HomeMy WebLinkAbout09/07/1999, 2 - CONSIDERATION OF LEASE VIOLATIONS AT 45 PRADO ROAD, THE RALCCO BUYBACK CENTER. .�\ council
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j acEnoa Report .2 -. .
CITYOF SAN LUIS O B I S P O
FROM: John Moss, Utilities Director V,
Prepared By: Ron Munds, Utilities Conservation Coordinator"`'
SUBJECT: CONSIDERATION OF LEASE VIOLATIONS AT 45 PRADO ROAD,
THE RALCCO BUYBACK CENTER.
CAO RECOMMENDATION
1. Direct RALCCO to correct all currently noticed violations of the lease agreement as outlined
by staff and report status of all corrective actions to the Utilities Director.
2. Require RALCCO to remove all equipment and debris not being utilized by or related to the
buyback operation immediately.
3. Require RALCCO to submit a plan. for Council approval, to improve the site's overall
condition, including a timeline for completion.
4. Authorize the Utilities Director to terminate the lease if any future violation of the terms and
conditions of the lease occurs, in accordance with the Termination for Cause and
Enforcement sections of the lease, or if RALCCO fails to meet the site improvement timeline
established by Council.
DISCUSSION
Background
On June 17, 1997,the Council approved the assignment of a new lease agreement (Attachment I)
with ECOSLO to RALCCO, a for profit recycling company, to operate a buyback center on City
property located at 45 Prado Road. Since the assignment of the lease to RALCCO, the company
has had a history of being slow to respond to certain conditions and requirements of the
agreement. These include timely payment of the monthly rent(June 1999 rent was not paid until
July 30, 1999), obtaining appropriate permits and providing required plans and reports.
Additionally, staff has had numerous contacts during the past two years with representatives
from RALCCO regarding the cleanliness and general condition of the site. Though the site
condition improved after each visit, over time the condition would again degrade until staff
scheduled another site inspection.
The latest event, which prompted the "Significant Violation" action and this hearing before the
Council, occurred between June 9`n and June 15t° of this year. A citizen complaint.was received
regarding debris blowing down Prado Road from a pile next to the gate of the buyback center.
RALCCO staff was contacted and told to clean up the debris immediately. The pile was finally
cleaned up on June 15, 1999, six days after the complaint was received. This event, coupled with
other ongoing problems, led to the issuance of a notice of"Significant Violation" (Attachr*en1
Council Agenda Report—RALCCO Lease Issues
Page 2
II). A "Significant Violation" is defined in the lease as any violation of the terms, covenants and
conditions of the lease occurring and noticed more than two times in any calendar year, or,
violation and notice of violation of any three terms, covenants and conditions of the lease
occurring within any calendar year, or, failure to correct any violation within 90 days of the
notice.
Per Section 24. Enforcement of the lease, RALCCO was to submit a report outlining the cause of
the violations and corrective measures to be taken to remedy the violations and prevent their
recurrence within 30 days of the date of notice. Attachment III is a copy of the report response
provided by RALCCO. Per Section 24, since the violations constituted a significant violation, the
Council is to consider and determine the appropriate remedies up to and including termination of
this lease as defined under Section 20, Termination for Cause, of the agreement.
Violations of Lease Terms and Conditions
The following is a recap of the violations, listed by the section in the lease, and a summary of
RALCCO's response to the violations:
• Section 7. Use of Property
Term of Lease: Under no circumstances shall the property be used for processing, storage or
transfer of materials purchased or collected from other locations.
Violation. During a discussion regarding recycling at Cal Poly at the May 12, 1999 SLO County
Integrated Waste Management Authority Board(IWMA) meeting, Mr. Shipley stated that
RALCCO is bringing material from Cal Poly to the 45 Prado Road facility for processing.
Summary of RALCCO's Response: RALCCO's response to the violation did not specifically
respond to the processing, storage or transfer of material from Cal Poly. The response refers to a
definition of a transfer station and wet garbage; excluding persons or groups from outside the
City to use the facility, criticism of Council Member Romero's comments at an IWMA meeting;
and mention of the closure of Grover Recycling in Grover Beach.
Analysis: RALCCO's reference to a garbage transfer station, excluding persons from outside
the city limits from using the facilities and the other issues raised in the response do not apply to
the violation. The intent of this section of the lease is to specifically prevent activities, other than
the buyback operation,which could cause excessive materials to accumulate at the facility.
Specifically, transferring or processing materials collected curbside or under contract from other
jurisdictions at the 45 Prado Road site is expressly prohibited. Buy back of materials from
residents outside of the City is not prohibited. The aggressive nature of the response does not
address the proposed violation of this section of the lease.
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Council Agenda Report—RALCCO Lease Issues
Page 3
• Section 10. Maintenance of Property
Term of the Lease: Lessee shall maintain property in a clean, orderly and first class condition
at all times, satisfactory to the City Administrative Officer or his/her designee.
Violation. The most recent violation of this section occurred on 6/9/99 when it was observed
and documented that materials had been left outside the fence on Prado Road. RALCCO staff
was notified and clean up finally occurred on 6/15/99. The condition of leaving material outside
the fence is also a violation of Section 7 which states all stored materials shall be properly
bundled, crushed and/or bailed prior to storage so as to eliminate any off-site migration. This
condition is also a violation of Municipal Code sections 8.04.020 and 8.08.080
Summary of RALCCO's Response: RALCCO placed blame for the situation on the City and
San Luis Garbage Company (SLG) for charging for the collection of cardboard therefore forcing
people to drop off the cardboard after hours in front of their facility. RALCCO has four"No
Dumping' signs posted and has instituted an education program to inform its customers
regarding leaving materials outside the fence.
Analysis: It appears that RALCCO has taken steps to control the situation. It is staff's
contention that the 6/9 to 6/15 episode should have been remedied in a more timely manner.
Additionally,the comment that the increase in drop off activity is the fault of the City and SLG is
not supported by the monthly cardboard tonnage reports provided SLG. Cardboard collection
tons are up by about 40%over the last year during the period of January through July.
• Section 11. Control of Material
Term of Lease: Materials received shall be processed, bailed, or otherwise stored to ensure
control of said materials the same day the materials are received.
Violation. Because material was left outside the fenced area, it has been determined that the
material was not in RALCCO's control as stipulated in this section. Additionally, the
Wastewater Division Manager has complained of materials such as plastic bags migrating into
the adjoining Water Reclamation Facility on an ongoing basis.
