HomeMy WebLinkAbout25A - REFUSE COLLECTION/RECYCLING SOLID WASTE
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
JANUARY 17, 2006
TITLE:
APPROVED
D As Recommended
D As Amended
D Ordinance on 1 st Reading
D Ordinance on 2nd Reading
D Implementing Resolution
D Set Public Hearing For
AMENDED AGREEMENT WITH WASTE
MANAGEMENT INC. FOR REFUSE
COLLECTION AND RECYCLING
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Approve and authorize the City Manager and the Clerk of the Council to
execute an amended agreement with Waste Management Inc. for collection
and recycling of the City's solid waste.
DISCUSSION
In 1996 the City entered into an exclusive agreement with Waste
Management Inc. to collect and recycle the City's residential, commercial
and industrial waste. With that agreement the City implemented the
three-cart curbside program, the wet/dry commercial program and the
sorted industrial waste programs that are currently in place. That
agreement has been amended to provide alley and parkway clean-up.
The proposed amended agreement will incorporate the additional services
to the City into one agreement and extend the term of
through the year 2018. In exchange, the City will receive
fiscal year 05-06 and $500,000 in each of the remaining
agreement. These payments will not affect customer rates.
the agreement
$1,000,000 in
years of the
Customer rates will continue to be competitive. In 2004 Santa Ana's
curbside rates were mid range and commercial rates were in the lower one-
third of the rates in the County. Currently, these rates may be
increased each year by 7.5%. With the proposed amended agreement the
rates can only be increased each year by 5 percent.
Under the proposed amended agreement Waste Management will continue to
utilize the trucks purchased by the City in 1996 and will begin replacing
them in 2006 with low emission vehicles. In addition, collection of
televisions, computers and monitors will be included with the City's
large item pickup service for curbside customers.
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Amended Agreement With
Waste Management Inc.
January 17, 2006
Page 2
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
The City will receive $1,000,000 in fiscal year 05-06 and $500,000 each
year thereafter through the term of the agreement. The funds will be
deposited into the refuse collection fund (account no. 69-01-5112).
APPROVED AS TO FUNDS AND ACCOUNTS:
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tJames G. Ross
Executive Director
Public Works Agency
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Francisco Gutierrez
Executive Director
Finance & Mgmt. Services
AgenC~
25A-2
THIRD AMENDED AND RESTATED
AGREEMENT FOR COLLECTION AND HANDLING
OF SOLID WASTES GENERATED, PRODUCED AND/OR
ACCUMULATED IN THE CITY OF SANTA ANA
by and between
THE CITY OF SANTA ANA
AND
USA WASTE OF CALIFORNIA INC.
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TABLE OF CONTENTS
RECITALS ............... ........................ ............ ....... .............. ...... ............... ...... ..... .............. .............. 1
AGREEMENT .............................................................................................................................. 2
1. GRANT OF CONTRACT ............... ............................. .......... .......... ..... ........ ......................... 2
2. TERM OF CONTRACT .................. .......... ............................ .......... ........ ............................... 2
3. DEFINITIONS ......... ................ ...... ............. ............................. ........ ............... .......... .............. 3
4. SCOPE OF SERVICE............................................................................................................ 6
5. COLLECTION HOURS ......................................................................................................... 7
6. HOLIDA YS............................................................................................................................. 7
7. FREQUENCY OF COLLECTIONS ...... .................... .................. ............. ......... .................... 7
8. MAIN'TENANCE OF SCHEDULES..................................................................................... 7
9. EXCLUSNENESS OF AGREEMENT ........................... ............ .............. ........................... 7
10. SOLID WASTE PROGRAM SURCHARGE ...................................................................... 9
11. AUTOMATED SYSTEM ............... ........................... .............. ............... ........ ......... ............. 9
( a) LICENSE.................................................................................................................... 9
(b) FINANCING............... ............ ........... ............... .............. ......... ............. ................... 10
(c) MAIN'TENANCE OF LICENSED EQUIPMENT ................................................. 10
(d) OPERATION OF LICENSED EQUIPMENT........................................................ 10
(e) FUEL FOR LICENSED EQUIPMENT ....................................................................10
(f) OPTION TO PURCHASE ......... ....... ................. ............. ....... ........ ........ ....... ........... 10
(g) REPLACEMENT OF RESIDENTIAL AND COMMERCIAL
COLLECTION VEHICLES ............ ............ ........... ............. ............... .......... ........... ......... 11
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12. COLLECTION POINTS AND REQUIREMENTS ........................................................... 11
13. SERVICES TO BE PROVIDED BY CONTRACTOR TO CITY FOR CITY
OPERA TIONS................................................................................................................ 12
(a) CITY GOVERNMENT OPERATIONS ................................................................. 12
(b) STREET SWEEPING.............. ......................... ............... ............. ........................... 12
(c) NEIGHBORHOOD CLEANUPS ........................................................... ................ 12
14. COLLECTION, RECYCLING, YARD WASTE DIVERSION AND DISPOSAL
REQUIREMENTS ......................................................................................................... 13
(a) CURBSIDE SERVICE ..... .................................... ............... ................... ................. 13
(1) Non-Recyclable Solid Waste Collection and Recycling Plastic Carts ....... 13
(2) Recyclable Solid Waste Collection and Recycling Plastic Carts ............... 13
(3) Yard Waste Collection and Recycling Plastic Carts................................... 13
(b) BIN SERVICE......................................................................................................... 13
(c) ROLL-OFF SERVICE............................................................................................. 14
(d) TEMPORARY BIN SERVICE ......................... ................ ...................... ................ 14
(e) P ARKW A Y CLEANUP FOLLOWING GARAGE SALES ...................................14
(f) ALLEY CLEANUP FOLLOWING THE FIRST OF EACH MONTH ...................14
(g) DISPOSAL.. ............ ............. ........................... ........ ......... ............ ................... ......... 14
15. SYSTEM SAVINGS.... ............ .............. .......................... ..... .......... ...... ....... ....................... 15
(a) SAVINGS PAYABLE TO CITY... ........................ ...... ................ ....... .................... 15
(b) POSSIBLE ADDITIONAL SAVINGS................................................................... 15
16. CIWMA REPORTING REQUIREMENTS ....................................................................... 15
17. SRRE CONSULTANT ........................................................................................................ 16
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18. PUBLIC EDUCATION SERVICES ................................................................................... 16
19. STANDARDS FOR COLLECTION, EQUIPMENT AND NOISE.................................. 17
20. MAINTENANCE OF BINS AND ROLL-OFF CONTAINERS....................................... 18
21. COLLECTION OF BULKY ITEMS .................................................................................. 18
22. CURBSIDE SERVICE PAYMENTS .................. ............................ ........................ ........... 19
23. RESIDENTIAL BIN SERVICE RATES ............................................................................ 19
24. COMMERCIALIINDUSTRIAL BIN SERVICE RATES ................................................. 20
25. ROLL-OFF SERVICE RATES .......................... ............. ...... .............................................. 20
26. COMPENSATION FOR GRANTS .............................. ............... ............... .................. ...... 21
27. ADmSTMENTS TO CHARGES........................................ ......... ........ .................... .......... 21
(a) HAULING AND PROCESSING CHARGES ........................................................ 21
(1) PRICE INDICES ................. ............. ................ .......... .............................. .... 21
(2) CURBSIDE SERVICE.. ...... .................... ......... ................. ................ ........... 21
(3) BIN SERVICE AND ROLL-OFF SERVICE.............................................. 21
(b) GATE FEES ..... ............ .......................................... ......... ......... ......................... ....... 21
(c) SOLID WASTE PROGRAM SURCHARGE ........................................................ 21
(d) ADMINISTRA TNE COST.... .......................... ......... .............. ........................... ......22
28. SPECIAL BIN SERVICES AND CUSTOMER SERVICE REQUIREMENTS .............. 22
29. MINIMUM SERVICE LEVELS - MULTI-FAMILY RESIDENTIAL BUILDINGS...... 22
30. MINIMUM SERVICE LEVELS - COMMERCIALIINDUSTRIAL BIN SERVICE
AND ROLL-OFF SERVICES........... ...................... ...... ......... ........ ..................... .......... 23
31. SERVICE STANDARDS. ........ ............................... ............... ......... .................. ........... ....... 23
32. SUPERVISION.... ........ ........... ............. ........................ ............... ......... ................................ 24
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33. TITLE TO SOLID WASTE................... ....... ...... ........ ............................ ............ ........ ......... 24
34. F All..URE TO COLLECT................. .................... .................................. .......... .......... ......... 24
35. DEFAULT, DAMAGES AND TERMINATION OF AGREEMENT .............................. 25
36. LIQUIDATED DAMAGES ................ ............. ........... ....... ................................. ................ 27
37. USE BY CITY OF CONTRACTOR'S EQUIPMENT ....................................................... 27
38. COMPLAINTS .................................................................................................................... 28
39. COMPENSATION REDUCTION DURING STRIKE PERIOD ...................................... 28
40. FEES AND GRATUITIES .................................................................................................. 29
41. LEGAL RELATIONS AND RESPONSIBILITIES ........................................................... 29
(a) Applicable Laws ........................................ ........... ........... ................ ..... .................... 30
(b) Personnel.................................................................................................................. 30
(c) Permits and Licenses................................................................................................ 30
(d) Workers' Compensation Policy................. ..................... ............ .............................. 30
(e) Public Liability Insurance......................................................................................... 30
(f) Insurance Responsibility for City Owned Solid Waste Collection
and Recycling Vehicles............................................................................................... 31
(g) Indemnification........................................................................................................ 31
(h) Enforcement of Scope of Services ......... .................. ................................ ...... .......... 31
(i) Waivers...................................................................................................................... 32
42. SUBCONTRACTORS AND MANAGEMENT ................................................................ 32
43. ACCOUNTING AND AUDITING ...................... ....... .......... ............. .............. ......... .......... 32
44. BOND........... ...... ................ ............................. ................... .......... ........................... ....... ...... 32
45. MEDIA RELATIONS .................... ......................... ................ ............ ....................... ......... 33
IV
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46. NOTICES .... ................ ........ ............. ........... ....... .......................... ................. ....... ..... ........... 33
47. GENDER AND NUMBER ................ .......... .............. ............... .................. ........ ........... ..... 33
48. VALIDITy..... ..................... ............................ ............................ .......... ............... ........... ..... 33
49. ASSIGNABILITy............. ........... .............. ......... ... ............. .................. ......... .......... ........ .... 34
50. GOVERNWG LAW... ........... ............... ....... ............ ..................... ............. ...... ......... ........... 34
WASTE MANAGEMENT HOLDINGS INC. GUARANTEE
EXHIBIT "A" --- THE LICENSED EQUIPMENT
EXHIBIT "B" ---NOT REQUIRED
EXHIBIT "C" --- RATES
EXHIBIT "D" --- PAYMENT SCHEDULE ON THE C.O.P.S
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THIRD AMENDED AND RESTATED
AGREEMENT FOR COLLECTION AND HANDLING
OF SOLID WASTE GENERATED AND/OR
ACCUMULATED IN THE CITY OF SANTA ANA
This THIRD AMENDED AND RESTATED AGREEMENT, made and entered into
this _ day of , 2005 by and between the City of Santa Ana, a charter city and
municipal corporation duly authorized under the Constitution and laws of the State of California
(referred to herein as "City")," and USA Waste of California Inc., a Delaware corporation dba Waste
Management of Orange County, formally Great Western Reclamation, a division of Waste
Management Collection and Recycling, Inc, a California corporation, hereinafter called,
"CONTRACTOR,"
REC!TAL~
1. The Legislature of the State of California, by enactment of the California Integrated Waste
Management Act of 1989, Division 30 of the California Public Resources Code, commencing with
Section 40000 ("CIWMA"), declares that it is within the public interest to authorize and require local
agencies to make adequate provisions for Solid Waste handling within their jurisdictions.
2. In the opinion of the City Council of the City of Santa Ana, the public health, safety and well
being require that the collection, transportation, and recycling, diversion by means of composting,
mulching and/or transforming, and disposal of Solid Waste, including, but not limited to, the frequency
and means of such collection, transportation and recycling, yard waste diversion or disposal, and the
charges and fees therefore, be provided by contract to a qualified contractor.
3. On June 30, 1993, CITY and CONTRACTOR entered into an agreement for such Solid
Waste collection and handling (the "Original Agreement").
4. Since the execution thereof, CITY and CONTRACTOR jointly concurred that it would be in
the best interest of the CITY and the residents therein that the Original Agreement be revised to provide
for Sold Waste collection, recycling and disposal of Curbside Service Units by means of automated
Solid Waste collection vehicles and Solid Waste collection and recycling plastic carts.
5. On June 1, 1996, CITY and CONTRACTOR entered into an agreement entitled "Amended
and Restated Agreement for Collection and Handling of Solid Waste Generated and/or Accumulated in
the City of Santa Ana" (hereinafter referred to as "Amended Agreement" to effectuate the new
curbside service collection program.
6. On June 19, 1997, CITY and Contractor entered into an Agreement entitled "Second
Amended and Restated Agreement for the Collection and Handling of Solid Waste Generated and/or
Accumulated in the City of Santa Ana" to clarify the responsibilities associated with the collection,
handling, and processing of solid waste collected by Contractor.
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7. Since the execution of the "Second Amended and Restated Agreement for the Collection
and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" ("Second
Amended Agreement"), City and Contractor have worked together to achieve many significant
advancements in environmental stewardship in the City of Santa Ana. In part, due to the joint efforts of
the City and Contractor, the City has been able to consistently comply with the 50% diversion
requirements as imposed by the State of California.
8. Since the execution of the Second Amended Agreement, City and Contractor have
developed new programs to increase recycling and reduce illegal disposal of used oil
9. Since the execution of the Second Amended Agreement, City and Contractor have
developed new programs to reduce illegal dumping and litter throughout the City.
10. Since the execution of the Second Amended Agreement City and Contractor have jointly
concurred to amend the Second Amended Agreement to include the above improved environmental
quality measures.
11. The parties again desire to amend the Second Amended Agreement in its entirety to
incorporate the provisions of previous amendments and to extend the term of the Agreement in
exchange for additional payments. Said additional payments will not affect the rates paid by Santa Ana
customers. City and USA Waste agree that USA Waste will bear the entire cost of these payments to
the City of Santa Ana as consideration for extending the term of the Second Amended Agreement.
The City Council of the City of Santa Ana, hereby desires that CONTRACTOR be engaged to
provide for both the collection of Solid Wastes within the corporate limits of the City of Santa Ana and
the transportation of such Solid Wastes to appropriate places of processing, recycling, yard waste
diversion, and disposal, and to perform such services on the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, for the reasons recited above, and in consideration of the respective and
mutual covenants and promises hereinafter contained and made, and subject to all the terms and
conditions hereof, the parties hereto do hereby agree as follows:
1. GRANT OF CONTRACT:
CITY hereby grants to CONTRACTOR, for the term hereinafter set forth, the contract, right
and privilege to collect, recycle, divert by means of composting, mulching, and/or transforming,
dispose and transport, to appropriate facilities as set forth in this Agreement, all Solid Wastes (as herein
defined and subject to the terms herein) generated, produced, kept and/or accumulated in the City of
Santa Ana, and CONTRACTOR, subject to all of the terms hereof, hereby accepts and agrees to
faithfully perform such contract and obligation.
