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1996-1217_CR&R INCORPORATED_Collection Agr 5th Amd
FIFTH AMENDMENT TO INTEGRATED SOLID WASTE COLLECTION AGREEMENT THIS FIFTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT between the CITY OF SAN JUAN CAPISTRANO ("City") and CR&R INCORPORATED, ("Contractor") is made and entered into, to be effective the 7�h day of September, 2010, as follows; RECITALS WHEREAS,the City and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996 (the"Original Agreement")to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and WHEREAS, on February 5, 2002, Solag Disposal transferred and assigned the Original Agreement to Contractor, to which City consented; and WHEREAS, Section 11.A of the Original Agreement authorizes Contractor to automatic annual rate increases based on the Producer's Price Index (PPI) and on adjustments to Tipping Fees charged by the County to become effective January 1 of each year commencing on January 1, 2000; and WHEREAS, in order to align the effective date of adjustments with City's and Contractor's fiscal years, Contractor initially agreed to hold the automatic increases until July 1 of each year; and WHEREAS, City and Contractor desire to ascend the terms of the Agreement to formalize and memorialize Contractor's agreement since the year 2000 to not implement the automatic increases until July 1 of each year. AMENDMENT NOW, THEREFORE, in consideration of the promises and mutual covenants contained therein, City and Contractor agree to amend Section 11.A of the Original Agreement to implement the automatic rate adjustments and annual increases to be effective July 1 of each year instead of January 1 of each year. All other provisions of the Original Agreement and existing Agreement as amended by the Second through Fourth Amendments shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS] 5ch Amendment -1- Int. Solid Waste Collection Agreement SD CITY OF SAN JUAN CAPISTRANO By: ATTEST: J eait TCity Manager 7 By: tiNu -6 City Clerk APPP.OVED AS TO FORM: BY. ity Att r` y CONTRACTOR By: Name: Dean A. Ruffridge Title: Senior Vice President 5"'Amendment -2- Int. Solid Waste Collection Agreement FOURTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Fourth Amendment to the Integrated Solid Waste Collection Agreement (this "Agreement") is made and entered into this 21st day of April, 2009, by and between the City of San Juan Capistrano (the "City") and CR&R Incorporated (the "Contractor"); collectively referred to as the "Parties". RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive Franchise to CR&R Incorporated; and, WHEREAS, a Second Amendment was entered into on October 1, 2002, establishing new services and rates; and WHEREAS, a Third Amendment was entered into on August 19, 2003 by CR&R Incorporated for purposes to comply with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002, to be alternate fuel powered. Contractor replaced its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule. Contractor received an extension to the Term of the Franchise Agreement, to enable Contractor to depreciate some of the additional costs it incurred as the result of said replacement, without cost increases to the rate payer. WHEREAS, the Third Amendment also identified that space constraints are a barrier to a successful commercial recycling program, the City and its Contractor desired to offer mixed-waste recycling services as an option; and WHEREAS, CR&R hereby represents that it desires a longer term Agreement in order to facilitate the design and relocation of it's South Orange County solid waste operations center and to develop, permit, and construct a Material Recovery Facility(MRF) .to facilitate recycling options for the City and south Orange County municipalities and thereby depreciate its investment over a longer period of time; and WHEREAS, CR&R and the City of San Juan Capistrano also wish to adjust Franchise Fee payments from the established rate schedules without any rate impact to customers. 1 NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms, covenants, and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. DEFINITIONS The following Definitions are hereby added to the Franchise Agreement: E. Universal Waste. Universal Waste shall mean those hazardous wastes identified as universal wastes in Section 66261.9 of Title 22 of the California Code of Regulations, including but not limited to: fluorescent bulbs and tubes; household batteries (e.g. D. AA, button-type, etc.); non-empty aerosol cans; electronic devices (e.g. televisions, computer monitors, cell phones, radios, video cassette recorders, etc.); and mercury containing devices (e.g. thermometers, thermostats, gauges, etc), and generated by a single family or multi-family residence. "Universal Waste"does not include any waste generated in the course of operating a business concern at a residence or business generated waste. F. Household Sharps Waste. "Household Sharps Waste" shall mean home- generated sharps, as defined in Section 117671 of Title 22 of the California Code of Regulations, including hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications, which are generated by a single family or multifamily residence. "Household Sharps Waste" does not include any waste generated in the course of operating a business concern at a residence, business generated waste, or medical waste not described herein. G. Household Hazardous Waste. "Household Hazardous Waste" shall mean any hazardous waste generated by a single family or multifamily residence, including but not limited to: automobile maintenance and repair products(e.g. motor oil, oil filters, antifreeze; lead-acid batteries, brake fluid, etc.); lawn and garden chemicals (e.g. pesticides, herbicides, fungicides, etc.); cleaning products (e.g. bathroom cleaners, drain cleaners, chlorine bleach, solvents, oven cleaners, etc.); and home improvement supplies (e.g. stains, paints, varnish, paint thinners, chemical strippers, glue, pool chemicals, etc.). "Household Hazardous Waste" does not include any waste generated in the course of operating a business concern at a residence or business generated waste. SECTION 2. Section 5, of the Original Agreement entitled"Term:Extensions"and Section 1 of the Third Amendment to the Integrated Solid Waste Collection Agreement shall be amended to extend the Term of the Agreement as following: The current Term of this Agreement expires on July 1, 2014. Concurrently to the above, on July 1, 2014 the Term of this Agreement shall automatically extend (without further action by the Parties)to July 1, 2019. On July 1, 2015, and on July 2 1 of each subsequent year unless a Party has provided a notice of nonrenewal as provided below, the Term of the Agreement shall be extended (without further action by the Parties) for an additional year (the "Automatic Renewal") so that the remaining term of the Agreement shall remain at a minimum of five (5) years. Either Party may give the other Party written notice of termination of the Automatic Renewal in December of any year prior to the July 1 automatic renewal date. Provided that notice is received by either Party of any given year, no further Automatic Renewals shall occur in that year or any further year during the term of this Agreement, and this Agreement shall remain in effect only for its remaining term, taking into account the previous year's Automatic Renewal. In no case shall the remaining term be less than five (5) years. The intent of this paragraph is that if notice of termination of the Automatic Renewal is provided, this Agreement shall expire on July 1 no less than five years later. Nothing in this section shall be construed as limiting City's right to terminate this Agreement for cause pursuant to Section 17 of the original Agreement. SECTION 3. Section 6. Services Provided By Contractor. E. Additional Services. (New) (5). Contractor shall provide free disposal and processing from direct delivery to Contractor's south Orange County Materials Recovery Facility from City owned and operated vehicles, or authorized contracted vehicles containing waste generated from within the City limits. As examples, City may deliver green waste or tree trimmings to Contractor's facility from City authorized public works operations, as well as street sweeping debris from City contracted services. Said wastes shall be limited to 800 tons per year at no charge to the City, plus an additional 5% increase per year. Contractor reserves the right to reject loads or charge for processing should current local, state or federal regulations change that may increase fees, rates or eventual uses of these materials. Should use of these materials in the future not be allowed as alternative daily cover at local landfills at the current no charge rate, Contractor and City agree to negotiate in good faith an alternative use and corresponding cost of diversion or reimbursement to Contractor for end costs of these materials. SECTION 4, Section 12 of the Original Agreement entitled, "FRANCHISE FEES" shall be amended to redefine the term "Gross Receipts", below: As used herein "Gross Receipts" shall include all fees, charges and revenues received by Contractor, and its affiliates and subsidiaries, if any, arising from or attributable to operation of this franchise. Beginning with the effective date of this Amendment, Gross Revenues include those revenues received by Contractor attributable to landfill, material processing and composting tipping fees. Gross Receipts does not include revenues derived from the Contractor's sale of materials or the receipt of governmental funding. 3 SECTION 5. EXHIBIT A of the original Agreement shall include the following approved charges: 1. Delinquent or Late Fees as prescribed shall be $10.00 per billing period. 2. Collection of Universal Wastes, Household Hazardous Wastes, or Household Sharps Waste shall be a flat $75.00 per collection subject to limitations and procedures agreed upon with the Parties. This fee is only quoted and provided to customers requesting this specialized door-side service. 3. Rall-Off Rate: The noted "Actual Landfill fee" shall include applicable "or other processing facility fee, based upon direction of the City" SECTION 6. EXHIBIT C is revised with the following added items: G. At a time when processing facilities are available, the Contractor shall implement, at no charge to the City, an Organic Waste collection and recycling program for restaurants, resorts, country clubs and golf courses, grocery stores, special events and other appropriate participants. City may authorize phase implementation of the program. Contractor shall provide participating Customers with Containers or Bins as necessary for the segregation and storage of Organic Waste to be recycled. Contractor shall, at its sole expense, prepare, produce, and distribute professional, well formatted educational materials to participants in the designated Organic Material program. Contractor shall record the tons collected, number of routes, productivity, number of stops, number of participating Customers, labor hours, costs and other pertinent data, as may be required by City, in a format approved by City. City may require submission of additional information from Contractor as necessary or desirable in order to evaluate the productivity, cost, benefits and potential diversion opportunity of the program and to report data to state and federal agencies. Organic Waste collected by Contractor shall be delivered to a permitted facility for recycling and composting. Once the necessary data is collected and reviewed, Parties agree to negotiate in good faith applicable rates to be charged to Customers to cover Contractor's costs to implement, operate, and sustain the program allowing reasonable financial margins approved by both Parties. H. Commencing on October 1, 2009, CONTRACTOR shall provide an optional service to all Single Family and Multi-family Residential customers door-side collection of Universal Waste, Household Hazardous Wastes and Household Sharps Wastes ("Special Wastes"). These Special Wastes shall be collected in separate vehicles from other Solid Waste, and shall be processed at a facility separate from any Solid Waste processing or disposal facility. Special Wastes shall be processed to as to recycle, re--use, and otherwise divert from disposal facilities these materials to the greatest extent practical. To the extent that 4 Special Wastes are disposed of, they shall be disposed of in compliance with all applicable laws and regulations. Residential customers wishing to dispose of Special Wastes shall call a toll-free number to be provided by Contractor to request pickup of these items, and shall otherwise comply with such requirements and procedures for this program as may be agreed upon by City and Contractor. City and Contractor shall mutually agree to a minimum and a maximum threshold of Special Wastes collected per customer collection for the various types of Special Wastes, for the approved rate in Exhibit A. Any resident ordering this service shall be directly responsible for paying the service fee listed in Exhibit A as amended herein and as annually adjusted. There shall be no limit on the number of pickups of these items a residential customer may request. City and Contractor agree to review Special Waste rates and costs prior to each annual rate adjustment to determine costs and participation of the program. SECTION 7. Section 28. of the Original Agreement entitled "General Provisions" is amended to read as: J. Notices. To Contractor: CR&R Incorporated P.O. Box 1100 San Juan Capistrano, California 92693 Attn: Senior Vice President Telephone: 877-728-0446 Telecopier: 714-890.6347 To Contractor (copy): CR&R Incorporated P.O. Box 125 Stanton Stanton, California 90680 Attn: Dean A. Ruffridge Senior Vice President Telephone: 877.728.0446 SECTION 8. All other terms and conditions of the Original Agreement dated December 17, 1996, and as amended by the First Amendment dated February 15, 2002, the Second Amendment dated October 1, 2002, and the Third Amendment dated August 19. 2003 shall remain in full force and effect. Changes incorporated herein to the original Agreement or any of the Amendments preceding shall become effective on July 1, 2009. SECTION 9. The invalidity or unenforceability of any provision or covenant contained in this Amendment shall not affect the validity or enforceability of any other provision or covenant herein contained and any such invalid provision or covenant shall be deemed to be severable. 5 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San Juan Capistrano CR&R Incorporated pp Dave Adams, City Manager Dean A. Ruffridge, ni Vice President I ATET. ' II�'�arg- r t Ma�an, f ity G1e k Approved as to Form: 4 Omar San oval, City Attorney 6 Integrated Solid Waste Collection Agreement EXHIBIT E Special Wastes Flammable waste Containerized waste (e.g., a drum, barrel, portable tank, box, pail, etc.) Waste transported in a bulk tanker Liquid waste Sewage sludge Waste from a pollution control process Residue and debris from the cleanup of a spill or release of chemical substances, commercial products or any other special wastes. Contaminated soil, waste, residue, debris, and articles from t he cleanup of a site of facility formerly used for the generation, storage, treatment, recycling, reclamation, or disposal of any other special wastes. Dead animals Waste water Explosive substances Radioactive materials Materials which have been exposed to highly infectious or contagious diseases Hazardous materials (unless contracted) Revised 2009 THIRD AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Third Amendment to the Integrated Solid WXjq o Collection Agreement (this "Agreement") is made and entered into this 1 day ofQST,2003, by and between the City of San Juan Capistrano (the "City") and CR&R Inc rporated (the "Contractor"). RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS, a Second Amendment was entered into on October 1, 2002, establishing new services and rates; and WHEREAS, CR&R Incorporated has represented to the City that, for purposes of complying with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002, to be alternate fuel powered, it intends to replace its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule by July 1, 2004. Contractor has requested an extension to the Term of the Franchise Agreement, to enable Contractor to depreciate some of the additional costs it will incur as the result of said replacement, without cost increases to the rate payer. WHEREAS, it has been identified that space constraints are a barrier to a successful commercial recycling program, the City and its Contractor desire to offer mixed- waste recycling services as an option. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms, covenants, and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. Section 5, of the Original Agreement entitled "Term: Extensions" shall be amended to extend the term of the Original Agreement for an additional seven years and six months to expire July 1, 2014, SJC Third Amendment 7/15/2003 1 SECTION 2. Section 8 (A)of the Original Agreement entitled, "Minimum Standards for Equipment and Maintenance" shall be amended to add Paragraph (16.), below: (A). (16). Collection Vehicles Contractor warrants that as of July 1, 2004, all residential and commercial collection vehicles servicing the contract area depicted in Exhibit IF will be new alternate fuel powered in accordance with the standards of the South Coast Air Quality Management District. Other vehicles including roll-off,support, repair, bin delivery, etc. may continue with fuels as approved by the District, but must be compliant with Title 13, CCR, Section 2021.2, as of December 31, 2004, and may be replaced with alternate fuels vehicles at the discretion of the Contractor. SECTION 3. Section 10 of the Original Agreement entitled, "System and Services Review" is amended to add Paragraph (E) below: (E.) Contractor shall provide all information necessary, in a form acceptable to the City, to submit annual reports to the Air Resources Board's Executive Officer annually to certify compliance with CCR regulations." SECTION 4. Section 28. of the Original Agreement entitled "General Provisions"is amended to read as: J. Notices. To Contractor: CR&R Incorporated P.O. Box 1100 31641 Ortega Highway San Juan Capistrano, California 92693 Attn: Vice President Telephone: 949-728-0446 Telecop ier: 949-728-3470 SECTION 5. Revised Exhibits "A" and "B" incorporating commercial mixed-waste processing and commercial automated barrel service options are attached hereto and are made a part of this Third Amendment. SJC Third Amendment 7/15/2003 2 SECTION 6. All other terms and conditions of the Original Agreement dated December 17, 1996, and as amended by the First Amendment dated February 15, 2002, and the Second Amendment dated October 1, 2002, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San Juan Capist ano CR & R Incorporated Jol Dean A. Ruffridge, S n r Vice President ATTEST: M garet R. Monahan, City Clerk proved as to Form: 0 S---, John S aw, City Attorney SJC Third Amendment 7115/2003 3 EXHIBIT "A" SOLID WASTE COLLECTION RATE SCHEDULE City of San Juan Capistrano MonthIy Residential 35 Gallon Automated Containers set of 2 $ 11.98 set of 3 $ 13.30 Extra Trash, Green Waste or 3rd Recycling $ 3.25 67 Gallon Automated Containers set of 2 $ 13.07 set of 3 $ 13,53 Extra Trash, Green Waste or 3rd Recycling $ 3.35 90-gallon Automated Containers set of 2 $ 14.16 set of 3 $ 14.62 Extra Trash, Green Waste or 3rd Recycling $ 4.27 Vacancy/Self-Haul $ 6.66 Bully Items First 2 at No Charge; $10 thereafter Commercial Automated Container Service in lieu of Bin Service (2)67 Gallon Automated Containers $ 18.17 (2)90 Gallon Automated Containers $ 20.34 Extra 67 Gallon Trash $ 10.38 Extra 67 Gallon Recycle $ 6.53 Extra 90 Gallon Trash $ 12.04 Extra 90 Gallon Recycle $ 6.70 Disposal Recycling Mixed Waste Processing Commercial Bin Service 3 Yard 1x $ 72.15 $ 50.50 $ 95.34 3 Yard 2x $ 111.00 $ 80.80 $ 157.38 3 Yard 3x $ 144.00 $ 121.20 $ 213.58 3 Yard 4x $ 187.44 $ 161.60 $ 280.21 3 Yard 5x $ 224.50 $ 202,00 $ 340.46 3 Yard 6x $ 259.44 $ 242.40 $ 399.09 Overflow Charge Per Occurance $ 35.35 $ 35.35 $ 35.35 (1)35 or 67 gallon automated container per unit with Bin Service $ 6.00 4 Yard 1x $ 94.73 $ 65.65 $ 125.65 4 Yard 2x $ 145.72 $ 105.04 $ 207.55 4 Yard 3x $ 189.66 $ 157.56 $ 282.42 4 Yard 4x $ 246.07 $ 210.08 $ 369.75 4 Yard 5x $ 294.66 $ 262.60 $ 449.26 4 Yard 6x $ 341.07 $ 315.12 $ 526.59 Overflow Charge Per Occurance $ 35.35 $ 35.35 $ 35.35 (1)35 or 67 gallon automated container per unit with Bin Service $ 6.00 Automated Barrel Recycling (with Commercial Bin Trash Service) 67190 Gallon 1x $ 15.15 67/90 Gallon 2x $ 30.30 67190 Gallon 3x $ 45.45 67/90 Gallon 4x $ 60,60 67190 Gallon 5x $ 75.75 67/90 Gallon 6x $ 90.90 Roll-Off Rates Drop-Off Box $ 136.47 plus landfill fee or processing fee Compactor $ 146.62 plus landfill fee or processing fee On-Call DOB $ 311.52 On-Call Lowboy $ 366.52 Clean-Up Bin Daily $ 38.12 n/a $ 50.50 Clean-Up Bin Weekly $ 49.56 $ 50.50 $ 65.50 EXHIBIT "B" SOLID WASTE COLLECTION RATE BREAKDOWN City of San Juan Capistrano Automated residential curbside and roadside collection, recycling and disposal located on paved, two-lane road: monthly maximum rates for: Base Rate Disposal Rate Monthly Rate 2-35 gallon refuse/recycling $10.59 $1.39 $11.98 3-35 gallon refuse/recycling/green $10.76 $2.31 $13.07 2-67 gallon refuse/recycling $10.76 $2.31 $13.07 3-67 gallon refuse/recycling/green $10.93 $2.60 $13.53 2-90 gallon refuse/recycling $10.93 $3.23 $14.16 3-90 gallon refuse/recycling/green $11.22 $3.40 $14.62 Extra 35 Trash or green waste $1.86 $1.39 $3.25 Extra 67 Trash or green waste $1.04 $2.31 $3.35 Extra 90 Trash or green waste $1.04 $3.23 $4.27 Extra Recycling 2,d @ No Charge (3rd same as above) Vacancy/Self Haul $6.66 $6.66 Multi-family, Commercial and Industrial receiving bin service (3 and 4 cubic yard bins) for Disposal or MRF Processing: monthly rate with the following pickups per week: (Note: AB939 Fees are eliminated): Commercial Base Rate + Landfill Tipping Fee or Processing Fee 3 Yard 1 X: $ 54.78 $ 17.37 $ 40.56 3 Yard 2X: $ 76.26 $ 34.74 $ 81.12 3 Yard 3X: $ 91.89 $ 52.11 $121.69 3 Yard 4X: $117.96 $ 69.48 $162.25 3 Yard 5X: $137.65 $ 86.85 $202.81 3 Yard 6X: $155.72 $104.22 $243.37 Overflow Charge $ 35.35 per 4 Yard 1x $ 71.57 $ 23.16 $ 54.08 4 Yard 2x $ 99.40 $ 46.32 $108.15 4 Yard 3x $120.18 $ 69.48 $162.24 4 Yard 4x $153.43 $ 92.64 $216.32 4 Yard 5x $178.86 $115.80 $270.40 4 Yard 6x $202.11 $138.96 $324.48 Overflow Charge $ 35.35 per Rates Exhibit B 2003 7/25/2003 Multi-family, Commercial and Industrial receiving Automated Commercial Barrel Service; monthly rate with weekly collection service of one Trash and one Recycling Barrel: Base Rate Landfill Charge Monthly Charge 67-gallon set $14.77 $3.40 $18.17 90-gallon set $15.28 $5.06 $20.34 Extra 67 Trash $ 6.98 $3.40 $10.38 Extra 90 Trash $ 6.98 $5.06 $12.04 Extra 67 Recycle $ 6.53 N/A $ 6.53 Extra 90 Recycle $ 6.70 NIA $ 6.70 Rates Exhibit B 2003 7/25/2003 2 SECOND AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Second Amendment to the Integrated olid Waste Collection Agreement (this "Agreement") is made and entered into this -day of October, 2002, by and between the City of San Juan Capistrano (the "City") and CR&R{Solag Disposal Incorporated (the "Contractor"). RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996 (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting and, disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002 by Solag Disposal Company and the City to transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS,CR&R Incorporated is requesting Rate Establishment for new services. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms covenants and conditions set forth in this Amendment, the Parties hereby agree as follows: Section 1. Exhibit A, "Solidwaste Collection Rate Schedule" Section 2, shall be amended to include "Multi-family, Commercial, and Industrial accounts receiving bin service"for RECYCLING; monthly rate for the following pickups per week: 3 cubic yard bins: 4 cubic yard bins: lx 50.00 4x 160.00 lx 65.00 4x 208.00 2x 80.00 5x 200.00 2x 104.00 5x 260.00 3x 120.00 6x 240.00 3x 156.00 6x 312.00 * For small quantity generators a 96-gallon automated barrel with weekly collection = $15 per month. Section 2. Exhibit A, "Solidwaste Collection Rate Schedule" Section 3, "Miscellaneous Fees;" shall be amended to add: "Overflow charge $35.00 per incident". 1 Section 3. Entire Agreement. This Amendment embodies the entire understanding between the parities with respect to its subject matter and can be changed only by instrument in writing signed by parties. Section 4. All other terms and conditions of the Original Agreement dated December 17, 1996 and as amended by the f=irst Amendment dated February 15, 2002 shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San Juan Capistrano CR & R, Incorporated � �i — / Diane Bathgate, M y r David Fahrion President Attest: rgaret M. Monahan, City Clerk Approved as to Form: John Sha City Attorney C:IDOUGI_ASIAGREEMEN\Second.amend.solag.wpd 2 FIRST AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This First Amendment to the Integrated Solid Waste Collection Agreement (this Agreement ) is made and entered into this 15th day of February, 2000, by and between the City of San Juan Capistrano (the "City") and Solag Disposal Incorporated and CR&R Incorporated (the "Contractor"). RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996 (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting and, disposal of all solid waste within the City; and, WHEREAS, Solag Disposal Company is seeking a merger and consolidation with a privately owned CR&R Incorporated based out of Stanton, California; and, WHEREAS, Solag Disposal Company has requested the City transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS, CR&R Incorporated claims to possess the qualifications, equipment, and administrative wherewithal to provide the services described in the Original Agreement. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms covenants and conditions set forth in this Amendment, the Parties hereby agree as follows: Section 1. A) Section 26, "Indemnification" Subsection (a), "Indemnification of City" shall be amended in its entirety to read as follows: Contractor agrees that it shall protect, defend with counsel approved by City, indemnify, and hold harmless City, its officers, employees, and agents from and against any and all losses, fines, penalties, claims, damages, liabilities, or judgements, including attorneys fees, arising out of or resulting in any way from Contractors's exercise of its rights and obligations under this franchise agreement, and including any activity or actions engaged in by Contractor in furtherance of the enforcement of the agreement or municipal code provisions relating to trash collection (e.g., but not limited to, the enforcement of the exclusivity provisions of garbage service under the provisions of the Municipal Code and Franchise 1 Agreement), unless such claim is due to the sole negligence or willful acts of the City, its officers, employees, agents, or contractors, or from the City's grant of this franchise to Contractor. Subject to the scope of this indemnification and upon demand of the City, made by and through the City Attorney, the contractor shall appear in and defend the City and its officers, employees, and agents in any claims or actions, whether judicial, administrative, or otherwise arising out of the exercise of the Franchise agreement. In addition, Contractor shall reimburse City for costs it incurs in utilizing City staff time, legal expense, and any other directly related attributable costs arising out of any claims, lawsuits, judgements, or administrate orders dealing with the Contractor's right to provide exclusive garbage collection service within the San Juan Capistrano jurisdiction. B) Subsection (d), "AB 939 Indemnification" Shall be amended in its entirety to read as follows Contractor agrees to protect, defend with counsel approved by City, and indemnify City against all fines or penalties imposed by the California Integrated Waste Management Board in the event the waste diversion requirements of AB 939 are not met by City. Excluded from the foregoing indemnification are any fines or penalties the imposition of which results from, or is attributable to, a determination by City to not implement adopted programs or to eliminate, suspend or reduce existing diversion programs. City and Contractor shall reasonably cooperate in good faith with all efforts by each other to meeting City's AB 939 diversion requirements and otherwise to ensure compliance with the Act including, without limitation, requests to the Board pursuant to Public Resources Code Section 41785, Section 2. Section 13, "Faithful Performance," is amended by increasing the required performance security from ten thousand dollars ($10,000)to one hundred thousand dollars ($100,000). Section 3. Section 6 "Services Provided by Contractor" Subsection (B) "Residential" number (3) "Bulky Items" shall be amended to include the following: "In Citytargeted neighborhoods the contractor shall provide regularly scheduled bulky item pickups on the day of collection. Should the defined neighborhood exceed a 10% billing delinquency, routine bulky item pickups may revert back to on-call service only." 2 Section 4. Exhibit A, "Solidwaste Collection Rate Schedule" Section 3, "Miscellaneous l=ees;" shall be amended to add: "Container Replacement $25.00 each." Section 5. Entire Agreement. This Amendment embodies the entire understanding between the parities with respect to its subject matter and can be changed only by instrument in writing signed by parties. Section 6. All other terms and conditions of the Original Agreement dated December 17, 1996 shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San n Capistrano Solag Disposal Co., Inc„ olle ampbell, Mayor Tom Trullis, President CR & R, ncor raced Attest. Cllifford Ronnenberg Chairman & CEO heryl Joh n ,ty Clerk Approved as to Form: John S aw, City Attorney CADOUGLASiAGDIN OISOLAG.RES 3 INTEGRATED LID WASTE COLLECTION AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOLAG DISPOSAL COMPANY, INCORPORATED TABLE OF CONTENTS 1. GRANT OF RESIDENTIAL, COMMERCIAL, T AN TEMPORARY BIN/ROLLOFF EX L HI E . . . . . . . . . . 2 A. Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 B. Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. DEFINITIONSq.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A. B93 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 B. Terry Hin/Rolloff 3 C. -City_Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 D. Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3. A AN E° WAIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4. FRANCHISE AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A. Fr xShise_Area Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 B. Anno-afion CovuredExisting Franchise . . . . . . . . . . . . . . . . . 4 5. TERM: A:.X A E, SLO V 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6. SERVICES PR IDD BY CONTRACTOR . . . . . . . . . . . . . . . . . . . . . . . . A. GenCral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 B. Residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 (1). Automated Container Service. . . . . . . . . . . . . . . . . 4 (2) 3 fuhic Yard Bin Service . . . . . . . . . . . . . . . . . . . 5 (3). DMMY I . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 C. CommerciW-anA Industrial Services . . . . . . . . . . . . . . . . . . . . . . 5 (1) WcgklS� . . . . . . . . . . . . . . . . . . . . . . . . . . 6 (2) PreAudit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 D. Temporary Bin/Rolloff„S,ery,des . . . . . . . . . . . . . . . . . . . . . . . . 6 E. Additional Seryices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 F. Recycling Frogram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 G. Collection on Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 I. 1djssed__Pick-yaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. R Ord of_Noncollection . . . . . . . . . . . . . . . . . . . . . . . . . . 7 J. S nging Prevention/Discour t.int. . . . . . . . . . . . . . . . . . . . 8 K. Special Wastes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7. SERVICE EXCEPTIONS; HAZARDOUS ATE NOTIFICATIONS . . . . . . . 8 8. MMMUM STANDARDSR EQUIPMENT AVIA TENAN . . . . . . . 8 i 9e N 1 JL r PERSONNEL e e . • . . . . . e e . e . e • e . . . . . e . e . e . . e . 10 10. SYSTEM AND SERVICES REVIEW . . . . . . . e e . . . . . . . . . e . . e e . . . . . . 11 11. -COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 A. Contractor Rates . . . . . . . . e . . . . . . . . . . . . . . . . . . . . . . . . . 12 B. i n Adjustment f R . . . . . . . . . . . . . . . . . . . 12 C. Notice of Rate In r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 D. Resolution of Displ&s Regarding A nt . . . . . . . . . 13 E. Billing n Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 F. DeiinQue t. esou.nts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Ge R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 H. Quad Cities Li &, gp, Provision. . . . . . . . . . . . . . . . . . . . . . . . . 14 12. FRANCHISE FEES . . . . . . . . . . . . . . . . . . . . . . . . . e . . . . . . . . . . . . . . . 14 13. FAL' EEUII PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 14. INSURANCE COVERAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 A. Minimum Smp"f,.Insurance . . . . . e . . . . . . . . . . . . . . . . . . . 15 (1) General Liability. . . . . . . . . . . . . . . . . . . . . . . . 16 (2) Automotive Ili ili . . . . . . . . . . . . . . . . . . . . . 16 (3) Worker's Carom nsation. . . . . . . . . . . . . . . . . . . 16 E. Minimum Limits of Insurances . . . . . . . . . . . . . . . . . . . . . . . . . 16 C. Modification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 D. Deductibles and Self-Insured Retention . . . . . . . . . . e . . . . . . . 17 E. Other Insurance Provisioner . . . . . . . . . . . . . . . . . . . . . . . . . . 17 F. AcceMbility of Insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 G. Verification of Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 H. Subcontractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 15. F ISI E 'I' RRAELE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 16. FRANCHISE TRANSFER: FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 17. IMPOSITION OF DAMAGES , R„TERMINATIO N . . . . . . . . . . . . . . . . . . . 20 18. ADMINISTRATIVE HEARING PR ED . . . . . . . . . . . . . . . . . . . . . 23 19. CITY'S ADDITIONAL REMEDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 20. RIGHTS OF CITY TO PERFORM DURING EMERGENCY . . . . . . . . . . . . . 25 ii 21. PMACY . . . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 22. REPORTS D R ATI . . . . . . . . . . . . . . . . . . . . . . . 26 A. Monthly aLad Quarter1 reports. . . . . . . . . . . . . . . . . . . . . . . . 2p6 R. Apr al sports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g C. Adversp, Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 D. TonnesRec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 E. Failure_to,_Repo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 23. MBLIC ACCESSTo CONTRACTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 A. Offs c -H-Qurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 B. Servicc Complailits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 C. Govermm nt Liaison Person . . . . . . . . . . . . . . . . . . . . . . . . . . 30 24. RE I F DISPUTED CUSTOMER COMPLAINTS . . . . . . . . . . . . . 30 25. HIIP F SOLID WASTE: FLOW CQNTRQL . . . . . . . . . . . . . . . . 31 26. INDEMNIFICATI®N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 A. Indemnificatim of C4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Ii. Indemnification of.C"Qa&actor . . . . . . . . . . . . . . . . . . . . . . . . . 32 C. Hazardous SubstanCgsIn mnifi i n . . . . . . . . . . . . . . . . . . . 32 D. AP 939 Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 E. Workers' Compensati,on -1murance . . . . . . . . . . . . . . . . . . . . . 33 27. CONTRACTOR'S BOOKS,AND REC_ ORDS; AUDITS . . . . . . . . . . . . . . . . 33 28. GENERAL PR®VISI®NS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 A. Force Maieure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 B. Independent Contractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 C. Pavement Damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 D. Propgrty Damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 E. Right of_Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 F La _to_Govern; Venue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 G. Feed_and Gratuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 H. Prior_Agreements and Amendment . . . . . . . . . . . . . . . . . . . . . 35 1. Compliance with Franchise A red earn . . . . . . . . . . . . . . . . . . . 35 J. Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 K. Savings Claumn Entirety . . . . . . . . . . . . . . . . . . . . . . . . . . 36 L. Exhibits Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 EXHIBIT A Solid_Waste Collection Rate ,S,r,;;�hedule . . . . . . . . . . . . . . . . . . . . . . . . 35 iii EXHIBIT B Solidn Rate Compulati n Ful . . . . . . . . . . . . . . . 39 EXMBIT C It lin Programs, r i Comm"n ment, AE E i n . . . . . 4 EXHIBIT I) Mini mn_Containcr Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . 42 EXHIBIT E ,Special Wastes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 EXHIBIT F Franchise Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 iv AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOLAG DISPOSAL COMPANY INCORPORATED, FOR THE COLLECTION, TRANSPORTATION, RECYCLING, COMPOSTING, AND DISPOSAL OF ALL SOLID WASTE AND FOR PROVIDING TEMPORARY BILI/ROLLOFF SERVICES This Franchise Agreement ("Franchise Agreement") is entered into this Seventeenth day of December, 1996, by and between the City of San Juan Capistrano ("City") and Solag Disposal Company Incorporated, ("Contractor") for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff services. RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 19$9 ("AB 939"), has declared that it is within the public interest to authorize and require local agencies to make adequate provisions for all solid waste within their jurisdictions; and, WHEREAS, pursuant to California Public Resources Code Section 40059(a)(1), the City Council of the City of San Juan Capistrano ("City") has determined that the public health, safety, and well-being require that an exclusive franchise be awarded to a qualified enterprise for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff services in residential, commercial, construction, and industrial areas in the City of San Juan Capistrano; and, WHEREAS, the City Council of the City of San Juan Capistrano declares its intention of maintaining reasonable rates for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff services within City limits; and, WHEREAS, the City has an existing Solid Waste Collection Agreement with Solag Disposal Company Incorporated, hereinafter referred to as the "Original Agreement", and the Contractor has demonstrated its abilities and qualifications to perform such services; and, 1 WHEREAS, Solag Disposal Company Incorporated has submitted a proposal to the City to modify the Original Agreement and amendments thereto to include expanded and modified services in order to assist City in complying with the requirements of Assembly Bill (A.B) 939 and its amendment bills; and, WHEREAS, City and Contractor desire to leave no doubts as to their respective roles, and that by entering into this Agreement, City is not thereby becoming a "generator" or an "arranger" as those terms are used in CERCLA § 107(a)(3), and that it is Contractor, not City, which is "arranging for" the collection from residents and others in the City of San Juan Capistrano, the transport for disposal, composting of green waste and recycling of recyclables and municipal solid waste which may contain hazardous substances. NOW, THEREFORE, The Parties hereto agree as follows: 1. GRANT OF RESIDENTIAL, I� IAL D T Y'-BULROLLOFF EXCLUSIVE FRANCHISE This Franchise Agreement grants an exclusive franchise as provided herein and pursuant to Chapter 3 of Title b of the San Juan Capistrano Municipal Code (hereinafter, "Chapter 3") and California Public Resources Code Section 40059(a)(1) to Solag Disposal Company Incorporated for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff in commercial, residential, construction, and industrial areas within the City of San Juan Capistrano. The exclusivity of this Franchise Agreement is subject to any of the terms of any pre-existing solid waste or temporary bin/rolloff service licenses, permits, or Resolutions previously granted by the County of Orange or the City of San Juan Capistrano. A. Notification. Existing Solid waste haulers providing temporary bin/rolloff services within the franchise area (other than Contractor), were notified by City on or about November 1, 1993, by certified mail that Contractor is granted exclusive rights to any and all temporary bin/rolloff rental and collection services within franchise area effective five (S) years from the notice date. P. Enforcement. Contractor shall be responsible for enforcing the exclusivity of this franchise agreement. 2 2. DEFINMONS Whenever any term used in this Franchise Agreement has been defined by Chapter 3 of the San Juan Capistrano Municipal Code or Division 30, fart 1, Chapter 2 of the California Public Resources Code, the definitions in the Municipal Code or Public Resources Code shall apply unless the term is otherwise defined in this Agreement. A. AB 939. "AB 939" shall mean the California.Integrated Waste Management Act of 1989, as it may be amended from time to time. B. Temporary Bin/Rolloff. "Bin/Rolloffs" shall mean those containers provided by Contractor for residential, commercial, industrial, and construction, uses. These bins are usually of two types: (I) Bins (usually 3 cubic yards in size) which are picked up by refuse trucks by means of front loading apparatus; and (ii) Rolloff Bins (usually 40 cubic yards in size) which are picked up by trucks using rear loading winches onto rails. "Temporary" shall mean any service provided on a 24 hour, daily, weekly, or monthly basis. C. City Limits. "City Limits" means the boundaries of the City together with all amendments and changes thereto, which boundaries are shown by maps incorporated herein by reference and which are on file in the office of the City Clerk of the City San Juan Capistrano as they exist by the date of this agreement. D. Contractor. "Contractor" means Solag Disposal Company Incorporated the entity granted the Franchise pursuant to this Franchise Agreement. 3. ACCEPTANCE: ARIA ER Contractor agrees to be bound by and comply with all the requirements of Chapter 3 and this Franchise Agreement. Contractor waives Contractor's right to challenge the terms of this Franchise Agreement and Chapter 3 under Federal, State or local law, or administrative regulation, as such laws and regulations exist as of the date of execution of this Agreement. Contractor waives any right or claim to serve the City or any part of the City under any prior grant of franchise, contract, license, or permit issued or granted by any governmental entity including any right under Section 49520 of the Public Resources Code. Additionally, by the execution of this agreement, Solag Disposal Company, Inc. expressly waives any and all rights and cost reimbursements to Solag Disposal Company, Inc. for any existing recycling programs previously approved by City. 3 4. FRANCHISE AREA A. Franchise Area Defin . The Franchise Area granted by this Franchise Agreement shall be all residential, commercial, industrial, and construction premises bounded by the city limits as they exist by the date of this agreement and as indicated on the map in Exhibit "F". As provided below, the Franchise Area may be changed by annexation. P. Annexation Covered by Existing Franchise. Territory annexed to the City that is covered by an existing solid waste or construction debris permit, license, agreement, or franchise granted by another public entity may continue to be served by the same contractor for the balance of the term of its permit, license, agreement, or franchise, subject to the provisions of Chapter 3, provisions of the Public Resource Code Sec.49522, and the provisions of this Franchise Agreement. S. TERM: EXTENSIONS The term of this Agreement shall commence January 1, 1997 and be in full force and effect for a period of ten (10) years expiring January 1, 2007. 6. SERVICES PROVIDED BY CON CTO A. General. Contractor shall furnish all labor, necessary material and equipment to provide the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff services in accordance with the terms of this Franchise Agreement and Chapter 3. Contractor may commingle loads with other jurisdictions, however, in order to comply with the provisions of the Act and to accurately account for and report the amount of Solid Waste collected within the City and disposed pursuant to this Agreement, Contractor shall reconcile with the landfill operator on a quarterly basis the amount of waste generated by City accounts. E. Residential. All solid waste, compo stables and recyclables shall be collected between the hours of 7:00 a.m. and 7:00 p.m., Monday through Friday. (1). Automa e C main r rvi . Once each week, Contractor shall collect the solid waste, compostables, and recyclables (except bulky items and household hazardous waste) which have been placed, kept, or accumulated in containers (as specified in "Exhibit D") at single family residences, whether 4 attached or detached, and placed at curbside or other designated pick-up locations adjacent to public or private roadways or alleys prior to Contractor's normal weekly collection time. Contractor shall, whenever possible, place container on top of curb (sidewalk) upon completing collection, to facilitate more efficient street sweeping. Standard residential service shall include providing, maintaining and replacing automated service containers which meet the minimum requirements as set out in Exhibit "D". Homeowner is responsible for any negligent damage or lost/stolen containers. If the number of reported negligently damage/lost/stolen containers exceeds 2% of the serviced accounts the City has the option to re- negotiate which party is responsible replacement. Contractor may negotiate special pickup procedures, above and beyond the normal services described above, with customers for an additional fee over the amount provided in Exhibit "A" subject to City approval. (2) 3 Cubic Yard Bin Service. Not less often than once per week, and more frequently if required to handle the waste stream of the premises where the bins are located, Contractor shall collect the solid waste (including bulky items which have been placed in a closed bin), compostables, and recyclables (except household hazardous waste) which have been placed out for collection in solid waste or recycling bins. (3). Bulky Items. Contractor shall provide bulky item collection services on an on-call basis. Bulky items shall include, but not be limited to, refrigerators, mattresses, rugs, water heaters and other items which can be handled by a two man crew and would not otherwise be accommodated within the automated collection container furnished by Contractor. There shall be a limit of two on call pick-ups per year at no extra cost. There shall be a limitation of four bulky items or equivalent of six. (6) 33 gallon trash bags per on-call pick-up. On-call service shall be responded to within a reasonable time but no more than seven (7) days or the next scheduled collection day excluding Saturdays. Contractor shall produce, keep current, and provide public information specifically outlining the bulky item pick- up service. C. Commercial and Industrial Services. All solid waste, compostables, and recyclables shall be collected between the hours of 6:00 a.m. and 7:00 p.m., Monday through Saturday. 5 (1) Weekly Service. Contractor shall furnish the size containers as called out in the rate schedule and service them not less often than once per week, and more frequently if required to handle the waste stream of the premises where the bins are located, Contractor shall collect the solid waste, compostables, and recyclables which have been placed for collection in solid waste or recycling bins. (2) PreAudit. Contractor shall conduct a waste audit of all commercial accounts, and multi-family units utilizing commercial service, to determine their recyclable content, prior to services being rendered. The process used to conduct this waste audit shall be shared with the City of San Juan Capistrano, to ensure permit compliance and acceptance. Those accounts that contain a significant recyclable content and have received prior approval by the City, shall be processed through a City-designated materials recovery facility. Customers achieving this content, or higher, shall have their material transferred to a material recovery facility. Those accounts that do not satisfy the content level, shall have their waste stream disposed of at the landfill. D. Temporary Bin/Rolloff Services. Contractor shall provide temporary bin/rolloff services using rates reflected in Exhibit "A." Contractor shall deliver and pick- up/service rolloff containers within 24 hours of call for services excepting Sundays and Holidays. E. Additional_Services. The following additional services are hereby provided to City, free of charge, by Contractor: (1) Contractor shall clean out any overflowing bins or enclosures within twenty-four (24) hours of notification by City, free of charge. Contractor shall work with the City Manager or designee in identifying continual problems in customer bins or enclosures. Contractor shall create a specific work order in response to each call received from City departments and shall provide City with a annual "Summary of clean out Item Mork Orders Completed." Said summary shall include, but not be limited to the date, time, hours spent, and type of items collected. (2) Contractor shall pickup all Christmas trees on the first two regularly scheduled pickup days after New Year's Day. The trees shall be diverted from the landfill if possible, either by deposit at a composting facility or grinding operation. 6 (3) Contractor shall provide containers refuse collection and recycling to all City public buildings, bus stops and public trash receptacles along all public right of ways at no charge to City. (4) Contractor will assist and cooperate with City in organizing clean-up after all City sponsored events and haul all solid waste, free of charge. Contractor will haul all City organized clean-up loads to the landfill or Material Recovery Facility, maximum of 20 (36 cu. yd. roll-off) per calendar year. City shall pay the Iandfill tipping fees. F. Recycling Program. The Contractor shall provide recycling services in accordance with the terms set forth in Exhibit "C", and the rates set forth in Exhibit "A" G. Collection on Holiday. Should any regularly scheduled collection day fall on or after a legal holiday ( New Year's Day, Memorial Day, Forth of July, Labor Day, Thanksgiving Day, or Christmas Day) or on any other holiday on which County landfills are closed, collection day shall be made one day later during that pickup week and the regular pickup schedule shall be resumed the following week. A pickup week shall be defined as Monday through Saturday. H. Misse Pick- s. In case of a missed pick--up called in by a resident, Contractor shall collect the materials from such resident no later than the next working day following the date of the call. Records of the addresses of all missed pickups shall be maintained by Contractor and reported to the City. If Contractor can demonstrate a pattern of ongoing late set-outs by a resident, those missed pickups shall not be counted as missed pickups. 1. Record of Noncollectio . When any refuse material deposited for collection is not collected by Contractor, he shall leave a tag at least 2" by 6" in size, indicating the reason for refusal to collect the refuse. This information shall either be in writing or by means of a check system. The tag shall provide the Contractor's business name and local telephone number and shall be securely fastened to the container of the article refused. (1) If the reason for such noncollection is not corrected within seven days from the date of such tagging, Contractor shall advise the City, giving the date of notice, street address and reason for noncollection. (2) Contractor shall maintain at his place of business, a record of all such Laggings. Such record shall contain the date of such notice, street address, 7 reason for noncollection and disposition of each case. Such notice shall be Dept so that it may be conveniently inspected by representatives of the City upon request. J. Scavenging Prevention/Di nt. Contractor will take necessary steps which may be appropriate and effective to discourage scavenging of recyclable materials from the residential and commercial waste steams. K. Special Wastes. Contractor may, but is not required to, provide such collection, transportation, and disposal services for special wastes as defined by Exhibit "E". Contractor may provide such services for special wastes if contracted to do so by customers under separate written contracts negotiated between Contractor and the customer generating such special wastes. 7. SERVICE EX EI'TIOM; HAZARDOUS WASTE NOTIFICATION When solid waste is not collected from any solid waste customer, Contractor shall notify its customer in writing why the collection was not made. Contractor has represented to City that Contractor will carry out its duties to notify all agencies with jurisdiction, including the California Department of Tonic Substances Control and Local Emergency Response Providers, and, if appropriate, the National Response Center, of reportable quantities of hazardous waste, found or observed in solid waste anywhere within the City, including on, in under or about City property, including streets, easements, rights of way and City waste containers. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain hazardous wastes unlawfully disposed of or released on City property, including streets, storm drains, or public rights of way, Contractor also will immediately notify the City Manager, or the City Manager's designee. $. MINEVIUM STANDARDSF REQUIPM AND ENTMA TEN E A. Contractor shall provide an adequate number of vehicles for all regular and special collection services. Contractor shall provide commercial and industrial subscribers with appropriate commercial bins, and may supply residential subscribers with three (3) cubic yard bins as requested. All equipment shall be maintained as follows: 8 (1) Contractor shall remove graffiti from containers provided pursuant to this agreement, within 24 hours of notice. Removal of graffiti shall be the sole responsibility of contractor, utilizing available civil processes for prosecution of the individualls responsible for graffiti. Solag may charge user according to rate schedule in Exhibit "A" for graffiti removal; and, (2) Each vehicle used by Contractor shall at all tithes comply with all applicable provisions of the California Vehicle Code, and shall be inspected, at least once each year, using the "Critical Item Inspection" criteria as approved by the California Highway Patrol. The results of said inspections shall be made available to the City Manager upon request; and, (3) All vehicles used for the collection or transport of solid waste shall be equipped with devices capable of covering every open section of the vehicle in which solid waste may be placed, and while operating upon the public rights of way, shall be covered so as to prevent any solid waste from falling or being blown or otherwise dislodged from the vehicle; and, (4) All vehicles used for the collection or transport of solid waste shall be continuously maintained in a watertight condition per industry standards; and, (5) All vehicles shall be painted periodically, which shall include all necessary body work, so that such vehicles do not become unsightly, as determined by the City Manager; and, (6) The name, and telephone number of Contractor shall be printed or painted in letters not less than three inches in height on both sides of each vehicle or conveyance and at the City's option the City shall require Contractor to display advertisements on collection vehicles to promote recycling and source reduction programs; and, (7) Each vehicle used for the collection or transport of solid waste shall be maintained in a clean and sanitary condition both inside and out; and, (S) All vehicles used for the collection or transport of solid waste .......... shall carry a broom, shovel, and operable fire extinguisher. Additionally, residential refuse trucks shall be equipped with a communication device in the form of an 2-way radio upon request of the City; and, 9 (9) All residential automated containers supplied to subscribers shall be maintained in good repair and maintained in a watertight condition. (10) All commercial bins and containers provided shall be kept in good repair, freshly painted and identified with Contractor's name and phone number. The three cubic yard bins provided shall be steel bins with plastic lids and steam cleaned at least once a year free of charge; and, (11) Contractor has agreed to name the specific organization that shall provide all of the services under this Franchise Agreement as "Sol&DDDisposal C"mpany_Incorporated." This name shall be used for all correspondence, billing statements, directory listings, references, signs, vehicle identification, etc. The words "Owned and Operated by Solag Disposal Company Incorporated" is authorized; and, (12) All solid waste collection vehicles shall be washed at least once every seven (7) calendar days. Packer bodies shall be maintained in a liquid tight condition; and, (13) "Solag Disposal Company Incorporated", a local or toll free telephone number, and vehicle number shall be visibly displayed on all vehicles in letters and figures as approve by City; and, (14) All vehicles, high visibility bins, and rolloffs shall display the name and phone number of contractor. The small inscription area on the top of all of the residential containers shall be labeled as follows: the black refuse container - "REFUSE ONLY," the blue or tan recycling container W "RECY—CLABLES ONLY," and the green yardwastes container - "YARD WASTE ONLY;" and, (15) All equipment used is subject to the discretion of the City Manager. Should the City Manager, at any time, give notification to contractor that any vehicle does not comply with standards of this section, said equipment shall be removed from service by contract and shall not service the City until inspected and approved in writing by the City manager. 9. CONTRACTOR'S PERSONNEL A. The City has the right to require that each of Contractor's collection employees wear a clean uniform bearing the company's name. 10 B. Each employee shall, at all times, carry a valid operator's license for the type of vehicle he is driving. Contractor shall provide its employees, contractors, and subcontractors with identification for all individuals who may make personal contact with residents of the City. C. No employee shall continue to be employed on any work under this contract who is determined by the City to be intemperate, discourteous, disorderly, inefficient or otherwise objectionable. D. The Contractor shall provide operating and safety training for all personnel that meet minimum OSHA standards. I®. SYSTEM AND SERVICES RE�IE�V A. To provide for technological, economic, and regulatory changes in waste stream collection and recycling, to facilitate renewal procedures, to promote competition in the refuse, composting, and recycling industry, and to achieve a continuing, advanced refuse collection, and recycling system, a system and services review procedures is established as follows: Sixty (60) days after receiving notice from the City, Contractor shall submit a report to City indicating the following: (1) All refuse collection, composting, and recycling services reported in refuse collection, composting, and recycling industry trade journals that are being commonly provided on an operational basis, excluding tests and demonstrations, to communities in the United States with comparable populations, that are not provided to City; and, (2) Changes recommended to improve the City's ability to meet the goals of AB 939 and to keep City clean and free of debris; and, (3) Any specific plans for provision of such new services by the Contractor, or a justification indicating why Contractor believes that such services are not feasible for the Franchise Area. B. Topics for discussion and review at the system and services review hearing shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, customer complaints, rights of privacy, 11 amendments to the Franchise Agreement, developments in the law, new initiatives for meeting or exceeding AE 939's goals and regulatory constraints. C. City and the Contractor may each select additional topics for discussion at any systems and services review hearing. D Not later than sixty (60)days.after the conclusion of each system and service review hearing, City shall issue a report. The report shall include a listing of any refuse collection, composting and recycling services not then being provided to City that are considered technically and economically feasible by City. City may require Contractor to provide such services within a reasonable time, for reasonable rates and compensation. 11. CQMPENSATIQN A. C_Qntractor Rates. Contractor shall provide the services described in this Franchise Agreement in accordance with the rates fixed by City from time to time all as described and set forth in Exhibit "A", "Schedule of Rates." The new rates contained in Exhibit "A", shall be subject to adjustment in accordance with the prescribed formula, as set forth in Exhibit B beginning January 1, 1997, based on changes in the cost index for twelve month period (January 1996 through January 1.997). Every year thereafter, the PPI index for the calendar year from November 1 through October 31 shall be used to compute the annual increase. The annual increase shall be effective January 1 of each year. Contractor agrees to defer any cost of living adjustments, on commercial accounts only, until January 1, 2000. B. Modification and Adjustment of Rates. Except as provided in Exhibit `13 the rates set forth on Exhibit "A" shall remain in effect until adjusted by City by a Resolution of the City Council. As for extraordinary costs, in addition to, and not in lieu of, the annual PPI increase and landfill tipping fee adjustment, as described in Exhibit "13" Contractor shall also be entitled to rate increases in an amount equal to the Contractors extraordinary increases in its costs of collection. Such extraordinary cost increases shall be subject to City Council approval. Such extraordinary increases in its cost of collection shall include, by way of example and not by way of limitation: (1) a change in the location of the landfill or other permitted disposal sites to which the contractor or is required to transport solid waste collected hereunder; (2) changes in the local, state or federal laws that affect an aspect of this agreement. C. Notice of Rate Increases: The Contractor shall provide the City and customers, at least thirty (30) days in advance of the beginning of a billing period, written 12 notice of the implementation of changes in any of its proposed rates and charges which are not subject to rate adjustments contained in Exhibit "B." The notice shall include a statement of the reasons for the rate increase. D. Resolution of Disputes Regarding Rate Adjustments: Any dispute regarding the annual "CPI" and Landfill Tipping Fee adjustment, or the computation thereof, described in Exhibit "B," or any other dispute regarding Contractor's reimbursement for fees, special services, or extraordinary costs described in Exhibit "B," shall be decided by the City Manager, or referred by the Manager to the City Council, or to a hearing officer as provided in Section 13 below. The rates in effect at the time such dispute is submitted to the City Manager, City Council, or a hearing officer shall remain in effect pending resolution of such dispute. The effective date of any dispute resolution, whether retroactive or prospective, shall reasonably be determined by the City Manager, City Council, or the hearing officer, as appropriate. E. Billing and Payment. Contractor may bill all customers not subject to a parcel charge or beyond the scope of the parcel charge, discussed below, for all services, whether regular or special. Contractor shall provide itemized bills, distinctly showing charges for all classifications of services, including the charges for late payment. The Contractor shall not designate that portion of a customer's bill attributable to the franchise fee as a separate item on customers' bills. Billings may be made monthly in advance for commercial and all bin service customers, and may be made three (3) months in advance for residential customers. If the City should elect to bill residents for standard refuse collection and recycling through a parcel charge, the Contractor shall be paid in monthly installments for the premises served. Retroactive adjustments shall be made on the basis of addresses of premises added and the date added. Premises ordered after the first of the month shall be charged on a prorated thirty (30)day/monthly basis. In no event, shall City be required to use its general fund to support the parcel charge system. The City reserves the right exclusively handle the refuse and recycling billings but not limited to performing billing service in-house. F. Delinquent Accounts. The Contractor shall continue service as set forth in this franchise agreement. Persons who have not remitted required payments within 30 days after the date of billings shall be notified on forms approved by City. Said forms shall contain a statement that services may be discontinued 15 days from the date of notice if payment is not made before that time. A delinquent fee may be assessed accounts that are late according to Exhibit "A." A redelivery or reinstatement fee may be assessed to accounts that are reactivated by having to furnish collection containers. Upon payment of 13 the delinquent, redelivery, or reinstatement fees, if applicable Contractor shall resume collection on the next regularly scheduled collection day. G. Refunds. Contractor shall refund to each customer, on a pro rata basis, any advance service payments made by such customer for service not provided when service is discontinued by the customer. A $1.50 refund fee may be assessed for processing refunds according to Exhibit "A." H. Quad_Cities Linkage Provision. Notwithstanding any provision of this .Agreement to the contrary, if Solag's rate for a solid waste service to be provided to service recipients in the City of San Juan Capistrano (including residential and/or commercial), would be higher than a newly modified, amended or adopted rate for the same or substantially similar solid waste service in either the City of San Clemente, Laguna Niguel or Dana Point, then the otherwise applicable rate provisions of this Agreement shall not be in effect. Instead, Solag's rate for services to be provided to service recipients (including residential and/or commercial services) within the City of San Juan Capistrano shall be the lowest rate charged for the provision of the same or substantially similar solid waste service provided to service recipients in either the City of. San Clemente, the City of Laguna Niguel or the City of Dana Point. Thirty days prior to any proposed rate reduction for any solid waste services in the City of San Clemente, Laguna Niguel or Dana Point, Solag shall notify the City of San Juan Capistrano of these proposed rate changes in the other city or cities. In the event that these rates are lower than those in Exhibit A (as this Exhibit is modified from time to time pursuant to the Agreement), Exhibit A shall be deemed modified to reflect the lower rates. Such adjusted rate shall be the new base rate for this Agreement on which any future rate increases are calculated. 