HomeMy WebLinkAboutAGENDA REPORT 1995 1220 CC REG ITEM 10A1TC.
AGENDA REPORT 1 Z-14 19 !'
CITY OF MOORPARK oO
TO: Honorable City Council
PA\,
FROM: Jill Rubin Myers, Solid Waste Coordinator
DATE: December 14, 1995 (CC Meeting of December 20, 1995)
SUBJECT: Consider Solid Waste Exclusive Residential and Commercial Franchise
Agreements with G.I. Rubbish and Moorpark Rubbish Disposal and Adopt
Resolution 95 -may Establishing Service Rates, Rescinding Resolutions 94 -1091
and 95 -1105.
SUMMARY
The City Council is being asked to consider approving the proposed franchise agreements, subject
to final language approval by the City Attorney and City Manager, with G.I. Rubbish and
Moorpark Rubbish Disposal (Anderson) for exclusive collection, transportation, processing,
recycling, and disposal of residential and commercial (including roll -off service) solid waste. The
proposed agreements will be provided under a separate cover. The City Council is also being
asked to consider adopting Resolution 95 -_ setting rates for January 1996 which include a
reduction in the residential single - family rates, the establishment of a discounted "Super Recycler"
rate, and setting of the commercial service rates.
BACKGROUND
The negotiation process between the Ad Hoc Negotiations Committee (Councilmembers Hunter
and Wozniak) and the haulers continued through the Summer and into December. Developments
regarding G.I. Rubbish and its proposed sale proceedings also contributed to delay the Ad Hoc
Committee's final recommendation. On December 7, the Bankruptcy Court approved G.I.
Rubbish's Disclosure Statement, enabling the possible sale of G.I. to be taken off calendar. G.I.
indicated that the Bankruptcy Court Trustee approves of their reorganization plan and feels
confident that the Judge will also approve it when it is considered by the Court on March 25,
1996.
On December 13, the Ad Hoc Negotiations Committee met with the haulers to discuss outstanding
items for negotiation. As a result of that meeting, the haulers and the Committee have reached
tentative agreement and the Committee is prepared to make a recommendation. Points agreed to
at the December 13 meeting, in addition to the items previously agreed upon (summarized on page
3), include:
1
• The haulers agreed to reimburse the City for attorney expenses incurred in the City's
development of the agreements, at a cap of $5,000 each.
• The haulers agreed to reimburse the City for staff costs associated with the annual rate
reviews, at a cap of 20 hours each.
• In the event that the efforts of the East County Waste Task Force to enter into an
agreement with Waste Management are successful, the haulers agree to reduce rates based
on a formula that takes the difference between a cost arrived at by splitting the difference
between the average landfill tipping rate paid by the haulers over the latest 12 month
period and the actual landfill rate established by the County, and the tipping fee negotiated
by the Task Force.
• It was originally proposed that the haulers pay franchise fees on revenue derived from the
sale of the recyclables. The Committee agreed to require the haulers to pay the franchise
fees on the sale of residential recyclables, at this time. Should the City implement a
business tax (by a two- thirds vote of the people), the haulers will then be required to pay
franchise fees on both residential and commercial recyclables sales revenue. Currently an
independent (nonfranchised) recycler may operate in the City to service commercial
recycling accounts (at no charge to customers) with only a business registration. No other
fees are submitted to the City by the independent recycler.
• The haulers agreed to pay a transfer fee in the event that they receive approval from the
City to transfer their franchise. The fee will be five percent (5 %) of the last twelve
month's gross revenues or $25,000, which ever is greater. The Committee agreed to
exempt an internal reorganization from the transfer fee, however a transfer between the
two franchisees is subject to the transfer fee.
• New residential customers will be split equally (50/50) within city limits as additional
development occurs. The City may make adjustments to the residential franchise area
boundaries and /or the number of residential customers, up to two percent (2 %) of the total
number of residential customers on a quarterly basis. New commercial accounts will be
split equally based on the hauler's gross revenues. The City may make adjustments to the
commercial franchise area boundaries and /or the number of customers, up to two percent
(2 %) of the commercial gross revenue. The City will restore such adjustments as soon as
practical, however any restoration to the number of accounts or gross revenues will not
include recouping lost revenues resulting from the adjustments. The purpose of the
adjustments is to address economy and efficiency, avoid duplication of services, reduce
vehicle trips, and other related matters.
• The City Attorney and the attorney for one of the franchisees are working on final
language regarding hazardous waste indemnification requirements.
