HomeMy WebLinkAboutD-1 Staff Report - Approve Athens 26th Amendment to Franchise AgreementSCHEDULED ITEM
D-1
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: NOVEMBER 1, 2021
SUBJECT: APPROVAL OF AMENDMENT TWENTY-SIX TO THE AMENDED AND RESTATED
FRANCHISE AGREEMENT WITH ARKELIAN ENTERPRISES, INC. (DBA ATHENS
SERVICES) FOR COMPLIANCE WITH SB 1383 REQUIREMENTS AND OTHER
CONTRACTUAL ENHANCEMENTS
BACKGROUND:
The City of Azusa has an exclusive franchise agreement with Arakelian Enterprises, Incorporated, dba
Athens Services, in providing refuse collection and recycling services since October 2000. The agreement
has not been updated since then except for annual rate adjustment and necessary amendments to comply
with any changes in the law and extraordinary cost adjustments allowed in the agreement. The City of
Azusa has been in compliance with state laws addressing solid waste disposal and recycling in California
such as AB 939, AB 341, AB 1594, and AB 1826 through the services provided by Athens Services
combined with the City’s comprehensive recycling programs. However, the passage of SB 1383 (state law
increasing the diversion of organic waste to reduce methane emissions), will require significant changes in
the City’s franchise agreement with Athens Services on how trash is collected and disposed of beginning
January 1, 2022.
At the City Council study session held on July 26, 2021, Athens Services presented a proposed amendment
to their franchise agreement, which included additional services for compliance with the requirements of
SB 1383 and the provision of clean city initiatives in the downtown area. At the City Council Meeting on
August 16, 2021, Athens Services presented their revised proposal to address City Council comments
received at the study session. Following City Council’s direction, Staff and Athens Services have
negotiated an amended franchise agreement for consideration at this meeting.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1) Approve the Twenty-sixth Amendment to the Amended and Restated Franchise Agreement
with Arakelian Enterprises, Inc (dba Athens Services) to collect solid waste, recyclables, and
organic waste in compliance with the requirements of SB 1383, including other contractual
enhancements, in a form acceptable to the City Attorney, and direct staff to initiate the
APPROVED
CITY COUNCIL
11/1/2021
Amendment 26 of Amended and Reinstated Athens Franchise Agreement
November 1, 2021
Page 2
Proposition 218 process for Public Hearing on December 13, 2021 to set refuse and organics
recycling rates effective January 1, 2022 and the next five fiscal years.
ANALYSIS:
Senate Bill 1383 was signed into law in a statewide effort to reduce methane emissions created by organic
waste, dairy, and livestock. In order to achieve this goal, beginning January 1, 2022, the State of California
requires all jurisdictions, including the City of Azusa, to divert organic waste from landfills to recycling
facilities; recover at least 20% of edible food instead of throwing it away; and procure recycled organic
waste products for use within the City.
The City of Azusa and Athens Services, its franchised hauler, have to make necessary operational changes
in trash collection and recycling services to comply with SB 1383. The following is a summary of changes
in the amended franchise agreement:
1) Compliance with SB 1383 Requirements
To comply with state requirements, trash collection services for residential customers will transition
from manual to automated service as described below. Athens will also provide food recovery program
annual support, education and outreach to all affected parties, collection and maintenance of records,
and support for annual procurement target as required by SB 1383.
a) Residential Collection (single family and multi-family with 1-4 units). Athens Services will provide
a 3-barrel automated collection program with the standard level of service that includes (1) 96-
gallon trash, (1) 96-gallon recycle, and (1) 96-gallon organics barrel provided by Athens Services.
Unlimited bulky waste collection during trash day with 24-hour advance notice is included.
b) Commercial and Multi-Family with 5 units or more will be required to subscribe to bin service for
mixed waste collection and barrel service for organics under a hybrid program. MF customers will
also get unlimited bulky waste collection with 24-hour advance notice.
2) Additional Services to Support Clean City Initiatives
To help the City accomplish its goals for a cleaner city, Athens will provide porter services, regular
cleaning, trash collection, and power washing in designated downtown areas; weekly sweeping of
Heritage Court parking areas; maintenance services of 60 bus stops; graffiti removal and other power
washing support as needed. Street sweeping, currently performed in a separate contract, will be
included to the agreement at no additional charge to the City. Athens will also provide a permanent roll
off for ongoing e-waste collection plus additional two (2) electronic waste drop-off events for residents
only and abandoned bulky pickup in public right of way within 24 hours.
3) Changes to Contract Terms, Annual Rate Adjustment, and Billing
The proposed agreement will add 12 years to the current 8-year rolling term to allow Athens Services
to amortize substantial capital costs to comply with the state law over many years and avoid substantial
increase in trash rates. Annual rates will be adjusted using the Consumer Price Index which measures
the average change of costs common to the waste industry instead of a “true-up” process. The rate
Amendment 26 of Amended and Reinstated Athens Franchise Agreement
November 1, 2021
Page 3
adjustment being proposed is CPI + 1% with a floor of 3%. Due to the complexities of SB 1383,
customer service support and billing will also transition from the City to Athens Services.
4) Annual Supplemental Franchise Fees, Flow Control, and Performance Bond
In order to ensure the highest level of service and meet diversion requirements, Athens will have flow
control of waste streams, provided, however, if City develops an Organic Waste Processing Facility
within City limits, City may direct Contractor to deliver Organic Waste to such facility. Also, Athens
will provide the City with an annual supplemental franchise fee of $500,000, escalated at CPI, in
addition to the current 10% franchise fee, and increase the current performance bond from $50,000 to
$1 million.
ADVANTAGES OF THE AMENDED FRANCHISE AGREEMENT:
1) Ensure the City’s compliance with SB 1383 and avoid potential penalties of up to $10,000 per day.
2) Automated collection service with wheeled containers will ease customer movement as well as
improve safety and efficiency in collection. The uniform colored barrels will also improve aesthetics
in the neighborhood during trash collection day.
3) Additional clean city initiative supports a vibrant downtown area and helps the City to become a
better place to live, work, and play.
4) Abandoned bulky waste pickup in public right of way, electronic waste collection, and compost give-
away were added at no additional cost to customers. Unlimited free residential bulky waste pickup
was also retained.
5) An annual supplemental franchise fee (starting at $500,000 per year) and the provision of street
sweeping services at no cost to the City or customers will provide significant financial benefits to the
City’s General Fund.
6) Transitioning of customer service functions and billing from the City to Athens Services will ensure
better operational coordination and streamlined staff training due to the complexities of SB 1383
requirements. Since the City will no longer bill residential customers, the change will also eliminate
customer service and billing charges included in trash residential rates beginning January 1, 2022.
7) The annual rate adjustment will be more stable by using the CPI method and in accordance with
industry standard compared to the “true-up” process that was tied to various factors including
disposal tonnages. The 16.5 % residential rate increase effective July 1, 2021 was significantly
impacted by the high disposal tonnage due to COVID-19.
8) The long-term agreement will allow Athens to make investments in necessary capital expenses for
operations and collection service changes such as labor, new trucks, new bins, and other state
mandated requirements to alleviate higher upfront cost to customers.
Amendment 26 of Amended and Reinstated Athens Franchise Agreement
November 1, 2021
Page 4
FISCAL IMPACT:
The following table shows the fiscal impact to the City with the elimination of street sweeping costs, annual
supplemental franchise fee, and increase in regular franchise fee over a 25-year period:
If approved, effective January 1, 2022, Single Family refuse rates would increase by $3.00 per month, i.e.
from $33.14 to $36.14. Multi-Family (“MF”) residences with 5 units or more units and Commercial rates
would increase depending on the level and frequency of service. For the most common commercial service
consisting of a 3-yard/once a week dumpster, rates would increase from $135.47 to $171.62 or 26.7%.
During the “Grace Period,’ from January 1, 2022 to June 30, 2022, commercial customers and MF with 5
units or more, whose organic waste do not exceed 20% of regularly collected solid waste volume or
collection service level, would receive the default organic collection service at no additional charge.
Effective July 1, 2022, commercial and MF with 5 units or more would receive a declining credit to cover
part of the organics barrel service until Year 3. In Year 4, customers would no longer receive a credit and
would be paying the full organics recycling rate.
Prepared by: Reviewed and Approved:
Liza Sagun Manny Robledo
Environmental Programs Specialist Director of Utilities
Reviewed by: Reviewed and Approved:
Paul Reid Sergio Gonzalez
Environmental Programs Manager City Manager
Attachments:
1) Twenty-sixth Amendment to the Athens Amended and Restated Franchise Agreement
2) Athens Franchise Agreement 10-2-2000
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TWENTY-SIXTH AMENDMENT TO THE
AMENDED AND RESTATED FRANCHISE AGREEMENT
BETWEEN THE CITY OF AZUSA AND ARAKELIAN ENTERPRISES, INC.,
FOR REFUSE COLLECTION, RECYCLING, AND DISPOSAL SERVICES
This Twenty-sixth Amendment to the Amended and Restated Franchise Agreement for
refuse collection, recycling, and disposal services is entered into this ___ day of November 2021
by and between the City of Azusa, a municipal corporation (“City”), and Arakelian Enterprises,
Inc., a California corporation (“Contractor”). City and Contractor may hereinafter be individually
referred to as “Party” or collectively as the “Parties.”
RECITALS
A. WHEREAS, on October 2, 2000, the City Council of the City of Azusa approved the
Amended and Restated Franchise Agreement for Refuse Collection, Recycling, and Disposal
Services between the City and Contractor, which was modified in twenty-five subsequent
amendments addressing changes deemed necessary by the Parties from time to time (“Agreement”);
B.WHEREAS, the Legislature of the State of California, by enactment of California
Public Resources Code § 40000 et seq., declares that it is within the public interest to authorize and
require local agencies to make adequate provision for solid waste handling within their jurisdictions;
C.WHEREAS, the Legislature of the State of California has enacted certain new laws
pertaining or relating to solid waste handling with which the City must comply, including AB 341,
AB 939, AB 1594, AB 1826, and SB 1383, creating the need for the City to improve efforts to
divert solid waste from landfills, including recyclable materials and organic waste;
D. WHEREAS, the foregoing changes in law necessitate certain modified or additional
services in order to bring the City into compliance with applicable law; as a result, the cost of
collecting, disposing of, and diverting solid waste, recyclables, yard waste, and organic waste to
Contractor is anticipated to increase; and the City and Contractor have agreed to implement certain
operational changes pertaining to the provision of services in the City in accordance with this
Amendment;
E.WHEREAS, an integrated and exclusive solid waste collection system, inclusive of
street sweeping services within the City, will allow the City to maximize its diversion efforts to
the extent street sweeping removes and diverts waste from City streets and rights-of-way, and
where economies of scale provide the City with a material benefit to having these services provided
by Contractor, because Contractor is uniquely situated to enhance the City’s diversion and state
law compliance goals; and
F.WHEREAS, the provision of solid waste collection and street sweeping services
requires specialized and professional expertise and experience of an advanced type in order to
comply with applicable state laws relating to the processing and diversion of municipal solid waste,
and Contractor has such experience.
Attachment 1
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NOW, THEREFORE, in consideration of the promises and covenants contained herein,
the above recitals, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto agree to amend the Agreement as follows:
1. Definitions. Section 1 of the Agreement (Definitions) is hereby amended in part
to add, amend, or delete the definitions provided below. To the extent a definition included in this
Amendment No. 26 is also specified in the Agreement, the definition in this Amendment No. 26
shall apply.
“Annual Rate Adjustment” means the annual adjustment of Maximum Service Rates
by the greater of (i) an increase of three percent (3%) or (ii) the percentage increase
in CPI for the prior 12-month period (March of the current year to March of the
prior year) plus one percent (1%) (i.e., CPI +1).
“Annual Supplemental Franchise Fee” means the supplemental franchise fee
amount of five hundred thousand dollars ($500,000) paid by Contractor to City in
accordance with Sections 3(B) and 3(C)(v) beginning on July 1, 2023, and adjusted
annually every July 1 thereafter by the percentage increase in CPI-U for the prior
12-month period (March of the current year to March of the prior year).
“Bag” is hereby deleted.
“Barrel” means a polyethylene wheeled container or cart with a hinged lid and
wheels with a capacity of no less than 30 and no greater than 101 gallons serviced
by an automated or semi‐automated truck.
“Bin” means a metal receptacle that is one-and-a-half (1.5), two (2), three (3), four
(4), five (5), and six (6) cubic yards in capacity that is designed to store Solid Waste
at Multifamily, Commercial and Industrial locations, for mechanical collection by
a truck owned and operated by Contractor.
“Bulky Waste” means Solid Waste that cannot and/or would not typically be
accommodated within a Barrel with a capacity no greater than 96-gallons including
but not limited to: furniture (including chairs, sofas, mattresses, and rugs);
appliances (including refrigerators with and without Freon, ranges, washers, dryers,
water heaters, dishwashers, plumbing fixtures, small household appliances, trees,
shrubs, brush trimmings or other materials that are tied together forming an easily
handled package not exceeding four (4) feet in length or thirty five (35) pounds in
weight, and other similar items, commonly known as “White Goods”). Bulky Items
do not include car bodies, Construction Debris, Electronic Waste, universal waste,
and items weighing more than sixty (60) pounds, exceeding four (4) feet in width
and eight (8) feet in length, or items that cannot reasonably be moved with
equipment of the type which, pursuant to industry standards, would normally be
carried in a truck collecting Bulky Items.
“Bundle” is hereby deleted.
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“City Beautification Services” means those services to be provided by Contractor
specified in Sections 4.1(L)-(O), inclusive of street sweeping services, pressure
washing, porter services, and graffiti removal.
“City Bus Stops” means those bus stops located within the boundaries of the City
and identified in Exhibit B-1.
“Collection” means Contractor’s act of picking up Solid Waste, Recyclable
Materials, and Organic Waste from where such materials are stored by Customers.
“Commercial Refuse” is hereby deleted.
“Contamination” means any of the following: (i) discarded materials placed in any
container intended for Recyclable Materials that are not identified as acceptable
Recyclable Materials for such container; (ii) discarded materials placed in any
container intended for Organic Waste that are not identified as acceptable for Organic
Waste for such container; (iii) discarded materials placed any container intended for
garbage are not identified as acceptable for garbage; and (iv) any other items or
substances that are not garbage, Recyclable Materials, or Organic Waste placed in
any container not designated for such use. Contamination shall be determined by
Contractor’s visual or digital inspection.
“CPI” means the Consumer Price Index for Trash and Garbage Collection
(CUUR0000SEHG02), U.S. City Average (not seasonally adjusted), or an equivalent
index approved by mutual agreement in the event said index is no longer published.
“CPI-U” means Consumer Price Index for all urban consumers in the Los Angeles-
Anaheim-Riverside area, non-housing, or an equivalent index approved by mutual
agreement in the event said index is no longer published.
“Downtown Area” means those sidewalks, parkways, and public spaces adjacent to
the streets at (i) Azusa Ave., between 5th St. and 9th St.; (ii) San Gabriel Ave. (east
side), from 6th St. to 9th St.; (iii) San Gabriel Ave. (west side), from Foothill Blvd.
to 6th St.; and (iv) Foothill Blvd. (north and south side), between San Gabriel Ave.
and Azusa Ave., as specified in Exhibit B-1.
“Edible Food” means food intended for human consumption. For the purposes of this
Agreement, Edible Food is not Solid Waste if it is recovered and not discarded.
Nothing in this Agreement requires or authorizes the recovery of Edible Food that
does not meet the food safety requirements of the California Retail Food Code. If the
definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this
definition, the definition in 14 CCR Section 18982(a)(18) shall apply.
“Electronic Waste” or “E-Waste” means electronic equipment and includes stereos,
televisions, computers and computer monitors, cellular phones, fax machines,
household copiers, computer printers, other items with electric plugs that are banned
from landfilling, and other similar items commonly known as “brown goods.”
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“Food Recovery” means actions to collect and distribute Edible Food for human
consumption which otherwise would be disposed, or as otherwise defined in 14
CCR Section 18982(a)(24).
“Food Recovery Organization” means an entity that primarily engages in the
collection or receipt of Edible Food from commercial edible food generators and
distributes that Edible Food to the public for Food Recovery either directly or
through other entities, including: (i) a food bank as defined in Section 113783 of
the Health and Safety Code; (ii) a nonprofit charitable organization; and (iii) a
nonprofit charitable temporary food facility as defined in Section 113842 of the
Health and Safety Code. If the definition in 14 CCR Section 18982(a)(25) for Food
Recovery Organization differs from this definition, the definition in 14 CCR
Section 18982(a)(25) shall apply.
“Food Recovery Service” means a person or entity that collects and transports
Edible Food from a commercial edible food generator to a Food Recovery
Organization or other entities for Food Recovery; or as otherwise defined in 14
CCR Section 18982(a)(26).
“Food Waste” means food scraps and trimmings and other putrescible waste that
results from food production, preparation, storage, consumption, or handling. For
the avoidance of doubt, Food Waste includes, without limitation, meat, fish, and
dairy wastes; fruit and vegetable wastes; grain waste; and compostable food-
contaminated paper products.
“Garbage” is all putrescible and non-putrescible solid, semi-solid and associated
liquid waste, as defined in California Public Resources Code section 40191, and
generated by and collected from Customers. Garbage does not include Construction
Debris, Green Waste, Organic Waste, Hazardous Refuse, Inert Waste, or
Recyclable Materials.
“Green Waste” means Solid Waste consisting of any vegetative waste generated
from the maintenance or alteration of residential, commercial, or industrial
premises including, but not limited to, grass clippings, leaves, tree trimmings,
prunings, brush, weeds, flowers, herbs, and holiday trees.
“Multifamily Unit” means or “Multifamily Residential Unit” means a residential
dwelling unit that is an attached unit or in a complex with other units like
apartments, condominiums, town homes, and uses either Barrels or Bins to dispose
of Solid Waste.
“Organic Waste” means Solid Waste that is Food Waste, Green Waste,
nonhazardous wood waste, and food-soiled paper waste that is mixed in with
Food Waste.
“Organic Waste Processing Facility” means a commercial facility permitted by
the State of California which accepts and processes, by composting or other
permissible methods, Organic Waste for diversion from landfill disposal.
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“Porter Services” means the cleaning, servicing, routine litter control or clean-up
on parkways and sidewalks, and emptying of solid waste containers located in
public spaces in the Downtown Area and City Bus Stops, provided that Porter
Services for city waste receptables only includes the emptying of materials
deposited in such receptacles.
