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HomeMy WebLinkAbout2009-05-26 - AGENDA REPORTS - RATE ADJUSTMENT SOLID WASTE (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: AA CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: May 26, 2009 ANNUAL RATE ADJUSTMENT FOR FRANCHISED SOLID WASTE SERVICE PROVIDERS Public Works RECOMMENDED ACTION City Council adopt a resolution for the Fourth Amendment to the Agreement Between the City of Santa Clarita and USA Waste of California, Inc. (dba Blue Barrel Disposal), for Residential Solid Waste Management Services allowing an increase of their single-family rates by 0.29 percent and an increase of their multifamily rates by 0.06 percent based on the formula outlined in their Franchise Agreement and an extraordinary rate increase request. The Fourth Amendment also modifies the Franchise Agreement to alter one existing program and add an additional five programs, subject to City Attorney Approval. Adopt a resolution for the Ninth Amendment to the Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services allowing an adjustment in rates by 0.04 percent based on the formula outlined in their Franchise Agreement and an extraordinary rate increase request, subject to City Attorney approval. BACKGROUND In November 2003, the City Council selected USA Waste of California, Inc. (dba Blue Barrel Disposal), as the exclusive solid waste hauler for residential services and Burrtec Waste Industries, Inc., for commercial services. Pursuant to Section 6.3 of the Agreement Between the City of Santa Clarita and USA Waste of California Inc (dba Blue Barrel Disposal) for Residential Solid Waste Management Services and the Ageement Between the City of Santa Clarita and Burrtec Waste Industries Inc. for Commercial Solid Waste Management Services (Franchise Agreements), Blue Barrel and Burrtec may request rate adjustments for their next rate Adopted: Ra 09-31, WO oq-3a year (July 1, 2009 through June 30, 2010) if they submit a request -for the adjustment by the first of April and follow the specific guidelines for a rate increase as outlined in Section 6.4 of the Franchise Agreements. Pursuant to Section 6.3 of the Franchise Agreements, Council's discretion for regular rate increases is limited to determining, based on substantial evidence, whether the requested rate adjustment meets the requirements as set forth in the Franchise Agreements. Attached is a summary of the Method of Adjustment for this rate adjustment period as described in Section 6.4 of the Franchise Agreements. Based on the formula, the rate adjustment for Fiscal Year 2009/2010 is -0.06 percent. In addition to the annual adjustment, Blue Barrel Disposal requested an extraordinary rate increase to offset the cost of the increase in the Countywide Solid Waste Management Fee. Section 6.6 of the Franchise Agreements states that the City shall consider an extraordinary adjustment based upon changes to the refuse disposal gate rate should there be a change in the direct per ton surcharge assessed at the disposal site by federal, state, or local regulatory agencies. On October 7, 2008, the Los Angeles County Board of Supervisors approved an increase to the Countywide Solid Waste Management Fee from $0.86 to $1.50 per ton of waste disposed at solid waste landfills and transformation facilities as of January 1, 2009. This fee is used by the County to implement new and enhance existing waste reduction and recycling programs, including the expansion of the Household Hazardous Waste/Electronic Waste Collection program, the creation of additional permanent environmental collection facilities and other Countywide programs and initiatives. Any future change to this fee requires approval from the Board of Supervisors. Since the Countywide Solid Waste Management Fee is assessed on a per ton basis, it affects each sector in the following ways: Single-family residential: 0.35 percent increase Multifamily residential:, 0.12 percent increase Commercial: 0.10 percent increase As a result of the franchise agreement rate adjustment methodology and the extraordinary rate adjustment, the rates would be effected as follows: • Single-family residential: 0.29 percent increase • Multifamily residential: 0.06 percent increase • Commercial: 0.04 percent increase A matrix outlining the total changes for each of the franchised haulers is provided as an attachment. If approved by Council, staff will work with the franchised haulers to provide proper notification of the rate adjustment to their customers and will begin the new rate structure on July 1, 2009. The rate increase will not negatively affect the diversion programs currently being provided by the haulers. In addition to the rate adjustment for Blue Barrel Disposal and Burrtec Waste Industries, staff is proposing to amend the residential Franchise Agreement to modify one existing program and create an additional five programs. Section 4.5.2 of the Franchise Agreement requires that Blue Barrel's fleet meet a number of requirements, including operating a fleet younger than ten years of age. Blue Barrel has been out of compliance with this portion of the Franchise Agreement since the commencement of the Franchise Agreement up until November 12, 2008. Because of this noncomplaince, the City levied liquidated damages in the amount of $470,500 on November 24, 2008. To resolve this issue, City staff and Blue Barrel staff have been working collectively to address the issue of liquidated damages. Based on these collaborative efforts, staff is proposing that instead of providing the liquidated damages in the form of cash, Blue Barrel should modify one franchise -required program and implement an additional five diversion programs. A summary of the proposed programs is attached. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT No fiscal impact as a result of this item. ATTACHMENTS Resolution - Blue Barrel Blue Barrel Rates Resolution - Burrtec Ninth Amendment - Burrtec Burrtec Rates Rate Adjustment Request Methodology Blue Barrel Diversion Programs Amendment - Blue Barrel Disposal —3 RESOLUTION 09 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES WHEREAS, the City is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc., dba Blue Barrel Disposal (Blue Barrel) entered into that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., dba Blue Barrel Disposal for Residential Solid Waste Management Services" (the Agreement); and WHEREAS, pursuant to Section 6.3 of the Agreement, Blue Barrel is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2009 to June 30, 2010; and WHEREAS, pursuant to Section 6.6 of the Agreement, Blue Barrel is entitled to pursue an extraordinary rate adjustment based on the direct per ton surcharge levied by local regulatory agencies; and WHEREAS, the Los Angeles County Board of Supervisors increased the Countywide Solid Waste Management Fee from $0.86 to $1.50 per ton of waste disposed at solid waste landfills and transformation facilities as of January 1, 2009; and WHEREAS, the City has reviewed the extraordinary rate request submitted by Blue Barrel and find the request to be acceptable per the Agreement; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by increasing the maximum rates as outlined in Section 6.3 and 6.6 of the Agreement; and WHEREAS, Section 4.5.2 of the Franchise Agreement requires that Blue Barrel Disposal's fleet meet a number of requirements; including operating a fleet younger than ten years of age; and WHEREAS, there has been a dispute between the City and Blue Barrel regarding Blue Barrel's compliance with Section 4.5.2 of the Residential Franchise Agreement; and WHEREAS, City staff and Blue Barrel staff have been working collectively to address the issues related to the dispute, and in addition to identify ways to improve the level of services provided by Blue Barrel to increase waste diversion. These collaborative efforts have resulted in the modification of one franchise program and the creation of five additional programs; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by replacing the language for the manure collection program; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by adding five additional sections to the Agreement to include a sharps program, clothing recycling program, multifamily outreach program, an increased outreach program, and sustainability program; and WHEREAS, The City and Blue Barrel shall have no obligation to provide additional consideration for these modifications and new programs other than agreed to. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The City Council does hereby find, determine, and declare pursuant to California Public Resources Code Section 40059(a)(1) and Section 7 of Article 11 of the California Constitution that the public health, safety, and well-being require approval of that certain "Fourth Amendment to Agreement Between the City of Santa Clarita and USA Waste of California, Inc., dba Blue Barrel Disposal for Residential Solid Waste Management Services" (the Fourth Amendment), a copy of which is attached. The Mayor is authorized to execute the Fourth Amendment on behalf of the City and such Fourth Amendment is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this _ day of 2009. MAYOR ATTEST: CITY CLERK S STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do 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 2009, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK CEJ STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 09 -_ adopted by the City Council of the City of Santa Clarita, California on , 2009, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this _ day of 2009. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk 7 FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY'OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES This FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES, (Fourth Amendment) is entered into this day of 2009, between the City of Santa Clarita, California, a California municipal corporation (City) and USA Waste of California, Inc., dba Blue Barrel Disposal, a California corporation (Blue Barrel) to amend that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., dba Blue Barrel Disposal for Residential Solid Waste Management Services" (the Agreement), dated November 20, 2003. RECITALS WHEREAS, the City is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc., dba Blue Barrel Disposal (Blue Barrel) entered into that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., dba Blue Barrel Disposal for Residential Solid Waste Management Services" (the Agreement); and WHEREAS, pursuant to Section 6.3 of the Agreement, Blue Barrel is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2009 to June 30, 2010; and WHEREAS, pursuant to Section 6.6 of the Agreement, Blue Barrel is entitled to pursue an extraordinary rate adjustment based on the direct per ton surcharge levied by local regulatory agencies; and WHEREAS, the Los Angeles County Board of Supervisors increased the Countywide Solid Waste Management Fee from $0.86 to $1.50 per ton of waste disposed at solid waste landfills and transformation facilities as of January 1, 2009; and WHEREAS, the City has reviewed the extraordinary rate request submitted by Blue Barrel and find the request to be acceptable per the Agreement; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by increasing the maximum rates as outlined in Section 6.3 and 6.6 of the Agreement; and WHEREAS, Section 4.5.2 of the Franchise Agreement requires that Blue Barrel Disposal's fleet meet a number of requirements, including operating a fleet younger than ten years of age; and WHEREAS, Blue Barrel has been out of compliance with Section 4.5.2 of the Franchise