HomeMy WebLinkAboutItem 5l. Adopt a Resolution of Intent to Amend the City's Existing Franchise Agreements with San Luis Garbage Company to Implement State Organics Recycling Law Item 5l
Department: Utilities
Cost Center: 6107
For Agenda of: 3/15/2022
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Tina Clark, Solid Waste and Recycling Coordinator
Jordan Lane, Solid Waste and Recycling Coordinator
SUBJECT: ADOPT A RESOLUTION OF INTENT TO AMEND THE CITY’S EXISTING
FRANCHISE AGREEMENTS WITH SAN LUIS GARBAGE COMPANY TO
IMPLEMENT STATE ORGANICS RECYCLING LAW (SENATE BILL 1383)
REQUIREMENTS
RECOMMENDATION
Adopt a Resolution of Intent entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, declaring the City’s intent to adopt an Ordinance amending its
existing franchise agreements with San Luis Garbage Company to implement Senate Bill
1383 requirements and set a public hearing for April 19, 2022” pursuant to the provisions
of Article X of the City Charter.
DISCUSSION
Background
The City of San Luis Obispo (City) has three existing franchise agreements with San Luis
Garbage Company (San Luis Garbage) that include the collection of solid waste,
recyclables, and organic waste. These agreements must be amended to comply with
Senate Bill 1383 (SB 1383), the state’s new and comprehensive organics recycling law,
and to provide consistency with the City’s recently adopted Ordinance No. 1706
addressing waste and recycling matters also required by SB 1383 (Attachment E). Staff
has worked closely with neighboring jurisdictions, the San Luis Obispo County Integrated
Waste Management Authority (IWMA), and the IWMA’s consultant, HF&H Consultants
(HF&H), to allow for a uniform, regional approach to SB 1383 implementation, including
the provisions contained in the proposed franchise amendments .
Per the City Charter1, the City Council must adopt a Resolution of Intent declaring its
intent to grant a franchise, which staff reasonably interprets to include amendments to
existing franchises where additional rights and responsibilities are granted to the
franchisee, hold a noticed public hearing at which the ordinance amending the franchise
agreement is introduced, and conduct a second reading of the ordinance.
1 City Charter Article X, Section 1002
Page 567 of 984
Item 5l
SB 1383 Requirements
SB 1383, California’s most comprehensive change to solid waste regulations in over thirty
years, requires all jurisdictions to implement mandatory organic waste diversion programs
to reduce emissions of methane gas and help curb climate change. While the City of San
Luis Obispo has been offering full organic materials recycling services to its residences
and businesses for the past several years, which is not necessarily the case with other
jurisdictions throughout California, SB 1383 now requires the City to ensure active
participation by all residents and businesses. New City responsibilities now include the
following items:
1. Program expansion to cover all commercial accounts;
2. Deposition of collection materials at permitted diversion facilities;
3. Enhanced residential and commercial public education and enforcement
activities;
4. Increased State reporting requirements;
5. Meeting specific organic materials procurement targets; and
6. Implementation of program enforcement.
As cities across California implement these requirements, the State projects and is
expecting to see a 75% reduction in landfilled organic materials resulting in a significant
reduction in methane emissions thereby improving public health and the environment.
Proposed Franchise Agreement Amendments
Per SB 1383, “a jurisdiction may designate a public or p rivate entity to fulfill its
responsibilities under this chapter. A designation [may] be made through . . . contracts
with haulers.” (Cal. Code of Regulations, Title 14, § 18981.2.) Accordingly, the City must
amend its existing hauler collection franchise agreements to identify which services
required by SB 1383 will be provided by the hauler. Specifically, the proposed franchise
agreement amendments include provisions related to container color and labeling,
expansion of organics collection to the entire commercial sector, increased public
education activities, more detailed reporting, and assistance with organic materials
procurement.
Franchise Agreements Terms and Amendment Process
The Solid Waste Collection Franchise Agreement with San Luis Garbage is in a current
term of 15-years which expires in 2025. The Recycling Collection Franchise Agreement
was entered in 2010, and its 15-year term also expires in 2025. The Green (Organics)
Waste Collection Agreement entered in 2015 has a 20-year term which expires in 2035.
The longer term of this agreement was necessary to allow for the construction and
operation of an anaerobic digester facility by guaranteeing an ongoing feedstock of
organic material.
Page 568 of 984
Item 5l
To align with the City Charter requirements related to granting of a franchise, prior to
adopting the hauler franchise agreement amendments, the City Council must first pass a
resolution declaring its intention to do so, hold a noticed public hearing at which the
ordinance amending the franchise agreements will be introduced , and conduct a second
reading of the ordinance. The resolution must state the character of the franchise
agreement amendments, the terms and conditions upon which they are proposed to be
granted, and the date of the public hearing. The public hearing must be held 20 to 60
days after the passage of the resolution and notice for it must be published in a local
paper. Below is a summary of the proposed schedule:
March 15, 2022 - Adopt Resolution of Intent
Public Hearing notice published in local newspaper 15 to 60 days prior to
scheduled hearing date.
April 19, 2022 - Public Hearing and Ordinance Introduction
May 3, 2022 - Ordinance Adoption
Previous Council or Advisory Body Action
The City Council adopted the related SB 1383 ordinance, Ordinance No.1706, on
December 7, 2021. The Solid Waste and Recycling Collection Franchise Agreements
were last adopted in 2010 and the Green Waste Collection Agreement in 2015.
Policy Context
The City’s Climate Action Plan Pillar 5: Circular Economy lists waste diversion as a means
of achieving Greenhouse Gas Emissions Goals. Amending the City’s existing hauler
franchise agreements to allow for compliance with SB 1383 implementation will help the
City make progress towards our Climate Action Plan goals with regional impact.
Public Engagement
The proposed Resolution of Intention sets a public hearing before the City Council on
April 19, 2022. Notice of the public hearing will be published in a local newspaper in
accordance with Section 1002, Article X of the City’s Charter.
CONCURRENCE
The City’s Finance and Attorney’s Offices concur with the recommendations set forth in
this report. The main principles contained in the franchise agreement amendments were
negotiated with input from the IWMA’s consultant, HF&H, and neighboring jurisdictions
serviced by the franchised hauler to allow for a uniform, regional approach to SB 1383
implementation and compliance.
Page 569 of 984
Item 5l
ENVIRONMENTAL REVIEW
The amendment of the franchise agreements is categorically exempt from the California
Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15308 and
5061(b)(3).
FISCAL IMPACT
Budgeted: No Budget Year: 2021-2022
Funding Identified: No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $ $ $ $
There are no direct fiscal impacts associated with this action. Any costs associated with
the implementation of the SB 1383 program requirements will be included in the upcoming
rate adjustment proposed for Council’s consideration at the April 19, 2022 City Council
Meeting. Per Proposition 218 guidelines, the holder of each trash service account will
receive a mailed notice of the proposed rate adjustment, an explanation of costs, and
public hearing information that will allow them to oppose the increa se. Notices will be
mailed at least 45 days before the public hearing in accordance with Proposition 218
requirements.
ALTERNATIVES
Council could decide to not adopt the Resolution of Intent to amend the City’s existing
franchise collection agreements to add provisions allowing for SB 1383 compliance. This
action is not recommended by staff, as the City will be issued a Notice of Violation by
CalRecycle and risks possible fines and penalties.
Page 570 of 984
Item 5l
ATTACHMENTS
A - Draft Resolution declaring the City’s intent to amend its existing waste hauler franchise
agreements and setting a public hearing
B - Proposed Solid Waste Franchise Agreement with San Luis Garbage (redline)
C - Proposed Recycling Franchise Agreement with San Luis Garbage (redline)
D - Proposed Organics Materials Franchise Agreement with San Luis Garbage (redline)
E - Ordinance No. 1706
Page 571 of 984
Page 572 of 984
R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DECLARING THE CITY’S INTENT TO ADOPT
AN ORDINANCE AMENDING ITS FRANCHISE AGREEMENT WITH SAN
LUIS GARBAGE COMPANY TO IMPLEMENT SB 1383 REQUIREMENTS
AND SET A PUBLIC HEARING FOR APRIL 19, 2022.
WHEREAS, the City of San Luis Obispo (“City”) adopted Ordinance No. 1551 on
August 20, 2010 granting a franchise to San Luis Garbage Company (“San Luis
Garbage”) for a term of 15 years for the collection and disposal of solid waste, recycling,
and green waste within the City (collectively referred to as the “Franchise Agreements”);
and
WHEREAS, public health and safety demand the orderly and periodic collection
and safe disposal and/or processing of solid waste, recyclables, and green waste; and
WHEREAS, it has been determined that an exclusive franchise granted to a private
company is the most effective and efficient way to collect and remove solid waste,
recyclables, and green waste within the City; and
WHEREAS, San Luis Garbage has provided a high level of service and reasonable
rates for waste, recyclables, and green waste collection in the City for the terms of the
Franchise agreements; and
WHEREAS, Senate Bill 1383 Lara, Chapter 395, Statutes of 2016 establishes
methane emissions reduction targets in a statewide effort to reduce emissions of short -
lived climate pollutants by reducing disposal of organic waste in landfills and is California’s
most comprehensive change to solid waste regulations in over thirty years; and
WHEREAS, SB 1383 and its implementing regulations require all jurisdictions to
implement organic waste diversion programs to meet the goals of SB 1383 and allows a
jurisdiction to designate a public or private entity to fulfill, in whole or in part, its
responsibilities under SB 1383 through contracts with its waste haulers; and
WHEREAS, SB 1383 and its implementing regulations require all jurisdictions to
implement organic waste diversion programs to meet the goals of SB 1383 and allows a
jurisdiction to designate a public or private entity to fulfill, in whole or in part, its
responsibilities under SB 1383 through contracts with its waste haulers; and
WHEREAS, the Franchise Agreements allow the flexibility to add or change solid
waste and recycling programs to comply with new laws and regulations; and
WHEREAS, the material terms and conditions of proposed amendments to the
Franchise Agreements necessary to implement SB 1383 are set forth below in
compliance with Section 1002 of the City Charter of the City of San Luis Obispo; and
Page 573 of 984
Resolution No. _____ (2022 Series) Page 2
R ______
WHEREAS, The following sections of the proposed amendments to the Franchise
Agreements, as set forth in Attachments B, C, and D to the City’s Council Agenda Report
dated March 15, 2022, are under final review by the City and San Luis Garbage, but will
be agreed upon and presented to the City Council and public with required notice for the
April 19, 2022 public hearing: Recycling Agreement – Section 5.4 Refusal to Provide
Collection Service and Exhibit B; Organics Materials Agreement – Section 5.5 Refusal to
Provide Collection Services, Section 6.6 Procurement of Recovered Organic Waste
Products, and Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Pursuant to Section 1002 of the City Charter of the City of San Luis
Obispo, the City Council hereby declares its intent to grant an amended franchise to San
Luis Garbage for the collection and disposal of solid waste, recycling, and green wast e in
the City in a manner that complies with SB 1383 and associated regulatory requirements
with the following key terms:
a) San Luis Garbage to provide container color and labeling,
b) San Luis Garbage to provide public education and outreach assistance,
c) San Luis Garbage to provide compliance reporting, and
d) San Luis Garbage to assist the City with organic materials procurement.
SECTION 2. A public hearing will be held on April 19, 2022 beginning at 6:00 p.m.
in the City Council Chambers, at which time any persons having any interest in the
amendments to the Franchise Agreements may appear before the Council to be heard
thereon.
Page 574 of 984
Resolution No. _____ (2022 Series) Page 3
R ______
SECTION 3. The City Clerk shall publish this resolution at least once within fifteen
(15) days of its passage in a newspaper in the City of San Luis Obispo.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2022.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 575 of 984
Page 576 of 984
Franchise Agreement – Solid Waste
1
AMENDED AND RESTATED
FRANCHISE AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO ·
AND
SAN LUIS GARBAGE COMPANY
For Collection, Transportation, and Disposal of Solid
Waste Within the City of San Luis Obispo
This Agreement between the City of San Luis Obispo and San Luis Garbage Company for Collection of Solid
Waste (“Agreement”), is made and entered into as of the ______ day of May, 2022 (the “Effective Date”) in
the State of California by and between the City of San Luis Obispo, a political subdivision of the State of
California (hereafter “City”) and San Luis Garbage Company, a California corporation (hereafter “Franchisee”),
each of which may be referred to individually as a “Party” or together as the “Parties.
RECITALS
This Agreement is made and entered into on the basis of the following facts, understandings, and intentions of
the Parties:
WHEREAS: The Parties entered into a Franchise Agreement for Solid Waste Collection on August 20, 2010 ;
and,
WHEREAS: Section 5.8 of the Franchise Agreement for Solid Waste Collection provides City with the right to
direct Franchisee to modify the scope of one or more types of service described in the Agreement, or to
otherwise modify its performance under the Agreement, subject to providing additional compensation; and,
WHEREAS: The State of California has found and declared that the amount of refuse generated in California,
coupled with diminishing Disposal capacity and potential adverse environmental impacts from landfill Disposal
and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and
implement an aggressive integrated waste management program. The State has, through enactment of AB 939
and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341),
the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB
1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short -Lived Climate
Pollutants Bill of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote
Diversion and to maximize the use of feasible waste reduction, re-use, Recycling, and Composting options in
order to reduce the amount of refuse that must be Disposed; and
WHEREAS: SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste
facilities, and other entities to support achievement of State -wide Organic Waste Disposal reduction targets; and
WHEREAS: SB 1383 requires the City to implement Collection programs for Organic Waste, Recyclable
Materials, and Solid Waste, meet Processing Facility requirements, conduct contamination monitoring, provide
education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other
requirements; and, the City has chosen to delegate some of its responsibilities to the Franchisee, acting as the
City’s designee, through this Agreement; and
WHEREAS: Both Parties have, in good faith, negotiated changes to the Franchise Agreement for Solid Waste
Collection necessary to support the City’s and Franchisee’s compliance with SB 1383, as set forth herein ; and
Deleted: Diversion
Deleted: August
Deleted: April
Deleted: 10
Deleted: Charter Municipal Corporation
Deleted: , (hereinafter the "
Deleted: ")
Deleted: Inc.,
Deleted: "Franchisee");
Deleted: ¶
Deleted: with reference to
Deleted: and circumstances
Deleted: (“Agreement”)
Deleted: <#>The Legislature of the State of California,
by enactment of California Integrated Waste Management
Act of 1989, Division 30 of the California Public
Resources Code, commencing with Section 40000
(CIWMA), declares that it is within the public interest
to authorize and require local agencies to make
adequate provisions for solid waste handling within
their jurisdictions. The law, AB 939 requires a 50
percent reduction in the amount of waste which is
landfilled by 2000; and¶
¶
The City has authority to grant a franchise for
collection, diversion, and disposal of solid waste within
the City of San Luis Obispo pursuant to City Charter
Article X and Chapter 8.04 of the San Luis Obispo
Municipal Code; and¶
¶
The City Council has determined that solid waste,
including discards from residential and non- residential
properties, must be regulated to protect public health,
safety and welfare; to conserve landfill disposal capacity;
and to develop and maintain effective resource
management programs; and¶
¶
The City Council has determined that all occupied
developed properties in the City must participate in the
City's solid waste collection and disposal service; and¶
¶
The City Council has determined that an exclusive
franchise granted to a private company is the most
effective and efficient way to collect and remove solid
waste within the City; and¶
¶
The City Council has determined that the Franchisee can
provide needed solid waste services; and¶
¶
Franchisee is responsible for arranging for solid waste ...
Deleted: ¶
Deleted: ,
Deleted: Agreement
Deleted: .
Page 577 of 984
Franchise Agreement – Solid Waste
2
WHEREAS, this Agreement is intended to restate and supersede all prior Franchise Agreements for Solid Waste
Collection between City and Franchisee; and
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions herein contained,
CITY and FRANCHISEE do hereby agree as follows:
Deleted: for and
Deleted: it is
Deleted: agreed by and between the City and Franchisee
Deleted: EFFECTIVE DATE¶
This Amendment #1 shall become effective on the date
this Amendment #1 is signed by both Parties. ¶
Page 578 of 984
Franchise Agreement – Solid Waste
3
ARTICLE 1.
DEFINITIONS
For purposes of this Agreement, unless a different meaning is clearly required, the following terms shall have
the following meanings:
1.1 “AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011 [Chesbro,
AB 341]), also commonly referred to as “AB 341”, as amended, supplemented, superseded, and replaced
from time to time.
1.2 "AB 939" means the California Integrated Waste Management Act of 1989, (Division 30 of the California
Public Resources Code), also commonly referred to as "AB 939," as amended, supplemented, superseded,
and replaced from time to time.
1.3 “AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying
Division 30 of the California Public Resources Code), also commonly referred to as "AB 1826," as
amended, supplemented, superseded, and replaced from time to time.
1.4 "Affiliate" means all businesses (including corporations, limited and general partnerships, and sole
proprietorships) which are directly or indirectly related to Franchisee by virtue of a common ownership
interest or common management shall be deemed to be "Affiliated with" Franchisee and included within the
term "Affiliate" as used herein. An Affiliate shall include a business in which Franchisee owns a direct or
indirect ownership interest, a business which has a direct or indirect ownership interest in Franchisee and /or
a business which is also owned, controlled or managed by any business or individual which has a direct or
indirect ownership interest in Franchisee. For purposes of determining whether an indirect ownership exists,
the constructive ownership provisions of Section 3l 8(a) of the Internal Revenue Code of 1986, as in effect
the date of this Agreement, Shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted
for "fifty percent (50%)" in Section 3l 8(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section
318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and
constructive or indirect· ownership under Section 3l 8(a), ownership interest of less than ten percent (10%)
shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting
interest or value which the ownership interest represents, whichever is greater.
1.5 "Agreement" means this agreement the between the City and Franchisee for arranging for the collection,
diversion, and disposal of solid waste, and collection and any future amendments hereto.
1.6 “Applicable Law” means all Federal, State, County, and local laws, regulations, rules, orders, judgments,
degrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the
Collection, Transportation, and Processing of Recyclable Materials, Organic Materials, and Solid Waste that
are in force on the Effective Date and as may be enacted, issued or amended during the Term of this
Agreement. Applicable Law includes, but is in no way limited to, AB 939, AB 341, AB 1826, and SB 1383.
1.7 "Arranger" means any person that arranges for the collection, diversion, transfer, burning, disposal or
processing of any solid waste.
1.8 “Bin” means a Container with capacity of approximately one (1) to eight (8) cubic yards, with a hinged lid,
and with wheels (where appropriate), that is serviced by a front end-loading and/or rear-end loading
Collection vehicle, including Bins with Compactors attached to increase the capacity of the Bin.
Deleted: ¶
Deleted: means the California Integrated Waste
Management Act of 1989, as it may be amended from
time to time.
Page 579 of 984
Franchise Agreement – Solid Waste
4
1.9 "Bulky Item(s)” or “Bulky Waste" means discarded, large household appliances, furniture, tires, carpets,
mattresses, and similar large items which require special handling due to their size, but can be collected
without the assistance of special loading equipment (such as forklifts or cranes) and without violating
vehicle load limits. It does not include abandoned automobiles.
1.10 “Business Days” mean days during which the City offices are open to do business with the public.
1.11 “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR
references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g.,
“14 CCR” refers to Title 14 of CCR).
1.12 “CalRecycle” means California's Department of Resources Recycling and Recovery.
1.13 “Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or semi-
automated Collection vehicle. A Cart has capacity of 20, 35, 64 or 96 gallons (or similar volumes).
1.14 "CERCLA" means the Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C Section 9601, et seq.
1.15 "City" means the City of San Luis Obispo, a Charter municipal corporation, and all the territory lying
within the municipal boundaries of the City as presently existing or as such boundaries may be modified
during the term of this Agreement. The City may designate responsibilities to one or more third parties, in
writing, between the City Manager and the designee.
1.16 "Collect" or "Collection" (or any variation thereof) means to take physical possession, Transport, and
remove Discarded Materials and other material at the place of generation in the City.
1.17 “Commencement Date” means the date specified in Article 3 when Collection, Transportation, Processing,
and Disposal services required by this Agreement shall be provided.
1.18 "Commercial” shall mean of, from, or pertaining to non-Residential Premises where business activity is
conducted, including, but not limited to, retail sales, services, wholesale operations, manufacturing, and
industrial operations, but excluding businesses conducted upon Residential property which are permitted
under applicable zoning regulations and are not the primary use of the property.
1.19 “Compactor” means a mechanical apparatus that compresses materials together with the Container that
holds the compressed materials or the Container that holds the compressed materials if it is detached from
the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic yard Bin Compactors
serviced by front-end loader Collection vehicles and ten (10) to fifty (50) cubic yard Drop Box Compactors
serviced by Roll-Off Collection vehicles.
1.20 “Complaint” shall mean each written or orally communicated statement made by any Person, whether to
City or Franchisee, alleging: (1) non-performance, or deficiencies in Franchisee’s performance of its duties
under this Agreement; (2) a violation by Franchisee of this Agreement; (3) an SB 1383 Non-Compliance
Complaint as required under 14 CCR Section 18995.3.
1.21 “Compost” (or any variation thereof) includes a controlled biological decomposition of Organic Materials
yielding a safe and nuisance free Compost product.
Deleted: means the City of San Luis Obispo, a Charter
municipal corporation, and all the territory lying within
the municipal boundaries of the City as presently existing
or as such boundaries may be modified during the term of
this Agreement.
Deleted: means to take physical possession of, transport,
and remove Solid Waste within and from the City.
Deleted: "Commercial and Industrial Property"
means property upon which business activity is conducted,
including, but not limited to, retail sales, services,
wholesale operations, manufacturing and industrial
operations, but excluding businesses conducted upon
residential properties which are permitted under applicable
zoning regulations and are not the primary use of the
property.
Page 580 of 984
Franchise Agreement – Solid Waste
5
1.22 “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for Compostability.
1.23 "Construction and Demolition Debris" or “C&D” means used or discarded construction materials removed
from a Premises during the construction, repair, demolition, or renovation of a structure.
1.24 "Container" means Bin, Carts, Compactors, and franchise Roll-Offs..
1.25 “County” means the County of San Luis Obispo, a political subdivision of the State of California.
1.26 “Customer” means the Person whom Franchisee submits its billing invoice to and collects payment from
for Collection services provided to a Premises. The Customer may be either the Occupant or Owner of the
Premises.
1.27 "Demolition Debris" means used construction materials removed from a premises during the razing or
renovation of a structure.
1.28 "Designated Collection Location" means the place where an authorized recycling agent or a solid waste
collector has contracted with either the City or a private entity to collect solid waste.
1.29 “Designated Disposal Facility” or “Designated Disposal Site” means the landfill or transfer station,
selected by City where Solid Waste Collected under this Agreement is sent for final Disposal. The
Designated Disposal Facility is subject to the City's right of direction. The Designated Disposal Facility is
the Cold Canyon Landfill as the primary, owned and operated by Waste Connections and located at 2268
Carpenter Canyon Rd, San Luis Obispo, CA 93401, and Chicago Grade Landfill, or the Santa Maria
Landfill, as alternatives.
1.30 “Designated Waste” means non-Hazardous Waste which may pose special Disposal problems because of
its potential to contaminate the environment, and which may be Disposed of only in Class II Disposal sites
or Class III Disposal sites pursuant to a variance issued by the California Department of Health Services.
Designated Waste consists of those substances classified as Designated Waste by the State, in California
Code of Regulations Title 23, Section 2522 as may be amended from time to time.
1.31 “Discarded Materials” means Recyclable Materials, Organic Materials, and Solid Waste placed by a
Generator in a receptacle and/or at a location for the purposes of Collection, excluding Excluded Waste.
1.32 “Disposal Facility” means a landfill, or other Facility for ultimate Disposal of Solid Waste.
1.33 "Disposal Site(s)" means any properly licensed and permitted solid waste facility or facilities arranged by
Franchisee after consultation with City for the ultimate disposal of solid waste collected by Franchisee.
1.34 "Designated Processing Facility" means any properly licensed and permitted plant or site used for the
purpose of sorting, cleansing, treating, reconstituting, processing and marketing recyclable materials, which
has been arranged by Franchisee after consultation with City.
1.35 "Dispose” or “Disposal" means the ultimate disposition of Solid Waste or Processing Residue at a Disposal
Facility.
1.36 “Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from Disposal at
Deleted: Debris" means used or discarded construction
materials removed from a premises during the
construction, repair or renovation of a structure.
Deleted: means any bin, vessel, can or receptacle used
for collecting and storing solid waste before removal
Deleted: <#>¶
Deleted: means the ultimate disposition of solid waste
collected by Franchisee at a landfill in full regulatory
compliance or other fully permitted disposal site.
Page 581 of 984
Franchise Agreement – Solid Waste
6
landfill or transformation facilities, (including facilities using incineration, pyrolysis, distillation,
gasification, or biological conversion methods) through source reduction, reuse, Recycling, Composting,
anaerobic digestion, or other method of Processing, subsequent to the provisions of AB 939. Diversion is a
broad concept that is to be inclusive of material handling and Processing changes that may occur over the
Term including, but not limited to, changes in standard industry practice or implementation of innovative
(but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs and/or
are for other reasons deemed desirable by the City.
1.37 “Dwelling Unit” means any individual living unit in a; Single-Family Dwelling Unit or Multi-Family
Dwelling Unit or building, a mobile home, or a motor home located on a permanent site intended for, or
capable of being utilized for, Residential living other than a Hotel or Motel.
1.38 “Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible
Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or
authorizes the recovery of Edible Food that does not meet the food safety requirements of the California
Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this
definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement.
1.39 “Effective Date” means the date on which the latter of the two Parties signs this Agreement, as specified in
Section 3.1 of this Agreement.
1.40 “Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste,
volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste that
Franchisee reasonably believes would, as a result of or upon Disposal, be a violation of local, State or
Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot be
Disposed of in Class III landfills, waste that in Franchisee’s reasonable opinion would present a significant
risk to human health or the environment, cause a nuisance or otherwise create or expose Franchisee or City
to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount
normally found in Residential Solid Waste after implementation of programs for the safe Collection,
Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of
the California Public Resources Code.
1.41 "Facility" means any plant or site utilized by Franchisee (or its Subcontractor) for the purposes of
performing the duties under this Agreement, including, but not limited to, Transfer, Processing, or Disposal
of Discarded Materials Collected in the City.
1.42 “Federal” means belonging to or pertaining to the Federal government of the United States.
1.43 “Food Recovery” means actions to Collect and distribute food for human consumption which otherwise
would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
1.44 “Food Scraps" means those Discarded Materials that will decompose and/or putrefy including: (i) all
kitchen and table Food Waste; (ii) animal or vegetable waste that is generated during or results from the
storage, preparation, cooking or handling of food stuffs; (iii) fruit waste, grain waste, dairy waste, meat, and
fish waste; and, (iv) vegetable trimmings, houseplant trimmings and other Compostable Organic Waste
common to the occupancy of Residential dwellings. Food Scraps are a subset of Food Waste.
1.45 “Food-Soiled Paper” means Compostable paper material that has come in contact with Food Scraps or
Deleted: means any plant or site, owned or leased and
maintained and/or operated or used by Franchisee for
purposes of performing under this Agreement.
Page 582 of 984
Franchise Agreement – Solid Waste
7
liquid, such as, but not limited to, Compostable paper plates, napkins, and pizza boxes. Food -Soiled Paper is
a subset of Food Waste.
1.46 “Food Waste” means Source Separated Food Scraps and Food-Soiled Paper. Food Waste is a subset of
Organic Materials.
"Franchise" means the special right granted by the City of San Luis Obispo to operate a Discarded Materials
Collection company providing such services within the City.
1.47 “Franchise Fee” means the fee paid by Franchisee to the City as described in Article 8.
1.48 "Franchisee" means San Luis Garbage Company, a corporation organized and operating under the laws of
the State of California, and its officers, directors, employees, agents, companies.
1.49 "Full Regulatory Compliance" means compliance with all applicable permits for a facility and with other
applicable regulations such that the Franchisee will at all times maintain the ability to fully comply with its
obligations under this Agreement.
1.50 “Generator” or “Waste Generator” means any Person whose act or process produces Solid Waste as
defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation.
1.51 "Green Waste" means those Discarded Materials that will decompose and/or putrefy, including, but not
limited to, green trimmings, tree trimmings, grass cuttings, dead plants, weeds, prunings, brush, leaves,
branches, brush, dead trees, small pieces of untreated and unpainted wood and other types of Organic Waste
resulting from normal yard and landscaping maintenance that may be specified in City Legislation for
Collection and Processing as Organic Materials under this Agreement. Green Waste does not include items
herein defined as Excluded Waste. Green Waste is a subset of Organic Materials. If Green Waste is more
than six (6) inches in diameter, it shall be Collected in the Bulky Waste Collection program.
1.52 "Gross Revenues" means the sum of the cash receipts derived by Franchisee from customer billings for
Solid Waste Collection services and orange bag sales provided in the City.
1.53 "Hazardous Waste" is as defined in Article 2, Chapter 6.5, Section 25117 of the Health and Safety Code
and Public Resource Code Section 40141. For the purposes of this Agreement, however, hazardous waste
shall not include Household Hazardous Waste which maybe contained in solid waste.
1.54 “Holidays” are defined as New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
Day, and Christmas Day.
1.55 "Household Hazardous Waste" means hazardous waste generated at residential premises.
1.56 "Interruption of Service" means (a) any period during which Franchisee's operations are diminished or
discontinued by circumstances beyond its control, or (b) any period during which operations are diminished
or discontinued as a result of any breach of the Agreement by Franchisee or (c) any period after the City has
terminated the franchise and until the City can reasonably acquire other suitable service and/or enter into a
new franchise agreement.
1.57 “Liquidated Damages” means the amounts due by Franchisee for failure to meet specific quantifiable
standards of performance as described in Article 12.
Deleted: means the special right granted by the City of San
Luis Obispo to operate a solid waste collection company
providing such services within the City.
Deleted: ¶
Deleted: means tree trimmings, grass cuttings, dead
plants, leaves, branches and dead trees ( no more than six
(6) inches in diameter) and similar materials generated at
the premises.
Page 583 of 984
Franchise Agreement – Solid Waste
8
1.58 ''Materials Recovery Facility" means a permitted Facility where Discarded Materials are sorted or
separated for the purposes of Recycling, Processing, or Reuse.
1.59 "Medical Waste" means biohazardous waste, sharp wastes, waste which is generated or produced as a
result of the diagnosis, treatment or immunization of human beings or animals, in research pertaining
thereto, or in the production or testing of biological products, pursuant to California Health and Safety Code,
Section 25023.2.
1.60 "Multi-Family Dwelling Unit" or “Multi-Family” means, notwithstanding any contrary definition in the
City Municipal Code, any Premises, other than a Single Family Dwelling Unit, used for residential purposes,
irrespective of whether residence therein is transient, temporary or permanent, including such Premises when
combined in the same building with Commercial establishments, that receive centralized, shared, Collection
service for all units on the Premises which are billed to one (1) Customer at one (1) address. Customers
residing in Townhouses, mobile homes, condominiums, or other structures with five (5) or more Dwelling
Units who receive centralized, shared, Collection service for all units on the Premises which are billed to one
(1) Customer at one (1) address shall be considered Multi-Family.
1.61 “Occupant” means the Person who occupies a Premises.
1.62 "Occupied" means when a person or persons has taken or is/are holding possession of a premises for
temporary or permanent use. For the purpose of determining whether a premises was occupied during
periods when Solid Waste Collection service was available to such Premises, the Premises shall be presumed
to have been so occupied unless evidence is presented that no gas, electric, telephone or water utility services
were consumed on such premises during such periods or such other evidence is presented to the satisfaction
of the City Manager.
1.63 “Organic Materials” means Green Waste and Food Waste, individually or collectively. No Discarded
Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable
Material and Solid Waste. Organic Materials are a subset of Organic Waste.
1.64 “Organic Waste” means wastes containing material originated from living organisms and their metabolic
waste products including, but not limited to, food, Yard Trimmings, lumber, wood, paper products, printing
and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section
18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section
18982(a)(16.5), respectively.
1.65 "Owner" means the Person or Persons holding legal title to real property and/or any improvements thereon
and shall include the Person(s) listed on the latest equalized assessment roll of the County Assessor.
1.66 “Party” or “Parties” refers to the City and Franchisee, individually or together.
1.67 "Person" means any individual, firm, association, organization, partnership, corporation, consortium,
business trust, joint venture, Commercial entity, governmental entity, public entity, the United States, the
State of California, the County, local agencies, special purpose districts, or any other legal Person.
"Premises" means any land or building where Discarded Materials are generated or accumulated.
1.68 “Process” or “Processing” means to prepare, treat, or convert through some special method.
Deleted: means a permitted Facility where solid wastes
are sorted or separated for the purposes of recycling or
reuse.
Deleted: means any premises, other than a Single Family
Dwelling Unit, used for residential purposes, irrespective
of whether residence therein is transient, temporary or
permanent.
Deleted: means the Person or Persons record title to the
property constituting the premises to which solid waste
collection service is to be provided under this Agreement
or the person holding legal title to a facility used by
Franchisee under this Agreement.
Deleted: means any individual, firm, association,
organization, partnership, corporation, business trust, joint
venture, the United States, the State of California, the
County of San Luis Obispo, local agencies and special
purpose districts.
Deleted: means any land, or building where solid waste
is generated or accumulated.¶
Page 584 of 984
Franchise Agreement – Solid Waste
9
1.69 “Processing Facility” means any plant or site used for the purpose of sorting, cleansing, treating or
reconstituting Recyclable Materials, or Reusable Materials for the purpose of making such material available
for Recycling or reuse or the Facility for the Processing and/or Composting of Organic Materials.
1.70 “Prohibited Container Contaminants” means the following: (i) Discarded Materials placed in the
Recyclable Materials Container that are not identified as acceptable Recyclable Materials for the City’s
Collection program; (ii) Discarded Materials placed in the Organic Materials Container that are not
identified as acceptable Organic Materials for the City’s Collection program; (iii) Discarded Materials
placed in the Solid Waste Container that are acceptable Recyclable Materials and/or Organic Materials to be
placed in the City’s Recyclable Materials or Organic Materials Containers or otherwise managed under the
City’s Collection program; and, (iv) Excluded Waste placed in any Container.
1.71 "Recyclable Materials" means Recyclable Materials as defined under the Franchise agreement between the
Parties for Recyclable Materials Collection, as it may be amended from time to time.
1.72 “Recycle” or “Recycling” means the Process of sorting, cleansing, treating, and reconstituting at a
Recyclable Materials Processing Facility, materials that would otherwise be Disposed of at a landfill for the
purpose of returning such materials to the economy in the form of raw materials for new, reused, or
reconstituted products. Recycling includes Processes deemed to constitute a reduction of landfill Disposal
pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include gasification or
transformation as defined in Public Resources Code Section 40201.
1.73 "Related Party Entity" means any affiliated entity which has financial transactions with the Franchisee.
1.74 “Residential” shall mean of, from, or pertaining to a Single-Family Premises or Multi-Family Premises
including Single-Family homes, apartments, condominiums, Townhouse complexes, mobile home parks,
and cooperative apartments.
1.75 "Residential Property" means property used for residential purposes, irrespective of whether such dwelling
units are rental units or are owner-occupied, and includes both single family and multi-family dwelling units.
1.76 “Residue” means those materials which, after Processing, are Disposed rather than Recycled due to either
the lack of markets for materials or the inability of the Processing Facility to capture and recover the
materials.
1.77 “Reusable Materials” means items that are capable of being used again after minimal Processing. Reusable
Materials may be Collected Source Separated or recovered through a Processing Facility.
1.78 “Roll-Off” means an open-top or lidded Container with a capacity of seven (7) to forty (40) cubic yards that
is serviced by a franchise roll-off Collection vehicle.
1.79 "Rubbish" means all waste wood, wood products, printed materials, paper, paste board, rages, straw, used
and discarded clothing, packaging materials, ashes, floor sweepings, glass and other materials not included
in the definition of Garbage, Hazardous Substance, or Recyclable Materials.
1.80 “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added
Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1
(commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing
Deleted: means residential and non-residential by-
products or discards of economic value which include, but
are not limited to, aluminum, glass, paper, plastic, metal,
and green or woody debris.
Page 585 of 984
Franchise Agreement – Solid Waste
10
methane emissions reduction targets in a statewide effort to reduce emissions of short -lived climate
pollutants as amended, supplemented, superseded, and replaced from time to time. For the purposes of this
Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants (SLCP): Organic Waste
Reductions regulations developed by CalRecycle and adopted on November 3, 2020 that created Chapter 12
of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR.
1.81 “SB 1383 Renewable Natural Gas” or “SB 1383 RNG” means SB 1383 qualified gas derived from
Organic Waste that has been Diverted from a landfill and Processed at an in-vessel digestion Facility that is
permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR
Section 18982(a)(62).
1.82 “Self-Haul” or “Self-Hauler” means a Person who hauls Discarded Materials, recovered material, or any
other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauler also
includes a Person who back-hauls waste, as defined in 14 CCR Section 18982(a)(66)(A).
1.83 “Service Level” refers to the size of a Customer’s Container and the frequency of Collection service.
1.84 "Single Family Dwelling Unit" or “Single-Family” or “SFD” means, notwithstanding any contrary
definition in City Code, any detached or attached house or residence designed or used for occupancy by one
(1) family, provided that Collection service feasibly can be provided to such Premises as an independent
unit, and the Owner or Occupant of such independent unit is billed directly for the Collection service.
Single-Family includes Townhouses that maintain individual collection service regardless of whether each
unit is separately billed for their specific Service Level. Single-Family also includes duplex, tri-plex, or four-
plex Residential structures regardless of whether each unit maintains individual collection service or is
separately billed for their specific Service Level.
1.85 "Solid Waste" means Solid Waste as defined in California Public Resources Code, Division 30, Part 1,
Chapter 2, §40191 and regulations promulgated thereunder. Excluded from the definition of Solid Waste are
Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic Materials, and
radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may include de minimis
volumes or concentrations of waste of a type and amount normally found in Residential Solid Waste after
implementation of programs for the safe Collection, Recycling, treatment, and Disposal of Household
Hazardous Waste in compliance with Section 41500 and 41802 of the California Public Resources Code as
may be amended from time to time. Solid Waste includes salvageable materials only when such materials
are included for Collection in a Solid Waste Container not Source Separated from Solid Waste at the site of
generation.
1.86 “Source Separated” means the segregation, by the Generator, of materials designated for separate
Collection for some form of Recycling, Composting, recovery, or reuse.
1.87 “State” means the State of California.
1.88 “Subcontractor” means a Party who has entered into a contract, express or implied, with the Franchisee for
the performance of an act that is necessary for the Franchisee’s fulfillment of its obligations for providing
service under this Agreement. Vendors providing materials and supplies to Franchisee shall not be
considered Subcontractors.
1.89 "Term" means the term of the Agreement, as provided for in Article 3.
1.90 “Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000) standard
pounds.
Deleted: means each premises used for or designated as a
single family residential dwelling, including each unit of a
duplex or triplex in all cases in which there is separate or
individual solid waste collection service.
Deleted: means all putrescible and non-putrescible
residential refuse, commercial solid waste, institutional
solid waste, garbage, recyclable material, yard waste, and
rubbish, and as otherwise defined in Public Resources
Code 640191. Solid waste which is not required to be
collected includes:¶
Demolition and construction debris which are not offered
by persons performing the work and which may be legally
collected and disposed of by some alternate means;¶
¶
Recyclable materials separated from solid waste by the
waste generator and for which waste generator sells or is
otherwise compensated by a collector in a manner
resulting in a net payment to the Waste generator;¶
¶
Recyclable materials separated from solid waste by the
waste generator and which the waste generator donates to
a charitable organization such as the Boy Scouts;¶
¶
Materials removed by householders or occupants and
transported by them to disposal facilities or recycling
centers;¶
¶
Residential recyclable materials source separated by the
waste generator for the purposes of scheduled collection
with the recyclable materials collection Franchisee.
Deleted: <#>¶
Deleted: ¶
Page 586 of 984
Franchise Agreement – Solid Waste
11
1.91 “Townhouse” means an attached or semi-attached Dwelling Unit within a group of attached or semi-
attached Dwelling Units. A Townhouse shall be considered a Single-Family Dwelling Unit if each unit
maintains individual Collection service subscription. A Townhouse shall be considered a Multi-Family
Dwelling Unit if the Premise receives centralized, shared, Collection service for all units on the Premise.
These shall be the designations regardless of whether the Premises are billed individually or through a
central account (e.g., homeowner association, property manager).
1.92 “Transfer” means the act of transferring the Discarded Materials Collected by Franchisee in its route
vehicles into larger vehicles for Transport to other facilities for the purpose of Processing or Disposing of
such Discarded Materials.
1.93 “Transport” or “Transportation” means the act of transferring the materials Collected by Contractor in its
route vehicles into larger vehicles for Transport to other facilities for the purpose of Recycling or Disposing
of such materials.
1.94 "Waste Generator" or “Generator” means any Person whose act or process produces Solid Waste as
defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to regulation.
1.95 “Working Days” means days on which the Franchisee is required to provide regularly scheduled Collection
services under this Agreement.
ARTICLE 2.
REPRESENTATIONS AND WARRANTIES OF THE FRANCHISEE
2.1 Corporate Status
Franchisee is a corporation duly organized, validly existing and in good standing under the laws
of the State of California. It is qualified to transact business in the State of California and has
the corporate power to own its properties and to carry on its business as now owned and
operated and as required by this Agreement.
2.2 Corporate Authorization
Franchisee has the authority to enter into and perform its obligations under this Agreement.
The Board of Directors of Franchisee (or shareholders if necessary) have taken all actions
required by law, its articles of incorporation, its bylaws or otherwise to authorize the
execution of this Agreement. The persons s igning this Agreement on behalf of Franchisee
have authority to do so.
2.3 Compliance with Laws and Regulations
Franchisee shall comply with all existing and future City, County, other local agencies, State, and
Federal laws and regulations with particular note of SB 1383, Article X of the City Charter and
Chapters 8.04 and 8.05 of the City Municipal Code.
2.4 Financial Representation
Franchisee represents that it has the financial ability to full perform its obligations as set forth in
this Agreement.
2.5 Absence of Litigation
Franchisee represents that there are no suits or threatened suits which would impair the
financial or legal ability of Franchisee to perform its obligations under this Agreement and that
Deleted: means any person as defined by the Public
Resources Code, whose act or process produced solid
waste as defined in the Public Resources Code, or whose
act first causes solid waste to become subject to
regulation.…
Deleted: ¶...
Page 587 of 984
Franchise Agreement – Solid Waste
12
the entering into this Agreement by Franchisee will not in any was constitute a breach of any
other agreement entered into by Franchisee with other parties or constitute a violation of any
law.
Page 588 of 984
Franchise Agreement – Solid Waste
13
ARTICLE 3.
TERM OF AGREEMENT
3.1 Effective Date
The effective date of this Agreement shall be May ____, 2022 ("Effective Date").
3.2 Term
The term of this Agreement shall commence at 12:01 a.m., May _______, 2022 and expire
at midnight, August 20, 2025, subject to extension as provided in paragraph 3.3 (Option to
Extend).
The City Council may elect to renew this franchise at any time during the three year period
prior to the end of the franchise.
3.3
3.4
Option to Extend
The City shall have the sole option to extend this Agreement up to 36 months in periods of at
least twelve (12) months each. If City elects to exercise this option, it shall give written notice
not later than ninety (90) days prior to the initial termination date, or, if one extension has
been exercised, ninety (90) days prior to the extended termination date.
Conditions to Effectiveness of Amendment
The obligation of City to permit this Agreement to become effective and to perform its
undertakings provided for in this Agreement is subject to the satisfaction of each and all of the
conditions set out below, each of which may be waived in whole or in part by the City, in its
sole direction.
(1) Accuracy of Representations. The representations and warranties made by
Franchisee in Article 2 of this Agreement are true and correct on and as of the
effective date.
(2) Effectiveness of City Council Action. The City's Ordinance No. ____, approving this
Agreement, shall have become effective pursuant to California law on or prior to ` the
effective date.
Deleted: August 20, 2010
Deleted: be fifteen years,
Deleted: ing
Deleted: August 20, 2010,
Deleted: expiring
Deleted:
Deleted: 1551
Page 589 of 984
14
ARTICLE 4.
SCOPE OF AGREEMENT
4.1 Grant and Acceptance of Exclusive Franchise for Solid Waste Collection and Disposal
Subject to paragraphs 3.4 (Conditions to Effectiveness of Agreement) and 4.2 (Limitations to
Scope), this Agreement grants the Franchisee the exclusive right to arrange for the Collection,
Processing, Diversion, and Disposal of Solid Waste from Residential and Commercial properties
placed in the Designated Collection Location for regular or scheduled Collection in accordance
with the City’s Municipal Code and this Agreement, except where otherwise precluded by
Applicable Law. Franchisee accepts the grant of the Franchise under the terms and conditions as
set forth in this Agreement. Franchisee agrees to perform and be bound by each of the conditions
proposed in the grant and by procedural ordinance and the requirements of Acceptance on file
with the City Clerk’s office (Article X of the City Charter, Section 1006, Duties of Grantee).
4.2 Limitations to Scope
This Agreement for the Collection, Processing, Diversion, and Disposal of Solid Waste from
Residential and Commercial properties shall be exclusive except as to the following categories of
Discarded Materials, which the Franchisee may, but shall not be obligated to Collect, Transfer,
Process, Divert or Dispose of. Discarded Materials which are not required to be Collected
include:
A. Construction and Demolition Debris which is not offered by Persons performing the
work and which may be legally Collected and Disposed of by some alternate means;
B. Solid Waste Self-Hauled by Generators to Disposal Facilities.;
C. To the extent allowable by Applicable Law, all Recyclable Materials whether
1. Source Separated by the Generator for the purpose of placing for scheduled
Collection with the Recycling Collection franchisee; or
2. Source Separated from Solid Waste by the Generator and which the Generator
either donates to a charitable organization, or sells or is otherwise compensated
by a collector in a manner resulting in a net payment to the Generator; or,
3. Source Separated at any Premises and transported by the Owner or Occupant of
such Premises (or by their full-time employees) to a Processing Facility.
D. All Organic Materials whether
1. Source Separated by the Generator for the purpose of placing for scheduled
Collection with the Organic Materials Collection franchisee; or
2. Source Separated from other Discarded Materials by the Generator and which
the Generator either donates to a charitable organization, or sells or is otherwise
compensated by a collector in a manner resulting in a net payment to the
Generator; or
3. Source Separated at any Premises and transported by the Owner or Occupant of
such Premises (or by their full-time employees) to a Processing Facility; or,
4. Green Waste removed from a Premises by a gardening, landscaping, or tree
trimming company as an incidental part of a total service offered by that
company rather than as a hauling service.
5. Franchisee shall cooperate with and shall not impede, interfere, or attempt to
impede or interfere with the implementation, expansion, or operation of Food
Recovery efforts in the City.
E. Animal waste and remains from slaughterhouse or butcher shops.
F. By-products of sewage treatment, including sludge, sludge ash, grit and screening.
G. Excluded Waste, Hazardous Waste, liquid waste and medical waste.
Deleted: .
Deleted: collection, processing, diversion…ollection,
Processing, Diversion, and disposal…isposal of Solid
Waste from residential…esidential and non-
residential…ommercial properties placed in the
designated collection location…esignated Collection
Location for regular or scheduled collection…ollection
in accordance with the City's…ity’s Municipal Code
and Ordinances, …his Agreement, except where
otherwise preclu9ed…recluded by law…pplicable Law.
Franchisee accepts the grant of the Franchise under the
terms and conditions as set forth in this Agreement.
Franchisee agrees to perform and be bound by each of
the conditions proposed in the grant and by procedural
ordinance and the requirements of Acceptance on file
with the City Clerk's…lerk’s office (Article X of the
Charter, Section 1006, Duties of Grantee)....
Deleted: collection, processing, diversion…ollection,
Processing, Diversion, and disposal…isposal of Solid
Waste from residential…esidential and non-
residential…ommercial properties shall be exclusive
except as to the following categories of solid
waste…iscarded Materials, which the Franchisee may,
but shall not be obligated to collect, transfer, process,
divert…ollect, Transfer, Process, Divert or dispose ...
Deleted: law…pplicable Law, all residential
recyclable materials ...
Deleted: source separated…ource Separated by
the waste generator…enerator for the purpose of
placing for scheduled collection…ollection with
the recycling collection…ecycling Collection
franchisee,…...
Deleted: separated from solid waste by the
waste generator and which the waste generator
Deleted: waste generator
Deleted: separated…ource Separated at any
premises…remises and transported by the
owner…wner or occupant…ccupant of such
premises…remises (or by his or her…heir full-
time employees) to a processing facility....
Deleted: ¶
All green waste material whether¶
.source separated by the waste generator for the purpose of
placing for scheduled collection with the green waste
collection franchisee, or¶
separated from solid waste by the waste generator and
which the waste generator either donates to a charitable
organization, or sells or is otherwise compensated by a
collector in a manner resulting in a net payment to the waste
generator; or¶
separated at any premises and transported by the owner or
occupant of such premises (or by his or her full-time
employees) to a processing facility.¶...
Deleted: ¶
Deleted: ;
Deleted: ¶...
Deleted: ¶...
Page 590 of 984
15
Franchisee acknowledges and agrees that City may permit other Persons besides Franchisee
to Collect any or all types of the Discarded Materials listed in paragraph 4.2 without
seeking or obtaining approval of Franchisee under this Agreement.
This grant to Franchisee of an exclusive Franchise, right and privilege to Collect, Transfer,
Process, Divert, and Dispose of Solid Waste shall be interpreted to be consistent with State
and Federal laws, now and during the Term of this Franchise Agreement· and the scope of
this exclusive Franchise shall be limited by current and developing State and Federal laws
with regard to Solid Waste handling, exclusive Franchise, Solid Waste flow control, and
related doctrines.
In the event that future interpretations of current Applicable Law, enactment or developing
legal trends limit the ability of the City to lawfully provide for the scope of Franchise
services as specifically set forth herein, Franchisee agrees that the scope of the Franchise
will be limited to those services which may be lawfully provided for under this Agreement.
Further, the Franchisee agrees that the City shall not be responsible for any lost profits or
damages claimed by the Franchisee to arise out of further limitations of the scope of the
Agreement set forth herein. It shall be the responsibility of Franchisee to minimize the
financial impact to other services being provided.
4.3 Administration of Franchise
The City Manager shall administer the City's solid waste franchise and the City's Utility Director
shall supervise Franchisee's compliance with the Agreement's terms and conditions.
4.4 Serve Without Interruption _
Franchisee shall continue to collect and dispose of solid waste throughout the term of its franchise
without interruption.
4.5 Permits and Licenses
Franchisee shall procure all permits and licenses, pay all charges and fees, and give all notices as
necessary.
4.6 Preservation of City Property
Franchisee shall pay to the City, on demand, the cost of all repairs to public property made
necessary by any of the operations of Franchisee under this Agreement.
4.7 Franchisee as Arranger
The City and Franchisee mutually agree that the City's granting of this franchise shall not be
construed as the City "arranging for" the collection and disposal of solid waste or recyclables
within the meaning of CERCLA. The parties further mutually agree that the granting of the
Franchise by City shall be construed as an action whereby the Franchisee is granted, and accepts the
rights, responsibilities, benefits and liabilities of collection and disposal of solid waste.
Commencing on the effective date of this Agreement and, to the extent that Franchisee's
performance under this Agreement requires the collection and disposal of solid
waste, and may be construed as "arranging for" collection and disposal of solid waste within the
meaning of CERCLA, such actions shall be the sole responsibility of Franchisee and Franchisee
expressly agrees to be solely responsible for all such actions.
4.8 Use of City Streets
Such grant of franchise shall give Franchisee the right and privilege to operate solid waste
Deleted: city
Deleted: persons
Deleted: collect
Deleted: solid waste
Deleted: collect, transfer, process, divert
Deleted: dispose
Deleted: state
Deleted: federal
Deleted: term
Deleted: ,
Deleted: franchise
Deleted: state
Deleted: federal
Deleted: solid waste
Deleted: franchise, solid waste
Deleted: law
Page 591 of 984
16
collection vehicles and equipment on such streets, public ways, rights-of-way, or easements of the
City.
4.9 Annexation
The Franchisee shall automatically extend all services herein described to any area annexed to
the City, except that the City may permit a firm franchised by the County of San Luis
· Obispo before the annexation to continue serving the area for a period not to exceed five (5) years.
4.10 Ownership of Solid Waste
Once solid waste is placed in containers and properly presented for collection, ownership and the
right to possession shall transfer directly from the waste generator to Franchisee by operation of
this Agreement. Franchisee is hereby granted the right to retain, process, divert, dispose of, and
otherwise use such solid waste, or any part thereof, in any lawful fashion or for any lawful
purposed desired by franchisee.
Subject to this Agreement, Franchisee shall have the right to retain any benefit resulting from its
right to retain, process, divert, dispose of, or use the solid waste which it collects. Arty cost
savings resulting from decreased disposal shall off-set Franchisee's operating expenses in
accordance with the "City of San Luis Obispo Rate Setting Process and Methodology Manual
for Integrated Solid Waste Management Rates".
Solid waste, or any part thereof, which is disposed of at a disposal site or facility (whether landfill,
transformation facility, transfer station, or materials recovery facility shall become the property
of the Owner or operator of the disposal site(s) or facility once deposited there by Franchisee.
The City may obtain ownership or possession of solid waste placed for collection upon written
notice of its intent to do so. However, nothing in this Agreement shall be construed as giving rise
to any inference that the City has such ownership or possession unless such written notice has
been given to Franchisee.
Page 592 of 984
17
ARTICLE 5.
DIRECT SERVICES
5.1 General
The work to be done by the Franchisee pursuant to this Agreement shall include the
furnishing of all labor, supervision, equipment, materials, supplies, and all other items and
tasks necessary to perform the services required.
It is mandatory that the work to be done by Franchisee pursuant to this Agreement shall be
accomplished in a thorough and professional manner so that all occupied developed
properties within the City are provided reliable, courteous, prompt and high-quality services for
collection of solid waste. All collection activities shall be conducted in such a manner that
public and private property will not be damaged. Franchisee shall replace containers and covers
in designated collection locations and shall not place them in the street or on adjoining
property.
The City reserves the right to revise its laws and regulations pertaining to solid waste
collection and disposal in order to protect public health, safety and welfare. The Franchise
Agreement is subject to any such future revisions of the City's laws and regulations, and
Franchisee agrees to comply with any such changes in said laws and regulations as if
incorporated into the Agreement.
5.2 Three- Container Collection System
Franchisee shall provide Solid Waste Collection as part of the City’s three -Container
Collection program for the separate Collection of Source Separated Recyclable Materials,
Source Separated Organic Materials, and Solid Waste, in accordance with the appli cable
Franchise Agreement(s) for each Discarded Material type. Franchisee shall ensure that the
Solid Waste services provided under this Agreement are at all times performed in accordance
with Applicable Law, and operationally align with the Collection of Organic Materials and
Recyclable Materials in order to operate a successful three -Container Collection system.
Franchisee shall provide Containers to Customers for Collection of Solid Waste and shall
provide Solid Waste Collection service in accordance with this Section. Franchisee shall
Transport the Solid Waste to a Designated Disposal Facility. Franchisee may allow carpets
and textiles to be placed in the Solid Waste Containers. Prohibited Container Contaminants
shall not be Collected in Solid Waste C ontainers. The Containers shall comply with the
requirements of Section 6.1.3.
5.3 Collection Service
5.3.1 Single-Family Residential Solid Waste Collection Service
For Single-Family Customers, Franchisee shall Collect Solid Waste placed in Franchisee-
provided Containers at the curbside at a minimum of once a week, Monday through Friday,
except as specified below. The Franchisee-provided Solid Waste Containers shall comply with
the requirements of Section 6.1.3 of this Agreement. Franchisee shall Transport all Solid Waste
Collected to a Designated Disposal Facility. The Franchisee will notify Solid Waste Customers
of Holiday Collection schedules.
Single-Family Customers with a disability shall have the option of placing their Containers near
their dwelling, visible from the curb, and the Franchisee will Collect their Containers at this
Deleted:
Deleted: residential customers
Deleted: collect solid waste
Deleted: The Franchisee will notify solid waste
customers of holiday collection
Deleted: Handicapped residents
Deleted: containers
Deleted: collect
Deleted: containers
Page 593 of 984
18
location and return Container to same location. Franchisee will notify residents annually,
beginning within thirty (30) days of execution of this Agreement, of this Collection option. To
be eligible for this Collection option, residents must present proof of their disability to the
Franchisee.
For Single-Family Customers, Franchisee shall Collect Solid Waste placed in Franchisee-
provided Containers at the curbside at a minimum of once a week, Monday through Friday,
except as specified below. The Franchisee-provided Solid Waste Containers shall comply with
the requirements of Section 6.1.3 of this Agreement. Franchisee shall Transport all Solid Waste
Collected to a Designated Disposal Facility. The Franchisee will notify Solid Waste Customers
of Holiday Collection schedules.
Single-Family Customers with a disability shall have the option of placing their Containers near
their dwelling, visible from the curb, and the Franchisee will Collect their Containers at this
location and return Container to same location. Franchisee will notify residents annually,
beginning within thirty (30) days of execution of this Agreement, of this Collection option.
To be eligible for this Collection option, residents must present proof of their disability to the
Franchisee.
5.3.2 Multi-Family Solid Waste Collection Service
Franchisee shall Collect Solid Waste from all Multi-Family Dwelling Units within the City,
using Franchisee- provided Containers, not less than once per week. The Solid Waste Containers
shall comply with the requirements of Section 6.1.3 of this Agreement. Franchisee shall
Transport all Solid Waste Collected to a Designated Disposal Facility.
The Franchisee and each Customer shall agree on the designated Collection location. Special
consideration shall be given when determining the designated Collection location for Multi-
Family accounts to ensure that the flow of traffic is not impeded and that it does not result in
aesthetic degradation of an area. The designated Collection location, if disputed by Customer
or Franchisee, shall be determined by the City.
5.3.3 Commercial Solid Waste Collection Services
Franchisee shall Collect Solid Waste from all Commercial, industrial and institutional properties
within the City, using Containers of a size and shape acceptable to Franchisee, not less than
once per week. The Solid Waste Containers shall comply with the requirements of Section 6.1.3
of this Agreement. Franchisee shall Transport all Solid Waste Collected to a Designated
Disposal Facility
The Franchisee and each Customer shall agree on the Designated Collection Location. Special
consideration shall be given when determining the Designated Collection Location for
Commercial accounts to ensure that the flow of traffic is not impeded and that it does not result
in aesthetic degradation of an area. The Designated Collection Location, if disputed by
Customer or Franchisee, shall be determined by the City.
Additionally, if in the City’s opinion, the location of an existing Collection location for particular
Multi-Family Dwelling Unit or Commercial, industrial or institutional property is inappropriate, the
City may direct the Customer or Franchisee to relocate the Collection location. If a Customer refuses
to comply with said directive, Franchisee shall decline to Collect Solid Waste from said mis-located
Containers.
5.4 Public Facilities Collection
Deleted: container
Deleted: collection
Deleted: collection
Deleted: physical incapacity
Deleted: <#>Other Solid Waste Collection Service¶
Deleted: family
Deleted: collect
Deleted: dwelling units
Deleted: containers of a size and shape acceptable to
Deleted: customer
Deleted: collection
Deleted: collection
Deleted: multi- family
Deleted: collection
Deleted: customer
Deleted: , Industrial and Institutional
Deleted:
Deleted: collect
Deleted: commercial
Deleted: containers
Deleted: To the extent allowable by law,
Franchisee shall collect from all occupied
commercial, industrial and institutional properties in
the City recyclable materials, arranged for Collection
by the Franchisee
Deleted: Waste Generator, that have been placed in
recycling containers provided by the Franchisee
and placed in the designated collection location for
regular collection by Franchisee. To the extent
allowable by law, nothing in
Deleted: shall preclude any organization from
collecting recyclable materials from commercial ...
Deleted: customer
Deleted: designated collection location.
Deleted: designated collection location for ...
Deleted: designated collection location
Deleted: customer
Deleted: City's
Deleted: collection
Deleted: multi-family dwelling unit
Deleted: commercial
Deleted: customer
Deleted: collection
Deleted: customer
Deleted: collect solid waste
Deleted: containers
Page 594 of 984
19
When requested by the City, the Franchisee shall Collect and Dispose of all Solid Waste generated
at Premises owned and/or operated by the City. Franchisee shall Collect Solid Waste from City
Containers and Collection locations, not less than once per week, Monday through Friday or on
Saturdays following non-working Holidays. Collections shall be scheduled at a time mutually
agreed upon by Franchisee and the Waste Generator.
Franchisee shall provide, at City’s direction, additional Solid Waste Collection and Disposal and
consulting services including:
A. Collection of Solid Waste from all sidewalk litter containers;
B. Collection of Solid Waste from City-sponsored special events as specified by the City;
C. Collection of Solid Waste from containers in City parks as mutually agreed upon by the
Franchisee and the City;
D. Review of plans for land use or property developments with regard to Solid Waste service
issues; and
E. Residual Solid Waste remaining from temporary household hazardous waste Collection
events.”
5.5 Missed Pickups
Upon notification, Franchisee shall collect any missed pickup which had been properly and
timely placed for collection within 24 hours of said notice.
5.6 Bulky Waste Collection
Franchisee shall make special Bulky Waste Collection arrangements with Generators within seven (7)
days after Generators’ written or verbal request for the Collection of Bulky Waste for a fee established
by the City and updated by resolution when the City adjusts rates. Any single Bulky Waste item is not
to exceed 200 pounds.
Franchisee shall Collect Green Waste separately from other Bulky Items placed for Collection and
shall handle such acceptable material as Organic Waste in accordance with SB 1383 regulations and
the Franchise Agreement between the City and Franchisee for Organic Materials Collection, as
amended.
5.7 Semi-Annual Clean-up Weeks
At least twice per year throughout the Term of this Agreement, Franchisee shall provide, in addition
to regularly scheduled service, two clean-up events pursuant to guidelines established by the
Franchisee and approved by the City, for Solid Waste placed at the curb by Single-Family Dwelling
Units and at pre-arranged locations for Multi-Family Residential properties in addition to each
Customer’s normal Collection service. The dates for each event shall be proposed by Franchisee and
approved by the City prior to September 1st of each year.
Franchisee shall Collect Green Waste separately from other materials and shall Process such material
as Organic Waste in accordance with SB 1383 regulations and the Franchise Agreement between the
City and Franchisee for Organic Materials Collection, as amended.
Franchisee shall record by class and weight (in Tons) the Solid Waste, Bulky Items, white goods,
etc., Collected during the clean-up events. Franchisee shall record the kinds and weights (in Tons) of
Solid Waste Diverted during these clean-ups from the landfill through Recycling, Composting, reuse,
or other means of Diversion.
Deleted: collect
Deleted: dispose
Deleted: premises
Deleted: make collections
Deleted: solid waste containers
Deleted: holidays
Deleted: City's
Deleted: solid waste collection
Deleted: disposal
Deleted: solid waste
Deleted: solid waste
Deleted: solid waste
Deleted: solid waste
Deleted: solid waste
Deleted: collection
Deleted: .
Deleted: collection
Deleted: Waste
Deleted: waste generators'
Deleted: collection
Deleted: bulky waste fora
Deleted: term
Deleted: solid waste
Deleted: single family dwelling units
Deleted:
Deleted: multi-family residential
Deleted: customer's
Deleted: collection
Deleted: tons
Deleted: solid waste
Deleted: collected
Deleted: tons
Deleted: solid waste diverted
Deleted: recycling
Deleted: transformation
Deleted: diversion
Page 595 of 984
20
5.8 City Right to Request Changes
5.8.1 General
City may request Franchisee to perform additional services (including new diversion programs,
billing services, etc.) or modify the manner in which it performs existing services. Pilot programs and
innovative services which may entail new Collection methods, different kinds of services and/or
new requirements for Waste Generators are included among the kinds of changes which City
may request. Franchisee shall present, within 30 days of a request to do so by City, a proposal to
provide additional or expanded diversion services
. pursuant to the terms of Section 5.8.2. Franchisee shall be entitled to an adjustment in its
compensation in accordance with Section 9.4, for providing such additional or modified
services.
5.9 New Programs
Franchisee shall present, within thirty (30) days of a request to do so by City, a proposal to provide
additional or expanded services. The proposal shall contain a complete description of the f ollowing:
A. Collection methodology to be employed (equipment, workforce , etc.)
B. Equipment to be utilized (vehicle number, types, capacity, age, etc.).
C. Labor requirements (number of employees by classification).
D. Type of Containers to be utilized.
E. Provision for program publicity/education/marketing.
F. A projection of the financial results of the program’s operations for the remaining Term of
the Agreement in a balance sheet and operating statement format including documentation of
the key assumptions underlying the projections and the support for those assumptions.
G. Facility to be utilized.
5.10 City's Right to Acquire Services
Franchisee acknowledges and agrees that City may permit other Persons besides Franchisee to
provide additional services not otherwise contemplated under Section 5.8 (City's Right to
Request Changes). If pursuant to Section 5.8.2 (New Programs), Franchisee and City cannot
agree on terms and conditions of such services in ninety (90) days from the date when City first
requests a proposal from franchisee to perform .such services, Franchisee acknowledges and
agrees that City may permit Persons other than Franchisee to provide such services.
