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HomeMy WebLinkAbout FULL PACKET_2006-02-06REQUEST FOR COUNCIL ACTIONS-`~' ~duwuo~ ~sr CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: QUARTERLY REPORT OF INVESTMENT3 AS OF DECEMBER 31, 2005 ".`~~ ~t~~~~. CITY MANAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 151 Reading ^ Ordinance on 2ntl Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER In 1995, the State of California enacted legislation revising the reporting requirements relative to investment of funds by governmental agencies. These requirements, which became effective on January 1, 1996, mandate that a statement outlining the ability of both the City and the Redevelopment Agency to meet the budgeted expenditures for the subsequent six months be submitted to the City Council on a quarterly basis. The legislation dictates that this quarterly report contain the following seven major elements: - Type of investments; - Date of maturity; - Par and dollar amounts invested in each security; - Weighted average maturity of the investments; - Market value as of the date of the report; - Source of the market value information; and - Any funds, investments or programs, including loans, under the management of contracted parties. The Finance and Management Services Executive Director has historically prepared a monthly report of investments. This office will continue to provide this information monthly; however, a quarterly report of investments will be presented at a regular council meeting. In compliance with State law and the City's Investment Policy, the attached report (Exhibit 1) accurately reflects all pooled investments held on behalf of the City and Redevelopment Agency as of December 31, 2005. 19A-1 Quarterly Report Of Investments As Of December 31, 2005 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. ~t~~r_~r ~, '~s.a~o Francisco Gutierrez Executive Director Finance & Management Services Agency 19A-2 d C ~ f0 O Q d ~ N r N ~ ~ ~ O ~ O .~ O E v oa°o a (J m h N N O IN m O m O N If1 r M V Q N ~ S ~' I` "' M ~ n l a N « of o E N ' v e- N O S I e d~ fp pJ M r O O N w O N CI i O O d Y d o_J 0 d 1 °o, e n e n o N M M N b ~ r m ~ of m ~ ~o .- ~ ~O N O h O M ~ d i. 3 ' ~1 ~ a a~ c d r O O CN') O eF' ~ ~ N T V t7 F. 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C C ro ~ N ~ d U ~i a Z d m Y !m d 6 O ~ Y T O ~ C $ y O F g N h N N .~ y m m c a C Ol 7 N i Qi~ ~e ri n M Q Q Q ° ~~ I°a ri ei ri K ~ Y a m O N ~ y d T Q N 4 0 9 a L ~ N A r O y a E ~ N ELI y Y C 9 Y r N f a m T R N d a ~ E 0 U N F o Y d 3 r a Z Y fd ~ g N d T o N C y O M g w H O a W D h 0 N a Q Z N hi 7 N N .~~ OIO ~ ~ rn m OIO m m o m N d O Q C N C LL E N U r d F c a °' E ° O U Y N ~ o w ~ m w T Q z R1 ~ y g o V ~ O y N m t ~ 0 ~ ~ !T/1 ~~nq~S ~ m 7 °- ° o O ~ n C E~ o h a 0 ai 0 0 0 ¢' v W a ~"' N 7 0. r m Z H ~ ~ ~ O J h N = L M N a ~ E aEi ~ U N y W > ~ N_ ~ a U 0 r~ N j A A ^g ~. b _ q 7 Q N ~ ~ Y$ " F O 1 N C H W N i ~ U a Y i v I a a Y m e l a I m 0 0 0 i °o m m_ m N ~t m p? ~ N d ~ d m W O N y ~ j O Q Q a A .a c a c A N 9 i c a a E 7 y N y c a G LL e F m E ~' m T Q ~ N E U ~ N 9 c v ~ c ~ LL i . .. ~ ~ , i~ ~ ~ ' ' i i I f , w m w A O N F O N N d y 7 O 4 Q a a O 9 a 9 'O O C C ~ q ~ A ~ rv o y S « E a N N c ~ o ~ f j a r m ~ d v r ~ rn ~ ~ O °~ ~ m m LL M n 3 ~ o K N U T C N r Z7 C ~ ~ H U o 0 ~ Q n ~ ~ > O a t O p r E ~ o y a 0 d O ~ ~ ~ ~ m d E ro Q a w b 3 ~ ~ S ~ '° U 7 `w K R ~ m ~ N ° c °~ ~ U N 3 2 H ~ u .3 j ~ j a Y a G 3 Cl a a ~ a ~ ui N rn $ m °m U 7 ai Y N ~ o m C N > ei ~; > g o ~~ 0 v ~ j ~ u r O> ~ N N ~ ~ g h w _~ N F Lr h ~' REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT RENEWAL FOR CHEMICALS - SOIL, PLANT, AND WATER TREATMENT (SPEC. NO. 02-128) ~~ n ~r.,~,~r ___ CLERK OF COUNCIL USE ONLY: CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Renew the contract with Western Farm Service for soil, plant and water treatment chemicals for a one-year period in the annual amount not to exceed $30,000. DISCUSSION The Parks, Recreation and Community Services Agency requires herbicides and pesticides to control and eradicate weeds and insects in the City's parks. Chemicals are also required to maintain the various public swimming pools and water fountains throughout the City. In addition, the Public Works Agency uses chemicals to control the growth of algae in the City's sewer system and water wells. The chemicals are purchased through the Central Stores warehouse for distribution to the agencies. The contracts for chemicals are designed to provide quality products at significant savings based on quantity pricing. On January 6, 2003, the City Council awarded a contract to Western Farm Service, a Santa Ana vendor, for a two-year period with provision for two one-year renewals. The vendor has agreed to renew the contract; however, the vendor has requested a five percent increase due to increases from the chemical manufacturers. The vendor has performed satisfactorily during the past contract period and staff recommends the final renewal of the contract. FISCAL IMPACT Funds are available in the various Supplies accounts (object code 6391). 4 `-~`~ ~ ilr ate- ~ ~~Q Francisco Gutierre z Executive Director departmental Other Materials & Finance and Management Services~Ltep`=va,~ FG/WO/02-128R.2 :uc 1 ZA ?~ 22A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: ~~ c~enw,wi~on ir' _. lll~ll CLERK OF COUNCIL USE ONLY: CONTRACT RENEWAL FOR HAZARDOUS WASTE DISPOSAL SERVICES (SPEC. NO. 02-135) CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Renew the contract with Environmental Recovery Services, Inc. for hazardous waste disposal services for a one-year period in the annual amount not to exceed $40,000. DISCUSSION During operations where materials such as paint, fuel, and solvents are used, hazardous waste material is generated. The waste materials are then processed through Central Stores for pick up at the Corporate Yard. Compliance with Environmental Protection Agency regulations require that an authorized hazardous waste disposal service be used to transport the hazardous materials to a lawfully authorized disposal, treatment, or storage facility within 90 days. On December 2, 2002, the City Council awarded a contract to Environmental Recovery Services, Inc. for a two-year period with provision for two one- year renewals. The vendor has performed satisfactorily during the past contract period and has agreed to renew the contract without an increase in pricing. Staff recommends the final renewal of the contract. FISCAL IMPACT Funds are available in the Roadway Marking & Signs, Parking Meter Fund, and Building Maintenance Other Contractual Services accounts (account nos. 11-623-6291, 027-013-6291, and 73-105-6291). ,.~a Francisco Gutierrez Executive Director Finance & Management Services A47eZ7~CQy,I FG/WO/02-135R.2:uc L L LJ~ 1 22B-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT RENEWAL FOR ANIMAL FOfSD (SPEC. NO. 02-159) rT7~ll ~'!j 1F nu.,wiiou ,y> -,,~' CLERK OF COUNCIL USE ONLY: `~ (~`~ ~ . CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinanc;e on 2nd Readiny ^ Implementing Resolution ^ Set Public Hearing For._ _ CONTINUED TO __ _______ FILE NUMB ER Renew the contract with Family Tree Produce for a one-year period in the annual amount not to exceed $25,000. DISCUSSION Various types of animal food are required for the Santa Ana Zoo at Prentice Park. The contract for animal food is designed to provide quality products at significant savings based on quantity pricing. On January 21, 2003, the City Council awarded a contract to Family Tree Produce for a two-year period with provision for two one-year renewals. The vendor has performed satisfactorily during the past contract period and has agreed to renew the contract without an increase in pricing. Staff recommends the final renewal of the contract. ISCAL IMPACT Funds for the first six months are budgeted and available in the FY 2005-2006 Recreation & Community Services Santa Ana Zoo Animal Food & Supplies account (account no. 11-247-6392). Funds for the duration of the contract period will be included in the proposed budget for FY 2006-2007. APPROVED AS TO FUNDS AND ACCOUNTS: Gerardo Mou t ~a'Francisco Gutierrez Executive Director Executive Director Parks, Rec. & Comm. Svcs. Agency Finance & Mgmt. Services Agency GM/WO/02-159R.S:uc ~ ~ " ~~ 22C-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: ~~ ---- CLERK OF COUNCIL USE ONLY: February 6, 2006 TITLE: APPROVED ^ As Recommended CONTRACTS RENEWAL FOR ^ As Amended LOCKSMITH SERVICES ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading (SPEC. NO. 03-095) ^ Implementing Resolution ^ Set Public Hearing For /~d/'-'~. l'i'. L'k ` CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Renew the contracts for locksmith services for a one-year period in the annual amounts as follow: Vendor: Amount: Civic Center Lock and Safe $30,000 Hill's Bros. Lock & Safe, Inc. $30,000 DISCUSSION The City establishes an annual blanket order list consisting of vendors that provide supplies and services that are required by agencies on a consistent basis. Locksmith services are required at times by all City departments for the purposes of replacing and repairing locks, creating new vehicle keys, and changing safe combinations. On December 15, 2003, the City Council awarded Center Lock and Safe and Hill's Bros. Lock & Safe, period with provision for two one-year renewals. performed satisfactorily during the past contra agreed to renew the contracts without an increase recommends the first renewal of the contracts. contracts to Civic Inc. for a two-year The vendors have ~t period and have in pricing. Staff 22D-1 ~%~ Contracts Renewal for Locksmith Services (SPEC. NO. 03-095) February 6, 2006 Page 2 FISCAL IMPACT Funds are available in the various departmental Maintenance & Repair of Buildings & Grounds accounts (object code 6261). APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance and Management Services Agency ~- FG/BP/03-095R.2:uc 22D-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR DVD/CD INSPECTION AND REPAIR SYSTEM (SPEC. NO. 05-111) ~n~l a~~~~,o„ s~. ~~ CLERK OF COUNCIL USE ONLY: `~, ~ ~ ~ ~~~~ CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For_,_ CONTINUED TO FILE NUMBER Award a contract to Research Technology International for a DVD/CD inspection and repair system in the amount not to exceed $10,000. DISCUSSION The Santa Ana Public Library presently holds over $70,000 worth of materials on DVD (Digital Video Disk) and CD (Compact Disk). As publishers cease producing outdated media such as videotape and audiocassette tapes, more funds will be expended on DVD and CD materials. Although CDs and DVDs have many advantages over older media, they are considerably more fragile than earlier formats. Both media scratch easily and fail to play if they are soiled. The library requires a mechanism to check returned audiovisual products for damage and to repair any damage discovered. The system will inspect all DVD and CD materials for damage at the time they are returned to the library, clean or repair the materials as needed, and provide statistical reports on the type and quantity o£ disks repaired. The notice inviting bids was advertised on October 28 and 31, 2005, and bids were solicited. A summary of the bid invitations and bids received is as follows: 6 Invitations For Bid mailed 3 Bids received 22E-1 Contract Award For DVD/CD Inspection and Repair System (Spec. No. OS-111) February 6, 2006 Page 2 Bids were received and opened on November 10, 2005 (Exhibit 1) The bid received from Research Technology International is responsive to the specification. FISCAL IMPACT Funds are available in the Library Adult Services, Youth Services, and Technology & Support Services Materials & Supplies accounts (account nos. 11-212-6641, 11-213-6641, and 11-216-6641). APPROVED AS TO FUNDS AND ACCOUNTS: ~,' J o ichard Library Director ~l~h'~t~ ~ nt° \ 1 d ~~,sg ~~;~~ Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency~:- RR/BP/OS-111.4:uc 22E-2 ABSTRACT OF BIDS CONTRACT AWARD FOR DVD/CD INSPECTION AND REPAIR SYSTEM (SPEC. 05-111) Vendor Location DVD/CD Inspection System DVD/CD Repair System Research Technology International Lincolnwood, IL $ 2,450.00 $ 6,545.00 $ 697.12 $ 9,692.12 Disc Go Technologies Langley, BC Canada No Bid Non- Responsive $ - GTM Video, Inc. Van Nuys No Bid Non- Responsive $ - Tax Total Cost 22E-3 ~~ 22E-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR HALE-TON HYBRID TRUCK (SPEC. NO. 05-114) (~~`~ / CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to Maurice J. Sopp & Son for the purchase of a half- ton hybrid truck in the amount of $25,062.65. DISCUSSION The Public Works Agency's Water Resources Division maintains over 15,000 water main and hydrant valves as well as 450 miles of sewer lines. Water Maintenance supervisors require city vehicles for transportation to various job sites throughout the city. The contract will provide a vehicle for the supervisors to inspect job sites and transport equipment such as sand bags, barricades and tools for emergency use. The notice inviting bids was advertised on November 4 and 7, 2005, and bids were solicited after new specifications issued for a hybrid truck. A summary of the bid invitations and bids received is as follows: 11 Invitations For Bid mailed 1 Invitation For Bid mailed to Santa Ana vendors 7 Bids received Bids were received, opened on January 11, 2006, and evaluated (Exhibit 1) . The bid received from Maurice J. Sopp & Son is responsive to the specifications and meets the City's requirements. The purchase conforms with the criteria established for the acquisition of hybrid vehicles. 