Summary of RALCCO's Response: RALCCO contends that the material is not their
responsibility because in any business transaction, ownership of and control of materials is never
taken until the company formally accepts it. They go on to state that they patrol the area outside
the fence on a daily basis and bring in the material and bail or containerize the material
immediately. RALCCO found it impossible that plastic bags could migrate west to the Water
Reclamation Facility (the facility is actually located to the east).
Analysis: Mr. Shipley's responding statement of"since we never formally accepted any
materials left outside of our fence,we therefore would not be responsible for control of the
material" is not an acceptable response or a responsible business assertion from staff's 3
perspective. During the most recent event, material sat outside the fence for six days and a pW
Council Agenda Report—RALCCO Lease Issues
Page 4
of cardboard was observed (inside the facility)not bailed until the second week of August. The
materials effecting the wastewater facility do regularly migrate to the east and require that the
Facultative Supernatent lagoon mixer be cleaned of bags and other migrating debris regularly in
order to function properly.
6 Section 15. Reporting
Term of the Lease: Lessee shall provide at a minimum a report of total tonnage of recyclable
materials processed, breakdown of material tonnage's by material type and City of origin.
Reporting shall be provided on a quarterly basis.
Violation: One report which was incomplete was received in October 1997.
Summary of RALCCO's Response: RALCCO.stated that this was an oversight and that they
would provide a report starting immediately.
Analysis: As of the writing of this agenda report, no report has been received from RALCCO.
Other Issues
Rent Payment- RALCCO rent payment for June 1999 was paid 30 days.late.
Hazardous Waste Storage- Section 12 of the lease which deals with the handling of hazardous
waste specifically states that the Lessee is responsible.for-the immediate legal and proper
disposal of any hazardous waste inadvertently received at the site. During a site inspection, staff
discovered a 55 gallon drum of unidentified material, as well as several.5 gallon buckets of
motor oil. The matter was turned over to the Fire Department for enforcement and resolution.
General Site Condition- Since the initial clean-up of the site after assuming the lease from
ECOSLO, little has been done to enhance the appearance and condition of the facility. Some
fencing modifications were made but there is still rusting equipment and miscellaneous debris
along portions of the fence line.
Working.Relationship-As stated earlier,RALCCO seems to respond best when pressured to do
so by staff in.matters regarding site condition. The latest response (Attachment III) is very
aggressive in tone and is not conducive to resolving the lease violation issues, and for the most
part failed to address the noticed violations. This makes it difficult for staff.to maintain a
positive working relationship with RALCCO.
Summary
Though the overall condition of the facility has improved since RALCCO took over the lease, it
is not in a clean, orderly and first class condition as the lease states it should be: Staff does not
believe that RALCCO's response to the most recent violations is adequate or appropriate and
does not address the stated violation§at the site: The response is combative rather than.
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Council Agenda Report—RALCCO Lease Issues
Page 5
cooperative in tone. Staff is concerned that RALCCO has not demonstrated willingness to
resolve the problems so future violations do not reoccur.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ALTERNATIVES
Alternative 1.
Direct staff to terminate the lease with RALCCO for the property located at 45 Prado Road and
request all buildings, equipment and material be removed in a timeline established by the
Utilities Director.
The advantage of this alternative is that it would provide the City an opportunity to search out a
new responsible, qualified buyback facility operator. The disadvantage is that there would be an
interruption of service at the facility unless an interim operator was found. Staff could support
this alternative and in fact staff grappled with this as a possible recommendation. If this
alternative is selected, Council should authorize staff to enter into an agreement with an interim
operator while fording a viable recycling organization or company to lease and operate the site.
Alternative 2.
Following correction of all currently noticed violations by RALCCO, require RALCCO to
remove all equipment and debris not being utilized by or related to the buyback operation
immediately. Authorize the Utilities Director to terminate the lease if any future violation of the
terms and conditions of the lease occurs in accordance with the Termination for Cause and
Enforcement sections of the lease or if RALCCO fails to remove the equipment and debris in a
time frame set forth by the Utilities Director.
The advantage of this alternative is that the equipment and debris currently at the site will be
removed. The disadvantage of this alternative is without the plan and timeline included in the
staff recommendation, the site would most likely remain in its current condition. Because the
site would remain more or less in its current state,this alternative is not recommended.
ATTACHMENTS
Attachment I- RALCCO's Lease Agreement
Attachment II-Notice of Significant Violation
Attachment III-RALCCO's Response to the Notice of Significant Violation
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AMCMff= I
LEASE OF REAL PROPERTY
45 PRADO ROAD- APN 53-05145
This lease, made and entered into this 17 day of .Tune ,
1997 by and between the CITY OF SAN LUIS OBISPO (hereinafter
"City") a municipal corporation, and the ENVIRONMENTAL CENTER OF
SAN LUIS OBISPO (hereinafter "Lessee") , a community based non-
profit organization.
WITNESSETH:
WHEREAS, the parties hereto desire to enter into an agreement
whereby the City will lease to Lessee approximately 23 .450 square
feet of the City' s real property located at 45 Prado Road and
known as a portion of APN 53-051-45, San Luis Obispo County,
California; and,
WHEREAS, the Council of the City of San Luis Obispo has
determined that the lease of said property to Lessee will provide
public benefit indirectly through the operation of a recycling
center and directly through consideration paid as rent;
NOW, THEREFORE, in consideration of the promises and agreements,
covenants and conditions stated herein, the parties agree as
follows:
1. PREMISES LEASED
City leases to Lessee that portion of APN #53-051-45, real
property as shown on Exhibit A to this lease, subject to any
rights and/or easements as may be legally recorded with the
County Recorders Office for the County of San Luis Obispo.
2 . TERM
The term of this lease shall commence on July 1, 1997, and extend
for a period of five (5) years.
3 . RENEWAL
Renewal of this lease shall be at the sole discretion of the
City. No warranties or assurances as to the renewal of this
lease are either express or implied. Should Lessee desire
renewal of this lease, Lessee shall notify the City in writing of
their desire for renewal no more than one (1) year and no less
than six (6) months in advance of the date of expiration.
Should renewal of this lease be denied by the City, or at such
time as this lease expires, lessee shall remove all personal
property from the premises and return said property to its
original condition as requested by the City.