“Recyclable Materials” means Solid Waste consisting of any material which retains
useful properties and can be reclaimed after the production or consumption process.
“Refuse” means Solid Waste.
“Residential Refuse” is hereby deleted.
“Residential Unit” means residential dwelling unit that uses Barrels to dispose of
Solid Waste.
“RWP Facility” means the processing facility controlled by Recycled Wood Products
located at 1313 E. Phillips Boulevard, Pomona, CA 91766.
“RWP Tonnage Requirement” means the requirement that Contractor deliver to the
RWP Facility the following: (i) for the period January 1, 2022 to October 31, 2022,
2,250 tons of Organic Waste and (ii) for the period November 1, 2022 to October 31,
2023, 3,000 tons of Organic Waste. The RWP Tonnage Requirement expires on
October 31, 2023 and shall only apply upon receipt of evidence satisfactory to
Contractor that the RWP Facility is and remains permitted, licensed, or certified to
accept Organic Waste in accordance with SB 1383. Notwithstanding the foregoing,
the requirement of Contractor to deliver Organic Waste annually to the RWP Facility
shall be reduced on a pro rata basis during any period during which the RWP Facility
is not permitted, licensed, or certified to accept Organic Waste in accordance with
SB 1383, or Contractor does not receive satisfactory evidence regarding the same.
“Rubbish” is hereby deleted.
“Solid Waste” means all putrescible and non-putrescible solid, semisolid, and
liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial
wastes, demolition and construction wastes, abandoned vehicles and parts thereof,
discarded home and industrial appliances, dewatered, treated, or chemically fixed
sewage sludge which is not hazardous waste, manure, vegetable or animal solid and
semisolid wastes, and other discarded solid and semisolid wastes, as set forth in
California Public Resources Code Section 40191(a)(b), and includes Construction
Debris, Food Waste, Green Waste, Organic Waste, and Recyclable Materials. For
the avoidance of doubt, nothing herein shall be construed as requiring Contractor
to collect Hazardous Refuse.
“Tier One Commercial Edible Food Generator” means a Commercial Edible Food
Generator that is one of the following, each as defined in 14 CCR Section 18982: (i)
Supermarket; (ii) Grocery Store with a total facility size equal to or greater than
10,000 square feet; (iii) Food Service Provider; (iv) Food Distributor; or (v)
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Wholesale Food Vendor. If the definition in 14 CCR Section 18982(a)(73) of Tier
One Commercial Edible Food Generator differs from this definition, the definition in
14 CCR Section 18982(a)(73) shall apply.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food
Generator that is one of the following, each as defined in 14 CCR Section 18982: (i)
restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000
square feet; (ii) hotel with an on‐si te food facility and 200 or more rooms; (iii) health
facility with an on‐site food facility and 100 or more beds; (iv) large venue; (v) large
event; (vi) State agency with a cafeteria with 250 or more seats or total cafeteria
facility size equal to or greater than 5,000 square feet; or (vii) local education agency
with an on‐site food facility . If the definition in 14 CCR Section 18982(a)(74) of
Tier Two Commercial Edible Food Generator differs from this definition, the
definition in 14 CCR Section 18982(a)(74) shall apply.
2. Scope of Franchise. Section 2 shall be deleted in its entirety and replaced with the
following:
City hereby grants unto Contractor, and Contractor shall have throughout
the term of this Agreement, the exclusive right to engage in the business of
collecting residential and commercial Solid Waste within the boundaries of City as
the same now exist, and within any territory City hereafter annexes, except to the
extent that collection within such territory annexed would be unlawful or violate
the legal rights of another person. For the avoidance of doubt, the foregoing
exclusive right to engage in the business of collecting residential and commercial
Solid Waste shall include but is not limited to Organic Waste and Construction
Debris.
This Agreement shall not prohibit the City or any residential or commercial
customer from donating Recyclable Materials or Organic Waste to persons or entities
other than Contractor. However, in either instance: (1) the Recyclable Materials or
Organic Waste must be segregated from and not mixed with Solid Waste; and (2) the
donor may not pay the donee any amount for collecting, processing, or transporting
such Recyclable Materials, or as a consulting fee for recycling services. A discount
or reduction in price for collection, disposal and/or recycling services for any form
of unsegregated or segregated Solid Waste is not a donation of Recyclable Materials
and such Solid Waste does not qualify for this exception.
This Agreement shall not prohibit any residential or commercial customer
from self-hauling Solid Waste directly to a landfill or a processing facility;
provided, however, such hauling shall be in accordance with Azusa Municipal Code
Article II, Chapter 58, which does not allow contract or third-party hauling.
3. Term; Annual Supplemental Franchise Fees. Section 3 shall be deleted in its
entirety and replaced with the following:
Section 3.0 Term; Annual Supplemental Franchise Fees.
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A. Term. The term of this Agreement shall be twenty (20) years
commencing January 1, 2022; provided, however, that commencing July 1, 2022,
and on July 1 of each subsequent year (or if falling on a weekend or holiday, the
next business day) thereafter, automatic one-year extensions shall be applied to this
Agreement subject to Wind-Down, as defined in Section 3.0(C), so that the term of
this Agreement shall thereafter remain at a constant twenty (20) years, subject to
the wind-down provisions of Section 3.0(C).
B. Annual Supplemental Franchise Fee. The one-year renewal and
extension provision provided in Section 3.0(A) shall remain in effect, provided that
on June 30, 2023, and continuing on June 30 of each subsequent year (or if falling
on a weekend or holiday, the next business day) thereafter, and except as provided
in Section 3.0(C), Contractor pays City the Annual Supplemental Franchise Fee.
The Annual Supplemental Franchise Fee shall be in addition to any payment to the
City otherwise required of Contractor under this Agreement. The City has reviewed
and analyzed franchise fees in other similarly situated municipalities in Southern
California, and the City has determined the Annual Franchise Fee is comparable to
that of similarly situated municipalities in Southern California, and that it reflects a
reasonable estimate of the value of the franchise being conveyed to Contractor.
C. Wind-Down. Either Party may cancel the one-year renewal and
extension provision provided in Section 3.0(A) in accordance with each of the
following:
(i) Notice of Intent to Wind-Down. No earlier than January 1,
2028, and no later than February 15, 2028, or anytime between January 1 and
February 15 in any year thereafter, either Party may issue a written notice of intent
to cancel the automatic one-year extensions provided in Section 3.0(A) and
commence the wind-down of the 20-year fixed term of the Agreement (“Notice of
Intent to Wind-Down”). The Notice of Intent to Wind-Down may be issued by either
Party without cause.
(ii) Meet and Confer. The terminating party shall host a
minimum of two (2) negotiations sessions with the non-terminating party per year
for five (5) years after the issuance of the Notice of Intent to Wind-Down (“Meet and
Confer Period”). The purpose of the Meet and Confer Period shall be to provide
sessions to discuss in good faith rescinding the Notice of Intent to Wind-Down in
exchange for an amendment(s) to the Agreement. For this purpose, officers or
otherwise authorized representatives of the Parties shall meet and confer in Los
Angeles County during normal business hours at a time and place proposed by the
terminating Party; provided, however, reasonable changes in the meeting time shall
be made to accommodate the non-terminating Party representative’s availability. In
the event that the non-terminating Party’s representative fails to appear at a properly
scheduled meeting, the appearance of the terminating Party’s representative shall
constitute an annual meet and confer negotiating session as required above. The
Parties may, but are not obligated to, meet more frequently than required herein,
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provided that no such conferences shall act to extend or delay the Meet and Confer
Period unless expressly agreed to in writing by the Parties.
(iii) Notice of Effective Wind-Down. Subject to compliance with
the foregoing, no earlier than one (1) day after the second negotiations session of the
last year of the Meet and Confer Period and no later than June 15 of that same year,
if the terminating Party elects to cancel the one-year renewal and extension provision,
the terminating party must deliver written notice to the non-terminating party that it
has concluded efforts to meet and confer in good faith and the one-year renewal and
extension provision is cancelled as of the date of said notice (“Notice of Effective
Wind-Down”). Upon Notice of Effective Wind-Down, the Agreement will remain in
full force and effect for a fixed term of 20 years beginning July 1 of the year the
notice is issued to the non-terminating Party.
(iv) Effectiveness. Notwithstanding the foregoing, the
cancellation of the one-year renewal and extension provision shall not become
effective if the Parties mutually agree to approve and execute an amendment to this
Agreement as provided herein; the terminating party fails to hold the minimum
number of negotiations sessions in any year of the Meet and Confer Period; or the
terminating party fails to issue its Notice of Effective Wind-Down within the time
prescribed herein.
(v) Annual Supplemental Franchise Fee. If City issues a
Notice of Intent to Wind-Down, all Annual Supplemental Franchise Fees that would
otherwise be due shall be deposited by Contractor in an escrow account each year the
Parties meet and confer, as specified in this Section 3.0(C). The Parties shall share
the costs of any escrow account. If City rescinds its Notice of Intent to Wind-Down,
all escrowed Annual Supplemental Franchise Fees as of the date of rescission shall
be paid to City within thirty (30) days of when such notice is rescinded and payment
of subsequent Annual Supplemental Franchisee Fees shall be due in accordance with
Section 3.0(B). If City issues its Notice of Effective Wind-Down, all escrowed
Annual Supplemental Franchise Fees shall be paid to Contractor within thirty (30)
days of when such notice is delivered to Contractor and Contractor shall be relieved
of the obligation to pay the City any Annual Supplemental Franchise Fees that
otherwise would have been due and for the remaining term of the Agreement.
4. Residential and Multifamily Waste Collection Services. Sections 4.1(A), 4.1(B),
and 4.1(D) shall be deleted in their entirety and replaced with the following:
A. Residential Services.
(i) Automated Service. Contractor shall provide automated
collection service of Residential Garbage, Recyclable Materials, and Organic
Waste to each Residential Unit one (1) time per week if receiving Barrel service.
(ii) Default Service. The default service level for Barrel-only
customers shall be three (3) 96-gallon Barrels comprising one Barrel each for
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Residential Garbage, Recyclable Materials, and Green Waste; or at the request of
the customer, Contractor may provide additional Barrels at rates specified in
Exhibit A. Contractor shall provide bin service to single-family residents that
request this service; however, Contractor shall notify the City of the address served
and shall charge the customer a commercial bin rate.
(iii) Cart Placement. Barrels must be placed for collection within
three (3) feet of the curb, swale, paved surface of the public roadway, closest
accessible roadway, or other such location agreed to by Contractor and the customer,
that will provide safe and efficient accessibility to Contractor’s crew and vehicle.
(iv) Bulky Waste. Contractor shall collect Bulky Waste,
including Christmas trees, which are set out at curbside for pick-up at Residential
Units. Such services shall be offered at no charge to customers if Bulky Waste
collection is requested for pick-up on regularly scheduled collection days and
customer provides Contractor at least twenty-four (24) hours’ prior notice.
(v) Residential Bear Resistant Barrels. Contractor shall offer
service agreements to provide “bear resistant” Barrels to Residential Customers.
Such Barrels must have a capacity of 96-gallons and be certified as having passed
official bear-resistance testing. Contractor may require customers requesting bear
resistant Barrels to sign a service agreement of not more than thirty-six (36) months
prior to Barrel delivery. Contractor shall offer a thirty (30) day return and
cancellation policy from the date of Container delivery and shall provide written
notice of the same to the customer concurrent with the delivery of the container.
Upon the expiration of any service agreement, the customer shall become the owner
of the bear resistant barrel(s) delivered by Contractor under such agreement.
B. Multifamily Services.
(i) Multifamily Complexes (Four Units or Fewer). All
multifamily complexes of four (4) units or fewer shall receive services as specified
in Section 4.1(A) (Residential Services) unless Contractor determines Commercial
Services are required in accordance with Section 4.1(D), subject to the reasonable
disapproval of the City Manager.
(ii) Multifamily Complexes (Five Units or More).
Multifamily complexes of five (5) units or more shall receive services as specified
in Section 4.1(D) (Commercial Services).
D. Commercial Services. Contractor shall provide collection service to
all Commercial Units sufficient meet the Customer’s disposal needs. At a
minimum, Contractor shall offer and provide upon request, 1.5, 2.0, 3.0, 4.0, 5.0,
and 6.0 cubic yard bins, and collection service to each Customer, for any number
of Bins selected, one (1) time per week, two (2) times per week, three (3) times per
week, four (4) times per week, five (5) times per week, or six (6) times per week.
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Each bin shall be placed in an accessible, outside location on a hard surface
and conform to all City Municipal Code requirements. Contractor shall pick up all
litter or solid waste that overflows from the bin or is spilled in the process of
emptying the bin. Contractor shall work with any customer by increasing the
service level to avoid waste overflow.
5. City Beautification Services. Sections 4.1(I)-(P) shall be added to the Agreement
to read as follows:
I. Abandoned Bulky Pick-Up. Within twenty-four (24) hours of any
City request, Contractor shall provide special collection of Bulky Waste located in
the public right-of-way. Such services shall be provided at no charge to City.
J. E-Waste. Contractor shall provide City one (1) roll-off container of
forty (40) cubic yards in capacity, at a location selected by City, for the collection
of E-Waste generated within the City. Further, Contractor shall host two (2)
residential E-Waste drop-off events per year on dates, at locations, and at times
selected by City. The services hereunder shall be provided by Contractor at no
charge to City or its residents.
K. Compost Giveaway. Contractor shall host two (2) compost
giveaway events per year on dates, at locations, and at times selected by City. At
each compost giveaway event, Contractor shall make a total of twenty (20) tons of
compost per event available to interested City residents, provide personnel to assist
residents to load compost into their containers, and clean up any location where
compost is provided to the public. All compost activities provided hereunder will
be provided by Contractor at no charge to City or its residents.
L. Street Sweeping. Contractor shall provide street sweeping services in
accordance with the requirements set forth in Exhibit B.
M. Pressure Washing. Contractor shall provide pressure washing
services as follows: (i) once per week, Contractor shall pressure wash sidewalks,
parkways, and public spaces in the Downtown Area; (ii) twice per month, Contractor
shall pressure wash City Bus Stops in the Downtown Area; and (iii) once per month,
Contractor shall pressure wash City Bus Stops not in the Downtown Area.
Contractor shall perform pressure washing services on dates and at times requested
by Contractor, subject to the approval of City, which shall not be unreasonably
denied. Contractor shall be permitted to schedule such services prior to 6:00 a.m. at
highly trafficked commercial spaces in the City. City shall provide water to
Contractor in connection with performance of pressure washing, without any charge
to Contractor. If City fails to provide water, Contractor may invoice City for any
additional water costs.
N. Porter Services. Contractor shall provide Porter Services for (i) a
maximum of twenty (20) solid waste containers in the Downtown Area and (ii)
sixty (60) solid waste containers located at the City Bus Stops. Contractor will at
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no additional cost to City provide full-time personnel dedicated to emptying or
servicing solid waste containers in the Downtown Area six days a week (Monday-
Saturday), not to exceed 60 hours/week. Notwithstanding the foregoing, Contractor
will collect solid waste generated at the locations set forth herein no more than three
times per week on dates and at times requested by Contractor, subject to the
approval of City, which shall not be unreasonably denied. Contractor will not be
required to perform Porter Services on Sundays and holidays. City shall make its
public works yards available to Contractor without charge for the disposing of solid
waste collected from Porter Services into Contractor-provided Bins.
O. Graffiti Removal. At any time, City may request that Contractor
perform graffiti removal services at public rights-of-way designated by the City.
Contractor shall be compensated by City at a rate of $60.00 per hour plus the cost
of materials used by Contractor. For the period beginning July 1, 2022, and
annually thereafter on July 1 of each year this Agreement remains in effect, the
hourly rate for graffiti removal services shall be automatically adjusted by the
percentage increase in CPI.
P. Additional Pressure Washing and Porter Services. At any time, City
may request that Contractor perform additional pressure washing or Porter Services,
including but not limited to Porter Services in the Downtown Area in excess of 60
hours per week, at the rate of $60.00 per hour plus the cost of materials used by
Contractor. For the period beginning July 1, 2022, and annually thereafter on July 1
of each year this Agreement remains in effect, the hourly rate for additional pressure
washing services shall be automatically adjusted by the percentage increase in CPI.
6. Title to Solid Waste, Disposal and Recycling. Section 4.2 shall be deleted in its
entirety and replaced with the following:
Section 4.2 Title to Solid Waste, Disposal and Recycling. All Solid Waste,
inclusive of Recyclable Materials and Organic Waste, collected by Contractor shall
become the property of Contractor immediately upon the collection thereof,
including any and all costs incurred and/or benefits derived from the disposition of
such materials. Contractor agrees to deliver all such waste to facilities designated by
Contractor. Contractor shall submit a list of all such designated facilities no later than
January 1, 2022, and thereafter, shall notify City within thirty (30) days if Contractor
modifies this list of designated facilities. Notwithstanding the foregoing,
(i) Contractor will direct Organic Waste to the RWP Facility in accordance with the
RWP Tonnage Requirement, and (ii) if City develops a facility within City limits that
is permitted and certified to accept and process Organic Waste in compliance with
the diversion requirements SB 1383, the City and Contractor shall meet and confer
to review the handling of Organic Waste generated in the City.
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7. Waste Diversion through MRF Processing or Incineration. Section 4.3 shall be
deleted in its entirety and replaced with the following:
Section 4.3 Waste Diversion through MRF Processing or Incineration.
Contractor shall maintain programs to assist the City in the diversion of fifty percent
(50%) of all Solid Waste generated in the City, as calculated per capita (City’s
pounds per person per day), in accordance with AB 939. All such programs shall
be designed and implemented by Contractor to maximize diversion from the
services or programs specified in this Agreement.
8. Waste Diversion Requirements. Section 4.4 shall be deleted in its entirety and
replaced with the following:
Section 4.4 Waste Diversion Requirements. Contractor shall be deemed in
compliance with the waste diversion requirements set forth in Section 4.3 if
Contractor performs the following:
A. Collect and deliver all Organic Waste generated at Residential Units
to an Organic Waste Processing Facility selected by Contractor for processing and
diversion.
B. Collect and deliver all Recyclable Materials generated at Residential
Units to an MRF or certified recycling facility selected by Contractor, for recycle
and recovery processing of that material.
