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HomeMy WebLinkAbout2010-11-09 - AGENDA REPORTS - SOLID WASTE CONTR AMEND (2)Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manager Approval Item to be presented by: DATE: November 9, 2010 Travis Lange SUBJECT: RESOLUTION TO APPROVE THE SECOND AMENDMENT EXTENDING THE TERM FOR THE SIX CURRENT NON-EXCLUSIVE TEMPORARY BIN AND ROLL -OFF BOX FRANCHISES DEPARTMENT: Public Works RECOMMENDED ACTION City Council adopt a resolution to approve the Second Amendment to the six current Non -Exclusive Temporary Bin and Roll -Off Box Franchises. The Amendment will serve to extend the term of the franchises, modify the procedure for addressing noncompliance with the annual minimum diversion requirement as set forth in the Franchise Agreement, and address minor language changes in the Franchise Agreement. BACKGROUND Pursuant to the California Integrated Waste Management Act of 1989 (AB 939), the City is required to track the waste attributed to sources within the City and divert 50 percent of that waste from landfills. A Waste Generation Study conducted in 2000 showed that 25 percent of all waste going to landfills was from sources within the City, but from non -franchised haulers. The majority of that waste came from construction and demolition proj ects. As part of the City's compliance efforts with AB 939, the City Council approved the issuance of ten franchises for Non -Exclusive Temporary Bin and Roll -Off Box services on November 8, 2005. The franchises commenced on January 1, 2006, and are set to expire on December 31, 2010. The program has been very successful with both the collection of material and with overall diversion. In nearly five years of the program, the haulers collected over 187,422 Adopied: Te5 o -. 10 kq tons of material, of which over 108,321 tons were diverted from landfills. This translates to a diversion rate of 58 percent. Based upon this success, City staff recommends that the current franchisees have their contracts extended for five additional years. Due to various circumstances, such as mergers and buyouts, there are now six franchises (AV Equipment Rentals, Inc., USA Waste of California, Inc. (Blue Barrel/Waste Management), Burrtec Waste Industries, Inc., Consolidated Disposal Services, LLC, Crown Disposal Co., Inc., and Randfam, Inc. (Rent -A -Bin)) operating the program. A franchise system is necessary to enable the City to track the waste generated from within the City and that the haulers work to divert waste from landfills. In turn, this will help conserve the capacity of our landfills. It is the City's intent to regularly exceed the 50 percent diversion requirement and comply with state law. City staff anticipates there will be mandates requiring higher diversion rates in the future. There have been four proposed Assembly Bills and California Senate Bills in the last three years suggesting higher diversion requirements. In order to encourage as much recycling as possible, staff proposes modifying the procedure for addressing noncompliance with the annual minimum diversion as set in the Franchise Amendment. City staff researched several methods to address the issue and concluded that a method that takes into account the volume of waste and recycling in a tiered approach addresses noncompliance with the diversion requirements. The proposed method relates directly to the proportion that is landfilled as opposed to what was recycled. If a franchised hauler does not meet the recycling diversion rate for any quarter as mandated by the state, a state agency (i.e. CalRecycle), or the City (currently 50 percent), liquidated damages will be assessed to that franchisee. They shall be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage shall be paid to the City. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage shall be paid to the City. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage shall be paid to the City. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage shall be paid to the City. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT None by this action. ATTACHMENTS Resolution - Approving the Second Amendment to the Six Current Non -Exclusive Temporary Bin and Roll -Off Franchises Second Amendment - AV Equipment Rentals, Inc. Second Amendment - Burrtec Waste Industries, Inc. Second Amendment - Consolidated Disposal Services, Inc. Second Amendment - Crown Disposal Co., Inc. Second Amendment - Randfam, Inc. (Rent -A -Bin) Second Amendment - U.S.A. Waste of California (Blue Barrel/Waste Management) RESOLUTION 10- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO THE SIX CURRENT NON-EXCLUSIVE TEMPORARY BIN AND ROLL -OFF BOX FRANCHISES WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, the City Council adopted Ordinance 09-4 on April 28, 2009, which made changes to the City's existing Integrated Waste Management Ordinance, codified as Chapter 15.44 of the Santa Clarita Municipal Code; and WHEREAS, Section 15.44.210 allows the City to establish by Resolution those categories of waste collection for which franchises are issued by the City; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City had previously entered into ten non-exclusive