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Key components of the proposed agreement include a five year term for G.I. Rubbish and
Moorpark Rubbish with a possible three (3) year extension, an annual index rate adjustment
process, hauler performance measures, AB 939 indemnification, and various community services
offered by the haulers.
As previously stated, it is proposed that the residential rates be decreased and that fixed
commercial rates be established. Staff anticipates a slight increase in franchise revenues to the
City, due to the setting of the commercial rates. The haulers project an increase in their
commercial billing revenues and indicated that their increased commercial revenues allowed for
the reduction in the residential service rates. The haulers have guaranteed the City that future
franchise revenues will be no less than what we currently receive.
The same agreement will apply to both franchisees. Specific services are outlined in the exhibits
of the agreement. Below, is a listing of the major issues to be included in the proposed
agreement. These items differ from what is included in the current agreements.
1. Effective December 22, 1995, the term of the franchise will be approximately 5 years,
through December 31, 2000. A three year renewal option may be exercised by the City.
2. Effective January 1, 1996, the monthly rates for residential service will be $16.30
(discounted rate for senior citizens and super recycler rate), including green waste.
Monthly Residential Rates (See agreement exhibit for detail).
Current Rate Proposed Rate Rate Reduction
(Incl. Recycling
and Green Waste)
Regular 17.40 $16.30 ($1.10)
Senior Rate 14.10 $13.04 ($1.06)
Super Recycler n/a $13.04 n/a
Regular residential customers will be allowed to put out up to four - 45 gallon containers
in any combination of solid waste and green waste. Unlimited recycling will continue.
Super Recycler rates limit a residential customer to one solid waste container, one green
waste container, and unlimited recycling. The Senior discounted rate (62 years and above)
limit a residential customer to two solid waste containers, one green waste container, and
unlimited recycling.
It is also proposed to remove the current discount for "Multi- family Zone" can rates.
rk
3.
4.
5.
Commercial rates will also be effective January 1, 1996
Monthly Commercial Rates: (see agreement rate schedule).
Current Rates
Not to Exceed
1.5 cu (lx)
$81
3.0 cu (lx)
$108
1.5 cu (2x)
$129.60
3.0 cu (2x)
$167.40
Hauler Proposed
Set Rates
$83.20
$93.60
$145.59
$166.39
A separate rate schedule is included for temporary/roll -off service.
Designated commercial franchise areas have been established. Haulers will submit a plan
to the City for approval that identifies the designated commercial areas /accounts they plan
to service, in an effort to reduce truck traffic.
The proposed 1996 monthly commercial rates (itemized in detail in the attached resolution)
are the same as the 1995 rates set for commercial service in Simi Valley (Simi Valley
commercial rates will be slightly increased in 1996). Commercial rates in Thousand Oaks
vary as only the maximum amount is established. However, the monthly maximum
amount for a three cubic yard bin serviced once weekly in Thousand Oaks is set at $94.40,
compared to the haulers' proposed rate of $93.60.
The monthly commercial recycling and /or green waste collection rate will be discounted
forty -four percent (44 %) from the commercial regular rate.
Annual Consumer Price Index (CPI) and Landfill Ti1212ing Fee Adjustment: It is proposed
that a simplified and more cost effective CPI index system, commonly used by other
jurisdictions, be used to adjust the rates from 1997 forward.
(1) CPI Formula: Rate x (86% x CPI)
(2) Landfill tipping fee methodology:
Residential Rate - $0.45 per $1.00 /ton landfill increase times current City
residential recycling (less yard waste) diversion rate. (For example, a $1.00 landfill
increase with a 25 % diversion rate would equal: $.45 x 1 = $ .45 x 25 % _ $.45 -
$ A 1 = $0.34 rate increase.)
Non - Residential Rate - $0.90 per $1.00 /ton landfill increase times current City
nonresidential recycling diversion rate less yard waste, concrete, and asphalt. (For
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example, a $1.00 landfill increase with a 25% diversion rate would equal: $.90
x 1 = $ .90 x 25% _ $ .90 - $ .23 = $ .67 rate increase.)
Extraordinary costs adjustment language was provided and the haulers propose that the
senior rate adjustment percentage be comparable to the percentage adjustment authorized
for all other customers.
Currently, the formula for determining an adjustment to the monthly residential refuse rate
is calculated by combining three cost components - the Producer Price Index (PPI), Simi
Valley Landfill Rate, and Diesel Fuel average cost per gallon. The above costs are
weighted to reflect the representative portion of overall expenses for each hauler. The
existing refuse rate includes a recycling portion that received a separate rate review from
the refuse rate review. The proposed rates will no longer differentiate the recycling portion
from the refuse rate. The proposed rate includes refuse, yard waste, and curbside
recycling.