5.11 Report of Accumulation of Solid Waste; Unauthorized Dumping
Franchisee shall direct its drivers to note the addresses of any premises at which they observe
that solid waste is accumulating and is not being delivered for collection; and the address, or
other location description, at which solid waste has been dumped in an unauthorized manner.
Franchisee shall report the address or description to the City within twenty-four (24) hours of
such observation.
5.12 City Directed Removal of Solid Waste
Franchisee shall arrange for the removal of all accumulated solid waste and recyclables on
any developed or vacant property in the City as directed by the City Utilities Director. The
Franchisee shall make a good faith effort to recover the cost of disposal from the waste
Deleted: manpower
Deleted: 0f
Deleted: program's
Deleted: Materials processing facility
Page 596 of 984
21
generator, and the costs of this effort, as well as the cost of disposal shall be chargeable to
the waste generator. The Franchisee shall be entitled to include the costs incurred and not
collected under this Section as an operating expense for purposes of rate setting.
5.13 Processing of Solid Waste
The City reserves the right, prior to Disposal, to direct portions of the waste stream Collected under
this Agreement, to a designated Processing Facility for separation and Processing of any Recyclable
Materials, Reusable Materials, or Organic Waste contained therein. City shall provide Franchisee with
reasonable prior written notice concerning any change of service location.
5.14 Designated Disposal Facility
A. General. Franchisee shall Transport all Solid Waste Collected within the City and not separated for
Recycling to a Designated Disposal Facility .for Disposal in accordance with Applicable Law and
this Agreement.
B. Compliance with Regulatory Requirements and Applicable Law. The Franchisee is required to
notify the City if one of Designated Disposal Facilities fails to remain in full regulatory compliance.
Upon request, Franchisee shall provide copies of Facility permits, approvals, and/or notices of
violations (obtained from the Designated Disposal Facility operator if necessary) to the City.
C. Capacity. Franchisee shall secure within 90 days of the effective date of this Agreement, sufficient
Disposal Facility capacity commitment including landfill Disposal site capacity commitment, to
adequately serve the reasonably anticipated Solid Waste Disposal needs of the City and its Customers
during the Term of this Agreement, including any extensions provided for herein. City reserves the
right to review said Disposal capacity commitments. Prior to entering into any capacity commitment,
Franchisee shall give prior written notice to the City concerning negotiations.
D. Alternative Facility(ies). If Franchisee receives notice from the landfill operator or otherwise
expects, during the Term of this Agreement, to be prevented from delivering Solid Waste to a
Designated Disposal Facility, Franchisee shall immediately notify in writing the City’s Utilities
Director, stating the reason(s) Franchisee is prevented, or expects to be prevented, from Disposing of
Solid Waste in a Designated Disposal Facility. Franchisee shall in good faith expeditiously identify
and evaluate alternative Disposal Facilities. An alternative Disposal Facility(ies) shall be arranged
for and secured by Franchisee, after consultation with the City’s Utilities Director. Franchisee shall
provide City with adequate written notice prior to contracting for any alternate Disposal Facility.
In addition, the City reserves the right to direct the Solid Waste stream to any Disposal Facility or
site. Absent such direction by the City, nothing contained herein shall be construed to mean that the
City has arranged for site selection or waste Disposal.
Section 12.5, “Excuse From Performance”, does not relieve Franchisee from the good faith
obligation to find and secure alternate Disposal Facilities. Absent a Section 12.5 event, Franchisee
shall be responsible for any increased costs, including Transportation, with respect to the alternate
Disposal Facility.
5.15 Hazardous Waste Handling and Disposal
If the Franchisee determine that solid waste placed in any container for collection is a Hazardous
Waste or Medical Waste, or other solid waste that may not be legally disposed of at the
designated disposal site or presents a hazard to the Franchisee's employees, the Franchisee shall
have the right to refuse to accept such solid waste. The Franchisee will contact the waste
generator and request that the waste generator arrange for proper disposal.
Deleted: disposal…isposal, to direct portions of the
waste stream collected ...
Deleted: franchise…greement, to a designated
processing facility…rocessing Facility for separation
recycling…rocessing of any recyclable materials ...
Deleted: arrange with the operator of a disposal site
situated outside the city limits for disposal of solid
waste collected …ransport all Solid Waste Collected
within the City. All solid waste collected within the
City …and not separated for recycling shall be
delivered…ecycling to the designated disposal site And
disposed ...
Deleted: according to the regulations of the
designated disposal site
Deleted: disposal site…isposal Facility capacity
commitment including landfill disposal…isposal site
capacity commitment, to adequately serve the reasonably
anticipated solid waste disposal…olid Waste Disposal
needs of the City and its customers…ustomers during
the term…erm of this Agreement, including any
extensions provided for herein. City reserves the right to
review said disposal…isposal capacity commitments.
Prior to entering into any capacity commitment,
Franchisee shall give prior written notice to the City
concerning negotiations. The disposal site capacity
commitment contract for the designated disposal
facility shall be incorporated into this Agreement as
Appendix I....
Deleted: …eceives …otice from the …andfill
operator or otherwise expects, …uring the term…erm of
of this Agreement, to be prevented from delivering solid
waste…olid Waste to the designated disposal site…
Designated Disposal Facility, Franchisee shall
immediately …otify in writing the City's …ity’s
Utilities Director, …tating the reason(s) …ranchisee is
prevented, …r expects …o be prevented, …rom
disposing…isposing of solid waste…olid Waste in the
designated disposal facility.… Designated Disposal
Facility. Franchisee shall in good faith expeditiously
identify and evaluate alternative disposal sites.…isposal
Facilities. An alternative designated disposal site or sites...
Deleted: City's…ity’s Utilities Director. Franchisee
shall provide City with adequate written notice prior to
contracting for any alternate disposal site. ...
Deleted: waste stream to other disposal site selected by
Franchisee.¶
¶
City in addition, reserves the right to direct the
waste…olid Waste stream to any disposal
facility…isposal Facility or site. Absent such direction by
the City, nothing contained herein shall be construed to
mean that the City has arranged for site selection or waste
disposal ...
Deleted: "
Deleted: ",…, does not relieve Franchisee from the good
faith obligation to find and secure alternate disposal
sites.…isposal Facilities. Absent a Section 12.5 event,
Franchisee shall be responsible for any increased costs,
including transportation…ransportation, with respect to
alternate disposal site,...
Page 597 of 984
22
If the Waste Generator cannot be reached immediately, the Franchisee shall, prior to leaving the
premises, leave a tag at least two inches by six inches indicating the reason for refusing to collect the
solid waste, in which case, a copy of the tag, along with the address of the premises (and the
name of the waste generator, if known) shall be delivered to the City on the following business
day.
If the Hazardous waste or medical waste or other unauthorized waste is collected before its
presence is detected by Franchisee, and if the waste generator cannot be identified or fails to remove
the solid waste after being requested to do so, the Franchisee shall arrange for its legal disposal.
The Franchisee shall make a good faith effort to recover the cost of disposal of such waste from
the waste generator, and the costs of this effort, as well as the cost of disposal shall be
chargeable to the waste generator. Provided the failure to detect the hazardous waste, medical
wastes or other unauthorized wastes prior to collection and/or their delivery to the designated
disposal site is not due to the negligence of the Franchisee or its employees or due to failure of
the Franchisee to have an adequate in place inspection program, the Franchisee shall be entitled
to include the costs incurred under this paragraph as an operating expense for purposes of rate
setting.
Page 598 of 984
23
ARTICLE 6.
COLLECTION SERVICE STANDARDS
6.1 Operations
6.1.1 Schedules
To preserve peace and quiet, solid waste shall not be collected within two-hundred (200) feet
of residential premises between 6:30 p.m. and 6:30 a.m. on any day, Monday through Friday.
When the regularly scheduled collection day falls on a holiday, collection shall take place on
the following regularly scheduled collection day. Franchisee will promptly resolve any
complaints of noise to the satisfaction of the City Manager or the City Manager's designee.
6.1.2 Vehicles
A. General. Franchisee shall keep a fleet of collection trucks sufficient in number and
capacity to efficiently perform the work required in the Agreement in strict
accordance with the terms of this Agreement. Franchisee shall provide a detailed
description concerning the number and type of vehicles necessary for performance.
Franchisee shall have available on collection days sufficient back-up vehicles for
each type of collection vehicle (i.e., rear loader, front loader, and roll-off) used to
respond to complaints and emergencies. The fleet shall be maintained according to
the requirements of Municipal Code 8.04.030.
B. Specifications. All vehicles used by Franchisee in providing solid waste collection
services shall comply with all federal, state, and local requirements for such vehicles
as they now exist or may be amended in the future; and be registered with the
California Department of Motor Vehicles. All such vehicles shall have water-tight
bodies designed to prevent leakage, spillage, or overflow. All such vehicles shall
comply with U.S. Environmental Protection Agency noise emission regulations and
other applicable noise control regulations.
C. Condition.
1) Franchisee shall maintain all of its properties, facilities, and equipment used
in providing service under this Agreement in a safe, neat, clean and operable
condition at all times.
2) Franchisee shall inspect each vehicle daily to ensure that all equipment is
operating properly. Vehicles which are not operating properly and represent a
safety hazard shall be taken out of service until they are repaired and do
operate properly and safely. Franchisee shall perform all scheduled
maintenance functions in accordance with the manufacturer's specifications
and schedule. Franchisee shall keep accurate records of all vehicle
maintenance, recorded according to date and mileage, and shall make such
records available to City upon request.
D. Franchisee shall repair, or arrange for the repair of, all of its vehicles and equipment
for which repairs are needed because of accident, breakdown or any other cause so
as to maintain all equipment in a safe and operable condition. Franchisee shall
maintain accurate records of repair, which shall include the date/mileage, nature of
repair and the signature of a maintenance supervisor that the repair has been properly
performed.
Page 599 of 984
24
E. Vehicle Identification. Each truck shall display in a prominent place a sign as
required in Municipal Code 8.04.090.
F. Operation. Vehicles shall be operated in compliance with the California Vehicle
Code, and all applicable safety and local ordinances. Franchisee shall not load
vehicles in excess of the manufacturer's recommendations or limitations imposed by
state or local vehicle weight restrictions.
G. Renewable Natural Gas (RNG) Vehicles Under this Agreement Franchisee shall
make a best effort for all Collection Vehicles to be powered by SB 1383 RNG
generated by a local facility or powered by SB 1383 RNG that is purchased through a
wheeling agreement with a party(ies), provided that the wheeling agreement is for
purchase of gas derived from Organic Waste that has been Diverted from a Landfill
and Processed at an in-vessel digestion Facility that is permitted or otherwise
authorized by Title 14 of CCR to recover Organic Waste and meets the requirements
of 14 CCR Section 18993.1(h). Upon the City’s request, Franchisee shall obtain and
provide the City with a written certification by an authorized representative of the
publicly-owned treatment works or the wheeling agreement under which Franchisee
purchased SB 1383 RNG certifying that the in-vessel digestion Facility produces the
SB 1383 RNG consistent with the requirements of 14 CCR Section 18993.1(h).
Franchisee shall maintain records of the amount of SB 1383 RNG purchased and shall
report this information in accordance with Section 7. Franchisee shall agree to the City
the right to report this SB 1383 RNG usage toward the City’s fulfilment of its annual
recovered Organic Waste product procurement target in accordance with 14 CCR
Section 18993.1.
6.1.3 Containers
A. General.
1. Franchisee shall supply all Customers with Solid Waste Containers for Collection of Solid
Waste, in accordance with this Section. Franchisee shall use the Franchisee -provided
Collection Containers that are currently located at Customers’ Premises, if applicable. If
Customer is currently utilizing Collection Containers that were not provided by the Franchisee,
Franchisee shall provide Containers from current inventory.
2. Franchisee shall provide Customers (including Single-Family, Multi-Family, Commercial, and
City facility Customers) with new Collection Containers as requested by the Customer to meet
its desired Service Level within five (5) Working Days of Franchisee’s first receipt of the
Customer request.
3. On and after the Effective Date, any new Containers provided by the Franchisee shall comply
with the Container standards set forth in this Section. All Containers shall display the
Franchisee’s name, logo, telephone number, website, capacity (yards or gallons), and some
identifying inventory or serial number.
4. If an existing Container breaks or is otherwise rendered non-functional on or after January 1,
2022, the Franchisee shall replace the non-functional Container with a Container that complies
with the color requirements of this Section. Notwithstanding this Section, the Franchisee is not
required to replace functional Containers, including Containers purchased prior to January 1,
Deleted: Residential
Deleted: . When
Page 600 of 984
25
2022, that do not comply with the color requirements of this Section prior to the end of the
useful life of those Containers, or prior to January 1, 2036, whichever comes first.
B. Container Types and Sizes
1. Single-Family Solid Waste Containers. Franchisee shall supply each Single-Family
Dwelling Unit with a Solid Waste Container in a size consistent with the City-approved
Solid Waste Collection program.
2. Multi-Family Solid Waste Containers. Franchisee shall supply each Multi-Family complex
with the appropriate number and type of Container to adequately service the needs of the
complex. Franchisee agrees to provide additional appropriate Containers, as required.
3. Commercial Solid Waste Containers. Franchisee shall furnish to all Commercial Customers
appropriate Containers to Collect Solid Waste at Commercial Premises. Containers with a
capacity of one (1) cubic yard or more shall be available in standard sizes. The kind, size, and
number of Containers furnished to particular Customers shall be as determined mutually by the
Customer and Franchisee. Containers which are front loading Bins shall have lids.
4. Other Solid Waste Containers. Franchisee shall not be obligated to provide Customers with
Compactor units but will be obligated to charge the rates set by the City for the Collection of
compacted Solid Waste.
C. Container Colors. Solid Waste Cart lids shall be black/grey. Solid Waste Bin, Compactor, and
franchise Roll-Off lids or bodies shall be black/grey. No later than December 31, 2035, Contractor
shall provide all Customers with Collection Containers that comply with the Container color
requirements specified in this Section or as otherwise specified in 14 CCR Section 18982; 14 CCR,
Division 7, Chapter 12, Article 3; or other Applicable Law.
D. Container Labels
1. Labels on Existing Containers or Lids. Franchisee shall ensure a label on the body or lid of
each Container has been provided to a Customer that includes language or graphic images, or
both, that indicate the primary materials accepted and the primary materials prohibited in that
Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for
each Container.
2. Imprinted or In-Mold Labels for New Containers or New Lids. On or before January 1,
2022, Franchisee shall imprint new Container bodies or lids with text or graphic images that
indicate the primary materials accepted and the primary materials prohibited in that Container.
Labels shall clearly indicate items that are Prohibited Container Contaminants for each
Container. Prior to ordering any Containers or lids with in-mold labels, Franchisee shall submit
a sample of its proposed label, proposed location(s) for placement of labels on each type of
Container, and its labeling plan to the City for approval.
E. All Containers with a capacity of one cubic yard or more shall meet applicable regulations for Solid
Waste Bin safety and shall be maintained in good repair with neatly and uniformly painted surfaces
and shall prominently display the name and telephone number of Franchisee. Additionally, one cubic
yard or more Bins in public right-a-ways shall have reflectorized markings. Bins shall be clearly
marked and identified as belonging to Franchisee.
Deleted:
Deleted: waste wheeler
Deleted:
Deleted: collection
Deleted: multi-family
Deleted: container
Deleted: per the solid waste handling location.
Deleted: City and Franchisee acknowledge that from
time to time, a customer may damage or destroy a
Container. City and Franchisee also acknowledge that
from time to time Containers may be stolen from the
curb or damaged due to normal use. When¶
notified of such occurrence, Franchisee shall replace
the Container, at no charge to the customer pursuant
to the guidelines established by the Franchisee and
approved by the City. The container replacement
guidelines are presented in Appendix II of this
Agreement¶
Non-Residential and Multi-Family Dwelling Unit
Deleted: customers
Deleted: containers to collect solid waste at multi-
family dwelling units, commercial and industrial
properties, and other premises upon customer request.
Deleted: containers
Deleted: customers
Deleted: customer
Deleted: bins
Deleted:
Deleted: containers
Deleted: bin
Deleted: bins
Deleted: Franchisee shall not be obligated to provide
customers with compactor units, but will be obligated to
charge the rates set by the City for the collection of
compacted solid waste.
Deleted: Each customer shall be responsible for excess
damage to any such containers not caused by
Franchisee.…
Page 601 of 984
26
F. City and Franchisee acknowledge that from time to time, a Customer may damage or destroy a
Container. City and Franchisee also acknowledge that from time to time Containers may be stolen
from the curb or damaged due to normal use. When notified of such occurrence, Franchisee shall
replace the Container, at no charge to the Customer or City pursuant to the guidelines established by
the Franchisee and approved by the City. Each Customer shall be responsible for excess damage to
any such Containers not caused by Franchisee.
6.1.4 Personnel
A. General. Franchisee shall furnish such qualified drivers, mechanical, supervisory,
clerical, and other personnel as may be necessary to provide services required by this
Agreement in a safe and efficient manner.
If Franchisee needs to provide additional personnel, Franchisee shall be responsible for
all costs related to provision of such additional personnel. Franchisee may only reduce the
number and type of personnel required with prior approval of City. If quality of service
declines following such reduction in type and number of personnel, the City at its
discretion, may require the Franchisee to increase the number and type of personnel
utilized, at no additional cost to the City.
B. Identification. Franchisee shall ensure that while on duty each collection worker wears
a clean uniform with conspicuous insignia displaying Franchisees company name and
the worker's name or identification number.
C. Fees & Gratuities. Franchisee 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 any services performed under this Agreement,
except as provided in Article 8 of this Agreement.
D. Training. All drivers shall be trained and qualified in the operation of vehicles they operate
and must possess a valid license of the appropriate class, issued by the California
Department of Motor Vehicles.
Franchisee shall provide adequate operations, health and safety training, and Hazardous
Waste identification and handling training for all of its employees who use or operate
equipment or who are otherwise directly involved in collection or other related
operations.
E. Customer Courtesy. Franchisee shall train its employees in customer courtesy; shall
prohibit the use of loud or profane language; and shall instruct collection crews to perform
the work quietly. Franchisee shall use its best efforts to ensure that all employees
present a neat appearance and conduct themselves in a courteous manner. If any
employee is found to be discourteous or not to be performing services in the manner
required by this Agreement, Franchisee shall take all necessary corrective measures. If City
has notified Franchisee of a complaint related to a discourteous or improper behavior,
Franchisee will reassign the employee to duties not entailing contact with the public
while Franchisee is pursuing its investigation and corrective action process.
6.2 Service Complaints
Franchisee shall maintain and provide copies of all written service complaints and summaries of
Page 602 of 984
27
all oral service complaints and the Franchisee's response to those complaints for the term of one
year and shall allow City officials to inspect these records during the required office staffing hours
after the City has requested such inspection with reasonable notice.
If a disagreement arises between Franchisee and a customer, the customer may request an
administrative hearing. The City's Utilities Director shall conduct an investigation and give notice
of that decision. The customer may elect to appeal this decision to the City Integrated Waste
Management Appeals Committee made up of representa tives from the Utilities Department, the
Finance Department and the Administrative Office.
6.3 Periodic Performance Audit
The City shall have the right to periodically, not less than annually, request a performance audit or
billing audit be completed by the Franchisee, the City or an independent third party; The City
shall be entitled to select the type of consultant that it deems qualified to conduct said audits. The
cost of such audits will be an allowable cost under the rate setting methodology unless there
are findings pursuant to Section 12.8.
6.4 Performance Hearing
A. The City maintains the right to hold a public hearing at any time, not more than once each year, at
which the Franchisee shall be present and shall participate, to review Franchisees services and
performance. The purpose of the hearing shall be, in part, to provide for a discussion and review of
technological, economic and regulatory changes and quality of service provided to date. The goal of
the performance hearing is to strive for an ever- advancing Solid Waste management system, and to
ensure services are provided with adequate quality, efficiency and economy.
Sixty (60) days after receiving notice from City of a performance review hearing, Franchisee shall,
at a minimum, submit a report to City indicating the following:
1. Changes recommended and/or new services to improve City’s ability to meet the goals of
AB 939, SB 1383, and other Applicable Law, and to contain costs and minimize impacts
on rates; and
2. Any specific plans for provision of changed or new services by Franchisee.
B. The reports required by this Agreement regarding Customer Complaints shall be used as one basis for
review. Franchisee may submit other relevant performance information: and reports for
consideration. City may request Franchisee submit specific information for the hearing. In addition,
any Customer may submit comments or Complaints during or before the hearing, either orally or in
writing, and these shall be considered. C. Topics for discussion and review at the
performance review hearing shall include, but shall not be limited to, quality and adequacy of services
provided, feasibility of providing new services, application of new technologies, Customer
Complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or
exceeding SB 1383 and AB 939’s goals, regulatory constraints, and Franchisee performance. City
and Franchisee may each select additional topics for discussion at any performance review hearing.
D. Not later than sixty (60) days after the conclusion of each performance review hearing, City may
issue a report. As a result of the review, City may request Franchisee to provide expanded or new
services. Franchisee shall present, within 30 days of a request to do so by City, a proposal to provide
additional or expanded Diversion services. The proposal shall contain a complete description of
the following:
1. Collection methodology to be employed (equipment, workforce, etc.)
Deleted: solid waste
Deleted: ¶
Deleted: City's
Deleted: customer complaints
Deleted: customer
Deleted: complaints
Deleted: ,
Deleted: ¶
Deleted:
Deleted: customer complaints
Deleted: 939's
Formatted: Indent: Left: 0.44", Hanging: 0.31", Adjust
space between Latin and Asian text, Adjust space
between Asian text and numbers, Tab stops: 0.75", Left
+ Not at 1.13"
Deleted: manpower
Page 603 of 984
28
2. Equipment to be utilized (vehicle number, types, capacity, age, etc.).
3. Labor requirements (number of employees by classification). ·
4. Type of Containers to be utilized.
5. Provision for program publicity/education/marketing.
6. A projection of the financial results of the program’s operations for the remaining Term of
the Agreement in a balance sheet and operating statement format including documentation
of the key assumptions underlying the projections and the support for those assumptions.
7. Facility to be utilized.”
Deleted: program's
Deleted: Materials processing facility
Deleted: .
Page 604 of 984
29
ARTICLE 7.
OTHER SERVICES: BILLING, REPORTING, RECORD-KEEPING
AND PUBLIC EDUCATION
7.1 Billing
By resolution of the City Council, the City shall establish rates for the services provided by the
Franchisee. Franchisee shall bill and collect these rates. Franchisee billing format and billing
frequency shall be subject to approval of the City and City shall have the right to revise the
billing format to itemize certain charges.
The City may also direct Franchisee to insert mailers relating to Franchisee provided service with
the billings at no additional cost to the City. The mailers must fit in standard envelopes and not
increase the required postage. The City will provide not less than thirty (30) days notice to
Franchisee prior to the mailing date of any proposed mailing to permit Franchisee to make
appropriate arrangements for inclusion of City materials.
Franchisee shall maintain copies of said billings and receipts, each in chronological order, for a
period of three (3) years after the date of service for inspection by the City, or for such longer
term as the City directs. Franchisee may, at its option, maintain those records in computer form, on
microfiche, or in any other manner, provided that the records cannot be altered, and can be
preserved and retrieved for inspection and verification in a timely manner. Franchisee shall, in
addition, provide an adequate backup system for billing records, regardless of the form in which
the records are maintained. Any such backup system shall be subject to approval by the City.
7.2 Owner Responsible for Payment
The owner of occupied developed property shall be responsible and liable for paying the solid
waste collection and disposal fees for that property.
7.3 Collection of Bills from Delinquent Solid Waste Customers.
Bills shall be considered delinquent if not paid within 30 days of the date due. Once each year,
prior to a date established by the City, Franchisee may take actions pursuant to Chapter
8.04 of the Municipal Code to collect delinquent solid waste collection and disposal accounts.
7.4 Records
A. Franchisee shall maintain records required to conduct its operations, to support requests it may
make to City, and to respond to requests of the City. Adequate record security shall be maintained
to preserve records from events that can be reasonably anticipated such as a fire, theft and
earthquake. Electronically maintained data and records shall be protected and an adequate backup
system shall be provided for such data and records. The protection and backup systems shall be
subject to approval by the City.
B. The following records shall be maintained for the City in form and detail satisfactory to the City,
relating to:
1. Customer services and billing;
2. Weight of Solid Waste, especially as related to reducing and Diverting Solid Waste.
Information is to be separated by kind of account (Single-Family, Multi-Family, and
Commercial);
Deleted: ¶
Deleted: solid waste
Deleted: diverting solid waste.
Deleted: including multi-family dwelling units with
residential…
Page 605 of 984
30
3. Special annual clean-up event results;
4. Routes;
5. Facilities, equipment, and personnel used;
6. Facilities and equipment operations, maintenance, and repair;
7. Processing and Disposal of Solid Waste;
8. Complaints; and
9. Missed pick-ups.
C. Franchisee shall maintain records of Transfer, Diversion, and Disposal of all Solid Waste
Collected in the City for the period of this Agreement and all extensions to this Agreement or
successor Agreements. In the event Franchisee discontinues providing Solid Waste services to City,
Franchisee shall provide all records of Diversion and Disposal of all Solid Waste Collected
within the City to City within thirty (30) days of discontinuing service. Records shall be in
chronological order and organized in a form readily and easily interpreted.D. Records for
other programs shall be tailored to specific needs. In general, they shall include:
1. Plans, tasks·, and milestones; and,
2. Accomplishments in terms such as dates, activities conducted, quantities of products used,
produced or distributed, and numbers of participants and responses.
E. Unless otherwise required in this Agreement, Franchisee shall retain all records and data required to
be maintained by this Agreement for the Term of this Agreement plus five (5) years after its expiration
or earlier termination. Franchisee’s records shall be stored in one central location, physical or
electronic, that can be readily accessed by Franchisee. Upon request, any such records shall be
retrieved in a timely manner, not to exceed ten (10) Working Days of a request by the City and made
available to the City; including any record or documentation that the City, requires to fulfill
obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826, AB 876,
AB 901, SB 1383, and other current or future Federal, State, or local regulations, as amended.”
7.5 Waste Generation/Characterization Studies
Franchisee acknowledges that the City must perform solid waste generation and disposal
characterization studies periodically to comply with AB 939 requirements. Franchisee agrees to
participate and cooperate with the City and its agents, at no cost to the City, to accomplish
studies and data collection, and prepare reports, as needed, to determine weights and volumes of
solid waste and characterize solid waste generated, diverted, disposed, transformed, or otherwise
handled or processed to satisfy AB 939 requirements.
7.6 Report Formats and Schedule
A. Records shall be maintained in forms and by methods that facilitate flexible use of data contained in
them to structure reports, as needed. Reports are intended to compile recorded data into useful
forms of information that can be used to, among other things:
1. Determine and set rates, and evaluate the financial efficacy of operations; and
2. Evaluate past and expected progress towards achieving goals and objectives; and
Deleted: disposal
Deleted: solid waste
Deleted: transfer, diversion
Deleted: disposal
Deleted: solid waste collected
Deleted: city
Deleted: solid waste
Deleted: diversion
Deleted: disposal
Deleted: solid waste collected
Deleted: ¶
Page 606 of 984
31
3. Determine needs for adjustment to programs; and
4. Evaluate Customer service and Complaints.
B. The City may at no cost to itself request that Franchisee provide such additional information in the
reports set forth below as the City deems necessary or appropriate to meet its needs, including
provision of information needed for the City’s compliance with Applicable Law, includin g, but
not limited to AB 939, AB 1826, AB 341, and SB 1383 report information.
C. Franchisee may propose report formats that are responsive to the objectives and audiences for
each report. The format of each report shall be subject to approval by the City
D. Monthly reports shall be submitted within ten (10) calendar days after the end of the report month.
Quarterly reports shall be submitted within fifteen (15) calendar days after the end of the quarter.
Quarters end on November 30, February 28, May 31, and August 31. Franchisee shall provide
first monthly report with Customer and Service Level information to the City, with a copy to the City
within thirty (30) days of the approved Agreement.
All reports shall be submitted to:
Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
All reports shall be submitted to City electronically via e-mail using software acceptable to the
City and provide a copy of reports to the City. The City reserves the right to require the
Franchisee to maintain records and submit the reports required herein through use of a web-
based software platform provided or designated by the City and/or Microsoft Excel spreadsheet,
at the Franchisee’s expense.
E. Franchisee shall maintain records and reports in accordance with Section 7 and shall allow the City
to audit and inspect records as described in Section 7.
7.7 F. At the City’s option, the City may require that Franchisee provide the City copies of
the Franchisee’s AB 901 reports on a regular basis (such as monthly, quarterly, or annually)
or within five (5) Business Days of City’s request.”Monthly Reports
The information listed shall be the minimum reported for each service:
A. Tonnage. Solid Waste, Collected, Transferred, Diverted, and Disposed of, by sector (Commercial, ,
Residential) of Waste Generator Collected by Franchisee, in Tons, by month. Tonnage shall be
reported separately by Facility and Facility type. Franchisee shall also provide documentation of all
Discarded Materials exported out of State, as provided in 14 CCR Sections 18800 through 18813.
B. Customer Subscription.
1. Number of Containers at each Service Level by Customer Type and program, including:
i. A summary of the total gallons of Cart service, cubic yards of Bin service, and
pulls; and cubic yards or Tons of Drop Box and Compactor service by Customer
Type.
ii. Calculation of the average volume of service received per: Single-Family
Dwelling Unit (separately identifying Dwelling Units in a duplex, triplex, or
fourplex); Multi-Family Dwelling Unit; and Commercial Customer.
Deleted: customer
Deleted: complaints
Deleted: AB 939
Deleted: ¶
Deleted: ¶
Formatted: Indent: Left: 0.38", Tab stops: 0.75", Left +
Not at 1.13"
Deleted: collected, transferred, diverted
Deleted: disposed
Deleted: commercial
Deleted: industrial
Deleted: residential
Deleted: waste generator--collected
Deleted: tons
Formatted: Indent: Hanging: 0.75", Tab stops: 0.75",
Left + Not at 1.13"
Formatted: Indent: Left: 0.75", Hanging: 0.38"
Page 607 of 984
32
2. A summary of Customer subscription data, including the number of accounts; the number of
Customers subscribing to each Cart and Bin Service Level listed separately for Single-Family,
Multi-Family, and Commercial and separately for each type of Discarded Material; and the
number of Bulky Items Collections performed.
3. Number of Bulky Item/Reusable Materials Collection events by Customer Type.
C. Complaint summary, for month and cumulative for report year, as above. Summarized by nature of
Complaints.
D. Narrative summary of problems encountered and actions taken with recommendations for the City,
as appropriate.
E. Education Program Report.
7.8 The monthly status of activities identified in the annual public education plan described in
Section 7.16 of this Agreement.Quarterly Report
Quarterly reports shall be quarterly summaries of the monthly information in addition to the
following:
• Status report on applications for renewals of existing permits or any new permits which
may be required to continue operations at the designated disposal site within existing
permitted areas.
• Solid Waste, collected, diverted and disposed of, in tons, during the semi -annual
residential clean-up weeks, if applicable.
• For each new program, provide activity related and narrative reports on goals and
milestone and accomplishments. Describe problems encountered, actions taken and any
recommendations to facilitate progress.
• Provide a summary assessment of the overall solid waste program from Franchisee's
perspective relative to financial and physical status of program. The physical status is to
relate to how well the program is operating for efficiency, economy and effectiveness
relative to meeting all the goals and objectives of this Agreement. Provide
recommendations and plans to improve. Highlight significant accomplishments,
problems and proposed solutions.
7.9 Annual Report and Financial Audit
A. Financial Audit. Franchisee shall submit to the City annual audited financial statements prepared
at Franchisee’s expense by an independent Certified Public Accountant not later than 180 days
following the expiration of the Franchisee’s fiscal year. Pursuant to the “Rate Setting Process and
Methodology Manual for Integrated Solid Waste Management Rates”, dated June 1994, at the
time a rate application request is submitted to City, the financial forms contained in the rate
application must be reconciled to the audited financial statements.
B. Annual Report.
1. Collection and Subscription Report
i. A summary of all data provided in the Tonnage report section, including quarterly
and annual totals and averages.
ii. The type(s) of Collection service(s) provided, a list of all hauler routes serviced, and
a record of the addresses served on each hauler route.
iii. A summary of Customer subscription data, including the number of accounts; the
Formatted: Indent: Left: 0.75", Hanging: 0.38"
Deleted: B.
Formatted: Indent: Left: 0.38", Numbered + Level: 1 +
Numbering Style: A, B, C, … + Start at: 1 + Alignment:
Left + Aligned at: 0.75" + Indent at: 1.13", Tab stops:
0.75", Left + Not at 1.13"
Deleted: complaints
Deleted: C.
Deleted: D.
Deleted: ¶
¶
Deleted: Financial
Deleted: Franchisee's
Deleted: Franchisee's
Page 608 of 984
33
total number of Generators enrolled with Franchisee for service, listed separately by
Service Level and Container type separately by Single-Family, Multi-Family, and
Commercial Customers, and separately for each type of Discarded Material; and the
number of Bulky Items Collections perfor med.
iv. A detailed list of Single-Family, Multi-Family, and Commercial Customer
information, including Solid Waste Container Waste, Recyclable Materials, and
Organic Materials Service Levels, Customer type, and Customer service addresses
reflecting Customer Service Levels as of December 1 (for the year in which the
report is submitted).
2. Public Education and Outreach Report
i. A copy of all education and outreach materials provided to Generators, or otherwise
used for education and outreach efforts in accordance with this Agreement, including,
but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and
website and social media postings.
ii. A record of the date and to whom the information was disseminated or direct contact
made, in the form of a list that includes: the Generator’s name or account name, the type
of education or outreach received; the distribution date, and the method of distribution.
iii. For any mass distribution through mailings or bill inserts, the Franchisee shall maintai n a
record of the date, a copy of the information distributed, and the type and number of
accounts that received the information.
iv. A copy of electronic media, including the dates posted of: social media posts, e -mail
communications, or other electronic mess ages.
v. A summary of the status of the annual education plan of the reporting year, including
activities conducted and the quantitative and/or qualitative results of those activities.
7.10 Maintenance of Accounting Records
Franchisee shall maintain accounting records in accordance with generally accepted standards and
principles of accounting. In its accounting records, Franchisee shall discreetly maintain and
clearly identify all items of revenue and expense pertaining to the City's franchised operations.
Cost and revenue information for the City shall be segregated from other geographical areas served
by Franchisee. Cost and revenue information for the City, in addition, shall be segregated from
other business activities of the Franc hisee. Separate detailed records shall be maintained by
Franchisee with respect to all transactions with affiliated entities that affect the cost and revenue of
Franchisee in providing the franchise collection services.
7.11 Right to Audit Records
In addition to other reporting requirements in this Agreement, the City may review, test and
audit the books and records of the Franchisee or may engage a Certified Public Accountant for
this purpose. The cost of such inspection or review will be an allowable cost under the rate
setting methodology unless there are findings pursuant to Section 12.8.
7.12 Inspection by City
The designated representatives of the City shall have the right to observe and review
Franchisee operations and enter Franchisee's premises for the purpose of such observation and
review at all reasonable hours with reasonable notice.
7.13 Office
Franchisee shall maintain an office with telephone within the City limits where customers may
apply for service, pay bills, and register complaints. At a minimum, Franchisee shall staff this
Deleted: ¶
Page 609 of 984
34
office from 8:00 a.m. to 5:00 p.m., Monday through Friday, except legal holidays observed by
the City. A representative of Franchisee shall be available during office hours to communicate
with the public in person and directly by telephone.
7.14 Customer Information
Franchisee shall prepare and keep current a flier acceptable to the City which summarizes solid
waste regulations, all services provided by Franchisee, solid waste collection and disposal rates,
telephone numbers, special collection events, collection schedules, complaint procedures, and
other pertinent information. Franchisee shall have copies of this flier available at all times in
Franchisee's office; shall distribute copies to all new customers; shall annually mail copies to all
of its current customers; and shall mail updated copies to all customers as notification of
changes in service or rates, prior to such changes.
7.15 Regulatory Reporting
Franchisee shall promptly provide the City copies of each adverse report from, and each regulatory
action from local, state or federal regulatory agencies. In addition, Franchisee shall send copies to
City of any reports that Franchisee submits to regulatory agencies with respect to performance of
this Agreement.
Franchisee shall provide City promptly with copies of any notices and correspondence from other
facilities, including disposal sites, utilized by Franchisee in performance of this Agreement,
concerning any breach of agreement with such facility or violation of regulations, including
delivery of unauthorized wastes. Franchisee shall direct such facilities to at all times
simultaneously send copies of such notices and correspondence to City.
Franchisee shall promptly provide City with copies of any reports and correspondence concerning
the status of permits with respect to Franchisee and such disposal sites and facilities referenced
above.
7.16 Public Education
A. Program Objectives. The City or its designee shall be responsible for designing,
implementing, and conducting a public education and outreach program. The City’s public
education and outreach strategy shall focus on improving Generator understanding of the benefits
of and opportunities for source reduction, Reuse, and landfill Disposal reduction and supporting
compliance with Applicable Laws and regulations, including, but not limited to SB 1383. The
cumulative intended effect of these efforts is to reduce the amount of each Generator’s Discarded
Materials and, ultimately, Disposal of Discarded Materials, and Franchisee agrees to support and
not undermine or interfere with such efforts.
C. B. Franchisee Cooperation and Support for City Educational Efforts. Franchisee
acknowledges and agrees that education and public awareness are critical, key and essential
elements of any efforts to achieve compliance with AB 939, SB 1383, and other Applicable
Law. Accordingly, Franchisee agrees to take direction from City to exploit opportunities to
expand public and Customer knowledge concerning needs and methods to reduce, reuse, and
Recycle Solid Waste and to cooperate fully with City in this regard. Franchisee acknowledges
that they are part of a multi-party effort to operate and educate the public about the regional
integrated waste management system. Franchisee shall cooperate and coordinate with the City
on public education activities to minimize duplicative, inconsistent, or inappropriately timed
education campaigns. The Franchisee shall cooperate with and shall not impede, interfere, or
attempt to impede or interfere with the implementation, expansion, or operation of public
Deleted: AB 939 requirements.
Deleted: customer
Deleted: recycle solid waste
Page 610 of 984
35
education and outreach programs or campaigns conducted by the City.Supplemental
Education. Franchisee shall obtain approval from the City on all Franchisee-provided public
education materials outside of the City’s education plan, including, but not limited to: print,
radio, television, or internet media before publication, distribution, and/or release. The City
shall have the right to request that Franchisee include identification and contact information for
the City on public education materials and approval of such requests shall not be unreasonably
withheld.
D. Billing Inserts. Franchisee shall maintain its own program of providing information relevant
to billing and Solid Waste services, issues and needs with its bills. Franchisee shall also include
in Customer bills additional information, including information on any and all programs, as
directed by the City. Franchisee shall bear all labor costs with respect to inserting public
education materials with the billings. City shall bear an y additional postage expense resulting
from the City's inserts and shall bear other expenses related to the inserts to the extent said
expenses are clearly in excess of the Franchisee's normal billing costs. All public education
materials shall be approved in advance by the City. Franchisee shall be responsible for printing
single-sheet, double sided bill inserts at least annually. Franchisee shall provide electronic bill
inserts (or separate email attachments) to Customers who are billed electronically, an d paper
bill inserts to Customers who receive paper bills. Upon City request for such inserts, Franchisee
shall comply with such request during its next billing cycle for the targeted Customer group.
Franchisee shall perform this service with no additional requirement for compensation.
E. Annual Notice of Requirements. If not already provided through another Discarded Materials
Franchise agreement between the Parties, Franchisee shall, not less than once per year, prepare and
distribute to each Generator in the City a mailer that includes information specified in 14 CCR
Section 18985.1(a). Such mailer shall be distributed by Franchisee to all Residential and Commercial
mailing addresses including individual Multi-Family Dwelling Units and tenants of multi-tenant
Commercial locations. Franchisee shall also make this notice available in an electronic format
through the Franchisee’s website.
F. Other Outreach. At the direction of the City, Franchisee shall participate in and promote AB 939
activities, SB 1383 programs, and other Solid Waste management techniques at community events
and local activities. Such participation would normally include providing, without cost, educational
and publicity information promoting the goals of the City's Solid Waste Collection and Diversion
programs.
7.17 Records Retention
Franchisee shall maintain the above records, reports and data set forth in this Article for such
time as City may direct. Franchisee agrees to make all such records, reports and data available
for inspection by City or City's authorized representatives, upon reasonable notice by City.
Deleted: ¶
Deleted: solid waste
Deleted: customer
Deleted: recycling
Deleted: solid waste
Deleted: solid waste program
Deleted: ¶
.
Page 611 of 984
36
ARTICLE 8.
PAYMENTS TO CITY
8.1 Franchise Fee Payments
In consideration of the exclusive franchise provided for in Article 4 of this Agreement, Franchisee
shall pay the City ten percent (10%) of Franchisee’s gross revenues for collection and disposal of
solid waste within the City; provided, however, that such franchise fee shall not exceed the costs
incurred by the City to deliver service to properties. Such franchise fee shall be a “pass-through”
expense for purposes of rate review and setting. Each monthly remittance of fees to City shall be
accompanied by a statement detailing gross revenues for the period covered from all operations
conducted or permitted pursuant to this Agreement.
8.2 Schedule of Payment
Franchise fees described in Section 8.1 are due on the 15th day of each month for receipts from the
previous month. The remittance will be accompanied by a report setting forth the basis, and
calculations used for computing the amount due.
8.3 AB 939/SB 1383 Fee
Contractor shall pay an AB 939/SB 1383 fee to the City each month. The City shall retain the
sole right to set priorities for the use of its AB 939/SB 1383 fee. In addition, if the City’s
designee implements an AB 939, SB 1383, or Solid Waste Management fee, Contractor shall pay
that fee directly to the designee. Said fees shall be an allowable cost in Contractor’s rate
application. All AB 939/SB 1383 fees and Solid Waste Management fees paid to the City or its
designee shall be considered a pass through cost for purposes of rate setting , and, as such changes
these fees shall be adjusted accordingly subject to all applicable laws and regulations. The City or
its designee shall have the right to establish and adjust the AB 939, SB 1383, or Solid Waste
Management fee at any time, provided that any changes are considered a pass-through cost for
the purposes of rate setting, at the time of the change in the AB 939, SB 1383, or Solid Waste
Management fee.
8.4 Other Fees
The City shall reserve the right to set such other fees, as the City deems necessary. These fees will be
treated as a pass-through expense. The amount, time and method of payment shall be similar to
section 8.2.
8.5 Time and Method of Payment
If Franchisee is directed to pay an AB 939/SB 1383 Fee, Franchise Fee, or “Other” Fee, it shall do so
on or before the fifteenth (15th) day of each month during the Term. Franchisee shall remit to City a
sum of money equal to the designated percentage of the Gross Revenue or a flat monthly fee as
determined by the City. If any fees are not paid on or before the fifteenth (15th) day of any month,
Franchisee shall pay to City a late payment penalty in an amount equal to one percent (1%) of the
amount owing for that month. Franchisee shall pay an additional late payment penalty of one percent
(1%) owing on any unpaid balance for each following thirty (30) day period the fee remains unpaid.
Late payment penalty amounts shall not be included in any revenue requirement.
8.6 Review of Fee Payments
The City, or its agent, reserves the right to annually perform an independent review of fee
payments to verify that fees are being paid in accordance with this Agreement. The cost of such
inspection or review will be an allowable cost under the rate setting methodology unless there are
findings pursuant to Section 12.8.
Deleted:
Deleted: '
Deleted: "
Deleted: "
Deleted:
Formatted: Heading 1, Left, Indent: Left: -0.06",
Hanging: 0.89", Outline numbered + Level: 2 +
Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment:
Left + Aligned at: 0.33" + Indent at: 0.83", Tab stops:
0.38", Left
Deleted: gross revenue
Page 612 of 984
37
8.7 Business License Tax
Franchisee shall pay each year the annual business license tax.
Page 613 of 984
38
ARTICLE 9.
SERVICE RATES AND REVIEW
9.1 General
Franchisee’s compensation provided for in this Article shall be the full, entire and complete
compensation due to Franchisee pursuant to this Agreement for all labor, equipment, materials
and supplies, taxes, insurance, bonds, overhead, transfer and transport, processing, division,
disposal, profit and all other things necessary to perform all the services required by this Agreement
in the manner and at the times prescribed, Franchisee will not be entitled to any further rate
adjustments as a result of customer delinquencies and other bad debt issues.
Franchisee does not look to the City for payment of any sums, except for solid waste collection
services provided to the City and presented in Appendix III, under this Agreement in
consideration of the right to charge and collect from customers for services rendered at rates
fixed by the City from time-to-time. The City shall have the right to structure those rates as it
deems appropriate so long as the revenues forecasted to be received by Franchisee from charging
such rates can reasonably be expected to generate sufficient revenues to provide for
Franchisee’s compensation as calculated in accordance with the “City of San Luis Obispo Rate
Setting Process and Methodology Manual for Integrated Solid Waste Management Rates”.
9.2 Service Rates
Service rates are those established by Resolution adopted by City Council. Franchisee shall provide
the services required by this Agreement and charge no more than the rates authorized by City
Resolution.
9.3 Rate Review
Franchisee shall submit to the City an application for rate review annually, in accordance with
the procedures described in the “City of San Luis Obispo Rate Setting Process and Methodology
Manual for Integrated Solid Waste Management Rates,” dated June 1994, except as that may be
modified by the City from time to time. In addition to the procedures contained in the above
referenced manual, Franchisee shall submit any and all data requested by and in the format
prescribed by the City. In the event Franchisee shall fail to meet the schedule set forth in the above
referenced manual, a revision of rates for the following year shall not be authorized until the 1st
day of the first calendar month following a 120 day period from the date that the complete
application is submitted and such revision shall contain no consideration for Franchisee’s failure
to submit the application in accordance with the schedule set forth in the above-referenced
manual.
9.4 Special Interim Rate Review
The City or franchisee may request an extraordinary or consequential adjustment outside of the
base year and interim year adjustment schedules, as set forth in the “City of San Luis Obispo Rate
Setting Process and Methodology Manual for Integrated Solid Waste Management Rates,” dated
June 1994. To be extraordinary and consequential, cost changes must be significant enough to
require a greater than five percent (5%) decrease or increase in monthly rates for basic residential
service.
9.5 Allowable Profit
When performing the procedure described in the “City of San Luis Obispo Rate Setting
Process and Methodology Manual/or Integrated Solid Waste Management Rates,” dated
Page 614 of 984
39
June 1994, the allowable profit on expenses shall be calculated using targeted operating
ratio of ninety-three percent (93%), with a range of ninety -one percent (91%) to ninety-five
percent (95%), applied to Franchisee’s reasonable and necessary allowable costs, as these
costs are defined in the rate setting manual, incurred in the performance of its obligations
under this Agreement.
9.6 Publication of Rates
Franchisee shall provide written notice to subscribers of all rate changes, prior to
implementation. If appropriate, this notice should include reasons and background for the rate
change.
Page 615 of 984
40
ARTICLE 10.
INDEMNITY, INSURANCE, AND PERFORMANCE BOND
10.1 Indemnification
10.1.1 General.
Franchisee agrees to defend, indemnify, protect and hold the City and its Council members, agents,
officers and employees harmless from and against any and an· claims asserted or liability
established for damages or injuries to any person or property, including, but not limited to, damages
arising from or related to alleged or actual violations of Proposition 218 and/or its implementing
legislation, injury to the Franchisee's employees, agents or officers to the extent arising from or
connected with or are caused or claimed to be caused by the acts or omission of the Franchisee, and
its agents, officers, directors or employees, in performing the services herein, and all expenses of
investigating and defending against same; provided, however, that the Franchisee's duty to
indemnify and hold harmless shall not include any claims or liability arising from the established
sole negligence or willful misconduct of the City, its agents, officers or employees.
10.1.2 CERCLA.
Franchisee agrees to defend and indemnify the City, Council members, officers, employees and
agents for all actions of the Franchisee associated with the Franchisee's role as the arranger of
solid waste service, or as a "potentially responsible party" within the meaning of CERCLA in
performing solid waste service under any Federal, State or local laws, rules or regulations. The
Franchisee shall further defend and indemnify City from any and all legal actions against City on
the basis of the assertion that the City is an arranger of solid waste services as a result of this
Agreement.
10.1.3 Integrated Waste Management Act.
Franchisee agrees to defend and indemnify the City, Council members, officers, employees and
agents for any fines or penalties imposed by the California Integrated Waste Management Board or
its agents in the event and to the extent that Franchisee's delays in providing information or reports
required pursuant to this Agreement prevent the City from submitting reports or attaining goals in a
timely manner as required by the Integrated Waste Management Act.
10.2 Insurance
Franchisee shall procure and maintain for the duration of the franchise insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
performance of the services hereunder by the Franchisee, its agents, representatives, employees or
subcontractors.
A. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage (occurrence
form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 1/87)
covering Automobile Liability, code I (any auto).
(3) Workers' Compensation insurance as required by the State of California and
Employer's Liability insurance.
(4) Pollution Legal Liability
B. Minimum Limits of Insurance. Franchisee shall maintain limits no less than:
Deleted: ¶
Formatted: Font: Not Bold, Not Expanded by /
Condensed by
Formatted: Font: Not Bold, Not Expanded by /
Condensed by
Deleted: ¶
Page 616 of 984
41
(1) Commercial or Comprehensive General Liability: Five Million Dollars
($5,000,000) combined single limit per occurrence for bodily injury, personal
injury, and property damage. If Commercial General Liability or other form with
a general aggregate limit is used, either the general aggregate limit shall apply
separately to this Agreement or the general aggregate limit shall be twice the
required occurrence limit.
(2) Automobile Liability: Five Million Dollars ($5,000,000) combined single
limit per accident for bodily injury and property damage.
(3) Workers' Compensation and Employers Liability: Workers' compensation
limits as required by the Labor Code of the State of California and employers
liability with limits of $1,000,000 per accident for bodily injury or disease.
(4) Pollution Liabilities: One million Dollars ($1,000,000) each loss/Two Million
Dollars ($2,000,000) annual aggregate all losses.
C. Deductibles and Self-Insured Retentions. Any deductibles or self -insured retentions must
be declared to and approved by the City. At the option of the City, either: the insurer shall
reduce or eliminate such deductibles or self-insured retentions as respects the City, Council
members, its officers, officials, employees, and agents; or the Franchisee shall procure a bond
guaranteeing payment of losses and related investigations, claim administration and defense
expenses. Any insurance policies providing for self insured retentions shall further provide that
legal costs and costs of investigation, including consultant fees, with respect to any claim or
suit, shall apply to the self insured retention amount.
D. Other Insurance Provisions. The general liability and automobile liability policies are to
contain, or be endorsed to contain, the following provisions:
(1) The City, Council members, its officers, officials, employees, and agents are
to be covered as insurers as respects: liability arising out of activities
performed by or on behalf of the Franchisee; products and completed
operations of the Franchisee; premises owned, occupied or used by the
Franchisee; or automobiles owned, leased, hired or borrowed by the
Franchisee. The coverage shall contain no special limitations on the scope of
protection afforded to the City, its officers, officials, employees, or agents.
(2) For any claims related to this project, the Franchisee's insurance coverage
shall be primary insurance as respects the City, Council members, its
officers, officials, employees, and agents. Any insurance or self-insurance
maintained by the City, its officers, officials, employees, agents or volunteers
shall be excess of the Franchisee's insurance and shall not contribute with it.
(3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City, Council members, its officers, officials, employees, or agents.
(4) The Franchisee'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.
Page 617 of 984
42
(5) Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced
in coverage or in limits except after thirty (30) days' prior written notice by
certified mail, return receipt required, has been given to the City.
(6) The Automobile Liability Policy shall be endorsed to delete the Pollution
exclusion and add the Motor Carrier Act endorsement (MCS-90),
TL.1005, TL 1007 and/or other endorsements required by federal or state
authorities.
(7) Pollution, if on a Claims Made form:
a. The "Retro Date" must be shown and must be before the date of the contract
or the beginning contract work.
b. Insurance must be maintained and evidence of insurance must be provided
for at least five (5) years after completion of the contract of work.
c. If coverage is canceled or non-renewed, and not replaced with another claims
made policy form with a "Retro Date" prior to the contract effective date, the
Franchisee must purchase "extended reporting" coverage for minimum of
two years after completion of contract.
E. Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII. Insurers selected by Franchisee shall be admitted to
issue insurance in the State of California.
F. Verification of Coverage. Franchisee shall furnish the City with Certificates of insurance
and with original endorsements effecting coverage required herein. 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 or acceptable to the City and are to be received and approved by the City before
performance under this Agreement commences. The City reserves the right to require
complete certified copies of all required policies at any time, and Franchisee shall provide
said copies upon request.
G. Subcontractors. Franchisee shall include all subcontractors as insurers under its policies or
shall furnish separate certificates and endorsements for each subcontractor. All coverages
for subcontractors shall be subject to all of the requirements stated herein.
H. Occurrence Based Coverage. All policies secured by Franchisee shall be occurrence and not
claims based unless City so Consents in writing.
10.3 Performance Bond
Simultaneously with the execution of this Agreement, Franchisee shall file with the City a bond,
payable to City, securing Franchisee's faithful performance of its obligations under this Agreement.
The principal sum of the bond shall be One Half Million Dollars ($500,000).
The bond shall be executed as surety by a corporation authorized to issue surety bonds in the State
of California, with a financial condition and record of service satisfactory to City. The bond shall
be in a form approved by the City. If such bond at any time ceases to be effective for any reason,
this shall be deemed a breach of this Agreement by Franchisee and the City shall be entitled to
proceed as hereinafter provided.
Deleted: ¶
Page 618 of 984
43
ARTICLE 11.
CITY'S RIGHT TO PERFORM SERVICE
10.4 General
In the event that Franchisee, for any reason whatsoever, fails, refuses or is unable to Collect,
transport or process any or all Solid waste materials which it is required by this Agreement to
Collect and process, at the time and in the manner provided in this Agreement, for a period of
more than seven (7) calendar days, and if, as a result thereof, Solid Waste should accumulate in
the City to such an extent, in suc h 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 City shall
have the right, but not the obligation, upon twenty-four (24) hour prior written notice to
Franchisee during the period of such emergency as determined by the City Manager, (1) to
perform, or cause to be performed, such services itself with its own or other personnel
without liability to Franchisee, and/or (2) to take possession of any or all of Franchisee's land,
equipment and other property to Collect, transport or process any Solid Waste generated
within the City which Franchisee would otherwise be obligated to Collect, transport, process
or market pursuant to this Agreement. In the event the City takes possession of the
Franchisee's equipment and other property, the City shall be entitled to have another
Franchisee operate such equipment and property under City direction. Additionally, in the
event the City takes possession of the Franchisee's equipment and other property, the City
does not guarantee repair of existing problems with equipment and facilities.
Notice of Franchisee's failure, refusal or neglect to collect, transport or process Solid Waste may
be given orally by telephone to Franchisee at its principal office and shall be effective
immediately. Written confirmation of such oral notification shall be sent to Franchisee within
twenty-four (24) hours of the oral notification.
Franchisee further agrees that in such event:
• It will take direction from City to effect the transfer of possession of property
to City for City's use.
• It will, if City so requests, keep in good repair and condition all of such
property, provide all motor vehicles with fuel, oil and other service, and
provide such other service as may be necessary to maintain said property
in operational condition.
• City may immediately engage all or any personnel necessary or useful
for the Collection, transportation and processing Solid Waste, including,
if City so desires, employees previously or then employed by Franchisee,
Franchisee further agrees, if City so requests, to furnish City the services
of any or all management or office personnel employed by Franchisee
whose services are necessary or useful for Solid Waste Collection,
Transportation arid processing operations and for the billing and
collection of fees for these services.
City agrees that it assumes complete responibility for the proper and normal use of such equipment
and facilities while in its possession.
If the interruption or discontinuance in service is caused by any of the reasons listed in Section
12.4 (Excuse From Performance), City shall pay-to Franchisee the reasonable rental value of the
Page 619 of 984
44
equipment and facilities, possession of which is taken by City, for the period of City's possession, if
any, which extends beyond the period of time for which Franchisee has rendered bills in advance of
service.
Except as otherwise expressly provided in the previous paragraph, City's exercise of its rights under
this Article 11 (1) does not constitute a taking of private property for which compensation must be
paid; (2) will not create any liability on the part of City to Franchisee; and (3) does not exempt
Franchisee from the indemnity provisions of Article 10, Indemnification, Insurance and Bond, which
are meant to extend to circumstances arising under this Section, provided that Franchisee is not
required to indemnify City against claims and damages arising from the sole negligence of City
officers, employees and agents in the operation of Collection vehicles during the time City has
taken possession of such vehicles.
11.2 Temporary Possession of Franchisee's Property
If the City suffers an interruption or discontinuance of service as described in Section 11.1
(including interruptions and discontinuance due to events described in Section 12.4, Excuse from
Performance), City may take possession of and use all of Franchisee's property described above
until other suitable arrangements can be made for the provision of Solid Waste Services which
may include the grant of a Contract to another company. The same notice requirements of
Section 11.1 are applicable.
11.3 Billing and Compensation to City During City's Possession
During such time that city is providing Solid Waste services, as above provided, Franchisee
shall continue to bill and collect payment from all users of the above-mentioned services.
Franchisee further agrees that, in such event, it shall reimburse City for any and all costs and
expenses incurred by City in taking over possession of the above -mentioned property for Solid
Waste service in such manner and to an extent as would otherwise be required of Franchisee
under the Terms of this Agreement. Such reimbursement shall be made from time to time after
submission By City to Franchisee of each statement listing such costs and expenses, but in no
event later than five (5) working days from and after each such submission. The City shall have
the right, at its sole discretion, to take over billing and payment collection activities. The City
shall then pay any net revenues to the Franchisee, after deducting all expenses, including City-
incurred expenses.
11.4 City's Right to Relinquish Possession
It is further mutually agreed that City may at any time at its discretion relinquish possession of
any or all of the above-mentioned property to Franchisee and thereupon demand that
Franchisee resume the Solid Waste services as provided in this Agreement, whereupon
Franchisee shall be bound to resume the same.
11.5 Duration of City's Possession
City's right pursuant to this Article to retain temporary possession of Franchisee's facilities and
equipment, and to render Collection services, shall terminate when City determines that such
services can be resumed by Franchisee, or when City no longer reasonably requires such facilities or
equipment. In any case, City has no obligation to maintain possession of Franchisee's property
and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish
possession to Franchisee.
Page 620 of 984
45
ARTICLE 12.
DEFAULT AND REMEDIES
12.1 Events of Default
All provisions of this Agreement to be performed by Franchisee are considered
material. Each of the following shall constitute an event of default.
A. Fraud or Deceit. If Franchisee practices, or attempts to practice, any fraud or deceit
upon city.
B. Insolvency or Bankruptcy. If Franchisee becomes insolvent, unable, or unwilling to
pay its debts when due, or upon listing of an order for relief in favor of Franchisee in a
bankruptcy proceeding. The Franchisee is also in default if there is an assignment of
this contract for the benefit of its creditors.
C. Failure to Maintain Coverage. If Franchisee fails to provide or maintain in full
force and effect the Workers' Compensation, liability, indemnification coverage or any
insurance coverage or bond required under this Agreement.
D. Violations of Regulation. If Franchisee facilities fall out of full regulatory compliance
or if Franchisee violates any orders or filings of any regulatory body having jurisdiction
over Franchisee relative to this Agreement, provided that Franchisee may contest any such
orders or filings by appropriate proceedings conducted in good faith, in which case no
breach of the Agreement shall be deemed to have occurred.
E. Failure to Perform. If Franchisee ceases to provide Solid Waste services as required
under this Agreement for a period of two (2) days or more, for any reason within the
control of Franchisee.
F. Failure to Pay/Report. If Franchisee fails to make any timely payments, including
liquidated damages and penalties, required under this Agreement and/or fails to provide
City with required information, reports, and/or records in a timely manner as provided
for in the Agreement.
G. Acts or Omissions. Any other act or omission by Franchisee which violates the
terms, conditions, or requirements of this Agreement, 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 which is not corrected or remedied within the time
set in the written notice the violation or, if Franchisee cannot reasonably correct or remedy the
breach within the time set forth in such notice, if Franchisee 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.
H. False or Misleading Statements. Any representation or disclosure made to City by
Franchisee in connection with or as an inducement to entering into this Agreement, or any
future amendment to this Agreement, which proves to be false or misleading in any material
respect as of the time such representation or disclosure is made, whether or not any such
representation or disclosure appears as part of this Agreement.
Page 621 of 984
46
I. Attachment. There is a seizure of attachment of, or levy on, the operating equipment of
Franchisee, including without limits its equipment, maintenance or office facilities, or any
part thereof.
J. Suspension or Termination of Service. There is any termination or suspension of the
transaction of business by Franchisee, including without limit, due to labor unrest including
strike, work stoppage or slowdown, sickout, picketing, or other concerted job action lasting
more than two (2) days.
Upon default by the Franchisee, the City Manager shall provide written notice to Franchise of
the violation. The City Manager shall include in the notice, a demand that the Franchisee
correct the violation within 10 days following the delivery of said notice. If the violation is
not corrected within the 10 days, the City shall have the right to terminate the Agreement per
the provisions provided in Section 12.2. For purposes of this Agreement and any notice
required thereunder, the term "days" shall mean calendar days.
12.2 Right to Terminate Upon Default
Upon a default by Franchisee, City shall have the right to terminate this Agreement upon a ten
(10) days notice if the public health or safety is threatened, or otherwise a thirty (30) days
notice, but without the need for any hearing, suit or legal action. This right of termination is in
addition to any other rights of City upon a failure of Franchisee to perform its obligations
under this Agreement.
12.3 Possession of Property and Billing Records and Systems Upon Termination
In the event of termination for default, the City shall have the right, subject to the obligations
contained in Article 12 hereof, to take possession of any and all of Franchisee's land,
equipment, and other property used or useful in the collection, diversion and/or disposal of
solid waste and to conduct all activities concerning billing and collection of fees for these
services and to use such property. The City shall have the right to retain the possession of such
property until other suitable arrangements can be made for the provision of solid waste
collection services, which may include the award of an agreement or franchise to another waste
hauling company. If the City retains possession thereof after the period of time for which
Franchisee has already been paid by means of bills issued in advance of providing service for
the class of service involved, Franchisee shall be entitled to the reasonable rental value of such
property (which shall be offset against any damages due the City for the Franchisees default).
Franchisee shall provide the City immediate access to all of its business records and billing
system related to its billing of accounts for services and shall take direction from the City
regarding the billing of customers during the period between the City's termination of the
Agreement for default until other suitable arrangements can be made for the billing of solid
waste collection services. The provisions of this Section 12.3 shall survive the termination of this
Agreement.
12.4 City's Remedies Cumulative; Specific Performance
The City's right to terminate the Agreement under Section 12.1 and to take possession of the
Franchisee's properties under Section 12.3 are not exclusive, and the City's termination of the
Agreement shall not constitute an election of remedies. Instead, they shall be in addition to
any and all other legal and equitable rights and remedies which the City may have.
Page 622 of 984
47
By virtue of the nature of this Agreement, the urgency of timely, continuous and high quality
service, the lead time required to effect alternative service, and the rights granted by the City
to Franchisee, the remedy of damages for a breach hereof by Fran chisee is inadequate and the
City shall be entitled to injunctive relief and/or specific performance if it so desires.
12.5 Excuse from Performance
The parties shall be excused from performing their respective obligations hereunder in the
event they are prevented from so performing by reason of floods, earthquakes, other "acts of
God", war, civil insurrection, riots, acts of any government (including judicial action), and
other similar catastrophic events which are beyond the control of and not the fault of the party
claiming excuse from performance hereunder. Labor unrest, including but not limited to
strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action
conducted by Franchisee's employees or directed at Franchisee or its selected facilities is not an
excuse from performance and Franchisee shall be obligated to continue to provide service
notwithstanding the occurrence of any or all such events.
The party claiming excuse from performance shall, within two (2) days after such party has
notice of such cause, give the other party notice of the facts constituting such cause and
asserting its claim to excuse under this Section.
The interruption or discontinuance of Franchisee's services caused by one or more of the
events excused shall not constitute a default by Franchisee under this Agreement.
Notwithstanding the foregoing, however, if Franchisee is excused from performing its
obligations hereunder for any of the causes listed in this Section for a period of seven (7) days
or more, City shall have the right to review the circumstances under which the excuse from
performance was granted. After such review, if the City determines the excuse from service is
no longer valid, the City shall notify the Franchisee in writing to resume service within two (2)
days from the receipt of such notification. If the Franchisee fails to resume service within the two
(2) days, the City shall have the right to terminate this Agreement by giving ten (10) days
notice, in which case the provisions relative to taking possession of Franchisee's land, equipment
and other property and engaging Franchisee's personnel in Article 11, City's Right to Perform
Services, and this Article 12 shall apply.