franchises for the provision of services relating to Temporary Bin and Roll -Off Box service as of January 1, 2006, for a period of five years; and WHEREAS, the City declares its intention of maintaining reasonable rates and quality service related to the collection, transportation, recycling, processing, and disposal of solid waste and other services; and WHEREAS, the City declares its intention of maintaining a successful program to divert waste from landfills and effectively track waste for reporting purposes; and WHEREAS, in order to encourage recycling diversion that exceeds state, state agency, and City requirements, a monetary liquidated damages section is added to the contract; and WHEREAS, the City desires to maintain the current six non-exclusive franchises of the Temporary Bin and Roll -Off Box Franchise to continue with their service to the City. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The City Council hereby approves as to form that certain Second Amendment attached hereto as Exhibit "A,"to the current Temporary Bin and Roll -Off Box Franchises within the City for the following franchisees: AV Equipment Rentals, Inc., USA Waste of California, Inc. (Blue Barrel/Waste Management), Burrtec Waste Industries, Inc., Consolidated Disposal Services, LLC, Crown Disposal Co., Inc., and Randfam, Inc. (Rent -A -Bin). y SECTION 2. The Franchisees shall upon execution of said Amendment by each franchisee, such franchise shall be extended for an additional five years as set forth and upon the terms in the Second Amendment and post all required performance bonds, cash bonds, or letters of credit, as required by the Franchise Agreement. SECTION 3. The City Clerk shall certify the adoption of this Resolution and certify this record to be a full, complete, and correct copy of the action taken. PASSED, APPROVED, AND ADOPTED this day of MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) 2010. I, Sarah P. Gorman, 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 2010, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 2 1�' STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, , City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution 10-_ adopted by the City Council of the City of Santa Clarita, California on , 2010, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this day of 2010. City Clerk By Deputy City Clerk H SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND AV EQUIPMENT RENTALS, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND AV EQUIPMENT RENTALS, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES (Second Amendment) is entered into this day of 2010, between the City of Santa Clarita, a California Municipal Corporation (City) and AV Equipment Rentals, Inc., to amend that certain Temporary Bin and Roll -Off Box Franchise Agreement between the City of Santa Clarita and AV Equipment Rentals, Inc., dated January 3, 2006, and amended by that certain First Amendment dated June 9, 2009, (as amended, the "Agreement"). RECITALS WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, on November 8, 2005, the City Council approved the issuance of ten temporary bin and roll -off box franchises (Franchise Agreement) to assist the City with AB 939 compliance; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City may contract for the aforementioned removal activities; and WHEREAS, AV Equipment Rentals, Inc., has the requisite experience, equipment, and insurance to undertake such removal activities at the direction of the City. NOW, THEREFORE, the City and AV Equipment Rentals, Inc., in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Section 3.A of the Agreement is hereby amended to read as follows: A. Collection services under this Agreement shall be provided for a period of ten years, commencing on January 1, 2006, and ending at midnight on December 31, 2015, unless sooner terminated. SECTION 2. Diversion requirements set forth anywhere in the Agreement (i.e. Sections 15.A, 17.E, 20.E.7, 22.C) are hereby amended to require the franchisee to meet the recycling diversion goals as set forth in their proposals or as mandated by the state, state agency, or the City, whichever is greater. 7 SECTION 3. Section 26 is hereby added to the Agreement to read as follows: Section 26. Liquidated Damages for Failure to Meet Diversion Requirements Failure of Franchisee to meet the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) for any quarter will result in damages being sustained by the City. For each quarter in which the current recycling diversion rate is not met (currently 50 percent as of October 2010), after the notice and process requirements set forth in Section 20 of the Agreement, the City may require that the Franchisee pay the City an amount of money to be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage. Execution of the contract shall constitute agreement by the franchisee and City that the stated values are the minimum value of costs and actual damage caused the City by the failure of the franchisee to meet the current recycling diversion rate. Such sum is liquidated damages and shall not be construed as a penalty. Liquidated damages shall be paid to the City by franchisee along