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ECOSLO Lease- APN#53-051-45
Page 2
4. RENTAL
Lessee shall pay the City rent in the amount of _ 700 . 00_ per
month for use of said property as a recycling buy-back center
limited to the purposes as described herein. Lessee further
agrees' to provide recycling buy-back and environmental education
services to the City and community as a public benefit at no
charge to the City. Payment of such rent shall be due and
payable, in-advance, on the first day of each month without
offset or deduction. Rent for any period during the term hereof
which is for less than one month shall be prorated based upon the
actual number of days of the calendar month involved.
5. UTILITIES
Lessee shall make all arrangements for any payment due for all
utilities and services furnished to or used by Lessee on the
leased premises, including, without limitation, gas, electric,
water, sanitation, telephone service, and trash collection. This
includes any and all costs for connection charges. The City
assumes no responsibility and makes no warranties regarding any
utilities, and Lessee hereby holds the City harmless in this
regard.
6. PROPERTY OR POSESSORY INTEREST TAS
If this lease should result in the assessment of taxes for this
real property, including, but not limited to, possessory interest
tax, Lessee shall be solely responsible for payment of such
taxes. Upon execution of this lease and/or any subsequent
approval of assignment of this lease, the City shall notify the
Tax Assessor' s Office for the County of San Luis Obispo of the
lease agreement, the parties involved, and the terms of the
lease. Failure to pay any and all taxes required herein shall be
considered a default of this agreement and may result in
termination for cause as identified in Section 20 of this lease
agreement.
7. USE OF PROPERTY
Lessee shall be entitled to use said property solely for the
purpose of operation of a recycled product buy-back center, and
for no other purpose. Operation of the center shall consist of
purchase of recyclable materials from the general public,
processing of materials so purchased and/or collected by Lessee
at the center, and storage and transfer of those processed
recyclable materials from the center. Purchase, collection
and/or storage of white goods, scrap metals, and other large
items typically collected for salvage or scrap is expressly
prohibited. Under no circumstances shall the leased property be
used for purposes other than those described herein. Under no
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ECOSLO Lease-APN#53-051-45
Page 3
circumstances shall the property be used for processing, storage
or transfer of materials purchased or collected from other
locations . Materials storage shall only be allowed to the extent
that it can be reasonably accommodated within the boundaries of
the leased property, does not interfere with the orderly flow of
traffic through the buy-back area, does not exceed the height of
the perimeter fencing, or otherwise interfere with the operations
and appearance of the site. All stored materials shall be
properly bundled, crushed and/or bailed prior to storage so as to
eliminate any off-site migration.
8. ALTERATIONS AND REPAIRS
Lessee shall be responsible for any and all alterations or
repairs to the property necessary for the orderly conduct of
Lessee' s operations . Lessee shall provide to the City for
approval, prior to commencement of any work or activity,_ a
complete description of any physical alteration of the property
including: modifications to fencing, construction of structures,
outbuildings, sheds, installation of concrete, paving,
excavations, landscaping, plumbing and similar improvements or
alterations. Lessee further agrees to remove and return to
original, any alterations to said property made by Lessee as
requested by the City upon termination of this Lease at Lessee' s
sole cost. Lessee shall be responsible for any and all repairs
of said property and improvements there-on. Any and all
improvements or alterations to said property shall be made in
conformance to applicable laws and requirements. Lessee shall be
responsible for obtaining any necessary permits and the cost of
such permits as may be necessary to complete the improvements
and/or alterations.
9 . DESCRIPTION OF ORIGINAL PROPERTY CONDITION
For the purpose of sections 3 and 8 of this lease agreement, the
original condition of the leased property is described as;
Unimproved commercial property with soil surfaces and limited
asphalt. Perimeter fencing consisting of 6 foot chain link with
redwood slats and three chain link access gates located on the
northern (one) and western (two) sides of the property. No other
physical improvements or modifications to the property shall be
considered as original. All improvements, structures, trailers,
equipment etc. not expressly described in the foregoing
description of original property condition shall be removed by
Lessee, at the sole cost of Lessee, upon request by the City or
upon termination or expiration of this lease.
10. MAINTENANCE OF PROPERTY
Lessee shall maintain property in a clean, orderly and first
class condition at all times, satisfactory to the City
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ECOSLO Lease- APN#53-051-45
Page 4
Administrative Officer or his/her designee. Lessee shall
maintain adjacent properties free of litter resulting from
Lessee' s activities. Lessee shall at all times maintain property
in a manner consistent with any applicable federal, state, or
local laws and regulations, and in such a manner as to ensure the
protection of the public, Lessee' s employees and the environment.
11. CONTROL OF MATERIALS
Lessee shall be solely responsible for control of materials
received and/or processed at the property. Materials shall be
controlled in such a manner as to eliminate any off-site
migration of materials caused by wind, rainfall run-off, seepage,
etc. Materials received shall be processed, bailed, or otherwise
stored to ensure control of said materials the same day the
materials are received. No materials subject to migration shall
be left loose during non-business hours.
12. HAZARDOUS WASTE
Lessee shall be solely responsible for the proper storage and
disposal of any hazardous waste received or produced as a result
of Lessee' s operations. Lessee shall not knowingly receive or
store any hazardous waste, including but not limited to used
motor oil, on said property. Lessee shall be responsible for the
immediate legal and proper disposal of any hazardous waste
received, and any and all costs associated with the disposal of
said waste. Within 120 days of the execution of this lease,
Lessee shall present to the City Lessee' s Hazard Communication
Plan and Hazardous Waste Control and Disposal Plan for any
hazardous waste received and/or handled. The plan shall at a
minimum identify procedures and provide instruction to employees
in the event hazardous wastes are found on the premises or in the
recyclables in the possession of Lessee. The purpose of the plan
will be to ensure that any hazardous waste found and possessed by
Lessee is handled and disposed of in compliance with Federal,
State and local laws, rules and regulations. Lessee shall be
solely responsible and liable for any and all costs associated
with clean-up of any soil, water or other contamination resulting
from Lessee' s operations.
