notice has been given to Contractor.
4.6 NOTIFICATION TO CITY OF NON-FRANCHISED HAULERS
If Contractor can produce evidence that other Persons are Collecting C&D and Commercial
Recyclable Materials and do not have rights to do so as granted by non-exclusive franchise
agreement with the City or in a manner that is not consistent with the City's Municipal Code,
Contractor shall notify the City in writing, within 10 calendar days of Contractor witnessing such
circumstances. The Contractor's notice shall include the name and telephone number of the
Person or company Collecting C&D and Commercial Recyclable Materials, the date the
Contractor witnessed the event, the location of the Drop Box along with Contractor's evidence
of the violation of the rights granted by this non-exclusive franchise.
ARTICLE 5
COLLECTION, RECYCLING, AND bISPOSAL SERVICES
5.1 COLLECTION
Contractor shall Collect C&D and Commercial Recyclable Materials from Customers that
voluntarily subscribe to or request C&D and Commercial Recyclable Materials Collection
services from Contractor. Contractor shall provide its Customers with a Drop Box for C&D and
Commercial Recyclable Materials Collection or shall allow its Customers to provide a Drop Box.
Contractor shall Collect CB~D and Commercial Recyclable Materials placed in Drop Boxes,
owned by Contractor or Customer, as scheduled by Customer.
Resolution No. 2006-018 N.C.S. Page 22
In accordance with Section 4.2, Contractor shall only provide C&D Collection services for C&D
that is Generated at a construction or demolition job site by activities conducted pursuant to a
construction or demolition permit issued by the City.
In accordance with Section 4.2, Contractor shall only provide Commercial Recyclable Materials
Collection services for Recyclable Materials that contain no more than 10% Putrescible Wastes
by weight, and are Generated at commercial premises.
Contractor shall Transport materials Collected pursuant to this Agreement to an Approved
Processing Site that has been approved in advance by the City. The Approved Processing Site
must be able to demonstrate Diversion rates in accordance with Section 4.1.
Contractor may enter into contracts with Customers for Collection services provided that in no
case shall the term of such contracts extend beyond the Term of this Agreement, and provided
that in the event the City terminates this Agreement the contracts with any and all Customers
shall be null and void on the termination date of this Agreement.
5.2 RECYCLING
A. Processing. Contractor agrees to Transport and deliver all C8~D it Collects in the City to
the Approved C8~D Processing Site and to Transport and Deliver all Commercial
Recyclable Materials it Collects in the City to the Approved Commercial Recyclable
Materials Processing Site. Residue from the CS~D and Commercial Recyclable Materials
shall be Disposed of by Contractor or its Approved Processor at an Approved Disposal
Site selected by Contractor in accordance wifh Section 5.3. Contractor shall select the
Approved C&D Processing Site(s), Approved Commercial Recyclable Materials
Processing Site(s) and Approved Disposal Site(s) and obtain the City's written approval to
use such sites prior to Effective Date of this Agreement. Contractor shall permit or
arrange for the City to inspect the Approved Processing Site(s) and observe operations
at any time during the Term.
Contractor or its Approved Processor(s) shall possess all existing permits and approvals
necessary for use of the C&D and Commercial Recyclable Materials Processing Site(s) in
full regulatory compliance. Contractor shall, upon City request, provide or request from
its Approved Processor(s) and provide copies of notices of violation or permits to the City.
Upon request of the City, Contractor shall provide a certified statement from its
Approved Processor(s) documenting its Diversion rate.
If Contractor elects to use a C&D or Commercial Recyclable Materials Processing Site(s)
that is different than the. Approved C8~D Processing Site or Approved Commercial
Recyclable Materials Processing Site, it shall request written approval from the City 60
calendar days prior to use of the site and obtain the City's written approval no later than
10 calendar days prior to use of the site.
If Contractor is unable to use the Approved C&D Processing Site or Approved
Commercial Recyclable Materials Processing Site due to an emergency or sudden
unforeseen closure of the Approved C&D Processing Site or Approved Commercial
Recyclable Materials Processing Site, Contractor may use an alternative Processing Site
provided that the Contractor provides verbal and written notice to the City within 24
hours of use of an alternative Processing Site. The written notice shall include a
description of the reasons the Approved C8~D Processing Site or Approved Commercial
Resolution No. 2006-018 N.C.S. Page 23
Recyclable Materials Processing Site is not feasible and the period of time Contractor
proposes to use the alternative Processing Site. Contractor shall receive the City's written
approval to use the alternative Processing Site within 24 hours of the City's receipt of the
Contractor's written notice.
B. Marketing. The Contractor or its Approved Processor shall be responsible for marketing
C&D and Commercial Recyclable Materials Collected in the City and Diverted.
Contractor and/or its Approved Processor shall retain all revenues generated from the
sale of Recyclable Materials Diverted.
Upon request, Contractor or its Approved Processor shall provide proof (in the form of
sales receipts showing end-user) to the City that all CB~D and Commercial Recyclable
Materials Diverted are marketed for Recycling or reuse in such a manner that materials
shall be considered as Diverted in accordance with the State regulations established by
the Act. All residual material from the Processing activities that is not marketed for use
shall be accounted for as Disposal Tonnage at a permitted Disposal Site. No Recyclable
Material shall be transported to a domestic or foreign location if Solid Waste Disposal of
such material is its intended use.
Contractor or its Approved Processor shall provide the City, upon written request, with a
.list of broker/buyers it uses as to market C8~D and Commercial Recyclable Materials
Diverted. City may audit brokers or buyers to confirm that materials are being Recycled
and Diverted from Disposal. If Contractor becomes aware that a broker or buyer has
illegally handled or Disposed of material generated by the City or elsewhere, Contractor
shall immediately inform the City and terminate its contract or working relationship with
such party immediately.
C. Diversion Requirement. Contractor shall Divert at least 60% by weight of all C&D it
Collects within the City and 90% by weight of all Commercial Recyclable Materials it
Collects within the City during each calendar month by Processing and Recycling some
or all of the C&D and Commercial. Recyclable Materials Collected.
If Contractor fails to .Divert at least 60% by weight of all C&D it Collects within the City
during a calendar month and at least 90% by weight of all Commercial Recyclable
Materials it Collects within the City, the City may terminate the Agreement in
accordance with Section 1 1.2.
5.3 DISPOSAL
Contractor shall, or shall require its Approved Processor to, Dispose of C&D and Commercial
Recyclable Materials Collected within the City, which are not Diverted through Processing
activities, by Transporting C8~D and Commercial Recyclable Materials to an Approved Disposal
Site, which is lawfully authorized to accept such material. Contractor, or its Approved Processor,
shall not Dispose of such C&D or Commercial Recyclable Materials by depositing it on any
public or private land, in any river, stream, or other waterway, or in any sanitary sewer or storm
drainage system or in any other manner which violates Applicable Laws. Contractor, or its
Approved Processor, shall select the Approved Disposal Sites) and obtain the City's written
approval to use such sites prior to Effective Date of this Agreement. Contractor shall arrange for
the City to inspect the Approved Disposal Sites) and observe operations at any time during the
Term.
Resolution No. 2006-018 N.C.S. Page 24
Contractor or its Approved Processor shall only Dispose of materials at a permitted Disposal Site
that is in full regulatory compliance. Contractor, or its Approved Processor, shall keep or confirm
all existing permits and approvals necessary for use of the Disposal Site(s) in full regulatory
compliance. Contractor shall, upon request, provide copies of notices of violation or permits to
the City.
If Contractor, or its Approved Processor, elects to use a Disposal Site(s) that is different than the
Approved Disposal Site, it shall request written approval from the City 60 calendar days prior to
use of the site and obtain the City's written approval no later than 10 calendar days prior to use
of the site.
If Contractor, or its Approved Processor, is unable to use the Approved Disposal Site due to an
emergency or sudden unforeseen closure of the Approved Disposal Site, Contractor, or its
Approved Processor, may use an alternative Disposal Site provided that the Contractor provides
verbal and written notice to the City within 24 hours of use of an alternative Disposal Site. The
written notice shall include a description. of the reasons the Approved Disposal Site is not feasible
and the period of time Contractor, or its Approved .Processor, proposes to use the alternative
Disposal Site. Contractor shall receive the City's written approval to use the alternative Disposal
Site within 24 hours of the City's receipt of the Contractor's written notice.
5.4 BILLING
Contractor shall bill all Customers and collect billings in accordance with Contractor-established
Rates, which are set in a manner consistent with provisions of Section 9.3. The Contractor shall
prepare, mail, and collect bills (or shall issue written receipts for cash payments) for Collection
services provided by Contractor. Contractor shall be responsible for collection of payment from
Customers with past due accounts ("bad debt").
Contractor shall maintain copies of all billings and receipts, each in chronological order, for five
years for inspection and verification by City at any reasonable time upon request. The
Contractor may, at its option, maintain those records in computer form, on microfiche, or in any
other manner, provided that the records can be preserved and retrieved for inspection and
verification in a timely manner.