C. Collect and deliver all Garbage generated at Residential Units to
landfill, but at Contractor’s option, diverted to a MRF or a certified transformation
facility (refuse to energy).
D. Collect and deliver all mixed waste generated at commercial
premises, or otherwise collected in roll-off containers, to an MRF selected by
Contractor for mixed-waste processing and diversion.
E. Collect and deliver all Organic Waste generated at commercial
premises to an Organic Waste Processing Facility selected by Contractor for
processing and diversion.
F. For all Construction Debris collected by Contractor, collect and
deliver all such material to a certified Construction Debris facility selected by
Contractor that meets California Green Building Standards Code (CALGreen)
requirements for minimum diversion for processing and diversion.
G. Collect and deliver all material from roll-off inert containers to a
certified inert facility selected by Contractor for processing and diversion.
H. Where applicable, deliver all source-separated waste to a certified
facility selected by Contractor for processing and diversion.
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I. Furnish all monthly, quarterly, and annual reports required under
Section 4.7(A)(i)-(v).
J. Contractor shall provide services to assist City with its compliance
with SB 1383, as specified in Section 4.8.
9. Containers. Section 4.6(C) shall be deleted in its entirety and replaced with the
following:
C. Containers. Contractor and its employees shall use reasonable and proper
care in the handling refuse containers, and any and all damage caused by the
negligence of Contractor thereto shall be immediately adjusted by Contractor. All
refuse spilled by Contractor on private or public property shall be cleaned up
immediately by him. All containers, after emptying, shall be set down in an upright
fashion within five (5) feet of the place where it was originally placed, but not in
any driveway unless otherwise requested by the customer.
10. Collection Routes. The first paragraph of Section 4.6(F) shall be amended as
follows:
F. Collection Routes. Collection routes shall be established by the Contractor
for: (1) Residential Units disposing Solid Waste, Organic Waste, and Recyclable
Materials using Barrels, including Commercial Units using Barrels; and (2)
Multifamily Residential Units and Commercial Units disposing Solid Waste,
Organic Waste, and Recyclable Materials using Bins or Barrels, as applicable.
11. Contractor’s Equipment (RNG). The following shall be added to the Agreement
as the last sentence of Section 4.6(D):
All collection vehicles, excluding spares, scout vehicles, supervisor vehicles,
container delivery, and other specialty collection vehicles used on a sporadic basis,
used by Contractor under this Agreement shall be powered by Renewable Natural
Gas (RNG). The provision of RNG is intended to assist but not guarantee City in its
compliance with annual procurement requirements under SB 1383. Should
alternative products such as mulch, other or additional biofuels, or different forms of
electricity be needed for City to satisfy such procurement requirements, and City
directs Contractor to provide the same, Section 5.0(C) shall apply.
12. Annual Performance Report; Report Monitoring. The first paragraph of Section
4.7(A) shall be amended, and a new Section 4.7(A)(v) titled “Annual Performance Report” and a
new Section 4.7(A)(vi) titled “RDRS Monitoring” shall be added to the Agreement, to read as
follows:
Section 4.7 Reports and Auditing Rights.
A. Contractor shall submit three (3) reports monthly to City: (i)
disposal report; (ii) service level report for Multifamily Residential service; (iii)
service level report for Commercial Bin service. These reports shall be provided by
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the 20th day following the month end for the period being reported. Further,
Contractor shall submit one (1) MRF diversion report quarterly to the City and
Contractor shall submit one (1) annual performance report to the City. The MRF
diversion report shall be provided by the 45th day after the end of the quarter, and
the annual performance report shall be provided by the 45th day after the end of the
fourth quarter of any given year. The information shall be used by the City to
determine Contractor compliance with Section 4.4. The required content of each
report is specified in Sections 4.7(A)(i)-(v).
* * *
(v) Annual Performance Report. Contractor shall provide an annual
report summarizing information provided in Contractor’s monthly and
quarterly reports and public education and outreach activities undertaken
during the year.
(vi) RDRS Monitoring. Contractor shall monitor disposal tonnages
reports attributed to City in CalRecycle’s Recycling and Disposal Reporting
System (“RDRS”). Contractor will notify City of potential errors reported
in the RDRS that may affect the accuracy of tonnage attributed to City.
Notwithstanding this provision, Contractor does not warrant the
completeness of its review or accuracy of information submitted to the
RDRS.
13. Organic Waste Program. A new Section 4.8 titled “Organic Waste Program” shall
be added to the Agreement as follows:
Section 4.8 Organic Waste Program.
A. General. Contractor will provide staff, labor, and materials to assist
City with its compliance with AB 1826 and SB 1383, as specified herein. Contractor
shall (i) provide account site visits and reviews, and the tracking thereof; (ii) support
public education and outreach efforts in the City; (iii) meet with CalRecycle staff;
(iv) provide Organic Waste tonnage data to both City and CalRecycle; and
(v) provide Organic Waste collection services as provided herein. Unless expressly
specified otherwise in this Agreement, Contractor shall only be required to collect
source-separated Organic Waste. Such Organic Waste shall be directed to an Organic
Waste Processing Facility. Contractor may collect Organic Waste from multiple
cities within one Organic Waste route and, if so, will report Organic Waste tonnage
among the cities by volume.
B. Default Service.
(i) Residential. Contractor will permit customers at Residential
Units and Multifamily Units receiving service in accordance with Section 4.1(A) to
commingle Green Waste, Food Waste, food-soiled paper products, clean wood, and
lumber only in Barrels designated for Green Waste and will process such waste at an
Organic Waste Processing Facility that complies with SB 1383.
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(ii) Commercial. The Organic Waste service for commercial and
industrial customers receiving services in accordance with Sections 4.1(D) and
4.1(E) shall comprise a collection frequency of one (1) time per week and one (1) 64-
gallon Barrel. Based on a waste assessment performed by Contractor, Contractor may
adjust the default level of service to any one of the following container types: (i)
one (1) Barrel of 35 gallons to 64 gallons in size; (ii) one (1) Bin of 1.5 to 2 cubic
yards in size; and (iii) one (1) metal roll-off container with a capacity of 10 or more
cubic yards. Organic Waste collected hereunder shall be directed to an Organic Waste
Processing Facility.
(iii) Exemptions. The Organic Waste program specified herein
shall not apply to customers who may be exempt from AB 1826 or SB 1383, as
determined by the City pursuant to applicable state law. Customers may seek
exemption through Contractor with approval from the City Manager.
(iv) Service Changes. Contractor may reduce or increase any
Organic Waste service level based on inspection, audit, or review at any time,
subject to the City Manager’s right to review and disapproval. Contractor may
assess additional charges for Organic Waste services above the default service level
and/or above the minimum collection frequency for a given customer.
C. Grace Period; Service Discounts. Effective January 1, 2022, and
ending June 30, 2022 (“Grace Period”), each customer receiving services in
accordance with Section 4.8(B)(ii) shall receive the default service specified therein
at no charge, provided the Organic Waste disposed by customer does not exceed:
(i) twenty percent (20%) of the customer’s regularly collected Solid Waste
volumes; or (ii) the customer’s regular Solid Waste collection service level.
Notwithstanding the foregoing, if during the Grace Period, a customer requires
service in excess of the levels provided herein, Contractor may assess charges for
Organic Waste services, as specified in Exhibit A. Upon the expiration of the Grace
Period, Contractor may charge customers for the provision of Organic Waste
services at rates not to exceed the rates provided in Exhibit A, less the annual
discounts provided in the table below:
Service Discounts Post-Grace Period
Year Period Discount
2022-2023 July 1, 2022 - June 30, 2023 75%
2023-2024 July 1, 2023 - June 30, 2024 50%
2024-2025 July 1, 2024 - June 30, 2025 25%
2025- After July 1, 2025 0%
D. Organic Waste Ordinance; Enforcement. City will implement an
Organic Waste ordinance that will require all customers to subscribe to Organic
Waste services. Contractor shall coordinate with City by providing, upon City
request, notice to City of any or all persons refusing Organic Waste services. City
shall be responsible for all code enforcement actions to support compliance with
SB 1383. Contractor shall not be liable for any claims, actions, obligations,
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demands, damages, liabilities, costs, or expenses for any damages or injuries caused
by or arising from (i) the failure of customers to accept Organic Waste services, or
(ii) the suspension or termination of services upon non-payment in whole or in part
by customers, provided Contractor reports such instances of non-compliance or
non-payment to the City for code enforcement.
E. Program Changes. If additional or modified Organic Waste services
are directed by City or required due to a change in law, and Contractor will
otherwise incur additional costs, such as but not limited to changes in service
frequency requirements mandated by applicable law adopted or implemented after
the date of this Amendment, Contractor shall be entitled to a special rate adjustment
as specified in Section 5.0(C).
14. Food Recovery Assistance. A new Section 4.9 titled “Food Recovery Assistance”
shall be added to the Agreement to read as follows:
Section 4.9 Food Recovery Assistance.
A. Food Recovery Initiatives. Commencing July 1, 2022, and annually
thereafter on each July 1 (or if falling on a weekend, the next business day),
Contractor shall provide Fifty Thousand Dollars ($50,000) in financial support to
Food Recovery initiatives in the City. Contractor shall collaborate with the City to
determine the best use of this financial support.
B. Identification of Edible Food Generators. No later than January 1,
2022, Contractor shall identify customers that meet the definition of Tier One and
Tier Two Commercial Edible Food Generators and provide to the City a list of such
customers, which shall include: Customer name; service address; contact
information; Tier One or Tier Two classification; and type of business.
C. Assessment. Commencing January 1, 2022, and annually thereafter,
Contractor shall contact Tier One Commercial Edible Food Generators, Food
Recovery Organizations, and Food Recovery Services and assess compliance with
the requirements of 14 CCR Chapter 12 Article 10. Commencing January 1, 2024,
and at least annually thereafter, Contractor shall expand its annual assessment to
include Tier Two Commercial Edible Food Generators.
D. Education and Outreach. Commencing January 1, 2022, and
annually thereafter, Contractor shall provide Commercial Edible Food Generators
with the following information: (i) information about the Franchisee’s and/or City’s
Edible Food Recovery program; (ii) information about the Commercial Edible
Food Generator requirements under 14 CCR Chapter 12 Article 10; (iii)
information about Food Recovery Organizations and Food Recovery Services
operating within the City, and where a list of those Food Recovery Organizations
and Food Recovery Services can be found; and (iv) information about actions that
Commercial Edible Food Generators can take to prevent the creation of Food
Waste. Contractor may provide the education information required by this section
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by including it with regularly scheduled notices, education materials, billing inserts,
or other information disseminated to customers.
15. Contamination Protocols. A new Section 4.10 titled “Contamination Protocols”
shall be added to the Agreement to read as follows:
Section 4.10 Contamination Protocols. In order to prevent Contamination,
Contractor shall implement the protocols, as specified herein.
A. First Contamination Event. Upon the first discovery of
Contamination within a given calendar year starting January 1, Contractor will collect
the contaminated waste if safe to do so, treat the waste as Garbage for handling and
billing purposes, and affix a “Contamination Violation Notice” to any container with
contaminated waste. Contractor shall also report issuance of any such notices to City.
The Contamination Violation Notice will contain instructions on the proper
procedures for sorting waste, and Contractor must notify the customer by phone, by
U.S. mail, by email, in person, or by tag, of the following: (i) for the third and
subsequent event of Contamination, the customer may be charged a contamination
fee for each contaminated container, and (ii) for the fifth and subsequent event of
contamination, the Customer may be charged a contamination fee for each
contaminated container and Contractor may increase the size of the customer’s waste
container or require an additional container(s). Contractor must also contact the
Customer by phone, by U.S. mail, by email, in person, or by tag, to ensure that the
Customer has the appropriate level of service for proper collection of waste.
B. Second Contamination Event. Upon the second discovery of
Contamination within a given calendar year starting January 1, the protocols
specified in Section 4.10(A) shall apply.
C. Third Contamination Event. Upon the third discovery of
Contamination within a given calendar year starting January 1, Contractor will collect
the waste in the contaminated container(s) if safe to do so, treat the waste as Garbage
for handling and billing purposes, and affix a Contamination Violation Notice to the
contaminated container. Contractor may also elect to charge the then-maximum
contamination fee for the Contamination event as specified in Exhibit A for either
the Program Implementation Phase or the Program Enforcement Period, as
applicable. For any assessed contamination fee, Contractor must provide
digital/visual documentation of Contractor’s discovery of Contamination to customer
and City.
D. Fourth Contamination Event. Upon the fourth discovery of
Contamination within a given calendar year starting January 1, the protocols
specified in Section 4.10(C) shall apply.
E. Five or More Contamination Events. Upon each of the fifth and any
subsequent discoveries of Contamination within a given calendar year starting
January 1, Contractor will collect the waste in the contaminated container(s) if safe
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to do so, treat the waste as Garbage for handling and billing purposes, and charge a
contamination fee for each event. For any assessed contamination fee, Contractor
must provide digital/visual documentation of Contractor’s discovery of
contamination to customer and City. Upon five (5) business days’ notice to City
and customer, Contractor may (i) increase container size, require additional
containers for excessive Contamination, or increase collection frequency, (ii)
impose the then-maximum contamination fees specified in Exhibit A for either the
Program Implementation Phase or the Program Enforcement Period, as applicable,
for a period of six (6) months or until the customer has demonstrated no
contamination for a period of three (3) consecutive months, and/or (iii) provide
notice that Contractor has recommended that City commence any applicable code
enforcement action against customer. City will consult with Contractor and
consider, and pursue as applicable, appropriate legal remedies against offending
Customers in order to secure discontinuance of the Contamination. All City costs
of such action shall be recovered from the offending customers.
F. Disputes. If a customer disputes, in writing, an assessment of a
contamination fee within 30 days of the assessment, Contractor will temporarily halt
any such assessment and Contractor may request a ruling by the City Manager to
resolve the dispute. A request by Contractor to the City Manager to rule on any such
dispute must be filed within ten (10) business days of a customer’s written dispute,
and Contractor must include written documentation and digital/visual evidence of
ongoing overall problems. Upon receipt of such documentation, the City Manager
will rule on the dispute within ten (10) business days, and the City Manager’s
decision on resolving the dispute between Customer and Contractor will be final.
G. Contamination Fees. Effective January 1, 2022, and ending June 30,
2025, Contractor shall charge “Implementation Phase” contamination fees specified
in Exhibit A, as may be adjusted in accordance with the Agreement. Beginning July
1, 2025, Contractor shall charge “Enforcement Period” contamination fees specified
in Exhibit A, as may be adjusted in accordance with the Agreement.
16. Rates. Sections 5.0, 5.01, 5.02, 5.03, and 5.04 shall be deleted in their entirety and
replaced with the following:
Section 5.0 Rates.
A. Maximum Service Rates. Rates for all services provided to
Customers covered by this Agreement shall be specified in Exhibit “A” attached
hereto.
B. Annual Rate Adjustment. For the contract year beginning July 1,
2022, and annually thereafter on July 1 through and including July 1, 2026, the
Maximum Service Rates provided in Exhibit A shall be automatically adjusted
annually by the Annual Rate Adjustment, provided, however, the Maximum
Service Rates shall not be increased by more than ten percent (10%) in any fiscal
year. After July 1, 2026, and each five years thereafter, the City Council shall
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agendize a vote for adoption of an extension to the Annual Rate Adjustment in
accordance with applicable law, including without limitation Government Code
section 53756, and article XIII D, section 6(a) of the California constitution, to the
extent applicable. By way of illustration, rates shall be adjusted as follows:
Year CPI
Year 2 (March) 276.589
Year 1 (March) 271.311
Difference + 5.2780 Year 2 CPI – Year 1 CPI
Percentage Change + 2.95% (Difference ÷ Year 1 CPI) x 100% + 1%
C. Special Rate Adjustments. Contractor may apply to the City Council
for consideration of a special, interim rate review should an event or circumstance
arise which results in an increase in the cost of operations by Contractor. A final
determination concerning an application for special, interim rate review shall be
considered by the City Council within sixty (60) days of Contractor’s request, unless
extended by mutual agreement between the Parties, and shall not be unreasonably
denied upon Contractor’s demonstration that (i) an event or circumstance occurred
or will occur which is not reasonably foreseeable, and is not a usual business risk of
Contractor; (ii) an event or circumstance occurred or will occur which is beyond the
control of Contractor; (iii) it is necessary for Contractor to make a substantial change
in its operation, or substantial capital investment, in order to perform its obligations
under this Agreement or to meet the requirements of applicable law or regulation; or
(iv) changes to Contractor’s operations within the City are required due to a change
in law. Nothing in this Agreement shall be construed as obligating Contractor to
provide additional or modified services prior to City and Contractor having first
agreed in writing to any such change.
D. Procedures in Event of Invalidation of Rate Adjustment. In the event
that City is prohibited by applicable law (excluding the Azusa Municipal Code unless
such applicable law is required by State law to be adopted by City into the Azusa
Municipal Code) to (i) approve or implement an annual adjustment or special, interim
rate adjustment, or (ii) in the event of a vote by the City Council electing not to extend
the Annual Rate Adjustment any time after July 1, 2025, no later than July 1 of the
year said adjustment would otherwise take effect, City must provide written notice
to Contractor identifying such prohibition (“Denial Notice”). To the extent a rate
adjustment is prohibited by applicable law, the Denial Notice shall include a written
justification explaining why City is prohibited by applicable law to approve or
implement such rate adjustment. Within thirty (30) days of Contractor’s receipt of a
Denial Notice, or as extended by mutual agreement, City and Contractor shall agree
to corresponding reductions in programs, services, or fees and payments otherwise
due to City to compensate Contractor for any lost monies that would have been
recovered through a rate adjustment but for a prohibition of the same. If City and
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Contractor do not reach an agreement within the time prescribed herein, at
Contractor’s request, City will immediately offset all such lost monies from the
amounts otherwise due to City for franchise fees. Such monies may be refunded to
the City upon mutual agreement between the Parties. Contractor shall reserve the
right to terminate the Agreement without cause or penalty.
17. Billing. Section 5.05 shall be deleted in its entirety and replaced with the following:
A. Billing. Contractor is responsible for the billing and collection of
payments for services provided under this Agreement. Contractor may charge
customers the Maximum Service Rates in Exhibit A as such rates may be adjusted
under this Agreement. Contractor shall have the right to bill and collect for its
services monthly or quarterly, at its election, and in advance of the rendition of
services hereunder, but shall refund any unused portion of the amount collected in
the event of termination of services.