12. FRANCHISE FEES In consideration for the exclusive right to collect and dispose of solid waste within the corporate boundaries of City, Contractor shall pay to City, in lawful money of the United States, a franchise fee equal to five percent (5%) of the gross annual receipts of Contractor arising out of the use, operation or possession of this franchise. Effective November 1, 1995 franchise fees for all on-call bin service shall be due and payable according to the schedule below. Said franchise fee collected shall be due to City in monthly payments, which shall be due on or before the fifteenth (15th) day of each following month. The amount of each such payment shall be equal to five percent (5%) of the previous months' gross receipts. 14 As used herein, "Gross Receipts" shall include all fees, charged and revenues received by Contractor, and its affiliates and subsidiaries, if any, arising from or attributable to operation of this franchise less landfill and composting facility tipping fees. A. In the event Contractor fails to make any of the payments provided for in this franchise on or before the dates due, Contractor shall pay as additional consideration both of the following amount: (1) A sum of money equal to five percent(5%) of the amount due. This amount is required in order to defray those additional expenses and costs incurred by City by reason of the delinquent payment including, but not limited to, the cost of administering, accounting and collecting said delinquent payment and the cost to city of postponing services and projects necessitated by the delay in receiving the revenue; and (2) A sum of money equal to two percent (2%) of the amount due per month as interest and for loss of use of the money due. 13. FAITHFUL PERFORMANCE Concurrent with the execution of this Agreement, contractor shall deposit with the City Manager a cash deposit, irrevocable letter of credit, or other such document evidencing an irrevocable cash deposit payable to city, in the amount of$10,000, in a form approved by the City Attorney, guaranteeing contractor's faithful performance of the terms of this agreement. Such cash deposit, letter of credit or other such document shall be maintained in effect throughout the duration of this Agreement. 14. CE CON ERAGE Contractor shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, or Contractor's agents, representative, employees or subcontractors. A. Minimum Scope of Insurance. Coverage shall be at least as broad as: 15 (1) General Liabilly. Insurance Services Office form number GI. 0002 (Ed. 1173) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Service Office Commercial General Liability coverage ("occurrence" form CG 0001). (2) Automotive Liability. Insurance Services Office form number CA 0001. (Ed. 1/78)covering Automobile Liability, code 1 "any auto" and endorsement CA 0025. (3) Worker's Compensation. Workers' Compensation insurance as required by the State of California, and Employers' Liability insurance. B. Minimum Limits of Insurance. Contractor shall obtain and maintain in full force and effect throughout the entire term of this Franchise Agreement a Inroad Form ........ '' : :Comprehensive General Liability (occurrence)policy with a minimum limit of Five Million Dollars ($5,000,000.00) aggregate and Two Million Dollars ($2,000,000.00) per occurrence for bodily injury and property damage, with any self-insured retention I not exceeding $200,000.00 per occurrence. Said insurance shall protect Contractor and City from any claim for damages for bodily injury, including accidental death, as well as from any claim for property damage which may arise from operations performed pursuant to this Franchise Agreement, whether such operations be by Contractor itself, or by its agents, employees, and/or Subcontractors. Copies of the policies or endorsements evidencing the above required insurance coverage shall be fled with the City Clerk. All of the following endorsements are required to be made a part of the insurance policies required by this Section: (1) "The City, its employees, agents, Contractors, and officers, are hereby added as insured as respects liability arising out of activities performed by or on behalf of Contractor." (2) "This policy shall be considered primary insurance as respects any other valid and collectible insurance the City may possess including any self-insured retention the City may have, and any other insurance the City does possess shall be considered excess insurance and shall not contribute with it." (3) "This insurance shall act for each insured, as though a separate policy had been written for each. This, however, shall not act to increase the limit of liability of the insuring company.,, 16 (3) "This insurance shall act for each insured, as though a separate policy had been written for each. This, however, shall not act to increase the limit of liability of the insuring company." (4) "Thirty (30) days prior written notice by certified mail, return receipt requested, shall be given to the City in the event of suspension, cancellation, reduction in coverage or in limits, or non-renewal of this policy for whatever reason. Such notice shall be sent to the City Clerk." (5) The limits of such insurance coverage, and companies, shall be subject to review and approval by the City Manager every year and may be increased at that time and match the coverage provided by the City's own liability insurance policy. The City shall be included as a named insured on all policies and endorsements. C. Modification. The insurance requirements provided herein may be modified or waived in writing by the City Council upon the request of Contractor, provided the City Council determines such modification or waiver is in the best interests of City considering all relevant factors, including the fact that the parent of Contractor may be self-insured up to a certain acceptable amount. D. Deductibles and elf-Insured Retention. Any deductibles or self-insured retention must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects City, its officers, officials, employees and volunteers; or contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. E. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) City, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees or volunteers. 17 (2) Contractor's insurance coverage shall be primary insurance as respects City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be excess of Contractor's insurance and shall not contribute with it. (3) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officers, officials, employees or volunteers. (4) Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits except after thirty (30) days' prior to written notice by certified mail, has been given to City. F. A to ill f I r r . Insurance coverage is to be obtained from California-admitted insurers with the Best's rating of no less than ANIL G. Verification of Coverage. Contractor shall furnish City with certificates of insurance and original endorsements effecting coverage required by this section. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by City. All certificates, letters and endorsements are to be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies, at any time. H. Subcontractors. Contractor shall include any subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. 18 15. FRANCHISE THANSFERRABI.E A. The franchise granted by this Franchise Agreement shall not be transferred, sold, hypothecated, sublet, or assigned, nor shall any of the rights or privileges herein be hypothecated, leased, assigned, sold, or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest, or property therein, pass to or vest in any person, except the Contractor, either by act of the Contractor or by operation of law, without the prior written consent of the City expressed by Resolution. Any attempt by Contractor to assign this franchise without the consent of City shall be void. F. The City may impose conditions of approval on a Franchise Agreement transfer, including, but not limited to, conditions requiring acceptance of amendments to Chapter 3 and this Franchise Agreement. The City shall not be unreasonable in withholding the transfer. C. City consent is required for any change in control of Contractor. "Change in control" shall mean any sale, transfer., or acquisition of Contractor. Contractor is a corporation, and any acquisition of more than ten percent (10%) of Contractor's voting stock by a person, or group of persons acting in concert, who already owns less than 50% of the voting stock, shalt be deemed a change in control. D. Any change in control of the Contractor occurring without prior City approval shall constitute a material breach of this Franchise Agreement. 16. FRANCHISE TRANSFER: "EES A. Any application for a franchise transfer shall be made in a manner prescribed by the City Manager. The application shall include a transfer fee in an amount to be set by City by a Resolution of the Council, to cover the cost of all direct and indirect administrative expenses including consultants and attorneys, necessary to adequately analyze the application and to reimburse City for all direct and indirect expenses. In addition, the Contractor shall reimburse the City for all costs not covered by the transfer fee. Bills shall be supported with evidence of the expense or cost incurred. The applicant shall pay such bills within thirty (30) days of receipt. B. These franchise transfer fees are over and above any franchise fees specified in this Franchise Agreement. 19 17. IMI' ITI F DAMAGES R TERMINATION A. If the City Manager determines that the Contractor's performance pursuant to this Franchise Agreement has not been in conformity with reasonable industry standards which are obtained in similar cities in Southern California, the provisions of this Franchise Agreement, the requirements of Chapter 3, the requirements of the California Integrated Taste Management Board, including, but not limited to, requirements for source reduction and recycling (as to the waste stream subject to this Franchise Agreement) or any other applicable Federal, State, or local law or regulation, including but not limited to the laws governing transfer, storage, or disposal of special wastes, the City Manager may advise Contractor in writing of such deficiencies. The Manager may, in such written instrument, set a reasonable time within which correction of all such deficiencies is to be made. Unless otherwise specified, a reasonable time for correction shall be sixty (60) days from the receipt by the Contractor of such written notice. The City Manager shall review the Contractor's response and refer the matter to the City Council or decide the matter and notify the Contractor of that decision, in writing. A decision or order of the City Manager shall be final and binding on Contractor if the Contractor fails to file a "Notice of Appeal" with the City Manager within 30 days of receipt of the City Manager's decision. Within ten working days of receipt of a Notice of Appeal, the City Manager shall either refer the appeal to the City Council for proceedings in accordance with Section 17 C and D, below, or refer the matter to a hearing officer as provided in Section 18, below. B. The City Council, in such case, may set the matter for hearing. The City Council shall give Contractor, and any other person requesting the same, fourteen (14) days written notice of the time and place of the hearing. At the hearing, the City Council shall consider the report of the City Manager indicating the deficiencies, and shall give the Contractor, or its representatives and any other interested person, a reasonable opportunity to be heard. C. Based on the evidence presented at the public hearing, the Council shall determine by Resolution whether the Franchise Agreement should be terminated or liquidated damages imposed. If, based upon the record, the City Council determines that the performance of Contractor is in breach of any material term of this Franchise Agreement or any material provision of any applicable Federal, State, or local statute or regulation, the City Council, in the exercise of its sole discretion, may terminate forthwith, the Franchise Agreement or impose liquidated damages, as defined below. The decision of the City Council shall be final and conclusive, subject to referral of the matter for an 20 administrative hearing pursuant to Section 18, below. Contractor's performance under its franchise is not excused during the period of time prior to the City Council's final determination as to whether such performance is deficient. D. This right of termination or to impose liquidated damages is in addition to any other rights of City upon a failure of Contractor to perform its obligations under this Franchise Agreement. F. The City further reserves the right to terminate Contractor's franchise or impose liquidated damages in the event of any of the following: (1) If the Contractor becomes insolvent, unable, or unwilling to pay its debts, or upon listing of an order for relief in favor of Contractor in a bankruptcy proceeding. (2) If the Contractor fails to provide or maintain in full force and effect, the workers' compensation, liability, indemnification coverage, or cash bond as required by the Franchise Agreement. (3) If the Contractor willfully violates any orders or rulings of any regulatory body having jurisdiction over the Contractor relative to this Franchise Agreement, provided that the Contractor may contest any such orders or rulings by appropriate proceedings conducted in good faith, in which case no breach of the franchise shall be deemed to have occurred. (4) If the Contractor ceases to provide collection as required under this Franchise Agreement over all or a substantial portion of its Franchise Area for a period of seven (7) days or more, for any reason within the control of the Contractor. (5) If the Contractor willfully fails to make any payments required under the Franchise Agreement and/or refuses to provide City with required information, reports, and/or test results in a timely manner as provided in the Franchise Agreement. (6) Any other act or omission by the Contractor which materially violates the terms, conditions, or requirements of this franchise, Chapter 3, the California Integrated Waste Management Act of 1989, as it may be amended from time to time or any order, directive, rule, or regulation issued thereunder and 21 which is not corrected or remedied within the time set in the written notice of the violation or, if the Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if the Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter. F. The City finds, and the Contractor agrees, that as of the time of the execution of this Franchise Agreement, it is impractical if not impossible, to reasonably ascertain the extent of damages which shall be incurred by the City as a result of a material breach by Contractor of its obligations under this Franchise Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (I) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Franchise Agreement to individual members of the general public for whose benefit this Franchise Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that services might be available at substantially lower costs than alternative services, and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and. (iv) the termination of this Franchise Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which snake the public whole for past breaches. Accordingly, the City Council may, in its discretion, assess liquidated damages not to exceed the sum of Seven Hundred and Fifty Dollars ($750.00) per day, for each calendar day that service is not provided by Contractor in accordance with this Franchise Agreement. The amount of the liquidated damages shall be increased by the past year's consumer price index (all urban consumers) for the Los Angeles-Anaheim-Riverside area on March 1 and effective July 1 of each year. In addition, the Council may order the assessment against the cash bond required by Section 13, above, the termination of the Franchise Agreement, or both. The City finds, and the Contractor acknowledges and agrees that the above described liquidated damages provisions represent a reasonable sum in light of all of the circumstances. Said liquidated damages sums shall be applicable to each calendar day of delay during which Contractor has been found by the City Council to be in material default pursuant to this Section. The Contractor shall pay any liquidated damages assessed by the City Council within ten (10) days after they are assessed. If they are not paid within the ten(10) day period, the City may withdraw them from the security fund established by the 22 I.S. ADMINISTRATBT HEARING PROCEDURES A. Should Contractor contend that the City is in breach of this Franchise Agreement, it shall file a request with the City Manager for an administrative hearing on the allegation. B. If either the City Manager or the City Council refers a matter to a hearing officer, or if the Contractor should allege a breach of the franchise by the City, City and Contractor shall mutually agree on a hearing officer. If agreement is not reached within twenty (20) working days of the filing of the notice of appeal, then Contractor shall select the hearing officer from a list of three potential hearing officers who are retired California Superior Court judges or Appellate Court justices, none of whore are related to the parties, prepared by the City Manager and approved by the City Council. C. The hearing shall be conducted according to California Code of Civil Procedure Section 1280, et sea. The exclusive venue shall be in Orange County, California. A hearing officer to whom a matter is referred shall have the authority to (I) order the City or the Contractor to undertake remedial action to cure the breach and to prevent occurrence of similar breaches in the future; (ii) assess damages and/or levy a penalty upon the Contractor consistent with the terms of this Franchise Agreement; or (iii) find there has been no breach. If the hearing officer finds there has been no breach, such a decision precludes the City from conducting a default hearing. For any occurrence or series of related occurrences, the penalty may be up to Five Thousand Dollars ($5,000.00), The amount of the penalty shall be reasonably related to the seriousness of the breach of the Franchise Agreement. D. The party losing the hearing shall be liable for the hearing officer's fees. E. Any failure of the Contractor to comply with the hearing officer's order shall be deemed a material breach of the Franchise Agreement, and may be grounds for termination of the Franchise Agreement. E. The hearing officer shall commence the hearing within thirty (30) days of selection unless the parties and the hearing officer otherwise agree. Any party to the hearing may issue a request to compel reasonable document production from the other party. Disputes concerning the scope of document production and enforcement of document requests shall be subject to agreement by the parties, or if agreement is not reached within twenty (20) days of that document request, then by disposition by order of the hearing officer. Any such document request shall be subject to the proprietary rights 23 document requests shall be subject to agreement by the parties, or if agreement is not reached within twenty (20) days of that document request, then by disposition by order of the hearing officer. Any such document request shall be subject to the proprietary rights and rights of privilege of the parties, and the hearing officer shall adopt procedures to protect such rights. Except as may be otherwise specifically agreed by the parties, no other form of pretrial discovery shall be available to the parties; provided that if either party notifies the hearing officer that a material violation of the franchise or rights in connection therewith is claimed by either party, the provisions of Code of Civil Procedure Section 1283.05 shall apply. G. Neither party may communicate separately with the hearing officer after the hearing officer has been selected. All subsequent communications between a party and a hearing officer shall be simultaneously delivered to the other party. This provision shall not apply to communications made to schedule a hearing or request a continuance. H. Until final judgment is entered from the hearing officer proceeding under the foregoing provisions and the time for appeal or other post judgment petition has expired, the imposition or enforcement of any penalties or sanctions provided in the Franchise Agreement and related to the subject matter of the hearing shall be stayed. The hearing officer may modify or cancel any proposed penalties or sanctions upon a finding that the party subject thereto acted with substantial justification or if the interests of justice so require. 1. Any party to a hearing may petition the Superior Court in Orange County, California to confirm, correct, or vacate the award on the grounds stated in the General Arbitration Act. Any proceedings on appeal shall be in accordance with Code of Civil Procedures § 1294 and § 1294.2. 19. CITY'S ADDITIONAL REMEDIES In addition to the remedies set forth in Sections 17-15, above, City shall have the following rights: A. To rent or lease equipment from Contractor for the purpose of collecting, transporting, recycling, composting, and disposing of solid waste and construction debris and providing temporary bin/rolloff services pursuant to this Franchise Agreement, for a period not to exceed six (6) months. In the case of equipment not owned by Contractor, Contractor shall assign to City, to the extent Contractor is permitted to do so under the instruments pursuant to which Contractor possesses such equipment, the right to possess 24 the equipment. If City exercises its rights under this Section, City shall pay to Contractor the reasonable rental value of the equipment so taken for the period of City's possession thereof, B. The right to license others to perform the services otherwise to be performed by Contractor hereunder, or to perform such services itself, and C. The right to obtain damages and/or injunctive relief. Both parties recognize and agree that in the event of a breach under the terms of this Franchise Agreement by Contractor, City may suffer irreparable injury and incalculable damages sufficient to support injunctive relief, to enforce the provisions of this Franchise Agreement and to enjoin the breach thereof. 20. RIGHTS F CITY To PERFORM DURING EMERGENCY Should Contractor, for any reason whatsoever, except the occurrence or existence of any of the events or conditions set forth in Section 28, "Force Majeure,,' below, refuse or be unable to and collect, transport, recycle, compost, and dispose of solid waste and construction debris and provide temporary bin/rolloff services any or all of the refuse, compostables, and recyclables which it is obligated under this Franchise Agreement for a period of more than seventy-two (72) hours, and if as a result thereof, debris, refuse, compostables, recyclables, and construction debris should accumulate in City to such an extent, in such a manner, or for such a time that the City Manager should find that such accumulation endangers or menaces the public health, safety, or welfare, then in such event City shall have the right, upon twenty-four (24) hour prior written notice to Contractor, during the period of such emergency, to temporarily take possession of any or all equipment and facilities of Contractor previously used in providing the collection, transportation, recycling, composting, and disposal of solid waste and construction debris and provide temporary bin/rolloff services under this Franchise Agreement, and to use such equipment and facilities to collect, recycle, compost, and transport any or all debris, refuse, compostables, recyclables, and construction debris and provide temporary bin/rolloff services which Contractor would otherwise be obligated to collect, recycle, compost, transport, and dispose of solid waste and construction debris and provide temporary bin/rolloff services pursuant to this Franchise Agreement. Contractor agrees that in such event it shall fully cooperate with City to effect such a transfer of possession for City's use. 25 Contractor agrees that, in such event, City may take temporary possession of and use all of said equipment and facilities without paying Contractor any rental or other charge, provided that City agrees that, in such event, it assumes complete responsibility for the proper and normal use of such equipment and facilities. City agrees that it shall hu mediately relinquish possession of all of the above mentioned property to Contractor upon receipt of written notice from Contractor to the effect that it is able to resume its normal responsibilities under this Franchise Agreement. 21. PRI AC 1 Contractor shall strictly observe and protect the rights of privacy of customers. Information identifying individual customers or the composition or contents of a customer's waste stream shall not be revealed to any person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the customer. This provision shall not be construed to preclude Contractor from preparing, participating in,. or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. Contractor shall not market or distribute, outside the normal course of its business, mailing lists with the names and addresses of customers. The rights accorded customers pursuant to this Section shall be in addition to any other privacy right accorded customers pursuant to Federal or State law. 22. REPORTS AND ADVERSE INFORMATIM A. Monthly and Quarterly Wo . Contractor, at no additional expense, shall submit to the City Manager such other information or reports in such forms and at such times as the City may reasonably request or require, including, but not limited to the following: 1) Monthly Reports. 'within fifteen(15)working days after the last day of each month, Contractor shall submit a Monthly Report. The Deport shall be submitted to City, transmitted in a format acceptable to City. The monthly report shall show the number of tons disposed per month and the total number of tons recycled per month. The information shall be reported for the following categories: residential-curbside, multi-family, commercial, and construction/industrial. The report should be in a form satisfactory to the City, demonstrating the City's progress in meeting and maintaining its ability to meet its goals under AB 939, along with any recommended changes. 26 2). Quarterly Deports. Within 30 days after the completion of each quarter of the fiscal year Contractor shall submit a Quarterly Report. The Report shall provide a quarterly summary of the monthly reports in addition to the following: a. Recyclable Solid Wastes (1) A statement showing by type of material, tons received during the month and tons marketed during the month. (2) Recycling sales revenue by type of material marketed on a gross and net basis. (3) A report providing recycling information and the number of service recipients participating. (4) A narrative description of problems encountered and actions taken, including efforts to deter and prevent scavenging. The narrative is to include a description of tons rejected for sale after processing (type of material, tonnage), reason for rejection and Contractor's disposal method for the rejected materials. (5) A report of recycling program promotional and educational activities, including materials distributed by Contractor to its service recipients. B. Annual Reports. Contractor shall submit a written annual report, in a form approved by the City, including, but not limited to, the following information: (1) The number of accounts for each class of service for the year. (2) A report, in a form satisfactory to the City, on the City's progress in meeting and maintaining its ability to meet its goals under AB 939, along with any recommended changes. (3) A revenue statement, setting forth Franchise Fees and the basis for the calculation thereof, certified by an officer of the Contractor, with an annual statement certified by an independent auditor of the Contractor; 27 (4) A list of Contractor's officers and members of its board of directors. A list of stockholders or other equity investors holding five percent (5%) or more of the voting interest in the Contractor and any subsidiaries unless Contractor is a public corporation whose annual reports are publicly available. C. .Adverse Information. Contractor shall provide City two copies of all reports, or other material adversely affecting the Franchise Agreement, submitted by Contractor to the EPA, the California Integrated Waste Management Board, or any other Federal or State agency. Copies shall be submitted to City simultaneously with Contractor's filing of such matters with said agencies. Contractor's routine correspondence to said agencies need not be automatically submitted to City, but shall be made available to City upon written request, as provided in Section 27, below. (1) The Contractor shall submit to City copies of all pleadings, applications, notifications, communications, and documents of any kind, submitted by the Contractor to, as well as copies of all decisions, correspondence, and actions by, any Federal, State, and local courts, regulatory agencies, and other government bodies relating specifically to Contractor's performance of services pursuant to this Franchise Agreement. Any confidential data exempt from public disclosure shall be retained in confidence by the City and its authorized agents and shall not be made available for public inspection. (2) Contractor shall submit to the City such other information or reports in such forms and at such times as the City may reasonably request or require. (3) All reports and records required under this or any other section shall be furnished at the sole expense of the Contractor. (4) A copy of each of Contractor's annual and other periodic public financial reports and those of its parent, subsidiary, and affiliated corporation and other entities, as the City requests, shall be submitted to the City within thirty (30) days after receipt of a request. 28 D. Tonnage Receipt. The Contractor shall submit to the City Manager and/or his designee quarterly reports setting forth the amount of tonnage of solid waste collected from within the City limits and disposed of pursuant to this Agreement for the previous quarter and setting forth the cumulative year-to-date total amount of tonnage of such solid waste. Said reports shall be based upon the tonnage receipts provided to Contractor by the solid waste facility or landfill. Contractor shall, upon demand by the City provide true and accurate copies of the tonnage receipts in order for City to verify Contractors' quarterly reports. E. Failure to Report. The refusal, failure, or neglect of the Contractor to file any of the reports required, or the inclusion of any materially false or misleading statement or representation made knowingly by the Contractor in such report shall be deemed a material breach of the Franchise Agreement, and shall subject the Contractor to all remedies, legal or equitable, which are available to the City under the Franchise Agreement or otherwise. 23. PUBLIC ACCESS TO CONTRACTOI(t A. Office Hours. Contractor's office hours shall be, at a minimum, from 8:00 A.M. to 5:00 P.M. daily, on all collection days. A representative of Contractor shall be available during office hours for communication with the public at Contractor's principal office. In the event that normal business cannot be rectified over the telephone, a representative of Contractor shall agree to meet with the public at a location agreeable to Contractor and the public. Normal office hours telephone numbers shall either be a local or toll free call. Contractor shall also maintain a local or toll free after-hours telephone number for use during other than normal business hours. Contractor shall have a representative or answering service available at said after-hours telephone number during all hours other than normal office hours. B. Service Complaints. Contractor shall address and manage all complaints in the following manner: (1) All customer complaints shall be directed to Contractor. Contractor shall record all complaints received by mail, by telephone, or in person (including date, name, address of complainant, and nature of complaint). Contractor agrees to use its best efforts to resolve all complaints by close of business of the second 29 business (waste collection) day following the date on which such complaint is received. Service complaints may be investigated by the City Manager or the Manager's designee. Unless a settlement satisfactory to complainant, the Contractor, and the Manager's designee is reached, the complainant may refer the matter to the City Manager for review. (2) Contractor shall maintain records listing the date of consumer complaints, the customer, describing the nature of the complaint or request, and when and what action was taken by the Contractor to resolve the complaint. All such records shall be maintained and shall be available for inspection by City, as described in Section 27. C. Clovernment_Liaison Person. The Contractor shall designate a "government liaison person" who shall be responsible for working with the City Manager or the City Manager's designated representative to resolve consumer complaints. 24. RESOLLUTON OF DISPUTED MICOMER COMPLAINT A. The Contractor shall notify customers of this complaint arbitration procedure at the time customers apply for or are provided service, and subsequently, annually. B. A customer dissatisfied with Contractor's decision regarding a complaint may ask the City to review the complaint. To obtain this review, the customer must request City review within 30 days of receipt of Contractor's response to the Complaint, or within 45 days of submitting the complaint to the Contractor, if the Contractor has failed to respond to the complaint. The City may extend the time to request its review for good cause. C. Before reviewing the complaint, the City Manager shall refer it to the Contractor. If the Contractor fails to cure the complaint within ten (10) days, the City Manager shall review the customer's complaint and determine if further action is warranted. The City Manager may request written statements from the Contractor and customer, and/or oral presentations. D. The City Manager shall determine if the customer's complaint is justified, and if so, what remedy, if any, shall be imposed. 30 E. Contractor shall maintain all records relating to customer complaints, for a period not less than one (1) year. 25. OWNERSHIP OF SOLIDWASTE: FLOW CONTROL Ownership and the right to possession of refuse, compostables, and recyclables, placed in containers, bins or rolloffs, or placed at curbside, shall transfer directly from the customer to the Contractor, by operation of law. Contractors' arrangements with its customers will provide that, subject to the right of the customer to claim lost property, title and the right to possession, and liability for all recyclables and all solid waste, whether or not recyclable, which is set out for collection on the regularly scheduled collection day shall pass to contractor at the time it is set out. Subject to the provisions of this Franchise Agreement, Contractor shall have the right to retain any benefit profit resulting from its right to retain, recycle, compost, dispose of, or use the refuse, compostables, recyclables, and construction debris which it collects. Refuse, compostables, recyclables, and construction debris, or any part thereof, which is disposed of at a disposal site or sites (whether landfill, transformation facility, compost facility, or material recovery facility) shall become the property of the owner or operator of the disposal site or sites once deposited there by Contractor. However, City, at its sole option, shall retain the right to require Contractor which transformation facility, compost facility, material recovery facility or landfill shall be used to retain, recycle, compost, process, and dispose of solid waste and construction debris generated within the Franchise Area. In this instance, Contractor shall conduct a rate audit and recommend, if necessary, a rate adjustment, 26. INDEMNIFICATION A. Indemnification of City. Contractor agrees that it shall protect, defend with counsel approved by City, indemnify, and hold harmless City, its officers, employees, and agents from and against any and all losses, liabilities, fines, penalties, claims, damages, liabilities, or judgments, including attorneys fees, arising out of or resulting in any way from Contractor's exercise of this franchise, unless such claim is due to the sole negligence or willful acts of the City, its officers, employees, agents, or contractors, or from the City's grant of this franchise to Contractor. Subject to the scope of this indemnification and upon demand of the City, made by and through the City Attorney, the Contractor shall appear in and defend the City and its officers, employees, and agents in any claims or actions, whether judicial, administrative, or otherwise arising out of the exercise of the Franchise Agreement. 31 B. Indemnification of Contractor. The City shall indemnify, defend and hold the Contractor, its affiliates and their respective officers, directors, employees, and shareholders harmless from and against any and all liabilities, losses, damages, claims, actions, causes of action, costs, and expenses (including reasonable attorneys' fees) arising from or in any manner related to the sole negligence or willful acts of the City, its officers, employees, agents, or contractors. C. Hazardous Sub tante Indemnification. Contractor shall indemnify, defend with counsel approved by City, protect and hold harmless City, its officers, employees, agents, assigns, and any successor or successors to City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and expenses (including but not limited to attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, City or its officers, employees, agents, or Contractors arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous wastes at any place where Contractor stores or disposes of municipal solid waste or construction and debris pursuant to this Franchise Agreement. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act, "CERCLA", 42 U.S.C. Section 9607(e) and California Health and Safety Code Section 25364, to insure, protect, hold harmless, and indemnify City from liability. D. AB 939 Indemnification. Contractor agrees to protect, defend, with counsel approved by City, and indemnify City against all fines or penalties imposed by the California Integrated 'waste Management Board or local enforcement agency in the event the source reduction and recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream collected under this Franchise Agreement. Assuming City and Contractor agree on programs, Contractor shall cause at least fifty percent (50%) of the waste stream collected under this Agreement to be diverted from landfills as defined by State law as amended from time to time by January 1, 2000. 32 E. Workers' Com Insurance. Contractor shall obtain and maintain in full force and effect throughout the entire term of this .Franchise Agreement full workers' compensation insurance in accord with the provisions and requirements of the Labor Code of the State of California. Endorsements that implement the required coverage shall be filed and maintained with the City Clerk throughout the term of this Franchise Agreement. The policy providing coverage shall be amended to provide that the insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City. The policy shall also be amended to waive all rights of subrogation against the City, its elected or appointed officials, employees, agents, or Contractors for losses which arise from work performed by the named insured for the City. 27. CONTRACTOR'S K RECORDS; AUDIT A. Contractor shall maintain all records relating to the services provided hereunder, including, but not limited to, customer lists, billing records, accounts payable records, maps, and AB 939 compliance records, for a period of not less than three (3) years, or any longer period required by law. The City shall have the right, upon five (5) business days advance notice, to inspect all maps, AB 939 compliance records, customer complaints, and other like materials of the Contractor which reasonably relate to Contractor's compliance with the provisions of the Franchise Agreement. Such records shall be made available to City at Contractor's regular place of business, but in no event outside the County of®range. B. Should any examination or audit of Contractor's records reveal an underpayment of any fee required under this Franchise Agreement, the amount of such underpayment shall become due and payable to City not later than fifteen (15) days after written notice of such underpayment is sent to Contractor by City. Should an underpayment of more than three percent (3%) be discovered, Contractor shall bear the entire cost of the audit of the franchise fees. 28. GENERAL PROVISIONS A. Force Majeure. Contractor shall not be in default under this Franchise Agreement in the event that the and temporary bin/rolloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction debris provided by the Contractor are temporarily interrupted or discontinued for any of the following reasons: riots, wars, sabotage, civil disturbances, insurrections, explosion, natural disasters such as floods, earthquakes, landslides, and fires, strikes, lockouts, and 33 other labor disturbances or other catastrophic events which are beyond the reasonable control of Contractor. Other catastrophic events do not include the financial inability of the Contractor to perform or failure of the Contractor to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of the Contractor. In the event a labor disturbance interrupts temporary bin/rolloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction debris by Contractor as required under this Franchise Agreement, City may elect to exercise its rights under Section 17 of this Agreement. B. Independent Contractor. Contractor is an independent contractor and not an officer, agent, servant, or employee of City. Contractor is solely responsible for the acts and omissions of its officers, agents, employees, Contractors, and subcontractors, if any. Nothing in this Franchise Agreement shall be construed as creating a partnership or joint venture between City and Contractor. Neither Contractor nor its officers, employees, agents, or subcontractors shall obtain any rights to retirement or other benefits which accrue to City employees. C. Pavement Damage. Contractor shall be responsible for any extraordinary damage to City's driving surfaces, resulting from negligence in providing refuse collection and temporary bin/rolloff services. D. ELQp yDamage. Any physical damage caused by the negligent or willful acts or omissions of employees, Contractors, or subcontractors of the Contractor to private or public property shall be repaired or replaced. E. Right� of Entry. Contractor shall have the right, until receipt of written notice revoking permission to pass is delivered to Contractor, to enter or drive on any private street, court, place, easement, or other private property for the purpose of providing temporary bin/rolloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction and demolition debris pursuant to this Franchise Agreement. F Law to Govern. Venue, The law of the State of California shall govern this Franchise Agreement. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Orange. In the event of litigation in a U.S. District Court, exclusive venue shall lie in the Central District of California. 34 G. Fees and Gratuities. Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to, request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity for temporary bin/rolloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction debris otherwise required under this Franchise Agreement. H. Prior Agreements and Amendm . This Franchise Agreement is intended to carry out City's obligations to comply with the provisions of the California Integrated Waste Management Act of 1989, ("AB 939") as it from time to time may be amended, and as implemented by regulations of the California Integrated Waste Management Board ("Regulations"), as they from time to time may be amended. In the event that AB 939 or other State or Federal laws or regulations enacted after this Franchise has been enacted, prevent or preclude compliance with one or more provisions of this Franchise Agreement, such provisions of the Franchise shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations. No other amendment of this Franchise Agreement shall be valid unless in writing duly executed by the parties. I. Compliance with Franchise Agreement. Contractor shall comply with those provisions of the San Juan Capistrano Municipal Code which are applicable, and with any and all amendments to such applicable provisions during the term of this Franchise Agreement. J. Notices. All notices required or permitted to be given under this franchise shall be in writing and shall be personally delivered or sent by telecopier(fax), or United States certified mail, postage prepaid, return receipt requested, and addressed as follows: To City: City of San Juan Capistrano City Attorney 32400 Paseo Adelanto San Juan. Capistrano, CA 92675 To Contractor: Solag Disposal Company Incorporated P. 0. Box 11001 San Juan Capistrano, California 92693 Telecopier: (714) 240-0195 Telephone: (714) 240-0446 35 or to such other address as either party may from time to time designate by notice to the other given in accordance with this Section. Notice shall be deemed effective on the date personally served or, if mailed, three (3) business days from the date such notice is deposited in the United States mail. K. Savings Clause and Entirety. If any non-material provision of this Franchise Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any of the remaining provisions of this Franchise Agreement. L. Exhibits Incorporated. Exhibits "A" through "F" are attached to and incorporated in this Franchise Agreement by reference. WITNESS the execution of this Agreement on the day and year written above. CITY OF SAN JUAN CAPISTRANO ATTEST: Ey David Swerdlin, Mayor Cheryl Jo n, eity Clerk APPROVED AS TO FORM 44 Rz hard Denhalter, City Attorney Solag Disposal Co. Incorporated By P "'w Lz. e Tom Trulis, Owner/President 36 ACKNOWLEDGMENT STATE OF } ss. COUNTY OF ) On , before ane, the undersigned, A Notary Public in and for the State of California, personally appeared personally known to me (or 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(iq-�j, and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed f the instrument. r Signature: CORPORATE SEAL 37 EXHIBIT A Solid Waste—CQ_Ilection Rate Schedule 1. Automated residential curb and roadside collection, recycling, composting and disposal located on a paved, two lane road; monthly rate for: (2) 35 gallon containers one refuse, one recycling. $11.72 (2) 67 gallon containers one refuse, one recycling: $12.99 (3) 67 gallon containers one refuse, one recycling, one compost:$ 13.47 Each additional 35 gallon container: $3.21 Each additional 67 gallon container: $3.32 Vacancy, self hauler exemption: $6.59 2. Multi-family, Commercial and Industrial receiving bin. service (3 cubic yard bins) for DISPOSAL; monthly rate with the following pickups per week: 1 x week $ 72.63 4 x week $194.82 2 x week $113.76 5 x week $237.14 3 x week $149.37 6 x week $278.32 3. Roll-Off Rate: Regular Service Drop-off-box: 138.56 + Actual Landfill fee Compactor: 138.56 + Actual Landfill fee On-Call Service 36 cu. yd. 3 cu. yd. Drop-off-box: Drop-off-box: 341.07 ( 24 Hrs.) 38.64 Lowboy ( weekly ) 49.76 Drop-off-box: 408.56 Bulky Items: First two calls: $-0- Each call thereafter: $10.00 Miscellaneous Fees: Graffiti Removal per incident - Residential User $10.00 Commercial User $10.00 Delinquent Fee $5.00 Redelivery or Reinstatement Fee $15.00 Refund Fee $1.50 38 EXHIBIT B Solid t lecti n Rate Com u tion F Mul Base_Rate_Adjustment The Contractor shall be entitled to an annual increase of the base rate, not to exceed 4% per annum using of the producers price index ("PPI") for finished goods published by the Bureau of Labor Statistics on January 1 of each contract year commencing January 1, 1997. The index. for November 1 to October 31 shall be used. Disposal Rate Adjustment Additionally, the landfill tipping fee adjustment shall be a pro-rata pass through of any tipping fee increase or decrease. The ,pounds of refuse per customer shall be adjusted annually based on the contractors landfill gate receipts for the previous year. The landfill tipping fee pass through formula is as follows: (A) Residential Pickup = The difference between current tip fee and proposed tip fee divided by the current tip fee to establish the percentage variance change. The variance times the tip fee equals the rate change. Rate change is added for increase and subtracted for decrease in tip fee. (B) Commercial Pickup = Total annual tons 12 month equals monthly tonnage average. Monthly tonnage times the 2,000 equals monthly rate in pounds. Monthly pound divided by total number of monthly dumps equals weight per bin. Pounds per bin divided by 2,000 equals percentage of one ton. Percentage of one ton tunes the per ton dump fee equals tip fee pass thru rate per single frequency. Residential Rate Composite: Two 35 gallon containers: Base Tipping Total Rate Fee Rate 10.01 + 1.71 — 11.72 Two 67 gallon containers: Base Tipping Total Rate Fee Rate 10.16 + 2.83 12.99 39 Three 67 gallon containers: Base Tipping Total Rate ftt_ Vie_ 10.48 + 2.99 = 13.47 Commercial Rate Composite for Disposal Only: Bas Rate +TiDDing Fee + AB939 = Total Rate 1 x wk 50.41 20.80 1042 72.63 2 x wk 69.94 41.60 2.22 113.76 3 x wk 84.50 62.40 292 149.37 4 x wk 107.81 83.20 3.81. 194.82 5 x wk 128.51 104.00 4.63 237.14 6 x wk 148.07 124.80 5.45 278.32 Roll-Off Rate: Regular Service: Base Rate + Tipping Fe ,Total Rate Drop-Off-Box 138.56 Actual 0 Compactor 138.56 Actual 0 On-Call Service Base Rate + Tipping Fee = Total Rate Drop off box: 36 cubic yard 138.56 202.51 341.07 Lowboy 10 cu yds. 138.56 270.00 408.56 3 CUBIC YARD BIN: 24 hrs 31.79 6.85 38.64 Meekly 43.13 6.63 49.76 40 EXHIBIT C &&ycling_Programs, Service Com=ncement, AB 939 Education A. Contractor guarantees to City that it shall cause at least twenty-five percent (25%) by January 1, 1995, and fifty percent (50%) by January 1, 2000, of the annual waste stream collected under this Franchise Agreement to be diverted from ultimate deposit in landfills or transformation facilities in accordance with the regulations implementing the California Integrated Waste Management Act of 1959 (as amended) (also known as "AB 939"). Contractor shall make every effort possible to assist in 'implementing the programs identified in the City's Source Reduction and Recycling Element (SRRE) and Household Hazardous Wastes Element (HHWE). Contractor shall provide City with written reports in a form adequate to meet City's reporting requirements to the California Integrated Waste Management Board and to the County of Orange throughout the term of this Franchise wherein its performance under this program is set forth in detail. B. Beginning July 1, 1995, Contractor shall conduct a waste audit of all contracted commercial and multi-family accounts to determine their recyclable content, prior to services being rendered. The process used to conduct this waste audit shall be shared with the City of San Juan Capistrano, to ensure permit compliance and acceptance. Beginning January 1, 1999, those accounts that contain a significant recyclable content shall be processed through the a MRF that processes materials for reuse. C. Any new collection containers or replacements shall be purchased and provided by Contractor at Contractor's expense and provide the minimum specifications contained in Exhibit "D.99 The container that is designated as recyclables shall have its contents processed at a material recovery facility. The green waste container shall its contents processed of in a compost facility. The refuse container shall have its contents taken to the landfill for disposal. Contractor shall provide to every new residential account an announcement of the recycling program, instructions on how to participate, and what services are available to the homeowner. D. Public EducationFund. Commencing with the implementation of the mechanized residential container system, Contractor shall continually maintain an "Public Education Fund" for the sole purpose of supplying public education and information about source reduction, recycling, and composting. The amount to be set aside is .09 per household per month derived from the base rate. The public Education Fund shall be held in an interest bearing bank account, separate from other funds utilized by Contractor, and shall be made available for audit review upon request of the city. All interest earned on the balance remaining in this fund shall remain as part of the fund. E. Contractor shall employ a person as the recycling coordinator whose sole responsibilities will be the implementation of the programs contained in the City's SRRE and HHWE. F. The failure of Contractor to achieve any of the above shall be deemed a material breach of this Franchise Agreement. 41 EXHIBIT D Mix-imum Container„Specifications Each container provided for the residential curbside collection shall have a capacity of sixty-seven (67) or thirty-five (35) gallons. Each container (including hardware) shall be fully guaranteed for ten (10) years against breakage or material failure. When the word "container" is used in this specification, it is defined as a complete unit including full lid assembly, wheels and axle. Contractor shall be responsible for the replacement of container, wheels, lids, hinges, axles, and handles which fail by reason of improper or inadequate materials or defective workmanship, or insufficient resistance to weathering or any other cause other than negligent or abusive use by third parties or homeowners. The containers shall meet the following specifications in all material respects. Any deviations from the specifications shall be approved by the.City Manager or designee. 1. C= Body Rotationally molded, one hundred percent (100%) first quality High Density Crosslink Polyethylene, ultraviolet stabilized Paxon 7004/7204 or Phillips 66 CL 200. Certified to contain ultraviolet stabilization provided by the equivalent of .5% of UV 531 stabilization compound. Certified to meet a minimum ESCR rating exceeding 1000 hours for both 1.00% and 10% Igepal solutions. 2. Cart Handle Mounts Integrally molded part of cart body made of the same material as the body and require no hardware (No caps, screws, metal hinges or PVC pipe). External handle diameter, 1.375 inches. 3. Cart Lid Each container shall be furnished with a lid molded from the same material as the container and shall be of such a configuration that it shall not warp, bend slump, or distort to such an extent that it no longer fits flush on the container properly or becomes otherwise unserviceable. The lid shall be designed in such a manner to insure that it will be watertight. The lid shall have the same thickness as the container and shall fully open at 95 - 110 degrees. Imprinted with "Instructions" and "Indications and Contraindications" in English and Spanish. 4. Wheel R Locking system to prevent disassembly. 5. Ax s 42 5/8" galvanized solid steel fully supported by cart body. No bolts or rivets used for mounting. 6. Wheels Each container shall be equipped with wheels molded from the same material as the body. Wheels shall be ten (10) inches in diameter by two and one-half (2'/z) inches in width. Minimum R.M.A. load rating of 180 pounds per wheel. 7. Capacity Container volume sixty-seven (67) or thirty--five (35) U.S. gallons. 8. Dimensions 67 Gallon Container = Width: 31 inches Length: 36 inches Height: 45 inches. 35 Gallon Container = Width: 21 inches Length:21.5 inches Height: 38 inches. 10. Calor Ultraviolet stabilized, non-fading tan, green, and black. 11. Stability Designed to prevent being turned over by winds of up to 25 mph in any direction when empty. 12. Hot Stam To meet the provisions of this franchise agreement § 8(A)(14). 13, Serial Number Each container shall be "hot stamped" with an individual serial number which shall correspond with individual addresses. 43 EXHIBIT E Special Wastes Flammable waste Containerized waste (e.g., a drum, barrel, portable tank, box, pail, etc.) Waste transported in a bulk tanker Liquid waste Sewage sludge Waste from a pollution control process Residue and debris from the cleanup of a spill or release of chemical substances, commercial products or any other special wastes. Contaminated soil, waste, residue, debris, and articles from the cleanup of a site or facility formerly used for the generation, storage, treatment, recycling, reclamation, or disposal of any other special wastes. Dead animals Manure Waste water Explosive substances Radioactive materials Materials which have been exposed to highly infectious or contagious diseases Hazardous materials 44 �b®ate®tea on ago v wr. z FNOMURA 01 > r l i �r w 4 ° a m a pg � a q .j PASE-:: HTO- �6 Vol ONE r ,.►�cI ��gey®1�46+�' p6 T0 ABU cFEE ®®®®® 07. ®® 1 too Y &REED o ®®®® ®b�8®� r, T- Z TO= Douglas Durnhart,Principal Management Analyst FROM: pavan M. Schanderl,Deputy City Clerk DATE: June 8, 2000. SITUATION- The $10,000 Performance Band required per Solag Disposal Agreement is due to be renewed by a continuation Certificate by July 8, 2000. This is a reminder. ACTION REQUESTED- Please U STED-Please submit original certificate to this office for filing. Thank you. ACTION TO BE TAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN- SIGNATURE OF OFFICIAL TAKING ACTION: DATE PAY I I ED —*FOR CITY CLERKS DEPARTMENT USE ONLY"* Tickler Date: 07101191 07101192 07101193 06118194 06118195 Deadline Date: 07108191 07108192 07108193 07106199 07108195 07118196 06108197 06108198 06108199 06108100 08117196 07!08/97 07108198 07108199 07108100 cc: Dep atrmerat.Head City A rrorney (600,301solae j€.i'i o (X'•T T nn Ln k in P` 7n-1 ruff iu-,S k lun f k luf 1r l l T� rrM T AM CITY CLERKS DEPARTMENT- ACTION REMINDER TO: Douglas Dumhart, Principal Management Analyst FROM: Dawn M. Schanderl, Deputy City Clerk DATE: December 1, 2000 SITUATION: The $100,000 Performance Bond required per Solag (CR&R) Disposal Agreement is due to be renewed by a continuation Certificate by December 17, 2000. This is a reminder. ACTION REQUESTED: Please submit original certificate to this office for filing. Thank you. ACTION TO BE TAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN: 1 Z'11,Vla> a SIGNATURE OF OFFICIAL TAKING ACTION: DATE SIGNED: 1 a 'FOR CITY CLE'RK'S DEPARTMENT USE ONLY" Tickler Data: 12/01/00 Deadline Date: 12/17/00 cc: Department Head City Attorney (600.30/solag) Coundl Action: Moved by Council Member F --sem by Council Member Taylor, and carne lumnaninio o have Mayor Kramer and former Council Mgmber7boiff-Hribar work with staff and bring back a report to the C� i garding municipal signs. 4. DISCUSSION OF THE INTEGRATED SOLID WASTE AGREEMENT WITH CR&R, INC. (600.30) Public Comments: • Dean Ruffridge, Senior Vice--President CR&R, provided information regarding the franchise agreement and fees; and responded to questions. • Jim Reardon, City resident, suggested reviewing the terms of the agreement on a yearly basis. • Clint Worthington, City resident, felt residents are due a credit for overcharges on CR&R bills; and expressed concerned with liquid waste leakage from CR&R trucks onto city streets. • Ian Smith, City resident, felt CR&R should voluntarily agree to a rebidding process; and felt that some Council members have a conflict of interest with accepting campaign contributions from city-wide contractors. • Dusty Otero, City resident,felt that CR&R does a good job. Council Comments: • Requested the revised rates be provided to the City Council; felt it was important for the agreement to be monitored closely. • Requested staff to provide the City Council with the amount received from the franchise fees; and felt staff should meet with CR&R representatives in order to find favorable solutions for the City. Council Action: Moved by Council Member Allevato, seconded by Council Member Freese, and carried unanimously to bring on a yearly basis to the City Council for review the Integrated Solid Waste Agreement with CR&R, Inc. 5. DISCUSSION REGAR ELIDES FOR INV �" B'UA►R'_7, 2612 (610.15) 3. L, i '[1 173/2012 113!2012 AGENDA MEMORANDUM 14 TO: Mayor and Council Members FROM: Council Member Reeve SUBJECT: Discussion of the Integrated Solid Waste Agreement with CR&R, Inc. RECOMMENDATION: Discuss the options provided in this agenda memorandum. SITUATION: Staff recently revealed that CR&R, Inc. had made miscalculations in their billing which resulted in overcharges to San Juan residents. This brought to light CR&R's contract and more specifically, the 5 year automatic renewal clause and the requirement that a notice to terminate the contract must be given to CR&R 5 years in advance. With Council changing every 2 years, this gives CR&R a virtual indefinite contract. Granting such a monopoly to any service provider may not be the best deal for our residents. While collecting bids for this service might be expensive, given the potentially lucrative nature of this contract to service providers, the City is in a position to negotiate terms that would enable us to recuperate the money spent putting it out to bid. We owe it to our constituents to give CR&R notice of termination effective January 2012, so that we can collect bids from other service providers to ensure that our residents are getting the most cost-effective service. CR&R will of course be invited to bid along with other service providers. In the event their bid is the most cost-effective and makes the most sense for our residents, the City can certainly choose to maintain CR&R as their service provider. However, moving forward, the 5 year notice of termination and the annual automatic renewal clauses must be eliminated from the trash franchise contract, no matter who the service provider is. Attachment: Integrated Solid Waste Agreement with CR&R and Amendments FIFTH AMENDMENT TO INTEGRATED SOLID WASTE COLLECTION AGREEMENT THIS FIFTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT between the CITY OF SAN JUAN CAPISTRANO ("City") and CR&R INCORPORATED, ("Contractor") is made and entered into, to be effective the 7t" day of September, 2010, as follows: RECITALS WHEREAS,the City and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1995(the"Original Agreement")to provide for the exclusive collection,transportation, recycling,composting, and disposal of all solid waste within the City; and WHEREAS, on February 5, 2002, Solag Disposal transferred and assigned the Original Agreement to Contractor, to which City consented; and WHEREAS, Section 11.A of the Original Agreement authorizes Contractor to automatic annual rate increases based on the Producer's Price Index (PPI) and on adjustments to Tipping Fees charged by the County to become effective January 1 of each year commencing on January 1, 2000; and WHEREAS, in order to align the effective date of adjustments with City's and Contractor's fiscal years, Contractor initially agreed to hold the automatic increases until July I of each year; and WHEREAS, City and Contractor desire to amend the terms of the Agreement to formalize and memorialize Contractor's agreement since the year 2000 to not implement the automatic increases until July I of each year. AMENDMENT NOW, THEREFORE, in consideration of the promises and mutual covenants contained therein, City and Contractor agree to amend Section 11.A of the Original Agreement to implement the automatic rate adjustments and annual increases to be effective July I of each year instead of January I of each year. All other provisions of the Original Agreement and existing Agreement as amended by the Second through Fourth Amendments shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS] 5'" Amendment Int. Solid Waste Collection Agreement Attachment 1 CITY OF SAN ,MAN CAPISTRANO By: J e Tait, City Manager ATTEST: By: ( TU'VI City Clerk AF'PP,OVED AS TO FORM: BY:r�)Iloll �Iavklrtfd( City Attar y CONTRACTOR By: Narne.- Dean A. Ruffridge Title: Senior Vice President '51h Amendment -2- Int. Solid Waste Collection Agreement FOURTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Fourth Amendment to the Integrated . Solid Waste Collection Agreement (this "Agreement") is made and entered into this 21st day of April, 2009, by and between the City of San Juan Capistrano (the "City") and CR&R Incorporated (the "Contractor"); collectively referred to as the "Parties". RECITALS WHEREAS, the City of San Juan Capistrano and Salad Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive Franchise to CR&R Incorporated; and, WHEREAS, a. Second Amendment was entered into on October 1, 2002, establishing new services and rates; and WHEREAS, a Third Amendment was entered into on August 19, 2003 by CR&R Incorporated for purposes to comply with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002, to be alternate fuel powered. Contractor replaced its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule. Contractor received an extension to the Term of the Franchise Agreement, to enable Contractor to depreciate some of the additional costs it incurred as the result of said replacement, without cost increases to the rate payer. WHEREAS, the Third Amendment also identified that space constraints are a barrier to a successful commercial.recycling program, the City and its Contractor desired to offer mixed-waste recycling services as an option; and WHEREAS, CR&R hereby represents that it desires a longer term Agreement in order to facilitate the design and relocation of it's South Orange County solid waste operations center and to develop, permit, and construct a Material Recovery Facility(MRF) to facilitate recycling options for the City and south Orange .County municipalities and thereby depreciate its investment over a longer period of time; and WHEREAS, CR&R and the City of San Juan Capistrano also wish to adjust Franchise Fee payments from the established rate schedules without any rate impact to customers. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms, covenants,and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. DEFINITIONS The following Definitions are hereby added to the Franchise Agreement: E. Universal Waste. Universal Waste shall mean those hazardous wastes identified as universal wastes in Section 66261.9 of Title 22 of the California Code of Regulations, including but not limited to. fluorescent bulbs and tubes; household batteries (e.g. D. AA,-button-type, etc.); non-empty aerosol cans; electronic devices (e.g. televisions, computer monitors, cell phones, radios, video cassette recorders, etc.); and mercury containing devices (e,g. thermometers, thermostats, gauges, etc), and generated by a single family or multi-family residence. "Universal Waste"does not include any waste generated in the course of operating a business concern at a residence or business generated waste. F, Household Sharps Waste. "Household Sharps Waste" shall mean home- generated sharps, as defined in Section 117671 of Title 22 of the California Code of Regulations, including hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications, which are generated by a single family or multifamily residence. "Household Sharps Waste" does not include any waste generated in the course of operating a business concern at a residence, business generated waste, or medical waste not described herein. O. Household Hazardous Waste. "Household Hazardous Waste" shall mean any hazardous waste generated by a single family or multifamily residence, including but not limited to. automobile maintenance and repair products(e.g- motor oil, oil filters, antifreeze; lead-acid batteries, brake fluid, etc.); lawn and garden chemicals (e.g, pesticides, herbicides, fungicides, etc,); cleaning products (e.g, bathroom cleaners, drain cleaners, chlorine bleach, solvents, oven cleaners, etc.); and home improvement supplies (e.g. stains, paints, varnish, paint thinners, chemical strippers, glue, pool chemicals, etc.). "Household Hazardous Waste" does not include any waste generated in the course of operating a business concern at a residence or business generated waste. SECTION 2. Section 5, of the Original Agreement entitled"Term:Extensions"and Section I of the Third Amendment to the Integrated Solid Waste Collection Agreement shall be amended to extend the Term of the Agreement as following: The current Term of this Agreement expires on July 1, 2014. Concurrently to the above, on July 1, 2014 the Term of this Agreement shall automatically extend (without further action by the Parties)to July 1, 2019. On July 1, 2015, and on July 2 1 of each subsequent year unless a Party has provided a notice of nonrenewal as provided below,the Term of the Agreement shall be extended (without further action by the Parties) for an additional year (the "Automatic Renewal") so that the remaining term of the Agreement shall remain at a minimum of five (5) years. Either Party may give the other Party written notice of termination of the Automatic Renewal in December of any year prior to the .July 1 automatic renewal date. Provided that notice is received by either Party of any given year, no further Automatic Renewals shall occur in that year or any further year during the term of this Agreement, and this Agreement shall remain in effect only for its remaining term, taping into account the previous year's Automatic Renewal. In no case shall the remaining term be less than five (5) years. The intent of this paragraph is that if notice of termination of the Automatic Renewal is provided, this Agreement shall expire on July 1 no less than five years later. Nothing in this section shall be construed as limiting City's right to terminate this Agreement for cause pursuant to Section 17 of the original Agreement. SECTION 3.. .Section 6. Services Provided By Contractor. E. Additional Services. (New) (5). Contractor shall provide free disposal and processing from direct delivery to Contractor's south Orange County Materials Recovery Facility from City owned and operated vehicles, or authorized contracted vehicles containing waste generated from within the City limits. As examples, City may deliver green waste or tree trimmings to Contractor's facility from City authorized public works operations, as well as street sweeping debris from City contracted services. Said wastes shall be limited to 800 tons per year at no charge to the City, plus an additional 5% increase per year. Contractor reserves the right to reject loads or charge for processing should current local, state or federal regulations change that may increase fees, rates or eventual uses of these materials. Should use of these materials in the future not be allowed as alternative daily cover at local landfills at the current no charge rate, Contractor and City agree to negotiate in good faith an alternative use and corresponding cost of diversion or reimbursement to Contractor for end costs of these materials. SECTION 4. Section 12 of the Original Agreement entitled, "FRANCHISE FEES" shall be amended to redefine the term "Gross Receipts", below: As used herein"Gross Receipts"shall include all fees, charges and revenues received by Contractor, and its affiliates and subsidiaries, if any, arising from or attributable to operation of this franchise. Beginning with the effective date of this Amendment, Gross Revenues include those revenues received by Contractor attributable to landfill, material processing and composting tipping fees. Gross Receipts does not include revenues derived from the Contractor's sale of materials or the receipt of governmental funding. 3 SECTION 5. EXHIBIT A of the original Agreement shall include the following approved charges-, I Delinquent or Late Fees as prescribed shall be $10.00 per billing period. 2. Collection of Universal Wastes, Household Hazardous Wastes, or Household Sharps Waste shall be a flat $75.00 per collection subject to limitations and procedures agreed upon with the Parties. This fee is only quoted and provided to customers requesting this specialized door-side service. 3. Roll-Off Rate. The noted "Actual Landfill fee" shall include applicable "or other processing facility fee, based upon direction of the City". SECTION 6. EXHIBIT C is revised with the following added items: G. At a time when processing facilities are available, the Contractor shall implement, at no charge to the City, an Organic Waste collection and recycling program for restaurants, resorts, country clubs and golf courses, grocery stores, special events and other appropriate participants. City may authorize phase implementation of the program. -Contractor shall provide participating Customers with Containers or Bins as necessaryforthe segregation and storage of Organic Waste to be recycled. Contractor shall, at its sole expense, prepare, produce, and distribute professional, well formatted educational materials to participants in the designated Organic Material program. Contractor shall record the tons collected, number of routes, productivity, number of stops, number of participating Customers, labor hours, costs and other pertinent data, as may be required by City, in a format approved by City. City may require submission of additional information from Contractor as necessary or desirable in order to evaluate the productivity, cost, benefits and potential diversion opportunity of the program and to report data to state and federal agencies. Organic Waste collected by Contractor shall be delivered to a permitted facility for recycling and composting. Once the necessary data is collected and reviewed, Parties agree to negotiate in good faith applicable rates to be charged to Customers to cover Contractor's costs to implement, operate, and sustain the program aliowing reasonable financial margins approved by both Parties. H. Commencing on October 1, 2009, CONTRACTOR shall provide an optional service to all Single Family and Multi-family Residential customers door-side collection of Universal Waste, Household Hazardous Wastes and Household Sharps Wastes ("Special Wastes"). These Special Wastes shall be collected in separate vehicles from other Solid Waste, and shall be processed at a facility separate from any Solid Waste processing or disposal facility, Special Wastes shall be processed to as to recycle, re-use, and otherwise divert from disposal facilities these materials to the greatest extent practical. To the extent that 4 Special Wastes are disposed of, they shall be disposed of in compliance with all applicable laws and regulations. Residential customers wishing to dispose of Special Wastes shall call a tall-free number to be provided by Contractor to request pickup of these items, and shall otherwise comply with such requirements and procedures for this program as may be agreed upon by City and Contractor. City and Contractor shall mutually agree to a minimum and a maximum threshold of Special Wastes collected per customer collection for the various types of Special Wastes, for the approved rate in Exhibit A. Any resident ordering this service shall be directly responsible for paying the service fee listed in Exhibit A as amended herein and as annually adjusted. There shall be no limit on the number of pickups of these items a residential customer may request. City and Contractor agree to review Special Waste rates and coasts prior to each annual rate adjustment to determine costs and participation of the program. SECTION 7. Section 28. of the Original Agreement entitled "General Provisions" is amended to read as: J. Notices. To Contractor: CR&R Incorporated P.O. Box 1100 San Juan Capistrano, California 92693 Attn: Senior Vice President Telephone: 877-728-0446 Telecopier: 714-890.6347 To Contractor (copy): CR&R Incorporated P.O. Box 125 Stanton Stanton, California 90680 Attn: Dean A. Ruffridge Senior Vice President Telephone: 877.728.0446 SECTION 8. All other terms and conditions of the Original Agreement dated December 17,. 1996, and as amended by the First Amendment dated February 15,2002, the Second Amendment dated October 1, 2002, and the Third Amendment dated August 19. 2003 shall remain in full force and effect. Changes incorporated herein to the original Agreement or any of the Amendments preceding shall become effective on duly 1, 2009, SECTION 9. The invalidity or unenforceability of any provision or covenant contained in this Amendment shall not affect the validity or enforceability of any other provision or covenant herein contained and any such invalid provision or covenant shall be deemed to be severable. 5 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San ,Juan Capistrano CR&R Incorporated Dave Adams, City Manager Dean A. Ruffridge, ni Vice President ATTI"E T ? t Karg rpt Ioraan, city Cte k Approved as to Foran; 1 E Omar San oval, City Attorney 6 Integrated Solid Waste Collection Agreement EXHIBIT E Special Wastes Flammable waste Containerized waste (e.g., a drum, barrel, portable tank, box, pail, etc.) Waste transported in a bulk tanker Liquid waste Sewage sludge Waste from a pollution control process Residue and debris from the cleanup of a spill or release of chemical substances, commercial products or any other special wastes. Contaminated sail, waste, residue, debris, and articles from t he cleanup of a site of facility formerly used for the generation, storage, treatment, recycling, reclamation, or disposal of any other special wastes. Dead animals Waste water Explosive substances Radioactive materials Materials which have been exposed to highly infectious or contagious diseases Hazardous materials (unless contracted) Revised 2009 THIRD AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Third Amendment to the Integrated Solid Waste Collection Agreement (this "Agreement") is made and entered into this Ja day of ' , 2003, by and between the City of San Juan Capistrano (the "City") and CR&R Inc porated (the "Contractor"). RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS, a Second Amendment was entered into on October 1, 2002, establishing new services and rates; and WHEREAS, CR&R Incorporated has represented to the City that, for purposes of complying with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002, to be alternate fuel powered, it intends to replace its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule by July 1, 2004. Contractor has requested an extension to the Term of the Franchise Agreement,to enable Contractor to depreciate some of the additional costs it will incur as the result of said replacement, without cost increases to the rate payer. WHEREAS, it has been identified that space constraints are a barrier to a successful commercial recycling program, the City and its Contractor desire to offer mixed- waste recycling services as an option. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference,and the terms,covenants, and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. Section 5,of the Original Agreement entitles( "Term. Extensions"shall be amended to extend the terra of the Original Agreement for an additional seven years and six months to expire July 1, 2014. 5JC Third Amendment 7/1612003 1 SECTION 2. Section 8 (A)of the Original Agreement entitled,"Minimum Standards for Equipment and Maintenance" shall be amended to add Paragraph (16.), below: (A). (16). Collection Vehicles Contractor warrants that as of July 1, 2004, all residential and commercial collection vehicles servicing the contract area depicted in Exhibit F will be new alternate fuel powered in accordance with the standards of the South Coast Air Quality Management District. Other vehicles including roti-off,support, repair, bin delivery, etc. may continue with fuels as approved by the District, but must be compliant with Title 13, CCR, Section 2021.2, as of December 31, 2004, and may be replaced with alternate fuels vehicles at the discretion of the Contractor. SECTION 3. Section 10 of the Original Agreement entitled, System and Services Review" is amended to add Paragraph (E) below: (E.) Contractor shall provide all information necessary, in a farm acceptable to the City, to submit annual reports to the Air Resources Board's Executive Officer annually to certify compliance with CCR regulations." SECTION 4. Section 28. of the Original Agreement entitled"General Provisions"is amended to read as: J. Notices, To Contractor: CR&R Incorporated P.O. Box 1100 31641 Ortega Highway San Juan Capistrano, California 92693 Attn: Vice President Telephone: 949-728-0446 Tel ecopie r: 949-728-3470 SECTION 6. Revised Exhibits "A" and SBM incorporating commercial mixed-waste processing and commercial automated barrel service options are attached hereto and are made a part of this Third Amendment. SJC Third Amendment 7/1612003 2 SECTION 6. All other terms and conditions of the Original Agreement dated december 17, 1996, and as amended by the First Amendment dated February 16, 2002, and the Second Amendment dated October 1, 2002, shall remain in full farce and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San Juan Capist anti CR & R Incorporated Jo a Dean A. Ruffridge, Shn1pr Vice President ATTEST: M garet R. Monahan, City Clerk proved as to Farm; John S w, City Attorney SJC Third Amendment 7/I V2003 3 SOLID WASTE COLLECTION RATE SCHEDULE City of San Juan Capistrano MaMthly Residential 35 Callan Automated Containers set of 2 $ 11.98 set of 3 $ 13,34 Extra"Crash, Green Waste or 3rd Recycling $ 3.25 67 Gallon Automated Containers set of 2 $ 13.07 set of3 $ 13.53 Extra Trash, Green Waste or 3rd Recycling $ 3.35 90 g lion Ac+tomatoo_CoMainers set of 2 $ 14,16 set of 3 $ 14.62 Extra Trash, Green Waste or 3rd Recycling $ 4.27 Vacancy/Self-Haul $ 6.66 Bulky Items First 2 at No Charge; $14 thereafter Commercial Automated Container Service in lieu of Sin Service (2)67 Gallen Automated Containers $ 18,17 (2)90 Gallon Automated Containers $ 20,34 Extra 67 Gallon Trash $ 14.38 Extra 67 Gallon Recycle $ 6.53 Extra 90 Gallon Trash $ 12.44 Extra 90 Gallon Recycle $ 6.70 MsRosal Recyclina Mixed Waste Processing Commercial Bin Service 3 Yard 1x $ 72.15 $ 50,50 $ 95.34 3 Yard 2x $ `111.00 $ 80.80 $ 157.38 3 Yard 3x $ 144.00 $ 121.20 $ 213.58 3 Yard 4x $ 187.44 $ 161.64 $ 284.21 3 Yard 5x $ 224.50 $ 242.00 $ 34D.46 3 Yard 6x $ 259.44 $ 242.40 $ 399.09 Overflow Charge Per Occurance $ 35.35 $ 35.35 $ 35.35 (1)35 or 67 gallon automated container per unit with Bin Service $ 6.04 4 Yard 1x $ 94.73 $ 65.65 $ 125.65 4 Yard 2x $ 145.72 $ 145.04 $ 207.55 4 Yard 3x $ 189.66 $ 157.56 $ 282.42 4 Yard 4x $ 216.07 $ 210.08 $ 369.75 4 Yard 5x $ 294.66 $ 262,60 $ 449.26 4 Yard 6x $ 341.07 $ 315.92 $ 526.59 Overflow Charge Pei,Cccurance $ 35.35 $ 35.35 $ 35.35 (1)35 or 67 gallon automated Container per unit with Bin Service $ 6.04 Automated Barrel Recycling (with Commercial Bin,Trash Service) 67190 Gallon 1x $ 15.155 67/90 Galion 2x $ 30.30 67/90 Gallon 3x $ 46.45 67190 Gallen 4x $ 60.60 67190 Gallon 5x $ 7535 67190 Gallon 6x $ J0.90 Roll-Off Rates Drop-Off Box $ 136.47 plus landfill fee or processing fee Compactor 146.62 plus landfill fee or processing fee On-Call DOB $ 313.52 On-Call Lowboy $ 366.52 Clean-Up Sin Daily $ 38.12 n1a $ 50.50 Clean-Up Bin Weekly $ 49.56 $ 50.50 $ 65.60 r EXHIBIT "B" SOLID WASTE COLLECTION RATE BREAKDOWN City of San Juan Capistrano Automated residential curbside and roadside collection recycling and disposal located on paved, two-lane road: monthly maximum rates for: Base Rate Disposal Rate Monthly Rate 2-35 gallon refuse/recycling $10.59 $1.39 $11,98 3-35 gallon refuselrecyclinglgreen $10.76 $2.31 $13.07 2-67 gallon refusetrecycling $10.76 $2.31 $13.07 3-67 gallon refuselrecyciinglgreen $10.93 $2.60 $13.53 2-90 gallon refuselrecycling $711.93 $3.23 $14.16 3-90 gallon refuse/recycling/green $11.22 $3.40 $14.62 Extra 35 Trash or green waste $1.86 $1.39 $3.25 Extra 67 Trash or green waste $1.04 $2.31 $3.35 Extra 90 Trash or green waste $1.04 $3.23 $4.27 Extra Recycling 2"d c�7i No Charge (3d same as above) Vacancy/Self Haul $6.66 $6.66 Multi-family, Commercial and Industrial receiving bin service (3 and 4 cubic yard bias) for Disposal or MRF Processing: monthly rate with the following pickups per week: (Note: AB939 Fees are eliminated): Commercial Base Rate + Landfill Tipping Fee orProcessin Fee 3 Yard 1X: $ 54.78 $ 17.37 $ 40.56 3 Yard 2X: $ 76.26 34.74 $ 81.12 3 Yard 3X: $ 91.89 $ 52.11 $121.69 3 Yard 4X: $117.96 $ 69.48 $162.25 3 Yard 5X: $137.65 $ 86.85 $202.81 3 Yard 6X: $155,72 $104.22 $243.37 Overflow Charge $ 35.35 per 4 Yard Ix $ 71.57 $ 23.16 $ 54.08 4 Yarn 2x $ 99.40 $ 46.32 $108.15 4 Yard 3x $120.18 $ 69.48 $162.24 4 Yard 4x $153,43 $ 92.64 $216.32 4 Yard 5x $178.86 $115.80 $270.40 4 Yard 6x $202.11 $138.96 $324.46 Overflow Charge $ 35.35 per Rates Exhibit B 2003 7125/2003 � r Multi-family, Commercial and Industrial receiving Automated Commercial Barrel Service; monthly rate with weekly collection service of one Trash and one Recycling Barrel: Base bate Landfill Charge Monthly Charge 67-gallon set $14.77 $3.40 $18.17 90-gallon set $15.28 $5.06 $20.34 Extra 67 Trash $ 6.98 $3.40 $10.38 Extra 90 Trash $ 6.98 $5.06 $12.04 Extra 67 Recycle $ 6.53 NIA $ 6.53 Extra 90 Recycle $ 6.70 N/A $ 6.70 Rates Exhibit r3 2003 7!25/2003 2 SECOND AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Second Amendment to the Integrated olid Waste Collection Agreement (this 'Agreement")is made and entered into thi day of October, 2002, by and between the City of San Juan Capistrano (the "City") and CR&R/Solag Disposal Incorporated (the "Contractor"), RECITALS WHEREAS, the City of San duan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996 (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting and, disposal of all solid waste within the Clty� and, WHEREAS, a First Amendment was entered into on February 5, 2002 by Solag Disposal Company and the City to transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS,CR&R Incorporated is requesting Rate Establishment for new services. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms covenants and conditions set forth in this Amendment, the Parties hereby agree as follows: Section 1. Exhibit A, "Solidwaste Collection Rate Schedule" Section 2, shall be amended to include "Multi-family, Commercial, and Industrial accounts receiving tin service"for RECYCLING, monthly rate for the following pickups per week: 3 cubic yard burs: 4 cubic yard bins: 1X 50.00 4x 160.00 1X 65.00 4x 208.00 2x 80.00 5x 200.40 2x 104.00 5x 260.00 3x 120.00 6x 240.00 3x 156.00 6x 312.00 * For small quantity generators a 36-gallon automated barrel with weekly collection= $15 per month. ae2qtbon 2. Exhibit A, "Solidwaste Collection Rate Schedule" Section 3, "Miscellaneous Fees,,' small be amended to add: "Overflow charge $35.00 per incident". 1 f Section 3, Entire Agreement. This Amendment embodies the entire understanding between the parities with respect to its subject matter and can be changed only by instrument in writing signed by parties. Section 4. All other terms and conditions of the Original Agreement dated December 17, 1996 and as amended by the First Amendment dated February 15, 2002 shall remain in full force and effect. IN WITLESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. .City of San Juan Capistrano CR & R, Incorporated i Diane Bathgate, M y r ,. David Fahrion President Attest: A J�rg/—aret—M. Monahan, City Clerk Approved as to Form: q. Jahn Sha City Attorney C.kDOUGLAS1AGREEMENSecond.amend.solag.wpd 2 FIRST AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This First Amendment to the Integrated Solid Waste Coliection Agreement (this "Agreement") is made and entered into this 15th day of February, 2000, by and between the City of San .Tuan Capistrano (the"City") and Solag Disposal Incorporated and CR&R Incorporated (the "Contractor"). RECITALS WHEREAS, the City of Sari Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996 (hereinafter"Original Agreement") to provide for the exclusive collection, transportation, recycling, composting and, disposal of all solid waste within the City, and, WHEREAS, Solag Disposal Company is seeking a merger and consolidation with a privately owned CR&R Incorporated based out of Stanton, California; and, WHEREAS, Solag Disposal Company has requesters the City transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS, CR&R Incorporated claims to possess the qualifications, equipment, and administrative wherewithal to provide the services described in the Original Agreement, NC]ldl,t, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms covenants and conditions set forth in this Amendment, the Parties hereby agree as follows: Section 1. A) Section 26, ",indemnification" Subsection (a), "Indemnification of City' shall be amended in its entirety to read as follows: Contractor agrees that it shall protect, defend with counsel approved by City, indemnify, and hold harmless City, its officers, employees, and agents from and against any and all losses, fines, penalties, claims, damages, liabilities, or judgements, including attorneys fees, arising out of or resulting in any way from Contractors`s exercise of its rights and obligations under this franchise agreement; and including any activity or actions engaged in by Contractor in furtherance of the enforcement of the agreement or municipal code provisions relating to trash collection (e.g., but not limited to, the enforcement of the exclusivity provisions of garbage service under the provisions of the Municipal Code and Franchise 1 SD Agreement), unless such claim is due to the sale negligence or willful acts of the City, its officers, employees, agents, or contractors, or from the City's grant of this franchise to Contractor. Subject to the scope of this indemnification and upon demand of the City, made by and through the City Attorney, the contractor shall appear in and defend the City and Its officers, employees, and agents in any claims or actions, whether judicial, administrative, or otherwise arising out of the exercise of the Franchise agreement. In addition, Contractor shall reimburse City for costs it incurs in utilizing City staff time, legal expense, and any ether directly related attributable casts arising out of any claims, lawsuits, judgements, or administrate carders dealing with the Contractor's right to provide exclusive garbage collection service within the San Juan Capistrano jurisdiction. B) Subsection (d), "AB 939 Indemnification" Shall be amended in its entirety to read as follows: Contractor agrees to protect, defend with counsel approved by City, and indemnify City against all fines or penalties imposed by the California Integrated Waste Management Board in the event the waste diversion requirements of AB 939 are not met by City. Excluded from the foregoing indemnification are any fines or penalties the imposition of which results from, or is attributable to, a determination by City to not implement adopted programs or to eliminate, suspend or reduce existing diversion programs. City and Contractor shall reasonably cooperate in good faith with all efforts by each other to meeting City's AB 939 diversion requirements and otherwise to ensure compliance with the Act including, without limitation, requests to the Board pursuant to Public Resources Code Section 41785. Section 2. Section 13, "Faithful Performance " is amended by increasing the required performance security from ten thousand dollars ($10,000)to one hundred thousand dollars ($100,000). Section 3. Section 6 "Services Provided by Contractor" Subsection (B) "Residential" number (3) "Bulky Items" shall be amended to include the following: "in City targeted neighborhoods the contractor shall provide regularly scheduled bulky item pickups on the day of collection. Should the defined neighborhood exceed a 10% billing delinquency, routine bulky item pickups may revert back to on--call service only." 2 Section 4. Exhibit A, "Solidwaste Collection Rate Schedule" Section 3, "Miscellaneous Fees;" shall be amended to add: "Container Replacement $25.09 each." Section 5. Entire Air reement. This Amendment embodies the entire understanding between the parities with reaped to its subject matter and can be changed only by instrument in writing signed by parties. Section B. All ether terms and conditions of the Original Agreement dated December 17, 1996 shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San in Capistrano S©lag Disposal Co., Inc 011e ampbell, Mayor Torn Truilis, President CR & I , ncor ra ed Attest: Cllifford Ronnenberg Chairman & CEO heryl Joh n, dity Clerk Approved as to Form: John S aw, City.Attorney C:1t?t3lSGR�a�AGt �rdF ?�5C3LG.RS 3 SWI 4��lpIlllA nAIIIIIlI11XYn IA�d INTEGRATED SOLID WASTE COLLECTION AGREEMENT BETWEEN EEN THE CITY OF SAN JUAN CAPISTRANO AND SOLAG DISPOSAL COMPANY, INCORPORATED S TABLE of CONTENTS TEMPORARY RINIRO 1. FRANcEM . . . . . . . . . . 2 A. /• • 2 B. Ellfoxt' . • • • • • . a . . . . i . • . • • a r r . E • • • • • • a • Y a . • . . 2 2. r t • ♦ . . - a . f • • 3 A. AB 7J7 t ♦ r ► # • N . w . • w • . f • . • ♦ • • ♦ • « . . • • . . • . • r E • • • r r • J BE Or=BlnMQU . . . . ♦ . • w N . . . R • • • . ♦ ♦ ♦ r a . • . . • • f ♦ 3 C• Cft,Li E ♦ E ♦ . . f • E . • E • . • r . i i a • • . . • . • • • . • . . • r . f 3 D. Cmtrato • a . E . . . . . • . • • • . . . + •3. + a . • r • w • . • • • • • • • • • « r • . 3 4E . . • . E . • . . s i1 • • ♦ ♦ ♦ • ♦ a • • • r • . • . • s • ♦ . . . . . . . . . . 4 As • . • • • . . . • . . • • • • • r w s ♦ . . . . • • • • . . 4 B. Annention Covered by E3jsdng FrancW . . . . . . . . . . . . . . . . . 4 5. 37". EXTENS t i • ♦ i ♦ i # i . . • • a . ♦ . E . • / E / . ♦ E . . r • . . . • • . . . . . • 4 6. S My CFS . . . . . . . . . 4 r r ♦ + . a . A. fiMeral . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 B. • ► ♦ • w • w ♦ . + • ♦ • • • . • . a ♦ . E r a i • i • . . . . . . 4 P • • • . w . w • y • r' ♦ • • i N 4 (3)F(2) Items w ♦ . . . . . . . ♦ . . . . . • . . . 5 • � Items . • . • • . • / . ♦ . . • . . • r f . . . • • • . • . . 5 C. Commercial and Indusidal SeCd . . ♦ • . • • a . . 5 (1)) H99M &J:d . . . . . . . . . . . . . . . . . . . . . . . . . . 6 D. • • • ♦ . . r • • i . . . a • • • . . . . . • . V EE ARR • . . . . . . . . . . . • • # • • r r • e ♦ • • } f • • r a a i� � 6 f/f F• M� . • . . . . . . . • . . ♦ . . • . . . a . . . w . . i . . . . . . i GE . . 7 7�{ryq y Y ♦ • • • • • • i • • • E • ♦ • • • • ! r • } tl r r N r H. pj� -fl i)S • • a ♦ • • . . . . . Y r . • ♦ • tr • • • ♦ ♦ • P N ♦ M f M f f ♦ • • 7 1. Record of •on . R • • • • I 3 K. hT •T M . . . . . . • . • } ♦ } • . . • r . . . • . • . ♦ . « . . . . . . . . • 8 7. 8 8• MIMUM STANDARDS FOR EQLMOM AND MAMENANCE . . . . . . . 8 10. SYSM AND SMVICES HEYMN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 11• �iDI&M-SA33M . . • w . . . . . . . . . • . • . • O • . . . Y 12 A. Coghme oyRAW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 B. dification and Adjustment of • ♦ . . . . • ♦ a . ♦ . • . . . . . i 12 C NQUMALROk blueaws . . . . . . . . . . . « a . » . • ♦ Y . W . . . . . . . . 12 D. Regobdan of Diundm Rate Adj 13 E. . . G. BQ=t Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 +�. Rends . . . . • . • .. • • . • ♦ . . ♦ . • • • • . . • . . • • a . . ♦ • ! • . • • . • 14 Quad uad Cities Unkage ProlLil n- . . . . . . . ♦ . • • ♦ . . . . . . • • . • . • 14 12. FRANUIM . • • • • • . . • . . ♦ . • . • • • • . • • • • • . • . . • • . • . . . . . . • 14 13. EAIDIal PERFOFtMANCE • . a a . • • . • • r ♦ ♦ • . . . . . . ♦ . • . . . w . . . . • ♦ . 15 14. WSURANCE COVERA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 !`i (1) General L b� . . . . . . . . . . . . . . . . . . . . . . . 16 (2) Automotive i y . (3) •_bF mss Cgmn�nsation. . ♦ ♦ • . . . . . r . . . a . • . . 16 B i ' . . . . . . . . . . . . . . . . . . . . . . . . . 16 ♦ y M� C. �• • • • • Y Y • • ♦ . . ♦ . i . . . . ♦ ♦ . . . ! . . . . . • . . . . . 1 L D. . . . . . . . . . . . . . . . . . . 17 E. DthcrImnrancePrnvislnns ♦ . • . . • • . • . . y . . . ♦ . . • • • . . ♦ • . 1/ F. A.cntabilio of Insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 G. Verification of Coverage . . . . . , . . . . . • . . . . . . . . . . F . . ♦ . ♦ 18 H. Snbml& • . . . . . . • . ♦ ♦ . ♦ . . . . • . . . . • . . . . • • ♦ . . . ♦ ♦ 18 15. . . . . . • . • . . • . . • . • . • . . . • . . . . . . . . . 19 16. . . . . . . 19 17. DRMDMON QE DAMAGM OR MMMMTim . . . . . . . . . . . . . . . . . . . 20 18. ADMInSMA=EMARING PROC . 23 19. ' . ♦ . . . . . . . . . . . . . . . • • 0 . . . . . . . . . . 24 20. 25 .1 21• _ ♦ • . . . . s • s • . . . . a a a • s a s • r . • . • • • • r r • • ♦ • i • • s . . » » . . . . 26 22• . . . . . . . • ♦ . 1 N . ♦ • r ♦ a s • • • • e26 A. • e r • s • • • r « . • a ♦ • a . a . s . . . 26 Ba Am1 l R.� S . . a r • r s • . ♦ . • . • r . . . • • r • • w ♦ ♦ . . . • . . . . . 27 . Information C. Ady . . • . a • • . . . . ♦ . . . . • • • . . • • . rr r . . ♦ . 2g • Tonnage Rmel . . . . . • . • • ♦ • . ♦ . w • . . • ♦ . • • • a • • . . • • . . y 29 E. Eail=tG - • • . • • • ♦ ♦ • r . • t . . . . sa . • a . . s • . . • • • 29 PUBLIC ACCESS TO COMR&CT 23• • . r • . • . • r a • • • . . . . r s . . ♦ . . . . • �!'9 A. Qfr Hann • . •1r. . . . . . • . ♦ . • a • • • . r . . . . • • • • . . . . • . y . . "'Li 9 B. Sean-ce 1h., amWainiAi • • s . . . . . . a a . . . . • • . . . . s • • • • • • • • • r 2 C. Gmmment Liaison Person • • . . • . . w . . . . • • . • • • • • • • • • ♦ . 30 24♦ 34 25. 31 26. MMiMNMCATION • . . . Y ♦ . a • • . . • . . . s • s . • . • . . • . . . . . . . . • • • a s . 31 A. ' • • • . . • • . . • . . . . . • • ♦ s • • • . . s ♦ • a a 31 B. • • s j� ♦ . s r r w . r ♦ • . • t • . w w . • • . . • 32 C. H udous Subda= Ind=Wfl o • • • • • • • 32 Do AB 239 IndOMWGrathM . . . . . . . . . . . . . . . . . . . . . . • . . . . • . 32 E. . . . . . . . . . . . . . . . . . . . . . 33 27. ` r . • • • . • • a • s a r ♦ ♦ • 33 28. GENERAL EROUSIONS • s • . ♦ • . . • • . . . . . • . . . • . . • t . . . . . . . . . • • • 33 A. Force Majeum . . . • . . . • . • . . • . . . . . . . . . . . . . . . • . . . • » . 33 B. In dent Cantr • ♦ . ♦ • . . . . . . . . . . . . . . . • . . . . . . . . 34 C. kay...+ent D9Ii3m . . . . . . • . . . • . . . ♦ . . . • • . . . . ♦ . • . . • • • . 34 D. l�ronc"lyD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 SEs. F¢�;"+1 E,of Enta . • . . . . . . . . • . ♦ . . . . . t . . . a • a • . . • . . • . . . 34 g 4 S' Law ru�+q�L3Voum; Ymm . ♦ • . • . • • . s • . . . . . . • r t . . • . • . . x . . 34 H. E�7iQ 2nd Gt •�r� • • . . • . . . r . . . . . . a ♦ . . • • . ♦ . r . . • . . . • 35 Ate• N . . . . . a . . . . . . . • . . » a . • ♦ 35 I. . a r . . a . . • • . . . • . . . . 35 J. NftdM . . . . • . . a . • . . . . . . . . . w a . . • • . . . • . s . . . . . w . . • . 35 K. Savi Clam and Entirety • . . • • • • • • . . . . • . • . . . 36 L. r . • • • . • • t . • • . . . . . ♦ • . . • . s ♦ • • r r ♦ y 36 Eyy1 A . . • . . . . . . . . . • ♦ . . ♦ . • . . a . . 38 lid 1�� EXMIT . • . . . . . . . . . . . . . 39 EXMi lCommeament. AB 939 ,/ ELMRrrD MWtmum ContainerSUldfications . . . . . . • . • . • • • r . , s s e • . • . . . . 42 EI'T E Sial Was . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . 44 EXI IBA'T F E=chi Am . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 iv AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND SOLAG DISPOSAL COMPANY INCORPORATED, FOR THE COLLKCTION, TRANSPORTATION, RECYCLING, COMPOSTING, AND DISPOSAL OF ALL SOLID WASTE AND FOR PROVIDING'TEMPORARY BINIROLLOFF SERVICES This Franchise Agreement("Franchise Agreement") is entered into this Seventeenth day of December, 1996, by and between the City of San Juan Capistrano ("City") and Solag Disposal Company Incorporated, ("Contractor") for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff services, RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California integrated Waste Management Act of 1989 ("AB 939"), has declared-that it is within the public interest to authorize and require local agencies to make adequate provisions for all solid waste within their jurisdictions; and, WHEREAS, pursuant to California Public Resources Cade Section 40059(a)(1), the City Council of the City of San Juan Capistrano("City")has determined that the public health, safety, and well-being require Haat an exclusive franchise be awarded to a qualified enterprise for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bin/rolloff services in residential, commercial, construction, and industrial areas in the City of San Juan Capistrano, and, WMREAS, the City Council of the City of San Juan Capistrano declares its intention of maintaining reasonable rates for the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary bintrolloff services within City limits, and, AREAS,the City has an existing Solid Waste Collection Agreement with Solag Disposal Company Incorporated, hereinafter referred to as the "Original Agreement", and the Contractor has demonstrated its abilities and qualifications to perform such services; and, 1 AREAS, Solag Disposal Company Incorporated has submitted a proposal to the City to modify the Original Agreement and amendments thereto to include expanded and modified services in order to assist City in complying with the requirements of Assembly ,801 (AB) 939 and its amendment bills; and, WHEREAS, City and Contractor desire to leave no doubts as to their respective roles, and that by entering into this Agreement, City is not thereby becoming a "generator" or an "arranger" as those terms are used in CERCLA § 107(a)(3), and that it is Coaatmaor, not City, which is "arranging for" the collection from residents and others in the City of San Juan.Capistrano, the transport for disposal, composting of green waste and recycling of recyclables and municipal solid waste which may contain hazardous substances. NOW, THEREFORE, The Parties hereto agree as follows: 1. This Franchise Agreeinent grants an exclusive franchise as provided herein and pursuant to Chapter 3 of Title 6 of the San.Tuan Capistrano Municipal Code (hereinafter, "Chapter 3") and California Public Resources Code Section 40059(a)(1) to Solag Disposal Company .Incorporated for the collection, transportation, recycling, composting, and E disposal of all solid waste and for providing temporary bin/rolloff in commercial, residential, construction, and industrial areas within the City of San Juan Capistrano. The exclusivity of this Franchise Agreement is subject to any of the terms of any pre-existing solid waste or temporary bin/rolloff service licenses, permits, or Resolutions previously granted by the County of Orange or the City of San.Juan Capistrano, A. NDb ation. Existing Solid waste haulers providing temporary bias/rolloff services within the franchise area (ether than Contractor), were notified,by City on or about November 1, 1993, by certified snail that Contractor is gr=anted exclusive rights to any and all temporary bWrolloff rental and collection services within franchise area effective five (S) years from the notice date. B. Contractor shall be responsible for enforcing the exclusivity of this franchise agreement. 2 2. PYJ PIONS Whenever any term used in this Franchise Agreement has been defined by Chapter 3 of the San Juan Capistrano Municipal Code or Division 30, Past 1, Chapter 2 of the California Public Resources Code, the definitions in the Municipal Code or Public Resources Code shall apply unless the term is otherwise defined in this Agreement. A. AH 23 . "AB 939"shall mean the California Integrated Waste Management Act of 1989, as it may be amended from time to time. B. . "Bin/Rolloffi" shall mean those containers provided by Contractor for residential, commercial, industrial, and construction, uses. These bins are usually of two types: (1) Bins (usually 3 cubic yards in size) which are picked up by refuse trucks by means of front loading apparatus; and(ii) Rolloff Bins (usually 40 cubic yards in size) 'which are picked up by trucks using rear loading winches onto rails. "Temporary" shall mean any service provided on a 24 hour, daily, weekly, or monthly basis. C. OMI& _ "City Limits" means the boundaries of the City together with AI amendments and changes thereto, which boundaries are shown by maps incorporated herein by reference and which are on file in the office of the City Clerk of the City San Juan Capistrano as they exist by the date of this agreement. D. Contractor. "Contractor"means Solag Disposal Company Incorporated the entity granted the Franchise pursuant to this Franchise Agreement. 3. ACCMANCE: WADER Contractor agrees to be bound by and comply with all the requirements of Chapter 3 and this Franchise Agreement. Contractor waives Contractor's right to challenge the terms of this Franchise Agreement and Chapter 3 under Federal, State or local law, or administrative regulation, as such laws and regulations exist as of the date of execution of this Agreement. Contractor waives any right or claim to serve the City or any part of the City under any prior grant of franchise, contract, license, or permit issued or granted by any governmental entity including any right under Section 49520 of the Public Resources Code. Additionally, by the execution of this agreement, Solag Disposal Company, Inc. expressly waives any and all rights and cost reimbursements to Solag Disposal Company, Inc. for any existing recycling programs previously approved by City. 3 4. �+RANCIiISE A. FranchiK Area De,fiwd. The Franchise Area granted by this Franchise Agreement shall be all residential, commercial, industrial, and construction premises bounded by the city limits as they exist by the date of this agreement and as indicated on the map in Exhibit "F". As provided below, the Franchise Area may be changed by annexation. B. Anhexation__Covered by Existing FFranchis . Territory annexed to the City that is covered by an existing solid waste or construction debris permit, license, agreement, or franchise granted by another public entity may continue to be served by the same contractor for the balance of the term of its permit, license, agreement, or franchise, subject to the provisions of Chapter 3, provisions of the Public Resource Code Sec.49522, and the provisions of this Franchise Agreement, S. ' ERM:EX E' IONS The term of dais Agreement shall commence January 1, 1997 and be in full force and effect for a period of ten (10) years expiring January 1, 2007. 6. SERUCESTROVIDED By 02NIRACTOR A. General. Contractor shall furnish all labor, necessary material and equipment to provide the collection, transportation, recycling, composting, and disposal of all solid waste and for providing temporary binlrolloff services in accordance with the terms of this Franchise Agreement and Chapter 3. Contractor may commingle loads with other jurisdictions, however, in order to comply with the provisions of the Act and to accurately account For and report the amount of Solid Waste collected within the City and disposed pursuant to this Agreement, Contractor shall reconcile with the landfill operator on a quarterly basis the amount of waste generated by City accounts. B. Reside All solid waste, compo stables and recyclables shall be collected between the hours of 7.00 a.m.. and 7:40 p.m., Monday through Friday. (1). Autam,=A Co,uolwr Service. Once each week, Contractor shall collect the solid waste, compostables, and recyclables (except bulky items and household hazardous waste) which have been placed, kept, or accumulated in containers (as specified in "Exhibit D") at single family residences, whether 4 attached or detached, and placed at curbside or other designated pick-up locations adjacent to public or private roadways or alleys prior to Contractor's normal weekly collection time. Contractor shall, whenever possible, place container on top of curb (sidewalk) upon completing collection, to facilitate more efficient street sweeping. Standard residential service shall include providing, maintaining and replacing automated service containers which meet the minimum requirements as set out in Exhibit "W, Homeowner is responsible for any negligent damage or lost/stolen containers. If the number of reported negligently damage/lost/stolen containers exceeds 2% of the serviced accounts the City has the option to re- negotiate which party is responsible replacement. Contractor may negotiate special pickup procedures, above and beyond the normal services described above, with customers for an additional fee over the amount provided in Exhibit "A" subject to City approval. (2) 3___Qft Yard Bin Service. Not less often than once per Meek, and more frequently if required to handle the waste stream of the premises where the bins are located, Contractor shall collect the solid waste (including bulky items which have been placed in a closed bin), compostables, and recyclable$ (except household hazardous waste) which have been placed out for collection in solid waste or recycling bins. (3). Buft Items. Contractor shall provide bulky item collection services on an cin-call basis. Bulky items shall include, but not be limited to, refrigerators, mattresses, rugs, water heaters and other items which can be handled by a two man crew and would not otherwise be accommodated within the automated collection container furnished by Contractor. There shall be a limit of two on call pickups per year at no extra cost. There shall be a limitation of four bulky items or equivalent of six (6) 33 gallon trash bags per on-call pick-up. On-call service shall be responded to within a reasonable time but no more than seven (7) days or the next scheduled collection day excluding Saturdays. Contractor shall produce, keep current, and provide public information specifically outlining the bulky item pick- up service. C, ComraercW wd Indmiria Servic . All solid waste, comgostables, and recyclables shall be collected between the hours of 6.00 a.m. and 7:00 p.m., Monday through Saturday. 5 (1) Wokb Service. Contractor shall furbish the size containers as called out in the rate schedule and service there not less often than once per week, and more frequently if rewired to handle the waste stream of the premises where the bins are located, Contractor shall collect the solid waste, compostables, and recyclables which have been placed for collection in solid waste or recycling bias. (2) Err,A�, Contractor shall conduct a waste audit of all commercial accounts, and multi-family units utilizing commercial service, to determine their recyclable content, prior to services being rendered. The process used to conduct this waste audit shall be shared with the City of San Juan Capistrano, to ensure permit compliance and acceptance. Those accounts Haat contain a significant recyclable content and have received prior approval by the City, shall be processed through a City.-designated materials recovery facility. Customers achieving this content, or higher, shall have their material transferred to a material recovery facility. Those accounts that do not satisfy the coritent lc�el, shall have their waste stream disposed of at the landfill. D. T oraryWRo 1l oEf,Services. Contractor shall provide temporary bin/rolloff services using rates reflected in Exhibit "A." Contractor shall deliver and pick- up/service rolloff containers within 24 hours of call for services excepting Sundays and Holidays. E. Additional Services. The following additional services are hereby provided to City, free of charge, by Contractor: (1) Contractor shall clean out any overflowing bins or enclosures within twenty-four (24) hours of notification by City, free of charge. Contractor shall work with the City Manager or designee in identifying continual problems in customer bins or enclosures. Contractor shall create a specific work order in response to each call received from City departments and shall provide City with a annual "Summary of clean out Item Work Orders Completed." Said summary shall include, but not be limited to the date, time, hours spent, and type of items collected. (2) Contractor shall pickup all Christmas trees on the first two regularly scheduled pickup clays after New'Fear's Day. The trees shall be diverted frorn the landfall if possible, either by deposit at a composting facility or grinding operation. 6 (3) Contractor shall provide containers refuse collection and recycling to all City public buildings, bus stops and public trash receptacles along all public right of gays at no charge to City. (4) Contractor will assist and cooperate with City in organizing clean-up after all City sponsored events and haul all solid waste, free of charge. Contractor will haul all City organized clean-up loads to the landfill or Material Recovery Facility, maximum of 20 (36 cu. yd. roll-off) per calendar year. City shall pay the landfill tipping fees. F. $esYg i ' Program. The Contractor shall provide recycling services in accordance with the terms set forth in Exhibit "C", and the rates set forth in Mbit "A". G. Collection an Holidays. Should any regularly scheduled collection,day fall on or after a legal holiday (view 'Year's Day, Memorial Day, Forth of July, Labor Day, Thanksgiving Day, or Christmas Day) or on any other holiday on which County landfills are closed, collection day shall be made one day later during that pickup weep and the regular pickup schedule shall be resumed the following week. A, pickup week shall be defined as Monday through. Saturday. H. Misled PiPi -urns, In case of a. mussed Erick-up called in by a resident, Contractor shall collect the materials from such resident no later than the next working day following the date of the call. Records of the addresses of all missed pickups shall be maintained by Contractor and reported to the City. If Contractor can demonstrate a pattern of ongoing late set-guts by a resident, those missed pickups shall not be counted as missed pickups. I, Reord of N=oLmdun. When any refuse material deposited for collection is not collected by Contractor, he shall leave a tag at least 2" by 6" in size;, indicating the reason for refusal to collect the refuse. This information shall either be in writing or by means of a check system. The tag shall provide the Contractor's business name and local telephone number and shall be securely fastened to the container of the article refused. (1.) If the reason for such noncollection is not corrected within seven days from the date of such tagging, Contractor shall advise the City, giving the date of notice, street address and reason for noncollection. (2) Contractor shall maintain at his place of business, a record of all such taggings. Such,record shall contain the date of such notice, street address, 7 reason for noncolle:ction and disposition of each.rase. Such notice shall be kept so Haat it may be conveniently inspected by representatives of the City upon.request. J. Sc vein Prev�ntioI)i____ cou . Contractor will tale necessary steps which may be appropriate and effective to discourage scavenging of recyclable materials from the residential and commercial waste steams. K. Special Wastes. Contractor may, but is not required to, provide such collection, transportation, and disposal services for special wastes as defined by Exhibit "E". Contractor may provide such services for special wastes if contracted to do so by customers under separate written contracts negotiated between Contractor and the customer generating such special wastes. 7. NODEICA—TIONS When solid waste is not collected from any solid waste customer, Contractor shall notify its customer in writing why the collection was not made. Contractor has represented to City that Contractor will carry out its duties to notify all agencies with jurisdiction, including the California Department of Toxic Substances Control and Local Emergency Response Providers, and, if appropriate, the National Response Center, of reportable quantities of hazardous waste, found or observed in solid waste anywhere within the City, including on, in under or about City property, including streets, easements, rights of way and City waste containers. In addition to other required notifications, if Contractor observes any substances which it or its employees reasonably believe or suspect to contain hazardous wastes unlawfully disposed of or released on City property, including streets, storm drains, or public rights of way, Contractor also will immediately notify the City Manager, or the City Manager's designee. 8. MUMILM STAMIARDAID9 A. Contractor shall provide an adequate number of vehicles for all regular and special collection services. Contractor shall provide commercial and industrial subscribers with appropriate commercial bins, and may supply residential subscribers with three (3) cubic yard bins as requested. All equipment shall be maintained as follows; 8 (1) Contractor shall remove graffiti from containers provided pursuant to this agreement, within 24 hours of notice. Removal of graf=fiti shall be the sole responsibility of contractor,utilizing available civil processes for prosecution of the individuals responsible for graffiti. Solag may charge user according to rate schedule in Exhibit "A" for graffiti removal; and, (2) Each vehicle used by Contractor shall at all times comply with all applicable provisions of the California Vehicle Code, and shall be inspected, at least once each year, using the "Critical Item Inspection" criteria as approved by the California Highway Patrol. The results of said inspections shall be made available to the City Manager upon request; and, (3) All vehicles used for the collection or transport of solid waste shall be equipped with devices capable of covering every open section of the vehicle in which solid waste may be placed, and while operating upon the public rights of way, shall be coverer] so as to prevent any solid waste from falling or being blown or otherwise dislodged from the vehicle; and, (4) All vehicles used for the collection or transport of solid waste shall be continuously maintained in a watertight condition per industry standards; and, (5) All vehicles shall be painted periodically, which shall include all necessary body work, so that such vehicles do not become unsightly, as determined by the City Manager; and, (6) The name, and telephone number of Contractor shall be printed or painted in letters not less than three inches in height on bath sides of each vehicle or conveyance and at the City's option the City shall require Contractor to display advertisements on collection vehicles to promote recycling and source .reduction programs; and, (7) Each vehicle used for the collection or transport of solid waste shall be maintained in a clean and sanitary condition both inside and out; and, (S) All vehicles used for the collection or transport of solid waste shall carry a broom, shovel, and operable fire extinguisher. Additionally, residential refuse trucks shall be equipped with a communication device in the form of an 2-way radio upon request of the City; and, 9 (9) All residential automated containers supplied to subscribers shall be maintained in good repair and maintained in a watertight condition. (10) All commercial bins and containers provided shall be kept in good repair, freshly painted and identified with Contractor's name and phone number. The three cubic yard bias provided shall be steel bins with plastic lids and. steam cleaned at least once a year free of charge; and, (11) Contractor has agreed to name the specific organization that shall provide all of the services under this Franchise Agreement as "Sp1a DjA2Q-UJ Co=anv_Incornorated." This name shall be used for all correspondence, billing statements, directory listings, references, signs, vehicle identification, etc. The wards "Owned and Operated by Solag Disposal Company Incorporated" is authorized; and, (12) All solid waste collection vehicles shall be washed at least once every seven (7)calendar days. Packer bodies shall be maintained in a liquid tight COnditl(7ri; and, 13) "Solag Disposal Company Incorporated", a local or tall free telephone number, and vehicle number shall be visibly displayed on all vehicles in letters and figures as approve by City; and, (14) All vehicles, high visibility bins, and rolloffs shall display the name and phone number of contractor. The small inscription area on the top of all of the residential containers shall be labeled as follows: the black refuse container - "REFIISE QNL Y," the blue or tan recycling container - "RECY-C.`.LABL ONLY," and the green yardwastes container - "YABD WASIE QNLY;" and, (15) All equipment used is subject to the discretion of the City Manager. Should the City Manager, at any time, give notification to contractor that any vehicle does not comply with standards of this section, said equipment shall be removed from service by contract and shall not service the City until inspected and approved in writing by the City manager. 9. ' A. The City has the right to require that each of Contractor's collection employees wear a clean uniform baring the company's name, 10 B. Each employee shall, at all times, carry a valid operator's license for the type of vehicle he is driving. Contractor shall provide its employees, contractors, and subcontractors with identification for all individuals who may make personal contact with residents of the City. C. No employee shall continue to be employed on any work under this contract who is determined by the City to be intemperate, discourteous, disorderly, inefficient or otherwise objectionable. D. _ The Contractor shall provide operating and safety training for all personnel that meet minimum OSHA standards. 10. A. To provide for technological, economic, and .regulatory changes in waste stream collection and recycling, to facilitate renewal proceduxes., to promote competition in the refuse, composting, and recycling industry, and to achieve a continuing, advanced refuse collection, and recycling system, a system and services review procedures is established as follows: Sixty (64) days after receiving notice from the City, Contractor shall submit a report to City indicating the following: (l) All refuse collection, composting, and recycling services reported in refuse collection, composting, and recycling industry trade journals that are being commonly provided on an operational basis, excluding tests and demonstrations, to communities in the United States with comparable populations, that are not provided to City; and, (2) Changes recommended to improve the City's ability to meet the goals of AB 939 and to keep City clean and free of debris; and, (3) Any specific plans for provision of such new services by the Contractor, or a justification indicating why Contractor believes that such services are not feasible for the Franchise Area. & Topics for discussion and review at the system and services review hearing shall .include, but shall not be limited to, services provided, feasibility of providing new services, app3ication of new technologies, customer complaints, rights of privacy, 11 amendments to the Franchise Agreement, developments in the law, new initiatives for meeting or exceeding AB 939s goals and regulatory constraints. C. City and the Contractor may each select additional topics for discussion at any systems and services review hearing. D Not later than sixty(60)days after the conclusion of each system and service review hearing, City shad issue a report. The report shall include a listing of any refuse collection, composting and recycling services not then being provided to City that are considered technically and economically feasible by City. City may require Contractor to provide such services within a reasonable time, for reasonable rates and compensation. 11. CDNMSAIU A. Qpntm=,Ras. Contractor shall provide the services described in this Franchise Agreement in accordance with the rates fixed by City from time to time all as described and set forth in Exhibit "A", S&cA& Qf Rates." The new rates contained in Exhibit "A", shall be subject to adjustment in accordance with the prescribed formula, as set forth in Exhibit B beginning January 1, 1997, based on changes in the cost index for twelve month period(January 1996 through January 1997). Every year thereafter, the PPI index for the calendar year from November 1 through October 31 shall be used to compute the manual increase. The annual increase shall be effective January I of each year. Contractor agrees to defer any cost of living adjustments, on commercial accounts only, until January 1, 2000. B. MWification aW Adjustment of Ram, Except as provided in Exhibit "A„ the rates set forth on Exhibit "A" shall remain in effect until adjusted by City by a Resolution of the City Council. As for extraordinary costs, in addition to, and not in lieu of, the annual PPI increase and landfill tipping fee adjustment, as described in Exhibit "B" Contractor shall also be entitled to rate increases in an amount equal to the Contractors extraordinary increases in its costs of collection. Such extraordinary cost increases shall be subject to City Council approval. Such extraordinary increases in its cast of collection shall include, by way of example and not by way of limitation: (1) a change in the location of the landfill or other permitted disposal sites to which the contractor or is required to transport solid waste collected hereunder, (2)changes in the local, state or federal laws that affect an aspect of this agreement. C. Notice of. Rate_Increases: The Contractor shall provide the City and customers, at least thirty (30) days in advance of the beginning of a balling period, written 12 notice of the implementation of changes in any of its proposed rates and charges which are not subject to rate adjustments contained in Exhibit "B." The notice shall include a statement of the reasons for the rate increase. D. ResolubQn Qf DiU=garding R=Adjustments: Any dispute regarding the annual "CPI" and Landfill Tipping Fee adjustment, or the computation thereof, described in Exhibit "13," or any other dispute regarding Contractor's reimbursement for fees, special services, or extraordinary costs described in Exhibit "B," shall be decided by the City Manager, or referred by the Manager to the City Council, or to a hearing officer as provided in Section 13 below. The rates in effect at the time such dispute is submitted to the City Manager, City Council, or a hearing officer shall retrain in effect pending resolution of such dispute. The effective date of any dispute resolution, whether retroactive or prospective, shall reasonably be determined by the City Manager, City Council, or the hearing officer, as appropriate. E. ming mdhUmmj• Contractor may bill all customers not subject to a parcel charge or beyond the scope of the parcel charge, discussed below, for all services, whether regular or special. Contractor shall provide itemized bilis, distinctly showing charges for all classifications of services, including the charges for late payment. The Contractor shall not designate that portion of a customer's bill attributable to the franchise fee as a separate item on customers' bills. Billings may be made monthly in advance for commercial and all bin service customers, and may be made three (3) months in advance for residential customers. If the City should elect to bill residents for standard refuse collection and recycling through a parcel charge, the Contractor shall be paid in monthly instalhnents for the premises.served. Retroactive adjustments shall be made on the basis of addresses of premises added and the date added. Premises ordered after the first of the month shall be charged on a prorated thirty (30)daylmonthly basis. In no event, shall City be required to use its general fund to support the parcel charge system. The City reserves the right exclusively handle the refuse and recycling billings but not limited to performing billing service in-house. F. Delinquent Accounts_ The Contractor shall continue service as set forth in this franchise agreement. Persons who have not remitted required payments within 30 days after the date of Billings shall be notified on forms approved by City. Said forms shall contain a statement that services may be discontinued 15 days from the date of notice if payment is not made before that tune. A delinquent fee may be assessed accounts that are late according to Exhibit "A." A redelivery or reinstatement fee may be assessed to accounts that are reactivated by having to finish collection containers. Upon payment of 13 the delinquent, redelivery, or reinstatement fees, if applicable Contractor shall resume collection on the next regularly scheduled collection day. G. &f . Contractor shall refund to each customer, on a pro rata basis, any advance service payments made by such customer for service not provided when service is discontinued by the customer. A. $1.50 refund fee may be assessed for processing refunds according to Exhibit "A." H. Quad Cities in e EmisiC rty Notwithstanding any provision of this Agreement to the contrary, if Solag's rate for a solid waste service to be provided to service recipients in the City of San Juan Capistrano (including residential and/or commercial), would be higher than a newly modified, amended or adopted rate for the � same or substantially similar solid waste service in either the City of Sari Clemente, Laguna Niguel or Dana Paint, then the Otherwise applicable rate provisions of this Agreement shall not be in effect. Instead, Solag's rate for services to be provided to service recipients (including residential and/or commercial services) within the City of San Juan Capistrano shall be the lowest rate charged for the provision of the same or substantially similar solid waste service provided to service recipients in either the City of San Clemente, the City of Laguna Niguel or the City of Dana Point. Thirty days prior to any proposed rate reduction for any solid waste services in the City of San Clemente, Laguna Niguel or Dana Paint, Solag shall notify the City of San Juan Capistrano of these proposed tate changes in the other city or cities. In the event that these rates are lower than those in Exhibit A (as this Exhibit is modified from time to time pursuant to the Agreement), Exhibit A shall be deemed modified to reflect the lower rates. Such adjusted rate shall be the new base rate for this Agreement on which any future rate increases are calculated. 12, ERAS `IM_� In consideration for the exclusive right to collect and dispose of solid waste within the corporate boundaries of City, Contractor shall pay to City, in lawful money of the United States, a franchise fee equal to five percent (5%) of the gross annual receipts of Contractor arising out of the use, operation or possession of this franchise. Effective Novernbcr 1, 1998 franchise fees for all on-call bin service shall be due and payable according to the schedule below. Said franchise fee collected shall be due to City in monthly payments, which shall be due on or before the fifteenth (15th) day of each following month. The amount of each such payment shall be equal to five percent(5 k) of the previous months` gross receipts. 14 As used herein, "Gross Receipts" shall include all fees, charged and revenues received. by Contractor, and its affiliates and subsidiaries, if any, arising from or attributable to operation of this franchise less landfill and composting facility tipping fees. A. In the event Contractor fails to make any of the payments provided for in this franchise on or before the dates due, Contractor shall pay as additional consideration both of the following amount.- (1) mount:(1) A sum of money equal to fine percent(5%)of the amount due. This amount is required in order to defray those additional expenses and casts incurred by City by reason of the delinquent payment including, but not limited to, the cost of administering, accounting and collecting said delinquent payment and the cast to city of postponing services and projects necessitated by the delay in receiving the revenue; and (2) A sum of money equal to two percent (2%) of the amount due per month as interest and for loss of use of the money due. 13. FAMMYL PERFORMANCE Concurrent with the execution of this Agreement, contractor shall deposit with the City Manager a cash deposit, irrevocable letter of credit, or other such document evidencing an irrevocable cash deposit payable to city, in the amount of$14,000, in a form approved by the City Attorney, guaranteeing contractor's faithful performance of the terms of this agreement. Such cash deposit, letter of credit or other such document shall be maintained in effect throughout the duration of this Agreement. 