HomeMy WebLinkAbout1991-01-29 - AGENDA REPORTS - RECYCLING FRANCHISE AGMT (2)NEW BUSINESS
DATE: January 29,. 1991
SUBJECT: REFUSE/RECYCLI
DEPARTMENT: Public Work
BACKGROUND V
AGENDA REPORT
City Manager Approval
Item to be presented by:
John E. Medina, Director
FRANCHISE AGREEMENT
At tonight's meeting staff brings to Council the proposed Refuse/Recycling
Franchise agreement between the City and Atlas Disposal Company, Blue Barrel
Disposal Company and Santa Clarita Disposal Company and recommends its
approval. This subject has been discussed at two previous Council meetings and
a summary of these discussions are highlighted below.
The City Council in its of September 25, 1990, approved Resolution 90-180. This
Resolution directed staff to negotiate a refuse/recycling franchise agreement
with (at that time) the City's three local residential refuse haulers known as
Atlas Disposal, Blue Barrel Disposal and Santa Clarita Disposal. This was based
on the following reasons:
• The local residential haulers had established a presence in the Community.
• The local residential haulers had no significant amount of complaints.
• It was felt that fair and competitive rates could be negotiated.
• The local residential haulers are protected by the California Public
Resources Code Section 49500 with a five year phase-out period.
• Franchise program would provide necessary control for implementing AB
939 requirements.
• The local residential haulers had provided good faith demonstration of
their recycling capabilities by providing a Phase One Recycling Program
(curbside recycling at over 3,000 homes) and the newspaper drop-off
program at three City parks.
The Council at their Study Session ,of January 16, 1991 received staff
presentation of the proposed Refuse/Recycling Franchise Agreement negotiated
between the City and the three local haulers. The major items of the Conceptual
Agreement were:
• Basic Rate $16.85 per month.,
• Second refuse barrel 50% of basic rate.
• 10% franchise fees for road maintenance and household hazardous waste.
• Curbside recycling at no increased costs to residents.
• Quarterly waste sorts pursuant to AB 939.
• Spring clean-up/Christmas tree and telephone book recycling.
Attached for your review is the January 16 staff report and presentation outline.
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Agenda :da
r
i
REFUSE/RECYCLING FRANCHISE AGREEMENT
Page 2
This proposed Refuse/Recycling Franchise agreement is scheduled. to be
implemented April 1991. Between this document's execution and its
implementation, the haulers will require time to consolidate their current
routes into their designated area and receive and deliver the recycling carts to
the 25,000 residents. The recycling program for apartments and condominiums
will require the phasing in of these complexes over a period of 3 months
beginning in April because the placing or locating of recycling bins is more
complex than residential curbside recycling and may require City action.
To promulgate this proposed franchise agreement, a solid waste ordinance or an
amendment to Title 20 (the County's Code on solid waste) will need to be adopted
by the City Council. A Resolution establishing the refuse rates will also need
to be adoption by Council. Staff will bring these documents and a
recommendation to the Council in February.
RECOMMENDATION
Approve the attached Refuse/Recycling Franchise Agreement between the City and
the refuse disposal companies known. as Atlas Disposal, Blue Barrel and Santa
Clarita Disposal sans exhibit "D", the formal rate structure and execute the
agreement after the rate resolution is adopted by the Council in February.
ATTACHMENTS
Resolution 90-190
Staff Report 01-16-91 Council Study Session
Outline of Staff Presentation 01-16-91 Council Study Session
Refuse/Recycling Franchise Agreement (not attached to this report but is
contained with the agenda -packet) .
RESOLUTION NO. 90-180
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA
. DIRECTING CITY STAFF TO WORK
WITH THE CITY'S EXISTING RESIDENTIAL
REFUSE HAULER IN DEVELOPING A REFUSE/RECYCLING
FRANCHISE AGREEMENT
WHEREAS, the City of Santa Clarita is mandated by the California
Integrated Waste Management Act, AB 939, to analyze its solid Waste
composition and develop recycling and source reduction plans.
WHEREAS, City staff recommends a refuse/recycling franchise
agreement for the City to assist in integrating its solid waste disposal pians.
WHEREAS, Atlas Disposal, Blue Barrel Disposal and Santa Clarita
Disposal are the only three residential refuse haulers currently operating
with the City.
'6
WHEREAS, the three aforementioned disposal companies have a
community presence servicing existing roads, and the City has not received a
significant amount of complaints on the service they provide.
WHEREAS, the three disposal companies will offer a competitive
household refuse/recycling rate.
WHEREAS, .State legislation protects the existing hauler by providing
a 5 -year phase -but period.
WHEREAS, in demonstration of a good faith effort, the existing
disposal companies will provide the City with a Phase One curbside recycling
program serving 3,000 homes at no cost to the City or residents.
Now, therefore, be it resolved as follow:
Section 1. That it is in the interest of the residents of Santa
Clarita that City Staff negotiate a residential refuse/ recycling franchise
argument with the City's existing residential disposal companies.
ATTEST:
PASSED, APPROVED AND ADOPTED THIS day of , 1990
CITY CLERK
MAYOR
1
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by
the City Council of the City of Santa Clarita at a regular meeting thereof,
held on the day of 1990 by the following vote of
Council:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
CITY CLERK
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CITY OF SANTA CLARITA
I N T E R O F F I C E M E M O R A N D U M
TO: Honorable Mayor and Members of the City.Council
FROM: George Caravalho, City Managerk�
4
DATE: January 16, 1991
SUBJECT: CONCEPTUAL REFUSE/RECYCLING FRANCHISE AGREEMENT
The City Council, at their regular meeting of September 25, 1990, adopted
Resolution 90-180. This Resolution directed staff to negotiate a residential
refuse/recycling franchise agreement with the City's existing residential
disposal companies: Atlas, Blue Barrel and Santa Clarita.
The basic benefits of a franchise are as follows:
• Uniform collection of refuse- and no duplication of service on the same
streets.
• Uniform collection of recyclable materials which is essential to meet the
goals of AB 939.
• City Council has control of service level and cost.of services.
• Additional benefits to residents, in our case: curbside recycling,
AB 939 waste sort, Christmas tree and telephone.book recycling programs,
spring clean up..
• Residents with service complaints could go to the City and request the
City to investigate on their behalf.
• Franchise fee, in our case 10% gross revenues, which will go toward road
maintenance resulting from the heavy refuse. trucks and for household
hazardous materials roundup.
The conceptual draft franchise agreement represents the product of efforts
between the City and the haulers to develop the best package for a progressive
solid waste agreement/program. The major points to the conceptual draft
franchise refuse/ recycling agreement are continued in the attached memorandum
from the City Engineer to the City Manager of January 7,' 1991.
Attachments
Agenda Item: Z/
CITY OF SANTA CLARITA
I N T E R O F F I C E M E M O R A N D U M
T0: George Caravalho, City Manager
.Andrea Daroca, Finance Director
Lynn Harris, Community Service Director
FROM: Jim Van Winkle, City Engineer
DATE: January 7, 1991
SUBJECT: DRAFT REFUSE/RECYCLING AGREEMENT.
Attached for your review and comment is the Draft Residential Refuse/Recycling
Agreement. Both Public Works and Atlas, Blue Barrel and Santa Clarita
disposal companies have negotiated and. finally agreed .to the terms of this
draft agreement. Should you have comments, please return themto me by
January 11 so they may be included in the final agreement staff will recommend
to the City Council.
The City Attorney has been requested -to review this draft agreement, draft
ordinances for its enactment and mandatory refuse/ recycling service and a
resolution establishing residential refuse rates. The Agreement is currently
scheduled to be brought to the Council at their January 29 meeting.
Below are points highlighting significant -.sections, -of the Agreement:
TERM: Six year "ever green." Automatic annual renewal and upon cancellation
notice, the grantee .has five years plus the balance of the sixth year to
continue services.
FRANCHISE FEE: Ten_ percent (10%) of gross revenues. Revenue from the three
haulers is estimated to. total $720,000 annually• of which approximately
$500,000 is earmarked for road maintenance and the balance to be used for
monitoring and household hazardous waste roundups. Fees will be collected on
a monthly bases.
GRANTING FEE: Grantee shall pay the City a $5,000 franchise granting fee.
CURBSIDE RECYCLING PROGRAM: Grantee shall provide at no cost to the City or
residents a curbside commingled recycling program. Each household will be
provided at no cost one 34 -gallon recycling cart.
AB 939 INDEMNIFICATION: Grantee agrees to indemnify the City against AB 939
penalties if they fail, to execute reasonable requests by the City to manage
solid waste reduction goals as established by AB 939.
DRAFT REFUSE/RECYCLING AGREEEMENT
January 7, 1991
Page 2
BASE RATE: Grantee shall not charge more than $17.70 per month per household,
a 5% increase over the current price of $16.85. This includes weekly pick up
of a 90 -gallon waste cart; two, 32 -gallon baggies or containers and two
bundles of brush; twice monthly pick up of all recyclable material collected
in provided 34 -gallon carts or any number of unprovided containers identified
with provided recycling stickers.
ADDITIONAL CART'RATE: Grantee shall not charge more than 50% of the base rate
($8.35) if a resident requests from the grantee an additional 90 -gallon refuse
cart.
FRANCHISE AREA: Grantee shall be limited to serve only one area of the City
to prevent the duplication companies operating on the same street.
HOUSEHOLDS/APARTMENTS: For the .purposes of this agreement, households are
defined as any residential units which receive individual trash service (90 -
gallon cart) and apartments as any residential units which have 3 cubic yard
bin service.
SPRING CLEAN UP: Grantee shall at no cost to the City or residents
participate in'PRIDE WEER by collecting at centralized locations bulky waste
items and then transport the waste to a landfill.
SPECIAL PICK UPS: Grantee shall annually provide the City upon request 25
special pick ups (total 75 for the three haulers).
WASTE ANALYSIS: Grantee shall provide at no cost to the City the necessary -
manpower and equipment to conduct waste sortsfor analysis pursuant.to AB 939.
CHRISTMAS TREE/TELEPHONE BOOK PROGRAM: Annually, grantee shall collect,
transport and caused to be recycled telephone books and Christmas trees._
MANDATORY REFUSE/ RECYCLING SERVICE: A complementing Integrated Solid Waste
Ordinance. requiring all residents to have refuse and recycling -services is
tied to this Agreement.
CASH BOND: Grantee shall provide a $10,000 cash bond to the City.