2. TERM OF CONTRACT:
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The term of this Agreement shall begin upon execution of this Agreement and shall extend to
June 30, 2018.
3. DEFINITIONS:
As used in this Agreement, the following words and phrases shall have the meaning assigned in
this section, unless the context at the point of usage clearly requires a different meaning.
(1). Agreement shall mean this Amended and Restated Agreement, including the exhibits
thereto and the documents incorporated herein by reference.
(2). Auditor shall mean the certified public accountant firm retained by City for auditing
servIces.
(3). Bin Service shall mean all Solid Waste collection services provided by CONTRACTOR by
means of front-loaded collection bins of various sizes.
(4). California Integrated Waste Management Act ("CIWMA") shall mean that act codified by
California Public Resources Code Sections 40000 et seq., and any subsequent amendments thereto.
(5). California Integrated Waste Management Board shall mean the Board created by the
California Integrated Waste Management Act, and any subsequent modifications thereto, and shall
encompass any other agency which assumes the duties of this Board.
(6). CITY shall mean the City of Santa Ana.
(7). City Attorney shall mean the City Attorney of CITY.
(8). City Council shall mean the City Council of CITY.
(9). City Manager shall mean the City Manager of CITY.
(10). Clerk of the Council shall mean the Clerk of the Council of CITY.
(11). Code shall mean the Municipal Code of CITY, both codified and miscellaneous
ordinances.
(12). Commercia1lIndustrial Bin Service shall mean Bin Service which IS provided by
CONTRACTOR to commercial and/or industrial units.
(13). Commercial Solid Wastes shall mean Solid Waste originating from stores, business
offices, commercial warehouses, hospitals, educational, health care, military and correctional
institutions, non-profit research organizations and government offices.
(14). Compost means the product resulting from the controlled biological decomposition of
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organic wastes that are source separated from the Solid Waste stream.
(15). Composting means a method of waste treatment which produces a product meeting the
definition of "compost" herein.
(16). Compo sting Facility means a state permitted Solid Waste facility at which composting is
conducted and which produces a product meeting the definition of compost.
(17). Construction and Demolition Solid Waste includes Solid Wastes, such as building
materials, and packaging and rubble resulting from construction, remodeling, repair and demolition
operations on streets, pavements, houses, commercial buildings, and other structures.
(18). Contract shall mean this Agreement, entered into between CITY and CONTRACTOR.
(19). CONTRACTOR shall mean USA Waste of California Inc., a California corporation, and
shall also include the parent company Waste Management, Inc.
(20). Curbside Service Unit shall mean each single family residence and duplex unit which
receives curbside collection services provided by CONTRACTOR. This shall include commercial
curbside users and any multi-family, business or professional user which does not require Bin Service
as determined by the Executive Director.
(21). Customer shall mean a user of CONTRACTOR's bin or roll-off container service.
(22). Disposal Site shall mean any licensed landfill site permitted by the California Integrated
Waste Management Board for the receipt and ultimate disposition of Solid Waste.
(23). Executive Director shall mean the Executive Director of Public Works of CITY, or his or
her designate.
(24). Gate Fees shall mean those charges by a Disposal Site for Solid Wastes disposed of at said
site. Gate Fees are also known as "tipping" fees and "landfill" fees.
(25). Gross Receipts means and includes all revenues actually received by CONTRACTOR
arising from, or attributable to, the services provided by CONTRACTOR to its Customers in the CITY
pursuant to this Agreement. Gross Receipts include Gate Fees as defined herein. Gross Revenue does
not include any revenue received by CONTRACTOR from the sale of Recyclable Solid Waste.
(26). Hauling Charges shall mean those portions of the curbside, bin, roll-off and other rates
provided for in this Agreement which compensate CONTRACTOR for the Solid Waste collection and
transporting services required of CONTRACTOR under this Agreement. The parties have agreed upon
the initial Hauling Charges as set forth hereinafter, and such charges are subject to adjustments as
provided in this Agreement.
(27). Hazardous Wastes are those wastes which, because of their physical or chemical
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characteristics, and are defined as a "hazardous substance" or "hazardous waste" pursuant to the
Resource Conservation and Recovery Act" ("RCRA"), cannot be disposed of in a Class III landfill
under the applicable laws and regulations of the State of California.
(28). Industrial Solid Wastes means Solid Waste originating from mechanized manufacturing
facilities, factories, refineries, and publicly operated treatment works, and/or Solid Wastes placed in
bins and/or roll-off containers.
(29). Licensed Equipment means the Solid Waste collection and Recycling vehicles and Solid
Waste collection and Recycling plastic carts licensed by the CITY to the CONTRACTOR pursuant to
Section 11 of this Agreement.
(30). Materials Recovery Facility means a facility permitted as a Solid Waste Facility by the
California Integrated Waste Management Board for sorting, separating and processing of Recyclable
Solid Wastes as well as the segregation and transportation of non-Recyclable Solid Wastes to a
Disposal Site.
(31). Permitted Solid Waste Facility means a Solid Waste facility for which there exists a Solid
Waste Facilities Permit issued by the local enforcement agency and concurred in by the California
Waste Management Board.
(32). Person shall include, without limitation, associations, clubs, societies, firms, partnerships,
sole proprietorships, corporations, schools, colleges and all governmental agencies and entities, as well
as individuals, including the officers of such associations, corporations, etc.
(33). Processing means the reduction, separation, recovery, conversion or Recycling of Solid
Waste.
(34). Processing Charges shall mean those portions of the curbside, bin, roll-off container and
other rates provided for in this Agreement which compensate CONTRACTOR for Processing Solid
Wastes collected by CONTRACTOR in the CITY and delivered by CONTRACTOR to a designated
Materials Recovery Facility or Composting Facility. The parties have agreed upon the initial
Processing Charges, as set forth hereinafter, and such charges are subject to adjustments as provided in
this Agreement. The cost of transporting the residue of the CITY'S Solid Waste stream to a Disposal
Site after Processing the Recyclable Solid Wastes therefrom and the cost of transporting Recyclable
Solid Wastes to their ultimate destination shall be deemed part of this Processing Charge, but the gate
fee charged at said Disposal Site for depositing said Solid Waste residue shall not be included in the
Processing Charge.
(35). Recyclable Solid Waste means and includes those Solid Wastes which may be sorted,
cleansed, treated, processed and/or reconstituted for purposes of reuse. Recyclable Solid Wastes are
not a separate category of materials, but merely an evolving portion of the entire stream of Solid Waste
generated within the CITY.
(36). Recycling means collecting, sorting, cleansing, treating, Processing and reconstituting
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Recyclable Solid Wastes for the purpose of reuse or sale.
(37). Residential Bin Service shall mean Bin Service which is provided by CONTRACTOR to
any and all residential users which request or require such services pursuant to this Agreement.
(38). Residential Solid Waste means Solid Waste originating from single-family or multiple
family dwellings.
(39). Roll-Off Service shall mean Solid Waste collection from transportable containers of 10
cubic yards or larger which are dropped off at a residence, commercial or industrial establishment and
later removed for collection of contents of said container. Roll-Off Service includes compactors which
may be used with roll-off containers.
(40). Solid Waste shall mean all Solid Wastes, including, but not by way of limitation,
Recyclable Solid Wastes, whether now recyclable or not, generated and/or accumulated by all
residential, commercial and industrial sources, and at all construction and demolition sites within the
CITY excluding that Solid Waste referred to in Section 9(a) herein; provided, however, that Solid
Waste shall not be deemed, for purposes of this Agreement, to include any Hazardous Wastes as
defined hereinabove.
(41). Solid Waste Facility shall include a Composting Facility, Materials Recovery Facility or a
transfer station.
(42) Source Reduction and Recycling Element shall be the CITY'S plan for meeting the
requirements of CIWMA.
(43). Waste Type means identified wastes having the features ofa group or class of wastes that
are distinguishable from any other Waste Type, as identified by the CITY'S Source Reduction and
Recycling Element.
(44). Yard Waste means any wastes generated from the maintenance or alteration of public,
commercial or residential landscapes including, but not limited to, leaves, yard clippings, tree
trimming, brush, weeds and pruning.
(45) Yard Waste Diversion shall mean the diversion from the waste stream of yard waste or
organic waste and the composting, mulching, and/or transformation thereof.
4. SCOPE OF SERVICE:
(a) CONTRACTOR shall furnish all labor, material, facilities and equipment necessary, except
for those vehicles and equipment which the CITY shall license to CONTRACTOR pursuant to Section
11 herein, for the collection of all Solid Waste originating, generated and/or accumulated by any person
within CITY boundaries, as they now exist or may hereafter exist, and shall transport, process, Recycle,
divert by means of compo sting, mulching and/or transforming and/or dispose of said Solid Waste in
compliance with the terms of this Agreement.
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(b) All Solid Waste collected by CONTRACTOR within the CITY shall not be commingled in
equipment and/or vehicles used by CONTRACTOR, whether such equipment and vehicles are owned
by or licensed to CONTRACTOR pursuant to Section 11 herein, with Solid Waste from any other
jurisdiction or person from outside the CITY limits; however, in the event of an emergency vehicle
breakdown, a vehicle from a neighboring jurisdiction may complete the route of the vehicle which
broke down. In this case, the CONTRACTOR must notify the CITY in writing within twenty four (24)
hours of such emergency breakdown and must also provide the CITY with the allocation of tonnages
contained in the vehicle.
5. COLLECTION HOURS:
(a) All collections from residential areas shall be made between the hours of6:00 a.m. and 6:00
p.m. Collections from commercial and industrial locations greater than 100 feet from residential units
may start at 3:00 a.m. and must terminate by 9:00 p.m., however, if complaints are received from such
residential units, the Executive Director may direct that collections in such areas shall be made between
the hours of 6:00 a.m. and 6:00 p.m. and in that event CONTRACTOR agrees to comply with such
order.
(b) Notwithstanding section (a) above, Solid Waste collected pursuant to Section 13 hereto
shall be collected pursuant to the provisions contained therein.
6. HOLIDAYS:
Where, on a given route, the day of collection would be a legal holiday, CONTRACTOR shall
collect along said route on the work day next following said legal holiday and collection on each day
during said holiday week shall be similarly delayed one day. Legal holidays for the pmpose of this
Agreement shall be New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day, Christmas Day and such other days as may be mutually agreed upon in advance by the parties.
7. FREQUENCY OF COLLECTIONS:
The Contractor will collect all Solid Waste from all areas ofthe CITY at least once each week
and in addition will provide more frequent service for those Customers using the Bin Services or Roll-
Off Services supplied by CONTRACTOR if requested by a Customer or if required by the CITY.
Contractor shall provide additional collection services as set forth in Sections 14 (e) and (t).
8. MAINTENANCE OF SCHEDULES:
Presently existing routes, schedules and times for collection of Solid Waste shall be maintained
but may be changed by authorization of the Executive Director and at least one week's advance
notification by CONTRACTOR to occupants of the buildings in the area where the changes are to be
made.
9. EXCLUSIVENESS OF AGREEMENT:
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The CONTRACTOR shall have the exclusive duty, right and privilege to collect, transport,
process, Recycle, divert by means of compo sting, mulching, and/or transforming, retain and dispose of
all Solid Waste, as defined in this Agreement, generated and/or accumulated within the CITY, except
as provided below. CONTRACTOR recognizes that this grant of exclusiveness is subject to the
restraints provided in Public Resources Code Sections 49520 et seq.
(a) The grant of exclusiveness shall not include Construction and Demolition Solid Waste
which has accumulated and/or been generated at a temporary construction site and which is being
disposed of in roll-off containers or in bins.
(b) This Agreement shall not prohibit the persons who generate Solid Waste, or the persons
who own the premises upon which solid waste has been generated or accumulated, from personally
collecting, transporting and disposing of their own Solid Waste so long as they dispose of such Solid
Waste at a site permitted by the California Integrated Waste Management Board in accordance with all
governing laws and regulations.
(c) This Agreement shall not prohibit the persons who generate Solid Waste, or the persons who
own the premises upon which Solid Waste has generated or accumulated, from: (1) selling their
Recyclable Solid Wastes, or, (2) donating their Recyclable Solid Wastes; provided, however, that in
both instances: (a) the person must, on its premises, personally segregate (by Waste Type) from other
Solid Waste the Recyclable Solid Waste to be sold or donated, and (b) the person may not pay the
buyer or the donee any sums, consulting fees or other fees in lieu of charging for collection, or other
tangible consideration for collecting, Processing or transporting such segregated Recyclable Solid
Wastes. A person who simply receives a discount of, or reduction in, the collection and disposal
service rates of its unsegregated Solid Waste shall not be deemed to be selling or donating Recyclable
Solid Wastes for purposes of this exception.
(d) This Agreement shall not prohibit a gardener, tree trimmer or person engaged in landscape
maintenance who has a business license to operate in the CITY from collecting yard waste or other
organic Solid Wastes which it generates as an incidental portion of providing its licensed services. Any
yard waste or other organic Solid Waste collected pursuant to the exception provided by this subsection
must be transported by the gardener, tree trimmer or person to a compo sting facility permitted by the
California Integrated Waste Management Board in accordance with all laws and regulations.
( e) This Agreement shall not prohibit collectors of Solid Waste originating outside the CITY
from hauling such Solid Waste over CITY streets, provided such collectors comply with any governing
laws or ordinances.
(f) CONTRACTOR's right to collect and/or dispose of Solid Waste shall not be exclusive in the
event of a failure to collect under Section 34 of this Agreement during which CONTRACTOR fails to
maintain substantially complete regular collection services pursuant to this Agreement and the
collection schedules then in effect, for any reason, including a strike by CONTRACTOR's employees
or similar labor dispute. The CITY may provide for collection and/or disposal by persons other than
CONTRACTOR during such periods and may permit the public to obtain collection and/or disposal
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services from persons other than CONTRACTOR during such periods, including CONTRACTOR's
Bin and/or Roll-Off Service Customers.
(g). CONTRACTOR shall not have the exclusive right to collect and dispose of Solid Waste by
providing Bin and/or Roll-Off Service if the conditions stated in Section 28( c) are applicable.
(h) In exchange for the exclusive rights guaranteed above, CONTRACTOR shall provide to the
City a one million ($1,000,000.00) payment on July 1,2005 with an additional five hundred thousand
($500,000.00) per year to be paid monthly beginning July 1, 2006 and continuing each year until
expiration of this Agreement. The initial $1,000,000 payment will be made by CONTRACTOR upon
execution of this Agreement or on January 1, 2006, whichever occurs later. The additional $500,000
annual payment will be deducted monthly beginning July 1, 2006 on a pro rata basis from the curbside
service payments. However, neither payment will affect the rates that customers are currently paying.
