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00-0215_CR&R INCORPORATED_Collection Agreement 1-41 MEMORANDUM TO: Memo to File FROM: Maria Guevara, Secretary DATE: April 16, 2000 SUBJECT: CR&R Incorporated All correspondence & relative information will be filed under the following file: 600.30 Exclusive Franchise Agreement 1996 SOLAG DISPOSAL COMPANY Recycling/Composting/Refuse SD 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, 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