Lessee further waives and relinquishes any indemnification by or
from .City, express or implied, for any costs or liabilities
arising out of or related to the discharge, release, or presence
of any hazardous or toxic wastes, substance, or constituent, on ,
in, or from said property. Lessee shall indemnify, hold harmless
and defend City against and in respect of any and all liability ,
claim , loss, cost, damage, expense (including attorney' s fees
and remedial costs) , fine, penalty, suit, demand or other action,
including but not limited to those matters related to death,
dismemberment or other injury to any person, asserted against
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ECOSLO Lease-APN#53-051-45
Page 5
City resulting from, arising out of, related to or in conjunction
with the (i) release by Lessee, its agents, contractors,
employees or assigns from or upon said property, of any hazardous
or toxic substance, waste, constituent or other substance into
the environment; (ii) any arrangement by Lessee, its affiliates,
or agents for the treatment, recycling, storage or disposal at
any facility owned or operated by any person or entity of a
hazardous or toxic substance which has been or may be deposited
at, disposed on or released onto said property; and (iii) cleanup
or other remedial measures with regard to environmental pollution
caused by Lessee, its affiliates or agents, which may be required
by any governmental agency pursuant to federal, state or local
statutes or regulations, including without limitation, the
Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, 42 U.S.C. 9601 et sea. ("CERCLA") .
13 . TRAFFIC CONTROL
Lessee shall be responsible for control of traffic related to
Lessee' s operations. Lessee shall establish adequate controls,
traffic flow, parking, and materials transfer locations and
procedures so as not to interfere with the flow of traffic on
Prado Road, the Water Reclamation Facility (WRF) access road, the
operations of the City Corporation Yard and the Prado Day Center.
Lessee shall provide and maintain the controls, clearances and
visibility necessary to ensure the safe and orderly ingress and
egress of the public, employees and contractors to and from said
property. All materials, vehicles and equipment shall be
properly stored or parked within the fenced boundaries of the
leased property. No materials, vehicles or equipment shall be
stored or parked on the WRF access road. Lessee' s operations
related to the transfer and loading of materials for transport
shall be conducted in such a manner and at such times as to not
interfere with the orderly flow of traffic in and around the
property. No loading of materials shall occur on the WRF access
road during normal hours of operation of the City transit system
(currently Sept . through June, 6 :30 am to 10 :30 pm; July through
August, 6:30 am to 7 :30 pm. , times subject to change at the sole
discretion of the City. ) Lessee shall at all times ensure a
minimum clearance of twenty (20) feet of available roadway for
Fire access on the WRF access road.
14. COORDINATION WITH CITY
Lessee shall coordinate with the City any activities which have
potential to impact in any way City operations . Upon
notification by the City, Lessee shall immediately cease any
operation deemed to interfere with the conduct of the orderly
business of the City in its operations.
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ECOSLO Lease-APN #53-051-45
Page 6
15. REPORTING
Lessee shall provide to the City reporting necessary for the City
to evaluate compliance with the provisions of AB939 . Lessee
shall provide at a minimum a report of total tonnage of
recyclable materials processed, a breakdown of material tonnage' s
by material type and City of origin. City of origin may be
determined by bi-annual surveys of not less than one week in
duration. Surveys shall be completed in February and August of
each year. Reporting shall be provided on a quarterly basis with
reports due no later than 15 calendar days after the end of the
quarter. Quarters end on March 30, June 30, Sept 30, and Dec.
30 . Lessee further agrees to provide the City any additional
reports or information requested by the City relative to Lessee' s
operations.
16. PERMITS
Lessee shall maintain any and all permits necessary for the
conduct of the Lessee's business at the site as required by Law,
including but not limited to; General Industrial Stormwater
Discharge Permit for recycling operations issued by the
California Regional Water Quality Control Board, appropriate
permit (s) issued by the California Division of Recycling, and a
City Business License. Lessee shall provide to the City copies
of all permits necessary for the conduct of Lessee' s business at
the site. Failure of Lessee to obtain the necessary permits and
provide copies to the City within 60 days of the commencement of
this lease and/or notification of Lessee of the requirement to
obtain such permits may be considered cause for termination of
this lease as identified in Section 20 of this lease agreement.
17. INDEPENDENT CONTRACTOR
Lessee and all of its agents, representatives, employees, assigns
and participants in any manner with Lessee's operations shall be
independent contractors or volunteers for Lessee and shall not
for any purpose be considered as employees or agents of City.
18. SUBJECT TO ALL LAWS AND BINDING
This lease shall be subject to .and subordinate to all laws, rules
and regulations of the State of California and the City of San
Luis Obispo, including any and all conditions imposed by the City
Council.
19. TERMINATION
City may terminate this lease at any time by giving Lessee 120
days written notice that the Council for the City of San Luis
Obispo has determined that the use of said property is required
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ECOSLO Lease-APN #53-05145
Page 7
for municipal purposes and such use would be incompatible with
the continued use of the property by Lessee. The City shall hold
no obligations to Lessee for any loss by Lessee resulting from
such termination consistent with the notice provisions contained
herein.
20 . TERMINATION FOR CAUSE
Each of the terms, covenants and conditions of this lease are
mutual and dependent, and any breach of any of the said terms,
covenants or conditions shall constitute grounds for the
termination, cancellation or forfeiture of this lease for cause.
City may terminate this lease immediately for cause at any time
by giving written notice to Lessee. "Cause" shall include a
material default and breach of any of the terms, covenants and
conditions of this lease by Lessee and shall include, but not be
limited to:
a. Failure to pay rent or other payment required hereunder;
b. abandonment of said property;
c. Failure to maintain the required insurance;
d. Failure to obtain all required permits;
e. Failure to pay any tax as required by law.
f . A significant violation of the lease as defined in section
24 of this agreement.
21. INDEMNIFICATION
Lessee shall defend, indemnify and save harmless the City and its
agents, officers and employees against any and all claims,
demands, damages or liabilities (whether or not caused by
negligence) including civil or criminal fines, arising out of or
relating to any of the following:
a. any damage, injury or death suffered by any person or
corporation and caused by any act or omission of Lessee, its
agents, employees, tenants, invitees or assigns under this
agreement;
b. any damage caused by any act or omission of Lessee, its
agents, employees, tenants or assigns under this agreement
to any property of the City and its agents, officers and
employees;
c. any damage, injury or death suffered by any agent, tenant,
or assignee of Lessee under this agreement, except for
claims and demands resulting from the sole negligence or
willful misconduct of the City and its agents, officers and
employees;
d. Lessee' s violation of any law, any regulation or any term
or condition of any permit.
e. any generation, processing, handling, arranging,
transportation, storage, treatment or disposal of solid
wastes or hazardous wastes by Lessee.
