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1996-1217_CR&R INCORPORATED_6th Amd to Collection AgreementSIXTH AMENDMENT TO THE INTEGRATED SOLID WASTE COLLECTION AGREEMENT This Sixth Amendment to the Integrated Solid Waste Collection Agreement (this "Agreement") is made and entered into this ii day of June, 2012, 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; and 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, the Fourth Amendment extended the 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, the Fourth Amendment further increased services to the City, enabled Electronic Waste Collection services, a Food composting program, manure collection, and adjusted Franchise Fee payments to the City without any rate impact to customers; and WHEREAS, the Fifth Amendment established July instead of January as the month within which automatic adjustments to rates would be made. AMENDMENTS 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. Administrative Fee Established. Section 12.5 is hereby added to the Original Agreement to read as follows: 12.5. Administrative Fees. Contractor agrees that beginning July 1, 2012 and each July of successive years as long as the Franchise Agreement is in, place between the parties, to pay the City an Administrative Fee of $30,000 to assist the City in administrating this agreement and other solid waste programs. This fee will be adjusted annually by the change of the Consumer Price Index for All Urban Consumers, all items index (CPI -U) — U.S. city average as measured over 12 months ending the December 31 preceding the payment due date. This fee is in addition to and separate from other fees collected by Contractor and supplied to the City. There shall be no adjustment to customers' rates for this fee. SECTION 2. Additional Universal Waste Collection Services. The following paragraph is added to Section H of Exhibit C as amended by Section 6 of the Fourth Amendment: Contractor shall develop and implement a Universal Waste Collection program at no cost to the City or Customers. Company shall provide Universal Waste collection drop- off areas when requested by the City (up to 6 locations, including City Hall) at public or private facilities subject to City approval. Included items shall be batteries and fluorescent tubes. Universal Waste collected by Contractor shall be processed as to recycle, re -use, and otherwise diverted from disposal facilities to the greatest extent practical. To the extent that Universal Waste is placed in the waste stream of the City, it shall be disposed of in compliance with all applicable laws and regulations. SECTION 3. Additional Household Sharps Collection Services. The following paragraph is added to Section H of Exhibit C as amended by Section 6 of the Fourth Amendment: Contractor shall establish at least one Household Sharps Waste drop off location in or near the City with pharmaceutical establishments or other facilities as approved by City. Sharps collected by Contractor shall be processed as to divert from disposal facilities these materials to the greatest extent practical. To the extent that Household Sharps Waste is placed in the waste stream of the City, it'shall be disposed of in compliance 2 with all applicable laws and regulations. City facilities shall not be used as a Household Sharps Waste drop off locations. SECTION 4. Additional Food Waste Collection Services. Subdivision (3) is added to Subsection (c) of Section 6 of the Original Agreement to read as follows: (3) Contractor shall establish a food waste collection program, at existing 64 -gallon recycling cart rates (with Commercial Bin Trash Service) noted in Exhibit A. The program shall be made available to City businesses for voluntary enrollment into the program. SECTION 5. Residential Bulky Waste Pickup Services Increased. Subdivision (3) of Subsection B of Section 6 of the Original Agreement is hereby amended to read: Contractor shall provide Bulky Waste pickup service to Single -Family Dwelling Unit Customers. Single -Family Dwelling Unit Customers will be entitled to four (4) pickups per dwelling unit per calendar year, with a maximum of four items per pickup, or up to 20 bags of Green Waste, for no additional charge. Customers will provide the Company with 48 hours notice and the items will be collected on the Customer's regular Collection day. Additional pickups will be charged as outlined in Exhibit A. SECTION 6. Residential Replacement paragraph is added to Subdivision (9) of Agreement to read as follows: Carts Services Updated. The following Subsection A of Section 8 of the Original Contractor shall be responsible for Residential Cart repair and maintenance, graffiti removal and replacing lost, stolen or damaged Carts within 24 hours at no additional charge to the Customer or to the City. If approved in advance by the City on a case by case basis, Contractor may charge Customer a fee no higher than the Contractor's actual cost of repair and replacement in the event of willful neglect or abuse of the Cart by the Customer, provided that the Contractor shall exchange carts once per calendar year at no charge to the Customer for any Customer requesting the exchange. Each cart so exchanged shall be new or in a "like new" condition. SECTION 7. Residential Audits Added. Subdivision (4) is added to Subsection B of Section 6 of the Original Agreement to read as follows: (4) Contractor shall conduct annually residential audits of at a minimum 10% of the single family residential customers to determine either 1) Contamination of trash in the recycling cart, or 