10. SOLID WASTE PROGRAM SURCHARGE:
(a) CONTRACTOR shall pay to the CITY a Solid Waste program surcharge based upon the
Gross Receipts received by CONTRACTOR. This surcharge is now set at an amount equal to 12.8
percent of said Gross Receipts. This amount may be increased by resolution of the City Council and,
whenever said surcharge is increased by resolution of the City Council, CONTRACTOR shall be
permitted to pass through to both its Bin Service and Roll-Off Service Customers one hundred (100%)
percent ofthe amount of such increase.
(b) Invoices submitted to Customers by CONTRACTOR shall not reference the aforementioned
surcharge. Payments to the CITY of said Solid Waste surcharges shall be made to the CITY on a
monthly basis and shall be due and payable on or before the last calendar day of the following month.
Accompanying each payment will be a listing of the Gross Receipts for that corresponding month.
CONTRACTOR shall, whenever requested to do so, make available such records to the Executive
Director at any reasonable time.
(c) Failure of CONTRACTOR to make any of the payments provided for in section (a) above
on or before the dates due will result in a penalty of ten (10%) percent per month to CONTRACTOR.
11. AUTOMATED SYSTEM
(a) LICENSE: The CITY grants to the CONTRACTOR an exclusive license to use the Solid
Waste collection and Recycling vehicles and Solid Waste collection and Recycling carts listed on
Exhibit "A", attached hereto and incorporated herein by this reference (hereinafter referred to
collectively as "the Licensed Equipment"), for a period of time coterminous with the term of this
Agreement. This license to use the Licensed Equipment shall not be deemed an equipment lease but,
rather, a personal property license to use the Licensed Equipment pursuant to the specific terms,
covenants, obligations and provisions of this Agreement. CONTRACTOR may not use the Licensed
Equipment for any other purposes or business. This license is personal to the CONTRACTOR and
shall not be assigned. It is the intent of the parties hereto that the Licensed Equipment shall be
sufficient to permit CONTRACTOR to adequately perform its performance obligations under this
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Agreement. If at any time, or from time to time, the Licensed Equipment is not adequate for
CONTRACTOR to meet such obligations, or, the Solid Waste collection and Recycling vehicles
licensed pursuant to this section need to be replaced for any reason, including loss, CONTRACTOR
shall be responsible for providing any and all additional or replacement Solid Waste collection and
Recycling vehicles and any and all additional Solid Waste collection and Recycling carts as may be
necessary for the collection, Recycling and disposal of all Solid Waste for which it is responsible under
this Agreement.
(b) FINANCING: The Licensed Equipment being provided to CONTRACTOR pursuant to
section (a) hereunder is being acquired pursuant to that certain "Installment Purchase Contract" ("IPC")
between the CITY and the California Environmental Finance Corporation ("CEFC") dated June 1,
1996, a copy of which is on file with the Clerk of the Council and which is incorporated herein by this
reference. CONTRACTOR hereby acknowledges the flow of funds and priority of revenues set forth
in Section 3.06 of the IPC, which is further summarized on pages 12 and 13 of the Official Statement
accompanying the issuance of the tax exempt Certificates of Participation ("C.O.P.s") which have been,
or will be, issued by CEFC to raise the funds necessary for it to purchase the Licensed Equipment.
While not required to do so, CEFC has agreed to acquire the Licensed Equipment in accordance with
the competitive bidding procedures set forth in Section 421 of the CITY'S municipal charter. The
CITY agrees to take all necessary action and execute all necessary documents to facilitate the issuance
of the C.O.P.s and to approve an excess proceeds certificate authorizing an excess proceeds prepayment
of the C.O.P.s as provided in Sections 3.11 and 4.01(b) of that certain "Trust Agreement" by and
among the CITY, CEFC and Harris Trust Company of California, a copy of which is on file with the
Clerk of the Council and which is incorporated herein by this reference.
(c) MAINTENANCE OF LICENSED EQUIPMENT: CONTRACTOR shall, at its own
expense, maintain and preserve the Licensed Equipment in good repair and working order at all times
and will operate the Licensed Equipment in an efficient and economical manner and will pay all
maintenance and operation costs of the Licensed Equipment as they become due and payable. On or
before the first day of each fiscal year, CONTRACTOR will prepare a budget setting forth the
estimated maintenance and operation costs of the Licensed Equipment for such fiscal year.
(d) OPERATION OF LICENSED EQUIPMENT: CONTRACTOR shall be fully responsible
to the CITY for the storage, operation, maintenance and management of the Licensed Equipment.
CONTRACTOR shall distribute the Solid Waste collection and Recycling carts (one for Recyclable
Solid Waste, one for Yard Waste and one for non-Recyclable Solid Waste) to each Curbside Service
Unit throughout the CITY. CONTRACTOR will utilize the Licensed Equipment solely to collect,
recycle and/or dispose of Solid Waste generated within the CITY for which it is responsible pursuant to
this Agreement.
(e) FUEL FOR LICENSED EQUIPMENT: All fuel required for the operation of the Licensed
Equipment pursuant to this Agreement shall be purchased by the CONTRACTOR. CONTRACTOR
shall be responsible for the costs of such fuel and all costs associated therewith.
(f) OPTION TO PURCHASE: At such time as the C.O.P.s used to finance the Licensed
Equipment are paid in full or otherwise satisfied or demised, the CONTRACTOR shall have a ninety
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(90) day option during which it may purchase the Licensed Equipment from the CITY for the then fair
market value thereof. Exercise of this option shall be made by written notice from the CONTRACTOR
to the Executive Director. CITY and CONTRACTOR shall, within thirty (30) days after such exercise,
each select a licensed appraiser in the field to determine said fair market value. The appraisers shall
submit their appraisals to both parties within thirty (30) days after their selection, and the average
between their appraised values shall be deemed to be the fair market value. If CONTRACTOR desires
to purchase the Licensed Equipment, it must tender the full fair market value to the CITY within forty
five (45) days after both appraisers have delivered their appraisals. If either appraiser fails to act within
the terms of this option or if either party hereto fails to select an appraiser, the determination of the sole
appraiser shall be binding. The CONTRACTOR shall bear the expense of both appraisers. The CITY
agrees that if CONTRACTOR elects to exercise this option it will, after tender of the full purchase
consideration, do all things proper and necessary to transfer full title, free and clear of all liens and
encumbrances, to the Licensed Equipment to CONTRACTOR or its assignors. Should
CONTRACTOR not exercise this option to purchase the Licensed Equipment then, at the termination
of the license granted herein, CONTRACTOR shall surrender possession of the Licensed Equipment to
CITY in good order and repair to the satisfaction of CITY, normal wear and tear excepted. Proceeds
from the sale of the Licensed Equipment are the property of the City.
(g) REPLACEMENT OF RESIDENTIAL AND COMMERCIAL COLLECTION VEHICLES:
Once the City-owned collection vehicles, as described in Exhibit A and this Section have reached
the end of their useful lives, the CONTRACTOR will provide at its expense, new low-emission
collection vehicle replacements which meet or exceed the emission requirements of all Federal, State
or Local air quality laws or regulations. The CONTRACTOR will begin the process of replacing all
residential and commercial collection vehicles, starting with the oldest trucks in 2006 with the goal
of completing all truck replacements by 2012. All residential collection vehicles will display the
City's recycling logo. The CONTRACTOR will also replace the Solid Waste collection and
Recycling plastic carts as described in Exhibit A with new carts as needed. All replacement vehicles
and carts provided shall be owned and operated by the CONTRACTOR.
12. COLLECTION POINTS AND REQUIREMENTS:
(a) CONTRACTOR shall not be required to collect Solid Waste from any Curbside Service
Unit unless the same is placed on the curb along a public or private street, or along an alley having
street access at both ends, and is placed in Solid Waste collection and Recycling plastic carts provided
to the Curbside Service Unit by CONTRACTOR and is prepared for collection in a manner prescribed
by the CITY'S regulations covering the same. Under no circumstances shall CONTRACTOR be
required to pick up and collect any material or matter which is not Solid Waste as defined in this
Agreement, or to pick up and collect any Solid Waste from Curbside Service Units which does not
comply with the following standards and limitations:
(1) All Solid Waste shall be placed in the Solid Waste collection and Recycling plastic
carts provided by CONTRACTOR to each Curbside Service Unit pursuant to the following:
(a) Non-Recyclable Solid Waste shall be placed in burgundy plastic carts
provided by CONTRACTOR;
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(b) Recyclable Solid Waste shall be placed in grey plastic carts provided by
CONTRACTOR; and,
(c) Yard Waste shall be placed in green plastic carts provided by
CONTRACTOR.
(2) All non-Recyclable Solid Waste, Recyclable Solid Waste and Yard Waste shall be
placed in the appropriate Solid Waste collection and Recycling plastic carts adequate to eliminate
overflow or contamination of surrounding areas. Any non-Recyclable Solid Waste, Recyclable Solid
Waste and/or Yard Waste which is not placed in a Solid Waste plastic cart which has been provided to
the Curbside Service Unit will not be picked up; and,
(3) Large, heavy items, including, without limitation, water heaters, couches, tables,
refrigerators, stoves, and large pieces of furniture or household equipment shall be considered bulky
items which may be disposed of under the provisions of Section 21.
(b) The aforementioned requirements to place non-Recyclable Solid Waste, Recyclable Solid
Waste and Yard Waste in appropriate Solid Waste collection and Recycling plastic carts shall not apply
to Christmas trees properly placed for collection.
(c) Whenever any Solid Waste that does not comply with the above standards and limitations is
not collected by CONTRACTOR, CONTRACTOR shall leave a notice, the format of which is subject
to the approval of the CITY, indicating the reason for non-collection at such Curbside Service Unit.
Said notice shall also contain the CONTRACTOR's business name and his local telephone number. A
copy of said notice shall be delivered, or sent via telephone facsimile, to the CITY upon request by the
Executive Director and, if the reason for noncollection is not corrected within seven (7) days,
CONTRACTOR shall notify the CITY as to this continued noncollection.
13. SERVICES TO BE PROVIDED BY CONTRACTOR TO CITY FOR CITY
OPERATIONS:
(a) CITY GOVERNMENT OPERATIONS: CONTRACTOR shall collect all Solid Waste and
Construction and Demolition Solid Waste which is generated by CITY government operations at no
cost to the CITY. The CITY shall provide CONTRACTOR with a list of locations of bins and/or roll-
off containers from which such Solid Waste shall be collected. Said list may be modified by time to
time by the Executive Director. Solid Waste generated by such CITY operations shall be collected by
CONTRACTOR per a schedule provided to CONTRACTOR by the Executive Director which
schedule shall be approved between the CONTRACTOR and the Executive Director.
(b) STREET SWEEPING: The CONTRACTOR will coordinate with the Executive Director
to ensure that Solid Waste collection is compatible with the CITY'S street sweeping operations.
CONTRACTOR will be required to complete their designated routes each day so as not to interfere
with the CITY'S street sweeping operations.
(c) NEIGHBORHOOD CLEANUPS: The Contractor shall supply rolloff containers for
CITY sponsored neighborhood cleanups at no cost to the CITY. The number of roll off containers shall
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not exceed a maximum total number of three hundred (300) containers annually.
Notwithstanding the above, at any time that the CITY determines that the number of collections
and/or the number of roll-off containers provided for in section (c) is not adequately meeting the
CITY'S needs, then the CITY and CONTRACTOR agree to meet and confer regarding these
provisions, and may, by mutual agreement, modify the number of collections and/or roll-off containers.
14. COLLECTION. RECYCLING. YARD WASTE DIVERSION AND DISPOSAL
REQUIREMENTS:
(a) CURBSIDE SERVICE: CONTRACTOR shall provide each Curbside Service Unit within
the CITY with a minimum of three (3) Solid Waste collection and Recycling plastic carts. Any
provision of less than three (3) such plastic carts to any Curbside Service Unit shall be approved by the
Executive Director. Each Solid Waste plastic cart shall be a different color as described in Section 12
above. CONTRACTOR shall be required to collect contents of each Solid Waste plastic cart once per
week and CONTRACTOR shall be required to process the contents of said plastic carts as follows:
(1) Non-Recyclable Solid Waste Collection and Recycling Plastic Carts: Contents of
plastic carts containing Solid Waste shall be hauled directly to a legally authorized Disposal Site
pursuant to subsection (e) herein.
(2) Recyclable Solid Waste Collection and Recycling Plastic Carts: The contents of
containers containing Recyclable Solid Waste shall be hauled to a Material Recovery Facility ("MRF"),
which MRF shall be acceptable to the CITY, for Processing and diversion. All Solid Waste transported
to said MRF shall be processed and the portion thereof which is recyclable shall be recycled by Waste
Type in amounts so as to comply with CIWMA and the CITY'S Source Reduction and Recycling
Element ("SRRE"). In the event that the MRF approved by the CITY is not operated by the
CONTRACTOR, CONTRACTOR will be responsible to subcontract for the use of such a facility so as
to ensure the CITY'S compliance with CIWMA.
(3) Yard Waste Collection and Recycling Plastic Carts: The contents of the plastic
carts containing Yard Waste will be transported to a Composting Facility which meets all state, federal
and local laws for Yard Waste Diversion and which is acceptable to the CITY. CONTRACTOR shall
be responsible to ensure that the Yard Waste collected by CONTRACTOR is diverted in compliance
with CIWMA and the CITY'S SRRE.
(b) BIN SERVICE: CONTRACTOR shall operate a Recycling program as described herein
for Bin Service. Such Recycling program shall require that CONTRACTOR take the Solid Waste in
bins which have clean "dry" loads to a MRF which is acceptable to the CITY for Processing and
diversion. CONTRACTOR shall guarantee that, at a minimum, fifty (50%) percent of the tonnage of
Solid Waste which is contained in bins and which is determined to have a high recyclable content will
be transported to a MRF. All Solid Waste which is transported to said MRF shall be processed and the
portion thereof which is recyclable shall be recycled by Waste Type in amounts so as to comply with
CIWMA and the CITY'S SRRE. In the event that the MRF approved by the CITY is not operated by
the CONTRACTOR, CONTRACTOR will be responsible to subcontract for the use of such a facility
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so as to ensure the CITY'S compliance with CIWMA. CONTRACTOR shall be permitted to transport
directly to a legally authorized Disposal Site those bins which are determined to have limited Recycling
potential due to food or other types of contamination. Any modifications to the above-referenced
percentage shall be approved by the Executive Director and shall be based on the diversion realized.
