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Item 18AGENDA ITEM NO. 18 AGENDA STAFF REPORT City of West Covina I Office of the City Manager DATE: June 21, 2022 TO: Mayor and City Council FROM: David Carmany City Manager SUBJECT: CONSIDERATION OF MEASURES TO COMPLY WITH CALIFORNIA SENATE BILL 1383, NPDES STORMWATER REGULATIONS AND AMENDMENTS TO THE ATHENS SERVICES FRANCHISE AGREEMENT It is recommended that the City Council take the following actions: 1. Authorize the City Manager to execute a professional services agreement, in a form approved by the City Attorney, with the San Gabriel Valley Council of Governments for participation in the San Gabriel Regional Food Recovery Program; or 2.a. Authorize the City Manager to negotiate and execute an agreement with Arakelian Enterprises, Inc. DBA Athens Services for the collection of solid waste, recyclables, yard waste and other compostables, in such final form as approved by the City Attorney, incorporating the updated terms relating to beautification services as detailed below; and 2.1b. Approve, by a majority vote of the entire City Council, dispensing with formal bidding procedures and requirements in connection with the procurement of bus shelter maintenance and gmffiti abatement services by finding that it would be uneconomical to comply with such requirements and it would promote the public interest to dispense with such requirements, in accordance with the requirements of Section 2-330(b) of the West Covina Municipal Code; or 3. Direct the City Manager to continue negotiations with Arakelian Enterprises, Inc. DBA Athens Services to implement SB 1383. BACKGROUND: SB 1383 California's Short -Lived Climate Pollutant Reduction law, often called SB 1383, establishes methane reduction targets for California. SB 1383 is an unfunded State mandate that sets goals to reduce disposal of organic waste in landfills, including edible food. The bill's purpose is to reduce greenhouse gas emissions, such as methane, and address food insecurity in California. Aspects of this law ensure that food scraps are composted and compost is purchased by cities. Composting, industrial uses, and animal feed are good environmental uses for inedible food or other organic material. Disposing of organic waste in landfills is considered a significant source of local air quality pollutants, which can cause respiratory issues and hospitalizations for community members. To address the environmental and health concerns of surplus edible food, SB 1383 requires 20 % of edible food that would otherwise be disposed of in the garbage or compost be recovered for human consumption by 2025. This means surplus edible food will help feed Californians in need instead of decomposing in a landfill while emitting harmful greenhouse gases. The EPA recognizes feeding hungry people as one of the most preferred avenues to prevent food waste and benefit the environment, society, and economy. NPDES In addition to compliance with SB 1383, compliance with National Pollutant Discharge Elimination System (NPDES) permits is critical to protecting our nation's waters. The objective of the NPDES initiative is to improve surface water quality by assuring that all NPDES permittees are complying with their permits. Improving surface water quality protects public health and reduces potential pollution impacts on drinking water supplies, aquatic life and public enjoyment of fishable and swimmable waters. Violations of NPDES Stormwater Permits can result in legal actions and fines against the City. City of West Covina streets are currently not swept weekly. State of California Regional Water Quality Control Board guidance presents the best management practices "BMPs" or good housekeeping practices addressing the discharge of pollutants to the stone drain system from municipal facilities. These facilities include streets, roads, and highways. Pollutants of concern include metals, oil & grease, fertilizer, pesticides & herbicides, chemical products, and gasoline & radiator fluid. ATHENS CONTRACT Over the years, the City of West Covina approved multiple amendments to its agreement with Amkelian Enterprises, Inc. dba Athens Services ("Athens Services"), a waste collection company and valued community partner. Athens Services has developed programs that have kept West Covina on the cutting edge of environmental sustainability and in compliance with state laws relating to integrated waste management. The agreement between West Covina and Athens Services is a franchise agreement that establishes the waste collection company's exclusive right to engage in the business of collecting solid waste, recyclables, and other waste within the boundaries of the City. In exchange for this right, the waste collection company pays the City a franchise fee of 10 percent of its gross receipts resulting from the agreement. The contract also specifies the rates that the waste collection company can charge to residents and businesses for its services and authorizes the company to request an annual rate increase in accordance with the Consumer Price Index (CPI). This type of arrangement is common among similar cities in Los Angeles County. West Covina initially contracted with Athens Services in 1992. That agreement contained a clause that annually extended the agreement's duration by one year, thereby ensuring it maintained an ongoing service period of eight years (resulting in what is known as an evergreen period). In other words, in 1997 the expiration date for the agreement was 2005, while by 1999 the expiration had extended to 2007. In March 2001, the City Council adopted the first of 11 amendments to that agreement, which extended its evergreen period from eight to 12 years. In October 2012, the City Council approved Amendment No. 9 to the agreement, which extended the evergreen period to 25 years. In exchange for the extension of the evergreen period, Athens Services agreed to make a one-time payment of $2 million to the City and annual recurring payments of $100,000 in addition to the franchise fee. Over the years, the City Council approved other amendments to the franchise agreement that pertained to rate adjustments but did not modify the length of the contract. In November 2016, the City Council approved an Amendment No. 10 to the franchise agreement for a series of rate increases to customers for waste collection services. That amendment also provided for a one-time payment of $650,000 to the City and increased the annual recurring payments from Athens Services to $300,000, but stipulated that the City's notification of contract termination would void that payment clause. Finally, the City approved Amendment No. 11 to the franchise agreement in October 2018, which included a clause preventing the City from exercising its annual option to terminate the agreement until October 2023. As a result of its amendments, the earliest the City could contract with another vendor would be October 2048. Given the long term relationship between West Covina and Athens Services, the City asked Athens Services to enter into negotiations to implement changes to the existing agreement recognizing changes in new laws pertaining to solid waste handling and the need for the diversion of solid waste from landfills. As it complies with SB 1383, West Covina is able to seek the best value for its residents and community and renegotiate certain terms of the contract with the waste collection company. In February 2022, a proposed amendment to the contract was presented to City Council. After discussion, the item was tabled. Staff continued negotiations. DISCUSSION: Due to SB 1383, West Covina's trash and green waste collection services are going to change beginning July 1, 2022. SB 1383 was signed into law in 2016 to gradually reduce organic waste disposal by 75 % and increase edible food recovery by 20%, by the year 2025. Starting July 1, 2022, residents living in a single-family home or apartment/condo will be required to separate food waste and food -soiled paper from the trash. These materials will no longer go into the trash container but will instead go into the green organics (green) container, along with yard waste. To handle the processing of organics, rather than taking organic waste to a landfill, beginning on July 1, 2022, the standard residential service rate will increase. Athens By negotiating with Athens Services, West Covina seeks to maximize its long -tens contract position by amortizing the substantial costs associated with the operational and infrastructure investments necessary for the City to comply with SB 1383. The proposed changes, including SB 1383 compliance, will ensure that West Covina remains in compliance with state law. Athens Services would provide waste stream analyses, education and outreach, contamination monitoring, data management, procurement support, food recovery support, and new technologies to support the cutting edge processing or disposal of organic waste. Following the February 15, 2022 meeting, Staff continued to negotiate the agreement with Athens Services. Based on those negotiations, the City has two options with Athens Services: Option 1 -Amended and Restated Agreement Incorporatina SB 1383 Implementation and Beautification Services Under the terms of the draft agreement with Athens Services (Attachment No. 1), the standard residential service rate would initially increase by approximately $3.63 per month. Athens Services would collect and recycle organic waste into compost that can be used to grow plants and vegetables. This compost would be made available to all residents at the City's compost giveaway events. Athens has offered to provide these services at a competitive price and crosswalk any associated rate changes over several years to mitigate the cost impact on rate payers and avoid a one-time increase. Residents having service questions are encouraged to call Athens at (888) 336-6100. In addition to SB 1383 implementation services, the most recent contract negotiations included the following deal points: • Athens will provide the City with an annual City Improvement Fee, totaling $1,200,000, for the City's use to keep public spaces throughout the City safe and clean. The City anticipates using such funds for services such as street sweeping, storm drain cleaning and landscaping services. • Athens will provide at least 100 hours per week of graffiti removal services • Athens will provide bus shelter cleaning and maintenance to all City bus stops and shelters on a quarterly basis • In exchange for the City Improvement Fee and additional services, the City would agree to a three-year extension to the no -trigger clause of the agreement. This means the City would not be able to provide notice of intent to terminate the agreement prior to August 2027. SB 1383 and NPDES compliance are the impetus of the proposed changes to the City's refuse and recycling agreement. The draft agreement represents a modification of the existing waste collection franchise agreement with Athens Services. It integrates the original agreement and all 11 amendments into a single document. It also incorporates the deal points outlined above. Option 2 -Amended and Restated Agreement Implementing SB 1383 Only If the City Council does not wish to incorporate the City Improvement Fee and beautification services into the agreement with Athens Services, the City may enter into an amended and restated agreement to integrate the original agreement and all 11 amendments into a single document and incorporate provisions relating to implementation of SB 1383. Under this option, the standard residential service rate would initially increase by approximately $7.45 per month. All other terms of the agreement as agreed upon through prior amendments (i.e., $300,000 annual payment and the ability to provide notice of intent to terminate in October 2023) would remain in effect. Below is a chart outlining the key differences between Options 1 and 2 (Attachment No. 4): Year 1- 9.399% Increase 7.399% CPI +2% Avg Bill: $38.62 to $42.23 Years 2 & Beyond: Trash CPI + 1% Year 1-11.399% Increase 7.399% CPI +4% Avg Bill: $262.60 to $292.51 Years 2 & 3: Trash CPI +3% Year 4 & Beyond: Trash CPI + 1% Garbage & Trash, U.S. Average Trash CPI February 2021-2022 = 4. 1% 10% $640,000 $1,200,000 + 3 years (to existing clause)= 5total Year 1-19.399%Increase 7.399 % CPI + 12% Avg Bill: $38.62 to $41 75 Years 2 & Beyond: CPI Year 1-11.399% Increase 7.399% CPI + 4% Ave Bill: $262.60 to $292.51 Years 2 & 3 Beyond: CPI All items, L.A. Region CPI February 2021-2022 = 7.399% 10% $0 $300,000 + 5 years = 7 total Section 2J30(b) of the West Covina Municipal Code states that the City Council, by a majority vote of the entire City Council, may dispense with the formal bidding procedures and requirements of Division 2 (Purchasing System) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code upon a finding that "it would be impracticable, useless or uneconomical ... to follow such procedures and ... the public welfare would be promoted by dispensing with the same." Staff believes it would be uneconomical and would not promote the public welfare to follow formal bidding requirements in connection with the procurement of bus shelter maintenance and graffiti abatement services that will be provided by Athens pursuant to the Amended and Restated Agreement, as Athens will provide a significant amount of such services at no cost to the City. Therefore, regardless of which option the Council ultimately selects, staff is recommending that the City Council, by a majority vote of the entire City Council, approve dispensing with formal bidding requirements and procedures in connection with the procurement of bus shelter maintenance and graffiti abatement services that will be provided by Athens by finding that it would be uneconomical to comply with such requirements and the public welfare would be promoted by dispensing with such requirements for the bus shelter maintenance and graffiti abatement services. Alternative Option-Consultanl(s) Request for Proposals The City of West Covina released a Request for Proposals (RFP) for services to assist the City in implementing the compliance requirements for SB 1383. The RFP requested three tasks: 1) Development of Implementation Plan; 2) Implementation of Plan; 3) Facilitate Discussions with Trash Hauler. The City received a total of six proposals. Please see a summary of the proposals below (Attachment No. 5): Vendor RColaathom easte Task 1 Development of Implementation Plan Task 2: Implementation of Plan Task 3 Facilitate Discussions with Trash Hauler � Fee $91045 Muni Environmental N4000, N.#*# %100" $94,566 Go22ero Note N10401 Not Included $114.760 MSW Consultants � Provide Assistance In Implementation $129976 HF&H Consultants Inc %0001 N0001 %Ole $224,795 SEMCO %1040" Provide Assistance in Implementation _ I �/ Orgy gave hourly rates San Gabriel Valley Council of Governments - San Gabriel Valley Reoional Food Recovery Program In addition, San Gabriel Valley Council of Governments (SGVCOG) is serving as the lead in a Regional Food Recovery Program, in efforts to provide cities with a regional program to support complying with SB 1383's edible food recovery regulations. The intent was to alleviate cities' staff burden and reduce costs by participating in the regional endeavor. SGVCOG has hired SCS Engineers (SCS) to manage the San Gabriel Valley Regional Food Recovery Program ("SGV Food Recovery Program"). Cities within the SGVCOG are able to participate in the SGV Food Recovery Program with a participation cost based on the city. The SGV Food Recovery Program includes assessing commercial edible food waste generators, identifying and fostering partnerships with local food recovery organizations, implementing outreach and education, and developing and implementing inspection protocols. Cities can elect the level of participation in the SGV Food Recovery Program, either capacity assessment and education and/or the enforcement and inspection. Cities that are participating in the entire SGV Food Recovery Program include; Azusa, Covina, Duarte, Glendora, Irwindale, La Canada Flintridge, Monrovia, Monterey Park, South Pasadena and Temple City. Alhambra, Pomona and Walnut are only participating in capacity assessment and education. As the SGV Food Recovery Program commenced in September 2021, West Covina's scope of services will be modified (the City will benefit from the information materials already developed & we are behind the other participating cities in outreach). SCS Engineering's proposal (Attachment No. 6) for West Covina's participation will include the following: • Project Update Meetings • Food Recovery Organization Capacity Assessment • Tier 1 & Tier 2 Generator Compliance Assessment • Outreach & Education (Specific to West Covina) • 2 workshops for Businesses • Materials in various languages (English, Spanish, Traditional Chinese) • Final Report • Inspections of Tier 1 & Tier 2 & Food Recovery As the SGVCOG is administering SCS's contract, they charge a 5% administrative fee. The contract would also be for a minimum of three (3) years (pilot program period). The total for the contract with SGVCOG would be $151,614. Please note participation in the San Gabriel Valley Regional Food Recovery Program will only address the food recovery regulations of SB 1383. The City would still be required to address the organic waste regulations, and will remain responsible for record keeping and reporting and issuing inspections for the food recovery regulations. West Covina was awarded a SB 1383 Local Assistance Grant in the amount of $149,000. Staff is verifying with the City's grant manager if a portion of these funds can be reallocated and applied towards participation in the SGV Food Recovery Program. The City also has monies available in our Fund 129 AB 939 (funds can be used to address solid waste reduction, recycling, and other solid waste management activities). LEGAL REVIEW: The City Attomey s Office will approve the agreements as to form prior to execution. OPTIONS: The City Council has the following options: 1. Continue Negotiations with Athens Services & Enter into an Agreement with SGVCOG to participate in the SGV Food Recovery Program a. Authorize the City Manager to continue to negotiate an agreement with Arakelian Enterprises, Inc. DBA Athens Services to reflect SB 1383 implementation, in such final form as approved by the City Attorney; and/or b. Authorize the City Manager to execute an agreement with San Gabriel Valley Council of Governments to participate in the San Gabriel Valley Regional Food Recovery Program, in such final form as approved by the City Attorney; or 2. Approve the Amended and Restated Agreement with Athens Incorporating SB 1383 Implementation and Beautification Services: a. Authorize the City Manager to negotiate and execute an agreement with Arakelian Enterprises, Inc. DBA Athens Services for the collection of solid waste, recyclables, yard waste and other compostables, in such final form as approved by the City Attorney, incorporating the updated terms relating to beautification services as detailed below; and b. Approve, by a majority vote of the entire City Council, dispensing with formal bidding procedures and requirements in connection with the procurement of bus shelter maintenance and graffiti abatement services by finding that it would be uneconomical to comply with such requirements and it would promote the public interest to dispense with such requirements, in accordance with the requirements of Section 2-330(b) of the West Covina Municipal Code; or 3. Continue Negotiations with Athens Services to implement SB 1383; or 4. Provide alternative direction. Prepared by: Stephanie Sikkema, Finance Director Additional Approval: Pauline Morales, Assistant City Manager Fiscal Impact FISCAL IMPACT: The fiscal impact will be dependent on the direction provided by City Council. • If the City Council elects to add the beautification services to Athens contract, the City would receive public benefits totaling over $1.8 million annually for City improvements (may include street sweeping) ($1,200,000), bus shelter cleaning ($90,000), and for graffiti removal services ($550,000). • If the City Council elects to add SB 1383 services to the Athens contract only, the fee would be passed down to the residents and the City will continue to receive $300,000 annually. • If the City Council elects to hire a consultant including the SGVCOG ($151,614), the City would utilize monies in Fund 129 (AB 939) to cover the costs. Attachments Attachment No. 1 - Draft Agreement with Athens - SB 1383 Implementation and Beautification Services Attachment No. 2 - Draft Agreement with Athens - SB 1383 Implementation Only Attachment No. 3 - Athens - SB 1383 Proposal Attachment No. 4 - Athens Services Contract Term Comparison Attachment No. 5 - RFP #11-015 Proposal Summary Attachment No. 6 - SGVCOG Food Recovery Program Proposal CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety Enhance City Image and Effectiveness Achieve Fiscal Sustainability, and Financial Stability WHEREAS, this Agreement amends and restates, and as a result, supersedes and replaces in its entirety all prior agreements or understandings between the City and the Contractor. All such prior agreements and understandings are null, void and of no further force or effect unless this Agreement is deemed null, void and of no force or effect, in which case, the agreements and understandings in force or effect prior to the Effective Date herein, shall apply; and WHEREAS, City desires to maintain maximum flexibility in this Agreement to meet rapidly changing solid waste disposal and diversion laws and regulations. NOW, THEREFORE, in consideration of the premises and of the covenants and conditions hereinafter contained, the City and the Contractor mutually agree as follows: ARTICLE 1. DEFINITIONS; DELEGATION OF AUTHORITY A. Whenever any term used in this Agreement has been defined by the provisions of Chapter 12 of the West Covina Municipal Code, the definitions contained in said Code shall govern the meaning of such words for the purpose of this Agreement, unless any such word is otherwise sWecifically defined herein or unless it is obvious from the context hereof that another "dn is necessarily intended. B. The administration of this Agreement shall be under the supe i ion an of the City Manager's office and the actions specified herein shall be taken by the City Manager or his or her designees (the "City Manager") unless otherwise stated or specified. 0 C. As used herein, "Recyclables" shall mean items which cot}d have been removed from the solid waste stream by the household or commercial business for sale or donation, but have not been so removed at the source or have been placed for collection by the Contractor. The Parties understand that, although called "Recyclables" in the Agreement, the California courts have determined that such "Recyclables" become "Solid Waster' only when placed for collection under this Agreement and not removed from the waste stream and sold. D. "Annual Rate Adjustment" means the annual adjustment of Maximum Service Rates by 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). E. "Brown Goods" means electronic equipment such as stereos, televisions, computers, VCR's and other similar items collected from Residential Premises. F. `Bulky Item" shall have the meaning as defined in Section 5.3 of this Agreement. For the avoidance of doubt, Bulky Items are large items of Solid Waste of a nature and type that would not typically fit in a regular collection cart -sized container. Bulky Items require special handling due to their size but can be collected and transported without the assistance of special loading equipment (such as forklifts or cranes) and without violating vehicle load limits. Further, Bulky Items do not include abandoned automobiles and other vehicles, Construction and Demolition Waste, bags of Solid Waste, or Exempt Waste. 2 insurance and shall not contribute with it. The City, its officers, agents, employees and volunteers shall be named as additional named insureds. C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officials, employees, agents, or volunteers. d. Coverage shall state that the Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability and in no case shall the insurer's total liability be increased. 2. All Coverage. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, modified, or canceled by either parry, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City Risk Manager. D. Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best's Insurance Reports of size category VII or lar er�ating classification of A or better.Nrq o L E. Requirements Nimiting. Requirements of specs is cove g ea s or li s contained in this Section are not intended as a limitation on coverage, limits or o er req�, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusionlf other coverage, or a waiver of any type. If the Contractor maintains higher limits than the mini ums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in exces f the sp ified minimum limits of insurance and cov e sh e avail ab o the C' 1 , i F. Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. G. Required Endorsements 1. The Workers' Compensation policy shall contain an endorsement in substantially the following form: Thirty (30) days prior written notice shall be given to the City of West Covina in the event of cancellation, reduction in coverage, or nonrenewal of this policy. Such notice shall be sent to: City Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 34 2. The Commercial General Liability and Automobile Liability policies shall contain endorsements or policy terms in substantially the following form: a. Thirty (30) days prior written notice shall be given to the City of West Covina in the event of cancellation, reduction in coverage, or non -renewal of this policy. Such notice shall be sent to: City Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 b. "The City of West Covina, its officers, employees, agents, and volunteers are additional insureds on this policy." C. "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by the City of West Covina, including any self - insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." d. "Th iry, officers, , its oce � agents, em"the v ante s shall e named as additional named insureds and such inclusion shall not ay' rightssne as s any claim, demand, suit or judgment brought or recovered against the Contractor. The policy shall protect Contractor and the City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase the Contractor's liability as set forth in the policy beyond the amount shown or to which the Contractor would hav� been liable if only one party had been named as an insured." H. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shalhbe endorsed to waive subrogation against the City, its elected and appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. Delivery of Proof of Coverage. Simultaneously with the execution of this Agreement, Contractor shall furnish the City Risk Manager endorsements of each policy of insurance required hereunder, in form and substance satisfactory to City. Such endorsements shall show the type and amount of coverage, and effective dates and dates of expiration of policies. If the City Risk Manager so requests, copies of each policy, together with all endorsements, shall also be promptly delivered to City. Renewal certificates will be furnished periodically to City Risk Manager to demonstrate maintenance of the required coverage throughout the term of this Agreement or any extension thereof. J. Other Insurance Requirements. The Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor 35 from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self -insured reserves is made by any third person against the Contractor or any subcontractor on account of any occurrence related to the Agreement, the Contractor shall promptly report the facts in writing to the insurance carrier and to the City Risk Manager. If Contractor fails to procure and maintain any insurance required by this Agreement, the City may take out and maintain, at the Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any monies due the Contractor. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contractor a ninety (90)-day advance written notice of such change, subject to the special rate adjustment provisions set forth in Section 8.2. 9.3 Faithful Performance Bond Simultaneously with the execution of this Agreement, Contractor shall file with the City Manager a bond, payable to the City, securing the Contractor's faithful performance of its obligations under this Agreement. The principal sum of the bond shall be one hundred thousand dollars ($100,000). The bond shall be executed as surety by a corporati authorized to issue surety bonds in the State offMalifornia, with a financial condition and record- of service satisfactory to the City Manager. The bond shall be in the form approved by the City Manager and City Attorney. in the alternatile, the Contractor may deposit a letter of credit or obtain and open a certificate of deposit in the name of the City to be held to secure this faithful performance. A N If there is an event of default as set forth in Section 11.1, City may give to the Contractor at least fifteen (15) days written notice of such event of default by the Contractor. Such notice shall specify precisely the events constituting the default. Upon the failure or refusal of the Contractor to cure the default with respect to such items thus specified within the time specified in such written notice, City may to 'nate this Agreement and declare the amount of such bond forfeited to City. u _d� r ■ wA6"` ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE 10.1 General In addition to any and all other legal or equitable remedies, in the event that the Contractor, for any reason whatsoever, fails, refuses or is unable to collect, transport or deliver to the appropriate solid waste management facility any or all Solid Waste, Recyclables, or Organic Waste, which it is required by the Agreement to collect and transport, at the time and in the manner provided in this Agreement, for a period of more than seventy-two (72) hours, and if, as a result thereof, Solid Waste, Recyclables, or Organic Waste should accumulate in the City to such an extent, in such a manner, or for such a time that the City Manager should find that such accumulation endangers or menaces the public health, safety or welfare, then the City Manager shall have the right, but not the obligation, without payment to Contractor upon twenty-four (24) hours prior written notice to Contractor during the period of such emergency as determined by City Manager, (1) to cause to be performed such services itself with its own or other contracted personnel without liability to Contractor; and/or (2) to take possession of any of all of Contractor's land, equipment and other property used or useful in the collection and transportation of Solid Waste, Recyclables, or Organic 36 Waste, and to use such property to collect and transport any Solid Waste, Recyclables, or Organic Waste generated within the City which Contractor would otherwise be obligated to collect and transport pursuant to this Agreement. Notice of the Contractor's failure, refusal or neglect to collect and transport solid waste may be given orally by telephone to the Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty-four (24) hours of the oral notification. Contractor further agrees that in such event: (1) It will fully cooperate with City to effect the transfer of possession of property to the City for City's use. (2) It will, if the City Manager so requests, and to the extent feasible, keep in good repair and condition all of such property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. The City agrees that it assumes complete respons�the proper and normal use uch equipment and facilities while in its possession. k (4) Contractor shall provide all necessary billing information and Contractor and City Ma er shall determine how to bill, in what a ounts and the distribution of amounts received. The City's exercise of its rights under this does not constitpte a taking of private property for which compensation must be paid ut 4cise of the City's police power, (2) will not create any liability on the part of City to Contrand (3) does not exempt Contractor from the indemnity provisions of Section 9, which are meant to extend to circumstances arising under this Section, provided that Contractor is not required to indemnify City against claims and damages arising from the sole negligence of City, its officers, employees, agents, or volunteers acting under this Section, and (4) does not terminate this Agreement, unless termination occurs under other provisions of this Agreement. 10.2 Duration of City's Possession City has no obligation to maintain possession of Contractor's property and/or continue its use in collecting and transporting Solid Waste, Recyclables, or Organic Waste for any period of time and may, at any time, in its sole discretion, relinquish possession to the Contractor. The City's right to retain temporary possession of Contractor's property, and to provide solid waste collection services, shall continue until Contractor can demonstrate to the City Manager's reasonable satisfaction that it is ready, willing and able to resume such services. 37 ARTICLE 11. DEFAULT AND 11.1 Events of Default Each of the following shall constitute an event of default ("event of default") hereunder: A. Contractor fails to perform its obligations under this Agreement, as it may be amended from time to time, and: (1) if the failure or refusal of Contractor to perform as required by Section 9.2 of this Agreement is not cured within two (2) business days after receiving notice from the City specifying the breach; (2) if the Contractor has failed or refused to collect, transport, process, or dispose Solid Waste Recyclable Materials, or Organic Waste in accordance with Sections 5.3, 5.4 and 5.5 and the failure or refusal is not cured within five (5) business days after receiving notice from the City specifying the breach; or (3) in the case of any other breach of the Agreement, the breach continues for more than thirty (30) calendar days after written notice from the City Manager for the correction thereof, provided that where such breach cannot be cured within such thirty (30) day period, Contractor shall not be in default of this Agreement if Contractor shall have commenced such action required to cure the particular breach within ten (10) calendar days after such notice, and it continues such performance diligently until completed. EW B.4% Any representation or disclosure made to City by Contra connection with or as an inducement to entering into this Agreement or any future amendmen ti this Agreemeit, which proves to be false or misleading in any material respect as of the time the representation or disclosure is made, whether or not any such repsentation or disclosure appears as part of this Agreement. C. There is a seizure or attachment (other than a prejudgment ttachment)[aterially r levy affecting possession on, the operating equipment of Contractor, including withoit its vehicles, maintenance or office facilities, or any part thereof of such proportion as t impair Contractor's ability to perform under this Agreement and which cannot be releas nded, ofbtherwise lifted within seventy-two (72) hours excluding weekends and holidays. D. Contractor files a voluntary petition for debt relief under any applicable bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in or consents to the appointment of or taking of possession by a receiver, liquidator, assignee (other than as a part of a transfer of equipment no longer useful to Contractor or necessary for this Agreement), trustee (other than as security for an obligation under a deed of trust), custodian, sequestrator (or similar official) for any part of the Contractor's operating assets or any substantial part of Contractor's property, or makes any general assignment for the benefit of Contractor's creditors, or fails generally to pay Contractor's debts as they become due or shall take any action in furtherance of any of the foregoing. E. Any court having jurisdiction enters a decree or order for relief in respect of the Contractor, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or similar law now or hereafter in effect, or Contractor consents to or fails to oppose any such proceeding, or any such court enters a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Contractor or for any part of the m Contractor's operating equipment or assets, or order the winding up or liquidation of the affairs of Contractor. F. Contractor fails to provide reasonable assurances of performance as required under Section 11.6. 11.2 Rieht to Terminate Upon Default Upon a default by Contractor, after any required notice, the City Council shall have the right to terminate this Agreement without need for any hearing, suit or legal action. The Contractor then shall forfeit $100,000 from its performance bond, certificate of deposit or letter of credit to City as liquidated damages. The City and Contractor agree that as of the time of execution of this Agreement it is almost impossible to ascertain the extent of any damages incurred by City from Contractor's breach of this Agreement and that the sum of $100,000, to be withheld from the performance bond, Certificate of Deposit or letter of credit represents a reasonable amount in light of such circumstances; except that this amount shall not be a limitation under Section 7.4. 1n Possession of Propertv Upon TerminatioA In the event of termination for default, the City shall have the right to 17sionof e in the provision of services enumerated under this Agreement any and all of Contractor's land, equipment, and other property (excepting Solid Waste) used or useful in the collection and transportation of solid waste and the billing and collection of fees for these services. The City shall have the right to retain the possession of such property until other suitable arrangements can be made for the provision of solid waste collection services, which may include the award of an agreement of another waste hauling company, but in no case for more than forty-five (45) days. If the City retains possession thereof after the period of time for which Contractor has already been paid by means of bills issued in advance of providing service for the class of service involved, the Contractor shall be entitled to the reasonable rental value of such property. Contractor shall famish the City Manager with immediate access to all of its business records related to its billing of accounts for services. 11.4 City's Remedies Cumulative: Specific Performance The City's right to terminate the Agreement under Section 11.2 and to take possession of the Contractor's properties under Section 11.3 are not exclusive, and the City's termination of the Agreement shall not constitute an election of remedies. Instead, they shall be in addition to any and all other legal and equitable rights and remedies which the City may have. By virtue of the nature of this Agreement, the urgency of timely, continuous and high quality service, the lead time required to effect alternative service, and the rights granted by City to the Contractor, the remedy of damages for a breach hereof by Contractor may be inadequate and City shall be entitled to injunctive relief. 39 11.5 Excuse from Performance The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other "acts of God," war, civil insurrection, riots, acts of any government (including judicial action), pandemics, and other similar catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from performance hereunder. Labor unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other concerted job action conducted by Contractor's employees or directed at Contractor is not an excuse from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events; provided, that in the case of labor unrest or job action directed at a third party over whom Contractor has no control, the inability of Contractor to make collections due to the unwillingness or failure of the third party to provide reasonable assurance of the safety of Contractor's employees while making collections or to make reasonable accommodations with respect to container placement and point of delivery, time of collection or other operating circumstances to minimize any confrontation with pickets or the number of persons necessary to make collections shall, to that limited extent, excuse performance and provided further than the foregoing excuse shall be conditioned on Contractor's cooperation in making collection at different times and in different loeetions.14%. The Party claiming excuse from performance shall, within two (2) days after Party has note e of such cause, give the other party written notice of the facts consti tang such cause and asserting its claim to excuse under this Section. Notwithstanding, Contract n the vent of a catastrophic event shall comply with City's emergency preparedness plan. In the event that either Party validly exercises its rights under this Section, the Parties h y waive any claim against each other for any damages sustained thereby. Notwithstan the foregoing, howe (1) the existeintracto? Iof an excuse from perform will not affect the City's rights undefArtic , and (2) if is excused from ng its obligations hereunder for any of the causes listed in this Section for a period of thirty (30) days or more, other than as the result of third party labor disputes where service cannot be provided for reasons described earlier in this Section, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions of Section 11.3 will apply. 11.6 Ri¢ht to Demand Assurances of Performance If Contractor (1) is the subject of any labor unrest including work stoppage or slowdown, sickout, picketing or other concerted job action; (2) appears in the reasonable judgment of City to be unable to regularly pay its bills as they become due; or (3) is the subject of a civil or criminal investigation, charge, or judgment or order entered by a federal, state, regional or local agency for violation of a law relating to performance under this Agreement, and the City Manager believes in good faith that Contractor's ability to perform under the Agreement has thereby been placed in substantial jeopardy, the City Manager may, at his option and in addition to all other remedies the City may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, is such form and substance as the City Manager believes in good faith is reasonably ,m necessary in the circumstances to evidence continued ability to perform under the Agreement. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City Manager, such failure or refusal shall be an event of default for purposes of Section 11.1. ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES 12.1 Relationship of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of the City nor as a partner of or joint venture with the City. No employee or agent of Contractor shall be or shall be deemed to be an employee or agent of the City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste, Recyclables, and Organic Waste collection services performed under this Agreement, and all persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, subcontractors and agents. Neither Contractor nor its officers, employees, subcontractors and agents shall obtain any rights to retirement benefits, workers' cgWpensation benefits, or any other benefits whic�accrue to s it employment with the City. Contractor shall not, at any time in any manner, represent that it or any oliaglents or employees are in any manner a or employees of City. Contractor shall secure, at its sole expense, and be responsible f y and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Contractor and its officers, agents, and employees, and all business licences, if any are required, in connection with the services to be performed hereunder. 12.2 Compganceeth�l�w In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all applicable laws of the United States, the State of California, the County of Los Angeles and the City and with all applicable regulations promulgated by federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended during the term of this Agreement and any extension thereof. 12.3 Governin¢ Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County. 