14. Contractor shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Contractor, or Contractor's agents, representative, employees or subcontractors. A. Minum scone of Imurance. Coverage shall be at least as broad as: 15 (1) Viral Liability. Insurance Services Office farm munber GL 0002 (Ed. 1173) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Service Office Commercial General Liability coverage ("oecurrence" forni CG 0001). (2) Amtomofiye LiabiliV, Insurance Services Office form number CA. 0001 (Ed. 1178)covering Automobile Liability, cadge I "any auto" and endorsement CA 0025. (3) or&r's Coans 'cin„ 'Workers' Compensation insurance as required by the State of California, and Employers' Liability insurance. B. Contractor shall obtain and maintain in full force and effect throughout the entire term of this Franchise Agreement a Broad Form Comprehensive General Liability (occurrence)policy with a minimum limit of Five Million Dollars ($5,000,000.00) aggregate and Two Million Dollars ($2,000,000.00) per occurrence for bodily injury and property damage, with any self-insured retention not exceeding $200,000.00 per occurrence. Said insurance shall protect Contractor and City from any claim for damages for bodily injury, including accidental death, as well as from any claim for property damage which may arise from operations performed pursuant to this Franchise Agreement, whether such operations be by Contractor itself, or by its agents, employees, and/or Subcontractors. Copies of the policies or endorsements evidencing the above required insurance coverage shall be fled with the City Clem. All of the following endorsements are required to be made a part of the insurance policies required by this Section: (1) "The City, its employees, agents, Contractors, and officers, are hereby added as insured as respects liability arising out of activities performed by or on behalf of Contractor." (2) "This policy shall be considered primary insurance as respects any other valid and collectible insurance the City may possess including any self-insured retention the City may have, and any other insurance the City does possess shall be considered excess insurance and shall not contribute with it." (3) "This insurance shall act for each insured, as though .a separate policy had been written for each. This, however, shall not act to increase the limit of liability of the insuring company." 16 (3) "This insurance shall act for each insured, as though a separate policy had been written for each. This, however, shall not act to increase the limit of liability of the insuring company." (4) "Thirty (30) days prier written notice by certified trail, return receipt requested, shall be given to the City in the event of suspension., cancellation, reduction in coverage or in limits, or non--renewal of this policy for whatever reason. Such notice shall be sent to the City Clerk." (S) The limits of such insurance coverage, and companies, shall be subject to review and approval by the City Manager every year and, may be increased at that time and match the coverage provided by the City's own liability insurance policy. The City shall be included as a named insured on all policies and endorsements. C. Modification. The insurance requirements provided herein may be modified or waived in writing by the City Council upon the request of Contractor, provided the City Council determines such modification or waiver is in the best interests of City considering all relevant factors, including the fact that the parent of Contractor may be self-insured up to a certain acceptable amount. D, Any deductibles or self-insured retention must be declared to and approved by City, At the option of City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects City, its officers, officials, employees and volunteers; or contractor shall procure a brand guaranteeing payment of losses and related investigations, claim administration and defense expenses. E. Other Insurance Provisions., The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) City, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied or used by Contractor; or automobiles owned, leased, hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees or volunteers. 17 (2) Contractor's insurance coverage shall be primary insurance as respects City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be excess of Contractor's insurance and shall not contribute with it. (3) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officers, officials, employees or volunteers. (4) Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (5) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, or reduced m' coverage or in limits except after thirty (30)days' prior to written notice by certified mail, has been given to City. E. Acceptabili;__of f Jn2grx Insurance coverage is to be obtained from California-admitted insurers with the Best's rating of no less than ANTI. C. Vcrifacatin of Coverage. Contractor shall furnish City with certificates of insurance and original endorsements effecting coverage required by this section. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by City. All certificates, letters and endorsements are to be received and approved by City before work commences. City reserves the right to require complete, certified copies of all required insurance policies, at any time. H. beontract , Contractor shall include any subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. 18 15. A. The franchise granted by this Franchise Agreement shalt not be transferred, sold, hypothecated, sublet, or assigned, nor shall any of the rights or privileges herein be hypothecated, leased, assigned, sold, or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right, interest, or property therein, pass to or vest in any person, except the Contractor, either by act of the Contractor or by operation of lav, without the prior written consent of the City expressed by Resolution. Any attempt by Contractor to assign this franchise without the consent of City shall be void. B. The City may impose conditions of approval on a Franchise Agreement transfer, including, but not limited to, conditions requiring acceptance of amendments to Chapter 3 and this Franchise Agreement. The City shall not be unreasonable in withholding the transfer. C. City consent is required for any change in.control of Contractor. "Change in control" shall mean any sale, transfer, or acquisition of Contractor. Contractor is a corporation, and any acquisition of more than ten percent (10%) of Contractor's voting stock by a person, or group of personas acting in concert, who already owns less than 50% of the voting stock, shall be deemed a change in control. D. Any change in control of the Contractor occurring without prier City approval shall constitute a material breach of this Franchise Agreement. 16. FRANCHISE TRANSM: , a A. Any application for a franchise transfdr shall be made in a manner prescribed by the City Manager. The application shall include a transfer fee in an amount to be set by City by a resolution of the Council, to cover the cost of all direct and indirect administrative expenses including consultants and attorneys, necessary to adequately analyze the application and to reimburse City for all direct and indirect expenses. In addition, the Contractor shall reimburse the City for all costs not covered by the transfer fee. Bills shall be supported_with evidence of the expense or cost incurred. The applicant shall pay such Dills within thirty (30) days of receipt. B. 'These franchise transfer fees are over and above any franchise fees specified in this Franchise Agreement. 19 17. DROSEMON OF-DAMAGES OR IEKMM A. if the City .Manager determines that the Contractor's performance pursuant to this Franchise Agreement has not been in conformity with reasonable industry standards which are obtained in similar cities is Southern California, the provisions of this Franchise Agreement, the requirements of Chapter 3, the requirements of the California Integrated Waste Management Board, including, but not limited to, requirements for source reduction and recycling (as to the waste stream subject to this Franchise Agreement) or any ether applicable Federal, State, or local law or regulation, including but not limited to the laws governing transfer, storage, or disposal of special wastes, the City Manager may advise Contractor in writing of such deficiencies, The Manager may, in such ATitten instrument, set a reasonable time within which correction of all such deficiencies is to be made. Unless otherwise specified, a reasonable time for correction shall be sixty (60) days from the receipt by the Contractor of such written notice. The City Manager shalt review the Contractor's response and refer the matter to the City Council or decide the matter and notify the Contractor of that decision, in writing. A decision or order of the City Manager shall be final and binding on Contractor if the Contractor fails to file a "Notice of Appeal" with the City Manager within 30 days of receipt of the City Manager's decision. Within ten working clays of receipt of a Notice of Appeal, the City Manager shall either refer the appeal to the City Council for proceedings in accordance with Section 17 C and D, below, or refer the matter to a hearing officer as provided in Section 18, below_ B. The City Council, in such case, may set the matter for hearing. The City Council shall give Contractor, and any other person requesting the same, fourteen (14) days written notice of the time and place of the hearing. At the hearing, the City Council shall consider the report of the City Manager indicating the deficiencies, and shall give the Contractor, or its representatives and any ether interested person., a reasonable opportwaity to be heard. C. Based on the evidence presented at the public hearing, the Council shall determine by Resolution whether the Franchise Agreement should be terminated or liquidated damages imposed. if, based upon the record, the City Council determines that the pearformance of Contractor is in breach of any material term of this Franchise Agreement or any material provision of any applicable Federal, State, or local statute or regulation, the City Council, in the exercise of its sole discretion, may terminate forthwith, the Franchise Agreement or impose liquidated damages, as defined below. The decision of the City Council shall be final and conclusive, subject to referral of the matter for an 20 administrative hearing pursuant to Section 18, below. Contractor's performance under its franchise is not excused during the period of time prior to the City Council's final determination as to whether such performance is deficient. ID. This right of termination or to impose liquidated damages is in addition to any other rights of City upon a failure of Contractor to perforin its obligations tinder this Franchise Agreement. E. The City farther reserves the right to terminate Contractor's franchise or impose liquidated damages in the event of any of the following: (1) If the Contractor becomes insolvent, unable, or unwilling to pay its debts, or upon listing of an order for relief in favor of Contractor in a bankruptcy proceeding. (2) If the Contractor fails to provide or maintain in full force and effect, the workers' compensation, liability, indemnification coverage, or cash bored as required by the Franchise Agreement. (3) If the Contractor willfully violates any orders or rulings of any regulatory body having,jurisdiction over the Contractor relative to this Franchise Agreement, provided that the Contractor may contest any such. orders or rulings by appropriate proceedings conducted in goad faith., in which-case no breach of the franchise shall be deemed to have occurred. (4) If the Contractor ceases to provide collection as required under this Franchise Agreement over all or a substantial portion of its Franchise Area for a period of seven (7) flays or more, for any reason within the control of the Contractor. (5) If the Contractor willfully fails to make any payments requited under the Franchise Agreement and/or refuses to provide City with required information, reports, and/or test results in a timely manner as provided in the Franchise Agreement. (6) Any other act or omission by the Contractor which materially violates the terms, conditions, or requirements of this franchise, Chapter 3, the California Integrated,Waste Management Act of 1989, as it may be amended from time to time or any order, directive, rule, or regulation issued thereunder and 21 which is not corrected or remedied within,the time set in the written notice of the violation or, if the Contractor cannot reasonably correct or remedy the breach within the time set forth in such notice, if the Contractor should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter. F. The City finds, and the Contractor agrees, that as of the time of the execution of this Franchise Agreement, it is impractical if not impossible, to reasonably ascertain the extent of damages which shall be incurred by the City as a result of a material breach by Contractor of its obligations under this Franchise Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (1) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Franchise Agreement to individual members of the general public for whose benefit this Franchise Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that services might be available at substantially lower costs than alternative services, and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Franchise Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. Accordingly, the City Council may, in its discretion, assess liquidated damages not to exceed the sum of Seven Hundred and Fifty Dollars ($750.00) per day, for each calendar day that service is not provided by Contractor in accordance with this Franchise Agreement. The amount of the liquidated damages shall be increased by the past year's I consumer price index (all urban consumers)for the Los Angeles-Anaheim-Riverside area can March I and effective July 1 of each year. In addition, the Council may order the assessment against the cash band required by Section 13, above, the termination of the Franchise Agreement, or both. The City finds, and the Contractor acknowledges and agrees that the above described liquidated damages previsions represent a reasonable sum in light of all of the circumstances. Said liquidated damages sums shall be applicable to each calendar day of delay during which Contractor has been found by the City Council to be in material default pursuant to this "section. The Contractor shall pay any liquidated damages assessed by the City Council within ten (10) days after they are assessed. If they are not paid within the ten(10) day period, the City may withdraw them from the security fund established by the 22 i I 9 i 1$. A MDUUS A. Should Contractor contend that the City is in breach of this Franchise Agreement, it shall file a request with the City Manager for an administrative hearing on the allegation. B. If either the City Manager or the City Council refers a matter to a hearing officer, or if the Contractor should allege a breach of the franchise by the City, City and Contractor shall mutually agree on a hearing officer. If agreement is not reached within twenty (20) working days of the filing of the notice of appeal, then Contractor shall select the hearing officer from a list of three potential hearing officers who are retired California Superior Court judges or Appellate Court justices, none of whom are related to the parties, prepared by the City Manager and approved by the City Council. C. The hearing shall be conducted according to California Code of Civil Procedure Section 1280, et sea, The exclusive venue shall be in Orange County, California. A hearing officer to whom a matter is referred shall have the authority to (I) order the City or the Contractor to undertake remedial action to cure the breach and to prevent occurrence of similar breaches in the future; (ii) assess damages and/or levy a penalty upon the Contractor consistent with the terms of this Franchise Agreement; or (iii) find there has been no breach. If the hearing officer finds there has been no breach, such a decision precludes the City From conducting a default hearing. For any occurrence or series of related occurrences, the penalty may be up to Five lbousand Dollars ($5,000.00). The amount of the penalty shall be reasonably related to the seriousness of the breach of the Franchise Agreement. D� The party losing the hearing shall be liable for the hearing officer's fees. E, Any failure of the Contractor to comply with the hearing officer's order shall be deemed a material breach of the Franchise Agreement, and may be grounds for termination of the Franchise Agreement, F. The hearing officer shall commence the hearing within thirty (30) days of selection unless the parties and the hearing officer otherwise agree. Any party to the hearing may issue a request to compel reasonable document production from the other party. Disputes concerning the scope of document production and enforcement of document requests shall be subject to agreement by the parties, or if agreement is not reached within twenty ( 0) days of that document request, then by disposition by order of the hearing officer. Any such document request shall be subject to the proprietary rights 23 document requests shall be subject to agreement by the parties, or if agreement is not reached within twenty (20)days of that document request, then by disposition by order of the hearing officer. Any such document request shall be subject to the proprietary rights and rights of privilege of the parties, and the hearing officer shall adopt procedures to protect such rights. Except as may be otherwise specifically agreed by the parties, no rather farm of pretrial discovery shall be available to the parties; provided that if either party notifies the bearing officer that a material violation of the franchise or rights in connection therewith is claimed by either party, the provisions of Code of Civil Procedure Section 1283.05 shall apply. G. Neither party may communicate separately with the hearing officer after the bearing Officer has been selected. ,All subsequent communications between a party and a hearing officer shall be simultaneously delivered to the outer party. This provision shall not apply to communications made to schedule a hearing or request a continuance. H. Until final judgment is entered from the hearing officer proceeding under the foregoing provisions and the time for appeal or other post judgment petition has expired, the imposition or enforcement of any penalties or sanctions provided in the Franchise Agreement and related to the subject matter of the hearing shall be stayed. The hearing officer may modify or cancel any proposed penalties or sancti€m upon a finding that the party subject thereto acted with substantial justification or if the interests of justice so require. I. Any party to a hearing may petition the Superior Court in Orange County, California to confirm, correct, or 'vacate the award on the grounds stated in the General Arbitration Act. Any proceedings on appeal shall be in accordance with Code of Civil Procedures § 1294 and § 1294.2. 19. CITY'S ADIDITIONAL REMET?IES In addition to the remedies set forth in Sections 1'7-18, above, City shall have the following rights: A_ To rent or lease equipment from Contractor for the purpose of collecting, transporting, recycling, composting, and disposing of solid waste and construction debris and providing temporary bin/rolloff services pursuant to this Franchise Agreement, for a period not to exceed six (6) months. In the case of equipment not awned by Contractor, Contractor shall assign to City, to the extent Contractor is permitted to do so under the instruments pursuant to which Contractor possesses such equipment, the right to possess 24 the equipment. If City exercises its rights under this Section, City shall pay to Contractor the reasonable rental value of the equipment so taken for the period of City's possession thereof; B. The right to license others to perform the services otherwise to be performed by Contractor hereunder, or to perform such services itself; and C. The right to obtain damages and/or injunctive relief. Both parties recognize and agree that in the event of a breach under the tens of this Franchise Agreement by Contractor, City may suffer irreparable injury and incalculable damages sufficient to support injunctive relief, to enforce the provisions of this Franchise Agreement and to enjoin the breach thereof. 20, Should Contractor, for any reason whatsoever, except the occurrence or existence of any of the events or conditions set forth in Section 28, "Force_M e"r ," below, refuse or be unable to and collect, transport, recycle, compost, and dispose of solid waste and construction debris and provide temporary bin/rolloff services any or all of the refuse, compostables, and recyclables which it is obligated under this Franchise Agreement for a period of more than seventy-two (72) hours, and if as a result thereof, debris, refuse, compostables, recyclables, and construction debris should accumulate in City to such an extent, in such a manner, or for such a time that the City Manager should find that such accumulation endangers or menaces the public health, safety, or welfare, then in such event City shall have the right, upon twenty-four (24) hour prior written notice to Contractor, during the period of such emergency, to temporarily tape possession of any or all equipment and facilities of Contractor previously used in providing the collection, transportation, recycling, composting, and disposal of solid waste and construction debris and provide temporary binlrolloff services under this Franchise Agreement, and to use such equipment and facilities to collect, recycle, compost, and transport any or all debris, refuse, compostables, recyclables, and construction debris and provide temporary bin/rolloff services which Contractor would otherwise be obligated to collect, recycle, compost, transport, and dispose of solid waste and construction debris and provide temporary bin/rolloff services pursuant to this Franchise Agreement. Contractor agrees that in such event it shall fully cooperate with City to effect such a transfer of possession for City's use. 25 Contractor agrees that, in such event, City may tape temporary possession of and use all of said equipment and facilities without paying Contractor any rental or other charge, provided that City agrees that, in such event, it assumes complete responsibility for the proper and normal use of such equipment and facilities. City agrees that it shall immediately relinquish possession of all of the above mentioned property to Contractor upon receipt of written notice from Contractor to the effect that it is able to resume its normal responsibilities under this Franchise Agreement. 21. PRWACY Contractor shall strictly observe and protect the rights of privacy of customers. Information identifying individual customers or the composition or contents of a customer's waste stream shall not be revealed to any person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the customer. This provision shall not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. Contractor shall not market or distribute, outside the normal course of its business, mailing lists with the names and addresses of customers. The rights accorded customers pursuant to this Section shall be in addition to any other privacy right accorded customers pursuant to Federal or State law. 22. RE"M AND ADVERSE_II ifQR W .TION A. M=Wy and Qua=Ly,,,=orts. Contractor, at no additional expense, shall submit to the City Manager such other information or reports in such forms and at such times as the City may reasonably request or require, including, but not limited to the following: 1) Monthly ReoOAS- Within fifteen(15)working clays after the last day of each month, Contractor shall submit a Monthly Report. The Report shall be submitted to City, transmitted in a format acceptable to City. The monthly report shall show the number of tons disposed per month and the total number of tons recycled per month. The information shall be reported for the following categories: residential-curbside, multi-family, commercial, and constructionlindustrial. The report should be in a form satisfactory to the City, demonstrating the City's progress in meeting and maintaining its ability to meet its goals under AB 939, along with any recommended changes. 26 2). Qmagaly-Emrts. Within 30 days after the completion of each quarter of the fiscal year Contractor shall submit a Quarterly Report. The Report shall provide a quarterly sunanary of the monthly reports in addition to the following: a. Rg&yclable Solid "Wastes (1) A statement showing by type of material, tons rived during the month and tons marketed during the month. (2) Recycling sales revenue by type of material marketed on a gross and net basis. (3) A report providing recycling information and the number of service recipients participating. (4) A narrative description of problems encountered and actions taken, including efforts to deter and prevent scavenging. The narrative is to include a description of tons rejected for sale after processing (type of material, tonnage), reason for rejection and Contractor's disposal method for the rejected materials. (5) A report of recycling program promotional and educational activities, including materials distributed by Contractor to its service recipients. B. Annual Reports. Contractor shall submit a written annual report, in a form approved by the City, including, but not limited to, the following information: (1) The number of accounts for each class of service for the year, (2) A report, in a form satisfactory to the City, on the City's progress in meeting and maintaining its ability to meet its goals under AB 939, along with any recommended changes. (3) A revenue statement, setting forth Franchise Fees and the basis for the calculation thereof, certified by an officer of the Contractor, with an annual statement certified by an independent auditor of the Contractor; 27 (4) A list of Contractor's officers and members of its board of directors. A list of stockholders or other equity investors holding five percent (5%) or more of the voting interest in the Contractor and any subsidiaries unless Contractor is a public corporation whose annual reports are publicly available. C. Adverse Inform-tion. Contractor shall provide City two.copies of all reports, or other material adversely affecting the Franchise Agreement, submitted ;by Contractor to the EPA, the California Integrated "Waste Management Board, or any other Federal or State agency. Copies shall be submitted to City simultaneously with Contractor's filing of such matters with said agencies. Contractor's routine correspondence to said agencies need not be automatically submitted to City, but shall be made available to City upon written request, as provided in Section 27, below. (1) The Contractor shall submit to City copies of all pleadings, applications, notifications, communications, and documents of any kind, submitted by the Contractor to, as well as copies of all decisions, correspondence, and actions by, any Federal, State, and local courts, regulatory agencies, and other government bodies relating specifically to Contractor's performance of services pursuant to this Franchise Agreement. Any confidential data exempt from public disclosure shall be retained in confidence by the City and its authorized agents and shall not be made available for public inspection. (2) Contractor shall submit to the City such other information or reports in such forms and at such times as the City may reasonably request or require. (3) All reports and records required under this or any other section steal l be furnished at the sole expense of the Contractor. (4) A copy of each of Contractor's annual and other periodic public financial reports and those of its parent, subsidiary, and affiliated corporation and other entities, as the City requests, shall be submitted to the City within thirty (30) days after receipt of a request. 28 D. Tonnage Receipt. The Contractor ,shalt submit to the City Manager and/or his designee quarterly reports setting forth the amount of tonnage of solid waste collected from within the City limits and disposed of pursuant to this Agreement for the previous quarter and setting forth the cumulative year-to-date total amount of tonnage of such solid waste. Said reports shall be based upon the tonnage receipts provided to Contractor by the solid waste facility or landfill. Contractor shall, upon demand by the City provide true and accurate copies of the tonnage receipts in order for City to verify Contractors' quarterly reports. E. Fa, tQ The refusal, failure, or neglect of the Contractor to file any of the reports required, or the inclusion of any materially false or misleading statement or representation made knowingly by the. Contractor in such report shall be deemed a material breach of the Franchise Agreement, and shall subject the Contractor to all remedies, legal or equitable, which are available to the City under the Franchise Agreement or otherwise. 23. PUBLIC ACCESS TDCONTRAC DE A. Office Hours. Contractor's office hours shall be, at a minimum, from 8:00 A.M, to 5.00 P.M. daily, on all collection days. A representative of Contractor shall be available during office Fours for communication with. the public at Contractor's principal office. In the event that nor al business cannot be rectified over the telephone, a representative of Contractor shall agree to meet with the public at a location agreeable to Contractor and the public. Nonnal office hours telephone numbers shall either be a local or tall free call. Contractor shall also maintain a local or toll free after-hours telephone number for use during other than normal business hours. Contractor shall have a representative or answering service available at said after-hours telephone number during all hours other than normal office hours. 8. Serv�-mp,W=. Contractor shall address and manage all complaints in the following mannev. (1) All customer complaints shall be directed to Contractor. Contractor shall record all complaints received by mail, by telephone, or in person(including date, name, address of complainant, and nature of complaint). Contractor agrees to use its best efforts to resolve all complaints by close of business of the second 29 business (waste collection) day following the date on which such complaint is received. Service complaints may be investigated by the City Manager or the Manager's designee. Unless a settlement satisfactory to complainant, the Contractor, and the.Manager's designee is reached, the complainant may refer the matter to the City Manager for review. (2) Contractor shall maintain records listing the date of consumer complaints, the customer, describing the nature of the complaint or request, and when and what action was taken by the Contractor to resolve the complaint. All such records shall be maintained and shall be available for inspection by City, as described in Section 27. i C. Qmmemt Liaiku Fuson. The Contractor shall designate a "government liaison person" who shall be responsible for working with the City Manager or the City Manager's designated representative to resolve consumer complaints. 24. RESDIAMON OF DISPUIRD C1JS-J. AWR_COJElUAEffS A. The Contractor shall notify customers of this complaint arbitration procedure at the time customers apply for or are provided service, and subsequently, annually. & A customer dissatisfied with Contractor's decision regarding a complaint may ask the City to review the complaint. To obtain this review, the customer must request City review within 30 days of receipt of Contractor's response to the Complaint, or within 45 days of submitting the complaint to the Contractor, if the Contractor has failed to respond to the complaint. The City may extend the time to request its review for good cause. C. Before reviewing the complaint, the City Manager shall refer it to the Contractor. if the Contractor fails to cure the complaint within ten (10) clays, the City Manager shall review the customer's complaint and determine if further action is warranted. The City Manager may request written statements from the Contractor and customer, and/or oral presentations. D. The City Manager shall determine if the customer's complaint is justified, and if so, what remedy, if any, shall be imposed. 30 E. Contractor shall maintain all records relating to customer complaints, for a period not less than,one (1) year. {ownership and the right to possession of refuse, compostables, and recyclables, placed in containers, bins or rolloffs, or placed at curbside, shall transfer directly from the customer to the Contractor, by operation of law. Contractors' arrangements with its customers will provide that, subject to the right of the customer to claim lost property, title and the right to possession, and liability for all recyclables and all solid waste, whether or not recyclable, which is set out for collection on the regularly scheduled collection day shall pass to contractor at the time it is set out. Subject to the provisions of this Franchise Agreement, Contractor shall have the right to retain any benefit profit resulting from its right to retain, recycle, compost, dispose of, or use the revise, compostables, recyclables, and construction debris which it collects. Refuse, compostables, recyclables, and construction debris, or any part thereof, which is disposed of at a disposal site or sites (whether landfill., transformation facility, compost facility, or material recovery facility) shall become the property of the owner or operator of the disposal site or sites once deposited there by Contractor. However, City, at its sole option, shall retain the right to require Contractor which transformation facility, compost facility, material recovery facility or landfill shall be used to retain, recycle, compost, process, and dispose of solid waste and construction debris generated within the Franchise Area. In this instance, Contractor shall conduct a rate audit and recommend, if necessary, a rate adjustment. 26. I"EADUFICATM A. Indemnification of City. Contractor agrees that it shall protect, defend with counsel approved by City, indemuify, and hold.harmless City, its officers, employees, and agents from and against any and all losses, liabilities, fines, penalties, claims, damages, liabilities, or judgments, including attorneys fees, arising out of or resulting in any way from Contractor's exercise of this franchise, unless such claim is dune to the sole negligence or willf l acts of the City, its officers, employees, agents, or +Woutractors, or from the City's grant of this franchise to Contractor. Subject to the scope of this indemnification and upon demand of the City, made by and through the City Attorney, the Contractor shall appear in and defend the City and its officers, employees, and agents in any claims or actions, whether judicial, administrative, or otherwise arising out of the exercise of the Franchise Agreement. 31 B, e�fication of C4nUa=. The City shall indemnify, defend and hold the Contractor, its affiliates and their respective officers, directors, employees, and shareholders harmless from and against any and all liabilities, losses, damages, claims, actions, causes of action, costs, and expenses (including reasonable attorneys` fees) arising from or in any manner related to the sole negligence or willful acts of.the City, its officers, employees, agents, or contractors. C. Hazardous Substances 1ndunWfiQa1iffl. Contractor shall indemnify, defend with counsel approved by City, protect and .hold harmless City, its officers, employees, agents, assigns, and any successor or successors to City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and expenses (including but not limited to attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kin whatsoever paid, incurred or suffered by, or asserted against, City or its offYoers, employees, agents, or Contractors arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken clue to gover=ental action) concerning any hazardous substance or hazardous wastes at any place where Contractor stores or disposes of municipal solid waste or construction and debris pursuant to this Franchise .Agreement. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act, "CER.CLA", 42 U.S.C. Section 9607(e) and California Health and Safety Code Section 25364, to insure, protect, hold harmless, and indemnify City from. liability. D. AB 932] rani cad turn. Contractor agrees to protect, defend, with counsel approved by City, and indemnify City against all fines or penalties imposed by the California Integrated Waste Management Board or local enforcement agency in the event the source reduction and recycling goals or any other requirement of AB 939 are not met by City with respect to the waste stream collected under this Franchise Agreement. Assuming City and Contractor agree on programs, Contractor shall cause at least fifty percent (501) of the waste stream collected under this Agreement to be diverted from landfills as defined by State law as amended from time to time by January 1, 2000. 32 . __. E. . Contractor shall obtain and maintain in full force and effect throughout the entire term of this Franchise Agreement full workers' compensation insurance in accord with the provisions and requirements of the Labor Code of the State of California. Endorsements that implement the required coverage shall be filed and maintained with the City Clerk throughout the term of this Franchise Agreement, The policy providing coverage shall be amended to provide that the insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to City. The policy shall also be amended to waive all rights of subrogation against the City, its elected or appointed officials, employees, agents, or Contractors for losses which arise from work performed by the named insured for the City. 27. CO:—'lCRA TOR'S _BOOKS ANDRE Aj= A. Contractor shall maintain all records relating to the services provided hereunder, including, but not limited to, customer lists, billing records, accounts payable records, reaps, and AB 939 compliance records, for a period of not less than three (3) years, or any longer period required by law. The City shall have the right, upon five (5) business days advance notice, to inspect all maps, AB 939 compliance records, customer complaints, and other like materials of the Contractor which reasonably relate to Contractor's compliance with the provisions of the Franchise Agreement. Such records small be made available to City at Contractor's regular place of business, but in no event outside the County of Orange. S, Should any examination or audit of Contractor's records reveal an underpayment of any fee required under this Franchise Agreement, the amount of such underpayment shall become due and payable to City not later than fifteen (15) clays after written notice of such underpayment is sent to Contractor by City. Should an underpayment of more than three percent (3%) be discovered, Contractor shall bear the entire cost of the audit of the franchise fees, 28. YbTM L PIQYISMS A. For=-MW-g-=- Contractor shall not be in default under this Franchise Agreement in the event that the and temporarybin/rolloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction debris provided by the Contractor are temporarily interrupted or discontinued for any of the following reasons: riots, wars, sabotage, civil disturbances, insurrections, explosion, natural disasters such as floods, earthquakes, landslides, and fires, strikes, lockouts, and 33 other labor disturbances or other catastrophic events which are beyond the reasonable control of Contractor. Other catastrophic events do not include the financial inability of the Contractor to perform or failure of the Contractor to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility where such failure is due solely to the acts or omissions of the Contractor. In the event a labor disturbance interrupts temporary in/rolloff services and the collection, transportation, recycling, composting, and dispel of solid waste and construction debris by Contractor as required under this Franchise Agreement, City may elect to exercise its rights under Section 17 of this Agreement. B. Independent Curator, Contractor is an independent contractor and not an officer, agent, servant, or employee of City. Contractor is solely responsible for the acts and omissions of its officers, agents, employees, Contractors, and subcontractors, if any. Nothing in this Franchise Agreement shall be construed as creating a partnership or joint venture between City and Contractor. Neither Contractor nor its officers, employees, agents, or subcontractors shall obtain any rights to retirement or other benefits which accrue to City employees. C. Pay=at amagt- Contractor shall be responsible for any extraordinary damage to City's driving surfaces, resulting from negligence in providing refuse collection and temporary bin/rolloff services. D. Proms atna=e. Any physical damage caused by the negligent or willful acts or omissions of employees, Contractors, or subcontractors of the Contractor to private or public property shall be repaired or replaced. F. Right of Entrv. Contractor shall have the right, until receipt of written notice revoking permission to pass is delivered to Contractor, to enter or drive on any private street, court, place, easement, or other private property for the purpose of providing temporary bWrolloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction and demolition debris pursuant to this Franchise Agreement. F Law to Govern- Venue. The lain of the State of California shall govern this Franchise Agreement. In the event of litigation. between the parties, venue in state trial courts shall lie exclusively in the County of Orange. In the event of litigation in a U.S. ]District Court, exclusive venue shall lie in the Central District of California. 34 G. Eggs and Gratuities. Contractor shall not, nor shall it permit any agent, employee, or subcontractors employed by it to, request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity for temporary bin/roiloff services and the collection, transportation, recycling, composting, and disposal of solid waste and construction debris otherwise requited under this Franchise Agreement. H. Prior Ag=em nts Od Ammftoj. This Franchise Agreement is intended to carry out City's obligations to comply with the provisions of the California Integrated Waste Management Act of 1989, ("AB 939")as it from time to time may be amended, and as implemented by regulations of the California Integrated Waste Management Board ("Regulations"), as they from time to time may be amended. In the event that AB 939 or other Mate or Federal laws or regulations enacted after this Franchise has been enacted, prevent or preclude compliance with one or more provisions of this Franchise Agreement, such provisions of the Franchise shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations. No other amendment of this Franchise ,Agreement shall be valid unless in writing duly executed by the parties. 1. C=Iia=_with Franchise A�g1, Contractor shall comply with those provisions of the San Juan Capistrano Municipal Code which are applicable, and with any and all amendments to such applicable provisions during the term of this Franchise Agreement. J. Noise. All notices required or permitted to be given under this franchise shall be in writing and shall be personally delivered or sent by telecopier(fax), or United ,States certified mail, postage prepaid, return receipt requested., and addressed as follows: To City: City of San Juan Capistrano City Attorney 32400 Paseo Adelanto San Juan Capistrano, CA 92675 To Contractor: Solag Disposal Company Incorporated P. O. Bax 1100 San Juan Capistrano, California 92693 Telecopier: (714) 240-0195 Telephone- (714) 240-0446 35 or to such other address as either party may from time to time designate by notice to the other given in accordance with this Section. Notice shall be deemed effective on the date personally served or, if mailed, three (3) business days from the date such notice is deposited in the United States mail. K. Savius Clam and Euduty. If any non-material provision of this Franchise Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any of the remaining provisions of this Franchise Agreement. L. Exbibits_Iwvrgrated. Exhibits "A" through "F" are attached to and incorporated in this Franchise Agreement by reference. WITNESS the execution of this Agreement on the day and year written above. CITE' OF SAN JUAN CAPISTRANO ATTEST: B ' David Swertllin, Mayor c *Chelo n, ity Clerk APPROVED AS TO FORM: hard Denhalter, City Attorney Solag Disposal Co. Incorporated L� L� 1� , By: Torn Trulis, Owner/President 36 ACKNOWLEDGMENT STATE OF ss. COUNTY OF ) On_ _ before me,!the u ersigned, A rotary Public in and for the State of California, personally appeared personally known to zne (or proved to me on the basis of satisfactory evidence) to'nowl the person(s) whose name(s) is/are subscribed. to the within instrument and aciced to me that he/she/they executed the same in his/her/their authorized capacity(i and that by his/her/their signatures(s) on the instrument the person(s), or the e7�q upon behalf of which the person(s) acted., executed the instrument. r` f Signature: CORPORATE SEAL 37 FAHIBIT A 1. Automated residential curb and roadside collection, recycling, composting and disposal located on a paved, two lane road; monthly rate for: (2) 35 gallon containers one refuse, one recycling: $11.72 (2) 67 gallon containers one refuse, rine recycling: $12.99 (3) 67 gallon containers one refine, one recycling, one compost:$ 13.47 Each additional 35 gallon container: $3.21 Each additional 67 gallon container: $3.32 Vacancy, self hauler exemption: $6.59 2. Multifamily, Commercial and Industrial receiving bin service (3 cubic yard bins) for DISPOSAL; monthly rate with the following pickups per week: 1 x week $ 72.63 4 x week $1.94.82 2 x week $113.76 5 x week $237.14 3 x week $149.37 6 x week $278.32 3. Roll-Off Rate: Regular Servic Drop-off-box: 138.56 + Actual Landfill fee Compactor: 1.38.56 + Actual Landfill fee On-Call Seryke 36 cu. yd. 3 cu. yd. Drop-off-box- Drop-off-box: 341.07 ( 24 Hrs.) 38.64 Lowboy ( weekly ) 49.76 Drop-off-box: 408.56 Bulky Items: First two calls: $-0- Each call thereafter: $10.00 Miscellaneous Fees: Graffiti Removal per incident - Residential User $10.00 Commercial User $10.00 Delinquent Fee $5.00 Redelivery or Reinstatement Fee $15.00 Refund Fee $1.50 38 1 BIT,,B . Solid astc-Collection„Eak CC!Qn2putatign Folmula Base 8&.Adjusimn The Contractor shall be entitled to an annual increase of the base rate, not to exceed 4% per annum using of the producers price index ("PPT") for finished goods published by the Bureau of Labor Statistics on January 1 of each contract year commencing January 1, 1997. The index for November I to October 31 shall be used. c sal Adjustment Additionally, the landfill tipping fee adjustment shall be a pro-rata pass through of any tipping fee increase or decrease. The pounds of refuse per customer shall be adjusted annually based on the contractors landfill gate receipts for the previous year. The landfill tipping fee pass through formula is as follows: �A) Residential Pickup t�-- The difference between current tip fee and proposed tip fee divided by the current tip fee to establish the percentage variance change. The variance times the tip fee equals the rate change. Rate change is added for increase and subtracted for decrease in tip fee. (B) Commercial Pickup = Total annual tons 12 month equals monthly tonnage average. Monthly tannage times the 2,000 equals monthly rate in pounds. Monthly hound divided by total number of monthly dumps duals weight per bin. pounds per bin divided by 2,000 equals percentage of one ton. Percentage of one ton times the per ton dump fee equals tip fee pass thru rate per single frequency. Residential Rate Composite: Two 35 gallon containers: Base Tipping Total Rate P=— E=- 10.01 + 1.71 = 11.72 Two 67 gallon containers: Base Tipping Total Mr. E=— Rate 10.16 + 2.83 = 1.2,99 39 Three 67 gallon containers: Base Tipping Total Rak Fee Ra., 101.48 + 2.99 = 13.47 Commercial Rate Composite for Disposal Only: Total 1 x wk 50.41 20.80 1.42 72.63 2 x wk 69.94 41.60 2.22 113.76 3 x wk 84.50 62.40 2.92 1.49.37 4 x wk 107.81 83.20 3.81 194.82 x wk 128.51 104.00 4.63 237.14 6 x wk 148.07 124.80 5.45 278.32 Roll-Off Rate: Regular Service: B + ]Drop-Off-Box 138.56 Actin 0 Compactor 138.55 Actual 0 Cin-Call Service Base Rate _± i_ ,ng, Fee = TQLjL&t . Drop off box: 36 cubic yard 138.56 202.51. 341.07 Lowboy 10 cu yds. 13$.56 270.00 405.56 3 CUBIC YARD BIN: 24 brs 31.79 6.85 38.54 Weekly 43.13 6.63 49.76 40 EXHIBIT C AB 939 Eygat A. Contractor guarantees to City that it shall cause at least twenty-five percent (25%) by January 1, 1995, and fifty percent (50%) by January 1, 2000, of the annual waste stream collected under this Franchise Agreement to be diverted from ultimate deposit in landfills or transformation facilities in accordance with the regulations implementing the California Integrated Waste Management Act of 1989 (as amended) (also known as "AB 939"). Contractor shall make every effort possible to assist in implementing the programs identified in the City's Source Reduction and Recycling Element (SRRE) and Household Hazardous Wastes Element (EHWE). Contractor shall provide; City with written reports in a form adequate to meet City's reporting requirements to the California Integrated Waste Management Board and to the County of Orange throughout the term of this Franchise wherein its performance under this program is set forth in detail. B. Beginning July 1, 1998, Contractor shall conduct a waste audit of all contracted commercial and multi-family accounts to determine their recyclable content, prior to services tieing rendered. The press used to conduct this waste audit shall be shared with. the City of San Juan Capistrano, to ensure permit compliance and acceptance. Beginning January 1, 1999, those accounts that contain a significant recyclable content shall be processed through the a MRF that processes materials for reuse. C. Any new collection,containers or replacements shall be purchased and provided y Contractor at Contractor's expense and provide the minimuni specifications contained in Exhibit "D." The container that is designated as recyclables shall have its contents processed at a material recovery facility. The green waste container shall its contents processed of in a compost facility. The refuse container shalt have its contents taken to the landfill for disposal. Contractor shall provide to every new residential account an announcement of the recycling program, instructions on how to participate, and what services are available to the homeowner. D. Public Education. Commencing with the implementation of the mechanized residential container system, Contractor shall continually maintain an "Public Education Fund." for the sole purpose of supplying public education and information about source reduction, recycling, and composting. The amount to be set aside is .09 per household per month derived from the base rate. The public Education Fund shall be held in an interest bearing bank account, separate from other funds utilized by Contractor, and shall be made available for audit review upon request of the city. All interest earned can the balance remaining in this fund shall rcrnain as part of the fund. E. Contractor shall employ a person as the recycling coordinator whose sole responsibilities will be the implementation of the programs contained in the City's SRRE and HHWE. F. The failure of Contractor to achieve any of the above shall be deemed a material breach of this Franchise Agreement. 41 EXHIBIT D Minimum CQukirar S=ificalions Each container provided for the residential curbside collection shall have a capacity of sixty-seven (67) or thirty-five (35) gallons. Each container (including hardware) shall be fully guaranteed for ten (10) years against breakage or material failure, When the ward "container" is used in this specification, it is defined as a complete unit including full lid assembly, wheels and axle. Contractor shall be responsible for the replacement of container, wheels, lids, hinges, axles, and handles which fail by reason of improper or inadequate materials or defective workmanship, or insufficient resistance to weathering or any other cause other than negligent or abusive use by third parties or homeowners. The containers shall meet the following specifications in all material respects. Any deviations frorn the specifications shall be approved by the City Manager or designee. 1. CRWy Rotationally molded, one hundred percent (100%) first quality High Density Crosslink Polyethylene, ultraviolet stabilized Paxon 7004172W or Phillips 66 CL 200. Certified to contain ultraviolet stabilization provided by the equivalent of .5% of UV 531 stabilization compound. Certified to meet a minimum ESCR rating exceeding 1000 hours for both 100% and 10% Igepal solutions. 2. Cart Handle Mounts Integrally molded part of cart body made of the same material as the body and require no hardware (No caps, screws, metal hinges or PVC pipe). External handle diameter, 1.375 inches. 3. Cart Lid Each container shall be furnished with a lid molded from the same material as the container and shall be of such a configuration that it shall not warp, bend slump, or distort to such an extent that it no longer fits flush on the container properly or becomes otherwise unserviceable. The lid shall be designed in such a manner to insure that it will be watertight. The lid shall have the same thickness as the container and shall fully open at 95 - 110 degrees. Imprinted with "Instructions" and "Indications ,and Contraindications" in English and Spanish. 4. b=l Retaimr Locking systern to prevent disassembly. 5. Axks 42 518" galvanized solid steel fully supported by cart body. No belts or rivets used for mounting. 6. -Meels Each container shall be equipped with wheels molded from the sane material as the body. Wheels shall be ten (10) inches in diameter by two and one-half(21h) inches in width. Miaimum R.M.A, load rating of 184 pounds per wheel. 7. Capacity- Container volume sixty-seven (67) or thirty--five (35) C.S. gallons. 8. Dimensions 67 Gallon Container = Width: 31 inches Length: 36 inches Height: 45 inches. 35 Gallon Container = Width: 21 inches Length:21.5 inches Height: 38 inches. 10. Ultraviolet stabilized, non-fading tarp, green, and'black. 11. Stability Designed to prevent being turned over by winds of up to 25 mph in any direction when empty. 12, Hot St&�_ _g To meet the provisions of this franchise agreement § 8(A)(14). 13. ,SuW Nmnber Each container shall be "hat stamped" with an individual serial number which shall correspond with individual addresses. 43 EXHIBIT E mal Wastes Flammable waste Containerized waste (e.g., a drum, barrel, portable tank, box, pail, etc.) Waste transported in a bulk tanker Liquid waste Sewage sludge Waste from a pollution control process Residue and debris from the cleanup of a ,spill or release of chemical substances, commercial products or any other special wastes. Contaminated soil, waste, residue, debris, and articles from the cleanup of a site or facility formerly used for the generation, storage, treatment, recycling, reclamation, or disposal of any other special wastes. Dead animals Manure Waste water Explosive substances Radioactive materials Materials which have been exposed to highly infectious or contagious diseases Hazardous materials 44 " SII _• -, _� - ,�.���'�� s� h "M .. V ''S,r rrrra4 S *� �� �kM*yi4�k�sik■ '�-iAI�k�CO CRElk .. '.�"- 11 wow- tiyslrl ;e t rrkkrYiis '*YtM%a 401 2 :`1f0�##kx � ♦y #e e`I��AR 9 rX .0 City Residential Refuse Residential Recycle Yardvvaste Collection Residential Refuse Residential Recycle Yardwaste Pickup Collection Method Collection Method Method Pickup Frequency Pickup Frequency Frequency Aliso Viejo Automated Automated ,automated Once per week Once per week Once per week Anaheim Automated Automated Automated Once per week- Once perweek Once per creek Brea Automated Automated Automated Once per week Once per week Once per week Buena Park Mixed Waste Processing N/A-MWP(1) Manual once per week Not applicable Once per week Costa Mesa Mixed Waste Processing- N/A-MWP j1) N/A Once per wEePc Not applicable Not applicable Cypress Automated Automated N/A Once per week Once per week Not applicable Dana point Autornated Automated Automated Once per'weck Once per week once per week Fountain Valley Automated Automated Automated Once per week Once per week Once per week Fullerton Automated Automated Automated Once per week Once per week Once per week Garden Grove Automated. Automated Aiitomated Once per,week Once per week Once per week Huntington Beach Automated Automated Automated Once per sweeek. Once per week Once per week. Irvine Automated. Automated Automated Once per week Once per week Once per WeeA k.a Habra Automated Automated Automated Once per week Once per week Once per week La Palma Mixed Wase Processing N/A-MWP(1) N/A-MWP(1) Once per week Not applicable Not applicable Laguna Beach Autornated Autornated Automated Once.per week once per week Once per week Laguna Hills Automated Automated Automated Once per week Once per week Once per Meek Laguna Niguel Automated Automated Automated Once per week Once per week Once per week aguna.Woods Automated Automated Mulched Onsite Twice per week Once per week Other €.oke Forest Autornated Automated Automated lance per week once per week Cance per week L.os Alamitos Automated Automated Automated: . Once per weep "'Once perweek Once per week !Mission Vieio Automated Automated Automated Once per week Once per week Once pC(week Newport Beach Mixed Waste Processing NIA,I+Wp(I) N/A Once per week Norapplicab- of applicable ie N le (1)Notapplicable-mixed waste processing. �r November 1,2010 Page 3 HF&H Consult: err' C7 IV City Residential Refuse Residential Recycle Yardwaste Collection Residential Refuse Residential Recycle Yardwaste Pickup Collection method Collection Method Method Pickup Frequency Pickup Frequency Frequency Orange Automated Automated Automated once per week Once per week Once per week Placentia Automated Automated Automated Once per week Once per week once per week Rancho Santa Margarita Autorraated Automated Automa't'ed Once per week Once per week Once per week San Clemente Automated Automated Automated once perweek once per week Once per week San.Juan Capistrano. Automated. Automated Automated Once per week Once per week Once per week Santa Ana Automated Automated Automated .Once per week Once per week Once per week Seal Leach Manual/Auto Manual/Auto Manual/Auto Once&trice per week Once&twice per week Once&twice per week stantuta Mixed Waste processing N/A-'tv(WP(1) N/A-MWP(1) Once per week Not applicable Not applicable T"ustln Automated Automated Automated Once per week Once per week Once per week Villa Park Automated Automated Automated Once per week Once per week Once per week westrrtlos`ter Automated Automated N/A Once per week Once per week Not applicabie Yorba Linda, Automated Automated Automated Once per week Once per week Once per week (1)Not applicable-mixed waste processing. - Movember 1,2010 Page 4 HF&H Consultants Sorted from lowest to highest rate to customer City Residential-Total Rate Container Size(�I Laguna Woods $7.28 35 Irvine $11.41. Grange $11.42 Rancho Santa Margarita $13,02 Lake Forest $13.71 Dane Point $13.84 64 Mission Viejo $14.00 Los Rlarri€tos $14.58 96 Tustin $14.68 Aliso Viejo $14:72 Laguna Hills $3:4.79 Cypress $15,48 Buena Park $15.52 San Juan Capistrano $16.06 64' San Clemente $16A4 35 La Palma $16.55 Seal Beach $17.02 Laguna Beach $17.21 Fountain Valley $17.83 Laguna Niguel $17,86 64 Fuilert€ln $18,02 Santa Ana $1:8.24 La Habra $18.32 Brea $18.43 Huntington Beach $18.62 Y&ba Linda $19.45 Anaheim $19.53 110 Garden Grove $19.66 Villa Park $19.77 Costa Mesa $19.95 Stanton $20.lo Placentia $20.61 Newport Beach leo billing tzl Westminster Not reported 1}!ontoiner size if the monthly biling rate is based on container size,Sizes as repotted represent the following ranges- 35 gallon-Ranges from W to 40 gafions 54 gallons-Rartgea front od to 70 gailoilb 96 gallons-Ranges from 50 to 100 gallons iz'€'Jact€stome€'bi#li€+g-sp11[i waste servicefunded from the General�urrd. . Novomber 1,2010 Page 5 HF&H Consultants,LLC 0 F 9^ # s r - r • s r s s •r o e- Sorted from lowest to highest rate to customer Citi Commercial-Total.Rate Orange $47.13 Rancho Santa Margarita $49,10 Lake.forest $51.06 Laguna Woods $52.64 Mission Viejo $64.88 Westminster $88.16 San Juan Capistrano $91.62 Irvine $95.56 Dana Paint $99.26 Aliso Viejo $104.04 Laguna Niguel $104.78 Tust In $105.54 Laguna Hills $111.,p.7 La Palma $118,86 Santa Ana $121.35 La Habra $125.170 Los Alamitos $125.38 Brea $1.25.55 Buena Parr $13U4 Seal Beach $131.33 Fountain Valley $.132,80 Yorba Linda $134.60 Villa Park $136,00 San Clemente $136.79 Laguna Beach $1.38,85 Cypress $139,99 Placentia $143.,49 Anaheim. $144,93 Garden Grave $146.03 Huntington Beach $152.38 Stanton $153.73 Fullerton $156.38 Costa Mesa Oper,competition Newport Beach Open competition November 3, 2010 Page G HF&ti Consultants, LLC Orange County Residential Trash Rate & Franchise Fee Survey (August 20 10) $Value Net to # CITY Franchisee dba Old Rate New Rate City Fees of Fee Hauler 1 PLACENTIA Republic Services Placentia Disposal 20.61 $ 20.61 15.00% $ 3.09 $ 17.52 2 STANTON* CR&R Stanton Disposal 17.86 $ 20.10 10.00% $ 2.01 $ 18.09 3 COSTA MESA* CR&R Costa Mesa Disposal 19.95 $ 19.95 17.30% ** $ 3.45 $ 16.50 4 VILLA PARK Republic Services Villa Park Disposal 19.77 $ 19.77 5.40% $ 0.99 $ 1.8.78 5 GARDEN GROVE Republic Services Garden Grove Disp. 19.66 $ 19.66 725% $ 1.43 $ 18.213 6 ANAHEIM Republic Services Anaheim Disposal 18.62 $ 19.53 zero on residential $ - $ 19.53 7 YOPBA LINDA Republic Services Yorba Linda Disp. 17.30 $ 19.45 5.00% $ 0.97 $ 1.8.48 8 HUNTI:NGTON BEACI3 Rainbow Disposal 18.62 $ 18.62 zero on residential $ - $ 18.62 9 LA HABRA Waste Management 16.54 $ I8.32 7.50% $ 1.37 $ 16.95 10 SANTA ANA Waste Management Great Western 16.49 $ 18.24 NIA Unknown Unknown I I BREA Republic Services Brea Disposal 17.68 $ 18.21 10.00% $ 1.82 $ 16.39 12 FULLERTON Republic Services MG Disposal 17.80 $ 18.02 7.00% $ 1.26 $ 16.76 13 LAGUNA NIGUEL CR&1: Solag Disposal 17.86 $ 17.86 5.00% $ 0.89 $ 16.97 14 FOUNTAIN VALLEY Rainbow Disposal 17.83 $ 17.83 zero on residential $ - $ 17.83 15 CYPRESS Consolidated Briggeman Disposal 16.23 $ 17.45 8.00% $ 1.40 $ 1.6.05 16 SAN J. CAPISTRANO CR&R 16.97 $ 17.26 5.000/0 $ 0.86 $ 16.40 17 LAGUNA BEACH Waste Management NIA $ 17.21 zero on residential $ - $ 17.21 18 SEAL BEACH Consolidated Briggeman Disposal 15.25 $ 17.02 7.00% $ 1.19 $ 15.83 19 SAN CLE1r!CFNTE CR&R 16.65 $ 16.65 5.00% $ 0.83 $ 1 5�8-2 /'r ,Z r 20 LA PALMA: I DCO Disposal Corp. Park Disposal_ 16.55 $ 1.6.55 10.00% $. 1.66 $ 14.90 21 BUENA PARK EDCO Disposal Corp. Park Disposal 15.62 $ 15.62 5.25% $ 0.82 $ 14.80 22 DANA.POINIT CR&R 13.97 $ 14.93 zero on residential $ - $ 14.93 23 WESTMINSTER MIDWAY SAN'.DISTRICT Midway San.Dist. 14.75 $ 14.75 zero on residential $ - $ 14.75 24 ALISO VIE JO CR&R N/A $ 14.72 2.72% S 0.40 $ 14.32 25 TUSTIN CR&R 13.79 $ 14..68 $175;000 per year Unknown Unknown 26 LAGUNA HILLS C:R&R Solag Disposal 13.10 $ 14.27 $250,000 per year Unknown unknown 27 LAKE FOREST Waste Management 12.57 $ 13.71 5.00% $ 0.69 $ 13.02 28 RANCHO S. MARGARITA CR&R 1223 13.02 3.07% $ 0.40 $ 12.62 29 MISSION VIEJO Waste Management 13.47 $ 12.11 5.00% $ 0.61 $ 11.50 30 LOS ALAMITOS Consolidated Briggeman Disposal 14.59 $ 11.80 N/A Unknown Unknown 31 ORANGE CR&:.R 13.79 $ I L52 $145,040 per year Unknown Unknown 32 IRVINE Waste Management 12.22 $ 11,41 5.00% $ 0.57 $ 10.84 33 LAGUNA WOODS Ware Disposal 8.52. $ 9.29 5.00% $ 0.46 $ 8.83 Average $ 16.03 $ 16.3' _ 15.77 * Stanton and Costa Mesa receive mixed waste processing.All other jurisdictions use source separation(i.e. 3-cart:systema.). ** The Costa Mesa Sanitary District receives residential fees in Costa Mesa. IEA County Permit Area Contracted Hauler Nevv Rate City Fees 1 Rossmoor CR&R $ 16,66 NIA 2 La Habra Islands Waste Management $ 14.54 NIA 2 La Habra&Brea Islands Republic Services $ 14.54 NIA 2 Placentia&Yorba Linda Islands Republic Services $ 19.85 N/A 3 Orange Islands CR&R $ 15.66 N/A 3 Stanton Island CR&R $ 17.73 NIA 5 El Modena Ware Disposal $ 15.37 N/A 5 OPA 'Waste Management $ 15.37 N/A 5 Canyons&OPA(Special Vehicle Service Areas) Waste Management $ 22.19 NIA 9 Franchise Area 9 CR&R $ 15.37 N/A Franchise Areas(FA)6,7,&8 Waste Management $ 15.37 N/A Note- City of Newport Beach utilizes their own residential trash fleet and does not charge a dedicated trash fee. Prepared by Michael Balliet Consulting 949-837-3618 mballietf cox.net 19. AGREEMENT WITH MAINSTAR, INC. FOR THE PURCHASE, INSTALLATION, AND IMPLEMENTATION OF AN INTEGRATED COMPUTERIZED MAINTENANCE MANAGEMENT SYSTEM (CMMS) — ITEM PULLED FROM THE AGENDA BY STAFF (600.30) -- 20. DISCUSSION OF SOLID WASTE FRANCHISE FEE CALCULATION METHODOLOGY (600.0/810.2 O4 3 --.._ Ziad Mazboudi Senior Civil Engineer, pro.�ide .a...staffi reportandr_ spQnded to_ _ questions. Cindy Russell, Chief Financial Officer/Treasurer, responded to questions. Public Comments: • Clint Worthington, City resident, stated that the City is using the wrong Producers Price Index (PPI) to calculate resident's rates; spoke regarding lack of adjustment to fees for solid waste reduction; and provided a handout to the City Council, • Dean Ruffridge, CR&R, stated that CR&R has used the correct calculation methodology in their solid waste rates; stated that if a legal opinion was rendered otherwise, CR&R would review and make any necessary changes; and responded to questions from the City Council. • Kim Lefner, City resident, stated that the City should use the Producers Price Index (PPI) from November 1 through October 31, as per contract; felt that there should be a decrease in the rates based on recycling diversion; and asked that the City perform an audit by an outside interest party. Council Comments: Should look into the cost of conducting an audit to the Franchise Agreement with CR&R. Council Action: Moved by Mayor pro tem Freese, seconded by Mayor Uso, and failed 3-2 with Council Member Allevato, Council . Member Hribar, and Council Member Nielsen to direct staff to bring back to the City Council the cost of conducting an audit to the CR&R Franchise Agreement. ROLL CALL: AYES: COUNCIL MEMBER: Mayor pro tem Freese and Mayor Uso NOES: COUNCIL MEMBER: Allevato, Hribar and Nielsen ABSENT: COUNCIL MEMBER: None Council Action: Moved by Council Member Nielsen, seconded by Council Member Allevato, and carried unanimously to direct staff to bring back to the City Council the cost of conducting an audit to the CR&R Franchise Agreement, and provide a presentation from staff in conjunction with CR&R with a clarification to the calculations in the 2007-08 Solid Waste & Recycling Tons Summary Report (December 2008) under the contract terms. 