with the quarterly franchise fee payment. Notwithstanding the payment of liquidated damages, any Franchisee not meeting the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) as measured from the effective date of the Franchise Agreement may be subject to termination or suspension for noncompliance with the required recycling diversion rates. (Initial) SECTION 4. Except as expressly set forth herein, all provisions of the Agreement are and remain in effect. J i IN WITNESS WHEREOF, the parties have executed this Agreement as of the date above first written. CITY OF SANTA CLARITA A California Municipal Corporation Laurene Weste Mayor ATTEST: Sarah P. Gorman City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney IM (Signatures on next page) AV EQUIPMENT RENTALS, INC. [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 On before me, Date personally appeared Name(s) of Place Notary Seal Above Here Insert Name and Title of the Officer 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 16 SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND BURRTEC WASTE INDUSTRIES, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES (Second Amendment) is entered into this day of 2010, between the City of Santa Clarita, a California Municipal Corporation (City) and Burrtec Waste Industries, Inc., to amend that certain Temporary Bin and Roll -Off Box Franchise Agreement between the City of Santa Clarita and Burrtec Waste Industries, Inc., dated December 28, 2005, and amended by that certain First Amendment dated June 9, 2009, (as amended, the "Agreement"). RECITALS WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, on November 8, 2005, the City Council approved the issuance of ten temporary bin and roll -off box franchises (Franchise Agreement) to assist the City with AB 939 compliance; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City may contract for the aforementioned removal activities; and WHEREAS, Burrtec Waste Industries, Inc., has the requisite experience, equipment, and insurance to undertake such removal activities at the direction of the City. NOW, THEREFORE, the City and Burrtec Waste Industries, Inc., in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Section 3.A of the Agreement is hereby amended to read as follows: A. Collection services under this Agreement shall be provided for a period of ten years, commencing on January 1, 2006, and ending at midnight on December 31, 2015, unless sooner terminated. SECTION 2. Diversion requirements set forth anywhere in the Agreement (i.e. Sections 15.A, ITE, 20.E.7, 22.C) are hereby amended to require the franchisee to meet the recycling diversion goals as set forth in their proposals or as mandated by the state, state agency, or the City, whichever is greater. SECTION 3. Section 26 is hereby added to the Agreement to read as follows: Section 26. Liquidated Damages for Failure to Meet Diversion Requirements Failure of franchisee to meet the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) for any quarter will result in damages being sustained by the City. For each quarter in which the current recycling diversion rate is not met (currently 50 percent as of October 2010), after the notice and process requirements set forth in Section 20 of the Agreement, the City may require that the franchisee pay the City an amount of money to be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage. Execution of the contract shall constitute agreement by the franchisee and City that the stated values are the minimum value of costs and actual damage caused the City by the failure of the franchisee to meet the current recycling diversion rate. Such sum is liquidated damages and shall not be construed as a penalty. Liquidated damages shall be paid to the City by franchisee along with the quarterly franchise fee payment. Notwithstanding the payment of liquidated damages, any franchisee not meeting the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) as measured from the effective date of the Franchise Agreement may be subject to termination or suspension for noncompliance with the required recycling diversion rates. (Initial) SECTION 4. Except as expressly set forth herein, all provisions of the Agreement are and remain in effect. 12— IN WITNESS WHEREOF, the parties have executed this Agreement as of the date above first written. CITY OF SANTA CLARITA A California Municipal Corporation Laurene Weste Mayor ATTEST: Sarah P. Gorman City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney (Signatures on next page) /j 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] State of California ) County of ) On before me, Date Here Insert Name and Title of the Officer personally appeared Name(s) of Signers) 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 iy SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND CONSOLIDATED DISPOSAL SERVICES, LLC FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND CONSOLIDATED DISPOSAL SERVICES, LLC FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES (Second Amendment) is entered into this day of 2010, between the City of Santa Clarita, a California Municipal Corporation (City) and Consolidated Disposal Services, LLC to amend that