Agreement since the commencement of the Franchise Agreement up until November 12, 2008. As a result of the noncompliance with Section 4.5.2, the City levied liquidated damages in the amount of $470,500 on November 24, 2008; and WHEREAS, City staff and Blue Barrel staff have been working collectively to get Blue Barrel's fleet into compliance with the agreement and address the issue of liquidated damages. These collaborative efforts have resulted in the modification of one franchise program and the creation of five additional programs; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by replacing the language for the manure collection program; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by adding five additional sections to the Agreement to include a sharps program, clothing recycling program, multifamily outreach program, an increased outreach program, and a sustainability program. NOW, THEREFORE, the City and Blue Barrel, in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Exhibit "2" of the Agreement, entitled "Initial Maximum Rates" shall be amended to contain the following maximum rates starting on the rate year commencing on July 1, 2009, and ending June 30, 2010: ❑ Standard Service Rate $17.33 per month ❑ Reduced Rate for no Greenwaste Services $15.33 per month ❑ Reduced Rate for Senior/Lifeline Customers $13.86 per month ❑ Mobile Home Service Rate $13.00 per month The multifamily rates will be as follows: Container Number of Weekl Pickups Size 1 2 3 4 5 6 7 1.5 d 52.25 104.52 156.77 209.02 261.27 313.54 365.79 2 d 55.71 111.39 167.10 222.80 278.48 334.17 389.88 2 L3dv 162.59 125.14 187.74 250.31 312.88 375.46 438.05 4 d 69.45 138.93 208.37 277.82 347.28 416.75 486.19 Special Services Costs Street Litter Carts $15.37 per set per month Restart Charge $15.63 Refuse Overage Extra Pickup $5.22 per pickup Locking Bin $10.43 per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $20.85 per pickup Additional Bin Cleanings $36.49 per cleaning Extra Bin Empties $36.49 per empty Compactor Rates 2x comparable bin rate Late Fees 1.5% per month Emergency Services $72.98 per hour Manure Collection 100% of comparable multifamily bin refuse rate Prepayment Discount One month free with 11 months prepaid SECTION 2. Section 4.4 of the Agreement shall be amended to read as follows: 4.4 Manure Collection Company shall provide any Customer that requests a Container for the Collection of manure with either a 64 -gallon Cart (considered a green waste cart) or a Bin. Company shall collect all manure placed in a green waste cart or Bin at least once per week, or more often if arranged between Customer and Company. Customers may be instructed not to fill the Containers above a specified line or weight, so as not to damage the Containers or Collection equipment, and City shall resolve any disputes regarding the maximum weight that may be accommodated in such Containers. Customers may place the manure in their green waste carts, which is provided at no charge. Customers that utilize bin service for manure collection may be charged no more than the rate as set forth in Exhibit 2 for refuse collection service of the same size Container and at the same frequency. All manure collected shall be diverted from landfilling through composting or other means and may not be collected or commingled with Refuse. SECTION 3: The agreement shall be amended to contain the following sections: 4.18 Sharps Program Home generated sharps, such as needles, syringes, and lancets shall be placed in a sharps container and removed from the regular waste stream to minimize exposure to solid waste workers and recyclables processors. To ensure sharps are handled in an appropriate manner, Company shall provide, upon request, each residential account with up to one postage -paid mail -back sharps containers per year at no additional cost. Seniors shall be provided with up to two postage -paid mail -back sharps containers per year at no Ab additional cost. Residents requesting Sharps containers may request containers only at participating pharmacies. Company shall work with pharmacies located within the City's boundaries to establish this program and provide sharps containers to participating pharmacies. In addition, Company shall promote this program in all quarterly newsletters and in other forms of outreach as determined by City. Additionally, Company shall provide to the City on an annual basis not less than 200 postage -paid mail -back Sharps containers for City staff to distribute at special events. 4.19 Textile Diversion Program Company shall provide a minimum of two City-wide textile collection drives on an annual basis. Company will deliver textile collection bags to all customers (both single- family and tenants of multi -family complexes) and will collect the bags on a scheduled day. Textile bags will be delivered not less than one week prior to the scheduled clothing collection day, but no more than two weeks prior to the scheduled collection day. Company shall also make available a textile drop off location at the Company's yard, which shall remain open during the hours specified in Section 4. 1.11 of this agreement. All textiles collected through this program shall be diverted from the landfill either through donation to a local non-profit organization or through other means of diversion. 