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ECOSLO Lease-APN#53-05145
Page 8
f . any releases by Lessee, including but not limited to any
releases as defined under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, to the
extent occurring or existing as a result of.Lessee' s
activities, including such releases to land, groundwater
surface water or into the air.
Lessee shall also defend, indemnify and save harmless the City
and its agents, officers and employees against any and all
expense of investigating and defending against such claims and
demands, including, but not limited to, attorney' s fees and
costs.
21. INSURANCE
Lessee shall provide insurance, including but not limited to
workers compensation insurance as described in Exhibit B to this
lease, Insurance Requirements for Lessees including additional
coverage for Automobile liability and Subcontractors as
identified in Exhibit C to this lease, Insurance Requirements of
Contractors.
22. ASSIGIDIENT
No transfer, sublet, or assignment of the rights or obligations
under this agreement shall be made by Lessee without the prior
written consent of the City. Further, only the Environmental
Center of San Luis Obispo County (ECOSLO) as the initial lease
holder, shall have any right or authorization to assign this
lease. It is understood that ECOSLO, the initial lease holder,
intends to assign its rights and obligations under this lease and
that approval of such assignment shall be at the sole discretion
of the City. It is further understood that the City does not
intend this lease of certain real property to be further
transferable to any other party after any transfer or assignment
by ECOSLO approved by the City.
Subsequent to transfer or assignment of this lease by ECOSLO, all
other terms and conditions of this lease shall be binding in full
force and affect upon the new lease holder/assignee. At such time
as this lease is assigned or transferred, ECOSLO shall no longer
retain any material interest in the use or lease of said
property.
No interest of Lessee in this lease shall be assignable by
operation of law. Each of the following acts shall be considered
an involuntary assignment :
a. If Lessee is or becomes bankrupt or insolvent, makes an
assignment for the benefit of creditors;
b. If a writ of attachment or execution is levied on this
lease;
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ECOSLO Lease-APN#53-051-45
Page 9
c. If, in any proceeding or action in which Lessee is a party,
a receiver is appointed with authority to take possession of
the premises .
Any involuntary assignment shall constitute a default by Lessee
and City shall have the right to elect to terminate this lease.
23 . INSPECTION
The City shall have the right at all reasonable times to enter
upon the property for the purpose of inspecting the same,
determining that all the terms, covenants and conditions of this
lease are being kept and performed by Lessee.
24. ENFORCEMENT
The City Administrative Officer or his/her designee shall have
all necessary authority to enforce the terms, covenants and
conditions of this lease. Upon notice of violation of any of the
terms, covenants and conditions of this lease, Lessee shall take
whatever actions are necessary to correct the violation. All
violations shall be corrected within 30 days from the date of
Notice and Lessee shall provide to the City a report outlining
the cause of the violation and corrective measures taken to
remedy the violation and prevent its recurrence.
Significant violation shall be defined as any violation of the
terms, covenants and conditions of this lease occurring and
noticed more than two times in any calendar year, or, violation
and notice of violation of any three terms, covenants and
conditions of this lease occurring within any calendar year, or,
failure to correct a violation of any of the terms, covenants and
conditions of this lease within 90 days from the date of Notice.
Significant violations as defined herein will result in a hearing
before the Council of the City of San Luis Obispo to determine
appropriate remedies up to and including termination of this
lease as defined under section 20 . of this agreement.
25. LIENS
Lessee shall keep the premises free from any liens arising out of
any work performed for, materials furnished to, or obligations
incurred by Lessee and shall hold City harmless against the same.
26. APPEALS
All decisions, directions and notice by the City Administrative
Officer or his/her designee, relative to the terms, covenants and
conditions of this lease, shall be considered final by Lessee.
Appeals may be presented to the Council of the City of San Luis
Obispo, which decisions, directions and notice shall be final.
2-14
s
ECOSLO Lease - APN #53-051-45
Pacye 10
27 . NOTICE
Any notice required or permitted to be given or served under the
terms hereof shall be considered delivered when sent registered,
return receipt requested, through the United States mail to:
City Lessee
City Administrative Officer Aslanidis Corporation
City ui San Luis Obispo (DBA) RALCCO
990 Palm Street Attn. Steve Aslanidis
San Luis Obispo, CA 93401 P.O. Box 1170
(805) 781-7114 Nipomo, CA 93444
(805) 343-2289
28, WAIVER, VOLUNTARY ACTS
No Waiver of any default shall constitute a waiver of any other
breach or default, whe ler of the same or any other covenant or
condition. No waiver, benefit, privilege, or service voluntarily
given or performed by either party shall give the other any
contractual right by custom, estoppel or otherwise . The
subseauent acceptance of rent pursuant to this lease shall not
constitute a waiver of any preceding default by lessee other than
default in the payment of the particular rental payment so
accepted, regardless of City' s knc-:-,_edge of the preceding breach
at the time of accepting the rent, nor shall acceptance of rent
or any other payment upon termination constitute a reinstatement ,
extension, or renewal of the lease or revocation of any notice or
other act by City.
29. NUISANCE
Lessee shall not commit or suffer to be committed any nuisance ,
waste, or unlawful act in or about the premises, including but
not limited to excessive noise, light , glare, dust , litter or
odor .
30. ATTORNEY' S FEES
The prevailing party in any action between the parties to this
agreement brought to enforce the terms of this aareemer-t may
recover from the other party its reasonable costs and attorney' s
fees in connection with such an action.
31 . ENTIRE AGREEMENT
This lease and attached Exhibits A, B and C contains the entire
agreement of the parties on the matters covered and it may not b
modified except by written agreement .
2-15
ECOSLO Lease- APN#53-051-45
Page 11
IN WITNESS WHEREOF, the parties hereto have executed this
agreement by their proper officers duly authorized, on the date
first above written.
CITY OF SAN LUIS OBISPO, ENVIRONMENTAL CENTER OF
a Municipal Corporation SAN LUIS OBISPO COUNTY
6 / 7
Mayor A en le El(rZ.
AT 'Es A�R�7a�
Cit C1 rc &&onnie L. Gaw£
nd
By K' on, Asst. City Clerk
APPROVED AS TO FORM:
rr A e
Assigned by:
ENVIRONMENTAL CENTER OF
SAN LUIS OBISPO COUNTY
(E�u T7VE Date:
'D/l�EG7D�
Assigned to:
RALCOOFNRECYLING
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1�epse
1San l.IUS OB1SPO 45 Prado Rd.