INSURANCE COVERAGE: Grantee shall provide the City proof of insurance naming
the City as additionally insured in the amount of $1,000,000 per occurrence,
$2,000,000 aggregate.
SERVICE COMPLAINTS: Grantee shall maintain for 24 months all service
complaints and the action taken to resolve the complaint.
RATE INCREASE: Grantee may raise residential rates using two methods:
1. Grantee may increase rates as landfill tipping fees are increased. When
tipping fees are increased by more than 25%, the. Public Works Director
shall approve or disapprove the request to increase residential rates.
.When tipping increases by less than 25%, the grantee may increase
residents' pro rata share of the tipping fee after notifying the Director
of Public Works of such intended action.
DRAFT REFUSE/RECYCLING AGREEMENT
January 7, 1991
Page 3
2. Grantee may upon Council approval increase rates annually based on the
percentage increase of the Produces Price Index from the previous year.
PERFORMANCE AND QUALITY REVIEW: Grantee shall upon City request, annually
present and participate in a public hearing on grantee's performance and
quality of service.
WASTE DIVERSION: Grantee shall provide waste stream diversion of recyclable
material on forms provided or approved by the City to comply with AB 939.
cc: John Medina, Director of Public Works
Hazel Joanes, Solid Waste Coordinator
Tim McOsker, Deputy City Attorney
/del
CITY OF SANTA CLARITA
C�
I N T E R O F F I C E M E M O R A N D U M
T0: Honorable Mayor and Members of the City Council
FROM: George Caravalho, City Manage
DATE: January 16, 1991
SUBJECT: Supplement to Study Session Item 4 "Conceptual Refuse/Recycling
Franchise Agreement"
The staff report for this item contains data which has been modified since its
posting.
The original report lists the base refuse/recycling rate at $17.70. Staff has
successfully negotiated that haulers not go above $16.85 until January 1,
1992 (not counting tipping fees) and the City will not charge the haulers the.
franchise fee until January 1, 1992.
This change requires the re -calculation of proposed franchise fees.
Based on the residential/recycling rate of $16.85:
- Haulers' Total Anticipated Annual Reciepts $6,929,611
- Proposed Franchise Fee = 10`b
- Annual Franchise Fee To City for Road
Maintenance, Household Hazardous Wastes
and City Costs ............................$ 692,961
Attached for your convenience is staff's outline for tonight's presentation
with the acompaning computer charts.
Staff will be ready to address your question at tonight's meeting.
/del
cc: John Medina, Director of Public Works
C�
OUTLINE SUMMARY
REFUSE/RECYCLING PRESENTATION
January 16, 1991 Council Study Session
I. STRATEGIC PLAN (1989) INVESTIGATE FRANCHISE
A. The 1989 - 1992 Strategic Plan
• Items Eight and Nine
• Evaluate solid waste disposal recycling proposals and
alternatives.
B. Public Works recommended FRANCHISING SOLID WASTE TO:
1. Control rates
2. Control service
3. Consolidation of routes
4. Uniform service
5. Franchise fee for'the cost of street repair
6. Additional services at no extra costs
II. AB 939
A. Effective 1990. Cities must meet State refuse goals and
requirements or face fines. Cities now must:
1. Write recycling and source reduction plans.
2. Conducting solid waste analyses (know their trash compositions).
3. Divert the amount of Solid Waste currently going to landfills
by 25% by the year 1995 and 50% by the year 2000.
III. UCLA REPORT/SOLID WASTE COMMITTEE
A. UCLA Report found that 72% of total residential waste could be
recycled.
Additionally it recommended:
• Curbside recycling
• Source reduction
• Commercial recycling
• Household hazardous waste program
B. Solid Waste Committee
1. Developed solid waste concepts and recommendations which
contributed greatly to staff's conceptual development of
various solid waste programs.
REFUSE/RECYCLING PRESENTATION
Page 2
IV. JOINT REFUSE/RECYCLING FRANCHISE
A. Integrate AB 939 and the proposed franchise.
B. Created Solid Waste Team.
V. CITY RESOLUTION 90-180 SEPTEMBER 1990
A. Compared three local haulers to others. Recommended the local
haulers based on:
1. Presence in the community
2. No significant amount of complaints
3. Offer competitive rates
4. Protected by the California Public Resources Code - 5 -year
phase-out period
5. Good faith demonstration - Phase One Recycling Program
6. Newspaper collection program
VI. REVIEW OF OTHER CITIES' REFUSE FEES
A. Reviewed fees of 95 cities and surveyed 12. Survey found they
ranged from $21.00 - $10.00 per household per month. Average =
$12.90.
B. Disparity attributable to:
1. Were recycling fees included?
2. Was there backyard service?
3. Was there a City franchise fee, and, if so, how much?
4. Did the City subsidize the rates for the households?
5. Was a household hazardous waste program included?
6. Was a waste container included?
VII. EXAMINATION OF LOCAL HAULERS' FINANCIAL STATEMENTS
A. Reviewed for:
1.' Operational costs
2. Annual receipts
3. Profits
B. -Nothing out of the ordinary and the cost of their business may be
divided into the following categories:
1'.
Labor
35.10%
$ 5.91
2.
Fuel
3.40`k
0.57
3.
Dump Fees
21.60`b
3.64
4.
Insurance
3.80%
0.64
5.
Truck Expenses
27.10`b
4.57
6.
Equipment
0.70%
0.12
7.
General O.H.
8.30%
1.40
Monthly Rate:
100.00%
$16.85
C. Consolidation would save hauler operating expenses and this savings
passed onto residents.
REFUSE/RECYCLING PRESENTATION
Page 3
VIII. COST OF RECYCLING
A. Based on:
1. Participation rate of households
2. The changing value of the recyclables
3. Method used to sort recyclables
B. Cost to recycle is $1.20 per household per month.
C. Haulers receive approximately 60 cents per household for recycling.
IX. POINTS OF THE CONCEPTUAL FRANCHISE
A. TERM: Six year "ever green."
B. FRANCHISE FEE: Ten percent (10`b) of.gross revenues.
C. GRANTING FEE: $5,000
D. CURBSIDE RECYCLING PROGRAM: No cost to the City or residents.
Unlimited recycling.
E. AB 939 INDEMNIFICATION:
F. BASE RATE: $16.85 per month per household until 1-1-92.
G. ADDITIONAL CART RATE: More than 50% of the base rate.
H. FRANCHISE AREA: Serve only one area of the City.
I. MULTI/SINGLE FAMILY UNITS: 90 -gallon cart/3 cubic yard bin.
J. SPRING CLEAN UP: Collecting at centralized locations bulky waste.
K. SPECIAL PICK UPS: 75 for the three haulers.
L. WASTE ANALYSIS: Waste sort analyses pursuant to AB 939.
M. CHRISTMAS TREE/TELEPHONE BOOK PROGRAM: Annual Curbside program.
N. MANDATORY REFUSE/RECYCLING SERVICE: Complementing Ordinance
0. CASH BOND: $10,000
P. INSURANCE COVERAGE: $1,000,000/$2,000,000
Q. SERVICE COMPLAINTS: Kept two years by hauler:
REFUSE/RECYCLING FRANCHISE
Page 4
R. RATE INCREASE: Two methods:
1. Landfill tipping fees are increased more than 25%. City
Manager approves request; under 25% rates increase after
notification of City Manager.
2. Increase rates annually based on Producer Price Index and City
Council approval.
S. PERFORMANCE AND QUALITY REVIEW: Public hearing on performance.
T. WASTE DIVERSION: Provide information on waste stream diversion.
X. COST OF FRANCHISE TO HAULER BY HOUSEHOLD
A. Annual cost to Hauler is estimated to be $1,306,400.
B. Cost per month to the hauler will be $4.16.
1. Curbside recycling
2. Waste sort
3. Franchise fee for road
maintenance and household
hazardous roundup
4. Spring cleanup
5. 75 special pickups
6. Christmas tree recycling
7. Telephone book recycling
$1.20
.30
2.36 (starts 1-19-92)
.07
.O1
.15
.07
Total monthly cost to hauler: 4.16
C. Recycling cart $10.00 and recycling stickers.
D. Base rate is frozen at $16.85 per month to December of 1.991. In
April the franchise will be implemented.
E. Base rate increase is tied strictly to the PPI. The haulers will
not be allowed to recover their costs of the franchise fee.
XI. SUMMARY
A. What Started the process.
1. Community interest in the environment
2. Strategic Plan
3. AB 939
REFUSE/RECYCLING FRANCHISE
Page 5
B. Difference before and after the proposed franchise.
1. Before . . . cost to residents $16.85
- Once/Week Refuse Pickup
-•(1) 90 gallon cart
- Spring Cleanup
2. After . . . cost to residents $16.85
Once/Week Refuse Pickup
- (1) 90 gallon cart
(1) 34 gallon cart
- Unlimited Recycling Sticker
- Waste Sort
AB 939 indemnification
Control of Rates
Control Service
- Spring Cleanup
75 Special Cleanup
- Christmas Tree Recycling.
Telephone Book Recycling
Road Maintenance/Household Hazardous Fee to City*
*To begin January 1992. Estimated Revenue: $692.961
C: Financial Analysis Based on $16.85/mo/household
1.. Haulers total Anticipated Annual Receipts $6,929,611
2. Proposed franchise fee = 10%
3. Total franchise fee to City = $692,961*
• 4. City cost of services = $692,961
*Based on the MSI study.
D. Service for base service.
1. Residential Trash Service.
(1) 90 gallon once a week pick up.
(2) 32 gallon trash bags or containers.
(2) Bundles of brush.
E. The proposed franchise is designed with the concept of diverting
waste from landfills.
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An
ftRAFrT
AGREEMENT BETWEEN THE CITY OF SANTA CLARITA
AND
FOR INTEGRATED WASTE MANAGEMENT
This Franchise Agreement ("Franchise Agreement") is entered into
this day of , 1990, between the City of Santa Clarita ("City")
and ("Grantee"), for the collection, transportation, recycling,
composting and disposal of solid waste, green wastes and recyclables.