5.5 CUSTOMER SERVICE
Contractor shall maintain a business office within the City or within a reasonable distance of the
City limits approved by the City Manager. The business office shall staff at least one customer
service representative capable of accepting payments from Customers, answering service
questions, and resolving Customer service issues. Contractor shall have atoll-free Customer
service telephone number and shall have staff available to answer calls from at least 8:00 a.m.
to 6:00 p.m., Monday through Friday. An answering machine shall record Customer calls and
voice messages between 6:00 p.m. and 8:00 a.m.
Resolution No. 2006-018 N.C.S. Page 25
ARTICLE 6
STANDARDS AND REQUIREMENTS FOR SERVICES, EQUIPMENT, AND PERSONNEL
6.1 OPERATING HOURS AND SCHEDULES
A. Hours of Collection
1. Residential Premises. Delivery or Collection of a Drop Box to or from Residential
Premises shall only occur between the hours of 6:00 a.m. and 6:00 p.m., Monday
through Friday.
2. Commercial Premises. Delivery or Collection of a Drop Box to or from Commercial
Premises that are 200 feet or less from Residential Premises shall only occur between
the hours of 6:00 a.m. and 6:00 p.m., Monday through Friday. Delivery or Collection
of a Drop Box to or from Commercial Premises that are more than 200 feet from
Residential Premises shall only occur between the hours of 5:00 a.m. and 7:00 p.m.
The City Manager may require modifications to hours for delivery and Collection
from Commercial Premises to resolve noise complaints, and, in such case, the City
Manager may change the allowable operating hours.
3. Exceptions. In the event of an unforeseen circumstance, the Contractor may
deliver or Collect a Drop Box from Residential or Commercial Premises that are 200
feet or less from Residential Premises between the hours of 5:00 a.m. and 10:00 p.m.,
upon prior written approval from the City Manager.
4. Failure to Comply. If the Contractor fails to comply with the Collection hours
described in this Section, the Contractor shall pay the City Liquidated Damages as
described in Section 1 1.4 and Exhibit B.
6.2 COLLECTION STANDARDS
6.2.1 Instructions to Customer
Contractor shall instruct Customers as to any preparation of C8~D or Commercial Recyclable
Materials necessary prior to placing. in the Drop Box. Contractor shall, in written form, inform all
Customers as to the acceptable materials that can be included in the Drop Box and any
unacceptable materials to be excluded from Collection. Contractor shall, in written form, inform
all Customers that Putrescible and liquid wastes in excess of 10% by weight of each load in total
are prohibited.
6.2.2 Care of Private Property
Contractor shall not damage private property. Contractor shall ensure that its employees: (i)
close all gates opened in making Collections, unless otherwise directed by the Customer; (ii) do
not cross landscaped areas; and (iii) do not climb or jump over hedges and fences.
City shall refer complaints about damage: to private property to Contractor. Contractor shall
repair all damage to private and public property caused by its employees to its previous
condition.
Resolution No. 2006-018 N.C.S. Page 26
6.2.3 Litter Abatement
A. Minimization of Spills. Contractor shall use due care to prevent vehicle oil and vehicle
fuel from being spilled or scattered during Collection and Transportation operations. If
any C8~D or Recyclable Materials are spilled or scattered during Collection or
Transportation operations, the Contractor shall promptly clean up all spilled and
scattered materials.
Contractor shall not transfer loads from one vehicle to another on any public street,
unless it is necessary to do so because of mechanical failure, hot load (combustion of
material in the truck), accidental damage to a vehicle, or unless approved by the City.
If Contractor fails to perform some or all of the requirements described in this Section, the
Contractor shall pay the City Liquidated Damages as described in Section 11.4 and
Exhibit B.
B. Clean-Up. Each Collection vehicle shall carry protective gloves, a broom, and shovel at
all times for cleaning up litter and absorbent material for cleaning up liquid spills. The
Contractor shall discuss instances of repeated spillage not caused by it with the
Customer of the Premises where spillage occurs, and Contractor shall report such
instances to City. If the Contractor has attempted to have a Customer stop creating
spillage but is unsuccessful, the City will attempt, upon notice by the Contractor, to
rectify such situation with the Customer.
C. Covering of Loads. Contractor shall cover all Drop Boxes at the pickup location before
Transporting materials to prevent C&D or Commercial Recyclable Materials from
escaping during Transportation.
6.2.4 Noise
All Collection operations shall be conducted as quietly as possible and shall conform to
Applicable Law. Contractor will promptly resolve any Complaints of noise during the morning or
evening hours of the day to the satisfaction of the City. In the event of repeat occurrences of
noise levels in excess of 75 db(A), the Contractor shall pay Liquidated Damages in accordance
with Section 1 1.4 and Exhibit B.
6.3 VEHICLE REQUIREMENTS
A. General. Vehicles used to provide services under this Agreement shall be kept in a safe,
neat, clean, and operable condition at all times. If Contractor fails to keep Collection
vehicles in a safe and sanitary condition, the Contractor shall pay the City Liquidated
Damages as described in Section 1 1.4 and. Exhibit B.
B. Specifications. Contractor shall register all vehicles with the California Department of
Motor Vehicles. All such vehicles shall comply with California Environmental Protection
Agency (EPA) noise emission and air quality regulations and other applicable noise
control regulations.
C. Vehicle Identification. Contractor's name, local telephone number, and a unique
identification number for each vehicle used to provide services under this Agreement,
shall be prominently displayed on all vehicles, in letters and numbers that are a minimum
of 4 inches high. Contractor shall not place the City's logo on its vehicles.
Resolution No. 2006-018 N.C.S. Page 27
D. Cleaning and Maintenance
1. Cleaning. Collection vehicles shall be thoroughly washed and thoroughly steam
cleaned as frequently as necessary to present a clean appearance of the exterior and
interior compartment of the vehicle.
2. Maintenance. Contractor shall inspect each vehicle daily to ensure that all equipment is
operating properly. Vehicles that are not operating properly shall be taken out of service
until they are repaired and operating properly. Contractor shall perform all scheduled
maintenance functions in accordance with the manufacturer's specifications and
schedule or in accordance with California Highway Patrol standards whichever are more
stringent. Contractor shall keep accurate records of all vehicle maintenance, recorded
according to date and mileage, and shall make such records available to the City upon
request to the extent necessary to perform the inspections described in Sections 6.3.F
and 6.8.
3. Repairs. Contractor shall repair, or arrange for the repair of, all of its vehicles and
equipment for which repairs are needed because of accident, breakdown, or any other
cause, so as to .maintain all equipment in a safe and operable condition. Contractor
shall maintain accurate records of repair, which shall include the date/mileage, nature
of repair and the signature of a maintenance supervisor that the repair has been
properly performed.
4. Storage. Contractor shall arrange to store all vehicles and other equipment in safe and
secure location(s) in accordance with City's applicable zoning regulations.
E. Operation. Vehicles shall be operated in compliance with the California Vehicle Code,
and all applicable safety and .local ordinances. Contractor shall not load vehicles in
excess of the manufacturer's recommendations or limitations imposed by State or local
weight restrictions for vehicles and roads. Contractor shall have each Collection vehicle
weighed at the Approved C&D Processing Sites, Approved Commercial Recyclable
Materials Processing Site, or Approved Disposal Sites to determine the unloaded weight
("tare weight") of the vehicle, and the total loaded weight of each load delivered to the
Approved C&D Processing Sites, Approved Commercial Recyclable Materials Processing
Site, or Approved Disposal Sites.
F. Vehicle Inspection. City may inspect vehicles at any time to determine compliance with
the requirements of this Agreement. Contractor shall make vehicles available to the City
and/or Sonoma County Health Department for inspection, at any frequency City
reasonably requests.
6.4 DROP BOX REQUIREMENTS
A. General. All Drop Boxes shall meet applicable federal, State, and local regulations for
safety.
B. Specifications. Contractor-provided Drop Boxes shall be designed and constructed to
be watertight and prevent the leakage of liquids.
C. Drop Box Identification. All Contractor-provided Drop Boxes shall prominently display the
Contractor's name, local telephone number, a unique Drop Box identification number,
Resolution No. 2006-018 N.C.S. Page 28
the words "Construction and Demolition Debris or Recyclable Materials Only," and a list
of acceptable materials.
If Contractor fails to comply with the provisions of this Section 6.4, the Contractor shall
pay the City Liquidated Damages as described in Section 1 1.4 and Exhibit B.
D. Cleaning, Painting, and Maintenance. All Drop Boxes shall be maintained in a safe,
serviceable, and functional condition. Contractor shall steam clean and repaint all Drop
Boxes at least every two years, or more frequently, to present a clean appearance. If
any Drop Box is impacted by graffiti, Contractor shall remedy the situation within 48
hours.
E. Drop Box Inspections. City may inspect Drop Boxes at any time to determine
compliance with sanitation requirements. Contractor shall make Containers available to
the City at any frequency it requests. The City shall have the right to prohibit the use of
any Drop Box that fails to comply with the provisions in this Section 6.4.