5.6 Multi -Family Outreach Program Company shall provide a public education tool kit to all multi -family complexes in the City at no additional cost. The tool -kit may include posters, flyers, door hangers, recycling guides, bin enclosure signs, recycle bin signs, and any thing else deemed appropriate. Materials should be created to assist multi -family complexes in implementing a recycling program and to assist the tenants in making the program successful. Company shall provide in-home basket upon request to any tenant of a multi -family complex that has recycling bin service. Requests for in-home baskets may be submitted by the management company, homeowners association, or resident. Company shall arrange for the delivery of the in-home basket at no additional cost to the customer. Company shall mail a biannual newsletter to all of the tenants of multi -family dwellings within the City during the two year grant period. After the grant period, or not less than two years, Company shall mail an annual newsletter to all of the tenants of multi -family dwellings. 5.7 Increased Residential Outreach In order to increase the City's diversion and highlight the programs available to residents in the City, Company shall provide a minimum funding amount of $10,000 for the City to 11 administer a comprehensive outreach program. This program will be created in conjunction with Company staff and City staff and shall be fully implemented no later than July 1, 2010. 5.8 Sustainability Program Company shall partner with 5-10 large businesses in the City to conduct a sustainability cost analysis, equaling a total cost of up to $50,000. This analysis shall include an assessment of facilities and operations, execution of programs that improve environmental and economic performance, and establishment of a roadmap for a more sustainable future. The sustainability analysis shall look at efficiencies in waste reduction, water, energy, etc. (Signatures on next page) IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARITA A California Municipal Corporation Frank Ferry, Mayor ATTEST: Sharon L. Dawson, MMC City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney At 5 State of California County of On Date personally appeared _ Place Notary Seal Above U.S.A. WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL [CEO, President, Chairman of the Board or any Vice President] And by: [The Secretary, any assistant secretary, CFO or any assistant treasurer] before me, Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature on Signature of Notary Public �3 2009 Blue Barrel Disposal Rates The standard service rates will be changed as follows: Level of Service 2008 2009 Standard Service Rate $17.28 $17.33 Reduced Rate (no greenwaste) $15.28 $15.33 Reduced Rate (Senior/Lifeline customer) $13.82 $13.86 Mobile Home Service Rate $12.96 $13.00 The multifamily rates will be changed as follows: Container Number of Weekly Pickups 2009 Size 1 2 3 4 5 6 7 '®$ a„ $52 22 4��$�104 45,E $1$56,67 1208 90� �"x$261, 1y2 $31,3 P35 $365 57 7 1.5 d '09 $52.25 $104.52 $156.77 $209.02 $261.27 $313.54 $365.79 2.yd08 :" $55 67y.; $111 33qX$1167 00� $22m2 6'6"$27832 $°33x397 ; $389 64 xA 2 yd ('09) $55.71 $111.39 $167.10 $222.80 $278.48 1 $334.17 $389.88 wv ,C ) , ,; ',N'$62"$1=25 0',,"T41'$7 62 $25016;'` y$3;12 69 $375 24. $"437 748'`;' 3 d 08 3 yd ('09) $62.59. $125.14 $187.74 $250.31 $312.88 $375.46 $438.05 69 41t;$277:66 Extra Bin EmptiesIN- 4 d '09 $69.45 $138.93 $208.37 1 $277.82 $347.28 $416.75 $486.19 The special service rates will be changed as follows: Special Services 2009 Street Litter Carts ;"$1533 eret ,er merith $15.37 per set per month Restart Charge "$1.SpS9 �} .� `= $15.63 Refuse Overage Extra Pickup�,� $5�20per pickups `w $5.22 per pickup Locking Bin x$10:40 erµbin er months ,£ $10.43per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $20:79 ,er, cku $20.85 per pickup Additional Bin Cleanings $36x30,,eric_1'`eanin . w $36.49 per cleaning Extra Bin EmptiesIN- rA,, $36.49 er empty Com actor Rates2x+com arable rate; W P;' 2x comparable rate Late Fees L5/0 '.eramonth r 1.5% er month Emergency Services ?$72.77f er hour .` " $72.98 Manure Collection x`150%ofcom arable p� iii multifamIbm refuse rate, ° 100 /o of comparable multifamily bin refuse rate Prepayment Discount O0 -month free `with 11 months repaid One month free with 11 months prepaid r�= RESOLUTION 09 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE NINTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES WHEREAS, the City is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and Burrtec Waste Industries, Inc., entered into that certain "Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services" (the Agreement); and WHEREAS, pursuant to Section 6.3 of the Agreement, Burrtec Waste Industries, Inc., is entitled to pursue an annual adjustment to its maximum rates starting in rate year 3 of the Agreement and for all subsequent rate years except rate year 8 and rate year 9; and WHEREAS, pursuant to Section 6.6 of the Agreement, Burrtec Waste Industries, Inc. is entitled to pursue an extraordinary rate adjustment based on the direct per ton surcharge levied by local regulatory agencies; and WHEREAS, the Los Angeles County Board of Supervisors increased the Countywide Solid Waste Management Fee from $0.86 to $1.50 per ton of waste disposed at solid waste landfills and transformation facilities as of January 1, 2009; and WHEREAS, the City has reviewed the extraordinary rate request submitted by Burrtec Waste Industries and find the request to be acceptable per the Agreement; and WHEREAS, the City and Burrtec desire to amend the Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.6 of the Agreement. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. The City Council does hereby find, determine, and declare pursuant to 1S California Public Resources Code Section 40059(a)(1) and Section 7 of Article 11 of the California Constitution that the public health, safety, and well-being require approval of that certain "Ninth Amendment to Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc:, for Commercial Solid Waste Management Services" (the Ninth Amendment) a copy of which is attached. The Mayor is authorized to execute the Ninth Amendment on behalf of the City and such Ninth Amendment is hereby approved. 