R E C I T A,L S
WHEREAS, the Legislature of the(State of California, by enactment of
the California Integrated Waste Management Act of 1989 ("AB 939"), has
declared that it is within the public interest to authorize and require local
agencies to make adequate provisions for solid waste handling within their
jurisdictions; and
. WHEREAS, pursuant to California Public Resources Code Section
40059(a)(1), the City Council of the City of Santa Clarita ("City") has
determined that the public health, safety and well-being require that an
exclusive franchise be awarded to a qualified solid waste enterprise for
integrated waste management, including,collection and recovery of recyalables,
green waste collection and composting and solid waste disposal for residential
areas in the City of Santa Clarita; and
WHEREAS, the City Council of the City of Santa Clarita declares its.
intention of maintaining reasonable rates for collection, recycling and
disposal of solid waste, green waste and recyclables within City limits;
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
SECTION 1 - GRANT OF EXCLUSIVE RESIDENTIAL FRANCHISE
This Franchise Agreement grants an exclusive residential solid waste
franchise as defined in SECTION 2, below, to Grantee, pursuant to Title 20 of
the Los Angeles County Code and adopted by City Ordinance 88-37 (hereinafter,
"Title 20") (as it may from time to time be amended or superseded by the
adoption of an integrated waste management ordinance by the City of Santa
Clarita) and California Public Resources Code Section 40059(a)(1) to Grantee
to arrange for the collection of solid waste, green waste and recyclables in
residential areas within the City of Santa Clarita as shown on Exhibit "A".
SECTION 2 - DEFINITIONS
Whenever any term used in this Franchise Agreement has been defined
by the Municipal Code of the City of Santa Clarita ("Municipal Code") or
Division 30, Part 1, Chapter 2 of the California Public Resources Code, the
definitions in the Municipal Code or Public Resources Code shall apply unless
the term is otherwise defined in this Agreement.
0
A. AB 939
"AB 939" shall mean the California Integrated Waste Management Act
of 1989, as it may be amended from time to time.
B. Bins
"Bins" shall mean those containers provided by Grantee for
commercial, industrial, construction and residential unit uses.
Bins are usually one and one-half (1 1/2) and three (3) cubic yards
in size, which are picked up by refuse trucks by means of front
loading apparatus.
C. Bulky Waste
"Bulky Waste" shall mean and include, but not by way of limitation,
trunks, stumps or limbs of trees. exceeding four (4) inches in
diameter or four (4) feet in length; discarded household furniture,
furnishings or appliances, including white goods; automobile parts;
waste material resulting from building construction, alteration or
repair (except asbestos -containing materials), rock, brick, stone,
cement, plaster, manure, soil or sod; carpets, mattresses, and
similar large items which cannot be placed in a covered container.
D. City Limits
City Limits" shall mean the boundaries of the City together with
all amendments and changes thereto, which boundaries are shown
by maps incorporated herein by reference and which are on file
in the office of the Clerk of the City Council.
E. Franchise Fee
Franchise Fee" means the fee or assessment imposed by the City
on Grantee solely because of its status as Grantee. The term
"franchise fee" does not include:
(1) Any tax, fee or assessment of general applicability (including
any such tax, fee or assessment imposed on both businesses and
Grantee ortheir services but not including a tax, fee, or
assessment which is unduly discriminatory against Grantee or
its customers); or
(2) Requirements, reimbursements,. charges or fees incident to the
awarding, enforcing, transfer or renewal of this Franchise
Agreement, including payments of bonds, consultants,
administrative expenses, attorneys fees, security funds,
letters of credit, insurance, indemnification, penalties, or
liquidated damages.
F. Grantee
"Grantee" shall mean the entity granted the Franchise to arrange for
the collection of solid waste and recyclables pursuant to this
Franchise Agreement.
-2-
i
G. Green Wastes
"Green Wastes" shall mean vegetative cuttings, shrubs, stumps,
brushes, tree trimmings, grasses and related materials which have
been separated from other solid waste. Green waste does not include
stumps or.branches with diameters exceeding four (4) inches.
H. Gross Revenues
"Gross Revenues" shall mean any and all revenue or compensation in
any form derived directly or indirectly by the Grantee, its
affiliates, subsidiaries, parents and any other .person or entity in
which the Grantee has a financial interest, from the collection of
refuse and recyclables pursuant to this Franchise Agreement. "Gross
Revenues" shall not include deposits, cart delivery fees, fees for
replacement carts and fees for temporary care construction bins and
rolloffs collected by Grantee for City. Provided, however, that the
amount of gross revenues may be reduced by the amount of any
subscriber bad debts incurred by the Grantee or refunds returned to
persons, provided that the revenue with respect thereto has been
included in the computation of gross revenues. Provided further,
that gross revenues does not include gross revenues received from
the sale of recycled materials.
I. Multi -Family Units
"Multi -Family Units" shall mean residential units which utilize
bins, as defined in this Franchise Agreement, for the collection of
solid waste and recyclables.
J. -Recyclables
"Recyclables" means any and all tin and aluminum, glass, plastic,
paper and/or any other recyclable• goods designated by the Director
of Public Works.
K. Residential Solid Waste Franchise
"Residential Solid Waste Franchise" or "Franchise" shall mean the
exclusive right and privilege: (1) to arrange for the collection
of, and to collect, (2) to transport to landfill or other licensed
disposal facilities as determined by the Grantee, and (3) to recycle
from collected refuse, compostables and recyclables all solid waste,
green waste and recyclables kept, generated and/or accumulated
within the City from the franchise area, as identified in Exhibit
"A", "Franchise Area" to this Franchise Agreement. This Franchise
is subject to all of the provisions of Title 20, this Franchise
Agreement, and to any rights, if any, which may be held by any other
solid waste enterprise holding rights pursuant to Public Resources
Code Section 49520.
L. Single -Family Unit
"Single -Family Unit" means a residential unit which utilizes one or
more individual ninety (90) gallon residential type solid waste
containers.
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M. Special Wastes
"Special Wastes" shall mean all the items and materials which are
set forth on Exhibit "B," "Special Wastes".
N. Title 20
"Title 20" shall mean Title 20 of the Los Angeles County Code as it
may from time to time be amended, or in the event the. City of Santa
Clarita adopts an integrated waste management ordinance, the City of
Santa Clarita Integrated Waste Management Ordinance.
SECTION 3 - ACCEPTANCE; WAIVER
Grantee agrees to be bound by and comply with all the requirements
of Title 20 and this Franchise Agreement. Grantee waives Grantee's right to
challenge, the terms of this Franchise Agreement and Title 20 under federal,
state or local law', or administrative regulation, as such laws and regulations
exist as of the date of execution of this Agreement. Grantee waives any right
or claim to serve the City or any part of the City under any prior grant of
franchise, contract, license or permit issued or granted by any governmental
entity including any right under Section 49520 of the Public Resources Code.
SECTION 4 - FRANCHISE AREA
A. Franchise Area Defined
The Franchise Area granted by this Franchise Agreement shall be all
residential areas as they exist on the effective date of this Agreement, as
identified in Exhibit "A," "Franchise Area" to .this Franchise Agreement. As
provided below, the Franchise Area may be changed by annexation, deannexation
or rezoning. This Agreement does not apply to commercial or industrial
premises or public facilities within the Residential Areas identified in
Exhibit A.
B. Annexation or Rezonings Not Covered by Existing Franchise
Territory annexed or rezoned within the City to Residential which is
not within the service area of another. solid waste franchise may be added to
the franchise area granted by this Franchise Agreement pursuant to Council
resolution adopted after a noticed public hearing, and the payment of
Franchise Fees, as established by Resolution of the Council.
C. Annexation Covered by Existing Franchise
Territory annexed to the City that is covered by an existing solid
waste permit, license, agreement or franchise granted by another public entity
may continue to be served by the same Grantee for the balance of the term of
its permit, license, agreement or franchise. Such territory may be added to
the franchise area granted by this franchise agreement, or made by the subject
of a new franchise agreement with another Grantee.
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D. Rezoning Covered by Existing Franchise
(1) Territory Rezoned to Residential
Territory within the City that is already served by another
franchise that is rezoned to residential may continue to be served by that
Franchisee for the balance of term of its franchise, subject to the provisions
of Title 20, or in the discretion of the City Council, may be added to the
Franchise Area granted by this Franchise Agreement.
(2) Residential - Rezoned to Other Uses
Territory within the area covered by this franchise rezoned from
residential to another use may continue to be served by Grantee for the
balance of term of this franchise, subject to the provisions of Title 20, and
the provisions of this Franchise Agreement.
SECTION 5 - SERVICES PROVIDED BY GRANTEE
A. General
Grantee shall collect, pick up and remove, recycle and dispose of
all refuse, green waste and recyclables within the franchise area listed in
"Exhibit A" of this agreement. -
B. Container Services
Grantee shall provide each Single -Family Residence up to (4) four,
90 -gallon semi -automated carts for the collection of refuse at a designated
rate listed on Exhibit D.
Grantee shall provide one thirty-four (34) -gallon recycling cart,
with wheels, for each Single -Family Residence, to be used exclusively for
recyclable materials.
Upon request, Grantee shall provide "recycling" identification
stickers for containers provided by the householder(s) for additional
recyclables.
C. Single -Family Residences
(1) Weekly Service
Once each week Grantee shall collect from Single Family
Residences solid waste, green waste and recyclables (except bulky wastes and
special wastes) which have been placed, kept or accumulated in approved
containers, or bags or bundles, at curbside prior to Grantee's normal weekly
collection time.
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(2) Annual Service
(a) Santa Clarita Annual Cleanup Campaign
Grantee agrees to participate in an annual spring clean-up and to
cooperate with the .City as to the date and manner of conducting said clean-up
campaign. During this campaign, the Grantee, will pick up all bulky wastes
including large objects such as couches, white goods, and rugs which are not
otherwise collected as part of the Grantee's normal service, which have been
placed within collector -provided receptables at all places designated by
City. The campaign shall take place annually and shall be one week in
duration. The campaign shall be scheduled by mutual agreement between the
Director of Public Works and the Grantee. All pickups by Grantee shall be on
Saturday and Sunday of the week. Landfill expenses, if any, shall be borne by
City.
(b) Christmas Tree Collection
Grantee shall collect, transport and recycle Christmas trees during
the period beginning on December 26 and ending 10:00 p.m. on the second
Saturday in January.
(c) Telephone Book Collection
Grantee shall collect telephone books and transport them to a
mutually acceptable recycler.
D. Multi -Family Residences
(1) Weekly Service
Grantee shall empty all multi -family bins not less often than
once per week, and more frequently if required to handle the Multi -Family'
Residential waste stream of the premises where the bins are located.
(2) Annual Service
The same annual services provided pursuant to Section 5C, above,
for Single -Family Residences shall be provided for Multi -Family Residences.