B. Partial Month Service. If, during a month, a customer begins service,
Contractor’s billing will be pro-rated based on the weekly service rate (i.e. the
service rate established in Exhibit A divided by four (4) times the number of actual
weeks in the month that service was provided).
C. Production of Invoices. The Contractor shall mail or electronically
transmit invoices a minimum of (4) times per year. Invoices shall not be subject to
late notification or charges until 30 days following the closing day of the service
period. City shall have the right to revise the invoice format, provided that
reasonable notice is given. Where it has been determined that a customer has
overpaid for service for any reason, Contractor must provide the customer a credit
against future invoices or a refund (where the account is closing or as selected by
the customer, and where the refund amount exceeds the lesser of the regular
invoicing amount or $200) within thirty (30) days of such determination.
D. Delinquent Service Accounts. Contractor must report to the City,
monthly, all customers account that are over ninety (90) days past due. Contractor
may assess penalties for late payments and collection of delinquent accounts. If an
account is delinquent, upon Contractor’s request, City will allow a delinquent bill
to be billed on the property tax rolls pursuant to City’s municipal code. The
Contractor may discontinue service to any customer where payment for services
rendered is delinquent for 60 days or more. For this purpose, delivery of the billing
shall include the date such billing is deposited by Contractor into the U.S. Mail or
delivered electronically. The Contractor shall notify the customer and the City in
writing of its intent to discontinue service not less than 10 business days before
such discontinuation shall occur.
A. Stop Service. Contractor shall have the right to stop service on for
non-payment in order to collect past due charges. Contractor may charge fees
relating to stopped and resumed service and shall resume service in accordance with
the fees and rates specified in Exhibit A.
-21-
B. Payment to City. As consideration for this Franchise Agreement and
the rights granted herein, Contractor shall pay to City (i) Franchise Fee in
accordance with Section 7, (ii) any Annual Supplemental Franchise Fee, if due to
City, (iii) financial support for Food Recovery initiatives in accordance with
Section 4.9(A), and (iv) an Integrated Waste Management Fee (“AB 939 Fee”) for
services provided under this Agreement. The Franchise Fee and AB 939 Fee shall
be calculated and paid to City on a monthly basis within fifteen (15) days after the
end of the month in which monies were collected. The Annual Supplemental
Franchise Fee shall be paid to City in accordance with Sections 3(B) and 3(C)(v).
C. Notice of Rate Adjustments to Property Owners. Prior to any rate
adjustment being implemented under this Agreement, Contractor shall provide
notice by mail to all property owners subject to the increased Maximum Service
Rates at least one billing period, but no less than thirty (30) days, in advance of
the effective date of such increase, unless applicable law requiring such notice
(including Government Code section 53756) is amended or found by a court of
law with jurisdiction over the City to no longer be applicable
18. Performance Bond. The first sentence of Section 8 shall be amended as follows to
increase the performance bond requirement from Fifty Thousand Dollars ($50,000.00) to One
Hundred Fifty Thousand Dollars ($150,000):
Contractor shall bond in the amount of One Hundred Fifty Thousand Dollars
($150,000) approved as to form by the City Attorney, guaranteeing Contractor’s
faithful performance of the terms hereof by it to be performed, and Contractor shall
maintain such bond in effect throughout the duration of this Agreement.
19. Dispute Resolution. A new Section 18(T) titled “Disputes” shall be added to the
Agreement to read as follows:
T. Disputes. If any dispute, controversy, or claim arises out of or
relates to the enforcement, or interpretation of this Agreement or any part thereof,
the parties agree to submit the dispute, controversy, or claim to binding arbitration.
Such arbitration shall be conducted by a single arbitrator. If, within twenty (20)
days from the receipt of a request to arbitrate (or such longer period mutually agreed
to by the parties), the parties are unable to agree on an arbitrator, then a single
arbitrator shall be appointed pursuant to the Commercial Arbitration Rules of the
American Arbitration Association, which shall govern any arbitration requested
under this provision. Each party shall bear its own costs and expenses of any
arbitration. Each party shall pay one-half of the costs of the arbitrator.
20. Meet and Confer. A new Section 18(U) titled “Meet and Confer” shall be added
to the Agreement to read as follows:
U. Meet and Confer. After July 1, 2031, either Party may request in
writing one (1) in-person “meet-and-confer” session at a time and date agreeable to
the Parties to discuss the then-existing status of performance, rates, and service
-22-
offerings under the Agreement. Nothing herein precludes the Parties from agreeing
to additional meet-and-confer sessions by mutual agreement before or after July 1,
2031. Any meeting held in accordance with this provision shall not be considered a
negotiations session for the purposes of Section 3.0(C).
21. Service Rates. Exhibit A (Maximum Service Rates) to the Agreement is hereby
amended and replaced in its entirety with a newly revised Exhibit A attached to this Amendment,
which shall apply for the period beginning January 1, 2022. Exhibit B to the Agreement shall be
deleted in its entirety.
22. New Program Implementation. Unless expressly specified otherwise, this
Amendment shall be effective on January 1, 2022 subject to approval of Exhibit A in accordance
with applicable law.
23. Due Execution. The person(s) executing this Amendment on behalf of a Party
hereto warrant(s) that (i) such Party is duly organized and existing; (ii) such person(s) are duly
authorized to execute and deliver this Amendment on behalf of said Party; (iii) by so executing
this Amendment, such Party is formally bound to the provisions of this Amendment; and (iv)
entering into this Amendment does not violate any provision of any other agreement to which said
Party is bound.
24. Entire Amendment. This Amendment contains the entire agreement and
understanding between the Parties with respect to the subject matter of this Amendment, and
supersedes any and all prior or contemporaneous oral and written representations, warranties,
agreements, and understandings between the Parties concerning the subject matter of this
Amendment.
25. Full Force and Effect. Other than as set forth in this Amendment, the terms of the
Agreement shall remain unchanged and in full force and effect. In the event of any conflict between
the Agreement and this Amendment, this Amendment shall apply.
26. Counterparts. This Amendment may be executed in counterparts, each of which
shall be considered an original.
[Signatures page follows]
-23-
IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first
set forth below.
CITY OF AZUSA
ARAKELIAN ENTERPRISES, INC.,
a California corporation
ROBERT GONZALES
Mayor
Ron Arakelian III
Executive Officer
Date
Date
ATTEST:
________________________________
JEFFREY LAWRENCE CORNEJO JR.
City Clerk
_____________________________
Date
APPROVED AS TO FORM
________________________________
BEST BEST & KRIEGER
City Attorney
_____________________________
Date
-24-
Exhibit A
FY 2021/22 Maximum Service Rates
Subject to Prop 218 Council approval December 13, 2021
-25-
-26-
-27-
-28-
Exhibit B
Street Sweeping Services
1. Services. Contractor promises and agrees to furnish to City all labor, materials,
tools, equipment, services, and incidental and customary work necessary to fully and adequately
supply the professional street sweeping maintenance services as described herein (“Services”).
Contractor shall sweep all streets specified in the street sweeping map included in Exhibit B-2 Any
streets added by City, either by new construction or by annexation, shall be swept according to
this Exhibit beginning as soon as such streets are officially accepted by City. Any streets eliminated
or closed in the City during the term of the Exhibit, either by City Council resolution or by
annexation, shall be removed from the street sweeping schedule. The Services shall not exceed
257 curb miles per week.
2. Standard of Performance. All streets in the City, including arterial, collector,
industrial, residential and commercial, cul-de-sacs, median curbs, alleys, and public parking lots,
shall be left in a “clean condition.” A “clean condition” is defined as the absence of trash or residue
in the streets and gutters upon the completion of the sweeping operation.
3. Schedule of Performance. Contractor shall perform the Services expeditiously and
in accordance with the schedule set forth herein. In order to facilitate Contractor’s conformance
with the schedule, City shall respond to Contractor’s submittals in a timely manner. The schedule
of Services shall be as follows:
A. Days. Routine street sweeping shall be conducted on dates specified in
Exhibit B-2. Alternative days may be selected by Contractor, subject to the approval of City,
which shall not be unreasonably denied. Contractor shall not perform street sweeping services on
holidays. During the week of a holiday, Contractor shall adjust the weekly schedule so as to return
to the normal weekly schedule the following week.
B. Hours. Standard operating hours for Services are specified in Exhibit B-2. No
changes to the sweeping schedule will be allowed without the prior approval of City.
C. Weather. Services shall not be canceled for inclement weather by
Contractor without approval of the City, which shall not be unreasonably denied. During inclement
weather, a two-hour standby period will be observed before a scheduled sweep will be canceled.
D. Holidays. Routine street sweeping shall not be required on holidays.
“Holidays” as used in this section shall mean New Year’s Day, Martin Luther King Day,
Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day,
Thanksgiving Day, and Christmas Day.
4. Control and Payment of Subordinates. Services shall be performed by Contractor or
under its supervision. Contractor shall not subcontract any portion of the work required by this
Exhibit without prior written approval of City. Contractor will determine the means, methods, and
details of performing the Services. Contractor retains the right to perform similar or different services
for others during the term of this Exhibit. Any additional personnel performing the Services under
-29-
this Exhibit on behalf of Contractor shall not be employees of City and shall at all times be under
Contractor’s exclusive direction and control.
5. City Contributions. City shall provide water to Contractor and make City yards
available for disposing collected solid waste in connection with performance of the Services,
without any charge to Contractor.
6. Prevailing Wages. Prevailing wages are not required to be paid under this Exhibit.
7. Safety. Contractor shall execute and maintain its work so as to avoid injury or
damage to any person or property. In carrying out the Services, Contractor shall at all times be in
compliance with all applicable local, state, and federal laws, rules, and regulations, and shall
exercise all necessary precautions for the safety of employees appropriate to the nature of the work
and the conditions under which the work is to be performed.
8. Additional Work.
A. General. City may request that Contractor perform additional work in excess
of 257 curb miles per week at rate of $29.50 per curb mile. For the period beginning July 1, 2022,
and annually thereafter on July 1 of each year this Exhibit remains in effect, the hourly rate for
Additional Work shall be automatically adjusted by the percentage increase in CPI. Any work
which is determined by City to be necessary for the proper completion of the Services but which
was not included in the Services or which Contractor could not have reasonably anticipated would
be necessary shall be considered “Additional Work.” Contractor shall not perform Additional Work
without written authorization from City.
B. Special Events. Contractor from time to time may be requested to provide
Services immediately following parades, community celebrations, and other similar activities
involving City streets or parking lots (“Special Events”). Compensation for this work will be paid
at the hourly rate specified for Additional Work except for street sweeping services provided in
connection with the City’s annual “Azusa Golden Days Parade,” which Contractor will provide
free of charge to City.
C. Emergencies. Contractor shall respond to City requests for emergency
Services. Any requests shall constitute Additional Work. City shall be charged a minimum of four
(4) hours of work for any such Additional Work requested hereunder. An “emergency” for the
purposes of this provision means an event requiring street sweeping (i) made necessary by any
natural or man-made disaster or similar emergency; or (ii) requested by City for performance when
street sweeping is not normally provided, except for Special Events.
D. Payment. In the event Contractor performs Additional Work, Contractor
shall submit to City a monthly itemized statement which includes the work completed and hours
of performed Additional Work. City shall, within forty-five (45) days of receiving such statement,
review the statement and pay all approved charges thereon.
-30-
9. Termination of Services.
A. Grounds for Termination. City may, by written notice to Contractor,
terminate provision of the Services in whole or in part, with cause or without cause, by giving written
notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7)
days before the effective date of such termination. Upon termination, Contractor shall be
compensated only for those services which have been rendered to City, and Contractor shall be
entitled to no further compensation. Notwithstanding the foregoing, no termination by City
hereunder shall be effective unless and until Contractor first has a reasonable opportunity to cure
any alleged basis for termination. Such cure period shall be for a minimum period of thirty (30)
calendar days. Upon the effective date of any termination of the Services or the Agreement,
Contractor shall immediately stop rendering services under this Exhibit.
B. Effect of Termination. If this Exhibit is terminated as provided herein, City
may require Contractor to provide all finished or unfinished documents, data, and other
information of any kind prepared by Contractor in connection with the performance of Services
under this Exhibit. Contractor shall be required to provide such documents and other information
within fifteen (15) days of the request.
C. Heritage Court. Contractor shall, free of charge to City, provide street
sweeping services at the “Heritage Court” parking lot and adjacent alley as identified in Exhibit B-
1. Notwithstanding the foregoing, Contractor shall cease performing free of charge Services at the
Heritage Court parking lot if City transfers, sells, rents, or leases said area to a third party.
-31-
Exhibit B-1
Downtown Area
-32-
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City Bus Stops
MAIN STREET CROSS STREET DIR/CORNER BENCH BARREL SHELTER
1 AZUSA AVE GLADSTONE ST N/E 2 CONCRETE
BENCHES
1 CONCRETE BARREL NO
2 AZUSA AVE GLADSTONE ST N/W 1 CONCRETE BENCH
& 1 WOOD BENCH
1 CONCRETE BARREL YES
3 AZUSA AVE NEWBURGH ST S/W NO 1 CONCRETE BARREL NO
4 AZUSA AVE NEWBURGH ST S/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
5 AZUSA AVE FIRST ST N/E 1 METAL BENCH 1 CONCRETE BARREL YES
6 AZUSA AVE FIRST ST N/W 1 METAL BENCH 1 CONCRETE BARREL YES
7 AZUSA AVE THIRD ST S/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
8 AZUSA AVE FOURTH ST S/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
9 AZUSA AVE FIFTH ST S/E 1 METAL BENCH 1 BIG BELLY YES
10 AZUSA AVE EMPTY LOT MID BLOCK 1 METAL BENCH 1 BIG BELLY YES
11 AZUSA AVE NINTH ST N/E NO NO NO
12 SAN GABRIEL
AVE
SIERRA MADRE S/W NO NO NO
13 SAN GABRIEL
AVE
FOOTHILL BLVD S/W 1 WOOD BENCH 1 BIG BELLY YES
14 SAN GABRIEL
AVE
FIFTH ST S/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
15 SAN GABRIEL
AVE
THIRD ST S/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
16 FOOTHILL BLVD TODD AVE S/E 1 METAL BENCH 1 CONCRETE BARREL YES
17 FOOTHILL BLVD TODD AVE N/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
18 FOOTHILL BLVD VIRGINIA AVE S/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
19 FOOTHILL BLVD VIRGINIA AVE N/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
20 FOOTHILL BLVD VERNON AVE N/E 1 WOOD BENCH 1 CONCRETE BARREL YES
21 FOOTHILL BLVD ORANGE AVE N/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
22 FOOTHILL BLVD ORANGE AVE S/E 1 METAL BENCH 1 CONCRETE BARREL YES
23 FOOTHILL BLVD SAN GABRIEL
AVE
S/E 1 WOOD BENCH 1 BIG BELLY YES
24 FOOTHILL BLVD SAN GABRIEL
AVE
S/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
25 FOOTHILL BLVD SAN GABRIEL
AVE
N/W 1 WOOD BENCH 1 BIG BELLY YES
26 FOOTHILL BLVD ALAMEDA AVE N/W 1 WOOD BENCH 1 BIG BELLY YES
27 FOOTHILL BLVD DALTON AVE N/E 1 METAL BENCH 1 BIG BELLY YES
28 FOOTHILL BLVD DALTON AVE S/E 1 CONCRETE BENCH 1 BIG BELLY NO
29 FOOTHILL BLVD PASADENA AVE N/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
30 FOOTHILL BLVD PASADENA AVE S/W 1 METAL BENCH 1 CONCRETE BARREL YES
31 FOOTHILL BLVD ALOSTA AVE N/E 1 WOOD BENCH 1 CONCRETE BARREL YES
32 FOOTHILL BLVD ROCKVALE AVE S/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
33 FOOTHILL BLVD CITRUS AVE N/W 1 CONCRETE BENCH 2 CONCRETE BARRELS NO
34 FOOTHILL BLVD ORCHARD LOOP S/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
35 CITRUS AVE FOOTHILL BLVD S/W 1 METAL BENCH 1 CONCRETE BARREL YES
-34-
36 CITRUS AVE ALOSTA AVE N/W 1 METAL BENCH 1 CONCRETE BARREL YES
37 CITRUS AVE ALOSTA AVE N/E 1 METAL BENCH 1 CONCRETE BARREL YES
38 CITRUS AVE ALOSTA AVE S/W 1 METAL BENCH 1 CONCRETE BARREL YES
39 CITRUS AVE BASEBALINE RD N/W 2 CONCRETE
BENCHES
1 CONCRETE BARREL NO
40 CITRUS AVE GLADSTONE ST S/E 1 METAL BENCH 1 CONCRETE BARREL YES
41 CITRUS AVE GLADSTONE ST S/W 1 METAL BENCH 1 CONCRETE BARREL YES
42 CITRUS AVE LAXFORD RD N/W 1 CONCRETE BENCH 1 CONCRETE BARREL NO
43 ARROW HWY AZUSA AVE N/W 1 METAL BENCH 1 METAL BARREL YES
44 AZUSA AVE ARROW HWY N/E 1 METAL BENCH 1 CONCRETE BARREL NO
45 ARROW HWY CERRITOS AVE N/E 1 METAL BENCH 1 METAL BARREL YES
46 ARROW HWY VINCENT AVE N/E 1 CONCRETE BENCH 1 CONCRETE BARREL NO
47 CITRUS AVE ARMSTEAD ST S/W 1 FIBERGLASS
BENCH
NO NO
48 CITRUS AVE ARMSTEAD ST S/E NO NO NO
49 CITRUS AVE MAUNA LOA
AVE
S/W NO NO NO
50 CITRUS AVE MAUNA LOA
AVE
S/W NO NO NO
51 ALOSTA AVE CALERA S/W N/A N/A N/A
52 ALOSTA AVE CALERA N/W 2 CONCRETE
BENCHES
2 CONCRETE BARRELS NO
53 ALOSTA AVE BARRANCA AVE S/W 2 CONCRETE
BENCHES
1 CONCRETE BARREL NO
54 ARROW HWY CITRUS AVE N/E 1 METAL BENCH 1 METAL BARREL YES
55 AZUSA AVE PARAMOUNT ST N/W 1 WOOD BENCH 1 CONCRETE BARREL YES
-35-
Exhibit B-2
Street Sweeping Coverage Map
AJVIENDED Al'iD REsTATED FRAKCHISE AGREEMENT
BETWEEK THE CITY OF AZVSA Ai'.il ARAKELIAN ENTERPRISES, INC.