41 12.5 Assignment Except as provided in Section 12.6, neither Party shall assign its rights nor delegate or otherwise transfer its obligations under this Agreement to any other person without the prior written consent of the other Party. Any such assignment without the consent of the other Party shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this Section, "assignment" shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of 50% or more of the outstanding common stock of Contractor, unless the change results merely in one of several prior owners increasing his or her ownership; (iii) any reorganization, consolidation, merger recapitalization, stock issuance or re -issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Contractor or any of its shareholders is a party which results in a change of ownership or control of 50% or more of the value or voting rights in the stock of Contractor unless the change results merely in one of several prior owners increasing his or her ownership; and (iv) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership. For purposes of thcSection, the terra "proposed assignee" shall efer to tlw1" an,#j* -- --t—r successors) in interest pursuant to the assignment. Contractor acknowledges that this Agreement involves rendering a vital service to City's residents and businesses, and that the City Council has selected Contractor to perform the services specified herein based on (1) Contractor's experience, skill and reputation for conducting its solid waste and recycling management operations in a safe, effective and responsible fashion, at all times in keeping with applicable waste management laws, regulations and good waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. The City Council has relied on eac}r of these factors, among `hers, inl jioosinj Contrac to erform the services to be rendered by —Contractor under this Agreement. If Contractor requests City's consideration of and consent to an assignment, the City Council may deny or approve such request in its complete discretion. No request by Contractor for consent to an assignment need be considered by the City Council unless and until Contractor has met the following requirements: A. Contractor shall undertake to pay City the amount, as determined by the City Manager, of its reasonable direct and indirect administrative expenses, including but not limited to consultant costs and attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment; B. Contractor shall furnish City Manager with audited financial statements (audited, if possible) of the proposed assignee's operations; C. Contractor shall furnish City Manager with satisfactory proof: (i) that the proposed assignee has at least five (5) years of solid waste management experience of a scale equal to or 42 exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any citations or other censure from any federal, state or local agency having jurisdiction over its waste management operations due to any significant failure to comply with state, federal or local waste management laws and that the assignee has provided with City Manager with a complete list of such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its solid waste management practices in accordance with sound waste management practices in full compliance with all federal, state and local laws regulating the collection and disposal of waste, including hazardous waste as identified in Title 22 of the California Code of Regulations; (v) of any other information required by City Manager to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner. At the point of transition, Contractor will cooperate with City and subsequent contractor(s) or subcontractors to assist in an orderly transition which will include Contractor providing route lists and billing information. In connection therewith, Contractor acknowledges that the provisions of Public Resources Code Sections 49520-49523 have no application to this Agreement and agrees, to the extent such sections may have application, to waive whatever rights they may afford. E Any application for a franchise er shall be governed by the following n ons: 01). Any application for a franchise transfer shall be made in a manner prescribed by the City Manager. The application shall includ a deposit in an amount determined by the City Manager sufficient to meet the costs identifie bove. Additional bills in excess of the amount deposited shall be supported with evidence of 1c, expense or cost incurred. The applicant shall pay such bills within (30) days of receipt. Any s amounts are over and above any franchise fee specified in thisAgreement. JL 12.6L Subcontractinractin Contractor shall not engage any subcontractors for collection of Solid Waste, Recyclables, and Organic Waste without the prior written consent of the City Manager. All of the requirements of Section 9 shall apply to subcontractors. 12.7 Binding on Successors The provisions of this Agreement shall inure to the benefit of and be binding on the successors and permitted assigns of the Parties. 12.8 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any persons other than the Parties to it and their representatives, successors and permitted assigns. 12.9 Waiver The waiver by either Party of any breach or violation of any provision of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent 43 G. "Biohazardous" or "Biomedical Waste" means any waste which may cause disease or reasonably be suspected of harboring pathogenic organisms; included is waste resulting from the operation of medical clinics, hospitals, and other facilities processing wastes which may consist of, but are not limited to, human and animal parts, contaminated bandages, pathological specimens, hypodermic needles, sharps, contaminated clothing and surgical gloves. H. "City Beautification Services" means the following services provided by Contractor to City: (i) Bulky Item collection as specified in Section 5.5(B); (ii) graffiti removal services as specified in Section 5.6(D); and bus stop maintenance as specified in Section 5.6(E). I. "City Improvement Fee" means the fee paid by Contractor as specified in Section MA J. "Construction and Demolition Waste" or "C&D" means Solid Waste consisting of building materials, packaging and rubble resulting from construction, remodeling, repair, and demolition operations on pavement, residential, commercial or industrial premises, buildings, and other structures, and land clearing operations. K. "Contamination" means any of the following: (i) discarded materials placed in any container intended for recyclable materials that are not identified as acceptable Recyclables for such container; (ii) discarded materials placed in any container intended for Organic Waste that are +t identified as acceptable for Organic Waste for such container; (iii) discarded materials placed in any container intended for Garbage are not identified as acceptable for such container; and (iv) any other items or substances, including but not limited to Exempt Waste, that are not Solid Waste, Recyclables or Organic Waste placed in any container not designated for such use. Contamination shall be determined by Contractor's visual or digital inspection. J L. "CPI" or "Trash CPI" means the Consumer Price Index for Trash and Garbage Collection (CUUROOOOSEHG02), U.S. City Average (not seasonally adjusted), as published by the United States Department of Labor, Bureau of -Labor Statistics, or an equivaleneindex approved by mutual agreement in the event said index is no longer published. M. "CPI-U" means the Consumer Price Index for all urban consumers in the Los Angeles -Long Beach -Anaheim- area, non -housing, or an equivalent index approved by mutual agreement in the event said index is no longer published. N. "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. O. "Exempt Waste" means Biohazardous or Biomedical Waste, Hazardous Waste, Sludge, automobiles, automobile parts, boats, boat parts, boat trailers, internal combustion engines, lead -acid batteries, dead animals, and those wastes under the control of the Nuclear Regulatory Commission. breach of violation of the same or any other provision. The subsequent acceptance by either Party of any monies which become due hereunder shall not be deemed to be a waiver of any preexisting or concurrent breach of violation by the other Party of any provision of this Agreement, except the payment of monies so accepted and only to the extent of monies so owing. 12.10 Contractor's Investigation The Contractor has made an independent investigation (satisfactory to it) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.11 Condemnation In addition to its rights under Section 10.1, the City fully reserves any rights it may otherwise have to acquire the Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right to eminent domain. 12.12 Notice All notices, demands, requests, proposals, approvals, consents and other communications which th% Agreement requires, authorizes or contemplates shall all',Tcept as otherwise specifically provided, be in writing and shall be effective when personally delivered to a representative of the parties at the address below or deposited in the United States mail, first class postage prepak, ai Ar City Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 Eftowirns Services P.O. Box 60009 14048 Valley Boulevard City of Industry, CA 91715-0009 The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this Section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail. 12.13 Representative of the Parties Upon execution of this Agreement, the Contractor shall, by letter, designate in writing a responsible officer who shall serve as the representative of the Contractor in all matters related to the Agreement and shall inform the City Manager in writing of such designation and of any limitations upon his or her authority to bind the Contractor. The City may rely upon actions taken m by such designated representative as action of the Contractor unless they are outside the scope of the authority delegated to him/her by the Contractor as communicated to City Manager. ARTICLE 13. MISCELLANEOUS PROVISIONS 13.1 Entire Agreement This Agreement, including the Exhibits, represents the full and entire Agreement between the parties with respect to the matters covered herein. 13.2 Section Headings The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 13.3 References to Laws A4kreferences in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recodifiedunless other specifically provided. 13.4 Interaretation IL Thisgreement shall be interpreted and Pa egardless of the degree to which ei and neither for nor against either in its drafting. 13.5 Amendment This Agreay not be modified or 3mded in any res ect eby a writing si d by the Parties. Y 13.6 Severability If any provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 13.7 Counterparts This Agreement may be executed in counterparts each of which shall be considered an original. 13.8 Exhibits Each of the following Exhibits is attached hereto and incorporated herein and made a part hereof by this reference. Exhibit A — Automated Service Program 45 Exhibit B — Frequency and location of City bins and collection Exhibit C — MRF/Solid Waste Transfer Facility Exhibit D — Recycling Public Education program Exhibit E — Current rates [SIGNATURE PAGE FOLLOWS.] IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written. DATED: CITY OF WEST COVINA David Carmany City Manager ATTEST Lisa Sherrick Assistant City Clerk I APPROVED AS TO FOO Thomas P. Duarte City Attorney DATED: ARAKELIAN ENTERPRISES, INC. Ron Arakelian, III Executive Officer EXHIBIT A AUTOMATED SERVICE PROGRAM Unless otherwise modified by Section 5.17 of the Agreement, all solid waste and recyclables in residential black automated containers, commercial bins and roll -offs will be processed at the materials recovery facility. Recyclables will be extracted from the waste stream, prepared for shipment and delivered to the market place. Contractor shall divert salvageable materials to achieve landfill diversion goals, as set out in Section 7.4 of the Agreement. Exhibit A-1 EXHIBIT B WEST COVINA CITY SERVICES Location/Number of Free Service Bins/Barrels Account Street # Street Name Equipment City of West Covina 2021 Alwood Street 3YD Galster Park 1620 Aroma Drive 3YD Fire Station 1801 Azusa Avenue 3YD Woodgrove Park 300 Brentwood Drive 3YD Cameron Park 1305 Cameron Avenue 3 YD Cameron Park 1305 Cameron Avenue 3YDR Heritage Park 3510 Cameron Avenue 3YD Maverick Dev Group Baseball 300-330 Citrus Street 3 YD Cortez Park 2441 Cortez Street 3YD Fire Station 2441A Cortez Street 3 YD Senior Citizen 2501 Cortez Street 3 YD orte Little League 1501A Del Norte Street 3 Fo d Center *all 4032 Ellesford Avenue 3 I West Covina 1444A Garvey Avenue 3 West Covina City Hall 1444A arvey Avenue 3 DR West Covina City Hall 1444A Garvey Avenue 3YDR West Covina City Hall 1444A Garvey Avenue 3YDR Communication Center 1444B Garvey Avenue 3YD Orangewood Park 1615 Merced Avenue 3YD Administration Building 1717- Merced Avenue 3 YD Walmerado Park 625 Merced Avenue 3 YD Palm View Park 1340 Puente Avenue 3YD Palm View Park � Puente Avenue 3YDR Palmview Little League 1340A Puente Avenue 3YD Fire Station & Library 1435 Puente Avenue 1.5YD Del Norte Park 1500 Rowland Avenue 3YD Friendship Park 3740 Sentous Avenue 3YD Shadow Oak Park 2121 Shadow Oak Drive 3YD Shadow Oak Park 2121 Shadow Oak Drive 3YDR Fire Station 2610 Shadow Oak Drive 1.5 YD Fire Department & City Yard 819 Sunset Avenue 1.5YD West Covina City Yard 825 Sunset Avenue 1 OYD West Covina City Yard 825 Sunset Avenue 1 OYD West Covina City Yard 825 Sunset Avenue 3YD West Covina City Yard 825 Sunset Avenue 40YD Orangewood League 851 A Sunset Avenue 3YD Bus Shelter Baskets Various Exhibit B-1 EXHIBIT C MATERIALS RECOVERY FACILITY/SOLID WASTE TRANSFER FACILITY ("MRF") Contractor shall accept all Solid Waste and Recyclables in the waste stream collected under this Agreement at its MRF facility. Contractor shall process all materials suitable for recycling and shall transport the residue for recycling and shall transport the residue to a landfill, transfer station or other permitted disposal site. Contractor has the right to recycle and reuse any materials collected under the Agreement and retain any payments for such materials. Contractor, at its sole expense, shall at all times maintain the MRF in good condition and operating order and make any and all necessary repairs. Contractor shall comply with all applicable laws and regulations in operation of the MRF. Upon notice to Contractor, not more frequently than annually, City may audit or cause to be audited MRF performance or City diversion rates and other AB 939 requirements. Exhibit C-1 MI-121TI-3wil PUBLIC EDUCATION PROGRAM Contractor and City shall work together to meet the following objectives of the Education and Public Information Component of the SRRE by providing funding, staff and programs: 1. Develop and send to subscribers an explanation of the new MRF/system and the reasons for source reduction and recycling. (Contractor) 2. As part of the Residential Sector Promotional Campaign, develop quarterly mailers to be approved by City and included in the billings targeting recycling issues including, but not limited to composting of green waste, operation of a MRF & MRF tours, markets for recycled products, and hazardous waste handling, and other special services. (City to provide initial mailer, Contractor to print; goal is Multilingual.) 3. As part of the Residential Sector Education and Information Program, schedule and publicize community meetings, cable shows, displays and MRF tours. (Residential includes "multi -family.") 4. is * partofthe School Curricula Program, design and Mentats 11 school districts (and school clubs upon request) within Weste children and staff on reduction, reuse and recycling. Contra for also shz chedule MRF tours. 5. As part of the Nonresidential Program, prepare afid distri te, at least quarterly, bulletins, mailers and articles, directly or through community business organizations. Such information shall describe the methods and benefits of diversion for all generators, as well as specific generators such as offices, retail, hospitals, contractors and %gardening. Fos, example, targeted/programs � for landscapers/gardeners would deal with recycling or composting yard waste and could train them in community green waste programs. Develop and present programs to local groups, such as an instructional video tape for target generators and to train representatives who can train others on waste evaluation and diversion. 6. Provide information on the West Covina website providing diversion, recycling, reuse and recycled market information. Evaluate the effectiveness of its programs and modify programs as necessary given that feedback. Exhibit D-1 EXHIBIT E Maximum Service Rates [Athens to insert] Exhibit G-2 38, NSZ��,, P-R--O-po. 111112 - y_.. '.ate j. •t y !n - P. "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). Q. "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. R. "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). S. "Food Waste" means food scraps and trimmings and other putrescible waste that i is from food pro4ction, preparation, storage, consumption, or handling. For the avoidanfe of doubt, Food Waste includes, without limitation, meat, fish, and dairy wastes; fruit and vegeta e wastes; grain waste; and compostable food -contaminated paper products. T. "Garbage" means all putrescible and non-putrescible solid, sem" lid and associated liquid waste, as defined in Californi Pub ' Resources Code section 4019 arbage does not include Recyclable Mat dials, Organi ast arge Items, or Exempt Waste U. "Green Waste" or and Wast ' means Solid Waste consisting of a getative waste generated from the maint cc or alteration of residential, commercial, o dustrial premises including, but not limite o, grass clippings, leaves, tree trimmings, prun' brush, weeds, flowers, herbs,'and holiday t es. V. "Gross Receipts" means any and all revenue received from billings, and compensation in any form, received by Contractor or subsidiaries, parent companies or other affiliates of Contractor, for the collection and transportation of Solid Waste pursuant to this Agreement, in accordance with generally accepted accounting principles, including, but not limited to, customer fees for collection of Solid Waste, without subtracting City fees. Sales revenue from the sale of Recyclable Materials to third parties is excluded from Gross Receipts for the purpose of calculating Franchise Fees. W. "Hazardous Waste" means a waste, or combination of wastes as defined by Code of Federal Regulations, Title 40. Hazardous Waste also includes Household Hazardous Waste. X. "Household Hazardous Waste" means that waste resulting from products purchased by the general public for household use which, because of its quantity, concentration or physical, chemical or infectious characteristics, may pose a substantial known or potential hazard to human health or the environment when improperly treated, disposed or otherwise managed, or, in combination with other Solid Waste, may be infectious, explosive, poisonous, caustic, toxic, or 0 Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy CALIFORNIA'S SHORT-LIVED CLIMATE POLLUTANT REDUCTION STRATEGY What You Need To Known What is SB 1383? SB 1383 was adopted by the California Legislature in 2016 and establishes statewide targets to reduce emissions of short-lived climate pollutants (SLCP) such as methane gas. California's Department of Resources Recycling and Recovery (CalRecycle), a California Environmental Protection Agency department, is the lead agency responsible for implementation. Organic waste such as excess food, yard trimmings, paper, and cardboard make up half of what Californians dump in landfills. When these materials break down, they emit powerful greenhouse gases and pollutants, including methane. SB 1383 is intended to reduce these short- lived climate pollutants. How Will SB 1383 Impact My City? This unfunded mandate will impact everyone in the State of California. The law mandates new recycling programs, additional outreach and education, ongoing contamination monitoring, enhanced reporting and data management, and may require a change to your waste collection program. Jurisdiction responsibilities also include: • Evaluating your City's readiness and capacity to implement SB 1383, including organics collection, recycling and edible food recovery capacity. • Providing organic waste collection to all residents and businesses, which means providing service automatically and not relying on the generator to subscribe. • Monitor waste stream contamination levels and issue violations to residents and businesses who continue to contaminate. • Establish edible food recovery program that recovers edible food from the waste stream. • Conducting outreach and education to all impacted parties, including generators and edible food recovery organizations. Procuring recycled organic waste products like compost, mulch, renewable natural gas (RNG), and electricity. Inspecting and enforce compliance with SB 1383, including assessing penalties to non -compliant generators. • Maintaining accurate and timely records of SB 1383 compliance. How Will SB 1383 Impact Ratepayers? Organic waste includes green waste, food waste, and food soiled paper. Organic material collected will need to be transported to a processing facility for composting. Residential ratepayers will be required to subscribe to organics recycling service. All businesses will need to subscribe to organics service. Large food waste generators will be required to recover edible food from their waste stream for donation to participating food recovery organizations How will SB 1383 Be Enforced? Jurisdictions are required to monitor contamination and impose penalties from $50 up to $500 for those waste generators that are not properly recycling organic waste. CalRecycle can issue penalties to jurisdictions, up to $10,000 per day, for failure to comply. Why is a Food Recovery Program Required under SB 1383? Californians send 11.2 billion pounds of food to landfills each year, some of which was still fresh enough to have been recovered to feed people in need. While billions of meals go to waste, millions of Californians don't have enough to eat. To reduce edible food waste and address food insecurity, surplus food still safe for consumption will instead go to food banks, soup kitchens, and other food recovery organizations to help feed Californians in need. Athens Services SB 1383 IMPLEMENTATION TIMELINE January 1, 2020 Reduce the statewide disposal of organic waste by 50%from the 2014 level (target: 11.5 million tons) January 1, 2024 May require local jurisdictions to impose penalties for noncompliance on generators. Food Recovery for Tier 2 businesses. January 2, 2025 Recover 20% of currently disposed edible food for human consumption. September 2016 Governor Edmund (Jerry) Brown Jr. set methane emissions reduction targets for California (SB 1383 Lara, Chapter 395, Statutes of 2016) in a statewide effort to reduce emissions of short- lived climate pollutants January 1, 2022 Regulations take effect and are enforceable. Food Recovery for Tier 1 Businesses. January 1, 2025 Reduce the statewide disposal of organic waste by 75%from the 2014 level (target: 5.7 million tons) Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy ABOUT ATHENS SERVICES // The Athens Way CuLture After more than 60 years, Athens Services remains a family -owned and operated company built on an unwavering commitment to service, its employees, and to the environment. At the core of its success is The Athens Way, a business philosophy that underscores a company culture which: • Emphasizes superior customer service • Hire and develop great people while promoting workplace safety • Fosters environmental stewardship through the use of clean technology to increase recycling and landfill diversion Founded by Jack Arakelian in 1957 as a trash hauling company with just two trucks, today Athens Services is the largest privately held environmental services company in Southern California. With more than a quarter of a million customers in 50 cities and county areas, a fleet of nearly 1,000 vehicles, and a portfolio of facilities that includes three state -of -the art materials recovery facilities and a composting facility, Athens Services' future is as bright as its storied past. SERVICE I PEOPLE I ENVIRONMENT TABLE OF CONTENTS // 0- 2 3 5 m WASTE STREAM ANALYSIS OUTREACH & EDUCATION CONTAMINATION MONITORING: ROUTE AUDITS DATA MANAGEMENT & REPORTING SUPPORT PROCUREMENTSUPPORT FOOD RECOVERY SUPPORT ATHENS'FACILITIES �� Athens Services Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy El 1. WASTE STREAM ANALYSIS // Compliance SB 1383, California's Short -Lived Climate Pollutant Reduction Strategy, will drive numerous changes across the state. The shift from a residential green waste collection program to an organics collection program, where food waste and food soiled paper are commingled in the green waste container, and transported to a composting facility, will be one of the larger, more noticeable changes for your constituents. Over the past several months, Athens has been analyzing your current waste stream and conducting waste characterizations of all of the residential refuse/mixed waste loads in your City. These characterizations have provided us with the understanding of how much organic material is currently in those streams, so we can establish a baseline and goals for ensuring that material gets placed in the organics container. These characterizations are instrumental in determining how much outreach and education will need to be conducted to help drive customer behavior to minimize contamination. Each of the residential routes in your City were evaluated, and the results from those waste characterizations are available upon request. For a more detailed explanation on the methodology used for our waste characterizations, please refer to Appendix A. Also included in Appendix A for your reference, is a detailed description of the acceptable materials that will be allowed in the organics, recycle and refuse containers. Learn more about how Athens does waste characterizations for the City of Los Angeles recycLA program. Athens Services 2. OUTREACH & EDUCATION // Effective, results -driven approach to education In order to comply with SB 1383, Athens will need to enhance the existing outreach and education program in your City. This is a crucial step to help drive the change in customer behavior. Similar to the outreach that is provided under AB 1826, which targets specific customers based on the amount of waste generated, outreach under SB 1383 will be applicable to all customers. Athens will be providing additional team members in your City to help with these efforts. The Athens outreach program will include in -person, print and electronic outreach in your City. Athens will also track, record, manage and store the data gathered from these outreach efforts, to assist the City in reporting back to CalRecycle. The Athens outreach team will also provide support to the City through assessing and verifying the circumstances of businesses that may qualify for a waiver. Jurisdictions are required to establish a waiver program and has final authority on approving waivers for service. Athens will verify, through our outreach team, whether a customer qualifies for a De Minimis, Physical Space, or Collection Frequency Waiver. Athens is unable to issue the final determination, as SB 1383 places that responsibility on the jurisdiction, but we can provide the work needed to help the City with that process. For a more comprehensive description on our overall outreach approach, please see Appendix B. Ie19:1A► .'1[Illji111A ;E1111.1"T; :Ill)I �,14AN:14 a to] 11 &N In -person • Presentations & Aiij Training L® . Waste Assessments • Community Events & Meetings Digital/eletronic L' L.� • Interactive Recycling Website (Recycl ist) • Instructional Videos • Social Media Print ,�j_® • Signage �: • Container Labeling • Newsletter Articles Lucas Arias, Recycling Coordinator Athens Team Member Since 2019 Athens Outreach Team 2018 Tabling Event Angie Park, Organics Recycling Coordinator Athens Team Member Since 2017 Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy 3. CONTAMINATION MONITORING: ROUTE AUDITS // Route auditors SIB 1383 mandates regular monitoring of the collection routes, to observe and track contamination in the waste stream. The law provides two options for monitoring: (1) periodic waste characterizations at the processing facility; (2) periodic reviews and audits of the collection routes. Athens has determined the most cost effective approach for compliance with this part of the mandate is by conducting ongoing route reviews. Athens will provide quarterly route reviews for commercial and residential sectors, to monitor contamination. We will conduct these audits by performing a hands-on visual check, and will document our findings and capture photos of the containers being audited. This information will be housed in our database, and will be available for the City to review as needed. See more about Athens' route audit process and contamination monitoring in Appendix C. ROUTE AUDIT PROCESS: Athens Services 4. DATA MANAGEMENT & REPORTING SUPPORT // Dedicated reporting team to oversee data management of recycling efforts SB 1383 requires jurisdictions to monitor contamination, issue notices of violations and report this information to CalRecycle. Athens can provide support with this through our enhanced reporting process. Athens has developed the infrastructure needed to capture the data required under SB 1383. This includes all the information gathered through our outreach efforts, which includes data such as backhaul/selfhaul programs, waiver information, and container and waste stream photographs. In addition, the data gathered for contamination monitoring through our proposed route reviews will also be tracked by Athens. This will eliminate the need for your City to have to manage and store this data. This data will be available, as needed, to the City for reporting and compliance purposes. As part of the outreach, monitoring and reporting the Athens team will be providing, we will have adequate data to support the City with enforcement actions administered. For more information on how Athens can support with data management and reporting, please refer to Appendix D. 44, Athens Services S81383 Audit (POC) 2,099 960 16 1.67 Total Population Total Audited Total contaminated contaminated % P to Emed111 '..P. mVM Le K111uo w EawPmnx ay Mr>uMclllt wuk auw l fullaJJ,m YK "'t e�,ira. .-, EO FILUD eoMaMlNanoNA rr, eor CUW �Fulrv,i - _- _ ro anevazr NO W xwl �.... rz n H2O'UE ta lma9oz]EVWIwa W Null I T 1I /Y lVY1Edld VPKR UK UUVINA WNIAMINAI IUN VIII UKh. I]F ]VA NA 2 Ca91]24 N954jpg EUeFA�Imge:/evwlEx. vFS W 'Al I lvNn[V[ a@IUVI.1 wrvlgMlxalUry NLm.E AX IWn N., green 2 ssn t5% 144- IONaT IAN_Ima� (Wgll]15 CVW]1]1SCONTPMINAMIN ]S% 1W1 PlaxKmrsh ox n A c""]u CN VInL1so1"y" nx I n nasxcaxla -io:un iax_I I CVJIU9815 AVECOVINiG cVOW391£coN.1NAMIN U1% SL% PlazK antl rmahosc. iM1u 91R2 >ICNNc1 1.11 ]W FYENBUW n MINAMON Fld,r No W NO25%1 NLi55Y1 cv,,IiS menNi 75x IM, T,— VICNRE.l51d32.11ry Contamination _ n�eY M1rt]O Wed per Route Ildx Participation Map le a _ U S Eamw Xx/ EN,w!N.ry ln„!w,. Ilmmx W IAE% EEiono9aMv GaXCOa4 w. glary 11R i3 Nnndp 190.9094 p FCMmBIN MCOIIr� ,�!aa, O r tlresd.> m .OV. Em•.�N E� • C P"�t. usx wQa —1mx we-1.1 C zo JO W 1W 1zo laC Oz %A. 9 aim �nl o2oz1M eo. Er sb Audit report from a similar City. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy 5. PROCUREMENT SUPPORT // Procurement SIB 1383 requires jurisdictions to procure recycled organic products on an annual basis. CalRecycle has developed a calculator to help jurisdictions determine how much material would need to be procured. Athens will help your City comply with this requirement through the use of renewable natural gas (RING) utilized in our collection vehicles and through the compost produced at American Organics. Over the years, Athens has invested in significant RING and composting infrastructure in preparation for upcoming regulations. This has prepared us to help your City meet procurement needs through RING and compost. Please refer to Appendix E for additional details on how Athens can support your City's Procurement requirements. I Athens Services 6. FOOD RECOVERY SUPPORT // Educating Food Generators on SB 1383 In addition to the reduction of organics disposal, SB 1383 establishes an additional target that no less than 20% of currently disposed edible food is recovered for human consumption by 2025. Food service establishments will be required to work with a food recovery organization. Starting in 2022, Tier 1 edible food generators must arrange to recover the maximum amount of their edible food that would otherwise go to landfills and they must maintain food donation records. As a waste hauler, Athens scope of work is typically focused on the "back of house" operations, where the waste gets placed into the containers we haul. Food recovery activities take place prior to the material coming to the "back of house", or to the enclosure. However, Athens is able to provide support with the City's food recovery program by providing the outreach needed for food generators subject to this requirement. Athens will work with food generators, as part of the site visits and outreach we provide, to inform and advise customers how they can develop a food recovery program. Athens will also work with the City to help identify Tier 1 and Tier 2 customers as well as identify potential food recovery partners. A full description of how Athens can provide food recovery support to your City is included in Appendix F. exhibit any of the characteristics of ignitability, corrosivity, reactivity, or toxicity as per California Code of Regulations Title 22, Division 4.5, Chapter 11, Section 66261.3. Y. "Illegal Containers" means those commercial bins or containers for the temporary accumulation of Solid Waste resulting from temporary activities on any premises, including but not limited to waste from the demolition or construction of a building, that are authorized for use by City or Contractor in violation of the Municipal Code. Z. "Multilingual" means more than two languages, including English, Spanish, and Mandarin, or any other languages as mutually agreed upon by the Parties. AA. "Municipal Code" means the West Covina Municipal Code. BB. "Organic Waste" shall have the meaning set forth in Public Resources Code Section 42649.8, and for the avoidance of doubt includes Food Waste, Green Waste, nonhazardous wood waste, and food -soiled paper waste that is mixed in with Food Waste. CC. "Organic Waste Processing Facility" means a Contractor -selected commercial facility permitted by the State of California which accepts and processes, by com ostin or other pe&issible methods, 6rganic Waste for diversion from landfill disposal. DD. "Residential Premises" means single family dwellings and milltiffamil ellin s of four units or less. EE. "SB 1383" means Senate September 19, 2016, which added Sections 3 and Safety Code, and added Chapter 13.1 (c( 30 of the Public Resources Code, establishin effort to reduce emissions of short-lived cli and replaced from time to time. I 1383 of 2016 approved by the Governor on 0.5, 39730.6, 39730.7, an j 39730.8 to the Health nencing with Section 42652) to Part 3 of Division aethane emissions reduction targets in a statewide pollutants as amended, supplemented, superseded, FF. "Sludge" means the accumulated solids, residues, and precipitates generated as a result of waste treatment or processing, including wastewater treatment, water supply treatment, or operation of an air pollution control facility, and mixed liquids and solids pumped from septic tanks, grease traps, privies, or similar disposal appurtenances or any other such waste having similar characteristics or effects. GG. "Solid Waste" means all putrescible and non-putrescible solid, semisolid, and liquid wastes, including Garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, Construction and Demolition wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, Exempt 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), as amended from time to time, and unless specified separately from Solid Waste in this Agreement, includes Brown Goods, Construction and Demolition Debris, Food Waste, Garbage, Green Waste, Bulky Items, Organic Waste, Recyclables, and White Goods. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy 7. ATHENS' FACILITIES // Utilizing Innovative Technology Athens has built the most advanced sustainable green waste and organics composting facility in the region. American Organics processes more organic waste in a shorter period while producing the highest quality, certified -organic, contaminant -free compost. We do this better than any other facility in Southern California. Additionally, this facility reduces thousands of metric tons of greenhouse gases (GHGs) annually by diverting organic waste from landfills. The compost produced at American Organics benefits Southern California by diverting organic waste and reducing GHGs. Athens has invested hundreds of millions of dollars in building and improving materials recovery facilities (MRFs) to help municipalities meet diversion goals and prepare for future recycling regulations. Our Sun Valley MRF is renowned for its innovative technology, impeccable safety record, and green building certification. A short distance away, Athens is expanding and enclosing Crown Recycling, one of the most comprehensive MRFs in the area. Upon completion, the $50 million renovation will increase facility capacity to 6,700 tons per day (TPD) of organic material, construction and demolition, and mixed solid waste. Our Valley MRF, located in the City of Industry, sorts up to 3,000 TPD. This facility was the first Athens MRF constructed, and has continued to be on the cutting edge of innovation, helping Athens adapt to new mandates like SB 1383. In collaboration with Komar Industries, Athens recently developed the Organic Separation Press (OSP). The OSP is the first system of its kind to recover organic liquid from waste for reuse. Using a large auger screw, the OSP presses waste to separate nutrient -right organic liquid. The liquid is harvested and transported to a wastewater treatment facility to be converted into renewable natural gas. All of the Athens facilities are prepared to meet the requirements of SB 1383. This includes, but is not limited to, RDRS reporting, data management, contamination monitoring, load checks and safety practices as outlined in the final regulations published November 2020. Athens Services APPENDIX A Waste Stream Analysis To analyze and better understand the composition of your City's refuse/mixed waste stream, Athens conducted waste characterizations of your residential routes. Under current law, it is acceptable to place food waste in the trash. Under SB 1383, food waste needs to be removed from the trash bin and placed in the organics container. These recent waste characterizations helped Athens identify how much organics (food waste and green waste) is currently in your trash stream. Approximately 200-400 pounds of material were sampled from each load. From that sampling, the Athens team worked to identify the various organics commodities within that load. Each commodity type was identified, labeled and photographed. The team was able to quantify, how much of each of the organic commodities were in the load sample. This process takes roughly 3-4 hours per load sample. This ensures that we are accurately able to identify and categorize materials. Below is an image that illustrate this process. The characterizations are designed to identify the volume of organics placed in this stream. The results are used to identify a benchmark and establish goals for implementing a residential organics recycling program in your City. Based on the established goals, we can determine resources needed to be put forth for education and outreach to transition organics into the green waste container program. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy APPENDIX A Waste Stream Acceptable Materials Athens will provide compliance for your City by collecting residential green waste, food waste and food soiled paper in the organics (green) container. Acceptable materials for the recycle (blue) and trash (black) barrel will be communicated to our customers through our outreach program. Below is a listing of acceptable materials for each of these waste streams. Green Container Acceptable Items Green Waste • Grass clippings • Flower & hedge trimmings • Leaves & branches • Lumber, scrap wood, & plywood types (not painted or treated) • Weeds Food Scraps (Any putrescible matter produced from human or animal food production, preparation, & consumption activities. No produce stickers.) • Bread, rice, & pasta • Cheese & dairy • Coffee filters • Flowers & herbs • Fruits & vegetables • Meat, bones, poultry, seafood, & soft shells (e.g. lobster, crab, & shrimp) Food -Soiled Paper (All items must be 100% plant -fiber based with NO petroleum, wax, or bio-plastic coating, liner, or laminate. Must be soiled ONLY with food and/or drink liquids. *No bathroom tissue, toilet paper, or feminine products.) • 100%fiber based, compostable to -go containers & serving -ware • Egg cartons (paper) • Food -stained paper • Paper napkins & kitchen towels* • Paper food boats • Paper packaging • Paper plates & cups • Pizza boxes Non -Acceptable Organics (Please place in the trash.) • Rags, clothing, or other cloth/textiles ("plant -fiber" means paper, not textiles.) • Bio-solids or bathroom waste, including tissues or bathroom paper towels. • Disposable diapers • Pet waste • Tea bags and tea bag wrappers • Lint • Hard shells (e.g. clams, mussels, & oysters) • Cacti, succulents, and palm fronds *Athens does not accept paper towels and/or napkins used to clean surfaces due to the use of nonfood related chemicals and potential toxins. Athens Services Black Container Acceptable Items Acceptable materials in the black container include: • Disposable diapers • Empty aerosol cans • Pet Waste • Unusable clothing & fabric • Tea bags and tea bag wrappers • Lint • Hard shells • All foam • Garden hoses & plastic tarps • Bubble wrap • Latex and plastic gloves • Empty motor oil • All receipts • Bathroom & facial tissues • Gift wrap with plastic or metal • Hardback books • Laminated or plastic coated paper • Padded or Tyvek-type envelopes • Photographs • Candy & protein bar wrappers • Chip bags • Disposable coffee cups & lids • Juice and food pouches • Bags with a mix of metal & plastic Blue Container Acceptable Items Acceptable materials in the blue container include: • Paper products not included in the organics stream • Printing and writing paper • Commingled recyclables such as aluminum/tin foil and trays (clean) • Aseptic containers, juice boxes and milk cartons • Cans (aluminum, bi-metal, and tin) • Cardboard • Envelopes • Glass bottles and jars • Junk mail; magazines • All metal • Newspaper • Office paper • Paperback books • Paper grocery bags • Clean plastic bags, film plastic (grocery, dry cleaning) • Plastic containers (1-7) • Shredded paper (bagged) • Wrapping paper (with no metal) Container Colorization FOAM JIM 14 I W A Athens will work with your City to determine the best approach to phase in new, SB 1383 compliant containers. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy APPENDIX B Outreach and Education Athens Services currently provides outreach and education for customers subject to AB 341, AB 1826 and AB 827. SB 1383 will have an impact on all customers, and much effort is needed to help customers with this transition. Athens Services can provided enhanced outreach and education efforts to help the City comply with SB 1383. Outreach will be provided through print, in -person and electronic communication on an annual basis. Outreach materials will be translated into the appropriate languages spoken in your community. Athens will also keep copies of all outreach provided and will track and document which customers received the outreach. This includes tracking all social media activity. Content that will be communicated to customers include: 1. How to properly sort waste 2. How to prevent organic waste generation 3. Methane reduction benefits 4. Public health and safety & environmental impacts 5. Edible Food Recovery 6. Self -haul requirements (if applicable) Below is a summary of the Athens outreach plan for your City. Recycling Coordinators Athens' Recycling Coordinators (RC's) are trained recycling exports with a niche for conducting outreach and education. Recycling Coordinators will lead the outreach efforts in your City by utilizing a variety of tools to engage with customers. Whether in -person or virtually, recycling coordinators will ensure the community has the right resources for a successful recycling and organics program. RC's will provide site visits to all commercial and multifamily customers and conduct waste assessments, which will include: • Comprehensive waste audit • Detailed waste management and recycling strategies • Customer personnel training • Effective signage, location placement, and maintenance suggestions • Container types, sizes, and pick-up frequency recommendations Many customers cannot be onsite or do not feel comfortable participating in onsite assessments, given concerns that have arisen due to COVID-19. Our RC team can conduct virtual waste assessments where we engage the customer over the phone or through a Zoom meeting to go through the site visit's details and our findings. We ask the customer several questions about their business or multifamily site, gather and document this information for future use, and make recommendations on service levels. Athens Services We also have the ability to video record our onsite waste assessments for clients, when necessary. The video will include suggestions and be available to the appropriate parties. We will also follow up with additional input and resources. The RC and client can review the video together or separately. This approach is essential for our multifamily accounts, which might have out-of-state managers or have COVID-19 (or other health concerns) limitations. As part of our customer visits, customers will receive recycling signage and training on additional resources. Athens' recycling resources are available on www.athensservices.com/outreach/for download, promoted via social media, distributed with e-mail blasts or mailed based on the customer's preferred method of contact. Outreach & Education App Athens has developed an Outreach and Education application "App" to help track customer interactions. The application was designed specifically for use in the field by Recycling Coordinators. The app collects customer information, along with additional vital information pertaining to the waste and recycling program. We will use the data to target specific customers for outreach on recycling, organics, contamination, and edible food recovery. Data Collected by the Outreach and Education App • Contact information, service and billing address, service levels, and routing information • Date and Time of trainings • GPS link to service and bin location • Photos of bin locations, enclosures, and inside the containers. • Container information, including lock lids, custom bin sizes, and measurements • Site information, including any safety hazards, gate codes, or special access instructions. • Customer implementation of recycling and organics signage and interior containers for employee, tenant, and customer use. • Reasons why customer refused outreach material or services offered. • Contamination training, including participants and pictures • Types of material in waste stream the customer throws away and estimated volumes. • Customer's interest and previous attendance in recycling and organics training • AB 1826 and SB 1383 compliance questions, including if they have any implementation issues, refuse service, and if they are or should be participating in edible food recovery. The data collected can be utilized for regulatory compliance of a multiple recycling mandates. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy Print & Electronic Tools Our marketing team has perfected digital marketing for community engagement. Today, Athens' social media averages an industry -leading 17%follower engagement. This figure is not only higher than the industry average but also higher than the national average. We will utilize this high engagement to connect with the community and other prominent organizations to convey important dates and service information. Athens is currently active on the following platforms: O Instagram Blm Linkedln W Twitter 91 Facebook N6e YouTube While we prioritize digital marketing to minimize paper consumption, we realize that some customers prefer mailers and handouts. Therefore, our marketing team will also develop community hard copy collateral to help educate your residents and businesses. Athens will provide quarterly newsletters to both residential and multifamily customers by mail in their bill or electronically. Newsletter content will include service notifications and tips on proper sorting and usage. These newsletters will contain legislative information, as well as general information about the City's overall waste and recycling program, including food recovery programs. Athens will continue to distribute our annual legislative brochure as a billing insert, by mail or electronically. Athens has developed video content containing various waste and recycling training topics, and we continue to grow our content library. These videos will be available to all customers to help further provide support as needed. Interactive Ultimate Recycling Guide Athens' "What Goes Where Guide" is your interactive zero -waste guide for correctly reusing, recycling, and composting unwanted items. In collaboration with Recyclist, Athens has developed this innovative guide to help customers and communities identify the proper stream for more than 350 materials types. The interactive zero -waste guide provides: • User friendly and promotes recycling • Fully customizable and tailored to City needs • Illustrate tips on reusing, reducing, and recycling of 300+ everyday items • Educational content about disposal options, safe handling, and alternative recycling options • Local information about drop-off and collection programs • Work seamlessly across devices with no download required • Provide mobile -friendly information with SEO (Search Engine Optimization) • Allow users to stay up-to-date with accurate information • Update easily and quickly given editorially supported services • Quantify utilization and traffic with Google Analytics What Goes Where j A — Alt "—�'ir ■e ♦ i; a: Athens Services APPENDIX C Contamination Monitoring: Route Audits SB 1383 places the responsibility of contamination monitoring on the jurisdictions. Athens is able to help with this requirement by providing quarterly route reviews of organic collection routes. Reviews are conducted to monitor contamination levels in waste stream. Athens has a trained team of professional auditors dedicated to route reviews. Athens recently developed new technology that enhances the process. Route Review Process On a quarterly basis, the Athens will audit approximately 20% sampling of organic routes, both residential and commercial. A residential route has approximately 1,000 customers per day, therefore we will target a sampling of roughly 200 customers per day per route. Commercial organics routes have roughly 130 stops per day. There we will target approximately 30 customers per route per day. Route Review App Route reviews are completed utilizing a custom app to help with this process. The app is similar to the Outreach and Education app. The Route Review app enables our auditor team to track customers volumes and contamination levels. The app guides auditors through a series of questions. The app also has the ability for our team to upload photos of audited locations and containers, which will be made available to the City for CalRecycle reporting purposes. Below is a screen shot of the route review app: Athens Services: SIB 1383 Short -Lived Climate Pollutant Reduction Strategy Route Review Dashboard In addition to the Route Review app, Athens has developed a user friendly dashboard that summarizes and populates the data collected from the route reviews. This dashboard contains information on the total number of customers audited, total number of containers contaminated, the contamination percent, as well as a map of the areas audited. This dashboard will be made available to the City, for regular monitoring. Athens will store and manage this data on behalf of the City and provide the data needed for the City to submit to CalRecycle for required reporting. 1112111-11, Athens Services SB1383 Audit (POC) 2,059 960 16 1.67 Total Population Total Audited Total Contaminated Contaminated % Pane S6dule Mrc�:pet e..v�ry • _ _ _ _ [O/LL:o •.t Ep. vm�..i Cir <„e..n Ce...e C. 4 ul AJ.e X,,E kcai nl�u�u EQ f111ED%<OMGMINA_nON%J'}e Or _ WeGn Y O o .i %I eBI H]3. PO rvvil ION PIC lvyW M 1UNINMPIION YItIVRE /YA ]V% Null EVE ION YES W 75% 1 PItsmz. CVKtup[C1 CUVIN4xuECON .IgMmFuury Wuuxk. ee% tW'% Nw grcm bexn I WINAI PN Si CVf/JD1il5L4MAM1NeigN 15% 1. PlasK mM CVaM1i15 Gw INA EA Ynzz plcrvnG4]RSpg 7sz nazNu¢Iw row.mwx_Imy�/ IW5 tI I AVE CONNA CA CV0 . I.CON,AM1.WnON iS% 1. Plash ana CMhoma ihu ry No III N,U 1 1 917)2 %[NRC162E56jp, IONA AN Ii� PO E 1 E,IeaY NO W N,A11 i v. f VI« . 11IK1f4NT4MIN4n4N IMY i 711 ... FNAf1AY Contamination Rrt 7R w r per Route 1ze% Participation Map U a Ism ., • Ea,on w.r EnmwxM' EE FMevdry Id2% g EL'wno9^ew [Fehr Ono Its ' ' ' NI IOPOB% 3 ECmwBtN ..1111 OPY r ME neWaY E[ryrtvx 5l E e� P • usz T _ wn.ary t� y wpneales�t V `— �e� m rynm.v ew IKE 3 ea DR ... 0, o 1 4,%EII— & weJj Notice of Violation The information gathered from the quarterly route reviews will help Athens' Outreach Team target outreach efforts to minimize contamination, and will provide the backup validation to issue violation notices as required under SB 1383. This notice will be issued on behalf of the City to the generator who is contaminating the waste stream. It will include information regarding the contamination and will include photographic evidence of the violation. Notices will be emailed or mailed based on the customer's preference. Athens Services APPENDIX D Data Management & Reporting Athens Services utilizes its Soft -Pak customer database to monitor and report activity. Utilizing customized tracking codes specific to your City, Athens will monitor outreach and education and incidents of contamination. Using Athens' fully customized recycling coordinator mobile app, and route review app, Athens can quickly and accurately report site visits, waste assessments, and service level adjustments in our Soft -Pak database. Container Contamination Reporting: SB 1383 requires jurisdictions to provide record keeping for container contamination. Athens will provide the support needed to the City for this requirement. Athens will keep copies of the following, which will be available to the City upon request: 1. A description of the jurisdiction's process for determining the level of container contamination. 2. Documentation of route reviews conducted. 3. Copies of all notices issued to generators with prohibited container contaminants. 4. Documentation of the number of containers where the contents were disposed due to observation of prohibited container contaminants. 5. The number of hauler route reviews conducted. 6. Description of the process for determining the level of contamination. 7. Summary report of non -collection notices and/or contamination processing fee assessment notices issued, which for each notice shall include the date of issuance, customer name, and service address. 8. A record of each inspection and contamination incident, which shall include, at a minimum: • Name of the Customer • Address of the Customer • The date the contaminated Container was observed • The staff who conducted the inspection • The total number of violations found and a description of what action was taken for each • Copies of all notices, and enforcement orders issued or taken against generators with prohibited container contaminants • Any photographic documentation or supporting evidence 9. Documentation of the total number of containers disposed of due to observation of prohibited container contaminants. 10. A list of all customers assessed contamination processing fees reported separately by residential, multi- family, and commercial premises customers and including the customer name, customer address, and reason for the assessment of the contamination processing fee, and the total number of instances contamination processing fees were assessed in the month and the total amount of fees collected in the month. HH. "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) 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. II. "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 -site 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. JJ. "White goods" means enamel -coated major appliances, such as washing machines, water heaters, stoves, and ref ig ators. REPRESENTATIONS A CONTRACTOR Status 3 OF Contractor is a corporation duly organized, validly existing and in good standing under the laws of the State of California. It is qualified to transact business in the State of California and has the corporate power to own it properties and to carry on its business as now owned and operated and as required by this Agreement. 2.2 Corporate Authorization Contractor has the authority to enter into and perform its obligations under this Agreement. The Board of Directors of Contractor (or the shareholders if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The persons signing this Agreement on behalf of Contractor have authority to do SO. ARTICLE 3. TERM OF AGREEMENT 3.1 Effective Date and Term of Agreement A. The term of this Amended and Restated Agreement shall be for twenty-five (25) years, commencing on November 1, 2012 and expiring on October 31, 2037; provided, however, that commencing on the first anniversary date of November 1, 2013 and on each anniversary date thereafter, a one-year extension shall be applied to said Agreement so that the term of the 0 Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy Complaint Reporting Athens will maintain a record of all SB 1383 non-compliance complaints and responses to track the following information: 1. Total number of complaints received and total number of complaints investigated. 2. Copies of documentation recorded for each complaint received, which shall at a minimum include the following information: • The complaint as received • The name and contact information of the complainant, if the complaint is not submitted anonymously • The identity of the alleged violator, if known • A description of the alleged violation; including location(s) and all other relevant facts known to the complainant • Any relevant photographic or documentary evidence submitted to support the allegations in the complaint 3. Copies of all investigation reports, which shall include at a minimum: • The complaint as received • The date Athens investigated the complaint • Documentation of the findings of the investigation • Any photographic or other evidence collected during the investigation • Athen's recommendation to the City on whether or not the entity investigated is in violation of SB 1383 based on the investigation Generator Waivers Athens will provide a report that documents each generator waiver request. This report will identify the generator name and service address, the type of waiver requested, and the status of the waiver (accepted, denied, pending). Outreach Reporting 1. A copy of all education and outreach materials provided to generators, but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media postings. 2. A record of the date and to whom the information was disseminated or direct contact made, in the form of a list that includes: the generator's name or account name, the type of education or outreach received; the distribution date, and the method of distribution. 3. The number of organic waste generators and commercial edible food generators that received information and the type of education and outreach used. 4. Athens will maintain a record of the date, a copy of the any mass distribution mailings or billing inserts, and the type and number of accounts that received the information. 5. A copy of electronic media, including the dates posted of: social media posts, email communications, or other electronic messages. Athens Services APPENDIX D (cont.) Data Management & Reporting 6. Records of all technical assistance efforts conducted, including: • The name and address of the customer/generator receiving technical assistance, and account number, if applicable. • The date of any technical assistance conducted and the type of technical assistance, including, but not limited to: site visits, waste assessments, compliance assessments, direct outreach, workshops, meetings, events, and follow-up communications. • A copy of any written or electronic educational materials distributed during the technical assistance process. 7. A copy of all special event reports submitted to the City in accordance with Section 4.4.6 of the Agreement. Food Recovery Program Support 1. The total number of generators classified as Tier land Tier 2 commercial edible food generators located within the City. 2. The number of food recovery services and food recovery organizations located and operating within the City. 3. The number of generators participating in the edible food recovery program. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy APPENDIX E Procurement Support Commencing January 1, 2022, a jurisdiction shall annually procure a quantity of recovered organic waste products that meets or exceeds its current annual recovered organic waste product procurement target as determined by CalRecycle's procurement calculation. Athens has confirmed it can assist your City in meeting the procurement requirements through the renewable natural gas utilized in our collection vehicles and through providing compost to your City. Renewable Natural Gas Athens has eliminated 10,549 metric tons of climate -altering greenhouse gas emissions since 2012, which is the equivalent of: • 26,176,000 miles driven by an average passenger vehicle • 1,700 Homes Powered by electricity for one year • 1,187,000 Gallons of gasoline consumed Investing in Clean Technology and Renewable Fuels Our collection fleet is currently over 90% natural gas vehicles (NGVs) — the cleanest refuse vehicle commercially available. In 2008, we committed to never adding a diesel vehicle to our collection fleet. We are committed to retiring all diesel vehicles and making our entire collection fleet 100% natural gas vehicles by 2023. Renewable Fuels Over four years ago, Athens began investing in renewable natural gas (RNG)—a low carbon, renewable fuel that is made from existing organic waste streams. As of 2019, renewable natural gas now composes 89% of our total natural gas fuel use, which will continue to increase in the coming years. Why Does Athens Use Natural Gas Vehicles? • Reduce Emissions: The newest natural gas engines produce 90% fewer NOx emissions than the EPA's current heavy-duty emission standard. • Minimize Maintenance: NGVs have no messy Diesel Particulate Filter (DPF) regeneration or waste and have no diesel exhaust fluid. • Quieter in Communities: NGVs have engines 10 decibels quieter than their diesel equivalent, reducing noise pollution in neighborhoods. • Minimal Downtime: NGVs can run 600+ miles of daily operation without compromise. • Safer for Residents and Drivers: When compared to traditional diesel vehicles, natural gas vehicles provide a safer experience for drivers and residents by eliminating exposure to diesel fumes and odor. • Utilize Locally Produced Fuel: NGVs, when fueled with RNG, utilize a renewable fuel produced in -state. Athens Services What is Renewable Natural Gas? Renewable natural gas (RNG) is a renewable fuel made by harnessing methane emitted by organic waste. The methane can be harnessed from food and green waste, wastewater treatment plants, landfills, dairy farms, and forest management. The methane is captured, cleaned, and injected into the existing natural gas pipeline so that it can be transmitted and stored anywhere in the state. Once processed, RNG is a drop -in replacement for conventional natural gas and can be used to fuel natural gas vehicles. T »> II■all »> »> R Distribution Network 9ND station O O RNG Production & Distribution M 0 1 " C(( (4s Wast~W tar 41494 m BloeHtanatlon O Dalry Landfill Agriculture Composting Athens recently invested in a multi -million dollar redevelopment effort of our American Organics facility in preparation of the upcoming SB 1383 mandate. To read more about our facility and how it operates, please refer to the attached article https://athensservices.com/wp-content/uploads/2020/08/CASP-White-Paper- Final.pdf. American Organics American Organics is another facility in the Athens family that is on the cutting edge of tech innovation. Located in Victorville, the site recently completed major renovations at the 700 tons per day facility, with the ability to divert 85% of organic material. The redesigned facility was converted from a traditional windrow, outdoor windrow composting system to a Covered Aerated Static Pile (CASP) system. The renovation included a 22,000-square-foot, covered processing center that will process 50 tons per hour on a fully automated processing line. American Organics material is Certified Organic by CDFA. It is OMRI certified, ensuring that both Organic and Conventional operations can utilize it, and thus our material is available to 100% of users within the category. We are a member of the United States Compost Council and maintain certification using their authorized third - party laboratory for analytical testing or labs. These labs are a critical tool for product evaluation and quality. Athens Services: SB 1383 Short -Lived Climate Pollutant Reduction Strategy APPENDIX F Food Recovery Support Athens can provide support to the City with their Food Recovery program. Below is a summary on how Athens can partner. No later than January 1, 2022, Athens will identify all commercial customers that meet the definition of Tier 1 and Tier 2 Commercial Edible Food Generators and provide a list of these customers to the City, which shall include: • Customer name • Service address • Contact information • Tier One or Tier Two classification • Type of business (as it relates to the Tier One and Tier Two Commercial Edible Food Generator definitions). Athens will work with the City to help identify food recovery partners that can provide support to Tier 1 and Tier 2 customers. The list of qualified food recovery partners will be placed on the Athens food donation webpage, for customers to access. You can view this information at www.athensservices.com/fooddonation/. At least annually, Athens provide Commercial Edible Food Generators with the following information: • Information about the City's Edible Food Recovery program • Information about the Commercial Edible Food Generator requirements • 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 • Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste Athens will also provide the education information required by SB 1383 by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to commercial businesses. An example of our food recovery outreach material is included below: rrr�r � 'i. Mp'Mflel�' r�( }TTfTTIT •csN,71 � .: �Q B MILLION wm sweomlMhW aemmrmiM r., mne. n..eMuufmvurvuausnex Athens Services SERVICE I PEOPLE I ENVIRONMENT ATTACHMENT NO.4 Athens Services Contract Term Comparison Year 1.9.399% Increase Year 1-19.399% Increase 7.399% CPI + 2% 7.399 % CPI + 12% Avg Bill: $38.62 to $42.23 Avg Bill: $38.62 to $41.75 Years 2 & Beyond: Trash CPI + 1% Years 2 & Beyond: CPI Year 1 - 11.399% Increase Year 1 - 11.399% Increase 7.399% CPI + 4% 7.399% CPI + 4% Avg Bill: $262.60 to $292.51 Avg Bill: $262.60 to $292.51 Years 2 & 3: Trash CPI + 3% Year 4 & Beyond: Trash CPI + 1% Years 2 & 3 Beyond: CPI Garbage & Trash, U.S. Average All items, L.A. Region Trash CPI February 2021-2022 = 4.1% CPI February 2021-2022 = 7.399% 10% 10% $640,000 $0 Services: min. 100 hours of weekly Graffiti Removal ($550,000) and quarterly Bus Shelter Cleaning & Maintenance ($90,000) $1,200,000 $300,000 + 3 years (to existing clause) = 5 total + 5 years = 7 total ATTACHMENT NO.5 SB1383 Implementation Assistance - RFP #11-015 Proposal Summary Vendor velopment of Implementation 11111F.F.It Task 1: Derw Plan 2MI.ple...t.tion of Plan MIT. sk 3 : Facilitate Consultant will manage implementation of Plan for both Recreate Waste Consultant will prepare Implementation Food Recovery & Organics (Waste assessments, outreach, Consultant will assist City in negotiations with trash hauler Collaborative Plan- Final Draft within 1 month data tracking and management re ort, li fli p p p $gi 045 assessments, quarterly/annual reports r Consultant will manage implementation of Plan for both Consultant will prepare Implementation Food Recovery & Organics (Waste assessments, outreach, Consultant will assist City in negotiations with trash hauler Plan data tracking and management report, lip flip $94 586 "Environmental assessments, quarterly/annual reports r Consultant will manage implementation of Plan for both Consultant will prepare Implementation Food Recovery & Organics (Waste assessments, outreach, Services not included in proposal. Go2Zero Plan data tracking and management report, lip flip $114,760 assessments, quarterly/annual reports i r Consultant will prepare Implementation Assist Athens in implementation. Consultantwill MSW Consultants Plan implement communication, documentation, reporting and Consultant will assist City in negotiations with trash hauler $129 970 evaluation and planning programs. Consultant will manage implementation of Plan for both Consultant will prepare Implementation Food Recovery & Organics (Waste assessments, outreach, Consultant will assist City in negotiations with trash hauler HF&H Consultants Inc Plan data tracking and management report, lip flip $224,795 assessments, quarterly/annual reports r $98,570 Consultant will prepare Implementation Assist City & Athens in implementation. Consultant will Consultant will assist City in negotiations with trash hauler Only gave SEMCO Plan work with Athens to conduct waste assesments, programs, hourly rates ATTACHMENT NO. 6 Environmental Consultants & Contractors June 7, 2022 File No. 010625222 Mr. David Carmany City Manager City of West Covina 1444 W. Garvey Avenue South West Covina, CA 91790 Subject: Revised Proposal to Provide Edible Food Recovery Capacity and Inspection Services Dear Mr. Carmany: The City of West Covina is interested in joining the San Gabriel Valley Council of Government's (SGVCOG) Regional Food Recovery Program. The City has requested a cost proposal from SCS Engineers (SCS) to provide this assistance. SCOPE OF WORK The work to be performed for the City of West Covina will mirror the work conducted by SCS for the SGVCOG participating cities, inclusive of the following: TASK 1: PROJECT MANAGEMENT Task 1.1 Kickoff Meeting The SCS Project Team will conduct a kick-off meeting with SGVCOG staff, and the City of West Covina following approval of the contract to confirm the goals and objectives for the project. SCS staff leaders and their key roles on this project will be introduced, project tasks will be reviewed, expectations of resources needed from the members will be discussed, thoughts and direction from staff will be solicited, and the Schedule and key milestones will be confirmed. This meeting will also establish clear lines of communication and project direction so the SGVCOG members and SCS mutually understand expectations. Deliverables: • Meetingagenda • Meeting minutes and action items • Data needs Task 1.3 Project Management Update Meetings Regular feedback from the project team and City of West Covina is important to the success of the project. Therefore, the Project Team will attend up to two video meetings with the City and SGVCOG representatives to discuss the project deliverables and receive feedback on the project progress. For purposes of the project budget, it is assumed these meetings will be one hour in duration. 438 S. Marengo Ave. Pasadena CA 91101 1 626-792-9593 1 400 Mr. David Carmany June 7, 2022 Page 2 Deliverables Meeting notifications/conference call -in facilitation Meeting agendas Meeting minutes/action items Identify and Confirm Tier 1 and Tier 2 Edible Food Generators (EFGs) and Food Recovery Organizations (FROs) capacities in the City of West Covina TASK 2 - CAPACITY AND COMPLIANCE ASSESSMENT Task 2.1 Food Recovery Agencies and Organizations Capacity Assessment SCS will prepare a comprehensive study of local Food Recovery agencies and their capacity to accept edible food from the City of West Covina. Drawing upon prior projects performed by SCS and its partners, our team will be able to extrapolate information already obtained as part of similar projects with Los Angeles County Public Works. Using a database of food recovery agencies located in Los Angeles County, as well as researching the local area, SCS will compile a targeted contact list of only those agencies local to the City. Our team will attempt to contact each agency up to three times to perform a phone interview that will be used to compile updated information on each agency, including: name, address, contact information, types of food accepted, how food is received/collected, days of week and hours of operation, total weekly capacity, current capacity, existing businesses served, current tracking system, if any, and if contracts are in place. The SCS team will also explain the new regulations related to SB 1383 and provide food recovery organizations a link to more information through the CalRecycle website. We will distribute additional education and outreach materials currently available or developed as part of this contract, including a template food recovery agreement. Based on the capacity study results, the next steps will be to determine if sufficient capacity exists to meet the needs of onboarding Tier 1 and Tier 2 edible food generators. The data obtained from this portion of the project will be compared with the data from Task 2.2, which will provide an overview of the amount of anticipated edible food donations. If it is determined that there is a lack of edible food recovery capacity, for which existing infrastructure will not support, then additional capacity planning will be needed. This next phase of the planning will consist of looking at regional planning in conjunction with the Los Angeles County Public Works efforts for regional capacity. Deliverables Compile targeted food recovery agency contact list. Contact all targeted food recovery agencies to perform survey. Up to three attempts will be made to contact each agency. Assemble database of completed survey data. Agreement shall remain twenty-five (25) years subject to the wind -down provisions of Section 3.1(B). B. Notwithstanding the foregoing, should either Party desire that said one-year renewal and extension provision be terminated, such Party may give the other written notice of intent to terminate at least ninety (90) days prior to any anniversary date of any year which this Agreement is in full force and effect and written notice of termination at least sixty (60) days prior to any such anniversary date. Notwithstanding the foregoing, City shall not provide written notice of intent to terminate at any time prior to August 1, 2027. During the thirty (30) day period following notice of intent to terminate, the terminating Party shall hold at least one meet and confer session in the boundaries of the City or within a five - mile radius from City's City Hall during normal business hours at a time and place proposed by the non -terminating Party. If the notice of termination is given, the one-year renewal and extension provision shall be terminated on the applicable anniversary date. Once the one-year renewal and extension provision is terminated, the remaining term of this Agreement shall be twenty-five (25) years from the date of termination, and this Agreement shall accordingly wind down from this date ("Wind -Down Period"). All other aspects of this Agreement shall remain in full force and effect di4ng the Wind -Down Period, provided, however that in the event that City issues provides, a notice of termination, (i) Contractor shall cease any City Improvement Fee due or owing for t�e remaining term of the Agreement and (ii) City Beauti cation Services shall no longer be provid d by Contractor to City free of charge, and Contra all charge City then -existing rates for City Beautification Services,. C. Notwithstanding any provision in this Agreemen the ontrary, th otice of to ion shall not become effective if the, Parties mutually agree to a prove and cute an ame ent to this Agreement. i 3.1,116 s to Effectiveness oLAntkment am& i The obligation of City to permit this Agreement to become effective and to perform its undertakings provided for in this Agreement is subject to Contractor's satisfaction of each and all of the conditions set out below. A. Accuracy of Representations. The representations and warranties made by Contractor in Article 2 of this Agreement are true and correct on and as of the Effective Date. B. Absence of Litigation. There is no litigation pending on the Effective Date in any court challenging the award or execution of this Agreement or seeking to restrain or enjoin its performance. ARTICLE 4. FRANCHISE 4.1 Grant of Franchise: Scope of Franchise A. Grant of Franchise. The City hereby grants unto the Contractor, and the Contractor shall have throughout the duration of this Agreement, the exclusive right to engage in 7 Mr. David Carmany June 7, 2022 Page 3 Task 2.2 Tier 1 and Tier 2 Edible Food Waste Generators Compliance Assessment SCS will prepare a detailed report of the estimated edible food generated by Tier 1 and Tier 2 businesses located in the City. This task will consist of using the lists provided by the City, including Athens' customers and business licenses, compiling them, and then preparing a target outreach list of those businesses categorized as either Tier 1 or Tier 2. Our team will attempt to contact each edible food generator up to three times to perform a phone interview that will be used to compile updated information on each business, including: name, address, contact information, type and quantity of edible food generated, when food is generated, current food donation policy, if any, current food recovery partner(s), if any, current tracking system, if any, and if contracts are in place. The SCS team will also be explaining the new regulations related to SB 1383 and provide edible food generators a link to more information through the CalRecycle website. We will distribute additional education and outreach materials currently available or developed as part of this contract, including a template food recovery agreement. Once the surveys are complete, SCS will prepare a report detailing the estimated amount of edible food donations within the City. This information will be compared to the capacity data developed in Task 2.1 to analyze if sufficient capacity exists to support estimated donations. Deliverables • Review business lists from the City and compile targeted Tier 1 & Tier 2 contact list. • Contact all Tier 1 & Tier 2 businesses to perform survey. Up to three attempts will be made to contact each agency. • Assemble database of completed survey data. • Prepare survey data executive summary. TASK 3 - PUBLIC OUTREACH Task 3.1 Outreach and Education Using the outreach and education plan prepared previously for the SGVCOG project, we will develop specific materials for the City. As part of the scope of work, we will conduct two educational workshops, and provide flyers to the City for posting on the City's website and other distribtuion. Deliverables • Multilingual outreach and education materials. • Workshop announcements. • Two workshops Mr. David Carmany June 7, 2022 Page 4 TASK 4 - FINAL REPORT Task 4.1 Final Report Deliverable SCS will prepare the draft report, which will include the project overview, our approach to conducting the study, and the results of Tasks 2 and 3. This will include the following: • The results of the capacity analysis of food recovery agencies and organization (Task 2.1). • Results of the Tier 1 and Tier 2 edible food waste generators compliance assessments (Task 2.2). • Education and outreach implementation results. • Recommendations on next steps for SB 1383 compliance. TASK 5 - INSPECTION PROGRAM IMPLEMENTATION Task 5.1 Project Team Coordination For this task, the Project Team will participate in monthly meetings with the City and SGVOCG staff. The meetings will be 30 minutes in length. Task 5.2 Inspection Program Implementation There are two types of inspections that the team will conduct beginning in 2022. The first is an Inspection Review to Tier 1 edible food generators and food recovery services/organizations as identified in Task 2.2. The second is a Complaint Review in response to complaints received that warrant a review in accordance with Section 18995.3, to be provided on an as -needed basis. Beginning January 1, 2024 - if not sooner - the team will conduct Inspection Reviews to Tier 2 commercial edible food generators and as identified in Task 2.2 and begin issuing Notice of Violations to noncompliant entities as determined in Inspection Reviews or realized when responding to a complaint in a Complaint Review. Notice of Violations will not be issued until January 1, 2024, in accordance with the enforcement requirements of Section 18995.3 unless SGVCOG or the City determine that earlier issuance of Notice of Violations for noncompliance is in best interest. Inspection Review Methodology Step 1: Schedule Inspection Review with Entity (Commercial Edible Food Generator/Food Recovery Service/Organization) We will prioritize Inspection Reviews to entities that have a history of noncompliance or have had difficulties in establishing a program. Prioritization will be determined in coordination with project staff, waste hauling staff and food recovery organization/service partners. When scheduling in - person inspections, we will maximize staff time in the field by scheduling visits according to geographical proximity. Step 2: Conduct Inspection Review Mr. David Carmany June 7, 2022 Page 5 The team will utilize data program tracking software, such as Careit, to assess the recorded donation data associated with each entity and compare it with anticipated frequency and quantity of food donations determined through the initial inspection. Any discrepancies identified as unreasonable or suspicious shall be noted and reported back to the jurisdiction. Data input into the Careit software will also be reflected on a paper Inspection Report (developed in Task 5) which will be supplementary to the data tracking fields included on Careit. We will use the Inspection Report and Careit to conduct virtual, phone - or when necessary - in -person reviews to determine whether the entity is compliant with requirements of Section 18991.3 (commercial edible food generators) and Section 18991.5 (food recovery services/organizations). Compliance details, including the specific actions that will be reviewed during the inspection, are provided below in the section titled "Article 10". Step 3: Record Inspection Results/Fallow-up We will use data program tracking software, such as Careit, to record the findings of the review in a format that will be easily transcribed to the Inspection Report format to be used by the agency in annual reporting to CalRecycle. If compliant: If the Inspection Review determines that the entity is in compliance with all requirements of Article 10 and other applicable requirements of the chapter, the team will record the details of the inspection usingthe Careit app and provide those details to SGVCOG on a monthly and annually basis. If noncompliant: If the Inspection Review determines that the entity is not in compliance with all requirements of Article 10 and other applicable requirements of the chapter, the team will work with thejurisdiction to proceed with the issuance of a Notice of Violation (if the SGVCOG/thejurisdiction believes appropriate) -OR-the team may provide verbal notice to the entity in question with recommended revisions to their program, provide educational material, and follow-up for a second inspection within reasonable time (approximately 2 weeks to 30 days). Beginning January 1, 2024 (if not sooner, as deemed appropriate by the SGVCOG), if it is determined that the entity is not in compliance after the second review, the team will notify the reporting jurisdiction and as determined in the Task 5 Implementation, proceed with the process of supporting the jurisdiction with issuance of a Notice of Violation. The methodology for issuing a Notice of Violation is provided below. Complaint Review Methodology Step 1: Schedule Complaint Review with Noncompliant Entity Complaint Reviews will be conducted on an as -needed basis dependent on when complaints are received. Staff will be readily available to receive complaints and will schedule an inspection to check for compliance in response to a complaint within five (5) business days of receipt of Complaint Form. We recommend that Complaint Forms be received by thejurisdiction and forwarded to us in real time or at an interval that is appropriate for agency staff. Alternatively, the City may choose to set up a joint email account for the receipt of complaints for the service areas covered by this engagement. In this case, the team would monitor emails and respond directly to Complaint Form senders within five (5) business days to confirm receipt and course of Mr. David Carmany June 7, 2022 Page 6 action, and additionally schedule an inspection within five (5) business days of receipt of Complaint Form. Step 2: Conduct Complaint Review Inspection The team will conduct an in -person Complaint Review inspection within 90 days of receiving a written complaint. The team will utilize a data program tracking software, such as Careit, to conduct the Complaint Review and will also keep a paper record of the Inspection Report (developed in Task 5). We will use the Inspection Report and Careit to conduct the in -person review and will reference the details of the Complaint Form received, paying particular notice to specific actions the entity may be in violation of. Step 3: Record Complaint Review Inspection Results / Follow-up Within 90 days of receipt of a complaint that would constitute a violation of SB 1383 requirements, our team will notify the complainant of the results of their complaint, if contact information is available. The team will follow a similar methodology as the Inspection Review on the prior page for assessing compliance with all SB 1383 requirements and follow-up (dependent on compliance/noncompliance), as necessary. Data Tracking One potential approach to managing account information, compliance levels, and other relevant data necessary as part of this Task 6 is for the team to utilize a software program like Careit. With this specific tool, the team would create an account for each Tier 1 and Tier 2 generator - and food recovery service/organization - as information becomes available during the Inspection Reviews and identification of generators in Task 2. Each entity account on Careit would be easily accessible by both our staff, jurisdiction staff (if so desired) and the entity (both commercial food generators and food recovery services/organizations). Our team would record applicable data onto the user account to indicate when the inspection was conducted, user information such as whether they have a written food donation contract in place, compliance status, whether educational information was provided, follow-up communication needed, complaints received and the results of such Complaint Reviews, Notice of Violation(s) issued, and/or whether penalties have been assessed. The Careit system specifically is compatible with other data management tracking software that some jurisdictions in SGVCOG may already be using (such as Recyclist). Our team would be available to provide entities with a deep level of technical assistance on this platform, particularly during the initial years of this engagement, with the goal of creating built -out database for each individual entity to logtheir own data over time that can be easily monitored by thejurisdiction or consultant. Our staff will also be available to provide direct assistance to entities in setting up their account, tracking data, and to input an entities' compliance information on behalf of the entity under this project. Notice of Violation Methodology Accordingto Section 18995.4, a Notice of Violation(s) are required to be issued for noncompliance beginning January 1, 2024. In this Task 6, in addition to conducting Inspection Reviews and Complaint Reviews, we will utilize the Notice of Violation form developed in Task 5 to follow-up with noncompliant Tier 1 and Tier 2 commercial edible food generators and food recovery services/organizations. Mr. David Carmany June 7, 2022 Page 7 A potential approach to issuing Notice of Violations, be discussed with SGVCOG as part of Task 5 and executed in this Task 6, may include: • Step 1: Issue Notice of Violation via mail and/or email dependent on available contact information for the noncompliant entity, inclusive of notes and verification information (such as the Inspection Report) • Step 2: Following 30 days of non -responsiveness from the noncompliant entity, staff will make two (2) attempts to contact entity via phone or email and/or in -person, dependent on the availability of contact information and preference of the jurisdiction. • Step 3: Tracking and recording all correspondence and actions taken by the consultant team/jurisdiction and by the noncompliant generator to remedy the violation via a data management program, such as Careit. • Step 4 (if nonresponsive/ entity fails to take necessary action for compliance): Work with the jurisdiction to issue a penalty order, inclusive of financial penalties assessed, necessary steps for compliance, and a date for which future financial penalties will be assessed if action is not remedied by the entity. This approach to issuing a Notice of Violation goes above and beyond sending a letter and entrusting that owners/management staff receive mail delivered to the address on file. By contacting noncompliant businesses via email and phone, noncompliant entities are given access to additional information from staff and an opportunity to clarify the noncompliance issue and next steps, have questions answered, and provide any feedback or concerns to be documented by our staff and consolidated in the Careit app. Article 10. Jurisdiction Edible Food Recovery Programs, Food Generators, and Food Recovery Potential violations that would warrant the issuance of a Notice of Violation in this Task 6 include, but are not limited to, failure to abide by the following requirements of Section 18991.3 for edible food generators: • Adherence to any and all applicable local ordinances developed by the individual city/community. • Recover the maximum amount of edible food that would otherwise be disposed. • Establish a written contract or agreement with a food recovery organization or services to collect edible food for recovery or self -haul to a food recovery organization food recovery. • Keeping a list of food recovery service or organization that collects/receives its edible food. • Keeping a copy of written contracts or agreements for collection of edible food for recovery. Potential violations that would warrant the issuance of a Notice of Violation in this Task 6 include, but are not limited to, failure to abide by the following requirements of Section 18991.5 for food recoveryservices/organizations.