E. Recycling Program
The Grantee will provide recycling service in the franchise area in
accordance with the terms set forth in Exhibit "C", "Recycling Program".
F. Hours of Collection
Collection service for residential areas shall not start before
6 a.m. or continue after 10 p.m., six (6) days per week, excluding Sunday.
Collection service hours are subject to change by the Director of Public Works.
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G. Collection on Holidays
If the day of collection on any given route falls on a legal Holiday
observed by the landfill or other lawful disposal site to which refuse
collected. within the franchise area is taken for disposal, or recycling
facility to which recyclables are taken, Grantee shall provide collection
service for such route on the workday next following such Holiday and shall
not provide collection service on such Holiday. Grantee shall never provide
collection service on New Year's Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day.
H. Special.Wastes
Grantee shall not collect, transport and dispose of material defined
as special waste in Exhibit "B".
I. Special Pickup
Grantee shall provide for not more than twenty-five (25) special
pickups per year at the request of the Director of Public Works without charge
to the City and transport to a mutually agreed upon site. Grantee shall
provide additional special pickups at the rate designated for "City Special
Pickups" in Exhibit "D". The quantity of materials for each such pickup shall
not exceed that contained in a three (3) -yard container. -
SECTION 6 - SERVICE REQUIREMENT
Pursuant to iCity Ordinance No. 91 , all owners, occupants or
other persons responsible for the day-to-day operation of Premises within the
franchise area granted by this Franchise Agreement shall make arrangements to
obtain waste and recycling collection service from Grantee. However, persons
may haul their own solid waste or solid waste generated by themselves (such as
persons hauling solid waste from their own residences or farm operations) and
not obtain service from Grantee so long as such persons own and operate the
equipment used to collect and haul such refuse, so long as they do it
themselves or with full-time employees. or with family members, and so long as
they obtain a permit from the City to do so.
SECTION 7 - FRANCHISE FEES
A Franchise Fee of 10 percent (10%) of the Grantee's Gross Revenues
shall be paid by Grantee to City 15 days after the end of each calendar month
beginning on January 1, 1992 and thereafter, during the term of this Agreement
and any extensions.
SECTION 8 - REIMBURSEMENT OF CITY EXPENSES
The Grantee shall, within thirty (30)
agreement, pay the City a fee not to exceed Five
to reimburse the City for expenses associated
Agreement.
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days after execution of this
Thousand Dollars ($5,000.00)
with granting this Franchise
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SECTION 9 - CASH BOND AND INSURANCE
A. Cash Bond
Contemporaneously with the execution of this Franchise Agreement,
the Grantee shall deposit a cash bond in the sum of Ten Thousand Dollars
($10,000.00) in an interest bearing account. The cash bond shall be on terms
acceptable to the City Attorney.. The cash bond shall serve as security for
the faithful performance by Grantee of all the provisions and obligations of
this Franchise Agreement. All interest shall be paid to the Grantee.
(1) After thirty (30) days following Grantee's failure to pay
the City an amount owing under this Franchise Agreement plus
interest at the rate of - , the cash bond may be assessed by the
City upon five (5) days' prior written notice to the Grantee for
purposes including, but not limited to:
(a) Failure of Grantee to pay the City sums due under the
terms of the Franchise Agreement.
(b) Reimbursement of costs borne by the City to correct
Franchise Agreement violations not corrected by Grantee, after
due notice; and
(c) Monetary remedies or damages assessed against Grantee
due to breach of Franchise Agreement;
(2) The Grantee shall deposit a sum of money sufficient to
restore the cash bond to the original amount within thirty (30) days
after notice from the City that any amount has been withdrawn from
the cash bond.
B Insurance Coverage
Contemporaneously with the execution of this Franchise Agreement,
the Grantee shall deposit copies of insurance policies or endorsements
evidencing the existence of policies of insurance required pursuant to this
Franchise Agreement.
SECTION 10 - TERM; EXTENSIONS
A. The term of this Agreement shall be for a period of six (6)
years commencing on April 15, 1991, and ending on April 14, 1997. At the
conclusion of the first twelve (12) months of the term hereof and at the
conclusion of each twelve (12) -month period thereafter, this Agreement shall
be extended twelve (12) additional months so that the term of this Agreement
shall, at all times, remain at six (6) years, unless terminated by notice, as
set forth in Section 10.B., below, or terminated for default.
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B. Should either party desire termination of the automatic twelve
(12) -month extension provision, such party shall give written notice to the
other party of such termination, at least thirty (30) days prior to the end of
each twelve (12) -month period. Such notice shall terminate this autmoatic
twelve (12) -month extension provision, and this Agreement shall then remain in
effect.for the balance of the Six (6) -year term, unless earlier terminated for
default.
SECTION 11 FRANCHISE TRANSFERABLE; CITY CONSENT REOUIRED
A. The franchise granted by this Franchise Agreement shall not be
transferred, sold, hypothecated, sublet or assigned, nor shall any of the
rights or privileges herein be. hypothecated, leased, assigned, sold or
transferred, either in whole or in part, nor shall title thereto, either legal
or equitable, or any right, interest or property therein, pass to or vest in
any person, except the Grantee, either by act of the Grantee or by operations
of law, without the prior written consent of the City expressed by
resolution. Any attempt by Grantee to assign this franchise without the
consent of City shall be void.
B. If the Grantee attempts .to transfer the franchise prior to
obtaining City consent, all of the profits or twenty-five percent (25%) of the
Gross Revenues, from the date of attempted transfer until the date of City
consent, whichever is greater, shall be returned to the customers, on a pro
rata basis.
C. The City shall not unreasonably withhold its consent to a
transfer of the franchise granted by this Franchise Agreement. The City may
impose reasonable 'conditions. of approval on a Franchise Agreement transfer,
including, but not limited to conditions requiring acceptance of amendments to
Title 20 and this Franchise Agreement, and the payment of a transfer fee, to
the City.
D. City consent is required for' any -change in control .'of Grantee.
"Change in control" shall mean any sale, transfer or acquisition of Grantee.
If Grantee is a corporation, any acquisition of more than ten percent (10%) of
Grantee's voting stock by a person, or group of persons acting in concert, who
already owns less than 50`6 of the voting stock, shall be deemed a change in
control. .
E. Any change in control of the Grantee occurring without prior
City approval shall constitute a material breach of this Franchise Agreement.
SECTION 12 - FRANCHISE TRANSFER; FEES
A. Any application for a franchise transfer shall be made in a
manner prescribed by the Director of Public Works. The application shall
include a transfer fee in an amount to be set by City by Resolution of the
Council, to cover the cost of all direct and indirect administrative expenses
including consultants and attorneys, necessary to adequately analyze the
application and to reimburse City for all direct and indirect expenses. In
addition, the Grantee shall reimburse the City for all costs not covered by a
transfer fee in an amount not to exceed five thousand dollars ($5,500.00).
City's request for reimbursement shall be supported with evidence of the
expense or cost incurred. The applicant shall pay such bills within thirty
(30) days of receipt.
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B. These franchise transfer fees are over and above any franchise
fees specified in this Franchise Agreement.
SECTION.13 - IMPOSITION OF DAMAGES OR TERMINATION
A. If the Director of.Public Works determines that the Grantee's
performance pursuant to this Franchise Agreement has not been in conformity
with reasonable industry standards which obtain in similar cities in Southern
California, the provisions of this Franchise Agreement, the requirements of
Title 20, the California Integrated Waste Management Act, .including, but not
limited to, requirements for source reduction and recycling, (as to the waste
stream subject to this Franchise. Agreement) or 'any other applicable federal,
state or local law or regulation, including but not limited to, the laws
governing transfer, storage or disposal of hazardous waste, the Director of
Public Works may advise Grantee in writing of such deficiencies. The 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 sixty (60) days from the receipt by
the Grantee of such written notice. The Director. of Public Works shall review
the Grantee's response, and refer the matter to the City Manager or decide the
matter and notify the Grantee of that decision, in writing. A decision or
order of the Director of Public Works or City Manager shall be final and
binding on Grantee if the Grantee fails to file a "Notice of Appeal" with the
City Manager within 30 days of receipt of the Director of Public Works or City
Manager's decision. Within ten working days of receipt of a Notice of Appeal,
the Manager shall either refer the appeal to the City Council for proceedings
in accordance with Section 13B -C, below, or refer the matter to a hearing
officer as provided in Section 14, below.
B. The City Council, in such case, may set the matter for hearing.
The City Council shall give Grantee, and any other person requesting the same,
fourteen (14) days written notice of the time and place of the hearing. At _
the hearing, the. City Council shall consider the report of .the City Manager
indicating the deficiencies, and shall give the Grantee, or its
representatives and any other interested person, a reasonable opportunity to
be heard.
C. Based on the evidence presented at the public hearing, the
Council shall determine by resolution whether the Franchise Agreement should
be terminated or liquidated damages imposed. If, based upon the record, the
City Council determines that the performance of Grantee is in breach of any
material term of this Franchise 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 Franchise
Agreement or impose liquidated damages, as defined below. The decision of the
City Council shall be final and conclusive, subject to review pursuant to
Section 14, below. Grantee's performance under its Franchise is not excused
during the period of time prior to the City Council's final determination as -
to whether such performance is deficient.
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D. This right of termination or to impose liquidated damages is in
addition .to any other rights of City upon a failure of Grantee to perform its
obligations under this Franchise Agreement.
E. The City further reserves the right to terminate Grantee's
Franchise or impose.liquidated damages in the event of any of the following:
(1) If the Grantee practices, or attempts to practice, any
fraud or deceit upon the City.
(2) If the Grantee becomes insolvent, unable or unwilling to
pay its debts, or upon listing of an order for relief in
favor of Grantee in a bankruptcy proceeding.
(3) If the Grantee fails to provide or maintain in full force
and effect, the workers compensation, liability and
indemnification coverages or performance as required by the
Franchise Agreement.
(4) 1 If the Grantee willfully violates any orders or rulings of
any, regulatory body having jurisdiction over the Grantee
relative to this Franchise. Agreement, provided that the
Grantee may contest 'any such orders or rulings by
appropriate proceedings conducted in good faith, in which
case no breach of the Franchise Agreement shall be deemed
to have occurred.
(5) If the Grantee ceases to provide collection service as
required under this Franchise Agreement over all or a
substantial portion of its Franchise Area for a period of
seven (7) days or more, for any reason within the control
of the Grantee.