6. Franchise fees: The 16% franchise /AB 939 fee will be applied to all commercial revenue
collected monthly. The franchise /AB 939 fee will not be applied on the landfill portion
for roll -off service accounts and the sale of commercial recyclables. The existing
commercial franchise /AB 939 fee is 18% (10% franchise fee and 8% AB 939 fee). Of that
18 %, 10 % was applied to the landfill portion of the roll -off rate. Of the proposed 16 %
franchise/AB 939 fee, eight percent (8%) will continue to be designated as the AB 939 fee.
The remaining eight percent (8 %) will be designated towards the franchise fee, resulting
in a two percent (2%) decrease from the current commercial franchise fee.
The residential franchise fee will remain the same at 4% and the AB 939 fee of $1.00 per
household will not change.
7. Submission of Franchise Fees: Haulers will remit franchise and AB 939 fees on a monthly
basis, rather than the current quarterly basis.
8. Residential Billing Cycle: The haulers will modify the residential billing cycle. The bills
will state that payment is due by the 25th of the second service month (currently, the bills
state that payment is due by the 25th of the service month). A return envelope will be
provided. Delinquent notices will be sent fifteen days after the end of the second month.
Service may be cut -off at the end of the third month.
9. Green Waste Collection: Green waste collection will be implemented no later than in
March 1996. Haulers will continue to provide curbside Christmas tree recycling and a
drop -off location at no cost.
10. Bulky Item/Clean-up Day: Haulers will provide at no cost, one curbside bulky item
collection of up to two items per household, on an annual basis, effective January 1, 1996.
5
The haulers provided at no cost a Fall 1995 clean -up day event under their existing
agreement. Staff will promote future "free" days offered at the Simi Valley Landfill, in
place of clean -up events. Haulers may provide future clean -up day events at a cost to be
determined.
11. AB 939 Indemmnification: Haulers will indemnify the City against any and all fines levied
by the State as a result of the failure of the hauler to meet the required AB 939 goals.
12. Complaint Reimbursement: In the event that the haulers can not resolve a legitimate
service- related complaint and the customer contacts the City for resolution, the haulers will
reimburse the City for all reasonable labor and materials directly expended by the City in
resolving the complaint against the haulers.
13. Change in Me: When new services are to be considered, the City may request to
receive proposals from the haulers (within 120 days of notice) to determine potential costs
to implement new waste reduction and efficiency programs. After "good faith" efforts, if
the haulers are unable to develop and /or implement a City requested waste reduction
program, the City may select an alternative service provider for that specific service
request.
14. Flow Control: Due to recent Court decisions, the ability to control and direct solid waste
to a designated facility as part of a franchise agreement is still allowed.
15. Promotion Assistance: At no cost, the haulers will purchase frames to be placed on the
sides of the collection vehicles for program advertisements, assist with media promotion,
and produce a newsletter. City will review all materials.
16. Compost Bin and Motor Oil R=t cle Distribution Program: At no additional cost to the
City, haulers to promote and distribute as many compost bins and new reusable motor oil
recycling bins each calendar year as requested by the City.
17. Identification of Non -r .cyclers: Within 90 days of the effective date of the Agreement,
haulers will develop and implement, upon approval by the City, a program designed to
encourage participation in the City's residential curbside recycling program for residents
not participating as of the date of this agreement. Haulers will also work to reinforce
participation with residents participating on a regular basis. Such efforts may include
conducting periodic waste audits at identified residences, offering participation incentives,
and sponsoring contests to award program participants. Haulers will also develop and
implement a program to increase and reinforce recycling participation at multi- family
residential complexes and commercial areas. Such programs will be conducted at a
minimum of two times per year.
18. Multi- family Recycling Bins and Pails: Bins shall be specifically designed for recycling
2
in order to reduce material theft and product contamination. Decals shall be affixed to
such bins identifying materials to be deposited in City's program and /or other information
pertaining to the contents of the bin.
Haulers to provide, at no cost to City, individual recycling pails to multi - family residents
upon request by the City. The City shall approve the size and type of recycling pail the
hauler provides to residents. Recycling pails shall become the property of hauler.
19. S=pecial Events. Haulers to jointly share equally in the costs to provide the equivalent of
200 cubic yards of solid waste collection and transportation service including all landfill
fees, at no charge to the City, for community and special events (i.e., Hazardous Waste
Collection Events, Labor Day in the Park, Fourth -of -July, non - profit litter reduction
efforts, etc.) every calendar year, as directed by the City Manager.