9 9/21/2010 9121120'10 AGENDA REPORT D20 TO: Joe Tait, City Manager FRf3M: West Curry, Assistant Utilities Director SUBJECT: Consideration of Solid Waste Franchise Fee Calculation Methodology, RECOMMENDATION: By motion, receive and file a presentation on the calculation of solid Waste fees. SUMMARY AND RECOMMENDATION The City Council asked staff to review and present answers to questions that were raised in regards to the manner solid waste rates are calculated and other related questions. Staff will attempt to answer the issues raised at the Council meeting of September 7, 2010. The size of the container: There are references to different size containers, such as 60 gals, 64 gals, or 67 gals. The manufacturer refers to the 64 gallon as "6€1 gal", just like a 2x4 piece of wood, is 1.5"x3.5". It is a nominal size. The City has always used the same containers. The residents would not be charged more or less if the container is 3 gallons more or 3 gallons less. It is.te category of containers that we are referring to in the description. The container holds 64 gallons of water and the curved lid increases the volume to 67 gallons. . The new residential rate has increased this year significantly more than other years for the following reasons: - 76% of the rate increase ($ 1.01) was due to the landfill pass-through rate increase. This rate has gone up for the first time in 13 years as the landfill tipping fees went up from $22/Ton to $29.951Ton, effective July 1, 2010. - 23% of the rate increase ($0.32) is as a result of the annul PPI adjustment for finished goods. The PPI adjustment is a 12 month adjustment as calculated from the Bureau of Labor Statistics data. The current PPI for 2008-09 is 2.4% as provided by the Bureau's website. Staff contacted the Bureau of Labor Statistics, who confirmed that the methodology used by the City to calculate the PPI rate increase is correct. In order to obtain a 12 month percentage change, you compare the same month in the previous year. It is not a 13 month change but 12. Staff have always posted the rate increases on the City's website, published the proposed rates in the local newspaper. Rate increases, as described in the Municipal code section 6-3,08: Agenda Report September 21, 2010 Page 2 "Annual rate increases may be granted as set forth in the exclusive solid waste handling services contract between the City and the exclusive solid waste enterprise. In the event of an annual increase, the solid waste coordinator shall annualtv 'Oublish a revised schedule of rates and char es for solid waste hanqLnq..services." Staff has followed this practice in the past, but could easily bring these rates to the City Council for adoption if Council wishes us to do so in the future. The Franchise Agreement states that the disposal component of the overall rate only changes when there is a landfill tipping fee adjustment. Since the start of the Agreement, the landfill tipping fee has changed two times: a decrease in 1997 and an increase in 2010. To establish a disposal component in 1996, the contract utilized 11,371 tons - the then amount of residential waste taken to the landfill, With the decrease in 1997, that same disposal number was used in the disposal component reduction. In 2010, the contractor multiplied the disposal component by the landfill increase only. Consideration for the increase in total residential disposal was not passed through to the customer; but could have based upon the Franchise agreement. COMMISSIONIBOARD REVIEW AND RECOMMENDATIONS. NIA FINANCIAL CONSIDERATIONS: No impact NOTIFICATION: CR&R, Inc. Clint Worthington RECOMMENDATION: By motion, receive and file a presentation on the calculation of solid waste fees. Respectfully su�pitted, Prepared by, West Cur Ziad Mazboudi, PE, LEED AP,CPSWQ, CPESC Assistan - ilitie s Director Senior Civil Engineer Agenda Report September 21, 20101 Page 3 Attachment(s): 1. Correspondence with Bureau of labor Statistics regarding method of calculating the PPI 2, Cart manufacturer specifications Ziac Mazboudi From: Kowal, Joseph - BLS [Kowal,Joseph@bls,gov] Seft Wednesday, September 15, 2010 10:05 AM To: Ziad Mazboudi Cc. PPI-INFO Subject, RE: PPI calculation Ziad Mazboudi, 7"he correctimethod for calculating a 12 month percentage change is to compare vatues,from the same month front cansecu'Uve years. For e.xarnple, if one warts to know the calendar year percentage,change for an index,one should compare index vakAe5 for consocutivp Decernbers. Stickdng with this example, It is a common error for data triers to rni takeny Use January for their base and Decerrber for the. end period, resulting in an 11 month percentage change instead of a 12 rnon'th percentage change, (When a User Starts with January, they are overlooking price changes that occurred from December to,January.) Moving back to your request, the 12 month percentage change for the 12 months ended November 2009 would require comparing the November 2009 index to the November 2008 index. Sirriflarly, for the 1-2 months ended October 2009 one would need to use the October 2008 index for comparison, For clarity's sake, I have include the BLS index numbers and 1.2 month calculations for finished goods, both seasonally adjusted and not seasonally adjusted, for recent years. Please feel free to reply of cad if you have any questions. Data extracted on: September 15, 2010 (1:01:35 PM) Producer Price Index-Commodities Seasonaliv Adiusted Seasonally Adjusted Group: Stage of processing Item: Fin-.L goods Base Date: 198200 66vnioad,; Year ; Jan N4 far A 3-un Jul aF Aug Sep Oct Pyll pec 162,7. 164A 165.7: 166,5: 166.4 167.4:.165.9 167.21168.4,. 172.0 171,5;: 178:,81�-�:! 177.; 8 33:�173.9 5 2OO9;171.2 170.9 i 169.6: 1706. 170.6.: 173.7. 171,61174.1;173.3173.6176,2(R) 177l :9 1798(P) 379 3(P) J.17 R Rev[sed P Prefirnfnary.AH indexes are subject to revision four months after original publication. ........... .. . ..................... Series Td: ',4PSSOP3000 Seasonally Adjusted Group: stage of processing Item; Finished goods Base Date: 1�8200 Download: Year.Jan Feb Mar A No.v Dec. Annual ATTACHMENT 1 Series Id: WPSSOP3000 Seasonally Adjusted Group: Stage of processing :Item: Finished goods Base Date: 198200 Download. Year Jars Feb Mar Appy Sun Jul Aug Sep Oct Nov Dec Annum. _. ;20t17 Q.1 2.5 31 3.3 3.7; 32: 4.023 44 62 74 64; 69: 69 65 74 91 97 96 .$ 53 fl2' 12 Z Q9 -l.2'--1.7 -IS: 3.3,..,w-4.6.,...-4.3 6.6 4 1 4.8 -2.1'2 3(R)� 4.5 . .... . R Revised P : Preliminary,All indexes are subject to revision four months atter original publication. Not Seasonafl'� Adj sed .... .Series Id: WPUSOP3000 Not Seasonally Adjusted Group: Stage of processing ;Item: Finished goods Base nate: 1.98200. Download. Year;.Janeb f4iar A r May Jun Ju ; AuqSe 6 .,:. p Oct NIpv D AICCkII I' 21347' 160,1;161,8:164,1- 165.9; 167.5'. 167.2: 168.5.166.1 167.4`168.6 171,4::17014 16&6: 2008 '7M::f723:1751 175 5 179.6 182 4 185 11-1-82-2'162. Z 177 4 17 Cl iii$'$ 177 le cd� . 2049 170 4 169 169 1: 170.3 171.1; 174,3: 172.4:174.2..173.2 173,8 175 7(R) 176.0 172.5 201€2 3 78 Q 177 Q 1791A 179 R :RevIsed P Preliminary„ All indexes are subject to revision four months after original publication. Series id: BliSOP300© Not Seasonally Adjusted 'Groupr Stage of proce=ssing Item: Finished goods Base Date: :.98200 Download- Year; deb. htar Apr lay Jun Jul Aug:Sep 3an f ,Oct Nov Roc'Annual .. _... 2007: Q.1: 2,4 3.1 3.2 3.9? 3.3. 4.2: 2.3; 4.4j 5.1 7.3 6.2 3,9 24#38 74 55 fi7 64 703 901 99 97 18 52 (24'i Q9 63 2009 µ0.9 1,4 -3.4: 5 ,...-4.8 ,,. -4.4.'W.,--6.9 -4.4,-4.9 -2,0 22.(R). 43 ...r, -2,6' 204 ae( ) .2{P? R ;Revised P ; Pr�lirninary,All indexes are subject to revision four months after original publication, Joseph Kowal Producer price Inday, U,5. 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Skvice<Ald,�,szux.f Yet:s,ho<,n,3 i�+)aS r,<ta-ay£€p i its+a,:c,�ve s I2;€Sr_��t>:�r��Er .ittp;//data,bls,gov/PDQ/,servlet/Surve;y0titipu,tServie 3/8/2010 21 300 Gallon Hauler This 300 Gallon fully automated container is manufactured out of 0090' crosslinlc Haulers are 10096 Recyclable polyethylene resin croso ik or i.mu Polyethylene for superior strength, For trash, recycling or yard waste, the Hauler 300 can extend your customers' service options to another level. � m Alley Service f UIt _Farnily99 �� v u Ccammercial , 300 Gallon Haulers feature extra strong tinges,and a convenient hatch lid for easy lifting, Custom colors are available upon request. Special hot stamping and nameplates fpr company logo are also available (c@mera- � '- ready artwork required), Please call Roto Customer Service for details. is 1': Brawn Blue MD[ue Creon Black OEM Unit No, Description Height Width. Depth i Wheel Axle toad Rating Total Capacity RMHS35 35 Gil, Ung versal Cart i 37.00" 23.00" � 23.00°' � �10 5l8 lOG Ibs 35 foal.. RMHS60 60 Cal.Universal Cart 41.50" 27.00" 34.00" j 8 or 19 5/8" 150 lbs 64 Gal. RIVIHS70 70 Cal. FUlly-Auto,Cart 41 50" 27.0{7" 34,00" 801,10" 5f8" 150 lbs 71 Gal. RMH590 90 Gal.Universal Cart 45.50° i 31.00" j 37.00" 8,9 or 10" 513" 200 labs 98 Gal. RIAHSIGO `; 1,00 Gal, Ftt.11y-Auto,Cart 45,50" 31.00" 37,00" 8,901,10" 5/8" 200 figs 108 Coal. Rl1�lHS3D0 300 Gal. portly-Auto.Cart l 55.00" ; 35.25" ' 51,50" n/a n/a 1050 lbs 300 Gal, Nestable for shipping truckload guarnities. 9/7/2010 AGENDA REPORT D17 TO: Joe Tait, City Manage FROM: West Curry, Assistant Utilities Director SUBJECT: Consideration of Fifth Amendment to the Integrated Solid Waste Collection Agreement (CR&R, Inc.) RECOMMENDATION: By Motion, approve the Fifth Amendment to the Integrated Solid Waste Collection Franchise Agreement and Authorize the City Manager to Sign the Agreement. SUMMARY AND RECOMMENDATION In November 2000, CR&R asked the City to delay the implementation of the rate increases that were supposed to take place effective January 1, 2001 until July 1, 2001. The purpose of this request was to align their billing cycles with the regular fiscal year of public agencies, including the City (July 1 through June 30). The City considered the request, and realized that this request provided the residents and businesses with a 6 months saving on rate increases. This also makes all rate increases in the City to coincide because all of the City rate increases take effect July 1, coinciding with the City's fiscal year. Since 2001, CR&R has continued this practice of implementing rate adjustments on July 1. However, this action took place administratively. Thus, in order to make sure that the language in the franchise agreement matches current practice, staff is bringing forward this amendment to the franchise agreement, with the only modification to the franchise being the change from January 1 to July 1 with reference to the implementation of rate adjustments. The proposed amendment will modify the following of section 11 of the 1996 franchise agreement: "The annual increase shall be effective January 1 of each year." The amended language will read: "The annual increase shall be effective July 1 of each year." Staff recommends that the City Council by motion, approve the Fifth Amendment to the Integrated Solid Waste Collection Franchise Agreement, COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: NIA FINANCIAL CONSIDERATIONS: No impact Agenda Report September 7, 2010 Page 2 NOTIFICATION: CR&R, Inc. RECOMMENDATION. By motion, approve the Fifth Amendment to the Integrated Solid Waste Collection Franchise Agreement and authorize the City Manager to sign the Agreement. Respectfu bmfte , Prepared by, p ,r r West Curr %"`" � E, LEED(AP,CPSWQ, CPESC Curry Ziad Mazboud , Assistant ities Director Senior Civil Engineer Attachment(s): 1. Fifth Amendment to the Franchise Agreement FIFTH AMENDMENT TO INTEGRATED SOLID WASTE COLLECTION AGREEMENT THIS FIFTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT between the CITY OF SAN JUAN CAPISTRANO ("City„) and CR&R INCORPORATED, ("Contractor") is made and entered into, to be effective the 7th day of September, 2010, as follows: RECITALS WHEREAS, the City and Soiag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996 (the "Original Agreement")to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and WHEREAS, on February 5, 2002, Solag Disposal transferred and assigned the Original Agreement to Contractor, to which City consented; and WHEREAS, Section 11.A of the Original Agreement authorizes Contractor to automatic annual rate increases based on the Producer's Price Index (PPI) and on adjustments to Tipping Fees charged by the County to become effective January 1 of each year commencing on January 1, 2000; and WHEREAS, in order to align the effective date of adjustments with City's and Contractor's fiscal years, Contractor initially agreed to hold the automatic increases until July 1 of each year; and WHEREAS, City and Contractor desire to amend the terms of the Agreement to formalize and memorialize Contractor's agreement since the year 2000 to not implement the automatic increases until July 1 of each year. AMENDMENT NOW, THEREFORE, in consideration of the promises and mutual covenants contained therein, City and Contractor agree to amend Section 11.A of the Original Agreement to implement the automatic rate adjustments and annual increases to be effective July 1 of each year instead of January 1 of each year. All other provisions of the Original Agreement and existing Agreement as amended by the Second through Fourth Amendments shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS) 51h Amendment -1- Int. Solid Waste Collection Agreement ATTACHMENT 1 CITY OF SAN JUAN CAPISTRANO By: Mayor ATTEST: By: City Clerk APPROVED AS TO FORM: BY: City Attorney CONTRACTOR By: Name: Title: 5`h Amendment -2- Int. Solid Waste Collection Agreement L 32400 P E ,% _LA u t r� MEMSEM Or T14 T FtY COUNCIL SAS MIA PTSTRA +r QA.9267 LAURA FRELSE (949. 4934:053 rAX a.. s.: t rr 2 c t tra ray 17 ER_LOINDREs U80 NOTIFICATION OF MEETING OF POTENTIAL, INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 6:30 p.m. on Tuesday, September 7, 2010, in the City Council Chamber in City Hall, to consider: "Consideration of Fifth Amendment to the Integrated Solid Waste Collection Agreement (CR&R, Inc,)" — Item No, D17. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 12:00 p.m. on Tuesday, September 7, 2010, to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Ziad Mazboudi, PE, LEED AP, CPSWQ, CPESC, Senior Civil Engineer. You may contact that staff member at (949) 234-4413 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: cit clerk sanjuanca istrano.or . Maria Morris, CMC City Clerk cc: CR&R, Inc. San Juan Capistrano,, Pmer vin the Past to Bnhzirexs rh .Futum EXHEBIT B ( Solid WaSMAQUNfion R= Co= tion F-mmlij Basc RaW-Adjug= The Conn for shall be entitled to an annual increase of the base rate, not to exceed 4% per mimm us ft of the producers price index("PPI")for finished goo& pubIMM by the B of Labor Statistics on January I of each contract year commencjnL� ja�� 1 , , j.-_, r. -y 9Q'7 71v -ndexl for November 1 to October 31 shall be used. Dbpwdxam � t� AddifianaIllyr, Che J&Udfj"* fipp.-aghee- adjustment shall be a pro-riata pass through of any EEC- MIC - w ease 0�- decrease. IMe poup-d-s of reLhse C c ��X aff s on, thff ceamqn= 2� lgam; i --7s-nt rer-, 12"m, ,2,n!r i dl,-A ibs-t the --uzn--ax vaz-'aa-ze 09Lmn U,-, ,nv v 4, Y haw, ge ,-EkA t7 b,v tom-i Gi�,monm v Id VV -4, 4- Municode Page l of 1 Secy 1-2.07. -Violations of administrative provisions. The violation of any administrative provision of this Code by an officer or employee of the City may be deemed a failure to perform the duties or to observe the rules or regulations of the department,office, or board within the meaning of the rules and regulations of the City or of the civil service regulations of the City. http://Iibarary.municode.coag/-Print.asi)x?cli.entlD=l6607&HTMReoiie,.;t=hi-i-n InO/,,7P/n?flip qI�I?ntn Today's Date: gjz�p Transmittal Routing (Check All That Apply) ❑ City Attorney ❑� City Manager City Clerk CONTRACT TRA14SMITTAL Cit' No, (if any): Project Manager's Last Name: Phone E=xtension: Council or CRA Meeting Date (if applicable): APPROVING AUTHORITY: (Check One) 6 Mayor ❑ CRA Chair y Manager Provide (1) executed original contract for each signing party, including the City. If the agreement is to be recorded —only (1) original will be recorded with certified copies going to other parties. Please provide the mailing address of any party to receive an agreement — unless the mailing address is included within the body of the agreement: Names Street Cit St Zi f OTHER INSTRUCTIONS: 1,d�J'�'e� �. K^U1'I'"�'�ETC �"/U 1-�a� V,ZC_ee: �✓L[.'S-L�C/A 1 e—(z I i 7- Z WCS7stZOl /FV& 5 lh/v-?W, 64 110 6 V-� Form Date:€31-2004 D-7 32400 PASEO AD15LANTO fi Ar . MEMN RS OF THF Cr Y COUNCIL SAN JUAN CAPISTRANO,CA q28750 SAM 04LG WC3 (949) LAURAFREESE ( 9)493-1053 FAx511AMM TIAOMAS W.HMEAR www-ganju ancapistr ano.opg 776 MARK NIELSEN TO: CR&R Attn: Dean A.. Ruffridge, Senior Vice President 11292 Western Avenue Stanton, CA 90680 DATE: September 16, 2010 FROM: Christy Jakl, Deputy City Clerk (949) 443-6310 RE: Fifth Amendment to Integrated Solid Waste Collection Agreement Thank you for maintaining documentation confirming compliance with the terms of the agreement related to insurance. Please keep in mind this documentation must remain current with our office during the term of this agreement. If you have questions related to insurance requirements, please call me at (949) 443-6310. If you have questions concerning the agreement, please contact Ziad Mazboudi, Senior Civil Engineer at (949) 234-4413. An original agreement is enclosed for your records. Cc: Ziad Mazboudi, Senior Civil Engineer .fan Juan Capistrano Preserviing the Past tonhance the Future 4121/2009 AGENDA REPORT D8 TO: Dave Adams, City Manager FROM: Nasser Abbaszadeh, Public Works Director SUBJECT: Consideration of Fourth Amendment to the Integrated Solid Waste Collection Agreement (CR&R, Inc.) RECOMMENDATION: By Motion, approve the Fourth Amendment to the Integrated Solid Waste Collection Franchise Agreement and Authorize the City Manager to Sign the Agreement. SUMMARY AND RECOMMENDATION Staff approached CR&R to discuss possible options to reduce various financial impacts resulting from solid waste and opportunities to increase revenue to the City. Staff and CR&R representatives met and identified several options available to the City. Among the options identified in the proposed Fourth Amendment to the City's solid waste franchise agreement are: increasing the term of the franchise agreement to an automatic renewal with a five (5) year termination clause resulting in an increase in the City's franchise fee, acceptance of green waste from the City and its contractors, and offer additional programs to residents and businesses. Staff recommends that the City Council by motion, approve the Fourth Amendment to the Integrated Solid Waste Collection Franchise Agreement. BACKGROUND: The City of San Juan Capistrano and Solag Disposal, currently CR&R entered into a Franchise agreement on December 17, 1996 to provide exclusive collection, transportation, recycling, composting and disposal of all solid waste within the City. There were three previous amendments to the original franchise agreement: 1. February 5, 2002, transferring the exclusive franchise to CR&R Inc. 2. October 1, 2002, establishing new services and rates. 3. August 19, 2003, to comply with Rule 1193 of the South Coast Air Quality Management District, to replace CR&R's entire fleet with alternative fuel vehicles that comply with the Rule. CR&R received an extension of the term to depreciate the additional cost incurred, without cost increases to rate payers. Over the past six years, staff have been working very closely with CR&R to provide residents and businesses with programs that would help comply with AB939 50% diversion Agenda Report April 21, 2009 Page 2 requirement. The City's diversion rate was 39% in 2000, and officially 64% in 2006. All these new programs since have increased the diversion rate even more. CR&R has recently entered with the County into an agreement to construct and operate a Mixed Refuse Facility (MRF) at the Prima Deschecha Landfill. This facility will help reduce the amount of self haulers' waste that eaters the landfill as it will offer a reduced rate to the self haulers and encourage them to divert their waste. The City has always suffered receiving waste numbers disposed of at`the landfill, claiming to be from the City, and these numbers count against the City when calculating diversion rates. Staff and CR&R are continuously trying to identify new programs that will help increase the diversion in order to increase the life of the local landfill, to meet current diversion requirements and in anticipation of new regulations that would increase the diversion mandate. In addition, this is part of the City's goal of Zero Waste. CR&R has been a very cooperative partner in this process and has been assisting and supporting programs initiated by the City or jointly with CR&R, and with neighboring cities. When Council asked staff to identify possible cuts, savings or potential revenues, staff approached CR&R with discussion of some possible opportunities. The attached amendment presents some of the options available to the City, with the potential benefits/ savings and revenues: 1. Extending the term of the current Franchise agreement to an automatic renewal with a five (5) year termination clause. This item will not result in any increase of rates to customers, but will increase the City's Franchise fee from 5% of Net receipts to 5% of Gross receipts. This is equivalent to about $50,000 a year increase in Franchise fee revenue. 2. CR&R will accept green waste from the City at no fee if delivered to their facility on Ortega Highway. The City currently takes all green waste to Tierra Verde facility, located on La Pata, before the landfill. The Tierra Verde facility accepts green waste at the rate of $38 per Ton. The City generates green waste from landscaping maintenance and from street sweeping collection. The City generates about 700 Tons a year of green waste. This item is equivalent to $30,400 a year of reduced cost to the general fund. This item will not impact or have any cost increase to rate payers. 3. There are definitions of new terms that the State has identified and not previously described in the Franchise agreement. 4. The City has been partnering with Goodwill of Orange County and offering E- Waste collection events throughout the year. Some residents have asked for a home. pick up service. Staff does not see a need for such service citywide as there is a Hazardous Waste Collection Facility located at the landfill and the City provides collection events regularly. However, the City asked CR&R if they would offer to residents wishing to have this service and pay for it independently from their regular trash collection rate. CR&R will offer a voluntary pick up of Universal Waste, Household Hazardous Waste or Sharps for a set fee. The current proposed fee is $75. Agenda Report April 21, 2009 Page 3 5. The City has been discussing with CR&R the possibility of developing a food composting program to deal with the waste generated from food facilities. CR&R offers the program in this amendment so that when processing facilities are available, the City can take advantage of this program. There is no rate set for this program at this time, but in the event that processing facilities are available, the City will negotiate the rates with CR&R. 6. Exhibit E has been modified to remove manure from special waste. Since the adoption of the original Franchise agreement, CR&R has been providing the collection and diversion of manure from the landfill. Staff is also providing a solid waste survey completed by HF&H Consultants to this agenda report, reflecting that the City's residential solid waste rate is the 16th lowest in the County, and the Stn lowest for commercial facilities. The. City and CR&R continue to work to provide the most cost effective and professional waste collection and recycling service at reasonable rates. COMM ISS 10NtBOARD REVIEW AND RECOMMENDATIONS: NIA FINANCIAL CONSIDERATIONS: The proposed amendment will result in an increase in General fund due to the increase in franchise fee collected of about $50,000 per year. In addition, the proposed amendment will result in a reduction in general fund expenses to pay for the disposal of green waste from landscaping services and street sweeping. This reduction equates to about 800 Tons x $38 = $30,400. NOTIFICATION: CR&R, Inc. RECOMMENDATION: By Motion, approve the Fourth Amendment to the Integrated Solid Waste Collection Franchise Agreement and Authorize the City Manager to Sign the Agreement. Respectfully submitted, Prepared by, Nasser Abbaszadeh, PE Ziad Mazboudi, PE, CPSWQ, CPESC Public Works Director Senior Civil Engineer Attachment(s): 1. Fourth Amendment to the Franchise Agreement, Exhibit E, Countywide solid waste rates survey FOURTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Fourth Amendment to the Integrated Solid Waste Collection Agreement (this "Agreement") is made and entered into this 21st day of April, 2009, by and between the City of San Juan Capistrano (the "City„) and CR&R Incorporated (the "Contractor"); collectively referred to as the "Parties". RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive Franchise to CR&R Incorporated; and, WHEREAS, a Second Amendment was entered into on October 1 , 2002, establishing new services and rates; and WHEREAS, a Third Amendment was entered into on August 19, 2003 by CR&R Incorporated for purposes to comply with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002, to be alternate fuel powered. Contractor replaced its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule. Contractor received an extension to the Term of the Franchise Agreement, to enable Contractor to depreciate some of the additional costs it incurred as the result of said replacement, without cost increases to the rate payer. WHEREAS, the Third Amendment also identified that space constraints are a barrier to a successful commercial recycling program, the City and its Contractor desired to offer mixed-waste recycling services as an option; and WHEREAS, CR&R hereby represents that it desires a longer term Agreement in order to facilitate the design and relocation of it's South Orange County solid waste operations center and to develop, permit, and construct a Material Recovery Facility(MRF) .to facilitate recycling options for the City and south Orange County municipalities and thereby depreciate its investment over a longer period of time; and WHEREAS, CR&R and the City of San Juan Capistrano also wish to adjust Franchise Fee payments from the established rate schedules without any rate impact to customers. 1 ATTACHMENT 'I NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms, covenants, and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. DEFINITIONS The following Definitions are hereby added to the Franchise Agreement: E. Universal Waste. Universal Waste shall mean those hazardous wastes identified as universal wastes in Section 66261.9 of Title 22 of the California Code of Regulations, including but not limited to: fluorescent bulbs and tubes; household batteries (e.g. D. AA, button-type, etc.); non-empty aerosol cans; electronic devices (e.g. televisions, computer monitors, cell phones, radios, video cassette recorders, etc.); and mercury containing devices (e.g. thermometers, thermostats, gauges, etc), and generated by a single family or multi-family residence. "Universal Waste"does not include any waste generated in the course of operating a business concern at a residence or business generated waste. F. Household Sharps Waste. "Household Sharps Waste" shall mean home- generated sharps, as defined in Section 117671 of Title 22 of the California Code of Regulations, including hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications, which are generated by a single family or multifamily residence. "Household Sharps Waste" does not include any waste generated in the course of operating a business concern at a residence, business generated waste, or medical waste not described herein. G. Household Hazardous Waste. "Household Hazardous Waste" shall mean any hazardous waste generated by a single family or multifamily residence, including but not limited to: automobile maintenance and repair products (e.g. motor oil, oil filters, antifreeze; lead-acid batteries, brake fluid, etc.); lawn and garden chemicals (e.g. pesticides, herbicides, fungicides, etc.); cleaning products (e.g. bathroom cleaners, drain cleaners, chlorine bleach, solvents, oven cleaners, etc.); and home improvement supplies (e.g. stains, paints, varnish, paint thinners, chemical strippers, glue, pool chemicals, etc.). "Household Hazardous Waste" does not include any waste generated in the course of operating a business concern at a residence or business generated waste. SECTION 2, Section 5, of the Original Agreement entitled "Term:Extensions"and Section 1 of the Third Amendment to the Integrated Solid Waste Collection Agreement shall be amended to extend the Term of the Agreement as following: The current Term of this Agreement expires on July 1, 2014. Concurrently to the above, on July 1, 2014 the Term of this Agreement shall automatically extend (without further action by the Parties) to July 1, 2019. On July 1, 2016, and on July 2 1 of each subsequent year unless a Party has provided a notice of nonrenewal as provided below, the Term of the Agreement shall be extended (without further action by the Parties) for an additional year (the "Automatic Renewal") so that the remaining term of the Agreement shall remain at a minimum of five (5) years. Either Party may give the other Party written notice of termination of the Automatic Renewal in December of any year prior to the July 1 automatic renewal date. Provided that notice is received by either Party of any given year, no further Automatic Renewals shall occur in that year or any further year during the term of this Agreement, and this Agreement shall remain in effect only for its remaining term, taking into account the previous year's Automatic Renewal. In no case shall the remaining term be less than five (5) years. The intent of this paragraph is that if notice of termination of the Automatic Renewal is provided, this Agreement shall expire on July 1 no less than five years later. Nothing in this section shall be construed as limiting City's right to terminate this Agreement for cause pursuant to Section 17 of the original Agreement. SECTION 3. Section 6, Services Provided By Contractor. E. Additional Services. (New) (5). Contractor .shall provide free disposal and processing from direct delivery to Contractor's south Orange County Materials Recovery Facility from City owned and operated vehicles, or authorized contracted vehicles containing waste generated from within the City limits. As examples, City may deliver green waste or tree trimmings to Contractor's facility from City authorized public works operations, as well as street sweeping debris from City contracted services. Said wastes shall be limited to 800 tons per year at no charge to the City. Contractor reserves the right to reject loads or charge for processing should current local, state or federal regulations change that may increase fees, rates or eventual uses of these materials. Should use of these materials in the future not be allowed as alternative daily cover at. local landfills at the current no charge rate, Contractor and City agree to negotiate in good faith an alternative use and corresponding cost of diversion or reimbursement to Contractor for end costs of these materials. SECTION 4. Section 12 of the Original Agreement entitled, "FRANCHISE FEES" shall be amended to redefine the term "Gross Receipts", below: As used herein "Gross Receipts" shall include all fees, charges and revenues received by Contractor, and its affiliates and subsidiaries, if any, arising from or attributable to operation of this franchise. Beginning with the effective date of this Amendment, Gross Revenues include those revenues received by Contractor attributable to landfill, material processing and composting tipping fees. Gross Receipts does not include revenues derived from the Contractor's sale of materials or the receipt of governmental funding. 3 SECTION 5. EXHIBIT A of the original Agreement shall include the following additional approved charges: 1. Delinquent or Late l=ees as prescribed shall be $10.00 per billing period. 2. Collection of Universal Wastes, Household Hazardous Wastes, or Household Sharps Waste shall be a flat $75.00 per collection subject to limitations and procedures agreed upon with the Parties. This fee is only quoted and provided to customers requesting this specialized door-side service. 3. Roll-Off Rate: The noted "Actual Landfill fee" shall include applicable "or other processing facility fee, based upon direction of the City" SECTION 6. EXHIBIT C is revised with the following added items: G. At a time when processing facilities are available, the Contractor shall implement, at no charge to the City, an Organic Waste collection and recycling program for restaurants, resorts, country clubs and golf courses, grocery stores, special events and other appropriate participants. City may authorize phase implementation of the program. Contractor shall provide participating Customers with Containers or Bins as necessary for the segregation and storage of Organic Waste to be recycled. Contractor shall, at its sole expense, prepare, produce, and distribute professional, well formatted educational materials to participants in the designated Organic Material program. Contractor shall record the tons collected, number of routes, productivity, number of stops, number of participating Customers, labor hours, costs and other pertinent data, as may be required by City, in a format approved by City. City may require submission of additional information from Contractor as necessary or desirable in order to evaluate the productivity, cost, benefits and potential diversion opportunity of the program and to report data to state and federal agencies. Organic Waste collected by Contractor shall be delivered to a permitted facility for recycling and composting. Once the necessary data is collected and reviewed, Parties agree to negotiate in good faith applicable rates to be charged to Customers to cover Contractor's costs to implement, operate, and sustain the program allowing reasonable financial margins approved by both Parties. H. Commencing on October 1, 2009, CONTRACTOR shall provide an optional service to all Single Family and Multi-family Residential customers door-side collection of Universal Waste, Household Hazardous Wastes and Household Sharps Wastes ("Special Wastes"). These Special Wastes shall be collected in separate vehicles from other Solid Waste, and shall be processed at a facility separate from any Solid Waste processing or disposal facility. Special Wastes shall be processed to as to recycle, re-use, and otherwise divert from disposal facilities these materials to the greatest extent practical. To the extent that 4 Special Wastes are disposed of, they shall be disposed of in compliance with all applicable laws and regulations. Residential customers wishing to dispose of Special Wastes shall call a toll-free number to be provided by Contractor to request pickup of these items, and shall otherwise comply with such requirements and procedures for this program as may be agreed upon by City and Contractor. City and Contractor shall mutually agree to a minimum and a maximum threshold of Special Wastes collected per customer collection for the various types of Special Wastes, for the approved rate in Exhibit A. Any resident ordering this service shall be directly responsible for paying the service fee listed in Exhibit A as amended herein and as annually adjusted. There shall be no limit on the number of pickups of these items a residential customer may request. City and Contractor agree to review Special Waste rates and costs prior to each annual rate adjustment to determine costs and participation of the program. SECTION 7. Section 28. of the Original Agreement entitled "General Provisions" is amended to read as: J. Notices. To Contractor: CR&R Incorporated P.O. Box 1100 San Juan Capistrano, California 92693 Attn: Senior Vice President Telephone: 877-7280446 Telecopier: 714-890.6347 To Contractor (copy): CR&R Incorporated P.O. Box 125 Stanton Stanton, California 90680 Attn: Dean A. Ruffridge Senior Vice President Telephone: 877.728.0446 SECTION 8. All other terms and conditions of the Original Agreement dated December 17, 1996, and as amended by the First Amendment dated February 15, 2002,the Second Amendment dated October 1, 2002, and the Third Amendment dated August 19. 2003 shall remain in full force and effect. Changes incorporated herein to the original Agreement or any of the Amendments preceding shall become effective on July 1, 2009, SECTION 9. The invalidity or.unenforceability of any provision or covenant contained in this Amendment shall not affect the validity or enforceability of any other provision or covenant herein contained and any such invalid provision or covenant shall be deemed to be severable. 5 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San Juan Capistrano CR&R Incorporated Dave Adams, City Manager Dean A. Ruffridge,18eni Vice President ATTEST: Margaret R. Monahan, City Clerk Approved as to Form: JO 44 A Omar San oval, City Attorney s Integrated Solid Waste Collection Agreement EXHIBIT E Special Wastes Flammable waste Containerized waste (e.g., a drum, barrel, portable tank, box, pail, etc.) Waste transported in a bulk tanker Liquid waste Sewage sludge Waste from a pollution control process Residue and debris from the cleanup of a spill or release of chemical substances, commercial products or any other special wastes. Contaminated soil, waste, residue, debris, and articles from t he cleanup of a site of facility formerly used for the generation, storage, treatment, recycling, reclamation, or disposal of any other special wastes. Dead animals Waste water Explosive substances Radioactive materials Materials which have been exposed to highly infectious or contagious diseases Hazardous materials (unless contracted) Revised 2009 ,g 5 '1AM '111 10 JUAN CAPMURANO,CA 11 -A MN, t 41,414, 03-1171 177 :se NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of Sart Juan Capistrano will meet at 6:30 p.m. on Tuesday, April 21, 2009 in the City Council Chamber in City Hall, to consider: "Consideration of Fourth Amendment to the Integrated Solid Waste Collection Agreement (CR&R, Inc)" T Item No. D8. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, April 20, 2009 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at time staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Ziad Mazboudi, PE, CPSWQ, CPESC, Senior Civil Engineer. You may contact that staff member at (949) 234- 4413 with any questions. Time agenda, including agenda reports, is available to you on our web site: www.sanjuancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: cityclerk(-a)sanivanca„pistrano.orq. Meg Monahan, MMC City Clerk cc: CR&R, Inc MEMBERS OF THE CITY COUNCIL 32400 PASE0 AIDE LANTO SAKE JUAN CAPISTRANO,CA 92675 (349)493-1171 SAM ALLEVATO 1343943 105 E°AX o AE6APARAtEA LAURA f ttSN#A � THOMAS W.HR$BAR www.sanjuaneopistrano.org, 1776 MARK NIELSEN ® DR.LONDRES USO T RA'i1 N V M.1 TTAL TO: CR&R Incorporated Attn: Senior Vice President P.O. Box 1100 San Juan Capistrano, CA 92693 DATE: April 22, 2009 FROM: Christy Ja 1, Administrative Specialist (949) 443-6310 RE: Fourth Amendment to the Integrated Solid Waste Collection Agreement Enclosed: (1) original, executed Fourth Amendment to the integrated Solid Waste Collection Agreement If you have questions concerning the agreement, please contact Ziad Mazboudi, Senior Civil Engineer at (949) 234-4413 Cc: Ziad Mazboudi, Senior Civil Engineer; CR&R Incorporated, Stanton San Juan Capistrano: Preserving the Past to Enhance the Future Pnnted on 100%recycled paper 32400 PASEO ADELANTO ii MEMBERS OF THE C€TY COUNCIL SAN JUAN CAPISTRANO,CA 92675 - iii' � (949)493-1171 SAM ALLEVATO l�coerea rro (949)493-1053 FAX " LAURA FREESE Is€aellsxEn t96i THOMAS W.HRIBAR www.sanj uancapislrano.org 6776 MARK NIELSEN ® ® DR.LONDRES USO • TR!^ NSIM—I 1 I AL TO: CR&R Incorporated Attn: Senior Vice President P.O. Box 1100 San Juan Capistrano, CA 92693 DATE; April 27, 20.09 FROM: Maria Morris, Deputy City Clerk (949) 443-6309 RE: REVISED - Fourth Amendment to the Integrated Solid Waste Collection Agreement Please disregard the agreement previously sent on April 22, 2009. The enclosed agreement has the changes that took place at the City Council meeting of April 21, 2009. The changes are in page 3 and 4, please keep the original signature page sent on April 22, 2009. If you have questions concerning the agreement, please contact Ziad Mazboudi, Senior Civil Engineer at (949) 234-4413. Cc: Ziad Mazboudi, Senior Civil Engineer; CR&R Incorporated Stanton Sara Juan Capistrano: Presen)ing the Past to Enhance the Future Prnfec4 on 900%recycled paper k � d 4 32400 PASEO ADELANTO %( , MEMBERS OF THE CITY COUNCIL SAN.JUAN CAPISTRANO,CA 92675 J%! (9469)1493.1171 - SAMA[LAURA FREESREESE (949)493-1059 FAX ® II ECPPa APTfa www san uanca lslran ' .O.Or fstfl MOD THOMAS W.HRIBAR 1 76 MARK NIELSEN ® DR.LONDRES USO ® m TRANSMITTAL TO: CR&R Incorporated Attn: Senior Vice President P.O. Box 1100 San Juan Capistrano, CA 92693 DATE: April 27, 2009 FROM: Maria Morris, Deputy City Clerk (949) 443-6309 RE: REVISE® - Fourth Amendment to the Integrated Solid Waste Collection Agreement Please disregard the agreement previously sent on April 22, 2009. The enclosed agreement has the changes that tools place at the City Council meeting of April 21, 2009. If you have questions concerning the agreement, please contact Ziad Mazboudi, Senior Civil Engineer at (949) 234-4413. Cc: Ziad Mazboudi, Senior Civil Engineer, CR&R. Incorporated Stanton Sari ,duan Capistrano: Preserving the Fast to Enhance the Future Printed on 100 reCYCled paper 1 J 8119/2003 AGENDA ITEM G I c TO. Pam Gibson, Interim City Manager FROM: Douglas Dumhart, Principal Management Analyst SUBJECT: Consideration of Third Amendment to the Integrated Solid Waste Collection Agreement - CR&R, Inc. RECOMMENDATION: By Motion, approve the Third Amendment to the Integrated Solid Waste Collection Agreement and authorize the Mayor to execute the Amendment. SUMMARY: CR&R Incorporated, (CR&R), the City's franchised solid waste collection contractor, has requested consideration of an amendment to the existing Agreement to extend the term limit to July 1, 2014, (an additional 7.5 years). CR&R's request for a 7.5 year extension involves its need to purchase replacement refuse collection vehicles under the new regulations promulgated by the South Coast Air Quality Management District (AQMD). Under Rule 1193, any refuse collection vehicle purchased after July 1, 2002, must comply with the alternative fuel requirements, either Liquid Natural Gas (LNG) or Compressed Natural Gas (CNG). Rule 1193 has been provided as Attachment 1 to this report Currently, there is no infrastructure for LNG or CNG in the local servicing area. This means, CR&R will need to fund the construction of an alternative fueling station, in this case a CNG station, in addition to the purchasing of alternate fuel vehicles. CR&R has indicated that its fleet of refuse collection vehicles has approached time for replacement. They have deferred replacement of some fleet vehicles since 2002 because of the new regulatory requirements from AQMD. CR&R can no longer postpone replacement practices and has no choice but to invest in the new, and considerably more expensive, alternative fuel technology. Staff recognizes CR&R's need to secure financing for this capital expenditure and, to that end, amortize this debt. The Integrated Solid Waste Collection agreement provides that, "Contractor shall also be entitled to rate increases in an amount equal to the Contractor's extraordinary increases in its cost of collection." The unfunded mandate by AQMD to replace vehicles with alternative fuels would constitute an extraordinary increase in the cost of collection. CR&R has secured an AQMD grant to partially assist with the construction of a new fueling station and replacing vehicles. Combined with a term extension to CR&R's contract the San Juan Capistrano ratepayers can avoid a rate increase. Staff supports the request for term extension, and recommends the City POP CITY COUNCIL Ash® Agenda Item 2 August 19,2003 term extension to CR&R's contract the Sart Juan Capistrano ratepayers can avoid a rate increase. Staff supports the request for term extension, and recommends the City take the opportunity at the same time to address the need for additional commercial recycling services. Expanded Commercial Recycling Services The City and CR&R have been on a citywide effort to establish commercial recycling programs, Our SB1066 Time Extension targeted 362 commercial accounts for recycling. Together we have been contacting businesses since the Time Extension was filed 18 months ago. In those 18 months, only 51 accounts have added recycling services. We are finding many impediments to implementing commercial recycling. Most notably, are space constraints. Almost all existing commercial trash enclosures are constructed just large enough to fit a single dumpster. Many businesses pay a premium for their lease space and are not willing to store recyclable material internally. To be effective with commercial recycling, the City and CR&R will need to offer creative solutions. This includes offering residential barrel service and mixed waste processing (hauling trash to the recycling plant for separating) as commercial recycling options. We have modified Exhibits `A' and 'B' of the Original Agreement to reflect these expanded commercial recycling options. At this time, staff is recommending approval of the Third Amendment to the Integrated Solid Waste Collection Agreement. BOARDS ! COMMISSION REVIEW: N/A FINANCIAL CONSIDERATIONS: Approval of the Term Extension will result in no rate increase to San Juan Capistrano ratepayers. The additional commercial recycling services contained in the amended Exhibits `A' and B' will represent cost increases for commercial accounts that do not already have recycling services; however, the number and types of commercial recycling services offered will permit businesses to tailor services to match their needs. This in turn, should control some of the cost increases associated with recycling. NOTIFICATION: *CR&R, Inc. C:\DOUGLASIAGENDAS\08-19 3rd Amendment to Solid Waste Agmt.doc Agenda Item 3 August 19,2003 ALTERNATIVE ACTIONS: 1. By Motion, approve the Third Amendment to the Integrated Solid Waste Collection Agreement and authorize the Mayor to execute the Amendment. 2. By Motion, approve the Third Amendment to the Integrated Solid Waste Collection Agreement subject to modifications and authorize the Mayor to execute the Amendment. 3. By Motion, deny the request for the Third Amendment to extend the Term of the Integrated Solid Waste Collection Agreement. RECOMMENDATION: By Motion, approve the Third Amendment to the Integrated Solid Waste Collection Agreement and authorize the Mayor to execute. T ctfully Submitted, �a/'� Douglas D. Dumhart Principal Management Analyst Attachment: 1: AQMD Rule 1193 2: Third Amendment C:1DOUGLASIAGENDAS108-19 3rd Amendment to Solid Waste Agrmt.doc Rule 1193 - Clean On-Read Residential and Commercial Refuse Collection Vehicles Page 1 of 4 i South Coast Air Quality Management District (Adopted June 16,2000) (Amended June 7,2002)(Amended June 6,2003) RULE 1193. CLEAN ON-ROAD RESIDENTIAL AND COMMERCIAL REFUSE COLLECTION VEHICLES (a) Purpose For solid waste collection fleets operating in the South Coast Air Quality Management District (District), this rule requires public and private solid waste collection fleet operators to acquire alternative-fuel refuse collection heavy-duty vehicles when procuring or leasing these vehicles to reduce air toxic and criteria pollutant emissions. (b) Applicability `Phis rule applies to government agencies and private entities that operate solid waste collection fleets with 15 or more solid waste collection vehicles. This rule shall not apply to vehicles or services pursuant to paragraph(e). (c) Definitions For purposes of this rule,the following definitions shall apply: (1) ALTERNATIVE-FUEL HEAVY-DUTY VEHICLE means a heavy-duty vehicle or engine that uses compressed or liquefied natural gas, liquefied petroleum gas, methanol, electricity,fuel cells,or other advanced technologies that do not rely on diesel fuel. (2) APPROVED CONTROL DEVICE(s) is an exhaust control device(s) that is verified or certified by GARB to reduce particulate matter and possibly other precursor emissions. For the purposes of this rule, a new heavy-duty vehicle equipped with approved control devices means that the engine family has been certified by GARB. A pre-owned heavy- duty vehicle equipped with. approved control devices means that the device has been verified or certified by GARB. To be considered fitted with an approved control device (s), all diesel exhaust from the vehicle must be vented through such a device(s)that has been fitted at the time of vehicle purchase or fitted by a certified device installer at the time the device is delivered to the operator. (3) DUAL,-FUEL HEAVY-DUTY VEHICLE; means a heavy-duty vehicle equipped with a diesel engine that uses an alternative fuel (such as compressed or liquefied natural gas, liquefied petroleum gas, methanol, or other advanced technologies) in combination with. diesel fuel to enable compression ignition. A dual-fuel engine typically uses the ATTACHMENT 1 htt-o://www.acimd.aov/rules/iltml/rl 193.html 7/150..003 Rule 1193 - Clean On-Road Residential and Commercial Refuse Collection Vehicles Page 2 of 4 alternative fuel to supply 85 percent of the total engine fuel requirement on a BTU basis. A dual-fuel engine must be certified by CARB to meet an applicable optional nitrogen oxide or combined nitrogen oxide plus non-methane hydrocarbons exhaust emission standard and be fitted with an approved control device that achieves a particulate matter emissions reduction level no less than the particulate matter emissions reduction level achieved by the latest CARB verified or certified particulate matter control device for the applicable engine family operating entirely on diesel fuel. (4) HEAVY-DUTY VEHICLE means any vehicle having a gross vehicle weight of at least 14,000 pounds. (5) PILOT IGNITION HEAVY-DUTY VEHICLE means a heavy-duty vehicle equipped with an engine designed to operate using an alternative fuel as defined in paragraph (c) (1), except that diesel fuel is used for pilot ignition at an average ratio of no more than one part diesel fuel to ten parts total fuel on an energy equivalent basis. The engine shall not operate or idle solely on diesel fuel at any time. (6) PUBLIC OR PRIVATE SOLID WASTE COLLECTION FLEET OPERA'T'OR is a person who owns, leases, or operates substantially in the District, solid waste collection, rolloff, or transfer vehicles. A person is a federal, state, county, or city government department or agency; special district such as a sanitation or water district; individual firm; limited liability company; association; partnership; corporation or any other entity that collects,transports,or transfers solid waste,yard waste,or recyclable materials. (7) ROLLOFF VEHICLE means any heavy-duty vehicle used for the express purpose of transporting waste containers such as open boxes or compactors. (8) SOLID WASTE means all putrescible and nonputrescible solid, and semisolid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes. Solid waste does not include hazardous waste, radioactive waste,or medical waste as defined in Section 40191(b)of the Public Resources Code. (9) SOLID WASTE COLLECTION VEHICLE means any heavy-duty vehicle used for the express purpose of collecting solid waste, yard waste, or recyclable materials from residential or commercial establishments. A solid waste collection vehicle is a vehicle having the capability to collect solid waste using, either manual or automated, front, side or rear.loaders and generally operates on fixed routes. (10) TRANSFER VEHICLE means any heavy-duty vehicle used for the express purpose of transferring solid waste. A transfer vehicle is usually a tractor/trailer combination where the trailer is loaded at a processing or transfer station. (11) VEHICLE means any self-propelled, motorized device that is permitted to operate on public roads through Department of Motor Vehicle registration or the federal http://www.agmd.lzov/rules/html/rl 193.html 7/15/2003 Rule 1193 - Clean On-Road Residential and Commercial Refuse Collection Vehicles Page 3 of government. (d) Fleet Requirements (1) Beginning July 1, 2001, for public and private solid waste collection fleet operators of 50 or more solid waste collection vehicles; and beginning July 1, 2002, for public and private solid waste collection. fleet operators of 15 or more solid waste collection vehicles, or a combined total of 15 or more rolloff, transfer, or solid waste collection vehicles, all additions to an existing fleet, or formation of a new fleet, of solid waste collection vehicles shall be by purchase or lease of (A) alternative-fuel or pilot ignition heavy-duty vehicles when adding or replacing solid waste collection vehicles to their vehicle fleet;or (B) Prior to July 1, 200 4, dual-fuel heavy-duty vehicles when adding or replacing solid waste collection vehicles (2) Beginning July 1, 2001, for public and private solid waste collection fleet operators with a combined total of 15 or more transfer or rolloff vehicles, all additions to an existing fleet, or formation of a new fleet, of transfer or rolloff vehicles shall be by purchase or lease of alternative-fuel, pilot ignition, or dual-fuel heavy-duty vehicles when adding or replacing transfer or rolloff vehicles (e) Exemptions The provisions of this rule shall not apply to the following: (1) No more than ten evaluation/test vehicles per fleet, provided by or operated by vehicle manufacturer for testing or evaluation,exclusively, (2) Heavy-duty vehicles not used for the express purpose of collecting solid waste from residential or commercial establishments or transferring of solid waste from a waste transfer station to a landfill. (3) Upon demonstration to the Executive Officer, any solid waste collection vehicles as required pursuant to paragraph (d) for which no alternative-fuel engine and chassis configuration is available commercially or could be used. (4) Any vehicle added to or replacing a vehicle in an existing fleet after the applicable implementation date of this rule, as specified in subdivision (d), as long as the purchase contract for acquisition of such vehicle is signed before the date of adoption of this rule. This exemption does not apply to the execution of options to acquire vehicles where the option is executedafter the date of adoption of this rule and where vehicle delivery does not occur until after the applicable implementation date as specified in subdivision(d). (5) Persons subject to this rule who are unable to comply may apply for a variance with the SCAQMD Hearing Board. (See SCAQMD Regulation V and California Health and Safety Code Sections 42350 through 42372 for information regarding variances.) http://www.agmd.gov/rules/html/rl 193.html 7/15/2003 Rule 1193 - Clean Ort-Road Residential and Commercial Refuse Collection Vehicles Page 4 of 4 (6) Upon demonstration to the Executive Officer that all existing solid waste collection vehicles equipped with 1995 andsubsequent model year diesel engines in the fleet, have been equipped with approved control devices, a fleet operator may purchase dual-fuel or vehicles pursuant to subparagraph(d)(1)(B)until July 1,2005. (f) Compliance Auditing and Enforcement (1) The fleet operator shall provide at the request of the District any files and/or records created to comply with subdivision(d)including fleet-specific information, such as a list of official DMV registrations, manufacturer, model-year, model, engine family number, fuel type, and fuel usage of each fleet vehicle, The fleet operator shall keep all required records for a minimum of two years. (2) Any fleet operator seeking an exemption under subdivision (e) shall supply proof that their vehicle or fleet is exempted from this rule when requested by the District. (3) No later than.July 1,2001,any fleet operator with 15 or more, but fewer than 50 vehicles subject to paragraph (d)(1) shall submit a letter to the Executive Officer outlining the intended source of alternative fuel to be used for compliance purposes. (g) Severability If any provision of this rule is held by judicial order to be invalid, or invalid or inapplicable to any person or circumstance, such order shall not affect the validity of the remainder of this rule,or the validity or applicability of such provision to other persons or circumstances. In the event any of the exceptions to this rule is held by judicial order to be invalid, the persons or circumstances covered by the exception shall instead be required to comply with the remainder of this rule. AOMD_Horne Page This page updated:July 10, 2003 URL: http:blwww.agmd.govlruleslhtmllr1193.htm1 http://www.aqmd.gov/rules/htmi/rl 193.html 7115/2003 THIRD AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Third Amendment to the Integrated Solid Waste Collection Agreement (this "Agreement") is made and entered into this day of , 2003, by and between the City of San Juan Capistrano (the "City") and CR&R Incorporated (the "Contractor"). RECITALS WHEREAS, the City of San Juan Capistrano and Solag Disposal entered into that certain Integrated Solid Waste Collection Agreement, dated December 17, 1996, (hereinafter "Original Agreement") to provide for the exclusive collection, transportation, recycling, composting, and disposal of all solid waste within the City; and, WHEREAS, a First Amendment was entered into on February 5, 2002, by Solag Disposal Company and the City to transfer and assign this exclusive franchise to CR&R Incorporated; and, WHEREAS, a Second Amendment was entered into on October 1, 2002, establishing new services and rates; and WHEREAS, CR&R Incorporated has represented to the City that, for purposes of complying with Rule 1193 of the South Coast Air Quality Management District, which requires all refuse collection vehicles purchased after July 1, 2002, to be alternate fuel powered, it intends to replace its entire fleet of commercial and residential refuse collection vehicles with vehicles that comply with the Rule by July 1, 2004. Contractor has requested an extension to the Term of the Franchise Agreement, to enable Contractor to depreciate some of the additional costs it will incur as the result of said replacement, without cost increases to the rate payer. WHEREAS, it has been identified that space constraints are a barrier to a successful commercial recycling program,the City and its Contractor desire to offer mixed- waste recycling services as an option. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the terms, covenants,and conditions set forth in this Amendment, the Parties hereby agree as follows: SECTION 1. Section 5, of the Original Agreement entitled "Term: Extensions" shall be amended to extend the term of the Original Agreement for an additional seven years and six months to expire July 1, 2014. SJC Third Amendment 7/15/2003 1 ATTACHMENT 2 SECTION 2. Section 8 (A)of the Original Agreement entitled, "Minimum Standards for Equipment and Maintenance" shall be amended to add Paragraph (16.), below: (A). (16). Collection Vehicles Contractor warrants that as of July 1, 2004, all residential and commercial collection vehicles servicing the contract area depicted in Exhibit F will be new alternate fuel powered in accordance with the standards of the South Coast Air Quality Management District. Other vehicles including roll-off, support, repair, bin delivery, etc, may continue with fuels as approved by the District, but must be compliant with Title 13, CCR, Section 2021.2, as of December 31, 2004, and may be replaced with alternate fuels vehicles at the discretion of the Contractor. SECTION 3. Section 10 of the Original Agreement entitled, "System and Services Review" is amended to add Paragraph (E) below: (E.) Contractor shall provide all information necessary, in a form acceptable to the City, to submit annual reports to the Air Resources Board's Executive Officer annually to certify compliance with CCR regulations." SECTION 4. Section 28. of the Original Agreement entitled "General Provisions" is amended to read as: J. Notices. To Contractor: CR&R Incorporated P.O. Box 1100 31641 Ortega Highway San Juan Capistrano, California 92693 Attn: Vice President Telephone: 949-728-0446 Telecopier: 949-728-3470 SECTION 5. Revised Exhibits "A" and "B" incorporating commercial mixed-waste processing and commercial automated barrel service options are attached hereto and are made a part of this Third Amendment. SJC Third Amendment 7/15/2003 2 SECTION 6. All other terms and conditions of the Original Agreement dated December 17, 1996, and as amended by the First Amendment dated February 15, 2002, and the Second Amendment dated October 1, 2002, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. City of San Juan Capistrano CR & R Incorporated John S. Gelff, Mayor Dean A. Ruff ridge, S n r Vice President ATTEST: Margaret R. Monahan, City Clerk Approved as to Form: Q S---, ,John S aw, City Attorney SJC Third Amendment 7/15/2003 3 SUPPLEMENTARY INFORMATION 8/18!2003 G 7 TO: Members of the City Council and Agenda Packet Holders FROM: Meg Monahan, City Clerk SUBJECT: Consideration of Third Amendnto the Integrated Solid Waste Collection Agreement — CR&R, Inc. �� Attached, please find: Exhibit A, and Exhibit B to the Third Amendment to the Integrated Solid Waste Collection Agreement (Attachment 2) of the Agenda Report for this item. These exhibits were erroneously omitted from the original Agenda Report. EXHIBIT 'A' SOLID WASTE COLLECTION RATE SCHEDULE City of San Juan Capistrano Monthly Recycling Residential (2) 35 Gallon Automated Containers $ 11.98 (2) 67 Gallon Automated Containers $ 13.07 (3) 67 Gallon Automated Containers $ 13.53 Extra 35 Gallon Container $ 3.25 Extra 67 Gallon Container $ 3.35 Vacancy/Self-Haul $ 6.66 Bulky Items First 2 at No Charge; $10 thereafter Commercial (2) 67 or 90 Gallon Automated Container $ 15.28 (1) 35 or 67 Gallon in Residental Areas Only $ 6,00 Extra Trash $ 6.98 Extra Recycle $ 6.70 67190 Gallon Ix $ 15.15 67190 Gallon 2x $ 30.30 67190 Gallon 3x $ 45.45 67190 Gallon 4x $ 60,60 67190 Gallon 5x $ 75.75 67190 Gallon 6x $ 90.90 Disposal Recycling cy-cling Mixers Waste Processing Commercial 3 Yard 1x $ 72.15 $ 50.50 $ 95.34 3 Yard 2x $ 111.00 $ 80.80 $ 157.38 3 Yard 3x $ 144.00 $ 121.20 $ 213.58 3 Yard 4x $ 187.44 $ 161.60 $ 280.21 3 Yard 5x $ 224.50 $ 202.00 $ 340.46 3 Yard 6x $ 259.44 $ 242.40 $ 399.09 Overflow Charge Per Occurrence $ 35.35 4 Yard Ix $ 94.73 $ 65.65 $ 125.65 4 Yard 2x $ 145.72 $ 105.04 $ 207.55 4 Yard 3x $ 189.66 $ 157.56 $ 282.42 4 Yard 4x $ 246.07 $ 210.08 $ 369.75 4 Yard 5x $ 294.66 $ 262.60 $ 449.26 4 Yard 6x $ 341.07 $ 315.12 $ 526.59 Overflow Charge Per Occurrence $ 35.35 Roll-Off Rates Drop-Off Box $ 136.47 plus landfill fee Compactor $ 146.62 plus landfill fee On-Call DOB $ 391.52 On-Call Lowboy $ 366.52 Clean-Up Bin Daily $ 38.12 Clean-Up Bin Weekly $ 49.56 EXHIBIT V SOLID WASTE COLLECTION RATE BREAKDOWN City of San Juan Capistrano Automated residential curbside and roadside collection, recycling and disposal located on paved, two-lane road; monthly maximum rates for: Base Rate Disposal Rate Monthly Rate 35-Gallon Refuse/Recycling Set of 2 $ 10.59 $ 1.39 $ 11.98 Set of 3 (including Green Waste) $ 10.76 $ 2.31 $ 13,07 67-Gallon Refuse/Recycling Set of 2 $ 10.76 $ 2.31 $ 13.07 Set of 3 (including Green Waste) $ 10.93 $ 2.60 $ 13.53 90-Gallon Refuse/Recycling Set of 2 $ 10.93 $ 3.23 $ 14.16 Set of 2 (including Green Waste) $ 11.22 $ 3.40 $ 14.62 Additional 35-Gallon $ 1.86 $ 1.39 $ 3.25 Additional 67-Gallon $ 1.04 $ 2.31 $ 3.35 Additional 90-Gallon $ 1.04 $ 3.23 $ 4.27 Additional Recycling No Charge No Charge No Charge Vacancy/Self-Haul $ 6.66 $ 6.66 Multi-Family, Commercial and Industrial receiving bin service (3 &4 cubic yard bins)for Disposal or MRF Processing; monthly rate with the following pick-ups per week: (Note: AB939 fees are eliminated) Commercial Base Rate + Landfill Tipping or Processing 3-Yard Ix $ 54.78 $ 17.37 $ 40.56 3-Yard 2x $ 76.26 $ 34.74 $ 81.12 3-Yard 3x $ 91.89 $ 52.11 $ 121.69 3-Yard 4x $ 117.96 $ 69.48 $ 162.25 3-Yard 5x $ 137.65 $ 86.85 $ 202.81 3-Yard 6x $ 155.72 $ 104.22 $ 243.37 Overflow Charge (per incident) $ 35.35 4-Yard 1X $ 71.57 $ 23.16 $ 54.08 4-Yard 2x $ 99.40 $ 46.32 $ 108.15 4-Yard 3x $ 120.18 $ 69.48 $ 162.24 4-Yard 4x $ 153.43 $ 92.64 $ 216.32 4-Yard 5x $ 178.86 $ 115.80 $ 270.40 4-Yard 6x $ 202.11 $ 138.96 $ 324.48 Overflow Charge (per incident) $ 35.35 1 of 2 Multi-Family, Commercial and Industrial receiving Automated Commercial Barrel Service; monthly rate with weekly collection service of one trash and one recycling barrel: Base Rate Landfill Fee Monthly Fee 67-Gallon Set $ 14.77 $ 3.40 $ 18.17 90-Gallon Set $ 15.28 $ 5.06 $ 20.34 Extra 67-Gallon Trash $ 6.98 $ 3.40 $ 10.38 Extra 90-Gallon Trash $ 6.98 $ 5.06 $ 12.04 Extra 67-Gallon Recycle $ 6.53 No Charge $ 6.53 Extra 90-Gallon Recycle $ 6.70 No Charge $ 6.70 2of2 t 324030 PAsLo ADD-LANTO tn[A APr>tAAlE6 SAN JUAN CAPISTP2AN O, G/.92675 • [ LITq[A I��I MEMBERS OF THE CITY COEINCIL (949) 493-1171 1776 DIANE L.BATH GATE (949) 493-1053 (FAX) ® ® JOHN S.GELFF ivivw sanj[rancapisIran o.org WYATTHART s ° JOESOTO DAVID M.SWERDLIN CITY MANAGER August 20, 2003 GEORGESCARBOROUGH CR&R Incorporated PO Box 1100 31641 Ortega Highway San Juan Capistrano, CA 92693 Attn: Vice President Dear Sir or Madam: A fully executed, original Third Amendment to the Integrated Solid Waste Collection Agreement is enclosed, as approved by the City Council at their meeting of August 19, 2003. If you have any questions regarding this agreement, please direct those to the Project Manager, Douglas Dumhart, Principal Management Analyst (949) 443-6316. Yours truly, Z�z M Mo ahan, CMC Ci y Clerk '�--. enclosed: Agreement CC' Douglas Dumhart, Principal Management Analyst !S m8 San Juan Capistrano: Preserving the Past to Enhance the .Future 32400 PASEo ADEL.ANTO W[W WPWNRWIt SAN JUAN CAP€STRANO, CA.92675 • ( FISR'FW I961 MEMBERS OF THE CITY COUNCIL (949) 493-1171 1776 DIAN E L.BATHGATE (949) 493-1053 (FAX) ® � JOHN S.GELFF WWII,scrnjt ancapislr[ano.org WYATT HART ® JOE SOTO DAVID M.SWERDLIN CITY MANAGER NOTIFICATION OF MEETING OF POTENTIAL INTEREST GEORGE SCARBOROUGH OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 7:00 p.m. on August 19, 2003 in the City Council Chamber in City Hall, to consider: "Consideration of Third Amendment to the Integrated Solid Waste Collection Agreement - CR&R, Inc." — Item No. Glc If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to"this item must be received at City Hall by 5:00 p.m. on Monday, August 18, 2003 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Douglas D, Dumhart, .Principal Management Analyst. You may contact that staff member at (949) 443-0310 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancapistrano.org. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council-a endas sanivanca istano.or . Meg Monahan, CMC City Clerk cc: CR&R, Inc.*; Douglas D. Dumhart, Principal Management Analyst Received staff report G USE Rs ,San Juan Capistrano: Preserving the Fast to enhance the Future 9. CLAIMS DENIED FOR CAROLINE ARGO,CHRISTIAN GAARD,JUSTIN GAARD, JESSICA GAARD, MIKE GAARD, PHONDA GOULD, JOSH GOULD, JASON GOULD, AND HENRY GOULD BASED UPON THE INVESTIGATION AND RECOMMENDATION OF THE CITY'S INSURANCE ADJUSTER, CARL WARREN & COMPANY (170.70) 10. INVESTMENT POLICY FOR THE CITY OF SAN JUAN CAPISTRANO APPROVED FOR FISCAL YEAR 2002-2003;AND,THE CITY CLERK DIRECTED TO FORWARD THE INVESTMENT POLICY TO THE CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (350.30) 11. AGREEMENT WITH THE COUNTYOF ORANGE ANIMAL CONTROL SERVICES FOR FISCAL YEAR 2002-2003 APPROVED IN A PROVISIONAL AMOUNT OF $51,732; AND, THE MAYOR AUTHORIZED TO EXECUTE THE AGREEMENT (600.50) .�12. SECOND AMENDMENT APPROVED TO THE INTEGRATED SOLID WASTE MANAGEMENT COLLECTION AGREEMENT ESTABLISHING RATES FOR COMMERCIAL RECYCLING AND OVERFLOW CHARGES (CR&RISOLAG) (60074F\ 60�) 13. FIVE-YEAR CITY GIS SUBSCRIPTION AGREEMENT APPROVED WITH DIGITAL MAP PRODUCTS, LLC, IN THE AMOUNT OF$26,968.48 FOR THE FIRST YEAR AND $29,302.88 FOR EACH YEAR FOLLOWING; AND, MAYOR AUTHORIZED TO EXECUTE THE AGREEMENT (600.30) PUBLIC HEARINGS; 1. LOCAL LAW ENFORCEMENT BLOCK GRANT FUNDS APPROVED TO INCLUDE: $1,500 TO THE DRUG USE LIFE ABUSE PROGRAM; $1,000 TO SOUTH ORANGE COUNTY DRUG COURT; $1,000 SOUTH ORANGE COUNTY DOMESTIC VIOLENCE PROGRAM; $3,000 FOR PURCHASE OF EQUIPMENT AND SUPPORT FOR CRIME PREVENTION AND ENFORCEMENT PROGRAMS; AND, $14,750 TO OFF-SET COST OF SPECIAL ENFORCEMENT PROGRAM OVERTIME. (580.10) Project Descriptions. Under the terms of the Local Law Enforcement Block Grant Program funds are made available forthe purpose of reducing crime and improving public safety. Funds allocated for the City of San Juan Capistrano will be utilized for additional overtime patrols, police equipment, domestic violence program, drug awareness program and, support of crime prevention and enforcement programs. Under the terms of the grant, the City will received $16,425 with a contribution from the City in the amount of$1,825. City Council Minutes 4 10-1-02 10/11/2002 AGENDA ITEM D 12 TO: George Scarborough, City Manager FROM: Douglas D. Dumhart, Principal Management Analyst SUBJECT: Consideration of Second Amendment to the Integrated Solid Waste Collection Agreement Establishing Rates for Commercial Recycling and Overflow Charges. (CR&RlSolag) RECOMMENDATION: By motion, approve the Second Amendment to the Integrated Solid Waste Management Collection Agreement. SUMMARY: The City has received a request from the Franchised Waste Hauler, CR&RlSolag Disposal, for Rate Establishment for new services. CR&R's request dated August 9, 2002, is provided as Attachment 1 to this report. They are requesting a rate be established for commercial recycling dumpsters and for bin overflow charges. Staff has reviewed the request and proposed rates contained in CR&R's letter. Staff finds the request consistent with the provision of the Franchise Agreement and the proposed rates reasonable. A second amendment to the Franchise Agreement has been prepared for City Council consideration which would put into effect the requested rate establishment. BACKGROUND: The City has implemented most of the programs in its Source Reduction Recycling Element (SRRE), with the exception of aggressive implementation of the commercial and Construction & Demolition (C&D) recycling programs. The following ordinance revisions were completed: requirement for mandatory participation in the curbside recycling program, requirement for space allocation for recycling, an anti-scavenging ordinance, creation of Recycling Enterprise Zones, and recycled product procurement preferences. Public information and education campaigns have been conducted and model/mentor business recognition programs are in place. The City also adopted variable can rate incentives to encourage recycling. San Juan Capistrano is a built out, largely residential community. The City's SRRE recognized that the residential and commercial waste streams in San Juan Capistrano were roughly equal. An effective automated three-can curbside program collecting commingled recyclables and green waste, coupled with a commercial recycling program and the recovery of some C&D materials were the cornerstones of the City's plan to achieve 50% diversion. The roll out of the curbside program was accomplished in 1993. Solag contracted with CR&R, based in Stanton, California, to serve as its processor for curbside materials. The arrangement gave Solag recycling capability, both for processing commingled recyclables from the new program,and access to a newly constructed Material Recovery Facility for processing other materials, should that be necessary. This phase of FOR CITY COUNCIL AODA. AGENDA ITEM -2- October 1, 2002 AB 939 implementation went as planned and the City met its 1995 objective. Solag, with help from San Juan Capistrano, conducted a multi-year search for sites with the potential for meeting Solag's storage needs for its refuse and recycling fleet coupled with greater recycling capability, but no suitable sites were found. Solag purchased industrial-zoned land in San Clemente for a Materials Recovery Facility/Transfer Station(MRF/T), but the City of San Clement indicated that the property was not appropriate and declined to consider any of the land use approvals necessary for the facility, In 1995 a yard site was finally located and leased by Solag. During 1995 and 1996 Solag constructed its new yard and office facility. The land owner was unwilling to grant Solag the right to construct a MRF/T Station on this site. Solag's lease restricted the use of the site to consolidation of the curbside commingled loads for transfer to another facility for processing. Between 1997 and 2000 the City's focus switched to the need for diversion of commercial waste. Solag initiated a minimal effort to engage the business community in a commercial recovery effort. Commercial cardboard was collected from businesses free of charge. Since program participation caused a decrease in Solag's commercial revenues, the company did not aggressively market the program to businesses. Solag's attention to this program decreased as the owners of Solag decided to sell the company. It was generally known that between 1997 and 1999 the company was entertaining various offers for sale. In September 1999 Solag was sold to CR&R. The pending sale of Solag created an institutional barrier to increasing commercial recycling. The City had two options: (1) to initiate franchise enforcement measures with a hauler that was leaving the business, or (2) wait until the sale was complete and begin anew with the new franchise Folder. The City felt that pursuit of option 2 would achieve AB 939 compliance faster and more effectively than option 1. The sale of Solag to CR&R was completed in September 1999. It was CR&R's intention, as expressed in several communications to the City, to begin upgrading the commercial recycling programs, recognizing that considerable work would be required to substantially increase the recovery of commercial waste. These efforts were slowed down by the company's need to upgrade the Solag yard, make major management changes, and address basic service concerns during the transition. It is the City's understanding that the management transition is largely completed. CR&R has demonstrated a much more professional and focused approach to recycling, as evidenced by its current leadership role in the South County to establish a C&D recycling capability at Prima Desecha Landfill, its work with the South County cities in this regard, and its use of the consulting firm of EcoNomics, Inc. to design an optimal commercial program for San Juan Capistrano and its other franchised South County cities. To that end, CR&R has requested the City establish rates for commercial recycling bins and bin overflow. The hauler believes these components are necessary for an effective AGENDA ITEM -3- October 1, 2002 commercial recycling effort. Staff concurs and is recommending approval of the Second Amendment to the Solid Waste Collection Agreement to establish such rates. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: NIA FINANCIAL CONSIDERATIONS: There are no costs to the City. Commercial accounts should not experience rate increases. Rather, commercial customers should experience a decrease in rates since commercial recycling rates are less than refuse rates. Some accounts will experience a higher refuse bill if they have overflow charges; however, if those accounts are experiencing routine overflow charges they are probably not paying for an adequate level of service. NOTIFICATION: CR&R/Solag Disposal* Chamber of Commerce* ALTERNATE ACTIONS: 1. By motion, approve Second Amendment to the Integrated Solid Waste Management Collection Agreement. 2. By motion, approve Second Amendment to the Integrated Solid Waste Management Collection Agreement subject to modifications. 3. Refer to Staff for more information. RECOMMENDATION: By motion, approve Second Amendment to the Integrated Solid Waste Management Collection Agreement. T ctfully Submitted, 'Oec 4 Douglas D. Dumhart Principal Management Analyst Attachments: 1. Letter from CR&R. 2. Second Amendment. 31641 ORTEGA HlGi-iW AY C R& P.0.E30X i f m SAN JUAN CARSTAANQ,CA 92699 August 9, 2002 949-720-8446 rAX 949-72B-3444 Mr. Douglas Dumhart, Principal Management Analyst, City manager's Office City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 Re: Rate Establishment for new services Dear Mr. Dumhart: Please accept this letter as CR&R's request for the establishment and approval of charges to customers within the City of San Juan Capistrano for the following services: 1. Commercial Bin Recycling Services. 2. Commercial Bin Overflow. 1. Commercial Bin Recycling Charges: Per Section 6.C. Commercial and Industrial Services of the "Integrated Solid Waste Agreement Between the City of San Juan Capistrano and CR&R, Inc", dated.December 17, 1996, solid waste, compostables and recyclables are permitted services to commercial and industrial users. In addition, and Section 10, System and Services Review, allows the parties to review and submit changes to the agreement for new services to improve the City's ability to meet the goals of AB939. Mates for Commercial Recyclable Collection . are not listed in the rate schedule"Exhibit A". With the City's approval of the Source Separation and Recycling Element of the approved Plan to comply with State mandates of AB-939, as well as the programs to be implemented under the 1066 request to be reviewed by the State next week, it is imperative to establish the commercial source-separated program and corresponding rates. Our new Recycling Coordinator will be marketing commercial and multi-family customers within your community, encouraging source separation of recyclable materials. In developing a rate structure, the following issues have been considered: A Recycling Bin Rate must be lower than the solid waste rate by at least the removal of the landfall tipping fee component. SJC Coen: Recy'g Ratesloverflows Attachment 1 • The Recycling Bin Rate will continue to include City franchise fees in that it will be included as"gross revenues" received. • Billings will include solid waste and recycling on the same monthly invoices. • Multiple weekly recycling bin collection rates must be lower than multiple weekly collection rates for solid waste. In order to standardize our sales efforts within the South Orange County Cities, we established rates based upon taking the lowest commercial bin rate of any of the six South County Cities, removing the landfill fees, and then rounding the remaining amount. Operational issues are as follows: • A separate front-loading collection vehicle will collect recyclables, apart from the solid waste collection. A All recyclables will be transferred to CR.&R's processing facility in. Stanton_ . • CR&R wiII absorb the market fluctuations of the material value. + Bins provided.the customer will.be painted white and decaled identifying the bins as for"Recyclables Only" • Bins will be placed within enclosures to the extent possible. . The following monthly rate schedule is requested: WeeW Collections 3-cubic yard bins 4-cubic yard bins 1 $ 50.00 $ 65.00 2 $ 80.00 $104.00 3 $120.00 $156.00 . 4 $160.00 $208.00 5 $200.00 $260.00 6 $240.00 $312.00 For small quantity generators, an optional 96-gallon recycling barrel(similar to the residential recycling barrel) with weekly collection, will be available for $15.00 per month. 2. Commercial Birt Overflow warning and charges. The Operations Overflow Program will be used to identify commercial accounts that require service increases. The goal of the program is to insure the customer has an adequate service level to meet their waste needs. In addition, the program will also help address safety issues with the drivers, by reducing the number of unsafe bin areas/enclosures, which are a result of overflowing bins. These accounts will be identified by selected commercial route drivers who will utilize digital photographs to document accounts that have had ongoing overflow issues with their bins. These photographs will serve as"backup" and will be included in a letter to the customers, which will suggest they increase their service. SJC Com. Recy'g Rates/overflows 2 In cases where the customer doesn't want to increase service, but continues to have an overflow problem, the program coordinator will send a letter, which notifies the customer of an extra.pickup fee to be charged to the account. Overloaded containers are unsightly, create a safety problem when dumping the container, can cause damage to the collection vehicle, and can cause inappropriate . discharges (thereby effecting NPDES regulations)to surrounding property. This program has been incorporated into many franchise agreements, usually administratively, and has had excellent results. The overflow charge proposed will be $35.00 per instance for either a 3 or a 4 cubic yard bin. We at CMR, Inc. appreciate your review of these changes and are available for further discussions it needed. As always, it's a pleasure being of service to the City of San Juan Capistrano. Respectfully, Dean.A. Ruifridge, Vice President cc. Williaa Huger David hahrion Steve Wright Maria Lazarak imBerly Acosta SJC Coin. Recy'g Rates/overflows 3 32400 PASEO ADELAN'Td /✓T Ihf�NPONNfEII SAN JUAN CAPISTRANO, CA 92675 ♦ 111��� 1 MEMBERS OF THE CITY COUNCIL (949) 493-1171 rsNaNusNEN I96I 1776 CCOLLENEUCAMPBELL (949) 493-1053 (FAX) ♦ ® JOHN S.GELFF wivsv.sanjuancapistrano.org WYATDAVID kf.�SVJENOLJN e ® ' CITY MANAGER GECRGESCARBOROUGH October 4, 2002 CR&R/Solag Disposal Incorporated PO Box 1100 San Juan Capistrano, CA 92693 Dear Sir or Madam: Please find enclosed an original, fully executed, Second Amendment to the Integrated Solid Waste Collection Agreement Thank you for maintaining current evidence of insurance and bonding as required by this agreement. Please keep in mind that this documentation that should documentation lapse, all work under this agreement must stop and all payments for services rendered will be withheld, until these documents are brought current. If you have any question regarding this agreement, please contact Douglas Dumhart, Principal Management Analyst (949) 443-6316. Yours truly, jMe4CIe ahan, CMC enclosed: Agreement cc: Douglas Dmhart, Principal Management Analyst DRUG USE Is AIR San Juan Capistrano: Preserving the Fast to Enhance the Future 32400 PASEo ADEE ANTO ��✓j��p IN@cgagruc�Fartc SAN JUAN CAPISTRANO, CA 92675 ° ES1RIi1S1[EB l i949 MEMBERS OF THE CITY COUNCIL (949) 493-1171 DIANE L.BATHGATF ( 1776 COLLENE CAMPBELL 949) 4s3 1053 (FAX) • p JOHN S.GELFF: 1 Vww.sanfiia!1capis1rano.Org YAT HARTM. WER[7LiN o • CITY MANAGER October 2, 2002 GEORGE SCARBOROUGH NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO On October 1, 2002 the City Council of San Juan Capistrano met regarding: "Consideration of Second Amendment to the Integrated Solid Waste Collection Agreement Establishing Rates for Commercial Recycling and Overflow Charges (CR&R/Solag)" Item No. D12 The following action was taken at the meeting: Second Amendment to the Integrated Solid Waste Management Collection Agreement approved. The following documents are in the process of being executed: Second Amendment to agreement If you have any questions regarding this action, please contact Douglas D. Dumhart, Principal Management Analyst at 443-5310 for more detailed information. Thank you, Megon han, CMC City Clerk Cc: CR&R/Solag Disposal*; Chamber of Commerce*; Douglas D. Dumhart, Principal Management Analyst MUG USE Is San Juan Capistrano: Preserving the Past to .enhance the Future 32400 PASEO AIDEtANTo 1. MEMBERS OF THE CITY COUNCIL SAN JUAN CAPfSTRANO, CA 92675 D€ANrn�,BATHGAT� (949) 493-1 9 7 5 a Fy }nf69voaPPtA CCLLENE CAMPBELL tsPexsisxto 19SI JOHN S.GELFF (949) 4.93-9053 (FAX) INYATTHART wtivw.Sanjuancapislrano,org ® ® DAVID M.SWERCU[N ® ® CITY MANAGER GEORGE SCARB©ROUCH NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 7;00 p.m, on October 1 , 2002 in the City Council Chamber in City Hall, to consider: "Consideration of Second Amendment to the Integrated Solid Waste Collection Agreement Establishing Rates for Commercial Recycling and Overflow Charges (CR&RCSolag)" — Item No. D12 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Monday, September 30, 2002 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais, You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Douglas D. Dumhart, Principal Management Analyst. You may contact that staff member at (949) 443-6316 with any questions. The agenda, including agenda reports, is available to you on our web site: www.san'uanca istrano.or . If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: council-agendassan`uanca istano.or . f i Meg Morahan, CMC City-,-Clerk cc: CR&�ISolag Disposal*; Chamber of Commerce*; Douglas D. Dumhart, Principal Management Analyst * Received staff report IS Scan Juan C aplstrano: Preserving the Past to Enhance the Future Transportation Authority was approved to revise the project allocation exhibit for Measure M and bicycle/pedestrian facility-funded projects. - 8: APPROVAL OF FRANCHISE TRANSFER FROM SOLAG DISPOSAL COMPANY INC. TO CR&R INCORPORATED 600.30 s As set forth in the Report dated March 7,2000, from the Principal Management Analyst, the following Resolution was adopted approving the merger of Soiag Disposal Company, Inc., and CR&R, Incorporated and approving the First Amendment to the Integrated Solid Waste Collection Agreement: RESOLUTION NO. 00-3-7-2,APPROVING MERGER AND TRANSFER OF FRANCHISE AGREEMENT- SOLAG DISPOSAL COMPANY AND CR&R INCORPORATED-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE REQUEST OF SOLAG DISPOSAL COMPANY TO CONSOLIDATE WITH CR&R INCORPORATED AND APPROVING TRANSFER OF FRANCHISE AGREEMENT 9. APPROVAL OF RESOLUTION SUPPORTING CENSUS DAY 2000 A DECENNIAL CENSUS TO BE„CONDUCTED ON APRIL 1, 2, 000 (440 15) As set forth in the Report dated March 7, 2000, from the Planning Director, the following Resolution was adopted supporting Census Day 2000: RESOLUTION NO. 00-3-7-3, CENSUS DAY 2000-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, SUPPORTING CENSUS DAY 2000 (CENSUS 2000) 10. APPROVAL OF RESOLUTION SUPPORTING ASSEMBLY BILL 1885 - VEHICLES: SPEED LIMITS CORREA 660.40 As set forth in the Report dated March 7, 2000, from the Engineering and Building Director, the following Resolution was adopted: RESOLUTION NO. 00-3-7-4 SUPPORTING ASSEMBLY BILL 1884 (CORREA) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, SUPPORTING ASSEMBLY BILL 1885, AN ACT TO AMEND SECTIONS 627, 22350, AND 22351 OF THE VEHICLE CODE RELATING TO VEHICLES 11. DENIAL OF REQUEST FOR RIGHT-OF-ENTRY AGREEMENT TO INSTALLATION OF A POWER SOURCE WITHIN JUNIPERO SERRA PARC FOR CALTRANS' CHANGEABLE MESSAGE SIGN (600.50) As set forth in the Report dated March 7, 2000, Caltrans' request for approval of a Right-of-Entry Agreement to allow access to Junipero Serra Park for installation of power facilities in conjunction with a proposed changeable message board on 1-5 just north of Ortega Highway, was denied. City Council Minutes - 3/7100 AGENDA ITEM March 7, 2000 TO: George Scarborough, City Manager FROM: Douglas D. Dumhart, Principal Management Analyst SUBJECT: Consideration of Franchise Transfer from Solag Disposal Company, Inc. to CR&R Incorporated RECOMMENDATION: By motion adopt the resolution approving the Franchise Transfer from Solag Disposal Company, Inc. to CR&R Incorporated and First Amendment to the Integrated Solid Waste Collection Agreement; and, authorize the mayor to execute the First Amendment. SUMMARY: Tom Trullis the owner of Solag Disposal Company has requested consent for the acquisition of his company by CR&R Incorporated and transferof the Franchise Agreement for Solid Waste Collection. The Franchise Agreement Section 15 provides that such transfer shall not occur without the written consent of the City expressed by Resolution. CR&R is anotherfamily owned corporation located in Stanton, California. CR&R owns and operates the Material Recovery Facility where the City's curbside recyclable materials have been processed since the City-wide implementation in 1993. The merger of Solag Disposal is an outright purchase of all controlling stock by CR&R Incorporated. The intentions of their consolidation plan is to have little or no change in operations or administrative accountability. Staff has prepared a Resolution and First Amendmentto the Franchise Agreement for the transfer and is recommending City Council adoption. BACKGROUND: Solag Disposal has been providing solid waste collection services to this community since 1971; when the City consented to a merger between Solag Disposal and Truman Smith Disposal Company. Today, 28 years later Solag Disposal is requesting consent to their merger. The acquiring firm CR&R Incorporated has its headquarters in Stanton, California. A copy of their Statement of Qualifications, Experience, References, History of Litigation, and proposed Organizational Chart has been provided as Attachment A of this report. FOR ilY COUNCIL AGEN � AGENDA [TEM -2- March 7, 2000 The Franchise Agreement has provisions governing its transfer. Section 15 entitled, "Franchise Transferable" states the following: A. The franchise granted by this Franchise Agreement shall not be transferred, sold, hypothecated, sublet, or assigned, nor shall any of the rights or privileges herein be hypothecated, leased, assigned, sold, or transferred, either in whole or in part, nor shall title thereto, either legal or equitable, or any right or interest, or property therein, pass to or vest in any person, except the Contractor either by act of the Contractor or by operation of law, without the prior written consent of the City expressed by Resolution. Any attempt by Contractor to assign this franchise without the consent of the City shall be void. B. The City may improve conditions of approval on a Franchise Agreement transfer, including, but not limited to, conditions requiring acceptance of amendments, to Chapter 3 and this Franchise Agreement. The City shall not be unreasonable withholding the transfer. C. City Consent is required for any change in control of Contractor. "Change in control" shall mean any sale, transfer, or acquisition of Contractor. Contractor is a corporation, and any acquisition of more than ten percent (10%) of Contractors voting stock by a person, or group of persons acting in concert, who already owns less than 50% of the voting stock, shall be deemed a change in control. D. Any change in control of the Contractor occurring without prior City approval shall constitute a material breach of this Franchise Agreement. Furthermore, Section 16 of the Franchise Agreement, entitled, "Franchise Transfer; Fees" states: A. Any application for a franchise transfer shall be made in a manner prescribed by the City Manager. The application shall include a transfer fee in an amount to be set by City by a Resolution of the Council, to cover the cost of all direct and indirect administrative expenses including consultants and attorneys, necessary to adequately analyze the application and reimburse City for all direct and indirect expenses. In addition, the Contractor shall reimburse the City for all costs not covered by the transfer fee. Bills shall be supported with evidence of the expense or cost incurred. The applicant shall pay such bills within thirty (30) days of receipt. Staff has prepared the requisite Resolution authorizing the transfer of Franchise, setting the transfer fee at $5,000 and approving the First Amendment to the existing Franchise Agreement. This Resolution is provided as Attachment B to this report. Additionally, the First Amendment to the Integrated Solid Waste Collection Agreement dated March 7, 2000, AGENDA ITEM -3- March 7, 2000 has been prepared. The First Amendment has been provided as Attachment C to this report. The First Amendment to the Franchise Agreement transfers and binds the acquiring firm to all obligations contained in the original agreement. There are no rate adjustments proposed and the current rate schedule remains the same. Staff has taken the merger opportunity to strengthen some provisions of the Original Agreement. The indemnity and surety sections have been fine tuned in the First Amendment. The indemnification is broadened to include the area of franchise exclusivity enforcement. Now the Contractor will defend the City from any disputes that arise from their exercise of its rights and obligations under this exclusive franchise agreement. The surety amount will be increased to reflect the current market. The performance bond will be increased from $10,000 to $100,000. This is to ensure that in the event of a short term disruption in service, such as, a strike, contract dispute, or bankruptcy there are funds available for the city to use to continue service until a resolution is reached. The City also secured from the acquiring firm a commitment to schedule routine bulky item pick-ups in City targeted neighborhoods. Bulky Item are those items too large to fit in the automated barrels Customers receive free bulky item pick-ups on a on-call basis. In some areas, despite bilingual education efforts, customers place bulky items out for collection without placing a call to the hauler. This creates a collection problem and a refuse nuisance. To mitigate this matterthe new provider will schedule routine pick-ups of bulky items on regularly scheduled collection days in City targeted neighborhoods. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: Not applicable FINANCIAL CONSIDERATIONS; There will be no rate changes as a result of the merger. All costs associated in processing the franchise transfer request will be paid by the applicant. NOTIFICATION, Tom Trulis, Solag Disposal Clifford Ronneberg, CR&R, Inc. AGENDA ITEM -4- March 7, 2000 ALTERNATE ACTIONS: 1. By motion adopt the resolution approving the Franchise Transfer from Solag Disposal Company, Inc. to CR&R Incorporated and First Amendment to the Integrated Solid Waste Collection Agreement; and, authorize the Mayor to execute the First Amendment. 2. By motion adopt the resolution approving the Franchise Transfer from Solag Disposal Company, Inc. to CR&R Incorporated and First Amendment to the Integrated Solid Waste Collection Agreement subject to modifications. 3. Do not approve the Franchise Transfer and refer to staff for additional information. RECOMMENDATION: By motion adopt the resolution approving the Franchise Transfer from Solag Disposal Company, Inc. to CR&R Incorporated and First Amendment to the Integrated Solid Waste Collection Agreement; and, authorize the Mayor to execute the First Amendment. Respectfully submitted, Douglas D. Dumhart Principal Management Analyst Attachments A: Statement of Qualifications B: Resolution Approving Merger C: First Amendment Agreement C:IAGENDAS1200013-7 Solag Al.wpd Cit&R, Incorporated Statement of Qualifications CR&R, Incorporated("CR&R"), a privately held corporation established in 1963, provides comprehensive environmental management services throughout the Western United States to municipalities, retail, commercial, residential, construction, and industrial customers. CR&R is one of Southern California's prentier environmental management companies. CR&R's management and engineering staff have extensive experience in solid waste collection, hauling, Processing, and transfer operations; as well as, collecting, processing, marketing, and transporting of recyclable materials. CR&R currently employs over 475 people at ten separate locations which service customers in California, Arizona, Oregon, Washington,Nevada, Utah, and Colorado. CR&R owns and operates a fleet of over 350 trucks and trailers. CR&R's revenues are derived from public and private entities requiring efficient and cost-effective solid waste management programs. CR&R's recycling network services approximately 400 recycling centers ing contracts with domestic and foreign paper mills, in over 100 cities. The company currently has market metal, glass, and plastic processors. CR&R is currently processing and marketing all recyclable materials from over 25 curbside programs throughout Southern California. CR&R and its affihates currently process approximately 55,000 tons of recyclables and solid waste per month. CR&R services the Cities of Stanton, Perris,Temecula, Canyon Lake, Lake Elsinore, and Rossmoor under long term exclusive agreements. CR&R has also constructed two model solid waste recycling and transfer facilities, CR Transf r (Stanton Material Recovery Facility) and the Perris ist at(,,C Recovery Facility. Both have permitted capacities of 1,800 tons per day. These ventures illustrate CR&R's commitment to providing efficient and imaginative solutions. The contracted waste received at the transfer stations is mechanically and manually sorted to recover the recyclables. CR Transfer has exclusive long term agreements to handle the solid waste from the Cities of Costa Mesa, Newport Beach, Buena Park, La.Palma, Rossmoor (County of Orange), Stanton, Signal Hill, Cerritos, and Midway City (Westminster). Haulaway Storage Containers is the premier provider of portable steel security containers in the Western United States. For over twenty years, through a network of regional service centers, Haulavvay has served major industries with temporary, on-site storage space. Using portable steel security containers to protect building materials, tools, and other equipment on job sites has become an industry norm since this concept-vas introduced by Haulaway in the late I960's. With its own manufacturing capabilities, Haulaway has designed and refined their containers to provide weather-resistant, theft-resistant, completely portable security containers to meet the specific needs of their diverse customer base. Attachment A Rage f of 6 So[ag Disposal, Inc. SOLAG DISPOSAL E Board of Directors E 1 Clifford Ronnenberg Thomas Trulis CO-Chairman CFO Co Chairman Tom Sciarrino Jim Koutroulis David Fahrion._� CFC] President Transition Director I Joyce Amato Roger Van Valkenberg Controller General Manager Janice Manville Admr.Assist Payroll Rosie Martinez Casio Recei is -- ` Maria LazureK George Lazurek Cameron Spicer Sales Manager Contract Admin& O erations/Facilit Dan Beaty ( Accounts ` Julie i g p y Recycling Mgr. Payable Cash Recei is Temp.Office Mgr. _ Business Develop. Manager . ............_._ _.._. Tommy Koutroulis .................. Asst.Operations Receptionist Toni Bradley Manager -- Asst. Office Mgr. Customer Serv. ................_ Monica Damian Cardona Frank Me�cad� Credit/Collection ( Maint.,Stp. J _Fleet SupIF ervisor NatellHs Vega Customer Service Star Morales M.Topate Lurs Termano Residentail Frm. Reskcential Frm Commercial DOB �-__� .���---� p . �X rystal'Martinez K ---Su Vervcsor � ustomer Service] _ - - Juan Vaiesco ---GregPerez Jorge —- _ DOB Foreman Commercial Frm_ to �Llamas � MonicaMaldonada r Service l Customer Service Customer Jack Clark_ Luis Gonzales L Field Superolsor _ Welder W Vance Bradley j1 Roxanne ra ustomer SentcCustomer Seric� E , Statement of Experience Name of Firm: Solag Disposal, Inc. CR&R, Incorporated Instructions: Answer all of the following questions. If naorc space is needed, attach additional sheets of paper. If a question does not apply to your organization, answer with a full negative response rather than staffing"non---- applicable". 1. Please list any current and valid organization license(s) to do business in California: A. Solid Waste Facility Permit# 30-AB-0013-01 0 Stanton Material Recovery Facility B. Solid Waste Facility Permit# 33 —AA— 0239-01 Perris Material Recovery Facility C. CR&R Incor orated and Solag Disposal have munerous business licenses in cities throughout Southern California. D. Both Sola and CR&R are California co orations in good standing. 2. Indicate any type of certification/accreditation that your organization may possess. S.olag and CR&R do not possess any certifications or accreditations. However both companies have been repeatedly recognized for their superior service and communit artici ation. 3. How many years has your organization been in business under its present name? A. Solar Disposal Inc. has been in business since 1957. B. CR&R Incorporated.has been in business since 1963. 4. How many years of experience does your organization have providing the required services? Describe this experience and present your qualifications for providing these services. Attach, if relevant, copies of formal evaluations conducted of your organization within the last three years. Please see the attached. Statement of Qualification. 5. List the contracts served by the acquiring firm and contacts for each contract. 1. City Of Stanton Oran=e Co. Terry Matz City Manager 714-379-9222 2. MidwAy City Sanitary Dist. Orange Co. Del Boyer Gen Mgr. 714-893-3553 3. Costa MesaSanitar Dist. Orange Co. Rob Hamers Gen.M r. 714-754-5043 4. Newport Beach Orange Co. David Neiderhaus Dir. Gen. Services 949-644-3055 5. County of Orange Orange Co. Jan Goss Dir. Gov. Relations 714-834-4108 6. City of Perris Riverside Co. Ron Molend k City Manager 909-943-1991 7. City of Temecula Riverside Co. Phyllis Ruse Dep, Dir. 909-694-6480 8. City of Canyon Lake Riverside Co. Kathy Bennett Contract Admin. 909-244-2955 9, Lake Elsinore Riverside Co. Richard Waten. au h City Manager 909-674-3124 1.0. County of Riverside Riverside Co. Damien Meins Supervisor LEA 909-955-8982 IL San Bernardino Coujitv San Bern. Co. Gerry Newcombe Contract Admin. 909-386-8703 3 of 6 6. Has the acquiring firm requested a rate increase in excess of COLA in the last two years for any of their contracts? If so, please explain. Neither CR&R nor Solag have ever requested nor been granted a rate increase greater than CPI (Consumer Price Index), or PPI Producers Price Index with the exception of a rate adjustment when new programs have been implemented. 7. Describe the firms funding base and financial management system including key fiscal policies to ensure accuracy and accountability. Solag and CR&R's funding base is derived from their working capital from operations, credit facilities from Wells Fargo Banlc, Foothill Capital Corporation, and G.P. Capital Corporation and both.companies are very active in low cost public financing programs provided by the California Pollution. Control Financing Authority. Solag and CR&R follow strict GAAP accounting standards and are audited annually b the CPA firm of Kushner Smith. Joanou & Gregson,.a large regional CPA practice located in Irvine California. 8. Has your organization failed or refused to complete a contract? Solag.and CR&R have never failed or refused to complete a contract. 9. Does your organization have any controlling interest in any other fines providing equivalent or similar services? Solag and CR&R do not have controlling interest in any other firm providing equivalent or similar service. 10.Does your organization have financial.interest in other line of business? ljaulawa, Stege Containers is a division.of CR&R. Haulaway is one of the nations largest providers of portable steel storage/security storage/securitycontainers. For over twenty-five years, Flaulaway has served major industries with tem ora on-site storage space. 4 of 6 History of Litigation Name of Firm: Solag Disposal Inc. CR&R, IncoMorated Firm Involvement in Litigation Check YES or NO to the following questions. If a yes answer is checked, please explain fully the circumstances and include discussion of the type of prograin involved as well as the potential impact on this program, if funded. I. Is the organization or any of its principal officers in litigation now or within the last two years? [NO ] Neither Solag nor CR&R nor any of thein-primal officers are involved in litigation now or have been so involved in the past two years. 2. Is the Executive Director involved in litigation? [NO ] No member of the senior rnanafZernent team of either com an is involved in litigation. 3. Are any members of the Board of Directors unable to be bonded? [NO ] All members of the Boards of Directors are able to be bonded. 4. Are any key staff members unable to be bonded? [NO;I All ke staff members can be bonded. 5. Has the organization or Director ever been cited for improper management? [NO ] Neither Sola CR&R nor aLiy members of their senior mariagement team has ever been cited for improper management, 5 of 6 Statement of References Name of Firm: CR&R, Incorporated Date of Service Name Address Phone Contact 1963 City of Stanton 7800 Katella 714-379-9222 Terry Matz Stanton, CA 90680 City Manager CR&R provides refuse collection and recyclable material recovery for all residential and commercial customers within the City of Stanton. 1991 County of Orange 320 N. Flower St, 714-834-4108 Jan. Goss Santa Ana, CA Contract Admin. CR&R provides refuse collection and recyclable material recovery for all residential and commercial customers within the Orange County area 9 1- Rossmoor. 1991 City of Temecula P.O. Box 9033 909-694-6480 Phyllis Ruse Temecula CA Deputy Director CR&R provides automated refuse collection, green waste recycling and recyclable material recovery for all residential customers and refuse collection and material recovery services :for all commercial, industrial, construction and demolition customers within the City of Temecula. Additionally, CR&R provides street sweeping services for the entire city of Temecula. Currently the City of Temecula is achieving a 53% diversion rate, which places the City in full compliance with AB 939. 1992 City of Lake Elsinore 130 S. Main St. 909-674-3124 Richard Watenpaugh Lake Elsinore, CA City Manager CR&R provides automated refuse collection, green waste recycling and recyclable material recovery for all residential customers and refuse collection and material recovery services for all commercial, industrial, construction and demolition customers within the City of Lake Elsinore. Additionally, CR&R provides street sweeping services for the entire city of Lake Elsinore. Currently the City of Lake Elsinore is achieving a 50% diversion rate, which places it in full compliance with AB 939. 1992 Canyon Lake 31532 Railroad Cyn Rd 909-244-2955 Cathy Bennett Canyon Lake, CA 92587. Cont. Admin CR&R provides automated refuse collection, green waste recycling and recyclable material recovery for all residential customers and refuse collection and material recovery services for all commercial, industrial, construction and demolition customers within the City of Lake Elsinore. Additionally, CR&R provides Currently the City of Canyon Lake is achieving a 55% diversion rate, which places it in full compliance with AB 939. 6 of 6 RESOLUTION NO. 00-3-7-2 APPROVING MERGER AND TRANSFER OFF Ni HISE AGREEMENT - SOLAG DISPOSAL COMPANY AND CR&R CONSOLIDATED A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE REQUEST OF SOLAG DISPOSAL COMPANY TO CONSOLIDATE WITH CR&R INCORPORATED AND APPROVING TRANSFER OF FRANCHISE AGREEMENT WHEREAS, by agreement dated December 17, 1997, the City granted to Solag Disposal Company the exclusive right to collect solid waste in the City of San Juan Capistrano; and, WHEREAS, Solag Disposal Company desires to merge with CR&R Incorporated to better serve the citizens of the City of San Juan Capistrano; and, WHEREAS, the aforesaid agreement states that no assignments or transfer of said rights shall be made without the prior written consent of City; and, WHEREAS, this City Council believes that the aforesaid merger will result in improved municipal solid waste collection and management for the City of San Juan Capistrano; and, WHEREAS, a first amendment to the Integrated Solid Waste Collection Agreement has been prepared to transfer the franchise contract from Solag disposal Company to CR&R Incorporated, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Juan Capistrano that the request of Solag Disposal Company to merge with CR&R. Incorporated is hereby approved. BE IT FURTHER RESOLVED, that the City Council hereby approves the First amendment to the Integrated Solid Waste Collection Agreement and authorizes the Mayor to execute the Amendment. PASSED, APPROVED, AND ADOPTED his 7th day of March, 2000. OLLE CA BELL, MAYOR ATTEST: CITY CLERW STATE OF CALIFORNIA ) COUNTY OF ORANGE ss CITY OF SAN JUAN CAPISTRANO � I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano, California, ®O HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No, 00-3-7-1 adopted by the City Council of the City of San Juan Capistrano, California, at a regular meeting thereof held on the 7th day of March, 2000, by the following vote: AYES: Council. Members Bathgate, Greiner, Bart, Swerdli.n and Mayor Campbell NOES: None ABSTAIN: None ABSENT: None (SEAL) CHERYL JOHOSOW, CITY CLERK -2- 32400 PASEO ADELANTO MEMBERS OF THE CITY COUNCIL SAN JUAN CAPISTRANO,CA 92675 ". JOHN GREINER GSELL NER (949) 493-1171 IAtOIPIIlA1E9 WYATT HART (949)493—t 053 (FAX) GIL JO ' Es1776 tn 1961 NE5WER(7LIN • • CITY MANAGER s a GEORGE SCAR80ROUGH March 9, 2000 Mr. Tom Trulis Solag Disposal Company, Inc. P. ®. Box 1100 San Juan Capistrano, California 92693 Re: Transfer of Franchise for Solid Waste Collection Dear Mr. Trulis: At their meeting of March 7, 2000, the City Council of the City of San Juan Capistrano took action to approve the transfer of the City's solid waste franchise from your company to CR&R, Incorporated. A fully-executed copy of the "First Amendment to the Integrated Solid Waste Collection Agreement," and a copy of Resolution No. 00-3-7-2, setting forth the City's actions,-are enclosed for your files. Please feel free to contact Douglas Dumhart at 949-443-6316 if you have any questions. Very truly yours, Cheryl Joh`hson City Clerk Enclosures cc: Douglas Dumhart (with enclosure) �s San Juan Capistrano: Preserving the Past to Enhance the Future Joao 32400 PASO AoELANTq MEmEBERS OF THE c€TY COUNCIL SAN JUAN CAPISTRANO, CA 92675 i COLLENE CAMPBELL JOHN (949) 493-1 17 �IAtAA731AiEE WYATTGHARTER (949) 493-1053 (FAX) isrAAl saEA 14b1 GIL JONES 1776 DAVID M.SWERDLIN a C€TY MANAGER GEORGE SCARBOROUGH o ° March 9, 2000 Mr. David E. Fahrion CR&R Incorporated 11292 Western Avenue Stanton, California 90680 Re: Transfer of Franchise for Solid Waste Collection Dear Mr. Fahrion: At their meeting of March 7, 2000, the City Council of the City of San Juan Capistrano took action to approve the transfer of the City's solid waste franchise from Solag Disposal Company, Incorporated., to your company, CR&R, Incorporated. A fully--executed copy of the "First Amendment to the Integrated Solid Waste Collection Agreement," and a copy of Resolution No. 00-3-7-2, setting forth the City's actions, are enclosed for your files. Please feel free to contact Douglas Dumhart at 949-443-6316 if you have any questions. Very truly yours, Cheryl Joh son City Clerk Enclosures cc: Douglas Dumhart (with enclosure) DRUG USE is bima Scan Juan Capistrano: Preservsag the Fust to Enhance the Future Ado ion of Resolution Am)rovinsz the Ci 's Nuclear Power Plant SONGS Emer e�ncv Response an: It was moved by CoilMember/JonesondedZNQF ilMember Ca pbell, thatthe following Resolut' n be adopted: RESO TI N O. 96-1DOPTTHE I OF AN JLT CAPISTRANO STANDARDIZED E RGENCY AGEMENT SY M N LEAR P IZ PLANT R ENCY P NSE PLAN D TED 199(5/- A RESOLUT N OF THE Cl COUNCIL OF HE CITY OF S JUAN LAPIS O, CALM A, ADOPTING /THE CITY O SAN JUAN CAPISTRANO STANDARDIZED EMERGENCY AGEMENT SYSTEM(SEM NUCLEAR POWER PLANT(SON }EMERGENC RESPONSE PL DATED JUNE 1996, emotion carried y the following ote: AYES: Council M bers Campbell, Greiner, Hart, Jones, and Mayor S erdlin NOE None ENT: None 3. APPROVAL OF NEW FRANCHISE AGREEMENT FOR E2CL1IVE INTEGRATED SOLID WASTE COLLECTION LAG DISPOSAL CQMPANY INC 600.30 Written Co lmunications: (1) Report dated December 17, 1996, from Douglas Dumhart, Management Analyst 1I, recommending that the proposed new Franchise Agreement for Exclusive Integrated Solid Waste Collection be approved with Solag Disposal Company, Inc. for the ten- year period ending January 1, 2007. The new franchise agreement eliminates the previous policy requiring Solag to collect the City's waste separately from other jurisdictions and the ten-year age restriction on fleet vehicles in exchange for rate reductions for San Juan Capistrano, The Report noted that under the new franchise agreement, the City's commercial aggregate rate would be approximately 7% higher than the City of Laguna Hills. To bring San Juan Capistrano's rates into alignment, Solag Disposal will defer the next three scheduled cost of living increases for commercial accounts. (2) Letter dated December 16, 1996, from Judith.Ware, President of Ware Disposal Co., Inc., requesting the City's support to allow Ware Disposal to subcontract with Solag to provide roll-off, construction and demolition, and temporary services. City Council Minutcs -9- I2/17/96 Douglas Dumhart, Management Analyst 11, outlined the provision of the proposed franchise agreement. Council Member Jones indicated that he would participate and vote on this item since Solag had relocated out of the Los Rios Historic District and the proposed Agreement would impact the entire City. Council Member Hart commended City staff and Solag on working together to develop the proposed Agreement. Approval of New Franchise Agreement with Solag Disposal Corn an Inc.: It was moved by Council Member Hart, seconded by Council Member Jones, and unanimously carried that the new Franchise Agreement for Exclusive Integrated Solid Waste Collection be approved with Solag Disposal Company, Inc. for the ten-year period ending January 1, 2007. The City Manager was authorized the execute the Agreement on behalf of the City. 4. MEMORANDUM OF UNDERSTAN61NG FOR CURATOR SERVICES - MQNTANEZ ADO 500.30 W 'tten Comm ication: eport date December 17, 1996, from J nifer Murray, Assist City Manager, recommend' g that the oposed Me randum of Under: ging for Curation Responsibi ties far the Ma ez Adobe be proved with Rita Tanner ropersi and/or David Whittin n. The MOU: ) allows Ms. T nner Propersi and/or Whittington to provide curatio responsibilitie on a volunteer asis (no compensation), ) provides for the City to pay t e cost of basic onthly teleph e service for the Adob , and 3) requires the City to rei urse the curato s for the actual sts of improvements of t. e property for which the C' h granted prio written approv The Report Hated at the proposed MOU d' ers s rnewhat from. e recommend ion.provided by the Cul ral Heritage Commissio Jennifer Mu ay, Assistant C' y Manager, made an o presentation. She no d that the majority o the recommen ations forwarded by th .Cultural Heritage Co ission were incorpora d into the MO , with the exception of li i ing the artifact display to the Spanish Colon period only (p -1800's); requiring Cul ral Heritage Commissi n review of any propo d exterior than s; and, required quarter meetings with all inte sted parties. She advi d that staff're mmended permitting t display of all artifacts and exhibits of the Ad e's history to e present; review of a proposed exterior in dificatians would be re ewed as require by the Municipal Code; nd, the curators would ake quarterly reports t the City Coun 1, which will be forward d to the Cultural Herit ge Commission. Council Memb r Campbell inquired abo t the proposed provisi n in the MOU to allow the Walking Tour ides to have"unrestric d access" to the Adob . Dr. Murray explained that this access is imited to regular hours hen the Adobe is open to the general public. City Counvil Minutes -10- 12/17/96 AGENDA ITEM December 17, 1996 TO: George Scarborough, City Manager FROM: Douglas D. Dumhart, Management Analyst 11 SUBJECT: Consideration of New Franchise Agreement for Exclusive Integrated Solid Waste Collection. RECOMMENDATION: By motion, approve the New Franchise Agreement for Exclusive Integrated Solid Waste Collection, SUMMARY: Last May, the City of San Juan Capistrano along with the Cities of Dana Point, Laguna Niguel and San Clemente received the final report of a Solid Waste Rate Audit conducted by Hilton, Frankopf and Hobson (HFH). In response to the audit all four cities received an offer from Solag Disposal proposing a rate reduction in exchange for contract modifications and term extension. Solag Disposal indicated that if the restriction that requires the City's waste to be collected separately from other jurisdiction's were lifted, collection efficiencies and economies could be realized from commingling loads. Additionally, Solag Disposal claims,if the ten (10)year age restriction on fleet vehicles were eliminated and the term of the agreement extended from five to ten years, Solag Disposal could refinance their equipment and pass along savings to rate payers. Staff has analyzed the proposal, renegotiated the terms of the Agreement and is presenting for City Council consideration a new agreement that incorporates these changes. BACKGROUND: On August 18, 1992, the City entered into an exclusive Franchise Agreement with Solag Disposal for the collection, transportation,recycling, composting, and disposal of all municipal solid waste including temporary bin and roll-off services. The City of San Juan Capistrano along with the Cities of Dana Point, Laguna Niguel, and San Clemente entered, into similar agreements with Solag Disposal to implement recycling programs to comply with State mandates. Those negotiations for increased services resulted in an agreement with an initial seven(7)year term in order to adequately capitalize the new equipment necessary to provide these expanded services. Commencing July 1, 1996, and every year thereafter, an automatic one year extension is applied to the agreement so that the term remains five (5) years. This roll-over provision of the terra can be terminated by providing the contractor with a written notice ninety(90)days prior to the amival July I FOR CF4 Y COUNCIL AQ U,194`, � 6 ) L. %' AGENDA ITEM December 17, 1996 date. The effect of the provision in Section 5 of the City's Franchise Agreement is to allow the contractor a five year"rolling" term that could continue indefinitely. Term: This five year rolling term presumably enables the contractor to adequately project expected revenues, and afford them the ability to capitalize any major expenses. By exercising the option to terminate the roll-over, the City would end Solag Disposal's ability to seek "automatic" extension of the Franchise Agreement and establish a date certain of June 30, 2000, for ending the current agreement. Under the proposal for City Council consideration is an extension of the term from a rolling five (5)year period to a flat ten(10)year. Should the City Council accept this offer it would set a date certain of January 1, 2007 when the contract will cease. Residential Rates: The City of San Juan Capistrano has a variable rate structure which provides economic incentives to the generator to reduce the amount of waste disposed. With volume pricing the City has some of the highest, yet also some of the lowest rates in the County. When analyzing the rate for our City it is necessary to calculate the aggregate rate for the City as a whole for comparison purposes. Below is a breakdown of the City's current rate. No. of Domes Pr......o—garrr Rate Revenue 1412 2(35)GALLON 11.91 $16,816.92 2890 2(67)GALLON 13.53 $39,101.70 3764 3(67)GALLON 16.12 $60,675.68 8066 $116,594.30 $116,594.30/ 8066 = $14.45 aggregate rate Solag Disposal is proposing a rate reduction in exchange for an extension of their Franchise Agreement to a flat 10 years. If under the best scenario: the City were to terminate the existing Franchise Agreement the existing rates would be binding for the next four years,and could received a competitive bid similar to Laguna Hills of$12.00 thereafter, the following would represent an aggregate rate for an equivalent 10 year period. 2 AGENDA ITEM December 17, 1996 Current Aggregate Rate (4 years) Competitive Aggregate Rate (6 years) $14.45 $12.00 x 48 Mo. x 72 Mo. 693.60 + 864.00 — 1557.6 1557.601 1.20 Mo. (10 years) = $12.98 Aggregate rate The above analysis was and presented to the City Council at their September 5, 1996 meeting. At that meeting staff recommended that if a$12.99 aggregate rate or better could be achieved it would be in the City's interest to renegotiate a new agreement and pass on savings to the ratepayers immediately. To that end, Solag has met that aggregate rate but, has not been able to further reduce the rate below the $12.99 aggregate rate. A breakdown of the new rate proposal by Solag Disposal provides a $12.99 aggregate rate. The following depicts this analysis: No. of Homes Program. Rate Revenue 1412 2(35)GALLON 11.72 $16,548.64 2890 2(67)GALLON 12.99 $37,410.20 3764 3(67)GALLON 13.47 $50,701.08 8066 $104,790.82 $104,790.8218066= $12.99 aggregate rate Commercial Rates: Commercial rates have always had a variable fee based on the frequency of service per week. The same aggregate approach was applied to the commercial accounts,to analyze its cost effectiveness. Again we assumed the San Juan Capistrano commercial rates (less the AB 939 fee explained in the following paragraphs) remain the same for four years and then assume a Laguna Hills rate for six years to provide a 10 year aggregate composite. 3 AGENDA ITEM December 17, 1996 San.Juan Ca istrano Account With San Juan Capistrano Rates Frequency ## of Accounts Fee Total 48 mos. Ix 96 71.21 6,836.16 328, 135.68 2x 145 111.54 16,173.30 776,318.40 3x 118 146.45 17,281.10 829,492.80 4x 31 191.01 5,921.31 284,222.88 5x 59 232.40 13,711.60 658,156.80 6x 31 272.87 8,458.97 406,030.56 Total 480 68, 382.44 San Juan Capistrano Accounts With Laguna Hills Rates Frequency 4 of Accounts Fee Total 72 rhos Ix 96 70.00 6,720.00 483,840.00 2x 145 94.60 13,717.00 987,624.00 3x 118 137.10 16,177.80 1,164,801.60 4x 31 179.50 5,564.50 400,644.00 5x 59 221.90 13,092.10 942,631.20 6x 31 268.10 8,311.10 598,399.20 Total 480 63,582.50 The San.Juan Capistrano aggregate rate equals: 68,382.44 _480 accounts= $142.46 The Laguna Hills aggregate rate equals: 63,582.50 -= 480 accounts = $132.46 $132.46_ 142.46 = .9298 =7% difference between San Juan Capistrano rates and Laguna Hills. 4 AGENDA ITEM December 17, 1996 Our aggregate rate over the 10 year term is approximately 7% higher than. Laguna Hills. To bring rates into alignment Solag Disposal will defer the next three scheduled cost of living increases for commercial accounts. In 1989 the City implemented a pilot recycling program, hired a consultant to prepare the state mandated recycling plan,and developed a budget to fund a regional authority to manage solid waste as envision by AB 939. These costs were spread to all rate payers with a 10% increase. In 1992, when the current contract was approved to implement city-wide curbside recycling the 10% was absorbed into the higher rate for increased service. However,the 1.0%levee on commercial accounts remained. These fees have been deposited in the general fund and amount to approximately$85,000 annually. Solag has indicated that they have no room to negotiate on commercial rates and request that we remove the City surcharge to bring the rate to a comparable competitive amount. The City continues to incur approximately$1.6,400 in expenses to monitor, manage, and report on recycling activities. Staff is recommending that all but$16,400 of the surcharge levied in 1989 be removed. The amount of the AB 939 assessment necessary of commercial accounts to cover these expenses is equal to.0199% of the total rate and assumes no levee on roll-off or on-call services. Reduction of the surcharge makes our commercial rate closer to but still higher than the rates in Laguna Hills,Mission Viejo, and Labe Forest. However, San Juan Capistrano's rates are lower than the Cities of Dana Point and San Clemente. A breakdown of the rates being considered for commercial and industrial accounts are as follows: 3 Cubic Yard Bin 1x 2x 3x 4x 5x 6x Existing Rate 77.65 121.29 159.52 207.28 252.21 296.07 Proposed Rate 72.63 113.76 149.37 194.82 237.14 278.32 Regular Service Existing Proposed DOB 169.29 + Disposal 138,56 +Disposal Compactor 174.84 +Disposal 138.56 + Disposal On-Call Service Existing Proposed 36 Cubic Yard DOB 371.66 341.07 Lowboy DOB 444.84 408.56 3 Cubic Yard Bin (24hr) 41.97 38.64 3 Cubic Yard Bin(7 Days) 54.04 49.76 5 AGENDA ITEM December 17, 1.996 Roll-off Service: The City has been approached by another hauling company to entertain a separate exclusive contract for on-call roll-off service. In 1992 the Council adopted a contract providing for exclusive service for all solid waste needs to one service provider. Currently that contract is still binding until the year 2000. There are two competing haulers that have grandfather rights to operate in San Juan Capistrano until 1998. Staff has queried Solag Disposal regarding the matter and they claim,roll-off service is an essential part of the franchise agreement which is used to determine the overall rates for the City of San Juan Capistrano. Their offer for a rate reduction in exchange for a term extension does not include the deletion of any services granted to them in their present contract. The current contract does not contain benchmarks for service levels on roll-off accounts. To ensure continued responsiveness to the community's needs staff has included service level standards in the proposed contract. The hauler is required to service on-call roll-offs within 24 hours of call for service except Sundays and holidays. FINANCIAL CONSIDERATIONS: It is important to understand that the service rate is comprised of three components: Base Fee + Disposal Fee + Franchise Fee = Total Rate. The purpose of having three components is so that periodic rate adjustments correspond as closely as possible to the actual changes in Solag's operating cost. The base fee is adjusted to the annual change in the Producers Price Index, the disposal fee is adjusted according to change in landfill tipping fees, and the franchise fee is adjusted to equal 5% of the gross annual receipts of the base fee from accounts covered by the agreement. Because two competing haulers have grandfather rights until 1.998 franchise fees for on-call bin service are not due until this service is truly exclusive. Franchise fees are placed in the General Fund to offset expenses associated with the wear and tear on the City's infrastructure due to managing municipal solid waste. Assuming the City could achieve similar rates as Laguna Hills through bidding in four years, accepting the new terms (San .yuan Capistrano) residents and businesses can begin receiving the benefits of rate reductions immediately. The aggregate savings over taking this proposal now versus a best case bid scenario in four (4) years is $565,265.28 for residents and $286,617.60 for commercial customers. That is a total savings to the community of$851,882.88 for the term of the contract. NOTIFICATION: Jim Kotroulis, Solag Disposal William O. Talley, Talley and Associates 6 AGENDA ITEM December 17, 1996 Morton August, City of Dana Point Lois Thompson, City of San Clemente Ken Montgomery, City of Laguna Niguel Judith Ware, Ware Disposal ALTERNATE ACTIONS: 1. By motion, approve the New Franchise Agreement for Exclusive Integrated Solid Waste Collection, 2. By motion, approve written notice to terminate the contractor's right to exercise its option for an annual extension of the agreement. 3. By motion, receive this report and take no action to exercise option to terminate roll-over provision at this time. 4. By motion, receive this report and refer to staff for more information. RECOMMENDATION: By motion,approve the New Franchise Agreement for Exclusive Integrated Solid Waste Collection. Respee lly submitted, '00 61ZI4�0�v� Douglas D. Dumhart Management Analyst IT Attachment: Agreement CAAG7 VDASI1996112-I7RAT.NEG Copy of Agreement available for public review in the Office: of the City Clerk. 7 WARE DISF JSAL CO., INC SERVING SOUTHERN CALIFORNIA SINCE 1968 P.O. Box 8206 e Newport Beach ® California 92658 REOEIVED (714) 834-0234 (619) 736-4960 ® Fax (714) 760-1223 DEC 17 14 si PH '96 ITY K U, P. C. A N December 16, 1996 J UAs A P 1 S"IF 10 Mr. George Scarborough, City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, California 92675 Dear Mr. Scarborough, Thank you for facilitating the meeting between the Ware Disposal Company and Solag. Your evenhanded approach and handling of the meeting was very much appreciated. Under the circumstances, the result was a relatively positive meeting. As for Ware Disposal, Ware wants very much to provide solid waste and recycling services to San Juan Capistrano and to be active in support of the City and the community. To do so, we need the continued support of yourself and the City Council . You have made it quite clear that you continue to have concerns regarding Solag' s responsiveness and ability to meet "service levels standards", including a requirement "to service on-call roll-offs within 24 hours", which have been established for the revised, and soon to be extended, exclusive franchise agreement . The "roll-off" service includes Construction and Demolition and other temporary bin services . In this regard, we understand that you have advised Solag that sub-contracting for backup roll-off and. temporary bins services, to insure compliance with the 24 hour service standard, would be a requirement of the City' s exclusive franchise. I must note that without a sub- contract, there will be no legitimate role for another hauler. Ware Disposal, as you stated in our meeting, has an interest, is qualified, meets with your approval and would be an acceptable and suitable sub-contractor for these roll- off, C&D, and temporary bin services . Your continued support and encouragement for such an arrangement is very much appreciated. At the meeting which you facilitated between Solag, Ware, and the City, Solag committed to entering into a sub- contract arrangement with Ware. Mr. Scarborough, the possibility exists for this to become a real opportunity for Ware, Solag, and the City of San Juan Capistrano . Ware, as you and members of the City Council well know, is well qualified to provide solid waste and recycling services and is ready to sub-contract with Solag immediately, provided of course that the agreement with Solag is workable. It is our understanding that Solag will prepare a subcontract agreement for Ware ' s consideration. In this regard, we ask for your continued interest and support. We ask that you use your good office to make certain that the sub-contract to provide roll-off, C&D, and temporary services to Solag be a real, meaningful, effective and workable contractual arrangement, and not simply a paper contract with empty commitments . Moreover, this subcontract should come to closure concurrent with the implementation of the revised franchise agreement. Needless to say, this too will be an important concern for the City. I have no doubt that you and the City Council will insist that a subcontract agreement to provide a assure compliance with the 24 hour service standard can and will work. Again, it is important that an agreement be concluded in a very timely manner. As we have stated previously, Ware wants to continue to provide solid waste and recycling services in San Juan Capistrano and to be supportive of the City and the community. In order to do so, Ware quite obviously requires work in addition to the services we are already performing. A meaningful contract with Solag will give us that assurance. We look forward to additional discussions with Solag and trust that you will facilitate such additional meetings that may be required, so that both Ware and Solag need not concern themselves about Federal anti-trust issues . I am hopeful that very shortly, with your assistance, a meaningful sub-contract between Ware and Solag will become a not only a reality, but a mutually beneficial arrangement for Solag, Ware and, most of all, for the residents of the City of San Juan Capistrano . 2 I look forward to meeting with you again and, I again thank you, Douglas Dumhart, and the City Council for the effort to date. Yours truly, udith Ware, President cc: Mayor and City Council 3 d Refuse Companies r SAN CLEMENTE COMMERCIAL Commercial Industrial-Residenliat _ — Complete rubbish removal service a. Storage boxes m Renta-bins s` Construction Boxes May 28, 1996 George Scarborough City Manager City of Sass Juan Capistrano 32400 Paseo Adelanto Sart Juan Capistrano,CA 92629 RE: Solid Waste and Recycling Agreement Dear Mr. Scarborough, Solag Disposal is proposing new rates with modifications to the franchise agreement which will benefit the Residents of San Juan Capistrano and Solag Disposal. Solag Disposal is proposing the following option to the present variable rate structure for the City of San Juan Capistrano: Current rate is as follows: (2)35 gallon rate (2)67 gallon rate (3)67 gallon rate $11.91 $13.53 $16.12 The aggregate rate(the average of 35 gal&67 gal)calculates to$14.62 per resident. Proposed rate is as follows: (2)35 gallon rate (2)67 gallon rate (3)67 gallon nate $11.79 S12o98 $14.94 The aggregate rate(the average of 35 gal&67 gal)calculates to 513.81 per resident. In order to accomplish the new proposed rate the following modifications of the franchise agreement are required. This would accomplish a substantial rate savings for the residents of Saga Juan Capistrano: 1. Modify Section 6 A(1),which would give Solag the ability to commingle loads and increase rotate efficiency. 