22F-1 Contract Award for Half-Ton Hybrid Truck (Spec. No. 05-114) February 6, 2006 Page 2 FISCAL IMPACT Funds are available in the Water System Maintenance Machinery & Equipment account (account no. 64-575-6641). APPROVED AS TO FUNDS AND ACCOUNTS: G1 es G. Ross cutive Director lic Work Agency Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency/,- JGR/KM/05-114.9:uc 22F-2 ABSTRACT OF BIDS CONTRACT AWARD 1/2-TON HYBRID TRUCK (SPEC. OS-114) VENDOR MAURICE SOPP GEORGE LAKE VICTOR SELMAN & SON CHEVROLET CHEVROLET BUICK GMC CHEVROLET LOCATION HUNTINGTON PARK BELLFLOWER LAKE ELSINORE CORONA ORANGE TERMS NET 30 DAYS NET 30 DAYS $500/30 DAYS $500/20 DAYS NET 30 DAYS 1 VEHICLE $ 23,260.00 $ 24,123.66 $ 24,949.00 $ 25,356.28 $ 24,976.40 SALES TAX $ 1,802.65 $ 1,869.58 $ 1,933.55 $ 1,965.11 $ 1,935.67 TIRE FEE INCL $ 8.75 $ 8.75 $ 6.75 $ 8.75 TOTAL $ 25,062.65 $ 26,001.99 $ 26,891.30 $ 27,330.14 $ 26,920.82 TERM DISC $ - - $ 500.00 $ 500.00 - GRANT TOTAL $ 25,062.65 $ 26,001.49 $ 26,391.30 $ 26,830.14 $ 26,920.82 DELIVERY 120 DAYS 90-120 DAYS 90-120 DAYS 60-90 DAYS 75 DAYS VEHICLE CHEVY CC15753 CHEVY 2006 CHEVY CC15753 GMC TC15753 C HEVY CC15753 2006 HYBRID SILVERADO 2006 2006 2006 VENDOR QUALITY BOB STALL CHEVROLET CHEVROLET LOCATION ESCONDIDO LA MESA TERMS NET 30 DAYS NET 30 DAYS 1 VEHICLE $ 24,985.00 $ 25,808.00 SALES TAX $ 1,936.34 $ 2,000.12 TIRE FEE $ 8.75 INCL TOTAL $ 26,930.09 $ 27,808.12 TERMS DISC. $ - $ - GRAND TOTAL $ 26,320.09 $ 27,808.12 DELIVERY 120 DAYS 120-150 DAYS VEHICLE CHEVY CC15753 CHEVY C-1500 2006 2006 SUMMARY OF BID AWARD: TOTAL AWARD IN THE AMOUNT OF: MAURICB J. SOPP & SON $25,062.65 Exhibit 1 Page 1 22F-3 22F-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR PORTABLE SHELTERS (SPEC. NO. 05-121) ~r~ ~,~.r ~, CLERK OF COUNCIL USE ONLY: CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For__ CONTINUED TO FILE NUMBER Award a contract to Fisher Safety for the purchase of first response portable shelters in the amount of $44,388.69. SCUSSION On August 16, 2004, the City Council accepted a $15 million Urban Area Security Initiative grant from the Federal Department of Homeland Security, through the State of California, Office of Homeland Security. This initiative was designed to enhance the domestic preparedness of urban areas by ensuring that all emergency first responders have adequate equipment and systems to prevent, respond to and recover from acts of terrorism. The grant provides total reimbursement to local agencies for equipment purchases approved and authorized by the Office of Disaster Preparedness. The Police Department requires portable shelters to provide the urban areas capability to respond to Weapons of Mass Destruction (WMD) events or acts of terrorism. When responding to WMD events or acts of terrorism it may be necessary for first responders to wear protective suits. Having portable, rapidly deployable shelters will provide the first responders with a location to privately put on and take off the protective suits, as well as a climate-controlled environment in which to recover. The portable shelters will be part of the equipment stored in the WMD cargo trailers that will be strategically positioned throughout the Santa Ana Urban area to facilitate a rapid response to any WMD event or terrorist incident. 22G-1 Contract Award for Portable Shelters (Spec. No. 05-121) February 6, 2006 Page 2 The notice inviting bids was advertised on December 23 and 28, 2005, and bids were solicited. A summary of the bid invitations and bids received is as follows: 6 Invitations For Bid mailed 1 Bid received Bid was received and opened on January 11, 2006. The bid received from Fisher Safety is responsive to the specifications and meets the City's requirements. FISCAL IMPACT Funds are available in the Office of Emergency Services (OES) Urban Areas Security Initiative (UASI) Grant Machinery & Equipment account (account no. 125-331-6641). APPROVED AS TO FUNDS AND ACCOUNTS: ,~ Paul` M. ~Wal - _ ~(~RCnQ~\. , IV~1d~JL ters Francisco Gutierrez Chief of Police Executive Director Finance & Mgmt. Ser~ices Agency ~__ PMW/TO/OS-121.7:uc 22G-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR LANDSCAPE RENOVATION (SPEC. NO. 05-128) y~F Au,,e,~an ,'_.~ /w^'' CLERK OF COUNCIL USE ONLY: , CITY MANAGER APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For, CONTINUED TO FILE NUMBER RECOMMENDED ACTION Award a contract to Vista Del Verde Landscape, Inc. to renovate the landscaping at the Santa Ana Zoo at Prentice Park in the amount of $11,536. DISCUSSION The "Colors of the Amazon" bird aviary at the Santa Ana Zoo at Prentice Park was constructed in 1995. The netting at the aviary was replaced in 2005. In order for the netting to be replaced, a large amount of landscaping had to be removed. The renovation will include the purchase and installation of over eighty various trees and plants. Funds for unanticipated contingencies have been included in the award amount. The notice inviting bids was advertised on December 23 and 28, 2005, and bids were solicited. A summary of the bid invitations and bids received is as follows: 12 Invitations For Bid mailed 5 Invitations For Bid mailed to Santa Ana vendors 2 Bids received Bids were received, opened on January 4, 2006, and evaluated. Bid results are as follows: Vendor: Amount: Location: Vista Del Verde Landscape, Inc. Master Landscape & Maintenance, Inc 22H-1 $ 9,536 San Juan Capistrano $10,491 Westminster Contract Award for (Spec. No. 05-128) February 6, 2006 Page 2 Landscape Renovation The bid received from Vista Del Verde Landscape, Inc. is responsive to the specification. FISCAL IMPACT Funds are available in the Recreation and Community Services Agency State Urban Open Space Roberti Z'Berg-Harris Grant Improvements Other than Buildings account (account no. 161-270-6631). APPROVED AS TO FUNDS AND ACCOUNTS: ~--~/ Gerardo Moue Executive Director Parks, Rec. & Comm. Svcs. Agency GM/WO/05-128.8:uc Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency/~ 22H-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR A HYBRID UTILITY VEHICLE AND BLANKET ORDER AMENDMENT (SPEC. NO. 05-134) cf°` CLERK OF COUNCIL USE ONLY: CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to Villa Ford based upon the City of San Diego contract for the purchase of one hybrid utility vehicle in the amount of $28,618.72 and amend the blanket contract in the amount of $10,000 for a total not to exceed $20,000. DISCUSSION The Fleet Maintenance Division's annual Equipment Replacement Program is included in the City's annual budget and identifies vehicles scheduled for replacement. Funding is monitored through a depreciation schedule established with each department. The Parks, Recreation and Community Services Agency's Park Maintenance Department use utility vehicles to transport staff and tools to local parks to perform routine business. Due to age and condition, one 1995 GMC Jimmy has been approved for replacement in the current fiscal year. City Council adopted Ordinance No. NS-2312 authorizing the City to purchase against contracts with other public agencies utilizing a competitive bid process. Villa Ford was awarded a contract as a result of open, competitive bidding and meets the City's requirements. The purchase conforms with the criteria established for the acquisition of hybrid vehicles. 221-1 Contract Award for a Hybrid Utility Vehicle and Blanket Order Amendment (Spec. No. OS-134) February 6, 2006 Page 2 The City establishes an annual blanket order list consisting of vendors that provide supplies and services that are required by agencies on a consistent basis. The contract with Villa Ford provides for the purchase of parts and accessories as required. The purchase of the hybrid utility vehicle when combined with previous purchases by Fleet Services during the current fiscal year exceeds the $10,000 aggregate limit. In order to facilitate future repairs, staff recommends an increase in the current contract amount. FISCAL IMPACT Funds are available in the Fleet Services Equipment Replacement Machinery & Equipment account (account no. 76-145-6641) for $28,618.72; and the Equipment Maintenance Garage Operation Operating Materials & Supplies account (account no. 75-111-6391) for $10,000. ~~(~~~~~. ors ~~9_ . Francisco Gutierrez Executive Director ® % Finance and Management Services Agency, FG/KM/05-134.2:uc 221-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR POLICE K-9 SEDANS (SPEC. NO. 06-009) rT~ ~~ _,~°„`sue CLERK OF COUNCIL USE ONLY: // ,~M CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to Moss Motors Dodge, using the Kern County's contract with Moss Motors, for the purchase of two vehicles in the amount not to exceed $54,704.94. DISCUSSION The Fleet Maintenance Division's annual Equipment Replacement Program is included in the City's annual budget, and identifies vehicles scheduled for replacement. Funding is monitored through a depreciation schedule established with each department. The Police Department's K-9 patrol vehicles are used to transport police officers and their canine partners to perform routine business. The Police Canine Unit tested several full-sized vehicles in search of a new line of K-9 sedans. Vehicles are graded and assessed on such features as safety for both the officers and the dogs, driving performance, and storage capacity. The Dodge Magnum was evaluated and approved by the Santa Ana Police Department as the new K-9 vehicle. Due to age and condition, two 1997 Ford K-9 sedans have been approved for replacement in the current fiscal year. City Council adopted Ordinance No. NS-2312 authorizing the City to purchase against contracts with other public agencies utilizing a competitive bid process. Moss Motors Dodge was awarded a contract as a result of open, competitive bidding and meets the City's requirements. There are no hybrid or alternative fuel options in this classification of vehicles. 22J-1 Contract Award for Police K-9 Sedans (Spec. No. 06-009) February 6, 2006 Page 2 FISCAL IMPACT Funds are available in the Fleet Services Equipment Replacement Machinery & Equipment account (account no. 76-145-6641). ~lt,Ci : i~~_ia~ Francisco Gutierrez ~ Executive Director Finance and Management Services Agencyl~ FG/KM/06-009.2:uc 22J-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR OFFICE SUPPLIES (SPEC. NO. 06-011) ~" ~,~~,J_ L CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Rea~mmended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Award a contract to Office Depot for the purchase of office supplies based upon the County of Los Angeles contract for a four year period in the annual amount not to exceed $390,000. DISCUSSION The City utilizes an assortment of office products for its daily operations such as: paper and toner for printers, copiers, and facsimiles; binders and file accessories; and writing utensils and calendars. The Central Stores Division also orders various stock items for City agencies to store in inventory. The County of Los Angeles recently bid and awarded a contract for office supplies to Office Depot. The contract offers a 40-70 percent discount through Los Angeles County's cooperated contract program. By using the contract, the City benefits from the quantity pricing available to the County. Office Depot has an on-line ordering system, which provides next day delivery service, and tracking and payment information to the requesting agency. The City Council adopted Ordinance No. NS-2312 authorizing the City to purchase against contracts with other government agencies utilizing a competitive bid process. Office Depot was awarded a contract as a result of open, competitive bidding, and meets the City's requirements. 22K-1 Contract Award for Office Supplies (Spec. No. 06-011) February 6, 2006 Page 2 FISCAL IMPACT Funds are available in the various departmental Operating Materials & Supplies accounts (object code 6391). ~~Francisco Gutierrez Executive Director Finance and Management Services Agency/G FG/SH/06-011.2:uc 22K-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD FOR SANTA ANA ZOO NECROPSY FACILITY (PROJECT NO. 6371) i Education 1st ~(~i"'~ RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s~ Reading ^ Ordinance on 2~ Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Award a contract to M.J. Contractors, the lowest responsible bidder, for a lump sum price of $280,000 for construction of the Santa Ana Zoo Necropsy Facility. 2. Approve a Funding Analysis with a total estimated construction cost of $350,000. In 2002 the Santa Ana Zoo was notified by the American Zoological Association Accreditation Board that a Necropsy Facility needed to be constructed. As a result, the Parks, Recreation and Community Services Agency pursued funding to construct this building. The construction of the Necropsy Facility is addressed in the Zoo Master Plan. The addition of a Necropsy facility will allow the Zoo staff to conduct further research on animals that die in the zoo thus providing knowledge to better preserve the lives of other animals. The Notice Inviting Bids was advertised on November 14 and 16, 2005, and bids were opened on December 8, 2005. A summary of the bid invitations mailed, the bids received, and the bid results follows. Santa Ana Contractors receiving notices: 5 Contractors requesting bidding documents: 5 Bids received: 2 Bids received from Santa Ana Contractors: 0 23A-1 Santa Ana Zoo Necropsy Facility February 6, 2006 Page 2 NAME OF BIDDER 1. M.J. Contractors 2. Faris Construction CITY BID AMOUNT Lake Forest 280,000 Dana Point 313,000 A total of two bids were received and both were responsive. The lowest bid was submitted by M.J. Contractors, for $280,000, which is above the Engineer's estimate of $195,000. The high bid amount is attributed to the uniqueness of the project as evidenced by the small number of bidders. ENVIRONMENTAL IMPACT Pursuant to environmental study ER 2002-304, the project will not have a significant effect on the environment. Therefore, a Negative Declaration was granted for the project and no mitigation measures are required. FISCAL IMPACT The funding analysis shows a total estimated construction cost of $350,000 for the project (Exhibit 2). Funds are available in the California State Park Bond Fund (account no. 169-270-6631), the Capital Outlay Fund-Park Improvements (account no. 51-250-6631), and the Recreation Community Services Facilities Maintenance Fund (account no. 11-260-6291). APPROVED AS TO FUNDS AND ACCOUNTS: 7 James G. Ross / Executive Director Public Works Agency ~~~ Gerardo Mouet Executive Director Parks, Recreation & Community Services Agency ~g~rancisco Gutierrez Executive Director Finance & Mgmt. Services Agency /,r K:\Construction\RFCA-draft\6371 2006-02-06 120 WD 23A-2 FUNDING ANALYSIS PROJECT 6371 SANTA ANA ZOO NECROPSY FACILITY Construction Contract Contract Administration Inspection and Testing Contingencies $280,000 17,000 25,000 28,000 TOTAL ESTIMATED CONSTRUCTION COSTS 350 000 r ~~ Exhibit 2 23A-3 23A-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 17, 2006 TITLE: AMENDED AGREEMENT WITH WASTE MANAGEMENT INC. FOR REFUSE COLLECTION AND RECYCLING ~~ Qdnntion lsr CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15f Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 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 the agreement through the year 2018. In exchange, the City will receive $1,000,000 in fiscal year 05-06 and $500,000 in each of the remaining years of the agreement. These payments will not affect customer rates. 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. 25A-1 KCI.VMMCIVUCU AC.1 IVIV Amended Agreement With Waste Management Inc. January 17, 2006 Page 2 ENVIRONML~NTAL 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). r James G. Ross Executive Director Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency 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. 25A-3 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. HOLIDAYS ............................................................................................................................. 7 7. FREQUENCY OF COLLECTIONS ...................................................................................... 