FOR REFUSE COLLECI'I0:-1, RECYCLING Al'<il DISPOSAL SERVICES
OCTOBER 2, 2000
Attachment 2
TABLE OF CONTENTS
RECITALS ..................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 1. Definitions ............. , ...................... , , ........... , ....... 2
Section 2. Grant of Exclusive Franchise; Exclusions . . . . . . . . ....................... 5
Section 3. Term ............................................................. 5
Section4. ScopeofWork ..................................................... 6
Section 4.1 Collection Services ........................................... 6
A. Residential Services ............................................ 6
B. Multifamily Service ............................................ 7
C. Christma..:; Tree Pickup .......................................... 7
D. Commercial Services ........................................... 7
E. Industrial Services . , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
F. Collection at Crty Facilities and City-Sponsored Events . . . . . . . . . . . . . . . 8
G. Street Sweeping Recycling ....................................... 8
H. Drop off Recycling Serv:ices ............................. , , .• , . . • 8
Section 4.2 Title to Solid Waste, Disposal a.'1d Recycling ..................... , , S
Section 4.3 Waste Diversion through MRF Processing or Incineration .. , ...... , ... 9
Section 4.4 Waste Diversion Guaranty .................................. , ... 9
Section 4.5 Public Information ............................................ 9
Section 4.6 Operations , ................. , ... , ... , ................ , .. , , . 10
A. Collection Schedule and Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
B. Contractor's Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
C. ContainerS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
D. Contractor's: Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 11
E. Compliance with Laws ................ , . , ..................... 11
F. Collection Routes ............................................ 11
G. Customer Service ........................................ , ... 12
Section 4.7. Reports and Auditing Rights .................................. , 12
Section 5.0 Rates, Adjustment Method, and Payments .... , .......................... 15
Section 5.01 Modification to PerT on ~'IRF Rate ............................. 15
A Allowable Rate Adjustments ........ , , . , ................. , ...... 15
B. Rate Breakdown and AdjustmentMethed .......................... !5
Section 5.02 Modification to Residential Barrel and Bin Service Rates ...... , .... 17
A. Allowable Rate Adjusunents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
B. Rate Breakdown and Adjustment Method ........... , . . . . . . . . . . . . . . 17
Section 5.03 Modification to Commercial Bin Rates. .......................... 20
A. Allowable Rate Adjustments .................................... 20
B. Rate Breakdown and Adjustment Method . . . . ........ , ......... 20
Section 5.04 Modification to Roll Off Container Rates ........................ 22
A. Allowable Rate Adjustments .................................... 22
'""""
R Rate Breakdown and Adjustment Melhod .......................... 22
Section 5.05 Billing and Payment to Contractor .............................. 22
A. Billing by City ............................................... 22
B. Billing by Contractor ..................... _ .................... 22
C. Payment to Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
D. Payment to City .......... _ ...... , , .................... , ...... 23
E. Stop Service .. __ ... __ .......... _ .................. _ ........ __ 23
Section 6. Insurance ........................................................ 23
Section 7. Franchise Fee ............................................ , , ....... 24
Section 8. Performance Bond ..... , ............. , ............................. 24
Section 9. Indemnification ............. -....................... , .............. 25
A. Indemnification of City .............................................. 25
B. AB 939 Indemnification .............................................. 25
C. Special Waste Indemnification .. _ .............. _ .............. _ ........ 25
Section 10. Obligations Under AB 939 ......... _ .. _ ... _ ....... _ .......... ____ .. 26
Section 11. Change in Control or Transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Section 12. Transfer Process ............................. , , ................... 26
Section 13. Default ......................................................... 27
Section 14. Termination ..................................................... 27
Section 15. Equipment Rental. ................................................ 27
Section 16. Prior Agreements ............................................ , .... 28
Section 17. Most Favored Nation ............. , ............................... 28
Section 18. General Provisions ....... , ............ _ ................. , .......... 28
A. Independent Contractor .. _ ........................... __ ..... __ ....... 28
B. No Joint Association ..... , ......................................... , 28
C. Nondiscrimination by Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
D. Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... 28
E. Authority to Enter Agreement ................. _ ........... _ ........... 29
F. Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... 29
G. Attorneys' Fees and Costs ...•.•••..•.•.•.•.........•••....•...•....•.. 29
H. Governing Law and Venue ............................................ 29
L Waiver ............................................................ 29
J. Days-···----····--··-------······---·---···---------------·------29
K. Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
L Binding on Assigns ......... , , , ........................ , ........ , . , .. 30
M.lnvalidity .......................................................... 30
N. Captions _ ........ __ .... _ . . . .. . .. ___ ....... _ ........... _ ........ _ . 30
0. Construction . _ .... _ ............. __ ........................ ___ ...... 30
P. Cooperation/Further Acts ............................................. 30
Q. Amendment of Municipal Code ....•..........•.......•................ 30
R. Incorpora1ion of Recitals and Exhibits . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . . . . 30
S. Prohibited Interests ..................... : ............................ 30
11
EXHIBIT A.
EXHIBITB
Rates for ali services
Letter from California Integrated \Vaste Manage-ment Board
lll 1010?./00
AMENDED Al\Tl RESTATED FRANCHISE AGREEMENT BETWEEN THE
CITY OF AZUSA AKD ATHENS SERVICES CONCERNING THE
COLLECTION, RECYCLING Al'-Tl DISPOSAL OF RESIDENTIAL,
COMMERCIAL AND INDUSTRIAL SOIJD WASTE
THIS FRANCHISE AGREEMENT (the "Agreement") is made and entered into as of the
--~day of .... ~-' 2000, by and between the CTI'Y OF AZUSA, a municipal
corporation ("City"), and Arakelian Enterprises, Incorporated, a California corporation, dba
Athens Services ("Contractor").
RECTI'ALS
A. WHEREAS. on August 1, 1995~ the City adopted a residential exclusive franchise
agreement and a commercial exclusive franchise agreement with the Contractor for solid waste
collection and disposal services; and
B. WHEREAS, in both ~orrements adopted by the City and Contractor on August 1,
1995, the Contractor agreed to implement various re:::)rcling programs and indemnify the City
against fines and penalties that may be lmposed pursuant to the California Integrated \Vaste
Management Act of 1989, hereinafter "AB 939"; and
C. WHEREAS, continuation of the indemnity provision for the year 2000 and each
year thereafter was subject [O the City and Contractor mutually agreeing on the implementation
of programs ne-eessru:y to divert fifty (50) percent of Azusa's waste from landfills; and
D. WHEREAS, the Contractor has provided ilie City with a proposal to divert 13,000
tons of solid waste it collects through material recovery facHity, hereinafter "N!RF'. processing,
which, as determined by the City, should result in fifty {50) percent wa..;;te diversion, and has
agreed to continue its obligation to indemnify the City against all AB 939 fines and penalties if
this proposai is approved; and
E. WHERF~S, the Contractor's commitment to reach the City's fifty (50) percent
diversion goal is based on the City's 1995 base year tonnage as approved by the California
Integrated Waste 1vfanagement Board. hereinafte-r "CIWMB", annual tons ilis.posed as reported
through the disposal reporting system, and CIW1vfB's methodology for calculating waste
diversion; and
F, WHEREAS, the City desires to approve a restatement of !he 1995 agreements to
clarify the Contractor's AB 939 responsibilities, continue the Contractor's obligation to
indemnify the City against AB 939 fines and penalties, and continue to have Contractor collect
residential and commercial soHc!: waste on an exclusive basis witi:Iin the City,
10102100
NOW, THEREFORE, in consideration of the promises and of the covenants and
conditions hereinafter contained, City and Contractor mutually agree to adopt this restated
agreement replacing the Agreements adopted on August l. 1995, as foHows:
Section L DefinJJ,j_~. For the purpose of lhis Agreement, the foUowing words
and phrases shall have the meanings ascribed to them as set forth beJow:
A. ''AB 939 .. means the California Integrated Waste Management Act of 1989,
codified in the California Public Resources Code 40000 et seq. as it may be amended from time
to time, and any regulations that may be adopted from time to time by any agency of the State of
Califomla to implemem said Act.
B. "AgreemenC means this contract document which grat1ts the Contractor an
exclusive f.ranchi::;e for refuse coHection in the City of Azusa and sets forth the terms and
conditions under which service-s are provided.
C. "Annual Report" means an AB 939 compliance report that is prepared by the
City pursuant to Title .14, California Code of Regulations, Division 7, Chapter 9, Article 9, or as
these regulations may be amended from time to time, to repo1t waste diversion accomplished by
the City.
D. "Bag'' means a plastic sack designed to store Refuse with sufficient wall
strength to maintain physical integrity when lifted from top.
E. "Barrel" is a receptacle with a capacity of about thirty three (33) gallons
constructed of plastic or metal and havlng handles of adequate strength for lifting and having a
tight fitting lid capable of preventing entrance into the containers by vectors.
F. "Base Year Generation Amount" means the amount of tonnage approved by
the CIWl\1B at its meeting on September 21~22, 1999 for the City of Azusa for calendar year
1995 as attached to this agreement as Exhibit B, or as this Base Year Generation Amount may be
changed and approved by the CI\VMB from time to time.
G, "Bin" is a metal receptacle that is one-and-a-half (1.5), two (2) or three (3)
cubic yards in capacity that is designed to store Refuse at Multifamily, Commercial a.!ld
Industrial locations, for mechanical collection by a truck owned and operated by Contractor.
H. "Bulky waste" means household furniture, appliances and water tanks.
l. ''Bundle" is tree, shrub and brush trimmings, or ot.~er materials that ate tied
together fo;ming an easily handled package not exceeding four (4) feet in length or thiny five
(35) pounds in weight.
2 10/12/00
J. "City" means the City of Azusa.
K. "City Clerk'' means the City Clerk of the City of Azusa.
L "City Manager" means the City Manager of the City of Azusa or his or her
designee.
M. .,City sponsored events" means City organized community events sueh as, but
not limited to, Azusa Golden Days, holiday celebrations at City parks and special meetings and
events approved by the City Council.
N. "CfWJ\1B" means "California Integrated Waste Management Board" as
defined by Public Resources Code 40400-404!4.
0. "Collection" means Contractor's act of piclcing up solid waste, or green waste
from where such materials are stored by Customers.
P. ''Commercial Refuse" means all butky waste~ garbage, rubbish, and solid
waste originating from stores. business offices., commercial warehouses, hospitals, educational,
health care, government offices and non-profit organizations.
Q. "Commercial Units" means all commercial or industrial sites in the City of
Azusa other than residential dwellings upon which business activities are conducted and upon
which solid waste and/or recyclables is/are produced or accumulate(s).
R. "'Construction Debris" means waste building materials resulting from
construction, remodeling, repair or demolition operatlons.
S, "Contractor" mea~s Arakelian Enterprise-.-s, Incorporated, dba, Athens
Services, lO',;ated at 14048 Valley Boulevard, City of Industry, California, 91715.
T. «Customer" means a producer of refuse, whose refuse is coHected by
Contractor for a monlhly service fee.
U. "Disposal Reporting System" me-ans the repof"J_ng system specified by Title
14, California Code of Regulations, Division 7, Chapter 9, Article 9.2, or as these regulations
may be amended from time to time and used to quantify waste diversion t.~rough the Annual
Reporting process.
V. '"Disposal Site"' means depository for Refuse, inciuding but not limited to
sanitary tandfiHs, transfer stations, rnat:;;rial recovery f.aciliiies, and incinerators. that are
permitted to receive Refuse by governmental bodies and agencies having jurisdiction and
requiring such licenses, permits or approvals.
3
W. "Garbage" means the putrescible animal, fish, fowl, fruit,. bakery goods or
vegetable matter resulting from the preparation, storage, processing, handling. decay,
distribution, manufacturing or composition of such substances, except suet, tallow, bones or meat
trimmings that are not rejected by the owner or producer as worthless or useless.
X. "Green Waste" means yard waste and landscape debris such as grass
clippings, leaves, weeds, tree trimmings and other plant materials separated from refuse. Green
waste does not include dirt, palm fronds or iarge quantities of yucca plants or cactus.
Y. ''Hazardous Refuse" means any compound. mixture, substance or article
which, if improperly used, handled, transplanted, processed or stored, may constitute a fl.azard to
health or may cause damage to property and contaminate the water table by reason of being
explosive-, flammable, poisonous, corroslve, radioactive or otherwise harmful to the environment,
including wastes or refuse defined as hazardous under state or federal law.
Z. '"Inerl Waste'• means material iike dirt, rock and asphalt which may be
deposited at a inert landfill operating under a land reclamation ptan.
AA. "":MRF' means the-Contractor's material recovery facility located at its
address in the City of Industry. or other like facilities that process Refuse or Recyclable
~iarerials.
BB. "Multifami[y Unit" or "Multifamily Residential Unit" mearts a residential
dwelling unit that is an attached unit or in a complex wi!.h ot.lJer units like apartments,
condominiums. town homes, and uses either Barrels or Bins to dispose of Refuse.
CC. "Rec)·de" or "Recycling" means the process of coUecting, sorting,
cleansing, treating, and reconstituting materials that would otherwise become solid waste, and
returning them to the economic mainstream in the fonn of raw material for new, reused, or
reconstituted products which meet the quality standards necessary to be used in the marketplace.
DD. ,.Recyclable Materiats" means items or products made from glass, metal,
plastic, paper fiber, or organic substance, such as bottles, cans, newspapers, conugated cardboard
boxes, landscape debris, and produce or other food materia[, which is capable of being recycled
or composted into ne"\v products used in the market place.
EE. "Refuse" includes both garbage and rubbish putrescible and non~putrescible
solid waste or debris, ex.,cept sewage, whether combustible or noncombustible, and includes
garbage and rubbish as defined in thii; section.
FF. "Residential Refuse" solid waste generated by residential dwelling units !hat
use Barrels, Bags, and Bundles to dispose of solid was.te.
4 liftr:voo
GG. "Residential Unit" mea"ls a resldential dwelling unit that uses Barrels, Bags
Bundle, to dispose of Refuse, (may want to specify number of units). ,.J(_
HH. "Rubbish" means non-putrescibfe unwanted or discarded material or debris,
either combustible or noncombustible, including but not limited to paper, cardboard, grass, tree
or shtub trimmings, straw. clothlng, wood or wood products, crockery, glass. rubber, metal,
plastic, construction or demolition material, recyclables, compostables, bulky wastes and other
solid waste.
Jl. "Solid waste" or "waste" means aU putrescible and non-putrescible solid,
semisolid and liquid wastes, including garbage, manur~, refuse, rubbish, construction debris,
green waste, inert waste, recyclabie materials, and bulky waste.
Section 2. Grant ofExdusive Franchise; Exclusions_ City hereby engages
Contractor to provide Solid waste collection, transportation, disposal services as provided herein.
City hereby grants unto Contractor and Contractor shan have throughout the ~erm
of this Agreement the exclusive right to engage in the business of collecting residential and
commercial solid waste within the boundaries of City as the same now e.xist, and within any
tenitory City hereafter annexes, except to the extent that collection within such territory annexed
would be unlawful or violate the legal rights of another person,
This Agreement shaH not prohibit any person from selling Recyclable Materials or
giving Recyclable Materials away to persons or entities other than Contractor. However, in
either instance: (1) the Recyclable Materials must be segregated from and not mixed with Solid
Waste; and (2) the seller/donor may not pay the buyer/donee any consideration for collecting,
processing or transporting such Recyclable Materials, or as a consulting fee for recycling
services. A discmmt or reduction in price for collection, disposal andlor recycling services fur
any fonn of unsegregated or segregated Solid Waste is not a safe or donation of Recyclable
Materials and such Solid Waste does not qualify for this exception.
This Agreement shaH not prohibit any person from hauling his or her own Solid
Waste directly to a landfill.
Section 3. Term. The Initial Term of this Agreement shall be a period of ten (10)
years commencing on October 2, 2000. Effective on October 31, 2002 and on each succeeding
October 31 the Agreement shall be extended for one (1) year("Extension"). Provided, however,
that on or after October 1, 2002, the City may in its sole discretion notify the Contractor of its
cancellation of this Agreement. Upon such notice of termination no one (1) year Extensions
shall apply or be effective"
5
Should either party desire to te-nninate L~e automatic annual Extension, such party
may give the other party written notice of such termination. The party desiring to terminate the
automatic one year Extension of this Agreement shall give the other party written notice of intent
to terminate at least ninety (90) days prior to October 1, and a wriuen termination notice at least
sixty (60) days prior to October 1. Notwithstanding anything herein to the contrary, City shall
not have the discretionary right to terminate this Agreement without cause on or before October
L 2002 is sought pursuant to Sections 4.4, 13 or 14 of this Agreement.
/ y During the thirty (30) day period following notice of intent to terminate, the
parties shall meet and confer at the request of either party; the City shall be represented by the
City Manager. If the notice of termination is given, the automatic one (1) year extensions shall
be tenninated on October L Once the automatic exte-nsions are tenninated, the remaining term
of this Agreement shali be eight (S) years from the date of termination, and the term of lhis
Agreement shall accordingly wind do'NTI from this date. AU other aspects of tlris Agreement
shali remain in full force and effect during the wind down period.
Section 4. Scope of Work. The work to be performed under thls Agreement shall
consist of aU services lnduded in this Agreement, including all the supervision, materials,
equipment, labor and all other items necessary to complete said work in accordance with this
Agreement. Contractor shall coHect, transport, :MRF process, transfer solid waste and dispose of
aU solid waste from all Re.sidential Units, 1-1ultifamily Units, and Commercial and Industrial
Units located in the City at prices no greater th.an and at intervals no less frequent than those
established by the tenus of thts Agreement. Contractor shall not provide any services or impose
any charges for any services that are not specified in this Agreement.
Section 4.1 Collection Serv~r~
A. Resi<!-~ntial Services. Contractor shall provide curbsid6 or alley collection
service of Residential Refuse and separate coUection service for Green \Vaste to each Residential
Unit one ( 1) time per week to customers using Barrels, Bags and Bundles to dispose of refuse.
Solid waste shaH be placed at curbside by residents not before 24 hours prior to collection day
and put away wlt.~in 24 hours after collection day.