2. Delete Section g A(1),pertaining to the age specification of vehicles. All Solag Disposal vehicles are inspected by the California highway Patrol and monitored through the California BIT program. 27372 Calle Arroyo,Sari Juan Capistrano,CA 92675 P.O.Box 1100,San Juan Capistrano,CPL 92693 Telephone 714.240.0446 ® Fax 714.240-0195 3_ Modify Section 5,Term,change to a flat ten(10)years,which will provide the ability to refinance our present equipment over a longer term.. In summary the new proposed rates will provide the following savings to residents over a ten year period_ PROPOSED RATE SAGS o S 784.,000.00 Solag is available to address any questions or any concerns. Sincer , r Thomas Trulis F @x A ri '� MEMBERS OF THE CITY COUNC#L COLLENE CAMPBELL .. .. JOHN GREINER ''m[oeraaat[[ WYATT HART EnpsEfHFo i f961 GIL JONES 1776 DAVID M.SWERDLIN CITY MANAGER ® GEORGESCARBOROUGH • December 19, 1996 Mr. Tom Trulis Solag Disposal P. 0. Box 1100 San Juan Capistrano, California 92693 Re: lntearated Solid Waste Collection Agreement Dear Mr. Trulis: At their meeting of December 17, 1996, the City Council of the City of San Juan Capistrano approved an Integrated Solid Waste Collection Franchise Agreement with your company for a 10-year period of January 1, 1997 through January 1, 2007. A fully-executed copy of the Agreement is enclosed for your files. Please feel free to contact Douglas Dumhart at 443-6316 if you have any questions. Very truly yours, Cheryl Joh on —9C City Clerk Enclosure cc: Lois Thompson Morton August Ken Montgomery William Talley Judith Ware Douglas Dumhart 32400 €'A EO ADELANTO, SARI .DUAN CAPSTF2L8NO, CALIFORNIA 92675 � (714.) 4933 11'71 Christy ,1akl R From: Julie Weaver<jweaver@crrmai.com> Sent: Tuesday, December 20, 2011 10,29 AM To: Cindy Russell; Ziad Mazboudi Cc: Dean Ruffridge Subject: SJC- Final credits Attachments: SJC Rate Calculations 2011 final with correct numbers.xls Hello-Attached is the worksheet, rounding to the tenth. Please approve the yellow columns and I will update the detailed records. Also, please confirm the message. Thanks Julie Julie Weaver, CPA Vice President of Finance CR&R Incorporated 11292 Western Ave. Stanton, CA 90680 714-826-9049 Ext 2207 1 a 'ifiR JLrtil�( 14aPi:�hX, F..SIk FebFUary 26, 2004 City of San Juan Capistrano Mayor Joe Soto 32400 Paseo Adelanto San Juan Capistrano, CA 9267. Dear Mayor t6-� I have prepared this letter to advise you that CR&R's Recycling Coordinator, KUnBerly Acosta, will be leaving the company as of February 27, 2004 to work with the consulting firm Economics of Santa Barbara. She will be working directly with your consultant, William O'Toole, to promote recycling efforts on a state and national. level. CR&R has been fortunate to have KimBerly as a member of our team, and we will miss her. Although KiniBerly leaves at a critical tune in. our 1.066 plans, we will work diligently to till her position at the earliest possible opportunity. In the interim, the remaining team of Maria, George, Carman, and myself will continue to implement the 1066 plans and meet our goals set for April I" and July 1' CR&R is committed to continuing and expanding the recycling prog=rams established by KimBerly. While she has demonstrated an incredible enthusiasm for the recycling programs, we will work hard to find a replacement with a similar environmental ethic and passion for the business. During this time of transition, please contact Maria Lazaruk or myself directly with any questions you may have. It has been our pleasure working with Kinaf3erly with her innovative ideas and philosophies, and we all wish her all the success as she seeps to "Save the World". Sincerely, Dean A. Ruffridge Senior Vice President ("ClLiad Mazboudi i iL p 7a,-:l Er t.' MEMORANDUM February 14, 2001 TO: George Scarborough, City Manager ( teFROM: Douglas D. Dumhart, Principal Management Analyst SUBJECT: CRR Management Changes Yesterday at our regional meeting with the hauler they announced some management changes. The significant changes that will be visible to us are: 1. Jim Koutroulis will be in charge of Governmental Affairs (lobbyist) and no longer in charge of day to day operations. 2. Steve Wright will be the General Manager in charge of day to day operations. 3. Maria L.azasuk will be an Community Liasion/Recycling programs person similar to the post Dan Batty occupied. Attached is an organization flow chart and a directory for your information. :jr cc: C`lerk.s Office C:IDOUGLASIWAS'rE\CRR changes.wpd January , Incorporated ®uta Orange County SolidWaste Management Division Cliff Ronnenberg Chaim-)an David Fahrion Division President Jim Koutroulis Solid Waste Management Director of Govemmentai Affairs Tom Kourloulis ..Roger Van Valkenburgh Management Anafyst Vice President Steve Wright General Manager Bob Williams Maria Lazaruk Bert Stewart =__,,OpenRecycling Community Service LFleet Maintenance ce Coordinator Director Mana erg Gregg Perez Juan Velasco tn Luis 2eenn Damian Cardona` Route Supervisor Residential Commercial Night Supervisor Dispatch Dispatch I Day Shift Night Shift Customer Service Employees Employees Employs 11292 WESTERN AVE, 0A � TE P.O.BOX 125 M A N A G E N E N T STANTON,CA 90680 0 I V I S 1 0 N FAX 714893.3984 714-891-8844 714.527-8383 C'R&R Incorporated .South ®range County Solid Waste Management Division The following is a list of contacts and their areas,of responsibility for the South Orange County Operation. This has been prepared in an effort to provide the Cities with a guide of who to contact for specific areas of CR&R's operation. Personnel "Title Office Phone Mobile Phone Cliff R©nnenberg Chairman (800) 826-9677 David Fahrion President (800) 755-8112 (714) 323.-2194 Paul Relis Senior VP (800) 826-9677 (714) 292-5579 Jim Koutroulis Gov. Affairs (949) 728-0446 (949) 463-5811 Roger VanValkenurgh Vice President (949) 728-0446 (909) 5221483 Steve Wright General Manager (949) 728-0446 (949) 290-2597 Maria Lazurek Community Service (949) 728-0446 (949) 463-5808 Patty Alexander Cust. Service Sup. (949) 728-0446 Jorge Llamas Lead Cust. Service (949) 728-0446 (949) 463-9744 Bob Williams Recycling Coord. (800) 826-9677. Corporate Issues: David Fahrion Contract Issues: David Fahrion, Jinn Koutroulis. Operational Issues: Roger VanVaJkenburgh, Steve Wright Community Service: Maria Lazurek, Roger VanValkenburgh Customer Service: Patty Alexander, Jorge Llamas Annual AB939 Reports: David Fahrion, Paul Relis Monthly Diversion Reports: Bob Williams Commercial Recycling: Maria Lazurek, Steve Wright `��eerc�n�wce DEC 2 1 201? VIA OVERNIGHT MAIL December 16, 2011 Mr. Ziad Mazboudi Senior Civil Engineer City of San Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1623380 Term: 12/17111-12/17112 Na Dear Mr. Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful erEormAce. he Franchise Agreement. �a C Please feel free to contact me if you have any questions. `' Regards, r oger Bell, ARM Risk Manager /rb Enclosure CR&R INCORPOPATED 11292 WESTERN AVE. P.Q.BOX 125 STANTON,CA 90680 800.826.9677 714.826.9049 714.890.6347 Fox WWW.CRRINC.NET BOND NO. 1623380 PREMIUM: $1,000.00 PERFORMANCE BOND KNOW ALL, MEN BY THESE PRESENTS: That Solag Disposal, Incorporated and CR&R Incorporated as Principal,and Great American Insurance Company,as Surety are held and firmly bound unto the City of San.Tuan Capistrano, as Obligee, in the sum of One Hundred'Thousand and no/100s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS,the Principal has entered into a certain written contract with the Obligee for: FOR FAITJ[-iP'[TL PERFORMANCE OF THE FRANCHISE AGREEMENT. Term December 17, 2011 throngb December 1.7,2012. NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2011 and ending on December 17, 2012 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30) written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sure of this bond. SIGNED, SEALED,DATED:November 15,2011. Solag Disposal Incorp ted and CR&R Great American Insurget Company Incorpor By: "Uaf g0,ta4.Thorsen,Attorney-in-Fact ` CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of LOS &N&EQCS 0 � 11 /15/11 On before me, D0DOyA MAC LELLANNOTARY PUBLIC personally appeared Margareta. T. Thnzoezz who proved kzmeonthe basis ofsatisfactory evidence to be the person(o) whose name(s) is/are subscribed to the within ina1rument and ooknow|edQed in me 1ha1 he/she/theyexecuted the same inhis/herAheirauthorized Com 1 24271 ooponity(iea), and that by his/her/their signature(u) on the Notary Public-California z instrument the person(s), or the entity upon behalf of Los Angeles County !Z which the peroom(o) acted, executed the instrument. | certify under PENALTY OF PERJURY under the |evvs of the State nfCalifornia that the foregoing paragraph is true and correct. WITNESS myhand and official uaaL p�"6wm°,S='^�� �igna1une OPTIONAL Though the^monnam,,below is not required by law, it may prove valuable to persons relying o//the document and ooumprevent fraudulent removal aoa/namacbmmnt of this torn) /o avnma,uuuvman/ � Description ofAttached Document TiUe orType of Document:---- Document Date: ooumenL:_________UocumeniDate: Number ofPages ______���________ 8ign*r(a) Other Than Named Above� Caponity(iem) 0mimedby Signer(s) Signers Name: Signer's �ame� O Individual O Individual ----' U OurpmrateOffioor—Tit|ol OCorporate Officer—Tit|e(u):�___ U Partner--O Limited O General O Panmer--[] Limited [j General LX AUurnayin Fact OA�nmeyin Fact L! "� " "»* mw| 7iuotee p" ~ 'Trustee ] Guardian or Conservator O[ ( uarUimn � or Conservator O Other: � UOt oc Signer Is Representing: Signer Is RepmomnbnQ:__________ S1029AS(2111) GREAT AMERICAN INSURANCE COMPANY @ Administrative Office: 301 E 4TH STREET• CINCINNATI,OHIO 45202 s 513-369-5000 0 FAX 513-723-2740 Thenumber of persons authorized by this power of attorney is not more than TWO No.094123 POWER OFATI'ORNFY KNOW ALL MEN BY THESE PRESENTS: That the GREAT AMERICAN INSURANCE COMPANY,a corporation organized and existing under and by virtue of the laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below,each individually if more than one is named, its true and lawful attorney-in-fact, for it and in its name,place and stead to execute on behalf of the said Company,as surety, any and all bonds, undertakings and contracts of suretyship, or other written obligations in the nature thereof, provided that the liability of the said Company on any such bond, undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power BOTH OF BOTH JOHN P. BROOKS PASADENA $75,000,000.00 MARGARETA T.THORSEN CALIFORNIA This Power of Attorney revokes all previous powers issued in behalf of the attomey(s)-in-fact named above. IN WI'T'NESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate sea]hereunto affixed this 18«` day of, JULY, 2011, Attest GREAT AMERICAN INSURANCE COMPANY SCM kkSflq c e0"4P STATE OF OHIO,COUN'T'Y OF HAMILTON-ss: DAVID C.xrrCxiN(513-412.4602) On this 18a' day of ,2011, before me personally appeared DAVID C.KITCHIN,to me known,being duly sworn,deposes and says that he resides in Cincinnati,Ohio,that he is a Divisional Senior Vice President of the Bond Division of Great American insurance Company,the Company described in and which executed the above instrument;that he knows the seal of the said Company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. KAREN L.GHOSHEIM , y NOTARY PUBLIC,STATE OF OHIO " Y COMMISSION EXPIRES 02-2U-16 ��<rf This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated June 9,2008. RESOLVED: That the Divisional President, the several Divisional Senior Vice Presidents, Divisional Vice Presidents and Divisional Assistant Vice Presidents, or any one of them,be and hereby is authorized,from time to time,to appoint one or more Attorneys-in-Fact to execute on behalf of the Company, as surety, any and all bonds, undertakings and contracts of suretyship, or other written obligations in the nature thereof to prescribe their respective duties and the respective limits of their authority;and to revoke any such appointment at any time. RESOLVED FURTHER: That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the Company may be affixed by facsimile to any power of attorney or certificate of either given for the execution of any bond, undertaking, contract of suretyship, or other written obligation in the nature thereof,such signature and seal when so used being hereby adopted by the Company as the original signature of such officer and the original seal of the Company,to be valid and binding upon the Company with the same force and effect as though manually affixed. CERTIFICATION I,STEPHEN C.BERAHA,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of June 9,200j8 have not been revoked and are now in full force and effect. Signed and sealed this 15th day ofNOVember 2011 , Gy 1'zfW,py A F- $1029Y(q 0/08) ACKNOWLEDGMENT State of California County of Orange on 12/16/2011 before me, Kim U. Nguyen, Notary Public (insert name and title of the officer) personally appeared Clifford Robert Ronnenberg 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. KIM U. NGUYEN Commission# 1904761 WITNESS my hand and official seal. .- Notary Public -California Orange County My Comm.Expires Sep 26,2014 Signature (Seal) `h[ I VIA OVERNIGHT MAIL December 9, 2010 Mr. Ziad Mazboudi Senior Civil Engineer City of San Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1623380 Term: 12117110-12117111 Dear Mr. Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful performance of the Franchise Agreement. Please feel free to contact me if you have any questions. Regards, 4,114, ager Bell, ARM Risk Manager /rb Enclosure CR&R INCORPORATED 11292 WESTERN AVE, P.O.BOX 125 STANTON,CA 90680 800.826.9677 714.826.9049 714.890.6347 Fox WWW.CRRINC.NET BOND NO. 1623380 PREMIUM: $1,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag.Disposal, Incorporated and CR&R Incorporated as Principal, and Great American Insurance Company, as Surety are held and firmly bound unto the City of San Juan Capistrano, as Obligee, in the sum of One Hundred Thousand and no/100s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly tc be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a certain written contract with the Obligee for: FOR FAITHFUL PERFORMANCE OF THE FRANCHISE AGREEMENT. Term December 17, 2010 through December 17,2011. NOW, THEREFORE THE CONDI'T'ION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2010. and ending on December 17, 2011 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30) written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNED, SEALED, DATED: December 1,2010. Solag Di a nc p a d a d CR.&R Great American Insurance Company lncore By: B ` rg Thorsen,Attorney-in.-Fact ALMOREMPA ALL-6"PURPOSE AC HOWLEDOMERAT State of California County of Los Angeles On DET, before me, Donna Mac Lellan9 Notary Pub1ic Date ._.� Here insert Name and Ttle of the Officer personally appeared Mi argareta T. 'Thorsen Narna(s}of swer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the � s� ga within instrument and acknowledged to me that LEr.iAN he/she/they executed the same in his/her/their authorized Commission# 1824271 ca acit fes and that b his/her/their si na#uro s an the . c ) " Notary Public -California zz '� E � instru€nent the person(s), or the entity upon behalf of Lcs AOgle us County My Comm,Expires Dec 21,20'12 which the person(s) acted, executed the instrument. I certify under P NALI 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��.......:......._ Place Notary Seal A4ovn Signature cf Notary Public Ofd f/IlONAL __..._.._ ....�.... _... Though the information below is not required by law, it may prove valuabfe to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. DascrlpVon of Attached Document Title or Type of Document: Document Date: _. Number of Pages:_- Signer(s) Other Than Named Above: Capacity(ies) CM ed by SlgneT(s) Signer's Marne: Signer's Name:--- F] ame:.__F] individual D Individual 71 Corporate Officer—Title(s): _. D Corporate Officer—Titie(s): __ D Partner---0 Limited ❑ General �. ❑ Partner--Lf Limited n General �–�- Attorney in Fact z m® W°ice C i Attorney in Fact ° D Trustee Top of thumb here D Trusteo Toga of thumb here D Guardian or Conservator Cl Guardian or Conservator D Other._._� _— CJ Other: _. Signer Is Representing: Signe Is Reprosenting:___ _._ _�2.OD7^'_f;ana}`i_aq_a�n�a;{nnoa Snn Sptoa,, ,Pn,E_or�a_r,�o�:tatsrrorii;,CA ni37`-2en2ixf�:ru.Narin�;,alfdntaEy.erg Merp45907 Reorder.Call'rolj+tee7-804-876-6£327 GREAT AMERICAN INSURANCE COMPANY® Administrative Office. 580 WALNUT STREET R CINCINNATI,OHIO 45202 ° 513-359-5000 • FAX 513-723-2740 The number of persons authorized by tliis power of attortsey is not snore than TWO No.0 14123 POWER OF ATTORNEY KNOW ALL MEN B Y TIIF.SE PRESENTS: That(lie GREAT AMERICAN INSURANCE COMPANY,a cortzarationorganized and existing under and by virtue of the taws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named Below,each individually if more than one is n2mcd,its true and lawful attorney-in-fact,for it and in its name,place and stead to execute on behalf of the said Company,as surety.any and all honds, undertakings and contracts of suretyship,or other written obligations in the nature thereof;provided that the liability of the said Company on any Such bond, undertaking or contract of suretyship executed tinder this authority shall not exceed the limit stated below, Nanne Address Limit of Power JOHN P.BROOKS BOTH OF BOTH MARGARETA T.THORSEN ARCADIA,CALIFORNIA $75,000,000.00 This Power of Attoraoy revokes all previous powers issued on behalf of the attorneys)-in-fact named above. IN WITNESS WHEREOF the GREAT AMERICAN INSURA,NCF COMPANY liar caused these presents to be signed and attested by its appropriate officers and its corporate seal hercumo affixed this 11TH clay of AUGUST 1 2010 Attest GREAT AMERICAN INSURANCE COMPANY Y 'ate, assistcdnt Serretcu•r -------------------- -- " "" tT1`[F�t7j�tnl' iYrjt"1'liZrT1'ei -.- "_" ..-- STATE OF OHIO,COUNTY OF HAMILTON,-ssr —DAVID C.ktCttNis7?�(s13.412-aso2) On this 11TH day of AUGUST 2010 before hahepersonally appeared DAVID C.ICITCHIN,tome known.,being duly sworn,deposes and says that be resides in Cincinnati,Ohio.dial he is a Divisional Senior Vice President of the Bond Division of Great American lasurance Company,the Company described in and which executed the above illstrumen€;that he knows the seal of the said Company;that the seal affixed to the said instrument is such cor-lzorate seal;that it was so affixed by authority of his office under the By-Laws of said Company;and that he signed his name thereto by lake authority. rant r KAREN L,GROSIEIM 3 NOTARY PUBLIC STATE OF OHIO This Power cf 15. A M1C�'t1tt�RL .t I 199Ael'dllowing resolutions adopted by the Board of Directors of Ureat American.Insivance Company y t' anh ons written consent dated.lune 9,2008. RESOLVED: Thai the Divisional President,the several Divisional Senior Vice Presidents,Divisional Vice Presidents acid Divisonal Assistant Vice Presidents, or any one off thern,be and herehy it authorized,frame time to time, to appoint one nr more Attorneys-in-Fact to execute an br ho of the Company, as surety;any arid.all bonds,undertakings and contracts of suretyship,or oih.er written obligations in the nature thewaf;to prescribe their respec:hbe duties and the respective limits nf'their authority;and to revoke any,such appointment at any Furze. RESOLVED FURTHER, That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary r�'the Company may be of fixed by facsimile to any power of altonney or certificate of either given fur the execution of arty bond, undertaking,contract of suretyship, or other written obligation in the mature thereof;such signature aril seal when w used being hemby adopted by the Company as the original signarure of such officer and the original seal af'l'he Carnharty,to be valid and binding upon the Company with the sarne farce and effect as though manually affixed. CERTIFICATION I.STEPHEN C.BERAHA,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of June 9.2.005 have not been revoked and are now in full force'and effect. Signed and scaled this day of D C rc 4 F J t "�i R5 s is rcutT Sc a e&ri a v.L.'.i �[�:. Fi _Al �. 2-1c, ' y n State o` C illornice CALIFORMA I Oil 0�0 be'fore rne, _ V__410 � Q 3 11 �4G —r ins rt ra e 'nd Ci CI^o4 the �F 7 pei-sonally appeared�f��� � t�YIV��P, er _ R who proved to me on die basis of satisfactory evidence to he the person(s)whose narne(s) Ware su€bsc�-Ibed'!o � i the within instrurnent and acknovrledged to me that he/she/they executed the same in his/her/their authorized capacity(les), and 'that by his/her/their signature(s) on the instrurnent the person(s), or the tenuity upon i elialf of which the person(s)acted,executed the instrurnent. i certify under PENALTY OF PERJURY under Lige laws of the , State of California-that the foregoing paragraph is true and correct. KIM U. idGUYEId Commission * 1904761 I «es Notary Public -California WITNESS my hal-id and official seal. ©range County My Comm Expires Se 26 2U�4 Signature (Seal) OPTIONAL INFORMATION Although the informatic n in this seciiorr is not required bylaw,it could prevent fraudulent removal and reattachment of this acl<no lodgment to an unauthorized document acrd may prove useful to persons relying ori the attached document. ❑escripi=iori of o_ached Document The preceding Certificate of Acknowledgment is attached to a document Method of Signer identificaison W titled/for the purpose or Proved to me on.the basis of satisfactory e ridence: j Y i'Yl'1 t�VIC�. �pYl � � _ t6 � _ _ orm,s o 2enEl*Ecai'lon ire I evv�f��ess,es Votaria l event is detailed in nota ry i ourna,o11: con wining pages,and dated �� rage# E'. The igner(s) capacity or authority is/are as: Notary contact: Individ al(s) C1t)rer Attorney-in-Fact (. . - ---- – -__..� [ ❑ Additicii-:ai Signersr) ❑ Sig er(s)'rht�mbpriist's) gcor orate officer sr G l�Gl1,C � Titie(€) LJ E ❑ G€lardian/,'o135ervatof " 7 ❑ Partner-Limited/Ge`leraE ❑ RUStee(s) i��l Other: representing: j x.E LVa n�et5}oF'�isnr€(s}or�ntfty(i�si 57gner[s Rc--�_e ectEng N rD Copyright 2007 Notary 4otary,ln�,925 290 5t.,Des N!oines,!A 50312-3612 Foam ACK03, IM7. to re-order,[ah tol3-I:ea 1-87`1-349 fiS8II ur vaslt u5 nit the interne€at htt /lwt�`N.noCary:atory.corn E I VIA EXPRESS MAIL December 2, 2009 Mr. Ziad Mazboudi Senior Civil Engineer City of San Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1623380 Term: 12/17/09-12/17/10 Dear Mr. Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful performance of the Franchise Agreement. Please feel free to contact me if you have any questions. Rega s, fMY/ orerBell, ARM Risk Manager /rb Enclosure CR&R INCORPORATED 11292 WESTERN AVE. P.O.BOX 125 STANTON,CA 90680 800.826.9677 714.826.9049 714,890,6347 Fax www.caRINCINET BOND NO. 1623380 PREMIUM: $1,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal, Incorporated and CR&R Incorporated as Principal, and Great American Insurance Company, as Surety are held and firmly bound unto the City of San Juan Capistrano, as Obligee, in the sum of One Hundred Thousand and no/100s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and. assigns, jointly and severally, firmly by these presents, WHEREAS,the Principal has entered into a certain written contract with the Obligee for: FOR FAITHFUL PERFORMANCE OF THE FRANCHISE AGREEMENT. Term December 17, 2009 through December 17,2010. NOW, THERE'F'ORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2009 and ending on December 17, 2010 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30) written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNED, STAKED,DATED: November 20`x', 2009. Solag Di sal,1 rpo ted and CR&R Great American Insurance Company Incor ra By: --- -— Maga .T orsen,AVorney-m-Fact� f CALI LY'�O R3MU A ALL-PURPOSE State of 'California County of, Los Angeles NOV 2 0 0O Donna bac Lellan9 Notary Public O€� before me, .___. — -. "�"�-Date Here In�e�i Name and Title of 1hp 6fficer personally appeared � Margareta T Thorsen Nomas}of Sldner{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 t)ON1144 MAC LELLAN he she/they executed the sarne in his/her/their ter/their authorized Commission o 1824271 1 capacity(ies), and that by his/her/their signature(s) on the Notary public-California instrument the person(s), or the entity upon behalf of ' Los Angeles County My Gomm. fres Dec 21,2612 which the persons) 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 nand and official seal. Signature Place Noiary Seal AbaVc �y Signature Of Notary Public ;y{� Though the information below is not required by law, it may prove valuable to persons relyfng on the document and could prevent fraudulent removal and reattachment of this form to another document. DescrIpHon of Attached Document Title or Type of Document Bate: _ _ _ W_ Number of Pages: - Signer(s) Other Than Named Above: Capacity(lies) Ctalimied by ftner(5) Sig or's Name: _ _.._ _..— Signer's Name:--.------- Ll ame: _ - Ll Individual L� individual U Corporate Officer-----TNe(s): _. _.. ❑ Corporate Officer—Title; s):� ..-- C1 Partner—❑ Limited l General Ej Partner—❑ Limited ❑ General )[X- Attorney in Pact G,d0 G L-3 Attorney in Fact Trustee Tc at ti"wr b hal': op©1!hun-�F�dere � 0 Trustee El [ GUardian or Conservator ❑ Guardian or Conservator E] Other: _ __ _ ❑Otl er: __ Signer Is Pepresentfng:Y W.._._._ Signer Is Representing:--- . epresenting: _-_ — CCJ2007 Naftiat Notary,Association 9366 De Soto Ave.,PJ Box 2402 Chalswotth,CA 913 3 2402 e wmw:jsnonalNolary.urg ?fern,r.907 Neoidei�Cal.TD€I"Free i 800-876-C827 GREAT AMERICAN INSURANCE COMPANY® Administrative Office: 580 WALNUT STREET• CINCINNATI, OHIO 45202 • 513-369-5000 • FAX 513-723-2740 The number of persons authorized by this power of attorney is not more than TWO No. 014123 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS:That the GREAT AMERICAN WSURAI ICE COMPANY,a corporation organized and existing under and by virtue of the laws of the State of Ohio, does hereby nominate, constitute and appoint the person or persons named below, each individually if more than one is named, its true and lawful attorney-in-fact, for it and in its name, place and stead to execute on behalf of the said Company, as surety, any and all bonds, undertakings and contracts of suretyship, or other written obligations in the nature thereof, provided that the liability of the said Company on any such bond, undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Dower JOHN R BROOKS BOTH OF BOTH MARGARETA T.THORSEN ARCADIA, ,$75,000,000.00 CALIFORNIA This Power of Attorney revokes all previus powers issued in behalf of the attorney(s)-min-fact named above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this day of, 2009. Attest GREAT AMERICAN INSURANCE COMPANY STATE OF 01-HO,COUNTY OF HAMILTON-ss: DAVID C.KiTCHdN (513Al2-4602) On this day of 2009, before me personally appeared DAVID C.KITCHIN,to me known,being duly sworn,deposes and says that he resides in Cincinnati,Ohio,that he is the Divisional Senior Vice President of the Bond Division of Great American Insurance Company,the Company described in and which exccutedthe above instrument;that he knows the seal of the said Company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the Sy-haws of said Company,and that he signed his name thereto by like authority. This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors ofGreat American Insurance Company by unanimous written consent dated March I, 1993. RESOLVLD:That she Division President,the Division Sentor Vice President,the several Divisional Vice Presidents and Divisional Assistant Vice Presidents, or any one of them,he and hereby is authorized,from time to time,to appoint one or more Attorneys-in-Fact to execute on behalf of the Company,as surety,any and all bonds,undertakings and contracts ofsuretyship,or other written obligations in the nature thereof-to prescribe their respective duties and the respective limits of their authority;and to revoke any such appointment at any time. RESOLVED,FURTHER: 7 hat the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the Company may be affixed by facsimile to any power of attorney or certificate of either given for the execution of any bond,undertaking,contract or suretyship or other written obligation in the nature thereof,such signature and seal when so used being hereby adopted by the Company as the original signature of such officer and the original seal of the Company,to be valid and binding upon the Company with the same farce and effect as though manually affixed. CERTIFICATION I,STEPHEN C.BERAHA,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Hoard of Directors of June 9,2008 have not been revoked and are now in full force and effect. Signed and sealed this day of, NOV 2:0 2009 S1e29Y(10!08) r... K,.. State of California ) CALIFORNIA ALL-PURPOSE County of V-40 ) CERTIFICATE OF ACKNOWLEDGMENT On NOQ f �c before me, p-0 NOTArsi ij c_ (ho e ins t name and t€tte of the of icer) personally appeared �t Qr y1yi� b� ci 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 theperson(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. KI U1.NOOYEN -OMm. # 1695859 WITNESS my hand and official seal. NO TARv pLIBL�o_CALIFOR �� ORANGE COUNTY °•. My C,(3mrrt.Expires se 26,2010 Signature (Seal) OPTIONAL INFORMATION Although the information in this section is not required by iaw, it could prevent rracrdulent removal and reattachment of this acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document. Description of Attached Document { P �;;� � 1Nam Method of Signer Identification The preceding Certificate of Acknowledgment is attached to a document _..___ _. titled/for the purpose of�r�r p ce oa 3AO Proved to me on the basis of satisfactory evidence: - - 1 l -O forms)of identification 0 crcd'i7le witness(es) _ - - Notarial event is detailed in notary journal an: containing pages,and dated �( - -- Page tf Entry I � The signer(s) capacity or authority is/are as: Notary contact: j ........ ❑ individtlal(s) Other 1. I Atto:ney in-Fac, `_ Additional�igr e€(s} 7 gnCr(sil hun bpi 1t(sj CorporateGfr' s) _kca1�'tl clk) TIt'ets) __........... El Guardian/Conservator l_ Partner-Limited/General irustee(s) El Other: representing: Names)of PersonW or Criiit�r i5 Reprrsen 9m 0 Copyright 2007 Notary Rotary,Inc 925 29th 51.,Des Moines.IA 50312-3612 Corm ACK03- 10/07_ To re--orae,,catl toll-free 1-877-349-6586 or visit us on the Internet at ilttp:/JwwN.no:aryrotarycom VIA EXPRESS MAIL RECEIVED November 21, 2008 20015 A 10: 13: Mr. Ziad Mazboudi Cly i_ 1 Senior Civil Engineer � JIJ�a CI�Pf�T ���C) City of San Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1623380 Term: 12/17/08-12/17/09 Dear Mr. Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful performance of the Franchise Agreement. Please feel free to contact me if you have any questions. Regards, , v h: `oger Bell, ARM Risk Manager /rb Enclosure CR&R INCORPORATED )1292 WESTEPN AVE. PO.BOX 125 STANTON,CA 90680 800.826,967'7 714.82.6.9049 714.890.6347 Fax WWW.C1ZRJ fC-FEET BOND NO. 1623380 PREMIUM; $1,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal, Incorporated and CR&Ft Incorporated as Principal,and Great American Insurance Company, as Surety are held and firmly bound unto the City of San Juan Capistrano, as Obligee, in the sum of One Hundred Thousand and no/100s dollars ($100,000.00) lawful money of the United Slates of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS,the Principal has entered into a certain written contract with the Obligee for: FOR FAITHFUL PERFORMANCE OF THE FRANCHISE AGREEMENT. Term December 17, 2008 through December 17,2009. NOW, THEREFORE- THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2008 and ending on December 17, 2009 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30) written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNED, STALED,DATED:November 12,2008. Solag Dis 1 n rporated and CR&R Great American Insurance Company Incoz d 0 By _...- . aJ r to T, Thorsen, Attorney-in.-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of LOS ANGELES On �IQV 12 2008 before me, DONNA MAC LELLAN, NOTARY PUBLIC r Date Here Insert Name and Title of the Officer personally appeared MARGARETA T. THORSEN 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 - r 0, 3h, ,MM LF LA»4 #152:221 he/she/they executed the same in his/her/their authorized t cr, 1m Cr capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of �:. COM In, r c, +f S t�OC 21 which the person(s) acted, executed the instrument. It$y�011�Eti.L::{iii{:a L��C 2'I,��t�� 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. Signature1 rah. Place Notary Seal Above Signature of Notary Pubic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les)Claimed by Signer(s) Signer's Name: _ Signer's Name: 1.1 Individual I_] Individual ❑ Corporate Officer—Title(s): _ ❑ Corporate Officer Title(s): ❑ Partner— Limited ❑ General _ ❑ Partner—C..:l Limited ❑ General XN Attorney in Fact + ❑Attorney in Fact • ❑ Trustee I Top of thumb here ❑Trustee Top of thumb here El Guardian or Conservator ❑ Guardian or Conservator 1-1 Other: -- ❑Other: Signer Is Representing:_ Signer Is Representing: __-_ 02007 National Notary Assuan ion•9350 De Soto Ave.,PO.Box 2402•Chatsworth,CA 91313-24472-mw.Nationa]Notary.org Item#5907 Reorder.,CallTotl-Free 1-800-876-6827 GREAT AMERICAN INSURANCE COMPANY® Administrative Office. 580 WALNUT STREET! CINCINNATI,OHIO 45202• 513-369-5000° FAX 513-723-2740 The number of persons authorized by this power of attorney is not more than TWO No.0 14123 POWER OF ATTORNEY KNOW ALL ME:N BY THESE PRESENTS:That the GREAT ANMRICAN INSURANCE COMPANY,a corporation organized and existing under and by virtue of the laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below its true and lawful attorneyin-fact,for it and in its name,place and stead to execute in behalf of the said Company,as surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof,provided that the liability of the said Company on any such bond,undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power JOHN P.BROOKS BO'I'L OF BOTH MARGARETA T.THORSEN PASADENA, `?75,000,000.00 CALIFORNIA This Power of Attorney revolces all previous powers issued in behalf of the attorneys}in-fact named above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 2m day of, AUGUST , 2006, Attest GREAT AMERICAN INSURANCE COMPANY STATE OF OHIO,COUNTY OF HAMILTON-ss: DAVID C.KITCHIN (513-369-381,, On this 2"' day of AUGUST , 2006, before me personally appeared DAVID C.KITCHIN,to me known,being duly sworn, deposes and says that he resides in Cincinnati,Ohio,that he is the Divisional Senior Vice President of the Bond Division of Great American Insurance Company,the Company described in and which executed the above instrument;that he knows the seal of the said Company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by Iike authority. This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated March 1,1993. RESOZI ,D:That the Division President,the several Division Vice Presidents and,4ssistont Vice Presidents,or any one of thew, be and hereby is authorized,from time to time,to appoint one or more 4rtorneys-in-Fact to execute on behalf of the Company,as,surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof,to prescribe their respective duties and the respective limits of their authority;and to revoke any such appointment at any time. RESOLVED FURTHER:That the Company seal and the signature of any of the aforesaid ulcers and any Secretary or Assistant Secretary of the Company may he affixed by facsimile to any power of attorney or cert tate of either given for the execution of any bond,undertaking,contract or suretyship, or other written obligation in the nature thereof,such signature and seal when so used being hereby adopted by the Company as the original signature of such officer and the original seal of the Company,to be valid and binding upon the Company with the same force and effect as though manually affixed. CERTIFICATION I,RONALD C.UAYES,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of March I, 1993 have not been revoked and are now in full force and effect. Signed and scaled this day of, V 12 2008 , S 1029T(11101) ..-1. u',1 State of California ) CALIFORNIA ALL-PURPOSE County of d ) CERTIFICATE OF ACKNOWLEDGMENT On beforeme, (here Irl' rt came an title of the offic r) personally appeared 0 4ad a who proved to me on the basis of satisfactory evidence to be the person( -whose name(}is alsubscribed to the within instrument and acknowledged to me that he7skeA4-ver executed the same i his he Miii fr authorized capacity(4e5 and that byis ha4r—signature(s)-on the instrument the person(s�r 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. KIM U. NGUY N COMM. ## 1695659 WITNESS my hand and official seal. – Ol CmuNlry ,i My Comm.Expires sept.26,2010 Signature (Seal) OPTIONAL INFORMATION Although the information in this section is not required by law,it could prevent fraudulent removal and reattachment of this acknowledgment tc on unauthorized document and may prove useful io persons relying on the attached document. Description of Attached Document _ --- r�od� Signer� � The preceding Certificate of Acknowledgment is atmMez attached to a docu ent ;._.._tidentification ur Proved tome on the basis of satisfactcr evidence. titled/for the purpose of Y r MC`iVe- 2a�A y p ]C - 1. C)form(s)of iderntlfica Pion 0 credible wiirnt s(es) NO - ----- _ -- Notarial event is detailed in notaryjourna[on: containing pages, and dated Page 4 Entry 4 The signers) capacity or authority is/are as: ! Notary contact. irsdividuai(s} I Other y..ln Fact Attorney ] Additional Slgner(s) J Signer(s)Thumbprint(s) Corporate Ofcer(s, ___-.- � �� 1 tide(sl ❑ ----r .......__ 0 Guardian/Conservator artner-L imlted/Genera[ 1�rus+ee{s} D Other: —...................................................... 1 representing: --- or Na ^ntit v a p mes)of Persor(s) , Gest Si,ner Is fie resenrincg is C�Copyright 2007 Notary Rotary,Inc_925 29th St_,Des Momes,iA 50372-3612 form ACK03. 10/07. To re-order,ral€tolk,:Qe 1-8773496588 or visit us cin the Internet at hitp//www,notaryrotary,conr RECEIVED VIA EXPRESS MAIL November 13, 2006 NOY A . 00 Mr. Ziad Mazboudi � � CLV Senior Civil Engineer SAN JUA14 CAPISTRAHO City of San Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1623360 Term: 12/17/06-12/17/07 Dear Mr, Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful performance of the Franchise Agreement. Please feel free to contact me if you have any questions. Regards, ager Bell Insurance Coordinator/Claims Administrator /rb Enclosure CR&R,NCORPORATED 11292 WGSTPN AVE. RO,€OX 125 STANTON,CA 90680 800,826,9677 714,82&9049 714.190.6347 Fox WWW,CRRMC.NF.T BOND NO. 1623380 PREMIUM, $1,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal, Incorporated and CR&R Incorporated as Principal,and Great American Insurance Company,as Surety are held and firmly bound unto the City of San Juan Capistrano,as Obligee,in the sura of One Hundred Thousand and no/100s dollars (S 100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS,the Principal Inas entered into a certain written contract with the Obligee for: FOR FAITHFUL PERFORMANCE OF THE FRANCHISE AGREEMENT. 'T'erm December 17, 2006 through December 17,2007. NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH., that if the Principal, skull indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2006 and ending on December 17,2007 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30)written notice of said cancellation to the Obligee. If this baud is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum ofthis bond. SIGNED,SEALER,DATED:September 18,2006. Sokag " po al, c to and CR&R Great American Ins ce Company Inc By. y: gar Thorsen,Attorn -in-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of LOS ANGELES On 9/18/06 before me, DONNA MAC LELLAN, NOTARY PUBLIC � Data Name and Title of Officer{e.q.,"Jane Doe,Notary Public") pers6nally appeared MARGARETA T. THORSEN Name(s)of Signers) personally known to me 10 proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare DONNA MAC LELLAN subscribed to the within instrument and �] Commission#1529229 Z acknowledged to me that he/she/they executed NotaryPublic—California the same in his/her/their authorized Les Angeles County tiAyCarnrn CxpEresDec21,2008 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. WITNESS my hand and official seal, Place Notary sea[Above Signature of Notary Public -) OPTIONAL , Though the information below is not required by law,it may prove valuable to persons relying an the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: i Document Date: Number of Pages: Signer(s) Other Than Named Above: . a Capacity(lies) Claimed by Signer Signer's Name: Ell y Individual Tap of thurnb here ❑ Corporate Officer—Title(s): ❑ Partner—❑ Limited 0 General X Attorney in Fact i ) ❑ Trustee II 0 Guardian or Conservator 1 ❑ Other: 7 Signer Is Representing: 1999 National Wory A4sooiatlon•9350 D7 Soto Ave.,P.6.Box 2402•Chatsworth,CA 91313-2402•www.nalionalnolary.crg Prod.No.5907 Reorder:Call Tal€-Free t-800..875-6827 GREAT AMERICAN INSURANCE COMPANY® Administrative Office, 580 WALNUT STREET* CINCINNATI,OHIO 45202* 513-389-5000 ® FAX 613-723-2740 The number of persons authorized by this power of attorney is not more than TWO No.0 14123 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS:That the GREAT AMERICAN INSURAN,ICE COMPANY,a corporation organized and existing under and by virtue of the laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below its true and lawful attorneyin-fact,for it and in its name,place and stead to execute in behalf of the said Company,as surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof;provided that the liability of the said Company on any such bond,undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power jOI-IN P. BROOKS BOTH OF BOTH MARGARETA T,`1'HORSEN PASADENA, $75,000,000.00 CALIFORNIA This Power of Attorney revokes all previous powers issued in behalf of the attorney(s)-in-fact named above. IN WITNESS WI°IEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed(his 2°' day of, AUGUST , 2006. Attest GREAT AMERICAN INSURANCE COMPANY STATE OF 01110,COUNTY OF HAMILTON-ss: DAVID c.KITCHIN (5113-369-3811) On this 2'd day of AUGUST , 2406, before me personally appeared DAVID C.KITCHIN,to me known,being duly sworn, deposes and says that he resides in Cincinnati,Ohio,that he is the Divisional Senior Vice President of the Bond Division of Great American Insurance Company,the Company described in and which executed the above instrument;that he knows.the seal of the said Company,that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. This Power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated March 1,1993.. M, OLIVED:That the Division President,the several Division Vtce Presidents and Assistant Vice Presidents,or any one of them,be and hereby is authorized,from time to time, to appoint one or more Attorneys-in-Fact to execute on behalf of the Company,as surety,any and all bunds,undertakings and contracts of suretyship,or other written obligations in the nature thereof, to prescribe their respective duties and the respective limits of their authority;and to revoke any.such appointment at any time. RESOLVED FURTHER:That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the Company may be affixed byfacsimile to airy power of attorney or cert f cafe of either given for the execution of any band undertaking,contract or suretyship, or other written obligation in the nature thereof,such signature and seal when so used being hereby adopted by the Company as the original signature of such off eer and the original seal of the Company,to be valid and binding upon the Company with the same force and effect as though manually agixed. CERTIFICATION I,RONALD C.HAYES,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of March 1, 1993 have not been revoked and are now in full force and effect. Signed and sealed this 18th day of, September 2006 S 1029T(11101) CALIFORNIA CERTIFICATE OF ACKNOWLEDGMENTI i State of )-_--..................... County ofi�(I ; r On N00 0T) before me, WG Y- OQ AaDi_a _ �.._._ - I (hcre insertnanrc;and title of tic officer) j personally appeared roved to me on the basis of satisfactory evidence to be the person whose naj>ae(,s-)is/a--e,-subscribed to the within instrument and acknowledged to me that hc'sh,althay-executed the same in his/4"P.iT-authorized eapacity(k-,);and that by hist 4tlaQ4�g- signature( -)-,o 1 the instrument the persons"r the entity upon behalf of which the persol+(°acted, executed the instrument. rC!!1i U. :GUYEN s` COMM. #1495859 � i WITNESS my hand and official seal. � NOTARY€URLiC -I-,ALIFOrzNIA E ORANGE COUNT`! � J My Comm.Expires Sept.26,2010 E: lakw 3 Signature oi-Notary PLlbliC I (Seal) ADDITIONAL OPTIONAL INFORMATION INSTRUCTIONS FOR COMPLETING THIS FORM DESCRIPTION 7y f^7`11.i T� ^x^77 L7� 7 7.A 7.iT ,rail c�rclo7nurlerl�rneui cornplel d irr Caiifbrnio must contain verhirrge exr;rcrh% dd I. DES��.RI 1 ION O ET Ill E ATTACH ED DOCI j 1EN 1 (7ppL'ars Cilrove ill the llotary.5'eeli 517 oi- ej ..sep irate fi)7m 17tust h4' o nx 11 n o r fi to Pc ill r o c led ca)r jccftn rrlslcler c) Calr notal.In srleh i17 falw near,allerrlwi e (lo(PL177(tlr i5'J!)h(' f , ("Citicorctcscriptionai attarhedcl(xrrme t) lxor}lcdhrl7rrt7 vei-hio;e cl.i near he prurtccl on such a ck3cmmenf lu long as the .crhla,c does not rcrlrrrre the rnntclrr to cin cornclhintt Mot is I./h,"o/for a iwtal-r-ill 1 � ���� Calrfr)rnlu (i.e. r E rhfi rn� thcr aulhuri_Erd c Erpacitr uJ�llre sr nc r}. Please clu:c�l.' the I�t - ' -- doc uruent carefilllr for l,lropc�r nolar url i-yr flit nrrd crttcrcl7 thls f)rrrr i�requireel. (.l.i# or dcsor€pt€on Of atfalChed document control od) Nutnher of Pales Document Date Q,. t • Stttc and County infornlatron must be the State and Cor.€nty witc:re the document �..-..— signer(s)personally appeared before the notary public for acknowledgment. • Date of notarization must bo the date that the signer{s)personally appeared which l Must also be the same date the acknowledgment is coant leted. (Additional irtiormation) • The notary public, must print his or her €raure as it appears within his or her commission followed by a cotama and thCrt your title(notary Public). • Print the names) o{.document signers) who pusonally appear at the time of notarization. CAPACITY CLAIMED BY THE SIGNER • Indicate the con�eet sinta)lar orfltrral fo€�trs by crctssim�oft incorrect farms(i.e. lterslrl€�€� €s tare)or Circling the correct'forms. Failure to correctly i€tdicat4 thin ❑ II1d ViClif 1 (ti� irtf'o€mation may lead to rejection of dOCLnnent r-ecording. -,1_2, Corporate Officor The notary seal iiopressron must be clear and photographically reproducible. Impression must not cover text or linea. If soil nnpression smudges, re-seal if a (Title) -� sufficient area permits,otherwise complete a different aclurowdociantent form. L1 Partlier(s) Signature of-the notary pubhc must match the Signature on 1-11C with the OffiCe of the county clerk. t Attorrte -ltl-Fa`tet� Addrtrottal information rs nor recluirtcl but Could help to cnsnre this ❑ Trusice(s) acknowledgment is not misused or attached to a different document. ❑ Other Indie.ate title or typo of attached document.number of pages and date. Indicate the capacity claimed by the signer. If t1re ciai€ncd capacity is a corpornlo officer,indicate the title(i.e,.CFO,CF0.Sccr-etary-. • Seeuru9y attach this document to the signed document f fir .,I]Il1 }S r'h.r rl �:>.,ri ..,.I':�i,�:',....I,�...>]hl,.r....:,...(•,f'l',�4ttr1 l'"i:[li'I:+" ..,.. ...,r..... ('M1I A r o i RECEIVED "VIA EXPRESS MAIL 7005 NOV 30 P Z: 29 November 23, 2005 Mr. Ziad Mazboudi SAN J U A C A iT'i S i R lk 0 Senior Civil Engineer City of San.Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1.623380 Terra: 12/17/05-12/17/06 Dear Mr. Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful performance of the Franchise Agreement. Please feel free to contact me if you have any questions. Regards, zl�g Insurance Coordinator/Claims Administrator /rb Enclosure CR&a INCO2POZAEEb 11292 WESTERN AVE- P.O.HOX 125 STANTON,CA 90680 80O L 8 26,967'7 714,826.9049 714,890.634 7 Fax WWW,CRVNC.NET recycled pope, BOND NO. 1623380 PREMIUM:$1,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal, Incorporated and CR&R Incorporated as Principal, and Great American Insurance Company,as Surety are held and firmly bound unto the City of San Juan Capistrano,as Obligee, in the sum of One Hundred Thousand and no/100s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS,the Principal has entered into a certain written contract with the Obligee for: FOR FAITHFUL PERFORMANCE OF THE FRANCHISE AGREEMENT. Term December 17, 2005 through December 17,2006. NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 1.7, 2005 and ending on December 17, 2006 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30) written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNED, SEALED,DATED:November 1,2005. Solag Disposal,Incorporated an R&R Great American Insures Company Incorporated d l �-y�� Margare Thorsen,Attorney- -Fact i CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California r. ss. County of LOS ANGELES NOV 12005 On before me, DONNA MAC LELLAN, NOTARY PUBLIC Date Name and Tifle of Officer Doe,Notary Public") personally appeared MARGARETA T. THORSEN PN Narne(s) 41 personally known to me El proved to me on the basis of satisfactory evidence DONNA MAC L152922ELLAN 9 , Z to be the person(s) whose name(s) is/are 0;., California Z Uj" county subscribed to the within instrument and My comm'i.'(_xpires Dec 21,2008 acknowledged to me that he/she/they executed the same in hislherltheir authorized capacity(les), and that by his/her/their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seat Abnve Signature of Notary Public OPTIONAL Though the information below is not required by Yaw, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document 0 Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: L] Individual Top of thumb here F-1 Corporate Officer—Title(s): I F1 Partner-----DJ Limited 13 General Attorney in Fact F1 ::1 Trustee 0 Guardian or Conservator Ci Other: 1 Signer Is Representing:___---- 0 1999 National Notary Association:-9350 Do Soto Ave.,P.G.Box 2402-Cftatsworth,CA 91313-2402-wmi.nationahomry.org Prod.No.5907 Reorder:Call Tall-Free 1-800-875-6827 CALIFORNiA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of } i On 12� before me,– ��t'v V® ror�. Mete .-.---� Name and Title of o, er(e.g.,"Jana Doe,Notary Publio'� personally appeared Name{N Slgner[s) ❑personally known to me [;�Kroved to me on the basis of satisfactory evidence rl to be the person(9t whose name(O is re subscribed to the within strument and acknowled1050;, ged to me that a h} they executed GHA!11NSITYAM V. PATEL the same in hi heir a6he' zed Commission# 1374932 capacity(ies- and th by hisheir Z ,We+ uµX „" Notary Public - California ; signatureon the instrument the person(, or P 1 Grange County the entity upon behalf of which the.person(p f My Comm,Expires Sep 15,2006 acted, executed the instrument. WITNESS my hand and official seal. Slgnaatum At Notary Public OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s)Other Than Named Above. Capacity(ies) Claimed by Signer Signer's Name: MEN [I Individual Top of thumb here ❑ Corporate Officer—Title(s): Partner--❑ Limited ❑General ❑ Attorney-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: @1990 National Notary Assoc€atlon>9350 De Soto Ave.,P.O.Sox 2462•Chatsworth,CA 91313.2492•www.nationatnotary.oq Prod.No.5907_ Reorder.Calf TM-Free 7-80D-876-6827 GREAT AMERICAN INSURANCE COMPANY® Administrative Office. 580 WALNUT STREET 13 CINCINNATI,OHIO 45202 0 513-369-5000 0 FAX 513-723-2740 The number of persons authorized by Ibis power of attorney is not more than TWO No.0 14423 POWER OF ATTORNFV KNOW ALL IMEN BV THESE PRESENTS:That the GREAT AMERICAN INSURANCE COMPANY,a corporation organized and existing under and by virtue of tlic laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below its true and lawful attorneyin-tact,for it and in its name,place and stead to execute iti be alf of the said Cantpany,as surety,any and all bonds,undertakings and contracts of <',uretyship,or other written obligations in the nature thereof.,provided that the liability of the said Company On any such band,undertaking orcoittr•act of suretyship executed under this authority shall not exceed the limit stated below. Name Address Li111it of Power JOHN P. BROOKS BOTH OF BOTH MARGARITA T.THORSEN PASADENA, 1]N LIM I'T') D CALIFORNIA This Power of Attorney revolves all previous powers issued in behalf of the attorney(s)-in-fact"anted above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 4th day of, .]UNE , 2004. Attest GREAT AMERICAN INSURANCE COMPANY STATE OF OHIO,COUNTY OF HAMILTON-ss: DAVID C.xiTCrtinr (613-369-3811) On this 4th day of JUNE 2004, before me personally appeared DAVID C.KITCHIN,to me known,being duly sworn, deposes 2nd says that he resides in Cincinnati,Ohio,that lie is the Divisional Senior Vice president of the Bond Division of Great American insurance Company,the Company described in and which executed the above instrument;that he knows the seal of the said C'ontpany,that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. This power of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great A3tiericast hismance Company by Unanimous written consent dated March 1,1993. RESOLVED:That the Division President,the several.Division five Presidents and Assivant dice Presidents,or an),one of llrem,he arrd hereby is rtrrth.0 i ed from ttnre to time,to appoint one or more Attorneys-in-Fact to ei-eerrte.on hefrarf q f the Company.as srueF.y,any and alf bonds,rrnder'tal,itrgs arsd corziracts of Srrr•etyShip,or Diller;•writtenobligations in the Mature thereof;to prescribe their respective duties nncl the respective limits gftheir awhoril y:and to revoke any such appointment at any tilde. RESOL IIED FURTHER:Tlint the Company seal mild the signature ofan}r Q f the afbr•esaid officers and any Secretary or Assistant.Secreiary of'the Company rngv be affr ed by frresinrile to any power of attorney or cer•tif tate of either given for the execurion of any bond,undertaking,centrad(or sureipship, ar-other rwritter ohligrrtion ill the nature thereof,Stich signature and seal when so used being hereby adopted by the Company as the origitral signature of such of-hcer and the original sell/of the C'ompai)r,to be valid and binding 7113011 the Carlal,tatrp with the swine force and effect las though manuoll y riff ved. CERTIFICATION 1,RONALD C.HAYES,AFsistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney..unci the Resolutions of the Board of Directors of March 1, 1993 have not been revolted astd are now in full force and etka Signed and scaled this I S t day of, November 2005 S 1028T(1X1131) 11292 WESTERN AVE. P0.BOX 525 STANTON,CA 90680 714-826-9049 VIA EXPRESS MAIL December 3, 2004 Mr. Ziad Mazboudi Senior Civil Engineer City of San. Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 32675 RE: CR&R Incorporated/Solag Disposal, Inc. Performance Bond No. 1623380 Telco: 12117104-12117/05 Dear Mr. Mazboudi, Enclosed is Performance Bond No. 1623380 in the amount of$100,000 for faithful performance of the Franchise Agreement. Please feel free to contact me if you have any questions. Regards, Roger Bell Insurance Coordinator/Claims Administrator /rb Enclosure RECYC4E0 PAPER BOND NO. 1623380 PREMIUM- $1,000.00 PERFORMANCE BONA KNOW ALL IGEN BY THESE PRESENTS. That Solag Disposal, Incorporated and CR&R Incorporated as Principal,and Great American Insurance Company,as Surety are held and firmly bound unto the City of San.Tuan Capistrano, as Obligee, in the sum of One Hundred Thousand and no/I04s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS,the Principal has entered into a certain written contract with the Obligee for: FOR FAITHFUL, PERFORMANCE OF THE FRANCHISE AGREEMENT. Term December 17, 2004 through December 17,2005. NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in frill force and effect. This bored is effective for a period of one year commencing on December 17, 2004 and ending on December 17, 2005 and may be continuedwith the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30) written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNER, SEALED,DATER:November 15,2004. Solag os n orporated d CR&R Great American Insurance Company Inco By Ad aseta T.Thorsen,Attorney-in-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT Ri State of California ss. P County of LOS ANGELES (` NOV 15 2004 On before me, DONNA MAG LELLAN, NOTARY PUBLIC_ ©ate Name and Title of Officer le.q�,"Jane Doe,Notary Public") I ( personally appeared MARGARETA T. THORSEN (, Name(s)of 5iuner(s) K personally known to me , Ell proved to me on the basis of satisfactory evidence DONNA MAC G. tt_A ° CC?r71MISSion# 12.87901 to be the person(s) whose name(s) .is/are i Notary l,;i:1[c—CaMgym® subscribed to the within instrument and ' Los Ai geles County acknowledged to me that he/she/they executed 3 yCorn m. airesDeC21,2DG4 the same in his/her/their authorized �capacity(ies), and that by his/heritheir signature(s) an the instrument the person(s), or the entity upon behalf of which the person(s) Nacted, executed the instrument. € WITNESS my hand and official seal. , Place Notary Seal Abnve S[gnature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document I j c and could prevent fraudulent removal and reattachment of this form to another document. � I Description of Attached Document Title or Type of Document: — ( i Document Date: Number Of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: 1_I Individual Top of thumb here [ , Corporate Officer—Title(s): ( S E Partner—0_1 Limited C General Attorney in Pact Trustee Guardian or Conservator E) Other: Signer Is Representing; 01999 Natiorlai Notary Association•8356 De Sato Ave„P.O.Box 2462•Chatnworth,CA 91313-24()2 ww.naziona€notary,org Prod.No.5907 Reorder:Call 7a€!-Free 1-800-878.6827 GREAT AMERICAN INSURANCE COMPANY® Administrative Office: 580 WALNUT STREET• CINCINNATI,OHIO 45202' 543-369-5000• FAX 513-723-2740 The number of persons authorized by this power of attorney is not more than TWO No.0 14123 POWER OF ATTORNEY KNOW ALL HIEN RY THESE PRESENTS:That the GREAT AMERICAN INSURANCE COMPANY,a corporation organized and existing under and by virtue of the laws of the State of'OMo,does hereby nominate,constitute and appoint the person or persons named below its true and tawfui attorneyin-fact,for it and in its name,place and stead to execute in behalf of the said Company,as surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof,provided that the liability of the said Company on any such bond,undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of rower JOHN P.BROOKS BOTH OF BOTH MARGARETA T.THORSEN PASADENA, UNLIMITED CALIFORNIA This Power of Attorney revolves all previous pavers issued in behalf of the attorney(s)-in-fact named above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seat hereunto affixed this 4th day of, JUNE 2004. Attest CREAT AMERICAN INSURANCE COMPANY STATE OF 01-110,COUNTY OF HAMILTON-ss: DAVID C.KITCHIN (513-369-3811) On this 4th day of JUNE 2004, before me personally appeared DAVID C.KITCHIN,to me known,being duly sworn, deposes and says that lie resides in Cincinnati,Ohio,that he is the Divisional Senior Vice President of the Bond Division of Great American InSuran Ce Company,the Company described in and which executed the above instrument;that lie knows the seal of the said Company;that the seal affixed to the said instMrne3rt is such corporate scal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. This Powcr of Attorney is granted by authority ofthe following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated March 1,1993. RESOLVED• That the Division President,the several Division Vice Presidents and Assistant Vice Presidents,or any one of there,be and hereby is authorized,from time to time,to appoint one or more Attorneys-in-Fact to execute on hehalf of the Company,os surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof,to prescribe their respective duties and the respective limits of their outhorih,;and to revoke any such appointment tit any time. RESOLVED FURTHER:That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secrelary of the Company may be affixed byfacsimile to any power of attorney or certificate of either given for the execution of any bond,undertaking, contract or s uretysNp, or other written obligation in the nature thereof,such signature and seat when so used being hereby adopted by the Cornpony as the original signature of such officer and the original seal of the Company,to be valid and binding upon the Company with the same force and effect as though manually affiteci. CERTIFICATION f,RONALD C.HAYES,Assistant Secretary of Great American Insurance Company;do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of March 1,1993 have not been revoked and are now in full force and effect. Signed and scaled this 15th dayof, November 2004. _...8 102eT(11101) .:.. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. l County of Orange On 12-03-04 beforeme, Bennett Ml Notary Public r I� pate Name artd Title of Officera _. ( .g,"Jana boo,Notary Pu61ic°) personally appeared Clifford Ronnenberg } Names}of Signer's} � � -_ ! W personally known to me ` 1p roved to me on the basis of satisfactory evidence 5 �i Mi to be the person whose nameisl <; Domissiork 1�76 subscribed to t ewithin instrument and I<f � Tintary S'il-C81111ornlis acknowledged to me that he/sP0#Fr6y executed a Los Al the same in hisl�r/fh&r authorized MYCA,FMm_E ImsDi2005 capacity(a&5T and that by his/beTA1ieir' ' ( �1 signaturil the instrument the person(;or the entity upg alf of which the personl A3 acted ex-ecute e instrument. /VVITNES hand andrvp i seal .✓'' Signature of Notary Public �4 '1 N OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document l Title or Type of Document: Performance Bond 1623380 Document Gate: 11-15-04 ` Number of Pages: 1 .__. Signer(s)Other Than Named Above; -1 Capacity(il Claimed by Signer Signer's Name: Clifford Ronnenberg <J 0 Individual 1 Top of thurnhi here E Corporate Officer......Title(s): I ; C Partner—7 Limited 11 General C] Attorney-in-Fact 0 Trustee t ❑ Guardian or Conservator ? 01 Other: _ ?� Signer Is Representing:_- 0 i999 Naffornal Notary Association•9350 De Solo Ave.,P.O.Box 2402 Chatsworth,CA 91313-2492 www.nat€onalnotary.org Prod.No.5907 Reorder:Call To1l-1 1-800-676.6627 11292 WESTERN AVE. P.O.BOX 125 STANTON,CA 99880 714-826-9049 VIA EXPRESS MAIL December 3, 2003 Mir. Douglas Durnhardt City of San Juan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: CR&R Incorporate d/Solag Disposal, Inc. Performance Bond No, 16123380 Term: 12/17103-12117/04 Dear Mr. Durnhardt, Enclosed is Performance Bond No. 10233$0 in the amount of 100,000 for regularly scheduled bulky itern pick ups. Please feel Free to contact me iF you have any questions. Regards, Roger Bell Insurance Coordinator/Claims Administrator Enclosure ��pCYC3.EPkpEil BOND NO. 1623380 PREMIUM: $1,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal, incorporated and CR&R incorporated as Principal,and Great American insurance Company,as Surety are held and firmly bound unto the City of San Juan Capistrano, as Obligee,in the sum of One Hundred Thousand and no/100s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a certain written contract with the Obligee for: In City targeted neighborhoods the contractor shall provide regularly scheduled bulky item hick ups on the clay of collection. Term December 17,2003 through December 17,2004, NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2003 and ending on December 17, 2004 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30)written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNED, SEALED,DATED: November 19, 2003 Sol ag D�s sal, i co ated and CR&R Great American Ins ance Company AO Inco Drat d By: M rga a T. Thorsen, At orney-in-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMEN'T' State of California County of LOS ANGELES ss. On NOVEMBER l 9, 2003 , before me, EMILY PRCTATIO, NOTARY PUBLIC Date Name and Tite of Officere. ( g.,"Jana(Jae.Notary Public"} personally appeared MARGARETA T. THORSEN Names)at Signer{s} personally known to me , 0 proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are EMALYPRECtADO subscribed to the within instrument and acknowledged to me that he/she/they executed Notary PUNIC— to minF the same in his/her/their authorized Los AngelesComn capacity(ies), and that by his/her/their My°Cann-Evires Jun 20' signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. E WITNESS my hand and official seal. ; l LPr Place Notary Seal Atzove Egnature of Notary Pu6iic �1 "S OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: ,l Capacity(ies) Claimed by Signer Signer's Name: ,". El Individual ( Tap of lhumt here h z71 Corporate Officer—Title(s): Partner -^ Limited 1l General Attorney in Fact T Trustee �. Guardian or Conservator Other: E ? Signer Is Representing: h " T S '®19W National No"ASsodWen 4350 De Soto Ave..P.O.eaox 2402-Chatsworth,CA 91315-2+02•�. .nalianainotary,orq Prod.No.6907 rR&o dor_Call ToH-Free T A00�876-6827 GREAT AMERICAN INSURANCE COMPANY® Administrative Office: 580 WALNUT STREET a CINCINNATI,OHIO 45202 a 513-369-5000 a FAX 513-723-2740 The number of persons authorized by this power of attorney is not more than THREE No.014123 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the GREAT AMERICAN INSURANCE COMPANY, a corporation organized and existing under and by virtue of the laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below its true and lawful attorney- in-fact,for it and in its name,place and stead to execute in behalf of the said Company,as surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof;provided that the liability of the said Company on any such bond,undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power MARTHA J. CHASE ALL OF ALL JOHN P. BROOKS PASADENA, UNLTMTTED MARARETA T. THORSEN CALTFORNTA This Power of Attorney revokes all previous powers issued in behalf of the attorney(04D-fact famed above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 19th day of September, 2002 Attest GREAT AMERICAN INSURANCE COMPANY STATE OF OHIO,COUNTY OF HAMILTON-ss: On this 19th day of September, 2002 before me personally appeared DOUGLAS R. BOWEN.tome known, being duly sworn,deposes and says that he resides in Cincinnati,Ohio,that he is the Divisional Senior Vice President of the Bond Division of Great American Insurance Company,the Company described in and which executed the above instrument;that he knows the seal of the said Company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. This Tower of Attorney is granted by authority of the following resolutions adopted by the Board of Directors of Great American Insurance Company by unanimous written consent dated March 1. 