12.6 Liquidated Damages
A. General. City finds, and Franchisee agrees, that as of the time of the execution of this Agreement, it
is impractical, if not impossible to reasonably ascertain the extent of damages which shall be incurred
by City as a result of a breach by Franchisee of its obligations under this Agreement. The factors
relating to the impracticability of ascertaining damages include, but are not limited to, the fact that:
1. Substantial damage results to members of the public who are denied services or denied quality
or reliable service;
2. Such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the
Agreement to individual members of the general public for whose benefit this Agreement
exists, in subjective ways and in varying degrees of intensity which are incapable of
measurement in precise monetary terms;
3. 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
Deleted: substantial
Deleted: such
Deleted: that
Page 623 of 984
48
4. The termination of this Agreement for such breaches, and other remedies are, at best, a means
of future correction and not remedies which make the public whole for past breaches. However,
substantial breaches may result in the termination of this Agreement as described in Section
12.1.
B. Service Performance Standards and Liquidated Damages for Failure to Meet Standards. The
Parties further acknowledge that consistent, reliable Solid Waste Collection service is of utmost
importance to City and that City has considered and relied on Franchisee's representations as to its
quality of service commitment in awarding the Franchise to it. The Parties further recognize that if
Franchisee fails to achieve the performance standards, or fail to submit required documents in a
timely manner, City and its residents will suffer damages and that it is and will be impractical and
extremely difficult to ascertain and determine the exact amount of damages which City will suffer.
Therefore, without prejudice to City's right to treat such non-performance as an event of default under
this Article 12, the Parties agree that the following Liquidated Damages amounts represent a
reasonable estimate of the ,amount of such damages considering all of the circumstances existing on
the date of this Agreement, including the relationship of the sums to the range of harm to City that
reasonably could be anticipated and the anticipation that proof of actual damages would be costly or
inconvenient.
The City may monitor the Franchisee’s performance under the Agreement in each of the performance
areas listed below. In the event that the City determines that Franchisee has failed to meet the
performance standard established for any of the areas identified below, the City may assess
Liquidated Damages pursuant to this Section of the Agreement. Franchisee agrees to pay (as
Liquidated Damages and not as a penalty) the amounts set forth below:
Event of Non-Performance Liquidated
Damage
Collection Reliability and Quality
1 Failure to Implement three-
Container System. For each
occurrence of failing to
provide Customers with Solid
Waste Containers as part of the
three-Container system
required by and compliant with
the Municipal Code (excluding
Generators and Customers that
demonstrate compliance with
Recycling and Organic Waste
Self-Hauling requirements
pursuant to the Municipal
Code and 14 CCR Division 7,
Article 12, Article 7.)
$150/ Generator or
Customer /
occurrence / Day
until compliance
achieved
2 For each failure over five (5)
annually to commence service
to a new Customer account
within seven (7) days after
order:
$150.00
3 For each failure over ten (10)
annually to Collect Solid
Waste, which has been
$150.00
Deleted: the
Deleted: parties
Deleted: solid waste collection
Deleted: parties
Deleted: parties
Deleted: liquidated damage
Deleted: Franchisee agrees to pay (as liquidated damages
and not as a penalty) the amounts set forth below:
Deleted: customer
Page 624 of 984
49
Event of Non-Performance Liquidated
Damage
properly set out for Collection,
from an established Customer
account on the scheduled
Collection day
4 For each failure to Collect
Solid Waste which have been
properly set out for Collection,
from the same Customer on
two (2) consecutive scheduled
pickup days:
$150.00
5 For each occurrence over five
(5) annually of damage to
private property:
$250.00
6 For each occurrence of
discourteous behavior:
$250.00
7 For each failure over ten (10)
annually to clean up Solid
Waste spilled by Contractor
from Containers:
$150.00
8 For each occurrence over five
(5) annually of Collecting
Solid Waste during
unauthorized hours:
$250.00
9 For each failure to respond to a
Customer Complaint within
twenty-four (24) working
hours:
$100.00
10 For each failure to prepare for
or properly conduct twice
annual clean-ups including
advertising and press releases
$250.00
11 For each occurrence over ten
(10) annually of failure to
properly return Containers to
avoid pedestrian or vehicular
traffic impediments or to place
cans upright with
lid secured
$150.00
12 For each occurrence of
excessive noise above the
limits specified in this
Agreement
$250.00
1
3
Failure to Comply with Container
Labeling and Colors. For each
$150/ Container / occurrence
Deleted: Franchisee agrees to pay (as liquidated damages
and not as a penalty) the amounts set forth below:
Deleted: customer
Deleted: customer
Deleted: Bins
Deleted: customer complaint
Deleted: containers
Page 625 of 984
50
Event of Non-Performance Liquidated
Damage
occurrence of Franchisee’s failure to
comply with Container labeling and
color requirements pursuant to
Section 6.1.3 of this Agreement.
1
4
Use of Unauthorized Facilities. For
each individual occurrence of
delivering Discarded Materials to a
Facility other than a Designated
Disposal Facility(ies).
$150 / Ton / occurrence
Customer Responsiveness
15 For each failure to respond to
a Customer Complaint within
sixteen (16) working hours
$100.00
16 For each failure to process
Customer Complaints to City
$500.00
17 For each failure to carry out
responsibilities for
establishing service
$500.00
Reports and Timeliness of Submissions to the City
18 REPORTS. Any report shall
be considered late until such
time as a correct and complete
report is received by City. For
each calendar day a report is
late, the daily assessment shall
be:
a. Monthly Reports:
For each infraction
$100 per day
b. Quarterly Reports
For each infraction
$250 per day
c. Annual Reports:
For each infraction
$500 per day
19 Failure to Allow Access to
Records. For each failure to
provide access to records in
compliance with and in the
timeframe specified in this
Agreement.
$120/day
Other
20 Failure to Perform Public
Education and Outreach. For
each failure to perform any
individual education and
outreach activity as required
and in the timeframe specified
by this Agreement.
$180 / occurrence
21 Improper Fee Issuance. For
each fee that is issued to a
Generator without prior
$100/Customer/Da
y
Deleted: Franchisee agrees to pay (as liquidated damages
and not as a penalty) the amounts set forth below:
Deleted: customer complaint
Deleted: customer complaints
Deleted: ¶...
Deleted: ¶
Page 626 of 984
51
Event of Non-Performance Liquidated
Damage
authorization from City under
this Agreement.
Liquidated Damages will only be assessed after Franchisee has been given the opportunity but failed to
rectify the damages, as described in this Agreement (e.g., twenty-four (24) working hours to respond
to a Complaint). City may determine the occurrence of events giving rise to Liquidated Damages
through the observation of its own employees or representative or investigation of Customer
Complaints.
Prior to assessing Liquidated Damages, City shall give Franchisee notice of its intention to do so. The
notice will include-a brief description of the incident(s)/non-performance.
Franchisee may review (and make copies at its own expense) all information in the possession of City
relating to incident(s)/non-performance. Franchisee may, within ten (10) days after receiving the notice,
request a meeting with City. If a meeting is requested, it shall be held by the City Manager or their designee.
Franchisee may present evidence in writing and through testimony of its employees and others relevant to
the incident(s)/non performance. The City Manager or designee will provide Franchisee with a written
explanation of their determination on each incident(s)/non-performance prior to authorizing the assessment
of Liquidated Damages. The decision of the City Manager or designee shall be final.
12.7 Notice, Hearing and Appeal
Should the Franchisee contend that the City is in breach of the Agreement, Franchisee shall file
a written request with the Utilities Director for a consultation regarding the allegations. Such
consultation shall be held within thirty calendar days of the receipt of Franchisee's request.
Franchisee shall present its position and all relevant facts to the Utilities Director.
Franchisee shall be notified of the Utilities Director judgment within ten calendar days of the
consultation.
If the Franchisee is not in agreement with the ruling issued by the Utilities Director, it shall
have the right to appeal the decision to the City Manager. This appeal shall be made in writing
to the City no later than fourteen days after the notification is mailed by Utilities Director of
the judgment. The City Manager shall notify Franchisee of the time and date of the review
of allegation within thirty calendar days of the request. Franchisee shall present its position
and all relevant facts to the City Manager. Franchisee shall be notified in writing within
fourteen calendar days of the City Manager's ruling. The decision of the City Manager can be
appealed to City Council per Municipal Code Section 1.20.020.
12.8 Financial Material Errors, Omissions or Irregularities
The City may review, test and audit the books and records of the Franchisee for the purpose of
determining whether the Franchisee is complying with the terms of the Agreement. In the
event that material errors or omissions or irregularities are identified, then the cost associated
with the audit; test or review shall be paid by the Franchisee to the City. In the case of
financial errors, materiality shall be deemed to be two percent (2%) or greater of the gross
revenues of the Franchisee from activities performed under this agreement. Recovery of any
overpayment will be negotiated on a case by case basis, either immediately or through the
next rate setting evaluation.
Deleted: Franchisee agrees to pay (as liquidated damages
and not as a penalty) the amounts set forth below:
Deleted: damages
Deleted: complaint
Deleted: liquidated damages
Deleted: customer complaints
Deleted: liquidated damages
Deleted: his/her
Deleted: his or her
Deleted: liquidated damages.
Deleted: ¶
C. Amount. The City Manager may assess liquidated
damages for each calendar day or event, as appropriate,
that Franchisee is determined to be liable in accordance
with this Agreement.¶
D. Timing of Payment. Franchisee shall pay any
liquidated damages assessed by City within ten (I 0)
days after they are assessed. If they are not paid within
the ten (I 0) day period, City may proceed against the
performance bond required by this Agreement or order
the termination of this Agreement, or both pursuant to
the terms of this Agreement.
Deleted: ¶
Page 627 of 984
52
ARTICLE 13.
ASSIGNMENT
13.1 Assignment
Except as provided in Article 11, "City's Right to Perform Service", neither party shall
assign its rights nor delegate or otherwise transfer its obligations under this Agreement
to any other person without the prior written consent of the other party. Any such
assignment made without the consent of the other party shall be void and the attempted
assignment shall constitute a material breach of this Agreement. The City may, however,
assign its rights and delegate its obligations under this Agreement to a joint powers
authority without the prior written consent of Franchisee.
For purposes of this section, "assignment" shall include, but not be limited to
(1) a sale, exchange or other transfer to a third party of at least fifty-one
percent of Franchisee's assets dedicated to service under this
Agreement;
(2) a sale, exchange or other transfer to a third party, including other
shareholders, of outstanding common stock of Franchisee which may result
in a change of control of Franchisee;
(3) any dissolution, reorganization, consolidation, merger, recapitalization, stock
issuance or re-issuance, voting trust, pooling agreement, escrow arrangement,
liquidation or other transaction which Franchisee or any of its shareholders is a
party which results in a change of ownership or control of Franchisee; and
(4) any assignment by operation; of law, including insolvency or bankruptcy,
assignment for the benefit of creditors, writ of attachment for an execution being
levied against this Agreement, appointment of a receiver taking possession of
Franchisee's property, or transfer occurring in the probate proceeding; and
(5) any combination of the foregoing (whether or not in related or
contemporaneous transactions, which has the effect of any such transfer or
change of ownership, or change of control of Franchisee.
Franchisee acknowledges that this Agreement involves rendering a vital service to
City residents and businesses, and that City has selected Franchisee to perform the
services specified herein based on:
1. Franchisee's experience, skill and reputation for conducting its solid waste
management operations in a safe, effective and responsible fashion, at all times in
keeping with applicable environmental laws, regulations and best waste management
practices, and
2. Franchisee's financial resources to maintain the required equipment and to
support its indemnity obligations to City under this Agreement. City has relied on each
of these factors, among others, in choosing Franchisee to perform the services to be
rendered by Franchisee under this Agreement.
Page 628 of 984
53
If Franchisee requests City’s consideration of and consent to an assignment, City may deny or
approve such request in its complete discretion. The City is concerned about the possibility that
assignment could result in significant rate increases, as well as a change in the quality of service.
Accordingly, the following standards have been set to ensure that assignment will result in
continued quality service. In addition, the City reserves the right to solicit competitive bids for
these services if the assignment results in a request by the assignee for rate increases that are
higher than the inflationary index and do not reflect value changes in service standards. At a
minimum, no request by Franchisee for consent to an assignment need be considered by City
unless and until Franchisee has met the following requirements:
A. Franchisee shall undertake to pay City its reasonable expenses for attorney's fees and
investigate the suitability of any proposed assignee, and to review and finalize any
documentation required as a condition for approving any such assignment;
B. Franchisee shall furnish City with audited financial statements of the proposed
assignee's operations for the immediately preceding three (3) operating years;
C. Franchisee shall furnish City with satisfactory proof:
1. that the proposed assignee has at least ten (10) years of solid waste
management experience on a scale equal to or exceeding the scale of
operations conducted by Franchisee under this Agreement;
2. that in the last five (5) years, the proposed assignee or affiliates has not suffered
any significant citations or other censure from any federal, state or local agency
having jurisdictions over its waste management operations due to any significant
failure to comply with state, federal or local environmental laws and that the
assignee has provided City with a 9omplete list of such citations and censures;
3. that the proposed assignee has at all times conducted its operations in an
environmentally safe and conscientious fashion;
4. that the proposed assignee conducts its solid waste management practices in
accordance with sound waste management practices in full compliance with all
federal, state and local laws regulating the collection and disposal of solid waste,
including hazardous wastes; and,
5. of any other information required by City to ensure the proposed assignee can fulfill
the terms of this Agreement in a timely, safe and effective manner.
Under no circumstances shall the City be obliged to consider any proposed assignment
by Franchisee, if Franchisee is in default at any time during the period of consideration.
Page 629 of 984
51
ARTICLE 14.
OTHER AGREEMENTS OF THE PARTIES
14.1 Relationship of Parties
The parties intend that Franchisee shall perform the services required by this Agreement as an
independent Franchisee engaged by the City and not as an officer or employee of the City nor as a
partner of a joint venture with the City. No employee or agent of Franchise shall be nor shall be
deemed to be an employee or agent of the City. Except as expressly provided herein, Franchisee
shall have the exclusive control over the manner and means of conducting the solid waste collection
and disposal services performed under this Agreement, and over all persons performing such
services. Franchisee shall be solely responsible for the acts and omissions of its officers, directors,
employees, subcontractors, and agents. Neither Franchisee nor its officers, employees,
subcontractors and agents shall obtain any rights to retirement benefits, workers compensation
benefits, or any other benefits which accrue to City employees by virtue of their employment with
the City.
14.2 Governing Law
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of
the State of California.
14.3 Jur1sdiction
Any lawsuits between the parties arising out of this Agreement shall be brought and concluded in the
courts of the State of California, which shall have exclusive jurisdiction over such lawsuits.
With respect to venue, the parties agree that this Agreement is made in and will be performed in San
Luis Obispo County.
14.4 Subcontracting
Except as approved in writing by the City, Franchisee shall not enter into an agreement to have
another Person perform Franchisee's duties of this Agreement. Franchisee shall undertake to pay
City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the
suitability of any proposed subcontractor, and to review and finalize any documentation required as a
condition for approving any such subcontracting agreement.
14.5 Interests of Franchisee
Franchisee covenants that it presently has no interest, and shall not acquire any interest direct or
indirect or otherwise, which would conflict in any manner or degree with the performance of the
work hereunder. The Franchisee further covenants that, in the performance of this work, no
subcontractor of any person having such an interest shall be employed. The Franchisee certifies that
no one who has or will have any financial interest in performing this work is an officer or employee
of the City.
14.6 Binding on Successors
The provisions of this Agreement shall insure to the benefit of and be binding on the successors and
permitted assigns of the parties.
14.7 Transition of Next Franchise
At the point of transition to a new franchise, Franchisee will cooperate with the City and subsequent
franchisee(s) to assist in an orderly transition which will include Franchisee providing route lists and
Page 630 of 984
52
billing information. Franchisee will not be obliged to sell collection vehicles, bins, and containers to the
next franchise. The Franchisee, at its option, may enter into negotiations with the next franchisee to sell
(in part or all) collection vehicles, bins and containers.
14.8 Parties in Interest
Nothing in this Agreement, whether express or implied, is intended to confer any rights on any persons
other than the parties to it and their representatives, successors and permitted assigns.
14.9 Waiver
The waiver by either party of any breach or violation of any provision(s) of this Agreement shall not be
deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach or
violation of the same or any other provision. The subsequent acceptance by either party of any monies
which become due hereunder shall not be deemed to -be a waiver of any pre-existing or concurrent breach
or violation by the other party of any provision of this Agreement.
14.10 Condemnation
The City fully reserves whatever rights it may have to acquire Franchisee's property utilized in the
performance of this Agreement, by negotiated purchase or failing that.1 through the exercise of the right
of eminent domain.
14.11 City Free to Negotiate with Third Parties
The City may investigate, during the term and thereafter, all options for the collection, diversion, and
disposal of solid waste after the expiration of the term. Without limiting the foregoing, the City may
solicit proposals from Franchisee and from third parties for the provision of collection services,
disposal services, recycling services, Solid waste collection and composting, and any combination thereof,
and may negotiate and execute agreements for such services which will take effect upon the expiration
or earlier termination under Section 11.1 of this Agreement.
14.12 Immigration Act of 1986
The Franchisee warrants on behalf of itself and all subcontractors engaged for the performance of this
work that only persons authorized to work in the United States pursuant to the Immigration Reform
and Control Act of 1986 and other applicable laws shall be employed in the performance of this work.
14.13 Non-Discrimination
In the performance of this work, the Franchisee agrees that it will not engage in, nor permit such
subcontractors as it may employ, to engage in discrimination in employment of persons because of age,
race, color, sex, national origin or ancestry, sexual orientation, physical disability, mental condition
or religion of such persons.
14.14 Public and Employee Safety
Whenever the Franchisee's operations create a condition hazardous to the public or City employees, it
shall, at its expense and without cost to the City, furnish, erect and maintain such fences,
temporary railings, barricades, lights, signs and other devices, and take such other
protective measures as are necessary to prevent accidents or damage or injury to the public
and employees.
14.15 Recycled Products
The City encourages the Franchisee's use of recycled products.
Page 631 of 984
53
14.16 Notice
All notices, demands, requests, proposals, approvals, consent, and other communications
which this Agreement requires, authorizes or contemplates, except as provided in Section
12.1, shall be in writing and shall either be personally delivered to a representative of the
parties at the address below or be deposited in the United States mail, first class postage
prepaid, addressed as follows:
If to City: Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
If to Franchisee: San Luis Garbage Company
2945 McMillan #136
San Luis Obispo, CA 93401
The address to which communications may be delivered may be changed from time to time
by a notice given in accordance with this Section.
Notice shall be deemed given on the day it is personally delivered or, if mailed, three days
from the date it is deposited in the mail.
14.17 Representatives of the Parties
References in this Agreement to the "City" shall mean the City Council and all actions to be taken by the
City shall be taken by the City Council except as provided below. The City Council may delegate, in
writing, authority to the City Manager, the Director of Util ities and/or to other City officials and may
permit such officials, in tum, to delegate in writing some or all of such authority to subordinate officers.
Franchisee may rely upon actions taken by such delegates if they are within the scope of the authority
properly delegated to them.
Franchisee shall, by the effective date, designate in writing a responsible officer who shall
serve as the representative of Franchisee in all matters related to the Agreement and shall
inform the City in writing of such designation and of any limitations upon their authority to
bind Franchisee. The City may rely upon action taken by such designated representative as
actions of Franchisee unless they are outside the scope of the authority delegated to them
by Franchisee as communicated to the City.
14.18 Entire Agreement
This Agreement represents the full and entire Agreement between the parties with respect to the matters
covered herein.
14.19 Section Headings
The article headings and section headings in this Agreement are for convenience and reference only and are
not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions.
14.20 References to Laws
All references in this Agreement to laws shall be understood to include such laws as they may be
subsequently amended or recodified, unless otherwise specifically provided.
14.21 Interpretation
This Agreement shall be interpreted and construed reasonably and neither for nor against either party,
regardless of the degree to which either party participated in its drafting.
Deleted: ¶
Deleted: his or her
Deleted: him/her
Page 632 of 984
54
14.22 Amendment
This Agreement may not be modified or amended in any respect except by another Agreement in writing
signed by the parties.
14.23 Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable,
the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this
Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained
herein.
14.24 Counterparts
This Agreement may be executed in counterparts each of which hall be considered an original.
14.25 Use of "Will"
The use of the word "will" shall be construed as interchangeable with the word "shall."
14.26 Surviving Provisions
Paragraphs 7.11, 7.16, 8.5, 10.2, and other provisions of this Agreement so providing, shall survive
termination of this Agreement.
14.27 Investigation
Franchisee has relied on its own investigations in deciding to enter into this Agreement and has not relied
upon any representations of the City, its Council members, officers, directors, employees or agents.
Page 633 of 984
55
IN WITNESS WHEREOF, City and Franchisee have executed this Agreement as of the day and
year first above written.
The City of San Luis Obispo San Luis Garbage Company
“City” “Franchisee”
By: ___________________________ By: ______________________________
City Manager Name:
Title:
Attest:
City Clerk
Approved to Form:
________________________________
City Attorney
Deleted: Contractor
Page 634 of 984
1
AMENDED AND RESTATED AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO
AND
SAN LUIS GARBAGE COMPANY
For Collection and Disposal of Recyclable Materials Within the
City of San Luis Obispo
This Agreement between the City of San Luis Obispo and San Luis Garbage Company for Collection and
Processing of Recyclable Materials (“Agreement”), is made and entered into as of the ____ day of May
2022 the “Effective Date”) in the State of California by and between the City of San Luis Obispo, a
political subdivision of the State of California (hereafter “City”) and San Luis Garbage Company, a
California corporation (hereafter “Franchisee”), each of which may be referred to individually as a “Party”
or together as the “Parties.”
RECITALS
This Agreement is made and entered into on the basis of the following facts, understandings, and intentions
of the parties:
1. WHEREAS: The Parties entered into a Franchise Agreement for Recyclable Materials Collection on
August 20, 2010 (“Agreement”) and,
2. WHEREAS: Section 4.6 of the Agreement provides City with the right to direct Franchisee to modify
the scope of one or more types of service described in the Agreement, or to otherwise modify its
performance under the Agreement, subject to providing additional compensation; and,
3. WHEREAS: The State of California has found and declared that the amount of refuse generated in
California, coupled with diminishing Disposal capacity and potential adverse environmental impacts
from landfill Disposal and the need to conserve natural resources, have created an urgent need for State
and local agencies to enact and implement an aggressive integrated waste management program. The
State has, through enactment of AB 939 and subsequent related legislation including, but not limited to:
the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176),
SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics
Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383),
directed the responsible State agency, and all local agencies, to promote Diversion and to maximize the
use of feasible waste reduction, re-use, Recycling, and Composting options in order to reduce the
amount of refuse that must be Disposed; and
4. WHEREAS: SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid
Waste facilities, and other entities to support achievement of State -wide Organic Waste Disposal
reduction targets; and,
5. WHEREAS: SB 1383 requires the City to implement Collection programs for Organic Waste and
Recyclable Materials, meet Processing Facility requirements, conduct contamination monitoring,
provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and
fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to the
Franchisee, through this Agreement;
6. WHEREAS: Both Parties have, in good faith, negotiated changes to the Agreement necessary to
support the City’s compliance with SB 1383, as set forth herein.
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions herein
contained, CITY and FRANCHISEE do hereby agree as follows:
Style Definition: Heading 4: Indent: Left: 0"
Deleted: Residential
Deleted: ¶
Deleted: this 20th day of August, 2010,
Deleted: A Charter Municipal Corporation
Deleted: , (
Deleted: )
Deleted: , (
Deleted: Contractor
Deleted: ), for the Collection, processing and marketing”
Deleted: residential Recyclable Materials and
Deleted: Performance of other services related to meeting
the goals and requirements of the California Integrated
Waste Management Act of 1989.
Deleted: with reference to
Deleted: and circumstances
Deleted: Legislature
Deleted: Contractor
Deleted: , by
Deleted: the California Integrated Waste Management
Deleted: 1989 (AB 939) Division 30 of the California
Public Resources Code, commencing with 40000, has
declared that it is within the public interest to authorize
and require local agencies to make adequate provisions for
Recyclable Materials handling within their
Deleted: . AB 939 also
Deleted: a fifty percent (50%) reduction by the year
2000; and…
Deleted: Contractor
Deleted: , acting as the City’s designee
Deleted: ¶
Deleted: for and
Deleted: it is
Deleted: CONTRACTOR
Deleted: agreed by and between the City and Contractor
Deleted: ¶
Page 635 of 984
Recycling Services Agreement
2
Deleted: Residential
ARTICLE 1.
DEFINITIONS
1.1 “AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011
[Chesbro, AB 341]), also commonly referred to as “AB 341”, as amended, supplemented,
superseded, and replaced from time to time.
1.2 "AB 939” means the California Integrated Waste Management Act of 1989, (Division 30 of
the California Public Resources Code), as amended, supplemented, superseded, and replaced
from time to time.
1.3 “AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014
modifying Division 30 of the California Public Resources Code), as amended, supplemented,
superseded, and replaced from time to time.
1.4 "Affiliate" means all businesses (including corporations, limited and general partnerships and sole
proprietorships) which are directly or indirectly related to Franchisee by virtue of direct or indirect
common ownership interest or common management shall be deemed to be "Affiliated with"
Franchisee and included within the term "Affiliates with" Franchisee and included within the
"Affiliates" as used herein. An Affiliate shall include a business in which Franchisee owns a direct or
indirect ownership interest, a business which has a direct or indirect ownership interest in Franchisee
and/ or a business which is also owned, controlled or managed by any business or individual which has
a direct or indirect ownership interest exists, the constructive ownership provisions of Section 318(a)
of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply;
provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section
318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded.
For purposes of determining ownership under this paragraph and constructive or indirect ownership
under Section 318(a), ownership interest of less than ten percent (10%) shall be determined on the
basis of the percentage of voting interest or value which the ownership interest represents, whichever is
greater.
1.5 "Agreement" means this residential Recycling Agreement (dated August 20, 2010, including all
exhibits and attachments, and any amendments thereto) between City and Franchisee for Collection,
processing and marketing of residential Recyclable Materials and other services.
1.6 “Applicable Law” means all Federal, State, County, and local laws, regulations, rules, orders,
judgments, degrees, permits, approvals, or other requirement of any governmental agency having
jurisdiction over the Collection, Transportation, and Processing o f Recyclable Materials, Organic
Materials, and Solid Waste that are in force on the Effective Date and as may be enacted, issued or
amended during the Term of this Agreement. Applicable Law includes, but is in no way limited to,
AB 939, AB 341, AB 1826, and SB 1383.
1.7 “Approved Recyclable Materials Processing Facility” means the Materials Recovery Facility at Cold
Canyon Landfill, owned and operated by Waste Connections and located at 2268 Carpenter Canyon
Rd, San Luis Obispo, CA 93401, which has been selected by the Franchisee and approved by the
City.
1.8 "Billings" means any and all statements of charges for services rendered by Franchisee
pursuant to this Agreement.
1.9 “Bin” means a Container with capacity of approximately one (1) to eight (8) cubic yards, with
a hinged lid, and with wheels (where appropriate), that is serviced by a front end-loading
Deleted: ¶
Deleted: as it may be amended
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: related to meeting the diversion goals and
requirements of AB 939.
Deleted: Contractor
Deleted: Contractor
Deleted: <#>"
Deleted: <#>California Integrated Waste
Management Act of 1989" means Public Resources
Code, 40,000 et. seq.¶
¶
Page 636 of 984
Recycling Services Agreement
3
Deleted: Residential
and/or rear-end loading Collection vehicle, including Bins with Compactors attached to
increase the capacity of the Bin.
1.10 "Bulky Item(s)” or “Bulky Waste” means discarded, large household appliances, furniture,
tires, carpets, mattresses, and similar large items which require special handling due to their
size, but can be Collected without the assistance of special loading equipment (such as
forklifts or cranes) and without violating vehicle load limits. It does not include abandoned
automobiles.
1.11 “Business Days” mean days during which the City offices are open to do business with the
public.
1.12 “California Code of Regulations” or “CCR” means the State of California Code of
Regulations. CCR references in this Agreement are preceded with a number that refers to the
relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR).
1.13 “CalRecycle” means California's Department of Resources Recycling and Recover y.
1.14 “Cardboard” means corrugated fiberboard consisting of a fluted corrugated sheet and one (1) or
two (2) flat linerboards, as is often used in the manufacture of shipping containers and corrugated
boxes. Cardboard is a subset of Recyclable Materials.
1.15 “Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or
semi-automated Collection vehicle. A Cart has capacity of 20, 35, 64 or 96 gallons (or similar
volumes).
1.16 "City" means the City of San Luis Obispo, a Charter Municipal Corporation, and all the
territory lying within the municipal boundaries of the City as presently existing or as such
boundaries may be modified during the term, acting through the City Council or the City
Manager. The City may designate responsibilities to one or more third parties, in writing,
between the City Manager and the designee.
1.17 "Collect" or "Collection" (or any variation thereof) means to take physical possession, Transport, and
remove Discarded Materials and other material at the place of generation in the City.“Commercial”
shall mean of, from, or pertaining to non-Residential Premises where business activity is conducted,
including, but not limited to, retail sales, services, wholesale operations, manufacturing, and industrial
operations, but excluding businesses conducted upon Residential property which are permitted under
applicable zoning regulations and are not the primary use of the property.
1.18 "Commercially Generated Recyclable Materials" means Recyclable Materials generated at commercial
and/or industrial property and separated by the Waste Generator for Collection and which are excluded
from the scope of this Agreement as described in Article 4, Scope of Agreement.
1.19 “Compactor” means a mechanical apparatus that compresses materials together with the Container that
holds the compressed materials or the Container that holds the compressed materials if it is detached
from the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic yard Bin
Compactors serviced by front-end loader Collection vehicles and ten (10) to fifty (50) cubic yard Drop
Box Compactors serviced by Roll-Off Collection vehicles.
1.20 “Complaint” shall mean each written or orally communicated statement made by any Person, whether
to City or Franchisee, alleging: (1) non-performance, or deficiencies in Franchisee’s performance of its
duties under this Agreement; (2) a violation by Franchisee of this Agreement; or, (3) an SB 1383 Non-
Compliance Complaint as required under 14 CCR Section 18995.3.
Deleted: ¶
Deleted: transport
Deleted: Recyclable
Deleted: within
Deleted: from
Deleted: <#>"Container" means any bin, vessel,
can or receptacle used for Collection and storing
Recyclable Materials before removal.¶
¶
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Page 637 of 984
Recycling Services Agreement
4
Deleted: Residential
1.21 “Compostable Plastic(s)” means plastic materials that meet the ASTM D6400 standard for
Compostability.
1.22 “Compost” (or any variation thereof) includes a controlled biological decomposition of Organic
Materials yielding a safe and nuisance free Compost product.
1.23 "Construction and Demolition Debris" or “C&D” means used or discarded construction
materials removed from a Premises during the construction, repair, demolition, or renovation
of a structure.
1.24 "Container" means Bins, Carts, Compactors, and franchise Roll-Offs.
1.25 "Franchisee" means San Luis Garbage Company, a corporation organized and operating
under the laws of the State of California, and its officers, directors, employees, agents,
companies, related-parties, Affiliates, and Subcontractors where applicable.
1.26 “County” means the County of San Luis Obispo, a political subdivision of the State of California.
1.27 “Customer” means the Person whom Franchisee submits its billing invoice to and collects payment
from for Collection services provided to a Premises. The Customer may be either the Occupant or
Owner of the Premises.
1.28 “Customer Notice” means the Franchisee’s notice to Customer(s) as described in Section 5.4.
1.29 "Designated Collection Location" means the place where the Franchisee or an authorized Recycling
agent or a Solid Waste Collector has contracted with either the City or a private entity to Collect Solid
Waste.
1.30 “Designated Disposal Facility” means the landfill or Transfer Station, selected by City where
Processing Residue under this Agreement is sent for final Disposal. The Designated Disposal Facility is
subject to the City's right of direction. The Designated Disposal Facility is the Cold Canyon Landfill
owned and operated by Waste Connections and located at 2268 Carpenter Canyon Rd, San Luis
Obispo, CA 93401.
1.31 “Designated Waste” means non-Hazardous Waste which may pose special Disposal problems because
of its potential to contaminate the environment, and which may be Disposed of only in Class II
Disposal sites or Class III Disposal sites pursuant to a variance issued by the California Department of
Health Services. Designated Waste consists of those substances classified as Designated Waste by the
State, in California Code of Regulations Title 23, Section 2522 as may be amended from time to time.
1.32 “Discarded Materials” means Recyclable Materials, Organic Materials, and Solid Waste placed by a
Generator in a receptacle and/or at a location for the purposes of Collection, excluding Excluded
Waste.
1.33 “Disposal Facility” means a landfill, or other Facility for ultimate Disposal of Solid Waste.
1.34 “Dispose” or “Disposal” (or any variation thereof) means the final disposition of Solid Waste or
Processing Residue at a Disposal Facility.
1.35 “Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from Disposal
at landfill or transformation facilities, (including facilities using incineration, pyrolysis, distillation,
Deleted: Contractor
Deleted: and subcontractors
Deleted:
Deleted: Contractor
Deleted: Contractor
Page 638 of 984
Recycling Services Agreement
5
Deleted: Residential
gasification, or biological conversion methods) through source reduction, reuse, Recycling,
Composting, anaerobic digestion, or other method of Processing, subsequent to the provisions of AB
939. Diversion is a broad concept that is to be inclusive of material handling and Processing changes
that may occur over the Term including, but not limited to, changes in standard industry practice or
implementation of innovative (but not necessarily fully proven) techniques or technology that reduce
Disposal risk, decrease costs and/or are for other reasons deemed desirable by the City.
1.36 “Dwelling Unit” means any individual living unit in a; Single-Family Dwelling Unit or Multi-Family
Dwelling Unit or building, a mobile home, or a motor home located on a permanent site intended for,
or capable of being utilized for, Residential living other than a Hotel or Motel.
1.37 “Effective Date” means the date on which the latter of the two Parties signs this Agreement, as
specified in Section 2.2 of this Agreement.
1.38 "Environmental Laws" means all federal and state statutes, county, local and City ordinances and
regulations concerning public health, safety and the environment including, by way of example and not
limitation, the comprehensive Environmental Response, Compensation and Liability Act of 1980, 42
USC 9601 et seq.; the Resource Conservation and Recovery Act, 42 USC 6902 et seq.; the Federal
Clean Water Act, 33 USC 1251 et seq.; the Toxic Substances Control Act, 15 USC 1601 et seq.; the
Occupational Safety and Health Act, 29 USC 651 et seq.; the California Hazardous Waste Control Act,
California Health and Safety Code 25100 et seq.; the California Toxic Substances Account Act,
California Health and Safety Code 25300 et seq.; the Safe Drinking Water and Toxic Enforcement Act,
California Health and Safety Code 25249.5 et seq.; as currently in force or as hereafter amended, and
all rules and regulations promulgated there under.
1.39 “Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated
Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material, waste
that Franchisee reasonably believes would, as a result of or upon Disposal, be a violation of local, State
or Federal law, regulation or ordinance, including land use restrictions or conditions, waste that cannot
be Disposed of in Class III landfills, waste that in Franchisee’s reasonable opinion would present a
significant risk to human health or the environment, cause a nuisance or otherwise create or expose
Franchisee or City to potential liability; but not including de minimis volumes or concentrat ions of
waste of a type and amount normally found in Residential Solid Waste after implementation of
programs for the safe Collection, Recycling, treatment, and Disposal of batteries and paint in
compliance with Sections 41500 and 41802 of the California Public Resources Code.
1.40 "Facility" means any plant or site utilized by Franchisee (or its Subcontractor) for the purposes of
performing the duties to fulfill this Agreement, including Transfer, Processing, or Disposal of
Discarded Materials Collected in the City.
1.41 “Federal” means belonging to or pertaining to the Federal government of the United States .
1.42 "Fiscal Year" means the period commencing January 1 and concluding December 31 for Franchisee.
For City it means the period commencing July 1 of one year and concluding June 30 of the
subsequent year.
1.43 “Food Scraps" means those Discarded Materials that will decompose and/or putrefy including: (i) all
kitchen and table Food Waste; (ii) animal or vegetable waste that is generated during or results from
the storage, preparation, cooking or handling of food stuffs; (iii) fruit waste, grain waste, dairy waste,
meat, and fish waste; and, (iv) vegetable trimmings, houseplant trimmings and other Compostable
Organic Waste common to the occupancy of Residential dwellings. Food Scraps are a subset of Food
Waste.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: , owned or leased and maintained and/or
operated or used…
Deleted: Contractor
Deleted: Contractor
Formatted: Indent: Left: 0.58", No bullets or
numbering
Deleted: ¶
Page 639 of 984
Recycling Services Agreement
6
Deleted: Residential
1.44 “Food-Soiled Paper” means Compostable paper material that has come in contact with Food Scraps
or liquid, such as, but not limited to, Compostable paper plates, napkins, and pizza boxes. Food -
Soiled Paper is a subset of Food Waste.
1.45 "Food Waste" means Source Separated Food Scraps and Food-Soiled Paper. Food Waste is a subset
of Organic Materials.
1.46 “Franchise Fee” means the fee paid by Franchisee to the City as described in Article 7.
1.47 “Generator” or “Waste Generator” means any Person whose act or process produces Solid Wast e as
defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to
regulation.
1.48 "Green Waste" means those Discarded Materials that will decompose and/or putrefy, including, but
not limited to, green trimmings, tree trimmings, grass cuttings, weeds, dead plants, pruning’s, leaves,
branches, brush, dead trees, small pieces of untreated and unpainted wood, and other types of
Organic Waste resulting from normal yard and landscaping maintenance that may be specified in
City Legislation for Collection and Processing as Organic Materials under this Agreement. Green
Waste does not include items herein defined as Excluded Waste. Green Waste is a subset of Organic
Materials. Green Waste placed in Organic Materials for Collection may not exceed six (6) inches in
diameter.
1.49 "Hazardous Waste" means any discarded material or mixture of materials, which is toxic, corrosive,
flammable, radioactive or which, because of its quantity, concentration, physical, chemical or
infectious characteristics may do harm to either humans, animals or the environment, or as defined in
Article 2, Chapter 6.5 25117 of the Health and Safety Code and Public Resources Code 40141.
1.50 “Holidays” are defined as New Year’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day.
1.51 “Liquidated Damages” means the amounts due by Franchisee for failure to meet specific quantifiable
standards of performance as described in Article 12.
1.52 "Materials Recovery Facility" means a permitted Facility where Discarded Materials are sorted or
separated for the purposes of Recycling, Composting, Processing, or reuse.
1.53 "Multifamily Dwelling Unit" or “Multi-Family” means, notwithstanding any contrary definition in the
City Municipal Code, any Premises, other than a Single Family Dwelling Unit, used for residential
purposes, irrespective of whether residence therein is transient, temporary or permanent, including
such Premises when combined in the same building with Commercial establishments, that receive
centralized, shared, Collection service for all units on the Premises which are billed to one (1)
Customer at one (1) address. Customers residing in Townhouses, mobile homes, condominiums, or
other structures with five (5) or more Dwelling Units who receive centralized, shared, Collection
service for all units on the Premises which are billed to one (1) Customer at one (1) address shall be
considered Multi-Family.
1.54 “Occupant” means the Person who occupies a Premises.
1.55 “Organic Materials” means Green Waste and Food Waste, individually or collectively. No Discarded
Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable
Materials and Solid Waste. Organic Materials are a subset of Organic Waste.
Deleted: Contractor
Deleted: prunings
Deleted: Contractor
Deleted: Solid Waste or Recyclable
Deleted: means
Formatted: Indent: Left: 0.58", No bullets or
numbering
Deleted: ¶
¶
Page 640 of 984
Recycling Services Agreement
7
Deleted: Residential
1.56 “Organic Waste” means wastes containing material originated from living organisms and their
metabolic waste products including, but not limited to, food, Yard Trimmings, lumber, wood, paper
products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined
in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section
18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
1.57 "Owner" means the person holding the legal title to the real property constituting the Premises to
which solid waste collection service is to be provided under this Agreement.
1.58 “Party” or “Parties” refers to the City and Franchisee, individually or together.
1.59 "Person" means any individual, firm, association, organization, partnership, corporation, business
trust, joint venture, the United States, the State of California, the County of San Luis Obispo, local
agencies, cities and special purpose districts.
1.60 "Premises" means any land or building in the City where Solid Waste is generated or
accumulated.
1.61 “Process” or “Processing” means to prepare, treat, or convert through some special method.
1.62 “Processing Facility” means any plant or site used for the purpose of sorting, cleansing,
treating or reconstituting Recyclable Materials, or Reusable Materials for the purpose of
making such material available for Recycling or reuse or the Facility for th e Processing
and/or Composting of Organic Materials.
1.63 “Prohibited Container Contaminants” means the following: (i) Discarded Materials placed in
the Recyclable Materials Container that are not identified as acceptable Recyclable Materials
for the City’s Collection program; (ii) Discarded Materials placed in the Organic Materials
Container that are not identified as acceptable Organic Materials for the City’s Collection
program; (iii) Discarded Materials placed in the Solid Waste Container that are acceptabl e
Recyclable Materials and/or Organic Materials to be placed in the City’s Recyclable
Materials or Organic Materials Containers or otherwise managed under the City’s Collection
program; and, (iv) Excluded Waste placed in any Container.
1.64 "Recyclable Materials" means residential by-products or discards of economic value set aside, handled,
packaged or offered for Collection in a manner different from Solid Waste. Including, but not limited
to, aluminum, newspaper, clear and colored glass, tin and bi -metal, High density Polyethylene (HDPE),
Polyethylene Terephthalate (PET), cardboard, chipboard, and mixed paper.
1.65 "Recycling" means the Process of sorting, cleansing, treating, and reconstituting at a Recyclable
Materials Processing Facility, materials that would otherwise be Disposed of at a landfill for the
purpose of returning them to the economy in the form of raw materials for new, reused, or
reconstituted products. Recycling includes Processes deemed to constitute a reduction of landfill
Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. The Collection, Transfer,
Transportation or Disposal of Recyclable Materials not intended for, or capable of, reuse is not
Recycling. Recycling does not include the use of Recyclable Materials for conversion to energy ,
gasification, or transformation as defined in Public Resources Code Section 40201.
1.66 "Related Party Entity" means any Affiliate which has financial transactions with Franchisee.
1.67 “Residential” shall mean of, from, or pertaining to a Single-Family Premises or Multi-Family Premises
Deleted: Contractor
Deleted: process
Deleted: separating for Collection, Collecting
Deleted: /or
Deleted: which
Deleted: discarded without receiving compensation or
Deleted: transfer, transportation or disposal
Deleted: ·
Deleted: Contractor
Deleted: <#>"Single Family Dwelling Unit" means
each Premises used for or designated as a single family
residential dwelling, including each unit of a duplex or
triplex in all cases in which there is separate or individual
Solid Waste Collection services.¶
¶
"Solid Waste" means all putrescible and non-putrescible
refuse, garbage, yard waste, construction and demolition
debris, rubbish, and Recyclable Materials, and as
otherwise defined in Public Resources Code 40191.¶
¶
Page 641 of 984
Recycling Services Agreement
8
Deleted: Residential
including Single-Family homes, apartments, condominiums, Townhouse complexes, mobile home parks,
and cooperative apartments.
1.68 “Residue” means those materials which, after Processing, are Disposed rather than Recycled due to
either the lack of markets for materials or the inability of the Processing Facility to capture and recover
the materials.
1.69 “Reusable Materials” means items that are capable of being used again after minimal Processing.
Reusable Materials may be Collected Source Separated or recovered through a Processing Facility.
1.70 “Roll-Off” means an open-top or lidded Container with a capacity of seven (7) to forty (40) cubic yards
that is serviced by a franchise Roll-Off Collection vehicle.
1.71 “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which
added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added
Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Re sources Code,
establishing methane emissions reduction targets in a statewide effort to reduce emissions of short -lived
climate pollutants as amended, supplemented, superseded, and replaced from time to time.
1.72 For the purposes of this Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants
(SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted on November 3,
2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and
27 CCR.
1.73 “SB 1383 Qualified Renewable Natural Gas” or “SB 1383 RNG” means SB 1383 qualified gas derived
from Organic Waste that has been Diverted from a landfill and Processed at an in -vessel digestion
Facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise
defined in 14 CCR Section 18982(a)(62).
1.74 “Self-Haul” or “Self-Hauler” means a Person who hauls Discarded Materials, recovered material, or any
other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauler
also includes a Person who back-hauls waste, as defined in 14 CCR Section 18982(a)(66)(A).
1.75 “Service Level” refers to the size of a Customer’s Container and the frequency of Collection service.
1.76 "Single Family Dwelling Unit" or “Single-Family” or “SFD” means, notwithstanding any contrary
definition in the City Municipal Code, any detached or attached house or residence designed or used
for occupancy by one (1) family, provided that Collection service feasibly can be provided to such
Premises as an independent unit, and the Owner or Occupant of such independent unit is billed directly
for the Collection service. Single-Family includes Townhouses that maintain individual collection
service regardless of whether each unit is separately billed for their specific Service Level. Single-
Family also includes duplex, tri-plex, or four-plex Residential structures regardless of whether each
unit maintains individual collection service or is separately billed for their specific Se rvice Level.
1.77 "Solid Waste" means Solid Waste as defined in California Public Resources Code, Division 30, Part 1,
Chapter 2, §40191 and regulations promulgated thereunder. Excluded from the definition of Solid
Waste are Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic
Materials, and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may
include de minimis volumes or concentrations of waste of a type and amount normally found in
Residential Solid Waste after implementation of programs for the safe Collection, Recycling,
treatment, and Disposal of Household Hazardous Waste in compliance with Section 41500 and 41802
of the California Public Resources Code as may be amended from time to time. Solid Waste includes
Page 642 of 984
Recycling Services Agreement
9
Deleted: Residential
salvageable materials only when such materials are included for Collection in a Solid Waste Container
not Source Separated from Solid Waste at the site of generation.
1.78 “Source Separated” means the segregation, by the Generator, of materials designated for
separate Collection for some form of Recycling, Composting, recovery, or reuse.
1.79 “State” means the State of California.
1.80 “Subcontractor” means a party who has entered into a contract, express or implied, with the
Franchisee for the performance of an act that is necessary for the Franchisee’s fulfillment of its
obligations for providing service under this Agreement. Vendors providing materials and
supplies to Franchisee shall not be considered Subcontractors.
1.81 "Term" means the term of this Agreement, including extension periods if granted, as provided
for in Article 3.
1.82 “Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000)
standard pounds.
1.83 “Townhouse” means an attached or semi-attached Dwelling Unit within a group of attached or
semi-attached Dwelling Units. A Townhouse shall be considered a Single-Family Dwelling
Unit if each unit maintains individual Collection service subscription. A Townhouse shall be
considered a Multi-Family Dwelling Unit if the Premise receives centralized, shared,
Collection service for all units on the Premise. These shall be the designations regardless of
whether the Premises are billed individually or through a central account (e.g., homeowner
association, property manager).
1.84 “Transfer” means the act of transferring the materials Collected by Franchisee in its route
vehicles into larger vehicles for Transport to other facilities for the purpose of Recycling or
Disposing of such materials.
1.85 "Transfer Station" includes those facilities used to receive solid wastes, temporarily store, separate,
convert, or otherwise process the materials in the solid wastes, or to transfer the solid wastes directly
from smaller to larger vehicles for transport and those facilities used for transformations.
1.86 “Transport” or “Transportation” means the act of conveying Collected materials from o ne location to
another.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
·
Deleted: <#>"Waste Generator" means any Person as
defined by the Public Resources Code, whose act or
process produces Solid Waste as defined in the Public
Resources Code, or whose act first causes Solid Waste to
become subject to regulation.¶
¶
Page 643 of 984
Recycling Services Agreement
10
Deleted: Residential
ARTICLE 2.
GRANT AND ACCEPTANCE OF AGREEMENT
2.1 Grant and Acceptance of Agreement
Subject to Section 3.4 (Conditions to the Effectiveness of Agreement), City hereby grants to Franchisee
an exclusive franchise to Collect, Process and market Recyclable Materials accumulating at Single
Family, Multi-Family, and Commercial Premises in the City that are offered for Collection to
Franchisee in accordance with this Agreement. Franchisee hereby accepts the Agreement on the terms
and conditions set forth in this Agreement.
2.2 Effective Date
The effective date of this Agreement shall be May ____, 2022.
2. Term of Agreement
The term of this Agreement shall commence at 12:01 a.m., and expire at midnight August 20, 2025,
subject to extension as provided in Section 2.4 (Option to Extend).
In the event of a change of law or technology which would render the Collection, processing and
marketing services to be implemented under this Agreement obsolete, unnecessary, impractical,
undesirable, or illegal, the City reserves the right to terminate this Agreement upon the giving of a six
(6) month prior written notice of City's election to so terminate this Agreement. It is understood
between Franchisee and City that this Agreement is motivated by the passage of AB 939 and SB 1383,
and that subsequent legislation could make this Agreement unnecessary and/or adverse to the best
interests of the City. In particular, City and Franchisee acknowledge the possibility of future
legislation changing the requirements of AB 939 and SB 1383, and/or requiring a coordination of the
collection of Solid Waste and Recyclable Materials.
2. Option to Extend
The City shall have the sole option to extend this Agreement up to 24 months in periods of a least
twelve (12) months each. If City elects to exercise this option, it shall give written notice not later
than one hundred eighty (180) calendar days prior to the initial termination date, or, if one extension
has been exercised, one hundred eighty (180) calendar days prior to the extended termination date.
2. Conditions to Effectiveness of Agreement
The obligation of City to permit this Agreement to become effective and to perform its undertakings
provided for in this Agreement is subject to the satisfaction of each and all of the conditions set out
below, each of which may be waived in whole or in party by City.
A. Accuracy of Representations. The representations and warranties made by Franchisee
throughout this Agreement are accurate, true and correct on and as of the effective date
of this Agreement.
B. Absence of Litigation. There is no litigation pending in any court challenging the
award of this Agreement to Franchisee or the execution of this Agreement or seeking to
restrain or enjoin its performance.
C. Furnishing of Insurance and Bonds. Franchisee has furnished evidence of the
insurance and bonds required by Article 10, Indemnification, insurance and
Deleted: ¶
Deleted: of
Deleted: Contractor
Deleted: collect, process
Deleted: and
Deleted: family dwelling units
Deleted: Contractor
Deleted: ¶
¶
Deleted: Contractor
Deleted: August 20, 2010
Deleted: 32
Deleted: be fifteen (15) years
Deleted: ing
Deleted: August 20,¶
· 2010,
Deleted: expiring
Deleted: Contractor
Deleted: Contractor
Deleted: 43
Deleted: 54
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 644 of 984
Recycling Services Agreement
11
Deleted: Residential
Bond.
D. Effectiveness of City Council Action. The City's Ordinance No. ____, approving this
Agreement, shall have become effective pursuant to California law on or prior to the
effective date of this Agreement.
Deleted: ¶
Deleted: 1551
Page 645 of 984
Recycling Services Agreement
12
Deleted: Residential
ARTICLE 3.
TERMS OF AGREEMENT
3.1 Franchisee Status
Franchisee is duly organized, validly existing and in good standing under the laws of the State of
California and has the financial ability to perform its obligations set forth in this Agreement.
Additionally, the Franchisee has no suits or threatened suits which would impair the financial ability of
the Franchisee to perform its obligations under this Agreement, and that the entering into this
Agreement by Franchisee will not in any way constitute a breach of any other agreements entered into
by Franchisee with other parties or constitute a violation of any law.
3.2 Franchisee Authorization
Franchisee has the authority to enter into and perform its obligations under this Agreement. The Board
of Directors of Franchisee (or the shareholders, if necessary) have taken all actions required by law, its
articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The
persons signing this Agreement on behalf of Franchisee have the authority to do so.
3.3 Compliance with Laws and Regulations
Franchisee shall comply with all existing and future City, county, state, and federal laws, including all
Environmental Laws, with particular note of SB 1383, Article X of the City Charter and Chapters
8.04 and 8.05 of the Municipal Code.
3.4 Serve Without Interruption
Franchisee shall Collect, Process, and market Commercial and Residential Recyclable Materials
throughout the Term of this Agreement without interruption except as described in Section 12.4.
3.5 Permits and Licenses
Franchisee shall procure, and keep in full force and affect, all permits and licenses, pay all charges and
fees, and give all notices as necessary.
3.6 Preservation of City Property
Franchisee shall pay to the City, on demand, the cost of all repairs to public property made
necessary by any of the operations of Franchisee under this Agreement.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ,
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Chapter
Deleted: Contractor
Deleted: process
Deleted: residential
Deleted: term
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 646 of 984
Recycling Services Agreement
13
Deleted: Residential
ARTICLE 4:
SCOPE OF AGREEMENT
4.1 Scope of Agreement
Subject to Section 4.2 (Limitations to Scope), the Agreement granted to Franchisee shall be exclusive for
Recyclable Materials, except where otherwise precluded by Applicable Law.
4.2 Limitations to Scope
The Agreement for the Collection, Transportation, Processing, and marketing of Recyclable Materials
granted to Franchisee shall be exclusive except as to the following categories of Recyclable Materials
listed in this Section. The granting of this Agreement shall not preclude the categories of Recyclable
Materials listed below from being delivered to and Collected and Transported by others provided that
nothing in this Agreement is intended to or shall be construed to excuse any Person from obtaining any
authorization from City which is otherwise required by law:
A. Source Separated Recyclable Materials separated from other Discarded Materials by the Waste
Generator and for which Waste Generator sells or is otherwise compensated by a collector in a
manner resulting in a net payment to the Waste Generator for such Recycling or related services.
B. Source Separated Recyclable Materials donated to a charitable, environmental, or other non-
profit organization.
C. Source Separated Recyclable Materials which are separated at any Premises and which are Self-
Hauled by the Owner or Occupant of such Premises (or by their employee) to a Facility.
D. Containers delivered for Recycling under the California Beverage Container Recycling Litter
Reduction Act, 14500, et seq. California Public Resources Code; and,
Franchisee acknowledges and agrees that City may permit other Persons beside Franchisee to Collect any
or all types of the Recyclable Materials listed in this Section 4.2, without seeking or obtaining approval of
Franchisee under this Agreement.
This Agreement to Collect, Transport, Process, and market Recyclable Materials shall be interpreted to
be consistent with Applicable Law, now and during the Term of the Agreement, and the scope of this
Agreement shall be limited by current and developing Applicable Law with regard to Recyclable
Materials handling, Recyclable Materials flow control, and related doctrines. In the event that future
interpretations of current law, enactment or developing legal trends limit the ability of the City to
lawfully provide for the scope of services as specifically set forth herein, Franchisee agrees that the
scope of the Agreement will be limited to those services and materials which may be lawfully provided
for under this Agreement, and that the City shall not be responsible for any lost profits and/or damages
claimed by the Franchisee as a result of changes in law.
4.3 Administration of Agreement
The City Manager shall administer this Agreement and the City's Utilities Director shall supervise
Franchisee compliance with the Agreement terms and conditions.
4.4 Use of City Streets
Such grant of Agreement shall give Franchisee the right and privilege to operate Recycling Collection
vehicles and equipment on such streets, public ways, rights-of-way, or easements of the City.
Deleted: Contractor
Deleted: residential
Deleted: law
Deleted: processing
Deleted: Contractor
Deleted: transported
Deleted: person
Deleted: ¶
Deleted: Solid Waste
Deleted: ¶
Deleted: ¶
Deleted: transported
Deleted: owner
Deleted: occupant
Deleted: his/her full-time
Deleted: ;
Deleted: ¶
Deleted: ¶
Recyclable Materials generated at non-residential premises
are also excluded from this Agreement.¶
¶
Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: transport, process
Deleted: state and federal laws
Deleted: term
Deleted: state and federal laws
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 647 of 984
Recycling Services Agreement
14
Deleted: Residential
4.5 Annexation
Franchisee shall automatically extend all services herein described to any area annexed to the City,
except that the City may permit a firm franchised by the County of San Luis Obispo before the
annexation to continue service the area for a period not less than five (5) years.
4.6 City Right to Request Changes
4.6.1 General
City may request Franchisee to perform additional services (including new Diversion programs, billing
services, etc.) or modify the manner in which it performs existing services. Pilot programs and innovative
services which may entail new Collection methods, different kinds of services and/or new requirements
for Waste Generators are included among the kinds of changes which City may request. Franchisee shall
present, within thirty (30) calendar days of a request to do so by City, a proposal to provide additional or
expanded Diversion services pursuant to the terms of Section 4.6.2. Franchisee shall be entitled to an
adjustment in its compensation in accordance with Section 8.8 (Extraordinary Adjustments), for
providing such additional or modified services.
4.6.2 New Diversion Programs
Franchisee shall present, within thirty (30) calendar days of a request to do so by City, a proposal. to
provide additional or expanded Diversion services. The proposal shall contain a complete description of
the following:
• Collection methodology to be employed (equipment, workforce, etc.)
• Equipment to be utilized (vehicle number, types, capacity, age, etc.).
• Labor requirements (number of employees by classification).
• Type of Containers to be utilized.
• Provision for program publicity/education/marketing.A projection of the financial results of the
program's operations for the remaining Term of the Agreement in a balance sheet and operating
statement format including documentation of the key assumptions underlying the projections
and the support for those assumptions.
• Processing Facility to be utilized.
4.6.3 City's Right to Acquire Services
Franchisee acknowledges and agrees that City may permit other Persons besides Franchisee to provide
additional Recyclable Materials Collection, Recycling, or Processing services not otherwise
contemplated under Section 4.6 (City's Right to Request Changes). If pursuant to Section 4.6.2 (New
Diversion Programs), Franchisee and City cannot agree on terms and conditions of such services in
ninety (90) calendar days from the date when City first requests a proposal from Franchisee to perform
such services, Franchisee acknowledges and agrees that City may permit Persons other than Franchisee
to provide such services.
4.6.4 Implementing new Services
If I) Franchisee is capable of performing or developing the ability to perform a requested service or
modifying an existing service; 2) City has agreed to have Franchisee provide such additional service in
accordance with Franchisee's proposal; and 3) an adjustment in Franchisee's compensation has been
requested but has not been agreed upon or implemented within 90 calendar days, City may permit a
third party to perform the request or modified existing service, and Franchisee shall not be obligated, to
perform such additional or modified service pursuant to the terms of Section 4.6.3.
Deleted: Contractor
Deleted: Contractor
Deleted: diversion
Deleted: Contractor
Deleted: diversion
Deleted: Contractor
Deleted: Contractor
Deleted: diversion
Deleted: manpower
Deleted: ¶
Deleted: Materials processing facility
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 648 of 984
Recycling Services Agreement
15
Deleted: Residential
4.7 Ownership of Recyclable Materials
Once Recyclable Materials are placed in Containers and properly presented for Collection, ownership
and the right to possession shall transfer directly from the Generator to Franchisee by operation of this
Agreement. Franchisee is hereby granted the right to retain, Recycle, Process, reuse, and otherwise use
such Recyclable Materials or any part thereof, in any lawful fashion or for any lawful purpose
consistent with the hierarchy and goals of AB 939, AB 341, SB 1383, and other Applicable Law.
Subject to the provisions of this Agreement, Franchisee shall have the right to retain any benefit
resulting from its right to retain, Recycle, Process or reuse the Recyclable Materials which it Collects.
Recyclable Materials or any part thereof, which are delivered to a Facility (Processing Facility,
transformation Facility, Transfer Station, or Material Recovery Facility) shall become the property of
the owner or operator of the Facility(ies) once deposited there by Franchisee. The City may obtain
ownership or possession of Recyclable Materials placed for Collection upon written notice of its intent
to do so, however, nothing in this Agreement shall be construed as giving rise to any inference that City
has such ownership or possession unless such written notice has been given ·to Franchisee.
Deleted: Contractor
Deleted: Contractor
Deleted: recycle, process
Deleted: .
Deleted: Contractor
Deleted: ¶
Deleted: recycle, process
Deleted: processing
Deleted: transfer station
Deleted: Contractor
Deleted: Contractor
Page 649 of 984
Recycling Services Agreement
16
Deleted: Residential
ARTICLE 5.
DIRECT SERVICES
5.1 General
The work to be done by Franchisee pursuant to this Agreement shall include the furnishing of all
labor, supervision, equipment, materials, supplies, and all other items necessary to perform the
services required as presented in the Franchisee's proposal incorporated in this document as
Exhibit A. The enumeration of, and specification of requirements for, particular items of labor or
equipment shall not relieve Franchisee of the duty to furnish all others, as may be required,
whether enumerated or not.
The work to be done by Franchisee pursuant to this Agreement shall be accomplished in a
thorough and professional manner so that the residents within the City are provided reliable,
courteous and high-quality Recycling Collection service at all times. The enumeration of, and
specification of requirements for, particular aspects of service quality shall not relieve Franchisee
of the duty of accomplishing all other aspects in the manner provided in this Section, whether
such aspects are enumerated elsewhere in the Agreement or not.
5.2 Recyclable Materials Collection Services
A. Three-Container Collection System. Franchisee shall provide Recyclable Materials Collection
service as part of a three-Container Collection program for the separate Collection of Source
Separated Recyclable Materials, Source Separated Organic Materials, and Solid Waste, in
accordance with the applicable Franchise Agreement(s) between the Franchisee and City for each
Discarded Material Type. Franchisee shall ensure that the Recyclable Materials services provided
under this Agreement are at all times performed in accordance with Applicable Law, including
SB 1383, and operationally align with the Collection of Solid Waste and Organic Materials in
order to operate a successful three-Container Collection system.
Single-Family Customers with a disability shall have the option of placing their Containers
near their dwelling, visible from the curb, and the Franchisee will Collect their Containers at
this location and return Container to same location. Franchisee will notify residents annually,
beginning within thirty (30) calendar days of execution of this Agreement, of this Collection
option. To be eligible for this Collection option, residents must present proof of their disability
to the Franchisee.
B. Collection. Franchisee shall Collect and remove all Recyclable Materials placed in or adjacent to
Franchisee-provided Containers at the Designated Collection Locations for Single Family, Multi-
Family, and Commercial Customers; and Transport the Recyclable Materials to the Approved
Recyclable Materials Processing Facility.
C. Schedule. Franchisee shall provide Recycling Materials Collection for all Customers not less
than once each week on the same day of the week as Solid Waste Collection service.
Franchisee will notify Recyclable Materials Customers of Holiday Collection schedules. Should
the Solid Waste Collection Day change, Franchisee shall re-route Collections within sixty (60)
calendar days of the notification by the change in Solid Waste Collection days to provide same
day service.
Deleted: Contractor
Deleted: Contractor
Commented [CT1]: We need to ask Christine about this
ASAP. If we are turning Exhibit B into A I need to know
ASAP for the Resolution
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Recycling
Deleted: Contractor
Deleted: ,
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: designated
Deleted: locations
Deleted: Dwelling Units and Multifamily Dwelling
Units…
Deleted: Contractor
Deleted: Organic
Deleted: Recyclable Material Collection shall be a
minimum of once each week on the same day of the week
as Solid Waste Collection service. Contractor
Deleted: Recycling customers
Deleted: holiday
Deleted: collection
Deleted: day
Deleted: Contractor
Deleted: collection
Page 650 of 984
Recycling Services Agreement
17
Deleted: Residential
5.3 Materials To Be Collected
Franchisee shall Collect all types of Source Separated Recyclable Materials, as defined in Section
1, that are properly set out for Collection. Recyclable Materials to be Collected are to include but
not limited to: newspaper, aluminum, tin and bi- metal cans, clear and colored glass containers,
High Density Polyethylene (HDPE), Polyethylene Terephthalate (PET), polystyrene, corrugated
Cardboard, and mixed paper (Including white and colored ledger paper, chipboard, junk mail,
magazines and phone books). Containers shall comply with the requirements of Section 5.6.3.
Materials prohibited for Collection in the Recyclable Materials Containers include: Solid Waste,
Organic Materials, and Excluded Waste.
5.4 Refusal to Provide Collection Services
Franchisee may refuse to Collect Recyclable Materials and shall not be obligated to continue to
provide Recycling Container(s) to any participant in the Recycling program who, after reasonable
warning, fails to properly sort and set out Recyclable Materials. Upon observation of Prohibited
Container Contaminants, Franchisee shall leave a Customer Notice describing the contamination
issue and educating the Customer on proper Source Separation as described in this Section.
Franchisee shall report monthly to City any warning notices issued, in accordance with Exhibit B.
5.4.1 Customer Notices.
A. General. In the event Franchisee does not Collect any item or Container of Discarded
Materials due to a Customer’s non- compliance with rules and regulations for proper set-out
or the presence of Prohibited Container Contaminants, Franchisee shall attach a Customer
Notice, subject to City’s approval, securely to the item or Container specifying the reasons
for courtesy Collection or non-Collection. The Customer Notice shall contain Franchisee’s
name, telephone number, and information described below.
