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CITY COUNCIL AGENDAREGULAR MEETING

CITY OF HALF MOON BAY

TUESDAY, SEPTEMBER 05, 2017

Adcock Community/Senior Center Debbie Ruddock, Mayor535 Kelly Avenue Deborah Penrose, Vice MayorHalf Moon Bay, California 94019 Adam Eisen, Councilmember

Rick Kowalczyk, CouncilmemberHarvey Rarback, Councilmember

7:00 PM

This agenda contains a brief description of each item to be considered. Those wishing to address the CityCouncil on any matter not listed on the Agenda, but within the jurisdiction of the City Council to resolve, may comeforward to the podium during the Public Forum portion of the Agenda and will have a maximum of three minutes todiscuss their item. Those wishing to speak on a Public Hearing matter will be called forward at the appropriate timeduring the Public Hearing consideration.

Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk.

Copies of written documentation relating to each item of business on the Agenda are on file in the Office ofthe City Clerk at City Hall and the Half Moon Bay Library where they are available for public inspection. If requested,the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling650-726-8271.

In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting canbe obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to makereasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).

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MEETING WILL CONCLUDE BY 11:00 PM UNLESS OTHERWISE EXTENDED BY COUNCIL VOTE

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ROLL CALL / PLEDGE OF ALLEGIANCE

PROCLAMATIONS AND PRESENTATIONSYOUTH LEADERSHIP INSTITUTE

MAYOR'S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE

REPORT OUT FROM RECENT CLOSED SESSION MEETINGS

CITY MANAGER UPDATES TO COUNCILUPDATE ON NEW CITY WEBSITE

PUBLIC FORUM

1. CONSENT CALENDAR

1.A WAIVE SECOND READING OF RESOLUTIONS AND ORDINANCES

1.B REVISED FISCAL YEAR 2017-2018 GANN APPROPRIATION LIMITSTAFF REPORT

RESOLUTION

1.C SUPPLEMENTAL LAW ENFORCEMENT SPECIAL FUND (SLESF) FOR CITIZEN’S OPTIONFOR PUBLIC SAFETY GRANT PROGRAM IN FISCAL YEAR 2017-2018STAFF REPORT

RESOLUTION

1.D COUNCILMEMBER TRAVEL REIMBURSEMENT POLICYSTAFF REPORT

ATTACHMENT 1

1.E PENINSULA CLEAN ENERGY MUNICIPAL ELECTRICITY ACCOUNTS—ENROLLMENTOPTIONSTAFF REPORT

RESOLUTION

2. ORDINANCES AND PUBLIC HEARINGS

3. RESOLUTIONS AND STAFF REPORTS

3.A SOLID WASTE FRANCHISE AGREEMENT ADOPTIONSTAFF REPORT

RESOLUTION - AGREEMENT 2

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https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/98946/RESOLUTION.pdf




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RESOLUTION - AMENDMENT

3.B RECREATION USER FEESSTAFF REPORT

ATTACHMENT 1

ATTACHMENT 2

ATTACHMENT 3

ATTACHMENT 4

ATTACHMENT 5

3.C STRATEGIC PLAN UPDATESTAFF REPORT

ATTACHMENT 1

ATTACHMENT 2

3.D LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE - RESOLUTIONSSTAFF REPORT

ATTACHMENT 1

3.E AGENDA FORMAT DISCUSSIONSTAFF REPORT

FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS

CITY COUNCIL REPORTS

ADJOURNMENT

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BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT

For meeting of: September 5, 2017

TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Yulia Carter, Finance Director TITLE: REVISED FISCAL YEAR 2017‐2018 GANN APPROPRIATION LIMIT ______________________________________________________________________________ RECOMMENDATION: Adopt a resolution to establish the revised Gann Appropriation limit for Fiscal Year 2017‐2018. FISCAL IMPACT: There is no fiscal impact as the City of Half Moon Bay’s appropriations, which are subject to the Gann limit, are well below the limit set by Gann. The FY 17‐18 Gann appropriation limit will be reduced by $424,750 from the previously approved amount to $29,683,078. STRATEGIC ELEMENT: This recommendation supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan. BACKGROUND: The Gann Spending Limitation Initiative (Proposition 4) was approved by California voters in November 1979. This Proposition set appropriation limits for state and local governments in California and established procedures for determining those limits annually. Each government entity is required to set its Appropriations Limit each fiscal year with 1978 ‐1979 as the base year; then adjust each subsequent year by using a combination of increase in population, plus increase in CPI or per capita personal income, whichever is less. Proposition 4 and its implementing legislation Chapter 1205/80 were modified by Proposition 111 and SB 88 (Chapter 60/90). Beginning with the fiscal year 1990‐1991 Appropriations Limit, the annual adjustment factors changed. Annually, the government entity can select the greater of growth in the California Per Capita Income, or growth in assessed valuation due to non ‐ residential construction within the City. For the population factor, the entity can select the greater of population growth within the City or County. State law requires that every city in California prepare calculations each fiscal year. The formula used to make these calculations involves adjusting the city’s previous “Gann limit” by various

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September 5, 2017 Revised FY 2017‐18 GANN Appropriation Limit Page 2 of 2

factors, including population and per capita income. Once calculated, cities are not permitted to spend more than their calculated Gann limits. The change factors are provided by the State Department of Finance. Council previously approved the original FY 2017‐18 Gann Appropriation Limit in the amount of $30,107,828 on June 20, 2017 in conjunction with the FY 2017‐18 Adopted Budget. DISCUSSION: Staff calculated the original Gann limit by applying the percent growth in State Per Capita Personal Income (3.69%) and the percent growth in County Population (0.56%) to the FY 2016‐17 adopted limit of $28,874,687. While performing annual agreed‐upon procedures to review the City’s Gann limit, the City’s auditors, Maze & Associates, discovered an error that was made in the FY 2014‐15 Gann Limit calculation, causing the limit for that year to be overstated. Although the City’s Gann limit calculations were done correctly for the FY 2015‐16, FY 2016‐17 and FY 2017‐18 budgets, the incorrect ending FY 2014‐15 Gann balance was carried over to future years. Staff reviewed the findings and agreed that the most recently approved Gann Limit appropriation should be re‐adopted to account for the cumulative effect of the error. The FY 2016‐17 limit was re‐calculated to be $28,467,334. Staff applied the same factors referenced above to this amount to determine the revised FY 2017‐18 Gann Appropriation limit of $29,683,078, which is $424,750 less than the originally adopted limit. The recalculation was reviewed and agreed to by the City’s auditors. This adjustment has no effect on the City’s budget and operations as the Gann limit only applies to “all taxes levied by and for” a government entity, which is primarily accounted for in the City’s General Fund and is well under the recalculated Gann limit. Staff does not expect Gann to be a limiting factor for the City in the foreseeable future. ATTACHMENT: Resolution to establish the revised Gann Appropriation limit for Fiscal Year 2017‐2018

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RESOLUTION NO. C‐2017__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY ESTABLISHING THE APPROPRIATION LIMIT PURSUANT TO CALIFORNIA CONSTITUTION ARTICLE XIII B, AND SECTION

7900 ET. SEQ OF THE CALIFORNIA GOVERNMENT CODE FOR FISCAL YEAR 2017‐2018 WHEREAS, Article XIII B is an amendment to the California Constitution placing a

restriction on the amount of proceeds of tax revenue which can be appropriated by state and local governments during a fiscal year; and

WHEREAS, the total appropriation subject to limitation shall not exceed the appropriation

limit of the City of Half Moon Bay for the prior fiscal year, as adjusted for inflationary and population changes; and

WHEREAS, the City Council is required to elect which adjustment factors will be used to

calculate the limit: (1) either the annual growth in California per capita personal income or the growth in non‐residential assessed valuation due to new construction within the City, and (2) either the population growth in the City of Half Moon Bay or population growth in the County of San Mateo, as provided by the State Department of Finance; and

WHEREAS, the Gann limit originally adopted by the City Council on June 20,2017 has been

revised; and WHEREAS, the City Council has considered the matter at a regular scheduled City Council

meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts the revised

appropriations limit for the fiscal year 2017‐18, as calculated in Exhibit A, and hereby determines the amount to be twenty‐nine million, six hundred eighty‐three thousand seventy‐eight dollars ($29,683,078) for the City of Half Moon Bay, pursuant to Article XIII B of the California Constitution. The City selected the following adjustment factors for the calculation of this amendment to the appropriations limit for the 2017‐18 fiscal year: (1) the population factor of the City of Half Moon Bay; and (2) the Percentage Change in Per Capita Personal Income over prior year, which were provided by the State of California Department of Finance in May 2017.

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***************************************************************** I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 5th day of September, 2017 by the City Council of Half Moon Bay by the following vote: AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED: ___________________________ _____________________________ Jessica Blair, City Clerk Debbie Ruddock, Mayor

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AGENDA REPORT For meeting of: September 5, 2017

TO: The Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Captain John Munsey, San Mateo County Sheriff’s Office TITLE: SUPPLEMENTAL LAW ENFORCEMENT SPECIAL FUND (SLESF) FOR CITIZEN’S

OPTION FOR PUBLIC SAFETY GRANT PROGRAM IN FISCAL YEAR 2017‐2018

RECOMMENDATION: Adopt a resolution authorizing the Finance Director to accept the State of California Citizen’s Option for Public Safety Grant Funds for Fiscal Year 2017‐2018 in the amount of $100,000 and approve the use of those funds on projects, programs, and equipment that meet the conditions of the grant. FISCAL IMPACT: The grant cannot be used to fund the adopted budget and does not have a matching fund requirement. Therefore, there is no fiscal impact associated with this action. STRATEGIC ELEMENT: This action supports the Healthy Communities and Public Safety and Fiscal Sustainability Elements of the Strategic Plan. BACKGROUND: In FY 96‐97, the California State Legislature enacted Chapter 134 (AB3229 Brutle) creating the Citizen’s Option for Public Safety (COPS) Program. Under this program, cities and counties receive state funds to augment public safety expenditures. The City has participated in the COPS grant program for over a decade. The provisions of the COPS grant require that the funding be placed into a Supplemental Law Enforcement Services Fund (SLESF). The funds must be used to supplement, not supplant the delivery of front line law enforcement services through the use of projects, programs, and/or equipment that meet the conditions of the grant. Upon receipt of a signed City Council Resolution authorizing the disbursement of the funds, the County will release the funds to the City which will then be deposited in the City’s SLESF account. The funds will be used for projects, programs, and/or equipment designed to enhance the delivery of front line law enforcement services.

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COPS Grant Program September 5, 2017 Page 2 of 2

Staff is recommending that these funds be used to enhance the level of law enforcement services currently provided under contract by the San Mateo County Sheriff’s Office. Supplemental projects / programs to be funded by this grant for FY 17‐18 include:

Projects/Programs Description Amount

Youth Summit Conduct a fourth Youth Summit in the Spring of 2018 to promote positive choices by 8th graders entering high school.

$20,000

Augment Patrol Traffic Enforcement (Motorcycle) Parking Enforcement

Supplement patrol staffing levels with the intent of enhancing parking enforcement, traffic enforcement and patrol coverage. Deployment of said personnel would occur during peak business hours primarily on weekends and to assist with other special assignments as needed throughout the year.

$80,000

TOTAL AMOUNT NOT TO EXCEED $100,000

ATTACHMENT: Resolution authorizing the Finance Director to accept the State of California Citizen’s Option for Public Safety Grant Funds for Fiscal Year 2017‐2018 in the amount of $100,000

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Resolution No. C‐2017‐____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING

EXPENDITURES FROM THE SUPPLEMENTAL LAW ENFORCEMENT SPECIAL FUND (SLESF) FOR

CITIZEN’S OPTION FOR PUBLIC SAFETY GRANT PROGRAM FOR FISCAL YEAR 17‐18

WHEREAS, the California State Legislature enacted Chapter 134 (AB3229 Brutle) creating a City’s Option for Public Safety (COPS) Program; and WHEREAS, Under the COPS program, Cities and Counties receive state funds in the amount of $100,000 to augment public safety expenditures; and WHEREAS, the City of Half Moon Bay is participating in this grant and is proposing using the grant funds for supplemental projects and programs including the Youth Summit and for Traffic and Parking Enforcement. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the Finance Director to accept the State of California Citizen’s Option for Public Safety Grant Funds for Fiscal Year 2017‐18 in the Amount of $100,000 and approves the use of those funds on projects, programs, and equipment that meet the conditions of the grant.

***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 5th day of September, 2017 by the City Council of Half Moon Bay by the following vote: AYES, Councilmembers:





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AGENDA REPORT


TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Jessica Blair, City Clerk TITLE: COUNCILMEMBER TRAVEL REIMBURSEMENT POLICY ______________________________________________________________________________ RECOMMENDATION: Adopt the attached revised Councilmember travel reimbursement policy. FISCAL IMPACT: Adoption of this revision will result in additional travel reimbursements for driving in excess of 100 miles. STRATEGIC ELEMENT: This action supports the Fiscal Sustainability and Inclusive Governance Elements of the Strategic Plan. BACKGROUND: On April 5, 2016, the City Council adopted reimbursement policies relating to travel, materials, supplies, and expenses, and implemented a new compensation model. Since that time, staff has become aware that the travel reimbursement policy needed to be revised to clarify reimbursements related to mileage and out‐of‐town conferences / seminars. Under California law, Councilmembers are considered “employees” of the City – as such, they receive a salary and may be reimbursed for expenses they incur which are related to the performance of their official duties. With the adoption of this revised policy, Councilmembers will continue to receive reimbursement for work related travel and expenses as further described in the attached policy. DISCUSSION: Section IV, Paragraph C of the policy has been revised (Page 5) to state the following:

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Councilmembers shall not receive reimbursement for miles used when driving a private vehicle for City related business, unless they have driven outside of 100 miles from City Hall. If a Councilmember chooses to drive to a location instead of flying, when flying would have been the most logical and least expensive mode, mileage will not be reimbursed and instead the Councilmember will receive reimbursement of the cost of a flight. Staff recommends adopting the revised policy to provide further guidance to Councilmembers on out‐of‐town travel for City business. ATTACHMENT: Revised City Council Travel and Conferences Policy

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City Council Travel and Conferences Policy

Adopted April 5, 2016

Revised September 5, 2017

POLICY PURPOSE:

It is the purpose of this policy to define the City’s expectations of Councilmembers who travel in connection with their work responsibilities and to clarify which expenses the City will fund and which expenses are considered the personal responsibility of the traveler. Public resources should only be used when there is a substantial benefit to the City. In reimbursing travel and miscellaneous expenses, a municipal purpose requiring the expenditure of public funds must be in evidence and meet the criteria for eligible activities as further defined by this policy.

POLICY STATEMENT:

The City expects to pay all reasonable costs incurred by Councilmembers traveling on approved City business; travel is a privilege and not a right conferred by election; Councilmembers are expected to use sound fiscal stewardship when expending public funds, and to travel in the most logical and least expensive manner possible.

I. Authorized Reimbursable Expenses

City funds, equipment, supplies (including letterhead), and staff time must only be used for authorized City business. The City Council finds that expenses incurred by City Council members in connection with the following types of activities and/or events provide benefit to the City and constitute authorized expenses, as long as the other requirements of this Policy are met, and do not require prior City Council approval: A. Representing the City in a Council‐approved/ratified

Intergovernmental Relations role.

B. Advocating official City positions on key legislation, policies or programs.

C. Meeting with state and federal government officials to discuss the

community’s concerns and City policy positions

D. Meeting with representatives of local organizations and intergovernmental agencies to discuss matters affecting the interests

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of the City

E. Attending a conference or meeting arranged by an organization of which the City is a member or whose activities affect the City’s interests.

F. Conducting presentations at a conference or workshop with the goal

of improving the efficiency and performance of government in general.

G. Attending City events or recognize services to the City or community

(ex: volunteer appreciation events)

H. Admission to events. Admission to the following events for City Council members are authorized expenditures:

1. City‐sponsored events, which shall mean either an event to

which the City has contributed funding or in‐kind services or designated as a City‐sponsored event by the City Council.

2. Fundraising events where the proceeds of the event benefit a

civic, cultural, educational, or charitable organization providing services to Half Moon Bay residents or businesses. Fundraising event tickets in excess of $100.00 per ticket require prior City Council approval. Any acknowledgement of the contribution by the recipient organization shall attribute the City of Half Moon Bay as the source of funding.

3. Educational seminars, workshops and conferences to become

better informed regarding key legislation, policies or programs impacting local government. Key conferences include the National League of Cities (NLC) Congressional City Conference; the NLC Congress of Cities and Exposition; and the League of California Cities’ (LCC) Annual Conference and Exposition.

4. Payment or reimbursement by the City for admission to events

which are not authorized above must be approved by the City Council in advance of the payment or reimbursement.

All other expenditures, including, but not limited to international and out of state travel, require prior approval by the City Council. The Councilmember proposing to incur the expense must provide information on the official nature or the activity and benefit to be obtained, along with the estimated cost. The

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Council shall not withhold approval of an expenditure unless it finds: (a) the proposed activity is unofficial or personal in nature; (b) such activity would have no benefit to the City; or (c) the estimated cost is excessive in relation to the proposed benefit. City Council members should notify other members and the City Manager prior to any out‐of‐state official travel, unless the travel was specifically included in the adopted City budget.

II. Travel Budgets

A. Council shall establish travel budgets as part of the annual City budget process.

B. Travel budgets for Councilmembers up for election or due to leave office

in any particular year shall be prorated to ensure adequate travel funds are available for incoming Councilmembers. Further, the percentage of travel funds allocated to outgoing/incoming Councilmembers shall be determined by staff and based on ensuring the ability of whoever is in office at the time to attend the scheduled dates of the League of California Cities’ (LCC) Annual Conference and Exposition and monthly Council of Cities and Peninsula Division events. Any unspent funds allocated to an outgoing Councilmember’s seat shall be carried over to the incoming Councilmember’s budget.

C. Each Councilmember will be provided with an update of his/her travel

budget, including balance and itemization of expenses on an as needed basis by the Finance Director. The Finance Director shall send a notification to any Councilmember whose budget is close to being overdrawn, copying the City Manager.

D. Councilmembers shall not exceed authorized amounts budgeted for travel.

Any and all travel expenses in excess of a Councilmember’s approved budget shall be reimbursed to the City by the Councilmember.

E. Mid‐year increases in travel budgets are discouraged and shall generally

be considered only if Councilmembers can demonstrate that additional amounts are for unforeseen expenses that could not be anticipated prior to the initial adoption of the annual travel budget.

F. There are three ways for a Councilmember to increase his/her

approved travel budget:

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1. The adopted travel budget can be amended on a case‐by‐case basis during the fiscal year by approval of the City Council at a public meeting. Councilmembers desiring an increase in their annual travel budget shall provide an estimate of the additional amount prior to actual travel or expenditure of funds. Justifications for the budget increase shall also be included with the request for additional funds. All increases in travel budgets must be approved by a majority vote of the full Council prior to actual travel or expenditure of additional funds.

2. Councilmembers may choose at any time to relinquish a portion of

their unspent travel budget to another Councilmember. Any Councilmember wishing to do so shall notify the Finance Department Director and the City Manager in writing. Otherwise, the remaining balance of unspent funds at the end of the fiscal year shall return to the General Fund.

3. Through a mid‐year budget increase pursuant to Section II, E above.

III. Travel Arrangements

A. Travel arrangements shall be made as far in advance as possible to obtain the best possible fares and rates. Registration for conferences and training shall be made far enough in advance to take advantage of early (discounted) fees, and to avoid late registration fees. If travel arrangements must be canceled for any reason, the City staff member who made the arrangements shall cancel them in sufficient time to prevent the City from incurring unnecessary costs when possible.

B. City staff shall make arrangements for City Council travel including

registrations, transportation and lodging. IV. Transportation

A. Travelers shall use whatever mode of transportation is the most logical and least expensive. If a Councilmember elects to use a mode of transportation other than the most logical and least expensive, the City shall pay only the cost of the most logical and least expensive mode.

B. Air Travel. Councilmembers shall not limit their air travel options by

specifying an airline. The airline offering the lowest fare for a logical route shall be selected.

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C. Use of Private Vehicles. Councilmembers shall be granted a monthly auto allowance of $100.00 to compensate them for use of a private vehicle. The City shall pay all expenses, such as bridge tolls and parking fees, incurred as the result of a Councilmember’s use of a private vehicle while traveling on City business. Councilmembers requesting reimbursement for the payment of such expenses shall obtain receipts and submit them with their Payment Request Form. To drive a privately owned vehicle on City business, Councilmembers must possess a valid California driver’s license and must adhere to the guidelines established in the Vehicle Use Policy. Councilmembers shall not receive reimbursement for miles used when driving a private vehicle for City related business, unless they have driven outside of 100 miles from City Hall. If a Councilmember chooses to drive to a location instead of flying, when flying would have been the most logical and least expensive mode, mileage will not be reimbursed and instead, the Councilmember will receive reimbursement of the cost of a flight.1 A driver of a privately owned vehicle must also carry adequate liability insurance coverage and comply with the City’s Vehicle Use Policy, and be responsible for any damage, service, or repair to the car occurring on the trip.

D. Train and Other Mass Transit. Councilmembers shall be compensated for

train or other mass transit fares and fees provided that it is the most logical and least expensive method of travel.

E. Ground Transportation at Destination. Supplementary transportation

within the destination city shall be accomplished by hotel courtesy buses, local shuttle services or public transportation, if available and logical. Taxi or car service may be used when no other convenient, less costly mode of transportation is available.

F. Rental Vehicles. Rental vehicles shall be used only when no other mode of

transportation is available or when alternate transportation would be more expensive or impractical and must be authorized in advance. If a rental vehicle is authorized, Councilmembers shall request the least expensive vehicle category that meets their needs. Optional insurance offered by the rental agency should be declined.

V. Lodging

A. The City shall pay lodging expenses for approved travel, including the evening preceding or subsequent to a meeting or business event when the Councilmember would otherwise have to travel from his/her

1 Revised September 5, 2017

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residence before 6 a.m. or after 9 p.m. to reach or return from his or her destination.

B. When there is not a specific lodging site associated with official City

business, the City shall pay for actual lodging expenses. Every effort shall be made to obtain lodging at or near the facility where official City business is to take place to minimize travel time and transportation costs. The lodging should also be clean, safe and appropriate for business travel. Government rates are often available and should be sought.

C. The City shall pay only for standard single rooms at conference,

government or corporate rates. The City shall pay additional charges for a double room only if two Councilmembers share the room. Additional charges arising from the registration or the sharing of a room with a spouse or guest are not reimbursable.

D. Councilmembers shall notify the City Clerk regarding any reservations

for lodging they will not use. Any charge for an unused reservation shall be considered the Councilmember’s personal expense unless failure to cancel the reservation was due to circumstances reasonably beyond the Councilmember’s control.

VI. Meals

A. The City shall pay for a Councilmember’s meals during authorized travel, including tax and tips, except that the City shall not pay for the following:

1. Breakfast on the first day of travel.

2. Meals that the Councilmember elects to purchase from another

source when the meals are included in the cost of a conference, training registration fee, or hotel stay.

3. Alcoholic beverages.

B. The City shall pay for meals during partial days of travel on a pro‐rated

basis, as follows:

1. If the partial day includes travel before 8 a.m., the City shall pay for breakfast.

2. If the partial day includes travel between 11 a.m. and 1 p.m., the

City shall pay for lunch.

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3. If the partial day includes travel after 5 p.m., the City shall pay for

dinner.

VII. Miscellaneous Fees/Business Expenses.

A. Gratuities/Tips. The City shall pay reasonable and customary gratuities and tips during City business travel.

B. Business Expenses. The City shall pay for goods and/or services deemed

necessary for the completion of official business, such as faxes, copier and computer usage, etc.; for Internet usage at actual cost and for all business telephone calls. Collect calls should be avoided. Fees which include use of local calls, wireless Internet access, or other such amenities shall be covered by the City. The City shall also pay for printed materials, or other training materials that may be available for sale at training, conferences, etc., provided that the materials are of benefit to the City and shall remain the City's property.

C. Baggage Fees. If the airline charges for all checked baggage, the City shall

cover the cost for one checked bag only. Excess baggage charges are not reimbursable.

D. Personal Expenses. Personal expenses shall not be paid by the City. In

addition to those items identified as personal expenses throughout this policy, personal expenses include family expenses for spouse/partner, children and pets when accompanying official on City‐related business, personal telephone calls, in‐room movies, spas and gyms, optional recreational events in connection with a conference, laundry or dry cleaning, miscellaneous sundries, or other items of a personal nature. .

VIII. Payment of Expenses

Councilmembers may pay for allowable expenses out of pocket and will be reimbursed

upon completion of travel. The City does not issue credit cards to individual City Council members, but does have City credit cards that can be used for payment of selected City expenses. Assigned staff can assist City Council members arrange their travel in advance and use the City’s credit card for such purposes as conference registration, airline tickets, and hotel reservations. The City’s credit cards may not be used for personal expenses, even if the City Council member intends to reimburse the City.

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IX. Settlement of Expenses

A. Within three weeks of a Councilmember’s return from a business trip, a final accounting of all expenses associated with the trip shall be made by completing a Payment Request Form, attaching original receipts substantiating all reported expenses with the exception of meals, and submitting the report to the City Clerk to be forwarded to the Finance Department.

B. If the Councilmember personally paid for allowable business trip

expenses, the City shall reimburse the Council member through the Accounts Payable process. Reimbursement of travel expenses received from an outside source must be forwarded to the City Clerk upon receipt.

C. The City Clerk will approve Council expense statements. If

reimbursement for an expense is disputed, the Mayor will determine if the expense is authorized.

D. To the extent that another agency or organization pays for the travel or

conference expenses of a Councilmember, the City shall not pay for those same expenses. Councilmembers shall either submit the other agency’s payment to the City (in which case the City shall pay for the Councilmember’s entire expenses), or refrain from claiming expenses for that portion of his/her expenses paid for by the other agency.

E. For multiple Council meals paid for by a single Councilmember, the total

expense for the meal shall be submitted on the expense report of the paying Councilmember, along with a written breakdown of amounts to be charged to the budgets of other Councilmembers.

X. Compliance with State Law

A. As required by Government Code Section 53232.3, Councilmembers shall

provide brief reports on meetings attended at the expense of the City at the next regular City Council meeting immediately following the event for which reimbursement is sought. If more than one Councilmember attends the event, a report from one of the members that mentions the other’s presence is sufficient.

B. All documents related to expenditures are public records subject to disclosure

under the California Public Records Act.

C. City Council members should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws.

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XI. Audits

The Department of Finance shall conduct periodic audits to ensure compliance with this policy. Audit results shall be submitted to the City Manager.

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AGENDA REPORT For meeting of: September 5, 2017

TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Dan Barros, Public Works Superintendent TITLE: PENINSULA CLEAN ENERGY MUNICIPAL ELECTRICITY ACCOUNTS—

ENROLLMENT OPTION ______________________________________________________________________________

RECOMMENDATION: Adopt a resolution authorizing the move of the municipal electricity accounts with Peninsula Clean Energy from the ECOplus plan to the ECO100 plan to further reduce the City’s greenhouse gas emissions.

FISCAL IMPACT:

Enrollment in the Peninsula Clear Energy ECO100 plan option would increase the City’s municipal electricity bills by an estimated $4,714 annually more than the current ECOplus plan option, for a total annual cost of $91,411 per year. There is sufficient funding in the City’s 2017‐18 adopted budget to cover these costs.

STRATEGIC ELEMENT: This recommendation supports the Infrastructure and Environment Element.

BACKGROUND: In May of 2016, a Joint Powers Agreement was finalized relating to and creating the Peninsula Clean Energy Authority. Peninsula Clean Energy (PCE) became the official energy provider for San Mateo County in October 2016. As a member of the JPA, the City of Half Moon Bay had two options to take advantage of the Peninsula Clean Energy service. The options were that the City could be automatically enrolled in the PCE ECOplus plan (50 percent renewable and 75 percent carbon‐free energy) or the City could opt‐up to the ECO100 plan (100 percent renewable and 100 percent carbon‐free energy). The City elected to enroll automatically with the ECOplus option and to revisit the ECO100 option at a later date. Staff recently further analyzed the benefits of the Peninsula Clean Energy ECO100 option and how the upgrade would fiscally impact the City. Staff was presented an analysis from PCE to determine the relative cost differential between the different plan options and compared them to the current annual costs of PG&E service. The analysis was based on an aggregation of the City’s municipal accounts from 2016 with

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September 5, 2017 Peninsula Clean Energy, Municipal Electricity Accounts—Enrollment option Page 2 of 2

assumptions made regarding which portion of the total expense was for electricity usage versus transmission fees. The calculations represented a rough order of magnitude estimate of the potential cost differences. PG&E and PCE also reviewed the staff’s calculations and agreed that the methodology was sound. The analysis showed that the existing ECOplus option currently results in a net savings of roughly $2,337 per year for the City over PG&E rates, or roughly 2.7% below our previous electricity costs. Opting up to the ECO100 plan would annually cost the City $2,377 over current PG&E rates and roughly $4,714 more than the default ECOplus option, in which the City is currently enrolled. PCE ECO100 Enrollment for 2017‐2018 Since the enrollment into the ECOplus plan in October 2016, PCE sent updated account information based on recent billing information. Table 1: PCE Yearly Data Comparisons for City of Half Moon Bay Municipal Accounts

Energy Plan Options

Emission Reductions from PG&E (MTCO2/Year)

Total Combined Municipal Accounts Annual Cost ($)

Total Net Difference from PG&E Annually ($)

Total Net Difference from PG&E Annually (%)

Total Net Difference from ECOplus Annually ($)

Tal Net Difference from ECOplus Annually (%)

PG&E (estimated)

N/A $89,034 0

PCE ECOplus (estimated)

37 $86,697 ($2,337) ‐2.7%

PCE ECO100 (estimated)

87 $91,411 $2,377 2.7% $4,714 5.4%

The current data from PCE shows that the ECO100 plan is estimated to cost the City roughly $4,714 annually over current ECOplus rates. The adopted Fiscal Year 2017‐18 Budget provided for enough funds in our utility cost allocations for the increased cost for opting up to ECO100, should Council authorize the move to ECO100. The ECO100 plan provides the greatest level of Greenhouse Gas (GHG) emission reductions. Based on PCE’s calculations, the ECO100 plan would reduce the City’s municipal GHG emissions by 87 metric tons of carbon dioxide (MTCO2) per year or a 100% reduction from PG&E’s power mix. The ECOplus plan currently reduces GHG emissions by 37 MTCO2 per year over PG&E’s power mix.

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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE MOVE OF THE CITY’S MUNICIPAL ELECTRICITY ACCOUNTS WITH

PENINSULA CLEAN ENERGY FROM THE ECOPLUS PLAN TO THE ECO100 PLAN

WHEREAS, in May 2016, a Joint Powers Agreement was finalized relating to and creating

the Peninsula Clean Energy Authority;

WHEREAS, Peninsula Clean Energy (PCE) became the official energy provider for San Mateo County in October 2016;

WHEREAS, as a member of the JPA, the City of Half Moon Bay had two options to take advantage of the Peninsula Clean Energy service: the City could be automatically enrolled in the PCE ECOplus plan (50 percent renewable and 75 percent carbon‐free energy) or the City could opt‐up to the ECO100 plan (100 percent renewable and 100 percent carbon‐free energy);

WHEREAS, The City elected to enroll automatically with the ECOplus option and to

revisit the ECO100 option at a later date; and

WHEREAS, on September 5, 2017, the City Council directed staff to move the City’s

accounts to the ECO100 option.

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay hereby authorizes the Public Works Director to move the City’s municipal electricity accounts with Peninsula Clean Energy from the ECOplus Plan to the ECO100 Plan.

*****************************************************************

I, the undersigned, hereby certify that the foregoing Resolution was duly passed and adopted on the 5th day of September, 2017 by the City Council of Half Moon Bay by the following vote: AYES, Councilmembers:





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AGENDA REPORT


TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: John T. Doughty, Public Works Director Jennifer Chong, Management Analyst TITLE: SOLID WASTE FRANCHISE AGREEMENT ADOPTION ______________________________________________________________________________ RECOMMENDATION:

1) Adopt a resolution authorizing the Mayor to sign and execute a new, 10‐year Franchise Agreement with Republic Services, Inc. for Residential and Commercial Garbage, Recyclable Material and Organic Waste Collection Services starting on April 1, 2018; and

2) Adopt a resolution authorizing the City Manager to execute Amendment No. 4 to the current Franchise Agreement extending the expiration date to March 31, 2018.

FISCAL IMPACT: There is no General Fund fiscal impact associated with the requested action. The cost for providing solid waste services to the City’s residents and businesses are covered by the customer rates established by the City’s franchised hauler and paid by those receiving the services. Based on the proposed customer rates and estimated revenue as provided by Republic Services, the estimated annual revenue received by Republic for the first year of the contract will be approximately $3.6M. The Franchise Agreement includes a Consumer Price Index (CPI) annual rate adjustment of 1‐4%. STRATEGIC ELEMENT: This recommendation supports the Infrastructure and Environment, Healthy Communities and Public Safety, and Inclusive Governance Elements of the Strategic Plan. BACKGROUND: Republic Services, Inc. (aka Allied Waste Services) currently has an exclusive franchise to provide solid waste, recyclables, green waste, and street sweeping services in Half Moon Bay. The current franchise agreement expires December 31, 2017. At the direction of the City Council, staff and R3 Consulting Group, Inc. (R3), the City’s solid waste consultant, prepared and released a Request for Proposals (RFP) for Residential and Commercial Garbage, Recyclable Material, and Organic Waste Collection Services. The RFP was

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September 5, 2017 Solid Waste Franchise Agreement Adoption Page 2 of 8

released on January 31, 2017 with a due date of April 4, 2017. On April 4, 2017, the City received formal proposals from Recology of the Coast (Recology) and Republic Services (Republic). At the request of the City Council, staff and R3 issued a request for Best and Final Offers (BAFOs) inclusive of residential food scraps to both proposers on June 21, 2017 with a due date of July 5, 2017. City staff and R3 met with each of the proposers on June 22, 2017 to discuss the request for BAFOs and provide any necessary clarifications. On July 5, 2017, the City received BAFOs from Recology and Republic. The evaluation team, consisting of one (1) City staff member and two (2) representatives from R3, scored each proposal (inclusive of the original proposal, answers to clarifying questions, an interview, and the BAFO) independently out of 100 points. The cumulative scores from the evaluation team are displayed in Table 1.

TABLE 1 Proposers’ Cumulative Scores Per Evaluation Criteria

RFP Criteria Recology Republic

Qualifications (45 points) 34 37

Technical Approach (75 points) 51 67

Sustainability Programs (75 points) 54 57

Service Recipient Rates (105 points) 105 104

Total (300 points) 244 265

* All total scores have been rounded to the nearest whole number

On July 12, 2017, the Finance Subcommittee (Subcommittee) recommended that the City Council authorize staff to enter into negotiations with Republic Services for a ten (10) year franchise agreement for solid waste services inclusive of Alternative #3 (two annual Household Hazardous Waste drop‐off collection events). On July 18, 2017, the City Council unanimously voted to support the Finance Subcommittee recommendation and authorized staff to commence negotiations with Republic Services. On August 3, 2017, the Subcommittee met to receive an update on negotiations for the new Franchise Agreement including a request to consider modifying the start date of the Franchise Agreement to improve effectiveness of rollout of new/modified programs and services. The Subcommittee is recommending extension of the current Franchise Agreement through March 31, 2018 and start new services on April 1, 2018. Staff, R3, and Republic engaged in extensive negotiations and conversations, which resulted in the proposed Franchise Agreement.