certain Temporary Bin and Roll -Off Box Franchise Agreement between the City of Santa Clarita and Consolidated Disposal Services, LLC dated January 3, 2006, and amended by that certain First Amendment dated June 9, 2009, (as amended, the "Agreement"). RECITALS WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, on November 8, 20.05, the City Council approved the issuance of ten temporary bin and roll -off box franchises (Franchise Agreement) to assist the City with AB 939 compliance; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City may contract for the aforementioned removal activities; and WHEREAS, Consolidated Disposal Services, LLC has the requisite experience, equipment, and insurance to undertake such removal activities at the direction of the City. NOW, THEREFORE, the City and Consolidated Disposal Services, LLC in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Section 3.A of the Agreement is hereby amended to read as follows. A. Collection services under this agreement shall be provided for a period of ten years, commencing on January 1, 2006, and ending at midnight on December 31, 2015, unless sooner terminated. SECTION 2. Diversion requirements set forth anywhere in the Agreement (i.e. Sections 15.A, 17.E, 20.E.7, 22.C) are hereby amended to require the franchisee to meet the recycling diversion goals as set forth in their proposals or as mandated by the state, state agency, or the City, whichever is greater. /s SECTION 3. Section 26 is hereby added to the Agreement to read as follows: Section 26. Liquidated Damages for Failure to Meet Diversion Requirements Failure of franchisee to meet the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) for any quarter will result in damages being sustained by the City. For each quarter in which the current recycling diversion rate is not met (currently 50 percent as of October 2010), after the notice and process requirements set forth in Section 20 of the Agreement, the City may require that the franchisee pay the City an amount of money to be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage. Execution of the contract shall constitute agreement by the franchisee and City that the stated values are the minimum value of costs and actual damage caused the City by the failure of the franchisee to meet the current recycling diversion rate. Such sum is liquidated damages and shall not be construed as a penalty. Liquidated damages shall be paid to the City by franchisee along with the quarterly franchise fee payment. Notwithstanding the payment of liquidated damages, any franchisee not meeting the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) as measured from the effective date of the Franchise Agreement may be subject to termination or suspension for noncompliance with the required recycling diversion rates. (Initial) SECTION 4. Except as expressly set forth herein, all provisions of the Agreement are and remain in effect. 1�7 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date above first written. CITY OF SANTA CLARITA A California Municipal Corporation Laurene Weste, Mayor ATTEST: Sarah P. Gorman City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney (Signatures on next page) CONSOLIDATED DISPOSAL SERVICES, LLC R -M, [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 On before me, Date Here Insert Name and Title of the Officer personally appeared 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 Place Notary Seal Above SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND CROWN DISPOSAL CO., INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND CROWN DISPOSAL CO., INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES (Second Amendment) is entered into this day of 2010, between the City of Santa Clarita, a California Municipal Corporation (City) and Crown Disposal Co., Inc., to amend that certain Temporary Bin and Roll -Off Box Franchise Agreement between the City of Santa Clarita and Crown Disposal Co., Inc., dated January 27, 2006, and amended by that certain First Amendment dated June 9, 2009, (as amended, the "Agreement'). RECITALS WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, on November 8, 2005, the City Council approved the issuance of ten temporary bin and roll -off box franchises (Franchise Agreement) to assist the City with AB 939 compliance; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City may contract for the aforementioned removal activities; and WHEREAS, Crown Disposal Co., Inc., has the requisite experience, equipment, and insurance to undertake such removal activities at the direction of the City. NOW, THEREFORE, the City and Crown Disposal Co., Inc., in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Section 3.A of the Agreement is hereby amended to read as follows. A. Collection services under this Agreement shall be provided for a period of ten years, commencing on January 1, 2006, and ending at midnight on December 31, 2015, unless sooner terminated. SECTION 2. Diversion requirements set forth anywhere in the Agreement (i.e. Sections 15.A, ITE, 20.E.7, 22.C) are hereby amended to require the franchisee to meet the recycling diversion goals as set forth in their proposals or as mandated by