Ail reside!ltial contamers shall be provided by residents and be made of rubber,
plastic, metal or any combination thereof; such containers shall be water-tight and shall be
. provided with a handle or handles on the exterior and tight~fitting cover. Barrels shall have a
capacity of not more than thirty-three (33) gallons. Contractor may decline to pick up solid waste
in any container not conforming to the requirements set forth in the preceding sentence.
Contractor shall provide at no charge special coiiection of Bulky \Vaste, including
Christmas trees, which are set out at curbside for pick-up at Residential Gnits.
6
Contractor shall provide bin service to single family residents that request this
service, however, shall notify the City of the address served and shall charge the customer a
cornrnercial bin rate.
B. Multifamily Service. Contractor shall provide curbside or altey collection
service of Multifamily Refuse and separate collection of Green 'Waste to each :;-Jultifamiiy Unit
one (1) time per week to customers using Barrels, Bags and Bundles to dispose of refuse.
Container specifications and set out shall conform to the requirements set forth in Section 4.1A.
'For Multifamily customers that select Bin service, Contractor shaH provide an adequate
number of 1.5, 2.0 or 3.0 cubic yard bins, and provide coHection service on a frequency adequate
to meet the disposal needs of Bin service Multifamily Units.
Contractor shall provide at no charge special collection of Bulky Waste, including
Christimas trees, which are set out at curbside, alleys or near Bin enclosures for pick-up at
Multifamily Units.
Both the City and the Contractor shall encourage all multifamily complexes which are
five (5) units or less. to use barrels for disposal of Solid Waste.
C. Christma..:; Tree Pickug. Contractor shall provide at an residences annual
Christmas tree collection and disposal services, beginning one day after Christmas day and
ending two weeks after Christmas day. Contractor shaH participate in aH efforts with other
agencies, such as Los Angeles f'Aumy and U'1_e Los Angeles County Sanitation Dlstrict, to recy-cle
the Christmas trees to the greatest extent possible. and shall be responsible for providing billing
inserts to the City that are approved by the City.
D. Comrne,;~n:ial Service~, Contractor shall provide collection service for
Commercial Refuse to all Commercial Units sufficient meet the customer's disposal needs. At a
minimum, Contractor shall offer and provide upon request, 1.5, 2,0 and 3.0 cubic yard bins, and
collection service to each customer. for any numbtT of bins selected, one (1) time per week. two
(2) times per week, three (3) times per week, four (4) times per week, five (5) times per week, or
six (6) times per week.
Each bin shall be placed in an accessible, outside location on a hard surface and
conform to all City Municipal Code requirements. Contractor shall pick up all litter or solid
waste that overflows from the bin or is spilled in the process of emptying the bin. Contractor
shall work with any customer by increasing the service level to avoid waste overflow.
E. Industrial Services. Contractor shall provide collection sen.ice for Industrial
Refuse. Contractor shall offer and provide upon request, roll off containers that are ten (10)
cubic yards and forty (40) cubic yards in capacity.
7 1()1()2/00
F. Coll~tion at City FacJUties and City-_Smnsored Eyents. Contractor shalL
free of charge, collect aH solid waste produced at City owned sites and City-sponsored ev:::-nts.
G. Street Sweeping Recyclim;. City will dispose of street sweeping debris
coUected from Azusa into roll off contalner(s). Contractor shall either pay to have street
sweeping debris coHected and recycled. or shall haul the materials to a faclhty that recycles this
material. Contractor shall provide this service at no charge to the City.
H. Drop off Recycling Services. Contractor shall provide service to
compartmentalizt'Ai roll off containers that may be purchased by the City through grant fonds.
The Contractor shaH deliver containers to locations, such as schoots and non-profit organizations,
that are designated by the City. 'When fun, the Contractor shaU deliver the contents of the
containers to its :rv1RF. The proceeds from the sale of the recyclables shall be paid to the party
designated by the City or to the City at market rates. The Contractor shall provide service to a
maximum of nine (9) locations and no more frequently than one (1) pullldelivery to each location
per month.
Section 4.2 Title to Solid \Vaste, Disposal and Recyclinl?.
A. AH solid waste and recyclables coilected by Contractor shall become the
property of Contractor immediately upon the collection thereof, and shaH be delivered to the
locations designated below:
(i) All solid waste coHected by Contractor from Residential, Multifamily
Residential, Commercial and Industrial Units shall be transported by Contractor to the Material
Recovery Facility (MRF) owned by Contractor and located at 14048 Valley Boulevard, City of
Industry, CA 91715, or the Commerce Refuse to Energy Facility, located at 5926 Sheila Street,
Commerce, CA 90040. All residue or solid waste remaining after :MRF processing shall be
delivered to the Puente Hills landfill at 2800 Workman Mill Road, Whittier, CA 90601, or other
Disposal Sites that are the lowest cost after factoring in transportation costs. No more than ten
(10) percent of the total waste generated per year by the City, as calculated using CIWMB
adjustment methods, shall be delivered to the Commerce Refuse to Energy Facitity.
Notwithstanding the above, the City shaH have the right of dlrectin~ the Contractor to use
disposal sites other than Puente Hills IandfiH for solid waste that has been M'RF processed at
costs mutually agreed to by the parties.
(ii) All Green Waste that is collected as a separated material by the Contractor
from all Re.'>idential, Multifamily Residential, Corrunercial and Industrial Units shall be
transported to the Puente Hills landfill at 2800 Workman Mill Road, Whittier. CA 90601, for use
as Altemative Daily Cover (ADC), or other Disposal Sites that a.""e the lowest cost after factoring
in transportation costs. Notwithstanding t.~c above. the City shall have the right to direct the
Contractor to other Disposal Sites at costs mutuaily agreed to by the parties.
8
(iii) All clean loads of Inert Material collected in Roll Off containers shall be
transported to a facility such as the Peck Road Gravel Pit, 128 E. Live Oak Avenue, Monrovia,
CA 90601. or other facilities rhat maximize the diversion of this material as reported through the
Disposal Reporting System_ Notwithstanding the above, the City shall have the right to direct the
Contractor to other facilities at costs mutuaUy agreed to by the parties.
(iv) AH recyclable material contained in the compartmentalized roll off
containers shall be delivered to Contractor's ~iRF, or to other locations designated by rhe City in
writing at costs mutually agreed to by the parties.
Section 4.3 :W.aste Diversion through M.Rl<'J'rocessing or IncineratiQXL
A. It is the intent of this Agreement to reach the fifty (50) percent waste
diversion goal mandated by AB 939 on a annual calendar year basis.
B. Ba.~ed on the BaseY ear Generation Amount, Annual Reports submitted to the
Crw:MB, and the Disposal Reporting System, the City estimates that at least thirteen thousand
(13,000) tons of additional waste diversion will be necessary to re-,ach the fifty (50) percent goaL
C. Based on the above, the Contractor shall divert a minimum of thirteen
thousand (13,000) tons each calendar year through services rendered under this agreement. This
amount shall not include amounts diverted by the Contractor in calendar year 1999 through its
source separated recycling progra.11s or green waste collection program.
Section 4.4 \Vaste Diversion Guaranty. Should Contractor fail to meet the
waste diversion requirements set forth in Section 4.3 for any calendar year beginning in ZOOt the
City shall have the following option:
A. The City will notice the Contractor under Section 13 of iliis Agreement that
the Contractor is in default of its obligations under this Agreement. The Contractor shall have
one year from the notice of default to cure the breach, and shall be entitled to appeal the City
Manager's determination as to whether the breach has been cured pursuant to Section 13. If the
default is not cured after the notice of default, the C!ty Council shall have the right to terminate
this Agreement pursuant to Section 14.
Section 4.5 Public J!tformation. Contractor shall pay for the preparation and
maihng of an infonuation pamphlet which shall be delivered to each resident and business at
least one time per year. The pamphlet shall be in English and Spanish. and shall inciude at a
minimum: (l) description of the services provided through this Agreement; (2) information .on
backyard composting and grasscycling~ (3) information on reuse and second~ hand stores in
Az.usa; (4) information about source reduction tips like how to reduce junk mail and buying in
bulk; (5) description on how to dispose household hazardous waste; (6) description of how to
recycle used motor oil with listing of all certified used oil centers ln Azusa; (7) a listing of all
9
certified CRV buyback centers in Azusa; and (8) promotional material about use of
compartmentalized roll off containers for drop off of recyclables.
Contractor shall pay for the preparation and mailing of a brochure announcing the
approval of this restated agreement and the :MRF services.
Section 4.6 Operations
A. Collection Schedule and Holidays. Contractor shall collect all solid waste
from all premises in City between the hours of 6:00a.m. and 5:00p.m., Monday through
Saturday. Contractor shall collect ail solid waste from all premises within the City at least once
per week, over routes, upon dates, and within specific hours agreed upon in writing between
Contractor and the City Manager (the "Collection Schedule"). The following shall be holidays
for the purposes of this agreement:
New Years Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day
The Contractor may decide to observe any or all of the above mentioned holidays
by suspension of collection service on the holiday, but such decision in no manner relieves
Contractor of obligation to provide collection service at least once per week.
B. Contractor's Employees. Contractor agrees that all of its employees and
agents while engaged in the collection or gathering of solid waste and recyclables within the City
shall be attired in suitable and acceptable uniforms approved by City. All Contractor's employees
shall make collections as reasonably quiet as possible and shall avoid any unnecessary shouting,
whistling or other unnecessary disturbance in the course of providing the services pursuant to this
Agreement.
C. Containers. Contractor and its employees shall use reasonable and proper
care in the handling of all privately-owned refuse containers, and any and all damage caused by
the negligence of Contractor thereto shall be immediately adjusted by Contractor with the owner
of the container. All refuse spilled by Contractor on private or public property shall be cleaned
up immediately by him. All containers, after emptying, shall be set down in an upright fashion
within five (5) feet of the place where it was originally placed, but not in any driveway unless
otherwise requested by the customer, and the cover thereto shall be placed immediately on top of
the container.
10
D. Contractor's Eauipment. Contractor agrees to maintain in good order and
repair each piece of equipment used in the performance of this Agreement. All trucks tL.'ied for
the collection of sorid waste, green waste and recyclable materials shall be equipped with water-
tight steel boxes, and each of said garbage trucks shall be covered with a dose-fitting cover
which shall be maintained in place at all times during tra.>1sit to prevent the spilling or dropping
of solid waste upon the streets.
E. Compliance with Laws. Contractor represents and warrants to City that it has
aU llcenses, permits, qualifications and approvals of whatever nature that are legaHy required for
it to perform the Services under this AgreemenL Contractor further represents and warrants that
it shaH keep in effect an such licenses, permits and other approvals while this Agreement is in
effect. In the performance of all Services to be provided hereunder, Contractor agrees to comply
with all applicable permits, aU applicable federal, sti:lte, county, and municipal laws and
ordinances and all lawful orders, ruies, regulations, and guidelines of any duly constituted
authority, including but not limited to, social security and income tax withholding laws,
immigration laws. unemployment compe-Dsatian laws, environment, safety or health. AH wor'JZ
under this Agreement shall be performed in accordance '>vith all laws, ordinances, and regulations
of the United States, State of California, City and any other governmental authority.
F. Collection Routes. Separate collection routes shall be established by the
Contractor for: (1) Residential Units disposing Solid Waste and Green Waste using Barrels.
Bags, and Bundies, jncluding Commercial Units using Barre-ls; and (2) Multifamily Residential
Units and Commerciai Units disposing Solid Waste and Green Wa.<>te using Bins.
For Residential Units receiving Barrel collection service~ Contractor shall
designate geographic areas within the City limits to be serviced and shall submit a map to the
City depicting the areas of service each week day and shall continue to do so either at th_e request
of the City or when there are major changes in such information. Each designated area shaH be
assigned to specified collection vehicles which Contractor shaJ! identify by number. Route
assigned vehicles shaU not collect solid waste from Bin service customers or from any other
jurisdiction, including County unincorporated areas, while containing sol!d waste collected from
Residential Units in Azusa or commercial barrel customers.
Contractor shan establish collection routes for Multifamily Residential Cnits and
Commercial Units receiving Bin service separately from Residential and Commercial Barrel
service customers. Each route so designated shall be assigned to specified collection vehicles
which Contractor shaH 1dentify by number. For ali Multifamily Bln and Commercial Bin routes,
the Contractor shall provide a list of aU customers to the City at the City's request. This Hst shaH
include the customer name, address, days of week serviced, number and size of Bins, for each
Multifamily Complex and Commercial property served. Route assigned vehicles shan not collect
solid waste from Residential Units or Commercial Units using Barrels to dispose of sohd waste,
or from any other jurisdiction, including County unincorporated areas, while contllining solid
waste collected from Multifamily Residential Units and Commercial Units in Azusa
II
A Hsting of all commercial Barrel customers and Roii~off cuslornets with routine
or regular monthly service shall be provided to the City upon request. For each Roll-off
customer. container size and frequency of service shan be provided.
G. Cu§.tomer Service. Contractor's office hours shall be, at a minimum, from 8
a.m-to 5:00p.m .• Monday through Friday, and 8:00a.m. through 12:00 noon on Saturday. A
customer service representative of Contractor shall be avaih:ble by telephone during office hourS
for communication with customers .at the Contractor's principal office. In the event that a
customer complaint cannot he rectified during nonnal business hours over the telephone, a
representative of the Contractor shall agree to me.et with the customer at a location agreeable to
the Contractor and the customer. Normal office hour telephone numbers shall be either a local or
toH free number.
All valid customer complaints shall be directed to the Contractor. Contractor
shall record all complaints received by mail, by telephone, or in person, including the name,
address of the customer, nature of the complaint and date. Contractor shaH use its best efforts to
resolve all complaints by close of business of the second business day following the d.Jte on
which complaint was :received. Service complaints may be investigated by the City :Manager.
Contrac.1:or shall maintaln records of all valid customer COrtlplalnts, the customer
name and address, a description of the compliant and the action taken to correct the complaint
All such records shall be made available to t.1-te City upon request.
Section 4.7. R141.prts .and Auditing Rights.
A. Contractor shall submit three (3) reports monthly to the City: (l) disposal
report; (2) service level report for Multifamily Residential sen-ice; (3) service level report for
Commercial Bin service; and one (1) report quarterly to the City: (1) Iv!RF diversion report.
These reports shall be pmvided by the 20th day following the month end for the period being
reported, or, in the ca'Se of the l\1RF report, by the 4SJ. day after the end of the quarter. The
information shall be used by the City to detennine Contractor compliance with Section 4.3, and
to adjust rates on an annual basis. The content of each report shall be as follows:
(i) Monthly Disposal Reports
'The Monthly Disposa) report shall provide amounts disposed by route designated
collection trucks. Tonnage collected and disposed from Residential Barrel customers shall be
reported by tmck number and listed separately from Muttifamily Residentjal Bin tonnage and
Commercial Bin tonnage. Multifamily Residential Bin tonnage shaH be repor..ed by truck
num~r and hsted separately from Commercial Bln tonnage.
12
The disposal amounts for each category-of customer shall be broken dov.n by
Disposal Site destination point where the Solid Waste was taken and disposed according to route
assigned collection trucks. The per ton cost shall also be included on the report along with an
extension showing the monthly total cost per customer category, For an Solid Waste delivered to
Contracto(s ~1RF, the per ton cost shaH exclude landfi11 tipplng fees,
Green waste, street sweeping debris, and roll off tonnage shall be itemized at the
bottom of the report by Disposal Site.
The City shaH have the right to request reasonable modifications to the report
format and information to ensure that adequate documentation is provided to fulfill t.1e intended
purposes of the reports. Contractor shall make the requested changes after receipt of prior
written notice.
(ii) Multifamily Service Level Report.
For each Bin size and service frequency provided, the Contractor shall report the number
of Bins serviced during the preceding month aild calculate monthly cubic yards of service
provided. The re-port shall he formatted similarly as foHows:
1.5 Cubic
Yard Bin
Service! Bin MmfrJy Cubic
Week Cmmt YMlt
l
2
3
' •
5
6
Subtmal
St~rt;c as above
for 2,0 and 3 0
Cubk Yard
Bins
Total
(iii) Commercial Bin Service Level Report
13
For each Bin size and servjce frequency provided, the Contractor shall report the
number of Bins serviced during the prece.ding month and calculate monthly cubic yards of
service provided. This report shall be formatted the same as the service level report provided for
Multifamily Residential Bin service customers.
(iv) MRF DiverSion Report.
This quarterly report shall show monthly amounts deposited at the :MRF from ( 1)
Residential and Commercial Barrel customers. and (2) Multifamily Bin customers and
Commercial Bin customers, and (3) ron off customers. The amounts deposited at the MRf' shan
be llsted separately for each of these customer categories, and the amount of waste diverted shaH
be listed separately for each customer category. The waste diverted sh.aU be characterize into
material types, e.g., paper~ plastics, metal, g)ass, organics, with the diverted amount expressed for
each material. The residue or amount of waste requiring transport to the landfill shall also be
listed along with the landfill name where the residue is transported to and per ton charge for
landfill disposat The residue tonnage and disposal cost shall be listed separately for each
customer category.
B. The refusal, failure, or neglect of the Contractor to file any of the reports
required, or the inclusion of any material false or misleadrng statement or representation made
knowingly by the Contractor in such report is prohibited under this Agreement.
C. In order to verify the accuracy of reports submitted by Contractor, the City
shall have the following rights:
(i) 11le City shall have the right, at aU reasonable times, to inspect and audit
Contractor's books and records pertaining to Contractor's mont.ily disposal reports.
(ii) The City shall have the right, at all reasonable times. to inspect and audit
Contractor's books and records pertaining to Contractor's monthly cubic yardage report.
(iii) The City shall be entitled to conduct a field audit of any designated route
upon demand by telephone forty eight (48) hours in advance of the regularly scheduled collection
day of the designated route. Telephone notice shall be followed by written notice and facsimile
transmission (FAX} to the Contractor. The audit demand shall entitle the City to conduct a
physical route audit of any or .all designated routes for the purposes of vetifying customers
serve~ disposal amounts collected, and a.••Y other information as may be deemed necessary and
beneficial 10 the City or customers including identification of excess service. The standard route
audit will include minimally: (1) verification that the collection vehicle is empty when beginning
the route~ (2) verification of the addresses which ,r.re served by the designated coUection vehicle;
(3) verification of the Disposal Site to which the refuse is taken; and (4) the quantity of refuse b
tons collected from the designated route.