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DISCUSSION: In December of 2015, the City Council, in response to community calls for transparency, directed staff to commence formal and open solicitation for solid waste and street sweeping services in Half Moon Bay. The process identified by staff and affirmed by the City Council included: 1) solicitation and contracting of professional services to assist staff and City Council; 2) preparation and release of a Request for Proposals (RFP); 3) review of proposals; 4) negotiation of a Franchise Agreement with chosen firm; and 5) implementation of new/modified programs and services. As noted earlier, R3 has provided direct assistance to staff, including community outreach and preparation of the RFP and draft Franchise Agreement. The process itself was developed and implemented with community transparency in mind. The process included a community meeting, a City Council Study Session, several publicly noticed meetings of the Finance Subcommittee as well as a series of publicly noticed City Council action items. Additionally, the City offered a survey opportunity for customers prior to the release of the RFP. The survey results helped to form the scope of services of this Agreement which includes curbside organics for all customers. There are two actions being requested of the City Council. These are described below: A. Approval of New Ten‐Year Franchise Agreement To complete negotiations of the Franchise Agreement, staff, consultants, and Republic restructured the rates and negotiated agreement terms. The rate structure was presented to the Finance Subcommittee and the City Council. On July 18, 2017, the City Council affirmed the rate structure which are included in Tables 2, 3 and 4 below. Since July, staff and the consultant team have been in discussions with Republic to finalize all terms. Exhibit A to the Resolution includes the Franchise Agreement. The following is a brief synopsis of the agreement. Exclusive Franchise: The Franchise Agreement provides Republic the exclusive right and

privilege to use City streets to collect, transport, recycle, process and dispose of all garbage, recyclable materials, food waste, green waste, and bulky waste within the City of Half Moon Bay.

Term: The agreement is for 10 years starting on April 1, 2018, with a five‐year extension option.

Customer Rates: Through the agreement, the City is regulating the maximum rates that the service provider may charge. Rates are set through March 31, 2019. Consumer Price Index (CPI) will be applied to the rates after March 31, 2018 (see Future Rate Adjustment Methodology section below). Garbage rates include basic trash, recycling, and organics collection. The rate structure includes other additional services based on the customer type as affirmed by the City Council on July 18, 2017.

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Single‐Family Dwellings (SFDs) are residential premises containing no more than four (4) Dwelling Units. SFD garbage rates (see Table 2) includes a 64‐gallon recycling cart; a 96‐gallon organic waste cart (inclusive of food scraps); weekly curbside collection of used motor oil, household batteries, and cell phones; curbside Christmas tree collection; and two (2) annual bulky waste collections.

Multi‐Family Dwellings (MFDs) are residential premises containing five (5) or more Dwelling Units. MFD garbage rates (see Table 3) include 32 gallons of recycling per unit; 20 gallons of organic waste per unit (inclusive of food scraps); curbside Christmas tree collection; and two (2) annual bulky waste collections.

Commercial garbage rates (see Table, page 5) include 96 gallons of recycling per Service Recipient and 32 gallons of organic waste (inclusive of food scraps) per Service Recipient.

Table 2Single‐Family Dwelling (SFD) Rates

Container Size Garbage Rates

20‐Gallon $23.01

32‐Gallon $36.99

64‐Gallon $67.34

96‐Gallon N/A

Table 3Multi‐Family Dwelling (MFD) Rates

Container Size Garbage Rates Organic Rates (Yard Trimmings &

Food)

20‐Gallon $34.66 $27.18

32‐Gallon $36.13 $28.36

64‐Gallon $72.20 $56.68

96‐Gallon $108.31 $85.01

1‐Yard $177.79 $139.65

1.5‐Yard $266.70 $209.48

2‐Yard $355.68 $279.37

3‐Yard $533.51 $419.05

4‐Yard $711.38 n/a

6‐Yard $1,173.73 n/a

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Republic Services will pay the City a franchise fee at a negotiated rate of fourteen percent (14%) of their annual revenue. The franchise fee will off‐set costs and impacts associated with Republic’s use of streets, roadways and related services, and will be paid by Republic for the exclusive privilege of using City streets and providing the subject services over the next ten years. Additionally, rates include a monthly administrative support payment of $6,000 for the City’s cost of managing the solid waste program with CalRecycle and monitoring/managing the Franchise Agreement itself.

Future Rate Adjustment Methodology: Rates, beginning April 1, 2019, are subject to annual adjustments based on the Consumer Price Index (CPI). Annual rate adjustments have a ceiling of four percent (4%) and a floor of one percent (1%).

Additional Services: Republic must provide garbage, recycling, organic waste, and debris

box collection service at all City buildings, facilities, and City‐supported events at no cost. Republic must also provide other “value added” services including compost giveaways, shred events, Household Hazardous Waste (HHW) collection events, school tours of Ox Mountain, Poplar beach clean‐ups, City code enforcement clean‐up, and an annual scholarship award.

Street Sweeping Services: Republic must provide street sweeping services as part of this exclusive franchise. Street sweeping includes weekly sweeping of downtown streets and City parking lots, every other week sweeping of Lewis Foster Drive while school is in session, and monthly sweeping of all other streets in Half Moon Bay.

Hauler Diversion Requirements: Republic shall meet diversion requirements that either meet or exceed state mandates AB 341 and AB 1826 phased in over three to five years. AB 341 sets a minimum requirement for recycling for Commercial and MFDs. Similarly, AB 1826 sets minimum requirements for organics for Commercial and MFDs.

Table 4Commercial Rates

Container Size Garbage Rates Organic Rates (Yard Trimmings & Food)

Organic Rates (Yard Trimmings ONLY)

20‐Gallon $33.98 $27.18 $23.78

32‐Gallon $35.45 $28.36 $24.82

64‐Gallon $70.85 $56.68 $49.59

96‐Gallon $106.27 $85.01 $75.13

1‐Yard $174.56 $139.65 $122.19

1.5‐Yard $261.85 $209.48 $183.29

2‐Yard $349.21 $279.37 $244.45

3‐Yard $523.81 $419.05 $366.67

4‐Yard $698.45 n/a $488.91

6‐Yard $1,152.09 n/a $806.46

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Public Education and Outreach: Republic will provide public education and outreach to

increase customer knowledge and buy‐in of the new programs, and to assist in meeting the diversion and sustainability goals of the City. Republic’s public education and outreach plan includes:

Robust residential outreach: quarterly newsletters, brochures, bill inserts, in‐molded graphics on carts;

Robust commercial outreach: expanded waste assessments, technical support and outreach materials with focus on AB1826 and furthering AB341 compliance;

Proprietary tablet based apps for real‐time diversion planning and reporting – Eco‐Diversion Calculator®;

Multilingual outreach materials; and

Strong community partnership and events.

Recycling Specialist: Republic must provide a Recycling Specialist to work on Half Moon Bay programs. Republic’s Recycling Specialist must spend an average of 20 hours per week on Half Moon Bay projects throughout the duration of the contract; with the understanding that the hours will be frontloaded during the first three years of the contract and decrease during the latter years. During the first two years of the contract, Republic’s Recycling Specialist is to spend, on average, at least ten (10) hours per week conducting field work within the City limits of Half Moon Bay (e.g. site audits, community meetings, trainings). From year three and onwards, the Recycling Specialist must spend, on average, five (5) hours per week conducting field work within the City limits of Half Moon Bay.

Reporting: Republic is required to submit quarterly and annual reporting. At a minimum, the reports must include: tonnage collected, processed, marketed and disposed divided by customer type; AB 341 and 1826 compliance data; street sweeping summary; operational problems and actions taken; summary of payments to City; and public education and information activities (historical and proposed).

Liquidated Damages: Republic agrees that the intent of entering an exclusive franchise agreement is to ensure high quality collection service, meet required diversion levels, and divert materials collected to their highest and best use. As such, Republic will pay liquidated damages for failure to meet contract requirements. The City may assess liquidated damages for failures including, but not limited to: failure to submit payments and reports to the City on time; failure to repair damaged customer property, City property or City streets caused by Contractor or its personnel; disposal of separated recyclable materials or organic waste in disposal facility; failure to deliver garbage to the disposal facility; and failure to meet the minimum diversion requirements.

Equipment: Republic will continue to use the vehicles currently in service at the

beginning of the contract and will replace them with new vehicles during years two through five of the agreement. A street sweeper and rear‐end lad truck will be

30


purchased for the start of the agreement. New carts and/or new or refurbished bins will be provided for all customers with labeling and/or graphics instructing on proper use.

RFP Reimbursement: Republic is required to submit $150,000 to the City as

reimbursement of the General Fund for the cost of the solicitation process. This payment was included as part of the released RFP.

B. Extension of Existing Franchise Agreement As part of initial negotiations, staff, consultants and Republic Services agreed that a start date of January 1, 2018 did not afford the best opportunity for a seamless transition in programs and services. For example, the ideal transition plan would include a mail announcement for Single‐Family Dwellings (SFDs) that would request return service from the customer with their preferred garbage cart size. This would allow Republic to collect data from the SFDs so that they could order the appropriate amount of garbage carts with enough surplus to cover transition requests throughout the term of the Agreement. Due to the extended lead time required to purchase carts, the final cart order would have to be placed in early October in order to meet the January 1, 2018 deadline. Consequently, the mail announcements for SFDs would have to be developed and sent out in early September, leaving little to no window for SFD customers to respond. Furthermore, Republic proposes to perform site visits and assessments of each Commercial customer in Half Moon Bay as part of the implementation process of the new Franchise Agreement. Completing this task before January 1, 2018 would require 100% cooperation and response from the customers and assumes that they would have time to meet with Republic before this date. It is further complicated when considering businesses that have corporate offices that require notification to be routed through a chain of command, often causing significant delays. Additional delays could likely result from the transition period falling within the holiday season (November‐December). Based on previous experiences, many customers either go out of town or are so focused on the holiday season that any educational messaging conducted for the new programs and services are completely lost. Even if the customers remain in the area, they are often reluctant to respond to requests or take on new projects before the start of the New Year. Successful implementation of the new Franchise Agreement will be heavily dependent on the foundation laid before the services begin. For all the reasons stated above, staff and the consultant team recommend a three (3) month extension of the current Franchise Agreement through March 31, 2018. It is important to note that outreach and education for the services in the new Franchise Agreement will begin immediately. As part of the proposed Amendment No. 4 to the current agreement, staff and Republic have negotiated additional street sweeping to compensate for deferred street sweeping due to

31


PG&E construction throughout much of the City. The expanded street sweeping services have been included in the new Franchise Agreement in addition to Amendment No. 4 to the current Franchise Agreement. Conclusion The City Council directed staff to initiate an open, public solicitation of solid waste services to ensure that services were aligned with current and anticipated State laws and regulations, services provided to customers are better aligned with their service wants, and that customer rates are fair. Following an extensive solicitation process that included detailed evaluation and review of two proposals (inclusive of interviews, site visits, three rounds of follow‐up questions and a request for Best and Final Offers (BAFOs)) and 45‐days of negotiations, staff believes the proposed Franchise Agreement achieves the objectives of City Council. Next Steps Staff and Republic are very excited to begin promoting the new programs and services of the new Franchise Agreement. Upon City Council’s approval of Amendment No. 4 and the new Franchise Agreement, staff, R3, and Republic will immediately begin the implementation process of the new Franchise Agreement. The implementation process will include design and distribution of various education material including the aforementioned mailed announcement for single family customers, notices reminding customers of the bulky waste collection service, and posters for Multi‐Family Dwellings (MFDs) and Commercial customers displaying appropriate use of the new carts and bins. Republic will schedule and conduct site visits and audits of MFDs and Commercial sites to provide educational materials, training, and recommendations for appropriate service levels under the new Franchise Agreement. Furthermore, Republic will attend community meetings, conduct presentations, and promote the new programs and services via newspaper ads. Staff will be heavily involved in the roll‐out process of the new Franchise Agreement. In addition to having weekly check‐in meetings with Republic throughout the implementation phase of the contract, staff will also be assisting with the design and review of all education and outreach material and will participate in site visits and audits. Staff and Republic look forward to beginning the education and outreach process for the new Franchise Agreement and are excited about the opportunity to continue to work in partnership to bring quality services to the constituents of Half Moon Bay. ATTACHMENTS:

1) Resolution authorizing the Mayor to sign and execute a new, 10‐year Franchise Agreement with Republic Services, Inc. for Residential and Commercial Garbage, Recyclable Material and Organic Waste Collection Services starting on April 1, 2018.

2) Resolution authorizing the City Manager to execute Amendment No. 4 to the current Franchise Agreement extending the expiration date to March 31, 2018.

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Resolution No. C-2017-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE MAYOR TO SIGN AND EXECUTE A 10-YEAR FRANCHISE AGREEMENT WITH

REPUBLIC SERVICES INC. FOR RESIDENTIAL AND COMMERCIAL GARBAGE, RECYCLABLE

MATERIAL AND ORGANIC WASTE COLLECTION SERVICES

WHEREAS, the solid waste franchise agreement with Republic Services, Inc. (AKA Allied

Waste Services) is being extended to March 31, 2018, pursuant the September 5, 2017 approval and authorization of the City Council, to provide for a more seamless transition in services; and

WHEREAS, the solid waste franchise agreement with Republic Services will now be

scheduled to expire on March 31, 2018; and

WHEREAS, the City must ensure that the services provided by the solid waste hauler, including without limitation curbside pick-up of solid waste and recycled materials, and the provision of street sweeping services, continues; and

WHEREAS, the City issued a Request for Proposals and engaged in a thorough process

and for evaluating the two formal proposal received for the continued provision of such

services; and

WHEREAS, the City, with assistance from its solid waste consultant, R3 Consulting, Inc.

(R3), found Republic Services to be the preferred provider; and

WHEREAS, the City Council directed staff to proceed with negotiating the Franchise

Agreement with Republic Services; and

WHEREAS, the City, with assistance from R3, actively engaged in negotiations with

Republic Services;

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay

hereby authorizes the Mayor to sign and execute a ten-year Franchise Agreement for Residential and Commercial Garbage, Recyclable Material and Organic Waste Collection Services with Republic Services, in substantially the same form as attached as Exhibit A to the Resolution.

33





ATTEST: APPROVED: ___________________________ _____________________________ Jessica Blair, City Clerk Debbie Ruddock, Mayor EXHIBIT A – Franchise Agreement for Residential and Commercial Garbage, Recyclable Material and Organic Waste Collection Services with Republic Services

34

EXHIBIT A

35

FRANCHISE AGREEMENT

For

RESIDENTIAL AND COMMERCIAL GARBAGE, RECYCLABLE MATERIAL AND ORGANIC WASTE COLLECTION

SERVICES

Between


And

REPUBLIC SERVICES OF SAN MATEO COUNTY

36

FRANCHISE AGREEMENT

Page 2 of 165

ORDINANCE NO. __________

FRANCHISE AGREEMENT FOR COLLECTION AND DISPOSAL OF SOLID WASTE AND

RECYCLABLES IN THE CITY OF HALF MOON BAY, CALIFORNIA

THIS FRANCHISE AGREEMENT (“Agreement”), is made and entered into at Half Moon Bay,

California, this ____ day of _______ 2017, (the “Effective Date”) by and between the City of Half

Moon Bay, hereinafter referred to as “CITY,” and BFI Waste Systems of North America, LLC, a

California Corporation, dba Republic Services of San Mateo County, a wholly-owned subsidiary

of Republic Services, Inc. hereinafter referred to as “CONTRACTOR”.

RECITALS:

WHEREAS; the Legislature of the State of California, by enactment of the California

Integrated Waste Management Act of 1989 (“Act”) and subsequent additions and amendments

(codified at California Public Resources Code Section 40000 et seq.), has declared that it is in

the public interest to authorize and require local agencies to make adequate provisions for

garbage collection within their jurisdiction; and,

WHEREAS; the State of California has found and declared that the amount of garbage

generated in California, coupled with diminishing landfill space and potential adverse

environmental impacts from landfilling and the need to conserve natural resources, have created

an urgent need for State and local agencies to enact and implement an aggressive integrated

waste management program. The State has, through enactment of the Act, directed the

responsible State agency, and all local agencies, to promote disposal site diversion and to

maximize the use of feasible garbage reduction, re-use, recycling, and composting options in

order to reduce the amount of garbage that must be disposed of in disposal sites; and,

WHEREAS; pursuant to its Charter and California Public Resources Code Section

40059(a) as may be amended from time to time, CITY has determined that the public health,

safety, and well-being require that an exclusive right be awarded to a qualified contractor to

provide for the collection of garbage, recyclable materials, and organic waste materials, except

for collection of materials excluded in CITY’S Municipal Code, and other services related to

meeting the Act’s 50 percent diversion goal and other requirements of the Act; and,

WHEREAS; CITY further declares its intent to regulate the maximum rates

CONTRACTOR may charge customers for the collection, transportation, processing, recycling,

composting, and/or disposal of garbage, recyclable materials, and organic waste materials; and,

WHEREAS; the City Council has determined that CONTRACTOR, by demonstrated

experience, reputation and capacity, is qualified to provide for the collection of garbage, recyclable

materials, and organic waste materials within the corporate limits of CITY, the transportation of

such material to appropriate places for processing, recycling, composting and/or disposal; and

City Council desires that CONTRACTOR be engaged to perform such services on the basis set

forth in this Agreement; and,

WHEREAS; CONTRACTOR, has represented that it has the ability and capacity to

provide for the collection of garbage, recyclable materials, and organic waste materials within the

corporate limits of CITY; the transportation of such material to appropriate places for processing,

recycling, composting and/or disposal; and the processing of materials.

Now, therefore, in consideration of the mutual covenants, conditions and consideration contained

herein, CITY and CONTRACTOR hereby agree as hereinafter set forth below:

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FRANCHISE AGREEMENT

Page 3 of 165

TABLE OF CONTENTS 1

ARTICLE 1. DEFINITIONS ............................................................................................. 6 2

ARTICLE 2. TERM OF AGREEMENT ........................................................................... 14 3

ARTICLE 3. SERVICES PROVIDED BY CONTRACTOR ............................................. 14 4

ARTICLE 4. CHARGES AND RATES ........................................................................... 22 5

ARTICLE 5. DIVERSION REQUIREMENTS ................................................................. 27 6

ARTICLE 6. SERVICE UNITS ....................................................................................... 30 7

ARTICLE 7. SFD COLLECTION SERVICES ................................................................ 31 8

ARTICLE 8. MFD COLLECTION SERVICES ................................................................ 35 9

ARTICLE 9. COMMERCIAL COLLECTION SERVICES ............................................... 37 10

ARTICLE 10. ADDITIONAL COLLECTION SERVICES ................................................ 41 11

ARTICLE 11. COLLECTION ROUTES .......................................................................... 50 12

ARTICLE 12. COLLECTION VEHICLES ....................................................................... 50 13

ARTICLE 13. CUSTOMER SERVICE ........................................................................... 51 14

ARTICLE 14. PUBLIC OUTREACH SERVICES ........................................................... 53 15

ARTICLE 15. EMERGENCY SERVICE PROVISIONS ................................................. 54 16

ARTICLE 16. RECORD KEEPING & REPORTING REQUIREMENTS ........................ 55 17

ARTICLE 17. NONDISCRIMINATION ........................................................................... 58 18

ARTICLE 18. SERVICE INQUIRIES AND COMPLAINTS ............................................. 58 19

ARTICLE 19. QUALITY OF PERFORMANCE OF CONTRACTOR .............................. 59 20

ARTICLE 20. BILLING AUDIT AND PERFORMANCE REVIEWS ................................ 62 21

ARTICLE 21. PERFORMANCE BOND ......................................................................... 64 22

ARTICLE 22. INSURANCE ........................................................................................... 65 23

ARTICLE 23. INDEMNIFICATION ................................................................................. 67 24

ARTICLE 24. DEFAULT OF AGREEMENT ................................................................... 70 25

ARTICLE 25. MODIFICATIONS TO THE AGREEMENT ............................................... 73 26

ARTICLE 26. LEGAL REPRESENTATION.................................................................... 75 27

ARTICLE 27. FINANCIAL INTEREST ........................................................................... 75 28

ARTICLE 28. CONTRACTOR'S PERSONNEL ............................................................. 75 29

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FRANCHISE AGREEMENT

Page 4 of 165

ARTICLE 29. EXEMPT WASTE .................................................................................... 76 30

ARTICLE 30. INDEPENDENT CONTRACTOR ............................................................ 76 31

ARTICLE 31. LAWS TO GOVERN ................................................................................ 76 32

ARTICLE 32. CONSENT TO JURISDICTION ............................................................... 76 33

ARTICLE 33. ASSIGNMENT ......................................................................................... 77 34

ARTICLE 34. COMPLIANCE WITH LAWS ................................................................... 78 35

ARTICLE 35. PERMITS AND LICENSES ..................................................................... 78 36

ARTICLE 36. OWNERSHIP OF WRITTEN MATERIALS .............................................. 78 37

ARTICLE 37. WAIVER .................................................................................................. 78 38

ARTICLE 38. PROHIBITION AGAINST GIFTS ............................................................. 78 39

ARTICLE 39. POINT OF CONTACT ............................................................................. 78 40

ARTICLE 40. CONFLICT OF INTEREST ...................................................................... 79 41

ARTICLE 41. NOTICES ................................................................................................ 79 42

ARTICLE 42. TRANSITION TO NEXT CONTRACTOR ................................................ 79 43

ARTICLE 43. CONTRACTOR’S RECORDS ................................................................. 80 44

ARTICLE 44. ENTIRE AGREEMENT ............................................................................ 80 45

ARTICLE 45. SEVERABILITY ....................................................................................... 80 46

ARTICLE 46. RIGHT TO REQUIRE PERFORMANCE ................................................. 81 47

ARTICLE 47. ALL PRIOR AGREEMENTS SUPERSEDED .......................................... 81 48

ARTICLE 48. HEADINGS ............................................................................................. 81 49

ARTICLE 49. EXHIBITS ................................................................................................ 81 50

ARTICLE 50. REPRESENTATIONS AND WARRANTIES............................................. 81 51

ARTICLE 51. EFFECTIVE DATE .................................................................................. 82 52

53

EXHIBIT 1 Maximum Service Rates (April 1, 2018 – March 31, 2019) 54

EXHIBIT 1A SFD Residential Rates 55

EXHIBIT 1B MFD Residential Rates 56

EXHIBIT 1C Commercial Rates 57

EXHIBIT 2 City Service Units 58

EXHIBIT 3 City-Supported Events 59

EXHIBIT 4 City Street Sweeping Locations 60 39

FRANCHISE AGREEMENT

Page 5 of 165

EXHIBIT 5 Detailed Rate Review Methodology 61

EXHIBIT 6 Transition Plan 62

EXHIBIT 7 Operations Plan 63

EXHIBIT 8 Customer Service Plan 64

EXHIBIT 9 Diversion Plan 65

EXHIBIT 10 Education and Outreach Plan 66

EXHIBIT 11 Vehicle and Container Inventory and Replacement Schedule 67

68

69

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ARTICLE 1. Definitions 70

For the purpose of this Collection Service Agreement, hereinafter referred to as "Agreement", the 71

definitions contained in this Article shall apply unless otherwise specifically stated. If a word or 72

phrase is not defined in this Article, the definition of such word or phrase as contained in the CITY 73

Municipal Code shall control. When not inconsistent with the context, words used in the present 74

tense include the future, words in the plural include the singular, and words in the singular include 75

the plural. Use of the masculine gender shall include the feminine gender. 76

1.01 AB 341. State of California Assembly Bill No. 341 approved October 5, 2011. AB 341 77

requires businesses, defined to include commercial or public entities that generate more than 4 78

cubic yards of commercial solid waste per week or multifamily residential dwellings of 5 units or 79

more to arrange for recycling services, on and after July 1, 2012. AB 341 requires jurisdictions, 80

on and after July 1, 2012, to implement a commercial solid waste recycling program. 81

1.02 AB 939. The California Integrated Waste Management Act of 1989, codified in part 82

at Public Resources Code §§ 40000 et seq., as it may be amended and as implemented by the 83

regulations of the California Department of Resources Recycling and Recovery (CalRecycle), or 84

its successor agency. 85

1.03 AB 1594. State of California Assembly Bill No. 1594 approved September 28, 2014. 86

AB 1594 provides that the use of green material as Alternative Daily Cover does not constitute 87

diversion through recycling and would be considered disposal. 88

1.04 AB 1826. State of California Assembly Bill No. 1826 approved September 28, 2014. 89

AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an organic waste 90

recycling program to divert organic waste from businesses. Each business meeting specific 91

organic waste or solid waste generation thresholds phased in from April 1, 2016 to January 1, 92

2020 is required to arrange for organic waste recycling services. 93

1.05 Agreement. This written document and all amendments thereto, between CITY and 94

CONTRACTOR, governing the provision of Collection Services as provided herein. 95

1.06 Agreement Year. Each twelve (12) month period from April 1st to March 31st during 96

the term of this Agreement, beginning April 1, 2018. 97

1.07 Alternative Daily Cover (ADC). Landfill cover material and at least six (6) inches of 98

earthen material, placed on the surface of the active face of the refuse fill area at the end of each 99

operating day to control vectors, fires, odor, blowing litter and scavenging, as defined in Title 27 100

of the California Code of Regulations (C.C.R.) Section 20164. 101

1.08 Beneficial Reuse. Using a waste byproduct or other low-value material for a 102

productive use, other than ADC/AIC, at a landfill within regulatory guidelines. Examples include 103

demolition waste that is used as road base or cell wall construction. 104

1.09 Biohazardous or Biomedical Waste. Any waste which may cause disease or 105

reasonably be suspected of harboring pathogenic organisms; included are waste resulting from 106

the operation of medical clinics, hospitals, and other facilities processing wastes which may 107

consist of, but are not limited to, human and animal parts, contaminated bandages, pathological 108

specimens, hypodermic needles, sharps, contaminated clothing and surgical gloves. 109

1.10 Brown Goods. Electronic equipment such as stereos, televisions, VCRs, Personal 110

Data Assistants (PDAs), telephones, and other similar items not containing cathode ray tubes 111

(CRTs). 112

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1.11 Bulky Waste. Includes Large Items; Large Green Waste; discarded furniture; carpets; 113

mattresses; household appliances including refrigerators, ranges, washers, dryers, water heaters, 114

and dishwashers and other similar items; large household goods including lawn and garden 115

equipment (drained of fluids), bicycles and other similar large personal items. Bulky Waste does 116

not include Exempt Waste or Construction and Demolition Debris. 117

1.12 Business Service Unit. All business, retail, professional, office, wholesale and 118

industrial facilities, and other commercial enterprises. 119

1.13 Change in Law(s). Any change in (or any new) laws, ordinances, rules, regulations, 120

orders, judgments, decrees, interpretations, decisions or permit requirements, of or by any 121

federal, state or local governmental entity (collectively, “Applicable Laws”), after the date hereof. 122

1.14 CITY. The City of Half Moon Bay, California. 123

1.15 City Collection Service. City Garbage Collection Service, City Recycling Collection 124

Service, City Organic Waste Collection Service, and City Debris Box Collection Service. 125

1.16 City Debris Box Collection Service. The Collection in Debris Boxes of City Garbage, 126

Recyclable Materials, or Organic Waste generated by City Services Units, Collected and delivered 127

by CONTRACTOR to an appropriate processing facility or Disposal Facility. 128

1.17 City Garbage Collection Service. The Collection of Garbage generated from City 129

Service Units that is Collected and delivered to the Disposal Facility by CONTRACTOR. 130

1.18 City Organic Waste. Green Waste and Food Waste separated at the source of 131

generation for inclusion in CITY Organic Waste Collection Service program. 132

1.19 City Organic Waste Collection Service. The Collection of City Organic Waste, 133

generated from City Service Units, that is Collected and delivered to the Organic Waste 134

Processing Facility by CONTRACTOR. 135

1.20 City Recycling Collection Service. The Collection of Recyclable Materials, generated 136

from City Service Units, that is Collected and delivered to the Materials Recovery Facility by 137

CONTRACTOR. 138

1.21 City Representative. The City Manager, or his/her designee, authorized to administer 139

and monitor the provisions of this Agreement. 140

1.22 City Service Unit. Those CITY properties or locations as set forth in Exhibit 2, “City 141

Service Units”, which is attached to and included in this Agreement. 142

1.23 City Street. Public streets within the CITY, as designated by the CITY 143

Representative. CITY Streets include large arterials, major collectors, and residential streets 144

throughout the CITY. 145

1.24 Collection. The process whereby Garbage, Recyclable Materials, Organic Waste and 146

Construction and Demolition Debris are removed and transported to a Disposal Facility, an 147

Organic Waste Processing Facility, or a Materials Recovery Facility, as appropriate. 148

1.25 Collection Services. Single-Family Collection Service (SFD), Multi-family Collection 149

Service (MFD), City Collection Service, and Commercial Collection Service. 150

1.26 Commercial Collection Service. Commercial Garbage Collection Service, 151

Commercial Recycling Collection Service, Commercial Organic Waste Collection Service, and 152

Commercial Debris Box Collection Service. 153

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1.27 Commercial Debris Box Collection Service. The Collection in Debris Boxes of 154

Commercial Garbage, Recyclable Materials, or Organic Waste by CONTRACTOR from 155

Commercial Service Units in the Service Area, and the delivery of collected Commercial Debris 156

Boxes to an appropriate processing facility or disposal facility. 157

1.28 Commercial Organic Waste. Green Waste and Food Waste separated at the source 158

of generation for inclusion in the Commercial Organic Waste Collection Service program. 159

1.29 Commercial Organic Waste Collection Service. The Collection of Commercial 160

Organic Waste by CONTRACTOR from Commercial Service Units in the Service Area, and the 161

delivery of that Commercial Organic Waste to an Organic Waste processing facility. 162

1.30 Commercial Recycling Collection Service. The Collection of Recyclable Materials by 163

CONTRACTOR from Commercial Service Units in the Service Area, the delivery of those 164

Recyclable Materials to a Materials Recovery Facility, and the processing and marketing of those 165

Recyclable Materials. 166

1.31 Commercial Service Unit. Business Service Units that utilize a Garbage Cart or Bin 167

for the accumulation and set-out of Garbage. 168

1.32 Commercial Garbage Collection Service. The Collection of Garbage by 169

CONTRACTOR, from Commercial Service Units in the Service Area, and the delivery of that 170

Garbage to the Disposal Facility. 171

1.33 Compactor. Any Debris Box Container or Bin, which has a compaction mechanism, 172

whether stationary or mobile. 173

1.34 Composting. The controlled biological decomposition of Organic Waste into a 174

specific mixture of decayed organic matter used for fertilizing or soil conditioning. 175

1.35 Construction and Demolition Debris. Commonly used or discarded materials 176

removed from construction, remodeling, repair, demolition, or renovation operations on any 177

pavement, house, commercial building, or other structure, or from landscaping. Such materials 178

include, but are not limited to, dirt, sand, rock, gravel, bricks, plaster, gypsum wallboard, 179

aluminum, glass, asphalt material, plastics, roofing material, cardboard, carpeting, cinder blocks, 180

concrete, copper, electrical wire, fiberglass, Formica, granite, iron, lead, linoleum, marble, plaster, 181

plant debris, pressboard, porcelain, steel, stucco, tile, vinyl, wood, masonry, rocks, trees, 182

remnants of new materials, including paper, plastic, carpet scraps, wood scraps, scrap metal, 183

building materials, packaging and rubble resulting from construction, remodeling, renovation, 184

repair and demolition operations on pavements, houses, commercial buildings and other 185

structures. Construction and Demolition Debris does not include Exempt Waste. 186

1.36 Construction and Demolition Debris Processing Facility. Any facility selected by 187

CONTRACTOR that is operated and legally permitted for the purpose of receiving and processing 188

Construction and Demolition Debris. 189

1.37 CONTRACTOR. Republic Services of San Mateo County. 190

1.38 County. San Mateo County, California. 191

1.39 Consumer Price Index (CPI). The index published by the U.S. Department of Labor, 192

Bureau of Labor Statistics, Series Id: CUURA422SA0, Not Seasonally Adjusted, All Items, All 193

Urban Consumers (CPI-U) for San Francisco-Oakland-San Jose, California. 194

1.40 Curb Sweeping. A complete sweep of all curbs and Median Islands on all publicly 195

maintained CITY Streets. 196

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1.41 Customer. Means a Service Recipient that receives Collection Services under the 197

terms of this Collection Service Agreement. 198

1.42 Debris Box Collection Service. Collection utilizing 10 to 40 cubic yard containers, on 199

a temporary or permanent basis, and provided to Service Units for the Collection of Garbage, 200

Recyclable Materials, and Organic Waste, and for the delivery of that material to an appropriate 201

facility. 202

1.43 Debris Box Container. A metal container that is normally tipped loaded onto a motor 203

vehicle and transported to an appropriate facility. 204

1.44 Detailed Rate Review. The review and adjustment of Maximum Service Rates in 205

accordance with the methodology specified in Exhibit 5. 206

1.45 Disposal Facility. Any facility selected by CONTRACTOR and approved by CITY, or 207

specifically designated by CITY, that is operated and legally permitted for the purpose of 208

accepting materials for disposal. The initial Disposal Facility is the Ox Mountain Landfill, located 209

at 12310 San Mateo Rd, Half Moon Bay, CA 94019. 210

1.46 Dwelling Unit. Any individual living unit in a single-family dwelling (SFD) or multi-211

family dwelling (MFD) structure or building intended for, or capable of being utilized for, residential 212

living other than a Hotel or Motel. 213

1.47 Effective Date. April 1, 2018. 214

1.48 E-Waste. Discarded electronics equipment such as cell phones, PDAs, computers, 215

monitors, televisions, and other items containing cathode ray tubes (CRTs), LCD or plasma 216

screens and monitors. 217

1.49 Exempt Waste. Biohazardous or Biomedical Waste (including Sharps), Hazardous 218

Waste, Sludge, automobiles, automobile parts, boats, boat parts, boat trailers, internal 219

combustion engines, and those wastes under the control of the Nuclear Regulatory Commission. 220

1.50 Food Waste. Food scraps and trimmings and other putrescible waste that results 221

from food production, preparation, storage, consumption or handling. Food Waste includes but is 222

not limited to: meat, fish and dairy waste, fruit and vegetable waste, grain waste, Stable Matter, 223

acceptable food packaging items such as pizza boxes, paper towels, waxed cardboard and food 224

contaminated paper products. Food Waste does not include Exempt Waste. 225

1.51 Garbage. All putrescible and non-putrescible solid, semi-solid and associated liquid 226

waste, as defined in California Public Resources Code Section 40191. Garbage does not include 227

Recyclable Materials, Organic Waste, Construction and Demolition Debris, Bulky Waste, or 228

Exempt Waste. 229

1.52 Garbage Bin. A metal or plastic container, with a capacity of one (1) cubic yard up 230

to, and including, six (6) cubic yards, designed or intended to be mechanically dumped into a 231

loader packer type garbage truck that is approved for such purpose by CITY. Garbage Bins may 232

also include Compactors that are owned by the MFD or Commercial Service Unit wherein the 233

MFD or Commercial Collection Service occurs. 234

1.53 Garbage Cart. A heavy plastic receptacle with a rated capacity of at least twenty 235

(20) gallons and not more than ninety-six (96) gallons, having a hinged tight-fitting lid and wheels, 236

that is approved by the City Representative (if different from those currently in use by 237

CONTRACTOR) for use by Service Recipients for Collection Services under this Agreement. 238

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1.54 Green Waste. Any vegetative matter resulting from normal yard and landscaping 239

maintenance that is not more than three (3) feet in its longest dimension or six (6) inches in 240

diameter and fits in the Organic Waste Cart utilized by the Service Recipient. Green Waste 241

includes plant debris, such as Palm, Yucca and Cactus, ivy, grass clippings, leaves, pruning, 242

weeds, branches, brush, Christmas trees, and other forms of vegetative waste and must be 243

generated by and set out for Collection at the Service Unit where the Green Waste is collected. 244

Green Waste does not include items herein defined as Exempt Waste. 245

1.55 Gross Revenue. All revenue amounts collected by CONTRACTOR for the provision 246

of Collection Services pursuant to this Agreement, calculated in accordance with Generally 247

Accepted Accounting Procedures (GAAP). The term Gross Revenue, for purposes of this 248

Agreement, does not include any revenues generated from the sale of Recyclable Material, or 249

other receipts from state and local government accounts (e.g. grants, cash awards and rebates) 250

resulting from the performance of this Agreement. 251

1.56 Hazardous Waste. Any material which is defined, regulated or listed as “hazardous”, 252

“toxic”, a “pollutant”, or words of similar import waste under California or United States law or any 253

regulations promulgated pursuant to such law, as such state or federal law or regulations may be 254

amended from time to time; and “designated waste” as defined in California Water Code Section 255

13173. 256

1.57 Household Hazardous Waste (HHW). HHW includes dry cell household batteries, 257

cell phones and PDAs; used motor oil; used oil filters when contained in a sealed plastic bag; 258

cooking oil; compact fluorescent light bulbs contained in a sealed plastic bag; cleaning products, 259

pesticides, herbicides, insecticides, painting supplies, automotive products, solvents, strippers, 260

adhesives, auto batteries, and Universal Waste. 261

1.58 Kitchen Food Waste Pail. A plastic receptacle with a rated capacity not exceeding 262

one and one-half (1.5) gallons, having a hinged lid, suitable for use in a SFD or MFD Service Unit 263

for temporary storage of SFD and MFD Organic Waste that is approved for such purpose by CITY. 264