2 /46 SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this _ day of 2009. MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, MMC, City Clerk of the City of Santa Clarita, do 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 2009, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK /7- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 09 -, adopted by the City Council of the City of Santa Clarita, California on , 2009 which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 2009.- Sharon 009.. Sharon L. Dawson, MMC City Clerk By Susan Caputo, CMC Deputy City Clerk NINTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES This NINTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR COMMERCIAL SOLID WASTE MANAGEMENT SERVICES (Ninth Amendment) is entered into this day of 2009, between the City of Santa Clarita, California, a California municipal corporation (City) and Burrtee Waste Industries, Inc., a California corporation (Burrtec) to amend that certain "Agreement Between the City of Santa Clarita and Burrtec Waste Industries, Inc., for Commercial Solid Waste Management Services" (the Agreement), dated November 20, 2003. RECITALS WHEREAS, the City is empowered under Section 7 of Article XI of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article XI of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and Burrtec entered into that the Agreement; and WHEREAS, pursuant to Section 6.3 of the Agreement, Burrtec, is entitled to pursue an annual adjustment to its maximum rates starting in rate year 3 of the Agreement and for all subsequent rate years, except rate year 8 and rate year 9; and WHEREAS, pursuant to Section 6.6 of the Agreement, Burrtec Waste Industries, Inc. is entitled to pursue an extraordinary rate adjustment based on the direct per ton surcharge levied by local regulatory agencies; and WHEREAS, the Los Angeles County Board of Supervisors increased the Countywide Solid Waste Management Fee from $0.86 to $1.50 per ton of waste disposed at solid waste landfills and transformation facilities as of January 1, 2009; and WHEREAS, the City has reviewed the extraordinary rate request submitted by Burrtec Waste Industries, Inc. and find the request to be acceptable per the Agreement; and WHEREAS, the City and Burrtec desire to amend the Agreement by adjusting the maximum rates as outlined in Section 6.3 and 6.6 of the Agreement. NOW, THEREFORE, the City and Burrtec, in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Exhibit "2" of the Agreement, entitled "Initial Maximum Commercial Rates" shall be amended to contain the following maximum rates starting on rate year 6 (July 1, 2009): Container Extra Bin Empties Number of Weekly Pickups Compactor Rates 2x comparable rate Size 1 2 3 4 5 6 7 90 -gal $42.13 $75.84 $126.40 $168.54 $210.68 $252.81 $294.94 32 -gal $37.67 $67.81 $113.00 $150.67 $188.35 $226.03 $263.70 1.5 yd $58.92 $114.87 $170.85 $226.22 $281.58 $336.96 $392.33 2 yd $61.30 $119.53 $177.77 $235.40 $293.00 $350.63 $408.25 3 yd -$84.23 $67.04 $130.72 $194.40 $257.43 $320.44 $383.47 $446.48 4 yd' $164.27 $244.28 $323.47 $402.64 $481.82 $561.01 6 yd $107.73 $210.05 $312.40 $413.65 1 $514.90 $616.18 $717.43 Special Services Extra Bin Empties $36.40 per bin Compactor Rates 2x comparable rate Locking Bins $10.40 per bin/per month Additional Bin Cleaning $36.40 per cleaning Commercial Bulky Item Pickup $20.80 per item Emergency Services $72.80 per hour Late Fee 1.5% per month IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. (signatures on next page) 4 20 CITY OF SANTA CLARITA A California Municipal Corporation Frank Ferry, Mayor ATTEST: Sharon L. Dawson, MMC City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney State of California County of On Date personally appeared _ BURRTEC WASTE INDUSTRIES, INC. [CEO, President, Chairman of the Board or any Vice President] And by: [The Secretary, any assistant secretary, CFO or any assistant treasurer] before me, Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Place Notary Seal Above Signature of Notary Public Yi 42— 2009 Burrtec Rates Container Number of Weekl Pickups Size 1 2 3 4 5 6 7 ,90a1(y08. $4212 `„;$77581$12635$16847`$21060$25271 ',$29483= 90 -gal ('09) $42.13 $75.84 $126.40 $168.54 $210.68 $252.81 $294.94 3;2.gal("08)x` $37165 ne = $6,7 78$`;11296 $1`5061 "`$}188k27�$22594 $2'63!60 32 -gal (109) $37.67 $67.81 $113.00 $150.67 $188.35 $226.03 $263.70 15 d (08$158 8k7$114'78$17,0 71 x$2'26 04$28136 $33`6 69 , $392 02' 1.5 yd ('09) $58.92 $114.87 $170.85 $226.22 $281.58 $336.96 $392.33 2 dt(08) ,'$¢1 X28 $11948 _.$177x70„,$2�3530 $29289$350 49 �$408 08 t 2 yd ('09) $61.30 $119.53 $177.77 $235.40 $293.00 $350.63 $408.25 3yd('08) _.$67.d01$1306.7,'$19433� vO. ,� , $25 732 $320 31$3&332 .�$4463Oa $20.80 3 yd ('09) $67.04 $130.72 $194.40 $257.43 $320.44 $383.47 $446.48 4 d= ( `08)$8420 £ $16421 $24419 Y $3233'4 `$4`0248 1$48t163 $56079 4 yd ('09) $84.23 $164.27 $244.28 $323.47 $402.64 $481.82 $561.01 6yd ('708)x`$107 68a"$209x97$31�2r28 x$413,49 514_;70"x$717`14 6 yd ('09) $107.73 $210.05 $312.40 $413.65 $514.90 $616.18 $717.43 Special Services 7720®8_ " 2009 Extra Bin Empties $36 38 perbm " a r:` $36.40 per bin Compactor Rates 72xcomparable rate„! 2x comparable rate Locking Bins $1040 ter.{brn/ er month H $10.40 per bin/per month Additional Bin Cleaning $3°6:38 per'clearing':° $36.40per cleanin Commercial Bulky Item Pickup $20 79 "eritem $20.80 per item Emergency Services $72 77 µerthour '-", , $72.80 per hour Late Fee 15% per months' -s .. 