F. Abandoned Drop Boxes. Contractor shall not Abandon any Drop Box used to provide
C&D or Commercial Recyclable Materials Collection services under this Agreement. If
the Contractor Abandons aContractor-owned Drop Box, City may remove the Drop Box
and Process and Dispose of the contents. If the City removes a Drop Box Abandoned by
Contractor, the City may charge Contractor for the City's costs incurred removing such
Drop Box, Transporting, Processing, and Disposing of its contents, and/or the cost of
storing such Drop Box. Contractor shall reimburse the City for such costs within 10
calendar days of the date of the City's invoice to the Contractor for such costs.
6.5 PERSONNEL
A. General. Contractor shall furnish such qualified drivers, maintenance, supervisory,
Customer service, clerical and other personnel as may be necessary to provide the
services required by this Agreement in a safe and efficient manner.
B. Driver Qualifications. All drivers shall be trained and qualified in the operation of
Collection vehicles, and must have in effect a valid license, of the appropriate class,
issued by the California Department of Motor Vehicles. Contractor shall use the Class II
California Department of Motor Vehicles employer "Pull Notice Program" to monitor its
drivers for safety.
C. Safety Training. Contractor shall provide suitable operational and safety training for all of
its. employees who operate Collection vehicles or equipment or who are otherwise
directly involved in such Collection, Disposal, or Processing. Contractor shall train its
employees involved in Collection to identify, and not to collect, Hazardous Substance or
Infectious Waste. Upon the City's request, Contractor shall provide a copy of its safety
policy and safety training program, the name of its safety officer, and the frequency of its
trainings.
D. Employee Conduct and Courtesy. Contractor shall use its best efforts to ensure that all
employees present a neat appearance and conduct themselves in a courteous manner.
Contractor shall regularly train its employees in Customer courtesy, shall prohibit the use
of loud or profane language, and shall instruct Collection employees to perform the work
as quietly as possible. If any employee is found not to be courteous or not to be
performing services in the manner required by this Agreement, Contractor shall take all
Resolution No. 2006-O1S N.G.S. Page 29
appropriate corrective measures and shall pay the City Liquidated Damages as
described in Section 1 1.4 and Exhibit B.
E. Employee Identification. While performing services .under this Agreement, all of the
Contractor's employees performing field service shall be dressed in clean clothes and
shall wear badges that include the employee's name and/or employee number, and
Contractor's name, as approved by the City.
b.b HAZARDOUS SUBSTANCE INSPECTION AND HANDLING
A. Response to Hazardous Substance Identified during Collection. If Contractor determines
that material placed in any Drop Box for Collection is a Hazardous Substance that may
not legally be Disposed of at a Disposal Site or handled at the' Processing Site, or presents
a hazard to Contractor's employees, the Contractor shall refuse to accept such material.
The Contractor shall contact the Customer and request the Customer to arrange proper
Disposal. If the Generator cannot be reached immediately, the Contractor shall, before
leaving the Premises, leave a tag at least two inches by six inches (2" x 6") in size, which
indicates the reason for refusing to Collect the material and lists the phone number for
the Sonoma County Household Toxic Waste Facility. Under no circumstances shall
Contractor's employees knowingly Collect Hazardous Substance.
If Hazardous Substance is found in a Drop Box that could possibly result in imminent
danger to people or property, the Contractor .shall immediately notify the City's Fire
Department using the 91 1 emergency number.
The Contractor shall notify the City of any Hazardous Substance identified in Drop Boxes
or left at any Premises within 24 hours of identification of such material.
B. Response to Hazardous Substances Identified at Disposal Site or Processing Site. The
Contractor, or its Approved Processor, shall provide load checkers and equipment
operators at the Processing or Disposal Site(s) to identify Hazardous Substances for
storage in approved, on-site, hazardous materials storage container(s). Contractor shall
make reasonable efforts to identify and notify the Customer. Contractor shall arrange for
removal of the Hazardous Substances by permitted haulers in accordance with
Applicable Laws and regulatory requirements.
If the Hazardous Substances delivered to a Disposal Site or Processing Site by Contractor
before its presence is detected, and the Generator cannot be identified or fails to
remove the material after being requested to do so, the. Contractor shall arrange for its
proper Disposal. The Contractor may make a good faith effort to recover the cost of
Disposal from the Generator, and the cost of this effort, as well as the cost of Disposal
shall be chargeable to the Generator.
C. Regulations and Record Keeping. Contractor shall comply with emergency notification
procedures required by Applicable Laws and regulatory requirements. All records
required by regulations shall be maintained at the Contractor's facility. These records
shall include: waste manifests, waste inventories, waste characterization records,
inspection records, incident reports, and training records.
6.7 NON-DISCRIMINATION
Resolution No. 2006-018 N.C.S. Page 30
Contractor shall not discriminate in the provision of service or the employment of Persons
engaged in performance of this Agreement on account of race, color, natural origin, ancestry,
religion, gender, marital status, sexual orientation, age, physical. or mental disability in violation of
any Applicable Law.
6.8 COMMUNICATION AND COOPERATION WITH CITY
A. Communications. If requested, the Contractor shall meet with the City or its agent to
discuss service issues.
B. Inspection by City. The City, or its designated representatives, shall have the right to
observe and review Contractor operations, Processing Sites and Disposal Sites used by
Contractor, and enter Contractor's Premises for the purposes of such observation and
review during reasonable hours without advance notice.
C. Cooperate with City-Initiated Studies. Contractor shall cooperate with and assist the City
or its agent with the performance of City-initiated studies of CB~D or Commercial
Recyclable Materials such as, but not limited to, waste characterization and composition
studies.
ARTICLE 7
RECORD KEEPING AND REPORTING
7.1 GENERAL
7:1.1 Maintenance of Records
Contractor agrees to conduct data collection, information and record keeping, and reporting
activities needed to comply with and to meet the reporting and C&D and Commercial
Recyclable Materials program management needs of City and the Regional Agency, the Act,
and other Applicable Laws, and the requirements of this Agreement.
This Article is intended to highlight the general nature of records and reports to be maintained
by Contractor, and their minimum content. This Article is not meant to comprehensively define
what the records and reports are to be and their content. With the written direction by or
approval of City, the records and reports to be maintained and provided by Contractor iri
accordance with this and- other Articles of the Agreement shall be adjusted in number, format,
or frequency. Records and reporting may be revised to reflect current record keeping and
reporting requirements.
To the extent such requirements are set out in this and other Articles of this Agreement, they shall
not be considered limiting or necessarily complete.
7.1.2 Retention of Records
Unless otherwise required in this Article, Contractor shall retain all records and data required to
be maintained by this Agreement for the Term of this. Agreement plus five years after its
expiration or earlier termination. Records and data shall be in chronological order and readily
and easily interpreted. At the City's request, records and data required to be maintained that
are specifically directed in this Agreement to be retained, shall be retrieved in a timely manner
by Contractor and made available to the City.
Resolution No. 2006-018 N.C.S. Page 31
7.1.3 Inspection of Records
The City, its auditors and other agents, shall have the right, during regular business hours, to
inspect specific documents or records required by this Agreement or any other similar records or
reports of the Contractor that the City shall deem, at its sole discretion, necessary to evaluate
the Contractor's performance provided for in this Agreement. The City may make copies of any
documents it deems relevant to this Agreement. The City shall provide Contractor written notice
at least three Business Days prior to any inspection of these records.
The City reserves the right to inspect records for the purposes of auditing the Contractor's
reports, reported Diversion level, and fee payments to the City. If an audit conducted by the
City, or its representatives, finds: (i) that the Contractor has made any intentional
misrepresentation with respect to the fees dues to the City (e.g., Franchise Fees or other fees due
to the City as per Article 8) in an amount greater than $1,000 or 10% of the fees due to the City
during the period covered by the audit, whichever is greater, or (ii) that the Diversion level is 5%
different than the Diversion level reported by the Contractor, then in addition to any other
remedies available to the City, Contractor shall reimburse the City for the City's costs incurred in
the performance of the audit. Such reimbursement shall be paid by Contractor, along with any
underpaid fees and Liquidated Damages required by Section 1 1.4 and Exhibit B, within 30
calendar days of the date the City notifies the Contractor of the amount of the City's costs.
7.1.4 Record Security
Contractor shall maintain adequate record security to preserve records from events that can be
reasonably anticipated such as fire, theft, and earthquake. Electronically maintained data and
records shall be protected and backed-up.
7.2 RECORDS
7.2.1 Financial and Operational Records
Contractor shall maintain accurate and complete accounting records containing the
underlying financial and operating data relating to and showing the basis for computation of all
revenues associated with providing C&D and Commercial Recyclable Materials Collection,
Transportation, Processing, Recycling, and Disposal services. The accounting records shall be
prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently
applied.