Puhlic: Works Deoarfinenf I . .. . . _-. .. -- - - . - -
t_a Exhibit B
INSURANCE REQUIRENIENTS FOR LESSEES (NO AUTO RISKS) .
Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons
or damages to property which may arise from or in connection with the Lessee's operation and use of the leased
premises. The cost of such insurance shall be borne by the Lessee.
)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. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance
(for lessers with employers).
3. Property insurance against all risks of loss to any tenant improvements or betterments.
Minimum Limits of Insurance
Lessee shall maintain limits no less than:
1. General Liability: $1,000,000 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 project/location or the general aggregate limit shall be twice
the required occurrence limit.
2. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
3. Property Insurance: Full replacement cost with no coinsurance penalty provision.
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,
eithen the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its
officers, officials, employers and volunteers; or the Lessee shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability policy is to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials,employees, agents and volunteers are to be covered as insureds as respects:
liability arising out of premises owned, occupied or used by the Lessee. The coverage shall contain no
special limitations on the scope of protection afforded to the City, its officers, official, employees, agents
or volunteers.
2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials,
employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers,
officials, employees, agents or volunteers shall be excess of the Lessee'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, its officers, officials, employees, agents or volunteers.
4. The Lessee's insurance shall apply separately to each insured against whom claim is made or suit is
brought, except with respect to the limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty(30)days'
prior written notice by certified mail, return receipt requested, has been given to the City.
Acceptahility of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
Verification of Coverage
Lessee shall furnish the City with a certificate of insurance showing maintenance of the required insurance
coverage. An original endorsement effecting general liability coverage required by this clause is also to be
provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf.
All endorsements are to be received and approved by the City before the lease commences.
2-18
L.r
Exhibit C
INSURANCE REQUIREMENTS FOR CONTRACTORS
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to
. persons or damages to property which may arise from or is connection with the performance of the work hereunder
by the Contractor, his agents, representatives, employees or subcontractors.
Nfinimtun Scope of Tneurance
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 C001 (Ed. 1/S7) covering Automobile Liability, code 1 (any
auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
1lfinimnm Limits of Insurance
Contractor shall maintain limits no less than:
1. Geoeral Liability: S1,000,000 per occurrence for bodily injury, personal injury and property damage.
If Commercial General Liability or other form with a general ag,-re.ata limit is used, either the general
aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice
the required occurrence limit.
2. Automobile Liability: 51,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: 51,000,000 per accident for bodily injury or disease.
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
officers,officials,employees and volunteers;or the Contractor shall procure a bond guaranteeing payment of losses
and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability a.-td automobile liability policies are to contain, or be endorsed to contain, the following
provisions:
1. The City,its officers, officials,employees, agents and volunteers ate to be covered as insureds as respects:
liability arising out of activities performed by or on behalf of the Contractor; products and completed
operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned
Ieased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as
respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-
insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess
of the Contractor'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 tho City, its officers, officials, employees, agents or volunteers.
4. The Contractors insurance shall apply separately to each insured against whom claim is made or suit is
brought, except with respect to the•limits of the insurer's liability.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided,cancelled by either party, reduced in coverage or in limits except after thirty(30)days'
prior written notice by certified snail, return receipt requested, has been given to the City.
Accentahility of Insurers
Insurance is to be placed with iosur_rs with a current A.M. Best's rating of no less than ANE.
Verification of ('nver'aze
Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements
effectin3 general liability and automobile liability coverage are also required by this clause. The endorsements are
to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
�� $ubcnntractnra
Contractor.sball include all subcontractors as insured under its policies or shall furnish separate certificates and
endorsements for each subcontractor. All coverages for subcontractors shall be suhject to all of the r9equ tncats
stated herein.
A7TACHI4M II
����I�Inili�Nfllllllll������ III�I►����III ���
City Of SAn tuis OBISPO
955 Morro Street • San Luis Obispo, CA 93401
June 14, 1999
Mr. Greg Shipley
Ralcco Recycling
PO Drawer 1170
Nipomo, CA. 93444
Subject: Notice of Significant Violation at 45 Prado Road
Dear Mr. Shipley:
It has come to my attention that there are several problems associated with the terms and
conditions of Ralcco's lease at 45 Prado Road. Per Section 24. Enforcement, this
correspondence is a notice of significant violation which is defined in the lease as a notice
of violation of any three terms, covenants and conditions of the lease occurring within
any calendar year.
The following violations have been documented and are ongoing:
Section 7. Use of Property
Violation. During a discussion regarding recycling at Cal Poly at the May 12, 1999 SLO
County IWMA board meeting,you stated that Ralcco is bringing material from Cal Poly
to the 45 Prado Road facility for processing. The lease clearly states: Under no
circumstances shall the property be used for processing, storage or transfer of materials
purchased or collected from other locations.
Section 10. Maintenance of Property
Violation. It has been observed and documented that materials have been outside the
fence on Prado Road for several days first observed on 6/9/99. On 6/11/99 City staff
spoke with a Ralcco employee about the situation at which time he would was told the
material would be cleaned up immediately. As of 6/14/99 there was still a pile of debris
at the Prado Road entrance into the facility. The lease states: Lessee shall maintain
property in a clean, orderly and first class condition at all times, satisfactory to the City
Administrative Officer or his/her designee. The condition of leaving material outside the
fence is also a violation of Section 7 which states all stored materials shall be properly
bundled, crushed and/or bailed prior to storage so as to eliminate any off-site migration.
This condition is not acceptable at any time and is also a violation of Municipal Code
section 17.17.040.B.
OThe City of San Luis Obispo is committed to include the disabled in all of its services, programs and activitiefl;'—W
Telecommunications Device for the Deaf (805)781-7410.
Ralcco-Notice of Sign, ant Violation
Page 2
Section 11. Control of Material
Violation. Because material was left outside the fenced area, it has been determined that
the material was not in Ralcco's control as stipulated in this section. Additionally, the
Wastewater Division Manager has complained of materials such as plastic bags migrating
into the adjoining Water Reclamation Facility. The lease states: Materials received shall
be processed, bailed, or otherwise stored to ensure control of said materials the same day
the materials are received.