20. Newspaper Drop -Off Program: (Continuation) Haulers responsible for maintaining
cleanliness of site, including application of informative container decals and prompt
removal of graffiti.
21. Collection from City Facilities* At no charge, haulers to furnish sufficient receptacles, as
determined by the City, for collection of solid waste, source separated recyclable and
compostable materials at every facility owned or operated by the City and the Moorpark
Redevelopment Agency, in the hauler's service area, and remove the contents of these
containers (at no cost) on a schedule approved by City.
22. Public Area Collection: At no cost, each hauler will provide solid waste and recyclables
collection service from barrels not to exceed 45 gallons in capacity placed on public right -
of -way at no more than 10 locations designated by the City (20 locations total).
23. Spill Clean Up, Haulers to clean -up all spills of discarded waste occurring during the
collection process immediately upon the occurrence of the spill. Haulers to close any gates
after making collections.
The proposed agreement is in the process of its final review by the City Manager, City Attorney,
and haulers. Staff feels that if the City Council concurs with the various points of the agreement
as recommended by the Committee and staff, the agreement can be approved on December 20,
1995 subject to final language approval by the City Manager and City Attorney and effective as
of December 22, 1995.
CONCLUSION
Of the many objectives that were guiding principles in negotiating the proposed agreement, the
Ad Hoc Committee was committed to negotiating an agreement that provided for the continuation
of the current high level of service, a rate reduction to residents, increasing the provision of hauler
7
services without additional charge to the community, and assurance that the City and haulers will
meet waste reduction and other regulatory mandates.
In concluding the negotiations, the haulers indicated that they agree to waive their 1995 request
for a residential recycling rate increase of $0.15 per month. As you may recall, at the January
31, 1995 the Public Works, Facilities, and Solid Waste Committee (former Councilmember
Montgomery and Councilmember Wozniak) meeting, the Committee suggested that the residential
haulers forgo the requested monthly recycling rate increase until after the conclusion of the
contract negotiations, recognizing that the haulers may have the opportunity, if necessary, to
retroactively recapture all or part of their requested recycling fee increase. Again, the haulers
chose to forgo their 1995 request for a recycling rate increase. Again, the proposed residential
rates no longer contain a separate component attributable to recycling. The rate includes solid
waste, recycling, and yard waste services.
The attached resolution itemizes the proposed rate schedule, effective January 1, 1996.
RECOMMENDATION (Roll Call Vote)
The Ad Hoc Negotiations Committee and staff recommend that the City Council:
1. Approve the Solid Waste Exclusive Residential and Commercial Franchise
Agreements wp* G.I. Rubbish and Moorpark Rubbish Disposal for the period of
�✓l December -4, 1995 through December 31, 2000, subject to final language
approval by the City Manager and City Attorney;
2. Adopt, Resolution 95 -_ Establishing Service Rates, Rescinding Resolutions 94-
1091 and 95 -1105; and
3. Issue PRC notification to the remaining commercial franchised haulers, E.J.
Harrison and Rubbish Control, of the Council's intent to award exclusive
franchises, effective DecemberX, 1995.
ti�
�ocunnen'} �
A. "Act" shall mean the California Integrated Waste
Management Act of 1989, Section 40000 et seq. of the Public
Resources Code, as it may be amended from time -to -time. Also
sometimes referred to as "AB 939 ".
B. "Bulky Items" shall mean and include, but not by way of
''imitation, discarded items such as white goods (i.e., major
usehold appliances), water heaters, furniture, tires, carpets,
ttresses and similar large items which have weights or volumes
eater than the capacity of an allowed covered container, but
!xcluding construction waste and special waste.
C. "City Limits" shall mean the boundaries of the City of
Iorpark, as of December 22, 1995, which boundaries are shown by
naps incorporated herein by reference in Exhibit "A" and which
We on file in the office of the Clerk of the City Council.
E. "Franchise" shall mean the exclusive right and
privilege: (1) to arrange for the collection of and to collect,
to transport to a landfill or other licensed disposal
U lcilities as determined by CITY, and (3) to recycle from
lected Solid Waste all Solid Waste kept, generated and /or
41ccumulated within the CITY from the Franchise Area. This
ranchise is subject to all of the provisions of Title 8, Chapter
3 =6, this Agreement, and to any rights held by any other Solid
1,aste enterprise holding rights pursuant to Public Resources Code
Section 49520.