(c) ROLL-OFF SERVICE: CONTRACTOR shall process all Solid Waste collected from its
Roll-Off Service in compliance with the CITY'S SRRE and CIWMA. CONTRACTOR shall transport
all Solid Waste collected by the CONTRACTOR from roll-off service within the CITY boundaries to a
state permitted MRF, as provided in, and in compliance with, CIWMA, which MRF shall be acceptable
to the CITY. All Solid Waste transported to said MRF shall be processed and the portion thereof which
is recyclable shall be recycled by Waste Type in amounts so as to comply with CIWMA and the
CITY'S SRRE. In the event that the MRF approved by the CITY is not operated by the
CONTRACTOR, CONTRACTOR will be responsible to subcontract for the use of such a facility so as
to ensure the CITY'S compliance with CIWMA.
(d) TEMPORARY BIN SERVICE: CONTRACTOR shall process all Solid Waste collected
from temporary bins, not including Construction and Demolition Solid Waste, in compliance with the
CITY'S SRRE and CIWMA. CONTRACTOR shall transport all Solid Waste collected by the
CONTRACTOR from temporary bins within the CITY boundaries to a state permitted MRF, as
provided in, and in compliance with, CIWMA, which MRF shall be acceptable to the CITY. All Solid
Waste transported to said MRF shall be processed and the portion thereof which is recyclable shall be
recycled by Waste Type in amounts so as to comply with CIWMA and the CITY'S SRRE. In the event
that the MRF approved by the CITY is not operated by the CONTRACTOR, CONTRACTOR will be
responsible to subcontract for the use of such a facility so as to ensure the CITY'S compliance with
CIWMA.
(e) PARKWAY CLEAN-UP FOLLOWING GARAGE SALES: CONTRACTOR shall
provide 2 employees in a "front-loader vehicle that will devote 60 hours each six working days
following the quarterly garage sales to canvass the City neighborhoods in order to remove debris left in
the parkways after garage sales. CONTRACTOR shall transport all Solid Waste collected by the
CONTRACTOR from Parkway Cleanups within the CITY boundaries to a state permitted MRF' as
provided in, and in compliance with, CIWMA, which MRF shall be acceptable to the CITY.
(t) ALLEY CLEAN-UP FOLLOWING THE 1sT OF EACH MONTH: CONTRACTOR shall
provide 2 employees in a "front-loader vehicle that will devote 60 hours each six working days
following the first day of each month and six working days during the third week of the month to
canvas the City neighborhoods in order to remove debris left in alleyways following relocations.
CONTRACTOR shall transport all Solid Waste collected by the CONTRACTOR from Alley Cleanups
within the CITY boundaries to a state permitted MRF, as provided in, and in compliance with,
CIWMA, which MRF shall be acceptable to the CITY.
(g) DISPOSAL: CONTRACTOR shall be required to dispose of any and all Solid Waste
which is not recycled or diverted by means of composting, mulching and/or transforming pursuant to
the terms of this Agreement, at a legally authorized Disposal Site(s) as designated by the CITY. If
CONTRACTOR is directed to dispose of said Solid Waste at a location other than the County of
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Orange's Disposal Sites, both parties agree to meet and confer regarding any potential rate adjustments
which may be necessitated thereby. Should Disposal Sites become unavailable in Orange County at
any time during the term of this Agreement, CONTRACTOR hereby guarantees disposal at another
Disposal Site owned and operated by CONTRACTOR or an affiliate, and both parties agree to meet
and confer regarding any potential rate adjustments which may be necessitated thereby. Additionally,
CONTRACTOR hereby agrees and guarantees to the CITY that the CITY will be indemnified for
CERCLA liability for any Solid Waste collected by the CONTRACTOR in the CITY which is
delivered to CONTRACTOR's landfill.
(h) CONTRACTOR will act as the contracting body and lead agency with the MRF and
Composting Facility with respect to this Agreement and shall be responsible for, and insure that, both
facilities act so as to meet the requirements of both this Agreement and CIWMA.
(i) CONTRACTOR hereby agrees and guarantees to the CITY that CONTRACTOR will do
each, every and all things required to ensure that all Solid Waste generated, produced or accumulated in
the CITY which is collected by CONTRACTOR will at all times be in full compliance with all of the
provisions of the CITY'S SRRE, CIWMA, and amendments thereto adopted hereafter, and will protect,
indemnify, pay, save, defend, and hold the CITY harmless from any and all loss, expense, damage,
fines, penalties and liability of every kind and nature whatsoever by virtue of any non-compliance with
such CITY and statutory requirements, provided, however, that CONTRACTOR shall not be
responsible to the extent Solid Waste is generated in the CITY and collected, processed or disposed of,
by other than CONTRACTOR. Further, CONTRACTOR agrees to protect, defend, with counsel
approved by the CITY, and indemnify CITY against any and all fines and/or penalties imposed by the
California Integrated Waste Management Board in the event that the diversion quantities contained in
the CITY'S SRRE, or any other requirement of CIWMA, are not met.
15. SYSTEM SAVINGS:
(a) SAVINGS PAYABLE TO CITY: In addition to the surcharge paid pursuant to Section 10
herein, CONTRACTOR has also agreed to pay to the CITY One Million Three Hundred Fifty One
Thousand Five Hundred Dollars ($1,351,500.00) in system savings each year during the term of this
Agreement. Such savings shall be deducted in monthly installments of One Hundred Twelve Thousand
Six Hundred and Twenty Five Dollars ($112,625.00) each from payments made to CONTRACTOR for
curbside service pursuant to Section 22 herein.
(b) POSSIBLE ADDITIONAL SAVINGS: The parties hereto have agreed that any additional
savings which may result from changes in the diversion percentages referred to in Section 14(b) above
shall be split evenly between the CITY and the CONTRACTOR. Such savings shall be the dollar
amount equal to the difference in the CONTRACTOR's per ton cost for Processing and disposal of Bin
Service at a MRF and the per ton cost of disposal at a Disposal Site multiplied by the number of
additional tons taken directly to a Disposal Site. Any such additional savings shall be computed on a
monthly basis and such amounts shall be paid to the CITY by CONTRACTOR on or before the last
calendar day of each subsequent month.
16. CIWMA REPORTING REQUIREMENTS:
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CONTRACTOR shall prepare and submit to the CITY, on forms previously approved by the
CITY, all monthly or annual reports required of the CITY pursuant to the CIWMA. In addition thereto,
within sixty (60) days after the end of each calendar year, the CONTRACTOR shall provide to the
CITY an annual report which: (a) provides a collated summary of all the information contained in the
monthly reports referred to above; (b) provides a narrative description of all public awareness activities
of CONTRACTOR during the past one year which may have impacted Recycling participation; and (c)
provides a discussion of Recycling and source reduction program highlights and difficulties.
CITY may require additional reports from CONTRACTOR should the reports requested, or
submitted, pursuant to this section not satisfactorily fulfill the CITY'S requirements.
17. SRRE CONSULTANT:
(a) CONTRACTOR shall provide consultant services as necessary to modify the CITY'S
SRRE as required by either the County of Orange AB 939 Local Task Force and/or the State of
California. The consultant to perform such services shall be approved by the CITY. Such consultant
services shall be provided upon request by the CITY and shall be subject to final approval of the CITY.
The CONTRACTOR shall be responsible for a maximum cost for such services of twenty thousand
($20,000.00) dollars per fiscal year. Any costs incurred by the CONTRACTOR for services approved
by the CITY which exceed twenty thousand ($20,000.00) dollars per fiscal year shall be the
responsibility of the CITY as provided in section (b) below.
(b) CONTRACTOR shall submit a monthly report showing consultant services performed for
the preceding month. Subject to the approval of the Executive Director, any costs for approved
services which exceed twenty thousand ($20,000.00) dollars per fiscal year shall be made by the CITY
within thirty (30) days of receipt of said report for work satisfactorily performed.
18. PUBLIC EDUCATION SERVICES:
The CONTRACTOR shall be responsible for the provision of public education services as
provided in the CITY'S SRRE. These services shall include, but are not limited to, the following items:
(a) the production and distribution of a pamphlet containing trash regulations and holidays to all
Customers and Curbside Service Units on a yearly basis and to all new service starts at service
initiation;
(b) the production and distribution to all Customers and Curbside Service Units every year of
pamphlets concerning source reduction, Recycling and/or Yard Waste Diversion on an annual basis and
to all new service starts at service initiation;
(c) the performance, as needed, of community presentations on source reduction, Recycling and
Yard Waste Diversion, including the production of all presentation materials;
(d) the provision, as necessary, of technical assistance in the areas of source reduction,
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Recycling and Yard Waste Diversion;
( e) the establishment and maintenance of a telephone hotline to receive calls from the public
and provide information concerning integrated waste management;
(f) cooperation in the production of an integrated waste management video for use by the CITY;
and,
(g) development and management of grants pursuant to the regulations contained in the
CIWMA and/or adopted by the California Integrated Waste Management Board including the
Department of Conservation and other governmental agencies that offer grants related to collection and
recycling services provided under the Agreement In fiscal year 05-06 CONTRACTOR will receive:
$5500 per month for the collection of used oil containers and filters. This includes all
manpower, vehicle, fuel, accounting and administrative costs associated with the collection program.
$75.00 per hour for grant administrator's time to develop and administer the grant programs.
This Section may be reasonably modified from time to time as deemed necessary and
appropriate by the Executive Director, including increased grant compensation paid to Contractor upon
a writing executed by the Executive Director. The CONTRACTOR shall be required to work with the
Executive Director in the preparation and production of the services listed and to proceed in the
rendering of such services as the CITY dictates. Any services required hereunder shall require the
Executor Director's approval prior to the execution thereof.
19. STANDARDS FOR COLLECTION. EQUIPMENT AND NOISE:
(a) Equipment and vehicles used by CONTRACTOR, whether owned by or licensed to
CONTRACTOR, for the collection and hauling of Solid Waste shall be used so as to assure, in the
reasonable opinion of the Executive Director, that adequate standards of collection will be maintained.
All loads in CONTRACTOR's vehicles shall be kept completely covered at all times except when
material is actually being loaded or unloaded or where the vehicles are on route in the process of
collection. The collection equipment must be designed and operated in such a manner as to prevent
Solid Waste from escaping the vehicle. Any spillage of materials which occurs during the collection
process shall be immediately cleaned up by the CONTRACTOR at its expense. Further, all vehicles
used by the CONTRACTOR pursuant to this Agreement which are not owned by the CITY shall be
registered by CONTRACTOR with the Department of Motor Vehicles of the State of California. The
CONTRACTOR's vehicles and equipment shall be subject to inspection by the CITY.
(b) It is the declared interest of the CITY that the CONTRACTOR be able to provide a variety
of sizes of bin and roll-off containers to meet the capacity requirements of commercial and residential
bin and roll-off container users. No material shall be permitted to leak, fall or be spilled on CITY
streets, alleys or highways. Any such leakage or spills occurring shall be immediately corrected and the
area cleaned at the CONTRACTOR's expense. The equipment used must be maintained in good
mechanical condition and must employ adequate safety conditions for the operating personnel.
(c) All collections shall be made as quietly as possible and no unnecessarily noisy trucks or
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equipment shall be used. Employees of the CONTRACTOR who are unnecessarily noisy or who
violate the provisions of the State Motor Vehicle Code and/or any applicable CITY ordinance in the
collection of said materials shall be disciplined pursuant to CONTRACTOR's performance standards.
(d) CONTRACTOR shall equip all Solid Waste collection and Recycling vehicles which
collect Solid Waste within the CITY with informational displays. The CITY shall advise
CONTRACTOR as to the messages which should be displayed while said vehicles are operating for the
CITY. The CITY may, at its option, have the messages to be displayed changed once per year.
20. MAINTENANCE OF BINS AND ROLL-OFF CONTAINERS:
(a) Bins and roll-off containers provided by CONTRACTOR shall be of a design and size to
contain, at all times, the contents therein in such a manner as to promote best possible housekeeping
conditions. Bins and roll-off containers supplied by the CONTRACTOR shall, at all times, be
maintained by it in a well-kept appearance and shall be marked with reflectorized material where such
bins and/or roll-off containers are or may reasonably be expected to be located in the public right-of-
way. Customers shall be responsible for the cleanliness, sanitation and deodorizing of such bins and
roll-off containers; provided, however, CONTRACTOR shall provide in its agreements with its
Customers for a bin or roll-off container cleaning service, including painting either as needed, at the
request of the Customer or at the request of the CITY, for a fee of twenty five ($25.00) dollars.
(b) Curbside Service Units shall be responsible for the cleanliness and sanitation of the Solid
Waste collection and Recycling plastic carts provided to such units.
(c) CONTRACTOR shall cause to have graffiti removed from bins within two (2) business
days and from roll-off containers within five (5) business days of a request by CITY to do so. Failure
to remove the graffiti within the required two (2) business days for bins and five (5) business days for
roll-off containers, excluding holidays, shall result in the assessment of a two hundred dollar ($200.00)
fine to the CONTRACTOR. CONTRACTOR may charge the user of a bin or roll-off container which
requires such graffiti removal a charge of twenty five ($25.00) dollars per incident.
(d) The Solid Waste collection and Recycling plastic carts receiving curbside service shall be
replaced where found by CONTRACTOR. The CITY reserves the right, upon submission of proof by
the Curbside Service Unit, to withhold sufficient compensation under this Agreement to adjust and pay
any claim for Solid Waste collection and Recycling plastic carts damaged by the willful or careless acts
of the employees of the CONTRACTOR. Repairs and replacement costs for said plastic carts shall be
borne by CONTRACTOR; provided, however, that such repairs and/or replacements costs shall not be
borne by CONTRACTOR when caused by the wanton or intentional destruction thereof by the
Curbside Service Unit. Curbside Service Units shall be billed by CONTRACTOR for replacements
caused by intentional or wanton destruction.
21. COLLECTION OF BULKY ITEMS:
In order to promote public sanitation and reduce fire hazards, CONTRACTOR shall provide to
all Curbside Service Units the service of curbside collection of bulky items such as couches,
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refrigerators, rugs, water heaters, and other items of Solid Waste, which CONTRACTOR is not
required to collect under Section 12 because of size or weight, as follows:
(a) Upon request by a Curbside Service Unit within the CITY, CONTRACTOR shall provide
no more than two at-demand bulky item collections per year per Curbside Service Unit at no additional
cost. Each such Curbside Service Unit is limited to a maximum of four (4) bulky items (or twenty (20)
bags of yard waste) per pick-up request. Such collection services shall provide the opportunity of
having large objects, and other Solid Waste which is not required to be picked up pursuant to this
Agreement, picked up and processed properly. Requests by Curbside Service Units for such collections
shall be made directly to the CONTRACTOR who shall provide satisfactory telephone message
receiving, transmitting and response procedures and who shall be responsible for maintaining a log of
such large item collections. At demand pick ups shall be responded to by CONTRACTOR within a
reasonable time but no more than five (5) working days after such a request is received. Requests for
more than two (2) at-demand collections per year shall cost thirty ($30.00) dollars per collection and
shall be billed to the Curbside Service Unit requesting the additional collection by the
CONTRACTOR.