Section 15. Reporting
Violation. To date, the City has received only one report,which was incomplete, in
October 1997. Verbal reminders were given to Ralcco's past contact Stephen McGrath.
The lease states: Lessee shall provide at a minimum a report of total tonnage of
recyclable materials processed, breakdown of material tonnage's by material type and
Cityof origin. Reporting shall be provided on a quarterly basis... I suggest you review
this section of the lease for the specific reporting requirements.
Per Section 24. Enforcement, Ralcco must submit a report outlining the cause of the
violations and corrective measures to be taken to remedy the violations and prevent their
recurrence within 30 days of the date of notice. Failure to submit said report within that
time frame may result in termination of the lease. Additionally, since the above
mentioned violations constitute a significant violation, a public hearing will be scheduled
before the City Council of City of San Luis Obispo to determine the appropriate remedies
up to and including termination of this lease as defined under Section 20 of the
agreement.
If you have any questions, please contact Ron Munds,the designated lease administrator,
at 781-7258. If I can be of assistance,please call me at 781-7205.
Sincerely,
John Moss
Utilities Director
c: John Dunn, CAO
Jeff Jorgensen, City Attorney
2-21
Jul 15 99 11 : 03p Greo Shipley 805-239-0517 p. l
ATTACEEM III
Attention: Mr. John Moss Date: 7/15/99
Company: City of San Luis Obispo Number of Pages: 5
Fax Number: 781-7198
Voice Number: 781-7215
From: Greg Shipley
Company:
Fax Number: 805-239-0517
Voice Number: 805-239-8714
Subject: RALCCO
Comments:
Please find attached a letter sent to the City of San Luis Obispo in
response to their intention to terminate our lease on Prado Road.
If you have any comments or questions, please call 343-2289.
2-22
Jul 15 99 11 : 03p Gre+- Shipley 805-pa9-0517 p. 2
,:.
>.Ma1L•. 'PO:Draiuer 1170
® ® IiipoRmo,CA 93444
>Plant 80 aIcoa:Way
Nipomo;.;CA 93444
..::: .
Phone::.806-343-2289
>.Fax 806-343616
A Full Service Waste.C.grnpany ... Returnin97. A;Resourceful America
July 14, 1999
MR. JOHN MOSS
UnUTIES DIRECTOR
CITY OF SAN LUIS OBI8Po
955 MoRRo STREET
SAN LUIS OmsPo, CA 93401
RE: CITY'S NOTICE TO KICK RALCCO OUT OF SAN LUIS OBISPO
Dear Mr. Moss:
This is our response to your June 14th letter, noticing RALCCO of violating our lease for the 45
Prado Road facility. As you may or may not know, last week Grover Recycling in Grover Beach
closed it's doors. This leaves RALCCO as the sole operating buyback center for recycled
materials south and west of the Grade! By terminating RALCCO's lease, the City of San Luis
Obispo would deprive it's citizen's of a valuable resource to recycle, losing an entity that helps to
save the environment, and depriving the City itself of a means to meet it's commitment to the State
of California to comply with AB 939!
The City of San Luis Obispo has a moral, Ethical and fiduciary responsibility to it's citizens to
promote recycling and to divert at least 50% of it's waste stream from the landfill or be subject to
up to $10,000 per day in fines! How does the City believe that it's going to honestly meet these
goals by eliminating it's only recycling buyback center?
Please note the following discussion, addressing each violation cited;they are: .
1. SECTION 7. USE OF PROPERTY
e LEASE INFRACTION: 'The lease clearly states: Under no circumstances shall the
property be used for processing, storage or transfer of materials purchased or
collected from other locations.'
VIOLA77 "During a discussion regarding recycling at the May 12h SLO County
IWMA Board Meeting, it was noted that RALCCO brings material from Cal Poly to
the 45 Prado Road facility for processing.'
RALCCO's RESPONSE:We take issue with this interpretation and with the point that
the City considers Cal Poly a foreign element to the community.
• The lease is in reference to using the facility as a transfer station, which is
generally used to transfer garbage and residential trash (wet) from
garbage/residential routes by garbage truck to a centralized transfer station and
then shipped in large 'walling floor trucks to a landfill. Our 45 Prada Road
facility is not used for this purpose, it is a very traditional recyclinu: ck
center; which is not used to process materials either_. Therefore,_we _ a_t
i.:
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Jul 15 99 11 :03p Grp- Shipley 805-239-0517 p. 3
RALCCO
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July 1 14,, 199
this section of the lease has nothing what so ever to do with accepting materials
from Cal Poly.
• The more disturbing point of this discussion is that the City of San Luis Obispo
would purposely try to shut out anyone from surrounding addresses outside of
the virtual city limits. This is an irresponsible and morally bankrupt position.
RALCCO will actively pursue and encourage anyone and everyone to
recycle at our facilities.
• Mr. Romero, San Luis Obispo City Councilman and City representative on the
IWMA Board (of which he was recently the Chairman) started the discussion in
point by attacking the recycling effort at Cal Poly and that RALCCO (waste
contractor for Cal Poly) was derelict in it's duty to recycle at Cal Poly. Besides
the fact that Cal Poly has THE highest rate of waste stream diversion in the
County at 43%, 1 got up to defend RALCCO's recycling effort at Cal Poly and
mentioned that '—we encourage groups from Cal Poly to have recycling drives
to raise money and help with the recycling effort ... a win-win for all concerned!”
Mr. Romero appears to have a conflicting view of this situation: 1) on one hand,
he wants Cal Poly to recycle more from the IWMA side and then, 2) appears to
be the source that referred RALCCO to the City for trumped up violations and
subsequent expulsion for helping Cal Poly recycle! Isn't that curious?
• Ironically, I learned at a recent Cal Poly Environmental Meeting that money
raised by the students from such activities as recycling is directly contributed to
the City of San Luis Obispo for it's mass transportation fund in the amount of
approximately $175,000 per year! By stopping students from such activities as
recycling at RALCCO's Prado Road facility, the City is actually undermining
another means of keeping helping the environment. Where would the City or
Cal Poly make up the budget deficit?
• In addition, at today's (July 14") IWMA meeting, Mr. Romero vigorously argued
for the County to cite RALCCO for violations of zoning infractions resulting in the
elimination of RALCCO's operation in Nipomo! Later in the discussion, Mr.