F. "Franchise Area" shall mean a geographic area
established by CITY pursuant to this Agreement for the
collection, transportation, recycling, and disposal of Solid
Waste.
G. "Franchise Fee" shall mean the fee or assessment
*posed by the CITY on GRANTEE solely because of its status as
GRANTEE. The term "franchise fee" does not include:
(1) Any tax, fee or assessment of general
applicability (including any such tax, fee, or assessment imposed
on both businesses and GRANTEE or their services but not
including a tax, fee, or assessment which is unduly
discriminatory against GRANTEE or its customers) ; or
December 20, 1995 3
(2) Requirements, reimbursements, charges or fees
incident to the awarding, administering, enforcing, transfer or
renewal of this Agreement, including payments of bonds,
consultants, administrative expenses, attorney's fees, security
funds, letters of credit, insurance, indemnification, penalties,
and liquidated damages.
H. "Grantee ". "GRANTEE" shall mean Moorpark Rubbish
Disposal, Inc., the entity granted the Franchise pursuant to this
Agreement.
I. "Gross Revenues" shall mean any and all revenue or
mpensation in any form derived by the GRANTEE, its affiliates,
bsidiaries, parents and any person or entity in which the
ANTEE has a financial interest, from the collection of Solid
ste pursuant to this Agreement, including, but not limited to,
nthly customer fees for collection of Solid Waste, special
ckup fees, bin and drop box rental and collection fees from
sidential and commercial customers, revenue from the sale of
cyclables, and fees for redelivery of bins and drop boxes,
thout subtracting Franchise Fees or any other cost of doing
siness. Provided, however, that the amount of gross revenues
y be reduced by the amount of any residential and commercial
stomer bad debts incurred by the GRANTEE or refunds returned to
sidential and commercial customers, provided that the revenue
th respect thereto has been included in the computation of
oss revenues.
K. Recyclables shall mean source separated paper,
J;ewspaper, glass, aluminum and bid -metal cans, cardboard,
plastic, bulky items, and other material that is to be segregated
for collection and recycling as mutually agreed upon by CITY and
GRANTEE.
L. "Recyclables collection container" shall mean a
container, bin, or roll -off drop box as defined in Title 81
Ohapter 36 or other container as approved by CITY used to hold
cyclables placed for collection that would otherwise be
sposed of as provided by this agreement.
M. "Recycling" shall mean the process of collecting
!4orting, cleansing, treating, and reconstituting Solid Waste and
19lecyclables that would otherwise be disposed of as provided by
this Agreement, and returning them to the economic mainstream in
the form of products which meet the quality standards necessary
to be used in the marketplace.
December 20, 1995 4
't)=QVY-%**-} Z, LO V%k1 uxr1
O. "Temporary Service" shall mean collection service which
provided on a non - regularly scheduled basis. Temporary
rvice also includes all commercial service and residential
rvice requiring the use of a roll -off or drop box, as defined
Section 8.36.040(D) of Title 8, Chapter 36.
P. "Yard Waste" shall mean source separated materials
rnerated from the maintenance or alteration of public,
mmercial, or residential landscapes, including grass clippings,
ee and shrubbery trimmings and prunnings, vegetative cuttings,
aves, brush, weeds, and related compostable materials only
T.
nerated from property of customer.
Q. "Yard Waste Collection Unit" shall mean a container,
n, roll -off drop box or other container, approved by CITY
eluding size, used to hold source separated Yard Waste placed
r collection.
Exhibit A, describing the Franchise Area; Exhibit B,
tlining residential services; Exhibit C, outlining commercial,
lti- family, temporary bin /roll -off drop box services; Exhibit
specifying vehicle and equipment standards; Exhibit E,
1D1ecifying reports required; Exhibit F, describing special
stes; Exhibit G, providing the service fee schedule; Exhibit H
oviding the rate adjustment schedule; and Exhibit I, describing
1tegrated Waste Management Act topics, all dated December 22,
95, are hereby incorporated by reference.
_uECTION 5. ACCEPTANCE; WAIVER
GRANTEE agrees to be bound by, and comply with, all the
+equirements of Title 8, Chapter 36 and this Agreement. GRANTEE
wives GRANTEE's right to challenge the terms of this Agreement
�►d Title 8, Chapter 36 under federal, state or local law, or
ql,dministrative regulation, as such laws and regulations exist as
f the date of execution of this Agreement by CITY and GRANTEE.