The Customer Notice shall, at a minimum:
1. Inform the Customer of the reason for the courtesy Collection or non-Collection;
and
2. Include the date and time the issue was observed.
3. In addition, upon the identification of Prohibited Container Contaminants in a
Customer’s Container, the Franchisee shall provide the Customer with the
following information in the Customer Notice, or through another form of
communication such as mail, e-mail, text message, or over the phone: Information
on the Customer’s requirement to properly separate materials into the appropriate
Containers, and the accepted and prohibited materials for Collection in each
Container;
4. Inform the Customer of the courtesy collection or non-collection of the
contaminated materials on this occasion with information that the Franchisee may
assess contamination Processing fees and/or may not Collect the Container in the
future; and,
5. Be supported by photographic evidence of the violation(s).
B. Upon identification of Prohibited Container Contaminants. Franchisee shall Collect the
contaminated Recyclable Materials Containers and either Transport the material to the
appropriate Approved Facility for Processing; or, Franchisee may Collect the contaminated
Deleted: Materials to be collectedContractor
Deleted: cardboard
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: contamination
Deleted: Contractor
Deleted: .
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Include
Deleted: Contractor
Deleted: and/or Organic Materials
Deleted: Contractor
Page 651 of 984
Recycling Services Agreement
18
Deleted: Residential
materials with the Solid Waste and Transport the contaminated materials to the Approved
Disposal Facility. A courtesy Collection of contaminated Recyclable Materials where the
materials are sent to the Approved Disposal Facility may be made with a Solid Waste Collection
vehicle, provided that the contaminants may safely and lawfully be Collected as Solid Waste.
C. Communications with Customer. Whenever a Container at the Premises of a Customer is not
Collected, Franchisee shall contact the Customer on the scheduled Collection day by telephone,
email, text message, or other verbal or electronic message to explain why the Container was not
Collected. Whenever a Container is not Collected because of Prohibited Container Contaminants,
a Customer service representative shall contact the Customer to discuss and encourage the
Customer to adopt proper Discarded Materials preparation and separation procedures.
D. Franchisee Return for Collection. Upon request from Customer, Franchisee shall Collect
Containers that received Customer Notices specifying non-Collection within one (1) Working Day
of Customer’s request. Franchisee shall bill Customer for the extra Collection service event
(“extra pick-up”) at the applicable City-approved Rates only if Franchisee notifies Customer of
the premium Rate for this service at the time the request is made by Customer.
E. Assessment of Contamination Processing Fees. If the Franchisee observes twenty percent
(20%) or more Prohibited Container Contaminants and has issued a Customer Notice specifying a
courtesy Collection, the Franchisee may impose a contamination rate approved by the City for that
Customer’s Service Level, if and only if Franchisee has informed the Customer of the potential
for a Processing fee pursuant to this Section. The intent of contamination fees is to provide a
behavioral tool to educate and prevent Customers from placing Source Separated Discarded
Material into the improper designated Container(s). To ensure that assessment of fees are to be
used for the intended purposes and not as a form of revenue generation, after the first issuance of a
Customer Notice for the observance of Prohibited Container Contaminants in one (1) calendar
year, Franchisee may issue a fee of ten (10) dollars. After the second observance of Prohibited
Container Contaminants in the same calendar year, Franchisee may issue a fee of twenty (20)
dollars. After the third observance of Prohibited Container Contaminants in the same calendar
year, Franchisee may issue a fee of thirty (30) dollars. In the fourth and any subsequent
observances of Prohibited Container Contaminants in the same calendar year, Franchisee may
increase the contamination Processing fee by ten (10) dollar increments and may Collect the
contaminated materials with the Solid Waste and Transport the contaminated materials to the
Approved Disposal Facility, provided that the contaminants may safely and lawfully be Collected
as Solid Waste.
F. Suspension of Contamination Processing Fee Program. Franchisee agrees that contamination
fees shall not exceed one percent (1%) of Franchisee’s Gross Receipts in any calendar quarter. In
the event that contamination fees exceed one percent (1%) of Franchisee’s Gross Receipts in any
calendar quarter, the assessment of contamination fees shall be suspended immediately and
indefinitely pending a program assessment by the City and Franchisee. Upon program suspension
or at the request of the City at any time during the Term of the Agreement, City and Franchisee
shall meet and confer regarding the application and effectiveness of contamination fees in
accomplishing the behavior change. If the program is suspended due to excessive revenue
generation, the City may require Franchisee to either: i) modify the program parameters; ii)
modify the amount of the contamination fee; or, iii) return to the City any funds generated by the
contamination fee which exceed one percent (1%) of Franchisee’s Gross Receipts for a given
period of time.
Deleted: or Organic Materials
Deleted: discuss, and
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 652 of 984
Recycling Services Agreement
19
Deleted: Residential
G. City Actions Upon Identification of Prohibited Container Contaminants. The City or its
designee shall perform SB 1383 activities required for the identification of Prohibited Container
Contaminants which includes but is not limited to, record keeping, provision of educational
notices and reporting.
5.5 Marketing and Sale of Recyclable Materials
Franchisee shall be responsible of the marketing and sale of all Recyclable Materials Collected
pursuant to this Agreement. Revenues from the sales of these materials shall be applied to the cost
of service under the Agreement to reduce Franchisee's compensation. Franchisee shall sell all
Recyclable Materials Collected pursuant to this Agreement at not less than fair market value as
described in Article 8, Franchisee's Compensation and Rates.
5.6 Operations
5.6.1 Schedules
To preserve peace and quiet, no Recyclable Materials shall be Collected from or within two- hundred
(200) feet of residential Premises between 6:30 P.M. and 6:30 A.M. on any day and such Recyclable
Materials shall be Collected, Monday through Friday on the same day as Solid Waste collection.
When the regularly scheduled Collection day falls on a holiday, Collection shall take place on the
following regularly scheduled collection day. In the event the Franchisee misses the collection of set
out recyclables, the Franchisee shall collect the missed pickups with one (1) business day of
notification.
5.6.2 Vehicles
A. General. Franchisee shall provide a fleet of Collection vehicles sufficient in number and
capacity to perform the work required by this Agreement and proposed in Exhibit "A" and in
strict accordance with its terms. Franchisee shall have available on Collection days sufficient
back-up vehicles in order to respond to complaints and emergencies. The fleet shall be
maintained according to the requirements of Municipal Code 8.04.030.Renewable Natural Gas
(RNG) Vehicles Under this Agreement, the Franchisee shall make a best effort for all Collection
vehicles to be powered by SB 1383 compliant RNG generated by a local facility or powered by
SB 1383 compliant RNG that is purchased through a wheeling agreement with a party(ies),
provided that the wheeling agreement is for purchase of gas derived from Organic Waste that has
been diverted from a Landfill and Processed at an in-vessel digestion Facility that is permitted or
otherwise authorized by Title 14 of CCR to recover Organic Waste and meets the requirements
of 14 CCR Section 18993.1(h). Upon City’s request, Franchisee shall obtain and provide the City
with a written certification by an authorized representative of the publicly owned treatment
works or the wheeling agreement Franchisee certifying that the in-vessel digestion Facility
produces the SB 1383 compliant RNG consistent with the requirements of 14 CCR Section
18993.1(h). Franchisee shall maintain records of the amount of SB 1383 compliant RNG
purchased and shall report this information in accordance with Exhibit B. Franchisee shall agree
to the City the right to report this SB 1383 compliant RNG usage toward the City’s fulfilment of
its annual recovered Organic Waste product procurement target in accordance with 14 CCR
Section 18993.1.
B. Specifications. All vehicles used by Franchisee in providing Recyclable Materials Collection
services under this Agreement shall comply with all federal, state, and local requirements for
such vehicles as they now exist or may be amended in the future, and be registered with the
California Department of Motor Vehicles. All such vehicles shall have water-tight bodies
designed to prevent leakage, spillage or overflow. All such vehicles shall comply with U.S.
Environmental Protection Agency noise emission regulations and other applicable noise control
Deleted: u
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Commented [CT2]: Crosscheck w/ WC comments and
organics agreement – word missing
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 653 of 984
Recycling Services Agreement
20
Deleted: Residential
regulations.
C. Condition
Franchisee shall maintain all of its properties, facilities, and equipment used in providing service
under this Agreement in a safe, neat, clean and operable condition at all times.
Franchisee shall inspect each vehicle daily to ensure that all equipment is operating properly.
Vehicles which are not operating properly and represent a safety hazard shall be taken out of
service until they are repaired and do operate properly and safely. Franchisee shall perform all
scheduled maintenance functions in accordance with the manufacturer's specifications and
schedule. Franchisee shall keep accurate records of all vehicle maintenance, recorded according
to date and mileage and shall make such records available to City upon request.
Franchisee shall repair, or arrange for the repair of, all of its vehicles and equipment for which
repairs are needed because of accident, breakdown or any other cause so as to maintain all
equipment in a safe and operable condition. Franchisee shall maintain accurate records of repair,
which shall include the date/mileage, nature of repair and the signature of a maintenance
supervisor that the repair has been properly performed.
Franchisee shall arrange all vehicles and other equipment in safe and secure location(s) in
accordance with all applicable zoning regulations.
D. Vehicle Identification. Each truck shall display in a prominent place a sign as required in
Municipal Code section 8.04.090.
E. Operation. Vehicles shall be operated in compliance with the California Vehicle Code, and all
applicable safety and local ordinances. Franchisee shall not load vehicles in excess of the
manufacturer's recommendations or limitations imposed by state or local weight restrictions on
vehicles.
5.6.3 Recyclable Materials Containers
A. General
1. Franchisee shall supply all Customers with Recyclable Materials Containers for Collection of
Recyclable Materials, in accordance with this Section. Franchisee shall use the Franchisee-provided
Collection Containers that are currently located at Customers’ Premises, if applicable. If Customer is
currently utilizing Collection Containers that were not provided by the Franchisee, Franchisee shall
provide Containers from current inventory.
2. Franchisee shall provide Customers (including Single-Family, Multi-Family, Commercial,
and City facility Customers) with new Collection Containers as requested by the Customer to meet a
change in Service Level or to accommodate new Customers within five (5) Business Days of
Franchisee’s first receipt of the Customer request.
3. On and after the Effective Date, any new Containers provided by the Franchisee shall
comply with the Container standards set forth in this Section. All Containers shall display the
Franchisee’s name, logo, telephone number, website, capacity (yards or gallons), and some
identifying inventory or serial number.
4. If an existing Container breaks or is otherwise rendered non-functional on or after the
Effective Date, the Franchisee shall replace the non-functional Container with a Container that
complies with the requirements of this Section. Notwithstanding this Section, the Franchisee is not
required to replace functional Containers, including Containers purchased prior to January 1, 2022,
that do not comply with the color requirements of this Section prior to the end of the useful life of
Deleted: Contractor
Deleted: Contractor
Deleted: ..
Deleted: Contractor
Deleted: · Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: 5.6.3 Recycling Containers¶
Deleted:
Deleted: A.General.¶
1.
Deleted: Contractor
Deleted: each
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: 2.
Deleted: Contractor
Deleted: Contractor
Deleted: 3.
Deleted: Contractor
Deleted: Contractor
Deleted: 4.
Deleted: Contractor
Deleted: color
Deleted: Contractor
Page 654 of 984
Recycling Services Agreement
21
Deleted: Residential
those Containers, or prior to January 1, 2036, whichever comes first.
B. Container Types and Sizes
1. Single-Family Containers. Franchisee shall supply each Single-Family Dwelling Unit with a
Recyclable Materials Container in size consistent with the City approved Recyclable Materials
Collection program.
2. Multi-Family Containers. Franchisee shall supply each Multi-Family complex with
Recyclable Materials Container(s) to adequately service the needs of the Multi-Family Premises.
Franchisee agrees to provide additional appropriate Containers, as required.
3. Commercial Containers. Franchisee shall supply each Commercial Customer with the
Recyclable Materials Container(s) to adequately service the needs of the Premises. Notwithstanding
this Section, Franchisee shall not be required to provide Recyclable Materials Container(s) to a
Commercial Customer that is exempted from Recyclable Materials services by the City or has
demonstrated to the City that it is Diverting Recyclable Materials through subscription with another
City-approved contractor, or other City -approved method, for the duration of the approved
exemption.
C. Container Labels. Containers shall be identified for Recyclable Materials only and clearly labeled in
accordance with this Section.
1. Labels on Existing Containers or Lids. Per the existing Agreement, Franchisee shall ensure a
label on the body or lid of each Container has been provided to a Customer that includes language or
graphic images, or both, that indicate the primary materials accepted and the primary materials
prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container
Contaminants for each Container.
2. Imprinted or In-Mold Labels for New Containers or New Lids. On or before the Effective
Date, Franchisee shall imprint new Container bodies or lids with text or graphic images that indicate
the primary materials accepted and the primary materials prohibited in that Container. Labels shall
clearly indicate items that are Prohibited Container Contaminants for each Container. Prior to
ordering any Containers or lids with in-mold labels, Franchisee shall submit a sample of its proposed
label, proposed location(s) for placement of labels on each type of Container, and its labeling plan to
the City for approval.
D. Container Colors. Recyclable Materials Cart lids shall be blue. Recyclable Materials Bin,
Compactor, and franchise Roll-Off lids or bodies shall be blue. No later than December 31, 2035,
Franchisee shall provide all Customers with Collection Containers that comply with the Container color
requirements specified in this Section or as otherwise specified in 14 CCR Section 18982; 14 CCR,
Division 7, Chapter 12, Article 3; or other Applicable Law.
E. Additional Containers. City and Franchisee acknowledge that from time to time, a Customer may
damage or destroy a Container. City and Franchisee also acknowledge that from time to time Containers
may be stolen from the curb or damaged due to normal use. When notified of such occurrence,
Franchisee shall replace the Container, at no charge to the City or Customer, with Containers that comply
with this Section.
Upon expiration or early termination of Agreement, City may purchase all Containers put into service at
Customer Premises during the Term of the Agreement and shall become property of the City at no cost to
the City if such Containers are fully depreciated. All Containers and Compactors purchased and put into
service at Customer Premises during the Term of the Agreement that have not been fully depreciated
shall be available to the City, at the City’s option, at a cost reflecting the net book value.
Deleted: Contractor
Deleted: Single Family
Deleted: container
Deleted: curbside recycling collection
Formatted ...
Formatted ...
Deleted: Contractor
Formatted ...
Deleted: multi-family
Formatted ...
Formatted ...
Deleted: the appropriate type of container
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Deleted: complex per the solid waste handling location.¶...
Deleted: Contractor
Deleted: Contractor
Deleted: s
Deleted: Contractor
Formatted ...
Deleted: Contractor
Formatted ...
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: customer
Deleted: Contractor
Deleted: Contractor
Deleted: customer
Deleted: ¶
Deleted: F.
Deleted: ”
Page 655 of 984
Recycling Services Agreement
22
Deleted: Residential
5.6.4 Litter Abatement
Franchisee shall use due care to prevent Recyclable Materials from being spilled or scattered during
the Collection or transportation process. If any Recyclable Materials are spilled during Collection,
Franchisee shall promptly clean up all spilled materials. Each collection vehicle shall carry a broom
and shovel at all times for this purpose.
5.6.5 Personnel
A. General. Franchisee shall furnish as presented in Exhibit "A" such qualified
drivers, mechanical, supervisory, clerical, and other personnel as may be
necessary to provide services required by this Agreement in a safe and efficient
manner.
B. Identification. Franchisee shall ensure that while on duty each Collection
worker wears a clean uniform which displays the Franchisee's company name
and the worker's name or identification number.
C. Fees & Gratuities. Franchisee 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 any services performed
under this Agreement except as provided in Article 8 of this Agreement.
D. Training. All drivers shall be trained and qualified in the operation of vehicles
they operate and must possess a valid license, of the appropriate class, issued by
the California Department of Motor Vehicles.
Franchisee shall provide adequate operations, health and safety training, and
Hazardous Waste identification and handling training for all of its employees
who use or operate equipment or who are otherwise directly involved in
Collection or other related operations.
E. Customer Courtesy. Franchisee shall train its employees in customer courtesy,
shall prohibit the use of loud or profane language, and shall instruct Collection
crews to perform the work quietly. Franchisee shall use its best efforts to ensure
that all employees present a neat appearance and conduct themselves in a
courteous mariner. If any employee is found to be discourteous or not to be
performing services in the manner required by this Agreement, Franchisee shall
take all necessary corrective measures. If City has notified Franchisee of a
complaint related to a discourteous or improper behavior, Franchisee will
reassign the employee to duties not entailing contact with the public while
Franchisee is pursuing its investigation and corrective action process.
3 5.7 Recyclable Materials Processing
5.7.1 Receipt of Recyclable Materials
Franchisee shall Transport all Recyclable Materials to the Approved Recyclable Materials
Processing Facility and shall Transfer, Process, and Dispose of Discarded Materials in accordance
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Material
Deleted:
Deleted:
Deleted: Solid Waste
Deleted: Commencing August 6, 2010, the Contractor
Deleted: have in place or have made arrangements for a
Materials Recovery Facility to receive and accept
Deleted: deliveries of
Deleted: generated in
Page 656 of 984
Recycling Services Agreement
23
Deleted: Residential
with this Section 5.7. The Approved Facilities shall comply with the following requirements.
5.7.2 Status of Approved Recyclable Materials Processing Facility
Any Processing Facility used by Franchisee must be designed and constructed in accordance with all
Applicable Law (CEQA, California Code of Regulations, etc). The Processing Facility must have all
permits from Federal, State, regional, County, and City agencies necessary for it to operate as a
Material Recovery Facility and must be in full regulatory compliance with all such permits. The
Approved Recyclable Materials Processing Facility must be authorized to accept, under its existing
permit, and have sufficient uncommitted capacity to accept, all Recyclable Materials delivered to it
by, or on behalf of, the City for the Term of this Agreement. Franchisee shall immediately notify City
of any notice of breach or default received from Approved Recyclable Materials Processing.
Franchisee shall, directly or through similar obligations in its subcontract(s) with facility operators,
keep active all existing permits and approvals necessary for use of the Approved Processing Facility
in compliance with regulatory requirements and Applicable Law. Upon request, Franchisee shall
provide copies of Facility permits and/or notices of violations (obtained from its Processing Facility
Subcontractor if necessary) to City.
5.7.3 Alternative Processing Facility
If Franchisee becomes unable to deliver the City’s Recyclable Materials to the Approved Processing
Facility due to causes within its control and which could have been avoided by the exercise of due
care, the Franchisee shall arrange for it to be accepted at another Processing Facility, in which case
Franchisee shall pay for any increased Transportation costs, any differences in the fees charged at
such Processing Facility, and the fees then in effect under this Agreement.
If Franchisee’s inability to deliver the City’s Recyclable Materials to the Approved Recyclable
Materials Processing Facility is not due to causes within its control or which could have been avoided
by the exercise of due care, then Franchisee shall propose alternative Processing Facilities including
all related costs to the City and City shall select the alternative to be used. Within forty-eight (48)
hours of an emergency or sudden and unforeseen closure at the Approved Recyclable Materials
Processing Facility, the Franchisee shall provide a written description of the reasons the use of the
Approved Facility is not feasible, and the period of time Franchisee proposes to use an alternative
Processing Facility. Such a change in Processing Facility shall be temporarily permitted until such
time as the City is able to consider and respond to the use of the proposed alternative Processing
Facility. If the use of the proposed Alternative Processing Facility is anticipated to or actually does
exceed thirty (30) calendar days in a consecutive twelve (12) month period, the use of such
Processing Facility shall be subject to approval by the City. The City may, in its sole discretion,
approve, conditionally approve, temporarily approve, or disapprove of the use of the proposed
Alternative Processing Facility. If the City disapproves the use of the proposed Alternative
Processing Facility, the Parties shall meet and confer to determine an acceptable Processing Facility.
5.7.4 Disposition of Unauthorized Waste
Franchisee shall ensure that procedures to identify and reject materials delivered to the Approved
Recyclable Materials Processing Facility which are Hazardous Waste, Excluded Waste, or which
otherwise may not be legally accepted at the Approved Recyclable Materials Processing under their
permits, are in place. Franchisee may, in the course of implementing such procedures, refuse to
accept Recyclable Materials deposited from a Generator if they constitute Hazardous Waste, or
otherwise may not be legally accepted at the Approved Recyclable Materials Processing Facility, and
Franchisee shall be solely responsible of the materials which are accepted. If Franchisee discovers
Deleted: city. Contractor has designated the Tank Farm
Road facility to be utilized as of the Effective date.
Deleted: ¶
Deleted:
Deleted: Recovery
Deleted: Materials Recovery…rocessing Facility used by
contractorContractor…ranchisee must be designed and
constructed in accordance with all applicable state and
local laws (e.g., …pplicable Law (CEQA, California Code
of Regulations, etc). The Materials Recovery…rocessing
Facility must have all permits from federal, state…ederal,
State, regional, county…ounty, and city…ity agencies
necessary for it to operate as a Material Recovery Facility
and must be in full regulatory compliance with all such
permits. ¶
The selected…Approved Recyclable Materials
Recovery…rocessing Facility must be authorized to
accept, under its existing permit, and have sufficient
uncommitted capacity to accept, all Recyclable Materials
delivered to it by, or on behalf of, the City for the
term…erm of this Agreement. Contractor…ranchisee shall
immediately notify City of any notice of breach or default
received from Approved Recyclable Materials Recovery
Facility…rocessing. ¶
Contractor…ranchisee shall, directly or through similar
obligations in its subcontract(s) with facility operators,
keep active all existing permits and approvals necessary
for use of the Approved Processing Facility in compliance
with regulatory requirements and Applicable Law. Upon
request, Contractor ...
Deleted:
Deleted: Contractor…ranchisee becomes unable to
deliver the City's…ity’s Recyclable Materials to the
Materials Recovery…pproved Processing Facility due to
causes within its control and which could have been ...
Deleted: · Recovery Facility, in which case Contractor
shall pay for any increased transportation costs, any
differences in the fees charged at such Materials Recovery ...
Deleted: Contractor…ranchisee shall provide a written
description of the reasons the use of the Approved Facility
is not feasible, and the period of time Contractor ...
Deleted: ¶
Deleted: 4
Deleted: Contractor…ranchisee shall ensure that
procedures to identify and reject materials delivered to the
Approved Recyclable Materials Recovery ...
Deleted: Processing Facility
Deleted: Recovery Facility…rocessing under their
permits, are in place. Contractor ...
Deleted: the City if… Generator if they constitute
Hazardous Waste, or otherwise may not be legally
accepted at the Approved Recyclable Materials ...
Page 657 of 984
Recycling Services Agreement
24
Deleted: Residential
Hazardous Waste, or other material which may not be legally accepted, among materials which it has
accepted, it shall dispose of such waste at its own expense. Franchisee may pursue all legal rights and
remedies it may have against the Waste Generator(s) of such Solid Waste, if the Waste Generator(s)
can be identified.
5.7.5 Subcontracting
Franchisee shall not engage any Subcontractors for Collection, Transportation, or Processing of
Recyclable Materials without the prior written consent of City. Franchisee must obtain written
agreements with Processing Subcontractors to guarantee capacity to Process Discarded Materials. If the
Franchisee plans to engage other affiliated or related party entities in the provision of services,
Franchisee shall provide City with thirty (30) calendar days written notification of its plans and provide
an explanation of any potential impacts related to the scope, quality, timeliness, or cost of providing
services under this Agreement. All insurance documents must be reviewed and approved by the City’s
Risk Manager prior to City acceptance. Franchisee shall require that all Subcontractors file insurance
certificates with the City, name City as an additional insured, and comply with all material Terms of
this Agreement.”
5.8 Disposal
Franchisee shall ensure that the Residue from a Generator’s Recyclable Materials, delivered to the
Approved Recyclable Materials Processing Facility by the Franchisee, are disposed of at the
Approved Disposal Facility in full regulatory compliance.
5.9 Implementation Plan
The parties recognize that substantial planning will be required in order to assure an orderly initiation
of Residential Curbside Recycling Collection services on August 6, 2010, To that end, City has
required Franchisee to submit, as part of its proposal, a detailed implementation plan addressing,
among other things, the steps Franchisee will take and the schedule on which it will take them, to
prepare for such an orderly initiation of service. The implementation plan shall cover Franchisee's
schedule for acquiring necessary equipment, personnel, storage and maintenance facilities,
administrative offices, customer relations materials (including Collection schedules, route maps,
billing forms, complaint forms, service request forms, etc.). Franchisee agrees to adhere strictly to the
implementation plan. The implementation shall be subject to the City's review and approval.
Failure to adhere to the implementation schedule will constitute a breach of this Agreement, and, if
incurred, an event of default, under Article 12, Default, Remedies, and Liquidated Damages.
5.10 Generator Waivers
A. General. The City or its designee may grant waivers described in this Section to Commercial
or Multi-Family Generators that impact the scope of Franchisee’s provision of service for those
Customers; provided, the Generator shall continue to subscribe with Franchisee for franchised
Collection services to the extent such services are not waived by the City. Waivers issued shall be
subject to compliance with SB 1383 requirements, pursuant to 14 CCR Section 18984.11, or other
requirements specified by the City.
B. Generator Waivers.
a. De Minimis Waivers. The City or its designee may waive a Multi-Family’s, Commercial
Business’, or its Property Owner’s obligation to comply with some or all of the Source
Separated Recyclable Materials Collection requirements set forth in this Agreement, SB
1383 Regulations, and the City’s Municipal Code, all as may be amended from time to time,
if the Multi-Family, Commercial Business, or its Property Owner provides documentation, or
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: residual Solid Waste
Deleted: the City's Recyclable
Deleted: Recovery
Deleted: Contractor
Deleted: a permitted disposal site
Deleted: ,
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 658 of 984
Recycling Services Agreement
25
Deleted: Residential
the City has evidence demonstrating one of the following de minimis conditions:
i. The Multi-Family’s or Commercial Business’ total Solid Waste Collection service is
two (2) cubic yards or more per week, and Organic Waste subject to Collection
comprises less than twenty (20) gallons per week, per applicable Container, of the
Multi-Family’s or Commercial Business’ total waste; or,
ii. The Multi-Family’s or Commercial Business’ total Solid Waste Collection service is
less than two (2) cubic yards per week, and Organic Waste subject to Collection
comprises less than ten (10) gallons per week, per applicable Container, of the Multi-
Family’s or Commercial Business’ total waste.
b. Space Constraint. The City or its designee may waive a Multi-Family’s, Commercial
Business’, or its Property Owner’s obligation to comply with some or all of the Source
Separated Recyclable Materials Collection service requirements set forth in this Agreement,
SB 1383 Regulations, and the City’s Municipal Code, in the event that the Generator
qualifies for a space constraint waiver under the City’s Municipal Code.
c. Waiver Requests. Generators may submit requests for de minimis waivers and physical space
waivers to the City. If a Generator submits a request for a waiver to the Franchisee, the Franchisee
shall refer the Generator to the City. Upon request of the City, the Franchisee shall support the City
in the waiver review process by providing requested Customer information. If the City or its designee
grants a waiver to a Generator, the City shall notify the Franchisee and Franchisee shall update the
Customer’s information and Service Level in accordance with Exhibit B.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 659 of 984
Recycling Services Agreement
26
Deleted: Residential
ARTICLE 6:
OTHER SERVICES
6.1 Billing
The City Council shall establish an integrated rate for Organics, Recycling and Solid Waste services.
Franchisee shall bill and collect for its services at no more nor less than these rates. Franchisee's
billing plan, including billing frequency, and format shall be subject to approval by City, and City
shall have the right to revise the billing format to itemize certain charges.
The City may also direct Franchisee to insert mailers relating to contractor provided services with the
billings and shall be responsible for all labor costs with respect to the mailing inserts. The mailers
must fit in standard envelopes and not increase the required postage. The City will provide not less
than thirty (30) calendar days notice to Franchisee prior to the mailing date of any proposed mailers
to permit Franchisee to make appropriate arrangements for inclusion of City materials.
Franchisee shall maintain copies of said billings and receipts, each in chronological order, for a
period of three (3) years after the date of service for inspection by the City. Franchisee may, at its
option, maintain those records in computer form, on microfiche, or in any other manner, provided
that the records cannot be altered, and can be preserved and retrieved for inspection and verification
in a timely manner.
The owner of occupied Premises shall be responsible and liable for paying the Recycling fees for that
property.6.2 Collection of Bills from Delinquent Customers
Once each year, prior to a date established by the City, Franchisee may take actions pursuant to
Chapter 8.04 of the Municipal Code to collect delinquent accounts.
6.3 Performance or Billing Audit
The City shall have the right to periodically, not less than annually, request a performance audit or
billing audit be completed by the Franchisee, the City or an independent third party. The City shall be
entitled to select the type of consultant that it deems qualified to conduct said audits. The cost of such
audits will be an allowable cost under the rate setting methodology unless there are findings pursuant
to Section 12.5.
6.4 Customer Service
6.4.1 Office
Office hours shall be, at a minimum, from 8:00 AM. to 5:00 P.M., Monday through Friday, exclusive
of holidays. A responsible and qualified representative of Franchisee shall be available during office
hours for communication with the public. Telephone numbers shall either be a local or a toll free call
to residents and businesses of the City. Franchisee's telephone system shall be adequate to handle the
volume of calls typically experienced on the busiest days. Franchisee shall also maintain a local or
toll free telephone number for use during other than normal business hours. Franchisee shall have a
representative, answering or message providing/receiving (voice-mail) service available at said after
hours telephone number.
6.4.2 Complaint documentation
All service complaints related to Recyclable Materials Collection shall be directed to Franchisee.
Daily logs of complaints concerning Collection of Recyclable Materials shall be retained for a
minimum of twenty-four (24) months and shall be available to City at all times during this
Agreement upon twenty-four (24) hour notice.
Franchisee shall log all complaints received orally or in writing and said log shall include the date
Deleted: ¶
Deleted: ¶
.
Deleted: the Green Waste
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
¶
·
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 660 of 984
Recycling Services Agreement
27
Deleted: Residential
and time the complaint was received, name, address and telephone number of complainant to the
extent that such information is provided by complainant, description of complaint, employee
recording complaint and the action taken by Franchisee to respond to and remedy complaint. All
complaints received shall be responded to within twenty four (24) working hours of receipt. ·
All customer service records and logs kept by Franchisee shall be available at all times during this
Agreement to City upon twenty four (24) hour notice and at no cost to City. City shall, at any time
during regular Franchisee business hours, have access to Franchisee's customer service department
for purposes of monitoring the quality of customer service or researching customer complaints
assessing liquidated damages or other matters related to Franchisee's performance under this
Agreement.
6.4.3 Resolution of Customer Complaints
Franchisee shall notify customers of this complaint procedure at the time customers apply for or are
provided service, and subsequently, annually.
A customer dissatisfied with Franchisee's decision regarding a complaint may ask the City to review
the complaint. The City's Utilities Director shall determine if the customer's complaint is justified,
and if so, what remedy, if any shall be provided. The remedy under this Section shall be limited to a
rebate of customer charges related to the period of breach of any of the Terms of this Agreement.
Any resolution of these customer complaints shall not affect the City's rights to liquidated damages.
6.4.4 Government Liaison
Franchisee shall designate in writing a "Government Liaison" who shall be responsible for working
with the City Manager, Utilities Director and/or one of their designated representative(s) to resolve
customer complaints.
6.5 Education and Public Awareness
A. Program Objectives.
Franchisee acknowledges that the City will be responsible for designing, implementing, and
conducting a public education and outreach program. The City’s, or its designee’s, public education
and outreach strategies may focus on topics such as: improving Generator understanding of the
benefits of and opportunities for source reduction, Reuse, and Landfill Disposal reduction and
supporting compliance with Applicable Laws and regulations, including, but not limited to SB 1383
and SB 1383 regulations. The cumulative intended effect of these efforts is to reduce each
Generator’s Solid Waste and, ultimately, Disposal of Solid Waste, and Franchisee agrees to support
and not undermine or interfere with such efforts.
B. Franchisee Cooperation and Support.
Franchisee acknowledges and agrees that education and public awareness are critical, key and
essential elements of any efforts to achieve compliance with AB 939, AB 341, AB 1826, and SB
1383 requirements and has submitted a plan to this effect in Exhibit “A”. Accordingly, Franchisee
agrees to cooperate with City in exploring opportunities to expand public and Customer knowledge
concerning needs and methods to reduce, reuse and Recycle Discarded Materials and to cooperate
fully with City in this regard. Franchisee shall cooperate and coordinate with the City or its designee
on public education activities to minimize duplicative, inconsistent, or inappropriately timed
education campaigns. The Franchisee shall cooperate with and shall not impede, interfere, or attempt
to impede or interfere with the implementation, expansion, or operation of public education and
outreach programs or campaigns conducted by the City or its designee.
C. Franchisee Education Activities
1. Supplemental Education Materials. Franchisee shall perform all necessary public
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: y
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: "
Deleted: ".
Deleted: Contractor
Deleted: customer
Deleted: recycle Solid Waste
Deleted: "
Deleted: Contractor
Commented [CT3]: We need to coordinate this whole
section w/ organics contract
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: shall
Deleted: Contractor
Page 661 of 984
Recycling Services Agreement
28
Deleted: Residential
education activities related to the Recyclable Materials services as directed by the City. This
shall include, but not be limited to, annual mailings to all Customers explaining the
Recycling program, mailings prior to the start of services, flyers handed out with Container
delivery and follow-up mailings or handouts related to the Collection of new materials, and
other materials required by this Section. All public education materials shall be approved in
advance by the City. Franchisee shall obtain approval from the City on all Franchisee-
provided public education materials outside of the City’s education plan, including, but not
limited to: print, radio, television, or internet media before publication, distribution, and/or
release. City shall have the right to request that Franchisee include City identification and
contact information on public education materials and approval of such requests shall not be
unreasonably withheld
2. Bill Inserts. Franchisee shall maintain its own program of providing information relevant to
billing and Organic Materials services, issues and needs with its bills. Franchisee shall also
include in Customer bills additional information, including information on any and all
programs, as directed by the City. Franchisee shall bear all labor costs with respect to
inserting public education materials with the billings. City shall bear any additional postage
expense resulting from the City's inserts and shall bear other expenses related to the inserts to
the extent said expenses are clearly in excess of the Franchisee's normal billing costs. All
public education materials shall be approved in advance by the City. Franchisee shall be
responsible for printing single-sheet, double sided bill inserts at least annually. Franchisee
shall provide electronic bill inserts (or separate email attachments) to Customers who are
billed electronically, and paper bill inserts to Customers who receive paper bills. Upon City
request for such inserts, Franchisee shall comply with such request during its next billing
cycle for the targeted Customer group. Franchisee shall perform this service with no
additional requirement for compensation.
3. Annual Notice of Requirements. If not already provided through another Discarded Materials
Franchise agreement between the Parties, Franchisee shall, not less than once per year,
prepare and distribute to each Generator in the City a mailer that includes information
specified in 14 CCR Section 18985.1(a). Such mailer shall be distributed by Franchisee to all
Residential and Commercial mailing addresses including individual Multi-Family Dwelling
Units and tenants of multi-tenant Commercial locations. Franchisee shall also make this
notice available in an electronic format through the Franchisee’s website.
4. Other Outreach. At the direction of the City, Franchisee shall participate in and promote
AB 939, AB 341, AB 1826, SB 1383 or other Applicable Law activities and other Solid
Waste management techniques at community events and local activities. Such participation
would normally include providing, without cost, educational and publicity information
promoting the goals of the City's Discarded Materials program.
Deleted: _
Deleted: Recycling
Deleted: presented in Exhibit "A".
Deleted: customers
Deleted: recycling
Deleted: collection
Deleted: .
Deleted: Public
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Manager and/or Utilities Director
Deleted: Contractor
Deleted: Recycling and other diversion
Deleted: to the City
Deleted: AB 939 programs
Deleted: ¶
¶
¶
¶
¶
¶
¶
¶
¶
¶
¶
¶
¶
¶
¶
¶...
Page 662 of 984
Recycling Services Agreement
29
Deleted: Residential
ARTICLE 7
PAYMENTS TO CITY
7.1 Franchise Fee
In consideration of the exclusive franchise provided for in this Agreement, Franchisee shall pay the
City ten percent (10%) of its Gross Revenues for Recyclable Materials services; provided, however,
that such Franchise Fee shall not exceed the costs incurred by the City to deliver service to
properties. Such Franchise Fee shall be a “pass-through” expense for purposes of rate review.
7.2 AB 939/SB 1383 Fee
Franchisee shall pay an AB 939/SB 1383 fee to the City each month. The City shall retain the sole
right to set priorities for the use of its AB 939/SB 1383 fee. In addition, if the City’s designee
implements an AB 939, SB 1383, or Solid Waste Management fee, Franchisee shall pay that fee
directly to the designee. Said fees shall be an allowable cost in Franchisee’s rate application. All AB
939/SB 1383 fees and Solid Waste Management fees paid to the City or its designee shall be
considered a pass through cost for purposes of rate setting, and, as such changes these fees shall be
adjusted accordingly subject to all applicable laws and regulations. The City or its designee shall
have the right to establish and adjust the AB 939, SB 1383, or Solid Waste Management fee at any
time, provided that any changes are considered a pass-through cost for the purposes of rate setting, at
the time of the change in the AB 939, SB 1383, or Solid Waste Management fee.
7.3 Business License Tax
Franchisee shall pay each annual business license tax.
7.4 Other Fees
The City shall reserve the right to set "Other" Fees, as it deems necessary. These expenses will
be determined and a fee designed to reimburse the City. Such fees shall be set annually by City
resolution and may be considered a pass-through cost for purposes of rate setting.
7.5 Time and Method of Payment
If Franchisee is directed to pay an AB 939/SB 1383 Fee, Franchise Fee or “Other” Fee, it shall
do so on or before the fifteenth (15th) day of each month during the Term. Franchisee shall remit
to City a sum of money equal to the designated percentage of the Gross Revenue, including
Recyclable Materials revenue, or a flat monthly fee as determined by the City. If any fees are not
paid on or before the fifteenth (15th) day of any month, Franchisee shall pay to City a late
payment penalty in an amount equal to one percent (1%) of the amount owing for that month.
Franchisee shall pay an additional late payment penalty of one percent (1%) owing on any
unpaid balance for each following thirty (30) day period the fee remains unpaid. Late payment
penalty amounts shall not be included in any revenue requirement.
7.6 Adjustment of Fees
The City may adjust the amount of fees annually. Such adjustment shall be reflected in the rates
that the Franchisee is allowed to charge and collect from customers.
7.7 Review of Fee Payments
The City, or its agent, reserves the right to annually perform an independent review of fee
payments, to verify that fees are being paid in accordance with Agreement. The cost of such
reviews will be an allowable cost under the rate setting methodology unless there are findings
pursuant to Section 12.5.
Deleted:
Deleted: Contractor
Deleted: gross revenues
Deleted: residential recycling
Deleted: franchise fee
Deleted: franchise fee
Deleted: "
Deleted: "
Deleted: If requested by City, Contractor
Deleted: ,
Deleted: be specified annually by
Deleted: .
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted:
Deleted: Contractor
Deleted: "
Deleted: "
Deleted: Contractor
Deleted: gross revenue
Deleted:
Deleted: Contractor
Deleted:
Deleted: ·
Deleted: Contractor
Deleted: Contractor
Page 663 of 984
Recycling Services Agreement
30
Deleted: Residential
Page 664 of 984
Recycling Services Agreement
31
Deleted: Residential
ARTICLE 8:
CONTRACTOR'S COMPENSATION AND RATES
8.1 General
Franchisee's compensation provided for in this Article shall be the full, entire and complete compensation
due to Franchisee pursuant to this Agreement for all labor, equipment, materials and supplies, taxes,
insurance, bonds, overhead, profit and all other things necessary to perform all the services required by
this Agreement in the manner and at the times prescribed.
The Franchisee does not look to the City for payment of any sums under this Agreement. Franchisee
will perform the responsibilities and duties described in this Agreement in consideration of the right to
charge and collect from customers for services rendered at rates fixed by the City from time-to-time and
the right to sell compost generated from Green Waste. The City shall have the right to structure those
rates as it deems appropriate so long as the revenues forecasted to be received by Franchisee from
charging such rates can reasonably be expected to generate sufficient revenues to provide for
Franchisee's compensation.
8.2 Initial Rates
Franchisee will submit required financial documentation for this service as part of an integrated solid
waste rate application. The rate application will comply with the guidelines set forth in the City's "Rate
Setting Process and Methodology Manual for Integrated Solid Waste Management Rates". The portion
of the rate attributable to this service shall be identified as part of the Council rate-setting process but will
not be separated from the integrated rate.
8.3 Subsequent Rates
Franchisee may request rate revisions in future solid waste rate applications. The rate
application must comply with the "City of San Luis Obispo Rate Setting Process and
Methodology Manual for Integrated Solid Waste Management Rates".
8.4 Right to Perform Rate Reviews
City reserves the right to perform, or have a qualified third party perform, a detailed review of
Franchisee's expenses and revenues for the purposes of adjusting rates. The results of this detailed rate
review will be used to adjust rates, and the Franchisee's calculated revenue requirements will be used the
following year to adjust rates according to Section 8.3 Franchisee's Compensation for subsequent Rate
Years.
8.5 Extraordinary Adjustments
Franchisee or City may request an adjustment to rates at times other than that required in Section 8.3 for
unusual changes in the cost of providing service under this Agreement. Such changes may include, but
are not limited to, changes in laws, ordinances, or regulations, and significant changes in Franchisee's
workload due to new residential or commercial development. However, when an extraordinary
adjustment is requested, such adjustment shall consider changes in all costs and revenues from
Franchisee's proposed revenue requirement.
For each such request, Franchisee shall prepare a schedule comparing the original proposed costs and
revenues by line item to the then current costs and revenues, including an estimates of the cost impact of
the change, using an operating ratio of 93%, applied to Franchisee's costs as calculated in Franchisee's
proposed revenue requirement. Such request shall be prepared in a form acceptable to City with support
for assumptions made by Franchisee in preparing the estimate. Franchisee and City shall negotiate a
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Formatted: Font: 11 pt
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 665 of 984
Recycling Services Agreement
32
Deleted: Residential
mutually acceptable adjustment amount.
Page 666 of 984
Recycling Services Agreement
33
Deleted: Residential
ARTICLE 9.
RECORDS, REPORTS AND INFORMATION, STUDIES AND HEARING REQUIREMENTS
9.1 Records
9.1.1 General
A. Franchisee shall maintain records required to conduct its operations, to support requests it may
make to City, and to respond to requests of the City. Adequate record security shall be maintained
to preserve records from events that can be reasonably anticipated such as a fire, theft and
earthquake. Electronically maintained data and records shall be protected and an adequate backup
system shall be provided for such data and records. The protection and backup systems shall be
subject to approval by the City.
B. The following records shall be maintained for the City in form and detail satisfactory to the City,
relating to:
1. Customer services and billing;
2. Weight of Recyclable Materials. Information is to be separated by kind of
account (Single-Family, Multi-Family, and Commercial);
3. Special annual clean-up event results;
4. Routes;
5. Facilities, equipment, and personnel used;
6. Facilities and equipment operations, maintenance, and repair;
7. Processing of Recyclable Materials;
8. Complaints; and
9. Missed pick-ups.
C. Franchisee shall maintain records of Transfer, Diversion, and Disposal of all Recyclable Materials
Collected in the City for the period of this Agreement and all extensions to this Agreement or
successor Agreements. In the event Franchisee discontinues providing Recyclable Materials
services to City, Franchisee shall provide all records of Diversion and Disposal of all Recyclable
Materials Collected within the City to City within thirty (30) calendar days of discontinuing
service. Records shall be in chronological order, and organized in a form readily and easily
interpreted.
D. Records for other programs shall be tailored to specific needs. In general, they shall include:
1. Plans, tasks·, and milestones; and,
2. Accomplishments in terms such as dates, activities conducted, quantities of
products used, produced or distributed, and numbers of participants and responses.
E. Unless otherwise required in this Agreement, Franchisee shall retain all records and data required
to be maintained by this Agreement for the Term of this Agreement plus five (5) years after its
expiration or earlier termination. Franchisee’s records shall be stored in one central location,
physical or electronic, that can be readily accessed by Franchisee. Upon request, any such records
shall be retrieved in a timely manner, not to exceed ten (10) Working Days of a request by the City
and made available to the City; including any record or documentation that the City, requires to
fulfill obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826,
AB 876, AB 901, SB 1383, and other current or future Federal, State, or local regulations, as
amended.
9.1.2 Financial Records
Financial records shall separate all records related to the services performed under this Agreement from
any and all other types of businesses and operations conducted by the Franchisee.
9.2 Reports
A. Records shall be maintained in forms and by methods that facilitate flexible use of data contained
in them to structure reports, as needed. Reports are intended to compile recorded data into useful
Deleted: ¶
Deleted: Contractor
Deleted: from City in the conduct of City business.¶
Additionally, the Contractor shall also keep and
maintain records reasonably necessary for audits, as
required by this Agreement, and shall keep and
maintain all records reasonably necessary to develop
reports and financial statements required with respect to
this Agreement.
Deleted: /
Deleted: backed up
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: 9.1.3 General Records¶
City approved records (format) shall be maintained for the
City separate from other jurisdictions relating to:¶
Customer services;¶
Weight of Recyclable Materials by type of materials.¶
Routes;¶
Facilities, inventory of equipment and personnel used;¶
Facilities and equipment operations, maintenance and repair;¶
Processing, marketing and sale of Recyclable Materials
including name of the purchaser, the date of sales
transaction, processing cost per ton, quantity purchased,
value per ton and net sales records;¶
Complaints; and,¶
Missed pick ups.¶
¶
ContractorFranchisee shall maintain records of all
Recyclable Materials Collected in the City for the period of
this Agreement. In the event ContractorFranchisee
discontinues providing Recycling services to City,
ContractorFranchisee shall provide all records of all
Recyclable Materials Collected in City to City within thirty
(30) calendar days of discontinuing service. Records shall be
in chronological and organized form and readily and easily
interpreted.¶
¶
Deleted: Report Formats and Schedule¶
Page 667 of 984
Recycling Services Agreement
34
Deleted: Residential
forms of information that can be used to, among other things:
1. Determine and set rates, and evaluate the financial efficacy of operations; and
2. Evaluate past and expected progress towards achieving goals and objectives; and
3. Determine needs for adjustment to programs; and
4. Evaluate Customer service and Complaints.
B. The City may at no cost to itself request that Franchisee provide such additional information in the
reports set forth below as the City deems necessary or appropriate to meet its needs, including
provision of information needed for the City’s compliance with Applicable Law, including, but not
limited to AB 939, AB 1826, AB 341, and SB 1383 report information. Franchisee may propose
report formats that are responsive to the objectives and audiences for each report. The format of
each report shall be subject to approval by the City.
C. Franchisee shall submit all reports to the City, electronically via e-mail using software acceptable
to the City. The City reserves the right to require the Franchisee to maintain records and submit
the reports required herein through use of the City-selected web-based software platform and/or
Microsoft Excel spreadsheet, at the Franchisee’s expense.
D. Monthly reports shall be submitted within ten (10) calendar days after the end of the report month.
All reports shall be submitted to:
Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
9.2.2 Monthly Reports
The information listed shall be the minimum reported for each service:
A. Discarded Materials, Collected, Transferred, Diverted and Disposed of, by sector
(Commercial, industrial, Residential) of Waste Generator-Collected by Franchisee, in
Tons, by month.B. Complaint summary, for month and cumulative for report year, as
above, summarized by nature of Complaints.
C. Narrative summary of problems encountered and actions taken with recommendations for
the City, as appropriate.
D. All requirements specified in Exhibit A.
9.2.3 Annual Report
The Annual Report is to be essentially in the form and content of the monthly reports. Annual reports shall
include at a minimum, all data and information described in Exhibit B, unless otherwise specified under
this Agreement. In addition, Franchisee’s annual audited financial reports/statements, with the operations
related to the City services segregated, shall be included. The annual report shall also include a complete
inventory of equipment used to provide all services.
Financial statements shall include a supplemental schedule combining Franchisee’s results of operations,
separating the specific revenues and expenses, including detailed information with respect to general
overhead claimed by the Franchisee, in connection with the operations provided for in this Agreement
from others included in such financial statements. The financial statements, supplemental schedule,
management letter and footnotes shall be prepared in accordance with Generally Accepted Accounting
Principles (GAAP) and audited, in accordance with Generally Accepted Auditing Standards (GAAS) by a
certified public accountant (CPA) licensed (in good standing) to practice public accounting in the State of
California as determined by the State of California Department of Consumer Affairs Board of
Accountancy. The CPA opinion on Franchisee’s annual financial statements and supplemental schedule
shall be unqualified, except as to uncertainties for which the ultimate outcome cannot be determined by the
date of the CPA’s opinion.
9.2.4 Additional Reports
Deleted: Contractor
Deleted: Contractor
Deleted: approved
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: twenty (20
Deleted: being reported. Annual
Deleted:
Deleted: before September 30th, for the previous
reporting year.…
Deleted: Recyclable
Deleted: collected, sorted
Deleted: type of
Deleted: Contractor
Deleted: tons
Deleted: , and cumulative for report year
Deleted: ¶
Deleted: assessment
Deleted: to
Deleted: for improvement
Deleted: Number of accounts by category for each
month of reporting year.¶
Participation rates.¶
Recyclable Materials Container distribution.¶
Materials Sales. Sales statement showing: kinds of
material, quantity sold (in tons), value per ton, and net
sales.¶
¶
The City may designate any additional information that
it wishes provided in the monthly reports.¶
¶
Deleted: In addition, Contractor's
Deleted: Contractor
Deleted: Contractor'sContractor
Deleted: Contractor
Deleted: Contractor'sContractor
Deleted: CPA's
Deleted: .
Page 668 of 984
Recycling Services Agreement
35
Deleted: Residential
A. General. City reserves the right to require Franchisee to provide additional reports or
documents as City reasonably determines to be required for the administration of this
Agreement or compliance with Applicable Law.
B. AB 901 Reporting. At the City’s option, the City may require that Franchisee provide the
City with the aggregate tonnage data related to AB 901 reporting that the City needs for its
SB 1383 reporting, to the extent available to Franchisee within five (5) Business Days of
City’s request.
9.3 Right to Inspect Records
City shall have the right to inspect or review the payroll tax reports, specific documents or records required
expressly or by inference pursuant to this Agreement, or any other similar records or reports of Franchisee
that City shall deem, in its sole discretion, necessary to evaluate annual reports, compensation applications
provided for in this Agreement and Franchisee's performance provided for in this Agreement.
The City retains the right to have an independent third party or agent of the City's choosing, such as a
CPA, participate in the records inspection. The cost of such inspection or review will be an allowable cost
under the rate setting methodology unless there are findings pursuant to Section 12.5.
Right to Review Basis for Landfill Tipping Fee Increases
The Franchisee shall provide to the City a copy of Cold Canyon Landfill's request for an increase in
tipping fees no later than five (5) Business Days following submittal of said request to the County of San
Luis Obispo. Additionally, the Franchisee shall notify the City of the action taken by the Board of
Supervisors regarding said request within five (5) Business Days following said action, including letter to
the Board of Supervisors and related executed resolution. The City retains the right to have an independent
third party or agent of the City's choosing, such as a CPA, participate in the review. The cost of such
inspection or review will be an allowable cost under the rate setting methodology unless there are findings
pursuant to Section 12.5.
9.4 Waste Generation/Characterization Studies
Franchisee acknowledges that the city must perform Solid Waste generation and disposal characterization
studies periodically to comply with AB 939 requirements. Franchisee agrees to participate and cooperate
with City and its agents to accomplish studies and data collection and prepare reports as needed to
determine weights and volumes of Solid Waste generated, diverted, disposed, transformed, or otherwise
handled/processed to satisfy AB 939 requirements.
9.5 Performance Hearing
The City maintains the right to hold a public hearing at any time, not more than once each year, at which
the Franchisee shall be present and shall participate, to review its services and performance. The purpose
of the hearing is to provide for a discussion and review of technological, economic, and regulatory changes
in order to achieve a continuing, advanced Solid Waste management system; and to ensure customer
service quality and any other areas that may be addressed regarding services are being provided with
adequate quality, efficiency and economy.
Sixty (60) calendar days after receiving notice from City of a Performance Hearing, Franchisee shall, at a
minimum, submit a report to City indicating (1) changes recommended and/or new services to improve
City's ability to meet the goals of AB 939 and to contain costs and minimize impacts on rates; and (2) any
specific plans for provision of changed or new services by Franchisee.
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: days
Deleted: Contractor
Deleted: days
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 669 of 984
Recycling Services Agreement
36
Deleted: Residential
ARTICLE 10.
INDEMNIFICATION, INSURANCE AND BOND
10.1 Indemnification
Franchisee shall indemnify and hold harmless City, its officers, Directors, employees, and agents from
and against any and all loss, liability, penalty, forfeiture, claim, demand, action proceeding or suit of
any and every kind and description (including, but not limited to, injury to and death of any Person and
damage to property, or for contribution or indemnity claimed by third parties) to the extent arising or
resulting from and in any way connected with (1) the negligence or willful misconduct of Franchisee, its
officers, employees agents and/or sub Franchisees in performing services under this Agreement; (2) the
failure of Franchisee, its officers, employees, agents and/or subcontractors to comply in all respects with
the provisions of this Agreement, applicable laws (including, without limitation, the Environmental
Laws) and regulations, and/or applicable permits and licenses; (3) the acts of Franchisee, its officers,
employees, agents and/or subcontractors in performing services under this Agreement for which strict
liability is imposed by law (including, without limitation, the Environmental Laws).
Franchisee further agrees to and shall, upon demand of City, at Franchisee's sole cost and expense,
defend (with attorneys acceptable to City) the City, its officers, directors, employees, and agents against
any claims, actions, suits or other proceedings, whether judicial, quasi- judicial or administrative in
nature, arising or resulting from any events described in the immediately preceding paragraph to the
extent arising from or related to Franchisee's alleged or actual violations of Proposition 218 and/or its
implementing legislation,.
Franchisee's duty to indemnify and defend shall survive the expiration or earlier termination of this
Agreement.
10.2 Landfill Diversion
The Franchisee acknowledges that the City has adopted a SRRE which selects a single family curbside
Recycling program as a means of diverting an estimated 3,643 tons in 1995 and 3,903 tons per year by
the year 2000, and a multi-family curbside Recycling program as a means of diverting an estimated 308
tons in 1995 and 330 tons per year by the year 2000. It is therefore of foremost importance that the
Recyclable Materials collected under this Agreement be converted into a functional and marketable
product in order that the materials may be diverted from landfill disposal in compliance with the City's
SRRE, and AB 939. The Franchisee shall therefore use commercially reasonable efforts ensure that the
processing method used shall, at all times, meet the intent of the City's SRRE and AB 939. Should the
Franchisee find it necessary to utilize another method of processing in order to meet the intent of the
SRRE and AB 939, the City shall be given an opportunity to make its own determination as to the
suitability and cost-effectiveness of such process and shall approve such process in writing.
The City shall have the right to terminate this Agreement upon the giving of a six (6) month prior written
notice to Franchisee should it be determined that the Recycling program being implemented and/or
proposed under this Agreement is ineffective in meeting the City's diversion goals and objectives.
Upon termination, the Franchisee shall be entitled only to revenues less expenses incurred to that
date. All revenues received thereafter, including from Recyclable Materials sales, shall be the
property of the City unless otherwise agreed.
10.3 AB 939 Indemnification
Franchisee agrees to indemnify and hold harmless City, its officers, Directors, employees, and agents from
and against all fines and/or penalties imposed by the California Integrated Waste Management Board in
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Commented [CT4]: We need to discuss the relevance of
this
Deleted: Contractor
Page 670 of 984
Recycling Services Agreement
37
Deleted: Residential
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 Agreement but only to the extent that such
failure is due to the failure of Franchisee to meet its obligations under this Agreement or for delays in
providing information that prevents City from submitting reports required by AB 939 in a timely manner.
10.4 Insurance
A. Minimum Limits of Insurance. Franchisee shall maintain limits no less than:
1. Comprehensive General Liability: One Million Dollars ($1,000,000) combined single limit per
occurrence for bodily injury, Personal injury and property damage.
2. Automobile Liability: One Million Dollars ($1,000,000) combined single limit per accident for
bodily injury and property damage.
3. Workers' Compensation and Employers Liability: Workers' compensation limits as required by
the Labor Code of the State of California and Employers Liability limits of $1,000,000 per
accident.
B. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be
declared to and approved by the City. At the option of the City, either: the insurer shall reduce or
eliminate such deductibles or self-insured retentions as respects the City, its officials, directors and
employees; or Franchisee shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
C. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following
provisions:
1. General Liability and Automobile Liability Coverages
a. The City, its officials, employees, and directors are to be covered as insured as
respects:. liability arising out of activities performed by or on behalf of Franchisee;
products and completed operations of Franchisee; Premises owned, leased or used by
Franchisee; or automobiles owned, leased, hired or borrowed by Franchisee. The
coverage shall contain no special limitations on the scope of protection afforded to the
City, its officials, or employees.
b) Franchisee's insurance coverage shall be primary insurance as respects City, its
officials, directors, and employees. Any insurance or self-insurance maintained by
City, its officials, employees or volunteers shall be excess of Franchisee’s insurance
and shall not contribute with it.
c) Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to City, its officials, or employees.
d) Coverage shall state that Franchisee'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.
2. Workers' Compensation and Employers Liability Coverage - The insurer shall agree to waive
all rights of subrogation against City, its officials, employees and volunteers for losses arising
from work performed by Franchisee for City.
3. All Coverages - Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in coverage or
limits except after thirty (30) calendar days prior written notice by certified mail, return receipt
requested, has been given to City.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 671 of 984
Recycling Services Agreement
38
Deleted: Residential
D. Acceptability of Insurers. The insurance policies required by this Section shall be issued by an
insurance contractor or companies admitted to do business in the State of California subject to the
jurisdiction of the California Insurance Commissioner and with a rating in the most recent edition of
Best's Insurance Reports of size category VII or larger and a rating classification of A or better.
E. Verification of Coverage. Franchisee shall furnish City with certificates of insurance and with
original endorsements affecting coverage required by this clause. 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 or acceptable to City
and 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.
10.5 Faithful Performance Bond
Simultaneously with the execution of this Agreement, Franchisee shall file with City surety bond, payable
to City, securing Franchisee's faithful performance of its obligations under this Agreement. The bond shall
be in the amount of 125% of the total annual contract price guaranteeing the faithful performance of the
contract, including any attorney's fees or other collection costs.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 672 of 984
Recycling Services Agreement
39
Deleted: Residential
ARTICLE 11.
CITY'S RIGHT TO PERFORM SERVICE
11.1 General
In the event that Franchisee, for any reason whatsoever, fails, refuses or is unable to Collect, transport,
process or market any or all recyclable Materials which it is required by this Agreement to Collect,
process and market, at the time and in the manner provided in this Agreement, for a period of more
than seven (7) calendar days, and if, as a result thereof, Recyclable Materials should accumulate in the
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 City shall have the right,
but not the obligation, upon twenty-four (24) hour prior written notice to Franchisee during the period
of such emergency as determined by the City Manager, (1) to perform, or cause to be performed, such
services itself with_ its own or other personnel without liability to Franchisee; and/or (2) to take
possession of any or all of Franchisee's land, equipment and other property to Collect, transport,
process and/or market any Recyclable Materials generated within the City which Franchisee would
otherwise be obligated to Collect, transport, process or market pursuant to this Agreement. In the
event the City takes possession of the Franchisee's equipment and other property, the City shall be
entitled to have another contractor operate such equipment and property under City direction.
Additionally, in the event the City takes possession of the Franchisee's equipment and other property,
the City does not guarantee repair of existing problems with equipment and facilities.
Notice of Franchisee's failure, refusal or neglect to Collect, transport, process or market Recyclable
Materials may be given orally by telephone to Franchisee at its principal office and shall be effective
immediately. Written confirmation of such oral notification shall be sent to Franchisee within twenty-
four (24) hours of the oral notification.
Franchisee further agrees that in such event:
• It will take direction from City to effect the transfer of possession of property to City for City's
use.
• It will, if City so requests, keep in good repair and condition all of such property,
provide all motor vehicles with fuel, oil and other service, and provide such other
service 'as may be necessary to maintain said property in operational condition.
City may immediately engage all or any personnel necessary or useful for the Collection, transportation,
processing and/or marketing of Recyclable Materials, including, if City so desires, employees previously
or then employed by Franchisee, Franchisee further agrees, if City so requests, to furnish City the services
of any or all management or office personnel employed by Franchisee whose services are necessary. or
useful for Recyclable Materials Collection, Transportation, processing and marketing operations and for
the billing and collection of fees for these services.
City agrees that it assumes complete responsibility for the proper and normal use of such equipment and
facilities while in its possession.
If the interruption or discontinuance in service is caused by any of the reasons listed in Section
12.4 (Excuse From Performance), City shall pay to Franchisee the reasonable rental value of the
equipment and facilities, possession of which is taken by City, for the period of City's possession, if any,
which extends beyond the period of time for which Franchisee has rendered bills in advance of service.
Except as otherwise expressly provided in the previous paragraph, City's exercise of its rights under this
Article 11 (1) does not constitute a taking of private property for which compensation must be paid; (2)
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Page 673 of 984
Recycling Services Agreement
40
Deleted: Residential
will not create any liability on the part of City to Franchisee; and (3) does not exempt Franchisee from the
indemnity provisions of Article 10, Indemnification, Insurance and Bond, which are meant to extend to
circumstances arising under this Section, provided that Franchisee is not required to indemnify City
against claims and damages arising from the sole negligence of City officers, employees and agents in the
operation of Collection vehicles during the time City has taken possession of such vehicles.
11.2 Temporary Possession of Franchisee's Property
If the City suffers an interruption or discontinuance of service as described in Section 11.1 (including
interruptions and discontinuance due to events described in Section 12.4, Excuse from Performance), City
may take possession of and use all of Franchisee's property described above until other suitable
arrangements can be made for the provision of Recycling Services which may include the grant of a
Contract to another company. The same notice requirements of Section 11.1 are applicable.
11.3 Billing and Compensation to City During City's Possession
During such time that city is providing Recycling services, as above provided, Franchisee shall continue to bill and
collect payment from all users of the above-mentioned services. Franchisee further agrees that, in such event, it
shall reimburse City for any and all costs and expenses incurred by City in taking over possession of the above-
mentioned property for Recycling service in such manner and to an extent as would otherwise be required of
Franchisee under the Terms of this Agreement. Such reimbursement shall be made from time to time after
submission by City to Franchisee of each statement listing such costs and expenses, but in no event later than five
(5) working days from and after each such submission. The City shall have the right, at its sole discretion, to take
over billing and payment collection activities. The City shall then pay any net revenues to the Franchisee, after
deducting all expenses, including City- incurred expenses.
11.4 City's Right to Relinquish Possession
It is further mutually agreed that City may at any time at its discretion relinquish possession of any or all
of the above-mentioned property to Franchisee and thereupon demand that Franchisee resume the
Recycling services as provided in this Agreement, whereupon Franchisee shall be bound to resume the
same.
11.5 Duration of City's Possession
City's right pursuant to this Article to retain temporary possession-of Franchisee's facilities and equipment,
and to render Collection services, shall terminate when City determines that such services can be resumed
by Franchisee, or when City no longer reasonably requires such facilities or equipment. In any case, City
has no obligation to maintain possession of Franchisee's property and/or continue its use for any period of
time and may at any time, in its sole discretion, relinquish possession to Franchisee.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 674 of 984
Recycling Services Agreement
41
Deleted: Residential
ARTICLE 12.
DEFAULT, REMEDIES AND LIQUIDATED DAMAGES
12.1 Events of Default
All provisions of this Agreement to be performed by Franchisee are considered material. Each of the
following shall constitute an event of default.
A. Fraud or Deceit. If Franchisee practices, or attempts to practice, any fraud or deceit upon city.
B. Insolvency or Bankruptcy. If Franchisee becomes insolvent, unable, or unwilling to pay its debts when
due, or upon listing of an order for relief in favor of Franchisee in a bankruptcy proceeding. The
Franchisee is also in default if there is an assignment for the benefit of its creditors.
C. Failure to Maintain Coverage. If Franchisee fails to provide or maintain in full force and effect the
Workers' Compensation, liability, indemnification coverage or any insurance coverage or bond required
under this Agreement.
D. Violations of Regulation. If Franchisee facilities fall out of full regulatory compliance or if Franchisee
violates any orders or filings of any regulatory body having jurisdiction over Franchisee relative to this
Agreement, provided that Franchisee may contest any such orders or filings by appropriate proceedings
conducted in good faith, in which case no breach of the Agreement shall be deemed to have occurred.
E. Failure to Perform. If Franchisee ceases to provide Recycling services as required under this Agreement
for a period of two (2) Working Days or more, for any reason within the control of Franchisee.
F. Failure to Pay/Report. If Franchisee fails to make any timely payments, including liquidated damages
and penalties, required under this Agreement and/or fails to provide City with required information,
reports, and/or records in a timely manner as provided for in the Agreement.
G. Acts or Omissions. Any other act or omission by Franchisee which violates the terms, conditions, or
requirements of this Agreement, 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 which is not
corrected or remedied within the time set in the written notice the violation or, if Franchisee cannot
reasonably correct or remedy the breach within the time set forth in such notice, if Franchisee 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.
H. False or Misleading Statements. Any representation or disclosure made to City by Franchisee in
connection with or as an inducement to entering into this Agreement, or any future amendment to this
Agreement, which proves to be false or misleading in any material respect as of the time such
representation or disclosure is made, whether or not any such representation or disclosure appears as part
of this Agreement.
I. Attachment. There is a seizure of attachment of, or levy on, the operating equipment of Franchisee,
including without limits its equipment, maintenance or office facilities, or any part thereof.