(6) If the Grantee willfully fails to make: any payments
required under the Franchise Agreement and/or refuses to
provide City with required information, reports and/or test
results in a timely manner as provided in the Franchise
Agreement.
(7) Any other act or omission by the Grantee which materially
violates the terms, conditions or requirements of the
Franchise Agreement, Title 20 and which is not corrected or
remedied within the time set in the written notice of the
violation or, if the Grantee cannot reasonably correct or
remedy the breach within the time set forth in such notice,
if the Grantee should fail to commence to correct or remedy
such violation within the time set forth in such notice and
diligently effect such correction.or remedy thereafter.
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F. LIQUIDATED DAMAGE
(1) The City finds, and the Grantee agrees, that as of the time
of the execution of this Franchise Agreement, it is
impractical, if not impossible, to reasonably ascertain the
extent of damages which will be incurred by the City as a
result of a material breach by Grantee of its obligations
under this Franchise Agreement. The factors relating to
the impracticability of ascertaining damages include, but
are not limited to, the fact that: (i) substantial damage
results to members of the public who are denied services or
denied quality or reliable service; (ii) such breaches
cause inconvenience, anxiety, frustration and deprivation
of the benefits of the Franchise Agreement to individual
members of the general public for whose benefit this
Franchise Agreement exists, in 'subjective ways and in
varying degrees of intensity which are incapable of
measurement in precise monetary terms; (iii) that services
might be available at substantially lower costs than
alternative services, and the monetary loss resulting from
denial of services or denial of quality or reliable
services is impossible to calculate in precise monetary
terms; and (iv) the termination of this Franchise 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.
(2) Accordingly, the City Council may, in its discretion,
assess liquidated damages not to exceed the sum of Two
Hundred and Fifty Dollars ($250.00) per day, for each
calendar day that service is not. provided by Grantee in
accordance with this Franchise Agreement. The amount of
the liquidated damages shall be increased by the past
year's PPI on the anniversary of this Franchise Agreement.
In addition, the Council may order the assessment against
the performance bond required by Section 9A, above,the
termination of the Franchise Agreement, or both.
(3) The City finds, and the Grantee 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
Grantee has been found by the City. Council to be in
material default pursuant to this Section. The Grantee
shall pay any liquidated damages assessed by the City
Council within ten (10) days after they are assessed. If
they are not paid within the ten-day period, the City may.
withdraw them from the cash bond required by Section 9A,
above, order the termination of the Franchise granted by
this Franchise Agreement, or both.
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G. Grantee may appeal determinations by the City Council under this
Section to a hearing officer, as provided in Section 14, below.
SECTION 14 - ADMINISTRATIVE HEARING PROCEDURES
A. If either the City Manager or the City Council refers a matter
to a hearing officer, City and Grantee shall mutually agree on a hearing
officer. If agreement is not reached within 'twenty working days of the filing
of the notice of appeal, then Grantee shall select the hearing officer from a
list of three potential hearing officers who are retired California Superior
Court judges .or Appellate Court justices, none of whom are related to the
parties, prepared by the City Manager and approved by the City Council.
B. The hearing shall be conducted according to California Code of
Civil Procedure Section 1280, et seq. The exclusive venue shall be in Los
Angeles, California. A hearing officer to whom a matter is referred shall
have the authority to (i) order the Grantee to undertake, remedial action to
cure the breach and to prevent occurrence of similar breaches in the future;
(ii) assess damages and/or .levy a penalty upon the Grantee consistent with the
terms of this Franchise Agreement of (iii) find there has been no breach. If
the hearing officer finds there has been no breach, such a decision precludes
the City from conducting a default hearing. For any occurrence or series of
related occurrences, the penalty may be up to five thousand dollars
($5,000.00). The amount of the penalty shall be reasonably related to the
seriousness of the breach of the Franchise Agreement.
C. The party losing the hearing shall be liable for the hearing
officer's fees.
D. Any failure of the Grantee to comply with the hearing officer's
order shall be deemed a material breach of the Franchise Agreement, and may be
grounds for termination of the Franchise Agreement.
E. The hearing officer shall commence the hearing within thirty
(30) days of selection unless the parties and the hearing officer otherwise
agree. Any party to the hearing may issue a request to compel reasonable
document production from the other party. Disputes concerning the scope of
document production and enforcement of document requests shall be subject to
agreement by the parties, or if agreement is not reached within twenty (20)
days of that document request, then by disposition by order of the hearing
officer. Any such document request shall be subject to the proprietary rights
and rights of privilege of the parties, and the hearing officer shall adopt
procedures to protect such rights. Except as may be otherwise specifically
agreed by the parties, no other form of pretrial discovery shall be available
to the parties; provided that if either party notifies the hearing officer
that.a material violation of the Franchise or rights in connection therewith
is claimed by either party, the provisions of Code of Civil Procedure Section
1283.05 shall apply.
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F. Neither party may communicate separately with the hearing
officer after the hearing officer has been selected. All subsequent
communications between a party and a hearing officer shall be simulatenously
delivered to the other party. This provision shall not apply to
communications made to schedule a hearing or request a continuance.
G. Until final judgment is entered from the hearing officer
proceeding under the foregoing provisions and the time for appeal or other
post -judgment petition has expired, the imposition or enforcement 'of any
penalties or sanctions provided in the Franchise Agreement and related to the
subject matter of the hearing shall be stayed. The hearing officer may modify
or cancel any proposed penalties or sanctions upon a finding that the party
subject thereto acted with substantial justification, or if the interests of
justice so require.
H. Any party to a hearing may petition the Superior Court in Los
Angeles County, California to confirm, correct or vacate .the award on the
grounds stated in the General Arbitration Act. Any proceedings on appeal
shall be in accordance with Code of Civil Procedures S 1294 and S 1294.2.
SECTION 15 - CITY'S ADDITIONAL REMEDIES
In addition to the remedies set forth in Sections 13-14, above, City
shall have the following rights:
A. To rent or lease equipment from Grantee 'for the purpose of
collecting, transporting and disposing of solid waste which Grantee is
obligated to collect, transport and dispose of pursuant to this Franchise
Agreement, for a period not to exceed six (6) months. In the case of
equipment not owned by Grantee, Grantee shall assign to City, to the extent
Grantee is permitted to do so under the instruments pursuant to which Grantee
possesses such equipment, the right to possess the equipment.. Consistent with
this provision Grantee agrees to use its best efforts to obtain in the
instruments pursuant to which Grantee possesses such equipment, provisions
which authorize City to possess such equipment pursuant to this provision. If
City exercises its rights under this Section 15, City shall pay to Grantee the
reasonable rental value of the rental equipment so taken for the period of
City's possession thereof;
B. The right to license others to perform the services otherwise to
be performed by Grantee hereunder, or to perform such services itself; and
C., 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 Franchise Agreement by Grantee, City may suffer irreparable injury and
incalculable damages sufficient to support injunctive relief, to enforce the
provisions of this Franchise Agreement and to enjoin the breach thereof.
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SECTION 16 - RIGHTS OF CITY TO PERFORM DURING EMERGENCY
A. Should Grantee, for any reason whatsoever, except the occurrence
or existence of any of the events or conditions set forth in Section 28A,
"Force -Majeure," below, refuse or be unable to collect, transport and dispose
of any or all the refuse, green waste and Recyclables which it is obligated
under this Franchise Agreement to collect, transport and dispose of for a
period of more than seventy-two (72) hours, and if as a result thereof,
refuse, green waste and Recyclables should accumulate in City to such an
extent, in such a manner, or for such a time that the City Manager in the
exercise of his sole discretion, should find that such accumulation endangers
or menaces the public health, safety or welfare, then in such event City shall
have the right, upon twenty-four (24) -hour prior written notice to Grantee,
during the period of such emergency, to temporarily take possession of any or
all equipment and facilities of Grantee previously used in the collection,
transportation and disposal of refuse, compostables and Recyclables under this
Franchise Agreement, and to use such equipment and facilities to collect and
transport any or all refuse, compostables and Recyclables which Grantee would
otherwise be obligated to collect and transport pursuant to this Franchise
Agreement. Grantee agrees that in such event it will fully cooperate with
City to effect such a transfer of possession for City's use.
B. Grantee agrees that, in such event, City may take temporary
possession of and use all of said equipment and facilities without paying
Grantee any rental or other charge, provided that City agrees that, in such
event, it assumes complete responsibility for the proper and normal use of
such equipment and facilities. City agrees that it shall immediately
relinquish possession of all of the above-mentioned property to Grantee upon
receipt of written notice from Grantee to the effect that it is able to resume
its normal responsibilities under this Franchise Agreement.
SECTION 17 - PRIVACY
A. Grantee shall strictly observe and protect the rights of privacy
of customers. Information identifying individual customers, or the
composition or contents of a customer's refuse or recyclables shall not be
revealed to any person, governmental unit, private agency or company, unless
upon the authority of a court of law, by statute, or upon valid authorization
of the customer. This provision shall not be construed to preclude Grantee
from preparing, participating in, or assisting in the preparation of waste
characterization studies or waste stream analyses which may be required by
AB 939.
B. Grantee shall not market or distribute outside the normal course
of its business, mailing lists with the names and addresses of customers.
C. The rights accorded customers pursuant to this Section shall be
in addition to any other privacy right accorded customers pursuant to federal
or state law.
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C�
SECTION 18 - REPORTS AND ADVERSE INFORMATION
A.. Annual Reports
11
Pursuant to resolution adopted at least 60 days before the close of
Grantee's fiscal year, which starts on July 1 and ends on June 30 each -year,
the City may require that within 60 days after the close of Grantee's fiscal
year, the Grantee shall submit a written annual report, in a form approved by
the City, including, but not limited to, the following information:
(1) A summary of the previous year's (or, in the case of the
initial report year, the initial year's) activities
including, but not limited to, services begun or
discontinued during the reporting year, and the number of
customers for each class and level of service;
(2) A revenue statement, setting forth monthly Franchise Fees,
and the basis for the calculation thereof, certified by an
officer of the Grantee;
(3) A list of Grantee's officers and members of its board of
directors.
(4) Information sufficient to enable the City to comply with
City's reporting requirements under AB 939.
B. Adverse Information
Grantee shall provide City two copies of all reports, or other
material adversely affecting the Franchise Agreement, submitted by Grantee to
the EPA, the California Integrated Waste Management Board or any other
federal, state or county agency. Copies shall be submitted to City
simultaneously with Grantee's filing of such matters with said agencies.