TEE waives any right or claim to serve the CITY or any part
rthe CITY under any prior franchise, contract, license or
prmit issued or granted by any governmental entity, including
fiy right under Section 49520 of the Public Resources Code.
A.
Franchise Area Defined.
(1)
December 20, 1995
The Franchise Area granted by this Agreement shall
5
4ervice, to the customer stating that service will be
discontinued if payment is not received by the GRANTEE within
seven (7) days from the date that the customer notice was mailed.
y (8) Late Charge. A late charge penalty of $5.00
y be charged to delinquent accounts per month. Such late
arge may not be assessed prior to the mailing of any notice of
•'scontinuance of service. Upon payment of the delinquent fees
d any late charge owed, Grantee shall resume collection on the
next regularly scheduled collection day.
(9) CITY Notified. The GRANTEE will notify the
CITY, at least once per month, in writing regarding customers who
lave been discontinued and of persons within the Franchise Area
o are not subscribing for Solid Waste collection services.
vL
J. CITY's Right to Change Scope of Work.
(1) General. Subject to the provisions of this
Subsection, the CITY shall have the right to direct the GRANTEE
to undertake reasonable changes in the scope of operations
contemplated by this Agreement. Such changes may include, but
re not limited to, the implementation of additional programs
signed to increase waste diversion in the CITY, or the
tomation of all or a portion of the collection services
9-e ovided by the GRANTEE hereunder. In the event the CITY directs
GRANTEE to implement such a change, the provisions of this
,jibsection shall apply.
(2) GRANTEE Proposal. In the event CITY elects
, direct GRANTEE to undertake a change in the scope of
Operations ( "Change in Scope "), CITY shall give the GRANTEE
Viritten notice thereof. GRANTEE shall prepare a proposal
elating to the implementation of the Change in Scope within 30
(tays of receipt of such notice from CITY (or such longer period
may be reasonably necessary to prepare the proposal, if such
O§roposal cannot reasonably be prepared within 30 days as agreed
to by CITY). The proposal shall contain detailed information
t-elating to the implementation of the Change in Scope, and shall
include the following:
(a) a description of the operational
modifications that will be required to implement the Change in
Scope;
Oecember 20, 1995 Je if
(2) Commercial. In consideration of the granting
of a franchise which provides for CITY contract administration
and the use of CITY rights -of -way for the operation of commercial
and roll -off drop box Solid Waste collection, transportation,
disposal, and recycling services, GRANTEE shall pay to CITY
sixteen percent (16 %) of Commercial Gross Revenues, excluding
]aandfill share of the roll -off drop box accounts and excluding
iievenues from the sale of recyclables. The sixteen percent (16 %)
anchise fee shall include the AB 939 fee. The City Council
shall determine the appropriate percentage breakdown attributable
the AB 939 fee portion of the Franchise Fee. Effie tiv �arivaru
.......................... .
(3) Special Wastes. In consideration of the
anting of a franchise which provides for CITY contract
ministration and the use of CITY rights -of -way for the
eration of special waste collection, transportation, disposal,
d recycling services and roll -off drop box services (as listed
Exhibit F), GRANTEE shall pay to CITY a Franchise Fee of
xteen (16 %) percent of gross revenues, excluding landfill share
the roll -off drop box accounts.
(4) Franchise Fees not received by CITY by 12:00
m. on the fifteenth (15th) day of the following month shall be
bject to interest and a late fee of two hundred and fifty
llars ($250). The interest rate shall be two percent (2 %)
ove the average of the most recent prime rates of the three
rgest banks headquartered in California as published in the
11 Street Journal (Western Edition) or similar publication, but
t to exceed twelve percent (12 %) per annum. Interest shall be
lculated from the fifteenth (15) day after the end of the month
the basis of a thirty (30) day month and the actual number of
ys that the Franchise Fees are outstanding. On a quarterly
sis, GRANTEE shall reconcile and submit Franchise Fee balances
ed to CITY.
C. Acceptance Of Payment - No Release. No acceptance
any payment shall be construed as a release or as an accord
d satisfaction of any claim CITY may have for further or
ditional sums payable pursuant to the provisions of this
reement or for the performance of any other obligation imposed
the provisions of this Agreement.
D. Ownership Of Solid Waste. Subject to the right of
a, customer to reclaim lost property, once Solid Waste is placed
'p containers curbside or in bins or roll -off drop boxes,
ownership shall transfer to GRANTEE. Subject to GRANTEE'S duty
o meet the goals of the Act, GRANTEE is hereby granted the right
retain, recycle, compost, process, dispose of, and otherwise
December 20, 1995
o=-Ajm•nfi s
CITY expressed by City Council resolution. Any attempt by
ANTEE to assign, sell, hypothecate, lease or otherwise transfer
e Franchise or this Agreement without the consent of CITY shall
id this Agreement.