1.59 Large Items. Those materials including furniture, carpets, mattresses, White Goods, 265

Brown Goods, E-Waste, clothing, tires without rims, Green Waste, and Large Green Waste which 266

are attributed to the normal activities of a SFD Service Unit, MFD Service Unit, or City Service 267

Unit. Large Items must be generated by and set out for Collection at the Service Unit where the 268

Large Items are collected. Large Items do not include items herein defined as Exempt Waste. 269

1.60 Large Green Waste. Oversized Green Waste such as tree trunks and branches with 270

a diameter of not less than six (6) inches and not more than two (2) feet and a length of not more 271

than six (6) feet in its longest dimension, and not weighing more than seventy (70) pounds, which 272

are attributed to the normal activities of a SFD, MFD, or City Service Unit. Large Green Waste 273

must be generated by and set out for Collection at the Service Unit where the Large Green Waste 274

is collected. 275

1.61 Material Change In Law(s). A Change in Law(s) that (a) results in a cumulative 276

increase in CONTRACTOR’s allowable costs of operation, or a reduction in CONTRACTOR’s 277

Agreement Year Gross Revenue over two (2) consecutive years period, of at least Seventy-Five 278

Thousand Dollars ($75,000), and (b) relates specifically to any aspect of the solid waste industry 279

(including, for the avoidance of doubt and without limitation, changes to the California Integrated 280

Waste Management Act (CIWMA), changes to CalRecycle regulations, or changes to other 281

Applicable Laws relating specifically to any aspect of “solid waste handling,” “solid waste disposal” 282

or “solid waste facilities,” as such terms are defined in the CIWMA). 283

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1.62 Materials Recovery Facility (MRF). Any facility selected by CONTRACTOR, and 284

approved by CITY, or specifically designated by CITY, that is designed, operated, and legally 285

permitted for the purpose of receiving, sorting, processing, storing, or preparing Recyclable 286

Materials for sale. The initial MRF is the Newby Island Resource Park, located at 1601 Dixon 287

Landfill Road, Milpitas, CA 95035. 288

1.63 Maximum Service Rates. The maximum amount that CONTRACTOR may charge 289

Service Recipients for Collection Services, as listed in Exhibit 1 and as may be adjusted in 290

accordance with the provisions of this Agreement. 291

1.64 MFD Collection Service. MFD Garbage Collection Service, MFD Recycling Service, 292

MFD Organic Waste Collection Service, MFD Bulky Waste Collection Service, and MFD Debris 293

Box Collection Service. 294

1.65 MFD Debris Box Waste Collection Service. The Collection in Debris Boxes of MFD 295

Garbage, Recyclable Materials, or Organic Waste by CONTRACTOR from MFD Service Units in 296

the Service Area, and the delivery of Collected MFD Debris Boxes to an appropriate processing 297

facility or disposal facility. 298

1.66 MFD Bulky Waste Collection Service. The periodic on-call Collection of a 299

combination of Large Items Collected by CONTRACTOR, from MFD Service Units in the Service 300

Area and the delivery of those Large Items to a Disposal Facility, Materials Recovery Facility, 301

Organic Waste Processing Facility or such other facility as may be appropriate under the terms 302

of this Agreement. MFD Bulky Waste Collection Service can include the Collection of Large Items 303

through the use of Debris Boxes, at CONTRACTOR’s option. 304

1.67 MFD Organic Waste. Green Waste and Food Waste separated at the source of 305

generation for inclusion in the MFD Organic Waste Collection Service program. 306

1.68 MFD Organic Waste Collection Service. The Collection of MFD Organic Waste from 307

MFD Service Units in the Service Area, and the delivery of that MFD Organic Waste to an Organic 308

Waste processing facility. 309

1.69 MFD Recycling Service. The Collection of Recyclable Materials, by CONTRACTOR, 310

from MFD Service Units in the Service Area, the delivery of those Recyclable Materials to a 311

Materials Recovery Facility, and the processing and marketing of those Recyclable Materials. 312

1.70 MFD Service Unit. Any residential premises containing five (5) or more Dwelling 313

Units. 314

1.71 MFD Garbage Collection Service. The Collection of Garbage, by CONTRACTOR, 315

from MFD Service Units in the Service Area and the delivery of that Garbage to the Disposal 316

Facility. 317

1.72 Non-Collection Notice. A form developed and used by CONTRACTOR, as approved 318

by CITY (if different from the form commonly used by CONTRACTOR), to notify Service 319

Recipients of the reason for non-collection of materials set out by the Service Recipient for 320

Collection by CONTRACTOR pursuant to this Agreement. 321

1.73 Organic Waste. Food Waste and Green Waste, either separately or commingled 322

with each other, that has been separated at the source of generation from Garbage and 323


1.74 Organic Waste Bin. A metal or plastic container, with a capacity of one (1) cubic yard 325

up to and including three (3) cubic yards, designed or intended to be mechanically dumped into 326

a loader packer type truck that is approved for such purpose by CITY. 327 46

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1.75 Organic Waste Cart. A heavy plastic receptacle with a rated capacity of at least 328

twenty (20) gallons and not exceeding ninety-six (96) gallons, having a hinged tight-fitting lid and 329

wheels, that is approved for such purpose by CITY. 330

1.76 Organic Waste Processing Facility. Any facility selected by CONTRACTOR, and 331 approved by CITY, or specifically designated by CITY, that is operated and legally permitted for 332 the purpose of receiving and processing Organic Waste and Large Green Waste. The initial 333 Organic Waste Processing Facility is the Newby Island Compost Facility, located at 1601 Dixon 334 Landfill Road, Milpitas, CA 95035. 335

1.77 Overs Fraction. Large, woody parts of the compost pile that have not completely 336 broken down and will not pass through a minus one-half inch (-1/2”) trommel screen. 337

1.78 Recyclable Materials. Those discarded materials which are capable of being 338

recycled and which have been separated at the source of generation from Garbage and Organic 339

Waste would otherwise be processed or disposed of as Garbage. Recyclable Materials include 340

the following materials defined by CITY: newsprint (including inserts); mixed paper (including 341

magazines, catalogs, envelopes, junk mail, corrugated cardboard, brown bags and paper, 342

paperboard, paper egg cartons, office ledger paper, and telephone books); glass containers; 343

aluminum beverage containers; small scrap and cast aluminum (up to 20 pounds); steel including 344

“tin” cans, empty aerosol cans (empty, non-toxic products) and small scrap (up to 20 pounds); 345

bimetal containers; plastic food containers, #1-7 plastics regardless of form or mold (including but 346

not limited to plastic containers, bottles, and wide mouth tubs), aluminum foil and pans. 347

Recyclable Materials do not include Exempt Waste. 348

1.79 Recycling Bin. A plastic or metal container, with a capacity of one (1) cubic yard up 349

to and including six (6) cubic yards, designed or intended to be mechanically dumped into a loader 350

packer type recycling truck that is approved for such purpose by CITY and is appropriately labeled 351

as a Recycling Bin. 352

1.80 Recycling Cart. A heavy plastic receptacle with a rated capacity of at least twenty 353

(20) gallons and not more than ninety-six (96) gallons, having a hinged tight-fitting lid and wheels, 354

that is approved for such purpose by CITY and is appropriately labeled as a Recycling Cart. 355

1.81 Service Area. That area within the corporate limits of the City of Half Moon Bay, 356

California, as the same may be modified from time to time through annexation or otherwise. 357

1.82 Service Recipient. An individual or entity receiving Collection Service under this 358

Agreement. 359

1.83 Service Unit. SFD Service Units, MFD Service Units, City Service Units, and 360

Commercial Service Units. 361

1.84 SFD Collection Service. SFD Garbage Collection Service, SFD Recycling Collection 362

Service, SFD Organic Waste Collection Service, SFD Bulky Waste Collection Service, and SFD 363

Debris Box Collection Service. 364

1.85 SFD Debris Box Waste Collection Service. The Collection in Debris Boxes of SFD 365

Garbage, Recyclable Materials, or Organic Waste by CONTRACTOR from SFD Service Units in 366

the Service Area, and the delivery of Collected SFD Debris Boxes to an appropriate processing 367

facility or disposal facility. 368

1.86 SFD Bulky Waste Collection Service. The periodic on-call Collection of a 369

combination of Large Items Collected by CONTRACTOR, from SFD Service Units in the Service 370

Area and the delivery of those Large Items to a Disposal Facility, Materials Recovery Facility, 371

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Organic Waste Processing Facility or such other facility as may be appropriate under the terms 372

of this Agreement. SFD Bulky Waste Collection Service does not include the collection of Large 373

Items through the use of Debris Box Containers. 374

1.87 SFD Organic Waste. Green Waste and Food Waste separated at the source of 375

generation for inclusion in the SFD Organic Waste Collection Service program. 376

1.88 SFD Organic Waste Collection Service. The Collection of SFD Organic Waste by 377

CONTRACTOR from SFD Service Units in the Service Area, the delivery of that Residential 378

Organic Waste to an Organic Waste Processing Facility. 379

1.89 SFD Recycling Collection Service. The Collection of Recyclable Materials by 380

CONTRACTOR from SFD Service Units in the Service Area, the delivery of those Recyclable 381

Materials to a Materials Recovery Facility, and the processing and marketing of those Recyclable 382

Materials. 383

1.90 SFD Garbage Collection Service. The Collection of Garbage, by CONTRACTOR, 384

from SFD Service Units in the Service Area and the delivery of that Garbage to a Disposal Facility. 385

1.91 SFD Service Unit. Each Dwelling Unit in a residential premises containing no more 386

than four (4) Dwelling Units. 387

1.92 Sharps. Sharps include needles, scalpels, blades, broken medical glass, broken 388

capillary tubes, and ends of dental wires. 389

1.93 Sludge. The accumulated solids, residues, and precipitates generated as a result of 390

waste treatment or processing, including wastewater treatment, water supply treatment, or 391

operation of an air pollution control facility, and mixed liquids and solids pumped from septic tanks, 392

grease traps, privies, or similar disposal appurtenances or any other such waste having similar 393

characteristics or effects. 394

1.94 Solid Waste. Garbage, Recyclable Materials, Organic Waste, Construction and 395

Demolition Debris, Large Items, and items dropped off at CONTRACTOR’s drop-off events or 396

CONTRACTOR’s (or CONTRACTOR’s affiliates’) facilities pursuant to this Agreement (such as 397

E-Waste and HHW). 398

1.95 Source-Separated. Source-Separated materials means materials of a particular type 399

that have been separated by the generator from Garbage and materials of other types and placed 400

in the Container designated for Collection of that particular type of materials. 401

1.96 Stable Matter. Manure and other waste matter normally accumulated and associated 402

with stables or in domestic livestock. 403

1.97 Street Sweeping Service. The sweeping of streets in the CITY and the transportation 404

of Sweep Waste by CONTRACTOR to the Disposal Facility. 405

1.98 Sweep Waste. The accumulated waste materials generated as a result of performing 406

Street Sweeping Services. Sweep Waste includes, but is not limited to, deposits of loose dirt, 407

rocks, glass, cans, leaves, sticks, papers, Organic Waste residue or any like materials that can 408

be removed by Street Sweeping operations. 409

1.99 Sweeper Route. A daily path or itinerary followed by a sweeper that has been clearly 410

divided into a.m. and p.m. sections. 411

1.100 Universal Waste. Televisions, computer monitors, consumer electronics with 412

circuit boards, fluorescent lamps, cathode ray tubes, non-empty aerosol cans, instruments and 413

switches that contain mercury, and dry cell batteries containing cadmium copper, or mercury. 414 48

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1.101 White Goods. Discarded refrigerators, ranges, water heaters, freezers, and other 415

similar household appliances. 416

1.102 Work Day. Any day, Monday through Friday that is not a holiday as set forth in 417

Section 3.09 of this Agreement (it being understood that Commercial and MFD Collection Service 418

may be provided on Saturday as provided in Section 3.05.2 and 3.05.3, and holiday service may 419

be provided on Saturday/Sunday as provided in Section 3.09). 420

ARTICLE 2. Term of Agreement 421

2.01 Term. The term of this Agreement shall be for a ten (10) year period beginning 422

April 1, 2018 and terminating on March 31, 2028. 423

2.02 Five (5) Year Extension. CONTRACTOR may request one five (5) year term 424

extension to the original ten (10) year term, and at CITY’s sole option, CITY may grant 425

CONTRACTOR’s request to extend the term. Under no circumstances will CITY be obligated to 426

extend the term, and under no circumstances shall CITY be obligated to grant the full five (5) 427

years of extension (i.e., an extension for a shorter time period may instead be granted by the 428

CITY if it chooses). CONTRACTOR must request the five (5) year extension by October 1, 2025 429

in order to be eligible for the term extension. If CONTRACTOR fails to meet the diversion 430

requirements as described in Section 5.01, CONTRACTOR may not eligible for the five (5) year 431

extension, subject to the terms and conditions set forth in Section 5.02.4. Similarly, if 432

CONTRACTOR is found to have a Specified Default (as described in Section 24.09), 433

CONTRACTOR will not be eligible for the five (5) year extension. 434

2.03 Performance Review prior to Five (5) Year Extension. If CONTRACTOR requests a 435

term extension as described in Section 2.02 above, then, at CITY’s sole option, a billing audit and 436

performance review may be conducted as described in Article 20, and CONTRACTOR must pay 437

the cost of the billing audit and performance review subject to the maximum cost specified in such 438

Article. Regardless of the outcome of this billing audit and performance review, CITY will have no 439

obligation to extend the term of the Agreement. 440

ARTICLE 3. Services Provided by Contractor 441

3.01 Grant of Exclusive Right. Except as provided in Section 3.02, CONTRACTOR is 442

hereby granted the exclusive right to collect, transport, recycle, process and dispose of all 443

Garbage, Recyclable Materials, Food Waste, Green Waste, and Bulky Waste within the Service 444

Area, including without limitation all such material generated or accumulated at all SFD Service 445

Units, MFD Service Units, Commercial Service Units and City Service Units in the Service Area. 446

No other garbage, organic waste, or recycling services shall be exclusive to CONTRACTOR. 447

3.02 Limitations to Scope of Exclusive Agreement. This Agreement does not grant 448

CONTRACTOR the exclusive right to collect, transport, recycle, process and/or dispose the 449

following materials in the CITY: 450

3.02.1 Recyclable Materials or Large Items that are separated from Garbage by 451

the generator, which the generator sells or is otherwise compensated by a collector in a manner 452

resulting in a net payment to the generator; 453

3.02.2 Garbage, Recyclable Materials, Large Items, or Organic Waste, which is 454

removed from any SFD Service Unit, MFD Service Unit, Commercial Service Unit, or City Service 455

Unit and which is transported personally by the owner or occupant of such premises (or by his or 456

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her full-time employees but not including construction related employees or subcontractors) to a 457

processing or Disposal Facility; 458

3.02.3 Recyclable Materials, Organic Waste or Large Items which are separated 459

at any premises by the generator and donated to youth, civic or charitable organizations; 460

3.02.4 Beverage containers delivered by the generator for Recycling under the 461

California Beverage Container Recycling Litter Reduction Act, Section 14500, et seq.; 462

3.02.5 Organic Waste removed from a premise by a gardening, landscaping, or 463

tree trimming company as an incidental part of a total service offered by that company rather than 464

as a hauling service; 465

3.02.6 Construction and Demolition Debris resulting solely from construction, 466

remodeling, and demolition authorized by a CITY permit, transported by a licensed construction 467

company as an incidental part of the total service offered by that company rather than as a hauling 468

service, and where the licensed construction company uses its own equipment and employees 469

(and no Debris Box Containers are used) for the collection and transportation of such Construction 470

and Demolition Debris; 471

3.02.7 Large Items removed from a premise by a property management or 472

maintenance company as an incidental part of the total cleanup or maintenance service offered 473

by the company rather than as a hauling service, where no Debris Box Containers are used for 474

the collection and transportation of such Large Items; 475

3.02.8 Hazardous Waste and other Exempt Waste regardless of its source; 476

3.02.9 Secure document shredding; and 477

3.02.10 Construction and Demolition Debris, which is not commingled with 478

other Solid Waste, and which is placed in Debris Box Containers for collection on a temporary 479

basis. This exclusion from CONTRACTOR’s exclusive franchise is not intended to apply where 480

the owner or occupant of a Commercial premise commingles other Solid Waste with Construction 481

and Demolition Debris. The intent of this exclusion is to allow non-franchised haulers with 482

business licenses from the CITY to provide temporary Debris Box Container services for the 483

collection, processing and disposal of Construction and Demolition Debris. It is not intended to 484

allow for non-franchised haulers to provide Commercial premises with regularly scheduled or 485

permanent collection in Debris Box Containers of Solid Waste or Solid Waste commingled with 486


3.03 CONTRACTOR acknowledges and agrees that CITY may permit other persons 488

besides CONTRACTOR to collect any and all types of materials excluded from the scope of this 489

Agreement, as set forth above, without seeking or obtaining approval of CONTRACTOR. If 490

CONTRACTOR can produce evidence that other persons are servicing collection containers or 491

are Collecting Garbage, Recyclable Materials, Large Items, Construction and Demolition Debris, 492

and/or Organic Waste in a manner that is not consistent with CITY’S Municipal Code or this 493

Agreement, it shall report the location, the name and phone number of the person or company to 494

CITY along with CONTRACTOR’S evidence of the violation of the exclusiveness of this 495

Agreement, and CONTRACTOR shall assist CITY to enforce CITY’s Municipal Code and this 496

Agreement. 497

3.03.1 The scope of this Agreement shall be interpreted to be consistent with 498

applicable law, now and during the term of the Agreement. If future judicial interpretations of 499

current law or new laws, regulations, or judicial interpretations limit the ability of CITY to lawfully 500

provide for the scope of services as specifically set forth herein, CONTRACTOR agrees that the 501 50

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scope of the Agreement will be limited to those services and materials which may be lawfully 502

provided and that CITY shall not be responsible for any lost profits or losses claimed by 503

CONTRACTOR to arise out of limitations of the scope of the Agreement set forth herein. 504

Notwithstanding the foregoing, nothing in this paragraph shall be deemed to limit Sections 4.02.6 505

or 25.01 of this Agreement. 506

3.04 Service Standards. CONTRACTOR shall perform all Collection Services under this 507

Agreement in a thorough and professional manner. Collection Services described in this 508

Agreement shall be performed regardless of weather conditions or difficulty of collection, except 509

as provided in Section 24.08 (Force Majeure). 510

3.05 Hours and Days of Collection. 511

3.05.1 SFD Collection Services shall be provided, commencing no earlier than 512

6:00 a.m. and terminating no later than 6:00 p.m., Monday through Friday with no service on 513

Saturday (except for holiday service as set forth in Section 3.09 of this Agreement in which case 514

normal collection hours may be utilized) or Sunday. The hours, days, or both of collection may be 515

extended due to extraordinary circumstances or conditions with the prior written consent of the 516

City Representative. 517

3.05.2 MFD Collection Services shall be provided, commencing no earlier than 518

6:00 a.m. and terminating no later than 6:00 p.m., Monday through Saturday with no service on 519

Sunday (except for holiday service as set forth in Section 3.09 of this Agreement in which case 520

normal collection hours may be utilized). The hours, days, or both of collection may be extended 521

due to extraordinary circumstances or conditions with the prior written consent of the City 522

Representative. 523

3.05.3 Commercial Collection Service and Collection Services provided to CITY 524

Service Units shall be provided, commencing no earlier than 4:00 a.m. and terminating no later 525

than 6:00 p.m. on Monday through Saturday, and commencing no earlier than 6:00 a.m. and 526

terminating no later than 6:00 p.m. on Sunday. The hours, days, or both of collection may be 527

extended due to extraordinary circumstances or conditions with the prior written consent of the 528

City Representative. 529

3.05.4 CITY may direct CONTRACTOR to restrict the Collection hours in areas 530

around schools and in high traffic areas during peak commute hours. When CITY is conducting 531

road overlay or slurry projects, CITY reserves the right to temporarily redirect or restrict 532

CONTRACTOR from collection in the affected areas or temporarily change the collection hours if 533

needed. The hours of collection may be extended due to extraordinary circumstances or 534

conditions with the prior written consent of CITY Representative. 535

3.06 Manner of Collection. CONTRACTOR shall provide Collection Service with as little 536

disturbance as possible and shall leave any Cart or Bin in an upright position with the lid closed 537

at the same point it was collected without obstructing alleys, roadways, driveways, sidewalks or 538

mail boxes. 539

3.07 Containers. 540

3.07.1 Carts and Kitchen Food Waste Pails. All Carts and Kitchen Food Waste 541

Pails are to be new at the start of the term of this Agreement. Newly-purchased Carts introduced 542

into service by CONTRACTOR during the term of this Agreement are to be hot-stamped, 543

embossed, or laminated, with a unique identification number, and labeled with the type of 544

materials to be Collected (i.e., Garbage, Organic Waste, Recyclable Materials) and instructions 545

provided for proper usage at the time of delivery to a new account or upon request of the Service 546

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Recipient. Labeling on such Carts shall be on the lids. CONTRACTOR’S phone number shall be 547

included as part of such Cart labeling. Kitchen Food Waste Pails are to be hot stamped, 548

embossed, laminated, or in-molded with instructions for proper use. Labeling and graphics on 549

such newly-purchased Carts (if different from those commonly used by CONTRACTOR) and 550

Kitchen Food Waste Pails shall be approved by CITY. Changes to the color and labeling of Carts 551

and Kitchen Food Waste Pails may only be made with the prior express written consent of the 552

CITY Representative. 553

3.07.2 Bins. Bins may be new or refurbished at the start of the term of this 554

Agreement. All Bins are to be labeled with the type of materials to be Collected (i.e., Garbage, 555

Organic Waste, Recyclable Materials) and instructions provided for proper usage at the time of 556

delivery to a new account or upon request of the Service Recipient. CONTRACTOR’S phone 557

number shall be included as part of Bin labeling. Labeling and graphics of the Bins (if different 558

from those commonly used by CONTRACTOR) shall be approved by CITY. Changes to the color 559

and labeling of Bins may only be made with the prior express written consent of the CITY 560

Representative. 561

3.07.3 Debris Boxes. Debris Box Containers may be used, provided they are 562

properly marked with Contractor’s name and phone number as part of Debris Box labeling and in 563

good working order. CITY retains the right to inspect any such used Debris Box and direct 564

CONTRACTOR to replace or repair such a used Debris Box if it is not properly marked or is not 565

in good working order. Changes to the color and labeling of Debris Boxes may only be made with 566

the prior express written consent of the CITY Representative. 567

3.07.4 Purchase and Distribution of Carts, Bins, and Kitchen Food Waste Pails. 568

CONTRACTOR shall be responsible for the purchase and distribution of fully assembled and 569

functional carts and bins for all Service Recipients, and Kitchen Food Waste Pails to SFD and 570

MFD Service Units in the Service Area, including to new Service Units that are added to 571

CONTRACTOR’S Service Area during the term of this Agreement. Kitchen Food Waste Pails 572

shall only be distributed upon request of the Service Recipient, and shall be provided at no 573

additional charge (one (1) pail per Dwelling Unit). The distribution to new Service Units shall be 574

completed within three (3) Work Days of receipt of notification from CITY or the Service Unit. 575

3.07.5 Replacement of Carts and Bins. CONTRACTOR’S employees shall take 576

care to prevent damage to carts or bins by unreasonably rough treatment. However, any Cart or 577

Bin damaged by CONTRACTOR shall be replaced by CONTRACTOR, at CONTRACTOR'S 578

expense, within three (3) Work Days at no cost or inconvenience to the Service Recipient. 579

3.07.5.1 Upon notification to CONTRACTOR by CITY or a Service 580

Recipient that the Service Recipient’s Cart(s), Bin(s), or Kitchen Food Waste Pail(s) have been 581

stolen or damaged beyond repair through no fault of CONTRACTOR, CONTRACTOR shall 582

deliver a replacement Cart(s), Bin(s) or Kitchen Food Waste Pail(s) to such Service Recipient 583

within three (3) Work Days. CONTRACTOR shall maintain records documenting all Cart and Bin 584

replacements occurring on a monthly basis. 585

3.07.5.2 Where such Cart or Kitchen Food Waste Pail is lost, stolen 586

or damaged beyond repair through no fault of CONTRACTOR, each SFD Service Unit shall be 587

entitled to the replacement of one (1) lost, destroyed, or stolen Garbage Cart, one (1) lost, 588

destroyed, or stolen Recycling Cart, one (1) lost, destroyed, or stolen Organic Waste Cart, and 589

three (3) lost, destroyed, or stolen Kitchen Food Waste Pails, during the life of this Agreement at 590

no cost to the Service Recipient. 591

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3.07.5.3 Where such Cart, Bin, or Kitchen Food Waste Pail is lost, 592

stolen or damaged beyond repair through no fault of CONTRACTOR, each MFD Service Unit 593

shall be entitled to the replacement of one (1) lost, destroyed, or stolen Garbage Cart or Bin, one 594

(1) lost, destroyed, or stolen Recycling Cart or Bin, (1) lost, destroyed, or stolen Organic Waste 595

Cart or Bin and three (3) lost, destroyed, or stolen Kitchen Food Waste Pails during the life of this 596

Agreement at no cost to the Service Unit. 597

3.07.5.4 Where such Cart or Bin is lost, stolen or damaged beyond 598

repair through no fault of CONTRACTOR, each Commercial and City Service Unit shall be entitled 599

to the replacement of one (1) lost, destroyed, or stolen Garbage Cart or Bin, one (1) lost, 600

destroyed, or stolen Recycling Cart or Bin, and one (1) lost, destroyed, or stolen Organic Waste 601

Cart or Bin during the life of this Agreement at no cost to the Service Unit. 602

3.07.5.5 Where such Bin or Cart replacement occurs through no fault 603

of CONTRACTOR, CONTRACTOR shall be compensated for the cost of those replacements in 604

excess of the requirements set forth above in accordance with the “Cost to Replace Lost, Stolen 605

or Damaged Containers” Service Rate, as initially set forth in Exhibit 1, as adjusted as provided 606

under the terms of this Agreement. 607

3.07.6 Repair of Carts and Bins. CONTRACTOR shall be responsible for repair 608

of carts in the areas to include but not be limited to, hinged lids, wheels and axles. Within seven 609

(7) calendar days of notification by CITY or a Service Recipient of the need for such repairs, 610

CONTRACTOR shall repair the Cart or Bin or if necessary, remove the Cart or Bin for repairs and 611

deliver a replacement Cart or Bin to the Service Recipient. In the event the Cart or Bin is removed 612

for repair or replacement, Contractor shall provide a replacement Cart or Bin on the same day. 613

3.07.7 Cart or Bin Exchange. Upon notification to CONTRACTOR by CITY or a 614

Service Recipient that a change in the size or number of carts or Bins is required, CONTRACTOR 615

shall deliver such carts or Bins to such Service Recipient within seven calendar days to allow for 616

the exchange to occur on the regular scheduled collection day. Each SFD, MFD, Commercial 617

and City Service Unit shall be entitled to receive one (1) free Cart or Bin exchange per calendar 618

year during the term of this Agreement. CONTRACTOR shall be compensated for the cost of 619

those exchanges in excess of one (1) per calendar year, in accordance with the “Cart or Bin 620

Exchange” service rate as set forth in Exhibit 1 which is attached to and included in this 621

Agreement or as may be adjusted under the terms of this Agreement. 622

3.07.8 Ownership of Carts. Ownership of carts shall rest with CONTRACTOR. In 623

the case of the termination of the Agreement prior to the expiration of the initial term or optional 624

extension terms due to the default of CONTRACTOR as set forth in Article 24 of this Agreement, 625

CITY shall have the right to take possession of the carts in service with customers and retain such 626

possession until satisfactory arrangements can be made to provide Collection Services using 627

other equipment. Such time of possession shall be limited to one hundred eighty (180) days after 628

the effective date of termination. After such time, such carts shall be returned to CONTRACTOR 629

or, if the parties mutually agree, CITY shall pay a reasonable monthly rent to CONTRACTOR for 630

CITY’s use of the equipment. Upon termination of this Agreement, CONTRACTOR shall be 631

responsible for removing all carts in service from the Service Area and reusing or recycling such 632

carts. 633

3.07.9 Ownership of Bins. Ownership of Bins distributed by CONTRACTOR shall 634

rest with CONTRACTOR. In the case of the termination of the Agreement prior to the expiration 635

of the initial term or optional extension term due to the default of CONTRACTOR as set forth in 636

Article 24 of this Agreement, CITY shall have the right to take possession of such Bins and to 637

retain such possession until satisfactory arrangements can be made to provide Collection 638 53

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Services using other equipment. Such time of possession shall be limited to one hundred eighty 639

(180) days after the effective date of termination. After such time, such Bins shall be returned to 640

CONTRACTOR, or, if the parties mutually agree, CITY shall pay a reasonable monthly rent to 641

CONTRACTOR for CITY’s use of the equipment. Upon the receipt of written notice from CITY, 642

CONTRACTOR shall submit to the City Representative an inventory of Bins, including their 643

locations. 644

3.07.10 Ownership of Debris Box Containers. Ownership of Debris Box 645

Containers distributed by CONTRACTOR shall rest with CONTRACTOR. In the case of the 646

termination of the Agreement prior to the expiration of the initial term or optional extension term 647

due to the default of CONTRACTOR as set forth in Article 24 of this Agreement, CITY shall have 648

the right to take possession of such containers and to retain such possession until satisfactory 649

arrangements can be made to provide Collection Services using other equipment. Such time of 650

possession shall be limited to one hundred eighty (180) days after the effective date of 651

termination. After such time, such Debris Box Containers shall be returned to CONTRACTOR, 652

or, if the parties mutually agree, CITY shall pay a reasonable monthly rent to CONTRACTOR for 653

CITY’s use of the equipment. Upon the receipt of written notice from CITY, CONTRACTOR shall 654

submit to the City Representative an inventory of containers, including their locations. 655

3.07.11 Cleaning of Carts, Bins and Debris Boxes. Once each calendar 656

year upon request of the Service Recipient from a MFD or Commercial Service Unit, and at no 657

charge to CITY or the Service Recipient, CONTRACTOR shall replace those Bins or Debris Boxes 658

needing cleaning with clean Bins or Debris Boxes and remove the dirty Bins or Debris Boxes for 659

cleaning. Once each 10-year period, upon request of the Service Recipient, and at no charge to 660

CITY or the Service Recipient, CONTRACTOR shall replace those Carts needing cleaning with 661

clean Carts and remove the dirty Carts for cleaning. In accordance with the Maximum Service 662

Rates as set forth in Exhibit 1, CONTRACTOR shall be compensated for each additional Cart, 663

Bin or Debris Box cleaning. 664

3.07.12 Cleaning/Removal of Graffiti from Containers. If CONTRACTOR 665

identifies graffiti on any Container set out for Collection, or otherwise identifies graffiti on any 666

Container during the normal course of its work, CONTRACTOR shall exchange that Container for 667

a clean Container during the next scheduled Collection at no cost to the Service Recipient. In 668

addition, CONTRACTOR shall remove or paint over any and all graffiti on Containers within 24 669

hours that is specifically identified and requested by the City Representative. 670

3.08 Labor and Equipment. CONTRACTOR shall provide and maintain all labor, 671

equipment, tools, facilities, and personnel supervision required for the performance of 672

CONTRACTOR’S obligations under this Agreement. CONTRACTOR shall at all times have 673

sufficient backup equipment and labor to fulfill CONTRACTOR’S obligations under this 674

Agreement. No compensation for CONTRACTOR’S services or for CONTRACTOR’S supply of 675

labor, equipment, tools, facilities or supervision shall be provided or paid to CONTRACTOR by 676

CITY or by any Service Recipient except as expressly provided by this Agreement. 677

3.09 Holiday Service. CONTRACTOR shall not provide Collection Services on January 678

1st, Thanksgiving Day, and December 25th. In any week in which one of these holidays falls on a 679

Work Day, SFD Collection Services for the holiday and each Work Day thereafter will be delayed 680

one Work Day for the remainder of the week with normally scheduled Friday Collection Services 681

being performed on Saturday. MFD, Commercial and City Collection Services may also be 682

delayed one Work Day for the remainder of the week, or may be adjusted as agreed between 683

CONTRACTOR and the Service Recipient, so long as CONTRACTOR meets the minimum 684

collection frequency requirement of one (1) time per week. 685

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3.10 Processing and Disposal. 686

3.10.1 Compliance with Permits. CONTRACTOR shall not knowingly deliver 687

materials Collected under this Agreement to facilities that do not comply in all material aspects 688

with the Department of Resources Recycling and Recovery (CalRecycle) regulations under Title 689

14, Division 7, Chapter 3, Minimum Standards for Solid Waste Handling and Disposal. 690

CONTRACTOR, and not CITY, must use reasonable efforts to assure that all Disposal, transfer, 691

and processing facilities to which CONTRACTOR delivers material under this Agreement are 692

properly permitted to receive material Collected under this Agreement. Failure to comply with this 693

provision may result in CONTRACTOR being in default under this Agreement. 694

3.10.2 Permits and Approvals. CONTRACTOR shall, upon written request from 695

CITY, arrange for the facilities owned by CONTRACTOR or an affiliate of CONTRACTOR to which 696

CONTRACTOR delivers material under this Agreement to provide copies of facility permits, 697

notices of violations, inspection areas or concerns, or administrative action to correct deficiencies 698

related to the operation, but only to the extent the foregoing are material and reasonably related 699

to the services provided under this Agreement. For other facilities selected by CONTRACTOR to 700

which CONTRACTOR delivers material under this Agreement, if CONTRACTOR becomes aware 701

of any material permit violations by such facilities that are reasonably related to the services 702

provided under this Agreement, CONTRACTOR shall notify CITY of the same. Failure to provide 703

facility information may result in CONTRACTOR being in default under this Agreement. 704

3.10.3 Disposal Facility. Except as set forth below, all Garbage (not including 705

residue) collected as a result of performing Collection Services shall be transported, and 706

delivered, to the Disposal Facility. In the event the Disposal Facility is closed on a Work Day, 707

CONTRACTOR shall transport and deliver the Garbage to such other legally permitted disposal 708

facility as is approved by CITY. Failure to comply with this provision may result in the levy of 709

liquidated damages as specified in Article 19 of this Agreement and may result in CONTRACTOR 710

being in default under this Agreement. 711

3.10.4 Organic Waste Processing Facility. CONTRACTOR shall deliver all 712

collected Organic Waste to a legally permitted Organic Waste Processing Facility. Organic Waste 713

shall not stay on site at designated Transfer Facility for a duration longer than allowed by current 714

operating permits prior to transferring to the Organic Waste Processing Facility. Failure to comply 715

with this provision may result in the levy of liquidated damages as specified in Article 19 of this 716

Agreement and may result in CONTRACTOR being in default under this Agreement. 717

3.10.5 Material Recovery Facility. All Recyclable Materials Collected as a result 718

of performing SFD, MFD, Commercial and City Recycling Services shall be delivered to a legally 719

permitted Material Recovery Facility (MRF). Failure to comply with this provision may result in the 720

levy of liquidated damages as specified in Article 19 of this Agreement and may result in 721

CONTRACTOR being in default under this Agreement. 722

3.11 Inspections. CITY shall have the right to inspect CONTRACTOR’S facilities or 723

collection vehicles used in the performance of this Agreement and their contents at any time while 724

operating inside or outside CITY. 725

3.12 Commingling of Materials. CONTRACTOR shall not at any time commingle in 726

Collection Vehicles Garbage, Organic Waste, or Recyclable Material collected pursuant to this 727

Agreement, with any Recyclable Material separated for collection pursuant to this Agreement 728

without the express prior written authorization of the City Representative. 729

3.12.1 Garbage Collected in CITY. CONTRACTOR shall not at any time 730

commingle in Collection Vehicles any Garbage Collected pursuant to this Agreement, with any 731 55