the state, state agency, or the City, whichever is greater. /9 SECTION 3. Section 26 is hereby added to the Agreement to read as follows: Section 26. Liquidated Damages for Failure to Meet Diversion Requirements Failure of franchisee to meet the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) for any quarter will result in damages being sustained by the City. For each quarter in which the current recycling diversion rate is not met (currently 50 percent as of October 2010), after the notice and process requirements set forth in Section 20 of the Agreement, the City may require that the franchisee pay the City an amount of money to be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage. Execution of the contract shall constitute agreement by the franchisee and City that the stated values are the minimum value of costs and actual damage caused the City by the failure of the franchisee to meet the current recycling diversion rate. Such sum is liquidated damages and shall not be construed as a penalty. Liquidated damages shall be paid to the City by franchisee along with the quarterly franchise fee payment. Notwithstanding the payment of liquidated damages, any franchisee not meeting the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) as measured from the effective date of the Franchise Agreement may be subject to termination or suspension for noncompliance with the required recycling diversion rates. (Initial) SECTION 4. Except as expressly set forth herein, all provisions of the Agreement are and remain in effect. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date above first written. CITY OF SANTA CLARITA A California Municipal Corporation Laurene Weste Mayor ATTEST: Sarah P. Gorman City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney an (Signatures on next page) o2/ CROWN DISPOSAL CO., INC. IN [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 On before me, Date Here Insert Name and Title of the Officer personally appeared 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 X, SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND RANDFAM, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND RANDFAM, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES (Second Amendment) is entered into this day of 2010, between the City of Santa Clarita, a California Municipal Corporation (City) and Randfam, Inc., to amend that certain Temporary Bin and Roll -Off Box Franchise Agreement between the City of Santa Clarita and Randfam, Inc., dated February 8, 2006, and amended by that certain First Amendment dated June 9, 2009, (as amended, the "Agreement'). RECITALS WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, on November 8, 2005, the City Council approved the issuance of ten temporary bin and roll -off box franchises (Franchise Agreement) to assist the City with AB 939 compliance; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City may contract for the aforementioned removal activities; and WHEREAS, Randfam, Inc., has the requisite experience, equipment, and insurance to undertake such removal activities at the direction of the City. NOW, THEREFORE, the City and Randfam, Inc., in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Section 3.A of the Agreement is hereby amended to read as follows. A. Collection services under this Agreement shall be provided for a period of ten years, commencing on January 1, 2006, and ending at midnight on December 31, 2015, unless sooner terminated. SECTION 2. Diversion requirements set forth anywhere in the Agreement (i.e. Sections 15.A, 17.E, 20.E.7, 22.C) are hereby amended to require the franchisee to meet the recycling diversion goals as set forth in their proposals or as mandated by the state, state agency, or the City, whichever is greater. 23 SECTION 3. Section 26 is hereby added to the Agreement to read as follows: Section 26. Liquidated Damages for Failure to Meet Diversion Requirements Failure of franchisee to meet the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) for any quarter will result in damages being sustained by the City. For each quarter in which the current recycling diversion rate is not met (currently 50 percent as of October, 2010), after the notice and process requirements set forth in Section 20 of the Agreement, the City may require that the franchisee pay the City an amount of money to be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage. Execution of the contract shall constitute agreement by the franchisee and City that the stated values are the minimum value of costs and actual damage caused the City by the failure of the franchisee to meet the current recycling diversion rate. Such sum is liquidated damages and shall not be construed as a penalty. Liquidated damages shall be paid to the City by franchisee along with the quarterly franchise fee payment. Notwithstanding the payment of liquidated damages, any Franchisee not meeting the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) as measured from the effective date of the Franchise Agreement may be subject to termination or suspension for noncompliance with the required recycling diversion rates. (Initial) SECTION 4. Except as expressly set forth herein, all provisions of the Agreement are and remain in effect. 