B. Approval to TRANSFER the Franchise shall be at the
le discretion of the City Council. CITY may impose conditions
approval on any TRANSFER, including, but not limited to,
editions requiring acceptance of amendments to Title 8, Chapter
and this Agreement, and the payment to CITY of a transfer fee
rsuant to Section 17 of this Agreement.
D. CITY consent is required for any change in control
GRANTEE. Change in control shall mean any sale, transfer or
quisition of (1) more than thirty percent (30 %) of GRANTEE's
sets; or (2) more than ten percent (10 %) of GRANTEE's voting
ock by a person, or group of persons acting in concert, who
ready owns more than 5% of the voting stock.
E. Any change in control of the GRANTEE occurring
without prior CITY consent shall constitute a material breach of
this Agreement.
F. GRANTEE may terminate this Agreement only upon one
tndred eighty (180) days written notice to CITY.
.ya
SECTION 17 FRANCHISE TRANSFER, FEES
nt k A. Any application for a franchise transfer shall be
de in a manner prescribed by the City Manager. The application
all include a deposit of $5,000, to cover the estimated cost of
1 direct and indirect expenses, including CITY staff,
ansultants' and attorneys', reasonably incurred by City to
dequately analyze the application. Any costs incurred by the
CITY in excess of $5,000 shall be reimbursed by GRANTEE. In the
event that the CITY's costs are less than $5,000, CITY shall
fund remaining deposit to GRANTEE.
B. Upon approved transfer of this Agreement, GRANTEE
,Gall pay to CITY a transfer fee in the amount of $25,000 or 5
7k i
&cember ?0, 1995 20
'�b C4.0VWw1- 1Q
'uaayers or menaces the public health, safety or welfare, then
i such event City shall have the right, upon twenty -four (24)
iur prior written notice to GRANTEE, during the period of such
iergency, to temporarily take possession of any or all equipment
.d facilities of GRANTEE previously used in the collection,
ansportation, recycling, and disposal of Solid Waste under this
reement, and to use such equipment and facilities to 'Collect,
ansport, recycle, and dispose of any or all Solid Waste which
ANTEE would otherwise be obligated to collect, transport,
cycle, and dispose of pursuant to this Agreement. CITY agrees
at, in such event, it assumes complete responsibility for the
oper and normal use of such equipment. GRANTEE agrees it will
lly cooperate with CITY to effect such a transfer of possession
r CITY's use.
B. GRANTEE agrees that, in such event, CITY may take
{emporary possession of and use all of said equipment without
paying GRANTEE any rental or other charge, provided that CITY
agrees that, in such event, it assumes complete responsibility
for the proper and normal use of such equipment. CITY agrees that
it 'T shall immediately relinquish possession of all of the
ove- mentioned property to GRANTEE upon receipt of written
tice from GRANTEE to the effect that it is able to resume its
rmal responsibilities under this Agreement.
A. Indemnification of CITY. GRANTEE agrees that it
all protect, defend with counsel approved by CITY, indemnify
d hold harmless CITY, its officers, employees and agents from
d against any and all losses, liabilities, fines, penalties,
sts, claims, demands, damages, injuries or judqments frlc1:-hc3!i
;.. -.:... u.aaa..7 3.11uCLU111V_ >
arising out of or resulting in any way
�7om (I) GRANTEE's exercise of the Franchise or omissions of
GRANTEE, its officers, directors, agents, employees, and
subcontractors and employees thereof in connection with the
Performance or non performance of this Agreement, unless such
ss, liability, fine, penalty, cost, claim, demand, damage,
jury, or judgement is due to the sole ne li e
acts of CITY, its officers, employees, or agentsCeorr(ii)1CITY's
grant of the Franchise to GRANTEE. Subject to the scope of this
indemnification and upon demand of CITY, made by and through the
kli�tether ty Attorney, the GRANTEE shall appear in and defend CITY and
s officers, employees and agents in any claims or actions,
judicial, administrative or otherwise, arising out of the
ercise of the Franchise.
B. Indemnification of GRANTEE. CITY shall indemnify
d hold the GRANTEE, its officers, directors, employees and
5�areholders harmless from and against any and all liabilities,
losses, damages, claims, actions, causes of action, costs and
ecpenses (including but 'not 1imi:ted to attorney's fees and; cests
December 20, 199.5
'poou rrV44 Zo Cc4mxA
j
f naemn�my1;> arising out of or
resulting in any way from GRANTEE's exercise of the Franchise,
but only if due to the sole negligence or willful acts of CITY,
its officers, employees, or agents.