• Mr. David Carmany June 7, 2022 Page 8 • Maintain a record of each commercial edible food generator that it provides service. • Track and record the quantity of edible food collected and/or received from each edible food generator per month (in pounds). • Track and record the quantity of edible food transported to each food recovery organization per month, if applicable (in pounds). • Contact information for each food recovery organization that the service transports and/or receives edible food to/from for recovery. As outlined in Section 18995.4, inspections to be conducted as part of this Task 6 do not include an evaluation of whether prohibited container contaminants have been placed in a collection container, as prohibited in Section 18984.5 nor does it include an evaluation of organic waste generators compliance as required by Section 18984.9. The project team is available to assist in conducting reviews and inspections for compliance with the stated sections above, if SGVCOG so chooses such services are necessary, at an additional cost. Deliverables: • A copy of Inspection Reviews and Complaint Reviews - provided to SGVCOG on a monthly basis - beginning July 1, 2022, which may include, but is not limited to: - The total number of inspections conducted, categorized by type of entity. - The total number complaints received, categorized by type of entity. • A copy of Inspection Reviews, Complaint Reviews, and Notice of Violations (inclusive of penalty orders, enforcement actions, status of compliance) - provided to SGVCOG on a monthly basis - beginning February 1, 2024, which may include, but is not limited to: - The total number of inspections conducted, categorized by type of entity. - The total number complaints received, categorized by type of entity. - The total number of Notice of Violations issued, categorized by type of entity. - The total number of penalty orders issued, categorized by type of entity. - The total number of enforcement actions that were resolved, categorized by type of entity. Records will be provided to SGVCOG annually in a format that meets the needs of the Implementation Record described in Section 18995.2. BUDGET The budget to complete Tasks 1 and 2 is shown in Table 1. For purposes of this estimate, we have assumed 25 Tier 1 and Tier 2 EFG's in the City, and 5 FROs. Mr. David Carmany June 7, 2022 Page 9 Table 1. Budget Task Description 2022 2023 2024 1 Project Management $2,161.50 $0 $0 2 Capacity and Compliance Assessment $8,138.50 $0 $0 3 Public Outreach $3,000.00 $0 $0 4 Final Report $2,500.00 $0 $0 5 Inspection Program 41,604.00 $42,852.00 $44,138.00 TOTAL $57,404.00 $42,852.00 $44,138.00 Following your review of this proposal, please give me a call to discuss any questions you may have. Sincerely, Michelle P. Leonard Senior Vice President SCS Engineers Mr. David Carmany June 7, 2022 Page 10 the business of collecting Solid Waste, Recyclables, and Organic Waste, accumulating within the boundaries of the City as the same now exists, that is required to be accumulated and offered for collection to the Contractor in accordance with this Agreement and the Municipal Code. For avoidance of doubt, this exclusive franchise includes the collection and disposal of all Construction and Demolition Waste within the boundaries of the City. B. Annexations. This right extends to any territory annexed to the City hereafter except to the extent that collection within such territory so annexed would be unlawful or violate the legal rights of another person. Unless Contractor acquires or has acquired the collection rights of any other person then collecting Solid Waste, Recyclables, yard waste, or other compostables, including Organic Waste, within any annexed territory at the time such annexation is effective, said exclusive right in each annexed territory shall commence ninety (90) days after each such annexation is completed, provided that if the City Council determines to the contrary by majority vote within said ninety (90) day period, such determination shall prevail. C. Scope of Franchise; Exclusions. The franchise granted to Contractor shall be exclusive except as to the following categories of Solid Waste, Recyclables, and Organic Waste listed in this subsection C. The granting of this franchise shall not preclude the categories of Solid W49e, Recyclables, and Organic Waste listed below from bei Wdelivered to and collected and transported by others, provided that nothing in this Agreement is intended to or shall be constru d to excuse any person from obtaining any authorization from the City which is otherwise required by 1�: 1. Yard waste and other compostables removed in a pre-1 re s by a gardening, landscaping, or tree trimming contractor as an incidental part o a total se offered by that contractor rather than as,a hauling service. 2. By-products of sewagieatment, including sludge, grit and screenings. 3. Residutw or non-processible waste from solid waste disposal facilities including material recovery, composting and transformation facilities except as set out under Article 7 hereof. 4. Hazardous waste. 5. Individual households, school districts and commercial businesses may sell or donate recyclables separated or removed from the solid waste stream or may compost yard waste. 6. To the extent not addressed in the foregoing, Exempt Waste. D. Furthermore, the provisions of this Agreement shall not preclude or prohibit City or any officer of employee thereof or any public entity delegated the ability to do so by the City Council from itself collecting, removing, disposing or diverting of Solid Waste, Recyclables, and Organic Waste, in the regular course of their respective duties as such officers or employees; notwithstanding, the City shall be responsible for reporting all such diversion. 0 4.2 Compliance with AB 939 This Agreement is intended to carry out City's obligations to comply with the provisions of the California Integrated Waste Management Act of 1989 ("AB 939") as it from time to time may be amended, and as implemented by regulations of the California Integrated Waste Management Board ("Regulations"), as they from time to time may be amended. In the event that AB 939 or other state or federal laws or regulations, or case law decided by a court of final jurisdiction arising after this Agreement has been approved, prevent or preclude compliance with one or more provisions of this Agreement, such provisions of the Agreement shall be modified or suspended as may be necessary to comply with such state or federal laws, regulations or case law. No other amendment of this Agreement shall be valid unless in writing duly executed by the parties. 4.3 Franchise Fee The Contractor agrees to pay to the City a franchise fee of ten (10) percent of the Gross Receipts earned by the Contractor under this Agreement during each fiscal year ending June 30, or fraction thereof that this Agreement is in effect. Said sums shall be payable quarterly in the minimum amount of $100,000 on or before the 15th day of January, April, July, and October throughout the dl4ation of this Agreement and the total amount paid each year shall be appropriately adjusted based on the annual reports required by this Agreement. The sums herein agreed to be paid to the City by the Contractor shall be in lieu of any and a iness license or truck fees that are collected by t City except as set out under 7.3. 4.4 City Improvement Fee Pt AR LE 5. THE CONTRACTOR SHAES PAY CITY AN ANNUAL CITY IMPROVEMENT FEE TO HELP KEEP PUBLIC SPACES THROUGHOUT THE CITY SXFE AND CLEAN. SERVICES MAY INCLUDE STREET SWEEPING, STORM DRAIN @LEANING, LANDSCAPING AND/OR ANY MUNICIPAL SERVICES AGREED UPON BY THE PARTIES. THE CITY IMPROVEMENT FEE WILL BE A LUMP SUM DOLLAR AMOUNT PAID AT THE END OF EACH QUARTER OF THE CALENDAR YEAR. THE CITY IMPROVEMENT FEE SHALL BE ONE MILLION TWO HUNDRED THOUSAND DOLLARS ($1,200,000.00) PER ANNUM, ADJUSTED BY TRASH CPI FOR THE PRIOR 12-MONTH PERIOD (MARCH OF THE CURRENT YEAR TO MARCH OF THE PRIOR YEAR). CONTRACTOR SHALL PAY THE CITY IMPROVEMENT FEE FOR THE TERM OF THE AGREEMENT UNTIL THE TERMINATION OF THAT CERTAIN ONE-YEAR RENEWAL AND EXTENSION PROVISION SPECIFIED IN SECTION 3.1.WASTE COLLECTION SERVICES 5.1 General The services set forth herein are in addition to those in Article 7 and the remainder of this Agreement. The work to be done by Contractor pursuant to this Agreement shall include the 0 furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others, as may be required, whether enumerated or not. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that the residents and businesses within the City are provided reliable, courteous and high -quality Solid Waste, Recyclables, and Organic Waste collection and diversion services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this Section, whether such other aspects are enumerated elsewhere in the Agreement or not. The Contractor agrees to submit route maps for all collection routes to the City Manager for review and approval. Start and end points for each daily route are to be clearly indicated. All collection services hereunder shall be automated. 5..2 Continaency Plan Contractor shall maintain and submit to City as requested, a writte ntinrcypn demonstrating Contractor's arrangements to provide vehicles and personnel and n uninterrupted service during mechanical breakdowns or other emergencies, excluding events described in Section 11.5. This plan shall be consistent and coordinated with the City's Multi - Hazard Functional Plan. A* r ho 5.3 Residential Solid WasteMbilection Wrvices Contractor shall collect and deliveFlb the appropriate facility all Solid Waste, Recyclables, and Organic Waste generated at Residential Premises within the City and delivered for collection not less than once per week. Subject to reduced low income/senior citizen rates as set out herein, Contractor shall provide special manual carry -out services for those residents determined to have difficulty doing so themselves due to physical disabilities (whether permanent or temporary) and/or the configuration of their property. Contractor may charge for this service only where it is requested by an otherwise capable resident solely for his/her convenience. Upon twenty-four (24) hours prior request, items for disposal other than ordinary Solid Waste shall be collected by the Contractor at no extra charge during the next normal weekly pickups. Except as otherwise arranged with Contractor as for move-ins/move-outs, there shall be a limitation that no more than five (5) such Bulky Items may be included for such pick up each week. Bulky Items shall include but not be limited to large items that include or are similar to the following: Furniture - chairs, sofas, mattresses, rugs, etc. Appliances - washers, dryers, water heaters, plumbing, refrigerators, TVs, small household appliances, etc. Residential - Wood waste - tree branches, scrap wood, etc. 10 Contractor shall use its best efforts to divert/recycle all such Bulky Items or instruct its customers in appropriate diversion techniques. Bulky Items specifically exclude auto parts and bodies, liquid waste, manure and rocks, sod, concrete and similar materials, and Exempt Waste. All Bulky Items shall be collected at the curb or alley, including those from condominium, stock cooperative or community apartment projects. In addition to the weekly pick up of Bulky Items as provided for herein, Contractor upon request will schedule a quarterly Bulky Item pick up at multi -family developments that are Residential Premises at no additional charge to customers. Contractor shall send notice to each such multi- family development of such Bulky Item pickups at least thirty (30) days in advance of the scheduled event. The five (5) item per week limitation set forth hereinabove shall not apply to the quarterly Bulky Item pick up provided for in this paragraph. Additional special rates may be charged by the Contractor for the collection of other items of a dissimilar nature to those included in this Section. Such rates shall be determined by the Contractor, subject to approval by the City Manag or his or her desi nee and paid in advance anTshall be separate from and in no way connecto the regul led service rates. T e fee may include a � mponent for estimation of su ates. I Placement of bins in the street from residential s ut service shall limit to not more than one (1) business day. Materials shall b�properly placed for collection under the requirements the Muni 1 Code. Residents shall be required to bundle and tie all wood waste in lengths not to exceed (4) feet with a diameter of three (3) feet. Any materials not properly placed for collection shal tagged by the Contr�,or with a ultilingu ed tag explaining the reason for non -collection. 09 5.4 Commercial/Industrial Collection Contractor shall collect and deliver to the appropriate facility all Solid Waste, Recyclables, and Organic Waste generated at commercial premises within the City contracting for services and delivered to a bin or otherwise properly placed for collection not less than once per week. Contractor shall collect and deliver to the appropriate facility all Solid Waste, Recyclables, and Organic Waste generated at industrial premises within the City contracting for services and delivered for collection to a debris box or bin (or otherwise properly placed for collection) as scheduled with each industrial generator. Contractor may contract with industrial or commercial firms to collect and dispose of waste materials which it is not licensed to remove and which present specialized problems. Bins placed in the street from commercial/industrial scout service may not be left there more than one business day. Contractor shall use its best efforts to divert or recycle materials collected under this Section 11 5.5 City Facilities Collection A. Services Provided by Contractor. At no cost to the City, Contractor shall collect and dispose of all Solid Waste, Recyclables, and Organic Waste generated at premises owned and/or operated by the City, including all City parks, or as otherwise designated by the City. Contractor shall make collections from cans Monday through Friday or on Saturdays following non -working holidays at the frequency set out in Exhibit "B." Commercial (bin) and industrial (debris box) collections shall be scheduled as designated by the City. The facilities to be provided service initially, together with the type and frequency of service, are listed in Exhibit `B," which may be modified or expanded by the City. Pursuant to this provision, City also may request bins, pickup and disposal or diversion for up to six (6) community events per year sponsored at least in part by City. B. Bulky Items. In addition, Contractor shall pick-up any Bulky Items as defined in Section 5.3 discarded on or along City right-of-ways open space or other City property within 24 hours of a request from City requesting such service. The services required by this Section shall be provided at no charge to the City. EW C. Assistapce to School Districts. Contractor shall provide services to school district facilities within the City at the rate set out on Exhibit "E" and shall assist schools with programs required by AB 939. Such service shall include MRF processing and the associated recycling pro m. 5.6 City BeautiScation. , A. Annual Cleanup Campaign. During one (1) partic lar 4wk (or longer period as may be designated by the City Council and agreed to by Contractor) of each calendar year of the term of this Agreement, when such is declared by the City Council to be part of an annual clean-up campaign, the Contractor shall at locations in districts designated by the City Council and agreed td'by Contractor, pick up and remove from Residential Premises Bulky Items dropped-5ff by customers such as, but not limited to, the following items and other items of a similar nature, at no cost to the customer: (i) furniture — chairs, sofas, mattresses, rugs, etc.; (ii) appliances — washers, dryers, water heaters, plumbing fixtures, refrigerators, TVs, small household appliances, etc.; and (iii) Residential Wood Waste - tree branches, scrap wood, etc. Materials to be collected shall specifically exclude auto parts and bodies, and rocks, sod, and concrete and similar materials. Contractor shall also provide a plan for recovering reusable and recyclable materials offered for collection as part of the Annual Clean-up Campaign and for recycling at the source. B. Christmas Tree Collection. Contractor shall collect all Christmas trees on the first two scheduled pickup days after New Year's Day. Trees shall be diverted for deposit at a green waste or composting facility. C. Illegal Hauling. In the event an unauthorized provider of Solid Waste services sets out containers anywhere in the City, in violation of the exclusivity provision set forth in Section 4.1 of this Agreement, the City hereby delegates to Contractor the authority to remove and impound such containers. The delegation of authority to remove and impound such containers 12 shall remain in effect until such time as City provides written notice to Contractor that such delegation has been revoked, and shall be subject to the following: 1. Reimbursement of Costs. Contractor shall submit an invoice to City detailing any costs related to removal, transport, and storage associated with housing Illegal Containers including (i) $750 per container retrieval, adjusted annually by 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); (ii) plus applicable disposal, processing, or similar fees and any storage costs. City shall reimburse Contractor for such amounts within ninety (90) days of the invoice. 2. Right to Refuse. Contractor may decline any City request to collect, store, or otherwise respond to any City request arising from an Illegal Container. 3. Indemnification. Notwithstanding any provision in this Agreement, City agrees to defend, indemnify, and hold harmless Contractor against all suits and causes of action, claims, losses, demands, and expenses, including but not limited to attorneys' fees, cost of litigation (to include actual litigation costs, such as the cost of experts and consultants), and dggiage or liability of any nature whatsoever ari ng from the collection, transportation, apd storage of any Illegal Container, except to the extelany such claims, demands, losses, expenses, damages or liability arises from the negligence or willful misconduct of Contractor. 4. Excuse from Diversion. Contractor shall make a good -faith effort to divert the materials in any Illegal Container. The tonnages from the Illegal Container(s) shall be reported on Contractor regular monthly and quarterly reports as a separate section and included in the overall diversion calculation. However, to the extent that any material icollected from Illegal Container(s) is not recyclable or not otherwise subject to diversion (e.g., as Organic Waste), these waste tonnages shall be exempted from Xanyesion requirement applicable to Contractor. 00 D. Graffiti Removal Setractor and City acknowledge and agree that the presence of graffiti on buildings, structures and other places is vandalism creating a condition of blight which, if not promptly removed, contributes to the deterioration of neighborhoods. Contractor acknowledges that graffiti abatement is a financial burden on the City. Contractor agrees, at no additional charge, to remove all graffiti from all surfaces within all public spaces, rights -of -way, and properties within the City, including, but not limited to, fences, sidewalks, doors, walls, utility boxes, light poles, street signs, bus benches, and park facilities. Contractor shall remove graffiti and restore the surface to its prior condition within forty-eight (48) hours of notification by the City. In certain public safety "Hot Spots," Contractor shall use commercially reasonable efforts to remove graffiti within twenty-four (24) hours of notification by the City's Police Chief or his/her designee. As used herein, "Hot Spots" are high -visibility areas where gang names or symbols have been placed, and/or where there is graffiti involving hate crimes and/or inflammatory graffiti and/or areas as designated by the City's Police Chief. 1. Method of Removal. Methods of removal may include chemical removal, water blasting or other pressurized removal systems, matching existing painted surfaces, or other removal procedures as approved by the City. 13 2. Best Practices. Contractor shall use industry best practices in providing the graffiti removal services and shall use care to avoid damage to existing improvements (i.e., buildings, windows, doors, walls, etc.). If Contractor damages existing improvements, Contractor shall, at Contractor's sole expense, repair such damage to the satisfaction of City. 3. Color Match. Contractor shall ensure that repainted and/or restored surfaces reasonably match the existing color of such surfaces. Contractor will provide a minimum of one hundred (100) hours of graffiti removal services per week. E. Bus Stop Maintenance. At no additional charge, Contractor shall provide cleaning and maintenance for all bus stops and shelters located throughout the City on a quarterly basis. Bus stop and shelter cleaning and maintenance includes cleaning all interior and exterior visible metal and concrete surfaces, and glass and Plexiglas surfaces for bus shelters, using pressure washing as well as a mop, broom, or rag to clean the bus stop/shelter. Contractor shall remove and dispose of all debris that accumulates during such cleaning. The site area to be cleaned and maintained includes areas within five (5) feet of the outer edges of any bus stop/shelter and only d4property which is part of the public right-of-way. As of the date of this Agreement, there are one hundred thirty (130) City bus stops and shelters. Contractor acknowledges that the number of bus stops and shelters may increase during the term of this Agreement and agrees to provide cleaning maintenance to all bus stops and shelters now existing or as may be added by the City during the tern of this AgreemenjW r Sk 10F. Best Management Practices. In providing beautificahi services to the City, Contractor shall implement and maintain activity specific Best Manage meht Practices (BMPs) to prevent pollutant loading from stormwater and non-stormwater discharges to receiving waters as required in Municipal NPDES Permit No. CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs shall be adequately trained to effectively implement, oferate, and maintain'such BMPs and must be versed in factors affecting BMP effectiveness. Contractor shall certify it has received all applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004 and shall provide documentation to that effect. G. Meet and Confer. Upon request by either Party, City and Contractor shall meet and confer to assess Contractor's performance of the City Beautification Services and/or the efficacy of the City Beautification Services. A meet and confer session shall be held within thirty (30) days from a Parry's request for such meet and confer session. The meet and confer session(s) shall be held within the boundaries of the City or within a five -mile radius from West Covina City Hall. At the conclusion of the meet and confer session(s), the Parties shall amend this Agreement as appropriate to reflect any changes to the City Beautification Services as a result of such meet and confer session(s). Such changes may include, but are not limited to, an increase or decrease to the level of a specific beatification service and/or adding additional beautification services. 5.7 Contractor's Inability to Provide Service If at any time during the effective period of this Agreement, should a customer of the Contractor request a collection service except for a special pick-up as set out in Section 5.3 (such as bin service 14 for construction or demolition cleanup) from the Contractor which the Contractor cannot render within two (2) full working days from the date of the customer's initial request for service, the City Manager reserves the right to direct such customer to seek other providers who can provide such collection service regardless of the fact that such other provider does not hold a franchise with City for collection services. 5.8 Hours of Collection The Contractor agrees that it shall not allow Solid Waste, Recyclables, and Organic Waste collections to be made except during the hours specified in the Municipal Code for such collections. Saturday service is not to begin before 7:00 a.m. 5.9 Collection Standards A. Care of Private Property. Reasonable care shall be used by the Contractor's employees in handling all privately owned collection containers and enclosures, and all damage caused by the negligence or carelessness of the Contractor's employees shall be promptly adjusted with the owner thereof. All collection containers after emptying thereof shall be returned to within five 5) feet of the location from which the same w�e picked u b the Contractor's em to ees, upright (with lids properly secured). Contractor's employees shall use all reasonable means to ensure ontainers ar not deposited n any driveway, sidewalk, or street, other than the curb. Contracto shall ensure that its employees close all gates opened by them in making collections, unless otherwise di cted by the customer, and avoid crossing landscaped areas and climbing or jumping over hedg and fences. City shall refer complaints about damage to private property to Contractor. Contracto shall repair all damage to private property caused by its employees. kB. , se. All Solid Waste, Re4clables, and Organic Waste, collection operations shall be cons cted as quietly as possible and shall conform to applicable Federal, State, Oounty and City noise level regulations, including the requirement that the noise level during the stationary compaction process not exceed seventy-five (75) decibels at a distance of twenty-five (25) feet from the collection vehicle. The City may conduct random checks of noise emission levels to ensure such compliance. Contractor will promptly resolve any complaints of noise to the satisfaction of the City Manager or a designee. C. Record of Non -Collection. When any Solid Waste, Recyclables, and Organic Waste deposited for collection is not collected by the Contractor because it fails to meet the requirements of the Municipal Code or this Agreement, Contractor shall leave a bilingual Spanish/English red tag provided at Contractor's cost at least 3" x 6" in size, on which Contractor has indicated the reasons for the refusal to collect the Solid Waste, Recyclables, and Organic Waste, giving reference to the section of the Municipal Code or to the section of this Agreement which has been violated, and which gives grounds for the refusal as well as the Contractor's address, phone number and business hours. This information shall either be in writing or by means of a check system. 15 In addition thereto, Contractor shall maintain, at its place of business, a log book listing all complaints and taggings. Said log book shall contain the names and addresses of parties involved, date of such complaint or tagging, nature of same and date and manner of disposition of each case. Such log shall be kept so that it may conveniently be inspected by the City Manager upon request. Such log shall be retained for at least two (2) years after the last entry. The City Manager may request this log at any time. 5.10 Litter Abatement A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste, Recyclables, and Organic Waste, from being spilled or scattered during the collection or transportation process. If any Solid Waste, Recyclables, and Organic Waste are spilled during collection, the Contractor shall promptly clean up all spilled materials. B. Clean Up. During the collection transportation process, the Contractor shall clean up litter in the immediate vicinity of any Solid Waste, Recyclables, and Organic Waste storage area (including the areas where collection bins and debris boxes are delivered for collection). The Contractor shall discuss instances of repeated spillage not caused by it directly with the customer responsible and will report such instances to the City. City will attempt to ti ' s with the customer if Contractor has already attempted to do so without succe�s. C. Covering of Loads. Contractor shall cover all open debris b1oxes and mpactor ope s during transport to the disposal site or any processing facility. No mate shall be tran rted to the disposal site or any processing facility in vehicle hopper 5.11 Transportation. Proce and Disposal of Solid Waste A. Solid Waste FacNininnection . No later than [insert date], Contractor shall sub a list of all facilities it intends to utilize with the transportation, disposal and pr ssing of Solid Waste. NM� B. Recyclables Facilities. No later than [insert date], Contractor shall submit a list of all facilities it intends to utilize in connection with the transportation, disposal and processing of Recyclables. C. Organic Waste Facilities. No later than [insert date], Contractor shall submit a list of all facilities it intends to utilize in connection with the transportation, disposal and processing of source -separated Organic Waste. Source -separated Organic Waste shall be diverted to an Organic Waste Processing Facility. D. Change in Facilities. Contractor shall transport all those materials remaining as residue to the disposal site it selects. That site may be disapproved by the City Manager in which case a new site shall be selected by City Manager and Contractor. Contractor shall consider the most cost effective facility, including ripping fees, operating and hauling costs. E. Recordkeeping. Contractor shall maintain accurate records of the quantities of Solid Waste, Recyclables, and Organic Waste transported to the appropriate processing facility, if transported to a processing facility, and as applicable to the disposal site. Contractor will cooperate 16 with City in any audits or investigations of such recorded quantities. Contractor shall devise a method approved by City to identify the diversion rate for City for its waste stream processed at the MRF which is responsive to any and all documents required by CalRecycle. Contractor has the right to retain any materials collected under the franchise and retain any payments therefor. 5.12 Vehicles A. General. Contractor shall provide a fleet of collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. The Contractor agrees to maintain each piece of equipment used by it in the performance of this Agreement in good order and repair. Contractor shall have available on collection days sufficient back-up vehicles for each type of collection vehicle used (i.e., residential, commercial and roll -off) to respond to complaints and emergencies. The City Manager reserves the right to inspect any and all of Contractor's equipment upon reasonable notice to Contractor. All such vehicles shall have water -tight bodies designed to prevent leakage, spillage or overflow. All such vehicles shall comply with the noise abatement requirements of this Agreement. Notwithstanding anything herein to the contrary, while in use collecting waste in West Covina, the fleet of collection vehicles provided hereunder shall be used only for Solid Waste, Recyclables a4or O*c Waste colles*within West Covin B. Specifications. All vehicles useby Contractor in pro g So id Was , Recyclables, and Organic Waste collection services shall be registered with the California Department of Motor Vehicles and shall meet or exceed all legal standards. Contractor agrees to maintain all of its collection vehicles in compliance with the provisions of the California Vehicle Code, including but not limited to, Sections 27000(b), 23114, I23115, 42030, 42032, and all Vehicle Code sections regarding smog equipment requirements. All vehicles shall be inspected by the California Highway Patrol in accordance with applicable law. Contractor shall provide to City (i) a copy of its biennial Basic Inspection of Terminals ("BIT") inspection conducted by the Calforni�hway Patrol and ( a copy of its vjhicle maintenance log and any safety compliance report, including.,ut not limited to, any report issued unler Vehicle Code Sections 34500 et seq., in its annual report made pursuant to Section 6.2. C. Vehicle Identification. Contractor's name, local telephone number, and a unique vehicle identification number designed by Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than two and one-half (2 1/2) inches high. Contractor shall not place the City's logo on its vehicles. D. Cleaning and Maintenance. 1. General. Contractor shall maintain all of its properties, facilities, and equipment used in providing service under this Agreement in a safe, neat, clean and operable condition at all times, and well and uniformly painted, to the reasonable satisfaction of the City Manager. 2. Cleanina. Vehicles used in the collection of Solid Waste, Recyclables, and Organic Waste shall be thoroughly washed at a minimum of one (1) time per week, and thoroughly steam cleaned on a regular basis so as to present a clean appearance and minimize odors. All 17 vehicles shall be painted to the satisfaction of the City as deemed by the City Manager in his or her sole discretion. All graffiti shall be removed immediately. The City Manager may inspect vehicles at any time to determine compliance with sanitation requirements. Contractor shall make vehicles available to the Health Department for inspection. 3. Maintenance. Contractor shall (i) inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles which are not operating properly shall be taken out of service until they are repaired and operate properly; and (ii) perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and mileage and shall make such records available to the City Manager upon request to the extent necessary to perform the inspections described in Sections 6.5 and 6.6. 4. Repairs. Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment, including dents or other body damage, for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a neat, safe and operable condition. If an item of repair is covered by a warranty, Contractor shall obtain warranty performance. Contractor shall maintain accurate records of repair, which shall include dat#/milage, nature of,repair and the signature of aintenance supervisor or m%kpnic e repair has been properly performed. 1 5. Invento rv. ntractor ish ish sufficient equipm�t to provide all service required under this Agree includinac collectioHvehicl Upon written request, Contractor shall furnish the C rrent vehiinve ory. PF 6. Storage. Contractor shall arrange to store s and otheruipment in safe and secure locations(s) in accordance with City's applicable zoning regulatio f stored within the City. Operation. "hicles�hall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by state or local weight restrictions on vehicles. 5.13 Solid Waste Containers A. Residential. Contractor shall provide an automated waste collection system for Solid Waste, Recyclables, and Organic Waste subject to the following terms: 1. Contractor shall provide (i) one (1) ninety (90)-gallon for commingled Solid Waste and Recyclables; and (ii) one (1) ninety (90)-gallon container for source -separated Organic Waste. Condominiums or similar multi -family premises that use individual containers for each unit will be provided one (1) sixty-four (64)-gallon container for commingled Solid Waste and Recyclables. Contractor may also make sixty-four (64)-gallon containers available to customers at Residential Premises that do not reside in condominiums or similar multi -family premises. Na 2. Contractor shall determine what containers shall be provided, subject to disapproval of City. Customers may request adjustments to container sizes, which must be approved by City. 3. In the absence of any determination, two (2) ninety (90)-gallon containers, one (1) for commingled Solid Waste and Recyclables, and one (1) for source -separated Organic Waste, shall be provided by the Contractor to customers at Residential Premises. 4. Any change in container size may be subject to a service charge as specified in Exhibit "E" as amended. 5. Contractor shall fulfill the request to change containers within one (1) week of receipt of the written request unless circumstances beyond Contractor's control prevent such a response or the City rejects a request to change containers. 6. Additional containers of either sixty-four (64)-gallon or ninety (90)-gallon size shall be provided by the Contractor at the written request of the customer subject to the additional monthly rates specified in the Exhibit "E" as amended. Contractor shall make change in container size, zest is received. ropriat adjustments customer's the billing t( re earest moth 8.1 Contractor shJthe ntainer roll -out service disabled c mers at no c ge, as outlined in Section 5.ement. 9. Separate fromservice provided Section 5.3, Con for shall pro a roll-o ervice to any reomer who reque such a service. service shal subje additional chargen Exhi 't "E" a ended. i 10. If any container is not used by the customer in the manner specified by the automated waste collection program, the Contractor shall use a Multilingual red tag to so advise the customer. 11. Notwithstanding the foregoing, the number of containers provided to customers receiving services hereunder may be adjusted in accordance with Section 5.17. B. Non -Residential. Contractor shall provide bins and debris boxes for storage of Solid Waste which shall be designed and constructed to be water tight and prevent the leakage of liquids. All containers with a capacity of one (1) cubic yard or more shall meet applicable federal regulations on solid waste bin safety. All containers shall be painted the Contractor's standard color and shall prominently display the name and telephone number of the Contractor. C. Cleaning, Painting, Maintenance. Contractor shall replace, clean or repaint all commercial containers as deemed necessary by the City Manager but no more than once every twelve (12) months so as to present a clean appearance. In addition, Contractor shall do the same upon forty-eight (48) hours of notice by the City. Contractor shall maintain all containers in a functional condition and shall remove graffiti immediately. 19 D. Repair and Replacement. Contractor shall repair or replace all residential and non-residential containers damaged by collection operations. 5.14 Personnel A. General. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical and other personnel as may be necessary to provide the services required by this Agreement in a safe and efficient manner. B. Driver Qualifications. All drivers shall be trained and qualified in the operation of collection vehicles and must have in effect a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. C. Identification Badge. Contractor shall require its drivers, and all other employees who come into contact with the public, to wear a uniform as a means of identifying the employee. D. Safety Training. Contractor shall provide suitable operational and safety training for all of its employees who utilize or operate vehicles or equipment for collection of Solid Waste, Recyclables, and Organic Waste, or who are otherwise directly involved in such collection. Contractor shall train its employees involved in Solid Waste, Recyclables, and Organic Waste, collection to identify, and not to collect, hazardous or infectious waste. r E. No Gratuities. Contractor shall not permit its employees to demand or solicit, directly or indirectly, any additional compensation or gratuity from members of the public for the collection of Solid Waste, Recyclables, and Or, nic Waste under this Agreement. �F. Employee Appearance and Con uctdikAll employees, while engaged in the collection or gathering Solid Waste, Recyclables, and Organic Waste within the City, shall be attired in suitable and acceptable uniforms which are subject to approval by the City Manager. Contractor shall use its best efforts to ensure that all employees present a neat appearance and conduct themselves in a courteous manner. Contractor shall regularly train its employees in customer courtesy, shall prohibit the use of loud or profane language, and shall instruct collection crews to perform the work as quietly as possible. If any employee is found not to be courteous or not to be performing services in the manner required by this Agreement, Contractor shall take all appropriate corrective measures. G. Provision of Field Supervision. Contractor shall designate one qualified employee as supervisor of field operations. The field supervisor will devote at least fifty percent (50%) of his or her time in the field checking on collection operations, including responding to complaints. 5.15 Hazardous Waste A. General. If the Contractor determines that waste placed in any container for collection or delivered to any facility is Hazardous Waste or infectious waste or other waste that may not legally be disposed of at the disposal site or presents a hazard to Contractor's employees, the Contractor shall have the right to refuse to accept such waste. The customer will be contacted by the Contractor and requested to arrange proper disposal. If the customer cannot be reached 20 immediately, the Contractor shall, prior to leaving the premises, leave a red bilingual, Spanish/English tag at least 3" x 6" indicating the reason for refusing to collect the waste, in which case a copy of the tag, along with the address of premises (and the name of the customer, if known) shall be delivered to the City Manager on the following business day. If the waste is delivered to the disposal site before its presence is detected and the customer cannot be identified or fails to remove the waste after being requested to do so, the Contractor shall arrange for its proper disposal. The Contractor shall make a good faith effort to recover the cost of disposal from the customer, and the cost of this effort, as well as the cost of disposal shall be chargeable to the customer. B. Residential Hazardous Waste Collection. Contractor shall coordinate with City and County to assist in any Household Hazardous Waste or similar residential hazardous waste collection by County. If the County fails to provide such service during the term of the Agreement, as requested by City Manager, Contractor shall arrange for an acceptable licensed hazardous waste roundup at a central location within the City. Fees for this service shall be negotiated between the City and Contractor. 