(b) CONTRACTOR shall provide assistance of removal of bulky items on private property to
senior citizens and the disabled at no cost.
(c) CONTRACTOR shall provide for the collection and recycling of televisions, computer
monitors and computer laptops as part of the Bulky Item collection program.
22. CURBSIDE SERVICE PAYMENTS:
(a) The CONTRACTOR shall establish rates for its provision of curbside services pursuant to
this Agreement. Such rates shall in no case exceed those set forth on Exhibit "C" attached hereto and
incorporated herein by this reference. The City shall collect on behalf of the CONTRACTOR the rates
established by the CONTRACTOR for said services. Rates collected and paid to the CONTRACOTR
shall be based on the total number of Curbside Service Units billed by the CITY for curbside service
during that month. CITY shall make billing records available to CONTRACTOR upon reasonable
notice for the purpose of auditing such records.
(b) Remittance to the CONTRACTOR of payments collected by the CITY for curbside service
shall on a monthly basis.
(c) Payments to be made to the CONTRACTOR shall be reduced each month by an amount
equal to the total monthly payment on the C.O.P.s. A monthly payment schedule of the maximum
amount of monthly payments on the C.O.P.s will be attached as Exhibit "D" once they are issued. The
payments to be made to CONTRACTOR shall not be reduced to the extent of any credits against
installment payments received by the CITY pursuant to Section 4.01 ofthe IPC.
23. RESIDENTIAL BIN SERVICE RATES:
(a) The CONTRACTOR shall receive compensation for supplying Bin Service to residential
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bin users by direct billing of the Customers receiving such service by means of separate agreements
entered into between the CONTRACTOR and each Residential Bin Service Customer. A copy of
every such agreement shall be made available to the Executive Director by CONTRACTOR.
(b) Rates for Residential Bin Service, including Gate Fees, Hauling Charges, Processing
Charges and any Recycling and Yard Waste Diversion, shall be established by the CONTRACTOR and
shall not exceed those set forth on Exhibit "C" attached hereto and incorporated herein by reference.
Such rates shall include a one (1 %) percent charge based on Gross Receipts which shall be paid to the
CITY by CONTRACTOR on a monthly basis and which shall be due and payable on or before the last
calendar day of each month for the previous month. Said charge shall be used to offset a rate reduction
approved by the CITY for senior citizen and mobile home park Curbside Service Units.
CONTRACTOR shall make records containing Residential Bin Service available to the Executive
Director at any reasonable time.
24. COMMERCIAL/INDUSTRIAL BIN SERVICE RATES:
(a) The CONTRACTOR shall receive compensation for supplying Bin Service to
commercial/industrial bin users by direct billing of the Customers receiving such service by means of
separate agreements entered into between the CONTRACTOR and each such Bin Service Customer.
A copy of every such agreement shall be made available to the Executive Director by CONTRACTOR.
(b) Rates for Commercia1/Industrial Bin Service, including Gate Fees, Hauling Charges,
Processing Charges and any Recycling and Yard Waste Diversion, shall be established by the
CONTRACTOR and shall not exceed those set forth on Exhibit "C" attached hereto. Such rates shall
include a one (1%) percent charge based on Gross Receipts which shall be paid to the CITY by
CONTRACTOR on a monthly basis and which shall be due and payable on or before the last calendar
day of each month for the previous month. Said charge shall be used to offset a rate reduction approved
by the CITY for senior citizen and mobile home park Curbside Service Units CONTRACTOR shall
make records containing Commercial/Industrial Bin Service available to the Executive Director at any
reasonable time.
25. ROLL-OFF SERVICE RATES:
(a) The CONTRACTOR shall receive compensation for supplying Roll-Off Service by direct
billing of the Customers receiving such service by means of separate agreements entered into between
the CONTRACTOR and each such Customer. A copy of every such agreement shall be made available
to the Executive Director by CONTRACTOR. Roll-off Service shall be provided at a minimum of
three (3) dumps per month per Customer.
(b) Rates for Roll-Off Services, including container delivery, collection, hauling and
transportation, shall be established by the CONTRACTOR and shall not exceed those set forth on
Exhibit "C" attached hereto. Such rates shall include a one (1%) percent charge based on Gross
Receipts which shall be paid to the CITY by CONTRACTOR on a monthly basis and which shall be
due and payable on or before the last calendar day of each month for the previous month. Said charge
shall be used to offset a rate reduction approved by the CITY for senior citizen and mobile home park
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Curbside Service Units. CONTRACTOR shall make records containing Roff-Off Service available to
the Executive Director at any reasonable time.
26. COMPENSATION FOR GRANTS:
CONTRACTOR shall be permitted to obtain compensation in an amount approved by the
Executive Director for the management of grants pursuant to Section 18(g) herein.
27. ADJUSTMENTS TO CHARGES:
(a) HAULING AND PROCESSING CHARGES:
(1) PRICE INDICES: The two indices which will be used for determining adjustments
to Hauling and Processing Charges shall be the December Consumer Price fudex ("CPI") for All Urban
Consumers (base years 1982-1984 = 100) for Los Angeles-Anaheim-Riverside CMSA, published by
the United States Department of Labor, Bureau of Labor Statistics and the December Producer Price
fudex ("PPI"), Diesel Fuel #2 (#057303. When both indices are to be used to determine an adjustment
to the Hauling and Processing Charges, then the adjustment formula shall be as follows: the CPI shall
be weighted at ninety (90%) percent and the PPI shall be weighted at ten (10%) percent.
(2) CURBSIDE SERVICE: The Hauling Charges and Processing Charges for
curbside service shall be adjusted annually, using the CPI and PPI adjustment formula set forth in
subsection (a)(l) above without limitation; provided, however, that adjustments permitted to the
Hauling and Processing Charges during this time period shall be calculated at seventy five (75%)
percent of the CPI with a five (5%) percent maximum adjustment and a zero 0% percent minimum
adjustment per year.
(3) BIN SERVICE AND ROLL-OFF SERVICE: From July 1, 1997 until the
termination of this Agreement, the Hauling and Processing Charges for Bin Service and Roll-Off
Service shall be adjusted in accordance with the CPI and PPI adjustment formula set forth in subsection
(a)(I) above. Adjustments to the Hauling and Processing Charges for Bin Service and Roll-Off Service
shall be calculated at seventy five (75%) percent of the CPI with a five (5%) percent maximum
adjustment and a zero 0% percent minimum adjustment per year.
(b) GATE FEES: Should any increase or decrease in the Gate Fees charged by a Disposal Site
occur during the term ofthis Agreement, CONTRACTOR shall be permitted to pass through to both its
Bin Service Customers and its Roll-Off Service Customers and CITY shall pass through to its curbside
service users one hundred (100%) percent of such increase or decrease in the Gate Fees for that portion
of the Solid Waste which is taken to the Disposal Site. CITY shall pass through to CONTRACTOR
such increase or decrease in its curbside service payments to CONTRACTOR. Should a change in
Gate Fees become effective on July 1st of any year, the parties agree to utilize the tonnages from the
previous calendar year to determine the percentage of Solid Waste that is taken to the Disposal Site.
(c) SOLID WASTE PROGRAM SURCHARGE: Should any increase or decrease in the
Hauling and Processing Charge or the Gate Fees occur during the term of this Agreement,
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CONTRACTOR shall be permitted to pass through to both its Bin Service and its Roll-Off Service
Customers the corresponding increase or decrease incurred by CONTRACTOR for the Solid Waste
program surcharge which CONTRACTOR is required to pay pursuant to Sections 10, 23(b) and 24(b)
herein.
(d) ADMINISTRATIVE COST: The Administrative Cost for curbside service shall be
adjusted annually. The Administrative Cost shall be adjusted using the CPI set forth in subsection (a)
(1) above; provided however, that adjustments shall be calculated at one hundred (100%) percent of the
CPI.
28. SPECIAL BIN SERVICES AND CUSTOMER SERVICE REQUIREMENTS:
(a) The CONTRACTOR may enter into agreements with Bin Service Customers for special
collection services different from, in addition to, or greater than the minimum collection services
required by this Agreement. The special fees which CONTRACTOR may charge Bin Service
Customers are set forth on attached Exhibit "C."
(b) CONTRACTOR shall not be permitted to charge a special fee for moving a bin from
between buildings, other than the fees permitted as set forth on attached Exhibit "C". Further,
CONTRACTOR may not charge a fee when it is required to move its vehicles in reverse for purposes
of emptying a bin. Circumstances not covered by any of the above or on attached Exhibit "C" shall
require an inspection by the CITY prior to a determination of the charges which may be imposed. The
decision of the Executive Director in respect to these charges shall be final. A brief explanation of each
special service charge must be included on every Customer's billing.
(c) In the event the CONTRACTOR is unable to provide temporary service to any Customer
within five (5) calendar days after receipt of a call by such Customer, the Executive Director may
permit any other licensed hauler to provide temporary service to such Customer if, but only if,
CONTRACTOR has not provided such service within twenty-four (24) hours after reasonable
notification by the Executive Director to CONTRACTOR.
29. MINIMUM SERVICE LEVELS - MUL TI-F AMIL Y RESIDENTIAL BUILDINGS:
(a) CITY shall require that all residential buildings with three or more dwelling units be served
by Bin Service, except that CITY may waive such requirement for any residential buildings with four
(4) or more units existing on January 1, 1972 and for any residential buildings with three (3) units
existing on February 23, 1983, upon a determination that no lawfully usable space is available for such
container within the boundary lines of the subject property. The CONTRACTOR shall provide bin
containers of such capacity and collections of such frequency for residential buildings required to have
Bin Service by this section as to provide for Solid Waste collection of not less than one-half (1/2) of
one (1) yard of Solid Waste collection per dwelling unit per week. In all cases, collections shall be
made at least once per week. CONTRACTOR shall comply with any request by the Executive Director
to change the scheduled collection days for Residential Bin Service Customers, which is designed to
promote conformity of Bin Service collections in any specified area of the CITY to improve sanitation
or reduce noise.
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(b) In the event that Solid Waste being disposed of at a Residential Bin Service building
exceeds the bin capacity for such building, CONTRACTOR shall notify the Executive Director who
shall cause an inspection to be made of the premises. If the Executive Director determines that there is
insufficient bin capacity at said location, he shall cause written notification to be given to the property
owner and/or person in possession of the property. Said notification shall contain the date of the
reported overflow of Solid Waste from the bins. The notice shall also inform the property owner and/or
person in possession of the property that should another incident of overcapacity occur within thirty
(30) days following the date ofthe original incident, the property owner and/or person in possession of
the property will be required to increase the number of bins, the size of the bin, or the frequency of
collections, up to the equivalent of two (2) cubic yards per dwelling unit per week. In the event that
this should occur, the Executive Director shall determine whether to increase the number of bins or the
frequency of collections and CONTRACTOR shall furnish such additional services and shall be
entitled to compensation from the Customers to the same extent as if the Customer requested such
additional collections from the CONTRACTOR.
30. MINIMUM SERVICE LEVELS - COMMERCIALIINDUSTRIAL BIN SERVICE AND
ROLL-OFF SERVICES:
City shall require that all commercial and/or industrial units and/or buildings be served by Bin
Service or Roll-Off Service; provided, however, that this requirement may be waived by the Executive
Director. In the event that Solid Waste being disposed of at a commercial/industrial bin or roll-off
container unit exceeds the bin or roll-off container capacity for such building, CONTRACTOR shall
notify the Executive Director who shall cause an inspection to be made of the premises. If the
Executive Director determines that there is insufficient bin or roll-off container capacity at said
location, he shall cause written notification to be given both to the business and the property owner.
Said notification shall contain the date of the reported overflow of Solid Waste from the bin or roll-off
container. The notice shall also inform the business and property owner that should another incident of
overcapacity occur within thirty (30) days following the date of the original incident, the business
and/or property owner will be required to increase the number of bins or roll-off containers, or the
frequency of collections. In the event that this should occur, the Executive Director shall determine
whether to increase the number of bins or roll-off containers, the size of the bin or roll-off container, or
the frequency of collections and CONTRACTOR shall furnish such additional services and shall be
entitled to compensation from such Customers to the same extent as if the Customer requested such
additional collections from the CONTRACTOR.
31. SERVICE STANDARDS:
(a) The CONTRACTOR's office shall be accessible by a local or toll-free telephone number.
The CONTRACTOR's office hours shall be open at a minimum from 8:00 a.m. to 5:00 p.m. Monday
through Friday and from 8:00 a.m. to noon on Saturdays. CONTRACTOR's offices shall be closed on
Sundays and holidays. The CONTRACTOR shall have an answering machine in operation after
normal business hours, and on Sundays and holidays thus enabling the public to leave a message. The
CONTRACTOR shall have the capability of responding to the public in English and Spanish during
office hours.
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(b) CONTRACTOR may charge a delinquency fee of not more than ten (10%) percent per
month on accounts which have not remitted required payments within 30 days after the date of billing.
Should payment not be received within 45 days of billing, CONTRACTOR shall notify said Customer
on forms approved by the CITY that services may be discontinued 15 days from the date of the notice if
payment is not made before that time. Upon payment of the delinquent fees, CONTRACTOR shall
resume collection on CONTRACTORS next regularly scheduled collection day. CONTRACTOR
shall provide the CITY with a bi-weekly list indicating the Customers which have had service ceased
due to nonpayment.
32. SUPERVISION:
Performance of each of the provisions of this Agreement shall be under the direction and
supervision of the Executive Director. The CONTRACTOR shall furnish the Executive Director every
reasonable opportunity of ascertaining whether or not the work is performed in accordance with the
requirements of this Agreement. The CONTRACTOR shall designate a person to serve as agent and
liaison between its organization and the CITY and shall maintain a telephone and a means for contact at
all times during periods of strike or other emergencies. The Executive Director may inspect the
CONTRACTOR's operations, facilities and equipment at any reasonable time and the CONTRACTOR
shall admit him to make such inspections at any reasonable time and place.
33. TITLE TO SOLID WASTE:
Title to all Solid Waste collected pursuant to this Agreement shall be vested in
CONTRACTOR upon being placed at the curb for collection, or placed in a bin or roll-off container for
collection. CONTRACTOR expressly hereby reserves and is granted the right to retain, dispose of and
otherwise use such Solid Waste, or any part thereof, in any fashion and for any lawful purpose desired
by CONTRACTOR and to retain any benefit or profit resulting there from provided, however, that
CONTRACTOR first complies with this Agreement, the CITY'S SRRE and CIWMA.