C. Hazardous Substances Indemnification. GRANTEE
shall indemnify, defend (with counsel selected by CITY, protect
and hold harmless CITY, its officers, employees, agents, against
4-;11 claims, actual damages (including but not limited to special
td consequential damages), natural resources damage, punitive
mages, injuries, costs, response remediation and removal costs,
,,sses, demands, debts, liens, liabilities, causes of action,
AL
AVIA'. legal or administrative proceedings, judgements, interest,
nes, charges, penalties, and expenses (including but not
[zardous ited to attorney's fees and costs incurred in connection with
ending against any of the foregoing or in enforcing this
emnity) of any kind whatsoever paid, incurred or suffered by,
asserted against, CITY or its officers, employees, agents, or
NTEE, including its subcontractors, arising from or
ributable to any repair, cleanup or detoxification, or
paration and implementation of any removal, remedial response,
sure or other plan (regardless of whether undertaken due to
ernmental action) concerning any hazardous substance or
wastes at any place where GRANTEE or its subcontractors
;More or dispose (and including transportation) of Solid Waste
and Special Waste pursuant to this Agreement. The foregoing
indemnity is intended to operate as an agreement pursuant to
Section 107(e) of the Comprehensive Environmental Response,
Compensation and Liability Act, ("CERCLA") 42 U.S.C. Section
607(e) and California Health and Safety Code Section 25364, to
insure, protect, hold harmless, and indemnify CITY and its
officers, employees, and agents from liability.
In the event that liability insurance for the
Collection and handling of hazardous substances becomes available
t�o GRANTEE, holding company, subsidiary, or parent company, at a
reasonable rate, upon consultation with CITY, GRANTEE agrees to
purchase said insurance coverage. If insurance is subsequently
required by CITY, costs to purchase said insurance may be
considered an extraordinary cost. Said insurance shall protect
2ANTEE and CITY from any claim for damages for bodily injury,
including accidental death, as well as from any claim for
operty damage which may arise from operations performed
rsuant to this Agreement, whether such operations be by GRANTEE
^o
self, or by its agents, employees, and /or subcontractors.
D. Integrated Waste Management Act Indemnification.
GRANTEE agrees to jointly and severally with all other Solid
Waste Franchise Grantees, to protect, defend with counsel
approved by CITY, indemnify and hold harmless CITY and its
officers, employees and agents against all fines or penalties
imposed by the California Integrated Waste Management Board in
the event the source reduction and recycling goals or any other
December 20, 1995 26
"t)OGO#-n?A
proved by the County of Ventura for the Simi Valley Landfill
r the same twelve (12) month period and 2) the tipping fee
gotiated by the East County Task Force. Thereafter, landfill
pping fee adjustments shall be based on the rate paid by the
ANTEE.
California Integrated Waste Management Program ( CIWMP) fees
imposed by the County shall be passed through to CITY or
rate payer as directed by CITY. Any CIWMP fee decreases
shall also be passed through to CITY or rate payer as
directed by CITY. As of January 1, 1996, the CIWMP fee is
$0.34 per ton.
A. In addition to, and not in lieu of, the annual CPI
adjustment GRANTEE shall also be entitled to rate
increases or decreases in an amount equal to GRANTEE'S
extraordinary increases or decreases in its cost of
collection. GRANTEE'S IPC processing fees, now or
later imposed, shall neither be levied on CITY nor
added to the rates in Exhibit G. In addition, any fees
imposed on the GRANTEE by another public agency related
to the disposal, processing, transportation, or use of
public infrastructure in the form of a fee or other
consideration shall neither be levied on CITY or any
customer nor added to the rates in Exhibit G without
the approval of CITY. Such extraordinary increases or
decreases in the cost of collection may include, by way
of example and not by way of limitation: (1) a change
in the location of the landfill or other lawful
disposal sites to which the GRANTEE is required to
transport Solid Waste collected hereunder;(2) changes
in the local, State or Federal laws governing temporary
bin and roll off drop box services and collection,
separation, transportation, recycling, composting, or
disposal of Solid Waste. Any additional special fees
associated with special or mandated CITY programs in
excess of those required in the Agreement shall be
authorized by the City Council which shall consider a
supplemental rate adjustment.
I9eceniher 20, 1995 56