5,Y Review of Perfnrmanee and Ouality of Service and Iiulustry ChanQes___ A. At the City Council's sole option, with sixty (60) days writt+ notification to e Contractor, it may conduct a public hearing, at which the Contractor shall be present and shall participate, to review the Contractor's performance and qualmN of service and to provide for technological and regulatory changes. The repo required by this Agreement regarding customer complaints shall be utilized as one basis fo eview. In addition, any customer may submit comments or complaints during the review meetings, either orally or in writing, and these shall be considered. These hearings may be scheduled by City Council at its discretion throughout the term of this Agreement, but not more o than aually. NA B. Within thirty (30) la after thelconclusion of the public hearing, the City Council shall issue a report with respect to the matters raised at the hearings. If any noncompliance with the Agreement is found, the City Manager may direct Contractor to correct the inadequacies in accordance with the terms of this Agreement. Any change in scope of services or equipment shall be reflected in an amendment to this Agreement. 5.17 Transition to Three -Container Collection System At any time during the Term of this Agreement, City shall permit Contractor to implement a Citywide transition to a three (3)-container collection system, and specifically the introduction of containers for the collection of source -separated Recyclables, for residential, commercial, and industrial premises. City and Contractor agree to meet and confer at times and dates agreeable to the Parties to discuss the Citywide transition including but not limited to any transition plan, container disbursement, performance standards, and rate adjustments that may apply. 5.18 Or¢anic Waste Program A. General. Contractor will provide staff, labor, and materials to assist City with its compliance with SB 1383, as specified herein. Contractor shall (i) provide account site visits and 21 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. B. Default Service. 1. Residential. Contractor will permit customers at Residential Premises to commingle source -separated Green Waste, Food Waste, food -soiled paper products, clean wood, and lumber only in containers designated for Organic Waste. 2. Commercial/Industrial. For customers at commercial and industrial premises, Contractor shall collect one (1) thirty-five (35)-gallon container for source -separated Organic Waste one (1) time per week. Based on a waste assessment performed by Contractor, Contractor may adjust the foregoing default level of service to any one of the following container types: (i) one (1) container of sixty-four (64) gallons in size; (ii) one (1) bin of one and a half (1.5) to two (2) cubic yards in size; and (iii) one (1) metal roll -off container with a capacity of ten (10) or more cubic yards. 3. Exemptions. The Organic jWte program specified herein shall not apply tcstomers �may be exempt from SB 1383, ermined by the City pursuant to applicable state law. 4. Collection Routes. Contractor may collect source -separated Organic Waste from multiple cities within one (1) Organic Wiste route and, if so, will report source -separated Organic Waste tonnage among the cities by volme. 5. Service Changes. Contractor inreduce IF increase any Organic Waste service level base on inspection, audit, or review at an time, subject to the City Manager's right to review and disapprove. 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. Education and Outreach. On a quarterly basis, Contractor shall provide educational material by mail or electronically to customers providing information concerning proper recycling, the use of containers for Organic Waste, composting, preventing Contamination, and proper cart placement. Further, Contractor shall provide in -person outreach to customers at Residences as necessary under the "Contamination Protocols" specified in Section 5.19. D. Waste Characterization Studies. Contractor acknowledges that City must perform Organic Waste generation and disposal characterization studies periodically to comply with the requirements of SB 1383. Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed but no more than quarterly, to satisfy the requirements of SB 1383, provided such Organic Waste is delivered to a Contractor -owned or controlled facility or Contractor otherwise has access to information permitting it to perform characterization studies. E. Reporting. To the extent not addressed in Section 6.2, Contractor will provide an annual report of the following (i) the average daily gross tons of Organic Waste collected by route, 22 with map of routes; (ii) the total number of generators that receive each type of Organic Waste collection service provided by the Contractor; (iii) number of Organic Waste collection containers distributed by size and customer type; (iv) annual totals of Organic Waste processed including facility name and location; and (v) the number of route reviews conducted for prohibited contaminants and the number of non -Collection notices provided to customers due to Contamination. F. Route Audits. On a quarterly basis, Contractor shall conduct route audits designed to monitor, observe, and, if necessary, recommend route changes or service adjustments to reduce Contamination in containers provided to customers. G. SB 1383 Procurement. As part of City's efforts to satisfy annual procurement requirements specified in SB 1383, Contractor shall have the option to, (i) at levels commensurate with those required in the City under SB 1383, assist the City in the procurement of Renewable Natural Gas (RNG) for collection vehicles used by Contractor in the City, and/or (ii) provide twenty (20) tons of compost or mulch, delivered to a location selected by the City. Should products such as greater quantities of compost, other or additional biofuels, or different forms of electricity be needed for City to satisfy its procurement requirements, and City requests that Contractor provide the same, Citiit andCentractor shall meeind confer discuss an a went to tie Agreement prior to such procurement. J r J H. Container Color and Labelling. Notwithstanding any provision in this Agreement to the contrary, no later than January 1, 2036, all containers provided to customers must comply with the color and labeling requirements included below or as otherwise specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other applicable law. Colors shall be colorfast and resistant to fading, as a result of weathering or ultraviolet degradation, and the lids and bodies shall be uniform for each container type, as follows: (i) Solid Waste container bodies and/or lids shall be black or grey; (ii) if used, Recyclables container bodies and/or lids shall be blug; and, (iii) Organic Wast(container bodies and/or ls shall be green. Hardware such as hinges an wheels on the containers may be a different color tFan specified herein. I. 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, 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. J. 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 Agreement, Contractor shall be entitled to a special rate adjustment as specified in Article 8. Nothing in this Agreement shall be construed as obligating 23 Contractor to provide additional or modified services prior to City and Contractor having first agreed in writing to any such change. 5.19 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 container or require an additional container(s). Contractor must also contact the Customer by phone, by U.S. mQ, by email, in person, or. , to ensure th/,pon Customer iT11 e for proper collection of was" . B. Second Contamin n Eventn the seco iscovery n within a given calendar year starting January protocols sp ied i Sec appl�C. Third Contamination Event.hee ird discovery of onta 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 Solid Waste for handling and billing purposes, and affix a Contamination Violation Notic to the contaminated container. Contractor may also elect to charge the then-maxitnum contami fee for tht Contamination event. 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 5.19(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 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 fee, 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 24 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 thirty (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. 5.20 Food Recovery Assistance A. Identification of Edible Food Generators. No later than [insert date], 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. EW B. Assessment. Commencing [insert date], and annually tt%er, Contractor shall support City in its efforts to 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 it a assessmeOtoincngde Tier Two Commercial Edible Food Generators.0C. Education and Outreach. [insert date], and annually thereafter, Contractor shall provide Commercial Edible Food Generators with the following information: (i) information about the City's Edible Food Recovery program; (ii) information about the Commercial Edible Fbod Generator requirements under 14 CCR Chapter 12 Affft"; (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 by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to customers. ARTICLE 6. OTHER COLLECTION -RELATED SERVICES, STANDARDS AND AGREEMENTS 6.1 Billing In consideration of the services and promises of the Contractor, the City hereby delegates to the Contractor the right and authority to collect from the persons served by the Contractor the prices for such service as is provided by this Agreement. 25 The Contractor agrees that it shall neither charge nor collect any sum or sums in excess of, or in addition to, the amounts specified in this Agreement for any Solid Waste, Recyclables, and Organic Waste collection services made pursuant to this Agreement. The Contractor agrees that the City shall be under no obligation to collect or to enforce collection of any sums due to the Contractor for services rendered under this Agreement except as specifically provided in this Agreement or in the Municipal Code, and Contractor does hereby release the City from any and all liability for the payment of any sum or sums which may become due to the Contractor for the collection or removal of Solid Waste, Recyclables, and Organic Waste, under the terns of this Agreement, provided that if an account is delinquent for more than ninety (90) days, the City will ensure that such account is billed on the City's property tax rolls pursuant to the Municipal Code if requested by the Contractor. The Contractor will bill customers on a quarterly basis. The Contractor shall have the right to bill and collect for its services in advance of the rendition of services hereunder, but shall refund any unused portion equal to one (1) month or more of the amount collected in the event of disruption, revision, or termination of the services or when Residential Premises are vacant for at least a one (I) -month period and prior notice of such vacancy has been given to the Contractor. Termination of services as referred to in this Section shall not include termination due to nonpayment. Services terminated due to nonpayment of collection fees may be reinstated with the payment of- a reinstatement charge as specified in Exhibit "E" attached hereto. Customers may, on an individual basis, request annual or monthly payment schedules, and the Contractor will work in good faith wit l individual customers to reasonably satisfy such requests. As art of the billing procedure and along with normal billings, J the Contractor A provide envelopes, return envelopes, and messages with Multilingual text related to solid waste management and recycling issues. These messages shall include but are not' limited to route maps, pick-up times, collection rules, holidays, and similar information. Such messages include, but are not limited to, clean up Saturdays and Christmas tree recycling. The language of any such messages shall be reviewed ajd approved by the City Manager prior to their distribute . T e costs for the printing and distribution of such notices shall be the sole responsibility of the Contractor. Contractor also agrees to insert with the billings, mailers describing activities of the City government unrelated to solid waste management or recycling issues. City Manager will provide not less than fifteen (15) days' notice to Contractor prior to the mailing date of any proposed mailing to permit Contractor to make appropriate arrangement for inclusion of the City's materials. City Manager will provide Contractor the mailers at least (7) days prior to the mailing date. Contractor shall notify City of its mailing schedule to enable City to provide notices and mailers in compliance with this Section. The Contractor shall maintain copies of said billings and receipts, each in chronological order, for a period of three (3) years after the date of service for inspection by City. The Contractor may, at its option, maintain those records in computer form, on microfiche, or in any other manner, provided that the records can be preserved and retrieved for inspection and verification in a timely manner. The City Manager shall have the right to request changes to the billing format to itemize certain appropriate charges or to otherwise reasonably clarify the billing. The Contractor will cooperate 26 with the City to revise its billing format as necessary to itemize appropriate charges from time to time, however, once any billing format is approved by the City Manager, if any future changes to the billing format result in substantial costs, those costs may be recovered by Contractor pursuant to this Agreement. Contractor shall not itemize the franchise fee except with the written consent of City Council. The Contractor may assess penalties for late payments and collection of delinquent accounts. The Contractor may discontinue service to any customer where payment for services rendered is delinquent for sixty (60) days or more. The Contractor shall notify the customer and the City in writing of its intent to discontinue service not less than ten (10) business days before such discontinuation shall occur. 6.2 Annual Reports The Contractor shall submit annual reports with respect to its operations (including but not limited to MRF operations) pursuant to this Agreement. The annual reports shall be submitted not later than four (4) months following the end of the Contractor's annual accounting period. The report shall be in a format which will allow the City Manager and City Council to compare the operations of.Ahe Contractor with the franchise fee paid. As part of the report, the Contractor shall calculate the actual franchise fee owed, set forth the quarterly franchise fee payments actually made, and show the appropriate additional franchise fees owed to the City or the overpayments of the franchise fees actually owed for the annual period. This report shall also include customer billing information by class of service and number of services, and if applicable4IT inspection results. 6.3 Annual Audit At the request of the City Manager, the reports submitted by the Contractor pursuant to Section 6.2 may be audited and certified to by an independent certified public accounting firm mutually approved by the City Manager and the Contractor. The Contractor will bear the expense of said audit where a $10,000 discrepancy (adjusted annually by CPI) is discovered, but audit fdbs are allowed as an operating expense for rate -setting purposes. If the Contractor and City Manager fail to mutually agree on the selection of a certified public accounting firm within five (5) months prior to the end of the Contractor's annual accounting period (for that accounting period), the City Manager shall submit the names of five (5) certified public accounting firms from which the Contractor shall select one (1). The Contractor shall notify the City Manager of its choice not later than fifteen (15) days from the date of receipt of said list. The third parry auditor or consultant selected shall be allowed access to Contractor's records as necessary to carry out the audit and shall be required to sign a confidentiality agreement. 6.4 Recordkeet)W2 The Contractor shall maintain such accounting and statistical records as shall be necessary to develop the financial statements and reports prescribed by City. 6.5 Right to Inspect Records Notwithstanding Article 6, City officials retains all of their rights to audit or inspect under the business license ordinance. 27 6.6 Inspection by City The City Manager shall have the right to observe and review Contractor's business operations and enter premises for the purposes of such observations and review at all reasonable hours with reasonable notice. 6.7 Public/Customer Service and Accessibili A. Office Location. Contractor shall provide a business office for purposes of carrying out its obligations under this Agreement. This main office shall be located at 14048 Valley Boulevard, City of Industry, California 91715. B. Office Hours. Contractor's office shall be open to the public from 7 a.m. to 5 p.m. Monday through Friday. The office may be closed on Saturdays and Sundays and those holidays recognized by the Contractor. C. Availability of Representatives. A representative of the Contractor shall be available at the Contractor's main office during office hours to communicate with the public in person and by telephone. F D. Telephone. Contractor shall maintain atoll -free tt leph7andh t inoperation t its main office at all times. Contractor shall install telephone equipment, vA available servce representatives sufficient to handle the volume of calls typically experienced on the busiest days. Telephone service shall be provided from 7 a.m. to 5 p.m. Contractor shall also maintain an after-hours telephone number for use during other than normal business hours. Contractor shall have a representative or voice mail available at said after-hours toll -free telephone number during all hours other than normal office hours. If customers are unable with reasonable effort to reach Contractor's office by phone, or are subject to waiting time "on hold" of more than two (2) minutes prior to reaching a customer service representative, City Manager may require that Contractor irrAall additional telephone lines or hire additional customer service representatives The City Manager and Police and Fire Departments shall be provided with an emergency phone number. E. Consumer Information. 1. Contractor shall provide brochures containing information about the amounts of Solid Waste or Recyclables which will be collected, times for special collection events, recycling and household hazardous waste drop-off programs and other special services. Contractor shall distribute such brochures to all new subscribers annually and shall include such updated information in the billing envelope. Brochures shall also be mailed to City residents upon request and shall be provided to a bona fide community group upon request of the City Manager. 2. Contractor will submit proofs of the brochures to City Manager prior to distribution and will incorporate City's comments in the final version distributed to the public. F. Payment Center. City may require Contractor to provide at least one (1) payment center in the City of West Covina for the purposes of accepting payments from customers. 0 6.8 Service Complaints The Contractor agrees to maintain a written log of all oral and written service complaints registered with the Contractor from customers within the City. Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all customer complaints. Contractor shall record in a separate log all written and oral complaints, noting the name and address of complainant, date and time of complaint, nature of complaint, and nature and date of resolution. This complaint log shall be retained by the Contractor for at least one (1) year after the last entry and the City Manager may review the log at any reasonable time. Contractor shall respond to all complaints from customers within twenty-four (24) hours, weekends and holidays excluded. In particular, if a complaint involves a failure to collect Solid Waste, Recyclables, and Organic Waste from a premises, required by this Agreement, Contractor shall collect the Solid Waste, Recyclables, and Organic Waste, in question within such twenty-four (24) hour period, provided it has been delivered for collection in accordance with the Municipal Code or this Agreement. 6.9 City's Right to Chance Scope of Work The City Manager or City Coutcil may require changes in collects or disposal methods and upon mutual agreement of the Parties, the Contractor shall comply, proJWd that ifs s1ch changes result in increased costs to the Contractor, the Contractor shall have a ri o apply for a rate review and adjustment pursuant to Article 8 of this Agreement. 6.10 Title to Solid Waste r It is expressly understood that all Solid Waste becomes the property of the Contractor n placed for collection. 6Ad Nondrimination Ak� Contractor shall not discriminate in the provision of service or the employment of persons engaged in performance of this Agreement on account of race, religious creed, color, national origin, ancestry, physical or mental disability, medical condition, marital status, or sex of such persons or as otherwise prohibited by law. 6.12 Change in Collection Schedule Contractor shall notify City Manager seven (7) days prior to, and residential customers not later than the day prior to, any change in residential collection operations which results in a change in the day on which Solid Waste, Recyclables, and Organic Waste collection occurs. Contractor will not permit any customer to go more than seven (7) days without service in connection with a collection schedule change. 6.13 Report Accumulation of Solid Waste; Unauthorized Dumping Contractor shall direct its drivers to note (1) the addresses of any premises at which they observe that Solid Waste is accumulating and is not being delivered for collection; and (2) the address, or 29 other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City Manager within three (3) working days of such observation in order to protect health, safety and welfare. ARTICLE 7. CALIFORNIA INTEGRATED WASTE MANAGEMENT ACT OF 1989 ("AB 939"): OPERATIONAL AND REPORTING REQUIREMENTS 7.1 Implementation of SRRE Contractor shall implement and maintain the automated MRF/'Transfer Station recycling program set out on Exhibits A and C, as amended. 7.2 Other Recycling Programs At the request of City, Contractor shall maintain the current bins used for recycling and located in City parks. In addition, the Contractor and City Manager or his or her designee shall agree on the schedule, format, and content of additional programs to be iq&Jemented. 7.3 MRF/Transfer Station Proposal E Contractor shall operate and maintain its MRF. as set out on Exhibit C, as amended. 7.4 P Diversio uarantee 1 Cox actors indemnify defen� id hold imposed by CalRecycle oar o iT—er responsible a€ Station located at 14048 Valley Boulevard against anyImee fines v's failure tndfill diversion requirements of AB 939, or substantially similar legislative enactments by the State of California. Contractor agrees this subsection applies to the entire waste stream for which City is accountable by CalRecycle and not just that portion of that waste stream processed by Contractor, pursuant to this Agreement. In the event CalRecycle (or any other subdivision or body of the State) provides an administrative process to challenge the imposition of a compliance order or fine or fines, Contractor shall be responsible for engaging (at no cost to the City) consultants and/or attorneys (subject to City's reasonable consensus) to represent the City. The indemnification set out in Section 9.1 hereof shall not apply to the matters described as set forth in the preceding paragraph of this Section 7.4. 7.5 Annual AB 939 Reporting Requirements Contractor shall record and transmit to City on a quarterly basis the quantities of City Solid Waste collected and processed and the MRF and the residue of or unprocessable materials therefrom. 30 Contractor also shall report waste composition, tonnage by material type, percent diverted, and market value on a quarterly basis, as determined by City, for City's waste stream taken to the MRFPTransfer Station. Residential Solid Waste — Solid Waste originating from single -and multiple -unit dwellings. Single -unit tonnages are to be accounted for separately from multi -unit tonnages. In those cases where multi -unit accounts are commingled with material from other waste sources Contractor will be responsible for developing a reasonable methodology for estimating such multi -unit tonnages which is acceptable to the City Manager (e.g., [container yardage] X [frequency] X [% of capacity] X [assumed density]). Commercial Solid Waste — Solid Waste originating from stores, business offices, commercial warehouses, hospitals, educational, health care, military, and correctional institutions, nonprofit research organizations, and government offices. Industrial Solid Waste — All Solid Waste placed in debris boxes. Other Sources — Solid Waste originating from such sources as state and national parks and recreational areas (Note estimation of self -haul waste which is classified as an `Other' source will be tie responsibility of City). . TFM Contractor shall provide to the Ci anager an annual "Waste Disposal and Diver"Repo" based upon these daily records b e 31st of January. This report shall include total tonnages disposed by waste source and osal facility, and total tonnages diverted by waste source, material type, and program and t e specific processing facility or market to which the materials were delivered. Contractor shall t1k to include 4eports on rivate recycling efforts so these will be counted toward City's diversi oals. Contractor shall submit all reports needed td meet City s reporting requirements to CalRecycle, and to the County of Los Angeles throughout the term of this Agreement. Contractor shall also provide any other reports required by AB 939. 7.6 AB 939 Staffing Position The Contractor shall dedicate adequate staff to implement and monitor AB 939 requirements on behalf of City, throughout the term of this Agreement, in accordance with the City's integrated waste management programs identified in the Source Reduction and Recycling Element (SRRE). 7.7 Public Outreach Program The Contractor will develop and implement a public education program on source reduction, reuse, recycling, composting and secondary materials usage and availability as required by the Public Education Component of the City's SRRE and AB 939. This requirement may include, but is not limited to public and school presentations, mailers, brochures, as set out on Exhibit D, attached and incorporated herein. 31 7.8 Use of Recycled Materials Whenever possible Contractor shall use recycled paper as part of all publicity, billing, and other management and operational activities associated with the performance of this Agreement. Opportunities for use of other recycled materials, including but not limited to the purchase of collection containers with recycled material content shall also be pursued, with a cost/benefit analysis provided to the City Manager. 7.9 Participation in Integrated Waste Mana¢ement Program Fundin¢ Agreement The Contractor shall pay $55,000 per year to the City of West Covina for the City's Integrated Waste Management Program subject to the following conditions: A. The amount due shall be paid in quarterly payments by the loth of each month commencing July 1 of each year. B. The funding amount shall be adjusted each year according to CPI. If the City Council approves an increase in the Base Rate for the Monthly Collection rate, the Integrated Waste Management fund contribution from the Contractor shall increase b the same ercenta e. C. The Con"the ibution to the Integrated Waste Manag t F shall not be included in or fundeapproved by the City Council pursuant Attic of this Agreement. D. This funding requirement sl modified with the agreement of City at 7.10 Change in Laws, the Agreement is termingff or until Contractor shall develop and, upon e C'iTy Councils approval, implement withAW timely manner, programs to meet new requirements of AB 939 or similar state and federal laws. Contractor may request a rate increase under Article 8 for additional duties required hereunder. ARTICLE 8. SERVICE RATES AND REVIEW 8.1 Rates A. Maximum Service Rates. Rates for all services provided to customers covered by this Agreement shall be as specified in Exhibit E of this Agreement, subject to adjustment as permitted pursuant to this Agreement. B. Annual Rate Adjustment. Beginning July 1, 2023, and annually thereafter on July 1, the rates provided in Exhibit E shall be automatically adjusted annually by the Annual Rate Adjustment. If determined by City as required by applicable law, after July 1, 2027, and each five years thereafter, the City Council shall agendize a vote for adoption of an extension to the Annual Rate Adjustment in accordance with applicable law, including without limitation Government 32 Code section 53756, and article XIII D, section 6(a) of the California constitution, to the extent applicable. C. Phase -in. Notwithstanding any provision in this Agreement to the contrary, for the period beginning July 1, 2023 and ending June 30, 2025, in addition to any other rate adjustment permitted under this Agreement, the rates provided in Exhibit E shall be subject to supplemental adjustments specified below. Period Residential Premises JIL Commercial/Industrial Beginning Supplemental Adjustment in Supplemental Adjustment July 1, 2023 N/A Annual Rate Adjustment + 2.0% rate increase July 1, 2024 N/A Annual Rate Adjustment + 2.0% rate increase Notwithstanding the foregoing, nothing herein shall constitute the waiver of Contractor's right to seek special rate adjustments, as permitted in accordance in Section 8.1(D). 87 q ecial Rate Adjustments Contractor may apply to the City Council for consideration of a special, interim rate review sho d 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 f60) 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 regaiation; 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. 8.3 Procedures Uuon Invalidation of Rate Adiustment. In the event that City is prohibited by applicable law (excluding the Municipal Code) to (i) approve or implement an Annual Rate Adjustment, supplemental adjustment, or special 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, 2027, 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 33 and 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 and other City 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. 8.4 Publication of Rates The Contractor shall provide prior written notice to subscribers of rate changes, which notice may be provided with, or as part of a regular billing. Contractor may provide a schedule of tipping fees along with customer billings. 8.5. Proposition 218. City intends to comply with all applicable laws concerning the maximum service rates provided under this Agreement. Upon thorough analysis, the Parties have made a good faith determination that the maximum service rates for solid waste collection services provided under this Agreement are not subject to California Constitution Articles XIIIC and XIIID because, among other reasons, such services are provided by a private corporation and not by tCity. Contractor independently esMaa r s lishes the rates foervices within the limits established in this Agreement. In the interest of consumer protection, the City sets a cap on what the Contractor may charge its customers for 4e services it provides to them. AR LE 9. INDEMNITYJANDINSU 9.1 Indemnification of Ci Separate and distinct from the insuranceAnd liquidated damages provisions found in this Agreement, Contracto; agrees to defend, with counsel chosen with the advice and consent of City, indemnify, and hold harmless, City and its elected officials, officers, agents, and employees from and against any and all claims, demands, damages, liabilities, costs or expenses for any damages or injuries to any person or property, including but not limited to, injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all costs and expenses of investigating and defending against same. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Contractor, its employees, agents and/or officers, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Contractor, its employees, agents and/or officers, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed or services provided by Contractor, its employees, agents and/or officers under this Agreement, whether or not Contractor, its employees, agents and/or officers are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established active negligence or willful misconduct of the City, its agents, officers or employees. 34 Payment by City is not a condition precedent to enforcement of this indemnity. 9.2 Insurance A. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. Comprehensive General Liability: $10,000,000 combined single limit per occurrence for bodily injury and property damage. 2. Automobile Liability: $10,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. 4. Transportation Pollution Liability: $5,000,000 combined single limit per accident. Coverage shall include Pollution Liability (CA9948) and MCS-90 endorsements. The policy shall provide coverage for transportation of o11 tants/contaminants to and from job sites fi� athe hauling of waste from project sites to the al dispo?TocatlWincluding non -owned disposal sites. ` 1 � B. De ctibl8s and Self -Insured Retentions. Any significant deductibles or self - insured retentions must be declared to and approved by the City Risk Manager. At the option of the City Risk Manager, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officials, employees, agents or volunteers; or the Contractor shall procure an additional letter of credit or bond guarantying payment of losses and related investigations, claim administration and defense expenses. i C.W*Other Insurance Provisions. The policies qjoholpntain, or be, endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverage. a. The City, its officials, employees, agents and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Contractor; services, products and operations of the Contractor; premises owned, leased or used by the Contractor; or vehicles owned, leased, hired, or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officials, employees or volunteers. b. The Contractor's insurance coverage shall be primary insurance as respect the City, its officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. The City, its officers, agents, employees and volunteers shall be named as additional named insureds. 35 C. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officials, employees, agents, or volunteers. d. Coverage shall state that the Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability and in no case shall the insurer's total liability be increased. 2. All Coverage. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, modified, or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City Risk Manager. D. Acceptability of Insurers. The insurance policies required by this section shall be issued by an insurance company or companies authorized to do business in the State of California and with a rating in the most recent edition of Best's Insurance Reports of size category VII or larger and a rating classification of A or better. E. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waive7of any coverage normally provided by any insurance. Specific reference to a giv n coverage feature is for purposes of clarification only as it pertains to a giyel issue and is t intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess the specified minimum limits of insurance and coverage shall be available to the City. k J F. contractors. Contractor shall include all subcontractors as insured under its policies or sl'Wfurnish separate endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. G. Required Endorsements 1. The Workers' Compensation policy shall contain an endorsement in substantially the following form: Thirty (30) days prior written notice shall be given to the City of West Covina in the event of cancellation, reduction in coverage, or nonrenewal of this policy. Such notice shall be sent to: City Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 2. The Commercial General Liability and Automobile Liability policies shall contain endorsements or policy terms in substantially the following form: 36 a. Thirty (30) days prior written notice shall be given to the City of West Covina in the event of cancellation, reduction in coverage, or non -renewal of this policy. Such notice shall be sent to: City Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 b. "The City of West Covina, its officers, employees, agents, and volunteers are additional insureds on this policy." C. "This policy shall be considered primary insurance as respects any other valid and collectible insurance maintained by the City of West Covina, including any self - insured retention or program of self-insurance, and any other such insurance shall be considered excess insurance only." d. "The City, its officers, agents, employees and volunteers shall be named as additional named insureds and such inclusion shall not affect the City's rights as respects any claim, demand, suit or judgment brought or recovered against the Contractor. The policy shall protect Contractor and the City in the same manner as though a separate policy had been issued to each, but this shall not operate to increase the Contractor's liability as set forth in the policy beyond the amount shown or to which the Contractor would have been liable if only one party had been named as an insured." H. Waiver of Subrogation. All iverage mamtam or procuropursuant to this Agreement shall be endorsed to waive subrogation against the City, its elected and appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a losEP Contractor hereby wanks its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. Delivery of Proof of Coverage. Simultaneously with the execution of this Agreement, Contractor shall furnish the City Risk Manager endorsements of each policy of insurance required hereunder, in form and substance satisfactory to City. Such endorsements shall show the type and amount of coverage, and effective dates and dates of expiration of policies. If the City Risk Manager so requests, copies of each policy, together with all endorsements, shall also be promptly delivered to City. Renewal certificates will be furnished periodically to City Risk Manager to demonstrate maintenance of the required coverage throughout the term of this Agreement or any extension thereof. J. Other Insurance Requirements. The Contractor shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve Contractor from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self -insured reserves is made by any third person against the Contractor or any subcontractor on 37 account of any occurrence related to the Agreement, the Contractor shall promptly report the facts in writing to the insurance carrier and to the City Risk Manager. If Contractor fails to procure and maintain any insurance required by this Agreement, the City may take out and maintain, at the Contractor's expense, such insurance as it may deem proper and deduct the cost thereof from any monies due the Contractor. The City reserves the right at any time during the term of this Agreement to change the amounts and types of insurance required by giving the Contractor a ninety (90)-day advance written notice of such change, subject to the special rate adjustment provisions set forth in Section 8.2. 9.3 Faithful Performance Bond Simultaneously with the execution of this Agreement, Contractor shall file with the City Manager a bond, payable to the City, securing the Contractor's faithful performance of its obligations under this Agreement. The principal sum of the bond shall be one million dollars ($1,000,000). The bond shall be executed as surety by a corporation authorized to issue surety bonds in the State of California, with a financial condition and record of service satisfactory to the City Manager. The bond shall be in the form approved by the City Manager and Cit.LAttomey. In the alternative, the Contractor may deposit a letter of credit or obtain and open a ceiTficate of deposit in the name of the City to be held to secure this faithful performanc% If there is an event of default as s4rth in Section 11.1, City may give to the Contractor at least fifteen (15) days written notice of@Fh event of default by the Contractor. S ch notice shall specify precisely the events constituting the default. Upon the failure or refusal qthe Contractor to cure the default with respect to such items thus specified within the time specified in such written notice, City may terminate this Agreement and declare the amount of such bond forfeited to City. ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE 10.1 General In addition to any and all other legal or equitable remedies, in the event that the Contractor, for any reason whatsoever, fails, refuses or is unable to collect, transport or deliver to the appropriate solid waste management facility any or all Solid Waste, Recyclables, or Organic Waste, which it is required by the Agreement to collect and transport, at the time and in the manner provided in this Agreement, for a period of more than seventy-two (72) hours, and if, as a result thereof, Solid Waste, Recyclables, or Organic Waste should accumulate in the City to such an extent, in such a manner, or for such a time that the City Manager should find that such accumulation endangers or menaces the public health, safety or welfare, then the City Manager shall have the right, but not the obligation, without payment to Contractor upon twenty-four (24) hours prior written notice to Contractor during the period of such emergency as determined by City Manager, (1) to cause to be performed such services itself with its own or other contracted personnel without liability to Contractor; and/or (2) to take possession of any of all of Contractor's land, equipment and other property used or useful in the collection and transportation of Solid Waste, Recyclables, or Organic Waste, and to use such property to collect and transport any Solid Waste, Recyclables, or Organic m Waste generated within the City which Contractor would otherwise be obligated to collect and transport pursuant to this Agreement. Notice of the Contractor's failure, refusal or neglect to collect and transport solid waste may be given orally by telephone to the Contractor at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty-four (24) hours of the oral notification. Contractor further agrees that in such event: (1) It will fully cooperate with City to effect the transfer of possession of property to the City for City's use. (2) It will, if the City Manager so requests, and to the extent feasible, keep in good repair and condition all of such property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. (3) The Citry agrees that it assumes complete responsibili for the pro er and normal use of such equipment and facilities while in its possion. (4) Contractor shall provide all necessary billing information and retractor and Ci y Manager shall determine how to bill, in what amounts, and the distribution of amounts received. The City's exercise of its rights under this Article 10: (1) does not constitute a taking of private property for which compensation must be paid but an exercise of the City'l police power, (2) will not create any liability on the part of City to Contractor; and (3) does not exempt Contractor from the indemnity provisions of Section 9, which are meant to extend to circumstances arising under this Section, provided that Contractor is not required to indemnify City against claims and damages arising from the sole negligence of City, its officers, employees, agents, or volunteers acting under this Section, and (4) does not terminate this Agreement, unless termination occurs under other provisions of this Agreement. 