1993. RESOLVED: That the Division President,the several Division Vice Presidents and Assistant Vice Presidents,or any one of them,be and hereby is authorized,from time to time,to appoint one or more Attorneys-in-Fact to execute on behalf of the Company,as surety, any and all bonds, undertakings and contracts of suretyship,or other written obligations in the nature thereof;to prescribe their respective duties and the respective limits of their authority;and to rei,oke any such appointment at any time. RESOLVED FURTHER: That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the Company maybe mixed by facsimile to any power of attor ney or certift..cote of either gi ven for the execution of any bond,undertaking,contractor suretyship;or other written obligation in the nature thereof,such signature and seal when so used being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the sante force and effect as though manually affixed. CERTIFICATION 1,RONALD C.HAYES,Assistant Secretary of Great American Insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of March 1. 1993 have not been revoked and are now in full force and effect. Signed and sealed this 19th day of NOVEMBER 2003 S 1029T(11/01) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California Orange ss. County of � On 12-2-03 before me, Bennett Moon Notary PtJblic _ Date Name and Title of Officer(e.g.,"Jane Dae,Notary Pub€'sc) s � personally appeared _Clifford Ronnenber� Names)of signer(s) X]personally known to me C1 proved to me on the basis of satisfactory evidence to be the person whose rame( 'is/ r ` t ;n.;e�'enr n1wAa,.et23n.,v; °.•.n:Jtlr cE" subscribed to the within instrument and ` B ENNET MOXON acknowledged to me that he/ e*�executed Commission ion 1333376 ` (_ the same in his/ �t1 'rr... authorized z Notary Public-Califrnin capacity( and that by his/1a r Los Angeles county comm i t 6,2 signature�°on the instrument the person: , or the entity upon behalf of which the person " acte ec ed the instrument. al WITH y hand and official seal. r Signature of Notary Pubic, 6 1J OPTIONAL �)I Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Performance Bond # 1623380 Title or Type of Document: ( Document Date: 11-19-03 Number of Pages: Signer(s)Other Than Named Above: Capacity(ids) Claimed by Signer Clifford Ronnenberg Signer's Name: l' ? p of [_J Individual E X Corporate Officer—Title(s): E ❑ Partner—0 Limited 0 General j r E Attorney-in-Fact Trustee i ❑ Guardian or Conservator Qther: Signer Is Representing: 0 1999 National Notary Association•9350 De Soto ave.,P.O.Sox 2402•Chatswogn,CA 913#3.2462 www.nationalnoiaryarq Prod,Na.5907 Reorder:Cal!Toll-Free 1-800-878-&827 AMERICAN MwdTORISTS INSURANGE COMPANY NOTICE OF CANCELLATION Dated : 05/10/02 Sent Via : F To : City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE : Solag Disposal, Inc. P.O. Box 125 Stanton, CA 90680 Bond # : 3SM 982 1.85 00 Desc. : Annual Performance (only) " m Bond Amount . $100,000.00 Org. Eff. Date : t2/17/1999 REASON FOR CANCELLATION : Surety Option You are hereby notified that American Motorists Insurance Company elects to cancel the bond captioned above in its entirety, in accordance with the terms of said bond. This cancellation will tape effect December 17, 2002. Sincerely , ...SCJ �4�s �. �v'7•�/..cjo ,. Attorney-In-Fact, , - � Susan E. Morales `�'� r�a cc : Solag Disposal, Inc. City of San Juan Capistrano 7470 N. FIGUER©A, P.O. Box 41375, Los ANGELES, CA 90041 Lic. #0426198 •(323) 257-8291 ®FAX(323) 256-7218 BOND NO. 1623380 PREMIUM: 51,000.00 PERFORMANCE BOND KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal, Incorporated and CR&R Incorporated as Principal,and Great American Insurance Company,as Surety are held and firmly bound unto the City of San Juan Capistrano, as Obligee,in the sum of One Hundred Thousand and no/100s dollars ($100,000.00) lawful money of the United States of America, for the payment whereof, well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a certain written contract with the Obligee for: In City targeted neighborhoods the contractor shall provide regularly scheduled bulky item pick ups on the day of collection. Term December 17,2002 through December 17,2003. NOW, THEREFORE THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal, shall indemnify the obigee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perforin said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on December 17, 2002 and ending on December 17, 2003 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be cancelled by the surety by providing thirty days (30)written notice of said cancellation to the Obligee. If this bend is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. SIGNED, SEALED,DATED: December 5, 2002 Solag Disposal, Incorporated and &R Great American Insurance Company Incorporated 4.r6l4aT. Thorsen, Attorney-in-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of On //�� � r before me, �� . � �'" "' -( Dole Name and tle of Officer(e.g.,"Jane Doe,Notary P.olie")( r personally appeared ,e personally known to me ❑ proved to me on the basis of satisfactory BENNE t T MOXO l evidence ' Commislil 1333378 y � Z Notary Public-California to be the persons) whose names) islare Los Angles D0u° ` subscribed to the within instrument and IIA+j Comm.Etses Cmc s,2005 acknowledged to me that he/she/they executed the same in his/her/their authorized J capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the persons) i acted, exeuted t instrument. t. WI7NESS y hand and official seal, Signature of Notary Pub3iC� OPTIONAL 3 Though the information below is not required by tate,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. , Description of Attached Document �I Title or Type of Document: l– ,001 C i2l &140101 Document Date: aP" Number of Pages: Signer(s)Other Than Named Above: F. Capacity(ies) Claimed by Signer I Signer's Name: 11.1 ; ❑ Individual Tap of thumb here Corporate Officer—Title(s): ❑ Partner—❑ Limited ❑General ❑ Attorney-in-Fact i ❑ Trustee ;f ❑ Guardian or Conservator ❑ Other: t< Signer Is Representing: r 0 1993 National Notary Aswlalion•9350.6e Soto Ave.,PA.Boz 2402•Chalsworlh,CA 91313-2402•www.naf€onalnotary.org Prod.No.5907 Reorder:Call Toll-Free 1-800-576-6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT N �i State of California ss. County of LOS ANGELES Or, before me, 12/5/02 EMILY PR CTAOO, NOTARY PUBLIC , Date Name and 7itte of Officer(e.g.,"Jane floe,Notary Public") I personally appeared MARGARETA T. THORSEN l Ni of Signer(s) i FN personally known to me 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 EMILY PRE pv5t acknowledged to me that he/she/they executed ° umid�an t: '{.g � z the same in his/her/their authorized xNOWY Pubfie '' ' � capacity(ies), and that by his/her/their LOS Angl9k-�s County t C".Orlyn, it ,duna),20 signature(s) on-the instrument the person(s), or r" the entity upon behalf of which the person(s) ' acted, executed the instrument. WITNESS my hand and official seal. i Place Notary Seal Above Signature of Notary Public i } OPTIONAL Though the information below is not required bylaw, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: - Individual Top of tnurnt)here ❑ Corporate Officer—Title(s): 0 Partner---❑ Limited ❑ General Attorney in Fact ?� _- Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 9 1999 Naiw.al Notary Association•93SO❑e Soto Ave.,P.O.Box 2402•01)atswonh,CA 913133-2402•www.natiominotary.org Prod.N0.5907 Rearden,Cail Toll-Free 1-Ba0 876-5827 GREAT AMERICAN INSURANCE COMPANY° Aeministrative Office: 580 V '.NUT STREET v CINCINNATI,OHIO 45202 : . 13-369-5000 a FAX 513.723-2740 The number of persons authorized by this power of attorney is not more than THREE No,0 14123 POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That the GREAT AMERICAN INSURANCE COMPANY, a corporation organized and existing under and by virtue of the laws of the State of Ohio,does hereby nominate,constitute and appoint the person or persons named below its true and lawful attorney- in-fact,for it and in its name,place and stead to execute in behalf of the said Company,as surety,any and all bonds,undertakings and contracts of suretyship,or other written obligations in the nature thereof;provided that the liability of the said Company on any such bond,undertaking or contract of suretyship executed under this authority shall not exceed the limit stated below. Name Address Limit of Power MARTHA J. CHASE ALL OF ALL JOHN P. BROOKS PASADENA, UNLIMITED MARGARETA T. THORSEN CALIFORNIA This Power of Attorney revokes all previous powers issued in behalf of the attorneys)-in-fact famed above. IN WITNESS WHEREOF the GREAT AMERICAN INSURANCE COMPANY has caused these presents to be signed and attested by its appropriate officers and its corporate seal hereunto affixed this 19th day of September, 2002 Attest GREAT AMERICAN INSURANCE.COMPANY STATE OF OHIO,COUNTY OF HAMILTON-ss: On this 19th day of September, 2002 before me personally appeared DOUGLAS R.BOWEN.to me known, being duly sworn,deposes and says that he resides in Cincinnati,Ohio,that he is the Divisional Senior Vice President of the.Bond Division of Great American Insurance Company,the Company described in and which executed the above instrument;that he knows the seal of the said Company:that the seal affixed to the said instrument is such corporate seal;that it was so affixed by authority of his office under the By-Laws of said Company,and that he signed his name thereto by like authority. This Power of Attorney is granted by authority of the following resolutions adapted by the Board of Directors of Great American Insurance Company by unanimous written consent dated March 1, 1991 RESOLVED: That the Division President,the several Division Wce Presidents and Assistant Vice Presidents,or any one of there,he and hereby is authorized£torn tune to time, to appoint one or more Attorneys-in-Fact to execute on behalf of the Company,as surety,any and all bonds, undertakings and contracts of suretyship,or other written obligations in the nature rhereof•to prescribe their respective duties and the respective limits of their authority;and to )-evoke any such appointment at any time. RESOLVED FURTHER: That the Company seal and the signature of any of the aforesaid officers and any Secretary or Assistant Secretary of the Company may be affixed by facsimile to any power of attorney or certificate of either given far the execution of any bond,undertaking,conn act or suretyship,or other written obligation in the nature thereof,such signature and seal when so used being herehy adopted by the Company as the original signature of such officer and the original seal of the Company,to be valid and binding upon the Company with the same force and effect as though manually affixed. CERTIFICATIION I,RONALD C.HAYES,Assistant Secretary of Great Ammican insurance Company,do hereby certify that the foregoing Power of Attorney and the Resolutions of the Board of Directors of March 1. 1993 have not been revoked and are now in full force and effect. Signed and scaled this 5th dayof December 2002 S 1029T(11101) 1;%F'i WP,IFRN AVE Rr�,NrvzIR STAN i Ga.CA FiE)P;Fit, 826-9448 VIA OVERNIGHT MAIL :December 9. 2002 Mr, Douglas Dumhardt City of San .yuan Capistrano, California 32400 Paseo Adelanto San Juan Capistrano. CCA 92675 RE: CR&R Incorporates[/Solag Disposal, Inc. Performance Bond No. 1623380 Term: 12/17/02-12/17/03 Dear Mr. Du hardt., Enclosed is Performa€ice Band No. 1623380 in the: amount of$100.000 in replaeenient. of cancelled Bond No. 'ISM982185 00. Please feel free to contact me if you have any questions. Regards, Roger Bell 111sUrance Coordinator/Claims Administrator Enclosure T Nmerican M®t®rt. -s insurance 0011 pa---f Bond Number: 3SM 982 1.85 00 Continuation Certificate f©r Bonds which Definitely Expire IN CONSIDERATION of the sum of One Thousand and No/100ths Dollars, ($1,000.00) the Undersigned company hereby continues in force its Contract Performance Bond number 3SM 982 185 00 in the amount of One Hundred "Thousand and No1100ths DOLLARS ($100,000.00) on behalf of Solas Disposal, :Incorporated..&:..CR:..& R Incorporated and in favor of CitV of San Juan Capistrano, CA, as Obligee, for the period beginning at 12:01 a.m, of the .1.7th day of December, 2001 standard time at the address of the Obligee above given, and ending at 12:01 a.m. of the 17th day-' of December,-2002'standard time at the saidaddress, subject to all covenants and conditions as set forth and expressed in said bond heretofore issued; effective on the 23rdday of March,2000. This Continuation Certificate is executed inion the express condition that the Undersigned company's liability under said bond and under this and all Continitation Certificates issued in connection therewith shall not be cumulative and shall not in. any event exceed the amount of said bond as hereinbefore set forth. Current editions of forms will be substituted at each renewal date for the earlier editions if revised during the previous policy term., and if the company extends or renews the policy designated in the certificate. SIGNED,SEALED,DATED: October 18,200: American Motorists Insurance Company L,t (Surety) By! l KeAna D.Conrad;Attorney In Fact DIRECT CORRESPONDENCE TO : LOU,!ONES&ASSOCIATES, PO BOX 41375, 7470 N. FIGUEROA ST., LOS ANGELES, CA 90041 PHONE(323)257-8291 •FAX(323)256-7218 Continuation Certificate-01-31-01 Aot Wo ,,:"iiw_x .rtxX, State of California County of Los Angeles On OCT 18 20 A. Melendez Notary Public NAME ----71TEE 73F CER personally appeared KeAna D. Conrad NAME OF SIGNER Personally known to me - OR -❑ proved to me on the basis of satisfactory evidence VIIJto 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, A,MFLEOW executed the instrument. COMM 461266236 i0TARY 6108U�-G,ALIF€�RNIA LMANKMy GOMM. mMar� rr WITN S my hand and official seal. C' (SIGNATURE O OTARY) OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR Ej OTHER DATE OF"DUCUN= SIGNER IS REPRESENTING: NAME OF PERSON(S)OR ENTITY(IES) ---___--------------------------------- American Motorists Insurance Company SIGNER 07TIER THAN-NA-MED ABOVE— American Manufacturers Mutual Insurance Company Lumbermens Mutual Casualty Company Lou Jones & Associates Horne Office. Long Grove, 1L 60040 POKIER OF ATTORNEY Know All Men By These Presents: That the Lumbermen Mutual Casualty Company, the American Motorists Insurance Company, and the American Manufacturers Mlutua. Insurance Company, corporations organized and existing under the laws of the State of Illnols, having their principal office in Long Grove. Illinois, (hereinafter wllettively referred to as the 'Company")do hereby appoint KeAna D. Conrad of Los Angeles, Callforr►ia".".•••.•"'",•"•"••" their true and lawful agents)and att0ney(3)4n-fact, to make,execute, seal, and deliver during the period beginning with the date of issuance of this power and ending on the date specified below, unless sooner revoked for and on its behalf as surety,and as their act and deed: Any and all bonds and undertakings provided the amount of no one bond or undertaking exceeds ONE MILLION DOLLARS(51,000,000.00)...w►. .....s►prwvos+e+ w+aewseewew.aowwo.ew*a.+wweaewwe EXCEPTION: NO AUTHORITY is gmted to make, execute,seal and dePow any bond or undertaking wohkh guarrarttees the payment or codec Bort of any promissory note,check,draft or letter of craft This authority does not perrNt the sante obligation to be split Into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein. , This appointment may be revoked at any time by the Company. The execution of such bonds and urdertaidngs in pursuance of these presents shall be as binding upon the said Company as fully and ampty to all intents and purposes,as If the same had been duly executed and acknowledged by Owir regularly elected officers at their principal office in Long Grove, Illinois. THIS APksOINTMENT SHALL CEASE AND TERM NATE iMTHOUT NONCE AS OF December 39.2007 This Power of Attorney Is executed by authority of resdutkm adopted by the Executive C.orraft es of the Boards of Directors of the Company on February 23,1 M at Chkago. Imo.true and accurate copies of which are hereinafter set forth and are hereby cerilffed to by the. undersigned Secretary as being In full force and effect 'VOTED, That the Chairman of the Board, the President, or any Vice President, or, their appointees designated in writing and filed with the Secretary,or the Secretary shaft have the power and authority to appoint agants and aPomeys-inrfack and to autixxtze them to execute on behalf of the Company.and attach the seal of the Company thereto,bonds and undertakings. r000gnhwoes, contracts of lnd®nntity and other wridngs.obligatory In the nature thereof,and any such officers of the Company may appoint agents for acceptance of process.' This Power of Attomey Is signed,sealed and certified by facsimile under and by authority of the following resolution adopted by the Executive Committee of the Boards of Directors of the Company at a meeting duty called and held on the 23rd day of February, 1988: NOTED,That the signature of the Chairman of the Board,the President.any Vice President,or their appointees designated In writing and filed with the Secretary.and the signature of the Secretary,the seal of the Company,and cwrdlicatlons by the Secretary,may be affixed by facsirnite on any Power of attorney or boxed executed pursuant to resoludon adopted by Ithe Execudft CaftvYgfte of tits Boand of Dir+atrs on February 23, 9988 and any such power so executed,seabed and certified with respect to any bond or undertaking to which It to attached,shag continue to De valid and binding upon the Company.'° n Tesdmony Whereof,the Company has caused this Instrument to be signed and their corporate seats to be affixed by their authorized officers, his July 7,2000. ettested and Certified: Lumbermen Mutual Casualty Company American Motorists insurance Company American Manufacturers, Mutual Insurance Company .,•oleo,i4 'XsL 4% .wit � a mnraJatAn .ma t a p i 3I A t � a,sraerwu V psi sie,.. mrt P. Hames, Secretary by J. S. Kemper, 111. Exec.Vice President i. STATE OF ILLINOIS SS cOt1N7Y OF LAKE I, Irane Klewer,a Notary Public,do hereby certfty that J. S. Kemper. III and Robert P.Hemes pofsonatty known to ma to be the as"*persona whose names are respectrvefy a$Exec. Vice President and Secretary of the Lumbermons Mutual Casualty Company. the American Motorists Insurance Company. and the American Manufacturers Mutual Insurance Company,Corporations organized and exl3Ung under the laws of the State of Illinois, subsCn"d to the foregoing Instrument, appeared before me this day In person and severally acknowiedged that they being thereunto duly authorized signed, seated with the corporate $eals and delivered the said Instrument as the free and voluntary act of said rorpoeatlons and as their own free and voluntary acts for the uses and purposes therein set forth. •0 AANFFOFFIQALL SEA /.IRAJ�`. e •4 Ns"Fu6ilo,aall orlrenots 1p -4 nq C-000t1„s.1911pirex Jen Sr.mer 10 - My comm€sslon exptras 1-28-02 Irene)Cower.Notary Public CERTIFICATION I,JX Conway,Corporate Secretary of Lha Lumbommms Mutual Casualty Company.the Arnedcan Motorists Insurance Company, and Lha American Manufacturers Mutual Insurance Company,do hereby certify that the attached Power of Attorney dated July 7,2000 on behalf of the pwson(s)as Usted above Is a true and correct copy and that the same has been In full farce and effect since the date thereof and is in fA force and effect on the date of this certificate;and I do f'urltw ow"that the saW J.S.Kemper.III and Robert P.Haynes,who exowtod the Power of Attorney ars Execxttfva We President and Saaratary respocttveely were on the date of lite fyaoacxaBlgr� �ay1 of the aftKhW Power of Atbn my_ - the tally elected ExactAtm Vice PFBslderlt wind Secretat'y of the L=bert7 w*'MUk#C4ualiSt C.O[T1�ii[t1r' the Amid Motcdats �� Company,slid the Arrwkan Manufac turens Mutual IrmRaince Company. IN TESTIMONY WHEREOF.I have hereunto subscribed my name and aftbced the corporate seat of the Lumbemmm MuWW Casualty Company, the Arnedcan Motorists Insurance Company,and the American Manufacturers Mutual Insurance Cly on this 0 C T 200' arena � ".""'°"' rum f1f tS oeereasms �ba1° • - - mer vt�. _,. .. .,.. . . This Power of Amy Orrtib the acts of those named#train to tate b-o ids and mler"takinps Vocif illy named. therein and VV have no authority to bind the Company except In the manner and to the w dent herein stated. FK 0382 6-9B Printed in U.SA Pawer of Att=ey.Term ,_.Z-)VF STERN 2V't- - CQ,867:%2-" 5fAIN ON rL,eC;ggp November I. 2001 City of San .Tuan Capistrano Attn: Mr, Douglas Dumhart 32400 Pasco Adelanto San Jean Capistrano, CA 92575 Subject: Contract Performance Bond#SSM 982 185 00 Dear Mr. Dunhart: Enclosed is the Continuation Certificate of'the above referenced bond to December 17, 2002, Please contact nye if you have any questions. Sincerely, - i Linda Udris, Risk Manager CRM Incorporated Enclosure Motori.ts Insurance Comp, PERFORMANCt UOND Bond Number: 3SM 982 185 00 Preniiurn: $1,000.00 one year KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal Incorporated and CR&R Incorporated as Principal, and AMERICAN MOTORISTS INSURANCE COMPANY, as Surety, are held and firmly bound unto the City of San Juan Capistrano (hereinafter called Obligee) in the full sura of One hundred thousand and no/100 ($100,000.00) . To the payment of which sum, well and truly to be made, the Principal and Surety bind themselves, their and each df their heirs, exectitoun� adi iitilstPatots; sticcessors and assigns, jointly and severally, firmly by these ptcse k. WHEREAS, the Principal has entered into a botahl WWittetl conf:i-act. with GbIigee for: In city targeted neighborhoods the contractor shall pt-o-vide fe ttl dy scheduled bulky tetii dick ups on the clay of collection, Term: Decetnbet I7, I999 tfll-o igh Dec ' bet 174, 2000 NOW, THEREFOR, THE CONDITION OF TWS OBLIGATION IS SUCH, That if tiie Principal, shall indemnify the obligee against any and all loss ar damage direr-tiy arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shill be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on beceiriber 17, 1999 and ending on December 17, 2000 arta may I e Conti Witlj the c0 cat of ffid Suety for additional one year,terms by the issuance of cotitiffiAttoti cei-ttficates: This bond fib. be canceled by the surety by providing thirty days (30) written tiotice (�t said.caticellatioti to the Obligee: If this bond is renewed for additional periods, the total obligation Hereunder shall not exceed the penal suin of this bond, SIGNED, SEALl7, A 1'; 5�, i�itrcti 23, 2t1tb:- So1ag t7ispd �f rletlr�rlra e Iris,. Z / itt ricat�Maitcrists Insurance Company tiitrr (Surety) By, — �1.���eA� -O, By: J.Shvppea-, Attorney In Fact STATE OF CAUFORMA COUNT-yor A, 13i.. Lk SUBSCRIOED AND SWORN(Ori AFFIRMED)BEFOPIE ME x1,missS nP.4 1101 Commission# I tUI729 �THiS . eNbtcuy Public-California BY lio � - Orange CounI My Comm.bpires Jurr 16,2(X),r) TiJr3C OF NOTARY) DIRECT COkifSPONIWNCti TO LOU JONES&ASSOCIATES,Po E©x 41375,747o N. FIGUEROA ST.,LOS ANGELES,CA 90041 PHONE(323)257-8291 e FAx(323)256-7216 1129Y WEET.ERN AVE F0 PDX jH, STANT6N,CA 90680 ,'i 1826 9049 June,14, 2000 City of Sats Juan Capistrano Attn: Douglas Dumhart 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: Request for $10,000 Performance Bond Performance Bond -No. 3SM 982 185 00 for $100,000 Principal: Sola; Disposal Incorporated and CR&R, Incorporated Dear Mr. Durnhart: Enclosed is a notice we received requesting renewal of the $10,000 Performance Bond required by the Franchise Agreement between Solag Disposal Incorporated and CR&R Incorporated and the City of San Juan Capistrano. Per section 2, section 13 of the First Amendment to the Integrated Solid Waste Collection Agreement, the Performance Bond increased from $10,000 to $100,000. Attached for your files is a copy of bond number 3SM 982 185 00 that was forwarded to you April 6, 2000. If you have any questions, please feel free to call me at (714) 826 9049. Sincerely, 1 Donna L. Collier Insurance & Safety Administrator Encl. �� ?t:rYftfU?PP(R PO.(;ak",";I . 5.��.�t1GPJ.C;a'.trflYi$0 December 7, 2000 City of San Juan Capistrano Attn: Douglas Du:nmhart 32400 Paseo Adelanto San.loan Capistrano, CA 92675 RE: Continuation Certificate Perforrnance Bond - No. ')SM 982 185 00 Principal: Solag Disposal Incorporated and CR&R, Incorporated Dear Mr. Dumhart: Enclosed is a Continuation.Certificate for the above-referenced Performance Bond effective through December 7,2001. If you have any questions, please feel free to call me at(714) 826 9049, Sincerely, Donna L. Collier Insurance & Safety Administrator Encl. Cc: David Fabrion :Jim Koutroulis 29 American Motor1, t-s Insurance Compa.,.y McMPER. Bond Number: 3SM 982 185 00 Continuation Certificate for Bonds which Definitely Expire IN CONSIDERATION of the sum of ONE THOUSAND AND N01100THS Dollars, ($1,000.00) the Undersigned company hereby continues in force its ANNUAL PERFORMANCE Bond number 3SM 982 185 00 in the amount of ONE HUNDRED THOUSAND AND NO1100THS DOLLARS (S100,000.00) Qxi::behalf.'af SOLAG DISPOSAL, INCORPORATED 8 CR&R INCORPORATED and in favor of CITY OF SAN JUAN CAPISTRANO, CA,: as Obligee, for'the period:'beginning at 12:01 a.m. of the 17TH day o DECEMBER, 2000 standard ti n e at the address of the Obligee above given, and ending at 12:01 A.m. of the 17TH day:of DECEMBER,. 2001 standard time at the said address, subject to all covenants'and conditions as set forth;and expressed i said bond:heretofore issued, effective on the23RD day of IVIARCH:2000 This Continuation Certificate is executed upon the express condition that the Undersigned company's liability under said bond and tinder.this and all Continuation.Certificates issued in connection therewith shall not be cumulative and shall not .in:any eventexceed the amount:of said bond as herei nbefore set forth. Current editions of forms will be substituted at each renewal date for the earlier editions if revised during the previous policy terra, and if the company extends or renews the:policy designated in the certificate. SICINED, SEALED,ISA FFD:December 1,:2000 Solag Disposal Incorporated:&'CR&R:incorporated American:Motorists insurance Company (P.iric i.pal) -ry. 'Surety) By: '� s By: tL :. hrist na C 1arkson,Attorney In Fact DIRECT CORRESPONDENCE TO : LOU JONES ASSOCIATES, PO BOX 41375,7470 N.FIGUEROA ST., LOS ANGELES,CA 90041 PHONE(323)257-8291 •FAX(323)255-7218 Continuat€on Certificate-1 I-02-98.dot 'Ic State of California County of Los Angeles On December 1, 2000 A. Melendez Notary Pudic NAME TITLE OF OFFICER personally appeared Christina A. Clarkson NAME OF SIGNER ®Personally known to me - OR -❑ 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 s signature(s) on the instrument the person(s), or the entity upon behalf of which the person(S) acted, 3 executed the instrument. WITNE y end nd offic' l seal. (SI NATURE OF N TAR ` OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIP'T'ION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER TITLE(S) TITLE OR'TYPE OF DOCUMENT PARTNER(S) ❑ LIMITED GENERAL NUMBER OF PAGES ® ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S)OR ENTITY(IES) ---------------------------------------- American Motorists Insurance Company American Manufacturers Mutual Insurance Company SIGNER OTHER THAN NAMED ABOVE Lumbermens Mutual Casualty Company Lou Jones & Associates Home Office: Long Grove, IL 60049 POWER OF ATTORNEY Know All Men By These Presents: That the Lumbermens Mutual Casualty Company,the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company,corporations organized and existing under the laws of the State of Ifinois, having their principal office in Long Grove, Illinois, (hereinafter Collectively referred to as the"Company")do hereby appoint Christina A. Clarkson of Las Angeles, California their true and lawful agent(s)and attorneys)-in-fact,to make,execute,seal,and deliver during the period beginning with the date of issuance of this power and ending on the date specified below, unless sooner revoked for and on its behalf as surety,and as their act and deed: Any and all bonds and undertakings provided the amount of no one bond or undertaking exceeds FIVE HUNDRED THOUSAND DOLLARS($540,000.00) EXCEPTION: NO AUTHORITY is granted to make, execute,seal and deliver any bond or undertaking which guarantees:the payment or coliedion of any promissory note,check,draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the doltar limn of authority as set forth herein. This appointment may be revoked at any time by the Company. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to alt intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal office in Long Grove, Illinois. THIS APPOINTMENT SHALL CEASE AND TERMINATE WITHOUT NOTICE AS OF December 31,2001 This Power of Attorney is executed by authority of resolutions adopted by the Executive Committees of the Boards of Directors of the Company on February 23,.1988 at Chicago, Illinois,true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect: "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary,or the Secretary shall have the power and authority to appoint agents and attorneys-in-fact,and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto,bonds and undertakings, recognizances, contracts of indemnity and other writings,obligatory in the nature thereof,and any such officers of the Company may appoint agents for acceptance of process." This Power of Attorney is signed,sealed and certified by facsimile under and by authority of the following resolution adopted by the Executive Committee of the Boards of Directors of the Company at a meeting duty called and held on the 23rd day of February, 1988: "VOTED,That the signature of the Chairman of the Board,the President,any Vice President,or their appointees designated in writing and filed with the Secretary,and the signature of the Secretary,the seal of the Company,and certifications by the Secretary,may be affixed by facsimile on any power of attorney or bond executed pursuant to resolution adopted by the Executive Committee of the Board of Directors;on February 23, 1988 and any such power so executed,sealed and certified with respect to any bond or undertaking to which it is attached,shall continue to be valid and binding upon the Company." In Testimony Whereof,the Company has caused this instrument to be signed and their corporate seats to be affixed by their authorized officers, this April 13, 1998. Attested and Certified: Lumbermens Mutual Casualty Company American Motorists Insurance Company American Manufacturers Mutual Insurance Company > s P raP JJA) ie ; �ero�aTlaY Z7 Robert P. Hames, Secretary by J.S.Kemper, lit, Exec.Vice President STATE OF ILLINOIS SS COUNTY OF LAKE I, Irene Klewer,a Notary Public, do hereby certify that J.S, Kemper,III and Robert P. Hames personalty known to me to be the some persort whose names are respectively as Exec.Vice President and Secretary of the Lumbermens Mutual Casualty Company,the American Mc';aris;. Insurance Company, and the American Manufacturers Mutual Insurance Company,Corporations organized and existing under the laws cf t: State of Illinois,subscribed to the foregoing instrument, appeared before me this day in person and severalty acknowledged that they be. ; thereunto duly authorized signed, seated with the corporate seals and delivered the said instrument as the free and voluntary act of said corporations and as their own free and voluntary acts for the uses and purposes therein set forth. aleAAA Ad111♦11AA 4 CHIC SEAL' ► .t i rano tv iww, . ► —". .� uotaryPubrla;Suit•orllirna�a p _ Gorrsmasywa EYpIte7 Jui Zit.WPZ 00 _.. .-- My commission expires 1-28-02 TTTTTT V 7 TTTTT Irene Klewer,Notary PLAc CERTIFICATION 1, J.K Conway,Corporate Secretary of the Lumbermens Mutual Casualty Company,the American Motorists Insurance Company, An, �e American Manufacturers Mutual Insurance Company,do hereby certify that the attached Power of Attorney dated April 13, 1998 )n behalf of the person(s)as fisted above is a true and correct copy and that the same has been in full force and effect since the date there' nd is in full force and effect on the date of this certificate;and 1 do further certify that the said J.S.Kemper, III and Robert P.blames,who executed the Power of Attorney as Executive Vide President and Secretary respectively were on the date of the execution of the attached Power of Attorney the duly elected Executive Vice President and Secretary of the Lumbermens Mutual Casualty Company, the American Motorists Ir.. ranee Company,and the American Manufacturers Mutual Insurance Company. IN TESTIMONY WHEREOF,1 have hereunto subscribed my name and affixed the corporate seal of the Lumbermens Mutual Casuatty Cranpany, the American Motorists Insurance Company,and the American Manufacturers Mutual Insurance Company on this December 1, 2000 ai 1Ft A L s caevoe►TMR AN XMM too f tv p J.K Conway, Corporate Secretary This Power of Attorney limits the acts of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the mariner and to the extent herein stated. FK 6362 6-96 Power of Attorney-Term Printed in U.S.A y � � rrk2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT Mate of California y h S5. County of `�......�._....._m_ I F{3 [ On '7/ 60 before me, Hate f� N u ad Title of Office ,N ( ,g„'Jane Due,Notary Public") 1�s personally appeared l AAR-Il Name(s)of Sgner(s)..-....__ .........................____— t l i.._ personally known to me proved to me on the basis of satisfactory evidence h to be the person(s) whose name(s<�iare subscribed to the within instrument and FRANCES P.BODLE acknowledged to me thaK&�shelthey executed LQ Commission# 19t the same in �Iherltheir authorized Not Public-Ccliforr 3 cxZ f �' capacity(ies), and that by < ii /her/their yC age County signature(s) an the instrument the person(s), or ; �Dec 29.2M2 the entity upon behalf of which the person(s) acted, e uted the instrument. I N S and a ficial sea Ie3 Place Notary Seal Above 5ignalure of Notary Public I 0 to L I Though the information below is not required bylaw, it may prove valuable to persons relying on the document 'F and could prevent fraudulent removal and reattachment of this form to another document. , Description of Attached ocument ` Title or Type of Documen#: pl 7 ;� , D rrvr 7V �r Document Date: Number of Pages: �s - Signers) Other Than Named Above: cr A � s� Capacity(ies) Claimed by Signer ; Signer's Name: __- I�i ❑ individual — h C] Corporate Officer—Title(s): Top of thumb ere_ ❑ Partner—i.......;1 Limited ❑General -W E D Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: i Signer Is Representing:_ - - - - - �� JC>�; �-�c,-��. �c.`r.C.�:,�;����-u,�C.`c-t:�u,�-:� 0 1999 National Notary Association•9350 De Soto Ave.,P.O.Box 2402•Chatsworth.CA 813132402•www,natienalnotary.org Prod.No 5907 Reorder.Call Toll-free 1-800.876-6827 BOND RIDER To be attached to and form part of: Bond Number: 6364FP Executed y: SOLAG DISPOSAL COMPANY as Principal, and by: FRONTIER PACIFIC INSURANCE COMPANY, as Surety, in favor of the CITY OF SAN JUAN CAPISTRANO executed on JULY 9 1997. Bond Number 6364FP is hereby modified as follows: THE BOND IS EXTENDED FOR THE PERIOD JULY 8, 1999 TO JULY 8, 2000. The Fond shall be subject to all its guarantees, limitations and conditions except as herein expressly modified. This Rider is effective JULY 8 1999. Signed and sealed JULY 16, 1999: SOLAG DISPOSAL COMPANY Principal y FRONTIER PACIFIC INSURANCE COMPANY Surety By: William R. Lambert, Attorney-In-Fact CALIFORNIA LL- Lm T State of California ss. County of Los Anpe1 es On July 1.6, 1999 , before me, �; Date Name and Title of Officer(e.g.,"Jane Doe,Notary Public") l� personally appeared W i 1 j,ama�jert Name(s)of Signer(s) 11K personally known to me y C proved to me on the basis of satisfactory evidence ' to be the person(s) whose name($) is/ate subscribed to the within instrument and 0 1109191 acknowledged to me that he/shefthey-executed Los the same in his/herAheir authorized Angeles Cour" K,COMM. capacity(1es), and that by his/hef/t i-r signature(4on the instrument the person(-s), or the entity upon behalf of which the persons) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. r Description of Attached Document Title or Type of Document: der - Sola Di s osal Com an_y 6364FP Document Date: Jul y 16, 1999 _ Number of Pages:l (one side) Signer(s)Other Than Named Above: �Z Capacity(iies) Claimed by Signer i Signer's Name: _. Individual Tap of Thumb here Corporate Officer—Title(s): Partner—7] Limited ❑ General 71 Attorney in Fact F Trustee l I -1 Guardian or Conservator D Otter: V Signer Is Representing: I [ E ©1997 National Notary Association-9350 1 Soto Ave..P.O.Box 2402<Chatsworth,CA 91313-2402 Prod.No.5907 Reorder:Call To€€-Free 1-800-876-6827 � I INSURANCE COMPANY ROCK HILL,NEW YORK 12775-8000 (A Stock Company) 'OWER OF ATTORNEY 161t1fi1 A)1 3fleit ills WIlrav J',IreiNetitI: That FRONTIER INSURANCE COMPANY, a New York Corporation, having its principal office in Rock Hid, New York, pursuant to the following resolution,adopted by the Board of Directors of the Corporation on the 4th day of November, 5985: "RESOLVED,that the Chairman of the Board,the President,or any Vice President be,and hereby is,authorized to appoint Attorneys-in- Fact to represent and act for and on behalf of the Company to execute bonds,undertakings,recognizances and other contracts of indemnity and writings obligatory in the nature thereof,and to attach thereto the corporate seal ofthe Company,in the transaction of its surety business; "RESOLVED,that the signatures and attestations of such officers and the seal ofthe Company may be affixed to any such Power of Attorney or to any certificate relating thereto byfacsimile,and any such Power of Attorney or certificate bearing such facsimile signatures of facsimile seal shall be valid and binding upon the Company when so affixed with respectto any bond,undertaking,recognizance or other contract of indemnity or writing obligatory in the nature thereof, "RESOLVED,that any such Attorney-in-Fact delivering a secretarial certification that the foregoing resolutions still be in effect may insert in such certification the date thereof,said date to be not later than the date of delivery thereof by such Attorney-in-Fact." This Power of Attorney is signed and sealed in facsimile under and by the authority of the above Resolution. DOES HEREBY MAKE,CONSTITUTE AND APPOINT: IVAliam R. Lambert of Santa Clarita. ,in the State of California its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred in its name,place and stead to sign,execute,acknowledge and deliver in its behalf,and as its act and deed,without power of redelegation,as follows: Bonds guaranteeing the fidelity of persons holding places of public or private trust;guaranteeing the performance of contracts other than insurance policies;and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedings or by law allowed;INAN AMOUNT NOT TO EXCEED THREE MILLION FIVE HUNDRED THOUSAND($3,500,000.00)DOLLARS;and to bind FRONTIER INSURANCE COMPANY thereby asfully and to the same extentas if such bond or undertaking was signed by theduly authorized officers of FRONTIER INSURANCE COMPANY,and all the acts of saidAttorney(s)-in-Fact pursuant to theauthority herein given are hereby ratified and confirmed. 3 'W, 3i:,1jereuf,FRONTIER INSURANCE COMPANY of Rock Hill,New York,has caused this Power of Attorney to be signed by its President and its Corporate seal to be affixed this 29th day of .3epterrmber 19 97 FRONTIER INSURANCE COMPANY "SUgkNL SEAL ,v a A n:. State of New York Fw Yoe BY: County of Sullivan ss.: HARRY W. RHULEN, President On this 29th day of September '19 97 before the subscriber,a Notary Pubiic of the State of New York in and forthe County of Sullivan,duly commissioned and qualified,came HARRY W.RHULEN of FRONTIER INSURANCE COMPANY to me personally known to be the individuaf and officer described herein,and who executed the preceding instrument,and acknowledged the execution of the same,and being by me duly sworn,deposed and said,that he is the officer of the Company aforesaid,and that the seal affixed to the preceding instrument is the Corporate Seal ofthe Company,and the Corporate Seal and signature as an officer were duly affixed and subscribed to the said instrument by the authority and direction ofthe Corporation,and thatthe resolution ofthe Company,referred to in the preceding instrument, Is now In force. n�e�#ttttETnt7 flert>uf, I have hereunto set my hand,and affixed my official seal at Rock Hill,New York,the day and year above written. .......... �aOTApy: .>T•._.., o@ NANCY V,PIERRO- �o �va ` Notary Public State of New York Sullivan County Clerk's No,2395 Commission Expires July 8, 1998 CERTIFICATION I,JOSEPH P.LOUGHLIN,Secretary of FRONTIER INSURANCE COMPANY of Rock Hill,New York,do hereby cert4thatthe foregoing Resolution adopted by the Board of Directors of this Corporation and the Powers of Attorney issued pursuant thereto,are true and carrect,and that both the Resolution and the Powers of Attorney are in full force and effect. cru 'Wttn2es W4jervof, I have hereunto set my hand and affixed the facsimile seal of the corporation this 16th day of July , 19 99 ,,,.,,.,.,, 4Q.o��pga $ N S SEAL Wy04' _ M FM 19-5002-A(4/96) JOSEPH P.I-OUGHUN,Secretary � Awterlcan Motor.,-As Insurance Comp"Aly IV@mFOR. PERFORMANCE BOND Bond Number: 3SM 982 185 00 Premium: $1,000.00 one year KNOW ALL MEN BY THESE PRESENTS: That Solag Disposal Incorporated and CR&R Incorporated as Principal, and AMERICAN MOTORISTS INSURANCE COMPANY, as Surety, are held and firmly bound unto the City of San Juan Capistrano (hereinafter called Obligee) in the full sum of One hundred thousand and no/100 ($100,000.00) . To the:payrnent of which sum, well and truly to be made; the Principal and Surety bind themselves, their and each of their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a certain written contract with Obligee for. In city targeted neighborhoods the contractor shall provide regularly scheduled bulky item pick ups on the day of collection. Term: December 17, 19'99 through December 17, 2000 NOW, THEREFORE, THE CONDITION.OF THIS OBLIGATIONIS SUCH, That if the:Principal, shall indemnify the obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect. This bond is effective for a period of one year commencing on. December.17, 1999 and ending on December 17, 2000 and may be continuedwith the consent of the Surety'for additional one;year terms by the issuance of continuation.certificates:. ` This bond may be canceled by the surety by providing thirty days (30) written notice of said'cancellation to the Obligee If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this'bond. SIGNED, SEALED, DATED;March23, 2©©0 S414 Disposal Incorporated and CR&R: Atr erican Motorists Insurance Company Incorporated (Surety) (Principal)' By: Ey J. 5hupper, Attorney In Fact STATE OF CALIFORNIA COUNTY OF .._: IVAES P.BODLF SUBSCRIBED AND SWORN(OR AFFIRMED)BEFORE]VIE �� Comm # ]10]729 THIS��[SAY OFhp $� i Notary Public.-carfornia BY `"T1 01 anoe Ca;;n]y MV ccrnf'1 5.311 In 1,R _€ `CURL."OF NOTARY) DIRECT CORRESPONDS,NCE TO LOU JONES&ASSOCIATES, PO BOX 41375, 7470 N. FIGUEROA ST., LOS ANGELES, CA 90041 PHONE(323)257-8291 .FAX(323)256-7218 C�kC R s# ell »1 t t +NOW State of California County of Los Angeles OnC. Clarkson Notary Public NAME TI'T'LE OF OFFICER personally appeared William J. Shupper NAME OF SIGNER 77 Personally known. to Ise - OR - E] 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 Q&)RJs9C�<�ar7 rawye;, ;; ,„«ca sad;O�vwhich the person(s) acted, executed the instrument. P KS h Mt'h WITNES my hand and official seal. ':E>.°R4a•9�Q;e G^,�r d.LT ac ti'.;)C^1 C,C]fs�,n;�,Si k;;F,q S:G',t,•S<cd�23'rd�a L'3 •.. (SIGNATURE OIF NOTARY) OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form, CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S) ---------------------------------- PARTNERS) ❑ LIMITED GENERAL NUMBER OF PAGES ® ATTORNEY-IN-FACT TRUSTEE(S) frl r_ G1 GUARDIAN/CONSERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: NA.MF,O PFRSON(S)OR ENTITY(IES) ------•-------•- --------•---------•-- American Motorists Insurance Company American Manufacturers Mutual Insurance Company SIGNER OTHER THAN NAMED ABOVE Lumbermens Mutual Casualty Company Lou Jones & Associates I " Home Office: Long Grove, IL 60049 POWER OF ATTORNEY Know All Men By These Presents: That the Lumbermens Mutual Casualty Company,the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company,corporations organized and existing under the laws of the State of Illinois, having their principal office in Long Grove, Illinois, (hereinafter collectively referred to as the"Company")do hereby appoint William I Shupper of Los Angeles, California***** their true and lawful agent(s)and attorney(s)-in-fact,to make,execute,seal,and deliver during the period beginning with the date of issuance of this power and ending on the date specified below, unless sooner revoked for and on its behalf as surety,and as their act and deed: Any and all bonds and undertakings. EXCEPTION: NO AUTHORITY 1w granted to make, execute,seal and deliver any bond or undertaking which guarantees the payment or collection of any promissory note,check,draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein. This appointment may be revoked at any time by the Company. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes,as if the same had been duly executed and acknowledged by their regularly elected officers at their principal office in Long Grove, Illinois. THIS APPOINTMENT SHALL CEASE AND TERMINATE WITHOUT NOTICE AS OF December 31,2001 This Power of Attorney is executed by authority of resolutions adopted by the Executive Committees of the Boards of Directors of the Company on February 23, 1988 at Chicago, Illinois,true and accurate copies of which are hereinafter set forth and are hereby certified to by the undersigned Secretary as being in full force and effect: "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees designated in writing and filed with the Secretary,or the Secretary shall have the power and authority to appoint agents and attorneys-in-fact,and to authorize them to execute on behalf of the Company,and attach the seal of the Company thereto,bonds and undertakings, recognizances, contracts of indemnity and other writings,obligatory in the nature thereof,and any such officers of the Company may appoint agents for acceptance of process." This Power of Attorney is signed,sealed and certified by facsimile under and by authority of the following resolution adopted by the Executive Committee of the Boards of Directors of the Company at a meeting duly called and held on the 23rd day of February, 1988: "VOTED,That the signature of the Chairman of the Board,the President,any Vice President,or their appointees designated in writing and filed with the Secretary,and the signature of the Secretary,the seal of the Company,and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to resolution adopted by the Executive Committee of the Board of Directors on February 23, 1988 and any such power so executed,sealed and certified with respect to any bond or undertaking to which it is attached,shall continue to be valid and binding upon the Company." In Testimony Whereof,the Company has caused this instrument to be signed and their corporate seals to be affixed by their auffic,zed officers, this January 28, 1993. Attested and Certified: Lumbermen Mutual Casualty Company American Motorists Insurance Company American Manufacturers Mutual Insurance Company `��wai Ca�4� *�,nE.lar o �o�tlisss ia�ogn 1 a Y7 ARP& MM a SiAI ECOMORA7F67E a �+ S a�Y ........... .__.. _..., Robert P. Hames,Secretary by J. S.Kemper, 111,Exec.Vice President 1?9? ll'SFERN AVE.. PO PDX lis STANITA.CA 90680 ]1 d-926 9949 April 6, 2000 City of San Juan Capistrano Attn: Douglas Durnhart 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: Performance Bond - No. 3SM 982 185 00 Principal: Solag Disposal Incorporated and CR&R, Incorporated Dear Mr. Dumhart: Enclosed is a notarized Bond for the above referenced. If you have any questions, please feel free to call me at (714) 826 9049. Sincerely, l Donna L. Collier Insurance & Safety Administrator Encl. - rzrrt�..r.n i'kf`LR -RIONTIER =- = WSURANCt~COMPANY July 21, 2000 City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RE: Surety Bond Number: 6364 Principal: Solag Disposal, Inc. Dear Sirs: We, as surety for the above captioned, are requesting, effective July 8, 2000, release on the above captioned bond. Please sign the enclosed copy of this letter indicating your approval for the release, and return same in the enclosed self-addressed postage paid envelope. Please retain one copy for your records. Very truly yours, )V�-V2' errie Nu ner Surety Assistant Bond Department, Ext. 5405 Approval for release of Bond No. 6364 for Solag Disposal, Inc. is hereby approved, effective July 8, 2000. BY /� Title Date '2-o®z:� Enc. cc: SCE Insurance Agency, Inc. Solag Disposal, Inc. 2L 636 Elm Hill Pike,Suite 500 © 4250 EXECUTIVE SQUARE SUITE 200 Nashville,TN 37214 LA JOLLA,CALIFORNIA 92037 (615)884-1112, FAX(615)884-1157 (618)642-5400, FAX(619)452-2335 BOND RIDER To be attached to and form part of : Bond Number: SAL301135 Executed by: Solaq Disposal,.. Inc. as Principal, and by: Nobel Insurance Company, as Surety in favor of: Cit San Juan Capistrano executed on the 17th day of August,_1995 is hereby changed as follows: The period covered is hereby extended to expire July 8, 1997. The bond shall be subject to all its guarantees, limitations and conditions except as herein expressly modified. This Rider is effective this 26th day of August, 1996. Signed and sealed: SOLAG DISPOSAL INC. Principa By: NOBEL INSURANCE COMPANY Surety By: William R. Lambert, Attorney-Ire-Fact RIDER ACCEPTED (Please sign copy of this rider and return it to the Surety) Title a NOBEL INSURANCE COMPANY 61.6369 GENERAL POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS,NTS,That NOBEL INSURANCE COMPANY has made,constituted and appointed,and by these presents does make,constitute and appoint William R. Lambert its true and lawful attorney-in-fact, for it and in its name, place, and stead to execute on behalf of the said Company, as surety, bonds, undertakings and contracts of suretyship to be given to ALL OBLIGEES provided that no bond or undertaking or contract of suretyship executed under this authority shall exceed in amount the sum of hundred thousand dollars ($200,000)******************** This Power of Attorney is granted and is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the Board of Directors of the Company on the 24th day of August, 1995. "RESOLVED,that the Chairman of the Board,the Vice Chairman of the Board,the President,an Executive Viae President.or a Senior Vice President or a Vice President of the Company,be,and that each or any of thein is,authorized to execute Powers of Attorney qualifying the attorney-in-fact named in the given Power of Attorney to execute in behalf of fie Company,bonds,undertakings and all contracts of suretyship;and that an Assistant Vice President,a Secretary or an Assistant: Secretary be,and that each or any of them hereby is,authorized tcu attest the execution of any such Power of Attorney,and to attach thereto the seal of the Company. FURTHER RESOLVED,that the signatures of saeh officers and the seal of the Company may be affixed to any such.Power of Attorney or to any certificate relating thereto by facsimile,and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile seal shall be valid and binding upon the Company when so affixed and in the future with respect to any bond,undertaking or contract of suretyship to which it is attached." In Witness Whereof,NOBEL WSURANCE,COMPANY has caused its official seal to be hereunto affixed,and these presents to be signed by one of its Vice Presidents and attested by one of its Assistant Vice Presidents this 1st day of October,1995. Attest: NOBEL INSURANCE COMPANY By ,'�d5v R•k CE Co•. SEAL Steven W.Tames,Assistant Viae President Emil B.Askew,Vice President STATE OF GEORGIA SS: COUNTY OF IDEKA'LB On this I st day of October, 1995,before me personally came Emil B,Askew,to nae known,who being by me duly sworn did depose and say that he is a Vice President of NOBI3L INSURANCE COMPANY, the corporation described in and which executed the above instrument; that he knows the seal of the said corporation; that the seal affixed to the said instrument is such corporate seal; that it was so affixed by order of the Board of]directors of said corporation and that he signed his name thereto by like order. OFFICIAL SEAL 'gpAY�q:" LENORA N. CAPE NPUBLIC MY COMMISSION EXP€RE AUGUST 3,7998 Lenora N.Cape NOTARY PUBLIC My Commission Expires August 3, 1998 CERTIFICATE 1,the undersigned,an Assistant Secretary of NOBEL,INSURANCE COMPANY,a Texas corporation,DO IIEREBY CERTIFY that the foregoing and attached Power of Attorney remains in full force and has not been revoked;and furthermore that the Resolution of the Board of Directors,set forth in the said Power of Attorney,is now in force. Signed and sealed at the city of Atlanta in the State of Georgia. Dated the 26th day of August 19 96 Charles B.Cape,Assistant Secretary CALIFORNIA, ALL-PURPOSE ACKNOWLEDGMENT No.SW7 State of California County of Los Angeles On August 26, 1996 before me, DATE NAME,TITLE OF OFFICER.E.G.,'JANE DOE,NOTARY PUBLIC- personally appeared William R. Lambert , NAME(S)OF SIGNER(S� ® personally known to me - OR - El 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 ac- knowledged 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), KELLY PRYOR or the entity upon behalf of which the '.,v-,,. 1022890 person(s) acted, executed the instrument. I `h ', Notary Nblia---California z., A LOS A �ELF:5 COUNTY ' i+rY ��'.�; pz` s ,t » WITNESS my hand and official seal. w. NATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TM-E(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ® ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S)OR ENT(TYJIES) SIGNER(S)OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309.7184 BOND RIDER To be attached to and form part of : Bond Number: 6364FP Executed by: SOLAG DISPOSAL COMPANY as Principal, and by: FRONTIER PACIFIC INSURANCE COMPANY, as Surety, in favor of the CITY OF SAN JUAN CAPISTRANO executed on JULY 9 1997. Bond Number 6364FP is hereby modified as follows: THE BOND IS EXTENDED FOR THE PERIOD JULY 8, 1998 TO JULY 8, 1999. The bond shall be subject to all its guarantees, limitations and conditions except as herein expressly modified. This Rider is effective JULY 8, 1998. Signed and sealed JULY 28, 1998: SOLAG DISPOSAL COMPANY rincipal B y AI- V'e'- FRONTIER PACIFIC INSURANCE COMPANY Surety � r By: William R. Lambert, Attorney-In-Fact CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of Inc A,n�a On .,,j_u_�_-- before me, Alexandra ate Name and Title of Otticer{e,g.,"Jane Doe, otay Publid') personally appeared Wi 11 1 i am R_ I ambei:t Name(s)at Signer(s) R. personaily known to me 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 AifxANoaALAMM the same in his/her/their authorized Gommww 1109191 gym' Nofc yPubNc—califomb capaclty(ies), and that by his/her/then" LcsAnge€e-COUrtY signature(s) on the instrument the person(s), or Ivh,Comm.Expires Aug 18, the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above n Signature of NotaryPublic OPTIONAL 8ONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. ) Description of Attached Document Title or Type of document: — D_n_d_i'3 d2_r __.6. Document Bate:-_ ,7 j lv 2R- 199R Number of Pages: 1 Signer(s)Other Than Named Above: Capacity(les) Claimed by Signer Signer's Flame: ----_-__-- ❑ Individual Tap of thumb here Corporate Officer—Ttle(s): Partner—❑ Limited I] General ❑ Attorney in Fact [ ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: caj 1997 National Notary Association•9350 Do Soto Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402 Prod.No.59€17 Reorder:CaH Toll-Free 1-800-876-6827 Y ' SROMTREArm INSURANCE COMPANY (A California Company) 4250 Executive Square,Suite 200,La.bila,California 92037 POWER OF ATTORNEY jtd1111h,SIE,13fle►tAluTl arjjrrer.rtN:ThatFRONTIERPACIF'ICINSURANCE=COMPANY,aCaiiforniaCorporation.having its principal office in La Jolla,California,pursuant to the following resolution,adopted by the Board of Directors of the Corporation on the 15th day of November,1991. "RESOLVED,that the Chairman of the Board,the President,or any Vice President be,and hereby is,authorized to appoint Attorneys-in- Fact to represent and act for and on behalf of the Company to execute bonds,undertakings,recognizances and other contracts of indemnity and writings obligatory in the nature thereof, and to attach thereto the corporate seal of the Company, in the transaction of its surety business; "RESOLVED,that the signatures and attestations of such officers and the seal of the Company may be affixed toany such Power of Attorney or to any certificate relating thereto by facsimile,and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile sea$shall be valid and binding upon the Company when so affixed with respect to any bond,undertaking,recognizance or other contract of indemnity or writing obligatory in the nature thereof; "RESOLVED,that any such Attorney-in-Fact delivering a secretarial certification that the foregoing resolutions still be in effect may insert in such certification the date thereof,said date to be not later than the date of defivery thereof by such Attorney-in-Fact." This Power of Attorney is signed and sealed in facsimile under and by the authority of the above Resolution, DOES HEREBY MAKE,CONSTITUTE AND APPOINT: Alexandra Lambert Santa Clarita California of in the State of its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred in its name,place and stead to sign,execute,acknowledge and deliver in its behalf,and as its act and deed,without power of redelegation,as follows: Bonds guaranteeing the fidelity of persons holding places of public or private trust;guaranteeing the performance of contracts other than insurance policies;and executing or guaranteeing bonds and undertakings required or permitted in all actionsor proceedings or by law allowed; IN AN AMOUNT NOT TO EXCEE=D THREE MILLION FIVE HUNDRED THOUSAND($3,500,000.00)DOLLARS;and to bind FRONTIER PACIFIC INSURANCE COMPANY thereby as fully and to the same extent as if such bond or undertaking was signed by the duly authorized officers of FRONTIER PACIFIC INSURANCE COMPANY,and all the acts of said Attorneys)-in-Fact pursuant to the authority herein given are hereby ratified and confirmed. elt Witness 311jerVt1f,FRONTIER PACIFIC INSURANCE COMPANY of La Jolla,California,has caused this Powerof Attorney to be signed by its Vice President and its Corporate seal to be affixed this 28th day of JU I y 19 98 FRONTIER PACIFIC INSURANCE COMPANY ,•u�f��INSUgq', 0 " _,µICY 2"; '.G STATE OF CALIFORNIA) .,, DAVID E.CAMPBELL,Vice President COUNTY OF SAN DIEGO) On__42$j_Ct8_ _before me,Treva Kensier,personalty appeared David E.Campbell,personalty known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person(s),or the entity upon behalf of which the person($) acted, executed the instrument. WITNESS my hand and official seal +}/ TREVA KENSLER QCommission# 1045661 Z Z Notary Public—California Z Z San Diego County > My Comm.Expires Nov.26,1948 loom 0 00004000 - ----- - - - - - - - - - - Signature of Notary Corporation Acknowledgement I,the undersigned,Joseph P.Loughlin,Secretaty of FRONTIER PACIFIC INSURANCE COMPANY,do hereby certitythat the original POWER OF ATTORNEY,of which the foregoing is a full,true and correct copy,is in full force and effect. IN WITNESS WHEREOF, I have hereunto subscribed my name as Joseph P. Loughlin, Secretary, and affixed the Corporate Seat of the Corporation this 28t-.h day of. J u l V -,1928, -JIAY 75 �b t3€ 5974 `a ::AYf J4 oseph P.Loughlin,Secretary FM19-5002A-FP(12196) W-i2925•t2/98 1©ort PERFORMANCE BOND Bond No.: 6364FP Premium: $150.00 KNOW ALL MEN BY THESE PRESENTS: That SOLAG DISPOSAL, INC. as Principal, and FRONTIER PACIFIC INSURANCE COMPANY, as Surety, are held and firmly bound unto the CITY OF SAN JUAN CAPISTRANO, (hereinafter called Obligee), in the full sum of TEN THOUSAND AND N01100 DOLLARS ($10,000.00). To the payment of which sum, well and truly to be made, the Principal and Surety bind themselves, their and each of their heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into a certain written contract with the Obligee, for: PICK UP AND COLLECTION OF SOLID WASTE WITHIN THE PRESENT AND FUTURE BOUNDARIES OF SAN JUAN CAPISTRANO. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, That if the Principal shall indemnify the Obligee against any and all loss or damage directly arising by reason of the failure of the Principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect: This bond is effective for a period of one year commencing on July 8, 1997 and ending on July 8, 1998 and may be continued with the consent of the Surety for additional one year terms by the issuance of continuation certificates. This bond may be canceled by the Surety by providing thirty (30) days written notice of said cancellation to the Obligee. If this bond is renewed for additional periods, the total obligation hereunder shall not exceed the penal sum of this bond. Signed, sealed and dated this 9th day of July 1997. SOLAG DISPOSAL CO. Principal /y: ' - FRONTIER PACIFIC INSURANCE COMPANY Surety By: 1 ?# a William R. Lambert Attorney-In-Fact f 49RONTIVER = NVSlJRAV FC©f'✓fPANY (a California Company) 6404 Wilshire Blvd.,Sulfe 850,Los Angeles,Colifornio 90048-5510 POWER OF ATTORNEY Tfttivl n All Ten'ov Tlfese presente:That FRONTIER PACIFIC WSURANCE COMPANY,a Caiifornia Corporation,having its principal office in Los Angeles,California,pursuant to the following resolution,adopted by the Board of Directors of the Corporation on the 16th day of November,1991. "RESOLVED,that the Chairman of the Board,the President,or any Vice President be,and hereby is,authorized to appoint Attorneys-in- Fact tore present and act for and on behalf of the Company to execute bonds,undertakings,recognizances and other contracts of indemnity and writings obligatory in the nature thereof, and to attach thereto the corporate seal of the Company, in the transaction of its surety business; "RESOLVED,that the signatures and attestations of such officersandthe seal of the Company may beaffixed to any such Power of Attorney or toany certificate reiating thereto by facsimile,and anysuch Power of Attorney or certificate bearing suchfacsimlle signatures orfacsimile seal shall be valid and binding upon the Company when so affixed with respect to any bond,undertaking,recognizance or other contractof indemnity or writing obligatory in the nature thereof; "RESOLVED,that any such Attorney-i n-Fact delivering a secretariai certification that the foregoing resolutions still be in effect may insertin such certification the date thereof,said date to be not cater than the date of delivery thereof by such Attar ney-i n-Fact." This Power of Attorney is signed and sealed in facsimile under and by the authority of the above Resolution. DOES HEREBY MAKE,CONSTITUTE AND APPOINT: HENRY F.WRIGHT JOHN P, BROOKS WILLIAM R.LAMBERT MARGARETA T. HIERL of PASADENA ,in the State of CALIFORNIA its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred in its name, place and stead to sign,execute,acknowledge and deliver in its behalf,and as its act and deed,without power of redelegation,as follows: . Bonds guaranteeing the fidelity of persons holding places of public or private trust;guaranteeing the performance of contracts other than insurance policies;and executing or guaranteeing bonds and undertakings required or permitted in all actions or proceedings or by law allowed; IN AN AMOUNT NOT TO EXCEED THREE MILLION FIVE HUNDRED THOUSAND($3,500,000.00)DOLLARS;and to bind FRONTIER PACIFIC INSURANCE COMPANY thereby as fully and to the same extent as if such bond or undertaking was signed by the duly authorized officers of FRONTIER PACIFIC INSURANCE COMPANY,and all the acts of said Attorneys)-in-Fact pursuantto the authority herein given are hereby ratified and confirmed. ,31n Witnm Pl vreilf,FRONTIER PACIFIC INSURANCE COMPANY of Los Angeles,California,has caused this Power ofAttarneyto besigned by its Vice President and its Corporate seal to be affixed this 9th day of July '19 97 FRONTIER PACIFIC INSURANCE COMPANY ,C\�\G.INSUgQHs,'. lu ? m p- � JligY925❑ �_ � / STATE OF CALIFORNIA) " DAVID E.CAMPBELL,Vice President COUNTY OF LOS ANGELES) On ju y_ 9+ 1997 before me, Pilar M. Landeta, Notary Public, personally appeared David E. Campbell, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity,and that by his signature on the instrument the person,or the entity upon behalf of which the person acted,executed the instrument. WITNESS my hand and official seal Le*o PILAR M. LANDETA COMM.#1006226 > Uj QNOTARY PUBLIC-CALIFORNIA � rn LOS ANGELES COUNTY a My Comm.Expires SEPT.30,1997 Notary Public I,the undersigned,Joseph P.Loughlin,Secretary of FRONTIER PACIFIC INSURANCE COMPANY,do hereby certify thatthe original POWER OF ATTORNEY,of which the foregoing is a full,true and correct copy,is in full force and effect. IN WITNESS WHEREOF, I have hereunto subscribed my name as Joseph P. Loughlin, Secretary, and affixed the Corporate Seal of the Corporation this 9th day of '7111)?' _ 19 4-7, FFf xJiJLv 25a ,;" •, _Z'; 1993 9, Joseph P.Loughlin,Secretary FM 19-5002A-FP{4195) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT . State Of Californias 2 County of Los Angeles 5 On July 9, 1997 before me, Donna Mac Lellan, Notary Public Dare Name and Title of off€cer(e.g.,'Jane Doe,Notary Public") ` personally appeared William R. Lambert Names)of S€gner(s) `!$ impersonally known to me ❑ proved to me on the basis of satisfactory evidence e�®IVt�IA nuc� i to be the person(s) whose names) is/are subscribed to the 6 commission#ii 1644'7 within instrument and acknowledged to me that he/she/they NotonrPublic--CalHornia executed the same in his/her/their authorized capacity(ies), Los AngelesCounty and that b his/her/their signature(s) ori the instrument the � y Comm,E:xpir�s t3ov 24.2 � Y person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and Official seal. Signature of Notary Publ€c E OPTIONAL Though the information below is not required by lain, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: i Document Date: Number of Pages: Signer(s) Other Than gamed Above: t� Capacity(les) Claimed by Signer(s) Signer's Name: _ i Signer's Name: ❑ Individual ❑ Individual Corporate Officer ❑ Corporate Officer Title(s): Title(s): ❑ Partner—❑ Limited ❑ General ❑ Partner—❑ Limited ❑ General Attorney-in-Fact ❑ Attorney-in-Fact F-, Trustee ❑ Trustee ❑ Guardian or Conservator W. ❑ Guardian or Conservator `- ❑ Other: Top of thumb here , ❑ Other: Top of thumb here ; Signer Is Representing: Signer Is Representing: C 159&National Notary Association•8236 Remmet Ave.,RO.Box 7184•Canoga Park,CA 91309-7184 Prod.No-5907 Reorders Cali Toll-Free 1-800-876-6827 MEMORANDUM TO: Memo to File FROM: Maria Guevara, Secretary DATE: April 18, 2000 SUBJECT: Solag Disposal Company CC Approved Franchise Transfer from Solag Disposal Company, Inc. to CR&R Incorporated. CR&R will continue to use the name of Solag Disposal, Inc.