J. Suspension or Termination of Service. There is any termination or suspension of the transaction of
business by Franchisee, including without limit, due to labor unrest including strike, work stoppage or
slowdown, sickout, picketing, or other concerted job action lasting more than two (2) Working Days.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: days
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: days
Page 675 of 984
Recycling Services Agreement
42
Deleted: Residential
Upon default by the Franchisee, the City Manager shall provide written notice to Franchisee of the
violation. The City Manager shall include in the notice, a demand that the Franchisee correct the violation
within 10 days following the delivery of said notice. For purposes of this Agreement and any notice
required thereunder, the term "days" shall mean calendar days.
12.2 Right to Terminate Upon Default
Upon a default by Franchisee, City shall have the right to terminate this Agreement upon a ten
(10) calendar days notice if the public health or safety is threatened, or otherwise a thirty (30) calendar
days notice, but without the need for any hearing, suit or legal action. This right of termination is in
addition to any other rights of City upon a failure of Franchisee to perform its obligations under this
Agreement. ·
City's right to terminate this Agreement and to take possession of Franchisee's equipment and facilities are
not exclusive, and City's termination of this Agreement shall not constitute an election of remedies.
Instead, they shall be in addition to any and all other legal and equitable rights and remedies which City
may have.
By virtue of the nature of this Agreement, the urgency of timely, continuous and high-quality service, the
lead time required to effect alternative service, and the rights granted by City to Franchisee, the remedy of
damages for a breach hereof by Franchisee is inadequate and City shall be entitled in injunctive relief.
12.3 Liquidated Damages
A. “General. City finds, and Franchisee agrees, that as of the time of the execution of this Agreement, it
is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be
incurred by City as a result of a breach by Franchisee of its obligations under this 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 Agreement to individual members of the general public for whose benefit this
Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of
measurement in precise monetary terms; (iii) that exclusive 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 Agreement for such breaches, and other remedies are, at best, a means
of future correction and not remedies which make the public whole for past breaches.
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The
Parties acknowledge that consistent, reliable Recyclable Materials Collection service is of utmost
importance to City and that city has considered and relied on Franchisee’s representations as to its
quality of service commitment in awarding the Agreement to it. The parties further recognize that
some quantified standards of performance are necessary and appropriate to ensure consistent and
reliable service and performance. The parties further recognize that if Franchisee fails to achieve the
performance standards, comply with Complaint resolution criteria, or fails to submit required
documents in a timely manner, City and its residents will suffer damages and that it is and will be
impractical and extremely difficult to ascertain and determine the exact amount of damages which
City will suffer. Therefore, without prejudice to City’s right to treat such non-performance as an
event of default under this Article 12, the parties agree that the following Liquidated Damage
amounts represent a reasonable estimate of the amount of such damages considering all of the
circumstances existing on the date of this Agreement, including the relationship of the sums to the
range of harm to City that reasonably could be anticipated and the anticipation that proof of actual
damages would be costly or inconvenient. Recognizing the importance of resolving any failure to
meet the service performance standard, the City shall contact Franchisee within two (2) Working
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: parties
Deleted: Recycling
Deleted: Contractor'sContractor
Deleted: Contractor
Deleted: complaint
Deleted: City's
Deleted:
Deleted: liquidated damage
Deleted: Contractor
Deleted: days
Page 676 of 984
Recycling Services Agreement
43
Deleted: Residential
Days of any failing reported directly to the City.
Franchisee agrees to pay (as Liquidated Damages and not as a penalty) the amounts set forth below:
Event of Non-Performance Liquidated Damage
Collection Reliability and Quality
1 Failure to Implement three-Container System. For each
occurrence of failing to provide Customers with
Recyclable Materials Containers as part of the three-
Container system required by and compliant with the
Municipal Code (excluding Generators and Customers that
demonstrate compliance with Recycling and Organic
Waste Self-Hauling requirements pursuant to the
Municipal Code and 14 CCR Division 7, Article 12,
Article 7):
$150 / Generator or Customer /
occurrence / Day until compliance
achieved
2 For each failure over five (5) annually to commence
service to a new Customer account within seven (7)
calendar days after order:
$150.00
3 For each failure over ten (10) annually to Collect
Recyclable Materials, which has been properly set out for
Collection, from an established Customer account on the
scheduled Collection day:
$150.00
4 For each failure to Collect Recyclable Materials which
have been properly set out for Collection, from the same
Customer on two (2) consecutive scheduled pickup days:
$150.00
5 For each occurrence over five (5) annually of damage to
private property:
$250.00
6 For each occurrence of discourteous behavior:
$250.00
7 For each failure over ten (10) annually to clean up
Recyclable Materials spilled by Franchisee from
Containers:
$150.00
8 For each occurrence over five (5) annually of Collecting
Recyclable Materials during unauthorized hours:
$250.00
9 For each failure to respond to a Customer Complaint
within twenty-four (24) working hours:
$100.00
10 Failure to Comply with Container Labeling and Colors.
For each occurrence of Franchisee’s failure to comply with
Container labeling and color requirements pursuant to
Section 5.6 of this Agreement:
$150 / Container / occurrence
11 Use of Unauthorized Facilities. For each individual
occurrence of delivering Discarded Materials to a Facility
other than an Approved Facility(ies) for each Discarded
Material type under this Agreement:
$150 / Ton / occurrence
Reports and Timeliness of Submissions to the City
12 Reports. Any report shall be considered late until such
time as a correct and complete report is received by City.
Deleted: ¶
Deleted: Contractor…ranchisee agrees to pay (as liquidated ...
Deleted: ¶...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Deleted: Contractor
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Deleted: Contractor
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Formatted ...
Page 677 of 984
Recycling Services Agreement
44
Deleted: Residential
Event of Non-Performance Liquidated Damage
For each calendar day a report is late, the daily assessment
shall be:
Monthly Reports: For each infraction $100 per day
Annual Reports: For each infraction $500 per day
13 Failure to Allow Access to Records. For each failure to
provide access to records in compliance with and in the
timeframe specified in this Agreement:
$120 / day
Other
14 Failure to Perform Public Education and Outreach. For
each failure to perform any individual education and
outreach activity as required and in the timeframe
specified by this Agreement:
$180 / occurrence
15 Failure to Issue Contamination Notices. For each failure of
Franchisee Collection personnel to issue contamination
notices and maintain documentation of issuance as
required by Section 5.4 of this Agreement:
$100 / Franchisee Route / day
16 Improper Fee Issuance. For each fee that is issued to a
Generator without prior authorization from City under this
agreement:
$100 /Customer/Day
Liquidated damages will only be assessed after Franchisee has been given the opportunity but failed to
rectify the damages, as described in this Agreement (e.g., twenty-four (24) working hours to respond to a
Complaint). City may determine the occurrence of events giving rise to Liquidated Damages through the
observation of its own employees or representative or investigation of Customer Complaints.
Prior to assessing Liquidated Damages, City shall give Franchisee notice of its intention to do so. The
notice will include a brief description of the incident(s)/non-performance. Franchisee may review (and
make copies at its own expense) all information in the possession of City relating to incident(s)/non-
performance. Franchisee may, within ten (10) Business Days after receiving the notice, request a meeting
with City. If a meeting is requested, it shall be held by the City Manager or their designee. Franchisee
may present evidence in writing and through testimony of its employees and others relevant to the
incident(s)/non performance. The City Manager or designee will provide Franchisee with a written
explanation of their determination on each incident(s)/non-performance prior to authorizing the
assessment of Liquidated Damages. The decision of the City Manager or designee shall be final
C. Amount. The City Manager may assess liquidated damages for each calendar day or event, as
appropriate, that Franchisee is determined to be liable in accordance with this Agreement.
D. Timing of Payment. Franchisee shall pay any liquidated damages assessed by City within ten (10)
calendar days after they are assessed. If they are not paid within the ten (10) calendar day period, City
may proceed against the performance bond required by this Agreement or order the termination of this
Agreement, or both.
12.4 Excuse from Performance
The parties shall be excused from performing their respective obligations hereunder in the event they
are prevented from so performing by reason of floods, earthquakes, other "acts of God", war, civil
insurrection, riots, acts of any government (including judicial action), and other similar catastrophic
events which are beyond the control of and not the fault of the party claiming excuse from performance
hereunder. Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out,
picketing, or other concerted job action conducted by Franchisee's employees or directed at Franchisee
or its selected facilities is not an excuse from performance and Franchisee shall be obligated to continue
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Deleted: Contractor
Formatted: Font: 11 pt
Deleted: Contractor
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Formatted: Font: 11 pt
Deleted: Contractor…ranchisee has been given the
opportunity but failed to rectify the damages, as described
in this Agreement (e.g., twenty-four (24) working hours to
respond to a complaint…omplaint). City may determine
the occurrence of events giving rise to liquidated
damages…iquidated Damages through the observation of
its own employees or representative or investigation of
customer complaints ...
Deleted: ¶...
Deleted:
Deleted: …he City Manager or designee will provide
Contractor…ranchisee with a written explanation of his or
her…heir determination on each incident(s)/non-
performance prior to authorizing the assessment of
liquidated damages.…iquidated Damages. The decision of
the City Manager or designee shall be final....
Deleted: ¶...
Deleted: Contractor…ranchisee shall pay any liquidated
damages assessed by City within ten (10) calendar days ...
Deleted: Contractor…ranchisee's employees or directed ...
Page 678 of 984
Recycling Services Agreement
45
Deleted: Residential
to provide service notwithstanding the occurrence of any or all such events.
The party claiming excuse from performance shall, within two (2) Business Days after such party has
notice of such cause, give the other party notice of the facts constituting such cause and asserting its
claim to excuse under this Section.
The interruption or discontinuance of Franchisee's services caused by one or more of the events
excused shall not constitute a default by Franchisee under this Agreement. Notwithstanding the
foregoing, however, if Franchisee is excused from performing its obligations hereunder for any of the
causes listed in this Section for a period of seven (7) Business Days or more, City shall have the right
to review the circumstances under which the excuse from performance was granted. After such review,
if the City determines the excuse from service is no longer valid, the City shall notify the Franchisee in
writing to resume service within two (2) Business Days from the receipt of such notification. If the
Franchisee fails to resume service within the two (2) Business Days, the City shall have the right to
terminate this Agreement by giving ten (10) Business Days’ notice, in which case the provisions
relative to taking possession of Franchisee's land, equipment and other property and engaging
Franchisee's personnel in Article 11, City's Right to Perform Services, and this Article 12 shall apply.
12.5 Financial Material Errors, Omissions or Irregularities
The City may review, test and audit the books and records of the Franchisee for the purpose of determining
whether the Franchisee is complying with the terms of the Agreement. In the event that material errors or
omissions or irregularities are identified, then the cost associated with the audit, test or review shall be paid
by the Franchisee to the City. In the case of errors, materiality shall be deemed to be two percent (2%) or
greater of the gross revenues of the Franchisee from
. activities performed under this agreement. Recovery of any over payment will be negotiated on a case-
by-case basis, either immediately or through the next rate setting evaluation.
Deleted: ¶
Deleted: days
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: days
Deleted: Contractor
Deleted: days
Deleted: Contractor
Deleted: days
Deleted: 1O) days
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted:
Deleted: ¶
Page 679 of 984
Recycling Services Agreement
46
Deleted: Residential
ARTICLE 13.
OTHER AGREEMENTS OF THE PARTIES
13.1 Relationship of Parties
The parties intend that Franchisee shall perform the services required by this Agreement as an independent
Franchisee engaged by City and not as an officer or employee of City nor as a partner of or joint venture
with City. No employee or agent or Franchisee shall be or shall be deemed to be an employee or agent of
City. Except as expressly provided herein, Franchisee shall have the exclusive control over the manner and
means of conducting the Recycling services performed under this Agreement, and all Persons performing
such services. Franchisee shall be solely responsible for the acts and omissions of its officers, employees,
subcontractors and agents. Neither Franchisee nor its officers, employees, subcontractors and agents shall
obtain any rights to retirement benefits, workers compensation benefits, or any other benefits Which
accrue to City employees by virtue of their employment with City.
13.2 Compliance with law
In providing the services required under this Agreement, Franchisee shall at all times, at its sole cost,
comply with all applicable laws of the United States, the State of California, City, and with all applicable
regulations promulgated by federal, state, regional or local administrative and regulatory agencies, now in
force and as they may be enacted, issued or amended during the Term.
13.3 Governing Law
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the
State of California.
13.4 Jurisdiction
Any lawsuits between the parties arising out of this Agreement shall be brought and concluded in the
courts of the State of California, which shall have exclusive jurisdic tion over such lawsuits.
13.5 Assignment
Except as may be provided for in Article 11, (City's Right to Perform Service), neither party shall assign
its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement to any other
Person without the prior written consent of the other party. Any such assignment made without the consent
of the other party shall be void and the attempted assignment shall constitute a material breach of this
Agreement. The Franchisee shall consent to any assignment to a joint powers authority, or any similar
public entity assignee of the City.
For purposes of this Section when used in reference to Franchisee, "assignment" shall include, but not be
limited to (1) a sale, exchange or other transfer of at least fifty-one percent (51%) all of Franchisee's assets
dedicated to service under this Agreement to a third party; (2) a sale, exchange or other transfer of
outstanding common stock of Franchisee to a third party provided said sale, exchange or transfer may
result in a change of control of Franchisee;. (3) any dissolution, reorganization, consolidation, merger, re-
capitalization, stock issuance or re- issuance, voting trust, pooling agreement, escrow arrangement,
liquidation or other transaction to which results in a change of ownership or control of Franchisee; (4)
any assignment by operation of law, including insolvency or bankruptcy, making assignment for the
benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment
of a receiver taking possession of Franchisee's property, or transfer occurring in the event of a probate
proceeding; and (5) any combination of the foregoing (whether or not in related or contemporaneous
transactions) which has the effect of any such transfer or change of ownership, or change of control of
Franchisee.
Franchisee acknowledges that this Agreement involves rendering a vital service to City's residents and
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 680 of 984
Recycling Services Agreement
47
Deleted: Residential
businesses, and that City has selected Franchisee to perform the services specified herein based on (1)
Franchisee's experience, skill and reputation for conducting its Solid Waste management operations in a
safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws,
regulations and best waste management practices, and (2) Franchisee's financial resources to maintain the
required equipment and to support its indemnity obligations to City under this Agreement. City has relied
on each of these factors, among others, in choosing Franchisee to perform the services to be rendered by
Franchisee under this Agreement.
If Franchisee requests City's consideration of and consent to an assignment, City may deny or approve
such request in its complete discretion. The City is concerned about the possibility that assignment could
result in significant rate increases, as well as a change in the quality of service. Accordingly, the following
standards have been set to ensure that assignment will result in continued quality service. In addition, the
City reserves the right to solicit competitive bids for these services if the assignment results in a request by
the assignee for rate increases that are higher than the inflationary index and do not reflect value changes
in service standards. At a minimum, no request by Franchisee for consent to an assignment need be
considered by City unless and until Franchisee has met the following requirements:
A. Franchisee shall undertake to pay City its reasonable expenses for attorney's fees and investigation
costs necessary to investigate the suitability of any proposed assignee; and to review and finalize
any documentation required as a condition for approving any such assignment;
B. Franchisee shall furnish City with audited financial statements of the proposed assignee's
operations for the immediately preceding three (3) operating years;
C. Franchisee shall furnish City with satisfactory proof: 1) that the proposed assignee has at least ten
(10) years of Recyclable Material management experience on a scale equal to or exceeding the
scale of operations conducted by Franchisee under this Agreement; 2) that in the last five (5)
years, the proposed assignee has not suffered any significant citations or other censure from any
federal, state or local agency having jurisdiction over its Solid Waste management operations due
to any significant failure to comply with state, federal or local Environmental Laws and that the
assignee has provided City with a complete list of such citations and censures; 3) that the proposed
assignee has at all times conducted its operations in an environmentally safe and conscientious
fashion; 4) that the proposed assignee conducts its Recyclable Materials management practices in
accordance with sound waste management practices in full compliance with all federal, state and
local laws regulating the Collection, transportation, processing, marketing and disposal of Solid
Waste including Hazardous Wastes; and 5) of any other information required by City to ensure the
proposed assignee can fulfill the Terms of this Agreement in a timely safe and effective manner.
Under no circumstances shall the City be obliged to consider any proposed assignment by Franchisee if
Franchisee is in default at any time during the period of consideration.
13.6 Subcontracting
Except as approved in writing by the City, Franchisee shall not enter into an agreement to have another
Person perform Franchisee's duties of this Agreement. Franchisee shall undertake to pay City its
reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of
any proposed subcontractor, and to review and finalize any documentation required as a condition for
approving any such subcontracting agreement.
13.7 Binding on Assigns
The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns of
the parties.
13.8 Transition to Next Franchisee
If the transition of services to another Franchisee occurs through expiration of term, default and
Deleted: Contractor…ranchisee to perform the services
specified herein based on (1) Contractor…ranchisee's
experience, skill and reputation for conducting its Solid
Waste management operations in a safe, effective and
responsible fashion, at all times in keeping with applicable
Environmental Laws, regulations and best waste
management practices, and (2) Contractor…ranchisee's
financial resources to maintain the required equipment and
to support its indemnity obligations to City under this
Agreement. City has …elied …n …ach …f …hese
factors, …among others, in choosing
Contractor…ranchisee to perform the services to be
rendered by Contractor ...
Deleted: Contractor…ranchisee requests City's
consideration of and consent to an assignment, City may
deny or approve such request in its complete discretion.
The City is concerned about the possibility that
assignment could result …n significant …ate increases,
as well …s …a change in the quality of service.
Accordingly, the following standards have been set to
ensure that assignment will result in continued quality
service. In addition, the City reserves …the right to solicit
competitive bids for these services if the assignment
results in a request by the assignee for rate increases that
are higher than the inflationary index and …o not reflect
value changes …n service standards. At a minimum, no
request by Contractor…ranchisee for consent to an
assignment need be considered by City unless and until
Contractor…...
Deleted: Contractor…ranchisee shall undertake to pay
City its reasonable expenses for attorney's fees and
investigation costs necessary to investigate …he
suitability of any proposed ...
Deleted: Contractor
Deleted: Contractor…ranchisee shall furnish City with
satisfactory proof: 1) that the proposed assignee has at
least ten (1O…0) years of Recyclable Material
management experience on a scale equal to or
exceeding the scale of operations conducted by
Contractor…...
Deleted: ¶
Deleted: ,
Deleted: Contractor…ranchisee if Contractor ...
Deleted: Contractor…ranchisee shall not enter into an
agreement to have another Person perform
Contractor…ranchisee's duties of this Agreement.
Contractor…...
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Page 681 of 984
Recycling Services Agreement
48
Deleted: Residential
termination, or otherwise, Franchisee will cooperate with City and subsequent Franchisee(s) to assist in an
orderly transition which will include Franchisee providing route lists and billing information. Franchisee
will not be obliged to sell collection vehicles or Containers to the next Franchisee. Depending on
Franchisee's circumstances at the point of transition, Franchisee at its option may enter into negotiations
with the next Franchisee to sell (in part or all) Collection vehicles and/or containers.
13.9 Parties in Interest
Nothing in the Agreement, whether express or implied, is intended to confer any rights on any persons
other than the parties to it and their representatives, successors and permitted assigns.
13.10 Waiver
The waiver by either party of any breach or violation of any provisions of this Agreement shall not be
deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of
violation of the same or any other provision. The subsequent acceptance by either party of any monies
which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach
or violation by the other party of any provision of this Agreement.
13.11 Franchisee's Investigation
Franchisee has relied on its own investigations, and not on any representations of the City or its agents of
the conditions and circumstances surrounding the Agreement and the work to be performed by it.
13.12 Notice
All notices, demands, requests, proposals, approvals, consents and other communications which this
Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered
to a representative of the parties at the address below or be deposited in the United States mail, first class
postage prepaid, addressed as follows:
If to City: Utilities Director
City of San Luis Obispo 879 Morro Street
San Luis Obispo, CA 93401
If to Franchisee: Tom Martin
San Luis Garbage Company 2945 McMillan #136
San Luis Obispo, CA 93401
The address to which communications may be delivered may be changed from time to time by a notice
given in accordance with this Section. The notice, if mailed, is deemed served three (3) days after the
mailing.
13.13 Representatives of the Parties
References in this Agreement to the “City” shall mean the City Council and all actions to be taken by City
shall be taken by the City Council except as provided below. The City Council may delegate, in writing,
authority to the City Manager, Utilities Director, and/or to the City employees and may permit such
employees, in turn, to delegate in writing some or all of such authority to subordinate employees.
Franchisee may rely upon actions taken by such delegates if they are within the scope of the authority
properly delegated to them.
Franchisee shall, by the Effective Date, designate in writing a responsible officer who shall serve as the
representative of Franchisee in all matters related to the Agreement and shall inform City in writing of
such designation and of any limitations upon their authority to bind Franchisee. City may rely upon action
taken by such designated representative as actions of Franchisee unless they are outside the scope of the
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: effective date
Deleted: Contractor
Deleted: his or her
Deleted: Contractor
Deleted: Contractor
Page 682 of 984
Recycling Services Agreement
49
Deleted: Residential
authority delegated to them by Franchisee as communicated to City.
13.14 City Free to Negotiate with Third Parties
City may investigate all options for the Collection, processing and marketing of Recyclable Materials after
the expiration of the Term. Without limiting generality of the foregoing, City may solicit proposals from
Franchisee and from third parties for the provision of Recycling services, and any combination thereof,
and may negotiate and execute Agreements for such services which will take effect upon the expiration or
earlier termination under Section 12.1 (Events of Default) of this Agreement.
13.15 Compliance with City Code
Franchisee shall comply with those provisions of the City code which are applicable, and with any and all
amendments to such applicable provisions during the Term of this Agreement.
13.16 Privacy
Franchisee 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 contractor, 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
Franchisee from preparing, participating in, or assisting in the preparation of waste characterization studies
or waste stream analyses which may be required by AB 939.
Deleted: him/her
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 683 of 984
Recycling Services Agreement
50
Deleted: Residential
ARTICLE 14.
MISCELLANEOUS AGREEMENTS
14.1 Entire Agreement
This Agreement, including the exhibits, represents the full and entire Agreement between the parties with
respect to the matters covered herein.
14.2 Section Headings
The article headings and section headings in this Agreement are for convenience of reference only and are
not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions.
14.3 References to laws and Other Agreements
All references in this Agreement to laws shall be understood to include such laws as they may be
subsequently amended or recodified, unless otherwise specifically provided. This Agreement supersedes
any and all Agreements for Recyclable Materials Collection, processing and/or marketing heretofore
entered into by the parties and the City.
14.4 Interpretation
This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably and
neither for nor against either party, regardless of the degree to which either party participated in its
drafting.
14.5 Agreement
This Agreement may not be modified or amended in any respect except by a writing signed by the parties.
14.5 Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable,
the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this
Agreement which shall be enforced as if such invalid or unenforceable provi sion had not been contained
herein.
14.6 Exhibit
Exhibit "A" is attached hereto and incorporated herein and made a part hereof by this reference.
Exhibit B – Recordkeeping and Reporting is attached to this Amendment and is hereby incorporated into
the Agreement.
Deleted: ,
Deleted: ¶
¶
¶
¶
¶
¶
¶
<object>¶
47¶
Page 684 of 984
Recycling Services Agreement
51
Deleted: Residential
EXHIBIT B
Record Keeping and Reporting
B.1 General
Franchisee shall maintain such accounting, statistical, and other records related to its performance
under this Agreement as shall be necessary to develop the reports required by this Agreement or
City Municipal Code. Franchisee agrees to conduct data collection, information and record
keeping, and reporting activities needed to comply with Applicable Laws and regulations and to
meet the reporting and Discarded Materials Collection, Processing, and Disposal program
management needs of the City. At the written direction or approval of City, the records and reports
to be maintained and provided by Franchisee in accordance with this Exhibit and other Articles of
the Agreement may be adjusted in number, format, and frequency, if required to comply with State
or Federal regulatory or reporting requirements.
Information from Franchisee’s records and reports can be used to, among other things:
Determine and set Rates and evaluate the financial efficacy of operations;
Evaluate past and expected progress toward achieving the Franchisee’s Landfill Disposal reduction
or Diversion goals and objectives;
Provide concise and comprehensive program information and metrics for use in fulfilling reporting
requirements under Applicable Law;
Determine needs for adjustment to programs;
Evaluate Customer service and Complaints; and,
Determine Customer compliance with AB 341, AB 1826, and SB 1383 statutes and corresponding
regulations; and, any subsequent State-mandated landfill Disposal reduction, Recycling, recovery,
or Diversion statutes, regulations, or other requirements.
B.2 Record Keeping
A. General. Franchisee shall maintain Customer contact data, Customer service, accounting,
statistical, operational, and other records related to its performance as shall be necessary to provide
reporting required by this Agreement and Applicable Law and to demonstrate compliance with this
Agreement and Applicable Law (such as, but not limited to, AB 939, AB 341, AB 1826, AB 876,
AB 901, and SB 1383 statutes and corresponding regulations).
Record keeping and reporting requirements specified in this Agreement shall not be consi dered a
comprehensive list of reporting requirements. In particular, this Exhibit is intended to highlight
the general nature of records and reports and their minimum content and is not meant to
comprehensively define the scope and content of the records and reports that Franchisee is
required to maintain and report by Applicable Law or this Agreement. Upon written direction or
approval of City, the records and reports required by Franchisee in accordance with this and other
Articles of the Agreement shall be adjusted in number, format, or frequency.
Franchisee shall maintain adequate records, and corresponding documentation, of information
required by this Exhibit, such that the Franchisee is able to produce accurate monthly and annual
reports, and is able to provide records to verify such reports. Franchisee will make these records
available and provide to the City any record or documentation necessary for the City to fulfill
obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826, AB
876, AB 901, and SB 1383 statutes and corresponding regulations; and, other current or future
Federal, State, or local statutes and regulations, as amended. Upon request by the City, Franchisee
shall provide access to Franchisee’s requested records in a timely manner, not to exceed ten (10)
Business Days from the time of City’s request to Franchisee.
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 685 of 984
Recycling Services Agreement
52
Deleted: Residential
B. Record Retention and Security. Records shall be maintained in forms and by methods that
facilitate flexible use of data contained in them to structure reports, as needed, pursuant to this
Exhibit. Franchisee’s records shall be stored in one central location, physical or electronic, that can
be readily accessed by Franchisee. City reserves the right to require the Franchisee to maintain the
records required herein through the use of a City-selected web-based software platform, at
Franchisee’s expense. Unless otherwise required in this Exhibit, Franchisee shall retain all records
and data required to be maintained by this Agreement for the Term of this Agreement plus five (5)
years after its expiration or earlier termination.
Records and data shall be in chronological and organized form and readily and easily interpreted.
Franchisee shall maintain adequate record security to preserve records from events that can be
reasonably anticipated such as a fire, theft, and an earthquake. Electronically maintained data and
records shall be protected and backed-up. To the extent that Franchisee utilizes its computer
systems to comply with record keeping and reporting requirements under this Agreement,
Franchisee shall, on a monthly basis, save all system-generated reports supporting those record
keeping and reporting requirements in a static format in order to provide an audit trail for all data
required.
D. Compilation of Information for State Law Purposes. Franchisee shall maintain accurate records
for its operation, including, but not limited to, Discarded Materials quantities Collected and
quantities Transported to or Transferred to each Approved Facility, listed separately by material
type, Customer type, and Facility. Records shall be maintained in such form by methods that
facilitate the use of data for the production of reports as needed. Franchisee will make these
records available and provide to the City, any record or documentation necessary for the City to
fulfill obligations under Applicable Law including, but not limited to, AB 939, AB 3 41, AB 1826,
AB 876, AB 901, AB 1595, and SB 1383 statutes and corresponding regulations; and, other
current or future local, Federal or State statutes and regulations, as amended.
B.3 Reporting
B.3.1 General
A. General Purpose. Reports are intended to compile recorded data into useful forms of
information that can be used by the City. All reports shall be adequate to meet City’s current and
future reporting requirements to CalRecycle, including AB 939, AB 341, AB 1826, and SB 1383
statutes and corresponding regulations, or any other State or Federal agency statutes and
regulations throughout the Term of this Agreement.
B. Failure to Report. Failure of Franchisee to comply with the reporting requirements as set
forth in this Section may result in an assessment of Liquidated Damages in accordance with the
Liquidated Damages provision in Section 12.3 of this Agreement. Franchisee’s repeated failure to
submit reports, and/or failure to submit reports on time, may be deemed an event of default and
may result in the termination of the Agreement at the discretion of the City Manager, in
accordance with Article 12 of this Agreement.
C. Report Format. Franchisee shall submit all reports to the City electronically via e-mail
using software acceptable to the City. The City reserves the right to require the Franchisee to
maintain records and submit the reports required herein through use of the City -selected web-
based software platform and/or Microsoft Excel spreadsheet, at the Franchisee’s expense.
D. Submittal Process. All reports shall be submitted to the City, Department of Public Works,
Solid Waste Planning and Recycling Program and the Department of Environmental Health Local
Enforcement Agency or as directed by the City Manager. Reports shall be submitted electronically
via email or uploaded to a document sharing platform agreed upon by the Parties. City reserves the
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: C.
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 686 of 984
Recycling Services Agreement
53
Deleted: Residential
right to require the Franchisee to maintain records and submit the reports required herein through
use of a City-selected web-based software platform, at the Franchisee’s expense.
Monthly reports shall be submitted within twenty (20) calendar days after the end of the reporting
month; and annual reports shall be submitted before September 30th, for the previous reporting
year.
B.3.2 Monthly Reports
Monthly reports shall be submitted by Franchisee to City and shall include the following information
pertaining to the most recently-completed calendar month. In addition, each monthly report shall include a
year-to-date summary page that includes the data submitted from the monthly report(s) submitted in the
calendar year prior to the submittal of the current monthly report. Franchisee shall report the information
included in the following subsections.
A. Tonnage Report
1. Franchisee shall report the total quantities in Tons of Discarded Materials Collected,
Transferred, Processed, and Disposed by the Franchisee, all of which shall be based on actual
certified scale weights for each load, if available, or similarly accurate methodology pursuant to
weighing protocol. Tonnage shall be reported separately by:
a. Material type, which shall include, at a minimum, separate reporting of Source
Separated Recyclable Materials and any other type of Discarded Material separately
Collected by Franchisee;
b. Customer/sector type (Single-Family, Multi-family, Commercial Roll-off, C&D); and,
c. Approved Facility and Facility type.
2. Report Residue level and Tonnage for all Discarded Materials Processed, listed separately
by material type Collected and Approved Facility(ies) used.
3. Source Separated Recyclable Materials Tonnage Marketed, by commodity, an d including
average commodity value for each, and Processing Residue Tonnage Disposed, listed
separately by material type Collected and Approved Facility(ies) used.
4. Documentation of all Discarded Materials exported out of State, as provided in 14 CCR
Sections 18800 through 18813.
B. Collection and Subscription Report
1. Number of Containers at each Service Level by Customer Type and program, including:
a. A summary of the total gallons of Cart service, cubic yards of Bin service, and pulls;
and cubic yards or Tons of Drop Box and Compactor service by Customer Type.
b. Calculation of the average volume of service received per: Single-Family Dwelling Unit
(separately identifying Dwelling Units in a duplex, triplex, or fourplex); Multi -Family
Dwelling Unit; and, Commercial Customer.
2. A summary of Customer subscription data, including the number of accounts; the number
of Customers subscribing to each Cart, Bin, and Roll -Off Service Level listed separately
for Single-Family, Multi-Family, and Commercial and separately for each type of
Discarded Material; and the number and type of waivers (i.e., de minimis or physical
space constraint) active for Customers for each type of Discarded material.
C. Contamination Monitoring Report
The Franchisee shall submit the following information regarding Franchisee conducted
contamination monitoring and issuance of Prohibited Container Contaminant notices conducted
pursuant to Section 5.4 of this Agreement:
1. Description of the Franchisee’s Process for determining the level of contamination;
2. Summary report of Customer Notices issued, which for each notice shall include the date
of issuance, Customer name, and service address.
3. A record of each inspection and contamination incident, which shall include, at a
minimum:
a. Name of the Customer
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted:
Deleted:
Deleted: Contractor
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: minimum
Deleted:
Page 687 of 984
Recycling Services Agreement
54
Deleted: Residential
b. Address of the Customer
c. The date the contaminated Container was observed
d. The staff who conducted the inspection
e. The total number of violations found and a description of what action was taken for ach
f. Copies of all notices issued to Generators with Prohibited Container Contaminants
g. Any photographic documentation or supporting evidence.
4. Any other information reasonably requested by the City or specified in contamination
monitoring provisions of this Agreement.
D. Customer Service Report
1. Franchisee shall maintain a record of all SB 1383 non-compliance Complaints as defined in 14
CCR Section 18995.3 and responses and submit the following information:
a. Total number of SB 1383 non-compliance Complaints received and total number of SB
1383 non-compliance Complaints investigated
b. Copies of documentation recorded for each SB 1383 non-compliance Complaint
received, which shall at a minimum include the following information:
i. The SB 1383 non-compliance Complaint as received;
ii. The name and contact information of the complainant, if the SB 1383 non -
compliance Complaint is not submitted anonymously;
iii. The identity of the alleged violator, if known;
iv. A description of the alleged violation; including location(s) and all other
relevant facts known to the complainant;
v. Any relevant photographic or documentary evidence submitted to support the
allegations in the SB 1383 non-compliance Complaint; and,
vi. The identity of any witnesses, if known.
c. Copies of all SB 1383 non-compliance Complaint reports submitted by Franchisee to
the City.
d. Copies of all investigation reports submitted to the City which shall include at
minimum:
i. The SB 1383 non-compliance Complaint as received;
ii. The date the Franchisee investigated the SB 1383 non-compliance Complaint;
iii. Documentation of the findings of the investigation;
iv. Any photographic or other evidence collected during the investigation; and,
v. Franchisee’s recommendation to the City on whether or not the entity
investigated is in violation of SB 1383 Regulations based on the Franchisee’s
investigation.
E. Education Program Report
The monthly status of activities identified in the annual public education plan described in Section
6.5 of this Agreement.
B.3.3 Annual Reports
In addition to the monthly reporting requirements in this Exhibit and Section 9.2, the Franchisee shall
provide an Annual Report, covering the most recently -completed calendar year, in accordance with the
format and submittal requirements of this Exhibit. The Annual Report shall include the information in the
following subsections.
A. Collection and Subscription Report
1. A summary of all data provided in the Tonnage report section, including quarterly and
annual totals and averages.
2. The type(s) of Collection service(s) provided, a list of all hauler routes serviced, and a
record of the addresses served on each hauler route.
3. A summary of Customer subscription data, including the number of accounts; the total
number of Generators enrolled with Franchisee for service, listed separately by Service
Deleted:
Deleted:
Deleted:
Deleted:
Deleted: e
Deleted:
Deleted:
Deleted:
Deleted:
Deleted: Contractor
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted: Contractor
Deleted: e
Deleted:
Deleted: a
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted:
Deleted:
Deleted: and annual
Deleted:
Deleted:
Deleted: Contractor
Page 688 of 984
Recycling Services Agreement
55
Deleted: Residential
Level and Container type (Cart, Bin, and Roll-Off service), separately by Single-Family,
Multi-Family, and Commercial Customers, and separately for each type of Discarded
Material.
4. A detailed list of Single-Family, Multi-Family, and Commercial Customer information,
including Solid Waste Container Waste, Recyclable Materials, and Organic Materials
Service Levels, Customer type, and Customer service addresses reflecting Customer
Service Levels as of December 1 (for the year in which the report is submitted)
B. Processing Facility Report
1. Temporary Equipment or Operations Failure: If the Franchisee is granted a Processing facility
temporary equipment or operational failure waiver, in accordance with Section 5.7 of the
Agreement, the Franchisee shall include the following documents and information:
a. The number of days the Processing Facility temporary equipment waiver or operation
failure waiver was in effect;
b. Copies of any notifications sent to the City pursuant to Section 5.7 of the Agreement, and
copies of City notices to Franchisee pursuant to Section 5.7 of the Agreement;
c. Documentation setting forth the date of issuance of the waiver, the timeframe for the
waiver; and,
d. A record of the Tons of Recyclable Materials redirected to an Alternative Facility or
Disposed at an Approved Disposal Facility as a result of the waiver, recorded by
Collection vehicle or Transfer vehicle number/load, date, and weight.
C. Compliance Monitoring and Enforcement Report
1. A summary of the total number of SB 1383 Regulatory non -compliance Complaints that were
received and investigated, and forwarded to the City or their designee.
2. The total number of Customer Notices, categorized by type of Generator.
3. The number of violations that were resolved, categorized by type of Generator.
4. Copies of all Customer Notices issued and educational materials issued to non -compliant
Generators.
D. Public Education and Outreach Report
1. A copy of all education and outreach materials provided to Generators, or otherwise used for
education and outreach efforts in accordance with this Agreement, including, but not limited to:
flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media
postings.
2. A record of the date and to whom the information was disseminated or direct contact made, in the
form of a list that includes: the Generator’s name or account name, the type of education or
outreach received; the distribution date, and the method of distribution.
3. For any mass distribution through mailings or bill inserts, the Franchisee shall maintain a record of
the date, a copy of the information distributed, and the type and number of accounts that received
the information.
4. A copy of electronic media, including the dates posted of: social media posts, e-mail
communications, or other electronic messages.
5. A summary of the status of the annual education plan of the reporting year, including activities
conducted and the quantitative and/or qualitative results of those activities.
6. The annual public education plan required by Section 6.5 of the Agreement for the upcoming then -
current calendar year. For example, Franchisee submittal of a 2022 annual report in February 2023
shall include Franchisee submittal of the annual public education plan for calendar year 2023.
B.3.4 Additional Reports
A. Upon Request Reporting. City reserves the right to request additional reports or documents in the
case of unforeseen legislative or regulatory changes, requests from CalRecycle, or additional requir ements
imposed upon the City. The Franchisee shall provide the requested reports, documents, or information
within ten (10) Business Days upon receipt of the request or within a timeframe determined by the City
Deleted:
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: ¶
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Page 689 of 984
Recycling Services Agreement
56
Deleted: Residential
Manager, which shall not to exceed ten (10) days.
Page 690 of 984
Recycling Services Agreement
57
Deleted: Residential
IN WITNESS WHEREOF, City and Franchisee have executed this Agreement as of the day and year
first above written.
The City of San Luis Obispo San Luis Garbage Company
“City” “Franchisee”
By: ___________________________ By: _______________________________
City Manager Name:
Title:
Attest:
City Clerk
Approved to Form:
________________________________
City Attorney
Deleted: ¶
¶
Deleted: Contractor
Formatted: Font: 11 pt
Page 691 of 984
Page 692 of 984
1
Organic Materials Services AgreementAMENDED AND RESTATED AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO
AND
SAN LUIS GARBAGE COMPANY
For Collection and Disposal of Organic Materials
Within the City of San Luis Obispo
This Agreement between the City of San Luis Obispo and San Luis Garbage Company for Collection and
processing of Organic Materials (“Agreement”), is made and entered into as of the ______ day of May, 2022
(the “Effective Date”) in the State of California by and between the City of San Luis Obispo, a political
subdivision of the State of California (hereafter “City”) and San Luis Garbage Company, a California
corporation (hereafter “Franchisee”), each of which may be referred to individually as a “Party” or together as
the “Parties.
RECITALS
This Agreement is made and entered into on the basis of the following facts, understandings, and intentions of
the Parties:
1. WHEREAS: The Parties entered into a Franchise Agreement for Green Waste and Food Waste
Collection on November 1, 2015 (“Agreement”); and,
2. WHEREAS: Section 4.6 of the Agreement provides City with the right to direct Contractor to modify
the scope of one or more types of service described in the Agreement, or to otherwise modify its
performance under the Agreement, subject to providing additional compensation; and,
3. WHEREAS: The State of California has found and declared that the amount of refuse generated in
California, coupled with diminishing Disposal capacity and potential adverse environmental impacts from
landfill Disposal and the need to conserve natural resources, have created an urgent need for State and
local agencies to enact and implement an aggressive integrated waste management program. The State
has, through enactment of AB 939 and subsequent related legislation including, but not limited to: the
Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB
1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics
Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383),
directed the responsible State agency, and all local agencies, to promote Diversion and to maximize the
use of feasible waste reduction, re-use, Recycling, and Composting options in order to reduce the amount
of refuse that must be Disposed; and
4. WHEREAS: SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid
Waste facilities, and other entities to support achievement of State-wide Organic Waste Disposal
reduction targets; and,
5. WHEREAS: SB 1383 requires the City to implement Collection programs for Organic Waste and
Recyclable Materials, meet Processing Facility requirements, conduct contamination monitoring, provide
education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other
requirements; and, the City has chosen to delegate some of its responsibilities to the Contractor, acting as
the City’s designee, through this Agreement; and
6. WHEREAS: Both Parties have, in good faith, negotiated changes to the Agreement necessary to support
the City’s compliance with SB 1383, as set forth herein.
Deleted: Food and Green Waste
Deleted: ¶
Deleted: ¶
¶
Deleted: ¶
Deleted: Food and Green Waste
Deleted: a California corporation, (Contractor)
Deleted: the
Deleted: Food and Green Waste and the performance of
other services related to meeting the goals and requirements
of the California Integrated Waste Management Act of
1989. …
Deleted: with reference to
Deleted: and circumstances
Deleted: ¶
I.The Legislature of the State of California, by
enactment of the California Integrated Waste Management
Act of 1989 (AB 939) Division 30 of the California Public
Resources Code, commencing with 40000, has declared
that it is within the public interest to authorize
Deleted: authorize, understandings, and require local
agencies to make adequate provisions for Food and Green
Waste handling within their jurisdictions. AB 939 requires
a fifty percent (50%) reduction in the amount of waste
which is landfilled by the year 2000; andintentions of the
parties:¶
Deleted: separate
Deleted: and processing
Deleted: Food and Green Waste
Deleted: produce usable compost was selected
Deleted: City's Source Reduction
Deleted: Element adopted , June 1994 hereinafter
referred to as the SRRE, as a means of meeting the 2000
State mandated diversion goals of AB 939Act of 2011
Deleted: Since March 1997 Contractor has provided the
City with green waste collection, transportation and
disposal services for residential properties, multi-family
dwelling units, institutional and commercial and
industrial properties; and¶
On September 28, 2014, the Governor approved AB 1826
which requires each jurisdiction, on and after January 1,
2016, to implement an organic waste recycling program
to divert organic waste from certain businesses; and¶
In order to implement AB l 826's requirements,
Contractor has proposed to enter into a long term
agreement with Hitachi Zosen Inova to construct and
operate a Kompogas facility at Contractor's property
located at 7388 Old Santa Fe Road, San Luis Obispo, to
compost food and green waste generated by the City, and¶
In order to finance such facility, Contractor requires a
twenty year commitment from the City to divert all food
and green waste to Contractor; and¶...
Page 693 of 984
Organic Materials Services Agreement
2
Deleted: Food and Green Waste
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions herein
contained, City and Contractor do hereby agree as follows:
Deleted: for and
Deleted: it is
Deleted: agreed by and between the City and Contractor
Page 694 of 984
Organic Materials Services Agreement
3
Deleted: Food and Green Waste
ARTICLE 1.
DEFINITIONS
1.1 “AB 341” means the California Jobs and Recycling Act of 2011 (Chapter 476, Statues of 2011
[Chesbro, AB 341]), also commonly referred to as “AB 341”, as amended, supplemented, superseded,
and replaced from time to time.
1.2 "AB 939” means the California Integrated Waste Management Act of 1989, (Division 30 of the
California Public Resources Code), also commonly referred to as "AB 939," as amended,
supplemented, superseded, and replaced from time to time.
1.3 “AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014
modifying Division 30 of the California Public Resources Code), also commonly referred to as "AB
1826," as amended, supplemented, superseded, and replaced from time to time.
1.4 "Affiliate" means all businesses (including corporations, limited and general partnerships and sole
proprietorships) which are directly or indirectly related to Company by virtue of direct or indirect
common ownership interest or common management shall be deemed to be "Affiliated with"
Franchisee and included within the term "Affiliates with" Franchisee and included within the
"Affiliates" as used herein. An Affiliate shall include a business in which Franchisee owns a direct or
indirect ownership interest, a business which has a direct or indirect ownership interest in Contractor
and/ or a business which is also owned, controlled or managed by any business or individual which
has a direct or indirect ownership interest exists, the constructive ownership provisions of Section
318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply;
provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in
Section 318(a)(2)(C) and in Section 318(a)(J)(C) thereof; and (ii) Section 3l8(a)(S)(C) shall be
disregarded. For purposes of determining ownership under this paragraph and constructive or indirect
ownership under Section J l 8(a), ownership interest of less than ten percent (10%) shall be
determined on the basis of the percentage of voting interest or value which the ownership interest
represents, whichever is greater.
1.5 "Agreement" means the Food and Green Waste (or “Organics”) Agreement (dated ________
including all exhibits and attachments, and any amendments thereto) between City and Franchisee for
Collection, processing and marketing of Food and Green Waste and other services related to meeting
the diversion goals and requirements of AB 939 and SB 1383.
1.6 “Applicable Law” means all Federal, State, County, and local laws, regulations, rules, orders,
judgments, degrees, permits, approvals, or other requirement of any governmental agency having
jurisdiction over the Collection, Transportation, and Processing of Recyclable Materials, Organic
Materials, and Solid Waste that are in force on the Effective Date and as may be enacted, issued or
amended during the Term of this Agreement. Applicable Law includes, but is in no way limited to,
AB 939, AB 341, AB 1826, and SB 1383.
“Approved Organic Materials Processing Facility” means the Hitachi Zosen lnova (HZI)
Kompogas Facility located at 4300 Old Santa Fe Rd, San Luis Obispo, CA 93401, and
Engel & Gray Inc. Regional Compost Facility, located at 745 West Betteravia Road, Santa
Maria, California, which have been selected by the Contractor and approved by the City.
1.7 “Approved Disposal Facility” means the Cold Canyon Landfill as the primary, owned and
operated by Waste Connections and located at 2268 Carpenter Canyon Rd, San Luis Obispo, CA 93401,
and Chicago Grade Landfill located at 2290 Homestead Rd, Templeton, CA 93465, or the Santa Maria
Deleted: ¶
Deleted: it may be
Deleted: Contractor
Deleted: Contractor
Deleted: Contractor
Deleted: 11/19/15
Deleted: Contractor
Deleted: ¶
Page 695 of 984
Organic Materials Services Agreement
4
Deleted: Food and Green Waste
Landfill located at 2065 E Main St, Santa Maria, CA 93454, as alternatives which have been selected by
the Contractor and approved by the City. Contractor shall notify City before using an alternative facility.
1.8 "Billings" means any and all statements or charges for services rendered by Contractor pursuant to
this Agreement.
1.9 “Bin” means a Container with capacity of approximately one (1) to eight (8) cubic yards, with a
hinged lid, and with wheels (where appropriate), that is serviced by a front end-loading and/or rear-
end loading Collection vehicle, including Bins with Compactors attached to increase the capacity of
the Bin.
1.10 "Bulky Item(s)” or “Bulky Waste” means discarded, large household appliances, furniture, tires,
carpets, mattresses, and similar large items which require special handling due to their size, but can be
Collected without the assistance of special loading equipment (such as forklifts or cranes) and without
violating vehicle load limits. It does not include abandoned automobiles.
1.11 “Bulky Item Collection Program” means the Contractor’s Collection service for bulky items,
including bulky Green Waste, in accordance with the Franchise Agreement for Solid Waste
Collection entered into on May ______, 2022 between the City and Contractor.
1.12 “Business Days” mean days during which the City offices are open to do business with the public.
1.13 “California Code of Regulations (CCR)” means the State of California Code of Regulations. CCR
references in this Agreement are preceded with a number that refers to the relevant Title of the CCR
(e.g., “14 CCR” refers to Title 14 of CCR).
1.14 "California Integrated Waste Management Act of 1989" means Public Resources Code§§ 40000
et. seq.
1.15 “CalRecycle” means California's Department of Resources Recycling and Recovery.
1.16 “Cart” means a plastic Container with a hinged lid and wheels that is serviced by an automated or
semi-automated Collection vehicle. A Cart has capacity of 20, 35, 64 or 96 gallons (or similar
volumes).
1.17 "City" means the City of San Luis Obispo, a municipal corporation and charter city, and all the
territory lying within the municipal boundaries of the City as presently existing or as such boundaries
may be modified during the Term of this Agreement, acting through the City Council or the City
Manager. The City may designate responsibilities to City staff, the IWMA, or a third party through
written letter between the City Manager and the designee.
1.18 "Collect" or "Collection" (or any variation thereof) means the act of taking physical possession of
Recyclable Materials, Organic Materials, Solid Waste, Bulky Items, and other material at the place of
generation in the City.
1.19 “Commercial” shall mean of, from, or pertaining to non-Residential Premises where business
activity is conducted, including, but not limited to, retail sales, services, wholesale operations,
manufacturing, and industrial operations, but excluding businesses conducted upon Residential
property which are permitted under applicable zoning regulations and are not the primary use of the
property.
Deleted: ¶
1.4
Deleted: 1.7
Deleted: to take
Deleted: , transport
Deleted: remove Food and Green Waste within and
fromother material at the place of generation in
Page 696 of 984
Organic Materials Services Agreement
5
Deleted: Food and Green Waste
1.20 "Commercially Generated Food and Green Waste" means Food and Green Waste generated at
commercial and/or industrial property and separated by the Waste Generator for Collection and which
are excluded from the scope of this Agreement as described in Article 4, Scope of Agreement.
1.21 “Compactor” means a mechanical apparatus that compresses materials together with the Container
that holds the compressed materials or the Container that holds the compressed materials if it is
detached from the mechanical compaction apparatus. Compactors include two (2) to eight (8) cubic
yard Bin Compactors serviced by front-end loader Collection vehicles and ten (10) to fifty (50) cubic
yard Drop Box Compactors serviced by Roll-Off Collection vehicles.
1.22 “Complaint” shall mean each written or orally communicated statement made by any Person,
whether to City or Contractor, alleging: (1) non-performance, or deficiencies in Contractor’s
performance of its duties under this Agreement; (2) a violation by Contractor of this Agreement; or,
(3) an SB 1383 Non-Compliance Complaint as required under 14 CCR Section 18995.3.
1.23 "Compost" (or any variation thereof) includes a controlled biological decomposition of Organic
Materials yielding a safe and nuisance free Compost product.
1.24 “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for
Compostability.
1.25 "Construction and Demolition Debris" or “C&D” means used or discarded construction materials
removed from a Premises during the construction, repair, demolition, or renovation of a structure.
1.26 "Container" means Bins, Carts, Compactors and franchise Roll-Offs.
1.27 "Contractor" means San Luis Garbage Company, a corporation organized and operating under the
laws of the State of California, and its officers, directors, employees, agents, companies, related-
parties, Affiliates, and Subcontractors where applicable.
1.28 “County” means the County of San Luis Obispo, a political subdivision of the State of California.
1.29 “Customer” means the Person whom Contractor submits its billing invoice to and collects payment
from for Collection services provided to a Premises. The Customer may be either the Occupant or
Owner of the Premises.
1.30 “Customer Notice” means the Contractor’s notice to Customer(s) as described in Section 5.4.
1.31 "Designated Collection Location" means the place where the Franchisee or an authorized Recycling
agent or a Solid Waste Collector has contracted with either the City or a private entity to Collect Solid
Waste.
1.32 “Designated Waste” means non-Hazardous Waste which may pose special Disposal problems
because of its potential to contaminate the environment, and which may be Disposed of only in Class
II Disposal sites or Class III Disposal sites pursuant to a variance issued by the California Department
of Health Services. Designated Waste consists of those substances classified as Designated Waste by
the State, in California Code of Regulations Title 23, Section 2522 as may be amended from time to
time.
1.33 “Discarded Materials” means Recyclable Materials, Organic Materials, and Solid Waste placed by a
Generator in a receptacle and/or at a location for the purposes of Collection, excluding Excluded
Deleted: <#>"Compost" means a stabilized humus
product which is the result of composting.¶
<#>¶
Deleted: <#>"Composting” means a controlled
biological decomposition that converts raw organic
matter into a stabilized humus product.¶
¶
Deleted: 1.11
Deleted: any bin, vessel, can or receptacle used for
Collection and storing FoodBins, Carts, Compactors
Deleted: Green Waste before removal
Deleted: 1.12
Deleted: and subcontractors
Deleted: ¶
Page 697 of 984
Organic Materials Services Agreement
6
Deleted: Food and Green Waste
Waste.
1.34 “Disposal Facility” means a landfill, or other Facility for ultimate Disposal of Solid Waste.
1.35 “Dispose” or “Disposal” (or any variation thereof) means the final disposition of Solid Waste or
Processing Residue at a Disposal Facility.
1.36 “Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from
Disposal at landfill or transformation facilities, (including facilities using incineration, pyrolysis,
distillation, gasification, or biological conversion methods) through source reduction, reuse,
Recycling, Composting, anaerobic digestion, or other method of Processing, subsequent to the
provisions of AB 939. Diversion is a broad concept that is to be inclusive of material handling and
Processing changes that may occur over the Term including, but not limited to, changes in standard
industry practice or implementation of innovative (but not necessarily fully proven) techniques or
technology that reduce Disposal risk, decrease costs and/or are for other reasons deemed desirable by
the City.
1.37 “Dwelling Unit” means any individual living unit in a; Single-Family Dwelling Unit or Multi-Family
Dwelling Unit or building, a mobile home, or a motor home located on a permanent site intended for,
or capable of being utilized for, Residential living other than a hotel or motel.
1.38 “Edible Food” means food intended for human consumption. For the purposes of this Agreement,
Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement
requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of
the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food
differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this
Agreement.
1.39 “Effective Date” means the date on which the latter of the two Parties signs this Agreement, as
specified in Section 2.2 of this Agreement.
1.40 "Environmental Laws" means all federal and state statutes, county, local and City ordinances and
regulations concerning public health, safety and the environment including, by way of example and
not limitation, the comprehensive Environmental Response, Compensation and Liability Act of 1980,
42 USC 9601 et seq.; the Resource Conservation and Recovery Act, 42 USC 6902 et seq.; the Federal
Clean Water Act, 33 USC 1251; the Toxic Substances Control Act, 15 USC 1601 et seq.; the
Occupational Safety and Health Act, 29 USC 651 et seq.: the California Hazardous Waste Control
Act, California Health and Safety Code 25100 et seq.; the California Toxic Substances Account Act,
California Health and Safety Code 25300 et seq.; the Safe Drinking Water and Toxic Enforcement
Act, California Health and Safety Code 25249.5 et seq.; as currently in force or as hereafter amended,
and all rules and regulations promulgated thereunder.
1.41 “Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated
Waste, volatile, corrosive, biomedical, infectious, biohazardous, and toxic substances or material,
waste that Contractor reasonably believes would, as a result of or upon Disposal, be a violation of
local, State or Federal law, regulation or ordinance, including land use restrictions or conditions,
waste that cannot be Disposed of in Class III landfills, waste that in Contractor’s reasonable opinion
would present a significant risk to human health or the environment, cause a nuisance or otherwise
create or expose Contractor or City to potential liability; but not including de minimis volumes or
concentrations of waste of a type and amount normally found in Residential Solid Waste after
Deleted: .
Page 698 of 984
Organic Materials Services Agreement
7
Deleted: Food and Green Waste
implementation of programs for the safe Collection, Recycling, treatment, and Disposal of batteries
and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code.
1.42 "Facility" means any plant or site utilized by Contractor (or a Subcontractor of Contractor) for the
purposes of performing the duties to fulfill this Agreement, including, without limitation, Transfer,
Processing, or Disposal of Discarded Materials Collected in the City.
1.43 "Facility Operation Date" means the date on which, following its start-up, testing and
commissioning, the Facility processes commercial quantities of Food and Green Waste.
1.44 “Federal” means belonging to or pertaining to the Federal government of the United States.
1.45 "Fiscal Year" means the period commencing on January 1 and concluding December 31 for
Contractor. For City it means the period commencing July 1 of one year and concluding June 30 of
the subsequent year.
1.46 “Food Recovery” means actions to Collect and distribute food for human consumption which
otherwise would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
1.47 “Food Scraps" means those Discarded Materials that will decompose and/or putrefy including: (i) all
kitchen and table Food Waste; (ii) animal or vegetable waste that is generated during or results from
the storage, preparation, cooking or handling of food stuffs; (iii) fruit waste, grain waste, dairy waste,
meat, and fish waste; and, (iv) vegetable trimmings, houseplant trimmings and other Compostable
Organic Waste common to the occupancy of Residential dwellings. Food Scraps are a subset of Food
Waste.
1.48 “Food-Soiled Paper” means Compostable paper material that has come in contact with Food Scraps
or liquid, such as, but not limited to, Compostable paper plates, napkins, and pizza boxes. Food -
Soiled Paper is a subset of Food Waste.
1.49 "Food Waste" means Source Separated Food Scraps and Food-Soiled Paper. Food Waste is a subset
of Organic Materials.
1.50 “Franchise Fee” means the fee paid by Contractor to the City as described in Article 7.
1.51 “Generator” or “Waste Generator” means any Person whose act or process produces Solid Waste
as defined in the Public Resources Code, or whose act first causes Solid Waste to become subject to
regulation.
1.52 "Green Waste" means those Discarded Materials that will decompose and/or putrefy, including, but
not limited to, green trimmings, tree trimmings, grass cuttings, weeds, dead plants, prunings, leaves,
branches, brush, dead trees, small pieces of untreated and unpainted wood, and other types of
Organic Waste resulting from normal yard and landscaping maintenance that may be specified in City
Legislation for Collection and Processing as Organic Materials under this Agreement. Green Waste
does not include items herein defined as Excluded Waste. Green Waste is a subset of Organic
Materials. Green Waste placed in Organic Materials for Collection may not exceed six (6) inches in
diameter.
1.53 “Hazardous Substance” means any of the following: (a) any substances defined, regulated or listed
(directly or by reference) as "Hazardous Substances", "hazardous materials", "Hazardous Wastes",
Deleted: 1.14
Deleted: subcontractor
Deleted: processing the City's Green Waste and Food
Waste. For purposes of Section 2.3, "Facility" means a
Kompogas facility (or other similar technology) capable
of processing the City's Green Waste and Food
Deleted: 1.15
Deleted: 1.16
Deleted: <#>"Food Waste" means a waste material of
plant or animal origin that results from the preparation or
processing of food for animal or human consumption and
that is separated from the municipal solid waste stream.
Food waste includes, but is not limited to, food waste from
food facilities as defined in Health and Safety Code
section 113789 (such as restaurants), food processing
establishments as defined in Health and Safety Code
section 111955, grocery stores, institutional cafeterias
(such as prisons, schools and hospitals), and residential
food scrap collection. Food waste does not include any
material that is required to be handled only pursuant to the
California Food and Agricultural Code and regulations
adopted pursuant thereto.¶
<#>¶
Deleted: Code, or
Deleted: 1.17
Deleted: and scrap
Deleted: (not more than
Deleted: ) and similar
Deleted: generated at the premises
Page 699 of 984
Organic Materials Services Agreement
8
Deleted: Food and Green Waste
"toxic waste", "pollutant", or "toxic substances", or similarly identified as hazardous to human health
or the environment, in or pursuant to: (i) the Comprehensive Environmental Response, Compensation
and Liability Act (CERCLA) of 1980, 42 USC §9601 et seq. (CERCLA); (ii) the Hazardous
Materials Transportation Act, 49 USC §1802, et seq.; (iii) the Resource Conservation and Recovery
Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq.; (v) California Health
and Safety Code §§25115-25117, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC §7901
et seq.; and, (vii) California Water Code §13050; (b) any amendments, rules or regulations
promulgated thereunder to such enumerated statutes or acts currently existing or hereafter enacted;
and, (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as
hazardous or toxic or regulated under any other Applicable Law currently existing or hereinafter
enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s (PCBs),
petroleum, natural gas, and synthetic fuel products, and by-products.
1.54 "Hazardous Waste" means any discarded material or mixture of materials, which is toxic, corrosive,
flammable, radioactive or which, because of its quantity, concentration, physical, chemical or
infectious characteristics may do harm to either humans, animals or the environment, or as defined in
A11icle 2, Chapter 6.5 625117 of the Health and Safety Code and Public Resources Code S40141.
1.55 “Holidays” are defined as New Year’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day.
1.56 “Liquidated Damages” means the amounts due by Contractor for failure to meet specific
quantifiable standards of performance as described in Article 12.
1.57 "Materials Recovery Facility" means a permitted Facility where Discarded Materials are sorted or
separated for the purposes of Recycling, Composting, Processing, or reuse.
1.58 "Multi-family Dwelling Unit" or “Multi-Family” or “MFD” means, notwithstanding any contrary
definition in the City Municipal Code, any Premises, other than a Single Family Dwelling Unit, used
for Residential purposes, irrespective of whether residence therein is transient, temporary, or
permanent, including such Premises when combined in the same building with Commercial
establishments, that receive centralized, shared, Collection service for all units on the Premises which
are billed to one (1) Customer at one (1) address. Customers residing in Townhouses, mobile homes,
condominiums, or other structures with five (5) or more Dwelling Units who receive centralized,
shared, Collection service for all units on the Premises which are billed to one (1) Customer at one (1)
address shall be considered Multi-Family.
1.59 “Occupant” means the Person who occupies a Premises.
1.60 “Organic Materials” means Green Waste and Food Waste, individually or collectively. No
Discarded Material shall be considered to be Organic Materials, however, unless it is separated from
Recyclable Materials and Solid Waste. Organic Materials are a subset of Organic Waste.
1.61 “Organic Waste” means wastes containing material originated from living organisms and their
metabolic waste products including, but not limited to, food, Yard Trimmings, lumber, wood, paper
products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise
defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section
18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
1.62 "Owner" means the Person holding the legal title to the real property and/or any improvements
Deleted: 1.18
Deleted: 1.19
Deleted: Solid Waste, Recyclable
Deleted: , Food or Green Waste
Deleted: 1.20
Deleted: means any
Deleted: Singk
Deleted: residential
Deleted: or permanent
Deleted:
Deleted: 1.21
Deleted: person
Deleted: constituting the Premises to which Food and
Green Waste collection service is to be provided under
this Agreementand/or any improvements thereon and
Page 700 of 984
Organic Materials Services Agreement
9
Deleted: Food and Green Waste
thereon and shall include the Person(s) listed on the latest equalized assessment roll of the County
Assessor.
1.63 “Party” or “Parties” refers to the City and Contractor, individually or together.
1.64 "Person" means any individual, firm, association, organization, partnership, consortium, corporation,
business trust, joint venture, Commercial entity, governmental entity, public entity, the United States,
the State of California, the County of San Luis Obispo, local agencies, cities, special purpose districts,
or any other legal Person.
1.65 "Premises" means any land or building in the City where Discarded Materials are generated or
accumulated.
1.66 “Process” or “Processing” means to prepare, treat, or convert through some special method.
1.67 “Prohibited Container Contaminants” means the following for the purposes of this Agreement: (i)
Discarded Materials placed in the Recyclable Materials Container that are not identified as acceptable
Recyclable Materials for the City’s Collection program; (ii) Discarded Materials placed in the
Organic Materials Container that are not identified as acceptable Organic Materials for the City’s
Collection program; (iii) Discarded Materials placed in the Solid Waste Container that are acceptable
Recyclable Materials and/or Organic Materials to be placed in the City’s Recyclable Materials or
Organic Materials Containers or otherwise managed under the City’s Collection program; and, (iv)
Excluded Waste placed in any Container.
1.68 "Recyclable Materials" or “Recyclables” means Recyclable Materials as defined under the
Franchise Agreement between the Parties for Recyclable Materials Collection, as it may be amended
from time to time.
1.69 “Recycle” or "Recycling" means the Process of sorting, cleansing, treating, and reconstituting at a
Recyclable Materials Processing Facility, materials that would otherwise be Disposed of at a landfill
for the purpose of returning such materials to the economy in the form of raw materials for new,
reused, or reconstituted products. Recycling includes Processes deemed to constitute a reduction of
landfill Disposal pursuant to 14 CCR, Division 7, Chapter 12, Article 2. Recycling does not include
gasification or transformation as defined in Public Resources Code Section 40201.
1.70 "Related Party Entity" means any Affiliate which has financial transactions with Contractor.
1.71 “Residential” shall mean of, from, or pertaining to a Single-Family Premises or Multi-Family
Premises including Single-Family homes, apartments, condominiums, Townhouse complexes, mobile
home parks, and cooperative apartments.
1.72 “Residue” means those materials which, after Processing, are Disposed rather than Recycled due to
either the lack of markets for materials or the inability of the Processing Facility to capture and
recover the materials.
1.73 “Roll-Off” means an open-top or lidded Container with a capacity of seven (7) to forty (40) cubic
yards that is serviced by a franchise roll-off Collection vehicle.