10.2 Duration of City's Possession City has no obligation to maintain possession of Contractor's property and/or continue its use in collecting and transporting Solid Waste, Recyclables, or Organic Waste for any period of time and may, at any time, in its sole discretion, relinquish possession to the Contractor. The City's right to retain temporary possession of Contractor's property, and to provide solid waste collection services, shall continue until Contractor can demonstrate to the City Manager's reasonable satisfaction that it is ready, willing and able to resume such services. 39 ARTICLE 11. DEFAULT AND 11.1 Events of Default Each of the following shall constitute an event of default ("event of default") hereunder: A. Contractor fails to perform its obligations under this Agreement, as it may be amended from time to time, and: (1) if the failure or refusal of Contractor to perform as required by Section 9.2 of this Agreement is not cured within two (2) business days after receiving notice from the City specifying the breach; (2) if the Contractor has failed or refused to collect, transport, process, or dispose Solid Waste Recyclable Materials, or Organic Waste in accordance with Sections 5.3, 5.4 and 5.5 and the failure or refusal is not cured within five (5) business days after receiving notice from the City specifying the breach; or (3) in the case of any other breach of the Agreement, the breach continues for more than thirty (30) calendar days after written notice from the City Manager for the correction thereof, provided that where such breach cannot be cured within such thirty (30) day period, Contractor shall not be in default of this Agreement if Contractor shall have commenced such action required to cure the particular breach within ten (10) calendar days after such notice, and it continues such performance diligently until completed. EW B.4% Any representation or disclosure made to City by Contra connection with or as an inducement to entering into this Agreement or any future amendmen ti this Agreemeit, which proves to be false or misleading in any material respect as of the time the representation or disclosure is made, whether or not any such repsentation or disclosure appears as part of this Agreement. C. There is a seizure or attachment (other than a prejudgment ttachment) or levy affecting possession on, the operating equipment of Contractor, including witho imit its vehicles, maintenance or office facilities, or any part thereof of such proportion as t aterially impair Contractor's ability to perform under this Agreement and which cannot be releas bonded, ofbtherwise lifted within seventy-two (72) hours excluding weekends and holidays. D. Contractor files a voluntary petition for debt relief under any applicable bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in or consents to the appointment of or taking of possession by a receiver, liquidator, assignee (other than as a part of a transfer of equipment no longer useful to Contractor or necessary for this Agreement), trustee (other than as security for an obligation under a deed of trust), custodian, sequestrator (or similar official) for any part of the Contractor's operating assets or any substantial part of Contractor's property, or makes any general assignment for the benefit of Contractor's creditors, or fails generally to pay Contractor's debts as they become due or shall take any action in furtherance of any of the foregoing. E. Any court having jurisdiction enters a decree or order for relief in respect of the Contractor, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or similar law now or hereafter in effect, or Contractor consents to or fails to oppose any such proceeding, or any such court enters a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Contractor or for any part of the Contractor's operating equipment or assets, or order the winding up or liquidation of the affairs of Contractor. F. Contractor fails to provide reasonable assurances of performance as required under Section 11.6. 11.2 Rieht to Terminate Upon Default Upon a default by Contractor, after any required notice, the City Council shall have the right to terminate this Agreement without need for any hearing, suit or legal action. The Contractor then shall forfeit $100,000 from its performance bond, certificate of deposit or letter of credit to City as liquidated damages. The City and Contractor agree that as of the time of execution of this Agreement it is almost impossible to ascertain the extent of any damages incurred by City from Contractor's breach of this Agreement and that the sum of $100,000, to be withheld from the performance bond, Certificate of Deposit or letter of credit represents a reasonable amount in light of such circumstances; except that this amount shall not be a limitation under Section 7.4. 1n Possession of Propertv Upon TerminatioA In the event of termination for default, the City shall have the right to 17sionof e in the provision of services enumerated under this Agreement any and all of Contractor's land, equipment, and other property (excepting Solid Waste) used or useful in the collection and transportation of solid waste and the billing and collection of fees for these services. The City shall have the right to retain the possession of such property until other suitable arrangements can be made for the provision of solid waste collection services, which may include the award of an agreement of another waste hauling company, but in no case for more than forty-five (45) days. If the City retains possession thereof after the period of time for which Contractor has already been paid by means of bills issued in advance of providing service for the class of service involved, the Contractor shall be entitled to the reasonable rental value of such property. Contractor shall famish the City Manager with immediate access to all of its business records related to its billing of accounts for services. 11.4 City's Remedies Cumulative: Specific Performance The City's right to terminate the Agreement under Section 11.2 and to take possession of the Contractor's properties under Section 11.3 are not exclusive, and the City's termination of the Agreement shall not constitute an election of remedies. Instead, they shall be in addition to any and all other legal and equitable rights and remedies which the City may have. By virtue of the nature of this Agreement, the urgency of timely, continuous and high quality service, the lead time required to effect alternative service, and the rights granted by City to the Contractor, the remedy of damages for a breach hereof by Contractor may be inadequate and City shall be entitled to injunctive relief. 41 ATTACHMENT NO. 1 OPTION 1: SB 1383 IMPLEMENTATION AND BEAUTIFICATION SERVICES AMENDED AND RESTATED FRANCHISE AGREEMENT BETWEEN THE CITY OF WEST COVINA AND Final [ ], 2022 JD OTHER HEREIN 11.5 Excuse from Performance The Parties shall be excused from performing their respective obligations hereunder in the event they are prevented from so performing by reason of floods, earthquakes, other "acts of God," war, civil insurrection, riots, acts of any government (including judicial action), pandemics, and other similar catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from performance hereunder. Labor unrest, including but not limited to strike, work stoppage or slowdown, sickout, picketing, or other concerted job action conducted by Contractor's employees or directed at Contractor is not an excuse from performance and Contractor shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events; provided, that in the case of labor unrest or job action directed at a third party over whom Contractor has no control, the inability of Contractor to make collections due to the unwillingness or failure of the third party to provide reasonable assurance of the safety of Contractor's employees while making collections or to make reasonable accommodations with respect to container placement and point of delivery, time of collection or other operating circumstances to minimize any confrontation with pickets or the number of persons necessary to make collections shall, to that limited extent, excuse performance and provided further than the foregoing excuse shall be conditioned on Contractor's cooperation in making collection at different times and in different loeetions.14%. The Party claiming excuse from performance shall, within two (2) days after Party has note e of such cause, give the other party written notice of the facts consti tang such cause and asserting its claim to excuse under this Section. Notwithstanding, Contract n the vent of a catastrophic event shall comply with City's emergency preparedness plan. In the event that either Party validly exercises its rights under this Section, the Parties h y waive any claim against each other for any damages sustained thereby. Notwithstan the foregoing, howe (1) the existeintracto? Iof an excuse from perform will not affect the City's rights undefArtic , and (2) if is excused from ng its obligations hereunder for any of the causes listed in this Section for a period of thirty (30) days or more, other than as the result of third party labor disputes where service cannot be provided for reasons described earlier in this Section, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions of Section 11.3 will apply. 11.6 Ri¢ht to Demand Assurances of Performance If Contractor (1) is the subject of any labor unrest including work stoppage or slowdown, sickout, picketing or other concerted job action; (2) appears in the reasonable judgment of City to be unable to regularly pay its bills as they become due; or (3) is the subject of a civil or criminal investigation, charge, or judgment or order entered by a federal, state, regional or local agency for violation of a law relating to performance under this Agreement, and the City Manager believes in good faith that Contractor's ability to perform under the Agreement has thereby been placed in substantial jeopardy, the City Manager may, at his option and in addition to all other remedies the City may have, demand from Contractor reasonable assurances of timely and proper performance of this Agreement, is such form and substance as the City Manager believes in good faith is reasonably 42 necessary in the circumstances to evidence continued ability to perform under the Agreement. If Contractor fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by City Manager, such failure or refusal shall be an event of default for purposes of Section 11.1. ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES 12.1 Relationship of Parties The Parties intend that Contractor shall perform the services required by this Agreement as an independent contractor engaged by City and not as an officer or employee of the City nor as a partner of or joint venture with the City. No employee or agent of Contractor shall be or shall be deemed to be an employee or agent of the City. Except as expressly provided herein, Contractor shall have the exclusive control over the manner and means of conducting the Solid Waste, Recyclables, and Organic Waste collection services performed under this Agreement, and all persons performing such services. Contractor shall be solely responsible for the acts and omissions of its officers, employees, subcontractors and agents. Neither Contractor nor its officers, employees, subcontractors and agents shall obtain any rights to retirement benefits, workers' cgWpensation benefits, or any other benefits whic�accrue to s it employment with the City. Contractor shall not, at any time in any manner, represent that it or any oliaglents or employees are in any manner a or employees of City. Contractor shall secure, at its sole expense, and be responsible f y and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Contractor and its officers, agents, and employees, and all business licences, if any are required, in connection with the services to be performed hereunder. 12.2 Compgance�th�l�w MAL In providing the services required under this Agreement, Contractor shall at all times, at its sole cost, comply with all applicable laws of the United States, the State of California, the County of Los Angeles and the City and with all applicable regulations promulgated by federal, state, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended during the term of this Agreement and any extension thereof. 12.3 Governin¢ Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, the Parties agree that this Agreement is made in and will be performed in Los Angeles County. 43 12.5 Assignment Except as provided in Section 12.6, neither Party shall assign its rights nor delegate or otherwise transfer its obligations under this Agreement to any other person without the prior written consent of the other Party. Any such assignment without the consent of the other Party shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this Section, "assignment" shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Contractor's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of 50% or more of the outstanding common stock of Contractor, unless the change results merely in one of several prior owners increasing his or her ownership; (iii) any reorganization, consolidation, merger recapitalization, stock issuance or re -issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction to which Contractor or any of its shareholders is a party which results in a change of ownership or control of 50% or more of the value or voting rights in the stock of Contractor unless the change results merely in one of several prior owners increasing his or her ownership; and (iv) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer or change of ownership. For purposes of thcSection, the terra "proposed assignee" shall efer to tlw1" ar) -- --t—r successors) in interest pursuant to the assignment. Contractor acknowledges that this Agreement involves rendering a vital service to City's residents and businesses, and that the City Council has selected Contractor to perform the services specified herein based on (1) Contractor's experience, skill and reputation for conducting its solid waste and recycling management operations in a safe, effective and responsible fashion, at all times in keeping with applicable waste management laws, regulations and good waste management practices, and (2) Contractor's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. The City Council has relied on eac}r of these factors, among `hers, inl jioosinj Contrac to erform the services to be rendered by —Contractor under this Agreement. If Contractor requests City's consideration of and consent to an assignment, the City Council may deny or approve such request in its complete discretion. No request by Contractor for consent to an assignment need be considered by the City Council unless and until Contractor has met the following requirements: A. Contractor shall undertake to pay City the amount, as determined by the City Manager, of its reasonable direct and indirect administrative expenses, including but not limited to consultant costs and attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment; B. Contractor shall furnish City Manager with audited financial statements (audited, if possible) of the proposed assignee's operations; C. Contractor shall furnish City Manager with satisfactory proof: (i) that the proposed assignee has at least five (5) years of solid waste management experience of a scale equal to or exceeding the scale of operations conducted by Contractor under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any citations or other censure from any federal, state or local agency having jurisdiction over its waste management operations due to any significant failure to comply with state, federal or local waste management laws and that the assignee has provided with City Manager with a complete list of such citations and censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its solid waste management practices in accordance with sound waste management practices in full compliance with all federal, state and local laws regulating the collection and disposal of waste, including hazardous waste as identified in Title 22 of the California Code of Regulations; (v) of any other information required by City Manager to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner. At the point of transition, Contractor will cooperate with City and subsequent contractor(s) or subcontractors to assist in an orderly transition which will include Contractor providing route lists and billing information. In connection therewith, Contractor acknowledges that the provisions of Public Resources Code Sections 49520-49523 have no application to this Agreement and agrees, to the extent such sections may have application, to waive whatever rights they may afford. E Any application for a franchise er shall be governed by the owing n ons: 01). Any application for a franchise transfer shall be made in a manner prescribed by the City Manager. The application shall includ a deposit in an amount determined by the City Manager sufficient to meet the costs identifie bove. Additional bills in excess of the amount deposited shall be supported with evidence of 1c, expense or cost incurred. The applicant shall pay such bills within (30) days of receipt. Any s amounts are over and above any franchise fee specified in this Agree 12. SubcontractinILI OM160,AL, JL Contractor shall not engage any subcontractors for collection of Solid Waste, Recyclables, and Organic Waste without the prior written consent of the City Manager. All of the requirements of Section 9 shall apply to subcontractors. 12.7 Binding on Successors The provisions of this Agreement shall inure to the benefit of and be binding on the successors and permitted assigns of the Parties. 12.8 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any persons other than the Parties to it and their representatives, successors and permitted assigns. 12.9 Waiver The waiver by either Party of any breach or violation of any provision of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent 45 breach of violation of the same or any other provision. The subsequent acceptance by either Party of any monies which become due hereunder shall not be deemed to be a waiver of any preexisting or concurrent breach of violation by the other Party of any provision of this Agreement, except the payment of monies so accepted and only to the extent of monies so owing. 12.10 Contractor's Investigation The Contractor has made an independent investigation (satisfactory to it) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.11 Condemnation In addition to its rights under Section 10.1, the City fully reserves any rights it may otherwise have to acquire the Contractor's property utilized in the performance of this Agreement, by purchase or through the exercise of the right to eminent domain. 12.12 Notice All notices, demands, requests, proposals, approvals, consents and other communications which th% Agreement requires, authorizes or contemplates shall all',Tcept as otherwise specifically provided, be in writing and shall be effective when personally delivered to a representative of t�e parties at the address below or deposited in the United States mail, first class postage prepa , ai Ar City Manager City of West Covina 1444 West Garvey Avenue West Covina, CA 91793 Eftowirns Services P.O. Box 60009 14048 Valley Boulevard City of Industry, CA 91715-0009 The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this Section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three (3) days from the date it is deposited in the mail. 12.13 Representative of the Parties Upon execution of this Agreement, the Contractor shall, by letter, designate in writing a responsible officer who shall serve as the representative of the Contractor in all matters related to the Agreement and shall inform the City Manager in writing of such designation and of any limitations upon his or her authority to bind the Contractor. The City may rely upon actions taken by such designated representative as action of the Contractor unless they are outside the scope of the authority delegated to him/her by the Contractor as communicated to City Manager. ARTICLE 13. MISCELLANEOUS PROVISIONS 13.1 Entire Agreement This Agreement, including the Exhibits, represents the full and entire Agreement between the parties with respect to the matters covered herein. 13.2 Section Headings The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 13.3 References to Laws A4kreferences in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recodifiedunless other specifically provided. 13.4 Interaretation IL Thisgreement shall be interpreted and Pa egardless of the degree to which ei and neither for nor against either in its drafting. 13.5 Amendment This Agreay not be modified or 3mded in any res ect eby a writing si d by the Parties. Y 13.6 Severability If any provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 13.7 Counterparts This Agreement may be executed in counterparts each of which shall be considered an original. 13.8 Exhibits Each of the following Exhibits is attached hereto and incorporated herein and made a part hereof by this reference. Exhibit A — Automated Service Program 47 Exhibit B — Frequency and location of City bins and collection Exhibit C — MRF/Solid Waste Transfer Facility Exhibit D — Recycling Public Education program Exhibit E — Current rates [SIGNATURE PAGE FOLLOWS.] IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written. DATED: CITY OF WEST COVINA David Carmany City Manager ATTEST Lisa Sherrick Assistant City Clerk I APPROVED AS TO FOO Thomas P. Duarte City Attorney DATED: ARAKELIAN ENTERPRISES, INC. Ron Arakelian, III Executive Officer EXHIBIT A AUTOMATED SERVICE PROGRAM Unless otherwise modified by Section 5.17 of the Agreement, all solid waste and recyclables in residential black automated containers, commercial bins and roll -offs will be processed at the materials recovery facility. Recyclables will be extracted from the waste stream, prepared for shipment and delivered to the market place. Contractor shall divert salvageable materials to achieve landfill diversion goals, as set out in Section 7.4 of the Agreement. Exhibit A-1 EXHIBIT B WEST COVINA CITY SERVICES Location/Number of Free Service Bins/Barrels Account Street # Street Name Equipment City of West Covina 2021 Alwood Street 3YD Galster Park 1620 Aroma Drive 3YD Fire Station 1801 Azusa Avenue 3YD Woodgrove Park 300 Brentwood Drive 3YD Cameron Park 1305 Cameron Avenue 3 YD Cameron Park 1305 Cameron Avenue 3YDR Heritage Park 3510 Cameron Avenue 3YD Maverick Dev Group Baseball 300-330 Citrus Street 3 YD Cortez Park 2441 Cortez Street 3YD Fire Station 2441A Cortez Street 3 YD Senior Citizen 2501 Cortez Street 3 YD orte Little League 1501A Del Norte Street 3 Fo d Center *all 4032 Ellesford Avenue 3 I West Covina 1444A Garvey Avenue 3 West Covina City Hall 1444A arvey Avenue 3 DR West Covina City Hall 1444A Garvey Avenue 3YDR West Covina City Hall 1444A Garvey Avenue 3YDR Communication Center 1444B Garvey Avenue 3YD Orangewood Park 1615 Merced Avenue 3YD Administration Building 1717- Merced Avenue 3 YD Walmerado Park 625 Merced Avenue 3 YD Palm View Park 1340 Puente Avenue 3YD Palm View Park � Puente Avenue 3YDR Palmview Little League 1340A Puente Avenue 3YD Fire Station & Library 1435 Puente Avenue 1.5YD Del Norte Park 1500 Rowland Avenue 3YD Friendship Park 3740 Sentous Avenue 3YD Shadow Oak Park 2121 Shadow Oak Drive 3YD Shadow Oak Park 2121 Shadow Oak Drive 3YDR Fire Station 2610 Shadow Oak Drive 1.5 YD Fire Department & City Yard 819 Sunset Avenue 1.5YD West Covina City Yard 825 Sunset Avenue 1 OYD West Covina City Yard 825 Sunset Avenue 1 OYD West Covina City Yard 825 Sunset Avenue 3YD West Covina City Yard 825 Sunset Avenue 40YD Orangewood League 851 A Sunset Avenue 3YD Bus Shelter Baskets Various Exhibit B-1 TABLE OF CONTENTS Page ARTICLE 1. DEFINITIONS; DELEGATION OF AUTHORITY ....................................... 2 ARTICLE 2. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR.............................................................................................. 6 2.1 Corporate Status..................................................................................................... 6 2.2 Corporate Authorization........................................................................................ 6 ARTICLE 3. TERM OF AGREEMENT............................................................................... 6 3.1 Effective Date and Term of Agreement................................................................. 6 3.2 Conditions to Effectiveness of Agreement............................................................ 7 ARTICLE 4. FRANCHISE................................................................................................... 7 4.1 Grant of Franchise: Scope of Franchise................................................................. 7 4.2 Prior Agreements and Amendments .....................Error! Bookmark not defined. 4.3 Franchise Fee Agreement...................................................................................... 9 4.4 Annual Payment for Discretionary Use................Error! Bookmark not defined. ARTICLE 5. Wn TION SERV ES........... .... 5.1 �ner................... ..................................................5.2 Conti.................. ................. ............................ ....... 1 5.3 Resida Collectio S ces.......... .......................... ....... 10 5.4 CommCollectio ...... ............... ...... ................. .......11 5.5 City Facilities Collection .......... ........ .............. ........ ................. ....... 12 5.6 City Beautification................................................. .......................... ...... 12 5.7 Contractor's Inability to Provide Service .............. ............................ ...... 14 5.8 Hours of Collection ............... .. ... ............................ ... 15 .............. 5.9 Collection Standards 15 fitterAbatement.................................................................................................. 16 5.11 Transportation, Processing and Disposal of Solid Waste .................................... 16 5.12 Vehicles................................................................................................................17 5.13 Solid Waste Containers........................................................................................ 18 5.14 Personnel..............................................................................................................20 5.15 Hazardous Waste................................................................................................. 20 5.16 Review of Performance and Quality of Service and Industry Changes ............... 21 5.17 Transition to Three -Container Collection System ............................................... 21 5.18 Organic Waste Program....................................................................................... 21 5.19 Contamination Protocols...................................................................................... 24 5.20 Food Recovery Assistance................................................................................... 25 ARTICLE 6. OTHER COLLECTION -RELATED SERVICES, STANDARDS AND AGREEMENTS................................................................................... 25 6.1 Billing.................................................................................................................. 25 6.2 Annual Reports.................................................................................................... 27 6.3 Annual Audit........................................................................................................ 27 -i- TABLE OF CONTENTS (continued) Page 6.4 Recordkeeping..................................................................................................... 27 6.5 Right to Inspect Records...................................................................................... 27 6.6 Inspection by City ................................................................................................ 28 6.7 Public/Customer Service and Accessibility ......................................................... 28 6.8 Service Complaints.............................................................................................. 29 6.9 City's Right to Change Scope of Work............................................................... 29 6.10 Title to Solid Waste............................................................................................. 29 6.11 Nondiscrimination................................................................................................29 6.12 Change in Collection Schedule............................................................................ 29 6.13 Report Accumulation of Solid Waste; Unauthorized Dumping .......................... 29 ARTICLE 7. CALIFORNIA INTEGRATED WASTE MANAGEMENT ACT OF 1989 (`AB 939'): OPERATIONAL AND REPORTING REQUIREMENTS......................................................................................... 30 7.1 Implementation of SRRE..................................................................................... 30 7.2 Other Recycling Programs................................................................................... 30 MRF/'Tpnsfer Station Proposal ....... ................. .... Diversion Guarantee ....................... ................. ........... 7.5 Annual AB 939 Reporting Require ts.................T 7.6 AB 939 Staffing Position ............. .. ................. ........................... 317.7 Public Outreach Program......................................................I................ 317.8 Use of Recycled Materials................................................................... 327.9 Participationin In egrated Waste Manag ent Pro am FugdingAgreement......... ................................................................ 327.10 Change in Laws ... ............................. ........... ......................... 32ARTICLE 8. SERVIC,� RA ND E' IEW... ......... ......................... 32 Rates........................................................................................................................... 32 8.2 Special Rate Adjustments.................................................................................... 33 8.3 Procedures Upon Invalidation of Rate Adjustment ............................................. 33 8.4 Intentionally Omitted............................................Error! Bookmark not defined. 8.5 Publication of Rates............................................................................................. 34 8.6 Intentionally Omitted............................................Error! Bookmark not defined. ARTICLE 9. INDEMNITY, INSURANCE, BOND........................................................... 34 9.1 Indemnification of City ........................................................................................ 34 9.2 Insurance.............................................................................................................. 35 9.3 Faithful Performance Bond.................................................................................. 38 ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE .................................................. 38 10.1 General.................................................................................................................38 10.2 Duration of City's Possession.............................................................................. 39 ARTICLE 11. DEFAULT AND REMEDIES....................................................................... 40 TABLE OF CONTENTS (continued) 11.1 Events of Default........................................................... 11.2 Right to Terminate Upon Default .................................. 11.3 Possession of Property Upon Termination .................... 11.4 City's Remedies Cumulative: Specific Performance..... 11.5 Excuse from Performance .............................................. 11.6 Right to Demand Assurances of Performance ............... Page ................................... 40 ................................... 41 ................................... 41 ................................... 41 ................................... 42 ................................... 42 ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES .............................................. 43 12.1 Relationship of Parties ............... 12.2 Compliance with Law ................ 12.3 Governing Law .......................... 12.4 Jurisdiction ................................. 12.5 Assignment ................................ 12.6 Subcontracting ........................... 12.7 Binding on Successor ................. 12.8 Parties in Interest ........................ 6.9 Waiver.. .10 Contractor's Investigation.......... 12.11 Condemnation ............................ 12.12 Notice ......................................... 12.13 Representative of the Parties...... LE 13. MISCELLANEOUS AGRE] 13.1 Entire Agreement 13.2 Section Headings 13.3 AWrences to LaN t ................................... 43 ................................... 43 ................................... 43 ................................... 43 ................................... 44 ................................... 45 ................................... 45 ................................... 45 .. ......... ......... ....................... ......... 46 ................. ......... 46 .. ................. ......... 47 ..................... ....... 47 ....................... ....... 47 ....................... ......... 47 ...................... ..`... 47 ............... 47 13.6 Severability..........................................................................................................47 13.7 Counterparts.........................................................................................................47 13.8 Exhibits................................................................................................................ 47 EXHIBIT C MATERIALS RECOVERY FACILITY/SOLID WASTE TRANSFER FACILITY ("MRF") Contractor shall accept all Solid Waste and Recyclables in the waste stream collected under this Agreement at its MRF facility. Contractor shall process all materials suitable for recycling and shall transport the residue for recycling and shall transport the residue to a landfill, transfer station or other permitted disposal site. Contractor has the right to recycle and reuse any materials collected under the Agreement and retain any payments for such materials. Contractor, at its sole expense, shall at all times maintain the MRF in good condition and operating order and make any and all necessary repairs. Contractor shall comply with all applicable laws and regulations in operation of the MRF. Upon notice to Contractor, not more frequently than annually, City may audit or cause to be audited MRF performance or City diversion rates and other AB 939 requirements. Exhibit C-1 MI-121TI-3wil PUBLIC EDUCATION PROGRAM Contractor and City shall work together to meet the following objectives of the Education and Public Information Component of the SRRE by providing funding, staff and programs: 1. Develop and send to subscribers an explanation of the new MRF/system and the reasons for source reduction and recycling. (Contractor) 2. As part of the Residential Sector Promotional Campaign, develop quarterly mailers to be approved by City and included in the billings targeting recycling issues including, but not limited to composting of green waste, operation of a MRF & MRF tours, markets for recycled products, and hazardous waste handling, and other special services. (City to provide initial mailer, Contractor to print; goal is Multilingual.) 3. As part of the Residential Sector Education and Information Program, schedule and publicize community meetings, cable shows, displays and MRF tours. (Residential includes "multi -family.") 4. * partofthe School Curricula Programis , design and r entat s for 11 school districts (and school clubs upon request) within West vina, educ e children and staff on reduction, reuse and recycling. Contra for also sh chedule MRF tours. 5. As part of the Nonresidential Program, prepare aid distri te, at leas uarterly, bulletins, mailers and articles, directly or through community business organizations. Such information shall describe the methods and benefits of diversion for all generators, as well as specific generators such as offices, retail, hospitals, contractors and %gardening. For, example, targeted/programs. for landscapers/gardeners would deal with recycling or composting yard waste and could train them in community green waste programs. Develop and present programs to local groups, such as an instructional video tape for target generators and to train representatives who can train others on waste evaluation and diversion. 6. Provide information on the West Covina website providing diversion, recycling, reuse and recycled market information. Evaluate the effectiveness of its programs and modify programs as necessary given that feedback. Exhibit D-1 EXHIBIT E Maximum Service Rates [Athens to insert] Exhibit G-2 ATTACHMENT NO.2 OPTION 2: SB 1383 IMPLEMENTATION ONLY AMENDED AND RESTATED FRANCHISE AGREEMENT BETWEEN THE CITY OF WEST COVINA AND Final [ ], 2022 JD OTHER HEREIN AMENDED AND RESTATED AGREEMENT THIS AMENDED AND RESTATED FRANCHISE AGREEMENT ("Agreement"), made and entered into as of the day of , 2022, by and between the CITY OF WEST COVINA, a municipal corporation, hereinafter referred to as "the City," and ARAKELIAN ENTERPRISES, INC., a California corporation, dba ATHENS SERVICES, hereinafter referred to as "Contractor". City and Contractor may be individually referred to herein as "Party" and collectively as "Parties." WITNESSETH WHEREAS, Chapter 12 of the West Covina Municipal Code defines and regulates the collection of solid waste, recyclables, and organic waste within the City; and WHEREAS, pursuant to Section 12-17(a) of Chapter 12 of the West Covina Municipal Code, the City is authorized to provide collection of solid waste, recyclables, and organic waste within the City by exclusive franchise; and WHEREAS, in May 1999, the City Council of the City of West Covina approved the Amended and Restated Agreement between the City of West Covina and Contractor, which was modified in ten subsequent amendments addressing changes deer d necc, ary by the Parties from time to time; and WHEREAS, the City, for the purpose of ensuring the continued protection and p ervation of the public health, welfare, and convenience of the people of the City, deems it a sable to continue to provide for the collection of solid waste, recyclables� and organic waste, 'thin the City by exclusive franchise contract with Contractor; and, I 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; and 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; and WHEREAS, the provision of solid waste collection 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, and it is in the City's best interest for the Contractor to collect solid waste; and WHEREAS, this Amended and Restated Agreement upholds the spirit of City and Contractor's original Agreement, and provides the modifications and service enhancements necessary for compliance with changes in law set forth herein; and TABLE OF CONTENTS Page ARTICLE 1. DEFINITIONS; DELEGATION OF AUTHORITY ....................................... 2 ARTICLE 2. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR.............................................................................................. 6 2.1 Corporate Status..................................................................................................... 6 2.2 Corporate Authorization........................................................................................ 6 ARTICLE 3. TERM OF AGREEMENT............................................................................... 6 3.1 Effective Date and Term of Agreement................................................................. 6 3.2 Conditions to Effectiveness of Agreement............................................................ 7 ARTICLE 4. FRANCHISE................................................................................................... 7 4.1 Grant of Franchise: Scope of Franchise................................................................. 7 4.2 Prior Agreements and Amendments .....................Error! Bookmark not defined. 4.3 Franchise Fee Agreement...................................................................................... 9 4.4 Annual Payment for Discretionary Use................Error! Bookmark not defined. ARTICLE 5. Wn TION SERV ES........... .... 5.1 �ner................... ..................................................5.2 Conti.................. ................. ............................ ......... 5.3 Resida Collectio S ces.......... .......................... ....... 10 5.4 CommCollectio ...... ............... ...... ................. .......11 5.5 City Facilities Collection .......... ........ .............. ........ ................. ....... 11 5.6 City Beautification................................................. .......................... ...... 12 5.7 Contractor's Inability to Provide Service .............. ............................ ...... 13 5.8 Hours of Collection ............... .. ... ............................ ... 13 .............. 5.9 Collection Standards 13 fitterAbatement.................................................................................................. 14 5.11 Transportation, Processing and Disposal of Solid Waste .................................... 14 5.12 Vehicles................................................................................................................15 5.13 Solid Waste Containers........................................................................................ 16 5.14 Personnel..............................................................................................................18 5.15 Hazardous Waste................................................................................................. 19 5.16 Review of Performance and Quality of Service and Industry Changes ............... 19 5.17 Transition to Three -Container Collection System ............................................... 20 5.18 Organic Waste Program....................................................................................... 20 5.19 Contamination Protocols...................................................................................... 22 5.20 Food Recovery Assistance................................................................................... 23 ARTICLE 6. OTHER COLLECTION -RELATED SERVICES, STANDARDS ANDAGREEMENTS................................................................................... 24 6.1 Billing.................................................................................................................. 24 6.2 Annual Reports.................................................................................................... 25 6.3 Annual Audit........................................................................................................ 25 -i- TABLE OF CONTENTS (continued) Page 6.4 Recordkeeping..................................................................................................... 26 6.5 Right to Inspect Records...................................................................................... 26 6.6 Inspection by City ................................................................................................ 26 6.7 Public/Customer Service and Accessibility ......................................................... 26 6.8 Service Complaints.............................................................................................. 27 6.9 City's Right to Change Scope of Work............................................................... 27 6.10 Title to Solid Waste............................................................................................. 27 6.11 Nondiscrimination................................................................................................27 6.12 Change in Collection Schedule............................................................................ 28 6.13 Report Accumulation of Solid Waste; Unauthorized Dumping .......................... 28 ARTICLE 7. CALIFORNIA INTEGRATED WASTE MANAGEMENT ACT OF 1989 (`AB 939'): OPERATIONAL AND REPORTING REQUIREMENTS......................................................................................... 28 7.1 Implementation of SRRE..................................................................................... 28 7.2 Other Recycling Programs................................................................................... 