At a minimum, operational records shall include:
Records shall be maintained by Contractor for City relating to:
A. Customer account information and billing records;
B. Tonnage of material Collected by type (e.g., C&D, Commercial Recyclable Materials)
listed by Processing Site or Disposal Site where such materials were delivered. Where
possible, information is to be separated by Residential and Commercial Customers;
C. Tonnage of C8~D, Recyclable Materials, and Organic Materials Diverted from Disposal by
Contractor and supporting documentation;
D. Diversion level;
Resolution No. 2006-018 N.C.S. Page 32
E. Weight tickets from Processing Sites documenting the Tonnage of C&D and Commercial
Recyclable Materials Collected within the City and delivered to the Processing Sites by
vehicle, date, and time;
F. End use and markets for recovered materials.
Contractor shall make records available to the City upon request.
7.2.2 CUSTOMER RECORDS
Contractor shall maintain accurate and complete records containing the number and types of
accounts served by the Contractor. The records shall contain, at a minimum, the Customers
name, type of business, phone number, address of Drop Box delivery and Collection location,
date of delivery and Collection, itemized listing of services performed, tonnage Collected, and
the amount charged to provide services. The information shall be provided to the City upon
request.
7.2.3 CERCLA DEFENSE RECORDS
City views its ability to defend itself against Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA), and related litigation as a matter of great
importance. For this reason, the City regards its ability to prove where C&D and Commercial
Recyclable Materials Collected by the Contractor are taken for Processing, Recycling, Transfer
or Disposal, as well as where they are not taken, to be matters of concern. Contractor shall
maintain, retain and preserve records which can establish where C&D and Commercial
Recyclable Materials Collected were Processed and Disposed (and therefore establish where
they were not). This provision shall survive the expiration or earlier termination of this Agreement.
Contractor shall maintain these records for a minimum of 10 years beyond expiration or earlier
termination of the Agreement. Contractor shall provide these records to City (upon request or
at the end of the record retention period) in an organized and indexed manner rather than
destroying or disposing of them.
7.3 GENERAL REPORTING REQUIREMENTS
The format of each report shall be approved by City. Contractor may propose report formats
that are responsive to the objectives. Contractor agrees to mail a copy of all reports and submit
all reports on computer discs, by e-mail, or by modem in a format compatible with City's
software and computers at no additional charge. Contractor will provide a certification
statement, under penalty or perjury, by the responsible Contractor official, that the report being
submitted is true and correct to the best knowledge of such official after their reasonable
inquiry.
Contractor shall submit quarterly reports. on or before following dates each year:
First Quarter April 15 Second Quarter July 15
Third Quarter October 15 Fourth Quarter January 15
If Contractor does not submit the quarterly reports by the dates required in this Article,
Contractor shall pay the City Liquidated Damages as described in Section 1 1.4 and Exhibit B.
Contractor shall submit (via mail and e-mail) all reports to:
Resolution No. 2006-018 N.C.S. Page 33
City Manager
City of Petaluma
P.O. Box 61
Petaluma, CA 94953
and
Director of Public Works
City of Petaluma
P.O. Box 61
Petaluma, CA 94953
7.4 QUARTERLY REPORT
Contractor shall provided information requested in this Section separately for: (i) Tonnage
Collected in Drop Boxes in accordance with this Agreement, and, (ii) for Tonnage Collected, if
any, from Carts or Bins Collected by Contractor through a private arrangement with the
Generator, in which the Generator is compensated for the materials Collected. The quarterly
report shall present the following information...
A. Total Tonnage. Total CB~D and Commercial Recyclable Materials Tonnage Collected by
Contractor within the City during the previous three calendar years, listed separately by
month.
B. Diverted Tonnage. C&D and Commercial Recyclable Materials Tonnage Collected by
Contractor within the City that was Diverted during the previous three calendar years,
listed separately by month.
C. Disposed Tonnage. C8~D and Commercial Recyclable Materials Tonnage Collected by
Contractor within the City that was Disposed during the previous three calendar years,
listed separately by month.
D. Diversion Level. Tonnage Diverted by Contractor divided by the Tonnage Collected by
Contractor multiplied by 100, listed separately by month for the previous three calendar
years.
E. Disposal and Processing Locations. Contractor shall provide a list of the names and
addresses of where C&D and Commercial Recyclable Materials Collected within the City
during the previous quarter was Diverted and Disposed. Such list shall include the
amount of C&D and Commercial Recyclable Materials Tonnage Diverted and/or
Disposed at each location during the previous calendar year, listed separately by month.
F. Revenues. Gross revenues (e.g. cash receipts) earned on all C&D and Commercial
Recyclable Materials Drop Box Collection, Transportation, Processing, Recycling and/or
Disposal services provided to Customers within the City during the previous quarter, listed
separately by month.
G. Insurance. Updated .insurance certificates
Resolution No. 2006-018 N.C.S. Page 34
H. Account Information. In table format, the number of Customers served and number of
Drop Boxes serviced per month listed by Drop Box size, and listed separately for C&D and
Commercial Recyclable Materials.
I. Contractor Officers and Board Members. Provide a list of Contractor's officers and
members of its board of directors (only required with the fourth quarterly report each
year, or in the event of a change in the officers or board members).
The City reserves the right to request reports from Contractor more frequently than once per
year, and upon City's request, Contractor shall provide information required above for the time
period requested by the City.
ARTICLE 8
FRANCHISE FEES AND OTHER FEES
8.1 GENERAL
Contractor shall collect the fees described in this Section from Customers through Contractor's
regular billings and remit collected amounts to City on a monthly basis as described in Section
8.6.
8.2 FRANCHISE FEE
In consideration of the exclusive .rights provided Contractor herein, Contractor shall pay
Franchise Fees to the City each month equal to 13.22% of actual gross revenues (e.g. cash
receipts) remitted by Customers for Collection services provided in City.
8.3 VEHICLE IMPACT FEE
Contractor shall pay a Vehicle Impact Fee to the City each month equal to $0.00 per month.
The Vehicle Impact Fee may be adjusted annually in the same manner as other fees are
adjusted in accordance with Section 8.6.
8.4 CONTRACT ADMINISTRATION FEE
Contractor shall pay a contract administration fee to the City each month equal to $120.00 per
month.
8.5 OTHER FEES
The City may set "other" additional fees, as it deems necessary. The amount, time, and method
of payment and adjustment process will be set in a manner similar to that for other fees
described in this Article.
8.6 ADJUSTMENT TO FEES
City may adjust the fees established in this Article annually at any time during the Term of this
Agreement.
Resolution No. 2006-018 N.C.S. Page 35
8.7 PAYMENT SCHEDULE AND LATE FEES
On or before the 20th day of each month during the Term of this Agreement, Contractor shall
remit to City Franchise Fees and other fees as described in this Article. If such remittance is not
paid to the City on or before the 20th day of any month, Contractor shall pay, in addition to the
amount owed to City, Liquidated Damages in accordance with Section 1 1.4 and Exhibit B of this
Agreement.
Each monthly remittance to City shall be accompanied by a statement itemizing each fee paid;
detailing calculation of all fees; stating actual gross revenues (e.g. cash receipts) for the monthly
period collected from all operations conducted or permitted by this Agreement, and stating the
number and size of Containers serviced by Contractor for the monthly period.
8.8 OVERPAYMENT OF FEES
If Contractor believes it has paid Franchise Fees or other fees as described in this Article, in
excess of the fees due to the City, Contractor may submit a request for refund to the City
Manager or his/her designee. If proof of overpayment is satisfactory to the City Manager or
his/her designee, the City Manager orhis/her designee shall authorize the City to refund the
overpayment to the Contractor. Contractor shall not apply any overpayment as a credit
against any Franchise Fee or other amounts payable to the City, unless specifically authorized to
do so by the City Manager or his/her designee in writing.
ARTICLE 9
CONTRACTOR'S COMPENSATION AND RATES
9.1 CONTRACTOR'S COMPENSATION
Contractor's compensation for performance of all its obligations under this Agreement shall be:
(i) actual Rate revenues paid to Contractor (e.g. cash receipts) by Customers that contract for
Contractor's Collection services less fees dues to the City in accordance with Article 8, and (ii)
revenues generated by the sale of Collected materials Diverted from Disposal.
Contractor's compensation provided for in this Article shall be the full, entire, and complete
compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials
and supplies, Processing and Disposal fees, regulatory fees, City fees, taxes,. insurance, bonds,
overhead, operations, profit and all other things necessary to perform all the services in the
manner required by this Agreement.
If Contractor's costs are more than Contractor's compensation, Contractor shall not be
compensated for the difference in costs and revenues. If Contractor's costs are less than
Contractor's compensation, Contractor shall retain the difference.
9.2 CITY'S RIGHT TO SET MAXIMUM RATES
The City reserves the right to establish maximum Rates for C&D and Commercial Recyclable
Materials Collection services provided under this Agreement in the event that: (a) there are
three or fewer companies holding non-exclusive franchise agreements for Collection of C&D or
Commercial Recyclable Materials, or (b) the Rates charged by the companies holding non-
exclusive franchise agreements for Collection of C&D or Commercial Recyclable Materials are
no longer comparable to those of other jurisdictions. If the City chooses to exercise its right to set
Resolution No. 2006-018 N.C.S. Page 36
maximum Rates, City shall notify Contractor at least 180 calendar days prior to the date that
maximum Rates become effective. The City-established maximum Rates shall be adjusted
annually as determined by the City, at its sole discretion.