14
Section 5.0 Rates, Adjustment Method. and Payment$. ...
A. Rates for all services covered by thls Agreement sball be specified in Exhibit
"A" attached hereto and made a part hereof: (l) Per ton !v!RF rate; (2) Rates for Residential
Barrel services. green waste collection services, and rates for Multifamily Bin Service; (3) Rates
for Commercial Bin service; (4) Rates for ron off service; and (5) Rates for miscellaneous
services including temporary bin services, extra dump services, and commercial barrel senices.
B. Ail rates attached to this Agreement as an E.'hibit shaH be approved pursuant
to City Council resolution. Each Exhibit so approved shan dearly state the period during which
the rates are effective.
Section 5.01 Modification tQJ'er Ton 'MRF Rate.
A Allowq:J?.le Rate Adjustments. Per ton rate for processing solid waste at
Contractor's ?v1RF as stated in Exhibit "A" shall be adjusted upward or downward for ali refuse
billing periods beginning after June 30 of each year (the Adjustment Date). Rates shaH be
adjusted upward or downward based on the following changes:
(i) A change in the CPI;
(ii) A change in the per ton rate charged by the Puente Hills landfill for disposal
of solid waste;
(iii) A change in hauling costs directly resulting from the perma>1ent closure of a
landfill being utilized by the Contractor for disposal of Refuse collected in Azusa.
B. Rate Breakdown and Adjustment Method. The following infonnation and
procedures shall be used for the first adjustment effective July 1, 2001. and subsequent annual
rate adjustments:
(i) Rate included in Exhibit" A" shall be effective upon adoption of this
Agreement and shaH serve as basis for the first adjustment effective July 1, 2001. For rate
adjustment purposes L,_e rate is broken down as foUows:
Per ton 'MRF Processing charge is:
P~ng Cost Pcr Ton
lmdfill (75% ofPue.nte Hills rate of $18.05Jton)
ToW MRFGate R:<t.;, $45.46
(ii} CPI Adjustments-Processing cost component {$31.92 in above) shaJI be
adjusted by changes in the CPL The base for computing the adjustment is the index figure as of
April I, 2000 (the index date), as shown in the CPL March 31 of each year following the
15 iQJ02/00
execution of this Agreement shall be the rate modification date. The annual index change
between the index date and the rate modification date shall be the basis for computing the
percentage increase or decrease applied to the rate. For example, a..::surning the base figure on the
index date is 100 and the index figure on the rate modification dahe is 103, the percentage to be
apphed to specified rate components is 103/100-1 """ .03. A three (3) percent increase wou!d be
applied to the per ton ).tffiF Processing cost After each annual rate change, the percentage
change in the index between Aprill and March 31 shaH 1x used to make the following year's
rate adjustment.
As soon as possible after a rate modification date, City shaH send to Contractor a
comparative statement setting out: (1) the index value for the index date; (2) the index vaiue on
the rate modification date; (3) the net percentage change; and (4) the increase or decrease in the
fees which may be charged for the ensuing year commencing on or after July 1.
(iii) ,h.andfiH Adjustments -The landfill portion of t~e !viRF per ton gate rate
shall be adjusted based on changes in the per ton landfill rate charged by the Puente Hills landfil!
for disposal of solid waste multiplied by seventy-five percent (75% ). For example. if the Puente
Hills rate for disposal of solid waste is twenty dollars ($20) per ton, the landfill component of the
MRF rate shall be increased to fifteen dollars ($15) perton.
If the waste diversion accomplished by the Contractor reaches fifteen thousand
(15,000) tons~ the City and Contractor shall revisit this provision to assess whether the seventy
five percent (75%) ratio should be applied to landfill cha.~es.
If the Contractor uses the Commerce Refuse to Energy Faciiity to divert waste, the
City shall pay no more than seventy five percent (75%) of the per ton rate charged by the Puente
Hills landfill for disposal of solid waste.
Once adjusted by CPI and landfill changes the new per ton rates shaH appear in an
amended Exhibit "'A" and shaH become th_e ba.-;e for subsequent year rate adjustments.
(iv) Transfer Cost Increases ~Requests for cost increases attributed to added
transfer costs due to the closure of a Disposal Site, shaH be reviewed by a Certified Public
Accountant, hereinafter "CPA", or a consultant selected by the City and approved by the
Contractor. Said CPA or consultant shall submit a professional written opinion expressing the
accuracy of the computation of the increase or decrease required as a direct and proximate result
of the Contractor's changed costs resulting from the closure of a Disposal Site. The CPA or
consultant shall enter into a confi-dentiality agreement wit."l the Contractor and agree not to
release confidential information to the City.
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Section 5.02 Modification to Residential Barrel and Bin Service R2.tes..
A. OUowable Rate A9l!!St)]lents. Refuse collection rates in Exhibit "A" shaH be
adjusted upwa.'"d or downward for all refuse service billing periods beginning after June 30 of
each year (the Adjustment Date). Contractor is not prohibited from requesting periodically a rate
increase on disposal costs due to substantial decreases or increases of these costs. Rates shall be
adjusted upward or downward based on the following changes:
(i) A change in the CPI;
(ii) A change in costs associated with :rvlRF usage or for a change in cosrs
associated with disposal of green waste at landfills, either due to changes in the charges by the
Disposal Site operator or due to reductions or increases in the amount of materials disposed at the
Disposal SHes being utilized.
Rates may also be modified due to the following:
(iit) A change in hauBng costs directly resulting from the permanent closure of a
landfill being utilized by the Contractor for disposal of Refuse collected in Azusa;
(iv) A change in operating costs, such as a change in insurance costs, which is
extraordinary in nature and adversely impacts the Contractor;
(v) A change in hauling costs resulting from the City directing Contractor to use
a Disposal Site that is located closer to, or farther away from the City than the Puente Hills
landfilL
TI1e City Council shall have the opportunity to review and approve a request fo:-a
rate lncrease made pursuant to Section 5.02A(iii)(iv)(v), and such approval shall not be
unreasonably withheld.
B. Rate Breakdown and Adjustment Method. The following infOim;ltion and
procedures shall be used for the first adjustment effective July l, 2001, and subsequent annual
rate adjustments:
(j) Rates included in Exhibit "A" shall be effective upon adoption of this
Agreement. Rate.s are broken down as foHows and this breakdown shall serve as the basis for tl-..e
adjustment effective July 1, 2001:
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Residential Multifamily
Monthly Monthly
Rate Component Barrel Rate Bin Rate
Refuse/Green Collection Fee $7.21 $5.69
MRF Processing & Disposal 6.50 6.26
AB939 Fee 1.15
Franchise Fee 1.29 1.29
Billing Charge 0.45 0.45
Total $15.45 $14.84
(ii) Allowable adjustments specified in Section 5.02A(i)(ii)(iii)(iv)(v) apply to
rate components as follows: (1) CPI changes will only affect those costs related to collection
and billing; (2) Disposal Site usage cost changes shall only affect the :MRF Processing &
Disposal Cost, which shall include incineration costs and the cost to dispose of Green Waste; (3)
Disposal Site closures may affect Green Waste collection costs, and Disposal cost portion of the
rate; (4) changes in operating costs shall only affect costs related to collection; (5) changes in
costs due to implementation of new services shall be incorporated into this Franchise Agreement
by amendment and may affect all cost categories; (6) Franchise fees as required by this
Agreement shall be adjusted when any or all rate other components are adjusted.
(a) CPI Adjustments-Method specified in Section 5.01B(ii) shall be used in
making the annual rate adjustment.
(b) MRF Processing and Disposal Cost Adjustments-This component of
monthly rate shall be adjusted (up or down) based on disposal cost data and customer count
information for year ending March 31. The procedure for adjusting this component of rate is as
follows: (1) The customer count shall be determined for each month of the past twelve (12)
months along with the amount of billed revenue from customers for :MRF Processing and
Disposal; (2) Actual annual costs shall be determined based on the required monthly disposal
reports from the Contractor; (3) MRF Processing and Disposal costs shall be adjusted to
expected annual cost for future year, based on the anticipated tonnage multiplied by per ton rates
for MRF processing, and per ton landfill rates for green waste disposal, and by dividing the
annual total of these costs by anticipated monthly customer counts for the upcoming year; (4)
Any excess or deficiency of revenue collected from the :MRF Processing and Disposal
component of the rate in the prior year shall be applied to the future year rate in order to return
the excess (or collect deficiency) to customers over subsequent a twelve (12) month period.
Through this adjustment procedure the per ton costs listed in Exhibit "A", along
with per ton green waste disposal charges, shall be passed on to rate payers such that the
Contractor shall not profit on these charges beyond the per ton rates applied to actual tons
processed or disposed.
18 10/02/00
(c) Collection Cost Increases-The amount of collection rate increase or
decrease attributed to added collection costs due to the closure of a Disposal Site, shall be
reviewed by a CPA or a consultant selected by the City and approved by the Contractor. Said
CPA or consultant shall submit a professional v.Titten opjnion expressing the accuracy of the
computation of the increase or decrease required as a direct and proximate result of the
Contractor'S changed costs resulting from 5.02 A(jii). The CPA or consultant shall enter into a
confidentiality agreement with the Contractor a..ld agree not to release confidential information to
the City.
(d) O,gerating Cost Chan~es-Rate adjustments for extraordinary changes in
operating costs, such as insurance and maintenance, shaH be initiated by the Contractor.
Contractor shalJ submit a request to the City between September and March in the year the rate
adjustment Is expected. The Contractor shall submit cost Jnformation verified hy a CPA or a
consultant approved by the City justifying rate increases for extraordinary operating cost
increases. The CPA or consultant shall enter into a confidentiality agreement with the Contractor
and agree not to release confidential information to the City.
(e) Service Additions-The City may request the Contractor to provide
additional services during the tenn of this Franchise ~l;.greement which are not included in the
existing scope of work. The Contractor shall provide reasonable and responsive proposals to the
City on how such services are to be provided and state the cost for service additions. Additional
service items shall be incorporated into this Franchise Agreement through an appropriate
amendment. If the configuration of services provided through this Franchise Agreement is
significantly altered through the addition of new services, the City and Contractor may mutually
agree to change the methods for modifying rates. For serviceg not listed in this Franchise
Agreement which the Contractor currently provides, desires to provlde or has been requested to
provide, the Contr'J.ctor shall make applications to the City to provide service and modify the
Franchise Agreement.
(f) Transportfi:~.i.QJl Cost Savings/Increases -In the event the City locates a
Disposal Site for Green Waste that is closer to Azusa than the facilities listed Jn Section 4.2, the
City ;md Contractor shall determine the material collection cost savings associated with use of
such a facility by using the same method as found in 5.02B(ii)(c}. If the cost savings are material
in nature and the City desires to direct the Contractor to use the less distant facility, the City shall
notify the Contractor of this intent and shall provide in writing the estimated cost savings to be
credited to the rate payer. The Contractor shall have 30 days from receipt of this notice to
provide an option that wifl result in greater cost savings to the rate payer, If the Contractor does
not respond within 30 days, the Contractor must transport the Green Waste to the less distant
facility as directed by ihe City. The rates shall be adjusted through a contract amendment agreed
to by the City and Contractor. If the Contractor provides an option that results: in greater cost
savings for the same service, the City shall reconsider its position and make a final determination
as to which facility to direct the Contractor within 30 days of receipt of the Contractor" s
proposaL
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If the City directs the Contractor to a more distant facility: a method like the one
described above shall be used to detennine if there are any material cost increases. If thex are
cost increases, Contractor shall be entitled to a rate increase to cover such increases.
Section 5.03 Modification to Commercial FEn Rates.
A. Allow;:~Q]e Rate Adjustm~ots. Refuse collection rates in Exhibit .. A" sha!l be
adjusted upward or downward for all refuse servk-e biliing periods beginning after June 30 of
each year. Rates shall be adjusted upward or downward based on the changes specified in
Section 5.02A(i)(ii)(iv)(v).
B. Rate Bre-akdown and Adjustment Method. Following information and
procedures shall be used for first adjustment effective July 1, 2001, and subsequent annual rate
adjustments:
(i) Rates in Exhibit '"A" shall be effective upon adoption of this Agreement.
Rates are broken down as follows and this breakdown shall serve as the basis for the adjustment
effective July I, 2001:
Bin Size
L:S: Cubic Yards
Sen'icesi Mont.'lly Momhly Fr.mcbise Mont.'l.ly
Week r.mF & Disposal CoUC~.-iion p, Ra:<
' $16,63 $33.88 .$5.62 $56.18
2 $33.36 $51.82 $9A6 $94.6¢
3 $50.05 WU9 $13.26 $132.60
Bin Size
2.0 Cubic Yar&
Sa:vi:ces! Monthly Monthly Franchise Monthly
Wrek MRF & Disposal Collection Fre Rate
I $2224 $44.09 $7.37 .$73.70
2 $44.49 $52.39 $10.76 $107.64
3 $66.73 S60.5S $14.15 $141.46
4 SS$.97 $69.45 $11-60 $176.02
5 $111.22 $77.49 $20.97 $209.58.
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I
i
Bin Size
3.0 Cubic Yards
Services/ Monthly Monthly Franchise Monthly
Week MRF & Disposal Collection Fe< Rate
I $33.36 $41.85 $8.36 $83.57
2 $66.73 $46.65 $12.60 $125.98
3 $100.09 $51.47 $16.84 $168.40
4 $133.46 $56.20 $21.07 $210.73
5 $166.82 $61.11 $25.33 $253.26
Saturday Service $33.36 $41.85 $8.36 $83.57
(ii) Allowable adjustments specified in Section 5.02A(i)(ii)(iv)(v) shall apply to rate
components as follows: (1) CPI changes will only affect those costs related to collection; (2)
Disposal Site usage cost changes shall only affect the MRF Processing & Disposal Cost, which
shall include the cost to incinerate waste; (3) changes in operating costs shall only affect
collection costs; (4) changes in costs due to implementation of new services shall be incorporated
into this Franchise Agreement by amendment and may affect all cost categories; (5) Franchise
fees as required by this Agreement shall be adjusted as any or all rate other components are
adjusted.
(a) CPI Adjustments-Method specified in Section 5.01B(ii) shall be used in making the
annual rate adjustment.
(b) :MRF Processing and Disposal Cost Adjustments-This component of monthly rate
shall be adjusted (up or down) based on disposal cost data and bin service level information for
year ending March 31. The procedure for adjusting this component of rate is as follows: (1)
The bin service levels shall be tabulated for each month of the past twelve (12) months to
calculate the amount of revenue received from customers for MRF Processing and Disposal; (2)
Actual annual costs shall be determined based on the required monthly disposal reports from the
Contractor; (3) :MRF Processing and Disposal costs shall be adjusted to expected annual cost for
future year based on the anticipated tonnage multiplied by per ton :MRF rate including landfill
charges, and by dividing the annual total of these costs by anticipated monthly cubic yards of bin
service for the upcoming year; (4) a per cubic yard cost shall be calculated and applied to all bin
service levels to determine new :MRF Processing and Disposal Cost; and (5) Any excess or
deficiency of revenue collected from the :MRF Processing and Disposal component of the rate in
the prior year shall be applied to the future year cubic yard amount in order to return the excess
(or collect deficiency) to customers over subsequent a twelve (12) month period.
(c) Other methods identified in Section 5.02B(ii)(c)(d)(e)(f) shall be used to adjust
Commercial Bin rates if applicable.
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Section 5.04 Modification to RoB Off Container Rates
A. Allowable Rate Adiustments. Rates for RoH Off Container service are set forth in
Exhibit "A" and shall be adjusted upward or downward for all refuse billing periods beginning
after June 30 of each year (the Adjustment Date). Rates shall be adjusted upward or downward
based on a change in the CPI.
B. Rate Breakdown and AdJustment Method. The foil owing information a.J.d
procedures shaH be used for first aqjustment effective July 1, 2001, and subsequent annual rate
adjustments:
(i) Rate in Exhibit ·~A" shaH be effective upon adoption of this Agreement-Rates are
shown belmv a11.d following rates shall serve as the basis for the adjustment effective hly 1,
2001:
For 40, 30 or 10 cubic yard roli off bin service, the rate shaH 'be as follows:
Collection Cost
Franchise Fee
Subtotal
Disposal or ~<fl<F Processing
$174.10
19.34
193.44
Actual
Total service cost is the sum of collection, franchise and disposal or MRF costs,
Disposal or :MRF cost is determined at the time service is rendered and is the actual tipping cost
incurred by the Contractor. Contractor shall inform customer of lower rate prior to service being
rendered for disposal of inert materials if material are kept clean.
(il) Allowable adjustment specified in Section 5.02A(i) shall be applied to costs
rdated to collection.
(a) !;:PI Adjustn)llnts-Method specified in Section 5.0!B(ii) shall be used in
making the a.'mual rate adjustment
Section 5.05 Bill inS! and Pavment to Contragtor.
A. Billing by City. City shall submit monthly statements to and collect from all
Residential Units and Multifamily Units for Barrel and Bin collection services provided by
Contractor at rates authorized by this Agreement
Ciry shall provide Contractor with monthly count of customers billed by biHing
code.
22
B. B.iUipg bv ContractQr. Contractor shall submit statements to and collect from
all Commercial and Industrial Units for all bin and roll off collection services provided by
Contractor at rates authorized by this Agreement. Contractor agrees that City shall be under no
obfigation to collect or to enforce collection of an.y sums due to Contractor for commercial or
industrial solid waste and recyclable coHection se~ces rendered under this Agreement except as
specifically provided in th1s Agreement or in the Azusa Yiunicipal Code, and Contractor does
hereby release City for any and all liability for the payment of any sum or sums which may
become due to Contractor for the collection or removal of commercial or industrial solid waste or
recyclabJes under this Agreement. Contractor shall have the right to bill and collect for its
commercial and industrial services monthly in advance of the rendition of services hereunder, bat
shall refund any unused pprtion of the amount coHected in the event of terrninatlon of the
services.
C. :Elf.;mJent _H> Contractor. Within fifteen {15) da:ys after the end of each month,
City will pay to Contractor ali' amounts billed from Residential Units for services rendered
pursuant to this Franchise Agreement and billed by the City. This includes revenue coHected to
pay for the following services or costs:
Refuse and Green \Vaste Collection
MRF Processing and Landfill Disposal
The City shall retain those amounts collected as a result of following fees and
charges that are not committed to the Contmc1or for the above related services.
