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HomeMy WebLinkAbout2010-11-09 - RESOLUTIONS - SOLID WASTE FRANCHISES (2)RESOLUTION NO. 10-89 ' 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 I, 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). 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 9th day of November, 2010. ATTEST: P CITY CLERK DATE: WIM42 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES CITY OF SANTA CLARITA ) 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 9th day of November, 2010, by the following vote: AYES: COUNCILMEMBERS: Ferry, Ender, Kellar, McLean, Weste NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None CITY CLERK 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 No. 10-89, adopted by the City Council of the City of Santa Clarita, California on November 9, 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 EXHIBIT A SECOND AMENDMENT ' ' 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, 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 M (Signatures on next page) AV EQUIPMENT RENTALS, INC. ' By: [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 hen Name and Title ofthe officer personally appeared 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 7 ' 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, 17.13, 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 M (Signatures on next page) USA WASTE OF CALIFORNIA, INC. 0 [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, Dam Nem Insert Nana and Title of the Officer personally appeared Narne(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 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. ' 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: I Carl K. Newton City Attorney M J (Signatures on next page) BURRTEC WASTE INDUSTRIES, INC. ' By: [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 Nam(s) of Signet(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 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, 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, 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. 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, 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, 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. 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 acid 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) CONSOLIDATED DISPOSAL SERVICES, LLC I By: [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 Nam(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, 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. 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 0 (Signatures on next page) CROWN DISPOSAL CO., INC. 0 [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, > nate Here Dozen Name audTitle of the Otti. personally appeared Place Notary Seal Above 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 PENAL'T'Y 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 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, 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: I Carl K. Newton City Attorney La J (Signatures on next page) RANDFAM, INC. I By: [CEO, President, Chairman of the Board or any Vice President] And by: [The Secretary, au, assistant secretary, CFO or any assistant treasurer] State of California County of On before me, , Date Here Insert Name and Title of the Offer personally appeared 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 histher/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