34. FAILURE TO COLLECT:
(a) Should the CONTRACTOR materially and substantially fail to collect and recycle, divert
by means of composting, mulching and/or transforming or dispose of Solid Waste in accordance with
this Agreement and the collection schedules then in effect pursuant to Section 8, the CITY, after prior
written notice of not less than forty eight (48) hours to the CONTRACTOR, may collect, recycle, divert
and/or dispose of all or any part of such Solid Waste, or initiate services to cause or promote its
collection, Recycling, Yard Waste Diversion and/or disposal, using CITY employees and/or
independent contractors, and the CONTRACTOR shall be liable for all reasonable expenses thereby
incurred by the CITY.
(b) The CITY may give such notice for any specified individual omission by CONTRACTOR
in which event CONTRACTOR shall be allowed a reasonable time of not less than forty eight (48)
hours to remedy such omission. In the event of substantial nonperformance by CONTRACTOR for
any reason, including a strike of CONTRACTOR's employees, the notice shall continue in effect with
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respect to Solid Waste originating thereafter as long as the omission continues. In addition to any other
lawful means of effecting reimbursement from the CONTRACTOR, such expenses may be deducted
by the CITY from money due or which may become due the CONTRACTOR. In addition, CITY shall
be permitted to take control and possession of the Licensed Equipment it owns pursuant to Section 11
herein and shall be allowed to use, without charge, any of CONTRACTOR's other collection vehicles,
containers, and other equipment not then in actual use by CONTRACTOR which CITY shall deem
necessary to provide collection, Recycling, Yard Waste Diversion and/or disposal services pursuant to
this section. The right of the CITY to enter upon and use facilities and equipment as specified herein
shall extend for a period of ninety (90) days.
( c) Should CONTRACTOR fail to collect, recycle, divert by means of composting, mulching
and/or transforming, and/or dispose of Solid Waste in accordance with this Agreement,
CONTRACTOR shall be deemed to be in material default in the performance of its obligations of this
Agreement. In the event of such a material default, the reasonable time for correction pursuant to
Section 35 herein shall be seven (7) days.
35. DEFAULT. DAMAGES AND TERMINATION OF AGREEMENT:
(a) In the event CONTRACTOR defaults in the performance of any of the obligations,
covenants or agreements to be kept, done or performed by it under the terms of this Agreement, or any
other applicable Federal, State, or local law or regulation, the CITY shall notify CONTRACTOR in
writing of the nature of such default.
(b) The Executive Director may, in such written instrument, set a reasonable time within which
correction of all such deficiencies is to be made. Unless otherwise specified, a reasonable time for
correction shall be thirty (30) days from the receipt by the CONTRACTOR of such written notice. If
the CONTRACTOR cannot reasonably correct or remedy the breach within the time set forth in such
notice, CONTRACTOR shall still be required to commence to correct or remedy the violation within
such time as set forth in the notice and shall be required to diligently achieve such correction or remedy
as soon thereafter as possible.
(c) The Executive Director shall review the CONTRACTOR's response to the notice of
deficiencies and shall either decide the matter and notify the CONTRACTOR of that decision in
writing, or, refer the matter to the City Council. A decision or order of the Executive Director shall be
final and binding on CONTRACTOR if the CONTRACTOR fails to file a "Notice of Appeal" with the
City Clerk within 10 days of receipt of the Executive Director's decision. Within thirty working days of
receipt of a Notice of Appeal, the City Clerk shall refer the appeal to the City Council for proceedings
in accordance with Chapter three ofthe Santa Ana Municipal Code.
(d) In such case, the City Council may set the matter for hearing. The City Clerk shall give
CONTRACTOR written notice of the time and place of the hearing. At the hearing, the City Council
shall consider the report of the Executive Director indicating the deficiencies, and shall give the
CONTRACTOR a reasonable opportunity to be heard.
(e) Based on the evidence presented at the public hearing, the City Council shall determine by
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Resolution whether this Agreement should be terminated. If, based upon the record, the City Council
determines that the performance of CONTRACTOR is in breach of any material term of this
Agreement or any material provision of any applicable Federal, State, or local statute or regulation, the
City Council, in the exercise of its sole discretion, may terminate forthwith the Agreement. The
decision of the City Council shall be final and conclusive. CONTRACTOR's performance under the
Agreement is not excused during the period of time prior to the City Council's final determination as to
whether such performance is deficient.
(f) The rights of termination or imposition of liquidated damages, as set forth in Section 36
hereof, are in addition to any other rights of CITY upon a failure of CONTRACTOR to perform its
obligations under this Agreement. The CITY further reserves the right to terminate CONTRACTOR's
Agreement or impose liquidated damages in the event of any ofthe following:
(1) If the CONTRACTOR practices, or attempts to practice, any fraud upon the CITY;
(2) If the CONTRACTOR becomes insolvent, unable, or unwilling to pay its debts, or
upon listing of an order for relief in favor of CONTRACTOR in a bankruptcy proceeding;
(3) If the CONTRACTOR fails to provide or maintain in full force and effect the
workers' compensation, liability or indemnification coverage as required by this Agreement;
(4) If the CONTRACTOR willfully violates any orders or rulings of any regulatory
body having jurisdiction over the CONTRACTOR relative to this Agreement, provided that the
CONTRACTOR may contest any such orders or rulings by appropriate proceedings conducted in good
faith, in which case no breach of this Agreement shall be deemed to have occurred;
(5) If the CONTRACTOR willfully fails to make any payments required under the
Agreement and/or refuses to provide the CITY with required information and/or reports in a timely
manner as provided in this Agreement; or,
(6) Any other act or omission by the CONTRACTOR which materially violates the
terms, conditions, or requirements of this Agreement, CIWMA, as it may be amended from time to
time, or any order, directive, rule, or regulation issued thereunder and which is not corrected or
remedied within the time set in the written notice ofthe violation.
(g) In addition to the remedies set forth herein, the CITY shall have the right to obtain damages
and/or injunctive relief. Both parties recognize and agree that in the event of a breach under the terms
of this Agreement by CONTRACTOR, the CITY may suffer irreparable injury and incalculable
damages sufficient to support injunctive relief, to enforce the provisions of this Agreement and to
enjoin the breach thereof.
(h) If CONTRACTOR claims default by the CITY in the payment of any money due or alleged
to be due to CONTRACTOR pursuant to this Agreement, CONTRACTOR shall not be entitled to
cancel this Agreement if the CITY, within seven (7) days after receipt of notice of the claimed default,
deposits the amount in controversy into an interest bearing account in a commercial bank or lending
institution and maintains such deposit until such time as a final judicial decision or agreement between
the parties determines the rightful disposition of the said amount in controversy; provided that
CONTRACTOR shall be deemed to have waived all claims to the said amount if no agreement is
reached nor any legal proceeding initiated within ninety (90) days of the CONTRACTOR's service of
written notice of default on the CITY.
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36. LIQUIDATED DAMAGES:
(a) The CITY finds, and the CONTRACTOR agrees, that as of the time of the execution ofthis
Agreement it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall
be incurred by the CITY as a result of a breach by CONTRACTOR of its obligations under this
Agreement. The factors relating to the impracticability of ascertaining damages include, but are not
limited to, the fact that: (i) substantial damage results to members of the public who are denied Solid
Waste collection services or denied quality or reliable collection service; (ii) such breaches cause
inconvenience, anxiety, frustration, and deprivation of the benefits of this Agreement to individual
members of the general public for whose benefit this Agreement exists, in subjective ways and in
varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that
the monetary loss resulting from denial of services or denial of quality or reliable services is impossible
to calculate in precise monetary terms; and, (iv) the termination of this Agreement for such breaches,
and other remedies are, at best, a means of future correction and not remedies which make the public
whole for past breaches.
(b) Accordingly, the CITY may, in its discretion but after complying with the notice and
hearing procedures set forth in Section 35, assess liquidated damages of Five Hundred Dollars
($500.00) per day, for each calendar day that collection service is not provided by CONTRACTOR in
accordance with this Agreement. The amount of the liquidated damages shall be subject to an annual
CPI adjustment computed at one hundred (100%) percent of the CPI for All Urban Consumers (base
years 1982-1984 = 100) for Los Angeles-Anaheim-Riverside CMSA, published by the United States
Department of Labor, Bureau of Labor Statistics.
(c) The CITY finds, and the CONTRACTOR acknowledges and agrees, that the above
described liquidated damages provisions represent a reasonable sum in light of all of the circumstances.
Said liquidated damages sums shall be applicable to each calendar day of delay during which
CONTRACTOR has been found by the CITY to be in default after having been given the proper notice
and hearing set forth in Section 35 of this Agreement. The CONTRACTOR shall pay any liquidated
damages assessed by the CITY within ten (10) calendar days after they are assessed. If they are not
paid within the ten (10) day period, the CITY may order the termination of this Agreement.
37. USE BY CITY OF CONTRACTOR'S EQUIPMENT:
Upon cancellation of this Agreement by either party for any reason prior to the end ofthe period
specified herein as the term of this Agreement, the CITY shall take possession and control of all
vehicles and equipment which it has licensed to CONTRACTOR pursuant to Section 11 herein and
CITY shall also have the exclusive right to rent or lease and operate any or all trucks, trailers, tractors
and other items of equipment used by CONTRACTOR in the performance of the work specified in this
Agreement. Further, the City shall have access to the MRF and compo sting facilities used by the
CONTRACTOR for the Processing, Recycling and Yard Waste Diversion of Solid Waste produced or
accumulated within the CITY. The right of the CITY to enter upon and use facilities and equipment as
specified herein shall extend following the date of cancellation of this Agreement for a period of ninety
(90) consecutive calendar days. The rental prices to be paid the CONTRACTOR under this section
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shall be such to adequately reflect the most current rental prices prevailing in the County of Orange at
the date of termination.
Any moneys due the CONTRACTOR for rental of the equipment under the provisions of this
section may be withheld by the CITY and used by it for the purpose of paying any outstanding liens or
payments due and unpaid upon the said equipment.
38. COMPLAINTS:
(a) The CITY shall record all complaints and communications received by the CITY from
persons and businesses being served under the provisions of this Agreement and all other incidents of
failure to perform in accordance with this Agreement noted by the CITY. The CONTRACTOR shall
be responsible to resolve such complaints within two (2) business days of receipt thereof.
CONTRACTOR shall likewise record all complaints received by CONTRACTOR in a daily log which
shall include the complaint, the communication, the date, time, complainant's name and address if
provided, and the nature, date and manner of resolution of the complaint. A copy of said log shall be
delivered to the Executive Director on a quarterly basis; however, the Executive Director reserves the
right to require the CONTRACTOR to deliver, or send via telephone facsimile, such records to the
Executive Director within twenty four (24) hours of receipt thereof.
(b) The failure of the CONTRACTOR to pick up Solid Waste which has been set out in the
proper manner shall be considered a missed pick-up, and the CONTRACTOR shall collect the material
from the service recipient within twenty-four (24) hours of the CONTRACTOR's receipt of notification
of the missed pick-up. If the CONTRACTOR is notified of a missed pick-up by 9:00 a.m. the
following business day, the missed pick-up will be collected that same day. The CONTRACTOR shall
maintain a written record of all calls related to missed pick-ups and the service response provided by
the CONTRACTOR. Such records shall be made available for inspection upon request by the
Executive Director.
39. COMPENSATION REDUCTION DURING STRIKE PERIOD:
In the event that there occurs any period in which CONTRACTOR fails to maintain
substantially complete regular collection services pursuant to this Agreement and the collection
schedules then in effect, by reason of a strike or CONTRACTOR's failure to pay his employees, and
only if such period includes more than ten (10) normal collection days (weekdays), then the following
shall apply.
(a) The City Council may assess damages against the CONTRACTOR in an amount which
does not exceed the sum of the following:
(1) The expenses incurred by the CITY in providing collection, Recycling, Yard Waste
Diversion and/or disposal services pursuant to Section 34; and,
(2) Fifty percent (50%) of the amount by which CITY revenue from fees collected for
curbside service by the CITY from the public is reduced due to any reduction or refund of such fees
granted by the City Council to compensate such fee payers for the inconvenience experienced by them
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due to CONTRACTOR's failure to furnish full performance during such period.
(b) In assessing damages, the City Council shall take into account the CONTRACTOR's efforts
to mitigate the inconvenience to the public receiving curbside service. In particular, CONTRACTOR
shall be given credit for Curbside Service Unit collections made by CONTRACTOR by having
damages assessed, subject to the above said maximum, in approximately the same proportion to the
compensation due CONTRACTOR for curbside service during the subject period as the number of
Curbside Service Unit collections which CONTRACTOR failed to make bears to the total number of
Curbside Service Unit collections which should have been made pursuant to this Agreement.
(c) In addition to any other lawful means of effecting recovery of the damages assessed against
CONTRACTOR the amount thereof may be deducted by CITY from money due or which may become
due to the CONTRACTOR either in single sum or in installments. In the event CONTRACTOR
objects to such assessment or set-off, it shall nevertheless maintain full performance under this
Agreement, reserving all rights to subsequently litigate the propriety or amount of the damages
assessed.
(d) Refunds or reduction of payments of CONTRACTOR's Customers shall be the sole
responsibility of CONTRACTOR. CONTRACTOR covenants for the benefit of each such Customer to
grant a reasonable and fair refund or reduction or compensatory service; provided, however, that the
CONTRACTOR may condition such refunds or reductions or compensatory ,service upon the
Customer's filing of a claim for the same with the CONTRACTOR. To the extent Bin or Roll-Off
Service collections are made at CITY'S expense in the absence of CONTRACTOR's performance,
CONTRACTOR shall be liable to CITY for a proportionate amount of the Customers' paymepts due to
the CONTRACTOR.
40. FEES AND GRATUITIES:
CONTRACTOR shall not, nor shall it permit any agent, employee or subcontractor employed
by it to, request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity
for the collection of Solid Waste otherwise required to be collected under this Agreement, except such
compensation as is provided for in this Agreement. However, CONTRACTOR may make available to
Bin Service users special services as provided for in Section 28 hereof. CONTRACTOR may make a
direct charge in each instance for such service under a written agreement which shall be subject to the
approval of the Executive Director and at such rates as are reasonable, just and uniform for all persons
requesting such additional services. All such charges shall be collected by CONTRACTOR. Nothing
in this section or in this Agreement shall be construed, however, to require CONTRACTOR to render
services of any kind to any person to the extent such services are not specifically required by the
provisions of this Agreement, or to require that CONTRACTOR having rendered special or additional
services not provided for herein to one or more persons, to offer or render the same services to any
other person or entity.
41. LEGAL RELATIONS AND RESPONSIBILITIES:
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(a) Applicable Laws: CONTRACTOR shall at all times comply with all applicable provisions
of the Code, as now in effect or hereafter enacted, as well as all other applicable County, State and
Federal laws and regulations; provided, however, no amendment of the Code shall operate to change
CONTRACTOR's right to decline to pick up and collect any material or matter which is not Solid
Waste as defined in this Agreement or to decline to pick up and collect Solid Waste which does not
comply with the standards and limitations set forth in this Agreement, or otherwise operate to
materially impair the rights and privileges of CONTRACTOR hereunder. Should any state or federal
laws become effective after the date of execution of this Agreement which require modifications to the
terms hereof, the parties agree to meet and confer regarding any such modifications.