7 8. MAINTENANCE OF SCHEDULES ..................................................................................... 7 9. EXCLUSIVENESS OF AGREEMENT ................................................................................ 7 10. SOLID WASTE PROGRAM SURCHARGE ...................................................................... 9 11. AUTOMATED SYSTEM ..................................................................................................... 9 (a) LICENSE .................................................................................................................... 9 (b) FINANCING ............................................................................................................ 10 (c) MAINTENANCE OF LICENSED EQUIPMENT ................................................. 10 (d) OPERATION OF LICENSED EQUIPMENT ........................................................ 10 (e) FUEL FOR LICENSED EQUIPMENT ....................................................................10 (~ OPTION TO PURCHASE ....................................................................................... 10 (g) REPLACEMENT OF RESIDENTIAL AND COMMERCIAL COLLECTION VEHICLES .............................................................................................11 i 2 5A-4 12. COLLECTION POINTS AND REQUIREMENTS .......................................... 13. SERVICES TO BE PROVIDED BY CONTRACTOR TO CITY FOR CITY OPERATIONS ............. . ......... 11 12 (a) CITY GOVERNMENT OPERATIONS ................................................................. 12 (b) STREET SWEEPING .............................................................................................. 12 (c) NEIGHBORHOOD CLEANUPS ........................................................................... 12 14. COLLECTION, RECYCLING, YARD WASTE DIVERSION AND DISPOSAL REQUIlZEMENTS ......................................................................................................... 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) PARKWAY 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 ................................ (b) POSSIBLE ADDITIONAL SAVINGS ....................... 16. CIWMA REPORTING REQUIREMENTS ........................... 17. SRRE CONSULTANT...... u .......................... 15 ......................... 15 15 ............................... 16 25A-5 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. COMMERCIAL/INDUSTRIAL BIN SERVICE RATES ................................................. 20 25. ROLL-OFF SERVICE RATES ........................................................................................... 20 26. COMPENSATION FOR GRANTS .................................................................................... 21 27. ADJUSTMENTS 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) ADMINISTRATNE COST ..................................................................................... .22 28. SPECIAL BIN SERVICES AND CUSTOMER SERVICE REQUIREMENTS .............. 22 29. MIl~IIMUM SERVICE LEVELS -MULTI-FAMILY RESIDENTIAL BUILDINGS ...... 22 30. MINIMUM SERVICE LEVELS -COMMERCIAL/INDUSTRIAL BIN SERVICE AND ROLL-OFF SERVICES ....................................................................................... 23 31. SERVICE STANDARDS .................................................................................................... 23 32. SUPERVISION .................................................................................................................... 24 iii 25A-6 33. TITLE TO SOLID WASTE ................................................................................................. 24 34. FAII.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 RESPONSIBIL,ITIES ........................................................... 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 25A-7 46. NOTICES ............................................................................................................. 47. GENDER AND NUMBER ................................................................................. 48. VALIDITY ........................................................................................................... 49. ASSIGNABILITY ................................................................................................ 50. GOVERNING LAW ............................................................................................ 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 v ............ 33 ............ 33 ............ 33 ............ 34 ............ 34 25A-8 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," RECITALS 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. 1 25A-9 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; 2 25A-10 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 offront-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). C~ Council shall mean the City Council of CITY. (9). C~ 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). CommerciaUIndustrial 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 3 25A-11 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). Composting 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). Dis osal 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). Haulin~~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 4 25A-12 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 25A-13 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 maybe 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 of a 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 composting, mulching and/or transforming and/or dispose of said Solid Waste in compliance with the terms of this Agreement. 6 25A-14 (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 of 6:00 a.m. and 6:00 p.m. Collections from commercial and industrial locations greater than I00 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 purpose of this Agreement shall be New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day and such other days as maybe mutually agreed upon in advance by the parties. 7. FREQUENCY OF COLLECTIONS: The Contractor will collect all Solid Waste from all areas of the CITY at least once each week and in addition will provide more frequent service for those Customers using the Bin Services or Rol1- 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 (f). 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: 7 25A-15 The CONTRACTOR shall have the exclusive duty, right and privilege to collect, transport, process, Recycle, divert by means of composting, 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 composting 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 25A-16 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 of the 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 9 25A-17 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 CTTY'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 10 25A-18 (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 CTTY'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; 11 25A-19 (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 maybe 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 12 25A-20 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 CTTY'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 13 25A-21 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. (f) 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 14 25A-22 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: 15 25A-23 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, 16 25A-24 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 OS-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 17 25A-25 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, 18 25A-26 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 of the IPC. 23. RESIDENTIAL BIN SERVICE RATES: (a) The CONTRACTOR shall receive compensation for supplying Bin Service to residential 19 25A-27 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 commerciaUindustrial 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 CommerciaUIndustrial 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 CommerciaUlndustrial 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 20 25A-28 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 Index ("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 Index ("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)(1) 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)(1) 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 of this 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, 21 25A-29 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) ADMIl~IISTRATNE 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 maybe 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 -MULTI-FAMILY 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. 22 25A-30 (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 of the 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 - COMMERCIAL/INDUSTRIAL 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 maybe waived by the Executive Director. In the event that Solid Waste being disposed of at a commerciaUindustrial 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. 23 25A-31 (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 maybe 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 24 25A-32 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 of the 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 25 25A-33 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 of the 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 of the 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. 26 25A-34 36. LIQUIDATED DAMAGES: (a) The CITY finds, and the CONTRACTOR agrees, that as of the time of the execution of this Agreement it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by 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 of the 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 composting 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 27 25A-35 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 maybe 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 28 25A-36 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 maybe 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' payments 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: 29 25A-37 (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 Recyclin~ 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 VII. 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, maybe 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 of the 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 of a breach of the covenants in subsections (a) and (b) hereinabove. 43. ACCOUNTING AND AUDITING: (a) The CONTRACTOR shall maintain financial records in 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 ($2,000,000.00) conditioned upon the faithful performance of this Agreement by the CONTRACTOR and its subcontractors, if any. Said bond may be written for a term of one year, and may thereafter be renewed by certificate, provided however, that the CONTRACTOR agrees to maintain such bond or bonds in force for the complete term of this Agreement. 32 25A-40 45. MEDIA RELATIONS: The CONTRACTOR shall notify the CITY by facsimile of all requests for news media interviews related to the CITY'S Solid Waste collection program within twenty-four (24) hours. Before responding to any inquiries involving controversial issues, CONTRACTOR will discuss the proposed response with the CITY. Copies of dra$ 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 2 5A-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. GOVERNING LAW: 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: PATRICIA A. HEALY Clerk of the Council APPROVED AS TO FORM: JOSEPH W.FLETCHER City Attorney JAMES G. ROSS Executive Director, Public Works Agency 34 25A-42 DAVID N. REAM City Manager USA Waste of California, Inc., By: Title: EXHIBIT "A" The Licensed Equipment DESCRIPTION Volvo FE42T, Class 7 Tractor QUANTITY 23 Heil Rapid Rai132 Cubic Yard Trailer with 23 Automated Lifting Arm and Packer Volvo WX64 Chassis 2 Heil Half-Pak Front Loading Body 2 Residential Wheeled Carts Per the Attached 120,000 Specifications 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 of the carts shall have a minimum wear strip under the floor of %2 inch (protecting the floor from abrasive contact with the street surface). 2. Material: Recyclable polyethylene, U.L. approved with a rating of HB or better. Average Wall Thickness: Size A: Not less than .140 inch Size B: Not less than .160 inch Size C: Not less than .165 inch Carts shall be suitable for use in temperature of >120° F to -20°F. 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 of 20% 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. 2 5A-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 anon-commercially available tool. Wheel Sizes: Size A: 8 inches Size B: 10 inches Size C: 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: 5/8 inch Size B: 6/8 inch Size C: 7/8 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 -20 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: 1201bs. distributed Size B: 1601bs. distributed Size C: 1801bs. 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: 1601bs. distributed Size B: 2501bs. distributed Size C: 350 lbs. distributed 7.3 WheeUAxle 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: 125 lbs. distributed Size B: 200 lbs. distributed Size C: 3501bs. 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 Number/Manufacture Date: Each cart shall be hot stamped with a seven digit, 1-%2" high alphanumeric identification number on the front of the cart. An in-molded year/month date wheel identification will be located on the bottom of the 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 Do not put paints, solvents, gasoline, oil, etc. in cart. Size B: 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. Size C: 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: 2%2" x 14" Size B: 3%2" x 18" Size C: 4%2" 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. 2. 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. 