FRANCHISE AGREEMENT

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other material Collected by CONTRACTOR inside or outside the City of Half Moon Bay without 732

the express prior written authorization of the City Representative. 733

3.12.2 Recyclable Materials Collected in CITY. CONTRACTOR shall not at any 734

time commingle in Collection Vehicles Recyclable Materials Collected pursuant to this Agreement, 735

with any other material Collected by CONTRACTOR inside or outside the City of Half Moon Bay 736

without the express prior written authorization of the City Representative. 737

3.12.3 Organic Waste Collected in CITY. CONTRACTOR shall not at any time 738

commingle in Collection Vehicles Organic Waste Collected pursuant to this Agreement, with any 739

other material Collected by CONTRACTOR inside or outside the City of Half Moon Bay without 740

the express prior written authorization of the City Representative. 741

3.13 Contamination. CONTRACTOR shall only be required to collect Recyclable 742

Materials if they have been separated by the Service Recipient from Garbage and Organic Waste, 743

and shall only be required to collect Organic Waste if it has been separated by the Service 744

Recipient from Garbage and Recyclable Materials. If by visual inspection of a container it appears 745

that Recyclable Materials are contaminated with ten percent (10%) or more by weight of Garbage 746

or Organic Waste, or Organic Waste is contaminated with five percent (5%) or more by weight of 747

Garbage or Recyclables, then CONTRACTOR may leave the container unemptied along with a 748

Non-Collection Notice which contains instructions on the proper procedures for setting out 749

Recyclable Materials or Organic Waste. Upon notification by the City Representative or 750

agreement between the Service Recipient and CONTRACTOR, CONTRACTOR shall collect the 751

contaminated Recyclable Materials or Organic Waste container as Garbage on the Service 752

Recipient’s next regularly scheduled Garbage collection day. CONTRACTOR may charge for this 753

service at the then-applicable Garbage collection rate for the type of customer and size of 754

container (and if City is the Service Recipient, at the Commercial Garbage collection rate). 755

3.14 Spillage and Litter. CONTRACTOR shall not litter premises in the process of 756

providing Collection Services or while its vehicles are on the road. CONTRACTOR shall transport 757

all materials Collected under the terms of this Agreement in such a manner as to prevent the 758

spilling or blowing of such materials from CONTRACTOR'S vehicle. CONTRACTOR shall 759

exercise all reasonable care and diligence in providing Collection Services so as to prevent 760

spilling or dropping of Garbage, Organic Waste, or Recyclable Materials and shall immediately, 761

at the time of occurrence, clean up such spilled or dropped materials. 762

3.14.1 CONTRACTOR shall not be responsible for cleaning up un-sanitary 763

conditions caused by the carelessness of the Service Recipient; however, CONTRACTOR shall 764

clean up any material or residue that are spilled or scattered by CONTRACTOR or its employees. 765

3.14.2 Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris 766

resulting from CONTRACTOR’S operations or equipment repair shall be covered immediately 767

with an absorptive material and removed from the street surface. When necessary, 768

CONTRACTOR shall apply a suitable cleaning agent to the street surface to provide adequate 769

cleaning. To facilitate such cleanup, CONTRACTOR’S vehicles shall at all times carry sufficient 770

quantities of petroleum absorbent materials along with a broom and shovel. 771

3.14.3 The above paragraphs notwithstanding, CONTRACTOR shall clean up any 772

spillage or litter caused by CONTRACTOR within two (2) hours upon notice from CITY. 773

3.14.4 In the event where damage to CITY streets is caused by a hydraulic oil spill 774

(i.e., any physical damage in excess of a simple cosmetic stain caused by the spill), 775

CONTRACTOR shall be responsible for all repairs to return the street to the same condition prior 776

to the spill. CONTRACTOR shall also be responsible for all clean-up activities related to the spill. 777 56

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Repairs and clean-up shall be performed in a manner satisfactory to the City Representative and 778

at no cost to CITY. 779

3.15 Ownership of Materials. Title to Garbage, Organic Waste, and Recyclable Materials 780

shall pass to CONTRACTOR at such time as said materials are placed in CONTRACTOR’S 781

collection vehicles. 782

3.16 Hazardous Waste. Under no circumstances shall CONTRACTOR’S employees 783

knowingly collect Hazardous Waste, or remove unsafe or poorly containerized Hazardous Waste, 784

from a collection container. If CONTRACTOR determines that material placed in any container 785

for collection is Hazardous Waste, or other material that may not legally be accepted at the 786

Disposal Facility or one of the processing facilities, or presents a hazard to CONTRACTOR'S 787

employees, CONTRACTOR shall have the right to refuse to accept such material. The generator 788

shall be contacted by CONTRACTOR and requested to arrange for proper disposal service. If 789

the generator cannot be reached immediately, CONTRACTOR shall, before leaving the premises, 790

leave a Non-Collection Notice, which indicates the reason for refusing to collect the material, and 791

how the Hazardous Waste can be properly disposed or recycled. 792

3.16.1 If Hazardous Waste is found in a collection container that poses an 793

imminent danger to people or property, CONTRACTOR shall immediately notify the City of Half 794

Moon Bay Fire Department. CONTRACTOR shall immediately notify CITY of any Hazardous 795

Waste that has been identified. 796

3.16.2 If Hazardous Waste is identified at the time of delivery to the Disposal 797

Facility, or one of the processing facilities and the generator cannot be identified, CONTRACTOR 798

shall be solely responsible for handling and arranging transport and disposition of the Hazardous 799

Waste. 800

3.17 Regulations and Record Keeping. CONTRACTOR shall comply with emergency 801

notification procedures required by applicable laws and regulatory requirements. All records 802

required by regulations shall be maintained at CONTRACTOR’S facility. These records shall 803

include waste manifests, waste inventories, waste characterization records, inspection records, 804

incident reports, and training records. 805

3.18 Transition. CONTRACTOR understands and agrees that the time between the formal 806

Agreement signing and April 1, 2018 is intended to provide CONTRACTOR with ample and 807

sufficient time to, among other things, order equipment, prepare necessary routing schedules and 808

route maps, obtain any permits and licenses, establish/build facilities, and begin the public 809

awareness campaign as part of CONTRACTOR’s transition program as specified in Exhibit 6 810

which is attached to and incorporated into this Agreement. CONTRACTOR shall be responsible 811

for the provision of all Collection Services, and all other services described in this Agreement, 812

beginning April 1, 2018. 813

ARTICLE 4. Charges and Rates 814

4.01 CONTRACTOR Billing. CONTRACTOR shall be responsible for the billing and 815

collection of payments for all Collection Services. CONTRACTOR may charge Service Recipients 816

any amount, provided that it does not exceed the Maximum Service Rates attached as Exhibit 1 817

to this Agreement, as the same may be adjusted under the terms of this Agreement. The City 818

Representative shall approve the form and format for all customer bills, if different from the ones 819

commonly used by CONTRACTOR. 820

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4.01.1 Partial Month Service. If, during a month, a Service Unit is added to or 821

deleted from CONTRACTOR’S Service Area, CONTRACTOR’S billing shall be pro-rated based 822

on the weekly service rate (the weekly service rate shall not exceed the service rates set forth in 823

Exhibit 1 divided by four (4)), and then multiplied by the number of actual weeks in the month 824

that service was provided to the Service Unit. 825

4.01.2 Production of Invoices for SFD Service Units. CONTRACTOR shall 826

produce a quarterly invoice for SFD Service Recipients, billing them in advance for services to be 827

provided in the upcoming three-month period. CONTRACTOR’S invoice shall be sent to the 828

Service Recipient no later than the twentieth (20th) day of the 1st month of the period for which 829

service is being billed. 830

4.01.3 Production of Invoices for MFD and Commercial Service Units. 831

CONTRACTOR shall produce a monthly invoice for MFD and Commercial Service Recipients, 832

billing them for services provided in the prior month. 833

4.01.4 Production of Invoices for Debris Box Collection Service. Notwithstanding 834

the foregoing, CONTRACTOR shall produce an invoice for Debris Box Collection Services 835

received under this Agreement in arrears for services during the prior month. Customers utilizing 836

Debris Box Collection Services may be invoiced upon completion. 837

4.01.5 City Provided Billing Inserts. CITY may provide educational and other 838

material to CONTRACTOR for inclusion in the invoices provided by CONTRACTOR to SFD, MFD 839

and Commercial Customers for Collection Services. CONTRACTOR shall not charge CITY for 840

the inclusion of additional educational or other materials in the invoices. 841

4.01.6 Methods of Payment. CONTRACTOR shall provide the means for 842

customers to pay bills through the following methods: cash, checks, credit cards, internet payment 843

service or automatic withdrawal from bank account. On-line (E-Pay) bill methods shall be 844

password protected and comply with state and federal law protecting the privacy of customer 845

credit information. At CITY’s request, CONTRACTOR shall provide evidence of such security 846

certifications and advise CITY of CONTRACTOR’S security measures implemented for on-line 847

payment. 848

4.01.7 Delinquent Service Accounts. CONTRACTOR may take such action as is 849

legally available to collect or cause collection of past due amounts from Service Recipients; 850

however, CONTRACTOR may not discontinue providing Garbage Collection Services. 851

4.02 Adjustments to Service Recipient Rates. CONTRACTOR’S initial Maximum Service 852

Recipient Rates are as specified in Exhibit 1 of this Agreement, and are firm and fixed through 853

March 31, 2019. CONTRACTOR shall not be entitled to any compensation from Service 854

Recipients that is not listed in Exhibit 1, as adjusted from time to time in accordance with this 855

Agreement. Beginning with the rate adjustment effective April 1, 2019, CONTRACTOR may apply 856

for annual adjustments to Maximum Service Recipient Rates effective April 1 of each year. 857

CONTRACTOR shall be responsible for calculating and submitting its annual rate adjustment 858

application to the CITY. 859

4.02.1 CPI Adjustment Calculation. The base for computing the adjustment shall 860

be Consumer Price Index [All Urban Consumers] (base years 1982-1984 = 100) San Francisco-861

Oakland-San Jose, CA, published by the United States Department of Labor, Bureau of Labor 862

Statistics ("index") which is published for the month of June 2018 ("beginning index"). If the index 863

for June immediately preceding the adjustment date ("adjustment index") has increased over the 864

beginning index (or the index as of the most recent prior adjustment date, as the case may be), 865

the Maximum Service Recipient Rates for the following year (until the next Maximum Rate 866 58

FRANCHISE AGREEMENT

Page 24 of 165

adjustment) shall be set by multiplying the then Maximum Service Recipient Rates by a fraction, 867

the numerator of which is the adjustment index and the denominator of which is the beginning 868

index. If the index is changed so that the base year differs from that used as of the month of June 869

of the year preceding the adjustment date, the index shall be converted in accordance with the 870

conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. 871

If the index is discontinued or revised during the term of this Agreement, such other government 872

index or computation with which it is replaced shall be used in order to obtain substantially the 873

same result as would be obtained if the index had not been discontinued or revised. 874

4.02.2 Notwithstanding any provision herein to the contrary, in no case shall the 875

Maximum Service Recipient Rates increase less than one percent (1%) or exceed four percent 876

(4%) in any one Agreement Year. 877

4.02.3 Rounding. Annual adjustments shall be made only in units of one cent 878

($0.01). Fractions of less than one cent ($0.01) shall not be considered in making adjustments. 879

CPI indices shall be truncated at four (4) decimal places for the adjustment calculations. 880

4.02.4 CPI Application and Financial Information. On or before November 1, 2018, 881

and annually thereafter during the Term, CONTRACTOR shall deliver to CITY financial 882

information for the specific services performed under this Agreement for the preceding Agreement 883

Year. Such financial information shall be in the format as approved by CITY. If CONTRACTOR 884

fails to submit the financial information in the required format by November 1, it is agreed that 885

CONTRACTOR shall be deemed to have waived the CPI rate adjustment for that year. 886

CONTRACTOR’s failure to provide the financial information shall not preclude CITY from applying 887

the CPI using the prior year’s financial data, or pro forma data if no prior year financial data is 888

available. 889

4.02.4.1 If CONTRACTOR’s failure to submit the financial 890

information required under Section 4.02.4 is the result of extraordinary or unusual circumstances 891

as demonstrated by CONTRACTOR to the satisfaction of the CITY Representative, CITY, at its 892

sole discretion, may consider the request for the annual CPI rate adjustment. 893

4.02.5 CITY Approval of CONTRACTOR Rate Application. As of February 1, 894

2019, and annually thereafter during the Term, the CITY Representative shall notify 895

CONTRACTOR whether or not the Service Recipient Rate adjustment application was approved 896

by CITY and the affected service rates to take place on the subsequent April 1. CITY shall take 897

action on any changes in the Service Recipient Rates in accordance with CITY’S Municipal Code. 898

4.02.6 Adjustments Due to Material Change In Law(s). 899

4.02.6.1 If a Material Change in Law(s) occurs after the date hereof, 900

then, upon notification by CONTRACTOR, CITY and CONTRACTOR shall negotiate in good faith 901

a reasonable and appropriate adjustment to Maximum Service Rates sufficient to offset 902

CONTRACTOR’s increased allowable costs of operation or reduced Gross Revenue resulting 903

from the Material Change in Law(s). As an exception to the preceding sentence, CONTRACTOR 904

shall not be entitled to an adjustment in Maximum Service Rates with respect to the first Seventy-905

Five Thousand Dollars ($75,000) in increased costs or decreased revenues incurred by 906

CONTRACTOR over two (2) consecutive Agreement Years resulting from the Material Change in 907

Law(s). 908

4.02.6.1.1 Separate and apart from the $75,000 threshold 909

adjustments due to any new or updated government fees or taxes outside of CONTRACTOR’S 910

payments to the CITY as described in Section 4.03, including any new or updated government 911

fees or taxes related to Solid Waste , shall also be covered by this process, and will not be subject 912 59

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to the Seventy-Five Thousand Dollars ($75,000) threshold over two (2) consecutive Agreement 913

Years. Section 4.02.6.2 below shall also apply to any such adjustments that are due to new or 914

updated government fees or taxes. 915

4.02.6.2 The Parties may negotiate and agree on the amount of any 916

Maximum Service Rate adjustment pursuant to this Section without a Detailed Rate Review. 917

CONTRACTOR shall bear the burden of justifying to CITY any adjustment due to a Material 918

Change in Law(s) and shall bear its own costs of preparing its request for an adjustment and 919

supporting documentation. CITY may request from CONTRACTOR such further information as it 920

reasonably deems necessary to fully evaluate CONTRACTOR’S request and make its 921

determination whether CONTRACTOR has satisfied its burden, which determination shall not be 922

unreasonably withheld. CITY shall notify CONTRACTOR of its determination within ninety (90) 923

calendar days of receipt of the written request and all other additional information reasonably 924

requested by CITY. Any such change will be implemented on the following April 1st, or within any 925

other time frame agreed upon between CITY and CONTRACTOR. Any adjustment in Maximum 926

Service Rates shall be approved by the City Council and memorialized in a written amendment 927

to this Agreement. 928

4.02.7 Detailed Rate Reviews. A Detailed Rate Review may be conducted if 929

requested by CITY. If requested by CITY, the Detailed Rate Review will be conducted in place of 930

the upcoming scheduled CPI rate adjustment effective April 1st (as described in Section 4.02 931

above), and shall be conducted in accordance with the specifications of Exhibit 5. The Detailed 932

Rate Review must be completed by the December 30th preceding the April 1st rate adjustment 933

date. If a Detailed Rate Review is to be conducted, CONTRACTOR shall make an advance 934

payment to CITY to compensate CITY for the estimated cost of its rate consultant, with a 935

reconciliation subsequent to the completion of the detailed rate review (so that the CITY is only 936

compensated by CONTRACTOR for the actual costs incurred for its rate consultant). Such 937

payment shall be treated as an allowable cost in such Detailed Rate Review. 938

4.02.7.1 Special Detailed Rate Review. CONTRACTOR may be 939

eligible to request one Special Detailed Rate Review, but no earlier than Year 3 of this Agreement 940

term (i.e., the earliest this review may be conducted is for the rate adjustment effective April 1, 941

2021). This review may only be requested by CONTRACTOR, and will only be conducted, in the 942

event that CONTRACTOR can demonstrate: (1) a 10% change in the total number of Service 943

Recipients as compared to the account information provided in the CITY’s request for proposals 944

(RFP) for Collection Services issued on April 30, 2017 (including any associated addenda or 945

updates to account information provided during the course of that RFP process); or (2) significant 946

Service Recipient migration between service levels affecting more than 10% of Service 947

Recipients. This Special Detailed Rate Review may only be conducted if the CONTRACTOR has 948

met all performance and diversion requirements of the Agreement, subject to the terms and 949

conditions set forth in Section 5.02.4, and CONTRACTOR will be responsible for payment of the 950

full cost of the Special Detailed Rate Review. If requested, this review shall be conducted in 951

accordance with the specifications of Exhibit 5. The Special Detailed Rate Review must be 952

completed by the December 30th preceding the April 1st rate adjustment date. If this Special 953

Detailed Rate Review is to be conducted, CONTRACTOR shall make an advance payment to 954

CITY to compensate CITY for the cost of its rate consultant. Such payment shall be treated as an 955

allowable cost in such Special Detailed Rate Review. With the exception of this Special Detailed 956

Rate Review, CONTRACTOR shall not have the right to request a Detailed Rate Review during 957

the term of this Agreement (additional Detailed Rate Reviews may be requested by the CITY, but 958

not by the CONTRACTOR, as provided for in Section 4.02.6 above). 959

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4.02.7.2 Additional Collection Services. In the event of a Detailed 960

Rate Review, the costs of Additional Collection Services provided by CONTRACTOR will be 961

allowable expenses. Additional Collection Services are described in additional detail in Article 10. 962

4.02.8 Adjustments Due to Changes in CITY Fees or Payments. In the event that 963

CITY elects to increase or decrease the amount of fees or payments set forth in Section 4.03 964

through 4.03.4 below, beyond those increases provided for in such sections, Maximum Service 965

Rates shall be adjusted in accordance with this Section. The increased or decreased fee or 966

payment shall take effect on April 1, or such other date as may be agreed by CITY and 967

CONTRACTOR. CITY shall notify CONTRACTOR of the amount of the intended increase or 968

decrease by the February 1 preceding such April 1 so that CONTRACTOR may include an 969

additional Maximum Service Rate adjustment as part of its regularly scheduled April 1st rate 970

adjustment, to accommodate the cost of the increased or decreased fee or payment. This 971

additional rate adjustment shall be calculated using the following methodology, and such 972

calculation must be included in CONTRACTOR’S regular rate adjustment request submitted to 973

CITY by November 1 (or October 1, in the case of a Detailed Rate Review) in order for 974

CONTRACTOR to be eligible to receive the additional rate adjustment. Such rate adjustment 975

shall be in addition to any other rate adjustment to which CONTRACTOR may be entitled under 976

this Agreement, (it being understood that, if the amount of such adjustment is included in a 977

contemporaneous Detailed Rate Review, no further adjustment under this Section would be 978

required). 979

4.02.8.1 The CONTACTOR shall calculate the additional rate 980

adjustment percentage as: 981

(A) The total dollar value of the increased fees and/or payments 982

divided by 983

(B) The total estimated CONTRACTOR Gross Revenue for the current calendar year 984

divided by 985

(C) One (1) minus the Franchise Fee percentage described in Section 4.04.1 986

By way of example, if the total dollar value of the increased fee is $1 million and total estimated 987

CONTRACTOR Gross Revenue is $15 million, the increased fee of $1 million is divided by the 988

$15 million Gross Revenue, which is 0.0666. The 0.0666 is divided by one minus the Franchise 989

Fee percentage of 14% or 0.14 (one minus 0.14 is 0.86), for a total of 0.0775. The additional rate 990

adjustment percentage in this example would therefore be 7.75 percent. 991

The “total estimated CONTRACTOR Gross Revenue for the current calendar year” (B) shall be 992

calculated as: the CONTACTOR’S total Gross Revenue as reported to CITY for the previous 993

calendar year, multiplied by one (1) plus the approved rate adjustment percentage which became 994

effective on the most recent April 1st. The calculated additional rate adjustment percentage shall 995

be added to CONTRACTOR’S regularly scheduled CPI or Detailed Rate Review rate adjustment 996

percentage effective the upcoming April 1st. 997

4.03 CONTRACTOR’S Payments to CITY. CONTRACTOR shall make payment to CITY 998

of a Franchise Fee, and such other fees as may be required under this Agreement. Unless 999

otherwise noted, each payment to CITY shall be due on a quarterly basis, on the 15th day of the 1000

month following the end of the calendar quarter in which revenues were collected. Each payment 1001

shall be accompanied by an accounting, which sets forth CONTRACTOR’S Gross Revenues 1002

during the preceding quarter in sufficient detail to allow for an independent recalculation of 1003

payments. 1004 61

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4.03.1 Franchise Fee. The Franchise Fee will be a percentage of 1005

CONTRACTOR’S Gross Revenue collected each calendar quarter under the terms of this 1006

Agreement. The Franchise Fee percentage shall be Fourteen Percent (14%) of Gross 1007

Revenues unless otherwise adjusted by CITY. CONTRACTOR shall make payment of the 1008

Franchise Fee to CITY on a quarterly basis with payments due on January 15th, April 15th, July 1009

15th, and October 15th of each Agreement Year for the prior quarter’s services, with the first 1010

payment due on July 15, 2018. 1011

4.03.2 RFP Reimbursement Fee. CONTRACTOR shall pay CITY a one-time fee 1012

of One Hundred Fifty Thousand Dollars ($150,000) to reimburse CITY for its costs of preparing 1013

Request for Proposal (RFP) documents. The RFP Reimbursement Fee payment shall be made 1014

within thirty (30) calendar days of the effective date of this Agreement. Failure of CONTRACTOR 1015

to pay the RFP Reimbursement Fee will result in immediately voiding this Agreement. 1016

4.03.3 Monthly Administrative Support Payment. CONTRACTOR will be required 1017

to reimburse the CITY for its costs for managing this Agreement. The initial monthly payment 1018

amount shall be Six Thousand Dollars ($6,000) and may be adjusted annually each April 1st by 1019

the annual average increase in the CPI index subject to the terms and conditions set forth in 1020

Section 4.02.2. CONTRACTOR shall make this payment to CITY on a monthly basis with 1021

payments due on the 15th of each month for the prior month’s services, with the first payment due 1022

on May 15, 2018. In the event that CITY adjusts the Monthly Administrative Support Payment 1023

amount, the Maximum Service Rates will also be adjusted simultaneously and commensurately, 1024

to incorporate any such changes in the Monthly Administrative Support Payment. 1025

4.03.4 No acceptance by CITY of any payment shall be construed as an accord 1026

that the amount is in fact the correct amount, nor shall such acceptance of payment be construed 1027

as a release of any claim CITY may have against CONTRACTOR for any additional sums payable 1028

under the provisions of this Agreement. All amounts paid shall be subject to independent audit 1029

and recompilation by CITY. If, after the audit, such recompilation indicates an underpayment, 1030

CONTRACTOR shall pay to CITY the amount of the underpayment and shall reimburse CITY for 1031

all reasonable costs and expenses incurred in connection with the audit and recompilation within 1032

ten (10) Work Days of receipt of written notice from CITY that such is the case. If, after audit, such 1033

recompilation indicates an overpayment, CITY shall notify CONTRACTOR in writing of the 1034

amount of the overpayment, less costs and expenses incurred in connection with the audit and 1035

recompilation. CONTRACTOR may offset the amounts next due by the amount of any 1036

overpayment, less cost and expenses incurred by CITY, following receipt of such notice by the 1037

amount specified therein. 1038

ARTICLE 5. Diversion Requirements 1039

5.01 CONTRACTOR’S Diversion Requirements. CONTRACTOR shall fully implement the 1040

Diversion Plan provided in Exhibit 10, and shall assist CITY in reaching CalRecycle’s 75% goal 1041

by December 31, 2020. In addition, CONTRACTOR is required to achieve the following minimum 1042

diversion rates: 1043

5.01.1 CONTRACTOR is required to divert a minimum of forty percent (40%) of 1044

all materials collected from all services under the provisions of this Agreement during calendar 1045

year 2019 (measured for the calendar year as a whole). 1046

5.01.2 CONTRACTOR is required to divert a minimum of forty-five percent (45%) 1047

of all materials collected from all services under the provisions of this Agreement during calendar 1048

year 2020 (measured for the calendar year as a whole). 1049

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5.01.3 CONTRACTOR is required to divert a minimum of fifty percent (50%) of all 1050

materials collected from all services under the provisions of this Agreement for both calendar year 1051

2021 and calendar year 2022 (measured separately for each calendar year). 1052

5.01.4 CONTRACTOR is required to divert a minimum of fifty-five percent (55%) 1053

of the materials it collects pursuant to this Agreement for calendar year 2023 and each year 1054

thereafter during the term of this Agreement (measured separately for each calendar year). 1055

5.02 CITY Remedies. In its sole discretion, the CITY may take the following actions in the 1056

event that CONTRACTOR does not meet its diversion requirements under Section 5.01 above: 1057

5.02.1 For calendar years 2019 and 2020, if CONTRACTOR does not meet the 1058

minimum diversion requirements specified in Sections 5.01.1 and 5.01.2 in either year, then CITY 1059

may assess liquidated damages in accordance with Section 19.03. 1060

5.02.2 For calendar year 2021 and 2022, if CONTRACTOR does not meet the 1061

minimum diversion requirement specified in Sections 5.01.3 in either year, then, at CITY’s option, 1062

either (a) CITY may assess liquidated damages in accordance with Section 19.03, or (b) 1063

CONTRACTOR shall implement additional diversion program(s) at no cost to CITY or rate payers 1064

(such program(s) to be proposed by CONTRACTOR and approved by CITY, such approval not 1065

to be unreasonably withheld). 1066

5.02.3 For calendar years 2023 and onwards, if CONTRACTOR does not meet 1067

the minimum diversion requirement specified in Sections 5.01.4, then, at CITY’s option, either (a) 1068

CITY may assess liquidated damages in accordance with Section 19.03, or (b) CONTRACTOR 1069

shall implement additional diversion program(s) at no cost to CITY or rate payers (such 1070

program(s) to be proposed by CONTRACTOR and approved by CITY, such approval not to be 1071

unreasonably withheld). In addition, regardless of which option CITY chooses, if CONTRACTOR 1072

does not meet the minimum diversion requirement in any calendar year from 2023 onwards, in its 1073

sole reasonable discretion, CITY may declare CONTRACTOR ineligible to receive a term 1074

extension in accordance with Section 2.02. 1075

5.02.4 Notwithstanding the foregoing provisions and without waiving CITY’s rights 1076

and remedies under this Agreement for CONTRACTOR’s non-performance, in the event 1077

CONTRACTOR is unable to meet the minimum diversion requirements set forth in Section 5.01, 1078

CITY may, in its sole reasonable discretion, elect not to assess liquidated damages for 1079

CONTRACTOR’s non-performance, pursuant to Section 19.03, and CONTRACTOR may be 1080

eligible to receive a term extension in accordance with Section 2.02, so long as CONTRACTOR 1081

demonstrates to CITY’s reasonable satisfaction that (a) CONTRACTOR undertook, in good faith, 1082

comprehensive efforts, in accordance with best industry practices, to meet the minimum diversion 1083

requirements under Section 5.01 but was unable to do so for reasons outside of CONTRACTOR’s 1084

control and (b) CONTRACTOR implemented additional diversion program(s) at no cost to CITY 1085

or rate payers (such program(s) to be proposed by CONTRACTOR and approved by CITY, such 1086

approval not to be unreasonably withheld), as provided under Section 5.13 and Section 25.02. 1087

5.03 Diversion Rate Calculation. For purposes of determining CONTRACTOR has met its 1088

diversion requirements under this Agreement, CITY and CONTRACTOR agree the annual 1089

diversion rate will be calculated using the following formula: “the tons of materials Collected by 1090

CONTRACTOR from the provision of Collection Services in CITY that are delivered to the 1091

Materials Recovery Facility, Organic Waste Processing Facility, or any other processing facility 1092

approved by CITY, or that are otherwise handled in a manner that counts as diversion under 1093

applicable CalRecycle regulations (in each case, net of all residue from processing), divided by 1094

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the total tons of materials Collected in the City of Half Moon Bay by CONTRACTOR from the 1095

provision of Collection Services in each calendar year.” 1096

5.03.1 As part of the Quarterly Reports submitted in accordance with Section 1097

16.03, CONTRACTOR shall provide documentation acceptable to CITY in its sole but reasonable 1098

discretion stating and supporting each calendar quarter's diversion rate. Diversion from other 1099

sources other than CONTRACTOR'S Collection and diversion efforts (such as source reduction 1100

or reuse, recyclables diverted by other solid waste enterprises, collection of materials that are not 1101

the subject of this Agreement, or the efforts of self-haulers) shall not be counted as diversion 1102

achieved by CONTRACTOR. 1103

5.04 End Uses for Organic Waste. CONTRACTOR shall divert Organic Waste materials 1104

Collected through weekly Organic Waste Collection, Christmas tree Collection, and Debris Box 1105

Collection from disposal. CONTRACTOR must provide or arrange for end uses for such Organic 1106

Waste that provides diversion credits for CITY according to regulations established by the 1107

CalRecycle. CONTRACTOR shall divert through uses other than as Alternative Daily Cover 1108

(ADC) or Beneficial Reuse with the exception of Overs Fraction of the organics generated through 1109

the composting process. 1110

5.05 Use of Alternative Daily Cover (ADC) or Beneficial Reuse. CONTRACTOR may not 1111

utilize Organic Waste as Alternative Daily Cover (ADC) or Beneficial Reuse with the exception of 1112

Overs Fraction of the organics generated through the composting process. 1113

5.06 Changes in the Market Conditions for Recyclable Materials. Upon notice to and prior 1114

approval by CITY, CONTRACTOR may deem additional materials or groups of materials 1115

Recyclable Materials if they become capable of recycling at CONTRACTOR’s facilities in or near 1116

the Service Area. CONTRACTOR reserves the right, upon written notice to and prior written 1117

approval by CITY, to discontinue acceptance of any category of Recyclable Materials as a result 1118

of market conditions related to such materials, which approval shall not be unreasonably withheld 1119

by CITY. Such CITY approval for reducing the type of Recyclable Materials discontinued shall not 1120

exceed 12 months. Discontinued acceptance of Recyclable Materials pursuant to this Section 1121

shall not relieve CONTRACTOR of CONTRACTOR’S Diversion Requirements set forth in Section 1122

5.01 of this Agreement. 1123

5.07 Warranties and Representations. CONTRACTOR warrants and represents that it is 1124

aware of and familiar with CITY's waste stream, and that it has the ability to and will provide the 1125

programs and services required to be provided by it hereunder, with a view to facilitating CITY’s 1126

meeting or exceeding the diversion requirements as set forth in Section 5.01. CONTRACTOR 1127

further warranties that it understands the diversion requirements of the Applicable Laws 1128

(including, without limitation, amounts of Solid Waste to be diverted, time frames for diversion, 1129

and any other requirements) governing this Agreement (including AB 341, AB 939, AB 1594, AB 1130

1826, SB 1016 and all amendments and related subsequent legislation), and that it shall provide 1131

such programs and services without imposing any costs or fees other than those set forth in 1132

Exhibit 1 (as adjusted), unless new programs are required by the State or CITY which are not 1133

called out herein, in which case Maximum Service Rates may be adjusted in accordance with this 1134

Agreement. The programs identified herein are minimum requirements that must be met, and 1135

CONTRACTOR may (but is not required to) implement other programs that may be necessary to 1136

achieve the forgoing. 1137

5.08 Mutual Cooperation. CITY shall cooperate in good faith, so long as there is no 1138

additional cost to CITY, with CONTRACTOR in CONTRACTOR’s efforts to meet CITY’S diversion 1139

and other compliance requirements imposed by AB 939 and other such Applicable Laws, and to 1140

meet the diversion requirements of this Agreement and the State. In this regard, CITY’S 1141 64

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obligations shall include, without limitation, making such petitions and applications as may be 1142

reasonably requested by CONTRACTOR for time extensions in meeting State diversion goals, or 1143

other exceptions from the terms of such Applicable Laws, and to agree to authorize such changes 1144

to CONTRACTOR’S Recycling or Solid Waste programs as may be reasonably requested by 1145

CONTRACTOR for CONTRACTOR to satisfy diversion requirements. 1146

5.09 Waste Reduction and Program Implementation. CONTRACTOR shall be responsible 1147

for providing data and information as reasonably requested by CITY regarding its programs and 1148

services hereunder, for purposes including but not limited to CITY’S preparation of reports and 1149

other information as may be required by any agency, including specifically, the State of California, 1150

in order to comply with AB 939 and other such Applicable Laws. 1151

5.10 Compliance with Law. CONTRACTOR agrees that it will carry out its obligations 1152

under this Agreement in a manner consistent with Applicable Laws including specifically AB 939, 1153

AB 341, AB 1594, AB 1826 and SB 1016 and all amendments thereto. 1154

5.11 Failure To Meet Minimum Diversion Requirements. CONTRACTOR acknowledges 1155

that its failure to meet the minimum diversion requirements set forth in Section 5.01 above may 1156

result in the denial of a term extension and the imposition of liquidated damages in accordance 1157

with Article 19, subject to the terms and conditions set forth in Section 5.02.4 above. 1158

5.12 Waste Generation/Characterization Studies. CONTRACTOR acknowledges that 1159

CITY may need to perform Solid Waste generation and disposal characterization studies 1160

periodically to comply with the requirements of the Applicable Laws, including AB 939. 1161

CONTRACTOR agrees to participate and cooperate with CITY and its agents to accomplish such 1162

studies, as reasonably requested by CITY, provided that such participation and cooperation can 1163

be accomplished at no additional cost to CONTRACTOR and without substantially interfering with 1164

CONTRACTOR’s operations. 1165

5.13 Implementation of Additional Diversion Services. If CITY determines that 1166

CONTRACTOR has not fulfilled its diversion requirements set forth in this Agreement, CITY may 1167

require CONTRACTOR to implement additional diversion programs in accordance with Section 1168

5.02. 1169

5.13.1 Pilot programs and innovative services which may entail new Collection or 1170

processing methods, and use of new or alternative Solid Waste processing and disposal 1171

technologies are included among the types of changes which CITY may direct. Any changes 1172

under this Section shall be treated as City-Directed Changes under Section 25.02. 1173

ARTICLE 6. Service Units 1174

6.01 Service Units. Service Units shall include all the following categories of premises 1175

which are in the Service Area as of the effective date of this Agreement, and all such premises 1176

which may be added to the Service Area by means of annexation, new construction, or as 1177

otherwise set forth in this Agreement during term of this Agreement: 1178

6.01.1 SFD Service Units 1179

6.01.2 MFD Service Units 1180

6.01.3 Commercial Service Units 1181

6.01.4 City Service Units 1182

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6.01.4.1 Any question as to whether a premise falls within one of 1183

these categories shall be determined by the City Representative and the determination of the City 1184

Representative shall be final. 1185

6.02 Service Unit Changes. CITY and CONTRACTOR acknowledge that during the term 1186

of this Agreement, the number of Service Units for which CONTRACTOR will provide Collection 1187

Services may increase or decrease, due to annexation, development, or other reasons. 1188

6.03 Service Unit Additions. CONTRACTOR shall provide services described in this 1189

Agreement to new Service Units within five (5) Work Days of receipt of notice from CITY or new 1190

Service Unit to begin such service. 1191

6.04 Coordination with Street Sweeping. CITY and CONTRACTOR acknowledge that 1192

CONTRACTOR may have to modify collection days to accommodate CITY’s street sweeping 1193

schedule. 1194

6.05 Route Map Update. CONTRACTOR shall revise the Service Unit route maps to 1195

show the addition of Service Units added due to annexation and shall provide such revised maps 1196

to the City Representative as requested. 1197

ARTICLE 7. SFD Collection Services 1198

7.01 SFD Collection Services. These services shall be governed by the following terms 1199

and conditions: 1200

7.01.1 Conditions of Service. CONTRACTOR shall provide SFD Collection 1201

Service to all SFD Service Units in the Service Area whose Garbage is properly containerized in 1202

Garbage Carts, Recyclable Materials are properly containerized in Recycling Carts, except as set 1203

forth in Section 7.04.4; and Organic Waste is properly containerized in Organic Waste Carts 1204

except as set forth in Section 7.05.5. The Garbage, Recycling and Organic Waste Carts will be 1205

Collected at least once a week. CONTRACTOR shall offer Garbage Carts in 20, 32, and 64-gallon 1206

cart sizes, Recyclable Materials Carts in 64-gallon size, and Organic Waste Carts in 96-gallon 1207

cart size. The size of the Garbage Cart shall be determined between the SFD Service Recipient 1208

and CONTRACTOR. The base SFD Garbage Collection Service shall include Recycling 1209