28 MRF/'Tpnsfer Station Proposal ....... ................. .... Diversion Guarantee ....................... ................. ........... 7.5 Annual AB 939 Reporting Require ts.................T 7.6 AB 939 Staffing Position ............. .. ................. ........................... 3 7.7 Public Outreach Program ......................................... ............. .I........ ........ 30 7.8 Use of Recycled Materials................................................................... 30 7.9 Participation in In egrated Waste Manag ent Pro am Fugding Agreement......... ................................................................ 307.10 Change in Laws ... ............................. ........... ......................... 30ARTICLE 8. SERVIC,� RA ND E' IEW... ......... ......................... 31 Rates........................................................................................................................... 31 8.2 Special Rate Adjustments.................................................................................... 31 8.3 Procedures Upon Invalidation of Rate Adjustment ............................................. 32 8.4 Intentionally Omitted............................................Error! Bookmark not defined. 8.5 Publication of Rates............................................................................................. 32 8.6 Intentionally Omitted............................................Error! Bookmark not defined. ARTICLE 9. INDEMNITY, INSURANCE, BOND........................................................... 32 9.1 Indemnification of City ........................................................................................ 32 9.2 Insurance.............................................................................................................. 33 9.3 Faithful Performance Bond.................................................................................. 36 ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE .................................................. 36 10.1 General.................................................................................................................36 10.2 Duration of City's Possession.............................................................................. 37 ARTICLE 11. DEFAULT AND REMEDIES....................................................................... 38 TABLE OF CONTENTS (continued) 11.1 Events of Default........................................................... 11.2 Right to Terminate Upon Default .................................. 11.3 Possession of Property Upon Termination .................... 11.4 City's Remedies Cumulative: Specific Performance..... 11.5 Excuse from Performance .............................................. 11.6 Right to Demand Assurances of Performance ............... Page ................................... 38 ................................... 39 ................................... 39 ................................... 39 ................................... 40 ................................... 40 ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES .............................................. 41 12.1 Relationship of Parties ............... 12.2 Compliance with Law ................ 12.3 Governing Law .......................... 12.4 Jurisdiction ................................. 12.5 Assignment ................................ 12.6 Subcontracting ........................... 12.7 Binding on Successor ................. 12.8 Parties in Interest ........................ 6.9 Waiver.. .10 Contractor's Investigation.......... 12.11 Condemnation ............................ 12.12 Notice ......................................... 12.13 Representative of the Parties...... LE 13. MISCELLANEOUS AGRE] 13.1 Entire Agreement 13.2 Section Headings 13.3 AWrences to LaN t ................................... 41 ................................... 41 ................................... 41 ................................... 41 ................................... 42 ................................... 43 ................................... 43 ................................... 43 43 44 ......... ......... 44 ....................... ......... 44 ................. ......... 44 .. ................. ......... 45 ..................... ....... 45 ....................... ....... 45 ....................... ......... 45 ...................... ..`... 45 ............... 45 13.6 Severability..........................................................................................................45 13.7 Counterparts.........................................................................................................45 13.8 Exhibits................................................................................................................ 45 AMENDED AND RESTATED AGREEMENT THIS AMENDED AND RESTATED FRANCHISE AGREEMENT ("Agreement"), made and entered into as of the day of , 2022, by and between the CITY OF WEST COVINA, a municipal corporation, hereinafter referred to as "the City," and ARAKELIAN ENTERPRISES, INC., a California corporation, dba ATHENS SERVICES, hereinafter referred to as "Contractor". City and Contractor may be individually referred to herein as "Party" and collectively as "Parties." WITNESSETH WHEREAS, Chapter 12 of the West Covina Municipal Code defines and regulates the collection of solid waste, recyclables, and organic waste within the City; and WHEREAS, pursuant to Section 12-17(a) of Chapter 12 of the West Covina Municipal Code, the City is authorized to provide collection of solid waste, recyclables, and organic waste within the City by exclusive franchise; and WHEREAS, in May 1999, the City Council of the City of West Covina approved the Amended and Restated Agreement between the City of West Covina and Contractor, which was modified in ten subsequent amendments addressing changes deer d necc, ary by the Parties from time to time; and WHEREAS, the City, for the purpose of ensuring the continued protection and p ervation of the public health, welfare, and convenience of the people of the City, deems it a sable to continue to provide for the collection of solid waste, recyclables� and organic waste, 'thin the City by exclusive franchise contract with Contractor; and, I 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; and 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; and WHEREAS, the provision of solid waste collection 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, and it is in the City's best interest for the Contractor to collect solid waste; and WHEREAS, this Amended and Restated Agreement upholds the spirit of City and Contractor's original Agreement, and provides the modifications and service enhancements necessary for compliance with changes in law set forth herein; and WHEREAS, this Agreement amends and restates, and as a result, supersedes and replaces in its entirety all prior agreements or understandings between the City and the Contractor. All such prior agreements and understandings are null, void and of no further force or effect unless this Agreement is deemed null, void and of no force or effect, in which case, the agreements and understandings in force or effect prior to the Effective Date herein, shall apply; and WHEREAS, City desires to maintain maximum flexibility in this Agreement to meet rapidly changing solid waste disposal and diversion laws and regulations. NOW, THEREFORE, in consideration of the premises and of the covenants and conditions hereinafter contained, the City and the Contractor mutually agree as follows: ARTICLE 1. DEFINITIONS; DELEGATION OF AUTHORITY A. Whenever any term used in this Agreement has been defined by the provisions of Chapter 12 of the West Covina Municipal Code, the definitions contained in said Code shall govern the meaning of such words for the purpose of this Agreement, unless any such word is otherwise sWecifically defined herein or unless it is obvious from the context hereof that another "dn is necessarily intended. B. The administration of this Agreement shall be under the supe i ion an of the City Manager's office and the actions specified herein shall be taken by the City Manager or his or her designees (the "City Manager") unless otherwise stated or specified. 0 C. As used herein, "Recyclables" shall mean items which cot}d have been removed from the solid waste stream by the household or commercial business for sale or donation, but have not been so removed at the source or have been placed for collection by the Contractor. The Parties understand that, although called "Recyclables" in the Agreement, the California courts have determined that such "Recyclables" become "Solid Waster' only when placed for collection under this Agreement and not removed from the waste stream and sold. D. "Annual Rate Adjustment" means the annual adjustment of Maximum Service Rates by 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). E. "Brown Goods" means electronic equipment such as stereos, televisions, computers, VCR's and other similar items collected from Residential Premises. F. `Bulky Item" shall have the meaning as defined in Section 5.3 of this Agreement. For the avoidance of doubt, Bulky Items are large items of Solid Waste of a nature and type that would not typically fit in a regular collection cart -sized container. Bulky Items require special handling due to their size but can be collected and transported without the assistance of special loading equipment (such as forklifts or cranes) and without violating vehicle load limits. Further, Bulky Items do not include abandoned automobiles and other vehicles, Construction and Demolition Waste, bags of Solid Waste, or Exempt Waste. 2 G. "Biohazardous" or "Biomedical Waste" means any waste which may cause disease or reasonably be suspected of harboring pathogenic organisms; included is waste resulting from the operation of medical clinics, hospitals, and other facilities processing wastes which may consist of, but are not limited to, human and animal parts, contaminated bandages, pathological specimens, hypodermic needles, sharps, contaminated clothing and surgical gloves. H. "Construction and Demolition Waste" or "C&D" means Solid Waste consisting of building materials, packaging and rubble resulting from construction, remodeling, repair, and demolition operations on pavement, residential, commercial or industrial premises, buildings, and other structures, and land clearing operations. I. "Contamination" means any of the following: (i) discarded materials placed in any container intended for recyclable materials that are not identified as acceptable Recyclables 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 in any container intended for Garbage are not identified as acceptable for such container; and (iv) any other items or substances, including but not limited to Exempt Waste, that are not Solid Waste, Recyclables or Organic Waste placed in any container not designated for such use. Contamination sW be determined by Contractor's visual or digital * spection. J. "CPI" or "Trash CPP' means the Consumer Price Index fo T rsh"Garbae Collection (CUUROOOOSEHG02), U.S. City Average (not seasonally adjusted), as published by the United States Department of Labor, Bureau of Labor Statistics, or an equivalent index approved by mutual agreement in the event said index is no longer published. A K. "CPI-U" means the Consumer Price Index for all urban consumles Los Angeles -Long Beach -Anaheim- area, non -housing, or an equivalent index approutual agreement in the event said index is no longe�ublished. MA L �`"Edible' Food" means food intended for human consumption. For 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. M. "Exempt Waste" means Biohazardous or Biomedical Waste, Hazardous Waste, Sludge, automobiles, automobile parts, boats, boat parts, boat trailers, internal combustion engines, lead -acid batteries, dead animals, and those wastes under the control of the Nuclear Regulatory Commission. N. "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). O. "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. P. "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). Q. "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. R. "Garbage" means all putrescible and non-putrescible solid, semi -solid and associated liquid waste, as defined in California Public Resources Code section 40191. Garbage does not include Recyclable Materials, Organic Waste, Large Items, or Exempt Waste. t S. "Green Waste" or "Yard Waste" means Solid Was a con g e waste generated from the maintenance or alteration of residential, com r al, or indus 1 premises including, but not limited to, grass clippings, leaves, tree trimmings, prunings, bins , weeds, flowers, herbs, and holiday trees. ` T. "Gross Receipts" means any /and all revenues recei from billings, and compensation in any form, received by Contractor or subsidiaries, pare t companies or other affiliates of Contractor, for the collection and transportation of Solid Waste pursuant to this Agreement, in accordance with generally accepted accounting principles, including, but not limited to, customer fees for collection of Solid Waste, without subtracting City fees. Sales revenue from the sale of Recyclable Materials to third partieAs excluded from Gross Receipts for the purpose of calculating Franchise Fees. U. "Hazardous Waste" means a waste, or combination of wastes as defined by Code of Federal Regulations, Title 40. Hazardous Waste also includes Household Hazardous Waste. V. "Household Hazardous Waste" means that waste resulting from products purchased by the general public for household use which, because of its quantity, concentration or physical, chemical or infectious characteristics, may pose a substantial known or potential hazard to human health or the environment when improperly treated, disposed or otherwise managed, or, in combination with other Solid Waste, may be infectious, explosive, poisonous, caustic, toxic, or exhibit any of the characteristics of ignitability, corrosivity, reactivity, or toxicity as per California Code of Regulations Title 22, Division 4.5, Chapter 11, Section 66261.3. W. "Illegal Containers" means those commercial bins or containers for the temporary accumulation of Solid Waste resulting from temporary activities on any premises, including but not limited to waste from the demolition or construction of a building, that are authorized for use by City or Contractor in violation of the Municipal Code. 0 X. "Multilingual" means more than two languages, including English, Spanish, and Mandarin, or any other languages as mutually agreed upon by the Parties. Y. "Municipal Code" means the West Covina Municipal Code. Z. "Organic Waste" shall have the meaning set forth in Public Resources Code Section 42649.8, and for the avoidance of doubt includes Food Waste, Green Waste, nonhazardous wood waste, and food -soiled paper waste that is mixed in with Food Waste. AA. "Organic Waste Processing Facility" means a Contractor -selected 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. BB. "Residential Premises" means single family dwellings and multi -family dwellings of four units or less. CC. "SB 1383" means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 3nf the Public Resources Code, establishing methane emission eduction targets in a statewide effort to reduce emissions of short- ' d climate pollutants as amended, supplemented, supersede, and replaced from time to time. L DD. "Sludge" means;ssing late solids, residues, rand pre4pitates generated as a result of waste treatment or pro, including wastewater treatment, water supply treatment, or operation of an air pollution &trol facility, and mixed liquids and solids pumped from septic tanks, grease traps, privies, or lar disposal appurtenances or any other such waste having similar characteristics or effects. , E1010"Solid AimikLmeans all putrescible and non-putrescible solid, semisolid, and liquid wastes, including Garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, Construction and Demolition wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, Exempt 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), as amended from time to time, and unless specified separately from Solid Waste in this Agreement, includes Brown Goods, Construction and Demolition Debris, Food Waste, Garbage, Green Waste, Bulky Items, Organic Waste, Recyclables, and White Goods. FF. "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) 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. GG. "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 -site 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. HH. "White goods" means enamel -coated major appliances, such as washing machines, clothes dryers, hot water heaters, stoves, and refrigerators. ARTICLE 2. REPRESENTATIONS AND WARRANTIES OF THE CONTRACTOR 2.1 Corporate Status Contractor is a corporation duly organized, validly existing and in good standing under the laws of the State of California. It is qualified to tram ct business in the State of California and has thecorporate power to own it properties and to c on its bus d and as required by this A emen 1 2.2 Corporate Authorizatio AW Contractor has the authority to enter into and perform its obligations under this Bement. The Board of Directors of Contractor (or the shareholders if necessary) have taken actions required by law, its articles of incorporation, bylaws or otherwise to authorize the e ution of this Agreement. The persons signing this Ag ement on behalf of Contractor have an ty to do SO. J ARTICLE 3. TERM OF AGREEMENT 3.1 Effective Date and Term of Agreement A. The term of this Amended and Restated Agreement shall be for twenty-five (25) years, commencing on November 1, 2012 and expiring on October 31, 2037; provided, however, that commencing on the first anniversary date of November 1, 2013 and on each anniversary date thereafter, a one-year extension shall be applied to said Agreement so that the term of the Agreement shall remain twenty-five (25) years subject to the wind -down provisions of Section 3.1(B). B. Notwithstanding the foregoing, should either Party desire that said one-year renewal and extension provision be terminated, such Party may give the other written notice of intent to terminate at least ninety (90) days prior to any anniversary date of any year which this Agreement is in full force and effect and written notice of termination at least sixty (60) days prior to any such anniversary date. Notwithstanding the foregoing, City shall not provide written notice of intent to terminate at any time prior to October 16, 2023. 0 During the thirty (30) day period following notice of intent to terminate, the terminating Parry shall hold at least one meet and confer session in the boundaries of the City or within a five - mile radius from City's City Hall during normal business hours at a time and place proposed by the non -terminating Parry. If the notice of termination is given, the one-year renewal and extension provision shall be terminated on the applicable anniversary date. Once the one-year renewal and extension provision is terminated, the remaining term of this Agreement shall be twenty-five (25) years from the date of termination, and this Agreement shall accordingly wind down from this date ("Wind -Down Period"). All other aspects of this Agreement shall remain in full force and effect during the Wind -Down Period, provided, however, that in the event that City issues provides a notice of termination, (i) Contractor shall cease any City Improvement Fee due or owing for the remaining term of the Agreement and (ii) City Beautification Services shall no longer be provided by Contractor to City free of charge, and Contractor shall charge City then -existing rates for City Beautification Services, which shall be exclusively provided by Contractor. C. Notwithstanding any provision in this Agreement to the contrary, the notice of termination shall not become effective if the Parties mutually agree to approve and execute an amendment to this Agreement. 3.7. Conditions to Effectiveness of Agreement The obligation of City to permit this Agreement to become effective and to orm Is undertakings provided for in this Agreement ement is s� ject to Contractor's satisfaction of and all of the conditions set out below. Accuracy of Representations. The representations and warrantee a( by ConOcA. tor in Article 2 of this AgrVment are true and coIect on and as of the Effecti at B. Absence of Litigation. There is no litigation pending on the Effective e in any court challenging the away or exertion of this Agreement or seeking to restrain join its performance. � ARTICLE 4. FRANCHISE 4.1 Grant of Franchise: Scope of Franchise A. Grant of Franchise. The City hereby grants unto the Contractor, and the Contractor shall have throughout the duration of this Agreement, the exclusive right to engage in the business of collecting Solid Waste, Recyclables, and Organic Waste, accumulating within the boundaries of the City as the same now exists, that is required to be accumulated and offered for collection to the Contractor in accordance with this Agreement and the Municipal Code. For avoidance of doubt, this exclusive franchise includes the collection and disposal of all Construction and Demolition Waste within the boundaries of the City. B. Annexations. This right extends to any territory annexed to the City hereafter except to the extent that collection within such territory so annexed would be unlawful or violate the legal rights of another person. Unless Contractor acquires or has acquired the collection rights of any other person then collecting Solid Waste, Recyclables, yard waste, or other compostables, 7 including Organic Waste, within any annexed territory at the time such annexation is effective, said exclusive right in each annexed territory shall commence ninety (90) days after each such annexation is completed, provided that if the City Council determines to the contrary by majority vote within said ninety (90) day period, such determination shall prevail. C. Scope of Franchise; Exclusions. The franchise granted to Contractor shall be exclusive except as to the following categories of Solid Waste, Recyclables, and Organic Waste listed in this subsection C. The granting of this franchise shall not preclude the categories of Solid Waste, Recyclables, and Organic Waste listed below from being delivered to and collected and transported by others, provided that nothing in this Agreement is intended to or shall be construed to excuse any person from obtaining any authorization from the City which is otherwise required by law: 1. Yard waste and other compostables removed from a premises by a gardening, landscaping, or tree trimming contractor as an incidental part of a total service offered by that contractor rather than as a hauling service. 2. By-products of sewage treatment, including sludge, grit and screenings. Residue or non-proces -covert', composting and or donate recyclables wasLwto Hazardous waste. waste fromsolid waste 191 facilities except as Individual households, school districts and commercjal business ay sell separated 17 from the solid waste stream or may co ost yard To the extent not addressed in the foregoing, Exempt Waste. D. Furthermore, the provisions of this Agreement shall not preclude or prohibit City or any officer of employee thereof or any public entity delegated the ability to do so by the City Council from itself collecting, removing, disposing or diverting of Solid Waste, Recyclables, and Organic Waste, in the regular course of their respective duties as such officers or employees; notwithstanding, the City shall be responsible for reporting all such diversion. 4.2 Compliance with AB 939 This Agreement is intended to carry out City's obligations to comply with the provisions of the California Integrated Waste Management Act of 1989 ("AB 939") as it from time to time may be amended, and as implemented by regulations of the California Integrated Waste Management Board ("Regulations"), as they from time to time may be amended. In the event that AB 939 or other state or federal laws or regulations, or case law decided by a court of final jurisdiction arising after this Agreement has been approved, prevent or preclude compliance with one or more provisions of this Agreement, such provisions of the Agreement shall be modified or suspended as may be necessary to comply with such state or federal laws, regulations or case law. No other amendment of this Agreement shall be valid unless in writing duly executed by the parties. 0 4.3 Franchise Fee The Contractor agrees to pay to the City a franchise fee of ten (10) percent of the Gross Receipts earned by the Contractor under this Agreement during each fiscal year ending June 30, or fraction thereof that this Agreement is in effect. Said sums shall be payable quarterly in the minimum amount of $100,000 on or before the 15th day of January, April, July, and October throughout the duration of this Agreement and the total amount paid each year shall be appropriately adjusted based on the annual reports required by this Agreement. The sums herein agreed to be paid to the City by the Contractor shall be in lieu of any and all business license or truck fees that are collected by the City except as set out under Section 7.3. 4.4 Annual Payment for Discretionary Use Contractor agrees to make on November 1 of each year of the term of this Agreement, an annual payment of $300,000 per year ("Annual Payment"), to be used at the discretion of the City; provided, however, that the requirements of this Section 4.4 shall become void and of no further force and effect upon any termination by the City of the one-year renewal and extension period set forth in Section 3.1 of this Agreement. 1 AR LE 5. WnELECTION SERVICES M" 5.1 General The services set forth herein are in addition to those in Article 7 and the remain of this Agreement. The work to be done by Contractor pursuant to this AgreeTent shall ude the furnishing of all labor, supervision, equipment, materials, supplies, and all other item cessary to perform the services required. The enumeration of, and specification of requir nts for, particular items of labor or equipment shall not relieve Contractor of the duty to furnis 1 others, as may be required, whether enumerated or not. The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough and professional manner so that the residents and businesses within the City are provided reliable, courteous and high -quality Solid Waste, Recyclables, and Organic Waste collection and diversion services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of accomplishing all other aspects in the manner provided in this Section, whether such other aspects are enumerated elsewhere in the Agreement or not. The Contractor agrees to submit route maps for all collection routes to the City Manager for review and approval. Start and end points for each daily route are to be clearly indicated. All collection services hereunder shall be automated. 5.2 Contingency Plan Contractor shall maintain and submit to City as requested, a written contingency plan demonstrating Contractor's arrangements to provide vehicles and personnel and to maintain 0 uninterrupted service during mechanical breakdowns or other emergencies, excluding events described in Section 11.5. This plan shall be consistent and coordinated with the City's Multi - Hazard Functional Plan. 5.3 Residential Solid Waste Collection Services Contractor shall collect and deliver to the appropriate facility all Solid Waste, Recyclables, and Organic Waste generated at Residential Premises within the City and delivered for collection not less than once per week. Subject to reduced low income/senior citizen rates as set out herein, Contractor shall provide special manual carry -out services for those residents determined to have difficulty doing so themselves due to physical disabilities (whether permanent or temporary) and/or the configuration of their property. Contractor may charge for this service only where it is requested by an otherwise capable resident solely for his/her convenience. Upon twenty-four (24) hours prior request, items for disposal other than ordinary Solid Waste shall be collected by the Contractor at no extra charge during the next normal weekly pickups. Except as otherwise arranged with Contractor as for move-ins/move-outs, there shall be a limitation that no more than five (5) such Bulky Items may be included for such pick up each week. Bulky Items but not be, limit large items that i lude or air f hairs, sofas, fas, mattresses, rugs, etc. AT- washers, dryers, water heaters, ng, refrig tors, s, small usehold tc. � ResideJWoaste - tre nches, scrContras b effo divert/ cycle all in a pron nique Bulky Items specifically exclude auto parts and bodies, liquid waste, manure and rocks, sod, concrete and similar materials, and Exempt Waste. All Bulky Items shall be collected at the curb or alley, including those from condominium, stock cooperative or community apartment projects. In addition to the weekly pick up of Bulky Items as provided for herein, Contractor upon request will schedule a quarterly Bulky Item pick up at multi -family developments that are Residential Premises at no additional charge to customers. Contractor shall send notice to each such multi- family development of such Bulky Item pickups at least thirty (30) days in advance of the scheduled event. The five (5) item per week limitation set forth hereinabove shall not apply to the quarterly Bulky Item pick up provided for in this paragraph. Additional special rates may be charged by the Contractor for the collection of other items of a dissimilar nature to those included in this Section. Such rates shall be determined by the Contractor, subject to approval by the City Manager or his or her designee, and paid in advance and shall be separate from and in no way connected to the regularly scheduled service rates. The fee may include a component for estimation of such rates. 10 Placement of bins in the street from residential scout service shall be limited to not more than one (1) business day. Materials shall be properly placed for collection under the requirements of the Municipal Code. Residents shall be required to bundle and tie all wood waste in lengths not to exceed four (4) feet with a diameter of three (3) feet. Any materials not properly placed for collection shall be tagged by the Contractor with a Multilingual red tag explaining the reason for non -collection. 5.4 Commercial/Industrial Collection Contractor shall collect and deliver to the appropriate facility all Solid Waste, Recyclables, and Organic Waste generated at commercial premises within the City contracting for services and delivered to a bin or otherwise properly placed for collection not less than once per week. Contractor shall collect and deliver to the appropriate facility all Solid Waste, Recyclables, and Organic Waste generated at industrial premises within the City contracting for services and delivered for collection to a debris box or bin (or otherwise properly placed for collection) as scheduled with each industrial generator. Contractor may contract with industrial or commercial firms to collect and dispose of waste materials which it is not licensed to remove and which present sgWiali Sne ms. Bins placestre7besteffo ciaUindustri�f scout servic"maynot let there more than one business day. Con actor shall use its divert or r ycle aterials cllect der this Section. 5.5 City Facilities A. Services Provided by Contractor. At no cost to the City, Contractor s a 1 collect and dispose of all Solid Waste, Recyclables, and Organic Waste generated at premises owned and/or operated by the City, including all City parksy or as otherwise designated by the City. Contractor shall make collections from cans Monday through Friday or on Saturdays following non -working holidays at the frequency set out in Exhibit `B." Commercial (bin) and industrial (debris box) collections shall be scheduled as designated by the City. The facilities to be provided service initially, together with the type and frequency of service, are listed in Exhibit `B," which may be modified or expanded by the City. Pursuant to this provision, City also may request bins, pickup and disposal or diversion for up to six (6) community events per year sponsored at least in part by City. B. Bulky Items. In addition, Contractor shall pick-up any Bulky Items as defined in Section 5.3 discarded on or along City right-of-ways open space or other City property within 24 hours of a request from City requesting such service. The services required by this Section shall be provided at no charge to the City. C. Assistance to School Districts. Contractor shall provide services to school district facilities within the City at the rate set out on Exhibit "E" and shall assist schools with programs required by AB 939. Such service shall include MU processing and the associated recycling program. 11 5.6 Annual Cleanup, Christmas Tree Collection and Illegal Hauling. A. Annual Cleanup Campaign. During one (1) particular week (or longer period as may be designated by the City Council and agreed to by Contractor) of each calendar year of the term of this Agreement, when such is declared by the City Council to be part of an annual clean-up campaign, the Contractor shall at locations in districts designated by the City Council and agreed to by Contractor, pick up and remove from Residential Premises Bulky Items dropped -off by customers such as, but not limited to, the following items and other items of a similar nature, at no cost to the customer: (i) furniture — chairs, sofas, mattresses, rugs, etc.; (d) appliances — washers, dryers, water heaters, plumbing fixtures, refrigerators, TVs, small household appliances, etc.; and (iii) Residential Wood Waste - tree branches, scrap wood, etc. Materials to be collected shall specifically exclude auto parts and bodies, and rocks, sod, and concrete and similar materials. Contractor shall also provide a plan for recovering reusable and recyclable materials offered for collection as part of the Annual Clean-up Campaign and for recycling at the source. B. Christmas Tree Collection. Contractor shall collect all Christmas trees on the first two scheduled pickup days after New Year's Day. Trees shall be diverted for deposit at a green waste or composting facility. C. Illegal H uling. In the event an unauthorized provider of Solid Waste services s out containers anywhere in the City, in violation of the exclusivity provision set forth in Secti n 4.1 of this Agreement, the City hereby delegates to Contractor the authority to remove and impound such containers. The delegation of authority to remove and impound such containers shall remain in effect until such time as City provides written notice to Contractot at such delegation has been revoked, and shall be subject to the following: ■ 9 1 Reimbursement of Costs. Contractor shall submit an invoice to City detailing any related to removal, transport, and storage associated with housing Illegal Containers in ing (i) $750 per container retrieval, adjusted annually by the percentage increase in CPI for the prior 12`-month period (March of the ci#ent year to March of the pMr year plus one percent (1%) (i.e., CPI +1); (ii) plus applicable disposal, processing, or similar fees and any storage costs. City shall reimburse Contractor for such amounts within ninety (90) days of the invoice. 2. Right to Refuse. Contractor may decline any City request to collect, store, or otherwise respond to any City request arising from an Illegal Container. 3. Indemnification. Notwithstanding any provision in this Agreement, City agrees to defend, indemnify, and hold harmless Contractor against all suits and causes of action, claims, losses, demands, and expenses, including but not limited to attorneys' fees, cost of litigation (to include actual litigation costs, such as the cost of experts and consultants), and damage or liability of any nature whatsoever arising from the collection, transportation, and storage of any Illegal Container, except to the extent any such claims, demands, losses, expenses, damages or liability arises from the negligence or willful misconduct of Contractor. 4. Excuse from Diversion. Contractor shall make a good -faith effort to divert the materials in any Illegal Container. The tonnages from the Illegal Container(s) shall be reported 12 on Contractor regular monthly and quarterly reports as a separate section and included in the overall diversion calculation. However, to the extent that any material collected from Illegal Container(s) is not recyclable or not otherwise subject to diversion (e.g., as Organic Waste), these waste tonnages shall be exempted from any diversion requirement applicable to Contractor. 5.7 Contractor's Inability to Provide Service If at any time during the effective period of this Agreement, should a customer of the Contractor request a collection service except for a special pick-up as set out in Section 5.3 (such as bin service for construction or demolition cleanup) from the Contractor which the Contractor cannot render within two (2) full working days from the date of the customer's initial request for service, the City Manager reserves the right to direct such customer to seek other providers who can provide such collection service regardless of the fact that such other provider does not hold a franchise with City for collection services. 5.8 Hours of Collection The Contractor agrees that it shall not allow Solid Waste, Recyclables, and Organic Waste collections to be made excing the hours specified in the Municipal Code for such colctions. Saturday se begin before 00 a.m. � M 5.9 Collection Standards A. Care of Private Property. Reasonable care shall be ujd by the Contractor's employees in handling all privately owned collection containers and enclosures, and all damage caused by the negligence or carelessness of the Contractor's employees shall be promptly adjusted with the owner thereof. All collktion containers after emptying thereof shall be returned to within five (5) feet of the location from which the a were ed up by the Contractor's employees, upright (wit s properly secured) Contractor's employees shall use all reasonable means to ensure containers are not deposited in any driveway, sidewalk, or street, other than the curb. Contractor shall ensure that its employees close all gates opened by them in making collections, unless otherwise directed by the customer, and avoid crossing landscaped areas and climbing or jumping over hedges and fences. City shall refer complaints about damage to private property to Contractor. Contractor shall repair all damage to private property caused by its employees. B. Noise. All Solid Waste, Recyclables, and Organic Waste, collection operations shall be conducted as quietly as possible and shall conform to applicable Federal, State, County and City noise level regulations, including the requirement that the noise level during the stationary compaction process not exceed seventy-five (75) decibels at a distance of twenty-five (25) feet from the collection vehicle. The City may conduct random checks of noise emission levels to ensure such compliance. Contractor will promptly resolve any complaints of noise to the satisfaction of the City Manager or a designee. C. Record of Non -Collection. When any Solid Waste, Recyclables, and Organic Waste deposited for collection is not collected by the Contractor because it fails to meet the requirements of the Municipal Code or this Agreement, Contractor shall leave a bilingual 13 Spanish/English red tag provided at Contractor's cost at least 3" x 6" in size, on which Contractor has indicated the reasons for the refusal to collect the Solid Waste, Recyclables, and Organic Waste, giving reference to the section of the Municipal Code or to the section of this Agreement which has been violated, and which gives grounds for the refusal as well as the Contractor's address, phone number and business hours. This information shall either be in writing or by means of a check system. In addition thereto, Contractor shall maintain, at its place of business, a log book listing all complaints and taggings. Said log book shall contain the names and addresses of parties involved, date of such complaint or tagging, nature of same and date and manner of disposition of each case. Such log shall be kept so that it may conveniently be inspected by the City Manager upon request. Such log shall be retained for at least two (2) years after the last entry. The City Manager may request this log at any time. 5.10 Litter Abatement A. Minimization of Spills. Contractor shall use due care to prevent Solid Waste, Reec�c 'clables, and Organic Waste, from being spilled or scattered during the collection or tranhportation process JVy Solid Waste, Recyclables, and Organic Waste are spilled during collection, the Conk actor shall promptly clean up all spilled materials. B. Clean Up. During the collection transportation process, the Contractor shall clean up litter in the immediate vicinity of any Solid Waste, Recyclables, and Organic Waste storage area (including the areas where collection bins and debris boxes are delivered for collection). The Contractor shall discuss instances of repeated spillage not caused by it directly with the customer responsible and will report such instances to the City. City will attempt to rectify such situations with the customer if Contractor has already attempted to do so without success. Covering of Loads. Contractor shall cover all open debris boxes and compactor openings during transport to the disposal site or any processing facility. No material shall be transported to the disposal site or any processing facility in vehicle hoppers. 5.11 Transportation, Processing and Disposal of Solid Waste A. Solid Waste Facilities. No later than [insert date], Contractor shall submit a list of all facilities it intends to utilize in connection with the transportation, disposal and processing of Solid Waste. B. Recyclables Facilities. No later than [insert date], Contractor shall submit a list of all facilities it intends to utilize in connection with the transportation, disposal and processing of Recyclables. C. Organic Waste Facilities. No later than [insert date], Contractor shall submit a list of all facilities it intends to utilize in connection with the transportation, disposal and processing of source -separated Organic Waste. Source -separated Organic Waste shall be diverted to an Organic Waste Processing Facility. 14 D. Change in Facilities. Contractor shall transport all those materials remaining as residue to the disposal site it selects. That site may be disapproved by the City Manager in which case a new site shall be selected by City Manager and Contractor. Contractor shall consider the most cost effective facility, including tipping fees, operating and hauling costs. E. Recordkeeping. Contractor shall maintain accurate records of the quantities of Solid Waste, Recyclables, and Organic Waste transported to the appropriate processing facility, if transported to a processing facility, and as applicable to the disposal site. Contractor will cooperate with City in any audits or investigations of such recorded quantities. Contractor shall devise a method approved by City to identify the diversion rate for City for its waste stream processed at the MRF which is responsive to any and all documents required by CalRecycle. Contractor has the right to retain any materials collected under the franchise and retain any payments therefor. 5.12 Vehicles A. General. Contractor shall provide a fleet of collection vehicles sufficient in number and capacity to efficiently perform the work required by the Agreement in strict accordance with its terms. The Contractor agrees to maintain each piece of equipment used by it iq.