2W IN WITNESS WHEREOF, the parties have executed this Agreement as of the date above first written. CITY OF SANTA CLARITA A California Municipal Corporation Laurene Weste Mayor ATTEST: Sarah P. Gorman City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney (Signatures on next page) RANDFAM, INC. LOW [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 On before me, Date personally appeared Place Notary Seal Above 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 SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES This SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND USA WASTE OF CALIFORNIA, INC., FOR TEMPORARY BIN AND ROLL -OFF BOX SOLID WASTE MANAGEMENT SERVICES (Second Amendment) is entered into this day of 2010, between the City of Santa Clarita, a California Municipal Corporation (City) and USA Waste of California, Inc., to amend that certain Temporary Bin and Roll -Off Box Franchise Agreement between the City of Santa Clarita and USA Waste of California, Inc., dated January 24, 2006, and amended by that certain First Amendment dated June 9, 2009, (as amended, the "Agreement"). RECITALS WHEREAS, the City Council is authorized to regulate solid waste pursuant to Article XI, Section 7 of the California Constitution and Public Resources Code Section 40059; and WHEREAS, on November 8, 2005, the City Council approved the issuance of ten temporary bin and roll -off box franchises (Franchise Agreement) to assist the City with AB 939 compliance; and WHEREAS, Section 15.44.305 allows the City to establish by Resolution the application process for a Solid Waste Franchise; and WHEREAS, the City may contract for the aforementioned removal activities; and WHEREAS, USA Waste of California, Inc., has the requisite experience, equipment, and insurance to undertake such removal activities at the direction of the City. NOW, THEREFORE, the City and USA Waste of California, Inc., in consideration of their mutual promises, amend the Agreement as follows: SECTION 1. Section 3.A of the Agreement is hereby amended to read as follows. A. Collection services under this Agreement shall be provided for a period of ten years, commencing on January 1, 2006, and ending at midnight on December 31, 2015, unless sooner terminated. SECTION 2. Diversion requirements set forth anywhere in the Agreement (i.e. Sections 15.A, ITE, 20.E.7, 22.C) are hereby amended to require the franchisee to meet the recycling diversion goals as set forth in their proposals or as mandated by the state, state agency, or the City, whichever is greater. SECTION 3. Section 26 is hereby added to the Agreement to read as follows: Section 26. Liquidated Damages for Failure to Meet Diversion Requirements Failure of franchisee to meet the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) for any quarter will result in damages being sustained by the City. For each quarter in which the current recycling diversion rate is not met (currently 50 percent as of October 2010), after the notice and process requirements set forth in Section 20 of the Agreement, the City may require that the franchisee pay the City an amount of money to be calculated as follows: • Recycling diversion rate in a reported quarter is 10 percent below the recycling diversion rate, then $25 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 20 percent below the recycling diversion rate but greater than 10 percent, then $35 per ton of the recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 30 percent below the recycling diversion rate but greater than 20 percent, then $45 per ton of recycling shortfall tonnage. • Recycling diversion rate in a reported quarter is 40 percent or more below the recycling diversion rate, then $55 per ton of the recycling shortfall tonnage. Execution of the contract shall constitute agreement by the franchisee and City that the stated values are the minimum value of costs and actual damage caused the City by the failure of the franchisee to meet the current recycling diversion rate. Such sum is liquidated damages and shall not be construed as a penalty. Liquidated damages shall be paid to the City by franchisee along with the quarterly franchise fee payment. Notwithstanding the payment of liquidated damages, any franchisee not meeting the recycling diversion rate as mandated by the City, state, or state agency (i.e. CalRecycle) as measured from the effective date of the Franchise Agreement may be subject to termination or suspension for noncompliance with the required recycling diversion rates. (Initial) SECTION 4. Except as expressly set forth herein, all provisions of the Agreement are and remain in effect. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date above first written. CITY OF SANTA CLARITA A California Municipal Corporation Laurene Weste Mayor ATTEST: Sarah P. Gorman City Clerk APPROVED AS TO FORM: Carl K. Newton City Attorney (Signatures on next page) a� USA WASTE OF CALIFORNIA, INC. wo [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 On before me, Date personally appeared Place Notary Seal Above Here Insert Name and Title of the Officer 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 JD