Collection Service as described in Section 7.04.1 below, and Organic Waste Collection Service 1210

as described in Section 7.05.1 below, at no additional cost to the Service Recipient. 1211

7.01.1.1 Curbside Collection Service. SFD Curbside Collection shall 1212

be done where Garbage, Recyclable Materials and Organic Waste Carts are placed within five 1213

(5) feet of the curb, swale, or at edge of street pavement for streets without curbs. This shall apply 1214

to both public and private streets. CONTRACTOR may charge for Curbside Collection at the rates 1215

as set forth in Exhibit 1. 1216

7.01.1.2 On-Premise Collection Service – Physical Disability. A SFD 1217

Service Recipient, and all other adults living at the Service Unit residing therein, that has 1218

disabilities that prevent him/her from being physically able to place Garbage, Recyclable 1219

Materials, or Organic Waste Carts at the curb for collection shall receive On-premise Collection 1220

Service where all Garbage, Recyclable Materials, and Organic Waste Carts are Collected from a 1221

side-yard, backyard, or other off-street location agreed on between CONTRACTOR and the 1222

Service Recipient. CONTRACTOR shall provide this service at no additional cost to the Curbside 1223

collection rates as set forth in Exhibit 1. 1224

7.01.1.3 Upon customer request, CONTRACTOR shall place a 1225

vacation hold on existing residential customers for up to one month per calendar year, provided 1226 66

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that the residential property is not occupied during the vacation hold collection stop period. Any 1227

rate charges shall be prorated by CONTRACTOR in accordance with the residential customer’s 1228

request to suspend service. 1229

7.02 Frequency and Scheduling of Service. Except as set forth in Sections 7.06 (Curbside 1230

Christmas Tree Collection), 7.07 (Bulky Waste Collection Service), 7.10 (Curbside Used Oil and 1231

Oil Filters Collection), and 7.11 (SFD Debris Box Collection Service), curbside SFD Collection 1232

Services shall be provided one (1) time per week on a scheduled route basis. SFD Collection 1233

Services shall be scheduled so that a SFD Service Unit receives SFD Garbage Collection Service, 1234

SFD Recycling Collection Service, and SFD Organic Waste Collection Service on the same Work 1235

Day. 1236

7.03 SFD Garbage Collection Service. This service will be governed by the following 1237

additional terms and conditions: 1238

7.03.1 Disposal Facility. All Garbage collected as a result of performing SFD 1239

Garbage Collection Services shall be transported to, and disposed of, at the Disposal Facility. 1240

Failure to comply with this provision shall result in the levy of liquidated damages as specified in 1241

this Agreement and may result in CONTRACTOR being in default under this Agreement. 1242

7.03.2 Additional Garbage Carts. Upon notification to CONTRACTOR by CITY or 1243

a Service Recipient that additional Garbage Carts are requested, CONTRACTOR shall deliver 1244

such Garbage Carts to such Service Recipient within five (5) Work Days. CONTRACTOR may 1245

charge for each additional Garbage Cart at the same rate the Service Recipient is charged for 1246

their initial Garbage Cart, as set forth in Exhibit 1 or as may be adjusted under the terms of this 1247

Agreement. 1248

7.04 SFD Recycling Collection Service. This service will be governed by the additional 1249

following terms and conditions: 1250

7.04.1 Base SFD Recycling Service. All SFD Service Recipients subscribing to 1251

SFD Garbage Collection Service shall receive weekly collection of one (1) 64 gallon Recycling 1252

Cart at no additional charge to the Service Recipient. 1253

7.04.2 Material Recovery Facility. All Recyclable Materials Collected as a result 1254

of performing Recycling Services shall be delivered to a Materials Recovery Facility. Failure to 1255

comply with this provision shall result in the levy of liquidated damages as specified in this 1256

Agreement. All expenses related to Recyclable Materials processing and marketing will be the 1257

sole responsibility of CONTRACTOR. 1258

7.04.3 Additional Recycling Carts. CONTRACTOR shall provide additional SFD 1259

Recycling Carts to SFD Collection Service Recipients within five (5) days of request at the rates 1260

set forth in Exhibit 1, and provided that additional carts are used by Service Recipients for the 1261

purposes of setting out additional Recyclable Materials for regular weekly Recycling Collection 1262

Service. 1263

7.04.4 Overages. Corrugated cardboard or other recyclable materials that will not 1264

fit inside the Recycling Cart may be flattened, bagged and/or bundled and placed beside the 1265

Recycling Cart. 1266

7.04.5 Recycling - Changes to Work. Should changes in law arise that necessitate 1267

any additions or deletions to the work described herein including the type of items included as 1268

Recyclable Materials, the parties shall negotiate any necessary cost changes and shall enter into 1269

an amendment to this Agreement covering such modifications to the work to be performed and 1270

the compensation to be paid before undertaking any changes or revisions to such work. 1271 67

FRANCHISE AGREEMENT

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7.04.6 SFD Recyclable Materials Disposal. CONTRACTOR shall ensure that the 1272

Recyclable Materials Collected pursuant to this Agreement is not disposed of in a landfill, except 1273

residue resulting from processing. 1274

7.05 SFD Organic Waste Collection Service. This service includes collection of Green 1275

Waste and Food Waste together in Organic Waste Carts. This service will be governed by the 1276


7.05.1 Base SFD Organic Waste Service. All SFD Service Recipients subscribing 1278

to SFD Garbage Collection Service shall receive weekly collection of one (1) 96 gallon Organic 1279

Waste Cart at no additional charge to the Service Recipient. 1280

7.05.2 Organic Waste Processing Services. CONTRACTOR shall ensure that all 1281

Organic Waste Collected pursuant to this Agreement is diverted from the landfill in accordance 1282

with AB 939 and any subsequent or other applicable legislation and regulations. 1283

7.05.3 Organic Waste Processing Facility. CONTRACTOR shall deliver all 1284

Collected Organic Waste to a fully permitted Organic Waste Processing Facility or a fully permitted 1285

Organic Waste transfer station. All expenses related to Organic Waste processing and marketing 1286

will be the sole responsibility of CONTRACTOR. 1287

7.05.4 Organic Waste Disposal. CONTRACTOR shall ensure that the Organic 1288

Waste Collected pursuant to this Agreement is not disposed of in a landfill, except residue 1289

resulting from processing. 1290

7.05.5 Additional Organic Waste Carts. CONTRACTOR shall provide additional 1291

SFD Organic Waste Carts to SFD Service Recipients within five (5) days of request at the rates 1292

set forth in Exhibit 1, and provided that additional carts are used by SFD Service Recipients for 1293

the purposes of setting out additional Organic Waste Materials for regular weekly Organic Waste 1294

Collection Service. 1295

7.05.6 Kitchen Food Waste Pails. CONTRACTOR shall provide Kitchen Food 1296

Waste Pails to SFD Service Recipients that request them within five (5) days of request at no 1297

additional cost provided that pails are used by SFD Service Recipients for the collection of food 1298

waste. 1299

7.06 Curbside Christmas Tree Collection. CONTRACTOR shall Collect Christmas trees 1300

from all SFD Service Units as part of the SFD Organic Waste Collection Services. 1301

CONTRACTOR shall provide this service beginning on the first Work Day after December 25 until 1302

the third Friday in January, or such other dates that are approved by CITY. 1303

7.06.1 Contaminated Christmas Trees. Christmas trees that are flocked or 1304

contain tinsel or other decorations may be delivered to the Disposal Facility at the discretion of 1305

CONTRACTOR. 1306

7.07 Bulky Waste Collection Service. This service will be governed by the following terms 1307

and conditions: 1308

7.07.1 Conditions of Service. CONTRACTOR shall provide SFD Bulky Waste 1309

Collection Service to all SFD Service Units in the Service Area whose Bulky Waste have been 1310

placed within five (5) feet of the curb, swale, paved surface of the public or private roadway, 1311

closest accessible roadway, or other such location agreed to by CONTRACTOR and Service 1312

Recipient, that will provide safe and efficient accessibility to CONTRACTOR'S collection crew and 1313

vehicle. Each SFD Service Unit in the Service Area shall be entitled to receive free Bulky Waste 1314

Collection Service a maximum of two (2) collection times per calendar year. Bulky Waste 1315

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Collection Service shall be a combination of loose Large Items not exceeding an approximate 1316

equivalent of three (3) cubic yards per collection. This may include Large Items such as TVs, 1317

couches, mattresses, refrigerators, stoves, and water heaters. In accordance with the “Additional 1318

Bulky Waste Collection” service rates as set forth in Exhibit 1, CONTRACTOR shall be 1319

compensated for the cost of Collecting Large Items in excess of (a) a single collection of over 1320

three (3) cubic yards, or (b) more than two (2) Bulky Waste Collections per calendar year. 1321

7.07.2 Frequency of Service. SFD Service Recipients must call at least forty-eight 1322

(48) hours in advance to schedule SFD Bulky Waste Collection Service. Collection will occur on 1323

the customer’s regular collection day. 1324

7.07.3 Large Items Containing Freon. In the event CONTRACTOR Collects Large 1325

Items that contain Freon, CONTRACTOR shall ensure that the Freon is removed by a certified 1326

specialist so that, if practicable, the Large Items are not subject to regulation as Hazardous Waste 1327

under applicable state and federal laws or regulations. CONTRACTOR may charge for collecting 1328

Large Items containing Freon in accordance with the Maximum Service rates in Exhibit 1. 1329

7.07.4 CITY Direction of Large Items. CITY reserves the right to direct 1330

CONTRACTOR under Section 25.02 to deliver Large Items Collected pursuant to this Section to 1331

a designated site or sites for the purpose of reuse or recycling of such Large items, provided that 1332

CITY shall only direct CONTRACTOR to deliver Large Items to sites that (i) reuse or recycle such 1333

materials in a manner that counts as diversion, and (ii) do not charge CONTRACTOR or CITY to 1334

accept and reuse or recycle such materials. CONTRACTOR shall have no obligation to dispose 1335

of the Large Items or Large Item residue remaining at the directed site or sites after reusers and 1336

recyclers have removed reusable or recyclable Large Items. Delivery of such Large Items shall 1337

count as diversion by CONTRACTOR for purposes of the diversion requirement described in 1338

Section 5.01. 1339

7.08 Hard to Service Areas. Notwithstanding any term or definition set forth in this 1340

Agreement, CONTRACTOR, at no additional cost, shall manually collect SFD Garbage, 1341

Recyclable Materials, Organic Waste, and Bulky Waste from a SFD Service Unit under the 1342

following conditions: 1343

7.08.1 Where topography, street conditions, or limited street access for police, fire, 1344

or safety vehicles prevents CONTRACTOR’S collection vehicle access for Collecting Garbage, 1345

Recycling, Organic Waste, and Large Items for collection. 1346

7.09 Curbside Used Motor Oil, Household Battery, and Cell Phone Collection. 1347

CONTRACTOR shall provide curbside collection of used motor oil, household batteries, and cell 1348

phones as part of CONTRACTOR’S regularly scheduled SFD Recycling Collection Service, at no 1349

additional cost to the SFD Service Recipients. 1350

7.09.1 CONTRACTOR shall provide customers upon request with leak-proof used 1351

oil containers and heavy duty zip-lock bags for used batteries and cell phones. Customers will be 1352

allowed to recycle up to two (2) gallons of used motor oil each week using this service. All used 1353

motor oil, batteries and cell phones must be properly containerized and bagged in accordance 1354

with CONTRACTOR’s instructions and set out next to, or on top of, the Recycling Cart. 1355

7.10 Household Hazardous Waste (HHW), Sharps and E-Waste Drop-off Events. Twice 1356

per Agreement Year, at no additional cost to SFD and MFD Service Recipients, CONTRACTOR 1357

shall provide a centralized location for Service Recipients to drop-off HHW, Sharps and E-Waste. 1358

The location, date and time of each event will be mutually agreed upon between the 1359

CONTRACTOR and the CITY Representative. 1360

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7.10.1 Materials collected and accepted at the drop-off location shall include, but 1361

not be limited to: HHW, latex paint, auto batteries, used oil, oil filters, Sharps, Universal Waste, 1362

and E-Waste. 1363

7.10.2 Ox Mountain Landfill Recycling Drop-off Center. In addition to the twice per 1364

year HHW drop-off events, Contractor shall provide free drop-off of recyclables, electronic waste, 1365

mattresses, used oil and household batteries for SFD and MFD Service Recipients at Ox 1366

Mountain Landfill Monday through Saturday during normal hours of operation. 1367

7.11 SFD Debris Box Collection Service. Upon twenty four (24) hours request by a SFD 1368

Service Unit for a Debris Box Container, CONTRACTOR shall provide a Debris Box Container at 1369

the Service Unit. Such SFD Debris Box Collection Service shall be on a temporary basis not to 1370

exceed seven (7) days without collection, emptying, and replacement of the Debris Box Container. 1371

7.11.1 Charges for Debris Box Containers shall be in accordance with Exhibit 1B 1372

of this Agreement. 1373

7.11.2 CONTRACTOR shall provide SFD Debris Box Collection Services with as 1374

little disturbance as possible and without obstructing alleys, roadways, driveways, sidewalks, or 1375

mailboxes. CONTRACTOR shall only place Debris Boxes in strict adherence with CITY’S right-1376

of-way requirements and Municipal Code. 1377

ARTICLE 8. MFD Collection Services 1378

8.01 MFD Collection Services. These services will be governed by all conditions of 1379

service as specified in Article 9 of this Agreement, with the following exceptions: 1380

8.01.1 Base MFD Recycling Service. All MFD Service Recipients subscribing to 1381

MFD Garbage Collection Service shall receive weekly collection of the equivalent volume of one 1382

(1) 32 gallon Recycling Cart per individual Dwelling Unit in the MFD complex at no additional cost. 1383

The actual configuration of Recycling Cart and/or Bin sizes to be provided at no additional cost 1384

shall be based on the total equivalent volume, and configured in a manner determined by the 1385

Service Recipient in consultation with the CONTRACTOR. Section 9.03.2 of this Agreement, 1386

pertaining to Commercial Service Recipients, shall not apply to MFD Service Recipients. 1387

8.01.2 Base MFD Organic Waste Service. All MFD Service Recipients subscribing 1388

to MFD Garbage Collection Service shall receive weekly collection of the equivalent volume of 1389

one (1) 20 gallon Organic Waste Cart per individual Dwelling Unit in the MFD complex at no 1390

additional cost. The actual configuration of Organic Waste Cart and/or Bin sizes to be provided at 1391

no additional cost shall be based on the total equivalent volume, and configured in a manner 1392

determined by the Service Recipient in consultation with the CONTRACTOR. Section 9.04.2 of 1393

this Agreement, pertaining to Commercial Service Recipients, shall not apply to MFD Service 1394

Recipients. 1395

8.01.3 Kitchen Food Waste Pails. Upon request, CONTRACTOR shall provide 1396

MFD Service Units with one (1) Kitchen Food Waste Pail for each individual Dwelling Unit within 1397

the MFD Service Unit complex, as provided in Section 3.07.4. 1398

8.01.4 MFD Bulky Waste Collection Service. This service will be governed by the 1399


8.01.4.1 Conditions of Service. CONTRACTOR shall provide MFD 1401

Bulky Waste Collection Service to all MFD Service Units in the Service Area whose Bulky Waste 1402

have been placed within five (5) feet of the curb, swale, paved surface of the public or private 1403

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FRANCHISE AGREEMENT

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roadway, closest accessible roadway, or other such location agreed to by CONTRACTOR and 1404

MFD Service Unit management, that will provide safe and efficient accessibility to 1405

CONTRACTOR'S collection crew and vehicle. Each MFD Service Unit in the Service Area shall 1406

be entitled to receive free Bulky Waste Collection Service a maximum of two (2) collection times 1407

per calendar year. Bulky Waste Collection Service shall be a combination of loose Large Items 1408

not exceeding an approximate equivalent volume per collection of 0.5 cubic yards multiplied by 1409

the number of individual Dwelling Units within the MFD Service Unit. For example, an MFD 1410

Service Unit consisting of 6 units would receive a total of 3 cubic yards of free Bulky Waste 1411

Collection Service per collection, to be allocated among those units as the MFD Service Unit 1412

management deems appropriate. Bulky Waste Collection Service shall be a combination of loose 1413

Large Items, which may include Large Items such as TVs, couches, mattresses, refrigerators, 1414

stoves, and water heaters. In accordance with the “Additional Bulky Waste Collection” service 1415

rates as set forth in Exhibit 1, CONTRACTOR shall be compensated for the cost of Collecting 1416

Large Items in excess of (a) a single collection exceeding the equivalent of 0.5 cubic yards per 1417

individual Dwelling Unit, or (b) more than two (2) Bulky Waste Collections per calendar year. 1418

8.01.4.2 Frequency of Service. MFD Service Unit management must 1419

call at least forty-eight (48) hours in advance to schedule MFD Bulky Waste Collection Service. 1420

Collection will occur on the day agreed to between the MFD Service Unit management and 1421

CONTRACTOR. 1422

8.01.4.3 Large Items Containing Freon. In the event CONTRACTOR 1423

Collects Large Items that contain Freon, CONTRACTOR shall ensure that the Freon is removed 1424

by a certified specialist so that, if practicable, the Large Items are not subject to regulation as 1425

Hazardous Waste under applicable state and federal laws or regulations. CONTRACTOR may 1426

charge for collecting Large Items containing Freon in accordance with the Maximum Service rates 1427

in Exhibit 1. 1428

8.01.4.4 CITY Direction of Large Items. CITY reserves the right to 1429

direct CONTRACTOR under Section 25.02 to deliver Large Items Collected pursuant to this 1430

Section to a designated site or sites for the purpose of reuse or recycling of such Large Items, 1431

provided that CITY shall only direct CONTRACTOR to deliver Large Items to sites that (i) reuse 1432

or recycle such materials in a manner that counts as diversion, and (ii) do not charge 1433

CONTRACTOR or CITY to accept and reuse or recycle such materials. CONTRACTOR shall 1434

have no obligation to dispose of the Large Items or Large Item residue remaining at the directed 1435

site or sites after reusers and recyclers have removed reusable or recyclable Large Items. 1436

Delivery of such Large Items shall count as diversion by CONTRACTOR for purposes of the 1437

diversion requirement described in Section 5.01. 1438

8.01.5 Curbside Christmas Tree Collection. CONTRACTOR shall Collect 1439

Christmas trees from all MFD Service Units as part of the MFD Organic Waste Collection 1440

Services. CONTRACTOR shall provide this service beginning on the first Work Day after 1441

December 25 until the third Friday in January, or such other dates that are approved by CITY. 1442

8.01.5.1 Contaminated Christmas Trees. Christmas trees that are 1443

flocked or contain tinsel or other decorations may be delivered to the Disposal Facility at the 1444

discretion of CONTRACTOR. 1445

8.01.5.2 Upon customer request, CONTRACTOR shall place a 1446

vacation hold on existing residential customers for up to one month per calendar year, provided 1447

that the residential property is not occupied during the vacation hold collection stop period. Any 1448

rate charges shall be prorated by CONTRACTOR in accordance with the residential customer’s 1449

request to suspend service. 1450 71

FRANCHISE AGREEMENT

Page 37 of 165

ARTICLE 9. Commercial Collection Services 1451

9.01 Commercial Collection Services. These services will be governed by the 1452


9.01.1 Conditions of Service. CONTRACTOR shall provide Commercial Garbage 1454

Collection Service, Commercial Recycling Collection Service, Commercial Organic Waste 1455

Collection Service, and Commercial Debris Box Collection Service to all Commercial Service 1456

Units in the Service Area whose Garbage, Recyclable Materials, and Organic Waste are properly 1457

containerized in Bins, Carts, or Debris Boxes as appropriate where the Bins, Carts or Debris 1458

Boxes are accessible as set forth in Section 9.01.3. CONTRACTOR shall offer Garbage, 1459

Recyclable Materials, and Organics Carts in 20, 32, 64 and 96-gallon cart sizes. CONTRACTOR 1460

shall offer Garbage, Recyclable Materials, and Organic Waste Bins in 1, 2, 3, 4, and 6-cubic yard 1461

sizes. CONTRACTOR shall offer Debris Boxes in 20, 30 and 40-cubic yard sizes, as well as a 10-1462

cubic yard size for dirt, concrete and asphalt only. The size of the container and the frequency 1463

(above the minimum) of collection shall be determined between the Service Recipient and 1464

CONTRACTOR. However, the size and frequency shall be sufficient to provide that no Garbage, 1465

Recyclable Materials, or Organic Waste Materials need be placed outside the Bin, Cart or Debris 1466

Box. The base Commercial Garbage Collection Service shall include Recycling Collection Service 1467

as described in Section 9.03.2 below, and Organic Waste Collection Service as described in 1468

Section 9.04.2 below, at no additional cost to the Service Recipient. 1469

9.01.2 Required Capacity. CONTRACTOR shall provide Commercial Recycling 1470

Collection Service and Organic Waste Collection Service to all Commercial Service Units in the 1471

Service Area at no additional cost. For each Service Unit, CONTRACTOR shall offer a minimum 1472

capacity of Commercial Recycling Collection and Commercial Organic Waste Collection Service 1473

which is appropriate in relationship to the total cubic yards collected weekly for Commercial 1474

Garbage Collection Service. 1475

9.01.3 Accessibility. CONTRACTOR shall collect all Garbage, Recycling, or 1476

Organic Waste Bins or Carts that are readily accessible to CONTRACTOR'S crew and vehicles 1477

and not blocked. However, CONTRACTOR shall provide “push services” and/or “key services” as 1478

necessary during the provision of Commercial Collection Services and in accordance with the 1479

“push services” and/or “key services” service rate as set forth in Exhibit 1 which is attached to 1480

and included in this Agreement or as may be adjusted under the terms of this Agreement. Push 1481

services shall include, but not be limited to moving manually or by a specialized “scout” truck the 1482

Bins or Carts from their storage location for Collection and returning the Bins or Carts to their 1483

storage location. Key services shall include the provision of a master lock and key by 1484

CONTRACTOR to the Service Address for the purpose of locking the Service Recipient’s carts 1485

or bins. 1486

9.01.4 Manner of Collection. CONTRACTOR shall provide Commercial Collection 1487

Service with as little disturbance as possible and shall leave any Bin or Cart at the same point it 1488

was originally located without obstructing alleys, roadways, driveways, sidewalks or mail boxes. 1489

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FRANCHISE AGREEMENT

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9.02 Commercial Garbage Collection Service. 1490

9.02.1 Conditions of Service. CONTRACTOR shall provide Commercial Garbage 1491

Collection Service to all Commercial Service Units in the Service Area whose Commercial 1492

Garbage is properly containerized in Garbage Bins or Carts, where the Garbage Bins or Carts 1493

are accessible. 1494

9.02.2 Disposal Facility. All Commercial Garbage collected as a result of 1495

performing Commercial Garbage Collection Services shall be transported to, and disposed of, at 1496

the Disposal Facility. Failure to comply with this provision shall result in the levy of liquidated 1497

charges as specified in this Agreement and may result in CONTRACTOR being in default under 1498

this Agreement. 1499

9.02.3 Size and Frequency of Service. This service shall be provided as deemed 1500

necessary and as determined between CONTRACTOR and the customer, but such service shall 1501

be received no less than one (1) time per week with no exception for holiday(s) as set forth herein, 1502

except that Collection Service scheduled to fall on a holiday may be rescheduled as determined 1503

between the customer and CONTRACTOR as long as the minimum frequency requirement is 1504

met. Service may be provided by Bin or Cart at the option of the customer. The size of the 1505

container and the frequency (above the minimum) of Collection shall be determined between the 1506

customer and CONTRACTOR. However, size and frequency shall be sufficient to provide that no 1507

Commercial Garbage need be placed outside the Bin or Cart. CONTRACTOR shall provide 1508

containers as part of the Commercial Collection Service rates set forth in Exhibit 1. Customers 1509

may provide their own Compactor, provided that the customer is completely responsible for its 1510

proper maintenance and that such Compactor shall be of a type that can be serviced by 1511

CONTRACTOR'S equipment. 1512

9.02.4 Commercial Garbage Overflow. In the case of repeated overflows of 1513

Commercial Garbage, CONTRACTOR shall contact the Commercial Service Unit management 1514

to arrange for an appropriate change in Garbage Bin or Cart size, collection frequency or both. 1515

In the event CONTRACTOR cannot successfully contact the Commercial Service Unit 1516

management after three attempts, or cannot reach an agreement with such management 1517

regarding the change in service, CONTRACTOR shall advise the City Representative by written 1518

communication or e-mail, of the details of the Commercial Garbage overages, and the attempts 1519

at communication with the Commercial Service Unit management. The City Representative shall 1520

respond to CONTRACTOR’S report and make a final written determination. Within five (5) Work 1521

Days of receipt of the City Representative’s written determination, CONTRACTOR shall change 1522

the Collection Service in accordance with such written determination. 1523

9.02.5 Non-Collection. CONTRACTOR shall not be required to collect any 1524

Commercial Garbage that is not placed in a Garbage Bin or Cart. CONTRACTOR shall also not 1525

be required to collect any Container that is blocked by debris, or is otherwise obstructed in a 1526

manner that prevents CONTRACTOR from accessing the Container for collection. In the event of 1527

non-collection, CONTRACTOR shall affix to the Garbage Bin or Cart a Non-Collection Notice 1528

explaining why collection was not made. 1529

9.03 Commercial Recycling Collection Service. This service will be governed by the 1530


9.03.1 Conditions of Service. CONTRACTOR shall provide Commercial Recycling 1532

Collection Service to all Commercial Service Units in the Service Area whose Recyclable 1533

Materials are properly containerized in Recycling Bins, Carts or Debris Boxes, except as set forth 1534

below, where the Recycling Bins, Carts, or Debris Boxes are accessible. CONTRACTOR shall 1535

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FRANCHISE AGREEMENT

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charge for collection of Recyclable Materials collected in Carts or Bins at the rate set forth in 1536

Exhibit 1. Commercial Recycling Collection will occur Monday through Friday, and on Saturdays 1537

upon request and as necessary. 1538

9.03.2 Base Commercial Recycling Service. All Commercial Service Recipients 1539

subscribing to Commercial Garbage Collection Service shall receive weekly collection of the 1540

equivalent volume of one (1) 96 gallon Recycling Cart per Service Recipient at no additional cost. 1541

This equivalent volume may be provided in the form of up to two (2) smaller Cart sizes, if 1542

requested by the Service Recipient and/or to help meet space constraints. In situations where 1543

shared service is provided, the equivalent volume of one (1) 96 gallon Recycling Cart per 1544

individual Commercial entity that is sharing service shall be provided at no additional cost, and 1545

the actual configuration of Recycling Cart and/or Bin sizes to be provided shall be based on the 1546

total equivalent volume, and configured in a manner determined by the Service Recipient in 1547

consultation with the CONTRACTOR. 1548

9.03.3 Compliance with AB 341. CONTRACTOR will develop and maintain a 1549

recycling program in compliance with AB 341, and implement such program upon the starting 1550

date of this Agreement. CONTRACTOR will notify any covered businesses not participating in the 1551

recycling program of the requirements to comply with the law, starting April 1, 2018. 1552

CONTRACTOR will provide the volume of collection service that covered businesses require in 1553

order to be in compliance with the law. 1554

9.03.4 Material Recovery Facility. All Recyclable Materials collected as a result 1555

of performing Commercial Recycling Services shall be delivered to a Material Recovery Facility. 1556

Failure to comply with this provision shall result in the levy of liquidated damages as specified in 1557

this Agreement. All expenses related to Recyclable Materials processing and marketing will be 1558

the sole responsibility of CONTRACTOR. 1559




except that collection service scheduled to fall on a holiday may be rescheduled as determined 1563


met. Service may be provided by Bin, Cart or Debris Box at the option of the customer. The size 1565

of the container and the frequency (above the minimum) of collection shall be determined between 1566

the customer and CONTRACTOR. However, size and frequency shall be sufficient to provide that 1567

no Recyclable Materials need be placed outside the Bin, Cart or Debris Box. CONTRACTOR shall 1568

provide containers as part of the Commercial Collection Service rates set forth in Exhibit 1. 1569

Customers may provide their own Compactor, provided that the customer is completely 1570

responsible for its proper maintenance and that such Compactor shall be of a type that can be 1571

serviced by CONTRACTOR'S equipment. 1572

9.03.6 Additional Recycling Bins or Carts. CONTRACTOR shall provide 1573

additional Commercial Recycling Bins and Carts to Commercial Service Recipients within five (5) 1574

days of request at no additional cost provided that additional bins and carts are used by 1575

Commercial Service Recipients for the purposes of setting out additional Recyclable Materials for 1576

regular weekly Recycling Collection Service. 1577

9.04 Commercial Organic Waste Service. This service includes collection of Green Waste 1578

and Food Waste together in Organic Waste Carts, Bins, Debris Boxes, and/or Compactors. This 1579

service will be governed by the following terms and conditions: 1580

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FRANCHISE AGREEMENT

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9.04.1 Conditions of Service. CONTRACTOR shall provide Commercial Organic 1581

Waste Collection Service to all Commercial Service Units in the Service Area whose Organic 1582

Waste materials are properly containerized in Organic Waste Bins, Carts, Debris Boxes, or 1583

Compactors except as set forth below, where the Organic Waste Bins, Carts, debris Boxes, or 1584

Compactors are accessible. CONTRACTOR shall charge for collection of Organic Waste 1585

collected in Carts or Bins at the rate set forth in Exhibit 1. CONTRACTOR agrees that not all 1586

Commercial and MFD Service Units will elect to receive Organic Waste Collection Service in 1587

Carts, and that CONTRACTOR will provide Organic Waste Collection Bins upon request and as 1588

necessary. Further, CONTRACTOR agrees that there are several Commercial Service Units that 1589

utilize Compactors for collection or Organic Waste, and that CONTRACTOR will provide a 1590

sufficient number of Carts or Bins and at a collection frequency to allow for any such Commercial 1591

Service Unit to utilize the collection of Organic Waste. Commercial Organic Waste Collection will 1592

occur Monday through Friday, and on Saturdays upon request and as necessary. 1593

9.04.2 Base Commercial Organic Waste Service. All Commercial Service 1594

Recipients subscribing to Commercial Garbage Collection Service shall receive weekly collection 1595

of the equivalent volume of one (1) 32 gallon Organic Waste Cart per Service Recipient at no 1596

additional cost. In situations where shared service is provided, the equivalent volume of one (1) 1597

32 gallon Organic Waste Cart per individual Commercial entity that is sharing service shall be 1598

provided at no additional cost, and the actual configuration of Organic Waste Cart and/or Bin sizes 1599

to be provided shall be based on the total equivalent volume, and configured in a manner 1600

determined by the Service Recipient in consultation with the CONTRACTOR. 1601

9.04.3 Compliance with AB 1826. CONTRACTOR will develop and maintain an 1602

organic waste recycling program in compliance with the AB 1826 schedule, and implement such 1603

program upon the starting date of this Agreement. CONTRACTOR will notify any covered 1604

businesses not participating in the recycling program of the requirements to comply with the law 1605

starting April 1, 2018. CONTRACTOR will provide the volume of collection service that covered 1606

businesses require in order to be in compliance with the law. 1607

9.04.4 Organic Waste Processing Facility. All Organic Waste collected as a 1608

result of performing Commercial Collection Services shall be delivered to an Organic Waste 1609

Processing Facility. Failure to comply with this provision may result in the levy of liquidated 1610

damages as specified in this Agreement and may result in CONTRACTOR being in default under 1611

this Agreement. All expenses related to Organic Waste processing and marketing will be the sole 1612

responsibility of CONTRACTOR. 1613




except that Collection Service scheduled to fall on a holiday may be rescheduled as determined 1617


met. Service may be provided by Bin, Cart or Debris Box at the option of the customer. The size 1619

of the container and the frequency (above the minimum) of collection shall be determined between 1620

the customer and CONTRACTOR. However, size and frequency shall be sufficient to provide that 1621

no Organic Waste Materials need be placed outside the Bin, Cart or Debris Box. CONTRACTOR 1622

shall provide containers as part of the Commercial Collection Service rates set forth in Exhibit 1. 1623

Customers may provide their own Compactor, provided that the customer is completely 1624

responsible for its proper maintenance and that such Compactor shall be of a type that can be 1625

serviced by CONTRACTOR'S equipment. 1626

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FRANCHISE AGREEMENT

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9.04.6 Additional Organic Waste Bins or Carts. CONTRACTOR shall provide 1627

additional Commercial Organic Waste Bins and Carts to Commercial Service Recipients at the 1628

rates listed in Exhibit 1 provided that additional Bins and Carts are used by Commercial Service 1629

Recipients for the purposes of setting out additional Organic Waste materials for regular weekly 1630

Organic Waste Collection Service. 1631

9.05 Commercial Debris Box Collection Service. Upon request of a Commercial Service 1632

Unit, CONTRACTOR shall provide a Commercial Debris Box Collection Service on a temporary 1633

basis or permanent basis. 1634

9.05.1 Charges for Debris Boxes shall be in accordance with Exhibit 1 of this 1635

Agreement. 1636

9.05.2 CONTRACTOR shall provide Commercial Debris Box Collection Services 1637

with as little disturbance as possible and without obstructing alleys, roadways, driveways, 1638

sidewalks, or mail boxes. CONTRACTOR shall only place Debris Boxes in strict adherence with 1639

CITY’S right-of-way requirements and Municipal Code. 1640

ARTICLE 10. Additional Collection Services 1641

10.01 Collection from CITY Service Units, Public Locations, Library, and Fire Station 40. 1642

At no cost to CITY, CONTRACTOR shall provide Garbage, Recycling, Organic Waste, and Debris 1643

Box Collection Service to the Service Units and public containers listed in Exhibit 2, at the volume 1644

and frequency set forth in Exhibit 2, including but not limited to the local library and Fire Station 1645

40. CITY may change the CITY Service Units and public containers receiving service and the 1646

volume and frequency of service by written notice to CONTRACTOR, provided the change does 1647

not increase CONTRACTOR’s total cost of providing services to City Service Units. Service may 1648

be provided by Bin, Cart or Debris Box at the option of CITY. CONTRACTOR shall offer Carts, 1649

Bins and Debris Boxes for all material types in the same container sizes and collection frequencies 1650

offered to Commercial Service Recipients, as described in Article 9. 1651

10.01.1 Accessibility. CONTRACTOR shall collect all carts, bins and debris 1652

boxes that are readily accessible to CONTRACTOR'S crew and vehicles and not blocked. 1653

CONTRACTOR shall provide “push services” and/or “key services” as necessary during collection 1654

from CITY Service Units. Push services shall include, but not be limited to, dismounting from the 1655

collection vehicle, moving the bins or carts from their storage location for collection and returning 1656

the bins or carts to their storage location. Key services shall include the provision of a master 1657

lock and key by CONTRACTOR to the Service Address for the purpose of locking the Service 1658

Recipient’s carts or bins. 1659

10.01.2 Notification. CONTRACTOR will notify the City Representative 1660

daily, by e-mail, of all situations that prevent or hinder collection from any CITY Service Unit, 1661

unless otherwise directed by CITY. 1662

10.02 CITY-Supported Events. CONTRACTOR shall provide Collection Services at the 1663

CITY-supported events listed in Exhibit 3, and/or at any other CITY-supported events that are 1664

held on CITY property and requested by CITY, at no additional cost to the CITY or its ratepayers. 1665

Within any Agreement Year, CITY may substitute other events for those listed in Exhibit 3, and 1666

may change the volume of services provided at CITY-supported events, so long as the total 1667

annual cost to CONTRACTOR does not exceed the annual cost of providing the services for the 1668

events that are listed in Exhibit 3. 1669

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10.03 City Code Enforcement Clean-Up Service. In response to the request of the City 1670

Representative, CONTRACTOR shall within two (2) Work Days provide for collection of illegally 1671

dumped materials from CITY Streets, public rights-of-way, and CITY-designated properties. 1672

CONTRACTOR shall collect, transport and deliver the materials to the Disposal Facility, the 1673

Materials Recovery Facility, or such other facility as is appropriate for the disposition of the 1674

materials and approved by the City Representative. CONTRACTOR shall provide up to 1,000 1675

cubic yards of this service per Agreement Year at no charge to CITY. For any excess volume, 1676