(b) Personnel: No employee of CONTRACTOR shall continue to be employed on any work
under this Agreement who is intemperate, discourteous, disorderly, inefficient or unduly noisy.
(c) Permits and Licenses: CONTRACTOR shall obtain all permits and licenses required of it
by City, County, State and Federal agencies.
(d) Workers' Compensation Policy: CONTRACTOR shall maintain in full force and effect
during the term of this Agreement, a workers' compensation policy in accordance with the provisions
and requirements of the Labor Code of the State of California and such other forms of insurance as
shall be required by law. The policy providing coverage shall provide that the insurance shall not be
suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days prior
written notice by certified mail has been given to the CITY. Waivers of Subrogation shall be in effect
for any claims asserted against the CITY which arise out of CONTRACTOR's operations and
CONTRACTOR shall have this clause endorsed on their Workers' Compensation policies.
(e) Public Liability Insurance: CONTRACTOR shall obtain, at its sole cost, and file with the
City Clerk of CITY, prior to exercising any right or performing any obligation pursuant to this
Agreement, and maintain for the period covered by this Agreement, a policy or policies of liability
insurance satisfactory to the City Attorney of CITY, naming CITY, its officers, agents and employees,
as insured or additional insured, which provides coverage for liability for any and all claims and suits
for damages or injuries to persons or property resulting from or arising out of the performance by
CONTRACTOR its officers, agents, or employees, or by CITY, its officers, agents, or employees
pursuant to Section 1 of this Agreement, of CONTRACTOR's covenants hereunder, or any failure or
omission thereof.
Said policy or policies of insurance shall provide coverage for both bodily injury and property
damage in not less that the following minimum amount: One Hundred Million Dollars
($100,000,000.00) combined single limit and, in addition, Ten Million Dollars ($10,000,000.00) of
Environmental Impairment Liability coverage for bodily injury, property damage and cleanup costs as it
relates to the transportation of Solid Waste. Said insurance shall protect CONTRACTOR and CITY
from any claim for damages for bodily injury, including accidental death, as well as from any claim for
property damage which may arise from operations performed pursuant to this Agreement, whether such
operations be by CONTRACTOR itself, or by its agents, employees, and/or subcontractors. Such
policy or policies shall contain severability of interests clauses so that the rights and duties of the CITY
are clearly separate from CONTRACTOR's interests. Said policy or policies shall also contain a
30
25A-38
provision that no termination, cancellation or change of coverage of insured or additional insured shall
be effective until after thirty (30) days prior written notice by certified mail thereof has been given to
CITY. CONTRACTOR shall give CITY prompt and timely notice of any claim made or suit instituted.
(f) Insurance Responsibility for CITY Owned Solid Waste Collection and Recycling Vehicles:
This Agreement expressly and absolutely transfers the entire responsibility for any and all damage to
the CITY owned Solid Waste collection and Recycling vehicles, and any and all liability arising out of
the use of such vehicles, directly and completely to CONTRACTOR. This same transfer includes the
requirement that CONTRACTOR has expressly agreed to be contractually, fully and completely
responsible for complying with all of the State of California's Motor Vehicle Insurance laws, rules and
regulations. To be more specific, this includes having CONTRACTOR insure each and every CITY
Solid Waste collection and Recycling vehicle for auto liability and physical damage, including both
collision and comprehensive insurance. The amount of auto liability insurance shall be not less than
One Hundred Million Dollars ($100,000,000.00) combined single limit, covering auto bodily injury
and property damage for owned, non-owned and hired vehicles. Collision and Comprehensive
coverage shall be insured on an actual cash value basis. If the physical damage insurance is insured on
a loss-limit basis, the loss limit shall be equal to or exceed the actual cash value of all of the CITY
Solid Waste collection and Recycling vehicles. Insurers shall be currently rated by A.M. Best
Company with a minimum rating at A VIT. The policy or policies shall contain severability of interest
clauses so that the right and duties of the CITY are clearly separate from CONTRACTOR's interests.
The CITY, its officers, agents and employees shall be additional insureds. CONTRACTOR will verify
to CITY that adequate funds are available to pay any liability Self-Insured Retention, collision and
comprehensive deductibles, or other self-insurance plans approved by the CITY. Ninety (90) days or
more of prior notice for material change in coverage, exclusions and conditions or cancellation will be
endorsed onto CONTRACTOR's policies in favor of the CITY. Loss Payee endorsements or similar
clauses will be endorsed onto CONTRACTOR's property insurance policies protecting the CITY'S
Solid Waste collection and Recycling vehicles. Endorsements to all policies with policy declaration
pages will be required. Certificates of Insurance shall be provided prior to receiving insurer policy
endorsements.
(g) Indemnification: CONTRACTOR shall indemnify and save harmless CITY, its officers and
employees, against any and all damages to property or injuries to or death of any person or persons,
including property and employees or agents of CITY and shall defend, indemnify and save harmless
CITY, its officers and employees, from any and all claims, demands, suits, actions or proceeding of any
kind or nature, including, but not by way of limitation, workers' compensation claims, of or by anyone
whomsoever, directly or indirectly caused by, or arising out of a breach of a requirement of this
Agreement by the CONTRACTOR or any negligent or willful act or omission of CONTRACTOR or
any negligent or willful act or omission of the CONTRACTOR its employees or subcontractors in the
performance of this Agreement. CONTRACTOR shall procure and maintain, at its own cost and
expense, any additional kinds and amounts of insurance which, in its own judgment, may be necessary
for its proper protection in the performance of the work. Insurance coverage specified in this
Agreement shall in no way lessen or limit the terms of this indemnification.
(h) Enforcement of Scope of Services: CONTRACTOR shall reimburse the CITY for any
costs incurred by the CITY in enforcing and potentially defending any challenges by any and all school
31
25A-39
and college districts regarding the Solid Waste collection regulations contained herein.
(i) Waivers: No acquiescence, failure or neglect of either of the contracting parties to insist on
strict performance of any or all of the terms hereof shall be considered as or constitute a waiver or any
term or condition of this Agreement or any performance required thereunder, or any remedy, damage or
other liability arising out of such refusal, neglect or inability to perform at any time.
42. SUBCONTRACTORS AND MANAGEMENT:
(a) The CONTRACTOR shall not subcontract this Agreement nor any part hereof without first
obtaining the consent ofthe City Council.
(b) CONTRACTOR shall designate the person to be in charge of administering this
Agreement. The CITY retains the right to reject said person at any time during the term of this
Agreement upon reasonable grounds. Should the CITY require the replacement of any
person so designated by CONTRACTOR, the CONTRACTOR shall have thirty (30) days within
which to designate, with the CITY'S approval, a new person.
(c) The CITY may cancel this Agreement pursuant to Section 35 or in the event ofa breach of
the covenants in subsections (a) and (b) hereinabove.
43. ACCOUNTING AND AUDITING:
(a) The CONTRACTOR shall maintain financial records III accordance with generally
accepted accounting principles.
(b) CONTRACTOR shall make its records, reports, and methods of accounting available to the
CITY'S designated representative during normal business hours to allow the such person to review and
verify the information reported pursuant to this Agreement including, but not limited to, the
information reported pursuant to Section 16 hereof, the information reported pursuant to Sections 22
through 25 including, but not limited to, the tonnages reported therein, and the Gross Receipts reported
pursuant to Section 10 hereof.
( c) CITY shall make its billing records available to CONTRACTOR upon reasonable notice
for the purpose of auditing such records.
44. BOND:
The CONTRACTOR shall, prior to the initial date of the term of this Agreement, execute and
file with the City Clerk a surety bond in the penal sum of Two Million Dollars ($2,000,000.00)
conditioned upon the faithful performance of this Agreement by the CONTRACTOR and its
subcontractors, if any. Said bond may be written for a term of one year, and may thereafter be renewed
by certificate, provided however, that the CONTRACTOR agrees to maintain such bond or bonds in
force for the complete term of this Agreement.
32
25A-40
45. MEDIA RELATIONS:
The CONTRACTOR shall notify the CITY by facsimile of all requests for news media
interviews related to the CITY'S Solid Waste collection program within twenty-four (24) hours. Before
responding to any inquiries involving controversial issues, CONTRACTOR will discuss the proposed
response with the CITY. Copies of draft news releases or proposed trade journal articles shall be
submitted to CITY for prior review and approval at least two (2) working days in advance of release.
Copies of articles resulting from media interviews or news releases shall be provided to the CITY
within five (5) days after publication.
46. NOTICES:
Any notice required by this Agreement shall be sufficiently served if personally delivered or if
deposited into the U.S. Mail, postage prepaid, and if addressed as follows:
If served by CONTRACTOR upon CITY:
Executive Director of Public Works
Public Works Agency
City of Santa Ana
20 Civic Center Plaza M-21
Santa Ana, California 92701
If served by CITY upon CONTRACTOR:
David Ross
Senior District Manager
Waste Management
1800 South Grand
Santa Ana, California 92705
With a courtesy copy to:
West Group General Counsel
Waste Management, Inc
7025 N Scottsdale Road, Suite 200,
Scottsdale, AZ 85253
47. GENDER AND NUMBER:
As used herein, the masculine gender shall include the feminine and neuter, and the singular
shall include the plural.
48. VALIDITY:
33
25A-41
The invalidity in whole or in part of any provision of this Agreement shall not void or affect the
validity of the other provisions of this Agreement.
49. ASSIGNABILITY:
CONTRACTOR may not assign or transfer any rights, interests or duties or obligations of
performance under this Agreement, whether by assignment or novation, without the prior written
consent of the CITY; provided, however, that claims for money due or to become due to the CITY
under this Agreement may be assigned to a bank, trust company or other financial institution, or to a
trustee in bankruptcy, without such approval. This section shall not prohibit the assignment, merger or
transfer of any rights or interests herein to any other wholly owned subsidiary of Waste Management,
Inc. Notice of any assignment, merger or transfer shall be furnished to the CITY in writing within
seven (7) calendar days of such assignment, merger or transfer.
50. GOVERNINGLAW:
This Agreement shall be governed by and construed in accordance with the laws of the State of
California.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first
hereinabove written.
CITY OF SANTA ANA
ATTEST:
By:
DAVID N. REAM
City Manager
PATRICIA A. HEALY
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH W. FLETCHER
City Attorney
USA Waste of California, Inc.,
By:
Title:
JAMES G. ROSS
Executive Director, Public Works Agency
34
25A-42
EXHIBIT" A"
The Licensed Equipment
DESCRIPTION
QUANTITY
Volvo FE42T, Class 7 Tractor
23
Rei1 Rapid Rail 32 Cubic Yard Trailer with
Automated Lifting Arm and Packer
23
Volvo WX64 Chassis
2
Rei1 Ra1f-Pak Front Loading Body
2
Residential Wheeled Carts Per the Attached
Specifications
120,000
25A-43
SPECIFICATIONS
Solid Waste collection and Recycling plastic carts ("carts") for curbside service, City of Santa Ana,
California
Description
Size A: 35 gallon
Depth: 23.75 inches maximum (including handles)
Width: 19 inches maximum
Height: 35 inches maximum (to body rim)
Size B: 64 gallon
Depth: 27 inches maximum (including handles)
Width: 24 inches maximum
Height: 39 inches maximum (to body rim)
Size C: 96 gallon
Depth: 34.5 inches maximum (including handles)
Width: 26 inches maximum
Height: 43 inches maximum (to body rim)
All three sizes must be available in green, grey and burgundy.
Technical Requirements
1. Body: Carts shall be injection molded of virgin high density polyethylene plastic. The body
of the cart shall be molded to present a smooth interior and exterior surface. The body ofthe
carts shall have a minimum wear strip under the floor of 12 inch (protecting the floor from
abrasive contact with the street surface).
2. Material: Recyclable polyethylene, UL. approved with a rating ofHB or better.
Average Wall Thickness:
Size A:
Size B:
Size C:
Not less than .140 inch
Not less than .160 inch
Not less than .165 inch
Carts shall be suitable for use in temperature of >1200 F to -20OP. All plastic and
component parts used in the construction of the carts shall be recyclable into other
polyethylene products. Crosslink resin is not acceptable. All carts shall be manufactured
with a minimum of20% post consumer recycle content.
Carts shall be manufactured with a UV stabilizer. The UV stabilizer shall be added in the
solution during the polymerization, prior to pelletizing, compounding and molding.
Independent laboratory tests of the carts bid must accompany bid samples certifying
compliance as specified in part 2 of the detailed specifications.
25A-44
3. Wheels: Two (2) wheels with self-lubricating bearings with a minimum load rating of 120
lbs. per wheel. Wheels shall be attached to the axle via a tamper resistant snap-on method
which contains no metal components. No cotter pins, "Pal nuts" or similar restraining
devices shall be utilized to attach the wheel. All wheels shall be 1.75 inches wide. Wheels
shall be easily removed for replacement with a non-commercially available tool.
Wheel Sizes: Size A:
Size B:
Size C:
8 inches
10 inches
12 inches
4. Axles: Axles shall be solid steel and electro-plated with black zinc for durability and long
life. Carts should be designed in such a way as to prevent the axle from popping out. An
axle, which is only press fitted and not secured in some additional manner will not be
acceptable.
Axle Sizes: Size A:
Size B:
Size C:
5/8 inch
6/8 inch
718 inch
5. Lids: Lids shall be molded of the same material as the cart body and shall be permanently
attached to the cart body with plastic hinge(s). Metal fasteners are not acceptable. Lids
shall be watertight and slightly domed to facilitate run-off of rainwater. The lid shall be
designed to fold over parallel to the back side of the cart when fully opened. Lids shall be
factory assembled.
6. Locking Bar: The semi-automated lifting area shall be integrally molded with the body of
the cart. The locking bar shall be able to rotate a full three-hundred sixty (360) degrees and
shall be constructed of zinc-coated steel to prevent rust and corrosion. Plastic locking bars
are unacceptable.
7. Certification by a certified independent laboratory shall be required of the following
minimum standards and quality assurance measurements:
7.1 Drop Impact Test - material and weight shall be cold soaked at a temperature of not
less than _200 F for 24 hours and dropped within 60 seconds of leaving the cold
chamber. Carts shall remain watertight after a minimum drop height of 15 feet.
Test loads are as follows:
Size A:
Size B:
Size C:
120 lbs. distributed
160 lbs. distributed
180 lbs. distributed
25A-45
7.2 Lift and Dump Test - shall verify the cart's compatibility with approved,
commercially available, standard dumping equipment. Test shall be performed at
room temperature with a cycle time that simulates lift, dump and return of 6
seconds. Carts shall remain watertight and functional beyond 6,000 cycles. Test
loads are as follows:
Size A:
Size B:
Size C:
160 lbs. distributed
250 lbs. distributed
350 lbs. distributed
7.3 Wheel! Axle Test - shall verify the combined durability of the wheels, axle and cart
axle supports under fully loaded conditions. The two cycle tests shall be performed
at room temperature as follows:
Cycle 1 - with a rolling length of 75 feet and a 5" curb drop. Cart shall continue to
roll freely and be watertight after 1,000 drops.