1.5% per month S:/envsrvcs/solwast2/counciV2009/rate adjustment agenda item attachmentAurrtec rates July 2009 2"3 2009 COMMERCIAL AND RESIDENTIAL WASTE HAULERS RATE ADJUSTMENT REQUEST METHODOLOGY The formula for determining a rate increase is outlined in Section 6.4 of the Franchise Agreements as follows: Cost Category Weighting Rate Adjustment Index Labor 30% Producer Price Index, PCU4212#2, local trucking without .80 Fuel storage, waste collection Fuel 5% Producer Price Index, WPU057303 not seasonally adjusted, -1.91 Equipment fuels and related products and power, #2 diesel fuel Equipment 15% Producer Price Index, PCU3713#139, truck and bus bodies, 1.02 Disposal refuse and garbage(packer type) Disposal 25% Consumer Price Index for all urban consumers, all items index .02 All Other (CPI -U) — U.S. city average All Other 25% 50% of change in Consumer Price Index for all urban .01 Total consumers, all items index (CPI -U) — U.S. city average Total 100% 100% CHANGE IN CLASSIFICATION SYSTEM Since the Franchise Agreements were written, some changes had to be incorporated in the rate adjustment calculation. The United States Department of Labor — Bureau of Labor Statistics made a change in how they labeled certain Producer Price Indices. In the past, they used the Standard Industrial Classification (SIC) system to label the indices, but recently have made the shift from SIC codes to the North American Industry Classification System (NAICS). Therefore, the Producer Price Index (PPI) for labor and the PPI for equipment no longer exists in the format outlined in the Franchise Agreement. Per Waste Management's request, Hilton Farnkopf & Hobson contacted the Department of Labor to determine the most appropriate factors for replacing the previous ones. The PPI labeled as PCU4212#2, local trucking without storage, waste collection was replaced with PCU56211- 56211 Waste Collection. The PPI labeled as PCU3713#139, truck and bus bodies, refuse and garbage (packer type) was replaced with PCU336211336211 - Motor Vehicle Body Manufacturing. To calculate the labor component, the PPI index labeled PCU56211-56211- was used. RATE INCREASE CALCULATIONS Cost Cate ori :� � Dec2007 `��Dec 2008� Chan a -' ��Wei` hhi� Percent N. Labor 108.4 111.3 .0267 30% .80 Fuel 271.9 168.0 -.3821 5% -1.91 Equipment 203.9 217.8 .0681 15% 1.02 Disposal 210.036 210.228 .0009 25% .02 All Other 210.036 210.228 .0009 25% .01 Total 1 100% -.06 Diversion Programs 4.4 Manure Collection Company shall provide any Customer that requests a Container for the Collection of manure with either a 64 -gallon Cart (considered a green waste cart) or a, Bin. Company shall collect all manure placed in a green waste cart or Bin at least once per week, or more often if arranged between Customer and Company. Customers may be instructed not to fill the Containers above a specified line or weight, so as not to damage the Containers or Collection equipment, and City shall resolve any disputes regarding the maximum weight that may be accommodated in such Containers. Customers may place the manure in their green waste carts, which is provided at no charge. Customers that utilize bin service for manure collection may be charged no more than the rate as set forth in Exhibit 2 for refuse collection service of the same size Container and at the same frequency. All manure collected shall be diverted from landfilling through composting or other means and may not be collected or commingled with Refuse. 4.18 Sharps Program Home generated sharps, such as needles, syringes, and lancets shall be placed in a sharps container and removed from the regular waste stream to minimize exposure to solid waste workers and recyclables processors. To ensure sharps are handled in an appropriate manner, Company shall provide, upon request, each residential account with up to one postage -paid mail - back sharps containers per year at no additional cost. Seniors shall be provided with up to two postage -paid mail -back sharps containers per year at no additional cost. Residents requesting Sharps containers may request containers only at participating pharmacies. Company shall work with pharmacies located within the City's boundaries to establish this program and provide sharps containers to participating pharmacies. In addition, Company shall promote this program in all quarterly newsletters and in other forms of outreach as determined by City. Additionally, Company shall provide to the City on an annual basis not less than 200 postage - paid mail -back Sharps containers for. City staff to distribute at special events. 4.19 Textile Diversion Program Company shall provide a minimum of two City-wide textile collection drives on an annual basis. Company will deliver textile collection bags to all customers (both single-family and tenants of multi=family complexes) and will collect the bags on a scheduled day. Textile bags will be delivered not less than one week prior to the scheduled clothing collection day, but no more than two weeks prior to the scheduled collection day. Company shall also make available a textile drop off location at the Company's yard, which shall remain open during the .hours specified in Section 4. 1.11 of this agreement. All textiles collected through this program shall be diverted from the landfill either through donation to a local non-profit organization or through other means of diversion. 5.6 Multi -Family Outreach Program Company shall provide a public education tool kit to all multi -family complexes in the City at no additional cost. The tool -kit may include posters, flyers, door hangers, recycling guides, bin enclosure signs, recycle bin signs, and any thing else deemed appropriate. Materials should be created to assist multi -family complexes in implementing a recycling program and to assist the tenants in making the program successful. Company shall provide in-home basket upon request to any tenant of a multi -family complex that has recycling bin service. Requests for in-home baskets may be submitted by the management company, homeowners association, or resident. Company shall arrange for the delivery of the in-home basket at no additional cost to the customer. Company shall mail a biannual newsletter to all of the tenants of multi -family dwellings within the City during the two year grant period. After the grant period, or not less than two years, Company shall mail an annual newsletter to all of the tenants of multi -family dwellings. 