Romero even mentioned that "...he did not think the County would be
competitively hurt if RALCCO went out of business!' It appears to me that Mr.
Romero has a hidden agenda and is using his considerable influence with any
and all government entities that regulate or otherwise control RALCCO's very
existence! . It is my opinion that the City would be ill-advised to be a party to a
systematic elimination of RALCCO as a competitive force for the County's waste
stream. This position would place the County in a situation that would
jeopardize competition, where SLO Garbage and all of its subsidiaries would
have a monopolistic vantagepoint south and west of the Grade for the entire
waste stream! Anytime there is a monopoly, prices always go up. Is that what
the City of San Luis Obispo would like to see happen to San Luis Obispo
County?
• In today's IWMA meeting, the issue of Grover Recycling's absence from the
recycling buyback arena will be studied by staff and it's recommendations be
brought back for discussion regarding opening up RALCCO's San Luis Obispo
Prado Road facility to all SLO County residents.
2. SECTION 10. MAINTENANCE OF PROPERTY
e LEASE INFRACTION: 'The lease clearly states: Lessee shall maintain property in a
clean, orderly and first class condition at all times." In addition, Section 7 states: 'all
stored materials shall be properly bundled, crushed and/or bailed prior to sOwUsso
� w t.[. ,....... .-.:.. .X . _..:.•.. ..-.. ... - i:..i ;•1...�rY.�;Y.4i• .r:::iC'. .'�':nlX:.•' :Y�3' .Var Yt. .ti.yy�.yY:
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Jul 15 99 11 : 04p Greg Shipley 805-239-0517 p. 4
RAWC
+--c• •'�2 :.1'wTiT J �']. . `R.�.x v`.. , !c~ y x .n-i'M G��:_. 91Y•y> "'r 4t, ja".< —..!.'Y�l hj:i. •%,GZiv;—< A r. ..+
S"?.v-�'�`S N--1
July 14, IS
as to eliminate any off-site migration." Your letter further states: "This condition is
not acceptable at any time and is also in violation of Municipal Code section
17.17.040.B."
VIOLATION: "It has been observed and documented that materials have been
outside the fence on Prado Road for several days first observed on 619/99. On
6/11/99 City staff spoke with a RALCCO employee about the situation at which time
he was told the material would be cleaned up immediately. As of 6/14/99 there was
still a pile of debris at the Prado Road entrance to the facility."
RALCCO's RESPONSE: The problem started when the City of San Luis Obispo
allowed SLO Garbage to charge commercial accounts for hauling away cardboard.
Previously, the Garbage Company wanted the cardboard for its commodity earning
potential. Although it may be more cost affective to simply through the cardboard
into the trash, some cardboard accounts have determined that it's environmentally
detrimental to fill the landfill with such a great recyclable material. Therefore,
people have been leaving cardboard outside of our gates after closing with the
notion that it would be recycled instead of thrown into the landfill. At that time, many
people driving by our facility noticed the cardboard and, unfortunately, thought that
we were taking other materials. This situation did become somewhat burdensome.
One of our employees attempted to make the situation a little more cleaner by
putting a bin outside during the period in May outlined in your letter. This only
provided additional incentive for those people trying avoid their own landfill costs
and was quickly discontinued. We have four `NO DUMPING" signs posted and
have gone through an extensive re-education process with our customers on the
matter of leaving materials in front of the fence. We still get some people leaving
materials there, but it is immediately brought into the yard and the front entrance to
the facility on 45 Prado Road is always kept clean. Since we cannot control
people's behavior, RALCCO would appreciate some help from the City to patrol this
area after hours. How does the City handle a similar situation with entities other
than RALCCO?
3. SECTION 11. CONTROL OF MATERIAL
e LEASE INFRACTION:'The lease clearly states: Materials received shall be processed,
bailed, or otherwise stored to ensure control of said materials the same day the
materials are received."
yLpLArroN: `Because material was left outside the fenced area, it has been
determined that the material was not in RALCCO's control as stipulated in this
section. Additionally, the Wastewater Division Manager has complained of
materials such as plastic bags migrating into the adjoining Water Reclamation
Facility."
RALCCO's RESPONSE: In any business transaction, ownership and control of
materials is never taken until the company formally accepts it. Since we never
formally accepted any materials left outside of our fence, we therefore would not be
responsible for control of the material. However, once we have finished patrolling
the public grounds surrounding our fenced facility everyday, we have accepted the
material and it is properly baled or containerized immediately. In addition, upon
inspection, you will notice that the RALCCO facility is kept in a neat manner and all
materials are properly stored in appropriate containers at the end of each day.
RALCCO does not accept plastic bags for recycling, there is not a market for that
material. If someone brings cans or other recyclables to the yard in a plstic b g,
that bag is immediately put into a 3-yard bin for disposal. I find it implau1bi2 'INat
..i A
Jul 15 99 11 : 05p Greg Shipley 805-239-0517 p. 5
R6iiR.=
July 14 y ', 199
any materials from 45 Prado Road facility would "migrate" west to the water facility
against prevailing winds. However, we will monitor this situation.
4. SECTION 15. REPORTING
• LEASE INFRAcnoN; °The lease clearly states: Lessee shall provide a minimum
report of total tonnage of recyclable materials processed, breakdown of material
tonnage's by material type and City of origin. Reporting shall be on a quarterly
basis."
• VIOLA77 "To date, the City has received only one report, which was incomplete,
in October 1997. Verbal reminders were given to RALCCO's past contact Stephen
McGrath.°
• RALCCO's REsPomsE; The matter of sending the City reports is an oversight on
RALCCO's part and I apologize. We keep records for the State, so we do have
access to this data. Since Stephen McGrath no longer works for or represents
RALCCO, nor have I caught this error since I took over operations in mid-April this
has been an oversight. I will make sure that the City of San Luis Obispo is copied
on this report on a quarterly basis starting immediately.
I trust that you and the City of San Luis Obispo will work with RALCCO to create and maintain a
program that benefits the entire city and surrounding community for recycling. Our mission in life is
to recycle. RALCCO is pleased and honored to help the City meet or exceed the mandates of AB
939. 1 look forward to working closely with you and others in the City on a constructive and
productive manner in the future.
Best Regards,
RALCCO
(5 Z,I
GREG SHIPLEY
Manager
Cc:SLO County Solid Waste, IWMA, ECOSLO
2.y-26
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