Cycle 2 - repeated with a 5.5" stair drop. Cart shall continue to roll freely and be
watertight after 1,000 drops.
Test loads shall be as follows:
Size A:
Size B:
Size C:
125 lbs. distributed
200 lbs. distributed
350 lbs. distributed
7.4 Salt Spray - ASTM B 117 -90 corrosion tests shall be applied to the lift bracket for a
minimum of 96 hours and to the axle for a minimum of 500 hours. Bracket and axle
shall remain corrosion free.
8. Serial NumberlManufacture Date: Each cart shall be hot stamped with a seven digit, 1-W'
high alpha/numeric identification number on the front ofthe cart. An in-molded year/month
date wheel identification will be located on the bottom ofthe cart.
9. Markings: Each cart lid shall be clearly and permanently marked with the cart's size or
volume capacity.
9.1 Precautionary instructions shall be molded into the lids in English and Spanish as
follows:
Size A:
Cart Capacity 35 Gallons
Do not overload or you may have difficulty controlling the cart.
Do not roll cart with lid open.
Do not put sand, soil, rocks or concrete in cart.
Maximum load 125 pounds.
Do not put anything hot such as ashes in the cart.
25A-46
Size B:
Size C:
Do not put paints, solvents, gasoline, oil, etc. in cart.
Cart Capacity 64 Gallons.
Do not overload or you may have difficulty controlling the cart.
Do not roll cart with lid open.
Do not put sand, soil, rocks or concrete in cart.
Maximum load 200 pounds.
Do not put anything hot such as ashes in the cart.
Do not put paints, solvents, gasoline, oil, etc. in cart.
Cart Capacity 96 Gallons.
Do not overload or you may have difficulty controlling the cart.
Do not roll cart with lid open.
Do not put sand, soil, rocks or concrete in cart.
Maximum load 250 pounds.
Do not put anything hot such as ashes in the cart.
Do not put paints, solvents, gasoline, oil, etc. in cart.
9.2 The hot stamp text area size shall be as follows:
Size A:
Size B:
Size C:
2Yz" x 14"
3Yz" x 18"
4Yz" x 19"
10. References: Each bid shall include references of communities which have purchased like
sizes and quantities of carts. For each reference, carts shall currently be in service for a
minimum of 2 years.
11. Warranty: Each cart must be covered by a minimum 10 year warranty against materials and
manufacturing defects. The first five years (1 through 5) shall be with full warranty; years 6
through 10 shall be prorated.
25A-47
EXHIBIT "C"
Rates
Effective July 1, 2005
1. CURBSIDE SERVICE
Subject to the provisions of this Agreement, the City shall collect the rate of $14.93 on
behalf of the Contractor for curbside service. This rate represents the CONTRACTOR's
rate of $12.14, the City's administrative cost of $2.48, and the NPDES cost of $.31 per
curbside service unit. The City shall collect the rate of $13.18 on behalf of the
CONTRACTOR for all qualifying senior citizen and mobile park curbside service units.
This rate represents the CONTRACTOR's rate of $12.14, the City's administrative cost of
$0.73, and the NPDES cost of $.31 per curbside service unit. The City shall be permitted to
retain its administrative and NPDES costs. Rates for each additional solid waste collection
and recycling plastic cart shall be no greater than $2.00 per month.
2. RESIDENTIAL BIN SERVICE RATES
Subject to the provisions of this Agreement, the CONTRACTOR may charge no more than
the following rates for Residential Bin Service:
1 YARD BIN X l/WEEK
1 YARD BIN X 2/WEEK
1 YARD BIN X 3/WEEK
1 YARD BIN X 4/WEEK
1 YARD BIN X 5/WEEK
1 YARD BIN X 6/WEEK
Monthlv Rate
$73.04
$131.11
$189.15
$247.25
$305.26
$378.34
2 YARD BIN X l/WEEK
2 YARD BIN X 2/WEEK
2 YARD BIN X 3/WEEK
2 YARD BIN X 4/WEEK
2 YARD BIN X 5/WEEK
2 YARD BIN X 6/WEEK
$78.70
$142.44
$206.17
$269.89
$333.63
$397.34
3 YARD BIN X l/WEEK
3 YARD BIN X 2/WEEK
3 YARD BIN X 3/WEEK
3 YARD BIN X 4/WEEK
3 YARD BIN X 5/WEEK
3 YARD BIN X 6/WEEK
$114.30
$198.69
$283.00
$367.45
$451.81
$573.62
4 YARD BIN X 1/WEEK
4 YARD BIN X 2/WEEK
4 YARD BIN X 3/WEEK
4 YARD BIN X 4/WEEK
$134.95
$232.49
$330.01
$427.57
25A-48
4 YARD BIN X 5/WEEK
4 YARD BIN X 6/WEEK
$525.06
$674.94
CONTRACTOR may offer a discount in the Residential Bin rates to a Residential Bin
Service Customer if said Customer regularly segregates Recyclable Solid Waste and/or
Yard Waste by Waste Type in separate bins.
3. COMMERCIALIINDUSTRIAL BIN
Subject to the provisions of this Agreement, the CONTRACTOR may charge no more than
the following rates for CommerciallIndustrial Bin Service:
Monthlv Rate
1 YARD BIN Xl/WEEK
1 YARD BIN X 2/WEEK
1 YARD BIN X 3/WEEK
1 YARD BIN X 4/WEEK
1 YARD BIN X 5/WEEK
1 YARD BIN X 6/WEEK
$58.33
$101.64
$145.01
$188.42
$231.74
$290.05
2 YARD BIN X l/WEEK
2 YARD BIN X 2/WEEK
2 YARD BIN X 3/WEEK
2 YARD BIN X 4/WEEK
2 YARD BIN X 5/WEEK
2 YARD BIN X 6/WEEK
$64.23
$113.55
$162.82
$212.07
$261.36
$333.06
3 YARD BIN X l/WEEK
3 YARD BIN X 2/WEEK
3 YARD BIN X 3/WEEK
3 YARD BIN X 4/WEEK
3 YARD BIN X 5/WEEK
3 YARD BIN X 6/WEEK
$92.62
$170.32
$247.96
$325.61
$403.25
$518.29
4 YARD BIN X l/WEEK
4 YARD BIN X 2/WEEK
4 YARD BIN X 3/WEEK
4 YARD BIN X 4/WEEK
4 YARD BIN X 5/WEEK
4 YARD BIN X 6/WEEK
$121.04
$219.55
$318.11
$416.71
$515.26
$666.18
CONTRACTOR may offer a discount in the commercial/industrial bin rates to a
Commercial/Industrial Bin Service Customer if said Customer regularly segregates
Recyclable Solid Waste and/or Yard Waste by Waste Type in separate bins.
25A-49
4. ROLL-OFF SERVICE RATES
Subject to the provisions of this Agreement, the CONTRACTOR may charge no more than
the following rates for Roll-Off Services:
Container Size
Haul Rate
Additional Fee for Compactor
10 Cubic yard
20 Cubic yard
40 Cubic yard
$179.00
$179.00
$179.00
$37.29
$37.29
$37.29
In addition to the Roll-Off Service rates set forth above, CONTRACTOR may charge the
Roll-Off Service Customer for the actual Gate Fees paid at the Disposal Site or fees charged
at the Materials Recovery Facility.
5. SPECIAL BIN SERVICE RATES
Subject to the provisions of this Agreement, the CONTRACTOR may charge no more than
the following rates for Special Bin Services:
(A) A bin which needs to be moved in excess of twenty-five (25) feet in order to be
emptied may be assessed no more than the following fees:
(1) Moving of bins 25 to 50 feet: $1.00 per month times the number of times
emptied each week.
(2) Moving of bins 51 to 75 feet: $2.00 per month times the number of times
emptied each week.
(B) A bin which possesses casters may be assessed a caster charge of no more than
$2.50 per bin per month.
(C) CONTRACTOR may apply a surcharge to bin Customers who use trash compactors
of not to exceed a multiplier of 1.5 times the normal bin rate for said service.
(D) CONTRACTOR may charge a special service charge of no more than $2.00 a
month times the number of times a week a bin is emptied for moving a bin out of an
enclosure.
(E) CONTRACTOR may charge a fee of no more than $54.83 per bin for an additional
bin pickup when such pickup is requested by a Customer.
(F) CONTRACTOR may charge a fee of no more than $2.00 per month to a Customer
who requests a bin with a lock.
25A-50
(G) CONTRACTOR may charge a reasonable fee for six (6) cubic yard Bin Service.
(H) CONTRACTOR may charge a reasonable fee for a plastic injection molded two (2)
cubic yard container.
(I) CONTRACTOR may charge a fee of no more than $61.82 per bin to persons who
need temporary use of a three (3) cubic yard bin.
(J) CONTRACTOR may charge a reasonable fee for collection of Solid Waste on
difficult to service streets.
(K) CONTRACTOR may charge a fee of no more than $30.00 per occurrence for
overflowing bins.
6. EMERGENCY SERVICES
(A) The rate per vehicle hour with a two (2) person crew providing emergency Roll-Off
Service on an on-call basis shall be no more than sixty dollars ($60.00) for the term
of this Agreement.
(B) The rate per vehicle hour with a two (2) person crew providing emergency Bin
Services on an on-call basis shall be no more than sixty five dollars ($65.00) for the
term of this Agreement.
25A-51
WASTE MANAGEMENT HOLDINGS INC. (WMH) GUARANTEE
Name of Underlying Contract: Third Amended and Restated Agreement for Collection and
Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana
Date of Underlying Contract: June 19, 1997
Beneficiary: CITY OF SANTA ANA, a municipal corporation of the State of California
Address:
20 Civic Center Plaza, Santa Ana, CA 92701
WMH Contracting Company: USA Waste of California, Inc., a Delaware corporation
TO THE BENEFICIARY IDENTIFIED ABOVE:
With respect to that certain underlying contract identified above (hereinafter the
"Agreement") dated as of the above specified date by and between the WMH Contracting Company
identified above (the "Contractor") and the beneficiary identified above (the "Beneficiary"), and
subject to the terms of this letter agreement (the "Guarantee"), Waste Management Holdings Inc., a
Delaware corporation (hereinafter "WMH"), hereby irrevocably and unconditionally guarantees to
the Beneficiary the performance of all obligations and the due and punctual payment of all amounts
payable by the Contractor to the Beneficiary under the Agreement when the same shall become due
and payable in accordance with the terms of the Agreement. Upon failure of the Contractor
punctually to perform or pay any such amounts, and upon written demand by the Beneficiary to
WMH at its address set forth below (or to such other address or person as WMH may specify in
writing), WMH agrees to perform or cause to be performed and to payor cause to be paid such
amounts.
Notwithstanding the foregoing, WMH's obligations hereunder as to any claim, suit,
proceeding, event or other matter in respect of which the Beneficiary at any time shall be seeking
payment hereunder (referred to herein as "Guarantee Events") shall be subject to the preconditions
that (i) the Beneficiary shall have given written notice of such Guarantee Event to the Contractor
promptly after learning thereof, (ii) in the case of any failure by the Contractor to perform any
obligation under the Agreement, shall have afforded WMH a reasonable opportunity to cure such
failure, and (iii) there shall not have occurred and be continuing any material breach by the
Beneficiary of its obligations under the Agreement.
WMH hereby agrees that, except as expressly provided herein, its obligations hereunder
will be unconditional and will not be discharged except by complete payment or other lawful
discharge (other than by operation of Bankruptcy law) of the amounts due under the Agreement,
irrespective of any claim as to the lack of authority of the Contractor to execute or deliver the
Agreement, the absence of any action to enforce the Agreement, the failure to obtain any judgment
against the Contractor, the failure to commence any action to enforce a judgment against the
Contractor under the Agreement or any similar circumstance which might otherwise constitute a
legal or equitable discharge or defense of a guarantor generally.
25A-52
Except as set forth above, WMH hereby waives diligence, presentment, demand on the
Contractor for payment, filing of claims, requirement of a prior proceeding against the Contractor
and protest or notice, except as provided for in the Agreement with respect to amounts payable by
the Contractor. If at any time payment under the Agreement is rescinded or must be otherwise
restored or returned by the Beneficiary upon the insolvency, bankruptcy, or reorganization of the
Contractor or WMH or otherwise, WMH's obligations hereunder with respect to such payment shall
be reinstated upon such restoration or return being made by the Beneficiary.
WMH represents the Beneficiary as of the date hereof that:
(1) it is duly organized and validly existing under the laws of the jurisdiction of its
incorporation and has full corporate power and legal right to execute and deliver this Guarantee and
to perform the provisions of this Guarantee on its part to be performed;
(2) its execution, delivery, and performance of this Guarantee have been and remain
duly authorized by all necessary corporate action and do not contravene any provision of its
certificate of incorporation or by-laws or any law, regulation, or contractual restriction binding on it
or its assets; and
(3) this Guarantee is its legal, valid and binding obligation enforceable against it in
accordance with its terms except as enforcement hereof may be limited by applicable bankruptcy,
insolvency, reorganization, or other similar laws affecting the enforcement of creditors' rights or by
general equity principles.
By accepting this Guarantee and entering into the Agreement, the Beneficiary agrees that
WMH shall be subrogated to rights of the Beneficiary against the Contractor in respect of any
amounts paid by WMHA pursuant to the Guarantee.
WMH acknowledges that the Contractor is a direct or indirect subsidiary of WMH and that
WMH will receive substantial benefit from the performance ofthe Agreement.
Neither this Guarantee nor the Agreement may be amended without the advance written
consent of WMH and the Beneficiary. No amendment shall be effective unless set forth in a
written instrument so executed.
If WMH shall default in the performance of its obligations hereunder, WMH shall pay to
the Beneficiary all costs incurred by the Beneficiary in enforcing its rights hereunder against WMH,
including reasonable attorney fees and court costs.
Any notice or other communication required or permitted by the terms hereof shall be in
writing and shall be given in a commercially reasonable manner to WMH at 1001 Fannin, 40th
Floor, Houston TX 77002, Attention: General Counsel, or to such other address as WMH shall
specify in writing to the Beneficiary at its above-specified address or such other address as the
Beneficiary shall notify to WMH as provided herein.
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This Guarantee shall be governed by and construed in accordance with the internal laws of
the State of Illinois applicable to contracts made to be performed therein.
The Beneficiary's receipt and acceptance of this Guarantee shall constitute the Beneficiary's
acceptance of and agreement to each and every term hereof.
WASTE MANAGEMENT HOLDINGS, INe. RECENED AND ACCEPTED:
(Beneficiary)
By:
By:
Its:
Its:
25A-54