Grantee's routine correspondence ,to said agencies need not be automatically
submitted to City, but shall be made available to City upon written request,
as provided in Section 27, below.
s
(1) The Grantee shall submit to City copies'of all pleadings,
applications, notifications, communications and documents
of any kind, submitted by the Grantee to, as well as copies
of all decisions, correspondence and actions by any
Federal, State and local courts, regulatory agencies and
other government bodies relating specifically to Grantee's
l
performance -of services pursuant to this Franchise
Agreement. Any data which the Grantee seeks to be excluded
from provisions of the California Public Records Act shall
be clearly identified as such by Grantee with the basis for
such clause of execution clearly specified. In the event
City receives a request under the Public Records Act, or by
subpoena, the City shall notify Grantee to permit Grantee
to object to the release of the information requested or
subpoenaed.
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•
•
(2) Grantee shall submit to the City such other information or
reports in such forms and at such times as the City may
reasonably request or require.
(3) All reports and records required under this or any other
section shall be furnished at the sole expense of the
Grantee.
(4) A copy of each of Grantee's annual and other periodic
public financial reports and those of its parent,
subsidiary and affiliated corporation and other entities,
As the City requests, shall be submitted to the City within
thirty (30) days after receipt of a request.
C. AB 939 Reports
Grantee shall provide City, in a form satisfactory to City,
information sufficient to enable City to prepare and submit in a timely
manner, the Initial Solid Waste Generation Study, including identification of
solid waste sources, categories and types, Subsequent Solid Waste Generation
Studies and Annual Reports on solid waste generation..
D. Failure to Report
The refusal, failure or neglect of the Grantee to file any of the
reports required, or.to provide required information to City, or the inclusion
of any materially false. or misleading statement or representation made
knowingly by the Grantee in such report shall be deemed a material breach of
the Franchise Agreement, and shall subject the Grantee to all remedies, legal
or equitable, which are available to the City under the Franchise Agreement or
otherwise.
SECTION 19 - ANNUAL REVIEW OF PERFORMANCE AND QUALITY OF SERVICE
A. At City's sole option, within ninety (90) days of the first
anniversary of the effective date of this Franchise Agreement, and each year
thereafter throughout the term of the Franchise Agreement, City may hold a
public hearing at which the Grantee shall be present and shall participate, to
review the Grantee's performance and quality of service. The reports required
by this Franchise Agreement regarding customer complaints shall be utilized as
the basis for review. In, addition, any customer may submit comments or
complaints during the review meetings, either orally or in writing, and these
shall be considered.
B. Within thirty (30) days after the conclusion of the public
hearing, City shall issue a report with respect to the adequacy of performance
and quality of, service. If any noncompliance with the Franchise is found,
City may direct Grantee to correct the inadequacies in accordance with
Sections 13 and 14,. above.
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SECTION 20 - SYSTEM AND SERVICES REVIEW
To provide for technological, economic, and regulatory changes in
refuse collection and recycling, to facilitate renewal procedures, to promote
competition in the refuse and recycling industry, and to achieve a continuing,
advanced refuse collection and recycling' system, the following system and
services review procedures are hereby established:
A. At City's sole option, City may hold a public hearing on or
about the second anniversary date of the Franchise Agreement on the collection
and recycling systems and services. Subsequent system and services review
hearing may be scheduled by City each two (2) years thereafter. It is City's
intent to conduct any system and services review concurrently with any Annual
Review of Performance and Equality of Service as provided for in Sectoin 19;
above.
B. Sixty (60) days after receiving notice from the City, Grantee
shall submit a report to City indicating the following:
(1) All refuse collection green waste and recycling services
reported in refuse collection and recycling industry trade
journals that are being commonly provided on an operational
basis, excluding tests and demonstrations, to communities
in the United States with comparable populations, that are
not provided to City; and
(2) Changes recommended to improve the City's ability to meet
the goals of AB 939.-
(3) Any specific plans for provision of such new services by
the Grantee, or a justification indicating why Grantee
believes that such services are not feasible for the
franchise area.
C. Topics for discussion and review at the system and services
review hearing shall include, but shall not be limited to, services provided,
feasibility of providing new services, application of new technologies,
customer complaints, rights of privacy, amendments to the Franchise Agreement,
developments in the law, new initiatives for meeting or exceeding AB 939's
goals and regulatory constraints.
D. City and the Grantee may each select additional topics for
discussion at any systems and services review hearing.
E. Not later than sixty (60) days after the conclusion of each
system and service.review hearing, City shall issue a report. The report then
being provided to City that are considered technically and economically
feasible by City. City may require Grantee to provide such services within a
reasonable time, for reasonable rates and compensation.
-18-
SECTION 21 - COMPENSATION
A. Grantee Rates
Grantee shall provide the services described in this Franchise
Agreement in accordance with the rates fixed by City from time to time, all as
described below and as set forth in the "Schedule of Rates," which is attached
in Exhibit "D".
(1) Single -Family Residential,
Grantee shall charge the monthly fees set forth in Exhibit "D"
for each Household.
(2) Multi -Family Residential
Grantee shall charge the monthly fee set forth in Exhibit "D"
for each bin based on the size of the bin and the frequency of service.
(3) Landfill Fees
In addition to the current fees set forth on Exhibit "D",
Grantee, with the approval of the Director of Public Works, may recover from
each customer a pro -rata portion of gate, tipping, AB 939, local enforcement
agency and other fees (herein collectively referred to as "tipping fees")
charged by landfills, transfer stations, materials recovery facilities
("MRFs), transformation facilities and/or other lawful disposal sites for
solid waste and recyclables collected, transported or disposed of by a
landfill or transformation facility pursuant to this Franchise Agreement,
which may increaseafter the date of this Agreement. If landfill fees
increase less than 25%, Grantee may increase each customer a pro -rated portion
fifteen (15) days after notifying the City Manager, and subject to the
notification requirements of Section 21.1), below.
(4) Special Services
Grantee may also charge fees for performance of Special Services
(e.g., the hauling and disposing of Special Wastes) as agreed upon in separate
contracts between Grantee and each customer requesting such special service.
All such fees and payments shall be subject -to the approval of the Director of
Public Works.
(5) Redelivery Fees
.Grantee may charge a. redelivery fee for containers removed due
to nonpayment and may also require payment in advance for reinstatement of
future service. All -such. fees and payments shall be subject to the approval
of City.
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B. Annual Modification and Adjustment of Rates
The rates shall be adjusted to reflect changes in the producer price
index ("PPI"). The PPI adjustment shall be made annually by City Council
resolution and become effective as of the first day of January of each
calendar year. The PPI adjustment shall be equal to the amount derived by
multiplying (a) the previous rated by (b) the percentage increase or decrease
in the Producer Price Index during the prior calendar year. The comparison
shall be made for each December 1st during the term hereof and shall be
effective January,lst. The First PPI adjustment shall occur January 1, 1992.
C. Extraordinary Costs
In addition to, and not in lieu of, the annual PPI increase or
decrease, Grantee shall also be entitled to rate increases (or decreases in an
amount equal of Grantee's extraordinary increases -or decreases in its cost of
collection. Such extraordinary cost increases or decreases shall be subject
to City Council approval. Such extraordinary increases or decreases in its
cost of collection shall include, by wayof example and not by way of
limitation: (1) a change in the location of the landfill or other lawful
disposal sites to which the Grantee is required to transport Solid Waste
collected hereunder; (2) increase or decreases in other permit fees payable by
Grantee based on its operations hereunder; and (3) changes in the local, state
or federal laws governing collection, separation, transportation or disposal
of Solid Waste.
D. Notice of Rate Increases
The Grantee shall provide the
(30) days in advance of the beginning of
the implementation of changes in any of
subject to regulation by the City. The
the reasons for the rate increase.
J
City and customers, at least thirty
a billing period, written notice of
its rates and charges which are not
notice shall include a statement of
E. Resolution of Disputes Regarding Rate Adjustments
Any dispute regarding the annual "PPI" and Tipping Fee adjustment,
or, the computation thereof, described in Section "B," or any other dispute
regarding Grantee's reimbursement for fees, special services or extraordinary
costs described in Exhibit "D," shall be decided by the City Manager, or
referred by the Manager to the City Council, or to a' hearing officer as
provided in Section 14 above. The rates in effect at the time such dispute is
submitted to the City Council or to a hearing officer shall remain in effect
pending resolution of such dispute. The effective date of any dispute
resolution, whether retroactive or prospective, shall reasonably be determined
by the City Council, or the hearing officer, as appropriate.
-20-
F. Billing and Payment
(1) Grantee may bill all customers for all services, whether
regular or special. Grantee shall provide itemized bills,
distinctly showing charges for all classifications of
services, including the charges for late payment. The
Grantee shall collect, for City, AB 939 fees, but shall not
designate that portion of a customer's bill attributable to
the franchise fee collected by Grantee for City, as
separate items on customer's bills. Billings may be made
monthly, in advance, for all bin service customers, and may
be made three (3) months in advance for all residential
customers.
(2) City may, at City's sole option, upon such terms and
conditions as may be mutually agreed upon between the
parties, elect to bill residents for refuse collection and
recycling. If City elects to do so, mutually agreed upon
guideline will be established and amended into this
agreement. The portion of the refuse collection rates paid
to Grantee which is attributable to billing for services
shall be assigned to City.
G. Delinquent Accounts
Grantee may discontinue service as set forth in this section.
Persons who have not remitted required payments within 30 days after the date
of billing shall be notified on forms approved by City. Said forms shall
contain a statement that services may be discontinued 15 days from the date of
notice if payment is not made before that time. Upon payment of the
delinquent fees as set forth in Exhibit "D", Grantee shall resume collection
on the next regularly scheduled collection day.
H. Refunds
Grantee shall refund to each customer, on a pro rata basis, any
advance service payments made by such customer for service not provided when
service is discontinued by the customer.