9.3 CONTRACTOR'S RATES
Contractor shall set the Rates it charges its Customers for C&D and Commercial Recyclable
Materials Collection services. The Contractor's Rates shall not exceed City-established maximum
Rates, if the City exercised its rights under Section 9.2.
ARTICLE 10
INDEMNITY AND INSURANCE
10.1 INDEMNIFICATION
Contractor shall indemnify, defend with counsel acceptable to the City, and hold harmless (to
the full extent permitted by law) the City and its City Council, officers, officials, employees,
volunteers, and agents from and against any and all claims, liability, loss, injuries, damage,
expense, and costs (including without limitation costs and fees of litigation) (collectively,
"Damages") of every nature arising out of or in connection with Contractor's performance
under this agreement, or its failure to comply with any of its obligations contained in the
agreement, except such loss or damage which was caused by the sole negligence or willful
misconduct of the City.
Contractor's duty to defend and indemnify herein -shall include Damages arising from or
attributable to any operations, repairs, clean-up or detoxification, or other plan (regardless of
whether undertaken due to governmental action) concerning any Hazardous Substance
Collected in the City. Contractor shall be required to indemnify the City for the costs for any
claims arising from the Disposal of C&D and/or Commercial Recyclable Materials, including, but
not limited to, claims arising under the Comprehensive Environmental Response, Compensation
and Liability Act (CERCLA). The foregoing is intended to operate to defend and indemnify and
hold harmless indemnities to the full extent permitted for liability pursuant to Section 107(e) of
CERCLA, 42 U.S.C. Section 9607(e) and California Health and Safety Code Section 25364.
In addition, Contractor's duty to defend and indemnify herein includes all fines and/or penalties
imposed by the California Integrated Waste Management Board, subject to the restrictions set
forth in Public Resources Code Section 40059.1, if the requirements of the Act are not met by the
Contractor with respect to the waste stream Collected under this Agreement, and such failure is
due to Contractor delays in providing information that prevents Contractor, Regional Agency, or
City from submitting reports required by the Act in a timely manner.
This provision will survive the expiration or earlier termination of this Agreement and shall. not be
construed as a waiver of rights by City to contribution or indemnity from third parties.
10.2 INSURANCE
10.2.1 Minimum Scope Of Insurance
Coverage shall be at least as broad as:
Resolution No. 2006-018 N.C.S. Page 37
A. Insurance Services Office form number GL 0002 covering Comprehensive General
Liability and Insurance Services Office form number GL 0404 covering Broad Form
Comprehensive General Liability; or Insurance Services Office Commercial General
Liability coverage ("occurrence" form CG 0001).
B. Insurance Services Office form number CA 0001 covering Automobile Liability, code 1
"any auto," and endorsement CA 0025.
C. Workers' Compensation insurance as required by the Labor Code of the State of
California and Employers Liability insurance.
10.2.2 MINIMUM LIMITS OF INSURANCE
Contractor shall maintain limits no less than:
A. Comprehensive General Liability: $10,000,000 combined single limit per occurrence for
bodily injury, personal injury, and property damage.
B. Automobile Liability: $10,000,000 combined single limit per accident for bodily injury and
property damage.
C. Workers' Compensation and Employers Liability: Workers' compensation limits as required
by the Labor Code of the State of California and Employers Liability limits of $1,000,000
per accident.
D. Employee Blanket Fidelity Bond in the amount of $500,000 per employee, covering
dishonesty, forgery, alteration, theft, disappearance, destruction (inside or outside).
F. Pollution Legal Liability: $10,000,000 for bodily injury, property damage, and remediation
of confiaminated site.
10.2.3 DEDUCTIBLES AND SELF-INSURED RETENTIONS
Any deductibles or self-insured retentions must be declared to and approved by the City. At the
option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured
retentions as respects the City, its officials and employees; or the Contractor shall procure a
bond guaranteeing payment of losses and related investigations, claim administration and
defense expenses.
10.2.4 OTHER INSURANCE PROVISIONS
The policies are to contain, or be endorsed to contain, the following provisions:
A. General Liability and Automobile Liability Coverages
1. The City, its officials, employees and volunteers are to be covered as additional
insureds as respects: liability arising out of activities performed by or on behalf of the
Contractor; products and completed operations of the Contractor; Premises owned,
leased or used by the Contractor; or automobiles owned, leased, hired or borrowed
by the Contractor. The coverage shall contain no special limitations on the scope of
protection afforded to the City, its officials, employees, or volunteers. The
automobile liability is endorsed to contain MCA-90 coverage.
Resolution No. 2006-018 N.C.S. Page 38
2. The Contractor's insurance coverage shall be primary insurance as respects the City,
its officials, employees, and volunteers. Any insurance or self-insurance maintained
by the City, its officials, employees, or volunteers shall be excess of the Contractor's
insurance and shall not contribute with it.
3. Any failure to comply with reporting provisions of the policies .shall not affect
coverage provided to the City, its officials, employees, or volunteers.
4. Coverage shall state that the Contractor's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the
limits of the insurer's liability.
B. Workers' Compensation and Employers Liability Coverage. The insurer shall agree to
waive all rights of subrogation against the City, its officers, employees, and volunteers for
losses arising from work performed by the Contractor for the City.
C. All Coverages. Each insurance policy required by this clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after 30 calendar days' prior written notice by certified mail,
return receipt requested, .has been given to the City.
10.2.5 ACCEPTABILITY OF INSURERS
The insurance policies required by this Section shall be issued by an insurance company or
companies authorized to do business in the State of California and with a rating in the most
recent edition of Best's Insurance Reports of size category VII or larger and a rating classification
of A or better.
10.2.6 VERIFICATION OF COVERAGE
Contractor shall furnish Contractor's insurance agent a copy of these specifications, and direct
the agent to provide the City with certificates of insurance and with original endorsements
affecting coverage required by this clause. Issuance of documentation indicates the
Contractor's insurance complies with these provisions. The certificates and endorsements for
each insurance policy are to be signed by a Person authorized by that insurer to bind coverage
on its behalf. The certificates and endorsements are to be received and approved by the City
before work commences. The City may require complete, certified copies of all required.
insurance policies, at any time.
10.2.7 REQUIRED ENDORSEMENTS
A. The Workers' Compensation policy shall contain an endorsement in substantially the
following form:
"Thirty calendar days' prior written notice shall be given to the City of Petaluma in the
event of cancellation, reduction in coverage, or non-renewal of this policy. Such notice
shall be sent to:
City Clerk
City of Petaluma
P.O. Box 61
Resolution No. 2006-018 N.C.S. Page 39
Petaluma, CA 94953"
B. The Commercial General Liability Business and Automobile Liability policies shall contain
endorsements in substantially the following form:
1. "Thirty calendar days' prior written notice shall be given to the City of Petaluma in
the event of cancellation, reduction in coverage, or non-renewal of this policy.
Such notice shall be sent to:
City Clerk
City of Petaluma
P.O. Box 61
Petaluma, CA 94953"
2. "The City of Petaluma, its officers, employees, and agents are additional insureds on
this policy." The City requires form CG2010 1185.
3. "This policy shall be considered primary insurance as respects any other valid and
collectible insurance maintained by the City of Petaluma, including any self-insured
retention or program of self-insurance, and any other such insurance: shall be
considered excess insurance only."
4. "Inclusion of the City of Petaluma as an insured shall not affect the City's rights as
respects any claim, demand, suit or judgment brought or recovered against the
Contractor. This policy shall protect Contractor and the City in the same manner as
though a separate policy had been issued to each, but this shall not operate to
increase the Contractor's liability as set forth in the policy beyond the amount shown
or to which the Contractor would have been liable if only one party had been
named as an insured."
10.2.8 DELIVERY OF PROOF OF COVERAGE
Simultaneously with the execution of this Agreement, Contractor shall furnish the City certificates
of each policy of insurance required hereunder, in form and substance satisfactory to City. Such
certificates shall show the type and amount of coverage, effective dates and dates of
expiration of policies and shall have all required endorsements. If the City requests, copies of
each policy, together with all endorsements, shall also be promptly delivered to City.
Renewal certificates will be furnished annually to City to demonstrate maintenance of the
required coverages throughout the Term.
10.2.9 OTHER INSURANCE REQUIREMENTS
A. If any services are delegated to a Subcontractor, the Contractor shall require such
Subcontractor to provide statutory workers' compensation insurance and employer's
liability insurance for all of the Subcontractor's employees engaged in the work in
accordance with Sections 10.2.2.C and 10.2.4.B. The liability insurance required by
Section 10.2.2.A shall cover all Subcontractors or the Subcontractor must furnish
evidence of insurance provided by it meeting all of the requirements of this Section 10.2.