1.74 “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which
added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added
Deleted: 1.22
Deleted: and
Deleted: 1.23
Deleted: Solid Waste is
Deleted: <#>"Recyclable Materials" means residential
by-products or discards of economic value set aside,
handled, packaged or offered for Collection in a manner
different from Solid Waste. Including, but not limited to,
aluminum, newspaper, clear and colored glass, tin and bi-
metal, High density Polyethylene (HOPE), Polyethylene
Terephthalate (PET), cardboard, chipboard, and mixed
paper.¶
<#>¶
Deleted: process of separating for Collection,
CollectingProcess of sorting, cleansing
Deleted: /or
Deleted: Food and Green Waste which
Deleted: discarded without receiving compensation or
Deleted: them
Deleted: The Collection, transfer, transportation or
disposal of Food and Green Waste not intended for, or
capable of, reuse is not Recycling
Deleted: Company
Deleted: <#>"Single Family Dwelling Unit" means each
Premises used for or designated as a single family
residential dwelling, including each unit of a duplex or
triplex in all cases in which there is separate or individual
Solid Waste Collection services.¶
<#>¶
<#>"Solid Waste" means all putrescible and non-
putrescible refuse, garbage, green waste, construction and
demolition debris, rubbish, and Recyclable Materials, and
as otherwise defined in Public Resources Code 40191.¶
<#>¶
Page 701 of 984
Organic Materials Services Agreement
10
Deleted: Food and Green Waste
Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources
Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of
short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.
For the purposes of this Agreement, SB 1383 specifically refers to the Short-Lived Climate Pollutants
(SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted on November
3, 2020 that created Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14
CCR and 27 CCR.
1.75 “SB 1383 Renewable Natural Gas” or “SB 1383 RNG” means SB 1383 qualified gas derived from
Organic Waste that has been Diverted from a landfill and Processed at an in-vessel digestion Facility
that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise
defined in 14 CCR Section 18982(a)(62).
1.76 “Self-Haul” or “Self-Hauler” means a Person who hauls Discarded Materials, recovered material, or
any other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-
Hauler also includes a Person who back-hauls waste, as defined in 14 CCR Section 18982(a)(66)(A).
1.77 “Service Level” refers to the size of a Customer’s Container and the frequency of Collection service.
1.78 "Single Family Dwelling Unit" or “Single-Family” or “SFD” means, notwithstanding any contrary
definition in the Municipal Code, any detached or attached house or residence designed or used for
occupancy by one (1) family, provided that Collection service feasibly can be provided to such
Premises as an independent unit, and the Owner or Occupant of such independent unit is billed
directly for the Collection service. Single-Family includes Townhouses that maintain individual
collection service regardless of whether each unit is separately billed for their specific Service Level.
Single-Family also includes duplex, tri-plex, or four-plex Residential structures regardless of whether
each unit maintains individual collection service or is separately billed for their specific Service
Level.
1.79 "Solid Waste" means Solid Waste as defined in California Public Resources Code, Division 30, Part
1, Chapter 2, §40191 and regulations promulgated thereunder. Excluded from the definition of Solid
Waste are Excluded Waste, C&D, Source Separated Recyclable Materials, Source Separated Organic
Materials, and radioactive waste. Notwithstanding any provision to the contrary, Solid Waste may
include de minimis volumes or concentrations of waste of a type and amount normally found in
Residential Solid Waste after implementation of programs for the safe Collection, Recycling,
treatment, and Disposal of Household Hazardous Waste in compliance with Section 41500 and 41802
of the California Public Resources Code as may be amended from time to time. Solid Waste includes
salvageable materials only when such materials are included for Collection in a Solid Waste
Container not Source Separated from Solid Waste at the site of generation.
1.80 “Source Separated” means the segregation, by the Generator, of materials designated for separate
Collection for some form of Recycling, Composting, recovery, or reuse.
1.81 “State” means the State of California.
1.82 “Subcontractor” means a Party who has entered into a contract, express or implied, with the
Contractor for the performance of an act that is necessary for the Contractor’s fulfillment of its
obligations for providing service under this Agreement. Vendors providing materials and supplies to
Contractor shall not be considered Subcontractors.
Deleted: 1.27 "Single Family Dwelling Unit" means
each Premises used for or designated as a single family
residential dwelling, including each unit of a duplex or
triplex in all cases in which there is separate or individual
Solid Waste Collection services.¶
Deleted: 1.28 "Solid Waste" means all putrescible and
non-putrescible refuse, garbage, green waste, construction
and demolition debris, rubbish, and Recyclable Materials,
and as otherwise defined in Public Resources Code 40191.¶
¶
Page 702 of 984
Organic Materials Services Agreement
11
Deleted: Food and Green Waste
1.83 "Term" means the Term of this Agreement, including extension periods if granted, as provided for in
Article 2.
1.84 “Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000) standard
pounds.
1.85 “Townhouse” means an attached or semi-attached Dwelling Unit within a group of attached or semi-
attached Dwelling Units. A Townhouse shall be considered a Single-Family Dwelling Unit if each
unit maintains individual Collection service subscription. A Townhouse shall be considered a Multi-
Family Dwelling Unit if the Premise receives centralized, shared, Collection service for all units on
the Premise. These shall be the designations regardless of whether the Premises are billed individually
or through a central account (e.g., homeowner association, property manager).
1.86 “Transfer” means the act of transferring the materials Collected by Contractor in its route vehicles
into larger vehicles for Transport to other facilities for the purpose of Processing, Recycling, or
Disposing of such materials.
1.87 "Transfer Station” includes those facilities used to receive Solid Wastes, temporarily store, separate,
convert, or otherwise Process the materials in the Solid Wastes, or to Transfer the Solid Wastes
directly from smaller to larger vehicles for Transport and those facilities used for transformations.
1.88 "Waste Generator" or “Generator” means any Person as defined by the Public Resources Code,
whose act or Process produces Solid Waste as defined in the Public Resources Code, or whose act
first causes Solid Waste to become subject to regulation.
Deleted: 1.29
Deleted: term
Deleted: 1.30
Deleted: "
Deleted: solid wastes
Deleted: process
Deleted: solid wastes
Deleted: transfer
Deleted: solid wastes
Deleted: transport
Deleted: ¶
Deleted: 1.31
Deleted: process
Page 703 of 984
Organic Materials Services Agreement
12
Deleted: Food and Green Waste
ARTICLE 2.
GRANT AND ACCEPTANCE OF AGREEMENT
2.1 Grant and Acceptance of Agreement
Subject to Section 2.5 (Conditions to the Effectiveness of Agreement), City hereby grants to
Contractor an exclusive franchise to collect and process Organic Materials accumulating at all
Premises in the City that are offered for Collection to Contractor in accordance with this Agreement.
Contractor hereby accepts the Agreement on the terms and conditions set forth in this Agreement.
2.2 Effective Date
The effective date of this Agreement shall be May ________, 2022.
2.3 Term of Agreement
The term of this Agreement shall commence at 12:0 1 a.m.,
, May ______, 2022 and expire at midnight on ________, the twentieth (20th) annual anniversary of
the Facility Operation Date, subject to extension as provided in Section 2.4 (Option to Extend).
2.3.1 Term Contingency
The term of this Agreement shall not exceed thirty five (35) years from the commencement date set
forth in Section 2.3 above.In the event of a change of law or technology which would render the
collection and processing services to be implemented under this Agreement obsolete, unnecessary,
impractical, undesirable, or illegal, the City reserves the right to terminate this Agreement upon the
giving of a six (6) month prior written notice of City's election to so terminate this Agreement. It is
understood between Contractor and City that this Agreement is motivated by the passage of AB 939
and SB 1383, and that subsequent legislation could make this Agreement unnecessary and/or adverse
to the best interests of the City. In particular, City and Contractor acknowledge the possibility of
future legislation changing the requirements of AB 939 and SB 1383, and/or requiring a coordination
of the collection of Solid Waste, Food and Green Waste.
2.4 Option to Extend
The City shall have the sole option to extend this Agreement up to 36 months in periods of least
twelve (12) months each. If City elects to exercise this option, it shall give written notice not later
than one hundred eighty (180) days prior to the initial termination date, or, if one extension has been
exercised, one hundred eighty (180) days prior to the extended termination date.
2.5 Conditions to Effectiveness of Agreement
The obligation of City to permit this Agreement to become effective and to commence performing its
obligations under this Agreement is subject to the satisfaction of each and all of the conditions set out
in this Section 2.5 below, each of which may he waived in whole or in part by City.
A. Accuracy of Representations. The representations and warranties made by Contractor
throughout this Agreement are accurate, true and correct on and as of the effective date of this
Agreement.
B. Absence of Litigation. There is no litigation pending in any court challenging the award of this
Agreement to Contractor or the execution of this Agreement or seeking to restrain or enjoin its
performance.
Deleted: ¶
Deleted: Food and Green Waste
Deleted: November _, 2015
Deleted: Subject to Section 2.3.1 below, t
Deleted: November _, 2015
Deleted: The Contractor and City acknowledge that the
foregoing twenty (20) year term of the Agreement is
expressly contingent upon:¶
¶
<#>By no later than January 1, 2018, Contractor
executing a definitive long-term agreement with
Hitachi Zosen Inova U.S.A. LLC (or other company
approved by City) for the development, construction
and operation of a Kompogas Facility (or other similar
technology) capable of processing the City's Green
Waste and Food Waste; and¶
Deleted: ¶
¶
In the event Contractor does not enter into such definitive
agreement and/or the facility is not constructed and
operational within the time frames set forth in the Section
2.3.1, Contractor and City agree the that the term of this
Agreement shall be until August 20, 2025.¶
¶
Page 704 of 984
Organic Materials Services Agreement
13
Deleted: Food and Green Waste
C. Furnishing of Insurance and Bonds. Contractor has furnished evidence of the insurance and
bonds required by Article 10, Indemnification, Insurance and Bond.
D. Effectiveness of City Council Action. The City's Ordinance No. _____ approving this
Agreement, shall have become effective pursuant to California law on or prior to the effective
date of this Agreement.
2.6 Responsibilities of City
The City does not assume any responsibility for, nor shall it be held liable for damages for the failure
on the part of any Person producing Food or Green Waste material within the City to deliver the same
to Contractor; provided, however, it is mutually understood and agreed that the City and its officers
will at all times during the period of this Agreement cooperate to enforce the terms of this exclusive
Agreement as it relates to the Collection of Food and Green Waste within the City.
Deleted: 1624,
Page 705 of 984
Organic Materials Services Agreement
14
Deleted: Food and Green Waste
ARTICLE 3.
TERMS OF AGREEMENT
3.1 Contractor Status
Contractor is duly organized, validly existing and in good standing under the laws of the State of
California and has the financial ability to perform its obligations set forth in this Agreement.
Additionally, the Contractor has no suits or threatened suits which would impair the financial ability
of the Contractor to perform its obligations under this Agreement, and that the entering into this
Agreement by Contractor will not in any way constitute a breach of any other agreements entered into
by Contractor with other parties, or constitute a violation of any law.
3.2 Contractor Authorization
Contractor has the authority to enter into and perform its obligations under this Agreement. The
Board of Directors of Contractor (or the shareholders, if necessary) have taken all actions required by
law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement.
The persons signing this Agreement on behalf of Contractor have the authority to do so.
3.3 Compliance with Laws and Regulations
Contractor shall comply with all existing and future Applicable Law, with particular note of SB 1383,
Article X of the City Charter and Chapters 8.04 and 8.05 of the Municipal Code.
3.4 Serve Without Interruption
Contractor shall Collect and Process Organic Materials throughout the Term of this Agreement
without interruption, except as described in Section 12.4.
3.5 Permits and Licenses
Contractor shall procure, and keep in full force and affect, all permits and licenses, pay all charges
and fees, and give all notices as necessary.
3.6 Preservation of City Property
Contractor shall pay to the City, on demand, the cost of all repairs to public property made necessary
by any of the operations of Contractor under this Agreement.
Deleted: City, county, state, and federal laws, including
all Environmental LawsApplicable Law
Deleted: process Food and Green Waste
Deleted: term
Page 706 of 984
Organic Materials Services Agreement
15
Deleted: Food and Green Waste
ARTICLE 4.
SCOPE OF AGREEMENT
4.1 Scope of Agreement
Subject to Section 4.2 (Limitations to Scope), the Agreement granted to Contractor shall be exclusive
for Organic Materials Collection, except where otherwise precluded by Appliable Law.
4.2 Limitations to Scope
The Agreement for the Collection and Processing Organic Materials granted to Contractor shall be
exclusive except as to the following categories of Organic Materials listed in this Section. The
granting of this Agreement shall not preclude the categories of Organic Materials listed below from
being delivered to and Collected and Transported by others provided that nothing in this Agreement is
intended to or shall be construed to excuse any Person from obtaining any authorization from City
which is otherwise required by law:
A. Organic Materials which are separated at any Premises and which are Transported by the
Owner or Occupant of such Premises (or by their employee) to a Facility;
B. Green Waste removed from Premises by a gardening, landscaping, or tree trimming
company as incidental part of a total service offered by that company.
C. Contractor shall cooperate with and shall not impede, interfere, or attempt to impede or
interfere with the implementation, expansion, or operation of Food Recovery efforts in
the City.
Contractor acknowledges and agrees that City may permit other Persons beside Contractor to Collect
any or all types of the Organic Materials listed in this Section 4.2, without seeking or obtaining
approval of Contractor under this Agreement.
Agreement to Collect, Transport, and Process Organic Materials shall be interpreted to be consistent
with State and Federal laws, now and during the Term of the Agreement, and the scope of this
Agreement shall be limited by current and developing Applicable Law with regard to Organic Waste
handling and related doctrines. In the event that future interpretations of current law, enactment or
developing legal trends limit the ability of the City to lawfully provide for the scope of services as
specifically set forth herein, Contractor agrees that the scope of the Agreement will be limited to
those services and materials which are lawfully provided for under this Agreement. The City shall not
be responsible for any lost profits and/or damages claimed by the Contractor as a result of changes in
law.
4.3 Administration of Agreement
The City Manager shall administer this Agreement and the City's Utilities Director shall
supervise Contractor's compliance with the Agreement terms and conditions.
4.4 Use of City Streets
This Agreement shall give Contractor the right and privilege to operate Organic Materials Collection
vehicles and equipment on such streets, public ways, rights-of-way, or easements of the City as
reasonably appropriate for Contractor to provide the services herein.
4.5 Annexation
Contractor shall automatically extend all services herein described to any area annexed to the City,
Deleted: be exclusive
Deleted: Food and Green Waste
Deleted: law
Deleted: processing of Food and Green Waste
Deleted: ¶
Deleted: Food and Green Waste
Deleted: Food and Green Waste
Deleted: transported
Deleted: person
Deleted: Green Waste
Deleted: A.
Deleted: transported
Deleted: owner
Deleted: occupant
Deleted: his/her
Deleted: facility
Deleted: 8
Deleted: B.
Deleted: C.
Deleted: Green Waste
Deleted: This
Deleted: transport
Deleted: process Food and Green Waste
Deleted: state
Deleted: federal
Deleted: term
Deleted: state and federal laws
Deleted: Food and Green
Deleted: arc
Deleted: Food and Green Waste
Page 707 of 984
Organic Materials Services Agreement
16
Deleted: Food and Green Waste
except that the City may permit a firm franchised by the County of San Luis Obispo before the
annexation to continue service the area for a period not less than five (5) years.
4.6 City Right to Request Changes
4.6.1 General
City may request Contractor to perform additional services (including new Diversion programs,
billing services, etc.) or modify the manner in which it performs existing services. Pilot programs and
innovative services which may entail new Collection methods, different kinds of services and/or new
requirements for Waste Generators are included among the kinds of changes which City may request.
Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide
additional or expanded Diversion services pursuant to the terms of Section 4.6.2. Contractor shall be
entitled to an adjustment in its compensation in accordance with Section 8.5 (Extraordinary
Adjustments), for providing such additional or modified services.
4.6.2 New Diversion Programs
Contractor shall present, within thirty (30) days of a request to do so by City, a proposal to provide
additional or expanded Diversion services. The proposal shall contain a complete description of the
following:
• Collection methodology to be employed (equipment, workforce, etc.)
• Equipment to be utilized (vehicle number, types, capacity, age, etc.).
• Labor requirements (number of employees by classification).
• Type of Containers to be utilized.
• Provision for program publicity/education/marketing.
• A projection of the financial results of the program's operations for the remaining Term of the
Agreement in a balance sheet and operating statement format including documentation of the
key assumptions underlying the projections and the support for those assumptions.
• Processing Facility to be utilized.
4.6.3 City's Right to Acquire Services
Contractor acknowledges and agrees that City may permit other Persons besides Contractor to
provide additional Organic Materials services not otherwise contemplated under Section 4.6 (City's
Right to Request Changes). If pursuant to Section 4.6.2 (New Diversion Programs), Contractor and
City cannot agree on terms and conditions of such services in ninety (90) days from the date when
City first requests a proposal from Contractor to perform such services, Contractor acknowledges and
agrees that City may permit Persons other than Contractor to provide such services.
4.6.4 Implementing New Services
If l) Contractor is capable of performing or developing the ability to perform a requested service or
modifying an existing service; 2) City has agreed to have Contractor provide such additional service
in accordance with Contractor's proposal; and 3) an adjustment in Contractor’s compensation has
been requested but has not been agreed upon or implemented within ninety (90) days, City may
permit a third party to perform the request or modified existing service, and Contractor shall not be
obligated, to perform such additional or modified service pursuant to the terms of Section 4.6.3.
4.7 Ownership of Organic Materials
Once Organic Materials are placed in Containers and properly presented for Collection, ownership
and the right to possession shall transfer directly from the Generator to Contractor by operation of this
Agreement. Contractor is hereby granted the right to retain, Recycle, Process, reuse, Compost and
otherwise use such Organic Materials or any part thereof, in any lawful fashion or for any lawful
Deleted: diversion
Deleted: diversion
Deleted: compensation in
Deleted: diversion
Deleted: lo
Deleted: manpower
Deleted: Materials processing facility
Deleted: Food and/ or Green Waste
Deleted: Food and Green Waste
Deleted: Food and Green Waste is
Deleted: recycle, process
Deleted: compost
Deleted: Food and Green Waste
Page 708 of 984
Organic Materials Services Agreement
17
Deleted: Food and Green Waste
purpose consistent with the hierarchy and goals of AB 939 and AB 1826, and constitutes a reduction
in landfill Disposal in accordance with SB 1383. Subject to the provisions of this Agreement,
Contractor shall have the right to retain any benefit resulting from its right to retain, Recycle, Process,
Compost or reuse the Organic Materials which it Collects. Organic Materials or any part thereof,
which are delivered to a Facility shall become the property of the Owner or operator of the
Facility(ies) once deposited there by Contractor.
Deleted: AD 1826.
Deleted: recycle, process, compost
Deleted: Food and Green Waste
Deleted: Food and Green Waste
Deleted: (Facility, transformation Facility, transfer
station, or Material Recovery Facility) shall become the
Deleted: owner
Page 709 of 984
18
Deleted: <object>
ARTICLE 5.
DIRECT SERVICES
5.1 General
The work to be done by Contractor pursuant to this Agreement shall include the furnishing of all
labor, supervision, equipment, materials, supplies, and all other items necessary to perform the
services required to collect Organic Materials. The enumeration of, and specification of requirements
for, particular items of labor or equipment shall not relieve Contractor of the duty to furnish all others,
as may be required, whether enumerated or not.
The work to be done by Contractor pursuant to this Agreement shall be accomplished in a thorough
and professional manner so that the customers within the City are provided reliable, courteous and
high-quality Organic Materials Collection service at all times. The enumeration of, and specification
of requirements for, particular aspects of service quality shall not relieve Contractor of the duty of
accomplishing all other aspects in the manner provided in this Section, whether such aspects are
enumerated elsewhere in the Agreement or not.
5.2 Organic Materials Collection Services
A. Three-Container Collection System. Contractor shall provide Organic Materials
Collection service, as part of the City’s three-Container Collection program for the
separate Collection of Source Separated Recyclable Materials, Source Separated Organic
Materials, and Solid Waste, in accordance with the applicable Franchise Agreement(s)
between the Contractor and City for each Discarded Material type. Contractor shall
ensure that the Organic Materials services provided under this Agreement are at all times
performed in accordance with Applicable Law, including SB 1383, and operationally
align with the Collection of Solid Waste and Recyclable Materials in order to operate a
successful three-Container Collection system.
Single-Family Customers with a disability shall have the option of placing their
Containers near their dwelling, visible from the curb, and the Franchisee will Collect
their Containers at this location and return Container to same location. Franchisee will
notify residents annually, beginning within thirty (30) days of execution of this
Agreement, of this Collection option. To be eligible for this Collection option, residents
must present proof of their disability to the Franchisee.
B. Collection Service. Contractor shall provide Organic Materials Containers and
Collection service to all Single-Family, Multi-Family, and Commercial Generators in
accordance with Article 5 of this Agreement. Contractor’s Organic Materials Collection
program shall allow Generators to intentionally commingle Food Waste and Green Waste
in the Organic Materials Containers. Contractor shall Collect and remove all Organic
Materials placed in Containers at the Designated Collection Locations for Commercial,
Single-Family, and Multi-Family Customers, and Transport the Organic Materials to (i)
the Approved Organic Materials Processing Facility for Processing in accordance with
this Agreement. Prohibited Container Contaminants shall not be Collected in Organic
Materials Containers. The Containers shall comply with the requirements of Section
5.7.3.
C. Schedule. Contractor shall provide Organic Materials Collection for all Customers not
less than once each week on the same day of the week as Solid Waste Collection service.
Contractor will notify Customers of Holiday Collection schedules. Should the Collection day change,
Deleted: Food and Green Waste
Deleted: Food and Green Waste
Deleted: <#>Food and Green Waste Services¶
<#>Contractor shall Collect and remove all Food and
Green Waste placed in¶
<#>Containers at the designated Collection locations
for Commercial, Single Family Dwelling Units and
Multifamily Dwelling Units.¶
<#>¶
Food and Green Waste Collection shall be a
minimum of Organic Materials Collection
Deleted: A.
Deleted:
Deleted: B.
Deleted: C.
Deleted: customers
Deleted: holiday
Deleted: collection
Page 710 of 984
19
Deleted: <object>
Contractor shall re-route Collections within sixty (60) days of the notification by the change in Solid
Waste Collection days to provide same day service.
5.3 Materials To Be Collected
Organic Materials to be accepted for Collection include: Food Waste, Food Scraps; Food-Soiled Paper; and Green
Waste . The Parties agree that accepted types of Organic Materials may be added to or removed from this list
from time to time at the sole discretion of the City. Contractor shall not add or remove materials to or from this
list without written approval from the City or signed amendment to the Agreement, and such approval shall not be
unreasonably withheld.
Carpets, non-Compostable paper, textiles, and Prohibited Container Contaminants shall not be Collected in the
Organic Materials Containers. The Containers shall comply with the requirements of Section 5.7.3.
Materials prohibited for Collection in the Organic Materials Containers include: Source Separated Recyclable
Materials, Solid Waste, Excluded Waste, and other Prohibited Container Contaminants.
5.4 Refusal to Provide Collection Services
5.4.1 Customer Notices.
A. General. In the event Contractor does not Collect any item or Container of Discarded
Materials due to a Customer’s non- compliance with rules and regulations for proper set-out
or the presence of Prohibited Container Contaminants, Contractor shall attach a Customer
Notice, subject to City’s approval, securely to the item or Container specifying the reasons
for courtesy Collection or non-Collection. The Customer Notice shall contain Contractor’s
name, telephone number, and information described below.
The Customer Notice shall, at a minimum:
• Inform the Customer of the reason for the courtesy Collection or non-Collection; and
• Include the date and time the issue was observed.
• In addition, upon the identification of Prohibited Container Contaminants in a
Customer’s Container, the Contractor shall provide the Customer with the following
information in the Customer Notice, or through another form of communication such
as mail, e-mail, text message, or over the phone: Information on the Customer’s
requirement to properly separate materials into the appropriate Containers, and the
accepted and prohibited materials for Collection in each Container;
• Inform the Customer of the courtesy collection or non-collection of the contaminated
materials on this occasion with information that the Contractor may assess
contamination Processing fees and/or may not Collect the Container in the future;
and,
• Be supported by photographic evidence of the violation(s).
B. Upon identification of Prohibited Container Contaminants. Contractor shall Collect the
contaminated Organic Materials Containers and either Transport the material to the
appropriate Approved Facility for Processing; or, Contractor may Collect the contaminated
materials with the Solid Waste and Transport the contaminated materials to the Approved
Disposal Facility. A courtesy Collection of contaminated Recyclable Materials or Organic
Materials where the materials are sent to the Approved Disposal Facility may be made with a
Solid Waste Collection vehicle, provided that the contaminants may safely and lawfully be
Collected as Solid Waste.
C. Communications with Customer. Whenever a Container at the Premises of a Customer is
not Collected, Contractor shall contact the Customer on the scheduled Collection day by
telephone, email, text message, or other verbal or electronic message to explain why the
Container was not Collected. Whenever a Container is not Collected because of Prohibited
Container Contaminants, a Customer service representative shall contact the Customer to
Deleted: collection
Deleted: 5.3
Deleted: Green waste material to be collected include tree
trimmings, grass cuttings, dead plants, leaves, branches and
dead trees (not more than six (6) inches in diameter) and
similar materials generated at the Premises.¶
¶
Food Waste materials to be collected include waste material
of plant or animal origin that results from the preparation or
processing of food for animal or human consumption and
that is separated from the municipal solid waste stream. Food
waste includes, but is not limited to, food waste from food
facilities such as restaurants, food processing establishments,
grocery stores, institutional cafeterias (such as schools and
hospitals), and residential food scrap collection.¶
¶
¶
Refusal to Provide Collection Services¶
Deleted: may refuse
Deleted: Food
Deleted: Collect Green Waste and
Deleted: obligated to continue to provide Green Waste
Deleted: (s) to any participant
Deleted: Food and Green
Deleted: program
Deleted: monthly to City any warning notices issued.¶
¶
Deleted: 5.4
Deleted: A.
Deleted: Include
Deleted: B.
Deleted:
Deleted: C.
Page 711 of 984
20
Deleted: <object>
discuss, and encourage the Customer to adopt proper Discarded Materials preparation and
separation procedures.
D. Contractor Return for Collection. Upon request from Customer, Contractor shall Collect
Containers that received Customer Notices specifying non-Collection within one (1) Working
Day of Customer’s request. Contractor shall bill Customer for the extra Collection service
event (“extra pick-up”) at the applicable City-approved Rates only if Contractor notifies
Customer of the premium Rate for this service at the time the request is made by Customer.
E. Assessment of Contamination Processing Fees. If the Contractor observes twenty percent
(20%) or more Prohibited Container Contaminants and has issued a Customer Notice
specifying a courtesy Collection, the Contractor may impose a contamination rate approved
by the City for that Customer’s Service Level, if and only if Contractor has informed the
Customer of the potential for a Processing fee pursuant to this Section. The intent of
contamination fees is to provide a behavioral tool to educate and prevent Customers from
placing Source Separated Discarded Material into the improper designated Container(s). To
ensure that assessment of fees are to be used for the intended purposes and not as a form of
revenue generation, after the first issuance of a Customer Notice for the observance of
Prohibited Container Contaminants in one (1) calendar year, Contractor may issue a fee of ten
(10) dollars. After the second observance of Prohibited Container Contaminants in the same
calendar year, Contractor may issue a fee of twenty (20) dollars. After the third observance of
Prohibited Container Contaminants in the same calendar year, Contractor may issue a fee of
thirty (30) dollars. In the fourth and any subsequent observances of Prohibited Container
Contaminants in the same calendar year, Contractor may increase the contamination
Processing fee by ten (10) dollar increments and may Collect the contaminated materials with
the Solid Waste and Transport the contaminated materials to the Approved Disposal Facility,
provided that the contaminants may safely and lawfully be Collected as Solid Waste.
F. Suspension of Contamination Processing Fee Program. Contractor agrees that
contamination fees shall not exceed one percent (1%) of Contractor’s Gross Receipts in any
calendar quarter. In the event that contamination fees exceed one percent (1%) of
Contractor’s Gross Receipts in any calendar quarter, the assessment of contamination fees
shall be suspended immediately and indefinitely pending a program assessment by the City
and Contractor. Upon program suspension or at the request of the City at any time during the
Term of the Agreement, City and Contractor shall meet and confer regarding the application
and effectiveness of contamination fees in accomplishing the behavior change. If the program
is suspended due to excessive revenue generation, the City may require Contractor to either:
i) modify the program parameters; ii) modify the amount of the contamination fee; or, iii)
return to the City any funds generated by the contamination fee which exceed one percent
(1%) of Contractor’s Gross Receipts for a given period of time.
G. City Actions upon Identification of Prohibited Container Contaminants. The City or its
designee shall perform SB 1383 activities required for the identification of Prohibited
Container Contaminants which includes but is not limited to, record keeping, provision of
educational notices and reporting.
5.5 Additional Green Waste Collection Programs
A. Christmas Tree Program. Contractor shall operate an annual Christmas Tree Collection
and Diversion program. Theprogram shall include curbside and drop-off Collection of
Christmas Trees targeting all Single-Family and Multi-Family Dwelling Units and shall
Divert these Christmas Trees from landfill Disposal and Process the materials as Organic
Deleted: D.
Deleted: E.
Deleted: F.
Deleted: G.
Deleted: 5.5
Deleted: A.
Deleted: Collection
Deleted: ¶
Deleted: diversion
Deleted: ¶
Deleted:
Deleted:
Deleted: family
Deleted: divert
Deleted: disposal
Page 712 of 984
21
Deleted: <object>
Waste in accordance with this Agreement.
B. On-Call/Bulky Green Waste Pick-Up. Contractor shall Collect Green Waste separately
from other acceptable materials set out for the Bulky Item Collection Program or any other
Green Waste Collection events or service and Transport the Material to the Approved
Organic Materials Processing Facility.
5.6 End Uses for Organic Materials
General. Contractor shall develop and implement plans and programs to Divert from Disposal the
Organic Waste Collected through Curbside Collection of Organic Materials and the additional Organic
Materials Collection programs specified in Section 5.5. Contractor must provide end uses for Organic
Materials that maximize Diversion credits for the City according to regulations established by
CalRecycle, and that constitute a reduction in landfill Disposal in accordance with SB 1383.
Power. To the extent that electricity produced from the Organic Materials Processing Facility qualifies
for City's procurement credit under SB 1383, City shall be allocated its proportional share of such
qualified electricity usage based on the inbound Tonnage delivered by City divided by the total
inbound tonnage of the facility for that same time period.
5.7 Operations
5.7.1 Schedule
To preserve peace and quiet, no Organic Materials shall be Collected from or within two- hundred
(200) feet of Residential Premises between 6:30 P.M. and 6:30 A.M. on any day and such Organic
Materials shall be Collected, Monday through Friday on the same day as Solid Waste Collection.
When the regularly scheduled Collection day falls on a Holiday, Collection shall take place on the
following regularly scheduled Collection day. In the event the Contractor misses the Collection of set
out Organic Materials, the Contractor shall collect the missed pickups with one (1) Business Day of
notification.
5.7.2 Vehicles
A. General. Contractor shall provide a fleet of Collection vehicles sufficient in number and
capacity to perform the work required by this Agreement and in strict accordance with its
terms. Contractor shall have available on Collection days sufficient back-up vehicles in order
to respond to complaints and emergencies. The fleet shall be maintained according to the
requirements of Municipal Code 8.04.030.
B. Specifications. All vehicles used by Contractor in providing Organic Materials Collection
services under this Agreement shall comply with all Federal, State, and local requirements for
such vehicles as they now exist or may be amended in the future, and be registered with the
California Department of Motor Vehicles. All such vehicles shall have water-tight bodies
designed to prevent leakage, spillage or overflow. All such vehicles shall comply with U.S.
Environmental Protection Agency noise emission regulations and other applicable noise
control regulations.
C. Condition Contractor shall maintain all of its properties, facilities, and equipment used in
providing service under this Agreement in a safe, neat, clean and operable condition at all
times.
Contractor shall inspect each vehicle daily to ensure that all equipment is operating properly.
Vehicles which are not operating properly and represent a safety hazard shall be taken out of
service until they are repaired and do operate properly and safely. Contractor shall perform all
scheduled maintenance functions in accordance with the manufacturer's specifications and
schedule. Contractor shall keep accurate records of all vehicle maintenance, recorded
according to date and mileage and shall make such records available to City upon request.
Deleted: ¶
Deleted: B.
Deleted: 5.6
Deleted: Food and Green Waste
Deleted: divert
Deleted: disposal materials¶
collected
Deleted: curbside
Deleted: Food, Green Waste
Deleted: Christmas Tree
Deleted: Food and Green Waste
Deleted: maximizes diversion
Deleted: the
Deleted: ¶
Deleted: 5.7
Deleted:
Deleted: ,
Deleted: Food or Green Waste
Deleted: residential
Deleted: Green Waste
Deleted: collection
Deleted: holiday
Deleted: collection
Deleted: collection
Deleted: Food or Green Waste
Deleted: business day
Deleted: 5.7.2
Deleted: ¶
Deleted: Food and Green Waste
Deleted: federal, state
Page 713 of 984
22
Deleted: <object>
Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for
which repairs are needed because of accident, breakdown or any other cause so as to maintain
all equipment in a safe and operable condition. Contractor shall maintain accurate records of
repair, which shall include the date/mileage, nature of repair and the signature of a
maintenance supervisor that the repair has been properly performed.
Contractor shall arrange all vehicles and other equipment in safe and secure location(s) in
accordance with all applicable zoning regulations.
D. Vehicle Identification. Each truck shall display in a prominent place a sign as required in
Municipal Code section 8.04.090.
E. Operation. Vehicles shall be operated in compliance with the California Vehicle Code, and
all applicable safety and local ordinances. Contractor shall not load vehicles in excess of the
manufacturer's recommendations or limitations imposed by state or local weight restrictions
on vehicles.
F. Renewable Natural Gas (RNG) Vehicles. Under this Agreement, the Contractor shall make
a best effort for all Collection vehicles to be powered by SB 1383 RNG generated by a local
facility or powered by SB 1383 RNG that is purchased through a wheeling agreement with a
party(ies), provided that the wheeling agreement is for purchase of gas derived from Organic
Waste that has been Diverted from a Landfill and Processed at an in-vessel digestion Facility
that is permitted or otherwise authorized by Title 14 of CCR to recover Organic Waste and
meets the requirements of 14 CCR Section 18993.1(h). Upon City’s request, Contractor shall
obtain and provide the City with a written certification by an authorized representative of the
publicly owned treatment works or the wheeling agreement contractor certifying that the in-
vessel digestion Facility produces the SB 1383 RNG consistent with the requirements of 14
CCR Section 18993.1(h). Contractor shall maintain records of the amount of SB 1383 RNG
purchased and shall report this information in accordance with Exhibit A. Contractor shall
agree to the City the right to report this SB 1383 RNG usage toward the City’s fulfilment of
its annual recovered Organic Waste product procurement target in accordance with 14 CCR
Section 18993.1.
5.7.3 Organic Materials Containers
A. General.
1. Contractor shall supply all Customers with Organic Materials Containers for
Collection of Organic Materials, in accordance with this Section. Contractor shall use
the Contractor-provided Collection Containers that are currently located at
Customers’ Premises, if applicable. If Customer is currently utilizing Collection
Containers that were not provided by the Contractor, Contractor shall provide
Containers from current inventory.
2. Contractor shall provide Customers (including Single-Family, Multi-Family,
Commercial, and City facility Customers) with new Collection Containers as
requested by the Customer to meet its desired Service Level within five (5) Working
Days of Contractor’s first receipt of the Customer request.
3. On and after the Effective Date, any new Containers provided by the Contractor shall
comply with the Container standards set forth in this Section. All Containers shall
display the Contractor’s name, logo, telephone number, website, capacity (yards or
gallons), and some identifying inventory or serial number.
4. If an existing Container breaks or is otherwise rendered non-functional on or after the
Deleted: Food and Green Waste Containers¶
Page 714 of 984
23
Deleted: <object>
Effective Date, the Contractor shall replace the non-functional Container with a
Container that complies with the requirements of this Section. Notwithstanding this
Section, the Contractor is not required to replace functional Containers, including
Containers purchased prior to January 1, 2022, that do not comply with the color
requirements of this Section prior to the end of the useful life of those Containers, or
prior to January 1, 2036, whichever comes first.
B. Container Types and Sizes
1. Single-Family Containers. Contractor shall supply each Single Family Dwelling Unit
with an Organic Materials Container consistent in size with the City-approved Organic
Materials Collection program.
2. Multi-Family Containers. Contractor shall supply each Multi-Family Customer with
Organic Materials Container(s) to adequately service the needs of the Multi-Family
Premises.
3. Commercial Containers. Contractor shall supply each Commercial Customer with
Organic Materials Container(s) to adequately service the needs of the Premises.
Notwithstanding this Section, Contractor shall not be required to provide Organic
Materials Container(s) to a Commercial Customer that is exempted from Organic
Materials services by the City or has demonstrated to the City that it is Diverting
Organic Materials through subscription with another City-approved contractor, or
other City -approved method, for the duration of the approved exemption.
4. Kitchen Pails. In addition, Contractor will supply each Single Family and Multi-
Family customer a kitchen pail to Collect Organic Materials inside a Dwelling Unit
prior to placement in Multi-Family and Single-Family Customers’ Organic Materials
Container, as approved by the City. Contractor will be responsible for distribution of
kitchen pails to Single-Family and Multi-Family Customers upon request, from
Contractor’s office beginning the Effective Date. City may restock Contractor
inventories at local offices for distribution to new residents or residents who need a
replacement.
C. Container Labels.
Containers shall be identified for Organic Materials only and shall be clearly labeled in accordance
with this Section.
1. Labels on Existing Containers or Lids. Contractor shall ensure a label on the body or
lid of each Container has been provided to a Customer that includes language or
graphic images, or both, that indicate the primary materials accepted and the primary
materials prohibited in that Container. Labels shall clearly indicate items that are
Prohibited Container Contaminants for each Container.
2. Imprinted or In-Mold Labels for New Containers or New Lids. On or before the
Effective Date, Contractor shall imprint new Container bodies or lids with text or
graphic images that indicate the primary materials accepted and the primary materials
prohibited in that Container. Labels shall clearly indicate items that are Prohibited
Container Contaminants for each Container. Prior to ordering any Containers or lids
with in-mold labels, Contractor shall submit a sample of its proposed label, proposed
location(s) for placement of labels on each type of Container, and its labeling plan to
the City for approval.
D. Container Colors. Organic Materials Cart lids shall be green. Organic Materials Bin,
Compactor, and franchise Roll-Off lids or bodies shall be green. No later than December 31,
2035, Contractor shall provide all Customers with Collection Containers that comply with the
Container color requirements specified in this Section or as otherwise specified in 14 CCR
Deleted: color
Deleted: a waste wheeler
Deleted: consistent
Deleted:
Deleted: Food and Green Waste
Deleted: container to collect Food Waste
Deleted: dwelling as approved by the City.
Contractor shall supply each multi-family complex
and commercial customer with the appropriate type
of container to adequately service the needs.
Containers Dwelling Unit prior to placement in
Deleted: Food and/or Green Waste only. Contractor
agrees to provide additional appropriate Containers, as
required.Organic Materi
Deleted: ¶
Page 715 of 984
24
Deleted: <object>
Section 18982; 14 CCR, Division 7, Chapter 12, Article 3; or other Applicable Law.
E. Additional Containers. City and Contractor acknowledge that from time to time, a customer
may damage or destroy a Container. City and Contractor also acknowledge that from time to
time Containers may be stolen from the curb or damaged due to normal use. When notified of
such occurrence, Contractor shall replace the Container, at no charge to the City or Customer,
pursuant to the guidelines established by the Contractor and approved by the City. Each
Customer shall be responsible for excess damage to any such Containers not caused by
Contractor.
F. Upon expiration or early termination of Agreement, City may purchase all Containers put into
service at Customer Premises during the Term of the Agreement and shall become property of
the City at no cost to the City if such Containers are fully depreciated. All Containers and
Compactors purchased and put into service at Customer Premises during the Term of the
Agreement that have not been fully depreciated shall be available to the City, at the City’s
option, at a cost reflecting the net book value.
5.7.4 Litter Abatement
Contractor shall use due care to prevent Organic Materials from being spilled or scattered during the
Collection or Transportation process. If any Organic Materials are spilled during Collection,
Contractor shall promptly clean up all spilled materials. Each Collection vehicle shall carry a broom
and shovel at all times for this purpose.
5.7.5 Personnel
A. General. Contractor shall furnish qualified drivers, mechanical, supervisory, clerical, and
other personnel as may be necessary to provide services required by this Agreement in a safe
and efficient manner.
B. Identification. Contractor shall ensure that while on duty each Collection worker wears a
clean uniform which displays the Contractor's company name and the worker's name or
identification number.
C. Fees & Gratuities. Company 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 any services performed under this Agreement
except as provided in Article 8 of this Agreement.
D. Training. All drivers shall be trained and qualified in the operation of vehicles they operate
and must possess a valid license, of the appropriate class, issued by the California Department
of Motor Vehicles.
Contractor shall provide adequate operations, health and safety training, and Hazardous Waste
identification and handling training for all of its employees who use or operate equipment or
who are otherwise directly involved in Collection or other related operations.
E. Customer Courtesy. Contractor shall train its employees in customer courtesy, shall prohibit
the use of loud or profane language, and shall instruct Collection crews to perform the work
quietly. Contractor shall use its best efforts to ensure that all employees present a neat
appearance and conduct themselves in a courteous manner. If any employee is found to be
discourteous or not to be performing services in the manner required by this Agreement,
Contractor shall take all necessary corrective measures. If City has notified Contractor of a
complaint related to a discourteous or improper behavior, Contractor will reassign the
employee to duties not entailing contact with the public while Contractor is pursuing its
Deleted: customer
Deleted: ¶
Deleted:
Deleted: Food or Green Waste
Deleted: transportation
Deleted: Food or Green Waste is
Deleted: collection
Deleted: ¶
Deleted: ¶
Page 716 of 984
25
Deleted: <object>
investigation and corrective action process.
5.8 Organic Materials Processing
5.8.1 Receipt of Organic Materials
Contractor shall Transport all Organic Materials Collected to the Approved Organic Materials
Processing Facility. Contractor’s Approved Organic Materials Processing Facility shall be a Facility
that Processes Single-Family, Multi-Family, and Commercial Source Separated Organic Materials to
recover Organic Waste.
5.8.2 Status of Approved Organic Materials Processing Facility
The Approved Organic Materials Processing Facilities used by Contractor must be designed and
constructed in accordance with all Applicable Laws (e.g., CEQA, California Code of Regulations,
etc.). The Facility must have all permits from Federal, State, regional, County and City agencies
necessary for it to operate as a Food and/ or Green Waste Facility and must be in full regulatory
compliance with all such permits. Contractor shall, directly or through similar obligations in its
subcontract(s) with facility operators, keep active all existing permits and approvals necessary for use
of the Approved Organic Materials Processing Facilities in full regulatory compliance. Upon request,
Contractor shall provide copies of Facility permits and/or notices of violations (obtained from its
Processing Facility Subcontractor, if necessary) to the City Manager.
The Approved Organic Materials Processing Facilities must be authorized to accept, under its existing
permit, and have sufficient uncommitted capacity to accept, all Organic Materials delivered to it by,
or on behalf of, the City for the Term of this Agreement. Contractor shall immediately notify City of
any notice of breach or default received from Approved Organic Materials Processing Facilities.
5.8.3 Alternative Processing Facility
If Contractor becomes unable to deliver the City's Organic Materials to an Approved Organic
Materials Processing Facility due to causes within its control or which could have been avoided by
the exercise of due care, the Contractor shall arrange for it to be accepted at another Processing
Facility, provided that the Contractor provides written notice to the City, in which case Contractor
shall pay for any increased Transportation costs, any differences in the fees charged at such
alternative Processing Facility and the fees then in effect under this Agreement. If Contractor's
inability to deliver the City's Organic Materials to the Approved Organic Materials Processing
Facility is not due to causes within its control or which could have been avoided by the exercise of
due care, then Contractor shall propose alternative Processing Facilities including all related costs and
City shall select the alternative to be used. In the event of an emergency or sudden unforeseen closure
of the Approved Organic Materials Processing Facility, Contract shall, within forty-eight (48) hours
of the emergency or sudden and unforeseen closure, provide a written description of the reasons the
use of the Approved Facility is not feasible, and the period of time Contractor proposes to use the
alternative Processing Facility. Such a change in Processing Facility shall be temporarily permitted
until such time as the City is able to consider and respond to the use of the proposed alternative
Processing Facility. If the use of the proposed Alternative Processing Facility is anticipated to or
actually does exceed thirty (30) days in a consecutive twelve (12) month period, the use of such
Processing Facility shall be subject to approval by the City. The City may in its sole discretion,
approve, conditionally approve, temporarily approve, or disapprove of the use of the proposed
Alternative Processing Facility. If the City disapproves the use of the proposed alternative Processing
Facility, the Parties shall meet and confer to determine an acceptable Processing Facility .
5.8.4 Disposition of Unauthorized Waste
Contractor shall ensure that procedures to identify and reject materials delivered to the Approved
Deleted: <#>Implementation Plan¶
The parties recognize that substantial planning will be
required in order to assure an orderly¶
initiation of Food and Green Waste Collection services
on January 1, 2016. To that end, the¶
City will require Contractor to submit by November I,
2015 a detailed implementation plan addressing,
among other things, the steps Contractor will take and
the schedule on which it will take them, to prepare for
such an orderly initiation of service. The
implementation plan shall cover Contractor's schedule
for acquiring necessary equipment, personnel, storage
and maintenance facilities, administrative offices,
customer relations materials (including Collection
schedules, route maps, billing forms, complaint forms,
service request forms, etc.). Contractor agrees to ...
Deleted: Food and Green Waste
Deleted: 5.8
Deleted:
Deleted: Food and Green Waste
Deleted: Commencing January 1, 2016, the Contractor ...
Deleted:
Deleted: Food and Green Waste
Deleted: Any Facility
Deleted: contractor
Deleted: applicable state and local laws
Deleted: federal, state
Deleted: county
Deleted: city
Deleted: The selected Food and Green Waste Facility
Deleted: Food and/ or Green Waste
Deleted: term
Deleted: Food and Green Waste Facility
Deleted:
Deleted: Food and Green Waste
Deleted: the Food and Green Waste
Deleted: Food and Green Waste
Deleted: transportation
Deleted: Food and Green Waste
Deleted: Food and Green
Deleted: Waste to the Food and Green Waste
Deleted: Food and Green Waste Facilities including all ...
Deleted:
Deleted: Food and Green Waste
Page 717 of 984
26
Deleted: <object>
Organic Materials Processing Facility which are Excluded Waste, Hazardous Waste, or which
otherwise may not be legally accepted at the Approved Organic Materials Processing Facility under
their permits, are in place. Contractor may, in the course of implementing such procedures, refuse to
accept Organic Materials deposited from a Generator if they constitute Hazardous Waste, or
otherwise may not be legally accepted at the Approved Organic Material Processing Facility, and
Contractor shall be solely responsible of the materials which are accepted. If Contractor discovers
Hazardous Waste, or other material which may not be legally accepted, among materials which it has
accepted, it shall Dispose of such waste at its own expense. Contractor may pursue all legal rights and
remedies it may have against the Generator(s) of such Solid Waste if the Generator(s) can be
identified.
5.8.5 Subcontracting
Contractor shall not engage any Subcontractors for Collection, Transportation, or Processing of
Organic Materials without the prior written consent of City. Contractor must obtain written
agreements with Processing Subcontractors to guarantee capacity to Process Discarded Materials. If
the Contractor plans to engage other affiliated or Related Party Entities in the provision of services,
Contractor shall provide City with thirty (30) days written notification of its plans and provide an
explanation of any potential impacts related to the scope, quality, timeliness, or cost of providing
services under this Agreement. All insurance documents must be reviewed and approved by the City
Manager prior to City acceptance. Contractor shall require that all Subcontractors file insurance
certificates with the City, name City as an additional insured, and comply with all material terms of
this Agreement.
5.9 Disposal
Contractor shall ensure that the Residue from the Organic Materials Collected in the City and
delivered to the Approved Organic Materials Processing Facility by the Contractor are Disposed of at
the Approved Disposal Facility.
5.10 Generator Waivers
A. General. The City or its designee may grant waivers described in this Section to Commercial or
Multi-Family Generators that impact the scope of Contractor’s provision of service for those
Customers; provided, the Generator shall continue to subscribe with Contractor for franchised
Collection services to the extent such services are not waived by the City. Waivers issued shall be
subject to compliance with SB 1383 requirements, pursuant to 14 CCR Section 18984.11, or other
requirements specified by the City.
B. Generator Waivers.
a. De Minimis Waivers. The City or its designee may waive a Multi-Family’s, Commercial
Business’, or its Property Owner’s obligation to comply with some or all of the Source
Separated Organic Materials requirements set forth in this Agreement, SB 1383 Regulations, and
the City’s Municipal Code, all as may be amended from time to time, if the Multi-Family,
Commercial Business, or its Property Owner provides documentation, or the City has evidence
demonstrating one of the following de minimis conditions:
i. The Multi-Family’s or Commercial Business’ total Solid Waste Collection service is two
(2) cubic yards or more per week, and Organic Materials subject to Collection comprises
less than twenty (20) gallons per week, per applicable Container, of the Multi-Family’s or
Commercial Business’ total waste; or,
ii. The Multi-Family’s or Commercial Business’ total Solid Waste Collection service is less
Deleted: Food and Green Waste
Deleted: Food and Green Waste
Deleted: the City
Deleted: Food and Green Waste
Deleted: dispose
Deleted: Waste
Deleted: ,
Deleted: Waste
Deleted:
Deleted:
Deleted: residual Solid Waste
Deleted: City's Food and Green Waste
Deleted: Food and Green Waste
Deleted: arc disposed
Deleted: a permitted disposal site in full regulatory
Deleted: 5.10
Page 718 of 984
27
Deleted: <object>
than two (2) cubic yards per week, and Organic Materials subject to Collection comprises
less than ten (10) gallons per week, per applicable Container, of the Multi-Family’s or
Commercial Business’ total waste.
b. Space Constraint. The City or its designee may waive a Multi-Family’s, Commercial
Business’, or its Property Owner’s obligation to comply with some or all of the Source
Separated Organic Materials Collection service requirements set forth in this Agreement, SB
1383 Regulations, and the City’s Municipal Code, in the event that the Generator qualifies for a
space constraint waiver under the City’s Municipal Code.
C. Waiver Requests. Generators may submit requests for de minimis waivers and physical space
waivers to the City. If a Generator submits a request for a waiver to the Contractor, the Contractor
shall refer the Generator to the City or its designee. Upon request of the City, the Contractor shall
support the City in the waiver review process by providing requested Customer information. If the
City or its designee grants a waiver to a Generator, the City shall notify the Contractor and Contractor
shall update the Customer’s information and Service Level in accordance with Exhibit A.
Page 719 of 984
28
Deleted: <object>
ARTICE 6.
OTHER SERVICES
6.1 Billing
The City Council shall establish an integrated rate for the Organics Materials, Recycling and Solid
Waste services. Contractor shall bill and collect for its services at no more nor less than these rates.
Contractor's billing plan, including billing frequency, and format shall be subject to approval by City,
and City shall have the right to revise the billing format to itemize certain charges.
The City may also direct Contractor to insert mailers relating to contractor provided services with the
billings and shall be responsible for all labor costs with respect to the mailing inserts. The mailers
must fit in standard envelopes and not increase the required postage. The City will provide not less
than thirty (30) days notice to Contractor prior to the mailing date of any proposed mailers to permit
Contractor to make appropriate arrangements for inclusion of City materials.
Contractor shall maintain copies of said billings and receipts, each in chronological order, for a period
of three (3) years after the date of service for inspection by the City. Contractor may, at its option,
maintain those records in computer form, on microfiche, or in any other manner, provided that the
records cannot be altered, and can be preserved and retrieved for inspection and verification in a
timely manner.
The owner of occupied Premises shall be responsible and liable for paying the Food and Green Waste
fees for that property.
6.2 Collection of Bills from Delinquent Customers
Once each year, prior to a date established by the City, Contractor may take actions pursuant to
Chapter 8.04 of the Municipal Code to collect delinquent accounts.
6.3 Periodic Performance or Billing Audit
The City shall have the right to periodically, not less than annually, request a performance audit
or billing audit be completed by the Contractor, the City or an independent third party. The City shall
be entitled to select the type of consultant that it deems qualified to conduct said audits. The cost of
such audits will be an allowable cost under the rate setting methodology.
6.4 Customer Service
6.4.1 Office
Office hours shall be, at a minimum, from 8:00 A.M. to 5:00 P.M., Monday through Friday, exclusive
of holidays. A responsible and qualified representative of Contractor shall be available during office
hours for communication with the public. Telephone numbers shall either be a local or a toll free call
to residents and businesses of the City. Contractor's telephone system shall be adequate to handle the
volume of calls typically experienced on the busiest days. Contractor shall also maintain a local or toll
free telephone number for use during other than normal business hours. Contractor shall have a
representative, answering or message providing/receiving (voice-mail) service available at said after
hours telephone number.
6.4.2 Complaint Documentation
All service complaints related to Food and Green Waste Collection shall be directed to Contractor.
Daily logs of complaints concerning Collection of Food and Green Waste shall be retained for a
minimum of twenty-four (24) months and shall be available to City at all times during this Agreement
upon twenty-four (24) hour notice.
Deleted: Food and Green Waste
Page 720 of 984
29
Deleted: <object>
Contractor shall log all complaints received orally or in writing and said log shall include the date and
time the complaint was received, name, address and telephone number of complainant to the extent
that such information is provided by complainant, description of complaint, employee recording
complaint and the action taken by Contractor to respond to and remedy complaint. All complaints
received shall be responded to within twenty four (24) working hours of receipt.
All customer service records and logs kept by Contractor shall be available at all times during this
Agreement to City upon twenty four (24) hour notice and at no cost to City. City shall, at any time
during regular Contractor business hours, have access to Contractor's customer service department for
purposes of monitoring the quality of customer service or researching customer complaints assessing
liquidated damages or other matters related to Contractor's performance under this Agreement.
6.4.3 Resolution of Customer Complaints
Contractor shall notify customers of this complaint procedure at the time customers apply for or are
provided service, and subsequently, annually.
A customer dissatisfied with Contractor's decision regarding a complaint may ask the City to review
the complaint. The City's Utilities Director shall determine if the customer's complaint is justified,
and if so, what remedy, if any shall be provided. The remedy under this Section shall be limited to a
rebate of customer charges related to the period of breach of any of the Terms of this Agreement. Any
resolution of these customer complaints shall not affect the City's rights to liquidated damages.
6.4.4 Government Liaison
Contractor shall designate in writing a "Government Liaison" who shall be responsible for working
with the City Manager, Utilities Director and/or one of their designated representative(s) to resolve
customer complaints.
6.5 Education and Public Awareness
A. Program Objectives.
The City shall be responsible for designing, implementing, and conducting a public education and
outreach program. The City’s public education and outreach strategy shall focus on improving
Generator understanding of the benefits of and opportunities for source reduction, Reuse, and landfill
Disposal reduction and supporting compliance with Applicable Laws and regulations, including, but
not limited to SB 1383. The cumulative intended effect of these efforts is to reduce the amount of
each Generator’s Discarded Materials and, ultimately, Disposal of Discarded Materials, and
Contractor agrees to support and not undermine or interfere with such efforts.
B. Contractor Cooperation and Support.
Contractor acknowledges and agrees that education and public awareness are critical, key, and essential
elements of any efforts to achieve AB 939, Sb 1383, and other Applicable Laws. Accordingly, Contractor
agrees to take direction from City or its designee to exploit opportunities to expand public and Customer
knowledge concerning needs and methods to reduce, reuse, and Recycle Discarded Materials and to
cooperate fully with City in this regard. Contractor acknowledges that they are part of a multi-party effort
to operate and educate the public about the regional integrated waste management system. Contractor
shall cooperate and coordinate with the City or its designee on public education activities to minimize
duplicative, inconsistent, or inappropriately timed education campaigns. The Contractor shall cooperate
with and shall not impede, interfere, or attempt to impede or interfere with the implementation,
expansion, or operation of public education and outreach programs or campaigns conducted by the City.
C. Contractor Education Activities
Deleted: A.
Deleted: B.
Deleted: AB 1826 requirements
Deleted: cooperate with
Deleted: in exploring
Deleted: customer
Deleted: recycle Solid Waste
Page 721 of 984
30
Deleted: <object>
1. Supplemental Education Materials. Contractor shall perform all necessary public education
activities related to the Organic Materials services as directed by the City. This shall include,
but not be limited to, annual mailings to all Customers explaining the Food and Green Waste
program, mailings prior to the start of services, flyers handed out with Container delivery and
follow-up mailings or handouts related to the Collection of new materials. All public
education materials shall be approved in advance by the City. Contractor shall obtain
approval from the City on all Contractor-provided public education materials outside of the
City’s education plan, including, but not limited to: print, radio, television, or internet media
before publication, distribution, and/or release. The City shall have the right to request that
Contractor include City identification and contact information on public education materials
and approval of such requests shall not be unreasonably withheld.
2. Bill Inserts. Contractor shall maintain its own program of providing information relevant to
billing and Organic Materials services, issues and needs with its bills. Contractor shall also
include in Customer bills additional information, including information on any and all
programs, as directed by the City. Contractor shall bear all labor costs with respect to
inserting public education materials with the billings. City shall bear any additional postage
expense resulting from the City's inserts and shall bear other expenses related to the inserts to
the extent said expenses are clearly in excess of the Contractor's normal billing costs. All
public education materials shall be approved in advance by the City. Contractor shall be
responsible for printing single-sheet, double sided bill inserts at least annually. Contractor
shall provide electronic bill inserts (or separate email attachments) to Customers who are
billed electronically, and paper bill inserts to Customers who receive paper bills. Upon City
request for such inserts, Contractor shall comply with such request during its next billing
cycle for the targeted Customer group. Contractor shall perform this service with no
additional requirement for compensation.
3. Annual Notice of Requirements. If not already provided through another Discarded Materials
franchise agreement between the Parties, Contractor shall, not less than once per year,
prepare and distribute to each Generator in the City a mailer that includes information
specified in 14 CCR Section 18985.1(a). Such mailer shall be distributed by Contractor to all
Residential and Commercial mailing addresses including individual Multi-Family Dwelling
Units and tenants of multi-tenant Commercial locations. Contractor shall also make this
notice available in an electronic format through the Contractor’s website.
4. Other Outreach. At the direction of the City, Contractor shall participate in and promote AB
939, AB 341, AB 1826, SB 1383 or other Applicable Law activities and other Solid Waste
management techniques at community events and local activities. Such participation would
normally include providing, without cost, educational and publicity information promoting
the goals of the City's Discarded Materials program.
6.6 Procurement of Recovered Organic Waste Products
A. Compost Give-Away Events and City Use. Contractor shall make available for distribution an
annual total of at least one hundred cubic yards of Compost, or other mutually agreed upon amount, at
two (2) public events held within the City or for other City use. The location, date, and time of such
events shall be determined by the City, with adequate notice to the Contractor, and may be held in
conjunction with other City-approved events. Contractor shall deliver the Compost to the agreed-upon
event location at no cost to City. Contractor shall provide at least one (1) attendant for at least six (6)
hours per event.
B. In the event a public compost give-away event is held at the Designated Processing Facility, and
to the extent that such distribution qualifies for City's procurement credit under SB 1383, the City
shall be allocated its proportional share of such qualified procurement based on the inbound Tonnage
Deleted: 1.
Deleted: Food and Green Waste
Deleted: customers
Deleted: waste
Deleted: collection
Deleted: Manager and/or Utilities Director
Deleted: Recycling, reuse and other diversion
Deleted: to the City
Deleted: AO 939 and AO 1826 programs
Field Code Changed
Page 722 of 984
31
Deleted: <object>
of Organic Materials collected by Contractor from City divided by the total inbound Tonnage of the
Approved Organic Materials Processing Facility to which Contractor delivered such City Tonnage
during the applicable measurement period.
Page 723 of 984
32
Deleted: <object>
ARTICLE 7.
PAYMENTS TO CITY
7.1 Franchise Fee
In consideration of the exclusive franchise provided for in this Agreement, Contractor shall pay the
City ten percent (10%) of its gross revenues for Organic Materials Collection services; provided,
however, that such Franchise Fee shall not exceed the costs incurred by the City to deliver service to
properties. Such Franchise Fee shall be a “pass-through” expense for purposes of Rate review.
7.2 AB 939/SB 1383 Fee
Contractor shall pay an AB 939/SB 1383 fee to the City each month. The City shall retain the sole
right to set priorities for the use of its AB 939/SB 1383 fee. In addition, if the City’s designee
implements an AB 939, SB 1383, or Solid Waste Management fee, Contractor shall pay that fee
directly to the designee. Said fees shall be an allowable cost in Contractor’s rate application. All AB
939/SB 1383 fees and Solid Waste Management fees paid to the City or its designee shall be
considered a pass through cost for purposes of rate setting, and, as such changes these fees shall be
adjusted accordingly subject to all applicable laws and regulations. The City or its designee shall have
the right to establish and adjust the AB 939, SB 1383, or Solid Waste Management fee at any time,
provided that any changes are considered a pass-through cost for the purposes of rate setting, at the
time of the change in the AB 939, SB 1383, or Solid Waste Management fee.
7.3 Business License Tax
Contractor shall pay each annual business license tax.
7.4 Other Fees
The City shall reserve the right to set "Other" Fees, as it deems necessary. These expenses will
be determined and a fee designed to reimburse the City. Such fees shall be set annually by City
resolution and may be considered a pass through cost for purposes of rate setting.
7.5 Time and Method of Payment
If Contractor is directed to pay an AB 939/SB 1383 Fee, Franchise Fee or "Other" fee, it shall do so
on or before the fifteenth (15th) day of each month during the Term. Contractor shall remit to City a
sum of money equal to the designated percentage of the gross revenue or a flat monthly fee as
determined by the City. If any fees are not paid on or before the fifteenth (15th) day of any month,
Contractor shall pay to City a late payment penalty in an amount equal to one percent (1%) of the
amount owing for that month.
Contractor shall pay an additional late payment penalty of one percent (1%) owing on any unpaid
balance for each following thirty (30) day period the fee remains unpaid. Late payment penalty
amounts shall not be included in any revenue requirement.
7.6 Adjustment of Fees
The City may adjust the amount of fees annually. Such adjustment shall be reflected in the rates that
the Contractor is allowed to charge and collect from customers.
7.7 Review of Fee Payments
The City, or its agent, reserves the right to annually perform an independent review of fee payments,
to verify that fees are being paid in accordance with Agreement. The cost of such reviews will be an
allowable cost under the rate setting methodology.
Deleted: ¶
Deleted: Food and Green Waste
Deleted: franchise fee
Deleted: franchise fee
Deleted: "
Deleted: "
Deleted: rate
Deleted: 7.2
Deleted: ¶
Page 724 of 984
33
Deleted: <object>
ARTICLE 8.
CONTRACTOR'S COMPENSATION AND RATES
8.1 General
Contractor's compensation provided for in this Article shall be the full, entire and complete
compensation due to Contractor pursuant to this Agreement for all labor, equipment, materials and
supplies, taxes, insurance, bonds, overhead, profit and all other things necessary to perform all the
services required by this Agreement in the manner and at the times prescribed.
The Contractor does not look to the City for payment of any sums under this Agreement. Contractor
will perform the responsibilities and duties described in this Agreement in consideration of the right
to charge and collect from customers for services rendered at rates fixed by the City from time-to-
time and the right to sell compost and other beneficial byproducts generated from the Food and Green
Waste. The City shall have the right to structure those rates as it deems appropriate so long as the
revenues forecasted to be received by Contractor from charging such rates can reasonably be
expected to generate sufficient revenues to provide for Contractor's compensation.
8.2 Initial Rates
Contractor will submit required financial documentation for this service as part of an integrated solid
waste rate application. The rate application will comply with the guidelines set forth in the City's
"Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates". The
portion of the rate attributable to this service shall be identified as part of the Council rate-setting
process but will not be separated from the integrated rate.
8.3 Subsequent Rates
Contractor may request rate revisions in future solid waste rate applications. The rate application must
comply with the City's "Rate Setting Process and Methodology Manual for Solid Waste Management
Rates".
8.4 Right to Perform Rate Reviews
City reserves the right to perform, or have a qualified third party perform, a detailed review of
Contractor's expenses and revenues for the purposes of adjusting rates. The results of this detailed rate
review will be used to adjust rates, and the Contractor's calculated revenue requirements will be used
the following year to adjust rates according to Section 8.3 Contractor's Compensation for subsequent
Rate Years.
8.5 Extraordinary Adjustments
Contractor or City may request an adjustment to rates at times other than that required in Section 8.3
for unusual changes in the cost of providing service under this Agreement. Such changes may
include, but are not limited to, changes in laws, ordinances, or regulations, and significant changes in
Contractor's workload due to new residential or commercial development. However, when an
extraordinary adjustment is requested, such adjustment shall consider changes in all costs and
revenues from Contractor's proposed revenue requirement.
Deleted: ¶
Page 725 of 984
34
Deleted: <object>
For each such request, Contractor shall prepare a schedule comparing the original proposed costs and
revenues by line item to the then current costs and revenues, including an estimates of the cost impact
of the change, using an operating ratio of 93%, applied to Contractor's costs as calculated in
Contractor's proposed revenue requirement. Such request shall be prepared in a form acceptable to
City with support for assumptions made by Contractor in preparing the estimate, Contractor and City
shall negotiate a mutually acceptable adjustment amount.