5.7 Increased Residential Outreach In order to increase the City's diversion and highlight the programs available to residents in the City, Company shall provide a minimum funding amount of $10,000 for the City to administer a comprehensive outreach program. This program will be created in conjunction with Company staff and City staff and shall be fully implemented no later than July 1, 2010. 5.8 Sustainability Program Company shall partner with 5-10 large businesses in the City to conduct a sustainability cost analysis, equaling a total cost of up to $50,000. This analysis shall include an assessment of facilities and operations, execution of programs that improve environmental and economic performance, and establishment of a roadmap for a more sustainable future. The sustainability analysis shall look at efficiencies in waste reduction, water, energy, etc. FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES This FOURTH AMENDMENT TO AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL FOR RESIDENTIAL SOLID WASTE MANAGEMENT SERVICES, (Fourth Amendment) is entered into this day of 2009, between the City of Santa Clarita, California, a California municipal corporation (City). and USA Waste of California, Inc., dba Blue Barrel Disposal, a California corporation (Blue Barrel) to amend that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., dba Blue Barrel Disposal for Residential Solid Waste Management Services" (the Agreement), dated November 20, 2003. RECITALS WHEREAS, the City is empowered under Section 7 of Article 11 of the California Constitution to make and enforce, within its limits, all police and sanitary ordinances and regulations not in conflict with general laws; and WHEREAS, in partial implementation of Section 7 of Article 11 of the California Constitution, California Public Resources Code Section 40059 authorizes the City to determine all aspects of handling of solid waste that are of local concern, including the frequency of collection, means of collection and transportation, level of services and nature, location, and extent of waste handling services; and WHEREAS, on November 20, 2003, the City and USA Waste of California, Inc., dba Blue Barrel Disposal (Blue Barrel) entered into that certain "Agreement Between the City of Santa Clarita and USA Waste of California, Inc., dba Blue Barrel Disposal 'for Residential Solid Waste Management Services" (the Agreement); and WHEREAS, pursuant to Section 6.3 of the Agreement, Blue Barrel is entitled to pursue an annual adjustment to its maximum rates for the rate year commencing on July 1, 2009 to June 30, 2010; and WHEREAS, pursuant to Section 6.6 of the Agreement, Blue Barrel is entitled to pursue an extraordinary rate adjustment based on the direct per ton surcharge levied by local regulatory agencies; and WHEREAS, the Los Angeles County Board of Supervisors increased the Countywide Solid Waste Management Fee from $0.86 to $1.50 per ton of waste disposed at solid waste landfills and transformation facilities as of January 1, 2009; and WHEREAS, the City has reviewed the extraordinary rate request submitted by Blue Barrel and find the request to be acceptable per the Agreement; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by increasing the maximum rates as outlined in Section 6.3 and 6.6 of the Agreement; and WHEREAS, Section 4.5.2 of the Franchise Agreement requires that Blue Barrel Disposal's fleet meet a number of requirements, including operating a fleet younger than ten years of age; and WHEREAS, there has been a dispute between the City and Blue Barrel regarding Blue Barrel's compliance with Section 4.5.2 of the Residential Franchise Agreement; and WHEREAS, City staff and Blue Barrel staff have been working collectively to address the issues related to the dispute, and in addition to identify ways to improve the level of services provided by Blue Barrel to increase waste diversion. These collaborative efforts have resulted in the modification of one franchise program and the creation of five additional programs; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by replacing the language for the manure collection program; and WHEREAS, the City and Blue Barrel desire to amend the Agreement by adding five additional sections to the Agreement to include a sharps program, clothing recycling program, multifamily outreach program, an increased outreach program, and sustainability program; and WHEREAS, The City and Blue Barrel shall have no obligation to provide additional consideration for these modifications and new programs other than agreed to. NOW, THEREFORE, the City and Blue Barrel, in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Exhibit "2" of the Agreement, entitled "Initial Maximum Rates" shall be amended to contain the following maximum rates starting on the rate year commencing on July 1, 2009, and ending June 30, 2010: ❑ Standard Service Rate $17.33 per month ❑ Reduced Rate for no Greenwaste Services $15.33 per month ❑ Reduced Rate for Senior/Lifeline Customers $13.86 per month ❑ Mobile Home Service Rate $13.00 per month The multifamily rates will be as follows: Container Number of Weekly Pickups 71 2 MIJ Size 1 2 3 4 5 6 7 1.5 d 52.25 104.52 156.77 209.02 261.27 313.54 365.79 2 yd 55.71 111.39 167.10 222.80 278.48 334.17 389.88 3 yd 62.59 125.14 187.74 250.31 312.88 375.46 438.05 4 yd 69.45 138.93 208.37 277.82 347.28 416.75 486.19 Special Services Costs Street Litter Carts $15.37 per set per month Restart Charge $15.63 Refuse Overage Extra Pickup $5.22 per pickup Locking Bin $10.43 per bin per month Bulk Billing Discount 8% Extra Bulky Item Pickup $20.85 per pickup Additional Bin Cleanings $36.49 per cleaning Extra Bin Empties $36.49 per empty Compactor Rates 2x comparable bin rate Late Fees 1.5% per month Emergency Services $72.98 per hour Manure Collection 100% of comparable multifamily bin refuse rate Prepayment Discount One month free with 11 months prepaid SECTION 2. Section 4.4 of the Agreement shall be amended to read as follows: 4.4 Manure Collection Company shall provide any Customer that requests a Container for the Collection of manure with either a 64 -gallon Cart (considered a green waste cart) or a Bin. Company shall collect all manure placed in a green waste cart or Bin at least once per week, or more often if arranged between Customer and Company. Customers may be instructed not to fill the Containers above a specified line or weight, so as not to damage the Containers or Collection equipment, and City shall resolve any disputes regarding the maximum weight that may be accommodated in such Containers. Customers may place the manure in their green waste carts, which is provided at no charge. Customers that utilize bin service for manure collection may be charged no more than the rate as set forth in Exhibit 2 for refuse collection service of the same size Container and at the same frequency. All manure collected shall be diverted from landfilling through composting or other means and may not be collected or commingled with Refuse. SECTION 3: The agreement shall be amended to contain the following sections: 4.18 Sharps Program Home generated sharps, such as needles, syringes, and lancets shall be placed in a sharps container and removed from the regular waste stream to minimize exposure to solid waste workers and recyclables processors. To ensure sharps are handled in an appropriate manner, Company shall provide, upon request, each residential account with up to one postage -paid mail -back sharps containers per year at no additional cost. Seniors shall be provided with up to two postage -paid mail -back sharps containers per year at no additional cost. Residents requesting Sharps containers may request containers only at participating pharmacies. Company shall work with pharmacies located within the City's boundaries to establish this program and provide sharps containers to participating pharmacies. In addition, Company shall promote this program in all quarterly newsletters and in other forms of outreach as determined by City. Additionally, Company shall provide to the City on an annual basis not less than 200 postage -paid mail -back Sharps containers for City staff to distribute at special events. 4.19 Textile Diversion Program Company shall provide a minimum of two City-wide textile collection drives on an annual basis. Company will deliver textile collection bags to all customers (both single- family and tenants of multi -family complexes) and will collect the bags on a scheduled day. Textile bags will be delivered not less than one week prior to the scheduled clothing collection day, but no more than two weeks prior to the scheduled collection day. Company shall also make available a textile drop off location at the Company's yard, which shall remain open during the hours specified in Section 4. 1.11 of this agreement. All textiles collected through this program shall be diverted from the landfill either through donation to a local non-profit organization or through other means of diversion. 5.6 Multi -Family Outreach Program Company shall provide a public education tool kit to all multi -family complexes in the City at no additional cost. The tool -kit may include posters, flyers, door hangers, recycling guides, bin enclosure signs, recycle bin signs, and any thing else deemed appropriate. Materials should be created to assist multi -family complexes in implementing a recycling program and to assist the tenants in making the program successful. Company shall provide in-home basket upon request to any tenant of a multi -family complex that has recycling bin service. Requests for in-home baskets may be submitted by the management company, homeowners association, or resident. Company shall arrange for the delivery of the in-home basket at no additional cost to the customer. Company shall mail a biannual newsletter to all of the tenants of multi=family dwellings within the City during the two year grant period. After the grant period, or not less than two years, Company shall mail an annual newsletter to all of the tenants of multi -family dwellings. 5.7 Increased Residential Outreach 4 In order to increase the City's diversion and highlight the programs available to residents in the City, Company shall provide a minimum funding amount of $10,000 for the City to administer a comprehensive outreach program. This program will be created in conjunction with Company staff and City staff and shall be fully implemented no later than July 1, 2010. 5.8 Sustainability Program Company shall partner with 5-10 large businesses in the City to conduct a sustainability cost analysis, equaling a total cost of up to $50,000. This analysis shall include an assessment of facilities and operations, execution of programs that improve environmental and economic performance, ,and establishment of a roadmap for a more sustainable future. The sustainability analysis shall look at efficiencies in waste reduction, water, energy, etc. (Signatures on next page) IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARITA A California Municipal Corporation Frank Ferry, Mayor ATTEST: Sharon L. Dawson, MMC City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney 51 U.S.A. WASTE OF CALIFORNIA, INC., DBA BLUE BARREL DISPOSAL [CEO, President, Chairman of the Board or any Vice President] And by: [The Secretary, any assistant secretary, CFO or any assistant treasurer] State.of California ) County of ) [M Date personally appeared Place Notary Seal Above before me, Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public Z 3Z