Franchise Fee
Billing Charge
Integrated Waste Management Fee or AB 939 Fee
D. l:::tY.ment lo Citv. As c-onsideration for this Frar.chJse Agreement and the
rights granted herein, Contractor shal[ pay to City a franchise fee in accordance with SC~wi.ion 7.
Thi~ fee shall be applied to disposal cost increases: when they occur such that Contractor's
revenues are not affected and will be calculated on a monthly basis and shall be pald by
Contractor within fifteen (15) days after the end of the month in which the monies were
collected.
E. Stop Service. C,ontractor shall have the right to stop service on Commercial
Units for non~payment in order to collect past due charges. Contractor shaH resume service at no
extra charge once customer pays past due amounts.
Section 6. Insuranc-e. Contractor agrees to procure and to rnainta:in,ln fuil force
and effect, at its own cost, throughout the term of this Agreement the following insurance pollcy
or policies of liability lnsurance of the fol1owing coverages with Best's Class B+ and HmHs for
the duration and purpose of this Agreement: Worker's Compensation-Statutory; Employers'
23 "''''"'
L.Jabiiity-$!00,000 each occurrence; Comprehensive General liability (including Contractual
UabHity) -$5.000,000 each occurrence combined single limit; and Comprehensive Automobile
liability-$5,000,000 each occurrence combined single limit. Said policies shall add as insureds
City, its elected officials. officers, employees and agents for all Bablilty arising from Contractor's
performance of the services to be provided as set forth herein. Upon request by City, Contractor
shaU provide to City certificates of insurance with original endorsements,
Section 7. Franchise Fee. Contractor agrees to pay to-City ten (10) percent of the
sums collected by Contractor for the services rendered pursuant to this Agreement during each
fiscal year ending June 30, or fraction thereof that this Agreement is in effect. Said sum will be
payable monthly on or before the 15th day of each calendar month throughout the duration of this
agreement and shall be accompanied by a simple reconciliation or statement. Annually and
within thirty (30) days after the expiration of the term of this Agreemenl, Contractor shall submit
to City a true and correct statement in writing, certified by a Certified Public Accountant or
Contractor's Chief Financial Officer~ Contractor's total collections during the preceding year of
sums charged for services rende-red as provided in this agreement, and with such statement the
Contractor shall remit to City a sum or shall render a bill which, when paid will reconcik any
difference between the monthly statements and the certified statement, as they pertain to 1hc
percentage of tbe gross collectlon of service fees collected by Contractor due to City under this
terms of thls paragraph. The sums herein agreed to be paid to City by Contractor shaH be in
addition to any and ali other geneml business license~ truck license, or other Hcense fees or taxes
charged. assessed, levied or collected by City a:.Id to any ad valorem tax:es upon any real or
personal property of Contractor subject to ad valorem taxation by City. If any special business
license, truck license, franchise tax or other license fee is required to be paid by Contractor to
City for the performance of this Contractor, Contractor shall be entidOO to deduct the amount
thereof from the annual percentage of gross collections otherwise due to City under the terms of
this paragraph, City shaH have the right to inspect the account books of Cxmtractor and relarOO
to the Citts franchise fee and receivables during business hours at Contractor's place of business.
but such inspection shaH not be so conducted as to unreasonably interfere with Contractor's
necessary use of its account books.
SectionS. Performance Bond. Concurrent with the execution hereof, Contractor
shall the bond in the amount of Fifty Thousand Dollars ($50,000.00) approved as to fonn by the
City Attorney of City, guaranteeing Contractor's faithful performance of the tenns hereof by it to
be performed, and Contractor shall maintain such bond in effect througi10ut the ctw·ation of this
AgreemenL Satisfaction of the surety bond requirement as set forth in the paragraph shall be
considered sufficient compliance with the similar requirement of the residential refuse contract.
ln the event the Contractor fails or refuses to perform any material provision of the within
Agreement, unless such failure or refusal is due to the Contractor's inability to perform the same
by reason of public calamity, strike, war, prohibition by governmental authority, or other causes
beyond the Contractor's control, City may give to the Contractor at least 10 days' written notice
of such default by the Contractor which notice shall specify precisely the items wherein the
Contractor fails or refuses to perform any material provision of the Agreement. Upon the failure
24
or refusal of the Contractor to cure its default with respect to such items thus specified within the
time specified in such written notice, City may then terminate the written Agreement and may
declare the amount of said bond forfeited to City. In addition to the forfeiture of said bond, in
case of termination of this Agreement, City shall have the option and right to use the trucks and
equipment of the Contractor for the purpose of collecting and removing garbage and rubbish for
a period of ninety (90) days after such termination, or until such failure or inability to perform
has ended by not exceeding ninety (90) days. If City thus uses the trucks and equipment of the
Contractor, it shall pay to the Contractor the reasonable rental values thereof, including
depreciation and insurance costs as determined by the books of the Contractor, and within ninety
(90) days City shall return all such trucks and equipment to the Contractor in as good condition
and state of repair as when received by City, reasonable wear and tear from normal usage
excepted.
Section 9. Indemnification.
A. Indemnification of City. Contractor shall indemnify, defend with counsel
approved by City, indemnify and hold harmless City and its elected officials, officers, employees,
servants and agents from and against any and all costs, expenses, losses, liabilities, judgments,
fines, penalties, claims, causes of action and administrative proceedings for bodily injury or death
to any person whomsoever and damage to any property whatsoever arising out of, or resulting in
any way from, any act or omission of Contractor or any of its officers, employees, servants or
agents, unless such injury or damage is due to the willful or gross negligence or willful acts of
City or any of its officers, employees, servants or agents.
B. AB 939 Indemnification. Contractor agrees to protect, defend with counsel
approved by City, indemnify and hold harmless City against ail fines or penalties imposed by the
CIWMB in the event such fines are imposed due to Contractor's failure to meet the solid waste
diversion goals specified by this Agreement, regardless of any state law to the contrary. If the
Contractor fails to pay any fines or penalties imposed by the CIW:MB due to the Contractor's
failure to meet the diversion goals specified in Section 4.3 of this Agreement, the City may
terminate this Agreement pursuant to Sections 13 and 14.
C. Special Waste Indenmification. Contractor shall indemnify, defend with
counsel approved by City, and hold harmless City and its officers, employees, servants and
agents from and against all costs, expenses, losses, liabilities, judgments, fines, penalties, claims,
causes of action and administrative proceedings arising directly from, or directly attributable, to
the handling or transportation of special waste from the time that it is coiiected by Contractor
until the time that it is deposited by Contractor at a disposal site, except that if the special waste
is knowingly collected by Contractor, then until the time that it is lawfully deposited by
Contracted at a disposal site. The foregoing indemnity is intended to operate as an agreement
pursuant to section 107(e) of the Comprehensive Environmental Response, Compensation and
Liability Act, "CERCLA" 42 U.S.C. section 9607(e), and California Health and Safety Code
25
section 25364, to defend, protect, hold harmless and indemnify City from liability to the: extent
specifically provided in this subsection.
Section 10. ObHgatious Under AB 939. This Agreement !s intended to meet
City's landfill diversion obligations to comply with the pro\risions of J\B 939 as !t from time to
time may be amended, and as implemented by CIWMB. In the event that AB 939 or other state
or federal laws or regulations enacted after this Agreement becomes effective, prevent or
preclude compliance with one or more provisions of this Agreement, such provisions of the
Agreement shaH be modified or suspended, on terms mutuaily agt""'veable to the parties, as may be
necessary to comply with such state or federal laws or regulations.
Section 11. Ctu:u2ge in Control or Transfer. C.ontractor agrees that at least 51
percent of its co:rpomte stock shall, at all times throughout this Agreement continue to be owned
by Contractor or its lineal heirs, unless City agrees In writing otherwise. No part of any duties to
be performed by Contractor or rights of Contractor under this Agreement shall be transferred or
assigned by act or Contractor or by operation of law unless City agrees in writing. In
determining whether to approve any saie, transfer or assignment as described in this paragraph,
City shall apply commercially reasonable factors, including but not Iimlted to the ability,
financial and otherwise, of the buyer, transferee or assignee to do aU of the following:
(a) Perfonn the obligations of the Contractor under this Agreement;
(b) Provide service to customers equal to or better than service provided by
Contractor over t.'Je course of the tenn of the Agreement; and
(c) Comply with ali applicable laws and regulations concerning rubbish
collection and disposaL
In determining whether lhe above criteria for a transfer can be satisfied, City may,
but is not limited to, consider the proposed transferee's: qua.'ltity and quality of equipment, years
of experience in providing service, experience in providing service to dties like City, criminal
record, financial stability, involvement .in civil litigation, number of contracts with other cities
and reputation in other cities.
In the event any sale, transfer or assignment of Contra"'1.0r or Contractor's interest
in thls Agreement occurs without City's written appron:i, City may immediately terminate this
Agreement upon written notice to Contractor.
Section 12. Transfer Process. Any request for a transfer of the obligations and
rights under this Agreement or for a ch<>..nge in control of Contractor shall be made in a manner
prescribed by the City ~1anager. A transfer request shall include an 2dministrative fee, in zn
amount to be set by the City Manager, to cover all anticipate-d direct .and indirect administrative
costs including, but not limited to, City staff time, consultants' time and City Attorney time
26
needed to thoroughly review the transfer request The administrative fee shall b-::: Ten Thousand
Dollars ($10,000) and shaH increase in an amount equal to CPI increase from the execution date
of this Agreement
Section 13. Default. If the City Manager detennines that Contmctor is in breach
of any material provision of this Agreement. he shall so notify Contractor in \llriting, and the
notice shall include a reasonable time wiL1.in which Contractor may cure the breach. The City
lvfanager shall review Contractor's responsive action to such notice and shall notify Contractor in
vvriting of his determination as to whether the breach has been cured in a satisfactory manner.
Contractor may appeal the City !\tanager's decision to the City CounciL To
appeal, Contractor must file a written appeal identifying the grounds for the appeal a.td shall file
the appeal with the City Clerk within five (.5} days after receipt by Contractor of the City
Manager's written notice. The City Council shall hear the appeal within thJny (30) days after it is
filed. The City Clerk shall give Contmctor at least ten (10) days notice of the time and plar:e of
the City Council meeting at which the appea[ wiU be addressed. At the meeting, the City Council
shall consider a report from the CJty Ma.1ager and shall give Contractor, its representative and
any other interested persons a reasonable opportunity to be heard, The City Council shall then
act to affirm, modify or reverse the determination of the City ~lanager. Contractor's per:forma."1ce
under this Agreement shall not be excused at any time prior to the City Council's decision on the
appeal
Notwithstanding any provislons to the contrary set forth herein, Contractor shan
not be deemed to be in default if its employees are on strike for a period not exceeding fourteen
(14) days pursuant to a labor dispute and Contractor is making good faith efforts to resolve the
dispute.
Section 14. Term:inanon. If any default is not cured after notice and an
opponunity to cure, the City Council shaH have the right. but not the obligation, to terminate this
Agreement. City shall pro\ide Contractor with '-Vritten notlce of the termination of this
Agreement, as a result of default, within two (2) days after the final decision to terminate is made
and the termination notice shall specify the date of termination. The Contractor ·s performance
under this Agreement shall not be excused at any time after the City provides final notice of
termination to the Contractor. During the period following the final notice of tennination and the
date on which the Agreement terminates. all other terms and conditions of this Agreement shall
remain in full force.
Section 15. Equipment RentaL In addition to the remedies set forth elsewhere in
this Agreement, in the event of a default by Contractor, City shall have the right to rent or lease
vehicles and equipment from Contractor, at reasonable market rates, for a period not to exceed
ninety (90) days for the purpose of performing the services that Contractor is obligated to
perform under this Agr=-....ement.
27 JO/Q2100
Section L6. Prior Agxeements. The terms of dlls Agreement supersede and cancel
aU prior agreements heretofore in effect between the parties concerning the subject matter hereof
This Agreement shaH operate as a discharge of ali future obltgations of either party under any
contracts thus superseded,
Section 17. Most Favored Nation. The City shaH have the right to reduce the
gate fee used to calculate processir.g costs if an agreement of another city that is served by the
Contractor includes a lower MRF gate rate.
A. Independent Contractor. Contractor is and shall at all tines remain as to City
a wholly independent contractor. Neither City nor any of its officers:, employees, servar:ts or
agents shaH have contr:ol over the conduct of Contractor or any of Contractor's officers,
employees, servants or agents. Contractor shall not at any time or in any manner represent that it
or any of its employees are in any manner employees of City.
B. No Joint Associ ali on. Nothing contained in this Agreement shall be deemed,
construed or represented by City or Contractor to any third person to create the relationship of
principal or agent. or of a partnership, or of a joint venture, or other association of any kind or
nature between City and Contractor.
C NondiscriminatiQTI-.. 9J._Contractor. Contractor repre..<jents and agrees that
Contractor, its affiliates, subsidiaries, or holding companies do not and wiH not <liscriminate
against any empioyee, or applicant for employment because of race, religion. color, sex.
handicap, or national origin. Such nondiscrimination shall include, but not be limited to, the
following: employment, upgrading, demotion, transfers, recruitment, recruitment advertising,
layoff, termination, rates of pay or other forms of compensation, and se:lectlon for training,
including apprenticeship.
D. Notices. Any notice required to be given under th:is Agreement shall be given
by pladng such notice in the United States mail. postage prepaid~ addressed as follows:
In the ca~e of the notice to Contractor:
Athens Disposa[ Company
1404& Valley Blvd.
Cityoflndustry, CA 9!7!5-0009
Attention: General Manager
28
Ia .. the case of Notice to City:
City of Azusa
Azusa City BaH
213 East Foothill Boulevard
Azusa, California
Attention: Ciiy Manager, \\':ith Copy to City Clerk
Or to sucb other address as may be indicated by notice ln writing, Such notice
shall be deemed made when personally delivered or when mailed forty-eight (48) hours after
deposit in the U.S. mail, first-class postage prepaid and addressed to the party at its appHcab!e
address.
E. Authority to Enter A!!.reement City and Contractor warrant that the
lndivtduals who have signed this Agreeme:1t have L~e legal power, right and authority to enter
into this Agreement so as to bind each respective party to perfonn the conditions contemplated
herein,
F. Sever:AJ?i)j.ty. If any portion of this Agreement is decla.red by a court of
competent jurisdiction to be invalid or unenforceable, the remaining provisions of this
Agreement shall continue in full force and effect.
G. Attorneys' Fees and Costs. If any legal action or other proceeding is brought
for the enforcement of this Agreement or because of an alleged dispute, breach, default, or mis-
representation in connection with ar1y provisions of this Agreement. the successful or pre-Vailing
patty shall be entitled to recover reasonable attorneys' fees and other costs incurred in that action
or proceeding, in addition to any other relief to which it may be entitted.
H. Governing Law and Venue. This Agreement shall be construed in accordance
with and governed by the laws of the State of California. Any lawsuit brought to enforce this
Agreement shall be brought in the appropriate court in Los Angeles, State of California.
L Waiver. The waiver by City or Contr&.---ror of any breach or violation of any
term or condition of this Agreement shall not be deemed to be a waiver of any other term or
condition or of any subsequent breach or violation of the same or of any other term or condition.
J. ~· Any term in this Agreement referencing time. days. or period for
perfom1ance shall be deemed to be ca!endar days and not work days.
K. Entire A2reement. This Agreement contains the entire agreement of City and
Contractor and supersedes any prior or -wTitten statement.<;, or ag:reements between City and
Contractor. No supplement. modification, or amendment of this Agreement shall be binding
unless executed in writing by both pa.ri:ies.
29
L Bjnding on Assirns. Each and all of the covenants and conditions of this
Agreement shall be binding on .and shaH inure to the benefit of the successors and assigns of the
respective parties.
M. fuvaliditv. The Hlegality of any provision of this Agreement shall not affe<.'t
the remainder of this Agreement
N. Captions. The captions of the various articles and paragraphs of this
Agreement are for the convenience and ease of reference only, and do not define. limit, augment,
or describe the scope. content, or intent of this Agreement or of any part or parts of this
Agreement.
0. Construct.iQ!1. In aU cases, t.lJ.e language in all parts of this Agreement shall be
construed simply. ac-eording to its faiT meaning and not strict!y for or against any party, it being
agreed that the parties or their agents have an participated in the preparation of this Agreement
P • .(,;00{1t\cation!Further Acts. The parties shall fully cooperate wiL;. one another
in attaining the purposes of thls Agreement a:1d, in connection therewiL1, shalJ take any such
additional further acts and steps and sign any such additional docUJ.-nents as may be necessary,
appropriate and convenient as related thereto.
Q. Axn~p.dment of Municipal Code. In order to reflect the re--quirements of AB
939 and set forth City's policies for entering into exclusive solid waste and recycling franchises,
City intends to amend Chapter 58 of the Azusa Municipal Code. Contr'dctor agrees that it shall
not challenge any amendments of Chapter 58 so long as the amendments do not decrease any
rights or privileges that Contractor has under this AgreemenL
R. Inoomoration of Recitals and Exhibits.
The "Recitals" constitute a material part hereof. and are hereby incorporated by
referenee herein as though fully set forth hereat.
The ''Exhiblts" constitute a material part hereof, and are hereby incorporated by
reference herein as though fuUy set forth hereat.
S. PrQhfbited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not
paid nor has it agreed to pay any company or person, other than a bona fide employee working
solely for Contractor. any fee. commission, percentage, brokerage fee. gift or other consideration
contingent upon or resulting from the award or making this Agreement .. For br<'....ach or violation
of this warranty, City shall have the right to rescind this Agre-ement without liability. For the
term of this Agreement, no member, officer or employee of City. during the tenn of his or her
30
service with City. shaH have any interest in this Agreement outside of his or her employment
with the City, or obtain any present or anticipated material benefit arising therefrom outside of
his or her employment with the City.
IN WTI'NESS WHEREOF, City and Contractor have caused the within agreement
to be. executed by their respective officers thereunto duly authorized.
October 2, 2000 ··-----
~~AZUSA
Cristina Cruz~Madrid. Mayor
ATTEST:
APPROVED AS TO FORM:
~f.~~a~~-
Best Best & Krieger I.ll) ~ilhams
City Attorney Gibson, Dunn and Crutcher
3!