2) Excessive recyclables in the trash cart. Contractor shall inspect carts and leave notification tags on the cart instructing customer "how to" do better in source separation procedures. Tags must be approved by City in advance and shall leave a positive message to customer to improve recycling habits. Contractor shall report results of each annual audit, including results from a second follow up inspection to those premises previously "tagged" and report to City in its Annual Report. SECTION 8. Material Recovery Facility Adjustment. The following paragraph is added to Exhibit B: 3 It is understood that the annual landfill component adjustment shall also be applied to the Processing Component. Roll -off Box Rate Adjustment shall include an annual adjustment for the Material Recovery Facility for processing of mixed waste. SECTION 9. AB 341 Indemnification Added. The following paragraph is added to Subsection D of Section 26 of the Original Agreement to read as follows: AB -341 (2011) Indemnification. Contractor agrees to indemnify and hold harmless the City against all fines and/or penalties imposed by the State of California or CalRecycle (i) based on the Contractor's failure to comply with laws, regulations or permits issued or enforced by the State or CalRecycle; (ii) caused or contributed to by the Contractor's failure to perform its obligations under this Franchise Agreement, including the annual diversion rate requirement. Contractor shall indemnify City regarding existing and future Diversion and Solid Waste Compliance requirements in connection with the execution of this Franchise Agreement. This indemnification shall include any changes in legislation including diversion rate requirements and mandatory commercial recycling mandates and reporting per AB 341 (2011). This indemnity obligation is subject to the limitations and conditions in Public Resource Code Section 40059.1 but is enforceable to the maximum extent allowable by that Section. SECTION 10. Abandoned Items Collection Services Added. Subdivision (7) is added to Subsection E of Section 6 of the Original Agreement to read as follows: (7) Contractor will collect all items abandoned in City's public right-of-ways or on City's public property within 24 hours of notification from the City to do so. Contractor shall not charge the City for this service. SECTION 11. Disaster Preparedness Plan Services Added. Subdivision (8) is added to Subsection E of Section 6 of the Original Agreement to read as follows: (8) If requested by the City, Contractor shall submit to City within 60 days of the request, a written contingency plan demonstrating Contractor's arrangements to provide vehicles and personnel and to maintain uninterrupted service during breakdowns, and in case of natural disaster or other emergency (not including labor dispute). SECTION 12. Emergency Collection and Disposal Services Added. Subdivision (9) is added to Subsection E of Section 6 of the Original Agreement to read as follows: (9) Contractor will assist City at the City's request with emergency Collection and Disposal service (in the event of a major disaster, such as an earthquake, storm, riot, or civil disturbance), or as otherwise assigned to the City, at rates negotiated and approved by both parties. 4 SECTION 13. Nonprofit Organization Assistance Added. Subsection K is added to Section 6 of the .Original Agreement to read as follows: K. Non Profit Organization Assistance. Contractor shall provide Roll -off or Storage Bins to any qualified or certified non- profit group, e.g. Boy Scouts, Girl Scouts, Boys' and Girls' Clubs, churches, Earth Clubs, etc. The rates charged by Contractor to such groups shall not exceed the actual transportation costs incurred by Contractor in dropping off and picking up the Bins; and, Contractor shall impose no such charge for this service unless the non-profit group in question receives a monetary payment from recycling any materials collected in the Bins and such proceeds exceed Contractor's actual transportation costs. Contractor shall appropriately dispose of or divert for recycling pursuant to the terms hereof any Solid Waste or Recyclable Material collected in Bins it provides pursuant to this paragraph, and shall pay non-profit organizations the prevailing market rate for any Recyclable Material collected in Bins provided by Contractor pursuant to this paragraph. SECTION 14. Increased Disposal Services to City. Subdivision (6) of Subsection E of Section 6 of the Original Agreement is added to read as follows: In addition to those items identified in Amendment Number 4, City shall be allowed to deliver clean dirt from City Streets and utility repair operations to the CR&R Material Recovery Facility at no charge. Any load that has contamination of trash, concrete, asphalt, wood or other material other than clean dirt will be charged for processing at the then current processing rate for the facility. SECTION 15. 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, the Third Amendment dated August 19. 2003, the Fourth Amendment dated April 21, 2009, and the Fifth Amendment dated September 7, 2010, 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, 2012. SECTION 16. 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. [SIGNATURE PAGE FOLLOWS] 5 IN WITNESS WHEREOF, the parties have executed this Amendment as of the date and year first written above. APPROVED AS TOFORM: CITY OF S4JUANISTRANO By: M Y CRBRINCORPORATED "CONTRACTOR" Date: 6 . i • l z By:" , D -A ITS: V:ia PRasijt. r . Date: By: =r i wfqm •t �Z. �Ai. -°• Iti i �3 J. v - .01 -J ,. .,.