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: Monthly Rate 1 YARD BIN X 1/WEEK $73.04 1 YARD BIN X 2/WEEK $131.11 1 YARD BIN X 3/WEEK $189.15 1 YARD BIN X 4/WEEK $247.25 1 YARD BIN X 5/WEEK $305.26 1 YARD BIN X 6/WEEK $378.34 2 YARD BIN X 1/WEEK $78.70 2 YARD BIN X 2/WEEK $142.44 2 YARD BIN X 3/WEEK $206.17 2 YARD BIN X 4/WEEK $269.89 2 YARD BIN X 5/WEEK $333.63 2 YARD BIN X 6/WEEK $397.34 3 YARD BIN X 1/WEEK $114.30 3 YARD BIN X 2/WEEK $198.69 3 YARD BIN X 3/WEEK $283.00 3 YARD BIN X 4/WEEK $367.45 3 YARD BIN X 5/WEEK $451.81 3 YARD BIN X 6/WEEK $573.62 4 YARD BIN X 1/WEEK $134.95 4 YARD BIN X 2/WEEK $232.49 4 YARD BIN X 3/WEEK $330.01 4 YARD BIN X 4/WEEK $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 COMMERCIAL/INDUSTRIAL BIN Subject to the provisions of this Agreement, the CONTRACTOR may charge no more than the following rates for CommerciaUlndustrial Bin Service: Monthly Rate 1 YARD BIN X 1/WEEK $58.33 1 YARD BIN X 2/WEEK $101.64 1 YARD BIN X 3/WEEK $145.01 1 YARD BIN X 4/WEEK $188.42 1 YARD BIN X 5/WEEK $231.74 1 YARD BIN X 6/WEEK $290.05 2 YARD BIN X 1/WEEK $64.23 2 YARD BIN X 2/WEEK $113.55 2 YARD BIN X 3/WEEK $162.82 2 YARD BIN X 4/WEEK $212.07 2 YARD BIN X 5/WEEK $261.36 2 YARD BIN X 6/WEEK $333.06 3 YARD BIN X 1/WEEK $92.62 3 YARD BIN X 2/WEEK $170.32 3 YARD BIN X 3/WEEK $247.96 3 YARD BIN X 4/WEEK $325.61 3 YARD BIN X 5/WEEK $403.25 3 YARD BIN X 6/WEEK $518.29 4 YARD BIN X 1/WEEK $121.04 4 YARD BIN X 2/WEEK $219.55 4 YARD BIN X 3/WEEK $318.11 4 YARD BIN X 4/WEEK $416.71 4 YARD BIN X 5/WEEK $515.26 4 YARD BIN X 6/WEEK $666.18 CONTRACTOR may offer a discount in the commerciaUindustrial bin rates to a CommerciaUIndustrial Bin Service Customer if said Customer regularly segregates Recyclable Solid Waste and/or Yard Waste by Waste Type in separate bins. 25A-49 4. 5. 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 10 Cubic yard $179.00 20 Cubic yard $179.00 40 Cubic yard $179.00 Additional Fee for Compactor $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. 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 maybe 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. (n 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 pay or 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, W1VIH'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. WNII-I acknowledges that the Contractor is a direct or indirect subsidiary of WMH and that WMH will receive substantial benefit from the performance of the 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. 25A-53 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, INC. RECEIVED AND ACCEPTED: (Beneficiary) By: By: Its: Its: 25A-54 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: RENEW AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC. FOR ADULT CROSSING GUARD PROGRAM CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s` Reading ^ Ordinance on 2n° Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to renew the agreement with All City Management Services, Inc. for the Adult Crossing Guard Program for an additional one- year term, in an additional amount not to exceed $851,855. DISCUSSION On January 18, 2005, Council approved a one-year agreement with All City Management Services, Inc. (AGMs), to staff the Adult Crossing Guard Program per the requirements specified in a Request for Proposal. The Adult Crossing Guard Program ensures safe pedestrian movement of children around elementary schools within Santa Ana. The Police Department's evaluation over the past year has determined that ACMS has met all the requirements of the agreement. Staff recommends a one-year renewal of this agreement as the consultant has performed satisfactorily during the previous agreement period. FISCAL IMPACT Funds for the first four months are available in the Police Department, Traffic Division Other Contractual Services account (account no. 011-333- 6291). Funds for the last eight months of the renewal will be included in the FY 06-07 budget. APPROVED AS TO FUNDS AND ACCOUNTS: Paul al Chief of Police Police Department ~s`yL~S~.~V e~ ' ~l t ~ ~ Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency J, 25B-1 CLERK OF COUNCIL USE ONLY: 25B-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 T1TLE: AGREEMENT WITH FAAC INC. FOR DRIVER SIMULATOR UPGRADE APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s` Reading ^ Ordinance on 2~ Reading ^ Implementing Resolution ^ Set Public Hearing For _ z~/ `ev~--~" CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with FAAC Inc. to purchase the standard upgrade package for two driver simulators in an amount not to exceed $240,000. DISCUSSION In 1999, the Police Department purchased two driver simulators from FAAC Inc. for $197,000. The simulators have been used to teach police officers safe driving skills and to provide remedial training in a protected and controlled environment. Additionally, all officers are mandated to receive sixteen hours of Perishable Skills training every two years. The driving portion of the Perishable Skills training is taught using the simulators. The two FAAC simulators are nearly seven years old and the average life span of computer hardware is five years. The simulators have required extensive service and repair during the past two years. Additionally, new software is continually being developed which enhances the training value of the simulators. In order to continue with the necessary training of the police officers, staff recommends an agreement with FAAC Inc. to lease the standard upgrade package for the two driver simulators and a four-year extended warranty, in an amount not to exceed $240,000 over a five-year period. The terms of the agreement specifies monthly payments of $3,975.18 for five years, with an option to purchase for $l, exercisable by the Chief of Police. 25C-1 IiLCRR Vr VVVI9N~L VJG v~~a.~. Driver Simulator Upgrade February 6, 2006 Page 2 FISCAL IMPACT Funds for the first four months of the agreement are available in the Police Department, Training Division Other Contractual Services account (account no. 011-334-6291). Funds for the remainder of the agreement period will be included in each FY budget. If Council chooses not to budget the funds in any future year, the lease may be cancelled. APPROVED AS TO FUNDS AND ACCOUNTS: Pau/~ lters Chief of Police Police Department Francisco Gutierrez Executive Director Finance & Mgmt. Services Agency~i G°' 25C-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: AGREEMENT WITH CURBSIDE INC. FOR USED BATTERY RECYCLING PROGRAM RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s~ Reading ^ Ordinance on 2ntl Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with Curbside Inc. in the amount not to exceed $9,000 to collect and recycle used batteries. DISCUSSION In 2004 the City's Environmental and Transportation Advisory Committee (ETAC) requested that staff develop a battery recycling program for city operations. On August 1, 2004 a six-month pilot program was implemented at eight city locations at the Yard and in the Police Department. During the pilot phase the program was well utilized and ETAC expanded the program in 2005. Currently there are 16 recycling containers located throughout City buildings. Curbside Inc. provides the collection and recycling of the batteries, once the containers are full. A new agreement with Curbside Inc. is needed to continue the program. Because the City is also utilizing Curbside Inc. to pick up and recycle household hazardous waste generated by residents, this agreement is being submitted for Council approval even though the limit of the agreement is $9,000. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. The recycling of batteries however will assist in the City's effort to reduce the amount of waste that is being disposed. r~ i~ Qdycaaon use 25D-1 Agreement With Curbside Inc. For Used Battery Recycling Program February 6, 2006 Page 2 FISCAL IMPACT Funds to pay for this program are available in the refuse collection fund (account no. 69-521-6291). APPROVED AS TO FUNDS AND ACCOUNTS: 1 James G. Ross Executive Director Public Works Agency ~' C~ti'1c .'~ f Francisco Gutierrez Executive Director _~ Finance & Mgmt. Services Agency 25D-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: AGREEMENT WITH REDLANDS SOFTWARE FOR GIS PROGRA AND CONSULTING SERVICES ~duotion far ~~ RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1~` Reading ^ Ordinance on 2ntl Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute an agreement with Redlands Software Inc. to provide Geographic Information System programming and technical services to the Public Works Agency for an amount not-to-exceed $120,000. The Public Works Agency continues to expand the Geographic Information System and is working on projects for agencies throughout the City. Programming and technical services are needed to assist with the implementation of these projects. The work to be done includes assisting staff with project design and set-up, programming and technical database support. Several years ago staff solicited proposals for these services from qualified firms. Redlands Software was selected based on their qualifications, past experience and capacity to perform the required work and an agreement was approved. Redlands has performed well and at this time it is recommended that a new agreement with Redlands Software Inc. be awarded for a not-to-exceed cost of $120,000. FISCAL IMPACT The proposed agreement will have a limit of $120,000. Funds to pay for these services are available and budgeted in the Public Works Administration account for contractual services (account no. 101-601- 6291). APPROVED AS TO FUNDS AND ACCOUNTS: James G. Ross Executive Director Public Works Agency Francisco Gutierrez Executive Director Finance & Management Services Agency k'~ 25E-1 25E-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: r~'~ Equcation Iat COOPERATIVE AGREEMENT WITH CALTRANS FOR LANDSCAPING AT STATE ROUTE 55 AND MACARTHUR BOULEVARD INTERCHANGS (PROJECT NO.. 06-1015)/' /'~ ~~-' RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 151 Reading ^ Ordinance on 2n0 Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute a cooperative agreement with Caltrans in the amount of $805,800 to design and install landscaping at the State Route 55 and MacArthur Boulevard Interchange. DISCUSSION The Orange County Transportation Authority's (OCTA's) Interstate 405 (1- 405)/State Route 55 (SR-55) Interchange Improvement Project was completed in October 2005. The Cities of Santa Ana, Costa Mesa, and the majority of businesses in the area have requested replacement landscaping at two key interchanges to repair the conditions that deteriorated significantly during the four-year construction period. On June 27, 2005, the OCTA Board authorized the execution of a cooperative agreement with the cities of Costa Mesa and Santa Ana, in a not to exceed amount of $1,343,000. This funding was allocated for the design and installation of new landscaping at the I-405/Bristol Street and SR-55/MacArthur Boulevard Interchanges. Santa Ana's share for the SR-55/MacArthur Boulevard Interchange was $805,800. On August 15, 2005, the City Council executed a cooperative agreement with OCTA stipulating that we agreed to manage our landscaping project and provide detailed monthly expenditure reports to OCTA. Further, we agreed to fund any additional cost over the original amount allocated, or reduce the scope of work to remain within the respective budget. A funding transfer for the $805,800 was also authorized through the cooperative agreement. At this time, staff is requesting that the City Council authorize the execution of a cooperative agreement with Caltrans in the amount of 25F-1 Cooperative Agreement With Caltrans February 6, 2006 Page 2 $805,800 to design and install landscaping at the SR-55/MaArthur Boulevard Interchange. The services that Caltrans will perform include all necessary engineering and environmental documentation. Caltrans will also advertise, award and administer the construction contract and provide construction inspection services. The project schedule calls for the project to be completed by April 2007. ENVIRONMENTAL IMPACT OCTA previously filed an Initial Study/Environmental Assessment in July 1999 for the installation of landscaping at this location in conjunction with the I-405/SR-55 Interchange Project. FISCAL IMPACT Funds in the amount of $805,800 are available in the Measure M Transitway Program expenditure account (account no. 32-553-6631, project no. 06- 1015) to install new landscaping at the SR-55/MacArthur Boulevard Interchange. rv APPROVED AS TO FUNDS AND ACCOUNTS: James G. Ross Francisco Gutierrez Executive Director Executive Director Public Works Agency Finance & Mgmt. Services Agency.! 25F-2 v J V 4 AA ~!`GRTHI IR RI \T ,~ ~. +I Illl ~. r,1 ' .1 o-, ,I ~I N ~, C1 ~i EXHIBIT 1 Title: COOPHRATIVE AGREEMENT WITH CALTRANS SANTA ANA Clty COUnCII ~~~) A ends Date TO DESIGN AND INSTALL LANDSCAPING AT g THE STATE ROUTE 55 AND MACARTHUR k~ PWA BOULEVARD INTERCHANGE ydJO^ ~s~ FEBRUARY 6, 2006 PuLI1c WMSRgency 25F-3 25F-4 REQUEST FOR COUNCIL ACTION CBTY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: AGREEMENT FOR EXPANSION OF CNG FUELING STATION (SPEC. NO. 06-010) ~~ ~.,~.~~. CLERK OF COUNCIL USE ONLY: CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Rea~mmended ^ As Amended ^ Ordinance on tst Reading ^ Ordinance on 2nd Readiny ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with Gas Equipment Systems, Inc. for expansion of the CNG fueling station in the amount not to exceed $80,959.61. DISCUSSION In accordance with Air Quality Management District (AQMD) standards established in 2000, the Finance and Management Services Agency implemented a Compressed Natural Gas (CNG) Program. The program was initially established for the City's street sweepers and now includes the City's bookmobile as well as a hybrid vehicle parts truck. In 2001, the City installed a CNG slow fueling facility at the Corporate Yard. To date, the City has installed four dual-hosed slow fueling stations to fuel the existing fleet of eight CNG street sweepers, bookmobile, and truck. The recommended action would add three dual- hosed slow fueling stations. The additional capacity would enable the City to replace the three remaining diesel sweepers with CNG sweepers. Gas Equipment Systems, Inc. installed and is familiar with the critical aspects of the existing CNG fueling systems. Division staff recommends approval to ensure system is maintained. The vendor performed th satisfactorily and staff recommends award. 25G-1 Fleet Maintenance the integrity of the e initial installation Agreement for Expansion of CNG Fueling Station (Spec. No. 06-010) February 6, 2006 Page 2 FISCAL IMPACT Funds are available in the Fleet Services Air Quality Improvement Other than Buildings account (account no. 31-111-6631). Francisco Gutierrez Executive Director Finance and Management Services Agency FG/KM/06-010.2:uc 25G-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: AGREEMENT FOR POLICE CONSULTING SERVICES ly~ZW../ ~~.Q..~.