CONTRACTOR may charge a fee in accordance with the Maximum Service Rates as specified 1677

in Exhibit 1, as adjusted in accordance with this Agreement. Unused volume may not be carried 1678

forward as a credit to subsequent years. 1679

10.03.1 Abandoned Waste Notification. CONTRACTOR shall direct its 1680

collection vehicle drivers to note (i) the addresses of any premises at which the driver observes 1681

that Garbage, Recyclable Material, and/or Organic Waste Material is accumulating; and (ii) the 1682

address, or other location description, at which Garbage, Recyclable Material, and/or Organic 1683

Waste has been dumped in an apparently unauthorized manner. This includes material 1684

accumulating or deposited in CITY Streets, in public rights-of-way, or on vacant parcels to the 1685

CITY. CONTRACTOR shall deliver the address or description to CITY within twenty-four hours 1686

(24) of such observation. 1687

10.04 Non-CITY Large Venue and Event Collection Service. CONTRACTOR shall 1688

provide Collection services, upon request, to any venue and/or event within the CITY Service 1689

Area. Specifically, CONTRACTOR shall provide, at a minimum, Garbage and Recyclable 1690

Materials Collection services, and shall also provide Organic Waste Collection services if one (1) 1691

cubic yard or more of Organic Waste is generated per day at the Venue or Event. Organic Waste 1692

Collection services, if provided, shall include collection of both Green Waste and Food Waste. 1693

CONTRACTOR shall provide Collection as frequently as requested by the CITY or the event 1694

organizer. CONTRACTOR shall provide an adequate number and type of Collection Container(s) 1695

for the venue or event and shall coordinate its Collection services with CITY or event organizer. 1696

Containers shall be appropriately labeled to collect Garbage, Recyclable Materials or Organic 1697

Waste. Within ten (10) Business Days of CONTRACTOR receiving a request to supply an event 1698

with Garbage, Recyclable Materials, Organic Waste Collection services, the CONTRACTOR will 1699

either meet with or schedule a meeting with the event organizer to discuss the event's parameters, 1700

including location, number of people attending, type of event, type of food being provided, and 1701

other related issues. Once parameters of the event are determined, proper Containers will be 1702

provided by CONTRACTOR, with emphasis on recycling and diversion of the materials 1703

generated. 1704

10.04.1 Maximum Service Rates. CONTRACTOR may charge the 1705

venue/event organizer at the Maximum Service Rates in accordance with Exhibit 1 for comparable 1706

services provided to Commercial Service Units. Recyclable Materials Collection service shall be 1707

provided at no additional cost to venues/events that subscribe to Garbage Collection. 1708

10.04.2 Reporting. The CONTRACTOR shall report the tonnage of each 1709

material type Collected at each venue and event to the CITY and, upon CITY request, to the event 1710

organizer. For venues and events which are required to comply with the Large Venues and Events 1711

Recycling Law, codified at Public Resources Code Section 42648 et seq., CONTRACTOR shall 1712

assist the venue or event organizer in preparing a Recycling Plan and reporting all information 1713

required by those provisions of the law. CONTRACTOR shall be required to provide to CITY, at 1714

a minimum, the following information for each venue or event: 1715

10.04.2.1 List of large venues and events in Service Area. 1716

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10.04.2.2 Physical and mailing addresses. 1717

10.04.2.3 Contact name, address, phone number and email address. 1718

10.04.2.4 Type of venue or event (e.g., museum, concert, sporting 1719

event). 1720

10.04.2.5 Status of the venue or event’s written waste 1721

diversion/Recycling Plan (for all venues and events which 1722

are required to comply with the Large Venues and Events 1723

Recycling Law), and a description of the extent in which the 1724

plan has been implemented. 1725

10.04.2.6 Service level provided (i.e., Solid Waste, Recyclable 1726

Materials and Organic Waste). 1727

10.04.2.7 Tons disposed and diverted, by material type. 1728

10.04.2.8 Description of the scope and types of diversion programs 1729

provided. 1730

10.04.2.9 Any other information required by law. 1731

10.05 Compost Giveaway and Shred Events. Twice per Agreement Year, at no additional 1732

cost to the CITY or Service Recipients, CONTRACTOR will coordinate with the CITY to host a 1733

twice annual shred event in conjunction with "Bring Your Own Bucket” (BYOB) giveaway of 1734

compost to CITY residents. The BYOB compost giveaway will provide residents with free compost 1735

to enrich their gardens while also educating residents on the benefits of home composting. In 1736

addition, CONTRACTOR representatives will be on hand to distribute recycling guides and other 1737

educational material promoting waste reduction and recycling. Households will be limited to three 1738

banker-size boxes at each shred event. The compost giveaway will include a total of fifteen (15) 1739

cubic yards of compost per giveaway. The dates and times for Compost Giveaway events will be 1740

mutually agreed upon between the CONTRACTOR and the CITY Representative. 1741

10.06 School Tours and Scholarships. CONTRACTOR shall provide busing for Cabrillo 1742

Unified School District Schools located in Half Moon Bay and tours of the Ox Mountain Landfill, 1743

up to five times per school year. Additionally, CONTRACTOR shall provide one one thousand-1744

dollar ($1,000) scholarship per calendar year to a high school student to assist with their 1745

secondary education. Selection criteria will be determined through consultation with Half Moon 1746

Bay High School and administered in the spring semester. 1747

10.07 Poplar Beach Cleanup. Twice per Agreement Year, at no additional cost to the 1748

CITY or Service Recipients, CONTRACTOR will coordinate cleanups at Poplar Beach in 1749

collaboration with the CITY, Chamber and other local organizations. 1750

10.08 Street Sweeping Services. CONTRACTOR shall provide Street Sweeping 1751

Services throughout the term of this Agreement, in accordance with the following terms and 1752

conditions. 1753

10.08.1 Manner of Service. CONTRACTOR shall provide a complete sweep 1754

of all Curb Miles on all publicly maintained CITY Streets. Within any Curb Mile, CONTRACTOR 1755

shall be responsible for sweeping all curbs including Median Islands and the corners from any 1756

cross street intersecting the subject street. CONTRACTOR shall obey all laws governing the 1757

operation of the sweepers on a public street, and shall perform its operations so that sweepers 1758

are traversing their routes in the normal direction of traffic. 1759

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10.08.2 CONTRACTOR shall furnish all materials, labor, supervision and 1760

equipment necessary to perform all work required for regularly scheduled sweeping of all public 1761

streets in the City at the frequency and within the time frames described in Exhibit 4. Within 90 1762

days of the Effective Date, CONTRACTOR shall adopt a CITY approved street sweeping 1763

schedule that follows the CITY approved refuse collection schedule, including adjustments for 1764

Holidays. The sweep shall occur within two (2) Work Days following refuse collection. Exceptions 1765

resulting from equipment breakdowns shall be immediately reported to the CITY with a catch-up 1766

schedule. 1767

10.08.3 CONTRACTOR shall also provide an annual 500-hour time bank 1768

for unscheduled sweeping and related services as described in Exhibit 4 or as otherwise 1769

assigned by the CITY upon 24-hour notice. Emergency incidents including vehicle accidents, illicit 1770

discharges, and other emergencies shall be responded to within two hours or less depending on 1771

the severity of the incident. 1772

10.08.4 Maps. CONTRACTOR shall provide the Street Sweeping Service 1773

route maps to the CITY Representative upon request, within ninety (90) days from receipt of 1774

written notice. The maps shall be provided in a format that can be posted to the CITY website. 1775

10.08.5 Sweeping Method. Unsweepable items that impede sweeping, 1776

such as palm fronds, rocks, trash and debris shall be removed from the sweeping path and 1777

properly disposed of by the operator rather than driving around them. Items that impede sweeping 1778

and are immovable such as construction debris and impaired vertical or horizontal clearance by 1779

tree limbs shall be reported to the CITY immediately for correction. CONTRACTOR is not 1780

responsible for areas missed due to parked cars or other personal property. Sweeper operators 1781

shall immediately report to CONTRACTOR and the CITY all illicit discharges observed during 1782

routes. CONTRACTOR shall train all operators to recognize illicit discharges and stormwater 1783

pollution sources prior to work as street operators and annually thereafter, using CITY-approved 1784

training materials. Such training shall be documented for review by the CITY. 1785

10.08.5.1 In areas where drainage is a problem, CONTRACTOR shall 1786

make as many passes as necessary to remove debris from standing water. In addition, all sand, 1787

dirt, rocks, gravel, vegetation, and other sweepable debris shall be removed from the street during 1788

the sweeping operation. If standing water is over the top of curb, then CONTRACTOR shall not 1789

be required to sweep that specific area. Sweeper operators shall report drainage problems to 1790

CONTRACTOR and CITY on a monthly basis, or as deemed appropriate by CONTRACTOR. 1791

10.08.6 Standards of Service. All areas swept under this Agreement shall 1792

be thoroughly cleaned. All debris shall be picked up by the sweeper unit and disposed of at 1793

CONTRACTOR's expense as outlined in this Section. Sweeping shall include the removal of all 1794

sand, gravel, dirt, litter, vegetation, and any and all other debris that accumulates between 1795

sweeps. Curb lines shall be swept along both sides of the roadway, or to the edge of pavement 1796

where no curb exists, along all curbs on raised medians, over all portions of painted medians, 1797

painted left and right turn pockets, and all intersection cross gutters. Sweeping shall normally 1798

require one pass over an area. CONTRACTOR shall make additional passes or make such extra 1799

effort required to adequately clean the street to the satisfaction of the CITY. Extra effort shall be 1800

required when sweeping equipment leaves a dirt/silt smear in its swept path. The service 1801

standards in this Section may be reviewed and modified as conditions warrant to maintain 1802

cleanliness by the CITY or as necessary to comply with any regulatory permits issued to CITY. 1803

10.08.7 Water. CONTRACTOR shall obtain water services from the 1804

appropriate water utility or CITY, if deemed appropriate, for the water necessary in the street 1805

sweeping operation, and the cost of the water shall be borne by CONTRACTOR. 1806 79

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10.08.7.1 When possible, and in accordance with applicable laws and 1807

regulations, including Title 22 of the California Code of Regulations, CONTRACTOR shall use 1808

reclaimed or tertiary recycled water. 1809

10.08.7.2 CONTRACTOR shall not discharge liquid waste from the 1810

sweeper units onto CITY streets or into the storm drain system. 1811

10.08.7.3 Washing of sweepers on CITY property is prohibited. Any 1812

and all washing of sweeper units shall be compliant with Section 12.07. CONTRACTOR shall 1813

implement best management practices when loading water into the street sweepers to prevent 1814

any overflow/potable water discharges into the storm drain system. 1815

10.08.8 Sweeper Speed. CONTRACTOR shall operate the sweepers at a 1816

speed of not more than five (5) miles per hour in residential areas and eight (8) miles per hour in 1817

commercial areas when sweeping or when the sweeper brooms are down, unless 1818

CONTRACTOR can demonstrate that the sweeper can operate efficiently and safely at a higher 1819

speed. CITY will use industry standards, Environmental Protection Agency information, and the 1820

sweeper manufacturers’ recommendations on the speed of sweepers when considering speeds 1821

greater than six (6) miles per hour. 1822

10.08.9 Width of Sweeper Path. CONTRACTOR shall sweep a path, with 1823

all brooms down, with a width of not less than eight (8) feet unless parked vehicles, structures, or 1824

other objects prohibit the safe sweeping of this path width. The path shall begin at the face of the 1825

curb, and include the flow line of the gutter. Unless blocked by parked cars, Garbage Carts, 1826

Recycling Carts, or Organics Carts the face of the curb and gutter shall always be included within 1827

the sweeper path. On those residential streets with no curb, the width of the sweeper path shall 1828

be not less than eight (8) feet measured from the edge of the pavement toward the center of the 1829

street. 1830

10.08.10 Street Sweeping Frequency. 1831

10.08.10.1 Residential Streets. CONTRACTOR shall provide Street 1832

Sweeping Service for each Curb Mile of residential streets in the CITY once a month on a 1833

scheduled route basis. However, in those instances where the scheduled Street Sweeping 1834

Service day falls on a Holiday, CONTRACTOR shall adjust the route schedule as set forth in 1835

Section 3.09. 1836

10.08.10.2 Commercial Streets. CONTRACTOR shall provide Street 1837

Sweeping Service for each Curb Mile of commercial streets no earlier than 2:00 a.m.in the CITY’s 1838

downtown area once per week on a scheduled route basis. However, in those instances where 1839

the scheduled Street Sweeping Service day falls on a Holiday, CONTRACTOR shall adjust the 1840

route schedule as set forth in Section 3.09. 1841

10.08.10.3 Other Areas. CONTRACTOR shall provide Street 1842

Sweeping Service for additional areas, as described in Exhibit 4 at a frequency as provided in 1843

Exhibit 4. 1844

10.08.10.4 Change in Frequency. The CITY may direct CONTRACTOR 1845

to change the frequency of street sweeping for any CITY street. CONTRACTOR shall implement 1846

CITY-directed changes in frequency within fifteen (15) Work Days of receipt of written notice from 1847

the CITY Representative to adjust sweeping frequency. Any changes under this Section shall be 1848

treated as CITY-directed changes under Section 25.02. 1849

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10.08.11 Street Sweeping Hours of Service. 1850

10.08.11.1 Residential Streets. CONTRACTOR shall provide Street 1851

Sweeping Service on residential streets commencing no earlier than 6:00 a.m. and terminating 1852

no later than 4:00 p.m. Monday-Friday. Street Sweeping Services shall take place five days per 1853

week. The hours, days, or both of service may be extended due to extraordinary circumstances 1854

or conditions with the prior written consent of the CITY Representative. Sweeping in residential 1855

areas shall be coordinated with Collection Services to ensure that sweeping occurs after collection 1856

of all Carts has been completed on a specific street. 1857

10.08.11.2 Commercial Streets. CONTRACTOR shall provide Street 1858

Sweeping Service on commercial streets commencing no earlier than 2:00 a.m. and terminate no 1859

later than 6:00 a.m. Monday-Friday. Street Sweeping Service shall take place five days per week. 1860

The hours, days, or both of service may be extended due to extraordinary circumstances or 1861

conditions with the prior written consent of the CITY Representative. The CITY may restrict Street 1862

Sweeping hours in the downtown area or other areas where noise or traffic negatively affects the 1863

surrounding neighborhoods. 1864

10.08.11.3 Other Areas. Designated collector, arterial streets and CITY 1865

facilities may be swept on a schedule as provided in Exhibit 4. 1866

10.08.12 Street Changes. CITY and CONTRACTOR acknowledge that it 1867

may be necessary or desirable to add or delete CITY Streets for which CONTRACTOR will 1868

provide Street Sweeping Services or necessary to temporarily modify sweeping schedules. CITY 1869

will provide notice of any such changes to CONTRACTOR which may be caused by the following: 1870

10.08.12.1 Construction or development on or along a street. 1871

10.08.12.2 Pavement maintenance activities, including the chip seal 1872

program or the slurry seal program. 1873

10.08.12.3 Special sweeping on alternative schedule. 1874

10.08.12.4 Other legitimate reasons that make sweeping impractical as 1875

determined by the CITY Representative. 1876

10.08.13 Street Additions. As new streets are constructed and accepted by 1877

CITY, CITY may, at CITY’S sole option, designate such streets as part of the Service Area for the 1878

purposes of Street Sweeping Services. If the CITY Representative designates such streets as 1879

part of the Service Area, CONTRACTOR shall provide Street Sweeping Service on such streets 1880

under the terms and conditions of this Agreement within fifteen (15) Work Days of receipt of written 1881

notice from the CITY Representative to begin service. 1882

10.08.14 Street Deletions. CITY may require some CITY Streets to be 1883

temporarily or permanently removed from the list of scheduled streets for which CONTRACTOR 1884

provides Street Sweeping Service under this Agreement. CONTRACTOR shall immediately 1885

cease providing Street Sweeping Service to any CITY Street upon receipt of written notice from 1886

the CITY Representative to stop such service. When a CITY Street has been temporarily removed 1887

from the list of scheduled streets, CONTRACTOR shall resume Street Sweeping Service on such 1888

street in the next regularly scheduled cycle following the receipt of written notice from the CITY 1889

Representative to resume service. 1890

10.08.15 Revised Maps. CONTRACTOR shall revise the Street Sweeping 1891

Service route maps to show permanent addition or deletion of CITY Streets and shall provide 1892

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such revised maps to the CITY Representative upon request, within ninety (90) days from receipt 1893

of written notice. The maps shall be provided in a format that can be posted to the CITY website. 1894

10.08.16 Hazardous Waste. CONTRACTOR shall not be required to remove 1895

any Hazardous Waste from the street surface. If, in the course of performing Street Sweeping 1896

Services, any suspected Hazardous Waste is encountered, CONTRACTOR shall immediately 1897

report the location to the CITY’s Police Department, the CITY Representative, and any other 1898

responsible agency. 1899

10.08.17 Disposal of Sweep Waste. CONTRACTOR shall transport and 1900

deliver to the Disposal Facility all Sweep Waste collected as a result of performing Street 1901

Sweeping Services in a manner that meets AB 939 or other waste diversion requirements 1902

established per CalRecycle. In the event the Disposal Facility is closed on a Work Day or is 1903

otherwise unable to accept the Sweep Waste for disposal, CONTRACTOR shall transport and 1904

dispose of the Sweep Waste at such other legally permitted Disposal Facility approved by the 1905

CITY Representative. Debris recycling and processing shall be by mutual agreement between the 1906

CONTRACTOR and the CITY and shall not be calculated as part of the minimum annual diversion 1907

rate required in Article 5. 1908

10.08.18 Spillage. During hauling, all Sweep Waste shall be contained, 1909

covered and enclosed so that leaking, spilling and blowing of the Sweep Waste is prevented. 1910

CONTRACTOR shall be responsible for the immediate clean-up of any spillage caused by 1911

CONTRACTOR. 1912

10.08.18.1 Not less than forty-five (45) Work Days prior to 1913

commencement of Street Sweeping Services, CONTRACTOR shall submit to the CITY 1914

Representative, Service Area maps precisely defining the Sweeper Routes for review and 1915

approval by the CITY Representative. The route maps shall include the days of the month 1916

sweeping shall occur, the sweeping schedules in adjacent areas, the areas of the CITY to be 1917

swept, the start and finish of each route, the location of each dumpsite, and any special needs 1918

such as early starts, and late finishes. 1919

10.08.18.2 The CITY Representative may provide written comments on 1920

the preliminary maps to CONTRACTOR no later than twenty (20) Work Days after receipt of the 1921

maps from CONTRACTOR. CONTRACTOR shall revise the maps to reflect such comments and 1922

return them to the CITY Representative within twenty (20) Work Days after receipt of the CITY 1923

Representative’s comments. 1924

10.08.18.3 Upon approval by the CITY Representative of the final 1925

Sweeper Route maps, CONTRACTOR shall develop and maintain the Sweeping Routes on a 1926

computerized mapping system that is compatible with CITY’S mapping system to the extent 1927

possible. Street Sweeping maps provided to the CITY shall be in a format that is suitable for 1928

posting to the CITY website. 1929

10.08.18.4 Changes in maps shall be provided by the CITY, and 1930

CONTRACTOR shall update the maps in CONTRACTOR’s system every month. Such changes 1931

shall also be reflected in CONTRACTOR’s printed route maps. 1932

10.08.19 Service Route Changes. CONTRACTOR shall submit to the CITY 1933

Representative, in writing, any proposed route change (including maps thereof) not less than 1934

forty-five (45) Work Days prior to the proposed date of implementation. 1935

10.08.19.1 The CITY Representative may provide written comments to 1936

CONTRACTOR on such proposed change no later than ten (10) Work Days after receipt of the 1937

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proposal from CONTRACTOR, and CONTRACTOR shall revise the routes to reflect such 1938

comments and return them to the CITY Representative within ten (10) Work Days of receipt of 1939

such comments. 1940

10.08.19.2 CONTRACTOR shall not implement any route changes 1941

without the prior written approval of the CITY Representative. If the approved route change will 1942

change the day on which Street Sweeping Service will occur, CONTRACTOR shall notify the 1943

affected Service Recipients of route changes not less than thirty (30) Work Days before the 1944

proposed date of implementation in a manner approved by the CITY Representative. 1945

10.08.20 Other CITY Sweep Service. If during the term of this Agreement, 1946

circumstances exist that require work associated with the Street Sweeping Service program that 1947

is not specifically provided for in this Agreement, the CITY Representative may require 1948

CONTRACTOR to perform such other associated work (“OAW”). 1949

10.08.20.1 When CONTRACTOR performs OAW, the labor, materials, 1950

and equipment used in the performance of such work shall be subject to the prior written approval 1951

of the CITY Representative. 1952

10.08.20.2 Examples of OAW that CONTRACTOR may be required to 1953

perform include: performance of special sweeps, flood clean-up, street sanitation for parades and 1954

celebrations, CITY requested clean-up services, and any contingency where sweeper and 1955

supporting sweeper equipment could assist in a particular instance. 1956

10.08.20.3 CONTRACTOR shall provide certain OAW services within 1957

24 hours of CITY request, including but not limited to sweeping of a spill, accident, or other 1958

situations as deemed necessary by the CITY. 1959

10.08.21 Street Sweeping Quality of Work. The standards of performance 1960

which CONTRACTOR is obligated to meet are those good street sweeping practices which leave 1961

the service area in a debris and dirt free condition. 1962

10.08.22 Street Sweeping Equipment. 1963

10.08.22.1 General Provisions. All Street Sweeping Service equipment 1964

used by CONTRACTOR in the performance of services under this Agreement shall be of a high 1965

quality, adequate to meet standards of service provided for in this Section, and shall be primarily 1966

regenerative air in design, however mechanical broom or vacuum systems may be appropriate 1967

and in conformance with the City’s Storm Water Permit. All vehicles to be used shall comply with 1968

the provisions of Article 12 for collection vehicles. 1969

10.08.22.2 Collection Vehicles. The collection vehicles shall be 1970

designed and operated so as to prevent collected materials from escaping from the collection 1971

vehicles. Hoppers shall be closed on top and on all sides with screening material to prevent 1972

collected materials from leaking, blowing or falling from the collection vehicles. 1973

10.08.22.3 Clean Air Collection Vehicles. During the term of this 1974

Agreement, to the extent required by law, CONTRACTOR shall provide its Street Sweeping 1975

vehicles to be in full compliance with all Applicable Laws, including State and federal clean air 1976

requirements that are adopted or proposed to be adopted, including, but not limited to, the 1977

California Air Resources Board Heavy Duty Engine Standards as currently proposed to be 1978

contained in California Code of Regulations, title 13, sections 2020 et seq., the Federal EPA’s 1979

Highway Diesel Fuel Sulfur regulations and all other applicable air pollution control laws. 1980

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10.08.22.4 Vehicle Noise Level. All Street Sweeping operations shall 1981

be conducted as quietly as possible and must comply with Applicable Laws, including federal EPA 1982

noise emission regulations, currently codified at Code of Federal Regulations, title 40, Part 205. 1983

10.08.22.5 Reserve Equipment. CONTRACTOR shall have available 1984

to it, at all times, reserve collection and Street Sweeping Service equipment that can be put into 1985

service and operation within one (1) hour of any breakdown. Such reserve equipment shall 1986

correspond in size and capacity to the equipment used by CONTRACTOR to perform 1987

CONTRACTOR’s duties under this Agreement. 1988

10.08.22.6 All equipment shall be maintained in good mechanical 1989

condition, including brushes and brooms that shall be replaced at regular intervals. 1990

CONTRACTOR shall immediately clean any vehicle fluids (hydraulic fluids, lubricating oils, etc.) 1991

that leak or spill from equipment into the street or public right of way. 1992

10.08.22.7 Sweeping equipment shall not be stored on CITY property 1993

or in the public right of way unless mechanical failure prevents immediate removal. In the event 1994

of mechanical failure, all efforts must be made to remove the equipment from the public right of 1995

way as soon as possible. The CITY must approve any overnight storage in public right of way or 1996

on CITY property. 1997

10.08.22.8 All equipment is subject to inspection by the CITY at any 1998

time. 1999

10.08.22.9 All sweepers shall have an operational strobe and back-up 2000

alarm and shall conform to all CITY, San Mateo County, State and federal safety requirements. 2001

10.08.23 Staffing. All Street Sweeper operators shall abide by the 2002

requirements set forth in Article 28 of this Agreement. 2003

10.08.24 Communication. CONTRACTOR shall have direct communication 2004

with all sweeping operators in the field utilizing radios or cellular telephones. Each sweeper 2005

operator shall have the ability to communicate verbal information immediately to CITY staff, Police 2006

and Fire Department personnel, residents, and to report illicit storm water discharges and 2007

hazardous street or drainage conditions to the CITY. CONTRACTOR shall also report missed 2008

routes and citizen complaints and resolution to the CITY on a weekly basis, when applicable. 2009

10.08.25 CONTRACTOR shall supply a 24-hour message telephone number 2010

to the CITY Traffic Engineer so that the CITY can notify CONTRACTOR of traffic counter 2011

installations. 2012

10.08.26 Drivers shall be aware of their locations in order to raise their 2013

brooms and avoid destruction of traffic counter cables. CONTRACTOR shall use due diligence to 2014

avoid traffic counter cables. 2015

10.08.27 Deficiencies and Corrections. The CITY may also make regular 2016

unannounced inspections of Street Sweeping locations if a swept area is deemed to be below 2017

acceptable performance standards, the substandard section shall be re-swept within 24 hours of 2018

notification. CONTRACTOR shall resweep at their own expense. The CITY shall be notified of 2019

the completed re-sweep. 2020

10.08.28 CITY Storm Water Permit. CONTRACTOR shall meet street 2021

sweeping requirements included in the CITY’s current Storm Water Discharge Permit (Order NO. 2022

R2-2009-0074, NPDES NO. CAS612008) as it may be amended, revised, or reissued from time 2023

to time. 2024

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ARTICLE 11. Collection Routes 2025

11.01 Collection Route Changes. CONTRACTOR shall submit to CITY, in writing, any 2026

proposed route change (including maps thereof) not less than sixty (60) calendar days prior to 2027

the proposed date of implementation. To the extent possible, CONTRACTOR will provide the map 2028

data in an electronic format that is compatible with the format used by CITY. CONTRACTOR shall 2029

not implement any route changes to SFD Service Recipients without the prior review of the City 2030

Representative. If the route change will change the collection day for a Service Recipient, 2031

CONTRACTOR shall notify those Service Recipients in writing of route changes not less than 2032

thirty (30) days before the proposed date of implementation. 2033

11.02 Collection Route Audits. CITY reserves the right to conduct audits of 2034

CONTRACTOR’S collection routes. CONTRACTOR shall cooperate with CITY in connection 2035

therewith, including permitting CITY employees or agents, designated by the City Representative, 2036

to ride in the collection vehicles in order to conduct the audits. CONTRACTOR shall have no 2037

responsibility or liability for the salary, wages, benefits or worker compensation claims of any 2038

person designated by the City Representative to conduct such audits. 2039

ARTICLE 12. Collection Vehicles 2040

12.01 General Provisions. All collection vehicles used by CONTRACTOR in the 2041

performance of services under this Agreement shall be of a high quality. CONTRACTOR shall 2042

replace its current Collection vehicles in accordance with the replacement schedule set forth in 2043

Exhibit 11. 2044

12.02 Vehicle Registration, Licensing and Inspection. Upon request by CITY, 2045

CONTRACTOR shall submit documentation to CITY Representative to verify that each of 2046

CONTRACTOR’S collection vehicles is in compliance with all registration, licensing and 2047

inspection requirements of the California Highway Patrol, the California Department of Motor 2048

Vehicles, and any other applicable governmental body. CONTRACTOR shall not use any vehicle 2049

to perform Collection Services that is not in compliance with applicable registration, licensing and 2050

inspection requirements. Each vehicle shall comply, at all times, with all applicable statutes, laws 2051

or ordinances of any public agency. Routine inspections by the California Highway Patrol will be 2052

required bi-annually and certificates for said inspection shall be filed with CITY upon request. 2053

12.03 Clean Air Vehicles. During the term of this Agreement, to the extent required by 2054

law, CONTRACTOR shall provide for its collection vehicles to be in full compliance with all then-2055

applicable local, State and federal clean air requirements, including, but not limited to, the 2056

California Air Resources Board Heavy Duty Engine Standards; the Federal EPA’s Highway Diesel 2057

Fuel Sulfur regulations, and any other applicable air pollution controls. 2058

12.04 Vehicle Noise Level. All collection operations shall be conducted as quietly as 2059

possible and must comply with U.S. EPA noise emission regulations currently codified at 40 CFR 2060

Part 205, and other applicable State, County, and City noise control regulations. 2061

12.05 Safety Equipment. All collection equipment used by CONTRACTOR shall have 2062

appropriate safety markings including, but not limited to, highway lighting, flashing and warning 2063

lights, clearance lights, and warning flags. All such safety markings shall be subject to the 2064

approval of CITY (if different from the markings commonly used by CONTRACTOR) and shall be 2065

in accordance with the requirements of the California Vehicle Code, as may be amended from 2066

time to time. All collection vehicles shall be equipped with audible back-up warning devices. 2067

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12.06 Vehicle Signage and Painting. Collection vehicles shall have signage in letters of 2068

contrasting color, at least four (4) inches high, on each side and the rear of each vehicle that 2069

clearly states that the collection vehicle is servicing the City of Half Moon Bay, provides 2070

CONTRACTOR'S name, CONTRACTOR’S customer service telephone number, and the number 2071

of the vehicle. No advertising shall be permitted other than the name of CONTRACTOR except 2072

promotional advertisement of the Recyclable Materials and Organic Waste programs. 2073

CONTRACTOR shall repaint all vehicles (including vehicle striping) during the term of this 2074

Agreement on a frequency as necessary to maintain a positive public image as reasonably 2075

determined by the City Representative, but CONTRACTOR shall not be required to repaint any 2076

vehicle more than once every eight (8) years. 2077

12.07 Vehicle Maintenance. CONTRACTOR shall maintain collection vehicles in a clean 2078

condition and in good repair at all times and ensure that no Collected materials, oil, grease, or 2079

other substances will blow, fall out, escape or leak out of the vehicle, with the exceptions of vehicle 2080

emission. All parts and systems of the collection vehicles shall operate properly and be 2081

maintained in a condition reasonably satisfactory to CITY. CONTRACTOR shall wash all 2082

collection vehicles at least once a week. 2083

12.08 Maintenance Log. CONTRACTOR shall maintain a maintenance log for all 2084

collection vehicles. The log shall at all times be accessible to CITY by physical inspection upon 2085

request of City Representative, and shall show, at a minimum, each vehicles’ CONTRACTOR 2086

assigned identification number, date purchased or initial lease, dates of performance of routine 2087

maintenance, dates of performance of any additional maintenance, and description of additional 2088

maintenance performed. 2089

12.09 Equipment Inventory. On or before April 30, 2018, and by April 30th annually 2090

thereafter as part of CONTRACTOR’S annual report to CITY, CONTRACTOR shall provide to 2091

CITY an inventory of collection vehicles and major equipment used by CONTRACTOR for 2092

collection or transportation and performance of services under this Agreement. The inventory 2093

shall indicate each collection vehicle by CONTRACTOR-assigned identification number, DMV 2094

license number, the age of the chassis and body, type of fuel used, the type and capacity of each 2095

vehicle, the number of vehicles by type, the date of acquisition, the decibel rating and the 2096

maintenance status. CONTRACTOR shall submit to the City Representative by e-mail an updated 2097

inventory annually to CITY or more often at the request of the City Representative. Each vehicle 2098

inventory shall be accompanied by a certification signed by CONTRACTOR that all collection 2099

vehicles meet the requirements of this Agreement. 2100

12.10 Reserve Equipment. CONTRACTOR shall have available to it, at all times, reserve 2101

collection equipment which can be put into service and operation within one (1) hour of any 2102

breakdown. Such reserve equipment shall correspond in size and capacity to the equipment used 2103

by CONTRACTOR to perform its contractual duties. 2104

ARTICLE 13. Customer Service 2105

13.01 Customer Service Program. CONTRACTOR shall develop, implement, and 2106

maintain a Customer Service Program to ensure that all services provided under this Agreement 2107

are provided at high quality and in accordance with CONTRACTOR’S Customer Service Plan 2108

attached as Exhibit 8 of this Agreement. CONTRACTOR’S Customer Service Plan may be 2109

revised from time to time, at CONTRACTOR’S discretion, provided that any amendments to the 2110

Plan shall be approved by the City Representative. Approval of any amendments by City 2111

Representative shall not be unreasonably withheld. 2112

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13.02 CONTRACTOR’S Office. CONTRACTOR shall maintain an office within San 2113

Mateo County that provides telephone access using a local number to residents and businesses 2114

of the CITY and is staffed by trained and experienced Customer Service Representatives (CSRs). 2115

Such office shall be equipped with sufficient telephones that all Collection Service related calls 2116

received during normal business hours are answered within five (5) rings, and shall have 2117

responsible persons in charge during collection hours and shall be open during normal business 2118

hours, 8:00 a.m. to 5:00 p.m. on regularly scheduled Work Days (Monday through Friday) and 2119

when SFD holiday service is scheduled to be provided on Saturdays. CONTRACTOR shall 2120

provide either a telephone answering service or mechanical device to receive Service Recipient 2121

inquiries during those times when the office is closed. Calls received after normal business hours 2122

shall be addressed the next Work Day morning. 2123

13.03 Emergency Contact. CONTRACTOR shall provide the City Representative with 2124

an emergency phone number where CONTRACTOR can be reached outside of the required 2125

office hours within a two (2) hour response time. 2126

13.04 Multilingual Service. CONTRACTOR shall at all times maintain the capability of 2127

responding to telephone calls in English and Spanish. 2128

13.05 Service Recipient Calls. During office hours, CONTRACTOR shall maintain 2129

a telephone answering system capable of accepting at least four (4) incoming calls at one (1) 2130

time. CONTRACTOR shall record all calls including any inquiries, service requests and 2131

complaints into a customer service log. 2132

13.05.1 Response to Calls. All incoming calls will be answered within five 2133

(5) rings. Any call “on-hold” in excess of one and one half (1.5) minutes shall have the option to 2134

remain “on-hold” or to be switched to a message center where Service Recipient can leave a 2135

message. CONTRACTOR’S customer service representative shall return all Service Recipient 2136

calls. For all messages left before 3:00 p.m., all “call backs” shall be attempted a minimum of one 2137

time prior to 6:00 p.m. on the day of the call. For messages left after 3:00 p.m., all “call backs” 2138

shall be attempted a minimum of one time prior to noon the next Work Day. CONTRACTOR shall 2139

make a minimum of three (3) attempts within twenty-four (24) hours of the receipt of the call. If 2140

CONTRACTOR is unable to reach the Service Recipient on the next Work Day, CONTRACTOR 2141

shall send a postcard to the Service Recipient on the second Work Day after the call was received, 2142

indicating that CONTRACTOR has attempted to return the call. 2143

13.06 Website. CONTRACTOR shall develop and maintain a website dedicated to 2144

services provided in CITY that is accessible by the public. The website shall include answers to 2145

frequently asked questions, rates for Collection Services, listing and description of Recyclable 2146

Materials and Organic Waste, Collection Service schedules and maps, and other related topics. 2147

CONTRACTOR shall arrange for CITY’S website to include an e-mail link to CONTRACTOR and 2148

a link to CONTRACTOR’S website. CONTRACTOR’S website shall provide the public the ability 2149

to e-mail complaints to CONTRACTOR and request services or service changes. 2150

CONTRACTOR’S website shall also promote reuse and recycling, and shall present graphics and 2151

statistics illustrating the City’s progress toward becoming a Zero Waste Community, resources 2152

the community can use to support Zero Waste and Sustainability efforts, other CITY 2153

environmental programs, and other materials as requested by CITY. CITY shall review and 2154

approve any changes to CONTRACTOR’S current website. 2155

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ARTICLE 14. Public Outreach Services 2156

14.01 Public Outreach Services. CONTRACTOR, at its own expense, shall prepare, 2157

submit and implement an annual (Agreement Year) Public Education and Outreach Plan that 2158

incorporates key features of CONTRACTOR’S Diversion Plan (Exhibit 9) and Education and 2159

Outreach Plan (Exhibit 10). The proposed annual plan must be submitted annually for CITY 2160

approval no later than April 30, 2018, and no later than April 30th each Agreement Year thereafter 2161

as part of CONTRACTOR’S annual report to CITY. The program must include specific steps 2162

designed to increase diversion and participation, for CITY’s residents, businesses and Public 2163