& re performance of t�is Agreement in good order and repair. Contractor shall have available on collection days sufficient back-up vehicles for each type of collection vehicle used (i.e., residential, commercial and roll -off) to respond to complaints and emergencies. The City Manager reserves the right to inspect any and all of Contractor's equipment upon reasonable notice to Contractor. All such vehicles shall have water -tight bodies designed to prevent leakage, spillage or overflow. All such vehicles shall comply with the noise abatement requirements of this Agreement. Notwithstanding anything herein to the contrary, while in use collecting waste in West Covina, the fleet of collection vehicles provided hereunder shall be sed only for Solid Waste, Recyclables and/or Organic Waste collected within West Covina. R B. s ecifications. All vehicles used by Atrain providing S"Wfaste, y and Organic Waste collection serviceered with t ornia Department of Motor Vehicles and shall meet or exceed all legal standards. Contractor agrees to maintain all of its collection vehicles in compliance with the provisions of the California Vehicle Code, including but not limited to, Sections 27000(b), 23114, 23115, 42030, 42032, and all Vehicle Code sections regarding smog equipment requirements. All vehicles shall be inspected by the California Highway Patrol in accordance with applicable law. Contractor shall provide to City (i) a copy of its biennial Basic Inspection of Terminals (`BIT") inspection conducted by the California Highway Patrol and (ii) a copy of its vehicle maintenance log and any safety compliance report, including, but not limited to, any report issued under Vehicle Code Sections 34500 et seq., in its annual report made pursuant to Section 6.2. C. Vehicle Identification. Contractor's name, local telephone number, and a unique vehicle identification number designed by Contractor for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than two and one-half (2 1/2) inches high. Contractor shall not place the City's logo on its vehicles. D. Cleaning and Maintenance. 15 1. General. Contractor shall maintain all of its properties, facilities, and equipment used in providing service under this Agreement in a safe, neat, clean and operable condition at all times, and well and uniformly painted, to the reasonable satisfaction of the City Manager. 2. Cleaning. Vehicles used in the collection of Solid Waste, Recyclables, and Organic Waste shall be thoroughly washed at a minimum of one (1) time per week, and thoroughly steam cleaned on a regular basis so as to present a clean appearance and minimize odors. All vehicles shall be painted to the satisfaction of the City as deemed by the City Manager in his or her sole discretion. All graffiti shall be removed immediately. The City Manager may inspect vehicles at any time to determine compliance with sanitation requirements. Contractor shall make vehicles available to the Health Department for inspection. 3. Maintenance. Contractor shall (i) inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles which are not operating properly shall be taken out of service until they are repaired and operate properly; and (ii) perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. Contractor shall keep accurate records of all vehicle maintenance, recorded according to date and mileage and shall make sty records available to the City Manager upon rest to tlw s a,""e inspections described in Sections 6.5 and 6.6. 4. Repairs. Contractor shall repair, or arrange for the repair of,'All of its vehicles and equipment, including dents or other body damage, for which repairs are needed because of accident, breakdown or any other caak�se so as to maintain all equipment in a neat, safe and operable condition. If an item of repair iff covered by a warranty, Contractor shall obtain warranty performance. Contractor shall maintain accurate records of repair, which shall include date/milage, nature of repair and the signature of a maintenance supervisor or mechanic that the repair has been properly performed. go-5. MMM"Y. M*Mnhall fuThish sufficienfequipment fS#*de all service required under this Agreement, including backup collection vehicles. Upon written request, Contractor shall furnish the City a current vehicle inventory. 6. Storage. Contractor shall arrange to store all vehicles and other equipment in safe and secure locations(s) in accordance with City's applicable zoning regulations if stored within the City. E. Operation. Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. Contractor shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by state or local weight restrictions on vehicles. 5.13 Solid Waste Containers A. Residential. Contractor shall provide an automated waste collection system for Solid Waste, Recyclables, and Organic Waste subject to the following terms: 16 1. Contractor shall provide (i) one (1) ninety (90)-gallon for commingled Solid Waste and Recyclables; and (ii) one (1) ninety (90)-gallon container for source -separated Organic Waste. Condominiums or similar multi -family premises that use individual containers for each unit will be provided one (1) sixty-four (64)-gallon container for commingled Solid Waste and Recyclables. Contractor may also make sixty-four (64)-gallon containers available to customers at Residential Premises that do not reside in condominiums or similar multi -family premises. 2. Contractor shall determine what containers shall be provided, subject to disapproval of City. Customers may request adjustments to container sizes, which must be approved by City. 3. In the absence of any determination, two (2) ninety (90)-gallon containers, one (1) for commingled Solid Waste and Recyclables, and one (1) for source -separated Organic Waste, shall be provided by the Contractor to customers at Residential Premises. 4. Any change in container size may be subject to a service charge as specified in Exhibit "E" as amended. 5. Contractor shall fulfill the request to chIT containers within one (1) week on ceipt'We written request unless circumstances beyond Contractor's control prevent such a response or the City rejects a request to change containers. 6. Additional containers of either sixty-four (64)-gallon or ninety (90)-gallon size shall be provided by the Contractor at th written request of the customer subject to the additional monthly rates specified in the Exhibf"E" as amended. ro 7. Contractor shall make the appropriate adjustments to the tomer's acc t to refle a change in container siz rorating a billing to the first of the ne t month fro e dat equest�ece1ved. wAhhh' 8. Contractor shall provide container roll -out service for disabled customers at no charge, as outlined in Section 5.3 of the Agreement. 9. Separate from the roll -out service provided in Section 5.3, Contractor shall provide a roll -out service to any residential customer who requests such a service. Said service shall be subject to additional charge as specified in Exhibit "E" as amended. 10. If any container is not used by the customer in the manner specified by the automated waste collection program, the Contractor shall use a Multilingual red tag to so advise the customer. 11. Notwithstanding the foregoing, the number of containers provided to customers receiving services hereunder may be adjusted in accordance with Section 5.17. B. Non -Residential. Contractor shall provide bins and debris boxes for storage of Solid Waste which shall be designed and constructed to be water tight and prevent the leakage of liquids. All containers with a capacity of one (1) cubic yard or more shall meet applicable federal 17 regulations on solid waste bin safety. All containers shall be painted the Contractor's standard color and shall prominently display the name and telephone number of the Contractor. C. Cleaning, Painting, Maintenance. Contractor shall replace, clean or repaint all commercial containers as deemed necessary by the City Manager but no more than once every twelve (12) months so as to present a clean appearance. In addition, Contractor shall do the same upon forty-eight (48) hours of notice by the City. Contractor shall maintain all containers in a functional condition and shall remove graffiti immediately. D. Repair and Replacement. Contractor shall repair or replace all residential and non-residential containers damaged by collection operations. 5.14 Personnel A. General. Contractor shall furnish such qualified drivers, mechanical, supervisory, clerical and other personnel as may be necessary to provide the services required by this Agreement in a safe and efficient manner. B. Driver Qualifications. All drivers shall be trained and qualified in the operation oiltollection vehicles and must have in effect a valid license, of the appropriate class, issued by the California Departme f Motor Vehicles. kisI 1 C. Identification Badge. Contractor shall require its drivers, and all other ployees who come into contact with the public, to wear a uniform as a means of identifying th ployee. D. Safety Training. Contractor shall provide suitable operatiqnal and safe training for all of its employees who utilize or operate vehicles or equipment for collection of Solid Waste, Recyclables, and Organic Waste, or who are otherwise directly involved in such collection. Contractor shall train its employees involved in Solid Waste, Recyclables, and Organic Waste, collection to identify, and not to collect, hazardous or infectious waste. E. No Gratuities. Contractor shall not permit its employees to demand or solicit, directly or indirectly, any additional compensation or gratuity from members of the public for the collection of Solid Waste, Recyclables, and Organic Waste under this Agreement. F. Employee Appearance and Conduct. All employees, while engaged in the collection or gathering Solid Waste, Recyclables, and Organic Waste within the City, shall be attired in suitable and acceptable uniforms which are subject to approval by the City Manager. Contractor shall use its best efforts to ensure that all employees present a neat appearance and conduct themselves in a courteous manner. Contractor shall regularly train its employees in customer courtesy, shall prohibit the use of loud or profane language, and shall instruct collection crews to perform the work as quietly as possible. If any employee is found not to be courteous or not to be performing services in the manner required by this Agreement, Contractor shall take all appropriate corrective measures. G. Provision of Field Supervision. Contractor shall designate one qualified employee as supervisor of field operations. The field supervisor will devote at least fifty percent Ra (50%) of his or her time in the field checking on collection operations, including responding to complaints. 5.15 Hazardous Waste A. General. If the Contractor determines that waste placed in any container for collection or delivered to any facility is Hazardous Waste or infectious waste or other waste that may not legally be disposed of at the disposal site or presents a hazard to Contractor's employees, the Contractor shall have the right to refuse to accept such waste. The customer will be contacted by the Contractor and requested to arrange proper disposal. If the customer cannot be reached immediately, the Contractor shall, prior to leaving the premises, leave a red bilingual, Spanish/English tag at least 3" x 6" indicating the reason for refusing to collect the waste, in which case a copy of the tag, along with the address of premises (and the name of the customer, if known) shall be delivered to the City Manager on the following business day. If the waste is delivered to the disposal site before its presence is detected and the customer cannot be identified or fails to remove the waste after being requested to do so, the Contractor shall arrange for its proper disposal. The Contractor shall make a good faith effort to recover the cost of disposal frQn the customer, an f this effort, as we�as the cosal o the customer. ` B. Residential Hazar s Waste Collection. Contractor shall coordinatg �4ith Cr and County to assist in any Household Hazardous Waste or similar residential hazardous waste collection by County. If the County fails to provide such service during the term of the Agreement, as requested by City Manager, Contractor shall arrange for an acceptable licensed hazardous waste roundup at a central location within the City. Fees for this service shall be negotiated between the City and Contractor. 5.16 Rev'Reviaw of Performance a"ofServicIndustr Chan es Ow i A. At the City Council's sole option, with sixty (60) days written notification to the Contractor, it may conduct a public hearing, at which the Contractor shall be present and shall participate, to review the Contractor's performance and quality of service and to provide for technological and regulatory changes. The reports required by this Agreement regarding customer complaints shall be utilized as one basis for review. In addition, any customer may submit comments or complaints during the review meetings, either orally or in writing, and these shall be considered. These hearings may be scheduled by City Council at its discretion throughout the term of this Agreement, but not more often than annually. B. Within thirty (30) days after the conclusion of the public hearing, the City Council shall issue a report with respect to the matters raised at the hearings. If any noncompliance with the Agreement is found, the City Manager may direct Contractor to correct the inadequacies in accordance with the terms of this Agreement. Any change in scope of services or equipment shall be reflected in an amendment to this Agreement. 19 5.17 Transition to Three -Container Collection Svstem At any time during the Term of this Agreement, City shall permit Contractor to implement a Citywide transition to a three (3)-container collection system, and specifically the introduction of containers for the collection of source -separated Recyclables, for residential, commercial, and industrial premises. City and Contractor agree to meet and confer at times and dates agreeable to the Parties to discuss the Citywide transition including but not limited to any transition plan, container disbursement, performance standards, and rate adjustments that may apply. 5.18 Organic Waste Program A. General. Contractor will provide staff, labor, and materials to assist City with its compliance with 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. B. Default Service. Residential. Contractor will permit customers at Residential Premises to commingle so separated Green Waste, Food Waste, food -soiled paper products, clean wool, and lumber onl containers designated for Organic Waste. 2. Commercial/Industrial. Forktomers at commercial and industrial premises, Contractor shall collect one (1) thirty-five (35)-gallon container for source -separated Organic Waste one (1) time per week. Based on a waste assessment performed by Contractor, Contractor may adjust the foregoing default level of service to any one of the following container types: (i) one (1) container of sixty-four (64) gallons in size; (ii) one (1) bin of one and a half (1.5) to two (2) cubiyards in size; and (iii) one (1) metal roll -off container with a capacity of ten (10) orfnore cubic yards. 3. Exemptions. The Organic Waste program specified herein shall not apply to customers who may be exempt from SB 1383, as determined by the City pursuant to applicable state law. 4. Collection Routes. Contractor may collect source -separated Organic Waste from multiple cities within one (1) Organic Waste route and, if so, will report source -separated Organic Waste tonnage among the cities by volume. 5. 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 disapprove. 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. Education and Outreach. On a quarterly basis, Contractor shall provide educational material by mail or electronically to customers providing information concerning proper recycling, the use of containers for Organic Waste, composting, preventing Contamination, 20 and proper cart placement. Further, Contractor shall provide in -person outreach to customers at Residences as necessary under the "Contamination Protocols" specified in Section 5.19. D. Waste Characterization Studies. Contractor acknowledges that City must perform Organic Waste generation and disposal characterization studies periodically to comply with the requirements of SB 1383. Contractor agrees to participate and cooperate with City and its agents and to accomplish studies and data collection and prepare reports, as needed but no more than quarterly, to satisfy the requirements of SB 1383, provided such Organic Waste is delivered to a Contractor -owned or controlled facility or Contractor otherwise has access to information permitting it to perform characterization studies. E. Reporting. To the extent not addressed in Section 6.2, Contractor will provide an annual report of the following (i) the average daily gross tons of Organic Waste collected by route, with map of routes; (ii) the total number of generators that receive each type of Organic Waste collection service provided by the Contractor; (iii) number of Organic Waste collection containers distributed by size and customer type; (iv) annual totals of Organic Waste processed including facility name and location; and (v) the number of route reviews conducted for prohibited contaminants and the number of non -Collection notices provided to customers due to Contamination. F. Route Audr s. On a quarterly basis, Contractor shall conduct u a audi�esign d to monitor, observe, and, if necessary, recommend route changes or service adjustmentllLb reduce Contamination in containers provided to custom rs. G. SB 1383 Procurement. As plof City's effort b satis annual procurement requirements specified in SB 1383, Contractor shall have the option to, (i) levels commensurate with those required in the City under SB 1383, assist the City in the procurement of Renewable Natural Gas (RNG) for collection vehicles used by Contractor in the City, and/or (ii) provide twenty (20) tons of compost or mulch, delivered to a location selected by the City. Should products such as greater quantitles of Mmpost, other or additional biofuets, or different forms"of electricity be needed for City to satisfy its procurement requirements, and City requests that Contractor provide the same, City and Contractor shall meet and confer to discuss an amendment to the Agreement prior to such procurement. H. Container Color and Labelling. Notwithstanding any provision in this Agreement to the contrary, no later than January 1, 2036, all containers provided to customers must comply with the color and labeling requirements included below or as otherwise specified in 14 CCR Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other applicable law. Colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation, and the lids and bodies shall be uniform for each container type, as follows: (i) Solid Waste container bodies and/or lids shall be black or grey; (ii) if used, Recyclables container bodies and/or lids shall be blue; and, (iii) Organic Waste container bodies and/or lids shall be green. Hardware such as hinges and wheels on the containers may be a different color than specified herein. I. 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 21 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, 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. J. 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 Agreement, Contractor shall be entitled to a special rate adjustment as specified in Article 8. 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. 5.19 Contamination Protocols In order to prevent Contamination, Contractor shall implement the protocols as specified herein. A. r First Contamination Event. Upon the first dis"Mery of Contamination within a given calendar year starting January 1, Contractor will collect the contaminatep 'taste if safe to to 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 ovent 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 container or require an additional contaAT(s). Contractor must als9-contact the Customer by prone, 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 5.19(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 Solid Waste 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. 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 5.19(C) shall apply. 22 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 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 fee, 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 thirty (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 crwtomer'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 decisiop on resolving the dispute between Customer and Contractor will be final. 5.2 Food Recovery Assistance / I I A. Identification of Edible Food Generators. No later than insert date], 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 i nation; Tier One_g Tier T classification; and type ofbusiness. B. Assessment. Commencing [insert date], and annually thereafter, Contractor shall support City in its efforts to 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. C. Education and Outreach. Commencing [insert date], and annually thereafter, Contractor shall provide Commercial Edible Food Generators with the following information: (i) information about the 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 by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to customers. 23 ARTICLE 6. OTHER COLLECTION -RELATED SERVICES, STANDARDS AND AGREEMENTS 6.1 Billin In consideration of the services and promises of the Contractor, the City hereby delegates to the Contractor the right and authority to collect from the persons served by the Contractor the prices for such service as is provided by this Agreement. The Contractor agrees that it shall neither charge nor collect any sum or sums in excess of, or in addition to, the amounts specified in this Agreement for any Solid Waste, Recyclables, and Organic Waste collection services made pursuant to this Agreement. The Contractor agrees that the City shall be under no obligation to collect or to enforce collection of any sums due to the Contractor for services rendered under this Agreement except as specifically provided in this Agreement or in the Municipal Code, and Contractor does hereby release the City from any and all liability for the payment of any sum or sums which may become due to the Contractor for the collection or removal of Solid Waste, Recyclables, and Organic Waste, under the terms of this Agreement, provided that if an account is delinquent for more than ninety (90) days, the City will eWe that such account is billed on the City's pro�rty tax ro�th�e if requested by the Contractor. The Contractor will bill customers on a quarterly basis. The Contractor shall have the right to bill and collect for its services in advance of the rendition of services hereunder, but shall refund any unused portion equal to one (1) month or more of the amount collected in the event of disruption, revision, or termination of the services or wheikesidential Premises are vacant for at least a one (I) -month period and prior notice of such vacancy has been given to the Contractor. Termination of services as referred to in this Section shall not include termination due to nonpayment. Services terminated due to nonpayment of collection fees may be reinstated with the payment of a reinstatement charge as specified in Exhibit "E" attached hereto. Customers may, on an individual basis, request annual or monthly payment schedules, Mid the Contractor will work'in good faith with individual customers to reasonably satisfy such requests. As part of the billing procedure and along with normal billings, the Contractor shall provide envelopes, return envelopes, and messages with Multilingual text related to solid waste management and recycling issues. These messages shall include but are not limited to route maps, pick-up times, collection rules, holidays, and similar information. Such messages include, but are not limited to, clean up Saturdays and Christmas tree recycling. The language of any such messages shall be reviewed and approved by the City Manager prior to their distribution. The costs for the printing and distribution of such notices shall be the sole responsibility of the Contractor. Contractor also agrees to insert with the billings, mailers describing activities of the City government unrelated to solid waste management or recycling issues. City Manager will provide not less than fifteen (15) days' notice to Contractor prior to the mailing date of any proposed mailing to permit Contractor to make appropriate arrangement for inclusion of the City's materials. City Manager will provide Contractor the mailers at least (7) days prior to the mailing date. Contractor shall notify City of its mailing schedule to enable City to provide notices and mailers in compliance with this Section. 24 The Contractor shall maintain copies of said billings and receipts, each in chronological order, for a period of three (3) years after the date of service for inspection by City. The Contractor may, at its option, maintain those records in computer form, on microfiche, or in any other manner, provided that the records can be preserved and retrieved for inspection and verification in a timely manner. The City Manager shall have the right to request changes to the billing format to itemize certain appropriate charges or to otherwise reasonably clarify the billing. The Contractor will cooperate with the City to revise its billing format as necessary to itemize appropriate charges from time to time, however, once any billing format is approved by the City Manager, if any future changes to the billing format result in substantial costs, those costs may be recovered by Contractor pursuant to this Agreement. Contractor shall not itemize the franchise fee except with the written consent of City Council. The Contractor may assess penalties for late payments and collection of delinquent accounts. The Contractor may discontinue service to any customer where payment for services rendered is delinquent for sixty (60) days or more. The Contractor shall notify the customer and the City in writing of its intent to discontinue service not less than ten (10) business days before such dic�ontiny�jQ�shall orcur.�W. 6.2 Annual Reports The Contractor shall submit annurfports with respect to its operations (including but not limited to NW operations) pursuant to,V Agreement. The annual reports shall be submitted not later than four (4) months following the end of the %ntractor's annual accou mg period. The report shall be in a format which will allow the City Manager and City Council to ompare the operations of the Contractor with the franchise fee paid. As part of the report, the Contractor shall calculate the actual franchise fee owed, set forth the quarterly franchise fee payments actually made, and show the appropriate additional franchise fees owed to the City or the overpayments of the fifflLhise fees actually owed for the annual period. Thitreport shall also include cufiomer billing information by class of service and number of services, and if applicable, BIT inspection results. 6.3 Annual Audit At the request of the City Manager, the reports submitted by the Contractor pursuant to Section 6.2 may be audited and certified to by an independent certified public accounting firm mutually approved by the City Manager and the Contractor. The Contractor will bear the expense of said audit where a $10,000 discrepancy (adjusted annually by CPI) is discovered, but audit fees are allowed as an operating expense for rate -setting purposes. If the Contractor and City Manager fail to mutually agree on the selection of a certified public accounting firm within five (5) months prior to the end of the Contractor's annual accounting period (for that accounting period), the City Manager shall submit the names of five (5) certified public accounting firms from which the Contractor shall select one (1). The Contractor shall notify the City Manager of its choice not later than fifteen (15) days from the date of receipt of said list. The third parry auditor or consultant selected shall be allowed access to Contractor's records as necessary to carry out the audit and shall be required to sign a confidentiality agreement. 25 6.4 Recordkeepinu The Contractor shall maintain such accounting and statistical records as shall be necessary to develop the financial statements and reports prescribed by City. 6.5 Right to Inspect Records Notwithstanding Article 6, City officials retains all of their rights to audit or inspect under the business license ordinance. 6.6 Inspection by City The City Manager shall have the right to observe and review Contractor's business operations and enter premises for the purposes of such observations and review at all reasonable hours with reasonable notice. 6.7 Public/Customer Service and Accessibility A. Office Location. Contractor shall provide a business office for purposes of carrying out its obligations under this Agreement. Tismain off3Mshall be to fd at 14048 Valley Boulevard, City of Industry, California 91715. TT B. Office Hours. Contractor's officeAthiabe open to public from 7 a. o 5 p.m. Monday through Friday. The office may be closed on Saturdays and Sundays and tho olidays recognized by the 0Contractor. C. Availability of Representatives. A representative of the Contract shall be available at the Contractor's maiUsa g office hours to communicate with t ublic in person and by telephoEW go- ne. D. Telephone. Contin Xoree *teep one system in operation at its main office at all times. Contractor shall install telephone equipment, and have available service representatives sufficient to handle the volume of calls typically experienced on the busiest days. Telephone service shall be provided from 7 a.m. to 5 p.m. Contractor shall also maintain an after-hours telephone number for use during other than normal business hours. Contractor shall have a representative or voice mail available at said after-hours toll -free telephone number during all hours other than normal office hours. If customers are unable with reasonable effort to reach Contractor's office by phone, or are subject to waiting time "on hold" of more than two (2) minutes prior to reaching a customer service representative, City Manager may require that Contractor install additional telephone lines or hire additional customer service representatives. The City Manager and Police and Fire Departments shall be provided with an emergency phone number. E. Consumer Information. 1. Contractor shall provide brochures containing information about the amounts of Solid Waste or Recyclables which will be collected, times for special collection events, 26 recycling and household hazardous waste drop-off programs and other special services. Contractor shall distribute such brochures to all new subscribers annually and shall include such updated information in the billing envelope. Brochures shall also be mailed to City residents upon request and shall be provided to a bona fide community group upon request of the City Manager. 2. Contractor will submit proofs of the brochures to City Manager prior to distribution and will incorporate City's comments in the final version distributed to the public. F. Payment Center. City may require Contractor to provide at least one (1) payment center in the City of West Covina for the purposes of accepting payments from customers. 6.8 Service Complaints The Contractor agrees to maintain a written log of all oral and written service complaints registered with the Contractor from customers within the City. Contractor shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all customer complaints. Contractor shall record in a separate log all written and oral complaints, noting the name and address of complainant, date and time of complaint, nature of complaint, and nature and date of resolution. This complaint log shall be retained by the Contractor or at least ontlear after the last entry the City Manager review the log at any reasonable time. Contractor shall respond to all plaints from customers within twenty(24) hou , weekends and holidays excluded. particular, a complaint involves a failure to collect Solid Waste, Recyclables, and Organi Ste from a emises, required by this Agreement, Contractor shall collect the Solid Waste, Recyclables, and Organic Waste, in question within such twenty-four (24) hour period, p *ded it has delivered for collection in accordance with the Municipal Code or this Agreem 6.9 Ci ht to Ch n e S of rk I I JL The City Manager or City Council may require changes in collection or disposal methods and upon mutual agreement of the Parties, the Contractor shall comply, provided that if such changes result in increased costs to the Contractor, the Contractor shall have a right to apply for a rate review and adjustment pursuant to Article 8 of this Agreement. 6.10 Title to Solid Waste It is expressly understood that all Solid Waste becomes the property of the Contractor when placed for collection. 6.11 Nondiscrimination Contractor shall not discriminate in the provision of service or the employment of persons engaged in performance of this Agreement on account of race, religious creed, color, national origin, ancestry, physical or mental disability, medical condition, marital status, or sex of such persons or as otherwise prohibited by law. 27 6.12 Change in Collection Schedule Contractor shall notify City Manager seven (7) days prior to, and residential customers not later than the day prior to, any change in residential collection operations which results in a change in the day on which Solid Waste, Recyclables, and Organic Waste collection occurs. Contractor will not permit any customer to go more than seven (7) days without service in connection with a collection schedule change. 6.13 Report Accumulation of Solid Waste, Unauthorized Dumpin¢ Contractor shall direct its drivers to note (1) the addresses of any premises at which they observe that Solid Waste is accumulating and is not being delivered for collection; and (2) the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. Contractor shall deliver the address or description to City Manager within three (3) working days of such observation in order to protect health, safety and welfare. ARTICLE 7. CALIFORNIA INTEGRATED WASTE MANAGEMENT ACT OF 1989 ("AB 939"): REQUIREMENTS 7.1 Implementation of SR T Contractor shall implement andImtain the at set out on Exhibits A and C, as amended. 7.2 Other Recycling Programs At the request of City, Contractor shall Cily parker y TIONAL AND the current bins used for recyc REPORTING In addition, the Contractor and City Manager or his or her designee shall agree on the schedule, format, and content of additional programs to be implemented. 7.3 MRF/Transfer Station Proposal Contractor shall operate and maintain its MRF/Transfer Station located at 14048 Valley Boulevard as set out on Exhibit C, as amended. 7.4 Diversion Guarantee Contractor shall indemnify, defend and hold harmless City from and against any and all fines imposed by CalRecycle or other responsible agency(ies) arising from City's failure to meet landfill diversion requirements of AB 939, or substantially similar legislative enactments by the State of California. Contractor agrees this subsection applies to the entire waste stream for which City is accountable by CalRecycle and not just that portion of that waste stream processed by Contractor, pursuant to this Agreement. In the event CalRecycle (or any other subdivision or body of the State) provides an administrative process to challenge the imposition of a compliance order or fine or m fines, Contractor shall be responsible for engaging (at no cost to the City) consultants and/or attorneys (subject to City's reasonable consensus) to represent the City. The indemnification set out in Section 9.1 hereof shall not apply to the matters described as set forth in the preceding paragraph of this Section 7.4. 7.5 Annual AB 939 Reporting Reauirements Contractor shall record and transmit to City on a quarterly basis the quantities of City Solid Waste collected and processed and the MRF and the residue of or unprocessable materials therefrom. Contractor also shall report waste composition, tonnage by material type, percent diverted, and market value on a quarterly basis, as determined by City, for City's waste stream taken to the MRFPTransfer Station. Residential Solid Waste — Solid Waste originating from single -and multiple -unit dwellings. Single -unit tonnages are to be accounted for separately from multi -unit tonnages. In those cases where multi -unit accounts are commingled with material from other waste sources Contractor will beTesponsible for developing a reasonable methodology for estimating such multi -unit tonnages which is acceptable to the�ty Manager (e.g., [container yardage] X [frequency] 1 [% of capacity] X [assumed density]). 11 Commercial Solid Was Solid Waste originating from shies, business offices, co rcial warehouses, hospitals, educational, health care, military, and correctional institutions, non fit research organizations, goveI t offices , Industria lid Waste — A olid placed in debris boxes. Other Sources : Solid Waste originating from such sources as state and national parks and recreational areas (Note: estimation of self -haul waste which is classified as an `Other' source will be the responsibility of City). Contractor shall provide to the City Manager an annual "Waste Disposal and Diversion Report" based upon these daily records by the 31st of January. This report shall include total tonnages disposed by waste source and disposal facility, and total tonnages diverted by waste source, material type, and program and the specific processing facility or market to which the materials were delivered. Contractor shall try to include reports on private recycling efforts so that these will be counted toward City's diversion goals. Contractor shall submit all reports needed to meet City's reporting requirements to CalRecycle, and to the County of Los Angeles throughout the term of this Agreement. Contractor shall also provide any other reports required by AB 939. 29 7.6 AB 939 Staffing Position The Contractor shall dedicate adequate staff to implement and monitor AB 939 requirements on behalf of City, throughout the term of this Agreement, in accordance with the City's integrated waste management programs identified in the Source Reduction and Recycling Element (SRRE). 7.7 Public Outreach Program The Contractor will develop and implement a public education program on source reduction, reuse, recycling, composting and secondary materials usage and availability as required by the Public Education Component of the City's SRRE and AB 939. This requirement may include, but is not limited to public and school presentations, mailers, brochures, as set out on Exhibit D, attached and incorporated herein. 7.8 Use of Recycled Materials Whenever possible Contractor shall use recycled paper as part of all publicity, billing, and other management and operational activities associated with the performance of this Agreement. Opportunities for use of other recycled materials, including but not limited to the purchase of cmmmm oirectioMhers with recycled material content shall also ee p i ed, with a cost/benefit analysis provided to the City Manager. The Contractor shall pay $55,000 per year to the City of West Waste Management Program subject to the fol�ving conditions B. The finding amount shall be adjusted each year according to CPI. If the City Council approves an increase in the Base Rate for the Monthly Collection rate, the Integrated Waste Management fund contribution from the Contractor shall increase by the same percentage. C. The Contractor's contribution to the Integrated Waste Management Fund shall not be included in or funded by the rates approved by the City Council pursuant to Article 8 of this Agreement. D. This funding requirement shall continue until the Agreement is terminated or until modified with the agreement of the City and the Contractor. 7.10 Change in Laws Contractor shall develop and, upon the City Council's approval, implement within a timely manner, programs to meet new requirements of AB 939 or similar state and federal laws. Contractor may request a rate increase under Article 8 for additional duties required hereunder. 30 ARTICLE 8. SERVICE RATES AND REVIEW 8.1 Rates A. Maximum Service Rates. Rates for all services provided to customers covered by this Agreement shall be as specified in Exhibit E of this Agreement, subject to adjustment as permitted pursuant to this Agreement. B. Annual Rate Adjustment. Beginning July 1, 2023, and annually thereafter on July 1, the rates provided in Exhibit E shall be automatically adjusted annually by the Annual Rate Adjustment. If determined by City as required by applicable law, after July 1, 2027, and each five years thereafter, the City Council shall 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. C. Phase -in. Notwithstanding any provision in this Agreement to the contrary, for the period beginning July 1, 2023 and ending June 30, 2025, in addition to any other rate adjustment permitted under this Agreemenrates provided Exhibit E shall - \ect too sI \al adjustments specified belo Period I Residential Premises � Commercial/Industrial JJ 1, 2023 N/A Annual Rate Adjustment + 2.11 rate increase J y 1, 2024 VA in I Annual RE Adju tment + 2.0 rate Notwithsta he foregoing, noting herein shall constitute theMaiver of Contract right to seek sped rate adjustments,%s permitted in accordance in Section 8.1(D). 8.2 Special Rate Adiustments 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. 31 8.3 Procedures Upon Invalidation of Rate Adiustment. In the event that City is prohibited by applicable law (excluding the Municipal Code) to (i) approve or implement an Annual Rate Adjustment, supplemental adjustment, or special 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, 2027, no later than July I 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 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 and other City 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. T 8.44 ublication of RateJprnior . 1 The Contractor shall providtten notice to subscribers of rate changes, which ice may be provided with, or as partr billing. Contractor may provide a hedule of ing fees along with customer billings. 8.5. Proposition 218. City intends to comply with all applicable laws concerning the maximum service rates provided under this Agreement. Upon thorough analysis, the Parties have made a good faith determination tM the maximum serdice rates for solid waste collection services provided under this Agreement are not subject to California Constitution Articles XIIIC and XIIID because, among other reasons, such services are provided by a private corporation and not by the City. Contractor independently establishes the rates for services within the limits established in this Agreement. In the interest of consumer protection, the City sets a cap on what the Contractor may charge its customers for the services it provides to them. ARTICLE 9. INDEMNITY, INSURANCE, BOND 9.1 Indemnification of City Separate and distinct from the insurance and liquidated damages provisions found in this Agreement, Contractor agrees to defend, indemnify, and hold harmless, City and its elected officials, officers, agents, and employees from and against any and all claims, demands, damages, liabilities, costs or expenses for any damages or injuries to any person or property, including but not limited to, injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all costs and expenses 32 of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established active negligence or willful misconduct of the City, its agents, officers or employees. Payment by City is not a condition precedent to enforcement of this indemnity. 9.2 Insurance A. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. Comprehensive General Liability: $10,000,000 combined single limit per occurrence for bodily injury and property damage. 2. Automobile Liability: $10,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. Transportation Pollution Liability: $5,000,000 comb e singlnimit r accident.Coverage shall include Pollution Liability (CA9948) and MCS-9 e dorsee policy shall provide coverage for transportation of pollutants/contaminan to and from job sites and the hauling of waste from project sites to the final disposal locatio including non -owned disposal sites. B. Deductibles and Self -Insured Retentions. Any significant deductibles or self - insured retentions must be declared to and approved by the City Risk Manager. At the option of the City Risk Manager, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officials, employees, agents or volunteers; or the Contractor shall procure an additional letter of credit or bond guarantying payment of losses and related investigations, claim administration and defense expenses. C. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverage. a. The City, its officials, employees, agents and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Contractor; services, products and operations of the Contractor; premises owned, leased or used by the Contractor; or vehicles owned, leased, hired, or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officials, employees or volunteers. b. The Contractor's insurance coverage shall be primary insurance as respect the City, its officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees or volunteers shall be excess of the Contractor's 33