~/ CITY MANAGER RECOMMENDED ACTION Direct the City Attorney Clerk of the Council to consulting services for 550,000. DISCUSSION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1~` Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER to prepare and authorize the City Manager and the execute an agreement with George Saadeh to provide a one-year period in an amount not to exceed The Police Department recommends entering into an agreement with George Saadeh to provide consulting services on all aspects of Homeland Security grants, policies, practices, procedures, and operational issues relating to the Urban Areas Security Initiative funding program (UASI). Mr. Saadeh has recently retired from the Santa Ana Police Department, where he was responsible for developing and administering the UASI Program. His unique knowledge and experience in this area is critical to transition from the current UASI funding model to the recently approved program model, which requires intense coordination with countywide UASI members. FISCAL IMPACT Funds are available in the Police Department's FY 2005 UASI Grant Other Contractual Services account (account no. 125-333-6291). APPROVED AS TO FUNDS AND ACCOUNTS: ~~„tom ~,ti.•'°- ~~^i~.~~~ )~ ,,~~ Paul M. Walters Francisco Gutierrez Chief of Police Executive Director Police Department Finance & Mgmt. Services Agency/./ 25H-1 I:LtKK Vr I,tJUrvV~L U.7C vivLr. 25H-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: AGREEMENT FOR LANDSCAPE MAINTENANCE SERVICES AT VARIOUS CITY FACILITIES CI MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15f Reading ^ Ordinance on 2ntl Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with Bevill Landscape Maintenance for landscape maintenance services at various public facilities for a two-year period, with provision for three one-year renewals, in an annual amount not to exceed $176,836. DISCUSSION The Parks, Recreation and Community Services Agency is responsible for landscape maintenance at various public areas throughout the City. These include bike trails, parks, McFadden Technology Center, Newhope Library, and the Regional Transportation Center. For the past five years, the City has contracted for the maintenance of these properties. The agency does not have the manpower or equipment necessary to perform this volume of work, and considerable expense would be incurred to obtain and maintain the required equipment and personnel. The notice inviting bids was advertised on November 2 and 3, 2005, and bids were solicited. A summary of the bid invitations and bids received is as follows: 12 Invitations For Bid mailed 5 Invitations For Bid mailed to Santa Ana vendors 2 Bids received ;'~ Bids were received, opened on January 4, 2006 and evaluated. Bid results are as follows: Bidder: Location: Amount: Bevill Landscape Maintenance San Juan Capistrano $136,836 Master Landscape & Maintenance Westminster $185,280 251-1 CLERK OF COUNCIL USE ONLY: Contract Award for Landscape Maintenance of Public Facilities February 6, 2006 Page 2 The bid received from Bevill Landscape specification. A $40,000 contingency $136,836 to pay for unanticipated and e amount of $176,836. FISCAL IMPACT Maintenance is responsive to the will be added to the base bid of mergency work, for a total contract Funds for the first five months of the agreement are available in the fiscal year 2005-2006 Park Maintenance, Library, and Community Development contractual accounts (account nos. 11-250-6291, 11-214-6291, and 67-615- 6291). Funds for the duration of the agreement will be included in the proposed budget in subsequent fiscal years. Gerardo Mouelt Executive Director Parks, tec. and Comm. Svcs. Agency //n ,/~~ Ro Ric and Exe tive Director i y (/ W Patricia C. Whitaker Executive Director Community Development Agency APPROVED AS TO FUNDS & ACCOUNTS: Francisco Gutierrez Executive Director Finance and Mgmt. Services Agency~V~ 251-2 ~~,Iv~~ i REQUEST FOR ~ COUNCIL ACTION~'!'~`~, ~vaauoa ys~ CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: CONTRACT AWARD WITH EIP ASSOCIATES TO PREPARE AN ENVIRONMENTAL IMPACT REPORT AND ZONING AMENDMENT FOR THE FIRST AND FOURTH STREETS STUDY AREA AND APPROPRIATION ADJUSTMENT CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1~' Reading ^ Ordinance on Intl Reading ^ Implementing Resolution ^ Set Public Hearing For _~, J~ ~,~~ / CONTINUEDTO ~~ w' '"'^" FILE NUMBER CITY MANAGER RECOMMENDED ACTION 1. Direct the City Attorney to prepare and authorize the City Manager and Clerk of the Council to execute an agreement with EIP Associates to prepare an Environmental Impact Report (EIR) and related technical studies and zoning amendment for the First and Fourth Streets Study Area in an amount not to exceed $391,200, pending receipt of funding from developers. 2. Approve an appropriation adjustment recognizing $391,200 in the 2005-2006 FY revenue account for environmental review fee for the First and Fourth Streets Study Area (account 11-O1-5452-113) and appropriating $391,200 to the Planning and Building Agency 2005-2006 FY budget allocation in the account for contractual services (account no. 11-505-6291) for payment to EIP Associates. DISCUSSION In 2005 a conceptual vision plan and development framework for the First and Fourth Streets study area east of the I-5 Freeway was presented to the City Council and direction given to staff to pursue a comprehensive planning framework for the study area. That vision plan outlined where residential and mixed use development might be appropriate for future development, as well as provided general direction to guide the design of any future development of this type. The purpose at that time was to serve as a strategic guide for decisions regarding the development proposals, general plan updates and zone changes. Since that time staff has been working with two developers, Shea Homes and Makar Properties, who wish to pursue residential mixed-use projects in the study area. Staff has prepared a preliminary environmental analysis and identified a number of potentially significant environmental impacts that could be associated with the implementation of the proposed 25J-1 Contract Award with EIP Associates February 6, 2006 Page 2 project. Therefore the preparation of an Environmental Impact Report (EIR) for the project is required, as well as the preparation of zoning level documents that can allow for the proposed development. Both Shea Homes and Makar Properties have agreed to share the cost of these studies and will be funding the recommended contract in its entirety. Staff is recommending a sole source agreement for this project with EIP Associates due to the technical expertise that they have in both environmental analysis for complex projects, as well as for their experience in developing urban design zoning standards. EIP Associates previously prepared the land use study for the project area. This contract will continue to build on that successful effort. Presently, EIP Associates is included in the City's list of qualified environmental consultants and is not under contract with the City or the applicant on any other project. At this time, staff recommends that EIP Associates be awarded the contract to prepare the Environmental Impact Report and zoning amendment for the First and Fourth Street study area. The total amount would be $391,200. Environmental Impact The awarding of a contract for preparation of an environmental impact report and zoning amendment is statutorily exempt from CEQA. FISCAL IMPACT The applicants of the project, Shea Homes and Makar Properties will deposit the full amount with the City of Santa Ana, in a special account for the proposed project for 2005-2006 fiscal year. The total appropriation adjustment will increase the anticipated revenue in the special revenue account for the project (account no. 11-01-5452-113) by $391,200 and increase the Planning and Building Agency expenditure allocation for contractual services by $391,200 (account no. 11-505-6291) for payment to EIP Associates. APPROVED AS TO FUNDS AND ACCOUNTS: 1'Jay Trevino EIS utive Director Planning and Building Agency S 2 - ~~~ Francisco Gutierrez Executive Director Finance & Management Services Agency/,~ SK:rb ak\eaet Eourth et reef study\1"-4thoverlay zone cc report 25J-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: Y ,,l~i ~~~ b sr CONTRACT AWARD TO PREPARE THE SANTA ANA RENAISSANCE SPECIFIC PLAN AND APPROPRIATION ADJUSTMENT ~~ ~~~ CITY MANAGER CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s' Reading ^ Ordinance on 2n° Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute a contract with Moule & Polyzoides Architects and Urbanists to prepare the Santa Ana Renaissance Specific Plan in an amount not to exceed $528,000. 2. Approve appropriation adjustment recognizing $424,000 in the 2005- 2006 FY revenue account for Inclusionary Housing Fees for City Place (account no. 011-O1-5400-1) and appropriating $424,000 to the Planning and Building Agency 2005-2006 FY budget allocation in the account for contractual services (account no. 11-505-6291) for payments to the consultants contracted to prepare the Santa Ana Renaissance Specific Plan. DISCUSSION In June of 2005, the City Council held a one-day workshop to discuss development related issues and to establish priority focus areas for the City. The Santa Ana Boulevard Corridor, expanded to include the Downtown and Logan areas, was identified as one of the top three priority focus areas. Staff was directed to renew the process to develop a Specific Plan for the area, which had been placed on hold when the Centerline project was placed on hold. The study area for the project encompasses approximately 350 acres and is generally bounded by the railroad tracks, First Street, Flower Street and Civic Center Boulevard. The study area as originally proposed in the Request for Proposal has been modified to exclude the properties between railroad tracks and Grand Avenue. The excluded area includes a significant amount of property owned by the County of Orange. A change in staffing at the County has affected its ability to assign senior staff to participate in the process at the project management level. The scope of work for the Specific Plan effort includes: 1. Data collection and analysis of the opportunities and constraints 25K-1 Contract Award to Prepare the Santa Ana Renaissance Specific Plan February 6, 2006 Page 2 2. Formulation of goals and objectives 3. Develop strategies for economic, land use, housing, urban design, streetscapes, open space and vehicular and pedestrian circulation and transit programs 4. Develop land use, urban design and streetscape plans 5. Provide economic analysis and infrastructure needs analysis, as well as financing, development and implementation strategies 6. Develop a form-based code for the project area 7. Conduct the public outreach program A Request for Proposals was distributed to eight urban design consulting firms in late October 2005. In response to the Request for Proposals staff received proposals from three highly-qualified urban design firms; Moule & Polyzoides Architects and Urbanists, Calthorpe Associates and TCB/AECOM. After reviewing the proposals staff, including representatives from the Planning and Building Agency, Community Development Agency and Public Works, conducted interviews with each of the consulting teams. At the conclusion of the interviews, together with an analysis of the proposals submitted, the staff team determined that the firm of Moule & Polyzoides Architects and Urbanists was the one most qualified to assist in the preparation of the Specific Plan. Mr. Stefanos Polyzoides, Principal of Moule & Polyzoides Architects and Urbanists will lead the project. He has assembled a team of distinguished local and national consultants who have a proven track record in successful Specific Plans. Mr. Polyzoides and his team bring a perspective on urban planning that balances historical and design issues, have an extensive experience with the housing market and the development process, provide a full complement of English/Spanish bilingual staff, have national recognition in successful Transit Oriented Design development, have national leadership in the practice of form-based codes and provide a design approach that aims to reduce traffic and parking loads. Based on the need to address the development potential of the project area and to improve its aesthetic character, as well as the consultants' qualifications and experience in preparing Specific Plans in mature urban settings, it is recommended that Moule & Polyzoides Architects and Urbanists be awarded the contract for this project. The contract will be broken into two phases, with the phase one, the preparation of the Specific Plan, being considered first. The total contract amount for the preparation of the Specific Plan will not exceed $528,000. Staff will return with the contract for the second phase of the project, preparation of the Environmental Impact Report, at a later date. 25K-2 Contract Award to Prepare the Santa Ana Renaissance Specific Plan February 6, 2006 Page 3 FISCAL IMPACT Several recently approved development agreements, including the agreement for City Place, included a provision for the developer to pay an in-lieu fee to fund the planning and construction of housing that will meet the City's obligation to provide a range of housing that satisfies the Regional Housing Needs Assessment (RHNA) Use of these funds for long- range planning efforts, such as the Santa Ana Renaissance Specific Plan is an eligible expenditure. The recommended appropriation adjustment would recognize $424,000 in the 2005-2006 FY revenue account for Inclusionary Housing Fees for City Place (account no. 011-01-5400-1) and would appropriate a like amount to the Planning and Building Agency 2005-2006 FY budget allocation in the account for contractual services (account no. 11-505-6291) to provide the majority of funding for this contract. In addition, $100,000 is available in 2004-OS FY CDBG Funds in the account for Planning General Plan Amendments (account no. 135-149-6291/Prof. No. OS-7803/W.O. No. 80304). The required balance of $4,000 is available in the 2005-06 FY Planning and Building budget allocation in the account for other contractual services (account no. 11-505-6291). Funding for this contract is summarized below: City Place Inclusionary Housing Fees Oll-O1-5400-1 $424,000 CDBG Funds (Project No. OS-7803) 135-149-6291-80304 $100,000 Planning & Building 2005-06 FY Allocation 11-505-6291 $ 4,000 TOTAL: $528,000 APPROVED AS TO FUNDS AND ACCOUNTS: a M. Trevino cutive Director Planning & Building Agency Patricia C. Whitaker Executive Director Community Development Agency LL:rb 11\report a\cont ract award SARSP 2-6-06 Francisco Gutierrez Executive Director Finance & Management Services Agency`v~ 25K-3 25K-4 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: SECOND RENEWAL OPTION TO AGREEMENT FOR STEAM CLEANING SIDEWALKS IN DOWNTOWN SANTA ANA, SOUTH MAIN CORRIDOR AND THE DEPOT eduntion ~sr CLERK OF COUNCIL USE ONLY: ~~~_ CITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1" Reading ^ Ordinance on 2n° Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute the second renewal of the Agreement with TSCM Corporation for steam cleaning Downtown, South Main Corridor and The Depot sidewalks and sweeping service for The Depot in an amount not to exceed $310,000. Currently the Downtown Santa Ana steam cleaning program allows for three linear blocks to be cleaned each night, five nights a week, Wednesday through Sunday on all major and secondary arterials in Downtown Santa Ana. The colored sidewalks in the South Main Street Corridor area are cleaned three times a year. Additionally, The Depot's steam cleaning program allows for the parking structure to be cleaned annually, the walkways to be cleaned semi-annually, and the bus bays to be cleaned quarterly. The Depot's sweeping program allows for the service lots and curbs at all entrances to be swept three times per week and the parking structure to be swept two times per week. On February 2, 2004, the City Council awarded an agreement to TSCM Corporation for steam cleaning services in Downtown Santa Ana for a 12- month period with two renewal options. On November 7, 2005, the City Council amended the contract to include the secondary streets to be cleaned in Downtown Santa Ana and the colored sidewalks in the South Main Street Enhancement Project area. The second renewal with TSCM will ensure the continued steam cleaning services for the Downtown, South Main, and the Santa Ana Depot through December 31, 2006. 