Schools, and may include billing inserts, newsletters, participation at public events, and 2164

sponsorship of Earth Day activities. Public outreach campaigns should target certain diverted 2165

materials or “problem” areas of CONTRACTOR’S Service Area where improvements can be 2166

maximized. Targets of outreach should be based on local trends and recycling patterns based on 2167

information obtained by both the City Representative and CONTRACTOR staff. CONTRACTOR 2168

shall provide space in CONTRACTOR’S public outreach materials, such as mailers, flyers and 2169

newsletters, for CITY to include announcements, community information, articles, and 2170

photographs. Public School outreach shall correspond with the school year and should target 2171

student, faculty and staff participation in the diversion of Recyclable Materials and Organic Waste. 2172

14.02 Recycling Specialist. The CITY may, at any time during the term of this 2173

Agreement, request that CONTRACTOR provide for a Recycling Specialist dedicated to providing 2174

support for recycling and sustainability programs, including performing commercial waste audits 2175

and outreach and support to commercial and multi-family accounts. If requested, the cost of this 2176

position will be funded by the Monthly Administrative Support Payment described in Section 2177

4.04.3. The Recycling Specialist may be asked to meet with key CITY staff to review performance 2178

on diversion programs. CONTRACTOR may, with approval of the City Representative, use 2179

subcontractors to perform some or all the duties normally assigned to the Recycling Specialist. 2180

The Recycling Specialist will advise appropriate personnel within a business on methods and 2181

recommendations to increase recycling and decrease solid waste, the selection of collection 2182

services and container sizes to maximize diversion, and the potential cost savings if a business 2183

takes recommended actions to increase diversion; educate and train staff and janitors on best 2184

practices for recycling, waste reduction and availability and use of in-house recycling containers; 2185

educate personnel on how to maximize diversion; and provide educational materials, posters, 2186

labels, and memos. 2187

14.03 Annual Collection Service Notice. Each Agreement Year during the term of this 2188

Agreement, CONTRACTOR shall publish and distribute separate notices to all SFD Service Units 2189

regarding the SFD Collection Service, to all MFD Service Units regarding MFD Collect Service, 2190

and to all Commercial Service Units regarding Commercial Collection Service. To the extent 2191

appropriate, based on the category of customer receiving the notice, it shall contain at a minimum: 2192

definitions of the materials to be collected, procedures for setting out the materials, collection and 2193

disposal options for unacceptable materials such as Hazardous Waste, maps of the Service Area 2194

indicating the day of the week that Collection Service will be provided, and CONTRACTOR’s 2195

customer service phone number and website address. The notice shall be provided in English 2196

and Spanish, and shall be distributed by CONTRACTOR no later than February 1st each 2197

Agreement Year. 2198

14.04 Additional Outreach Programs and Services. CONTRACTOR shall provide 2199

additional public outreach services and programs as requested by CITY at a price to be mutually 2200

agreed upon between CONTRACTOR and the City Representative and included in the Maximum 2201

Service Rates. In the event CONTRACTOR and the City Representative cannot reach a mutually 2202

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agreed upon price for the requested service or program, CITY shall have the right to procure the 2203

service of other vendors or contractors to provide the requested public outreach service. 2204

14.05 News Media Relations. When practicable, CONTRACTOR shall notify the City 2205

Representative by e-mail or phone of all requests for news media interviews related to the 2206

Collection Services program within twenty-four (24) hours of CONTRACTOR’S receipt of the 2207

request. When practicable, before responding to any inquiries involving controversial issues or 2208

any issues likely to affect participation or Service Recipient perception of services, 2209

CONTRACTOR will discuss CONTRACTOR’S proposed response with the City Representative. 2210

14.05.1 Copies of draft news releases or proposed trade journal articles 2211

related to the Collection Services program shall be submitted to CITY for prior review and approval 2212

at least five (5) Work Days in advance of release, except where CONTRACTOR is required by 2213

any law or regulation to submit materials to any regulatory agency in a shorter period of time, in 2214

which case CONTRACTOR shall submit such materials to CITY simultaneously with 2215

CONTRACTOR’S submittal to such regulatory agency. 2216

14.05.2 Copies of articles related to the Collection Services program 2217

resulting from media interviews or news releases shall be provided to CITY within five (5) Work 2218

Days after publication. 2219

ARTICLE 15. Emergency Service Provisions 2220

15.01 Emergency Services. In the event of a tornado, major storm, earthquake, fire, 2221

natural disaster, or other such event, the City Representative may grant CONTRACTOR a 2222

variance from regular routes and schedules. As soon as practicable after such event, 2223

CONTRACTOR shall advise the City Representative when it is anticipated that normal routes and 2224

schedules can be resumed. The City Representative shall make an effort through the local news 2225

media to inform the public when regular services may be resumed. The clean-up from some 2226

events may require that CONTRACTOR hire additional equipment, employ additional personnel, 2227

or work existing personnel on overtime hours to clean debris resulting from the event. 2228

CONTRACTOR shall receive additional compensation, above the normal compensation 2229

contained in this Agreement, to cover the costs of rental equipment, additional personnel, 2230

overtime hours and other documented expenses based on the rates set forth in Exhibit 1 to this 2231

Agreement provided CONTRACTOR has first secured written authorization and approval from 2232

CITY through the City Representative. 2233

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ARTICLE 16. Record Keeping & Reporting Requirements 2234

16.01 Record Keeping. 2235

16.01.1 Accounting Records. CONTRACTOR shall maintain full, complete 2236

and separate financial, statistical and accounting records, pertaining to cash, billing, and 2237

provisions of all Collection Services provided under this Agreement, prepared on an accrual basis 2238

in accordance with generally accepted accounting principles. Such records shall be subject to 2239

audit and inspection. Gross Revenues derived from provision of the Collection Services shall be 2240

recorded in the accounts of CONTRACTOR. These records shall be separate from other records 2241

maintained by CONTRACTOR for the provision of other services outside the scope of this 2242

Agreement as may be provided by CONTRACTOR. CONTRACTOR shall maintain and preserve 2243

all cash, billing and disposal records for a period of not less than five (5) fiscal years following the 2244

close of each of CONTRACTOR'S fiscal years. 2245

16.01.2 Contractor Payments to CITY. CONTRACTOR shall maintain 2246

records of all payments made to CITY for all items listed in Section 4.04. 2247

16.01.3 Tonnage Records. CONTRACTOR shall maintain records of the 2248

quantities of (i) Garbage, Recyclable Material, and Organic Waste collected, processed, 2249

composted, and disposed under the terms of this Agreement, and (ii) Recyclable Materials and 2250

Organic Waste, by material type, purchased, sold, donated or given for no compensation, and 2251

residue disposed. 2252

16.01.4 Records. CONTRACTOR shall maintain all other records 2253

reasonably related to provision of Collection Services, whether or not specified in this Article 16 2254

or elsewhere in the Agreement. 2255

16.02 Reporting Requirements. Quarterly reports shall be submitted to the City 2256

Representative no later than thirty (30) calendar days after the end of the reporting quarter on 2257

January 30th, April 30th, July 30th, and October 30th and annual reports shall be submitted to the 2258

City Representative no later than forty-five (45) days after the end of each preceding calendar 2259

year (January through December). If the due date falls on a Saturday, the report shall be due on 2260

the preceding Friday, and if the due date falls on a Sunday, the report will be due the following 2261

Monday. Quarterly and annual reports shall be submitted in hard copy, and shall be provided 2262

electronically via e-mail, or a compact disc using software acceptable to CITY. Reports shall be 2263

submitted in a format mutually agreed upon between CITY and CONTRACTOR. 2264

16.03 Quarterly Reports. Quarterly reports to CITY shall include: 2265

16.03.1 Garbage Data. The number of SFD, MFD, CITY and Commercial 2266

Service Units and the number of Garbage Bins, Carts, Debris Boxes and Compactors by size and 2267

Service Unit type. A listing of the tonnage from all Collection Services, including Bulky Waste 2268

Collection Service, collected, diverted and disposed by CONTRACTOR at the Disposal Facility 2269

for the preceding quarter sorted between SFD, MFD, Commercial and City Service Units. Any 2270

tonnages diverted and disposed from large venues and events during the reporting period shall 2271

be broken out separately. All tonnage data should be compared to the corresponding tonnage 2272

data from the prior year comparable period. 2273

16.03.2 Recycling Data. The number of gross tons collected by material 2274

type for SFD, MFD, City and Commercial Recycling Collection Service, including Recyclable 2275

Materials collected as part of Bulky Waste Collection Service, for the preceding quarter. Indicate 2276

quarterly totals and location for residue disposed. Any tonnages diverted and disposed from large 2277

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venues and events during the reporting period shall be broken out separately. All tonnage data 2278

shall be compared to the corresponding tonnage data from the prior year comparable period. 2279

16.03.3 Organic Waste Data. The number of gross tons collected for SFD, 2280

MFD, City and Commercial Organic Collection Service, including Green Waste collected as part 2281

of Bulky Collection Service, for the preceding quarter. Indicate the number of Organic Waste 2282

Bins, Carts, Debris Boxes, Compactors, and Kitchen Food Waste Pails distributed by size and 2283

Service Unit type. Indicate quarterly totals and location for residue disposed. Any tonnages 2284

diverted and disposed from large venues and events during the reporting period shall be broken 2285

out separately. All tonnage data shall be compared to the corresponding tonnage data from the 2286

prior year comparable period. 2287

16.03.4 Diversion Rate. CONTRACTOR shall provide documentation 2288

acceptable to CITY in its sole discretion stating and supporting the calendar quarter's diversion 2289

rate, as calculated in accordance with the provisions of Article 5. Any tonnages diverted and 2290

disposed from large venues and events during the reporting period shall be counted towards the 2291

calculated diversion rate. Tonnages collected as a result of street sweeping services shall not be 2292

counted towards the calculated diversion rate. 2293

16.03.5 Public Education and Information Activities. CONTRACTOR shall 2294

report on all public education and information activities undertaken during the period, including 2295

distribution of bill inserts, collection notification tags, community information and events, school 2296

visits, tours and other activities related to the provision of Collection Services. This report shall 2297

discuss the impact of these activities on Recycling and Organic Waste program participation and 2298

provide details of events and activities planned for the next period. 2299

16.03.6 AB 341 and 1826 Compliance Data. CONTRACTOR shall report 2300

the total number of Commercial and/or MFD Service Units serviced and the number of containers, 2301

container sizes and frequency of collection for Garbage, Recyclable Materials and Organic Waste 2302

for each Commercial and/or MFD Service Unit. CONTRACTOR shall also provide the following 2303

information, separately for both AB 341 and AB 1826: 2304

16.03.6.1 The total number of Commercial Service Units that fall under 2305

the AB 341/1826 thresholds, and the total number of those Commercial Service Units that are not 2306

subscribed to Recycling/Organics Collection Service. 2307

16.03.6.2 A summary of the type of follow-up outreach that was 2308

provided to those Commercial Service Units that fall under the threshold that are not subscribed 2309

to Recycling/Organics Collection Service. 2310

16.03.6.3 The total number of MFD Service Units that fall under the 2311

AB 341/1826 thresholds, and the total number of those MFD Service Units that are not subscribed 2312

to Recycling/Organics Collection Service. 2313

16.03.6.4 A summary of the type of follow-up outreach that was 2314

provided to those MFD Service Units that fall under the threshold that are not subscribed to 2315

Recycling/Organics Collection Service. 2316

16.03.7 Processing and Marketing Data. Recycling and Organic Waste 2317

processing and marketing issues or conditions occurring during the previous quarter (such as 2318

participation, setouts, contamination, etc.) and possible solutions, discussed separately for SFD, 2319

MFD, Commercial and CITY programs. 2320

16.03.8 Customer Service Data. A summary narrative of praises, 2321

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taken. Indicate type and number of Non-Collection Notices left at Service Recipient locations. A 2323

copy of the customer service log, including a summary of the type and number of complaints and 2324

their resolution. Copies of a written record of all calls related to missed pickups and responses to 2325

such calls. 2326

16.03.9 Operational Problems and Actions Taken. Indicate instances of 2327

property damage or injury (other than property damage or injury to CONTRACTOR’s property or 2328

personnel), significant changes and/or challenges in operations, and market factors. 2329

16.03.10 Customer Base Data. CONTRACTOR shall provide customer base 2330

data consisting of the number of SFD, MFD, and Commercial Service Units billed, and City 2331

Collection Services sorted by service type, container size, number of containers, and frequency 2332

of collection. 2333

16.03.11 Summary of Historical and Proposed Activities. CONTRACTOR 2334

shall provide a narrative of activities undertaken during the quarter and those planned or proposed 2335

for the upcoming quarter. 2336

16.03.12 Large Venue and Event Collection Data. CONTRACTOR shall 2337

provide all data outlined in Section 10.04.2 for each venue / event serviced during the reporting 2338

period. 2339

16.03.13 Street Sweeping Summary. A summary of the Curb Miles swept, 2340

total Curb Miles missed, total tonnage disposed, recycled or composted, and the estimated 2341

amount of water used in the street sweeping vehicles. 2342

16.03.14 Summary of Contractor Payments to CITY. CONTRACTOR shall 2343

report all payments made to CITY as specified in Section 4.04, and CONTRACTOR’S Gross 2344

Revenues delineated by SFD, MFD, Commercial, and City Collection Service for the reporting 2345

period. 2346

16.04 Annual Reports. The annual report submitted to CITY shall include all quarterly 2347

reports in Sections 16.03.1 through 16.03.13 summarized by quarter and averaged for the 2348

calendar year. For all annual reports beginning with the report for calendar year 2019, 2349

CONTRACTOR shall also include a historical comparison of the last calendar year and the 2350

average of all calendar years. Annual reports to CITY shall also include: 2351

16.04.1 Gross Revenues and Franchise Fees. 2352

16.04.1.1 A summary of the prior calendar year’s Gross Revenues 2353

broken down by SFD, MFD and Commercial Service Units. 2354

16.04.1.2 A summary of the prior calendar year’s franchise fees paid. 2355

16.04.2 Account Data. Account data for SFD, MFD, Commercial Service 2356

Units and City Service Units including the total number of accounts serviced, and the number of 2357

accounts, account names and addresses of collection locations per each service category. 2358

16.04.3 Equipment Inventory. Updated complete inventory of collection and 2359

major processing equipment including stationary, rolling stock and collection containers by type 2360

and size, and fulfilling all requirements of Section 12.09. 2361

16.04.4 Public Education Plan. Updated Public Education Plan for the new 2362

Agreement Year, in accordance with the requirements of Section 14.01. 2363

16.04.5 Container Cleanings, Replacements and Exchanges. An 2364

accounting of the number of Carts, Bins and Debris Boxes that were cleaned, replaced or 2365

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exchanged during the calendar year, and an accounting of the number of Kitchen Food Waste 2366

Pails that were delivered to SFD and MFD Service Recipients during the calendar year. 2367

16.04.6 Public Education and Information Activities. Public education and 2368

information activities undertaken during the calendar year, including distribution of newsletters, 2369

billing inserts, other notices, collection notification tags, community information and events, tours 2370

and other activities related to the provision of services. 2371

16.04.7 Donated Services. A listing of any services beyond the scope of this 2372

Agreement that were donated to CITY or Service Recipients. 2373

16.04.8 Summary of Historical and Proposed Activities. CONTRACTOR 2374

shall provide a narrative of activities undertaken during the calendar year and those planned or 2375

proposed for the upcoming calendar year. CONTRACTOR shall provide information describing if 2376

the activity was undertaken in the previous year or not and if not why it was added. For those 2377

activities that are not being continued, CONTRACTOR shall describe the reason the activity has 2378

been discontinued and the activity that is replacing it. 2379

16.05 Additional Reporting. CONTRACTOR shall furnish CITY with any additional 2380

reports as may reasonably be required, such reports to be prepared within a reasonable time 2381

following the reporting period. In addition, CONTRACTOR shall furnish to CITY information 2382

regarding CONTRACTOR’s activities under this Agreement that is needed for CITY to prepare its 2383

reports to CalRecycle. 2384

ARTICLE 17. Nondiscrimination 2385

17.01 Nondiscrimination. In the performance of all work and services under this 2386

Agreement, CONTRACTOR shall not discriminate against any person on the basis of such 2387

person’s race, sex, color, national origin, religion, marital status, age, disability or sexual 2388

orientation. CONTRACTOR shall comply with all applicable local, state and federal laws and 2389

regulations regarding nondiscrimination, including those prohibiting discrimination in employment. 2390

ARTICLE 18. Service Inquiries and Complaints 2391

18.01 CONTRACTOR’S Customer Service. CONTRACTOR shall at all times 2392

provide office staff and office hours, including personnel to answer phones and phone answering 2393

capabilities when CONTRACTOR’S office is closed, as specified in Article 13 of this Agreement. 2394

All service inquiries and complaints regarding CONTRACTOR’s services shall be directed to 2395

CONTRACTOR. A representative of CONTRACTOR shall be available to receive the complaints 2396

during normal business hours. All service complaints will be handled by CONTRACTOR in a 2397

prompt, courteous, and efficient manner. In the case of a dispute between CONTRACTOR and 2398

a Service Recipient, the matter will be reviewed and a decision made by the City Representative. 2399

18.01.1 CONTRACTOR will utilize a customer service log to maintain a 2400

record of all inquiries and complaints in a manner prescribed by CITY. 2401

18.01.2 For those complaints related to missed Collections that are received 2402

by 12:00 noon on a Work Day, CONTRACTOR will return to the Service Unit address and collect 2403

the missed Carts or Bins before leaving the Service Area for the day. For those complaints related 2404

to missed collections that are received after 12:00 noon on a Work Day, CONTRACTOR shall 2405

have until the end of the following Work Day to resolve the complaint. For those complaints 2406

related to repair or replacement of carts or bins, the appropriate Articles of this Agreement shall 2407

apply. 2408

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18.01.3 CONTRACTOR agrees that it is in the best interest of CITY that all 2409

Garbage, Recyclable Materials, and Organic Waste be collected on the scheduled collection day. 2410

Accordingly, missed Collections will normally be collected as set forth herein regardless of the 2411

reason that the collection was missed. However, in the event a Service Recipient reports missed 2412

collection service more than two (2) times in any consecutive two (2) month period the City 2413

Representative will work with CONTRACTOR to determine an appropriate resolution to that 2414

situation. In the event CONTRACTOR believes any complaint to be without merit, CONTRACTOR 2415

shall notify the City Representative by e-mail. The City Representative will investigate all disputed 2416

complaints and render a decision. 2417

ARTICLE 19. Quality of Performance of Contractor 2418

19.01 Intent. CONTRACTOR acknowledges and agrees that one of CITY’S primary 2419

goals in entering into this Agreement is to ensure that the Collection Services are of the highest 2420

caliber, that Service Recipient satisfaction remains at the highest level, that maximum diversion 2421

levels are achieved, and that materials collected are put to the highest and best use to the extent 2422

feasible. 2423

19.02 Service Supervisor. CONTRACTOR has designated a supervisor to be in charge 2424

of the Collection Service within the Service Area. At least thirty (30) calendar days prior to 2425

replacing the designated supervisor CONTRACTOR shall notify CITY in writing of the name and 2426

qualifications of the new service supervisor. CONTRACTOR shall ensure that such replacement 2427

is an individual with like qualifications and experience. The supervisor shall be available to the 2428

City Representative through the use of a mobile telephone at all times that CONTRACTOR is 2429

providing Collection Services. In the event the supervisor is unavailable due to illness or vacation, 2430

CONTRACTOR shall designate an acceptable substitute who shall be available and who has the 2431

authority to act in the same capacity as the supervisor. The service supervisor shall provide CITY 2432

with an emergency phone number where the supervisor can be reached outside of normal 2433

business hours. 2434

19.03 Liquidated Damages. The parties further acknowledge that consistent and reliable 2435

Collection Service is of utmost importance to CITY and that CITY has considered and relied on 2436

CONTRACTOR'S representations as to its quality of service commitment in awarding the 2437

Agreement to it. The parties further recognize that some quantified standards of performance are 2438

necessary and appropriate to ensure consistent and reliable service and performance. The parties 2439

further recognize that if CONTRACTOR fails to achieve these performance standards, or fails to 2440

submit required documents in a timely manner, CITY, and CITY’S residents and businesses will 2441

suffer damages and that it is and will be impractical and extremely difficult to ascertain and 2442

determine the exact amount of damages. Therefore, without prejudice to CITY’S right to treat 2443

such non-performance as an event of default under Article 24, the parties agree that the liquidated 2444

damages amount defined in this Article represent reasonable estimates of the amount of such 2445

damages considering all of the circumstances existing on the effective date of this Agreement, 2446

including the relationship of the sums to the range of harm to CITY, customers and the community 2447

as a whole that reasonably could be anticipated and the anticipation that proof of actual damages 2448

would be costly or impractical. In placing their initials at the places provided, each party specifically 2449

confirms the accuracy of the statements made above and the fact that each party has had ample 2450

opportunity to consult with legal counsel and obtain an explanation of the liquidated damage 2451

provisions at the time that the Agreement was made. 2452

CITY Initial Here ________ CONTRACTOR Initial Here ________ 2453

CONTRACTOR agrees to pay (as liquidated damages and not as penalty) the following amounts: 2454 94

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LIQUIDATED DAMAGES

Item Amount

a. Failure or neglect to respond to each complaint by the

close of the next working day.

$100 per incident per

Service Recipient.

b. Failure to wash collection vehicles at least once per

week.

$100 per incident.

c. Failure to have a vehicle operator properly licensed. $100 per incident per

day.

d. Failure to maintain office hours as required by this

Agreement.


day.

e. Failure to timely submit to CITY all payments and

reports as required under the provisions of this

Agreement.


day.

f. Failure to display CONTRACTOR’S name and

customer service phone number on collection vehicles.


day.

g. Failure to collect a missed collection by close of the next

Work Day upon notice to CONTRACTOR.


day.

h. Failure to repair or replace damaged carts or bins within

the time required by this Agreement.


day.

i. Failure to deliver or exchange carts or bins within the

time required by this Agreement.


day.

j. Failure to meet vehicle noise requirements. $100 per incident per

day.

k. Failure to maintain collection hours as required by this

Agreement.


day.

l. Failure to have CONTRACTOR personnel in proper

uniform.


day.

m. Failure to repair damage to customer property caused

by CONTRACTOR or its personnel, after notice by CITY

or the customer to CONTRACTOR.


location.

n. Failure to repair damage to CITY property caused by

CONTRACTOR or its personnel, after notice by CITY to

CONTRACTOR.

$500 per incident.

o. Failure to repair damage to City streets directly caused

by CONTRACTOR beyond normal operating wear and

tear, after notice by CITY to CONTRACTOR.

$500 per incident and

the actual reasonable

cost of repair to CITY’S

satisfaction—no cost to

CITY.

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LIQUIDATED DAMAGES

Item Amount

p. Failure to clean up spillage or litter caused by

CONTRACTOR within two (2) hours after notice by

CITY to CONTRACTOR.


location.

q. Failure to properly cover materials in collection vehicles. $500 per incident.

r. Changing residential collection days without proper

notification to the City Representative.


day.

s. Commingling material collected as Garbage with

material collected as Recyclable Materials.

$500 per incident.

t. Disposal of Recyclable Materials or Organic Waste that

has been separately collected by Contractor at a

Disposal Facility without first obtaining the required

permission of CITY.

$500 per load.

u. Failure to deliver any Collected materials to a CITY

approved Disposal Facility, or to a legally permitted

Materials Recovery Facility or Organic Waste

Processing Facility, except as otherwise expressly

provided in this Agreement.

$5,000 each failure.

v. Commingling of materials collected inside and outside

the City of Half Moon Bay in the same collection vehicle

without prior City approval.

$1,000 per incident.

w. Failure to meet the minimum annual diversion

requirements set forth in Article 5.

The current disposal

cost/ton for each ton

under the diversion

requirement.

x. Failure to maintain all Carts, Bins, and Debris Boxers in

good working order and with proper labeling in

accordance with the requirements of Section 3.07. This

also includes any instances of malfunctioning used oil

containers, which are described in Section 7.09.1.


day.

y. Failure to replace, repair, or exchange Carts, Bins, and

Debris Boxes in accordance with the requirements of

Section 3.07.


day.

19.04 Procedure for Review of Liquidated Damages. The City Representative may 2455

assess liquidated damages pursuant to this Article 19 on a monthly basis. At the end of each 2456

month during the term of this Agreement, the City Representative may issue a written notice to 2457

CONTRACTOR (“Notice of Assessment”) of the liquidated damages assessed and the basis for 2458

each assessment. 2459

19.04.1 The assessment shall become final unless, within thirty (30) 2460

calendar days of the date of the notice of assessment, CONTRACTOR provides a written request 2461

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for a meeting with the City Representative to present evidence that the assessment should not 2462

be made. 2463

19.04.2 The City Representative shall schedule a meeting between 2464

CONTRACTOR and the City Manager or the City Manager’s designee as soon as reasonably 2465

possible after timely receipt of CONTRACTOR’S request. 2466

19.04.3 The City Manager or the City Manager’s designee shall review 2467

CONTRACTOR’S evidence and render a decision sustaining or reversing the liquidated damages 2468

as soon as reasonably possible after the meeting. Written notice of the decision shall be provided 2469

to CONTRACTOR. 2470

19.04.4 In the event CONTRACTOR does not submit a written request for 2471

a meeting within thirty (30) calendar days of the date of the Notice of Assessment, the City 2472

Representative’s determination shall be final and CONTRACTOR shall submit payment to CITY 2473

no later than fifteen (15) calendar days following final determination. Alternatively, at the sole 2474

option of CITY, if monies are owed to CONTRACTOR, CITY may deduct the liquidated damages 2475

from amounts otherwise due to CONTRACTOR. 2476

19.04.5 CITY’s right to assess liquidated damages against CONTRACTOR 2477

under this Article shall be in addition to any other rights and remedies CITY may have against 2478

CONTRACTOR for its non-performance and CITY’S assessment or collection of liquidated 2479

damages shall not prevent CITY from exercising any other right or remedy, including the right to 2480

terminate this Agreement, for CONTRACTOR’S failure to perform the work and services in the 2481

manner set forth in this Agreement. 2482

19.05 Lockouts. Because it is the intent of this Agreement that CONTRACTOR shall 2483

consistently provide the highest level of services to the residents of the CITY, CONTRACTOR 2484

shall never institute a lockout of any or all of its employees unless CONTRACTOR has previously 2485

provided to CITY an alternate plan of continuing the highest level of services during the 2486

reasonably foreseeable period of such a lockout with ample fully trained substitutes for all such 2487

locked out employees, and CITY has approved such alternate plan in writing prior to such lockout 2488

being instituted by CONTRACTOR. In addition, CONTRACTOR shall fully defend, indemnify and 2489

hold harmless CITY against anything whatsoever related to any such lockout to the extent and as 2490

provided in Article 23 hereof, including but not limited to any claims, proceedings, or suits against 2491

CITY relating to any such lockout. Compliance with this Section shall in no way prevent the 2492

imposition of liquidated damages pursuant to Sections 19.03 and 19.04 hereof if CONTRACTOR 2493

fails to meet the standards or violates any provision as set forth in Section 19.03 a. through y. 2494

hereof. 2495

ARTICLE 20. Billing Audit and Performance Reviews 2496

20.01 Billing Audit and Performance Reviews 2497

20.01.1 Selection and Cost. CITY may conduct billing audit and 2498

performance reviews (“reviews”) of CONTRACTOR’S performance during the term of this 2499

Agreement. The reviews will be performed by a qualified firm under contract to CITY. CITY shall 2500

have the final responsibility for the selection of the firm but may seek and accept comments and 2501

recommendations from CONTRACTOR. CITY may conduct two (2) reviews during the base 10-2502

year term of this Agreement, and one (1) additional review during the potential extension period 2503

of up to five years. For each review, CONTRACTOR will be responsible for a maximum cost of 2504

Thirty Thousand Dollars ($30,000). This amount will be submitted to the CITY in advance of 2505

each review, and this amount may be escalated annually each April 1st by the same percentage 2506 97

FRANCHISE AGREEMENT

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as the annual average percentage change in the CPI index, subject to the terms and conditions 2507

set forth in Section 4.02.2. 2508

20.01.2 Purpose. The reviews shall be designed to verify that customer 2509

billing rates have been properly calculated and they correspond to the level of service received 2510

by the customer, verify that Franchise Fees, and other fees required under this Agreement have 2511

been properly calculated and paid to CITY, verify CONTRACTOR’S compliance with the reporting 2512

requirements and performance standards of the Collection Service Agreement, and verify the 2513

diversion percentages reported by CONTRACTOR. CITY (or its designated consultant) may 2514

utilize a variety of methods in the execution of the performance review and billing audit, including 2515

analysis of relevant documents, on-site and field observations, and interviews. CITY (or its 2516

designated consultant) will review and document the items in the Agreement that require 2517

CONTRACTOR to meet specific performance standards, submit information or reports, perform 2518

additional services, or document operating procedures, that can be objectively evaluated. This 2519

information will be formatted in a “compliance checklist” with supporting documentation and 2520

findings tracked for each of the identified items. The review will specifically include a determination 2521

of CONTRACTOR’s compliance with the diversion requirements of Article 5, and the public 2522

outreach and education requirements of Article 14. CITY (or its designated consultant) may review 2523

the customer service functions and structure utilized by CONTRACTOR. This may include 2524

CONTRACTOR’s protocol for addressing customer complaints and service interruption 2525

procedures. Complaint logs may be reviewed, along with procedures and systems for tracking 2526

and addressing complaints. On-site and field observations by CITY (or its designated consultant) 2527

may include, but are not necessarily limited to: 2528

20.01.2.1 Interviews and discussions with Contractor’s administration 2529

and management personnel; 2530

20.01.2.2 Review and observation of Contractor’s customer service 2531

functions and structure; 2532

20.01.2.3 Review of public education and outreach materials; 2533

20.01.2.4 Interviews and discussions with Contractor’s financial and 2534

accounting personnel; 2535

20.01.2.5 Interviews with route dispatchers, field supervisors and 2536

managers; 2537

20.01.2.6 Interviews with route drivers; 2538

20.01.2.7 Interviews with vehicle maintenance staff and observation 2539

of maintenance practices; and 2540

20.01.2.8 Review of on-route collection services, including 2541

observation of driver performance and collection productivity and visual inspection of residential 2542

routes before and after collection to evaluate cart placement and cleanliness of streets. 2543

20.01.3 CONTRACTOR’S Cooperation. CONTRACTOR shall cooperate 2544

fully with the review and provide all requested data, including operational data, financial data and 2545

other data reasonably requested by CITY within thirty (30) Work Days. 2546

20.01.4 Additional Billing Audit and Performance Review. In the event that 2547

the Billing Audit and Performance Review concludes that CONTRACTOR is not in compliance 2548

with all terms and conditions of this Agreement and such non-compliance is material, CITY may 2549

conduct an Additional Billing Audit and Performance Review to ensure that CONTRACTOR has 2550

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FRANCHISE AGREEMENT

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cured any such area of non-compliance. CONTRACTOR shall be responsible for the cost of any 2551

such Additional Billing Audit and Performance Review, subject to the maximum in Section 2552

20.01.1. 2553

20.02 City Requested Program Review. CITY reserves the right to require 2554

CONTRACTOR to periodically conduct reviews of the SFD and MFD and Commercial Garbage, 2555

Recyclable Materials, and Organic Waste collection programs, provided that such reviews are 2556

reasonable and can be accomplished at no additional cost to CONTRACTOR and without 2557

interfering with CONTRACTOR’s operations. Such reviews could assess one or more of the 2558

following performance indicators: average volume of recyclable materials per setout per 2559

customer, average volume of green waste and/or food scraps per setout per customer, 2560

participation level, contamination levels, etc. Prior to the program evaluation review, CITY and 2561

CONTRACTOR shall meet and discuss the purpose of the review and agree on the method, 2562

scope, and data to be provided by CONTRACTOR. 2563

20.03 Cooperation with Other Program Reviews. If CITY wants to collect program data, 2564

perform field work, conduct route audits to investigate customer participation levels and setout 2565

volumes and/or evaluate and monitor program results related to Garbage, Recyclable Materials 2566

and Organic Waste collected in CITY by CONTRACTOR, CONTRACTOR shall cooperate with 2567

CITY or its agent(s) as reasonably requested by CITY, provided that such cooperation can be 2568

accomplished at no additional cost to CONTRACTOR and without interfering with 2569

CONTRACTOR’s operations. 2570

ARTICLE 21. Performance Bond 2571

21.01 Performance Bond. A performance bond must be furnished by CONTRACTOR 2572

within fifteen (15) calendar days of notification to CONTRACTOR that the Agreement has been 2573

executed. CONTRACTOR shall furnish to CITY, and keep current, a performance bond in a form 2574

with language that is reasonably acceptable to CITY, for the faithful performance of this 2575

Agreement and all obligations arising hereunder in an amount of One Million Dollars 2576

($1,000,000). After April 1, 2021, and annually thereafter, CONTRACTOR may request in writing 2577

that the CITY allow the performance bond to be reduced to fifteen percent (15%) of the 2578

CONTRACTOR’s prior annual Gross Revenues. The City shall, at the sole option of the City, 2579

respond to the request in writing within forty-five (45) days of receipt of the written request. Nothing 2580

in this Agreement shall require that the CITY approve the request of the CONTRACTOR, nor shall 2581

the CITY have any obligation to provide CONTRACTOR with its reasoning for approving or 2582

denying the request. 2583

21.02 Renewal. Beginning April 1, 2018, and each April 1st thereafter, CONTRACTOR 2584

shall have the performance bond renewed annually and be executed by a surety company that is 2585

an admitted surety company licensed to do business in the State of California and has an "A:VII" 2586

or better rating by A. M. Best or Standard and Poors, or that is otherwise acceptable to CITY. 2587

21.03 Letter of Credit. As an alternative to the performance bond required by Section 2588

21.01, at CITY’S option, CONTRACTOR may deposit with CITY an irrevocable letter of credit in 2589

an amount as set forth in Section 21.01. If allowed, the letter of credit must be issued by an FDIC 2590

insured banking institution chartered to do business in the State of California, in CITY’S name, 2591

and be callable at the discretion of CITY. Nothing in this Article shall, in any way, obligate CITY 2592

to accept a letter of credit in lieu of the performance bond. 2593

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ARTICLE 22. Insurance 2594

22.01 Insurance Policies. CONTRACTOR shall secure and maintain throughout the term 2595

of this Agreement insurance against claims for injuries to persons or damages to property, which 2596

may arise from or in connection with CONTRACTOR’S performance of work or services under 2597

this Agreement. CONTRACTOR’S performance of work or services shall include performance by 2598

CONTRACTOR’S employees, agents, representatives and subcontractors. 2599

22.02 Minimum Scope of Insurance. Insurance coverage shall be at least this broad: 2600

22.02.1.1 Commercial General Liability: Insurance Services Office 2601

(ISO) Occurrence Form CG 0001 or its equivalent, or, if approved by CITY, Claims Made Form 2602

No. CG0 0002. Automobile Liability: Insurance Services Office Form No. CA 0001, or its 2603

equivalent, code 1 “any auto”. 2604

22.02.2 Workers’ Compensation Insurance as required by the State of 2605

California and Employers Liability Insurance. 2606

22.02.3 Hazardous Waste and Environmental Impairment Liability 2607

Insurance. 2608

22.03 Minimum Limits of Insurance. CONTRACTOR shall maintain insurance limits no 2609

less than: 2610

22.03.1 Commercial General Liability: Five Million Dollars ($5,000,000) 2611

combined single limit per occurrence, Ten Million Dollars ($10,000,000) annual aggregate; 2612

including products and completed operations coverage. 2613

22.03.2 Automobile Liability: Three Million Dollars ($3,000,000) combined 2614

single limit per accident for bodily injury and property damage. 2615

22.03.3 Workers’ Compensation and Employers Liability: Workers’ 2616

Compensation insurance as required by the State of California, with statutory limits, and 2617

Employers Liability insurance with limits of One Million Dollars ($1,000,000) per accident. 2618

22.03.4 Hazardous Waste and Environmental Impairment Liability: Ten 2619

Million Dollars ($10,000,000) per occurrence, Twenty Million Dollars ($20,000,000) policy 2620

aggregate covering liability arising from the release of waste materials and/or irritants, 2621

contaminants or pollutants. Such coverage shall, if commercially available without involvement of 2622