SECTION 22 - COLLECTION EQUIPMENT
Grantee shall provide an adequate number of vehicles and equipment
for the collection, disposal and transportation services for which it is
responsible under, this Franchise Agreement. All vehicles used by Grantee
under this Franchise Agreement shall be registered with the Department of
Motor Vehicles of the State of California, shall be kept clean and in good
repair, shall be uniformly painted. Solid waste collection vehicles shall be
washed at least once every seven (7) calendar days using recycled water, if
available. Grantee's name, telephone number and vehicle number shall be
visibly displayed on its vehicles in lettersand figures no .less than five
inches (5") high. All refuse collection vehicles shall display the words,
"Serving the City of Santa Clarita" in letters no less than two inches (2")
high. All vehicles will display the seal of the City of Santa Clarita, in a
figure at least twelve inches (12") in diameter. The equipment of Grantee
used under this Franchise Agreement shall be subject to inspection by City on
a semi-annual basis but shall not be subject to any permit fees therefor.
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SECTION 23 - PUBLIC ACCESS TO GRANTEE
A. Office Hours
Grantee's office hours shall be, at a minimum, from 8:00 a.m. to
5 p.m. daily, on all collection,days. Grantee shall maintain an 805 area code
phone number. A representative of Grantee shall be available during office
hours for communication with the public at Grantee's principal office.
Grantee shall also maintain an after hours telephone number for use during
other than normal business hours. Grantee shall have a representative or
answering service available at said after-hours telephone number during all
hours other than normal office hours.
B. Service Complaints
(1) All customer complaints shall be, directed to Grantee.
Grantee shall record all complaints received by mail, by
telephone or in person (including date, name, address of.
complainant and nature- of complaint). Grantee agrees to
use its best efforts to resolve all complaints by close of
business of the second business (waste collection) day
following the date on which such complaint is received.
Service complaints may be investigated by the Director of
Public Works or the Director's designee. Unless a
settlement satisfactory to complainant, the Grantee and the
Director's designee is .reached, the complainant may refer
the matter to the Director of Public Works for review.
(2) Grantee will .maintain records listing the date of customer
complaints, the customer,' describing the nature of the
complaint or request, and when and what action was taken by
the Grantee to resolve the complaint. All such records
shall be maintained for a period of twenty-four (24) months
and shall be available for inspection by the City.
C. Government Liaison Person
The Grantee shall designate a "government liaison person" who shall
be responsible for working with the Director of Public Works or the Director
of Public Works' designated representative to resolve consumer complaints.
SECTION 24 - RESOLUTION OF DISPUTED CUSTOMER COMPLAINTS
A. The Grantee shall notify customers of this complaint arbitration
procedure at the time customers apply for service, and subsequently, annually.
B. A customer dissatisfied with Grantee's decision regarding a
complaint may ask the City to review the complaint. To obtain this review,
the customer must request City review within 30 days of receipt of Grantee's
response to the Complaint, or within 45 days of submitting the complaint to
the Grantee, if the Grantee has failed to respond to the complaint. The City
may extend the time to request its review for good cause.
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D. The Director of Public Works shall determine if the customer's
complaint is justified, and if so, what remedy, if any,. shall be imposed. The
remedy under this Section shall be limited to a rebate of customer charges
related to the period of breach of any of the terms of this Franchise
Agreement.
SECTION 25 - OWNERSHIP OF SOLID WASTE
Once refuse, green waste and recyclables are placed in containers or
bins for collection or at curbside, ownership shall transfer to Grantee.
Grantee is hereby granted the right to retain, recycle, compost, dispose of
and otherwise use such refuse, green waste and recyclables, or any part
thereof, in any lawful fashion or for any lawful purpose desired by Grantee.
Subject to the provisions of this Franchise Agreement, Grantee shall have the
right to retain any benefit or profit resulting from its right to retain,
recycle, compost, dispose of or use the refuse or recyclables which it
collects. Refuse which is disposed of at a disposal site or sites (whether
landfill, transformation facility, transfer station or material recovery
facility) shall become the property of the owner or operator of the disposal
site or sites once deposited there by Grantee. The provisions of this
paragraph shall not apply to special wastes as defined on Exhibit "B".
SECTION 26 - INDEMNIFICATION AND INSURANCE
A. Indemnification of Cit
Grantee agrees that it shall protect, defend with counsel selected
by City, indemnify and hold harmless City, its officers, employees and agents
from and against any and all losses, liabilities, fines, penalties, claims,
damages, liabilities or judgments, including attorneys fees, arising out of or
resulting in any way from Grantee's exercise of the franchise, unless such
claim is due to the sole negligence or willful acts of the City, its officers,
employees, agents or contractors„ or from the City's grant of this franchise
to Grantee. Subject to the scope of this indemnification and upon demand of
the City, made by and through the City Attorney, the Grantee shall appear in
and defend the City and its officers, employees and agents in any claims or
actions, whether judicial, administrative or otherwise arising out of the
exercise of the Franchise Agreement.
B. Indemnification of Grantee
The City shall indemnify, defend and hold the Grantee, its
affiliates and their respective officers, directors, employees and
shareholders harmless from and against any and all liabilities, losses,
damages, claims, actions, causes of action, costs and expenses (including
reasonable attorney's fees) arising from or in any manner related to the sole
negligence or willful acts of the City, its officers, employees, agents or
contractors.
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C. Household Hazardous Substances Indemnification
Grantee shall indemnify, defend with counsel selected by Grantee,
protect and hold harmless City,' its officers, employees, agents, assigns and
any successor or successors to City's interest from and against all claims,
actual damages (including but not limited. to special and consequential
damages), natural resources damage, punitive damages, injuries, costs,
response remediation and removal costs, losses, demands, debts, liens,
liabilities, causes of action, suits, legal or administrative proceedings,
interest, fines, charges, penalties and expenses (including but not limited to
attorneys' and expert witness fees and costs incurred in connection with
defending against any of the foregoing or in enforcing this indemnity) of any
kind whatsoever paid, incurred or suffered by, or asserted against, City of
its officers, employees, agents or Grantees arising from or attributable to
any repair, cleanup or detoxificatoin, or preparation and implementation of
any removal, remedial, response, closure or other plan (regardless.of whether
undertaken due to governmental action) concerning any Hazardous Substance or
hazardous wastes at any place .where Grantee stores or disposes of municipal
solid waste pursuant to this Franchise Agreement. The foregoing indemnity is
intended to operate as an agreement pursuant to Section 107(e) of the
Comprehensive Environmental Response, Compensation and Liability Act,
"CERCLA", 42 U.S.C. Section 9607(e) and California Health. and Safety Code
Section 25364, to insure, protect, hold harmless and indemnify City from
liability. City agrees to comply with its statutory duties and obligations
imposed by AB 939 (Public Resources Code §41500), as it may from time to time
be amended. This idemnification and defense previously cited above
(Section 26.C) shall not apply if City fails to carry out its statutory duties
imposed by AB 939.
D. AB 939 Indemnification
Grantee agrees to protect, defend (with counsel selected jointly by
Grantee and City) and indemnify City against all fines or penalties imposed by
the California Integrated Waste Management Board in the event the source
reduction and recycling goals of AB 939 are not met by Grantee with respect to
the waste stream covered by this Franchise Agreement, or the Grantee's delays
in providing information prevent City from submitting reports required by AB
939 in a timely manner.
E. Workers' Compensation/General Liability Insurance
Grantee shall obtain and maintain in full force and effect
throughout the entire term of this Franchise Agreement full workers
compensation insurance in accord with the provisions and requirements of the
Labor Code of the State of California. Endorsements that implement the
required coverage shall be filed and maintained with the City Clerk throughout
the terms of this Franchise Agreement. The .policy providing coverage shall be
amended to provide that the insurance shall not be suspended, voided,
cancelled, reduced in coverage or in limits except after thirty (30) days'
prior written notice by certified mail return receipt requested has been given
to City. The policy shall also be amended to waive all rights of subrogation
against the City, its elected or appointed officials, employees, agents or
Grantees for losses which arise from work performed by the named insured for
the City.
-24-
Grantee shall obtain and maintain in full force and effect
throughout the entire term of this Franchise Agreement a Broad Form
Comprehensive General Liability (occurrence) policy with a minimum limit of
TWO MILLION DOLLARS ($2,000,000.00) aggregate and ONE MILLION DOLLARS
($1,000,000.00) per occurrence for bodily injury and property damage, with any
self-insured retention not exceeding $200,000,00 per occurrence. Said
insurance shall protect Grantee 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 Franchise
Agreement, whether such operations be .by Grantee itself, or by its agents,
employees and/or subgrantees. Copies of the policies or endorsements
evidencing the above required insurance coverage shall be filed with the City
Clerk. Endorsements are required to be made a part of all of the following
insurance policies required by this Section:
(1) "The City, its employees, agents, Grantees and officers,
are hereby added as insureds as respects liability arising
out of activities performed by or on behalf of Grantee."
(2) "This policy shall be considered primary insurance as
respects any other valid and collectible insurance the City
may possess including any self-insured retention the City
may have, and any other insurance the City does possess
shall be considered excess insurance and shall not
contribute with it."
(3) "This policy shall act for each insured, as though a
separate policy had been written for each. This, however,
will not act to increase the limit of liability of the
insuring company."
(4) "Thirty (30) days' prior written notice by certified mail,
return receipt requested, shall be given to the City in the
event of suspension, cancellation, reduction in coverage or
in limits or non -renewal of this policy or whatever
reason. Such notice shall be sent to the City Clerk."
The limits of such insurance coverage, and companies, shall be
subject to review and approval by the City Manager every year and may be
increased at that time and match the coverage provided by the City's own
liability insurance policy. The City shall be included as a named insured on
each of the policies, or policy endorsements.
E. Modification
The insurance requirements provided herein may be modified or waived
in writing by the City Council, provided the City Council determines such
modification or waiver is in the best interests of. City considering all
relevant factors, including the fact that the parent of Grantee may be
self-insured up to a certain acceptable amount.
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SECTION 27 - GRANTEE'S BOORS AND RECORDS; AUDITS
A. Grantee shall maintain all records relating to the services
provided hereunder, including, but not limited to, customer lists, billing
records, maps, AB 939 records, and customer complaints, for the full term of
this Franchise Agreement, and an additional period of not less than three (3)
years, or any longer period required by law. The City shall have the right,
upon ten (10) business days' advance notice, to inspect all maps, AB 939
records, customer complaints, and other like materials of the Grantee which
reasonably relate to Grantee's compliance with the provisions of the Franchise
Agreement. Such records shall be made available to City at Grantee's regular
place of business, but in no event outside the County of Los Angeles.
B. Should any examination or audit of Grantee's records reveal an
underpayment of'any fee required under this Franchise Agreement, the amount of
such underpayment shall become due and payable to City not later than thirty
(30) days after written notice of such underpayment is sent to Grantee by
City. Should an underpayment of more than three percent (3%) be discovered,
Grantee shall bear the entire cost of the accounts receivable audit.