25L-1 Second Renewal Option to Agreement for Steam Cleaning Sidewalks February 6, 2006 Page 2 TSCM has been diligent in addressing its work plan in detail; and its efforts in the Downtown, South Main and The Depot have met the required level of cleanliness. Staff recommends exercising the final renewal of the agreement for the annual amounts stated below: Downtown - Main Arterials $120,000 Downtown - Secondary Streets $130,000 South Main Corridor $ 20,000 The Depot - Steam Cleaning $ 24,000 The Depot - Sweeping $ 16,000 Total annual expenditure: $310,000 The only alternative is to not award the second renewal option, which would result in a lack of steam cleaning services in Downtown, South Main and The Depot along with sweeping services at The Depot. This would be detrimental to the areas, resulting in an unacceptable level of maintenance for City property and sidewalks. FISCAL IMPACT Funds are available in the Parking Enterprise Fund Account (account no. 027-013-6291), the Business Improvement District Trust and Agency Reserve Account (account no. 93-01-3611), the Downtown Maintenance Fund (account no. 407-933-6291), and The Depot at Santa Ana Maintenance and Repair, Buildings and Grounds Fund (account no. 67-615-6261). ~l.L/-~~~~+C~~-= Patricia C. Whitaker Executive Director Community Development Agency PCW/DM/mlr APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez y~ Executive Director ~ r.lrWnr%~) Finance & Management Services Agency H:\ACTIONS\2006 CC\Second Renwal Option TSCM 2-6-06. doc 25L-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: TARGET STORES DONATION FOR GRAFFITI ENFORCEMENT ins / 'Ldc~.~_~- TY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1 s' Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the acceptance of a donation in the amount of $1,000 from the Target Stores, to be used by the Police Department Graffiti Task Force Unit. 2. Approve an appropriation adjustment recognizing the donation in the amount of $1,000 into the Police Special Revenue Fund, Gifts and Donations revenue account (account no. 024-01-5798) and appropriate same into the Police Special Revenue Fund, Operating Materials and Supplies expenditure account (account no. 024-331-6391). DISCUSSION The Police Department operates a Graffiti Task Force Unit comprised of three detectives. The unit targets criminals and taggers committing graffiti crime and affecting the quality of life for members of the community. Target Stores, a prominent local business, desires to support local law enforcement and impact the local community in a positive manner by donating $1,000 to the Police Department. This donation will be used by the Police Department in support of anti-graffiti efforts. FISCAL IMPACT Approval of the appropriation adjustment will enhance the Police Special Revenue Fund, Gifts and Donations revenue account (account no. 029-01-5798) by $1,000 and appropriate same into the Police Special Revenue Fund, Operating Materials and Supplies account (account no. 029-331-6391). APPROVED AS TO FUNDS AND ACCOUNTS: F+-cPau~ tern Chief of Police Police Department l~i1l~S~`. ivr ~~ Francisco Gutierre Executive Directo r Finance & Mgmt. Services Agenc 29A-1 29A-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 ~A"~! tiducatlon $, CLERK OF COUNCIL USE ONLY: TITLE: VARIANCE NO. 2005-66 TO ALLOW A REDUCTION IN PARKING AND VARIANCE NO. 2005-67 FOR A REDUCTION IN SETBACKS AT 2 EAST HUTTON CENTRE DRIVE - NEXUS DEVELOPMENT CORPORATION, APPL ANT ~ ~ lc-- - CITY MANAGER APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1s' Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER RECOMMENDED ACTION Receive and file the staff report approving Variance No. 2005-6.6 as conditioned and Variance No. 2005-67 as conditioned. PLANNING COMMISSION ACTION On January 9, 2006, the Planning Commission adopted a resolution approving Variance No. 2005-66 as conditioned to allow a reduction in parking and adopted a resolution approving Variance No. 2005-67 as conditioned for a reduction in setbacks by a vote of 6:0 (Rodriguez absent) for a 932 square foot addition to an existing retail center in the Specific Development No. 76 (SD-76) zoning district at 2 East Hutton Centre Drive. The Planning Commission made no changes to the conditions of approval outlined in the attached staff report (Exhibit A). FISCAL IMPACT There is no fiscal impact associated with this action. ay M. Trevino utive Director Planning & Building Agency VF:rb of/reports/VA05-66&VA05-69.cc 31 A-1 REQUEST FOR Planning Commission Action PLANNING COMMISSION MEETING DATE: JANUARY 9, 2006 (r~° ~ti ~pca[ion 16, PLANNING COMMISSION SECRETARY TITLE: PUBLIC HEARING - FILED BY THE NEXUS DEVELOPMENT CORPORATION FOR VARIANCE NO. 2005-66 TO ALLOW A REDUCTION IN PARKING AND VARIANCE NO. 2005-67 FOR A REDUCTION IN SETBACKS AT 2 EAST HUTTON CENTRE DRIVE Prepared by Vince Fregoso APPROVED ^ As Recommended ^ As Amended ^ Set Public Hearing For DENIED ^ Applicant's Request ^ Staff Recommendation CONTINUED TO _ ~ ~ Executive Director Planning Manag r RECOMMENDED ACTION 1. Adopt a resolution approving Variance No. 2005-66 as conditioned to allow a reduction in parking. 2. Adopt a resolution approving Variance No. 2005-67 as conditioned for a reduction in setbacks. DISCUSSION Request of Applicant Nexus Development Corporation is requesting approval of two variances in order to allow a 932 square foot addition to an existing retail center at 2 East Hutton Centre Drive. Specifically, the applicant is proposing a reduction in required parking and a reduction in a landscaped setback. Property Description The subject site is a 13,600 square foot restaurant and retail building that was constructed in 2001. It is located within Hutton Centre, a master planned, 43-acre mixed-use development located on the south side of MacArthur Boulevard between Main Street and the Newport-Costa Mesa (SR-55) Freeway. Hutton Centre contains approximately 1,450,000 square feet of office area, consisting of two 14-story office buildings, two 10-story office buildings and two 8-story office buildings. In addition, a 174-room, 84,210 square foot DoubleTree Club hotel and four 6-story parking structures are found within Hutton Centre (Exhibits 1 and 2). EXFIIBIT A 31 A-2 Variance Nos. OS-66 and 05-67 January 9, 2006 Page 2 The project site is zoned Specific Development No. 76 (SD-76) and has a General Plan land use designation of District Center (DC). Surrounding land uses include the MacArthur Place mixed-use development to the north, the Newport-Costa Mesa (SR-55) Freeway and the City of Costa Mesa to the east, office development to the south and the Sandpointe residential neighborhood to the west. Project Description 2 Hutton Centre is a 13,569 square foot retail center with nine retail and restaurant tenants. The applicant is proposing to expand the center and add 932 square feet to the south end of the center, bringing the total square footage to 14,501. The addition will be constructed to match the architecture of the existing building as well as incorporate identical materials and paint color. To accommodate a new outdoor seating area, four parking spaces will be removed in front of the new storefront. This seating area, intended to accommodate approximately 30 patrons, will incorporate enhanced paving, perimeter landscaping and a shade canopy that matches the existing canopy. A new pedestrian entrance is also proposed at the northwest corner of the project site. This entrance will enhance pedestrian access to the development by allowing direct access into the center from the MacArthur Boulevard/Hutton Center Drive intersection, which is a heavily used pedestrian pathway. The improvements will include a new stair entry leading into the retail center and landscape planters around the stairs perimeter (Exhibits 3, 4, 5 and 6). Analysis o£ the Issues Parkinq Variance The applicant is requesting a variance from Section 41-1341 of the Santa Ana Municipal Code (SAMC) to allow a reduction in required parking. Based on code requirements, a total of nine additional parking spaces are required for the new square footage. In addition, four parking spaces will be removed to accommodate the new outdoor seating area. Therefore, the applicant is requesting approval for a reduction in 13 parking spaces. Nexus Development is providing parking for 2 Hutton Centre within their 807 space parking garage for the Lake Towers. The Lake Towers entitlements accommodated the 62 parking spaces that were to be removed for the Lake Towers and provided adequate parking for the retail and restaurant uses within 2 Hutton Centre Drive. 31 A-3 Variance Nos. 05-66 and 05-67 January 9, 2006 Page 3 Although the 13 additional parking spaces needed for the proposed expansion were not a part of the MacArthur Place entitlements, the 13 parking spaces can be accommodated. A shared parking study was prepared by Kaku Associates, Inc. by using the Urban Land Institute's (ULI) shared parking methodology. The shared parking analysis identified a weekday peak parking demand of 1,696 spaces and a weeknight peak demand of 1,783 spaces. Peak utilization during the weekend would be 1,807 spaces during the evening when the restaurants are the busiest (Exhibit 7). Since the MacArthur Place South development will supply a total of 1,896 spaces, the proposed parking supply is adequate to meet both the demand of the MacArthur Place project and the 2 Hutton Centre expansion. Setback Variance The applicant is requesting approval of a variance to reduce the required building setback on Hutton Center Loop from 25 feet to 10 feet. If approved, the proposed setback will be consistent with the reduced setback approved for the Lake Towers project and will assist in continuing the urban project theme of MacArthur Place South. For example, urban projects generally consist of elements that have been incorporated into this project, such as a reduced setback (from the code required 15 feet) and enhanced pedestrian pathways. Conclusion The 2 Hutton Centre project is in compliance with various policies outlined in the General Plan Land Use Element. The development of this site with quality materials and finishes, and the continuation of pedestrian linkages to other existing developments will complement the recently entitled MacArthur Place South development. Therefore, based upon an analysis of the project and the project's compatibility with the City's General Plan and applicable development standards, staff recommends that the Planning Commission approve Variance Nos. 2005-66 and 2005-67 as conditioned. 31 A-4 Variance Nos. 05-66 and OS-67 January 9, 2006 Page 4 CEQA Compliance In accordance with the California Environmental Quality Act, the recommended action is exempt from further review pursuant to Section 15303. This Class 3 exemption allows the expansion of existing commercial buildings up to an additional 10,000 square feet of floor area. Categorical Exemption No. 2005-166 will be filed for this project. r J i! j v~ Vince Fregosq, AICP Senior Planner VF:jm of/reports/VA05-666VA05-6].pc 31 A-5 I__11__I __11 \~ I 'I R1 II ~~~c'i /.n . u II I i ~: _y I. _-- ~ n III iII R1 II~_, JII R1 Ili n~ iCR --- ~` - ~ I~__II II II--~i I` I' ___ ___ _li II II II II II___ II __ n rr _1==~___ Ilf_ _ __ - _ II _x -_ ~ "wre.. ~ I 0 R1 ~ `" ~j s .A ~ r CR Mt [ .q R1 •V. R1 _ - s~ER.aa ~ _ _ ~ ~~Sp~43 k R1 N a ~ SD-43 rs.~o 0 R1~ R1 R1 z R1 ' Ri N Ri a C4 ~ SD-43 3 ~ .N R1 s ~ ~A~w. CS ~ PI PI MACARTHUR BL. al vPO i-Pflo I _ _ k CS ~ C2 ~~ ~ Pb P1~PflD . P ,r I PHD PD C4 CL\ ~Rt i Rl- x PPD . PPD ~ d PL PPD ?~ PPD / PI P110 V F4PP0 C2 +' .~ R1 R1 PI R1a5 1 0 N PL a R1 PI R1 R] nRt P1 ~ Mi ~ P1 ~~ R1 C58 i i SiEVESUNFLOWER AV. - C2 ~~P FQ~ yy C i t y o f C o 5 1 a M e s a cirr or r~srin Al GENERAL AGRICULTURAL CR COMMERCIAL RESIDENTIAL R1 SINGLE FAMILY RESIDENTIAL -B PgRNING MODIFICATION GC GOVERNMENT CENTER R2 TWO FAMILY RESIDENCE C-SM COMMERCIAL SOUTH MAIN M} LIGHT INDUSTRIAL R3 MULTIPLE FAMILY RESIDENCE C1 COMMUNITY COMMERCIAL M2 HEAVY INDUSTRIAL R4 SUBURBANAPARTMENTS C1-MD COMM. COMMERCIAUMUSEUM DISTRICT MO MILITARY OPERATIONS RE RESIDENTIAL ESTATE C2 GENERAL COMMERCIAL 0 OPEN SPACE SD SPECIFIC DEVELOPMENT C3 CENTRAL BUSINESS P PROFESSIONAL SP SPECIFIC PLAN C&A CENTRAL BUSINESS-ARTIST VILLAGE PCD PLANNED COMMUNITY DEVELOPMENT C4 PLANNED SHOPPING CENTER PRD PLANNED RESIDENTIAL DEVELOPMENT CS ARTERIAL COMMERCIAL ~~ VA 05-66 & 05-67 ~ ~"~-'~,~,_ NEXUS DEVELOPMENT CORPORATION ~'' 2 HUTTON CENTER DRIVE - =5°° FEET ,' = 1000 FEET P L A N N I N G A N D B U I L D I N G A G E N C Y EXHIBIT 1 31 A-6 M1 M1 ~fi~ Mi I' ll __ IJ M2 P ~ M1 M1 SD-43 SERVICE STATION SERVICE F F STATION W W W tR ~ ~ Zti 4W ~~ ~y ~W ~Q SI GLE AM R IDE IAL MURPHY AV. J W J W Q N F. ~ 2 Z W W 0 0 ~ W ~ 0 W J W Q Q Q z Q M III TI FAMILY RESIDENTIAL H O T E L I I C A N - MACARTHUR BOULEVARD) 1` RETAII B LOW RISE CONDOS RESTAURANTS W P[ATA J TOWER O / PROJECT SITE lOW R9E O W 2 Z7 V j~ U -1 O LAKE TOWER N Q ~ ~J NORTH - CONWS ¢ R ¢ W 3 y 2 O V W H 2 U LAKE Z LAKE TOWEH SWTN 201 SANDPOINTE ~ AVE ~ J 2 L7 PARKING y O F F I C E HOTEL a OFFICE O F F I C E O F F I C E LL O ~Q ~~ V~ O~ ~J~ / / ~~Qi P~`' e`' VA 05-66 & 05-67 NEXUS DEVELOPMENT CORPORATION " 2 HUTTON CENTER DRIVE ~'' P L A N N I N G A N D B U I L D I N G A G E N C Y EXHIBIT 2 31 A-7 I. F ?;~, , ~:: i i I 1 ~~ - I a~ ~ ~ ~~ ./ ~3~~E~d ~ $E~~ ax 443 2e ~Y$~ax4 $ c .5R a ~ ~~ as ~ ~ / ~` / ~` i i ~ ~ / \ ( I -. . tl ~. ~\ r ~\ ~~ ' ~_ ~~ ~ .. we ~ , . . ~ n s E ~ 8' . L .._ _ ~ ~ . r ,. ~o.ewe~~wmv {{ ££ !~ € S~sp£>~{kw 4e~iGi ~M E xiY~'~add ~$~~#6~u ~h~~l 3 g~~~ ~ `» a~ 33 yg p£ F: mR ~~f E 23~~~gp 3~ E &a~ 3# gg ~~$a~E3 ~~x@t2 ~~~5°~~g ~aktm€P3 _ ~ ~ ~ ? J r,i. c `u y N f~ f~l /~~ /~ /' `\ ~~~ '~ a$. g~d ~) O _O O W O O m d V~ ~~03 67 Page 1 of 2 ~f ! - ~j ~/ . ~/, ~/ /' / .I .. -. i i _ i / .1'I °'~ m ~~ ,/. _. \ `~. - 1 ~~ ~ ~ m ~ ~ ~ ~~~~ l~ ~ I r , Q I do i ~ ~t, ---'e ~. ~_ ~ ~~ ~ ~,~~~ __ a ~ .