B. The Contractor shall comply with all requirements of the insurers issuing policies. The
carrying of insurance shall not relieve Contractor from any obligation under this
Resolution No. 2006-018 N.C.S. Page 40
Agreement. If any claim exceeding the amount of any deductibles or self-insured
reserves is made by any third person against the Contractor or any Subcontractor
because of any occurrence related to this Agreement, the Contractor shall promptly
report the facts in writing to the insurance carrier and to the City.
The Comprehensive General and Automobile Liability insurance required by Sections 10.2.2 and
10.2.4.A shall be written on an "occurrence," rather than a "claims made" basis, if such
coverage is obtainable. If it is not obtainable, Contractor must arrange fora 36-month "tail
coverage" to protect the City from claims filed after the expiration or termination of this
Agreement relating to incidents which occurred prior to such expiration or termination.
ARTICLE 11
DEFAULT AND REMEDIES
11.1 EVENTS OF DEFAULT
Each of the following shall constitute an event of default ("Event of Default") hereunder:
A. Contractor fails to perform its obligations under this Agreement, or future amendment to
this Agreement, including, but not limited to, Contractor's failure to pay Franchise Fees
and other City fees in accordance with Article 8 of this Agreement, and the breach
continues for more than 10 Business Days after written notice from the City for the
correction thereof;
B. Contractor's failure to Divert 60% of the C&D and 90% of the Commercial Recyclable
Materials Collected in the City as required by Section 5.2.C of this Agreement after
Contractor is given an opportunity to remedy the nonperformance as described in
Section 11.5
C. Any representation, warranty, or disclosure made to City by Contractor in connection
with or as an inducement to entering into this Agreement or any future amendment to
this Agreement, which proves to be false or misleading in any material respect as of the
time such representation or disclosure is made, whether or not any such representation,
warranty, or disclosure appears as part of this Agreement;
D. There is a seizure or attachment (other than apre-judgment attachment) of, or levy
affecting possession on, the operating equipment of Contractor, including without limit its
vehicles, maintenance or office facilities, or any part thereof of such proportion as to
substantially impair Contractor's ability to perform under this Agreement and which
cannot be released, bonded, or otherwise :lifted within 48 hours excluding weekends and
Holidays;
E. Contractor files a voluntary petition for debt relief under any applicable bankruptcy,
insolvency, debtor relief, or other similar law now or hereafter in effect, or shall consent to
the appointment of or taking of possession by a receiver, liquidator, assignee (other than
as a part of a transfer of equipment no longer useful to Contractor or necessary for this
Agreement), trustee (other than as security for an obligation under a deed of trust),
custodian, sequestrator (or similar official) of the Contractor for any part of Contractor's
operating assets or any substantial part of Contractor's property, or shall make any
general assignment for the benefit of Contractor's creditors, or shall fail generally to pay
Resolution No. 2006-018 N.C.S. Page 41
Contractor's debts as they become due or shall take any action in furtherance of any of
the foregoing;
F. A court having jurisdiction shall enter a decree or order for relief in respect of the
Contractor, in any involuntary case brought under any bankruptcy, insolvency, debtor
relief, or similar law now or hereafter in effect, or Contractor shall consent to or shall fail to
oppose any such proceeding, or any such court shall enter a decree or order appointing
a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the
Contractor or for any part of the Contractor's operating equipment or assets, or orders
the winding up or liquidation of the affairs of Contractor;
11.2 RIGHT TO TERMINATE UPON DEFAULT
Upon a default by Contractor, the City may terminate this Agreement within 10 calendar days
of the default but no later than 180 calendar days after the default. Such termination shall be
effective 10 calendar days following the City's written notice to Contractor, and such
termination shall be effective without the need for any hearing, suit, or legal action.
11.3 CITY'S REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE
The City's right to terminate the Agreement under Section 1 1.2 is not exclusive, and the City's
termination of the Agreement and/or the imposition of Liquidated Damages shall not constitute
an election of remedies. Instead, these rights shall be in addition to any and all other legal and
equitable rights and remedies which the City may have.
By virtue of the nature of this Agreement, the urgency of timely, continuous and high quality
service, the lead time required to effect alternative service, and the rights granted by City to the
Contractor, the remedy of damages for a breach hereof by Contractor is inadequate and. City
shall be entitled to injunctive relief.
11.4 LIQUIDATED DAMAGES
A. General. The Parties find that as of the time of the execution of this Agreement, it is
impractical, if not impossible, to reasonably ascertain the extent of damages which shall
be incurred by City as a result of a breach by Contractor of its obligations under this
Agreement. The factors relating to the impracticability of ascertaining damages include,
but are not limited to, the fact that: (i) substantial damage results to members of the
public who are denied services or denied quality or reliable service; (ii) such breaches
cause inconvenience, anxiety, frustration, and deprivation of the benefits of the
Agreement to individual members of the general public for whose benefit this
Agreement exists, in subjective ways and in varying degrees of intensity which are
incapable of measurement in precise monetary 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 Agreement for such
breaches, and other remedies are, at best, a means of future correction and not
remedies which make the public whole for past breaches.
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The
Parties further acknowledge that consistent, reliable C&D and Commercial Recyclable
Materials service is of utmost importance to City and that City has considered and relied
on Contractor's representations as to its quality of service commitment in executing this
Resolution No. 2006-01.8 N.C.S. Page 42
Agreement. The Parties recognize that some quantified standards of performance are
necessary and appropriate to ensure consistent and reliable service and performance.
The. Parties further recognize that if Contractor fails to achieve the performance
standards, or fails to submit required documents in a timely manner,. City and its residents
and businesses will suffer damages, and that it is, and will be, impractical and extremely
difficult to ascertain and determine the exact amount of damages which City will suffer.
Therefore, without prejudice to City's right to treat such, non-performance as an event of
default under this Article, the Parties agree that the Liquidated Damages amounts
established in Exhibit B of this Agreement and the following liquidated damage amounts
represent a reasonable estimate of the amount of such damages considering all of the
circumstances existing on the Effective Date of this Agreement, including the relationship
of the sums to the range of harm to City that reasonably could be anticipated and the
anticipation that proof of actual damages would be costly or impractical.
Contractor agrees to pay (as Liquidated Damages and not as a penalty) the amounts
set forth in the Schedule of Liquidated Damages, Exhibit B.
City may determine the occurrence of events giving rise to Liquidated Damages through
the observation of its own employees or representative or .investigation of complaints by
Customers, occupants, and Generators.
Other than Liquidated Damages payable under Section 8.6 of this Agreement,
Liquidated Damages will only be assessed after Contrdctor has been given the
opportunity but failed to rectify the damages as described in this Agreement. Before
assessing Liquidated Damages other than pursuant to Section 8.6 of this Agreement, City
shall give Contractor notice of its intention to do so. The notice will include a brief
description of the incident(s) and/or non-performance. The City may review (and make
copies at its own expense) all information in the possession of Contractor relating to
incident(s) and non-performance. City may, within 10 calendar days after issuing the
notice, request a meeting with Contractor. City may present evidence of non-
performance in writing and through. testimony of its employees and others relevant to the
incident(s) and non-performance. City will provide Contractor with a written explanation
of its determination on each incident(s) and non-performance prior to authorizing the
assessment of Liquidated Damages under this Section 1 1.4. The decision of City shall be
final and City shall not be subject to, or required to exhaust, any further administrative
remedies.
C. Amount. City .may assess Liquidated Damages for each calendar day or event, as
appropriate, that Contractor is determined to be liable in accordance with this
Agreement in the amounts specified in Exhibit B subject to annual adjustment described
below.
The amount of Liquidated Damages specified in Exhibit B shall be adjusted annually on
the anniversary of the Effective Date. The adjustment shall be rounded to the nearest
cent. Liquidated Damage amounts shall be adjusted to reflect changes in the All Urban
Consumers Index (CPI-U), all items, for the San Francisco-Oakland-San .Jose, CA, Base
Period 1982 - 1984 = 100, not seasonally adjusted, compiled and published by the U. S.
Department of Labor, Bureau of Labor Statistics or its successor agency, using the
method following:
Adjusted Liquidated _ Then-current Liquidated Damage Amount x
Damage Amount most current CPI-U/previous 12-month CPI-U
Resolution No. 2006-018 N.C.S. Page 43
For example:
Current Liquidated Damage Amount = $150.00
Most recently published index (May 2004) = 193.5
Index published twelve months prior to most recently published index (May 2003) = 191.0
Adjusted Liquidated Damage Amount = $150.00 x (193.5/191.0) _ $151.96
If the CPI-U is discontinued or revised during the Term by the United States Department of
Labor, such other government index or computation with which it is replaced shall be
used in order to obtain substantially the same result as would be obtained if the CPI had
not been discontinued or revised.
D. Timing of Payment. Contractor shall pay any Liquidated Damages assessed by City
within 10 calendar days of the date the Liquidated Damages are assessed. If they are
not paid within the 10-day period, City may order the termination of the rights or
"franchise" granted by this Agreement.
11.5 DIVERSION NON-PERFORMANCE
If the Contractor's Diversion level is less than 60% for C&D and/or 90% for Commercial
Recyclable Materials Collected in the City for a monthly reporting period, the following steps
shall be followed by the City and Contractor.