ARTICLE 9.
RECORDKEEPING AND REPORTING
9.1 Records
9.1.1 General
A. Contractor shall maintain records required to conduct its operations, to support requests it may
make to City, and to respond to requests of the City. Adequate record security shall be
maintained to preserve records from events that can be reasonably anticipated such as a fire,
theft and earthquake. Electronically maintained data and records shall be protected and an
adequate backup system shall be provided for such data and records. The protection and
backup systems shall be subject to approval by the City.
B. The following records shall be maintained for the City in form and detail satisfactory to the
City, relating to:
1. Customer services and billing;
2. Weight of Organic Materials. Information is to be separated by kind of account
(Single-Family, Multi-Family, and Commercial);
3. Special annual clean-up event results;
4. Routes;
5. Facilities, equipment, and personnel used;
6. Facilities and equipment operations, maintenance, and repair;
7. Processing of Organic Materials;
8. Complaints; and
9. Missed pick-ups.
C. Contractor shall maintain records of Transfer, Diversion, and Disposal of all Organic Materials
Collected in the City for the period of this Agreement and all extensions to this Agreement or
successor Agreements. In the event Contractor discontinues providing Organic Materials
services to City, Contractor shall provide all records of Diversion and Disposal of all Organic
Materials Collected within the City to City within thirty (30) days of discontinuing service.
Records shall be in chronological order, and organized in a form readily and easily interpreted.
D. Records for other programs shall be tailored to specific needs. In general, they shall include:
1. Plans, tasks·, and milestones; and,
2. Accomplishments in terms such as dates, activities conducted, quantities of
products used, produced or distributed, and numbers of participants and
responses.
E. Unless otherwise required in this Agreement, Contractor shall retain all records and data
required to be maintained by this Agreement for the Term of this Agreement plus five (5)
years after its expiration or earlier termination. Contractor’s records shall be stored in one
central location, physical or electronic, that can be readily accessed by Contractor. Upon
request, any such records shall be retrieved in a timely manner, not to exceed ten (10) Working
Days of a request by the City and made available to the City; including any record or
documentation that the City, requires to fulfill obligations under Applicable Law including,
Deleted: ¶
Deleted: Section Break (Next Page)
RECORDS, REPORTS AND INFORMATION,
STUDIES AND HEARING REQUIREMENTS¶
Deleted: from City in
Deleted: conduct of City business, Additionally, the
Contractor shall also keep and maintain records
reasonably necessary for audits, as required by this
Agreement, and shall keep and maintain all records
reasonably necessary to develop reports and financial
statements required with respect to this AgreementCity
Deleted: /
Deleted: backed up
Deleted: D.
Page 726 of 984
35
Deleted: <object>
but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, SB 1383, and other current or
future Federal, State, or local regulations, as amended.
9.1.2 Financial Records
Financial records shall separate all records related to the services performed under this Agreement
from any and all other types of businesses and operations conducted by the Contractor.
9.1.3 General Records
City approved records (format) shall be maintained for the City separate from other jurisdictions
relating to:
• Customer services;
• Weight of Food and Green Waste;
• Routes;
• Facilities, inventory of equipment and personnel used;
• facilities and equipment operations, maintenance and repair;
• Processing of Food and Green Waste and marketing and sale of Compost including name of
the purchaser, the date of sales transaction, processing cost per ton, quantity purchased, value
per ton and net sales records;
• Complaints; and,
• Missed pick ups.
Contractor shall maintain records of all Food and Green Waste Collected in the City for the term of
this Agreement. In the event Contractor discontinues providing Food and Green Waste services to
City, Contractor shall provide all records of all Food and Green Waste Collected in City to City
within thirty (30) days of discontinuing service. Records shall be in chronological and organized form
and readily and easily interpreted.
9.2 Reports
A. 9.2.1 Report Formats and ScheduleRecords shall be maintained in forms and by methods
that facilitate flexible use of data contained in them to structure reports, as needed. Reports are
intended to compile recorded data into useful forms of information that can be used to, among
other things:
1. Determine and set rates, and evaluate the financial efficacy of operations; and
2. Evaluate past and expected progress towards achieving goals and objectives; and
3. Determine needs for adjustment to programs; and
4. Evaluate Customer service and Complaints.
B. The City may at no cost to itself request that Contractor provide such additional information in
the reports set forth below as the City deems necessary or appropriate to meet its needs,
including provision of information needed for the City’s compliance with Applicable Law,
including, but not limited to AB 939, AB 1826, AB 341, and SB 1383 report information.
Contractor may propose report formats that are responsive to the objectives and audiences for
each report. The format of each report shall be subject to approval by the City.
C. Contractor shall submit all reports to the City, electronically via e -mail using software
acceptable to the City. The City reserves the right to require the Contractor to maintain records
and submit the reports required herein through use of the City-selected web-based software
platform and/or Microsoft Excel spreadsheet, at the Contractor’s expense.
D. Monthly reports shall be submitted within ten (10) calendar days after the end of the
report month. All reports shall be submitted to:
Deleted: ¶
Deleted: formal
Deleted: approved
Deleted: ¶
Deleted: twenty (20
Deleted: being reported. Annual
Deleted: before September 30th, for the previous
reporting year.to:
Page 727 of 984
36
Deleted: <object>
Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
9.2.2 Monthly Reports
The information listed shall be the minimum reported for each service:
A. Discarded Materials, Collected, Transferred, Diverted and Disposed of, by sector
(Commercial, industrial, Residential) of Waste Generator-Collected by Contractor, in Tons,
by month.
B. Complaint summary, for month and cumulative for report year, as above, summarized by
nature of Complaints.
C. Narrative summary of problems encountered and actions taken with recommendations for the
City, as appropriate.
D. All requirements specified in “Exhibit A.”
9.2.3 Annual Report
The Annual Report is to be essentially in the form and content of the monthly reports. Annual reports
shall include at a minimum, all data and information described in Exhibit A, unless otherwise
specified under this Agreement. In addition, Contractor's annual audited financial reports/statements,
with the operations related to the City services segregated, shall be included. The annual report shall
also include a complete inventory of equipment used to provide all services.
Financial statements shall include a supplemental schedule combining Contractor's results of
operations, separating the specific revenues and expenses, including detailed information with respect
to general overhead claimed by the Contractor, in connection with the operations provided for in this
Agreement from others included in such financial statements. The financial statements, supplemental
schedule, management letter and footnotes shall be prepared in accordance with Generally Accepted
Accounting Principles (GAAP) and audited, in accordance with Generally Accepted Auditing
Standards (GAAS) by a certified public accountant (CPA) licensed (in good standing) to practice
public accounting in the State of California as determined by the State of California Department of
Consumer Affairs Board of Accountancy. The CPA opinion on Contractor's annual financial
statements and supplemental schedule shall be unqualified, except as to uncertainties for which the
ultimate outcome cannot be determined by the date of the CPA's opinion.
9.2.4 Additional Reports.
At the City’s option, the City may require that Contractor provide the City with the aggregate tonnage
data related to AB 901 reporting that the City needs for its SB 1383 reporting, to the extent available
to Contractor within five (5) Business Days of City request.
9.3 Right to Inspect Records
City shall have the right to inspect or review the payroll tax reports, specific documents or records
required expressly or by inference pursuant to this Agreement, or any other similar records or reports
of Contractor that City shall deem, in its sole discretion, necessary to evaluate annual reports,
compensation applications provided for in this Agreement and Contractor's performance provided for
in this Agreement. The City retains the right to have an independent third party or agent of the City's
choosing, such as a CPA, participate in the records inspection. The cost of such inspection or review
will be an allowable cost under the rate setting methodology.
9.3.1 Right to Review Basis for Landfill Tipping Fee Increases
The Contractor shall provide to the City a copy of Cold Canyon Landfill's and/or the designated Food
and Green Waste processing facility's request for an increase in tipping fees no later than five (5) days
Deleted: Food
Deleted: A.
Deleted: Green
Deleted: collected, sorted by type of
Deleted: tons
Deleted: , and cumulative for report year
Deleted: B.
Deleted: C.
Deleted: assessment
Deleted: to
Deleted: for improvement
Deleted: Number of accounts by category for each
month of reporting year.¶
Participation rates.¶
Food and Green Waste Container distribution.¶
The City may designate any additional information
that it wishes provided in the monthly reports.¶
¶
Deleted:
Deleted: ¶
Deleted:
Deleted:
Deleted:
Page 728 of 984
37
Deleted: <object>
following submittal of said request to the County of San Luis Obispo and/or the designated
processing facility.
Additionally, the Contractor shall notify the City of the action taken by the Board of Supervisors and
/or the designated processing facility regarding said request within five (5) days following said action,
including letter to the Board of Supervisors and related executed resolution and/or appropriate
documentation from the designated processing facility. The City retains the right to have an
independent third party or agent of the City's choosing, such as a CPA, participate in the review. The
cost of such inspection or review will be an allowable cost under the rate setting methodology unless
there arc findings pursuant to Section 12.5.
9.4 Waste Generation/Characterization Studies
Contractor acknowledges that the city must perform Solid Waste Generation and Disposal
characterization studies periodically to comply with AB 939 requirements. Contractor agrees to
participate and cooperate with City and its designated agents to accomplish 1) studies and data
collection and prepare reports as needed to determine weights and volumes of Solid Waste generated,
Diverted, Disposed, transformed, or otherwise handled/processed to satisfy AB 939 requirements; and
2) other efforts the City may be required to conduct for compliance with Applicable Law, such as SB
1383.
9.5 Performance Hearing
The City maintains the right to hold a public hearing at any time, not more than once each year, al
which the Contractor shall be present and shall participate, to review its services and performance.
The purpose of the hearing is to provide for a discussion and review of technological, economic, and
regulatory changes in order to achieve a continuing, advanced Solid Waste management system; and
to ensure customer service quality and any other areas that may be addressed regarding services are
being provided with adequate quality, efficiency and economy.
Sixty (60) days after receiving notice from City of a Performance Hearing, Contractor shall, at a
minimum, submit a report to City indicating (1) changes recommended and/or new services to
improve City's ability to meet the goals of AB 939 and Ab 1826 to contain costs and minimize
impacts on rates; and (2) any specific plans for provision of changed or new services by Contractor.
Deleted: g
Deleted: d
Deleted: d
Deleted: d
Page 729 of 984
38
Deleted: <object>
ARTICLE 10.
INDEMNIFICATION, INSURANCE AND BOND
10.1 Indemnification
Contractor shall indemnify and hold harmless City, its officers, Directors, employees, and agents
from and against any and all loss, liability, penalty, forfeiture, claim, demand, action proceeding or
suit of any and every kind and description (including, but not limited to, injury to and death of any
Person and damage to property, or for contribution or indemnity claimed by third parties) to the
extent arising or resulting from and in any way connected with (1) the negligence or willful
misconduct of Contractor, its officers, employees agents and/or sub Contractors in performing
services under this Agreement; (2) the failure of Contractor, its officers, employees, agents and/or
subcontractors to comply in all respects with the provisions of this Agreement, applicable laws
(including, without limitation, the Environmental Laws) and regulations, and/or applicable permits
and licenses; (3) the acts of Contractor, its officers, employees, agents and/or subcontractors in
performing services under this Agreement for which strict liability is imposed by law (including,
without limitation, the Environmental Laws). Contractor further agrees to and shall, upon demand of
City, at Contractor's sole cost and expense, defend (with attorneys acceptable to City) the City, its
officers, directors, employees, and agents against any claims, actions, suits or other proceedings,
whether judicial, quasi-judicial or administrative in nature, arising or resulting from any events
described in the immediately preceding paragraph to the extent arising from or related to alleged or
actual violations of Proposition 218 and/or its implementing legislation.
Contractor's duty to indemnify and defend shall survive the expiration or earlier termination of this
Agreement.
10.2 Landfill Diversion
The Contractor acknowledges that the City has adopted a SRRE which selects Food and Green Waste
Collection and Composting programs as a means of diverting an estimated 6,796 tons in 1995 and
8,248 tons per year by the year 2000. It is therefore of foremost importance that the Food and Green
Waste and wood debris collected under this Agreement be converted into a functional and marketable
product in order that the materials may be diverted from landfill disposal in compliance with the
City's SRRE, and AB 939. The Contractor shall therefore use commercially reasonable efforts ensure
that the processing method used shall, at all times, meet the intent of the City's SRRE and AB 939.
Should the Contractor find it necessary to utilize another method of processing in order to meet the
intent of the SRRE and AB 939, the City shall be given an opportunity to make its own determination
as to the suitability and cost- effectiveness of such process and shall approve such process in writing.
The City shall have the right to terminate this Agreement upon the giving of a six (6) month prior
written notice to Contractor should it be determined that the Food and Green Waste program being
implemented and/or proposed under this Agreement is ineffective in meeting the City's diversion
goals and objectives. Upon termination, the Contractor shall be entitled only to revenues less
expenses incurred to that date. All revenues received thereafter shall be the property of the City unless
otherwise agreed.
10.3 AB 939/SB1383 Indemnification
Contractor agrees to indemnify and hold harmless City, its officers, Directors, employees, and agents
from and against all fines and/or penalties imposed by the California Integrated Waste Management
Board in the event the source reduction and recycling goals or any other requirements of AB 939 or
SB 1383 are not met by City with respect to the waste stream Collected under this Agreement but
only to the extent such failure is due to the failure of Contractor to meet its obligations under this
Agreement or for delays in providing information that prevents City from submitting reports required
by AB 939 or SB 1383 in a timely manner.
Deleted: ¶
Deleted: ,
Deleted: requirement
Page 730 of 984
39
Deleted: <object>
10.4 Insurance
A. Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. Comprehensive General Liability: One Million Dollars ($1,000,000) combined
single limit per occurrence for bodily injury, Personal injury and property
damage.
2. Automobile Liability: One Million Dollars ($1,000,000) combined single limit
per accident for bodily injury and property damage.
3. Workers' Compensation and Employers Liability: Workers' compensation limits
as required by the Labor Code of the State of California and Employers Liability
limits of
4. $1,000,000 per accident.
B. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must
be declared to and approved by the City. At the option of the City, either: the insurer shall
reduce or eliminate such deductibles or self-insured retentions as respects the City, its
officials, directors and employees; or Contractor shall procure a bond guaranteeing payment
of losses and related investigations, claim administration and defense expenses.
C. Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the
following provisions:
1. General Liability and Automobile Liability Coverages
a) The City, its officials, employees, and directors 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,
leased 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 the City, its officials, employees or volunteers.
b) Contractor's insurance coverage shall be primary insurance as respects City, its
officials, directors, employees and volunteers. Any insurance or self-insurance
maintained by City, its officials, or employees shall be excess of Contractor's
insurance and shall not contribute with it.
c) Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to City, its officials, or employees.Coverage shall state that
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.
2. Workers' Compensation and Employers Liability Coverage - The insurer shall
agree to waive all rights of subrogation against City, its officials, and employees
for losses arising from work performed by Contractor for City.
3. All Coverages - Each insurance policy required by this clause shall be endorsed
to state that coverage shall not be suspended, voided, canceled by either party,
reduced in coverage or limits except after thirty (30) days prior written notice by
certified mail, return receipt requested, has been given to City.
D. Acceptability of Insurers. The insurance policies required by this Section shall be issued by
an insurance contractor or companies admitted to do business in the State of California
Deleted: ¶
¶
Page 731 of 984
40
Deleted: <object>
subject to the jurisdiction of the California Insurance Commissioner and with a rating in the
most recent edition of Best's Insurance Reports of size category VII or larger and a rating
classification of A or better.
E. Verification of Coverage. Contractor shall furnish City with certificates of insurance and
with original endorsements affecting coverage required by this clause. 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 or acceptable to City and 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.
10.5 Faithful Performance Bond
Simultaneously with the execution of this Agreement, Contractor shall file with City surety bond,
payable to City, securing Contractor's faithful performance of its obligations under this Agreement.
The bond shall be in the amount of 125% of the total annual contract price guaranteeing the faithful
performance of the agreement, including any reasonable attorney's fees or other collection costs.
Page 732 of 984
41
Deleted: <object>
ARTICLE 11.
CITY'S RIGHT TO PERFORM SERVICE
11.1 General
In the event that Contractor, for any reason whatsoever, fails, refuses or is unable to Collect, transport
or process any or all Food and Green Waste materials which it is required by this Agreement to
Collect and process, at the time and in the manner provided in this Agreement, for a period of more
than seven (7) calendar days, and if, as a result thereof, Food and Green Waste should accumulate in
the 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 City shall have the
right, but not the obligation, upon twenty-four (24) hour prior written notice to Contractor during the
period of such emergency as determined by the City Manager, (1) to perform, or cause to be
performed, such services itself with its own or other personnel without liability to Contractor; and/or
(2) to take possession of any or all of Contractor's land, equipment and other property to Collect,
transport or process any Food and/or Green Waste generated within the City which Contractor would
otherwise be obligated to Collect, transport, process or market pursuant to this Agreement. In the
event the City takes possession of the Contractor's equipment and other property, the City shall be
entitled to have another contractor operate such equipment and property under City direction.
Additionally, in the event the City takes possession of the Contractor's equipment and other property,
the City does not guarantee repair of existing problems with equipment and facilities.
Notice of Contractor's failure, refusal or neglect to Collect, transport or process Food and Green
Waste may be given orally by telephone to Contractor at its principal office and shall be effective
immediately. Written confirmation of such oral notification shall be sent to Contractor within twenty-
four (24) hours of the oral notification.
Contractor further agrees that in such event:
• It will take direction from City to effect the transfer of possession of property to City for
City's use.
• It will, if City so requests, keep in good repair and condition all of such property, provide all
motor vehicles with fuel, oil and other service, and provide such other service as may be
necessary to maintain said property in operational condition.
• City may immediately engage all or any personnel necessary or useful for the Collection,
transpot1ation and processing Green Waste, including, if City so desires, employees
previously or then employed by Contractor, Contractor further agrees, if City so requests, to
furnish City the services of any or all management or office personnel employed by
Contractor whose services arc necessary or useful for Green Waste Collection, Transportation
and processing operations and for the billing and collection of fees for these services.
City agrees that it assumes complete responsibility for the proper and normal use of such equipment
and facilities while in its possession.
If the interruption or discontinuance in service is caused by any of the reasons listed in Section
12.4 (Excuse From Performance), City shall pay to Contractor the reasonable rental value of the
equipment and facilities, possession of which is taken by City, for the period of City's possession, if
any, which extends beyond the period of time for which Contractor has rendered bills in advance of
service
Except as otherwise expressly provided in the previous paragraph, City's exercise of its rights under
this Article 11 (I) does not constitute a taking of private property for which compensation must be
paid; (2) will not create any liability on the part of City to Contractor; and (3) does not exempt
Deleted: ¶
Page 733 of 984
42
Deleted: <object>
Contractor from the indemnity provisions of Article 10, Indemnification, Insurance and Bond, which
are meant to extend to circumstances arising under this Section, provided that Contractor is not
required to indemnify City against claims and damages arising from the sole negligence of City
officers, employees and agents in the operation of Collection vehicles during the time City has taken
possession of such vehicles.
11.2 Temporary Possession or Contractor's Property
If the City suffers an interruption or discontinuance of service as described in Section 11.1 (including
interruptions and discontinuance due to events described in Section 12.4, Excuse from Performance),
City may take possession of and use all of Contractor's property described above until other suitable
arrangements can be made for the provision of Food and Green Waste Services which may include
the grant of a Contract to another company. The same notice requirements of Section 11.1 are
applicable.
11.3 Billing and Compensation to City During City's Possession
During such time that city is providing Green Waste services, as above provided, Contractor shall
continue to bill and collect payment from all users of the above-mentioned services.
Contractor further agrees that, in such event, it shall reimburse City for any and all costs and expenses
incurred by City in taking over possession of the above-mentioned property for Food and Green
Waste service in such manner and to an extent as would otherwise be required of Contractor under the
Terms of this Agreement. Such reimbursement shall be made from time to time after submission By
City to Contractor of each statement listing such costs and expenses, but in no event later than five (5)
working days from and after each such submission. The City shall have the right, at its sole
discretion, to take over billing and payment collection activities, The City shall then pay any net
revenues to the Contractor, after deducting all expenses, including City-incurred expenses.
11.4 City's Right to Relinquish Possession
It is further mutually agreed that City may at any time at its discretion relinquish possession of any or
all of the above-mentioned property to Contractor and thereupon demand that Contractor resume the
Food and Green Waste services as provided in this Agreement, whereupon Contractor shall be bound
to resume the same.
11.5 Duration of City's Possession
City's right pursuant to this Article to retain temporary possession of Contractor's facilities and
equipment, and to render Collection services, shall terminate when City determines that such services
can be resumed by Contractor, or when City no longer reasonably requires such facilities or
equipment. In any case, City has no obligation to maintain possession of Contractor's property and/or
continue its use for any period of time and may at any time, in its sole discretion, relinquish
possession to Contractor.
Page 734 of 984
43
Deleted: <object>
ARTICLE 12.
DEFAULT, REMEDIES AND LIQUIDATED DAMAGES
12.1 Events of Default
All provisions of this Agreement to be performed by Contractor arc considered material. Each of the
following shall constitute an event of default.
A. Fraud or Deceit. If Contractor practices, or attempts to practice, any fraud or deceit upon
city.
B. Insolvency or Bankruptcy. If Contractor becomes insolvent, unable, or unwilling to pay
its debts when due, or upon listing of an order for relief in favor of Contractor in a
bankruptcy proceeding. The Contractor is also in default if there is an assignment of this
contract for the benefit of its creditors.
C. Failure to Maintain Coverage. If Contractor fails to provide or maintain in full force
and effect the Workers' Compensation, liability, indemnification coverage or any
insurance coverage or bond required under this Agreement.
D. Violations of Regulation. If Contractor facilities fall out of full regulatory compliance or
if Contractor violates any orders or filings of any regulatory body having jurisdiction
over Contractor relative to this Agreement, provided that Contractor may contest any
such orders or filings by appropriate proceedings conducted in good faith, in which case
no breach of the Agreement shall be deemed to have occurred.
E. Failure to Perform. If Contractor ceases to provide Food and Green Waste services as
required under this Agreement for a period of two (2) days or more, for any reason within
the control of Contractor.
F. Failure to Pay/Report. If Contractor fails to make any timely payments, including
liquidated damages and penalties, required under this Agreement and/or fails to provide
City with required information, reports, and/or records in a timely manner as provided for
in the Agreement.
G. Acts or Omissions. Any other act or omission by Contractor which violates the terms,
conditions, or requirements of this Agreement, 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 there under and which is not corrected or remedied
within the time set in the written notice the violation or, if Contractor cannot reasonably
correct or remedy the breach within the time set forth in such notice, if 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.
H. False or Misleading Statements. Any representation or disclosure made to City by
Contractor in connection with or as an inducement to entering into this Agreement, or
any future amendment to this Agreement, which proves to be false or misleading in any
material respect as of the time such representation or disclosure is made, whether or not
any such representation or disclosure appears as part of this Agreement.
a. Attachment. There is a seizure of attachment at: or levy on, the operating
equipment of Contractor, including without limits its equipment, maintenance or
office facilities, or any part thereof.
Deleted: ¶
¶
Deleted: ¶
Page 735 of 984
44
Deleted: <object>
I. Suspension or Termination of Service. There is any termination or suspension of the
transaction of business by Contractor, including without limit, due to labor unrest
including strike, work stoppage or slowdown, sickout, picketing, or other concerted job
action lasting more than two (2) days.
Upon default by the Contractor, the City Manager shall provide written notice to Contractor of the
violation. The City Manager shall include in the notice, a demand that the Contractor correct the
violation within 10 days following the delivery of said notice. If the violation is not corrected within
the IO days, the City shall have the right to terminate the Agreement per the provisions provided in
Section 12.2. for purposes of this Agreement and any notice required thereunder, the term "days"
shall mean calendar days.
12.2 Right to Terminate Upon Default
Upon a default by Contractor, City shall have the right to terminate this Agreement upon a ten (IO)
days notice if the public health or safety is threatened, or otherwise a thirty (30) days notice, but
without the need for any hearing, suit or legal action. This right of termination is in addition to any
other rights of City upon a failure of Contractor to perform its obligations under this Agreement.
City's right to terminate this Agreement and to take possession of Contractor's equipment and
facilities are not exclusive, and City's termination of this Agreement shall not constitute an election of
remedies. Instead, they shall be in addition to any and all other legal and equitable rights and
remedies which City may have.
By virtue of the nature of this Agreement, the urgency of timely, continuous and high-quality service,
the lead time required to effect alternative service, and the rights granted by City to Contractor, the
remedy of damages for a breach hereof by Contractor is inadequate and City shall be entitled in
injunctive relief.
12.3 Liquidated Damages
A. General. City finds, and Contractor agrees, that as of the time of the execution of this Agreement,
it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be
incurred by City as a result of a breach by Contractor of its obligations under this 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 Agreement to individual members of the general public for
whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which
are incapable of measurement in precise monetary terms; (iii) that exclusive 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 Agreement for such breaches, and other
remedies are, at best, a means of future correction and not remedies which make the public whole
for past breaches.
B. Service Performance Standards; Liquidated Damages for Failure to Meet Standards. The parties
acknowledge that consistent, reliable Organic Materials Collection service is of utmost
importance to City and that city has considered and relied on Contractor's representations as to its
quality of service commitment in awarding the Agreement to it. The Parties further recognize that
if Contractor fails to achieve the performance standards defined in this Section, comply with
Complaint resolution criteria, or fails to submit required documents in a timely manner, City and
Deleted: ¶
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted:
Deleted: Green Waste
Deleted: The parties further recognize that some
quantified standards of performance arc necessary and
appropriate to ensure consistent and reliable service and
performance. The partiesThe Parties
Deleted: complaint
Page 736 of 984
45
Deleted: <object>
its residents will suffer damages and that it is and will be impractical and extremely difficult to
ascertain and determine the exact amount of damages which City will suffer. Therefore, without
prejudice to City's right to treat such non-performance as an event of default under this Article 12,
the parties agree that the following Liquidated Damage amounts represent a reasonable estimate
of the amount of such damages considering all of the circumstances existing on the date of this
Agreement, including the relationship of the sums to the range of harm to City that reasonably
could be anticipated and the anticipation that proof of actual damages would be costly or
inconvenient.
The City may monitor the Contractor’s performance under the Agreement in each of the
performance areas listed below. In the event that the City determines that Contractor has failed to
meet the performance standard established for any of the areas identified below, the City may
assess Liquidated Damages pursuant to this Section of the Agreement. Contractor agrees to pay
(as Liquidated Damages and not as a penalty) the amounts set forth below:
Event of Non-Performance Liquidated Damage
Collection Reliability and Quality
1 Failure to Implement three-Container System. For each
occurrence of failing to provide Customers with Organic
Materials Containers as part of the three-Container system
required by and compliant with the City’s Municipal Code
(excluding Generators and Customers that demonstrate
compliance with Recycling and Organic Waste Self-Hauling
requirements pursuant to the Municipal Code and 14 CCR
Division 7, Article 12, Article 7.)
$150 / Generator or Customer /
occurrence / Day until compliance
achieved
2 For each failure over five (5) annually to commence service to
a new Customer account within seven (7) days after order:
$150.00
3 For each failure over ten (IO) annually to Collect Food and/or
Green Waste, which has been properly set out for Collection,
from an established Customer account on the scheduled
Collection day
$150.00
4 For each failure to Collect Food and/or Green Waste which
have been properly set out for Collection, from the same
Customer on two (2) consecutive scheduled pickup days:
$150.00
5 For each occurrence over five (5) annually of damage to
private property:
$250.00
6 For each occurrence of discourteous behavior: $250.00
7 For each failure over ten (10) annually to clean up Food
and/or Green Waste spilled by Contractor from Containers
$150.00
8 For each occurrence over five (5) annually of Collecting Food
and/ or Green Waste during unauthorized hours:
$250.00
9 For each failure to respond to a Customer Complaint within
twenty-four (24) working hours:
$100.00
10 Failure to Comply with Container Labeling and Colors.
For each occurrence of Contractor’s failure to comply with
Container labeling and color requirements pursuant to Section
5.7 of this Agreement.
$150 / Container / occurrence
11 Use of Unauthorized Facilities. For each individual
occurrence of delivering Discarded Materials to a Facility
$150 / Ton / occurrence
Deleted: liquidated damage
Deleted: he
Deleted: . Recognizing the importance of resolving
any failure to meet the service performance standard,
the City shall contact Contractor within two (2) days of
any failing reported directly to the City.
Deleted: liquidated damages
Deleted: Collection Reliability and Quality¶
For each failure over five (5) annually to commence service
to¶
a new customer account within seven (7) days after
order:$150.00¶
For each failure over ten (IO) annually to Collect Food
and/or Green Waste, which has been properly set out for
Collection, from¶
an established customer account on the scheduled Collection
day:$150.00¶
For each failure to Collect Food and/or Green Waste which
have been properly set out for Collection, from the same
customer on¶
two (2) consecutive scheduled pickup days:¶
For each occurrence over five (5) annually of damage lo
private property:¶
For each occurrence of discourteous behavior:¶
For each failure over ten (10) annually to clean up Food
and/or Green waste spilled from Bins:¶
¶
For each occurrence over five (5) annually of Collecting
Column Break
¶
$250.00¶
$250.00¶
¶
¶
$150.
Section Break (Next Page)
Section Break (Continuous)
Section Break (Continuous)
Food and/ or Green Waste during unauthorized hours:¶
Food and/ or Green Waste during unauthorized hours:¶
¶
for each failure to respond to a customer complaint within
twenty-four (24) working hours:¶
Column Break
$250.00¶
¶
$100.00¶
¶
Timeliness of Submissions to City¶
REPORTS Any report shall be considered late until such
time as a correct and complete report is received by City. For
each calendar day a report is late, the daily assessment shall
be:¶
Monthly Reports: Annual Reports:¶
Column Break
Column Break ...
Formatted: Font: 11 pt, No underline
Page 737 of 984
46
Deleted: <object>
Event of Non-Performance Liquidated Damage
other than an Approved Facility(ies) for each Discarded
Material type under this Agreement.
Reports and Timeliness of Submissions to the City
13 REPORTS. Any report shall be considered late until such time
as a correct and complete report is received by City. For each
calendar day a report is late, the daily assessment shall be:
Monthly Reports: For each infraction $100 per day
Annual Reports: For each infraction $500 per day
14 Failure to Allow Access to Records. For each failure to
provide access to records in compliance with and in the
timeframe specified in this Agreement.
$120 / day
Other
15 Failure to Perform Public Education and Outreach. For
each failure to perform any individual education and outreach
activity as required and in the timeframe specified by this
Agreement.
$180 / occurrence
16 Failure to Issue Contamination Notices. For each failure
of Contractor Collection personnel to issue contamination
warning notices and maintain documentation of issuance as
required by Section 5.4 of this Agreement.
$100 / Contractor Route / day
17 Improper Fee Issuance. For each fee that is issued to a
Generator without prior authorization from City under this
agreement.
$100 /Customer/Day
Liquidated Damages will only be assessed after Contractor has been given the opportunity but failed
to rectify the damages, as described in this Agreement (e.g., twenty-four (24) working hours to
respond to a Complaint). City may determine the occurrence of events giving rise to Liquidated
Damages through the observation of its own employees or representative or investigation of Customer
Complaints.
Prior to assessing Liquidated Damages, City shall give Contractor notice of its intention to do so. The
notice will include a brief description of the incident(s)/non-performance. Contractor may review
(and make copies at its own expense) all information in the possession of City relating to
incident(s)/non-performance. Contractor may, within ten (10) days after receiving the notice, request
a meeting with City. If a meeting is requested, it shall be held by the City Manager or their designee.
Contractor may present evidence in writing and through testimony of its employees and others
relevant to the incident(s)/non performance. The City Manager or designee will provide Contractor
with a written explanation of their determination on each incident(s)/non-performance prior to
authorizing the assessment of Liquidated Damages. The decision of the City Manager or designee
shall be final.
12.4 Excuse from Performance
The parties shall be excused from performing their respective obligations hereunder in the event they
are prevented from so performing by reason of floods, earthquakes, other "acts of God", war, civil
insurrection, riots, acts of any government (including judicial action), and other similar catastrophic
events which are beyond the control of and not the fault of the party claiming excuse from
performance hereunder. Labor unrest, including but not limited to strike, work stoppage or slowdown,
sick-out, picketing, or other concerted job action conducted by Contractor's employees or directed at
Contractor or its selected facilities is not an excuse from performance and Contractor shall be
obligated to continue to provide service notwithstanding the occurrence of any or all such events.
Deleted: complaint
Deleted: liquidated damages
Deleted: customer complaints
Deleted: ¶
Deleted: liquidated damages
Deleted: IO
Deleted: his/her
Deleted: his or her
Deleted: liquidated damages
Deleted: ¶
Amount. The City Manager may assess liquidated damages
for each calendar day or event, as appropriate, that
Contractor is determined to be liable in accordance with this
Agreement.¶
¶
Timing of Payment. Contractor shall pay any liquidated
damages assessed by City within ten (10) days after they are
assessed. If they are not paid within the ten (10) day period,
City may proceed against the performance bond required by
this Agreement or order the termination of this Agreement,
or both pursuant to the terms of this Agreement.¶
Page 738 of 984
47
Deleted: <object>
The party claiming excuse from performance shall, within two (2) days after such party has notice of
such cause, give the other party notice of the facts constituting such cause and asserting its claim to
excuse under this Section.
The interruption or discontinuance of Contractor's services caused by one or more of the events
excused shall not constitute a default by Contractor under this Agreement Notwithstanding the
foregoing, however, if Contractor is excused from performing its obligations hereunder for any of the
causes listed in this Section for a period of seven (7) days or more, City shall have the right to review
the circumstances under which the excuse from performance was granted. After such review, if the
City determines the excuse from service is no longer valid, the City shall notify the Contractor in
writing to resume service within two (2) days from the receipt of such notification. If the Contractor
fails to resume service within the two (2) days, the City shall have the right to terminate this
Agreement by giving ten (10) days notice, in which case the provisions relative to taking possession
of Contractor's land, equipment and other property and engaging Contractor's personnel in Article 11,
City's Right to Perform Services, and this Article 12 shall apply.
12.5 Financial Material Errors, Omissions or Irregularities
The City may review, test and audit the books and records of the Contractor for the purpose of
determining whether the contractor is complying with the terms of the Agreement. In the event that
material errors or omissions or irregularities are identified, and then the cost associated with the audit,
test or review shall be paid by the Contractor to the City. In the case of financial errors, materiality
shall be deemed to be two percent (2%) or greater of the gross revenues of the Contractor from
activities performed under this agreement. Recovery of any overpayment will be negotiated on a case
by case basis, either immediately or through the next rate setting evaluation.
Deleted:
Deleted: ¶
Deleted: ¶
¶
Deleted: ¶
¶
Deleted: ¶
¶
Page 739 of 984
48
Deleted: <object>
ARTICLE 13.
OTHER AGREEMENTS OF THE PARTIES
13.1 Relationship of Parties
The parties intend that Contractor shall perform the services required by this Agreement as an
independent Contractor engaged by City and not as an officer or employee of City nor as a partner of
or joint venture with City. No employee or agent or Contractor shall be or shall be deemed to be an
employee or agent of City. Except as expressly provided herein, Contractor shall have the exclusive
control over the manner and means of conducting the Green Waste services performed under this
Agreement, and all Persons performing such services.
Contractor shall be solely responsible for the acts and omissions of its officers, employees,
subcontractors and agents. Neither Contractor nor its officers, employees, subcontractors and agents
shall obtain any rights to retirement benefits, workers compensation benefits, or any other benefits
which accrue to City employees by virtue of their employment with City.
13.2 Compliance with law
In providing the services required under this Agreement, Contractor shall at all times, at its sole cost,
comply with all applicable laws of the United States, the State of California, City, and with all
applicable regulations promulgated by federal, state, regional or local administrative and regulatory
agencies, now in force and as they may be enacted, issued or amended during the Term.
13.3 Governing Law
This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the
State of California.
13.4 Jurisdiction
Any lawsuits between the parties arising out of this Agreement shall be brought and concluded in the
courts of the State of California, which shall have exclusive jurisdiction over such lawsuits.
13.5 Assignment
Except as may be provided for in Article 11, (City's Right to Perform Service), neither party shall
assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement
to any other Person without the prior written consent of the other party. Any such assignment made
without the consent of the other party shall be void and the attempted assignment shall constitute a
material breach of this Agreement. The Contractor shall consent to any assignment to a joint powers
authority, or any similar public entity assignee of the City.
For purposes of this Section when used in reference to Contractor, "assignment" shall include, but not
be limited to (1) a sale, exchange or other transfer of at least fifty-one percent (51%) all of
Contractor's assets dedicated to service under this Agreement to a third party; (2) a sale, exchange or
other transfer of outstanding common stock of Contractor to a third party provided said sale,
exchange or transfer may result in a change of control of Contractor; (3) any dissolution,
reorganization, consolidation, merger, re-capitalization, stock issuance or re- issuance, voting trust,
pooling agreement, escrow arrangement, liquidation or other transaction to which results in a change
of ownership or control of Contractor; (4) any assignment by operation of law, including insolvency
or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution
being levied against this Agreement, appointment of a receiver taking possession of Contractor's
property, or transfer occurring in the event of a probate proceeding; and (5) any combination of the
foregoing (whether or not in related or contemporaneous transactions) which has the effect of any
such transfer or change of ownership, or change of control of Contractor.
Page 740 of 984
49
Deleted: <object>
Contractor acknowledges that this Agreement involves rendering a vital service to City's residents,
and that City has selected Contractor to perform the services specified herein based on (1)
Contractor's experience, skill and reputation for conducting its Solid Waste management operations in
a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws,
regulations and best waste management practices, and (2) Contractor's financial resources to maintain
the required equipment and to support its indemnity obligations to City under this Agreement. City
has relied on each of these factors, among others, in choosing Contractor to perform the services to be
rendered by Contractor under this Agreement.
If Contractor requests City's consideration of and consent to an assignment, City may deny or approve
such request in its complete discretion. The City is concerned about the possibility that assignment
could result in significant rate increases, as well as a change in the quality of service. Accordingly,
the following standards have been set to ensure that assignment will result in continued quality
service. In addition, the City reserves the right to solicit competitive bids for these services if the
assignment results in a request by the assignee for rate increases that are higher than the inflationary
index and do not reflect value changes in service standards. At a minimum, no request by Contractor
for consent to an assignment need be considered by City unless and until Contractor has met the
following requirements:
A. Contractor shall undertake to pay City its reasonable expenses for attorney's fees and
investigation costs necessary to investigate the suitability of any proposed assignee, and to review
and finalize any documentation required as a condition for approving any such assignment;
B. Contractor shall furnish City with audited financial statements of the proposed assignee's
operations for the immediately preceding three (3) operating years;
C. Contractor shall furnish City with satisfactory proof: 1) that the proposed assignee has at least ten
(10) years of Green Waste management experience on a scale equal to or exceeding the scale of
operations conducted by Contractor under this Agreement; 2) that in the last five (5) years, the
proposed assignee has not suffered any significant citations or other censure from any federal,
state or local agency having jurisdiction over its Solid Waste management operations due to any
significant failure to comply with state, federal or local Environmental Laws and that the assignee
has provided City with a complete list of such citations and censures; 3) that the proposed
assignee has at all times conducted its operations in an environmentally safe and conscientious
fashion;4) that the proposed assignee conducts its Green Waste management practices in
accordance with sound waste management practices in full compliance with all federal, state and
local laws regulating the collection, transportation, processing, marketing and disposal of Solid
Waste including Hazardous Wastes; and, 5) of any other information required by City to ensure
the proposed assignee can fulfill the Terms of this Agreement in a timely safe and effective
manner.
Under no circumstances shall the City be obliged to consider any proposed assignment by City if
Contractor is in default at any time during the period of consideration.
13.6 Subcontracting
Except as approved in writing by the City, Contractor shall not enter into an agreement to have
another Person perform Contractor's duties of this Agreement. Contractor shall undertake to pay City
its reasonable expenses for attorney's fees and investigation costs necessary to investigate the
suitability of any proposed subcontractor, and lo review and finalize any documentation required as a
condition for approving any such subcontracting agreement.
Deleted: ¶
Deleted: ¶
<#>¶
C
Deleted: ¶
Page 741 of 984
50
Deleted: <object>
13.7 Binding on Assigns
The provisions of this Agreement shall inure to the benefit to and be binding on the permitted assigns
of the parties.
13.8 Transition to Next Contractor
If the transition of services to another Contractor occurs through expiration of term, default and
termination, or otherwise, Contractor will cooperate with City and subsequent Contractor(s) to assist
in an orderly transition which will include Contractor providing route lists and billing information.
Contractor will not be obliged to sell collection vehicles or Containers to the next Contractor.
Depending on Contractor’s circumstances at the point of transition, Contractor at its option may enter
into negotiations with the next Contractor to sell (in part or all) Collection vehicles and/or containers.
13.9 Parties in Interest
Nothing in the Agreement, whether express or implied, is intended to confer any rights on any
persons other than the parties to it and their representatives, successors and permitted assigns.
13.10 Waiver
The waiver by either party of any breach or violation of any provisions of this Agreement shall not be
deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach
of violation of the same or any other provision. The subsequent acceptance by either party of any
monies which become due hereunder shall not be deemed to be a waiver of any pre-existing or
concurrent breach or violation by the other party of any provision of this Agreement.
13.11 Contractor's Investigation
Contractor has relied on its own investigations, and not on any representations of the City or its
agents of the conditions and circumstances surrounding the Agreement and the work to be performed
by it.
13.12 Notice
All notices, demands, requests, proposals, approvals, consents and other communications which this
Agreement requires, authorizes or contemplates shall be in writing and shall either be personally
delivered to a representative of the parties at the address below or be deposited in the United States
mail, first class postage prepaid, addressed as follows:
If to City: Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo, CA 93401
If to Contractor: ________________
San Luis Garbage Company
4388 Old Santa Fe Springs Road
San Luis Obispo, CA 93401
The address to which communications may be delivered may be changed from time to time by a
notice given in accordance with this Section. The notice, if mailed, is deemed served three
(3) days after the mailing.
13.13 Representatives of the Parties
References in this Agreement to the "City" shall mean the City Council and all actions to be taken by
City shall be taken by the City Council except as provided below. The City Council may delegate, in
Deleted: Mike Dean
Page 742 of 984
51
Deleted: <object>
writing, authority to the City Manager, Utilities Director, and/or to the City employees and may
permit such employees, in turn, to delegate in writing some or all of such authority to subordinate
employees. Contractor may rely upon actions taken by such delegates if they are within the scope of
the authority properly delegated to them.
Contractor shall, by the Effective Date, designate in writing a responsible officer who shall serve as
the representative of Contractor in all matters related to the Agreement and shall inform City in
writing of such designation and of any limitations upon their authority to bind Contractor. City may
rely upon action taken by such designated representative as actions of Contractor unless they are
outside the scope of the authority delegated to them by Contractor as communicated to City.
13.14 City Free to Negotiate with Third Parties
City may investigate all options for the Collection and processing of Food and Green Waste after the
expiration of the Term. Without limiting generality of the foregoing, City may solicit proposals from
Contractor and from third parties for the provision of Food and Green Waste services, and any
combination thereof, and may negotiate and execute Agreements for such services which will take
effect upon the expiration or earlier termination under Section 12.1 (Events of Default) of this
Agreement.
13.15 Compliance with City Code
Contractor shall comply with those provisions of the City code which arc applicable, and with any
and all amendments to such applicable provisions during the Term of this Agreement.
13.16 Privacy
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 contractor, 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.
Deleted: ¶
Deleted: effective date
Deleted: his or her
Deleted: him/her
Deleted: ¶
Page 743 of 984
52
Deleted: <object>
ARTICLE 14.
MISCELLANEOUS AGREEMENTS
14.1 Entire Agreement
This Agreement, including the exhibits, represents the full and entire Agreement between the parties
with respect to the matters covered herein.
14.2 Section Headings
The article headings and section headings in this Agreement are for convenience of reference only
and arc not intended to be used in the construction of this Agreement nor to alter or affect any of its
provisions.
14.3 References to laws and Other Agreements
All references in this Agreement to laws shall be understood to include such laws as they may be
subsequently amended or recodified, unless otherwise specifically provided. This Agreement
supersedes any and all Agreements for Food and Green Waste Collection, processing and/or
marketing heretofore entered into by the parties and the City.
14.4 Interpretation
This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably
and neither for nor against either party, regardless of the degree to which either party participated in
its drafting.
14.5 Agreement
This Agreement may not be modified or amended in any respect except by a writing signed by the
parties.
14.6 Severability
If any non-material provision of this Agreement is for any reason deemed to be invalid and
unenforceable, the invalidity or unenforceability of such provision shall not affect any of the
remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable
provision had not been contained herein.
Page 744 of 984
53
Deleted: <object>
EXHIBIT A
A. Exhibit A – Recordkeeping and Reporting is hereby incorporated into the Agreement, as attached to
this Amendment.
EXHIBIT A
RECORD KEEPING AND REPORTING
A.1 General
Contractor shall maintain such accounting, statistical, and other records related to its performance
under this Agreement as shall be necessary to develop the reports required by this Agreement or City
Municipal Code. Contractor agrees to conduct data collection, information and record keeping, and
reporting activities needed to comply with Applicable Laws and regulations and to meet the reporting
and Discarded Materials Collection, Processing, and Disposal program management needs of the
City. At the written direction or approval of City, the records and reports to be maintained and
provided by Contractor in accordance with this Exhibit and other Articles of the Agreement may be
adjusted in number, format, and frequency, if required to comply with State or Federal regulatory or
reporting requirements.
Information from Contractor’s records and reports can be used to, among other things:
Determine and set Rates and evaluate the financial efficacy of operations;
Evaluate past and expected progress toward achieving the Contractor’s Landfill Disposal reduction or
Diversion goals and objectives;
Provide concise and comprehensive program information and metrics for use in fulfilling reporting
requirements under Applicable Law;
Determine needs for adjustment to programs;
Evaluate Customer service and Complaints; and,
Determine Customer compliance with AB 341, AB 1826, and SB 1383 statutes and corresponding
regulations; and, any subsequent State-mandated landfill Disposal reduction, Recycling, recovery, or
Diversion statutes, regulations, or other requirements.
A.2 Record Keeping
A. General. Contractor shall maintain Customer contact data, Customer service, accounting, statistical,
operational, and other records related to its performance as shall be necessary to provide reporting
required by this Agreement and Applicable Law and to demonstrate compliance with this Agreement
and Applicable Law (such as, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, and
SB 1383 statutes and corresponding regulations).
Record keeping and reporting requirements specified in this Agreement shall not be considered a
comprehensive list of reporting requirements. In particular, this Exhibit is intended to highlight the
general nature of records and reports and their minimum content and is not meant to comprehensively
define the scope and content of the records and reports that Contractor is required to maintain and
report by Applicable Law or this Agreement. Upon written direction or approval of City, the records
and reports required by Contractor in accordance with this and other Articles of the Agreement shall
be adjusted in number, format, or frequency.
Contractor shall maintain adequate records, and corresponding documentation, of information
required by this Exhibit, such that the Contractor is able to produce accurate monthly and annual
reports and is able to provide records to verify such reports. Contractor will make these records
available and provide to the City any record or documentation necessary for the City to fulfill
obligations under Applicable Law including, but not limited to, AB 939, AB 341, AB 1826, AB 876,
AB 901, and SB 1383 statutes and corresponding regulations; and, other current or future Federal,
State, or local statutes and regulations, as amended. Upon request by the City, Contractor shall
Deleted: ¶
¶
Deleted: A.
Deleted: Record Keeping and Reporting
Deleted: A.
Page 745 of 984
54
Deleted: <object>
provide access to Contractor’s requested records in a timely manner, not to exceed ten (10) Business
Days from the time of City’s request to Contractor.
B. Record Retention and Security. Records shall be maintained in forms and by methods that facilitate
flexible use of data contained in them to structure reports, as needed, pursuant to this Exhibit.
Contractor’s records shall be stored in one central location, physical or electronic, that can be readily
accessed by Contractor. City reserves the right to require the Contractor to maintain the records
required herein through the use of a City-selected web-based software platform, at Contractor’s
expense. Unless otherwise required in this Exhibit, Contractor shall retain all records and data
required to be maintained by this Agreement for the Term of this Agreement plus five (5) years after
its expiration or earlier termination.
Records and data shall be in chronological and organized form and readily and easily interpreted.
Contractor shall maintain adequate record security to preserve records from events that can be
reasonably anticipated such as a fire, theft, and an earthquake. Electronically-maintained data and
records shall be protected and backed-up. To the extent that Contractor utilizes its computer systems
to comply with record keeping and reporting requirements under this Agreement, Contractor shall, on
a monthly basis, save all system-generated reports supporting those record keeping and reporting
requirements in a static format in order to provide an audit trail for all data required.
C. Compilation of Information for State Law Purposes. Contractor shall maintain accurate records
for its operation, including, but not limited to, Discarded Materials quantities Collected and quantities
Transported to or Transferred to each Approved Facility, listed separately by material type, Customer
type, and Facility. Records shall be maintained in such form by methods that facilitate the use of data
for the production of reports as needed. Contractor will make these records available and provide to
the City, any record or documentation necessary for the City to fulfill obligations under Applicable
Law including, but not limited to, AB 939, AB 341, AB 1826, AB 876, AB 901, AB 1595, and SB
1383 statutes and corresponding regulations; and, other current or future local, Federal or State
statutes and regulations, as amended.
A.3 Reporting
A.3.1 General
A. General Purpose. Reports are intended to compile recorded data into useful forms of information
that can be used by the City. All reports shall be adequate to meet City’s current and future reporting
requirements to CalRecycle, including AB 939, AB 341, AB 1826, and SB 1383 statutes and
corresponding regulations, or any other State or Federal agency statutes and regulations throughout
the Term of this Agreement.
B. Failure to Report. Failure of Contractor to comply with the reporting requirements as set forth in this
Section may result in an assessment of Liquidated Damages in accordance with the Liquidated
Damages provision in Section 12.3 of this Agreement. Contractor’s repeated failure to submit reports,
and/or failure to submit reports on time, may be deemed an event of default and may result in the
termination of the Agreement at the discretion of the City Manager, in accordance with Article 12 of
this Agreement.
C. Report Format. Contractor shall submit all reports to the City electronically via e-mail using
software acceptable to the City. The City reserves the right to require the Contractor to maintain
records and submit the reports required herein through use of the City-selected web-based software
platform and/or Microsoft Excel spreadsheet, at the Contractor’s expense.
D. Submittal Process. Reports shall be submitted to the Utilities Director per Section 9.2 of the
Organic Materials Services Agreement. Reports shall be submitted electronically via email or
Deleted: B.
Deleted: C.
Deleted:
Deleted: A.
Deleted: B.
Deleted: C.
Deleted: ¶
Page 746 of 984
55
Deleted: <object>
uploaded to a document sharing platform agreed upon by the Parties. City reserves the right to require
the Contractor to maintain records and submit the reports required herein through use of a City-
selected web-based software platform, at the Contractor’s expense.
Monthly reports shall be submitted within twenty (20) calendar days after the end of the reporting
month; and annual reports shall be submitted before June 30th, for the previous reporting year.
A.3.2 Monthly Reports
Monthly reports shall be submitted by Contractor to City and shall include the following information
pertaining to the most recently completed calendar month. In addition, each monthly report shall
include a year-to-date summary page that includes the data submitted from the monthly report(s)
submitted in the calendar year prior to the submittal of the current monthly report. Contractor shall
report the information included in the following subsections.
A. Tonnage Report
1. Contractor shall report the total quantities in Tons of Discarded Materials Collected,
Transferred, Processed, and Disposed by the Contractor, all of which shall be based on actual
certified scale weights for each load, if available, or similarly accurate methodology pursuant
to weighing protocol. Tonnage shall be reported separately by:
a. Material type, which shall include, at a minimum, separate reporting of Source Separated
Organic Materials and any other type of Discarded Material separately Collected by
Contractor;
b. Customer/sector type (Single-Family, Multi-family, Commercial, Roll-off, C&D); and,
c. Approved Facility and Facility type.
2. Report Residue level and Tonnage for all Discarded Materials Processed, listed separately by
material type Collected and Approved Facility(ies) used.
3. Source Separated Recyclable Materials Tonnage Marketed, by commodity, and including
average commodity value for each, and Processing Residue Tonnage Disposed, listed
separately by material type Collected and Approved Facility(ies) used.
4. Documentation of all Discarded Materials exported out of State, as provided in 14 CCR
Sections 18800 through 18813.
B. Collection and Subscription Report
1. Number of Containers at each Service Level by Customer Type and program, including:
a. A summary of the total gallons of Cart service, cubic yards of Bin service, and pulls;
and cubic yards or Tons of Drop Box and Compactor service by Customer Type.
b. Calculation of the average volume of service received per: Single-Family Dwelling Unit
(separately identifying Dwelling Units in a duplex, triplex, or fourplex); Multi-Family
Dwelling Unit; and Commercial Customer.
2. A summary of Customer subscription data, including the number of accounts; the number of
Customers subscribing to each Cart, Bin, and Roll-Off Service Level listed separately for
Single-Family, Multi-Family, and Commercial and separately for each type of Discarded
Material; the number and type of waivers (i.e., de minimis or physical space constraint) active
for Customers for each type of Discarded material; and the number of Bulky Items
Collections performed.
Deleted: September
Page 747 of 984
56
Deleted: <object>
C. Contamination Monitoring Report
The Contractor shall submit the following information regarding Contractor conducted contamination
monitoring and issuance of Prohibited Container Contaminant Notices conducted pursuant to Section 5.4 of
this Agreement:
1. Description of the Contractor’s Process for determining the level of contamination;
2. Summary report of Customer Notices issued, which for each notice shall include the date of
issuance, Customer name, and service address.
3. A record of each inspection and contamination incident, which shall include, at a minimum:
a. Name of the Customer
b. Address of the Customer
c. The date the contaminated Container was observed
d. The staff who conducted the inspection
e. The total number of violations found and a description of what action was taken for each
f. Copies of all notices issued to Generators with Prohibited Container Contaminants
g. Any photographic documentation or supporting evidence.
Any other information reasonably requested by the City or specified in contamination monitoring provisions
of this Agreement.
D. Customer Service Report
1. Contractor shall maintain a record of all SB 1383 non-compliance Complaints as defined in
14 CCR Section 18995.3 and responses and submit the following information:
a. Total number of SB 1383 non-compliance Complaints received and total number of SB
1383 non-compliance Complaints investigated
b. Copies of documentation recorded for each SB 1383 non-compliance Complaint
received, which shall at a minimum include the following information:
i. The SB 1383 non-compliance Complaint as received;
ii. The name and contact information of the complainant, if the SB 1383 non-
compliance Complaint is not submitted anonymously;
iii. The identity of the alleged violator, if known;
iv. A description of the alleged violation; including location(s) and all other relevant
facts known to the complainant;
v. Any relevant photographic or documentary evidence submitted to support the
allegations in the SB 1383 non-compliance Complaint; and,
vi. The identity of any witnesses, if known.
c. Copies of all SB 1383 non-compliance Complaint reports submitted by Contractor to the
City.
d. Copies of all investigation reports submitted to the City which shall include at a
minimum:
i. The SB 1383 non-compliance Complaint as received;
ii. The date the Contractor investigated the SB 1383 non-compliance Complaint;
iii. Documentation of the findings of the investigation;
iv. Any photographic or other evidence collected during the investigation; and,
v. Contractor’s recommendation to the City on whether or not the entity
investigated is in violation of SB 1383 Regulations based on the Contractor’s
investigation.
Page 748 of 984
57
Deleted: <object>
H. Compliance Monitoring and Enforcement Report
1. A summary of the total number of SB 1383 Regulatory non-compliance Complaints that were
received and forwarded to the City or their designee.
2. The total number of contamination notices issued, categorized by type of Generator.
3. Copies of all Prohibited Container Contaminant Courtesy Pick-Up and Non-Collection
Notices issued and educational materials issued to non-compliant Generators.
I. Public Education and Outreach Report
1. A copy of all education and outreach materials provided to Generators, or otherwise used for
education and outreach efforts in accordance with this Agreement, including, but not limited
to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social
media postings.
2. A record of the date and to whom the information was disseminated or direct contact made, in
the form of a list that includes: the Generator’s name or account name, the type of education
or outreach received; the distribution date, and the method of distribution.
3. For any mass distribution through mailings or bill inserts, the Contractor shall maintain a
record of the date, a copy of the information distributed, and the type and number of accounts
that received the information.
4. A copy of electronic media, including the dates posted of: social media posts, e-mail
communications, or other electronic messages.
5. A summary of the status of the annual education plan of the reporting year, including
activities conducted and the quantitative and/or qualitative results of those activities.
6. The annual public education plan required by Section 6.5 of the Agreement for the upcoming
then-current calendar year. For example, Contractor submittal of a 2022 annual report in
February 2023 shall include Contractor submittal of the annual public education plan for
calendar year 2023.
A.3.4 Additional Reports
A. Upon Request Reporting. City reserves the right to request additional reports or documents in the case
of unforeseen legislative or regulatory changes, requests from CalRecycle, or additional requirements
imposed upon the City. The Contractor shall provide the requested reports, documents, or information within
ten (10) Business Days upon receipt of the request or within a timeframe determined by the City Manager,
which shall not to exceed ten (10) days.
B. Facility Capacity Planning Information. To the extent such information is available to Contractor, City
may require Contractor to provide City with information of available Organic Waste Processing capacity for
any Approved Processing Facilities, where available capacity may include identification of monthly Tons of
additional Organic Waste such Approved Facilities have the ability to receive within permitted limits.
Contractor shall respond to City within sixty (60) days of City’s request for information regarding available
new or expanded capacity, to the extent such information is available to Contractor and, at City’s option, may
be required to submit reports on a more regular basis (such as monthly, quarterly, or annually). If Contractor
uses a Subcontractor to perform some or all of the Facility-related services required by this Agreement,
Contractor shall use commercially reasonable efforts to secure any City-requested Facility capacity planning
information from its Subcontractor(s). The annual Facility capacity planning report shall comply with the
following:
1. Include reports of current throughput and permitted capacity and available capacity for
Organic Materials Processing for any Facility in the City that Processes Organic Materials.
Existing capacity may include identification of monthly Tons of additional Source Separated
Recyclable Materials, Source Separated Organic Materials, and/or Solid Waste capacity such
Facility has the ability to receive within permitted limits.
2. Include description of potential new or expanded Processing capacity at those Facilities,
Page 749 of 984
58
Deleted: <object>
operations, and activities for Processing of Organic Materials, including information about
throughput and permitted capacity necessary for planning purposes.
3. Be submitted using a form or format approved by the City Manager.
IN WITNESS WHEREOF, City and Franchisee have executed this Agreement as of the day and year first above
written.
The City of San Luis Obispo San Luis Garbage Company
“City” “Franchisee”
By: ___________________________ By: _______________________________
City Manager Name:
Title:
Attest:
City Clerk
Approved to Form:
________________________________
City Attorney
Deleted: Section Break (Next Page)
Deleted: Contractor
Page 750 of 984
Ordinance No. 1706 (2021 Series) Page 1
O 1706
ORDINANCE NO 1706 (2021 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 8, CHAPTERS 8.04 AND 8.05
OF THE SAN LUIS OBISPO MUNICIPAL CODE
WHEREAS, State recycling law, Assembly Bill 939 of 1989, the California
Integrated Waste Management Act of 1989 (California Public Resources Code Section
40000, et seq., as amended, supplemented, superseded, and replaced from time to time),
requires cities and counties to reduce, reuse, and recycle (including composting) Solid
Waste generated in their City to the maximum extent feasible before any incineration or
landfill disposal of waste, to conserve water, energy, and other natural resources, and to
protect the environment; and
WHEREAS, State recycling law, Assembly Bill 341 of 2011 (approved by the
Governor of the State of California on October 5, 2011, which amended Sections 41730,
41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections
40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to
Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public
Resources Code, as amended, supplemented, superseded and replaced from time to
time), places requirements on Commercial Businesses and Multi-Family Premises that
generate a specified threshold amount of Solid Waste to arrange for recycling services
and requires jurisdictions to implement a mandatory Commercial recycling program; and
WHEREAS, State Organics Materials recycling law, Assembly Bill 1826 of 2014
approved by the Governor of the State of California on September 28, 2014, which added
Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public
Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and
replaced from time to time), requires Commercial Businesses and Multi-Family Premises
that generate a specified threshold amount of Solid Waste, Recyclable Materials, and
Organic Materials per week to arrange for recycling services for that waste, requires
jurisdictions to implement a recycling program to divert Organic Materials from
Commercial Businesses and Multi-Family Premises subject to the law, and requires
jurisdictions to implement a mandatory Commercial Organic Materials recycling program;
and
WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016,
requires CalRecycle to develop regulations to reduce Organic Waste in landfills as a
source of methane. The regulations place requirements on multiple entities including
jurisdictions, residential households, Multi-Family Premises, Commercial Businesses,
Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery
Organizations, and Food Recovery Services to support achievement of the SB 1383
statewide Organic Waste disposal reduction targets; and
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 751 of 984
Ordinance No. 1706 (2021 Series) Page 2
O 1706
WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016,
requires jurisdictions to adopt and enforce an ordinance or enforceable mechanism to
implement relevant provisions of SB 1383 Regulations. This ordinance will also help
reduce food insecurity by requiring Commercial Edible Food Generators to arrange to
have the maximum amount of their Edible Food, that would otherwise be disposed, be
recovered for human consumption.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1: Environmental Review. The proposed ordinance is exempt per
California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), the
Common Sense” exemption because the proposed action consists only of the adoption
of new standards and will have no physical effects on the environment and has no
possibility of a significant effect on the environment.
SECTION 2: Chapter 8.04 (Solid Waste Disposal) of the San Luis Obispo
Municipal Code is hereby amended as follows:
8.04 Solid Waste, Recycling, and Organic Waste
Sections:
8.04.010 Definitions.
8.04.020 Accumulation—Type and placement of containers.
8.04.030 Transportation.
8.04.040 Collection required at least once a week.
8.04.050 Health officer and city engineer to direct removal.
8.04.060 Disposal site.
8.04.070 Use of disposal service mandatory—Collection of charges.
8.04.080 Collection rates.
8.04.090 Condition of collection trucks.
8.04.100 Refuse—Burning or burying.
8.04.110 Emergency removal.
8.04.120 Disposal by producer.
8.04.130 Certain hauling prohibited.
8.04.140 Health regulations—Establishment.
8.04.150 Franchise for collection—Authorization.
8.04.160 Placement of receptacles for pickup—Disputes settlement.
8.04.170 Dumping on private or public premises prohibited.
8.04.180 Owners responsibility to maintain premises free of debris and waste matter.
8.04.190 Placing of handbills or advertising matter in or upon vehicles.
8.04.200 Storage of certain vehicles prohibited.
8.04.210 Clearing of waste matter, debris and vehicles from private property.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 752 of 984
Ordinance No. 1706 (2021 Series) Page 3
O 1706
8.04.211 Mandatory organic waste disposal requirements for single-family premises.
8.04.212 Mandatory organic waste disposal requirements for multi-family residential
dwellings.
8.04.213 Mandatory organic waste disposal requirements for commercial businesses.
8.04.214 Organic waste and/or organics collection waivers for multi-family premises
and commercial premises.
8.04.215 Requirements for commercial edible food generators.
8.04.216 Requirements for food recovery organizations and services.
8.04.217 Requirements for haulers and facility operators.
8.04.218 Recyclable and organic materials self-hauling requirements.
8.04.219 Inspections and investigations.
8.04.220 Enforcement.
8.04.230 Violation – Penalty.
SECTION 3: Chapter 8.04.010 (Definitions) of the San Luis Obispo Municipal
Code is hereby amended as follows:
Alternative Daily Cover (ADC)” has the same meaning as in Section 20690 of Title 27 of
the California Code of Regulations.
Alternative Intermediate Cover (AIC)” has the same meaning as in Section 20700 of Title
27 of the California Code of Regulations.
Bin” means a container with capacity of approximately one (1) to eight (8) cubic yards,
with a hinged lid, and with wheels (where appropriate), that is serviced by a front end-
loading collection vehicle, including bins with compactors attached to increase the
capacity of the bin.
C&D (debris)” or “Construction and demolition debris” means building materials and solid
waste resulting from construction, remodeling, repair, cleanup, or demolition operations
that are not hazardous as defined in California Code of Regulations, Title 22 section
66261.3 et seq. This term includes, but is not limited to, asphalt, concrete, brick, gypsum
wallboard, cardboard, and other associated packaging, roofing material, ceramic tile,
carpeting, plastic pipe and steel.
CalRecycle” means California's Department of Resources Recycling and Recovery,
which is the Department designated with responsibility for developing, implementing, and
enforcing SB 1383 Regulations on jurisdictions (and others).