~,, ~~ I~ 1 r. _.~ I I I -ip ielve,9 uoyr,H /,~~__~ /~ f-~ -i!'7 O O Cam' C ~~ ~..) l.a.i 31 a9f z ~ ' l ' ! t~ ~, r i r;i <, r_ , ' ' . iI ~~ N ,, ~., q 0 0 N U w O VA 05-66 & 05-67 31~F"-~Ci 4 ~.y. ~iy,: { l ~~ ~ > ~ ~ v w 5 0 '' ~___. f,- .. ~_ --_, _i moCO rl ~ ~ _ t X O N n ~ o ~ wmw N !.' <.~ I w ~ ~ Q t o ~ `s i w ~ x i Z ~ E 5 s ? t o i a I JI v w W _1',Ip ~, '~~ l I il', ~+ 4 ;; y ~~ ~~ f: Z Q C O w 0 W ,' '~- ~~ ~~0~56§~05 67 ~'?~ ~~~° rl~)= '~~ -`~ 6 i ~~ I i II i 1~1 ,--~ No~sNed»,~e~3~ 3~~N3~ No~~~H Vld~~~~~~~~,~~~~~~~~ ~ ~ ~ _ J c N~fld?J31SVW3~ Jf1H1?JY~aW ~ a .. ' , ~. -- _. _ o N U w A i es ~ _. I ~~ i k 3 y i ~~ I w ~ ~ ~.S 1 ~\.. 'S +N ~ _ t - .. '''~~ ~~ ~) ~"('~'r s ~~~ ~s~ I TABLE 7 SHARED PARKING ANALYSIS SUMMARY PARKING SUPPLY vs. SHARED PARKING DEMAND AREA WEEKDAY Da time Ni httime WEEKEND Da time Ni httime CINEMA Supply 449 949 949 949 Demand 425 436 411 461 Occupied 94.7% 45.9% 43.3% 48.6% Available Spaces 24 513 538 488 LAKE Supply 807 807 807 807 TOWER Demand 711 753 711 753 Occupied 88.1% 93.3% 88.1°fo 93.3% vailable Spaces 96 54 96 54 TOTAL Supply 1,896 2,396 2,396 2,396 SfTE Demand 1,696 1,783 1,667 1,807 Occupied 89.5% 74.4% 69.6% 75.4% Available S aces 200 613 729 589 V q~-66 & 05-67 31 A ~IpcHIBIT 7 KO - 1 /4/06 RESOLUTION NO. 2006-001 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING VARIANCE NO. 2005-66 AS CONDITIONED TO ALLOW A REDUCTION IN PARKING; AND VARIANCE NO. 2005-67 AS CONDITIONED TO ALLOW A REDUCTION IN SETBACKS FOR THE PROPERTY LOCATED AT 2 HUTTON CENTRE DRIVE BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Applicant is requesting approval of Variance No. 2005-66 to allow the reduction in parking and Variance No. 2005-67 to allow a reduction in setbacks in order to allow a 932 square foot addition to an existing retail center at 2 East Hutton Centre Drive. B. Variances Nos. 2005-66 and 2005-67 came before the Planning Commission of the City of Santa Ana for a duly noticed public hearing on January 9, 2006. C. Variance No. 2005-66 has been filed with the City of Santa Ana seeking a reduction in parking for the site. Based on Santa Ana Municipal Code §41-1341, a total of nine additional parking spaces are required for the new square footage. In addition, four parking spaces will be removed to accommodate the new outdoor seating area. Therefore, the applicant is requesting approval for a reduction in 13 parking spaces. 1. Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a Variance upon making certain findings. The Planning Commission determines that the findings necessary to grant the Variance have been established: That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, that the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this Chapter. Resolution No. 2006-001 31 A-14 Page 1 of 7 Hutton Centre is a contained site surrounded by existing commercial and residential developments. The parking analysis for the MacArthur Place South development determined that sufficient parking will be provided for the project during times of peak demand. The variance will allow the applicant the ability to use the property in a manner consistent with similar surrounding commercial, residential and professional uses. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of the variance to allow a 13 space reduction in the parking requirement will preserve the property owner's ability to expand the center with additional restaurant tenants that are consistent with the Specific Development No. 76 (SD-76) zoning district. iii. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The granting of the variance to allow reduction in parking will not be materially detrimental to the public welfare or injurious to surrounding property. Adequate parking will be provided within surface parking lots and parking structures to accommodate the proposed expansion. iv. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance to allow reduction in parking requirement will not adversely affect the General Plan of the City since the proposed project has been designed in conformance with City Zoning, Development, and General Plan requirements except for the parking and setback requirements. General Plan Land Use Element Policy 2.2 supports commercial uses in adequate amounts to accommodate the City's needs for goods and services. Resolution No. 2006-001 31 A-15 Page 2 of 7 D. Variance No. 2005-67 has been filed with the City of Santa Ana seeking to reduce the required building setback on Hutton Center Loop from 25 feet to 10 feet. Santa Ana Municipal Code Section 41-638 authorizes the Planning Commission to grant a Variance upon making certain findings. The Planning Commission determines that the findings necessary to grant the Variance have been established: That because of special circumstances applicable to the subject property, including size, shape, topography, location or surroundings, that the strict application of the zoning ordinance is found to deprive the subject property of privileges not otherwise at variance with the intent and purpose of the provisions of this Chapter. The proposed setback reduction will allow the applicant the ability to create pedestrian linkages among the various land uses within Specific Development No. 76 (SD-76) and to create an "urban edge" design concept by providing reduced setback along Hutton Center Drive. The proposed setback reduction will be consistent with the setback approved for the MacArthur Place project. ii. That the granting of a variance is necessary for the preservation and enjoyment of one or more substantial property rights. The granting of the setback variance will preserve the property owner's ability to develop the property within a well-designed project that is consistent with the SD- 76 zoning district. Upgrade architectural materials and landscape palette will be incorporated throughout the proposed project to compensate the reduced setbacks. iii. That the granting of a variance will not be materially detrimental to the public welfare or injurious to surrounding property. The granting of the setback variance will not be materially detrimental to the public welfare or injurious to surrounding property. The reduced setback will be consistent with the adjacent MacArthur Place South project. Resolution No. 2006-001 page 3 of 7 31A-16 iv. That the granting of a variance will not adversely affect the General Plan of the City. The granting of the variance will not adversely affect the General Plan of the City since commercial uses are permitted by the District Center General Plan land use designation. E. In accordance with the California Environmental Quality Act, the recommended action is exempt from further review pursuant to Section 15303. This Class 3 exemption allows the expansion of existing commercial buildings up to an additional 10,000 square feet of floor area. Categorical Exemption No. 2005-166 will be filed for this project. Section 2. The Planning Commission after conducting the public hearing hereby: A. Approves Variance No. 2005-66, to reduce the parking requirement for the property located at 2 Hutton Centre Drive, as wnditioned in Exhibit A attached hereto and incorporated as though fully set forth herein. B. Approves Variance No. 2005-67, to reduce the setback requirement for the property located at 2 Hutton Centre Drive, as conditioned in Exhibit B attached hereto and incorporated as though fully set forth herein. These decisions are based upon the evidence submitted at the abovesaid hearing, which includes but is not limited to: the Request for Planning Commission Action dated January 9, 2006 and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. ADOPTED this 9th of January, 2006 by the following vote: AYES: Commissioners: Betancourt, Cribb, De La Torre, Gartner, Leo, Lutz NOES: Commissioners: ABSENT: Commissioners: ABSTENTIONS: Commissioners: (6) None (0) Rodriguez (1) None (0) Christopher Leo Vice-Chairman 31A-17 Resolution No. 2006-001 Page 4 of 7 APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Kylee O. Otto Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Martha Ramirez, Planning Commission Secretary, do hereby attest to and certify the attached Resolution No. 2006-001 be the original resolution adopted by the Planning Commission of the City of Santa Ana on January 9, 2006. Date: Planning Commission Secretary City of Santa Ana Resolution No. 2006-001 31 A-1 ~ Page 5 of 7 Conditions for Approval for Variance No. 2005-66 Variance No. 2005-66 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the Uniform Fire Code, the Uniform Building Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval: The applicant must comply with each and every condition listed below rip or to exercising the rights conferred by this variance. The applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may result in the revocation of the variance. A. Planning Division All proposed site improvements must conform with the Site Plan Review approval of DP No. 05-53. Any amendment to this variance must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or the variance must be amended. 3. A maximum of nine tenant spaces shall be allowed at the center. Exhibit A Resolution No. 2006-001 Page 6 of 7 31A-19 Conditions for Approval for Variance No. 2005-67 Variance No. 2005-67 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the Uniform Fire Code, the Uniform Building Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval: The applicant must comply with each and every condition listed below rip or to exercising the rights conferred by this variance. The applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may result in the revocation of the variance. A. Planning Division All proposed site improvements must conform with the Site Plan Review approval of DP No. 05-53. 2. Any amendment to this variance must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or the variance must be amended. A maximum of nine tenant spaces shall be allowed at the center. Exhibit B Resolution No. 2006-001 Page 7 of 7 31 A-20 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: TRANSFER OF DEVELOPMENT THE INTEGRAL LOW RISE CO AT MACARTHUR PLACE SOUTH ~pcalln~ ~y~ CLERK OF COUNCIL USE ONLY: APPROVED RIGHTS FOR ^ As Recommended NDOMINIUMS ^ As Amended ^ Ordinance on 1s' Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CITY MANAGER RECOMMENDED ACTION CONTINUED TO FILE NUMBER Direct the City Manager to authorize the transfer of development rights for the Integral Partners low-rise condominium project to Western Pacific Housing, Inc., a subsidiary of D.R. Horton with such non-substantive changes as may be approved by the City Manager and City Attorney. On June 20, 2005, the City Council approved numerous entitlements requested by Nexus Development Corporation for MacArthur Place South, a mixed-use project within Hutton Centre. These entitlements included a development agreement for the entire development as well as a conditional use permit, tentative tract map and a variance for a 276 unit low-rise condominium development to be constructed by Integral Partners Development, LLC. Since the projects approval, Integral Partners has elected to sell its development rights for this project to Western Pacific Housing, Inc., a wholly owned subsidiary of D.R. Horton. Western Pacific is the D.R. Horton subsidiary responsible for all residential development in Southern California. Section 4.2 of Development Agreement No. 2005-02 allows for the transfer of development rights to another party with City Council approval. Prior to the transfer, the Development Agreement requires a review of D.R. Norton's development experience and financial capability to ensure it has the financial capability and development experience that is equal to or greater than Integral. Further, the transfer of rights will include an assignment and assumption agreement confirming that the duties, obligations and liabilities from this Agreement are assumed by D.R. Horton. This ensures that the plans approved by the Planning Commission and City Council, together with all conditions and requirements, are fully satisfied. 31 B-1 Transfer of Development Rights for the Integral Low Rise Condominiums February 6, 2006 Page 2 Staff has reviewed various financial information concerning D.R. Horton. According to the most recent data, D.R. Horton was the number one homebuilder in the United States, with over 53,000 homes sold in 2005 and was the third largest homebuilder in terms of revenue with over $11 billion dollars. Also, its expertise in building various types of housing, including single-family, multi-family and urban infill projects, substantiates its solid track record in developing the low-rise condominiums. D.R. Horton/Western Pacific Housing has a variety of similar projects that are presently under construction or which have been completed, including a 251-unit mixed use project in Anaheim, a 220-unit project in Garden Grove and a 263-unit development in San Diego. Reference checks regarding these similar projects and D.R. Horton/Western Pacific Housing's overall ability to perform have also confirmed a successful track record. Construction of the low-rise residential condominium project will not commence until permits have been obtained and substantial construction has begun on either the Lake Towers or Cinema Tower projects. Substantial construction consists of foundation work for the towers, including structural steel work and the pouring of concrete. D.R. Horton/Western Pacific Housing is an experienced, fiscally sound company that has the capabilities to construct the low-rise condominium project. Therefore, staff recommends that the City Council authorize the City Manager to execute documents transferring the development rights for the 276-unit low-rise condominium project to D.R. Horton. FISCAL IMPACT There is no fiscal impact associated with this action. M. Trevino x cutive Director P1 nning & Building Agency VF:rb of \repor[s\in[egralt rane Eer.cc 31 B-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: TRANSFER OF DEVELOPMENT RIGHTS FOR THE NEXUS LAKE TOWERS HIGH RISE CONDOMINIUMS AT MACARTHUR PLACE SOUTH RECOMMENDED ACTION ^ As Recommended ^ As Amended ^ Ordinance on 1~' Reading ^ Ordinance on 2ntl Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the City Manager to authorize the transfer of development rights for the Nexus Lake Towers high-rise condominium project to MacArthur Towers, LLC, a subsidiary of Intracorp, Los Angeles, LLC with such non- substantive changes as may be approved by the City Manager and City Attorney. DISCUSSION On June 20, 2005, the City Council approved numerous entitlements requested by Nexus Development Corporation for MacArthur Place South, a mixed-use project within Hutton Centre. These entitlements included a development agreement for the entire development as well as a conditional use permit, tentative tract map and variances to allow a 349 unit high- rise condominium development to be constructed by Nexus Development. Since the project's approval, Nexus has elected to sell its development rights for the Lake Towers component to Intracorp Los Angeles, LLC. Intracorp Los Angeles, LLC is affiliated with the Intracorp group of companies, a developer of urban infill projects across the nation. Intracorp Los Angeles, LLC is the subsidiary responsible for residential development in Southern California and will be forming a special purpose entity, MacArthur Towers, LLC, to develop this project. Section 4.2 of Development Agreement No. 2005-02 allows for the transfer of development rights to another party with City Council approval. Prior to the transfer, the Development Agreement requires a review of Intracorp's development experience and financial capability to ensure Intracorp has the financial capability and development experience that is equal to or greater than Nexus. Further, the transfer of rights will include an assignment and assumption agreement confirming that the duties, obligations and liabilities from this Agreement are assumed by Intracorp. This ensures that the plans approved by the Planning Commission and City Council, together with all conditions and requirements, are fully satisfied. 