A. Warning. The City shall issue a written warning to the Contractor within 30 calendar days
of receipt of the Contractor's quarterly report documenting the Diversion level for the
monthly reporting period. The warning notice shall specify the amount of time (i.e.
"correction period") the City grants the Contractor to improve its performance and meet
the Diversion requirements defined in Section 5.2.C.
B. Opportunity to Improve Performance. The Contractor shall modify its Collection,
Processing, Diversion, and public education and outreach programs (subject to the
City's approval) to improve the Diversion level. At the end of the correction period,
Contractor shall submit a written. report to the City identifying the Diversion level and
providing the supporting documentation. If the City determines that the Diversion level
equals or exceeds Diversion requirements defined in Section 5.2.C, the Contractor shall
continue to perform services in such a manner as to maintain or improve the Diversion
level and the City shall waive its rights to proceed with steps outlined in subsections C
and D of this Section 1 1.5 during the remainder of then-current reporting period.
C. Liquidated Damages. If the Contractor fails to improve the Diversion level so that it is
equal to or greater than Diversion requirements defined in Section 5.2.C by the end of
the correction period granted in subsection A of this Section, the City may levy, and
Contractor shall pay, Liquidated Damages described in Section 1 1.4.
D. Termination of the Agreement. If Contractor's fails to achieve a Diversion level that
equals or exceeds Diversion requirements defined in Section 5.2.C within six months of the
date the City levied Liquidated Damages in accordance with subsection C of the
Section, the failure to meet the Diversion requirements defined in Section 5.2.C shall be
considered an event of default and the City may terminate the Agreement in
accordance with Section 1 1.2.
Resolution No. 2006-01.8 N.C.S. Page 44
11.6 CONDITIONS UPON TERMINATION
In the event this Agreement is terminated under the provisions of this Article, the following
conditions shall be effective:
A. Prohibit C&D and Commercial Recyclable Materials Collection Services. Contractor shall
have no right or authority to engage in C&D Collection services in the City for a period of
five years from the date of termination. After five years, should the Contractor provide
proof that the. event causing the Contractor to default under this Agreement has been
corrected, the Contractor may reapply fora non-exclusive C&D and Commercial
Recyclable Materials Collection Drop Box franchise, and the City, at the sole and
complete discretion of the City, may reinstate the Contractor based on review of its
reapplication.
B. Continuing Liabilities. Contractor shall remain liable to the City for:
1. Fees due in accordance with Article 8 that would otherwise be payable by the
Contractor
2. Liquidated Damages assessed pursuant to Section 1 1.4
3. Reports required by Article 7 for C&D and Commercial Recyclable Materials activities
performed by Contractor up to and including the date of termination
4. Indemnity obligations under Section 10.1
5. Record keeping and retention obligations under Sections 7.1 and 7.2
C. Release Customers and Generators from Obligations. Contractor shall allow C&D and
Commercial Recyclable Materials Generators served by Contractor to arrange for CS~D
and Commercial Recyclable Materials Collection services with a hauler authorized to
perform such services, without penalty or liability for breach of any contract between
Contractor and its Customers or Generators.
D. Remove Drop Boxes. Contractor shall remove all of Contractor's Drop Boxes from all of
Contractor's Collection locations and shall properly Recycle or Dispose of C8~D and
Commercial Recyclable Materials in such Drop Boxes.
ARTICLE 12
OTHER AGREEMENTS OF THE PARTIES
12.1 RELATIONSHIP OF PARTIES
The Parties intend that Contractor shall perform the services required by this Agreement as an
independent Contractor engaged by City and not as an officer nor employee of the City, nor as
a partner of, or joint venturer with, the City. No employee or agent of Contractor shall be, or
shall be deemed to be, an employee or agent of the City. Except as expressly provided herein,
Contractor shall have control over the manner and means of conducting the C8~D and
Commercial Recyclable Materials Collection, Transporting, Processing, Recycling, and Disposal
services performed under this Agreement, and all Persons performing such services. Contractor
shall be solely responsible for the acts and omissions of its officers, employees, Subcontractors,
Resolution No. 2006-018 N.C.S. Page 45
and agents. Neither Contractor nor its officers, employees, Subcontractors and agents shall
obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits
which accrue to City employees by virtue of their employment with the City.
12.2 PERMITS AND LICENSES
Contractor shall obtain and maintain, at Contractor's sole cost and expense, all permits and
licenses applicable to Contractor's operations under this Agreement which are required by any
governmental agency.
12.3 COMPLIANCE WITH LAW
Contractor shall,. at all times, at its sole cost, comply with all Applicable Laws now in force and
as they may be enacted, issued, or amended during the Term.
12.4 GOVERNING LAW
This Agreement shall be governed by, and construed and enforced in accordance with, the
laws of the State of California.
12.5 JURISDICTION
Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded
in the courts of Sonoma County in the State of California, which shall have exclusive jurisdiction
over such lawsuits.
With respect to venue, the Parties agree that this Agreement is made in and will be performed in
Sonoma County.
12.6 BINDING ON SUCCESSORS
The provisions of this Agreement shall inure to the benefit to, and be binding on, the successors
and permitted assigns of the Parties.
12.7 ASSIGNMENT
Neither Party shall assign its rights nor delegate or otherwise transfer its obligations under this
Agreement to any other Person without the prior written consent of the other Party. Any such
assignment made without the consent of the other Party shall be void and the attempted
assignment shall constitute a material breach of this Agreement. Under no circumstances shall
any assignment be considered by City if Contractor is in default at any time during the period of
consideration.
12.8 PARTIES IN INTEREST
Nothing in this Agreement, whether express or implied, is intended to confer any rights on any
Persons other than the Parties to it and their representatives, successors and permitted assigns.
Resolution No. 2006-018 N.C.S. Page 46
12.9 WAIVER
The waiver by either Party of any breach or violation of any provisions of this Agreement shall not
be deemed to be a waiver of any breach or violation of any other provision nor of any
subsequent breach of violation of the same or any other provision. The subsequent acceptance
by either Party of any monies which become due hereunder, shall not be deemed to be a
waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of
this Agreement.
12.10 NOTICE PROCEDURES
All notices, demands, requests, proposals, approvals, consents, and other communications
which this Agreement requires, authorizes or contemplates all, shall be in writing and shall either
be personally delivered to a representative of the Parties at the address below or deposited in
the United States mail, first class postage prepaid, addressed as follows:
A. If to City:
City Manager
City of Petaluma
P.O. Box 61
Petaluma, CA 94953
B. If to Contractor:
The address to which communications may be delivered may be changed from time to time by
a notice given in accordance with this Section.
Notice shall be deemed given on the day it is personally delivered or, if mailed, three calendar
days from the date it is deposited in the mail. .
12.11 REPRESENTATIVES OF THE PARTIES
References in this Agreement to the "City" shall mean the City Council and all actions to be
taken by the City shall be taken by the City Council except as provided below. The City Council
may delegate, in writing, authority to the City Manager, the Director of Public Facilities and
Services, and/or to other City officials and may permit such officials, in turn, to delegate in
writing some or all of such authority to subordinate officers. The Contractor may rely upon
actions taken by such delegates if they are within the scope of the authority properly delegated
to them.
The. Contractor shall, by the Effective Date, designate in writing a responsible officer who shdll
serve as the representative of the Contractor in all matters related to the Agreement and shall
inform. the City in writing of such designation and of any limitations upon his or her authority to
bind the Contractor. The City may rely upon action taken by such designated representative as
actions of the Contractor unless they are outside the scope of the authority delegated to
him/her by the Contractor as communicated to City.
Resolution No. 2006-018 N.C.S. Page 47
12.12 NOTICE OF CITY'S RIGHT TO GRANT EXCLUSIVE FRANCHISE
The Parties agree that in the event the City determines to change the system from a non-
exclusive franchise system to an exclusive franchise system, Contractor shall be entitled to notice
of 180 days prior to the effective date of such exclusive franchise. The Parties acknowledge that
this Agreement fulfills the City's obligation, if any, under Section 49520 through 49524 of the
Public Resources Code to provide five years notice to solid waste enterprises operating within
the City of the City's plans to grant an exclusive franchise for C&D and/or Commercial
Recyclable Materials Collection.
12.13 CRIMINAL ACTIVITY OF CONTRACTOR
12.13.1 CRIMINAL ACTIVITY
For purpose of this Section, Criminal Activity shall mean any of the following events or
circumstances:
A. Convictions. The entry against any Contractor Party or its officers, of a criminal
conviction or a permanent mandatory or prohibitory injunction from a court,
municipality, or regulatory agency of competent jurisdiction, based on acts taken in his
or her official capacity on behalf of Contractor with respect to:
1. Fraud or criminal offense in connection with obtaining, attempting to obtain,
procuring or performing a public or private agreement related to municipal Solid
Waste services of any kind (including Collection, Transportation, transfer, Processing,
Recycling, Composting or Disposal), including this Agreement or any amendment
thereto;
2. Bribery or attempting to bribe a public. officer or employee of a local, State, or
Federal agency;
3. Embezzlement, extortion, racketeering, false claims, false statements, forgery,
falsification or destruction of records, obstruction of justice, knowingly receiving
stolen property, theft, or misprision (failure to disclose) of a felony;
4. Unlawful disposal of Hazardous Substances, the occurrence of which any of
Contractor Party knew or should have known;
5. Violation of antitrust laws, including laws relating to price-fixing, bid-rigging, and sales
and market allocation, and of unfair and anti-competitive trade practices laws;
6. Violation of securities laws; and
7. Felonies.
B. Pleas. Entry of a plea of "guilty," "nolo contendere," or "no contest" by a Contracting
Party based on acts taken in his, her, or its official capacity on behalf of Contractor with
respect to the conduct described in preceding Section 12.13.1.A.