SECTION 28 - GENERAL PROVISIONS
A. Force Majeure
Grantee shall not be in default under this Franchise Agreement in
the event that the collection, transportation and/or disposal services of
Grantee are temporarily interrupted or discontinued for any of the following
reasons: riots, wars, sabotage, civil disturbances, insurrection, explosion,
natural disasters such as floods, earthquakes, landslides and fires, strikes,
lockouts and other labor disturbances or other catastrophic events which are
beyond the reasonable control of Grantee. Other catastrophic events does not
include the financial inability of the Grantee to perform or failure .of the
Grantee to obtain any necessary permits or licenses from other governmental
agencies or the right to use the facilities of any public utility where such
failure is due solely to the acts or omissions of the Grantee. In.the event a
labor disturbance interrupts collection, transportation and/or disposal of
refuse by Grantee as required under this Franchise Agreement, City may elect
to exercise its rights under Section 16 of this Agreement.
B. Independent Contractor
Grantee is an independent contractor and not an officer, agent,
servant or employee of City. Grantee is solely responsible for the acts and
omissions of 'its officers, agents, employees, Grantees and subgrantees, if
any. Nothing in this Franchise Agreement shall be construed as creating a
partnership or joint venture between City and Grantee. Neither Grantee nor
its officers, employees, agents or subgrantees shall obtain any rights to
retirement or other benefits which accrue to City employees.
-26-
C. Pavement Damage
Grantee shall be responsible for any extraordinary damage to City's
driving surfaces, whether or not paved, resulting from the weight of vehicles
providing refuse collection services at the location of bins and containers on
public property. This Agreement does not purport to affect, in any way,J
Grantee's civil liability to any third parties.
D. Propertv Damage
Any physical damage caused by the negligent or willful acts or
omissions of employees, Grantees or subgrantees of the Grantee to private or
public property shall be repaired or replaced by Grantee, at Grantee's sole
expense.
E. Right of Entry
Grantee .shall have the right, until receipt of written notice
revoking permission to pass is delivered to Grantee, to enter or drive on any
private streets, court, place, easement or other private property for the
purpose of collecting or transporting refuse pursuant to this Franchise
Agreement.
F. Law to Govern; Venue
The law of the State 'of California shall govern this Franchise
Agreement. In the event of litigation between the parties, venue in state
trial courts shall lie exclusively in the County of Los Angeles. In the event
of litigation in a U.S. District Court, exclusive venue shall lie in the
Central District of California.
G. Fees and Gratuities
Grantee shall not, nor shall it permit any agent, employee or
subgranteeemployed by it to, request, solicit, demand or accept, either
directly or indirectly, any compensation or gratuity for the collection of
refuse otherwise required to be collected under this Franchise Agreement.
H. Prior Agreements and Amendment
This Franchise Agreement is intended to carry out City's obligations
to comply with the provisions of the California Integrated Waste Management
Act of 1989, ("AB 939") as it from time to time may be amended, and as
implemented by regulations of the California Integrated Waste Management Board
("Regulations"), as they from.time to time may be amended. In the event that
AB 939 or other state or federal laws 'or regulations enacted after this
Franchise Agreement has been enacted, prevent or preclude compliance with one
or more provisions of this Franchise Agreement, such provisions of the
Franchise Agreement shall be modified or suspended as may be necessary to
comply with such state or federal laws or regulations. No other amendment of
this Franchise Agreement shall be valid unless in writing duly executed by the
parties.
-27-
I. Compliance with Franchise Agreement
Grantee shall comply with those provisions of the Title 20 which are
applicable, and with any and all amendments to such applicable provisions
during the term of this Franchise Agreement.
J. Notices
All notices required or permitted to be given under this Franchise
Agreement shall .be in writing and shall be personally delivered or sent by
telecopier or United States certified mail, .postage prepaid, return receipt
requested, addressed as follows:
To City: City Manager
City of Santa Clarita
23920 Valencia Boulevard, Suite 300
Santa Clarita, CA 91355
Telecopier Number: (805) 259-8125
Copy to: Director of Public Works
Solid Waste Coordinator
City of Santa Clarita
23920 Valencia Boulevard, Suite 300
Santa Clarita, CA 91355
Telecopier Number: (805) 259-8125
And to: City Attorney
City of Santa Clarita
23920 Valencia Boulevard, Suite 300
Santa Clarita, CA 91355
Telecopier Number: (805) 259-8125
To Grantee:
Copy to:
or to such other address as either party may from time to time designate by
notice to the other given in accordance with this Section. Notice shall be
deemed effective on the date personally served or, if mailed, three (3)
business days from the date such notice is deposited in the United.States mail.
K. Savings Clause and Entirety
If any non -material provision of this Franchise Agreement shall for
any reason be held to be invalid or unenforceable, the invalidity .or
unenforceability of such provision shall not affect the validity and
enforceability of any of the remaining provisions of this Franchise Agreement.
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L. Exhibits Incorporated
Exhibits "A" through "D" are attached to and incorporated in this
Franchise Agreement by reference.
M. Identification Required,
(1) Grantee shall provide its employees, Grantees and
subgrantees with identification for all individuals who may
make personal contact with residents of the City.
WITNESS the execution of this Agreement on the day and year
written above.
ATTEST•
(City Clerk)
APPROVED AS TO FORM:
(City Attorney)
By:
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CITY OF SANTA CLARITA
(Mayor)
GRANTEE:
By:
STATE OF ')
ss
COUNTY OF )
On before me , personally
appeared I personally known to me or
proved to be the person who executed the within instrument entitled AGREEMENT
BETWEEN THE CITY OF SANTA CLARITA AND FOR THE COLLECTION,
TRANSPORTATION, RECYCLING AND DISPOSAL OF SOLID WASTE, as on
behalf of f Inc., a California corporation,' and
acknowledged to me that such execution was pursuant to its .bylaws or a
resolution of its board of directors.
DATE:
CORPORATE SEAL
-30-
EXHIBIT "A"
FRANCHISE AREA
All Single Family Residences in the
City shown on the map attached as Exhibit A.
I
A-1
portion of. the
EXHIBIT "B"
SPECIAL WASTES
Flammable waste.
Containerized waste (e.g., a drum, barrel, portable tank, box, pail, etc.).
Waste transported in a bulk tanker.
Liquid waste.
Sewage sludge.
Waste from a pollution control process.
Residue and debris from the cleanup of a spill or release of chemical
substances, commercial products or any other special wastes.
Contaminated soil; waste, residue, debris and articles from the cleanup of a
site or facility formerly used for the generation, storage, treatment,
recycling, reclamation or disposal of any other special wastes.
Dead animals.
Waste water.
Explosive substances.
Radioactive materials.
Materials which have been exposed to highly infectious or contagious diseases.
Hazardous materials.
B-1
EXHIBIT "C"
RECYCLING -PROGRAM
A. Grantee will cause at least twenty-five percent (25%) of the
waste stream to be collected under this Franchiue Agreement to be diverted
from ultimate deposit in landfills or transformation facilities by January 1,
1995, in accordance with the regulations implementing the California
Integrated Waste Management Act of .1989 (as amended) (also known as
"AB 939"). In the event this Agreement remains in effect, Grantee will cause
at least fifty percent (50`6) of the waste stream to be collected under this
Franchise Agreement to be diverted from deposit in landfills or transformation
facilities by January 1, 2000.
B. Grantee shall upon execution of this agreement institute a
commingled curbside recycling collection program .for City households within
the franchise by Earth Dav, April 1991.
Grantee shall furnish the curbside reycling services to the
franchise area described in Exhibit A at no cost to the City or to the program
participant during the term of the program.
The Grantee shall purchase sufficient numbers of containers at its
sole cost and distribute one (1) recycling container to each eligible
household. Each container shall be a minimum of 34 gallons in size, have a
cover, be provided with wheels, color, bright green, as approved by the City.
From time to time a household may damage or destroy the recycling
container supplied by the Grantee. The program participant shall replace the
recycling container at the expense of the household. The Grantee shall make
the replacement recycling containers available to any program participant at a
fee not to exceed their cost for the container plus delivery as set forth in
Exhibit D.
Grantee shall collect all recyclables deposited in any approved
container identified by an approved City of Santa Clarita recycling sticker.
Stickers shall be provided at Grantee's expense.
C. Grantee will provide City with written reports in a form
adequate to meet City's reporting requirements to the California Integrated
Waste Management Board, and to the County of Los Angeles throughout the term
of this Franchise Agreement wherein its performance under this program is set
forth in detail.
C-1
II.
EXHIBIT "D"
SCHEDULE OF RATES
Single -Family Residential
A. Levels of Service (Weekly)
(1) One 90 -gallon cart and a maximum
of two 32 -gallon baggies, or two
32 -gallon barrels, or one of each;
a maximum of two bundles of brush,
and an unlmited number of containers
of ,recyclables
(2) Level (1) plus one additional
90 -gallon cart
(3) Level (1) plus two additional
90 -gallon carts
(4) Level (1) plus three additional
90 -gallon carts
B. Fees
$16.85
per
month
25.28
per
month
33.71
per
month
42.14
per
month
(1)
Refundable Cart Deposit
15.00
(2)
Redelivery Fee
15.00
(3)
Replacement or Additional Carts
50.00
(4)
Replacement Cart Delivery Fee
15.00
(5)
34 -Gallon Recycling Cart Replacement
10.00
(6)
Additional 34 -Gallon Recycling Cart
10.00
(7)
Recycling Cart Delivery Free
15.00
(8)
Restart Fee
15.00
Multi -Family Residential
1-1/2 yard bin, once per week
55.00
1-1/2 yard bin, twice per week
90.00
1-1/2 yard,bin, three times per week
125.00
1-1/2 yard bin, four times per week
160.00
1-1/2 yard bin, five times per week
195.00
1-1/2 yard bin, six times per week
225.00
1-3 yard bin, once per week
65.00
1-3 yard bin, twice per week
100.00
1-3 yard bin, three times per week
135.00
1-3 yard bin, four times per week
170.00
1-3 yard bin, five times per week
205.00
1-3 yard bin, six times per week
235.00
Baggie Service Not to exceed
75% of base rate
III. City Special Pickups
Pickups 1-25 No Charge
Each additional pickup 1$
D-1