31 C-1 ~~ ~„w~i F,1ucaNon Est CLERK OF COUNCIL USE ONLY: APPROVED Transfer of Development Rights for the Nexus High Rise Condominiums February 6, 2006 Page 2 Staff has reviewed various financial information concerning Intracorp. Intracorp is a stable, financially sound company with the financial ability to complete the project. Also, its expertise in building various types of housing, including mixed-use urban infill projects and multi- family residential substantiates its solid track record in developing the high-rise condominiums. Intracorp has a variety of similar projects that are presently under construction or which have been completed, including The Cove, an 18-story, 138-unit high rise in Marina Del Rey and the West Ocean Towers, a 22 and 29 story tower project with 246-units in Long Beach. Reference checks regarding these similar projects and Intracorp's overall ability to perform have also confirmed excellent working relationships with municipalities as well as a successful track record of completed projects. Intracorp is an experienced, fiscally sound company that has the capabilities to construct the high-rise condominium project. Therefore, staff recommends that the City Council authorize the City Manager to execute documents transferring the development rights for the 349-unit high-rise condominium project to MacArthur Towers, LLC, a subsidiary of Intracorp, Los Angeles, LLC. FISCAL IMPACT There is no fiscal impact associated with this action. a M. Trevino cutive Director Planning & Building Agency VF:rb of\re po rtsANexu st=an sfex.cc 31 C-2 REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 6, 2006 TITLE: i ~. CLERK OF COUNCIL USE ONLY: PROPOSED AMENDMENTS TO CLASSIFICATION AND COMPENSATION PLANS AND ANNUAL BUDGET t%~~ ITY MANAGER RECOMMENDED ACTION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a Resolution that amends the City's Basic Management and Non- Management Classification and Compensation Plans (Resolution Nos. 91-066 and 82-110) and amends the Fiscal Year 2005-06 Annual Budget to reflect these changes. DISCUSSION The following proposed changes are part of an ongoing effort to ensure that the City's Basic Classification and Compensation Plans reflect current organizational needs and establish salary rates at market competitive rates with equity between job classification pay levels. I. Proposed Addition of New Part-time Classification Title The Police Chief is requesting the creation of a part-time job classification titled Professional Standards Investigator. This classification will conduct background investigations of new employees and will ensure continuity in work quality and standards during transitional periods when full-time personnel are transferred into and out of the section. II. Proposed Addition of New Full-time Classification Titles and Po: cation Changes ition The Executive Director of Finance and Management Services recently completed an organizational review of his agency's budget function following the departure of the City's Budget and Research Manager earlier this fiscal year. As a result of this review, the Executive Director is proposing the 55A-1 ~s Classification/Compensation Plan February 6, 2006 Page 2 creation of two classifications titled Budget Analyst and Senior Budget Analyst. Like the Budget and Research Manager classification, these two job classes will be responsible for preparing and monitoring the City's budget; however, both will be non-management (the latter classification will include supervisory authority). The Executive Director is further proposing to fill one position by reallocating a vacant and funded Senior Management Analyst position to Senior Budget Analyst. The Executive Director of Personnel Services is requesting the creation of a mid-management classification titled Assistant Director of Personnel Services. This position will serve as the City's chief labor negotiator and will perform responsible administrative and managerial work in planning, organizing and directing the activities of the Personnel Services Department. The position will also act as Executive Director in the incumbent's absence. In order to staff this new job title, the Executive Director requests a budget reallocation in which the department's Employee Relations Manager position be reallocated to Assistant Director of Personnel Services. FISCAL IMPACTS The fiscal impact figures below represent estimated costs for the remainder of the fiscal year. Creation of part-time job classification: no fiscal impact Reallocation of Senior Management Analyst (UC) to Senior Budget Analyst (UC) no fiscal impact Reallocation of Employee Relations Manager (MM) to Assistant Director of Personnel Services (MM) $2912 APPROVED AS TO FUNDS AND ACCOUNTS: nrique J. A a Execut'v D r for Personnel Services Francisco Gutierrez Executive Director Finance and Mgmt. Services Agency ~~%- Paul Wal s j~`~'Police Chief Police Department 55A-2 RESOLUTION NO.2006- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NOS. 82-110, 91-066, and 91-067 TO EFFECT CERTAIN CHANGES TO THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLANS, AND TO AMEND THE CURRENT ANNUAL BUDGET TO REALLOCATE TWO FULL TIME POSITIONS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On August 2, 1982, the City Council passed and adopted Resolution No. 82-110, revising and re-establishing the Basic Classification and Compensation Plan for Officers and Employees of the City of Santa Ana. C. On July 1, 1991, the City Council passed and adopted Resolution No. 91- 066, re-establishing the Basic Classification and Compensation Plan for classes of employment designated as unrepresented Executive Management (EM) and Middle Management (MM). D. On July 1, 1991, the City Council passed and adopted Resolution No. 91- 067, re-establishing the Basic Classification and Compensation Plan for classes of employment designated as Unaffiliated Confidential (UC). E. On June 20, 2005, the City Council passed and adopted Ordinance No. NS-2687, which establishes the City's Annual Budget, authorizing position allocations for Fiscal Year 2005-2006, and which sets forth the requirement that alterations in the allocation of authorized positions be reviewed and approved by the City Council. F. It is the City's practice to assign job titles that reflect the duties and responsibilities of the classification and are consistent with other classifications within the City's organizational structure as well as comparable job titles in the labor market. 55A-3 G. The Executive Director of Finance and Management Services proposes to create two new full time classification titles, and to reallocate one full time position in the current Annual Budget. H. The Police Chief proposes to create one new part time classification title. The Executive Director of Personnel Services proposes to create one new full time classification title, and to reallocate one full time position in the current Annual Budget. J. It is now desired to amend Council Resolution Nos. 82-110, as amended, 91-066, as amended, 91-067, as amended, and the Fiscal Year 2005- 2006 Budget, as amended, in order to effect these changes. Section 2: That Section 3.5.1 Class Titles and Wage Rates for seasonal and Other Unaffiliated Cateoories of Non-Civil Service Part-Time Emoloyment of Resolution No. 82-110, as amended, be further amended by adding the following part-time title, assigned to the five (5) hourly pay steps set forth below: Basic Hourlv Waoe Rates Effective 2/06/06: Class Title Step A Step B Step C Step D Step E Professional $24.44 $25.66 $26.95 $28.30 $29.72 Standards Investigator Section 3: That Section 3B of Resolution No. 91-066, as amended, is hereby further amended by: A. adding the classification title of Assistant Director of Personnel Services at the fifteen-step salary rate range of MM-26 ($86,652-122,412). B. designating the newly created classification title of Assistant Director of Personnel Services as Middle Management by assigning the parenthetical identifier "MM" after this classification title. Section 4: That Section 3.1 of Resolution No. 91-067, as amended, is hereby further amended by: A. adding the following classification titles at the Salary Rate Ranges and effective dates indicated: 6-Step Salarv Rate Range (SRRI Effective 02/06/06 Class Title SRR Annual Salarv (Min-Marx Budget Analyst 624 ($52,584-67,152) Senior Budget Analyst 653 ($60,612-77,352) 55A-4 B. designating the newly created classification titles of Budget Analyst and Senior Budget Analyst as Unaffiliated Confidential by assigning the parenthetical identifier "UC" after these classification titles. Section 5: That the Annual Budget for Fiscal Year 2005-2006, as amended, shall be further amended by: A. reallocating one position in Finance and Management Services from the classification title of Senior Management Analyst (UC) to Senior Budget Analyst (UC) with no change in salary. B. reallocating one position in Personnel Services from the classification title of Employee Relations Manager MM-23 ($80,460-113,676) to Assistant Director of Personnel Services MM-26 ($86,652-122,412). Section 6: That except as amended by this Resolution, all other provisions of Resolution No. 82-110, as amended, Resolution 91-066, as amended, Resolution 91- 067, as amended, and the Annual Budget for Fiscal Year 2005-2006, as amended, shall remain in full force and effect. Section 7: That this Resolution shall be operative from and after February 6, 2006. ADOPTED this _ day of February, 2006. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By: Joseph Straka Assistant City Attorney 55A-5 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Glerk of the Council, do hereby attest to and certify the attached Resolution No. 2006-_ to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 55A-6 REQUEST FOR _~t,1~ COUNCILIAGENCY ~"'~ ~~ ACTION ti,~a"°°,s~ MEETING DATE: CLERK OF COUNCIL USE ONLY: FEBRUARY 6, 2006 TITLE: GUARANTY AGREEMENT TO PROVIDE FINANCIAL ASSISTANCE FOR THE BOWERS MUSEUM EXPANSION APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO ~a,~,,,t, w.~ ~ FILE NUMBER -_ CITY MANAGER EXECUTIVE DIRECTOR RECOMMENDED ACTION CITY COUNCIL ACTION/COMMUNITY REDEVELOPMENT AGENCY ACTION Direct the City Attorney/Agency General Counsel to prepare and authorize the City Manager and the Executive Director of the Community Redevelopment Agency to execute and the Clerk of the Council/Agency Secretary to attest to a Guaranty Agreement between the Community Redevelopment Agency of the City of Santa Ana, the City of Santa Ana, the Bowers Museum Corporation, and the East West Bank. COMMUNITY REDEVELOPMENT AGENCY ACTION Direct the Agency General Counsel to prepare and authorize the Executive Director to execute a Repayment Agreement between the Agency and the Bowers Museum Corporation. DISCUSSION The Bowers Museum Corporation operates and maintains the City of Santa Ana owned Charles M. Bowers Museum of Cultural Art pursuant to a 2001 Amended and Restated Operating Agreement. The Corporation began management of the Museum on behalf of the City in 1987. In September 2005, the City Council and the Redevelopment Agency approved and authorized several actions to facilitate the $14 million expansion of the Bowers Museum. Commencement of construction of the improvements is scheduled to begin shortly. Thus far, the Board of Governors of the 80A-1 Guaranty Agreement to Provide Financial Assistance for the Bowers Museum Expansion February 6, 2006 Page 2 Bowers Museum Corporation has fundraised over $12 million toward the expansion, but needs additional monies to completely fund the construction. As part of the project financing, East West Bank of San Marino, California will issue a $4 million stand-by line of credit (LOC) to the Corporation toward the construction. If the funds are accessed, the Corporation intends to repay the obligation through continued fundraising. However, the Bank requires credit enhancement as condition of funding the LOC. The primary enhancement will come from Bowers Board Chairman Emeritas Donald Kennedy in the form of a primary $3 million guaranty. The Agency's assistance will be in the form of an additional $1 million guaranty. The Agency's asset to secure the funds is the pledgable tax increment generated by the Merged Redevelopment Project Area. The Agency's guaranty is subordinate to Mr. Kennedy's guaranty and is necessary to ensure the expansion and redevelopment of the Museum in that other funds for this purpose are not reasonably available. If funds are drawn under the Agency's guaranty, repayment by the Corporation will be secured by the Corporation's receipts from the City of Santa Ana under the 2001 Museum Operating Agreement. Up to twenty-five percent of each year's allocated internal administrative expenses reimbursed by the City under the operating agreement shall be paid to the Agency until any guaranty payments are made. FISCAL IMPACT There is no immediate fiscal impact associated with this action; however, the Agency may be required to identify funds and to make payment at some point in the future to East West Bank in an amount not to exceed $1,000,000. V V Patricia C. Whitaker Executive Director Community Development Agency PCW/JF/JL/mlr APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez ~,,r~ Executive Director \\'~~1I~~:J/// Finance and Management Services Agency H: \ACTIONS\2006 CC\JT CC-CRA GuarAgzeetoProvideFinancialASSistfcrSOwessExpansicn 2-6-06.doc 80A-2