Resolution No. 2006-018 N.C.S. Page 48
12.13.2 NOTICE
Contactor shall notify City in writing within five calendar days of occurrence of any Criminal
Activity by any Contractor Party.
12.13.3 CONTRACTOR'S CURE
Upon occurrence of any Criminal Activity, Contractor shall immediately do or cause to be done
all of the following:
A. Terminate from employment or remove from office any offending individual Contractor
Party, unless otherwise directed or ordered by a court or regulatory agency of
competent jurisdiction or authority, and unless that termination would constitute a
breach of any labor agreement entered into by Contractor, and
B. Eliminate participation by any individual offending individual Contractor Party in any
management, supervision, or decision activity that affects or could affect, directly or
indirectly, the performance of the Contractor under this Agreement.
12.13.4 TRANSFER AND HIRING
Contractor shall not allow or cause to be allowed to hire or transfer any individual from any
Parent Company or subsidiary company or business entity of Contractor who has committed
Criminal Activity as a Contractor representative, field supervisor, officer, or director who is
directly or indirectly responsible for performance of this Agreement without obtaining prior
written consent of City, following full disclosure to City of the facts and circumstances
surrounding such Criminal Activity.
12.13.5 CITY'S REMEDY
In the event of any occurrence of Criminal Activity, the City, in its sole discretion, may terminate
the Agreement within 30 calendar days written notice to Contractor, or may impose other
sanctions (which may include financial sanctions, temporary suspensions, or any other condition
deemed appropriate short of termination) as it will deem proper, in the following events:.
A. Contractor fails to comply with the foregoing obligation of this Section, or
B. The Criminal Activity concerns or relates directly or indirectly to this Agreement.
Contractor shall be given the opportunity to present evidence in mitigation during the 30-
calendar day notice period.
ARTICLE 13
MISCELLANEOUS AGREEMENTS
13.1 ENTIRE AGREEMENT
This Agreement, including the Exhibits, represents the full and entire Agreement between the
Parties with respect to the matters covered herein.
Resolution No. 2006-018 N.C.S. Page 49
13.2 SECTION HEADINGS
The article headings and section headings in this Agreement are for convenience of reference
only and are not intended to be used in the construction of this Agreement nor to alter or affect
any of its provisions.
13.3 REFERENCES TO LAWS
All references in this Agreement to laws shall be understood to include such laws as they may be
subsequently amended or recodified, unless otherwise specifically provided.
13.4 INTERPRETATION
This Agreement shall be interpreted and construed reasonably and neither for nor against either
Party, regardless of the degree to which either Party participated in its drafting.
13.5 AMENDMENT
This Agreement may not be modified or amended in any respect except in writing signed by the
Parties.
13.6 SEVERABILITY
If any non-material provision of this Agreement is for any reason deemed to be invalid and
unenforceable, the invalidity or unenforceability of such provision shall not affect any of the
remaining provisions of this Agreement, which shall be enforced as if such invalid or
unenforceable provision had not been contained herein.
13.7 COUNTERPARTS
This. Agreement may be executed in counterparts, each of which shall be considered an
original.
13.8 EXHIBITS
Each of the Exhibits identified as Exhibit "A" through "C" is attached hereto and incorporated
herein and made a part hereof by this reference.
Resolution No. 2006-018 N.C.S. Page 50
IN WITNESS WHEREOF, the Parties have caused the Agreement to be executed on the day and
year first above written.
CITY OF PETALUMA CONTRACTOR
A Municipal Corporation
Michael A. Bierman, City Manager Name, Title
APPROVED AS TO FORM:
Eric. Danly, City Attorney
Ron Blanquie, Risk Manager
Steven Carmichael, Administrative Services
ATTEST:
Claire Cooper, City Clerk
Resolution No. 2006-018 N.C.S. Page 51
EXHIBIT A
CONTRACTOR'S APPLICATION
(To Be Prepared and Submitted By Applicant)
Resolution No. 2006-018 N.C.S. Page 52
EXHIBIT B
SCHEDULE FOR LIQUIDATED DAMAGES
Contractor may be assessed Liquidated Damages if Contractor fails to fulfill its obligations with
regards to the events listed in this Exhibit in accordance with the terms and conditions of the
Agreement with regards to the time frame for accomplishing each event and nature of the
responsibility associated with the event unless otherwise stated in this Exhibit.
~ , Diversion. Failure to achieve and maintain a minimum of 50% The greater of $5,000
Diversion per month of all C&D Collected within the City and 900 or 10% of the gross
Diversion per month of all Commercial Recyclable Materials Rate revenues
Collected within the City. received for providing
C8~D and Commercial
Recyclable Materials
services in the City, for
the most recent 12-
month period
2, Leaks, Litter or Spills. For each occurrence over five during a $300/ event
calendar year of unreasonable leaks, litter, or spills of CB~D or
Commercial Recyclable Materials near or on public streets and
failure to pick up or clean up such material immediately
3. Unauthorized Collection Hours. For each occurrence over five $300/ event
during a calendar year of Collecting C&D and Commercial
Rec cldble Materials Burin unauthorized hours
4. Excessive Noise. For each occurrence over 10 during a $300/ event
calendar ear of excessive noise
5. Cleaning Collection Vehicles. For each occurrence over five $150/ event
during a calendar year for failure to keep Collection vehicles in a
safe and sanitary condition
6. Labeling of Drop Boxes. For each occurrence of Contractor's $500/ event
failure to correctly label Contractor-owned Drop Boxes (in
accordance with Section 6.4.C .
7. Discourteous Behavior. For each occurrence of discourteous $500/ event
behavior by Collection vehicle personnel, customer service
personnel, or other em to ees of Contractor
8. Injuries to Others. For each incident of personal injury to a Person $5,000/ incident
requiring medical treatment or hospitalization, where the
negligence of the Contractor or its personnel was a contributing
factor to the injury
9. Quarterly Reports. Failure to submit quarterly reports in the $300/ day report is
timeframe specified in this A reement. overdue
10. Report Hazardous Substance. For each failure to notify the $500/ event
appropriate authorities of reportable quantities of Hazardous
Substance
Resolution No. 2006-018 N.C.S. Page 53
1 1. Late Remittance of Fees to City. Failure of Contractor to remit 2% of the amount
fees due to'the City (as described in Article 8) on or before the owing for that month;
20th day of any month plus an additional 2%
owing on any unpaid
balance for each
following 30 calendar
day period the fee
remains unpaid
12. Failure of Other Obligations. Failure to perform any of the $150/ for each
obligations set forth in this Agreement not specifically stated obligation per day
above and not corrected or proceeding in good faith to correct until obligation is
within 24 hours u on 24 hour notification by City performed
Resolution No. 2006-018 N.C.S. Page 54
EXHIBIT C
SECRETARY'S CERTIFICATION
The undersigned, being the Secretary of , a
Company Name
California corporation ("the Company"), do hereby certify that the following resolution was
adopted by the Board of Directors of the Company and that such resolution has not been
amended, modified or rescinded and is in full force and effect as of the date hereof:
RESOLVED, that be, and hereby is, authorized to
Name of Designated Representative
execute by and on behalf of the Company any and all agreements, instruments, documents or
papers, as he/she may deem appropriate or necessary, pertaining to or relating to the Non-
Exclusive Franchise Agreement between the City of Petaluma and Company for Drop Box
Collection and Recycling of Construction and Demolition Debris and Commercial Recyclable
Materials and that any such action taken to date is hereby ratified and approved.
Dated:
Signature
Title
Resolution No. 2006-018 N.C.S. Page 55
EXHIBIT D
STATEMENT OF APPLICANT'S UNDERSTANDING
AND REPRESENTATIONS
The undersigned (who is duly authorized to bind the company submitting this application) has reviewed the
requirements of the non-exclusive franchise agreement for drop box collection and recycling services for
construction and demolition debris and commercial recyclable materials, its exhibits, and reference
documents. In addition, the undersigned attests that this application and any other supplementary information
submitted with this application do not: (i) contain any untrue statement of a material fact, (ii) contain
inaccurate or misleading information, or (iii) omit to state a material fact that is necessary to make the
statements made, in light of the circumstances in which they were made, not misleading.
Print Name Date
Title
Company Name
Resolution No. 2006-018 N.C.S. Page 56