Cart” means a plastic container with a hinged lid and wheels that is serviced by an
automated or semi-automated collection vehicle. A cart has capacity of 20, 35, 64 or 96
gallons (or similar volumes). “City disposal site” means and refers to that certain tract of
land which the franchisee shall furnish and use as a place of depositing garbage, rubbish
and C&D.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 753 of 984
Ordinance No. 1706 (2021 Series) Page 4
O 1706
Container(s)” mean bins, carts, compactors, and roll-offs.
Contractor” means a corporation organized and operating under the laws of the State
and its officers, directors, employees, agents, companies, related-parties, affiliates,
subsidiaries, and subcontractors.
Compactor” means a mechanical apparatus that compresses materials together with the
container that holds the compressed materials or the container that holds the compressed
materials if it is detached from the mechanical compaction apparatus. Compactors
include two (2) to eight (8) cubic yard bin compactors serviced by front-end loader
collection vehicles and ten (10) to fifty (50) cubic yard drop box compactors serviced by
roll-off collection vehicles.
Commercial Business” or “Commercial” means a firm, partnership, proprietorship, joint-
stock company, corporation, or association, whether for-profit or nonprofit, strip mall, or
industrial facility.
Commercial Edible Food Generator” includes a tier one or a tier two commercial edible
food generator as defined in 14 CCR Section 18982(a)(73) and (a)(74). For the purposes
of this definition, food recovery organizations and food recovery services are not
commercial edible food generators pursuant to 14 CCR Section 18982(a)(7).
Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), (or any variation
thereof) includes a controlled biological decomposition of organic materials yielding a safe
and nuisance free compost product.
Creek” means a natural stream of water normally smaller than and often tributary to a
river. May be seasonal in that it is dry during certain times of the year.
Customer” means the person whom contractor submits its billing invoice to and collects
payment from for collection services provided to a premises. The customer may be either
the occupant or owner of the premises.
Designee” means an entity that the city contracts with or otherwise arranges to carry out
any of the city’s responsibilities of this chapter as authorized in 14 CCR Section 18981.2.
A designee may be a government entity, a hauler, a private entity, or a combination of
those entities.
Developed Property” means any property which has been altered from its natural state
by the construction or erection of materials located in, upon, or attached to something
located in or upon the ground.
Discarded Materials” means recyclable materials, organic materials, and solid waste
placed by a generator in a collection container and/or at a location for the purposes of
collection excluding excluded waste.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 754 of 984
Ordinance No. 1706 (2021 Series) Page 5
O 1706
Drainageway” means a route or course along which water moves or may move to drain
a region. These are generally manmade as compared to “creeks”.
Edible Food” means food intended for human consumption, or as otherwise defined in
14 CCR Section 18982(a)(18). For the purposes of this chapter or as otherwise defined
in 14 CCR Section 18982(a)(18), “edible food” is not solid waste if it is recovered and not
discarded. Nothing in this chapter or in 14 CCR, Division 7, Chapter 12 requires or
authorizes the recovery of edible food that does not meet the food safety requirements of
the California Health and Safety Code, including the California Retail Food Code.
Enforcement Action" means an action of the city to address non-compliance with this
chapter including, but not limited to, issuing administrative citations, fines, penalties, or
using other remedies.
Food Recovery” means actions to collect and distribute food for human consumption that
otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
Food Recovery Organization” means an entity that engages in the collection or receipt
of edible food from commercial edible food generators and distributes that edible food to
the public for food recovery either directly or through other entities or as otherwise defined
in 14 CCR Section 18982(a)(25), including, but not limited to:
1) A food bank as defined in Section 113783 of the Health and Safety Code;
2) A nonprofit charitable organization as defined in Section 113841 of the Health
and Safety code; and,
3) A nonprofit charitable temporary food facility as defined in Section 113842 of
the Health and Safety Code.
Food Recovery Service” means a person or entity that collects and transports edible food
from a commercial edible food generator to a food recovery organization or other entities
for food recovery, or as otherwise defined in 14 CCR Section 18982(a)(26). A food
recovery service is not a commercial edible food generator for the purposes of this
chapter and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR
Section 18982(a)(7).
Food Waste” means source separated food scraps and food-soiled paper.
Franchisee” means and includes a person whom the city has granted the privilege of
collecting and disposing of refuse, garbage, rubbish, and other solid waste produced
within the limits of the city under the terms set out in this chapter, and under the provisions
of the Charter of the city, as amended.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 755 of 984
Ordinance No. 1706 (2021 Series) Page 6
O 1706
Garbage” means and includes kitchen and table refuse, offal, swill and also every
accumulation of animal and vegetable refuse, and other matter that attends the
preparation, consumption, decay or dealing in or storage of meats, fish, fowl, birds, fruits
or vegetables. It shall also include crockery, bottles, tin vessels, fireplace ashes and all
or any refuse, save and excepting as defined in this section as rubbish or C&D.
Generator” means a person or entity that is responsible for the initial creation of one or
more types of discarded materials.
Grocery Store” means a store primarily engaged in the retail sale of canned food; dry
goods; fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not
separately owned within the store where the food is prepared and served, including a
bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR
Section 18982(a)(30).
Hazardous Waste” means all substances defined as hazardous waste, acutely
hazardous waste, or extremely hazardous waste by the State in Health and Safety Code
25110.02, §25115, and §25117 or in the future amendments to or recodifications of such
statutes or identified and listed as solar panels from residential premises, and hazardous
waste by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal
Resource Conservation and Recovery Act (42 USC §6901 et seq.), all future
amendments thereto, and all rules and regulations promulgated thereunder.
High Diversion Organic Waste Processing Facility” means a facility that is in compliance
with the reporting requirements of 14 CCR Section 18815.5(d) and meets or exceeds an
annual average mixed waste organic content recovery rate of 50 percent between
January 1, 2022 and December 31, 2024, and 75 percent after January 1, 2025, as
calculated pursuant to 14 CCR Section 18815.5(e) for organic waste received from the
mixed waste organic collection stream” as defined in 14 CCR Section 17402(a)(11.5);
or, as otherwise defined in 14 CCR Section 18982(a)(33).
Incinerator” means and includes fireproof receptacles approved by the city engineer or
fire chief, and used for disposing of combustible rubbish on private premises.
Inspection” means a site visit where a city reviews records, containers, and an entity’s
collection, handling, recycling, or landfill disposal of recyclable materials, organic waste,
solid waste or edible food handling to determine if the entity is complying with
requirements set forth in this chapter, or as otherwise defined in 14 CCR Section
18982(a)(35).
Lake” means a considerable inland body of standing water, an expanded part of a river,
a reservoir formed by a dam, or a lake basin intermittently or formerly covered by water.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 756 of 984
Ordinance No. 1706 (2021 Series) Page 7
O 1706
Large Event” means an event, including, but not limited to, a sporting event or a flea
market, that charges an admission price, or is operated by a local agency, and serves an
average of more than 2,000 individuals per day of operation of the event, at a location
that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot,
golf course, street system, or other open space when being used for an event. If the
definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14
CCR Section 18982(a)(38) shall apply to this chapter.
Large Venue” means a permanent venue facility that annually seats or serves an
average of more than 2,000 individuals within the grounds of the facility per day of
operation of the venue facility. For purposes of this chapter and implementation of 14
CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public,
nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement
park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing
arts center, fairground, museum, theater, or other public attraction facility. For purposes
of this chapter and implementation of 14 CCR, Division 7, Chapter 12, a site under
common ownership or control that includes more than one Large Venue that is contiguous
with other large venues in the site, is a single large venue. If the definition in 14 CCR
Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section
18982(a)(39) shall apply to this chapter.
Multi-Family Residential Dwelling” or “Multi-Family” or “MFD” means of, from, or
pertaining to residential Premises with five (5) or more dwelling units including such
premises when combined in the same building with commercial establishments, that
receive centralized, shared, collection service for all units on the premises which are billed
to one ( 1) customer at one (1) address. Customers residing in townhouses, mobile
homes, condominiums, or other structures with five (5) or more dwelling units who receive
individual service and are billed separately shall not be considered multi-family. Multi-
Family Premises do not include hotels, motels, or other transient occupancy facilities,
which are considered commercial businesses.
Occupant” means the person who occupies a premises.
Organic Materials” means yard trimmings and food waste, individually or collectively that
are set aside, handled, packaged, or offered for collection in a manner different from solid
waste for the purpose of processing. No discarded material shall be considered to be
organic materials, however, unless it is separated from recyclable material and solid
waste. organic materials are a subset of organic waste.
Organic Materials Container” shall be used for the purpose of storage and collection of
source separated organic materials.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 757 of 984
Ordinance No. 1706 (2021 Series) Page 8
O 1706
Organic Waste” means wastes containing material originated from living organisms and
their metabolic waste products, including but not limited to food, green material,
landscape and pruning waste, organic textiles and carpets, lumber, wood, paper
products, printing and writing paper, manure, biosolids, digestate, and sludges or as
otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as
defined by 14 CCR Section 18982(a).
Owner” means the person(s) holding legal title to real property and/or any improvements
thereon and shall include the person(s) listed on the latest equalized assessment roll of
the County Assessor.
Premises” means and includes any land, building and/or structure, or portion thereof, in
the city where discarded materials are produced, generated, or accumulated. all
structures on the same legal parcel, which are owned by the same person shall be
considered as one premises.
Prohibited Container Contaminants” means the following: (i) discarded materials placed
in the recyclable materials container that are not identified as acceptable source
separated recyclable materials for the city’s recyclable materials container; (ii) discarded
materials placed in the organic materials container that are not identified as acceptable
source separated organic materials for the city’s organic materials container; (iii)
discarded materials placed in the solid waste container that are acceptable source
separated recyclable materials and/or source separated organic materials to be placed in
city’s organic materials container and/or recyclable materials container; and, (iv) excluded
waste placed in any container.
Recovery” means any activity or process described in 14 CCR Section 18983.1(b), or as
otherwise defined in 14 CCR Section 18982(a)(49).
Recyclable Materials” means those discarded materials that the generators set out in
recyclables containers for collection for the purpose of recycling by the service provider
and that exclude excluded waste. No discarded materials shall be considered recyclable
materials unless such material is separated from organic materials, and solid waste.
recyclable materials shall include, but not be limited to aluminum, newspaper, clear and
colored glass, tin and bi-metal, high density polyethylene (HDPE), polyethylene
terephthalate (PET), cardboard, chipboard, and mixed paper. For the purpose of
collection of recyclable materials through contractor’s collection services, recyclable
materials shall be limited to those materials identified by the collection contractor as
acceptable recyclable materials.
Recyclable Materials Container” shall be used for the purpose of storage and collection
of source separated recyclable materials.
Refuse” means and includes garbage, rubbish or both.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 758 of 984
Ordinance No. 1706 (2021 Series) Page 9
O 1706
Refuse collector” means and includes the same as the term franchisee.
Residential” shall mean of, from, or pertaining to a single-family premises or multi-family
premises including single-family homes, apartments, condominiums, townhouse
complexes, mobile home parks, and cooperative apartments.
Responsible Party” means the owner, property manager, tenant, lessee, occupant, or
other designee that subscribes to and pays for recyclable materials, organic materials,
and/or solid waste collection services for a premises in the city, or, if there is no such
subscriber, the owner or property manager of a single-family premises, multi-family
premises, or commercial premises. In instances of dispute or uncertainty regarding who
is the responsible party for a premises, responsible party shall mean the owner of a single-
family premises, multi-family premises, or commercial premises.
Restaurant” means an establishment primarily engaged in the retail sale of food and
drinks for on-premises or immediate consumption, or as otherwise defined in 14 CCR
Section 18982(a)(64).
Rubbish” means and includes all combustible and noncombustible waste matter,
excepting garbage ordinarily accumulating in and about residences, flats, buildings,
apartment houses, lodging houses, hotels, restaurants, eating houses, stores, shops,
offices and other public buildings. Among other things, it shall include tree trimmings,
grass cuttings, dead plants and weeds, but shall not include C&D.
SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19,
2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and
Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of
Division 30 of the Public Resources Code, establishing methane emissions reduction
targets in a Statewide effort to reduce emissions of short-lived climate pollutants as
amended, supplemented, superseded, and replaced from time to time.
SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to, for the purposes of
this chapter, the Short-Lived Climate Pollutants: Organic Waste Reduction regulations
developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter
12 and amended portions of regulations of 14 CCR and 27 CCR.
Self-Haul” means to act as a self-hauler.
Self-Hauler” means a person, who hauls solid waste, organic waste or recyclable
material they have generated to another person. Self-hauler also includes a landscaper,
or a person who back-hauls waste. back-haul means generating and transporting
recyclable materials or organic waste to a destination owned and operated by the
generator or responsible party using the generator’s or responsible party’s own
employees and equipment.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 759 of 984
Ordinance No. 1706 (2021 Series) Page 10
O 1706
Service Level” refers to the size of a customer’s container and the frequency of collection
service.
Single-Family” or “SFD” refers to any detached or attached house or residence of four
4) units or less designed or used for occupancy by one (1) family, provided that collection
service feasibly can be provided to such premises as an independent unit, and the owner
or occupant of such independent unit is billed directly for the collection service. Single-
family includes townhouses, and each independent unit of duplex, tri-plex, or four-plex
residential structures, regardless of whether each unit is separately billed for their specific
service level.
Solid Waste” has the same meaning as defined in State Public Resources Code Section
40191, which defines solid waste as all putrescible and non-putrescible solid, semisolid,
and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial
wastes, C&D debris, abandoned vehicles and parts thereof, discarded home and
industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not
hazardous waste, manure, vegetable or animal solid and semi-solid wastes, and other
discarded solid and semisolid wastes, with the exception that Solid Waste does not
include any of the following wastes:
1) Hazardous waste, as defined in the State Public Resources Code Section
40141.
2) Radioactive waste regulated pursuant to the State Radiation Control Law
Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of
the State Health and Safety Code).
3) Medical waste regulated pursuant to the State Medical Waste Management
Act (Part 14 (commencing with Section 117600) of Division 104 of the State
Health and Safety Code). Untreated medical waste shall not be disposed of
in a solid waste landfill, as defined in State Public Resources Code Section
40195.1. Medical waste that has been treated and deemed to be Solid
Waste shall be regulated pursuant to Division 30 of the State Public
Resources Code.
4) Recyclable materials, organic materials, and construction and demolition
debris when such materials are source separated.
Solid waste includes salvageable materials only when such materials are included for
collection in a solid waste container not source separated from solid waste at the site of
generation.
Solid Waste Container” shall be used for the purpose of storage and collection of solid
waste.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 760 of 984
Ordinance No. 1706 (2021 Series) Page 11
O 1706
Source Separated” or “Source-Separated (materials)” means materials, including
commingled recyclable materials and organic materials, that have been separated or kept
separate from the solid waste stream, at the point of generation, for the purpose of
additional sorting or processing those materials for recycling or reuse in order to return
them to the economic mainstream in the form of raw material for new, reused, or
reconstituted products, which meet the quality standards necessary to be used in the
marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes
of the chapter, source separated shall include separation of materials by the generator,
responsible party, or responsible party’s employee, into different containers for the
purpose of collection such that source-separated materials are separated from solid
waste for the purposes of collection and processing.
Source Separated Organic Materials” means organic materials that are source separated
and placed in an organic materials container.
Source Separated Recyclable Materials” means recyclable materials that are source
separated and placed in a recyclable materials container.
Tier Two Commercial Edible Food Generator” means a commercial edible food
generator that is one of the following:
1) Restaurant with 250 or more seats, or a total facility size equal to or greater
than 5,000 square feet.
2) Hotel with an on-site food facility and 200 or more rooms.
3) Health facility with an on-site food facility and 100 or more beds.
4) Large venue.
5) Large event.
6) A State agency with a cafeteria with 250 or more seats or total cafeteria facility
size equal to or greater than 5,000 square feet.
7) A local education agency facility with an on-site food facility.
If the definition in 14 CCR Section 18982(a)(74) of tier two commercial edible food
generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall
apply to this chapter.
Ton” or “Tonnage” means a unit of measure for weight equivalent to two thousand (2,000)
standard pounds where each pound contains sixteen (16) ounces.
Waste” means solid waste and source-separated waste.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 761 of 984
Ordinance No. 1706 (2021 Series) Page 12
O 1706
SECTION 4: Section 8.04.020 (Accumulation – Type and placement of containers)
of the San Luis Obispo Municipal Code is hereby amended as follows:
No person shall deposit, keep, accumulate or permit any C&D debris, source separated
materials, or other solid waste to be deposited, kept or accumulated upon any lot or parcel
of land, or on any public or private place, creek, lake or drainageway, street, lane, alley
or drive, unless the same shall be kept, deposited or allowed to accumulate as provided
in this chapter.
A. Waste. No person shall keep, accumulate or permit to be kept or accumulated
any waste upon any lot or parcel of land, or on any public or private place,
street, lane, alley or drive, unless the same shall be in metal or plastic
receptacles provided or approved by the franchisee. The maximum weight of
a receptacle and its contents at collection time shall not exceed seventy-five
pounds. Each receptacle shall be provided with close-fitting metal or plastic lids
or covers which shall be kept closed at all times except when necessarily
opened to permit waste to be taken therefrom or deposited therein. Each
receptacle shall be kept in a clean, neat, sanitary condition at all times. The
outside of each receptacle, including its cover, shall be kept clean from
accumulating grease or decomposing material. Waste shall not be kept in any
creek, lake or drainageway whether it is in a receptacle or not.
B. Location of Waste Containers. Each container provided or approved by the
franchisee shall be kept or placed entirely above ground level at a location
which is convenient for access by collection personnel during the time for
collection, as follows:
1. Where there is an alley, other than a blind alley, in the rear of the premises,
such container shall be placed on the premises within five feet of the rear
property line.
2. Where there is no alley, such container shall be placed on the premises
within twenty feet of the rear of the restaurant, cafe, cafeteria, hospital,
hotel, boardinghouse, and other like eating places, apartment houses, or
dwelling from which waste is accumulated. It may not be placed in any
creek, lake or drainageway.
C. Containers which do not comply with the requirements as stipulated in this
chapter or which deteriorate to the point where they do not comply will be
tagged by the franchisee and, if not replaced by the next regular collection day,
will be considered as waste and will be removed by the franchisee in the same
manner as any other waste.
D. No person shall place, store or otherwise keep any waste container in a
receptacle or pit in an exterior location which is not entirely above ground level.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 762 of 984
Ordinance No. 1706 (2021 Series) Page 13
O 1706
E. Waste containers shall not be placed adjacent to the street for pickup more
than twenty-four hours before pickup time, and such containers shall be
removed within the twelve-hour period following pickup, except in the Business
Improvement Area (as defined in Chapter 12.36). In the Business Improvement
Area, waste containers shall not be placed adjacent to the street for pickup
before 5:00 p.m. or the close of business on the day preceding pickup,
whichever is later. Such containers shall be removed before 10:00 a.m.
following pickup.
F. No person shall place any waste into a waste container without permission of
the owner or tenant of the property on which the container sits. (Ord. 1192 § 1,
1990; Ord. 1176 § 1, 1990; Ord. 1040 (part), 1985; prior code § 5200.1)
SECTION 5: Section 8.04.030 (Transportation) of the San Luis Obispo Municipal
Code is hereby amended as follows:
A. Solid Waste and C&D Debris Transportation. No solid waste or C&D debris
shall be removed and carried on and along the streets and alleys of the city
except that the same be carried, conveyed or hauled in conveyances so
constructed as to be absolutely dustproof, and so arranged as not to permit
dust or other matter to shift through or fall upon the streets and alleys. The
contents of such conveyances must be further protected so as to prevent the
same from being blown upon the streets, alleys and adjacent lands.
B. Wet Waste Transportation. No wet waste shall be removed and carried on or
along any street or alley of the city except the same be transported in watertight
containers with proper covers, so that the waste shall not be offensive and
every such container shall be kept clean and the waste shall be so loaded that
none of it shall fall, drip or spill to or on the ground, sidewalk or pavement. (Prior
code § 5200.2)
SECTION 6: Section 8.04.040 (Collection required at least once a week) of the
San Luis Obispo Municipal Code is hereby amended as follows:
All waste of any kind, shall be removed by the city, its agent, employees, or permittees or
representatives, at least once every seven days, unless otherwise directed by the city
health office or the city engineer. (Prior code § 5200.3)
SECTION 7: Section 8.04.050 (Health officer and city engineer to direct removal)
of the San Luis Obispo Municipal Code is hereby amended as follows:
It shall be the duty of any franchisee engaged in or conducting the business of collecting
waste to remove waste to which the attention of the franchisee may be directed by the
health officer or city engineer, and where waste is accumulated and thence removed, any
and all the cost of the removal of waste shall be collected in accordance with the
provisions of this chapter. (Prior code § 5200.4)
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 763 of 984
Ordinance No. 1706 (2021 Series) Page 14
O 1706
SECTION 8: Section 8.04.060 (Disposal site) subsection (A) of the San Luis
Obispo Municipal Code is hereby amended as follows:
A. The franchisee shall contract with the operator of a disposal site situated
without the city limits for disposal of waste collected within the city. All waste
collected within the city and not separated for recycling or composting shall be
delivered to the disposal site and disposed of according to the regulations of
the disposal site.
SECTION 9: Section 8.04.070 (Use of disposal service mandatory – collection of
charges) of the San Luis Obispo Municipal Code are hereby amended as follows:
A. The city has determined that periodic collection and disposal of waste from all
developed properties in the city benefits all occupants of developed properties
in the city.
B. The city will provide waste collection and disposal service through its
franchisee; and all developed properties in the city must use the city’s waste
collection and disposal service, except that there may be joint or multiple use
of waste containers, subject to conditions established by the city.
C. The franchisee shall collect all fees for waste collection and disposal.
D. The owner of developed property shall be responsible and liable for paying the
waste collection and disposal fees for that property, although the franchisee will
bill a tenant if requested by the owner.
E. The owner of developed property shall be responsible for modifying frequency
and volume of waste collection and disposal service to remain compliant with
this chapter.
F. Once each year, prior to a date established by the city, the franchisee may take
the following actions to collect delinquent waste collection and disposal
accounts:
1. Present to the city a list of property owners (with corresponding parcel
numbers) within the city whose accounts are more than one hundred twenty
days past due;
2. Send a certified letter requesting payment to each property owner with a
delinquent account;
3. At least thirty days after receiving delivery certification for payment
requests, present to the city a list of property owners (with corresponding
parcel numbers) whose accounts are still past due.
G. After the franchisee has completed all of the actions listed in paragraph E, the
city council will adopt a resolution authorizing the San Luis Obispo county
assessor to assess the amounts due on delinquent accounts as liens against
the properties. The franchisee shall bear the full cost of any fees charged by
the San Luis Obispo county assessor to lien affected properties. (Ord. 1176
3, 1990: prior code § 5200.6)
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 764 of 984
Ordinance No. 1706 (2021 Series) Page 15
O 1706
SECTION 10: Section 8.04.080 (Collection rates) of the San Luis Obispo Municipal
Code is hereby amended as follows:
Collection rates for waste disposal shall be set by a resolution of the council. (Prior code
5200.6A)
SECTION 11: Section 8.04.090 (Condition of collection trucks) of the San Luis
Obispo Municipal Code is hereby amended as follows:
Every truck used in the collection and removal of waste shall be kept well painted, clean
inside and out, and in a prominent place on each truck display the following sign with
appropriate number:
SOLID WASTE” or “RECYCLING” or “ORGANIC WASTE” SERVICE
San Luis Obispo, California
No. ____________
Prior code § 5200.7)
SECTION 12: Section 8.04.100 (Refuse – Burning or burying) of the San Luis
Obispo Municipal Code is hereby amended as follows:
8.04.100 Waste—Burning or burying.
A. No waste matter shall be burned in the open air within the city, except
barbecue fires.
B. No waste matter which shall, in burning, cause or create a dense or offensive
smoke, shall be burned upon any premises within the corporate limits of the
city, whether in an incinerator or not, except as noted in subsection A of this
section.
C. No waste shall be disposed of by burying the same underground, except that
waste may be made use of for the filling of low areas within the city when it is
properly leveled and covered with dirt and upon written permission of the
health officer or city engineer. (Prior code § 5200.8)
SECTION 13: Section 8.04.120 (Disposal by producer) of the San Luis Obispo
Municipal Code is hereby amended as follows:
A. Nothing in this chapter contained shall be construed to prohibit any producer of
waste from personally hauling in producer’s vehicle, through the streets of the
city and disposing of same at the city disposal site; provided, that such hauling
and disposal shall at all times be subject to the approval of the health officer.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 765 of 984
Ordinance No. 1706 (2021 Series) Page 16
O 1706
B. The person in charge of any vehicle used to haul waste under the permission
granted by the provisions of this chapter shall, on request from the custodian
of or person in charge at the city disposal site, exhibit satisfactory evidence
showing that such waste accumulated in, and was hauled from, the city, and
that the producer thereof is a resident of the city.
C. The permission granted by the provisions of this chapter shall not include the
right to haul and dispose of dead animals, C&D debris, old automobile bodies
or frames, nor any refuse or rubbish originating in a commercial establishment
where the quantity exceeds one cubic yard.
D. The city is authorized, by resolution duly adopted by the council, to provide that
any person who shall haul his or her own solid waste and dispose of the same
at the city disposal site shall pay to the franchisee holding a franchise from the
city, a fee for such privilege. The rate of such fee shall be established by such
resolution and may be changed from time to time by the council by resolution
duly adopted by the council. (Prior code § 5200.10)
SECTION 14: Section 8.04.130 (Certain hauling prohibited) of the San Luis Obispo
Municipal Code is hereby amended as follows:
No person, other than the franchisee, shall collect, remove or haul solid wastesover the
streets of the city; provided, however, that this section shall not apply to producer-hauling
as provided in Section 8.04.120, nor to persons who have a permit from the health officer
or city engineer for emergency removal of the same. (Prior code § 5200.11)
SECTION 15: Section 8.04.140 (Health regulations—Establishment) of the San
Luis Obispo Municipal Code is hereby amended as follows:
The city engineer in conjunction with the health officer have power to establish rules and
regulations not inconsistent with this chapter governing the collection and disposal of
waste; provided, that such rules and regulations shall have as their purpose the
enforcement of the provisions of this chapter and the health and sanitary laws and
ordinances in effect in the city. (Prior code § 5200.12)
SECTION 16: Section 8.04.150 (Franchise for collection—Authorization) of the
San Luis Obispo Municipal Code is hereby amended as follows:
For the collection and disposal of waste a franchise may be granted by the city in
accordance with and subject to the terms and conditions of this chapter and the City
Charter. (Prior code § 5200.14)
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 766 of 984
Ordinance No. 1706 (2021 Series) Page 17
O 1706
SECTION 17: Section 8.04.160 (Placement of receptacles for pickup—Disputes
settlement) of the San Luis Obispo Municipal Code is hereby amended as follows:
In all cases of disputes or complaints arising from or concerning the place where the
waste containers shall be placed while awaiting the removal of their contents, or
concerning the cost of such removal, the same shall be determined by the city council or
the health officer, and such decision shall be final. (Prior code § 5200.15)
SECTION 18: Section 8.04.170 (Dumping on private or public premises prohibited)
of the San Luis Obispo Municipal Code is hereby amended as follows:
No person shall dump, deposit, keep or accumulate any C&D debris or any other waste
material which, if thrown or deposited, tends to create a hazard to public health, safety
and welfare on any public or private place, creek, lake, drainageway, street, lane, alley or
drive, except the same be kept, deposited or allowed to accumulate temporarily, during
the period of factual construction on premises under construction or alteration, and in a
manner approved by the building inspector. Failure of a building permittee to clean up
unapproved accumulations within three working days after the building inspector serves
written notice upon the permittee or his or her agent so to do shall result in summary
suspension of the building permit until such time as the condition is corrected to the
satisfaction of the building inspector. The suspension authorized in this section shall be
in addition to the misdemeanor penalties provided for elsewhere in this code. (Ord. 1040
part), 1985: prior code § 5200.16)
SECTION 19: Section 8.04.180 (Owners responsibility to maintain premises free
of debris and waste matter) of the San Luis Obispo Municipal Code is hereby amended
as follows:
The owner or person in control of any private property shall, at all times, maintain the
premises free of waste, debris or any other waste material, except pursuant to a permit
approved by the city engineer for fill and compaction work, and provided that this section
and Section 8.04.170 shall not prohibit the storage of such waste materials in private
receptacles for collection. (Prior code § 5200.17)
SECTION 21: Sections 8.04.211-8.04.219 of the San Luis Obispo Municipal Code
are hereby added as follows:
8.04.211 Mandatory organic waste disposal reduction requirements for Single-Family
Premises.
A. Except responsible parties of single-family premises that meet the self-hauler
requirements in section 8.04.218 of this chapter, responsible parties of single-
family premises shall comply with the following requirements:
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 767 of 984
Ordinance No. 1706 (2021 Series) Page 18
O 1706
1. Subscribe to and pay for city’s three-container collection services for weekly
collection of recyclable materials, organic materials, and solid waste
generated by the single-family premises and comply with requirements of
those services set forth in this chapter. The franchisee, city and its
designee(s) shall have the right to review the number and size of a
generator’s containers to evaluate adequacy of capacity provided for each
type of collection service for proper separation of materials and containment
of materials. The responsible parties for single-family premises shall adjust
their service level for their collection services as requested by the city.
2. Participate in the city’s three-container collection service(s) in the manner
described below.
a. Place, or, if responsible party is not an occupant of the single-family
premises, direct its generators to place source separated organic
materials, including food waste, in the organic materials container;
source separated recyclable materials in the recyclable materials
container; and solid waste in the solid waste container.
b. Not place, or, if responsible party is not an occupant of the single-family
premises, direct its generators to not place prohibited container
contaminants in collection containers and not place materials
designated for the organic materials containers or recyclable materials
containers in the solid waste containers.
B. Nothing in this section prohibits a responsible party or generator of a single-
family premises from preventing or reducing discarded materials generation,
managing organic waste on site, and/or using a community composting site
pursuant to 14 CCR Section 18984.9(c).
8.04.212 Requirements for Multi-Family Residential Dwelling.
A. Responsible parties of multi-family premises shall provide or arrange for
recyclable materials, organic materials, and solid waste collection services
consistent with this chapter and for employees, contractors, and tenants.
Responsible parties of multi-family premises may receive waivers pursuant to
Section 8.04.214 for some requirements of this section.
B. Except for responsible parties of multi-family premises that meet the self-hauler
requirements in Section 8.04.218 of this chapter, including hauling services
arranged through a landscaper, responsible parties of multi-family premises
shall:
1. Subscribe to and pay for city’s three or more-container collection services
and comply with requirements of those services for all recyclable materials,
organic materials, and solid waste generated at the multi-family premises
as further described below in this section. The franchisee, city and its
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 768 of 984
Ordinance No. 1706 (2021 Series) Page 19
O 1706
designee(s) shall have the right to review the number and size of the
generators’ collection containers and frequency of collection to evaluate
adequacy of capacity provided for each type of collection service for proper
separation of materials and containment of materials. The generator of a
multi-family premises shall adjust their service level for their collection
services as requested by the city or its designee.
2. Participate in the city’s three or more-container collection service(s) for at
least weekly collection of recyclable materials, organic materials, and solid
waste in the manner described below.
a. Place and/or direct its generators to place source separated organic
materials, including food waste, in the organic materials container;
source separated recyclable materials in the recyclable materials
container; and solid waste in the solid waste container.
b. Not place and/or direct its generators to not place prohibited container
contaminants in collection containers and to not place materials
designated for the organic materials containers or recyclable materials
containers in the solid waste containers.
3. Supply and allow access to adequate number, size and location of collection
containers with sufficient labels or colors for employees, contractors,
tenants, and customers, consistent with city’s recyclable materials
container, organic materials container, and solid waste container collection
service or, if self-hauling, consistent with the multi-family premises’
approach to complying with self-hauler requirements in Section 8.04.218 of
this chapter.
4. Annually provide best practice information to employees, contractors,
tenants, and customers about recyclable materials and organic waste
recovery requirements and about proper sorting of recyclable materials,
organic materials, and solid waste.
5. Provide education information before or within fourteen (14) days of
occupation of the premises to new tenants that describes requirements to
source separate recyclable materials and organic materials and to keep
source separated organic materials and source separated recyclable
materials separate from each other and from solid waste (when applicable)
and the location of containers and the rules governing their use at each
property.
6. Provide or arrange access for city and/or its designee(s) to their properties
during all inspections conducted in accordance with this chapter to confirm
compliance with the requirements of this chapter.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 769 of 984
Ordinance No. 1706 (2021 Series) Page 20
O 1706
C. If the responsible party of a multi-family premises wants to self-haul, the
responsible party must meet the self-hauler requirements in Section 8.04.218
of this chapter.
D. Multi-family premises that generate two (2) cubic yards or more of total solid
waste, recyclable materials, and organic materials per week (or other threshold
defined by the State) that arrange for gardening or landscaping services shall
require that the contract or work agreement between the owner, occupant, or
operator of a multi-family premises and a gardening or landscaping service
specifies that the designated organic materials generated by those services be
managed in compliance with this chapter.
E. Nothing in this section prohibits a responsible party or generator of a multi-
family premises from preventing or reducing discarded materials generation,
managing organic waste on site, or using a community composting site
pursuant to 14 CCR Section 18984.9(c).
8.04.213 Requirements for Commercial Businesses.
A. Responsible parties of commercial businesses shall provide or arrange for
recyclable materials, organic materials, and solid waste collection services
consistent with this chapter and for employees, contractors, tenants, and
customers. responsible parties of commercial premises may receive waivers
pursuant to Section 8.04.214 for some requirements of this section.
B. Except responsible parties of commercial businesses that meet the self-hauler
requirements in Section 8.04.218 of this chapter, including hauling services
arranged through a landscaper, responsible parties of commercial premises
shall:
1. Subscribe to and pay for city’s three or more-container collection services
and comply with requirements of those services for all recyclable materials,
organic materials, and solid waste generated at the commercial premises
as further described below in this section. City and its designee(s) shall
have the right to review the number and size of a commercial premises’
containers and frequency of collection to evaluate adequacy of capacity
provided for each type of collection service for proper separation of
materials and containment of materials. the responsible party of the
commercial business shall adjust their service level for their collection
services as requested by the city or its designee.
2. Participate in the city’s three or more-container collection service(s) for at
least weekly collection of recyclable materials, organic materials, and solid
waste in the manner described below.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 770 of 984
Ordinance No. 1706 (2021 Series) Page 21
O 1706
a. Place and/or direct its generators to place source separated organic
materials, including food waste, in the organic materials container;
source separated recyclable materials in the recyclable materials
container; and solid waste in the solid waste container.
b. Not place and/or direct its generators to not place prohibited container
contaminants in collection containers and to not place materials
designated for the organic materials containers or recyclable materials
containers in the solid waste containers.
3. Supply and allow access to adequate number, size and location of collection
containers with sufficient labels or colors for employees, contractors,
tenants, and customers, consistent with city’s recyclable materials
container, organic materials container, and solid waste container collection
service or, if self-hauling, consistent with the commercial premises’
approach to complying with self-hauler requirements in Section 8.04.218 of
this chapter.
4. Provide containers for customers for the collection of source separated
recyclable materials and source separated organic materials in all indoor
and outdoor areas where solid waste containers are provided for customers,
for materials generated by that commercial business. Such containers shall
be visible and easily accessible. Such containers do not need to be provided
in restrooms. If a commercial business does not generate any of the
materials that would be collected in one type of container, as demonstrated
through an approved de minimis waiver per Section 8.04.214(A), then the
responsible party of the commercial business does not have to provide that
particular container in all areas where solid waste containers are provided
for customers. Pursuant to 14 CCR Section 18984.9(b), the containers
provided by the responsible party of the commercial business shall have
either:
a. A container body or lid that conforms with the container colors provided
through the collection service provided by city, with either lids
conforming to the color requirements or bodies conforming to the color
requirements or both lids and bodies conforming to color requirements.
The responsible party of the commercial business is not required to
replace functional containers that do not comply with the requirements
of this subsection prior to whichever of the following comes first: (i) the
end of the useful life of those containers, or (ii) January 1, 2036.
b. Container labels that include language or graphic images, or both,
indicating the primary material accepted and the primary materials
prohibited in that container, or containers with imprinted text or graphic
images that indicate the primary materials accepted and primary
materials prohibited in the container. Pursuant 14 CCR Section 18984.8,
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 771 of 984
Ordinance No. 1706 (2021 Series) Page 22
O 1706
the container labeling requirements are required on new containers
commencing January 1, 2022.
5. To the extent reasonably practical through education, training, inspection,
and/or other measures, prohibit employees from placing materials in a
container not designated for those materials per the city’s recyclable
materials container, organic materials container, and solid waste collection
service or, if self-hauling, per the instructions of the commercial business’s
responsible party to support its compliance with self-hauler requirements in
Section 8.04.218 of this chapter.
6. Periodically inspect recyclable materials containers, organic materials
containers, and solid waste containers for contamination and inform
employees if containers are contaminated and of the requirements to keep
contaminants out of those containers pursuant to 14 CCR Section
18984.9(b)(3).
7. Annually provide information to employees, contractors, tenants, and
customers about recyclable materials and organic waste recovery
requirements and about proper sorting of recyclable materials, organic
materials, and solid waste.
8. Provide education information before or within fourteen (14) days of
occupation of the premises to new tenants that describes requirements to
source separate recyclable materials and organic materials and to keep
source separated organic materials and source separated recyclable
materials separate from each other and from other solid waste (when
applicable) and the location of containers and the rules governing their use
at each property.
9. Provide or arrange access for city or its designee to their properties during
all inspections conducted in accordance with this chapter to confirm
compliance with the requirements of this chapter.
C. If the responsible party of a commercial business wants to self-haul, meet the
self-hauler requirements in Section 8.04.218 of this chapter.
D. Nothing in this section prohibits a responsible party or a generator of a
commercial business from preventing or reducing discarded materials
generation, managing organic waste on site, or using a community composting
site pursuant to 14 CCR Section 18984.9(c).
E. Responsible parties of commercial businesses that are tier one or tier two
commercial edible food generators shall comply with food recovery
requirements, pursuant to Section 8.04.215 of this chapter.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 772 of 984
Ordinance No. 1706 (2021 Series) Page 23
O 1706
8.04.214 Waivers for Multi-Family Premises and Commercial Premises.
A. De minimis waivers for multi-family premises and commercial premises. The
city or its designee, may waive a responsible party’s obligation to comply with
some or all recyclable materials and organic waste requirements set forth in
this chapter if the responsible party of the commercial business or multi-family
premises provides documentation that the commercial business or multi-family
premises meets one of the criteria in subsections (1) and (2) below. For the
purposes of subsections (1) and (2), the total solid waste shall be the sum of
weekly container capacity measured in cubic yards for solid waste, recyclable
materials, and organic materials collection service. Hauling through paper
shredding service providers or other incidental services may be considered in
granting a de minimis waiver.
1. The commercial business’s or multi-family premises’ total solid waste
collection service is two (2) cubic yards or more per week and recyclable
materials and organic materials subject to collection in recyclable materials
container(s) or organic materials container(s) comprises less than twenty
20) gallons per week per applicable material stream of the multi-family
premises’ or commercial business’s total waste (i.e., recyclable materials in
the recyclable materials stream are less than twenty (20) gallons per week
or organic materials in the organic materials stream are less than twenty
20) gallons per week); or,
2. The commercial business’s or multi-family premises’ total solid waste
collection service is less than two (2) cubic yards per week and recyclable
materials and organic materials subject to collection in a recyclable
materials container(s) or organic materials container(s) comprises less than
ten (10) gallons per week per applicable material stream of the multi-family
premises’ or commercial business’s total waste (i.e., recyclable materials in
the recyclable materials stream are less than ten (10) gallons per week or
organic materials in the organic materials stream are less than ten (10)
gallons per week).
B. Physical Space Waivers. The city or its designee may waive a commercial
business’s or multi-family premises’ obligation to comply with some or all of the
recyclable materials and/or organic waste collection service requirements if the
city or its designee has evidence from its own staff, a hauler, licensed architect,
or licensed engineer demonstrating that the premises lacks adequate space for
recyclable materials containers and/or organic materials containers required for
compliance with the recyclable materials and organic materials collection
requirements of Section 8.04.212 or 8.04.213 as applicable. Commercial
business’s and multi-family premises’ should defer to the City’s Engineering
Standards for trash enclosure specifications.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 773 of 984
Ordinance No. 1706 (2021 Series) Page 24
O 1706
C. Review and approval of waivers (deminimis or physical space). Waivers shall
be granted to responsible parties by the city or its designee according to the
following process:
1. Responsible parties of premises seeking waivers shall submit a completed
application form to the city’s designee, or the city if there is no designee, for
a waiver specifying the waiver type requested, type(s) of collection services
for which they are requesting a waiver, the reason(s) for such waiver, and
documentation supporting such request.
2. Upon waiver approval, the city’s designee, or the city if there is no designee,
shall specify that the waiver is valid for the following duration:
a. For commercial premises, five (5) years, or if property ownership
changes, or if occupancy changes, whichever occurs first.
b. For multi-family premises, five (5) years, or if property ownership
changes, or if the property manager changes, whichever occurs first.
3. Waiver holder shall notify city’s designee, or the city if there is no designee,
if circumstances change such that commercial business’s or multi-family
premises’ may no longer qualify for the waiver granted, in which case waiver
will be rescinded.
4. Any waiver holder must cooperate with the city and/or its designee for any
on-site assessment of the appropriateness of the waiver.
5. Waiver holder shall reapply to the city’s designee, or the city if there is no
designee, for a waiver upon the expiration of the waiver period and shall
submit any required documentation, and/or fees/payments as required by
the city and/or its designee. Failure to submit a completed application shall
equate to an automatic denial of said application.
6. The city or its designee may revoke a waiver upon a determination that any
of the circumstances justifying a waiver are no longer applicable.
7. If the city or its designee does not approve a waiver application or revokes
a waiver, the waiver applicant may appeal the decision for additional review
pursuant to Chapter 1.20. The city may also, after meeting and conferring
with the designee, direct the designee to approve the waiver application
and/or repeal the revocation of the waiver.
8.04.215 Requirements for Commercial Edible Food Generators.
A. Tier one commercial edible food generators must comply with the requirements
of this section commencing January 1, 2022, and tier two commercial edible
food generators must comply commencing January 1, 2024, pursuant to 14
CCR Section 18991.3.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 774 of 984
Ordinance No. 1706 (2021 Series) Page 25
O 1706
B. Large venue or large event operators not providing food services, but allowing
for food to be provided by others, shall require food facilities operating at the
large venue or large event to comply with the requirements of this section,
commencing January 1, 2024.
C. Commercial edible food generators shall comply with the following
requirements:
1. Arrange to recover the maximum amount of edible food that would
otherwise be disposed. Food that is donated shall be free from adulteration,
spoilage, and meet the food safety standards of the California Health and
Safety Code. Food cannot be donated if it is not in compliance with the food
safety standards of the California Health and Safety Code, including food
that is returned by a customer, has been served or sold and in the
possession of a consumer, or is the subject of a recall.
2. Contract with or enter into a written agreement with food recovery
organizations or food recovery services for: (i) the collection of edible food
for food recovery; or, (ii) acceptance of the edible food that the commercial
edible food generator self-hauls to the food recovery organization for food
recovery.
3. Not intentionally spoil edible food that is capable of being recovered by a
food recovery organization or a food recovery service.
4. Allow city’s designated enforcement entity or designated third party
enforcement entity to access the premises and review records pursuant to
14 CCR Section 18991.4.
5. Keep records that include the following information, or as otherwise
specified in 14 CCR Section 18991.4:
a. A list of each food recovery service or organization that collects or
receives its edible food pursuant to a contract or written agreement
established under 14 CCR Section 18991.3(b).
b. A copy of all contracts or written agreements established under 14 CCR
Section 18991.3(b).
c. A record of the following information for each of those food recovery
services or food recovery organizations:
i. The name, address and contact information of the food recovery
service or food recovery organization.
ii. The types of food that will be collected by or self-hauled to the food
recovery service or food recovery organization.
iii. The established frequency that food will be collected or self-hauled.
iv. The quantity of food, measured in pounds recovered per month,
collected or self-hauled to a food recovery service or food recovery
organization for food recovery.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 775 of 984
Ordinance No. 1706 (2021 Series) Page 26
O 1706
6. Maintain records required by this section for five (5) years.
7. No later than January 31 of each year commencing no later than January
31, 2023 for tier one commercial edible food generators and January 31,
2025 for tier two commercial edible food generators, provide an annual food
recovery report to city’s designee, or the city if there is no designee, that
includes the following information:
a. The amount, in pounds, of edible food donated to a food recovery
service or food recovery organization annually; and,
b. The amount, in pounds of edible food rejected by a food recovery service
or food recovery organization annually.
c. Any additional information required by the City Manager or their
designee.
D. Nothing in this chapter shall be construed to limit or conflict with the protections
provided by the California Good Samaritan Food Donation Act of 2017, the
Federal Good Samaritan Act, or share table and school food donation guidance
pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of
California on September 25, 2017, which added Article 13 [commencing with
Section 49580] to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education
Code, and to amend Section 114079 of the Health and Safety Code, relating
to food safety, as amended, supplemented, superseded and replaced from time
to time).
8.04.216 Requirements for Food Recovery Organizations and Services.
A. Food Recovery Services collecting or receiving edible food directly from
commercial edible food generators, via a contract or written agreement
established under 14 CCR Section 18991.3(b), shall maintain the following
records, or as otherwise specified by 14 CCR Section 18991.5(a)(1):
1. The name, address, and contact information for each commercial edible
food generator from which the service collects edible food.
2. The quantity in pounds of edible food collected from each commercial edible
food generator per month.
3. The quantity in pounds of edible food transported to each food recovery
organization per month.
4. The name, address, and contact information for each food recovery
organization that the food recovery service transports edible food to for food
recovery.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 776 of 984
Ordinance No. 1706 (2021 Series) Page 27
O 1706
B. Food recovery organizations collecting or receiving edible food directly from
commercial edible food generators, via a contract or written agreement
established under 14 CCR Section 18991.3(b), shall maintain the following
records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
1. The name, address, and contact information for each commercial edible
food generator from which the organization receives edible food.
2. The quantity in pounds of edible food received from each commercial edible
food generator per month.
3. The name, address, and contact information for each food recovery service
that the organization receives edible food from for food recovery.
C. Maintain records required by this section for five (5) years.
D. Food recovery organizations and food recovery services that have their primary
address physically located in the city and contract with or have written
agreements with one or more commercial edible food generators pursuant to
14 CCR Section 18991.3(b) shall report to the city it is located in and the city’s
designee, if applicable, the total pounds of edible food recovered in the
previous calendar year from the tier one and tier two commercial edible food
generators they have established a contract or written agreement with pursuant
to 14 CCR Section 18991.3(b). The annual report shall be submitted to the
city’s designee, or the city if there is no designee, if applicable, no later than
January 31 of each year.
E. In order to support edible food recovery capacity planning assessments or
other studies conducted by the city that provides solid waste collection
services, or its designated entity, food recovery services and food recovery
organizations operating in the city shall provide information and consultation to
the city’s designee, or the city if there is no designee, if applicable, upon
request, regarding existing, or proposed new or expanded, food recovery
capacity that could be accessed by the city and its commercial edible food
generators. A food recovery service or food recovery organization contacted by
the city and/or its designee shall respond to such request for information within
60 days, unless a shorter timeframe is otherwise specified by the city.
F. Nothing in this chapter prohibits a food recovery organization or food recovery
service from refusing to accept edible food from a commercial edible food
generator.
8.04.217 Requirements for Haulers and Facility Operators.
A. Requirements for Haulers
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 777 of 984
Ordinance No. 1706 (2021 Series) Page 28
O 1706
1. Franchise hauler(s) providing recyclable materials, organic waste, and/or
solid waste collection services to generators within the city’s boundaries
shall meet the following requirements and standards as a condition of
approval of its contract, agreement, permit, or other authorization with the
city to collect recyclable materials, organic materials, and/or solid waste:
a. Through written notice to the city annually on or before January 31 of
each year, identify the facilities to which they will transport discarded
materials, including facilities for source separated recyclable materials,
source separated organic materials, and solid waste unless otherwise
stated in the franchise agreement, contract, permit, or license, or other
authorization with the city.
b. Transport source separated recyclable materials to a facility that
recovers those materials; transport source separated organic materials
to a facility, operation, activity, or property that recovers organic waste
as defined in 14 CCR, Division 7, Chapter 12, Article 2; transport solid
waste to a disposal facility or transfer facility or operation that processes
or disposes of solid waste; and transport manure to a facility that
manages manure in conformance with 14 CCR Article 12 and such that
the manure is not landfilled, used as alternative daily cover (ADC), or
used as alternative intermediate cover (AIC).
c. Obtain approval from the city to haul organic waste, unless it is
transporting source separated organic waste to a community
composting site or lawfully transporting C&D in a manner that complies
with 14 CCR Section 18989.1 and city’s Construction and Demolition
Debris Recycling Program.
2. Franchise hauler(s) authorized to collect recyclable materials, organic
materials, and/or solid waste shall comply with education, equipment,
signage, container labeling, container color, contamination monitoring,
reporting, and other requirements contained within its franchise agreement,
permit, or other agreement entered into with city.
B. Requirements for Facility Operators and Community Composting Operations
1. Owners of facilities, operations, and activities located in the city’s
boundaries that recover organic waste, including, but not limited to, compost
facilities, in-vessel digestion facilities, and publicly-owned treatment works
shall, upon city request, provide information regarding available and
potential new or expanded capacity at their facilities, operations, and
activities, including information about throughput and permitted capacity
necessary for planning purposes. Entities contacted by the city shall
respond within 60 days.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 778 of 984
Ordinance No. 1706 (2021 Series) Page 29
O 1706
2. Community composting operators with operations located in the city’s
boundaries, upon city request, shall provide information to the city to
support organic waste capacity planning, including, but not limited to, an
estimate of the amount of organic waste anticipated to be handled at the
community composting operation. entities contacted by the city shall
respond within 60 days.
8.04.218 Recyclable and Organic Materials Self-Hauling Requirements.
A. Every self-hauler shall source separate its recyclable materials and organic
materials (materials that city otherwise requires generators or responsible
parties to separate for collection in the city’s recyclable materials and organic
materials collection program) generated on-site from solid waste in a manner
consistent with 14 CCR Section 18984.1 and the city’s collection program. Self-
haulers shall deliver their materials to facilities described in subsection (b)
below.
B. Self-haulers that source separate their recyclable materials and organic
materials shall haul their source separated recyclable materials to a facility that
recovers those materials; haul their source separated organic waste to a
facility, operation, activity, or property that processes or recovers source
separated organic waste; and, haul their solid waste to a disposal facility or
transfer facility or operation that processes or disposes of solid waste.
C. Self-haulers that are responsible parties of commercial businesses or multi-
family premises shall keep records of the amount of recyclable materials,
organic waste, and solid waste delivered to each facility, operation, activity, or
property that processes or recovers recyclable materials and organic waste and
processes or disposes of solid waste or shall keep records of solid waste
delivered to high diversion organic waste processing facilities. These records
shall be subject to review by the city and/or its designee(s). The records shall
include the following information:
1. Delivery receipts and weight tickets from the entity accepting the recyclable
materials, organic materials, and solid waste.
2. The amount of material in cubic yards or tons transported by the generator
or responsible party to each entity.
3. If the material is transported to an entity that does not have scales on-site
or employs scales incapable of weighing the self-hauler’s vehicle in a
manner that allows it to determine the weight of materials received, the self-
hauler is not required to record the weight of material but shall keep a record
of the entities that received the recyclable materials, organic materials, and
solid waste.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 779 of 984
Ordinance No. 1706 (2021 Series) Page 30
O 1706
D. Self-haulers of food waste shall retain all records and data required to be
maintained by this section for no less than five (5) years after the waste was
first delivered to the facility accepting the material.
8.04.219 Inspections and Investigations.
A. City representatives or its designee(s) are authorized to conduct inspections
and investigations, at random or otherwise, of any collection container,
collection vehicle loads, or transfer, processing, or disposal facility for materials
collected from generators, or source separated materials to confirm compliance
with this chapter by generators, responsible parties of single-family premises,
responsible parties of commercial businesses, responsible parties of multi-
family premises, commercial edible food generators, haulers, self-haulers, food
recovery services, and food recovery organizations, subject to applicable laws.
Inspection of residential containers may only be conducted once container is
placed on a curb or sidewalk for the intended purpose of being serviced. This
section does not permit city or its designee to enter the interior of a private
residential property for Inspection, nor does it allow city or its designee to
approach a residential structure if containers are not pulled out to curb or
sidewalk for service.
B. Entities regulated by this chapter shall provide or arrange for access during all
inspections (with the exception of residential property interiors) and shall
cooperate with the city’s representative or its designee during such inspections
and investigations. Such inspections and investigations may include
confirmation of proper placement of materials in containers, inspection of edible
food recovery activities, review of required records, or other verification or
inspection to confirm compliance with any other requirement of this chapter.
failure of a responsible party to provide or arrange for: (i) access to an entity’s
premises; or (ii) access to records for any inspection or investigation is a
violation of this chapter and may result in penalties described in Chapter 8.04.
C. Any records obtained by a city or its designee during its Inspections, and other
reviews shall be subject to the requirements and applicable disclosure
exemptions of the Public Records Act as set forth in Government Code Section
6250 et seq.
D. City or its designee shall receive written complaints from persons regarding an
entity that may be potentially non-compliant with SB 1383 Regulations,
including receipt of anonymous complaints.
E. City representatives and/or their designee are authorized to provide
informational notices to entities regulated by this chapter regarding compliance
with this chapter.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 780 of 984
Ordinance No. 1706 (2021 Series) Page 31
O 1706
SECTION 22: Section 8.04.220 (Enforcement) of the San Luis Obispo Municipal
Code is hereby amended as follows:
A. The city’s Code Enforcement Division, city engineer, and the police department
are specifically empowered to enforce the provisions of this chapter.
B. No person shall in any manner interfere with the collection or disposal of waste
by any person authorized by franchise to collect and dispose of the same. (Prior
code § 5200.13)
C. Beginning January 1, 2024, if the city determines that a generator, responsible
party, self-hauler, hauler, tier one or tier two commercial edible food generator,
food recovery organization, food recovery service, or other entity is not in
compliance with Sections 8.04.211-8.04.219, it shall document the
noncompliance or violation, issue a Notice of Violation, and take enforcement
action pursuant to this section, as needed.
SECTION 23: Section 8.04.230 (Violation - Penalty) of the San Luis Obispo
Municipal Code is hereby amended as follows:
In addition to any other remedy authorized by this chapter, any violation of
the provisions of this chapter by any person or restaurant is subject to provisions set forth
in Chapter 1.24. (Ord. 1640 § 3 (part), 2017)
SECTION 24: Chapter 8.05 (Construction and Demolition Debris Recycling
Program) of the San Luis Obispo Municipal Code is hereby amended as follows:
Sections:
8.05.010 Definitions.
8.05.020 Compliance with CALGreen recycling requirements.
8.05.030 Submission of recycling plan.
8.05.040 Review of recycling plan.
8.05.050 Compliance with recycling plan.
8.05.060 Infeasible exemption.
8.05.070 Appeals.
8.05.080 Civil penalties.
SECTION 25: Section 8.05.010 (Definitions) of the San Luis Obispo Municipal
Code is hereby amended as follows:
8.05.010 Definitions.
Applicant” means any individual, firm, limited liability company, association, partnership,
political subdivision, government agency, municipality, industry, public or private
corporation, or any other entity whatsoever who applies to the city for the applicable
permits to undertake any construction, demolition, or renovation project within the city,
unless otherwise specifically exempted by law.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 781 of 984
Ordinance No. 1706 (2021 Series) Page 32
O 1706
California Code of Regulations” or “CCR” means the State of California Code of
Regulations. CCR references in this chapter are preceded with a number that refers to
the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR). “Compliance
official” means the utilities conservation coordinator or his/her designee.
Construction” means the building of any structure or any portion thereof including any
tenant improvements to an existing facility or structure.
Construction and demolition debris” means used or discarded materials removed from
premises during construction or renovation of a structure resulting from construction,
remodeling, repair, or demolition operations on any pavement, house, commercial
building, or other structure.
Conversion rate” means the rate set forth in the standardized conversion rate table
approved by the city pursuant to this chapter for use in estimating the volume or weight
of materials identified in a recycling plan.
Covered project” shall have the meaning set forth in Section 8.05.020(A).
Deconstruction” means the systematic removal of usable items from a structure.
Demolition” means the decimating, razing, ruining, tearing down or wrecking of any
facility, structure, pavement or building, whether in whole or in part, whether interior or
exterior.
Divert” means to use material for any purpose other than disposal in a landfill.
Diversion requirement” means the diversion of at least fifty percent by weight of the total
construction and demolition debris generated by a project via reuse or recycling, unless
the applicant has been granted an infeasible exemption pursuant to Section 8.05.060, in
which case the diversion requirement shall be the maximum feasible diversion rate
established by the recycling plan compliance official for the project.
Noncovered project” shall have the meaning set forth in Section 8.05.020(C).
Enforcement Action" means an action of the city to address non-compliance with this
chapter including, but not limited to, issuing administrative citations, fines, penalties, or
using other remedies.
Project” means any activity which requires an application for a building or demolition
permit or any similar permit from the city.
Renovation” means any change, addition, or modification in an existing structure.
Reuse” means further or repeated use of construction or demolition debris.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 782 of 984
Ordinance No. 1706 (2021 Series) Page 33
O 1706
Salvage” means the controlled removal of construction or demolition debris from a
permitted building or demolition site for the purpose of recycling, reuse or storage for later
recycling or reuse.
Recycling plan” means a completed recycling plan form, approved by the city for the
purpose of compliance with this chapter, submitted by the applicant for any covered or
noncovered project. (Ord. 1381 § 1 (part), 2001)
SECTION 26: Section 8.05.020 (Threshold for covered projects) of the San Luis
Obispo Municipal Code is hereby amended as follows:
8.05.020 Compliance with CALGreen recycling requirements.
A. Persons applying for a permit from the city for new construction and building
additions and alterations shall comply with the requirements of this section and
all required components of the California Green Building Standards Code, 24
CCR, Part 11, known as CALGreen, as amended, if its project is covered by
the scope of CALGreen or more stringent requirements of the city. If the
requirements of CALGreen are more stringent than the requirements of this
section, the CALGreen requirements shall apply.
B. For projects covered by CALGreen or more stringent requirements of the city,
the applicants must, as a condition of the city’s permit approval, comply with
the following:
1. Where five (5) or more multi-family dwelling units are constructed on a
building site, provide readily accessible areas that serve occupants of all
buildings on the site and are identified for the storage and collection of
recyclable materials container and organic materials container materials,
consistent with the three or more-container collection program offered by
the city, or comply with provision of adequate space for recycling for multi-
family premises and commercial premises pursuant to Sections 4.408.1,
4.410.2, 5.408.1, and 5.410.1 of the California Green Building Standards
Code, 24 CCR, Part 11 as amended provided amended requirements are
more stringent than the CALGreen requirements for adequate recycling
space effective January 1, 2020.
2. New commercial or multi-family construction or additions resulting in more
than 30% of the floor area shall provide readily accessible areas identified
for the storage and collection of recyclable materials container and organic
materials container materials, consistent with the three or more-container
collection program offered by the city, or shall comply with provision of
adequate space for recycling for multi-family premises and commercial
premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and 5.410.1 of the
California Green Building Standards Code, 24 CCR, Part 11 as amended
provided amended requirements are more stringent than the CALGreen
requirements for adequate recycling space effective January 1, 2020.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 783 of 984
Ordinance No. 1706 (2021 Series) Page 34
O 1706
3. Comply with CALGreen requirements and applicable law related to
management of C&D, including diversion of organic waste in C&D from
disposal. Comply with city’s Construction and Demolition Debris Recycling
Program Ordinance, Chapter 8.05 of City’s Municipal Code, and all written
and published city policies and/or administrative guidelines regarding the
collection, recycling, diversion, tracking, and/or reporting of C&D debris.
C. Compliance as a Condition of Approval. Compliance with the provisions of this
chapter shall be listed as a condition of approval on any building or demolition
permit issued for a covered project.
D. Control of Waste. Regardless of the project size and requirement for a formal
recycling plan, all projects shall implement control of waste to prevent the
release of pollutants to the storm drain system in accordance with the city’s
storm water quality ordinance, set forth in Chapter 12.08. (Ord. 1543 § 4, 2010;
Ord. 1381 § 1 (part), 2001)
SECTION 27: Section 8.05.030 (Submission of a recycling plan) subsections (A-
B) of the San Luis Obispo Municipal Code are hereby amended as follows:
A. Recycling Plan Forms. Applicants for building or demolition permits involving
any covered project shall complete and submit a recycling plan on a recycling
plan form approved by the city for this purpose as part of the application packet
for the building or demolition permit. The completed recycling plan shall indicate
all of the following:
1. Identify the construction and demolition waste materials to be diverted from
disposal by recycling, reuse on the project, or salvage for future use or sale.
2. Specify if construction and demolition waste materials will be sorted on-site
source-separated) or bulk mixed (single stream).
3. Identify diversion facilities where the construction and demolition waste
material will be taken.
4. Identify construction methods employed to reduce the amount of
construction and demolition waste generated.
5. Specify that the amount of construction and demolition waste materials
diverted shall be calculated by weight.
SECTION 28: Section 8.05.040 (Review of recycling plan) of the San Luis Obispo
Municipal Code is hereby amended as follows:
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 784 of 984
Ordinance No. 1706 (2021 Series) Page 35
O 1706
A. Approval. Notwithstanding any other provision of this code, no building or
demolition permit shall be issued for any covered project unless and until the
recycling plan compliance official has approved the recycling plan. Approval
shall not be required, however, where an emergency demolition is required to
protect the public health, welfare or safety as determined by the chief building
official. The recycling plan compliance official shall only approve a recycling
plan if he or she first determines that all of the following conditions have been
met:
1. The recycling plan provides all of the information set forth in Section
8.05.030(A); and
2. The recycling plan indicates that at least sixty-five percent by weight of all
construction and demolition debris generated by the project will be diverted.
If the recycling plan compliance official determines that these conditions have been met,
he or she shall mark the recycling plan “Approved,” return a copy of the recycling plan to
the applicant, and notify the building department that the recycling plan has been
approved.
SECTION 29: Section 8.05.050 (Compliance with recycling plan) subsection (A)
of the San Luis Obispo Municipal Code is hereby amended as follows:
A. Documentation. Prior to receiving a certificate of occupancy for the project, the
applicant shall submit to the recycling plan compliance official documentation
that the diversion requirement for the project has been met. The diversion
requirement shall be that the applicant has diverted at least sixty-five percent
of the total construction and demolition debris generated by the project via
reuse or recycling, unless the applicant has been granted an infeasible
exemption pursuant to Section 8.05.060, in which case the diversion
requirement shall be the maximum feasible diversion rate established by the
recycling plan compliance official for the project. This documentation shall
include all of the following:
1. Receipts from the vendor or facility which collected or received each
material showing the actual weightof that material;
2. Any additional information the applicant believes is relevant to determining
its efforts to comply in good faith with this chapter.
SECTION 30: Section 8.05.060 (Infeasible exemption) subsections (B-C) of the
San Luis Obispo Municipal Code are hereby amended as follows:
B. Meeting with Recycling Plan Compliance Official. The recycling plan
compliance official shall review the information supplied by the applicant and
may meet with the applicant to discuss possible ways of meeting the diversion
requirement.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 785 of 984
Ordinance No. 1706 (2021 Series) Page 36
O 1706
C. Granting of Exemption. If the recycling plan compliance official determines that
it is infeasible for the applicant to meet the diversion requirement due to unique
circumstances, he or she shall determine the maximum feasible diversion rate
for each material and shall indicate this rate on the recycling plan submitted by
the applicant. The recycling plan compliance official shall return a copy of the
recycling plan to the applicant marked “Exempt” and shall notify the building
division that the recycling plan has been approved.
SECTION 31. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforcement of the remaining portions of this ordinance, or any other provisions of the
city's rules and regulations. It is the city's express intent that each remaining portion would
have been adopted irrespective of the fact that any one or more subdivisions, paragraphs,
sentences, clauses, or phrases be declared invalid or unenforceable.
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
Page 786 of 984
Ordinance No. 1706 (2021 Series) Page 37
O 1706
SECTION 32. A summary of this ordinance, approved by the City Attorney,
together with the ayes and noes shall be published at least five days prior to its final
passage in the New Times, a newspaper published and circulated in said city, and the
same shall go into effect at the expiration of 30 days after its final passage. A copy of the
full text of this ordinance shall be on file in the Office of the City Clerk on and after the
date following introduction and passage to print and shall be available to any member of
the public.
INTRODUCED on the 16th day of November 2021, AND FINALLY ADOPTED
by the Council of the City of San Luis Obispo on the 7th day of December 2021, on
the following vote:
AYES: Council Member Marx, Pease, Shoresman, Vice Mayor Christianson,
and Mayor Stewart
NOES: None
ABSENT: None
Mayor Erica A. Stewart
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
Teresa Purrington
City Clerk
DocuSign Envelope ID: EC05CE7A-BEB0-41AF-ADF1-5432C79D7715
12/13/2021 | 4:48 PM PST
Page 787 of 984
Page 788 of 984