CITY, automatically broaden in its form of coverage to include legislated changes in the definition 2623

of waste material and/or irritants, contaminants or pollutants. 2624

22.04 Deductibles and Self-Insured Retention. Any deductibles or self-insured retention 2625

must be declared to, and approved by, CITY. CITY shall not withhold approval of any Deductible 2626

or Self-Insured Retention amounts where CONTRACTOR can demonstrate a successful history 2627

of adequately funding such Deductibles or Self-Insured Retention amounts on a regular basis. 2628

22.05 Endorsements. The liability policies are to contain, or be endorsed to contain, the 2629

following provisions: 2630

22.05.1 CITY, its officers, employees, agents and volunteers are to be 2631

covered as additional insureds with respect to liability arising out of automobiles owned, leased, 2632

hired or borrowed by or on behalf of CONTRACTOR; products and completed operations of 2633

CONTRACTOR; liability arising out of work or operations performed by or on behalf of 2634

CONTRACTOR, including material parts or equipment furnished in connection with such work or 2635

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FRANCHISE AGREEMENT

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operations; and with respect to Hazardous Waste, Pollution and/or Environmental Impairment 2636

Liability. 2637

22.05.2 CONTRACTOR’S insurance coverage (except for Workers’ 2638

Compensation) shall be primary insurance as respects CITY, its officers, officials, employees, 2639

agents and volunteers. Any insurance or self-insurance maintained by CITY, its officers, officials, 2640

employees, agents or volunteers shall be excess of CONTRACTOR’S insurance and shall not 2641

contribute with it. 2642

22.05.3 CONTRACTOR’S insurance shall apply separately to each insured 2643

against whom claim is made or suit is brought, except with respect to the limits of the insurer’s 2644

liability, and except for Workers’ Compensation cover. 2645

22.05.4 The Automobile Liability policy shall be endorsed to delete the 2646

Pollution and/or the Asbestos exclusion, or documentation shall be provided that CONTRACTOR 2647

carries environmental pollution liability coverage for Solid Waste transported by CONTRACTOR. 2648

The Automobile Liability policy shall also be endorsed to add the Motor Carrier act endorsement 2649

(MCS-90) TL 1005, TL 1007 and /or other endorsements required by federal or state authorities. 2650

22.06 Waiver of Subrogation CONTRACTOR hereby agrees to waive subrogation 2651

against CITY which any insurer of CONTRACTOR may acquire from CONTRACTOR by virtue of 2652

the payment of any loss. CONTRACTOR agrees to obtain any endorsement that may be 2653

necessary to effect this waiver of subrogation. The Workers’ Compensation policy shall be 2654

endorsed with a waiver of subrogation in favor of CITY for all work performed by CONTRACTOR, 2655

its employees, agents and subcontractors. 2656

22.07 Cancellation. Each insurance policy required by this clause shall be occurrence-2657

based or an alternate form as approved by CITY and endorsed to state that coverage shall not 2658

be suspended, voided, cancelled by either party, reduced in coverage or limits except after thirty 2659

(30) days’ prior written notice by certified mail, return receipt requested, has been given to CITY. 2660

Any failure to comply with reporting provisions of the policies shall not affect 2661

CONTRACTOR’S obligations to CITY, its officers, officials, employees, agents or volunteers. 2662

22.08 Claims Made Coverage. If General Liability or Hazardous Waste and 2663

Environmental Impairment Liability coverage is written on a claims-made form: 2664

1. The “Retro Date” must be shown, and must be before the date of the contract 2665

or the beginning of contract work. 2666

2. Insurance must be maintained and evidence of insurance must be provided for 2667

at least five (5) years after completion of the contract of work 2668

3. If coverage is canceled or non-renewed, and not replaced with another claims-2669

made policy form with a “Retro Date” prior to the contract effective date, 2670

CONTRACTOR must purchase “extended reporting” coverage for a minimum 2671

of five (5) years after completion of contract work. 2672

4. A copy of the claims reporting requirements must be submitted to CITY for 2673

review. 2674

22.09 Acceptability of Insurers. Insurance is to be placed with insurers admitted to 2675

transact business in California with a current A.M. Best’s rating of no less than A:VII. If pollution 2676

and/or Environmental Impairment and/or errors and omission coverage are not available from an 2677

admitted insurer, the coverage may be written with CITY’s permission, by a non-admitted 2678

insurance company. A non-admitted company should have an A.M. Best’s rating of A:X or higher 2679 101

FRANCHISE AGREEMENT

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22.10 Verification of Coverage. CONTRACTOR shall furnish CITY with original 2680

certificates and amendatory endorsements effecting coverage required by this clause. All 2681

certificates and endorsements are to be received and approved by CITY before work commences. 2682

However, failure to obtain the required documents prior to the work beginning shall not waive 2683

CONTRACTOR’s obligation to provide them. CITY reserves the right to require complete, certified 2684

copies of all required insurance policies, including endorsements required by these specifications, 2685

at any time. 2686

22.11 Subcontractors. CONTRACTOR shall include all subcontractors as insureds 2687

under its policies or require and verify that all subcontractors maintain insurance meeting all the 2688

requirements of this contract. 2689

22.11.1 Proof of insurance shall be mailed to the following address or any 2690

subsequent address as may be directed in writing by CITY. 2691

John Doughty, Public Works Director (or His Designee) 2692

Half Moon Bay City Hall 2693

501 Main Street 2694

Half Moon Bay, CA 94019 2695

2696

22.12 Modification of Insurance Requirements. The insurance requirements provided in 2697

this Agreement may be modified or waived by CITY, in writing, upon the request of 2698

CONTRACTOR, if CITY determines such modification or waiver is in the best interest of CITY 2699

considering all relevant factors, including exposure to CITY. 2700

ARTICLE 23. Indemnification 2701

23.01 Indemnification of CITY. CONTRACTOR shall defend, with counsel reasonably 2702

acceptable to CITY, indemnify and hold harmless, to the fullest extent allowed by law, CITY, its 2703

officers, officials, employees, volunteers, agents and assignees (collectively, “Indemnitees”), from 2704

and against any and all loss, liability, penalties, forfeitures, claims, demands, actions, proceedings 2705

or suits, in law or in equity, of every kind and description, (including, but not limited to, injury to 2706

and death of any person and damage to property, or for contribution or indemnity claimed by third 2707

parties) (collectively, “Loss”) arising or resulting from: (i) the operation of CONTRACTOR, its 2708

agents, employees, and/or subcontractors, in exercising the privileges granted to it by this 2709

Agreement; (ii) the failure of CONTRACTOR, its agents, employees, and/or subcontractors to 2710

comply in all respects with the provisions and requirements of this Agreement, applicable laws, 2711

ordinances and regulations, and/or applicable permits and licenses; and (iii) the acts of 2712

CONTRACTOR, its agents, employees, and/or subcontractors in performing services under this 2713

Agreement for which strict liability is imposed by law. The foregoing indemnity shall apply 2714

regardless of whether such Loss is also caused in part by any of the Indemnitees’ negligence. 2715

23.02 The Losses indemnifiable under the foregoing indemnity may include, but are not 2716

limited to, Losses arising out of or resulting from the following: 2717

23.02.1 Personal injury (including, but not limited to, bodily injury, emotional 2718

injury or distress, sickness, or disease) or death to persons, including, but not limited to, any 2719

employees or agents of CONTRACTOR, CITY, or any subcontractor, or damage to property of 2720

anyone, caused or alleged to be caused in whole or in part by any negligent act or omission of 2721

CONTRACTOR, or anyone directly or indirectly employed by CONTRACTOR, or anyone for 2722

whose acts CONTRACTOR may be liable; 2723

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FRANCHISE AGREEMENT

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23.02.2 Penalties threatened, sought, or imposed on or against CITY by 2724

reason of the violation by CONTRACTOR of any law, order, citation, rule, regulation, standard, 2725

ordinance, or statute; 2726

23.02.3 Alleged infringement of any intellectual property rights which may 2727

be brought arising out of CONTRACTOR's work; 2728

23.02.4 Claims and liens for labor performed or materials used or furnished 2729

to be used on the job by CONTRACTOR, including all incidental or consequential damages from 2730

such claims or liens; 2731

23.02.5 CONTRACTOR's failure to fulfill any of the covenants set forth in 2732

the Agreement; 2733

23.02.6 Failure of CONTRACTOR to comply with the provisions of the 2734

Agreement relating to insurance; and, 2735

23.02.7 Any violation or infraction by CONTRACTOR of any law, order, 2736

citation, rule, regulation, standard, ordinance, or statute in any way relating to the occupational, 2737

health, or safety of employees. 2738

The indemnities set forth in this Section shall not be limited by the insurance requirements set 2739 forth in the Agreement. CONTRACTOR's indemnification of Indemnitees will not include 2740 indemnification for Losses which arise as the result of the active negligence of Indemnitees, or 2741 the sole negligence or willful misconduct of Indemnitees. 2742

23.03 CONTRACTOR’s obligation to defend, hold harmless, and indemnify shall not be 2743

excused because of CONTRACTOR’s inability to evaluate liability or because CONTRACTOR 2744

evaluates liability and determines that CONTRACTOR is not liable to the claimant. 2745

CONTRACTOR must respond within thirty (30) days to the tender of a claim for defense and 2746

indemnity by CITY, unless this time has been extended by CITY. If CONTRACTOR fails to accept 2747

or reject a tender of defense and indemnity within thirty (30) days, in addition to any other remedy 2748

authorized by law, CITY may retain so much of the money due CONTRACTOR by virtue of this 2749

Agreement as shall reasonably be considered necessary by CITY, to cover all anticipated costs 2750

of the claim until final disposition has been made on the claim or suit for damages, or until 2751

CONTRACTOR accepts or rejects the tender of defense, whichever occurs first. With respect to 2752

third party claims against CONTRACTOR indemnifiable under Section 23.01, CONTRACTOR 2753

waives any and all rights of any type to express or implied indemnity against the Indemnitees. 2754

23.04 Hazardous Substances Indemnification. The CONTRACTOR shall indemnify, 2755

defend with counsel reasonably acceptable to the CITY, and hold harmless the Indemnitees from 2756

and against all claims, damages (including but not limited to special, consequential, natural 2757

resources and punitive damages), injuries, hazardous materials response, remediation and 2758

removal costs, losses, demands, liens, liabilities, causes of action, suits, legal or administrative 2759

proceedings, interest, fines, charges, penalties, attorney’s fees for the adverse party and 2760

expenses (including but not limited to attorney’s and expert witness fees and costs incurred in 2761

connection with defending against any of the foregoing or enforcing this indemnity) of any kind 2762

whatsoever paid, incurred or suffered by, or asserted against CITY or its officers, officials, 2763

employees, agents, assigns, or successors (collectively, “Claims”) arising from or attributable to 2764

any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, 2765

response, closure or other plan (regardless of whether undertaken due to governmental action) 2766

concerning any Hazardous Waste released, threatened to be released, or spilled by 2767

CONTRACTOR under this Agreement, or disposed of by CONTRACTOR under this Agreement 2768

at any facility owned by CONTRACTOR or any of its affiliates. The foregoing indemnity is 2769 103

FRANCHISE AGREEMENT

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intended to operate as an agreement pursuant to Section 107(e) of CERCLA, 42 U.S.C. Section 2770

9607(c) and California Health and Safety Code Section 25364, to defend, hold harmless and 2771

indemnify the CITY from liability. 2772

23.05 CalRecycle Diversion Goals. Notwithstanding any Liquidated Damages as may be 2773

assessed by CITY under Article 19 for CONTRACTOR’S failure to meet its Diversion 2774

Requirements as specified in Article 5, CONTRACTOR agrees to indemnify, hold harmless, and 2775

defend CITY, with counsel selected by CONTRACTOR and reasonably acceptable to CITY, from 2776

and against all fines or penalties imposed by the California Department of Resources Recycling 2777

and Recovery (“CalRecycle”) due to CITY’s failure to meet the mandated diversion goals specified 2778

in California Public Resources Code Section 41780 (and as may be as amended from time to 2779

time) with respect to the materials Collected by CONTRACTOR, if and to the extent the failure to 2780

meet such goals results from the failure of CONTRACTOR to perform its obligations under this 2781

Agreement. 2782

23.06 Proposition 218 Indemnification. CONTRACTOR shall defend, with counsel 2783

reasonably acceptable to the CITY, indemnify and hold harmless CITY from and against all 2784

claims, actual damages (including, but not limited to, special and consequential damages), natural 2785

resources damages, punitive damages, injuries, costs, response, remediation and removal costs, 2786

losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative 2787

proceedings, interest, fines, charges, penalties and expenses (including, but not limited to, 2788

reasonable attorney’s fees and expert witness fees and costs) (collectively, “Damages”) arising 2789

out of or resulting from third-party claims alleging that CITY’s rate-setting process violated 2790

Proposition 218, but only if and to the extent such claims (i) allege that CONTRACTOR’S direct 2791

operational cost of providing Collection Services under this Agreement (as distinct from any fees, 2792

costs or similar expenses payable to CITY or third parties hereunder) constituted a violation of 2793

Proposition 218, and (ii) result from CONTRACTOR’s provision of materially incorrect information 2794

to CITY, and consistent with California Public Resources Code Section 40059.2. 2795

23.06.1 CITY shall fully cooperate with CONTRACTOR at no cost or 2796

expenses to CONTRACTOR in defending such alleged violations. 2797

23.06.2 CITY shall indemnify and hold CONTRACTOR harmless from and 2798

against any and all Damages to the extent those Damages arise out of or result from a 2799

determination or third-party-claim that the violation of Proposition 218 resulted from fees, costs or 2800

similar expenses that are payable to CITY or third parties hereunder (as distinct from the direct 2801

operational cost of providing Collection Services) and are included in rates or any rate increase 2802

hereunder. 2803

23.07 Consideration. It is specifically understood and agreed that the consideration 2804

inuring to CONTRACTOR for the execution of this Agreement consists of the promises, payments, 2805

covenants, rights and responsibilities contained in this Agreement. 2806

23.08 Obligation. The execution of this Agreement by CONTRACTOR shall obligate 2807

CONTRACTOR to comply with the foregoing indemnification provisions; however, the collateral 2808

obligation of providing insurance must also be fully complied with as set forth in Article 22 above. 2809

23.09 Damage by CONTRACTOR. If CONTRACTOR’S employees or subcontractors 2810

cause any damage or loss to CITY property, including but not limited to CITY streets or curbs, 2811

other than as a result of ordinary wear and tear, then CONTRACTOR shall repair such property 2812

to the reasonable satisfaction of CITY, at CONTRACTOR’s sole cost and expense. If 2813

CONTRACTOR fails to do so within a reasonable period after CITY notifies CONTRACTOR of 2814

the damage or loss, then CITY may affect the repair, and CONTRACTOR shall reimburse CITY 2815

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for CITY’S reasonable cost of repairing such damage or loss. Such reimbursement is not in 2816

derogation of any right of CITY to be indemnified by CONTRACTOR for any such damage or loss. 2817

ARTICLE 24. Default of Agreement 2818

24.01 Termination. CITY may terminate this Agreement by giving CONTRACTOR thirty 2819

(30) calendar days advance written notice, to be served as provided in Article 41, upon the 2820

happening of any one of the following events. The termination right in this Section is in addition 2821

to the termination rights provided for elsewhere in this Article 24. 2822

24.01.1 CONTRACTOR takes the benefit of any present or future 2823

insolvency statute, or makes a general assignment for the benefit of creditors, or files a voluntary 2824

petition in bankruptcy (court) or a petition or answer seeking an arrangement for its reorganization 2825

or the readjustment of its indebtedness under the Federal bankruptcy laws or under any other law 2826

or statute of the United States or any state thereof, or consents to the appointment of a receiver, 2827

trustee or liquidator of all or substantially all of its property; or 2828

24.01.2 By order or decree of a Court, CONTRACTOR is adjudged bankrupt 2829

or an order has been made approving a petition filed by any of its creditors or by any of the 2830

stockholders of CONTRACTOR, seeking its reorganization or the readjustment of its 2831

indebtedness under the Federal bankruptcy laws or under any law or statute of the United States 2832

or of any state thereof, and such judgment or order is not stayed or vacated within sixty (60) 2833

calendar days after the entry thereof; or 2834

24.01.3 By, or pursuant to, or under the authority of any legislative act, 2835

resolution or rule or any order or decree of any Court or governmental board, agency or officer 2836

having jurisdiction, a receiver, trustee or liquidator takes possession or control of all or 2837

substantially all of the property of CONTRACTOR, and such possession or control continues in 2838

effect for a period of sixty (60) calendar days; or 2839

24.01.4 CONTRACTOR defaults, by failing or refusing to pay in a timely 2840

manner the liquidated damages or other monies due CITY and said default is not cured within 2841

thirty (30) calendar days of receipt of written notice by CITY to do so; or 2842

24.01.5 CONTRACTOR defaults, by failing or refusing to perform or 2843

observe its obligations under this Agreement, and said default is not cured within thirty (30) 2844

calendar days of receipt of written notice by CITY to do so. If by reason of the nature of such 2845

default, the same cannot be remedied within thirty (30) calendar days following receipt by 2846

CONTRACTOR of written demand from CITY to do so, then the cure period shall be extended for 2847

such additional period as is reasonably required to cure the default, provided that CONTRACTOR 2848

commences the remedy of such default within said thirty (30) calendar days following such written 2849

notice, and having so commenced thereafter continues with diligence the curing thereof. In any 2850

dispute concerning failure to commence remedying a default or diligence in pursuing a cure, 2851

CONTRACTOR shall have the burden of proof to demonstrate (a) that the default cannot be cured 2852

within thirty (30) calendar days, and (b) that it is proceeding with diligence to cure said default, 2853

and such default will be cured within a reasonable period of time. 2854

24.02 Temporary Possession of CONTRACTOR’s Equipment. Notwithstanding anything 2855

contained herein to the contrary, if CONTRACTOR fails to provide Collection Services for a period 2856

of three (3) consecutive Work Days, on the fourth (4th) Work Day CITY may take possession of 2857

CONTRACTOR'S equipment, customer account and service records, and other property used in 2858

providing Collection Services under this Agreement in order to provide interim Collection Services 2859

until such time as CONTRACTOR is again able to perform Collection Services pursuant to this 2860 105

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Agreement; provided, however, if CONTRACTOR is unable for any reason or cause to resume 2861

performance of Collection Service at the end of thirty (30) consecutive calendar days of 2862

nonperformance of Collection Services, then this Agreement may be terminated by CITY upon 2863

written notice to CONTRACTOR, and CITY may retain possession of such equipment, records 2864

and other property used in providing Collection Services on an interim basis until CITY has made 2865

other suitable arrangements for the provision of Collection Services, which may include award of 2866

an agreement to another contractor. Notwithstanding any other provision in this Agreement to 2867

the contrary, CITY’s right to take interim possession of, or make use of, any of CONTRACTOR’s 2868

equipment, including, without limitation, vehicles, Carts, Bins and containers, shall not allow CITY 2869

to assign ownership of such vehicles, Carts, Bins and containers to another contractor, and CITY 2870

acknowledges that CONTRACTOR’S lender has a security interest in such equipment. In 2871

addition, notwithstanding any other provision of this Agreement to the contrary, CITY’s right to 2872

take possession of such equipment, records and other property shall be limited to one hundred 2873

eighty (180) days after the effective date of termination of this Agreement. After such time, such 2874

assets shall be returned to CONTRACTOR or, if the parties mutually agree, CITY shall pay a 2875

reasonable monthly rent to CONTRACTOR for CITY’s use of the equipment. 2876

24.03 Diversion Not Default. Notwithstanding the foregoing or any other provision of this 2877

Agreement to the contrary, CONTRACTOR’s failure to meet the diversion requirements set forth 2878

in Article 5 shall not be a default entitling CITY to terminate this Agreement (it being understood 2879

that CITY shall have the remedies set forth in Article 2 (term extension) and Article 19 (liquidated 2880

damages) with respect to any such failure). 2881

24.03.1 In the event that the Agreement is terminated, CONTRACTOR shall 2882

furnish CITY with immediate access to all of its business records related to its customer and billing 2883

accounts for collection services. 2884

24.04 Violations. Notwithstanding the foregoing and as supplemental and additional 2885

means of termination of this Agreement under this Article, in the event that CONTRACTOR'S 2886

record of performance shows that CONTRACTOR has frequently, regularly or repetitively 2887

defaulted in providing Collection Services, and after written default notices from CITY has not 2888

timely cured such defaults within the applicable cure periods set forth in Section 24.01.5, CITY in 2889

its sole discretion may determine that CONTRACTOR is a "habitual violator", in which case 2890

CONTRACTOR shall be deemed to have waived the right to any further notice or grace period to 2891

correct any subsequent default. CITY shall thereupon issue CONTRACTOR a final warning citing 2892

the circumstances for such determination, and any single default by CONTRACTOR of whatever 2893

nature, subsequent to CONTRACTOR’s receipt of such warning, shall be grounds for immediate 2894

termination of the Agreement. In the event of any such subsequent default, CITY may terminate 2895

this Agreement upon giving of final written notice to CONTRACTOR, such termination to be 2896

effective upon the date specified in CITY'S written notice to CONTRACTOR, and all contractual 2897

fees due hereunder plus any and all charges and interest shall be payable to said date, and 2898

CONTRACTOR shall have no further rights hereunder. Immediately upon the specified date in 2899

such final notice CONTRACTOR shall proceed to cease any further performance under this 2900

Agreement. 2901

24.05 Effective Date. In the event of the aforesaid events specified above, and except 2902

as otherwise provided in said subsections, termination shall be effective upon the date specified 2903

in CITY'S written notice to CONTRACTOR and upon said date this Agreement shall be deemed 2904

immediately terminated, and CITY shall have the right to call the performance bond and shall be 2905

free to negotiate with other contractors for the operation of the herein specified services. 2906

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24.06 Immediate Termination. CITY may terminate this Agreement immediately upon 2907

written notice to CONTRACTOR in the event CONTRACTOR fails to provide and maintain the 2908

performance bond as required by this Agreement, or if CONTRACTOR fails to obtain or maintain 2909

insurance policies endorsements as required by this Agreement, or if CONTRACTOR offers or 2910

gives any gift to any elected official, appointed officer or employee of CITY, or any relative or 2911

spouse of such elected official, appointed officer or employee. For purposes of this Section, “gift” 2912

shall be defined as set forth in California Government Code Section 82028 and the regulations of 2913

the Fair Political Practices Commission at 2 C.C.R Sec 18940 et seq. as may be amended from 2914

time to time. 2915

24.07 Termination Cumulative. CITY’S right to terminate this Agreement is cumulative 2916

to any other rights and remedies provided by law or by this Agreement. 2917

24.08 Force Majeure. Notwithstanding any other provision of this Agreement to the 2918

contrary, a party shall be excused from performing its obligations hereunder in the event it is 2919

prevented from so performing by reason of any acts of God, such as landslides, lightning, fires, 2920

storms, floods, pestilence, freezing, and earthquakes; explosions, power outages, sabotage, civil 2921

disturbances, acts of a public enemy, wars, blockades, riots, or other industrial disturbances, 2922

eminent domain, condemnation or other taking, or other events of a similar nature, not caused or 2923

maintained by such party, which event is not reasonably within the control of the party claiming 2924

the excuse from its obligations due to such event, to the extent such event has a significant and 2925

material adverse effect on the ability of the party to perform its obligations thereunder. Force 2926

Majeure shall not include fuel shortages, strikes, work stoppage or slowdown, sickout, lockout, 2927

picketing or other concerted job action conducted by CONTRACTOR’S employees or directed at 2928

CONTRACTOR or any of its subcontractors. Force Majeure shall include a Change in Law(s) to 2929

the extent such Change in Law(s) prohibits a party's performance hereunder. Notwithstanding the 2930

foregoing, (i) no failure of performance by any subcontractor of CONTRACTOR shall be a Force 2931

Majeure unless such failure was itself caused by a Force Majeure; (ii) except as provided herein, 2932

no event which merely increases CONTRACTOR'S cost of performance shall be a Force Majeure; 2933

and (iii) no event, the effects of which could have been prevented by reasonable precautions, 2934

including compliance with agreements and applicable laws, shall be a Force Majeure. 2935

24.09 Specified Default. If CONTRACTOR commits a Specified Default (as defined 2936

below), then CONTRACTOR shall not be eligible for an extension of the term of this Agreement 2937

pursuant to Section 2.02. For purposes of this Section 24.09, a “Specified Default” means (i) any 2938

of the defaults specified in items (a) through (g) below, which is not cured within thirty (30) 2939

calendar days of CONTRACTOR’s receipt of a written demand by CITY to do so, which demand 2940

specifies that the default, if uncured, will result in a Specified Default under this Section 24.09, or 2941

(ii) any of the defaults specified in items (h) through (j) below are deemed non-curable and will 2942

result in CONTRACTOR not being eligible for an extension of the term of the Agreement pursuant 2943

to Section 2.02. 2944

(a) Failure to submit a quarterly report or an annual report by the date specified in 2945

Section 16.02. 2946

(b) Failure to pay the Franchise Fee, or other CITY fees required to be paid under 2947

Section 4.03, by the date specified in Section 4.03. 2948

(c) Failure to pay CITY (or CITY’s consultant, if so requested by CITY) for the cost of a 2949

performance review required to be paid by CONTRACTOR under Section 20.01.1 (and subject 2950

to the maximum in such section) within thirty (30) days of receipt of an invoice therefor from CITY 2951

or CITY’s consultant, containing reasonable detail about charges incurred and time spent on the 2952

review. 2953 107

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(d) Failure to replace carts, bins and trucks in accordance with the replacement schedule 2954

set forth in Exhibit 11, other than a failure resulting from failure by a manufacturer or supplier to 2955

deliver equipment on the schedule agreed with CONTRACTOR. 2956

(e) Failure to repair damage caused by CONTRACTOR to customer property or CITY 2957

streets, other than as a result of ordinary wear and tear, within ninety (90) days of written notice 2958

to CONTRACTOR by CITY. 2959

(f) More than one (1) documented incident in any calendar year of CONTRACTOR 2960

failing to comply with applicable federal, state or local clean-air standards in the performance of 2961

this Agreement. 2962

(g) Failure to provide a Recycling Specialist position (if requested by the CITY) having 2963

the duties set forth in Section 14.02. 2964

(h) Receipt at City Hall of more than ten (10) complaints from different customers in any 2965

calendar quarter regarding CONTRACTOR’s performance hereunder, provided that the 2966

complaints represent actual “performance lapses” (i.e. breaches of this Agreement) by 2967

CONTRACTOR, and CONTRACTOR fails to remedy the performance lapse within thirty (30) days 2968

after receiving the complaint. 2969

(i) Final assessment under Article 19 of more than ten thousand dollars ($10,000) in 2970

liquidated damages against CONTRACTOR resulting from incidents of performance lapses 2971

occurring in any calendar year, other than liquidated damages for failure to meet diversion 2972

requirements. 2973

(j) More than twenty-four (24) documented incidents in any calendar year of 2974

CONTRACTOR operating a collection vehicle on CITY streets that exceeds by more than one 2975

thousand (1,000) pounds the maximum weight allowed under the California Vehicle Code for such 2976

vehicle, unless CONTRACTOR is permitted to do so by CITY. 2977

ARTICLE 25. Modifications to the Agreement 2978

25.01 Agreement Modifications and Changes in Law(s). CITY and CONTRACTOR 2979

understand and agree that the California Legislature has the authority to make comprehensive 2980

changes in Garbage, Recyclables, or Organic Waste Management legislation and that these and 2981

other Changes in Law in the future which mandate certain actions or programs for counties or 2982

municipalities may require changes or modifications in some of the terms, conditions or 2983

obligations under this Agreement. CONTRACTOR agrees that the terms and provisions of the 2984

Municipal Code, as it now exists or as it may be amended in the future, shall apply to all of the 2985

provisions of this Agreement and the Service Recipients of CONTRACTOR located within the 2986

Service Area. In the event of any future Change in Law(s), including state or federally mandated 2987

modifications to CITY Municipal Code, materially alters the rights or obligations of CONTRACTOR 2988

or the services to be provided by CONTRACTOR in a manner that results in CONTRACTOR 2989

incurring increased operating costs or decreased revenues not covered by adjustments to 2990

Maximum Service Rates as provided for in Section 4.02 hereunder, then modifications to the 2991

Maximum Service Rates as otherwise established under this Agreement may be considered, 2992

pursuant to Section 4.02.6. Nothing contained in this Agreement shall require any party to perform 2993

any act or function contrary to law. 2994

25.01.1 Compensation Adjustments. In the event of a Material Change in 2995

Law(s), CONTRACTOR shall provide CITY with a written rate increase request for additional 2996

compensation to CONTRACTOR arising from the Material Change in Law(s). If the proposed 2997

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rate increase exceeds three percent (3%) and CITY does not agree with such rate increase, then 2998

either party, in addition to negotiating with the other party, may submit the matter to non-binding 2999

mediation upon the terms and conditions in Section 25.05. 3000

25.02 City-Directed Changes. CITY may direct CONTRACTOR to perform additional 3001

services (including new diversion programs, additional public education activities, etc.), eliminate 3002

programs, or modify the manner in which it performs existing services. However, changes in the 3003

minimum diversion requirement set forth in Article 5 of this Agreement is not among the changes 3004

that may be directed by CITY. Direction of Solid Waste to a processing or Disposal Facility other 3005

than that originally selected by CITY, pilot programs and innovative services which may entail 3006

new collection methods, targeted routing, different kinds of services, different types of collection 3007

vehicles, and/or new requirements for Service Recipients, are included among the kinds of 3008

changes which CITY may direct. CONTRACTOR shall be entitled to an adjustment in its 3009

compensation for providing such additional or modified services but not for the preparation of its 3010

proposal to perform such services. CONTRACTOR shall not be required to begin implementing 3011

a CITY-directed change until the associated Maximum Service Rate adjustment has been agreed 3012

upon and has taken effect. 3013

25.03 Service Proposal. Within thirty (30) calendar days of receipt of a request for a 3014

service change from CITY under Section 25.02, CONTRACTOR shall if requested by CITY submit 3015

a proposal to provide such service. At a minimum, the proposal shall contain a complete 3016

description of the following: 3017

25.03.1 Collection methodology to be employed (equipment, manpower, 3018

etc.). 3019

25.03.2 Equipment to be utilized (vehicle number, types, capacity, age, 3020

etc.). 3021

25.03.3 Labor requirements (number of employees by classification). 3022

25.03.4 Type of carts or bins to be utilized. 3023

25.03.5 Provision for program publicity, education, and marketing. 3024

25.03.6 Five (5) year projection of the costs of and (if applicable) revenue 3025

from the program's operations in an operating statement format including documentation of the 3026

key assumptions underlying the projections and the support for those assumptions, giving full 3027

effect to the savings or costs to existing services. 3028

25.04 Monitoring and Evaluation. If CITY requests, CONTRACTOR shall meet with 3029

CITY to describe the progress of any new Solid Waste or diversion program(s) and other service 3030

issues arising from the program(s). If applicable, CONTRACTOR shall document the results of 3031

the new program(s) on a monthly basis, including at a minimum the tonnage diverted by material 3032

type, the end use or processor of the diverted materials and the cost per ton for transporting and 3033

processing each type of material and other such information reasonably requested by 3034

CONTRACTOR and/or CITY necessary to evaluate the performance of each program. 3035

25.04.1 At each meeting, CITY and CONTRACTOR shall have the 3036

opportunity to discuss revisions to the program. CITY shall have the right to terminate a program 3037

if CONTRACTOR is not complying with the terms and conditions agreed upon with CITY, and the 3038

termination is effected in accordance with such terms and conditions. Prior to such termination, 3039

CITY shall meet and confer with CONTRACTOR for a period of up to ninety (90) calendar days 3040

to resolve CITY’S concerns. After such termination, CITY may utilize a third party to perform 3041

these services, provided that (i) the services are outside the scope of the services contemplated 3042 109

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by this Agreement (such as street sweeping or curbside collection of household hazardous 3043

waste), and (ii) the services do not conflict with CONTRACTOR’s exclusive rights under Section 3044

3.01. 3045

25.05 Dispute Resolution. All disputes relating to service or compensation changes 3046

relating to a Material Change in Law(s) that meet the conditions specified in Section 25.01.1 shall 3047

be resolved by the following procedures: 3048

25.05.1.1 The party desiring mediation shall first give written notice 3049

thereof to the other party to this Agreement, specifying the dispute to be mediated. 3050

25.05.1.2 The mediation shall be held at Half Moon Bay, California, or 3051

at such other location as may be mutually agreed among the parties. The mediation shall be 3052

conducted according to and by a mediator chosen pursuant to the rules of the American 3053

Arbitration Association. Each side shall bear its own costs in the mediation. The cost of the 3054

mediator shall be shared equally between the parties. 3055

25.05.1.3 At least ten (10) business days before the date of the 3056

mediation, each side shall provide the mediator with a statement of its position and copies of all 3057

supporting documents. Each party shall send to the mediation one or more persons who have 3058

authority to negotiate on behalf of the party. If a subsequent dispute will involve third parties, 3059

such as insurers or subcontractors, they shall also be asked to participate in the mediation. 3060

ARTICLE 26. Legal Representation 3061

26.01 Acknowledgement. It is acknowledged that each party was, or had the opportunity 3062

to be, represented by counsel in the preparation of and contributed equally to the terms and 3063

conditions of this Agreement and, accordingly, the rule that a contract or Agreement shall be 3064

interpreted strictly against the party preparing the same shall not apply herein due to the joint 3065

contributions of both parties. 3066

ARTICLE 27. Financial Interest 3067

27.01 Representation. CONTRACTOR warrants and represents that (i) to its knowledge, 3068

no elected official, officer, agent or employee of CITY has a financial interest as defined in 3069

California Government Code Section §87103, in this Agreement or the compensation to be paid 3070

under it and, further, that (ii) no CITY employee who acts in CITY as a “purchasing agent” as 3071

defined by local or state law, nor any elected or appointed officer of CITY, nor any spouse or child 3072

of such purchasing agent, employee or elected or appointed officer, is a partner, officer, director 3073

or proprietor of CONTRACTOR and, further, that (iii) no such CITY employee, purchasing agent, 3074

CITY elected or appointed officer, or the spouse or child of any of them, alone or in combination, 3075

has a “material interest” in CONTRACTOR. “Material interest” means direct or indirect ownership 3076

of more than five percent (5%) of the total assets or capital stock of CONTRACTOR. 3077

ARTICLE 28. Contractor's Personnel 3078

28.01 Personnel Requirements. CONTRACTOR shall employ and assign qualified 3079

personnel to perform all services set forth herein. CONTRACTOR shall be responsible for 3080

ensuring that its employees comply with all applicable laws and regulations and meet all federal, 3081

state and local requirements related to their employment and position. 3082

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28.01.1 CITY may request the transfer of any employee of CONTRACTOR 3083

who materially violates any provision hereof, or who is wanton, negligent, or discourteous in the 3084

performance of his or her duties. 3085

28.01.2 CONTRACTOR’S field operations personnel shall be required to 3086

wear a clean uniform shirt bearing CONTRACTOR’S name. CONTRACTOR’S employees who 3087

normally come into direct contact with the public, including drivers, shall bear some means of 3088

individual identification such as a name tag or identification card. 3089

28.01.3 Each driver of a collection vehicle shall at all times carry a valid 3090

California driver's license and all other required licenses for the type of vehicle that is being 3091

operated. 3092

28.01.4 Each driver of a collection vehicle shall at all times comply with all 3093

applicable state and federal laws, regulations and requirements. 3094

28.01.5 CONTRACTOR’S employees, officers, and agents shall at no time 3095

be allowed to identify themselves or in any way represent themselves as being employees of 3096

CITY. 3097

28.01.6 CONTRACTOR'S name and the Customer Service telephone 3098

number shall be properly displayed on all collection vehicles. 3099

ARTICLE 29. Exempt Waste 3100

29.01 CONTRACTOR shall not be required to collect or dispose of Exempt Waste, but 3101

may offer such services at its option. All such collection and disposal of Exempt Waste is not 3102

regulated under this Agreement, but if provided by CONTRACTOR shall be in strict compliance 3103

with all federal, state and local laws and regulations. 3104

ARTICLE 30. Independent Contractor 3105

30.01 In the performance of services pursuant to this Agreement, CONTRACTOR shall 3106

be an independent contractor and not an officer, agent, servant or employee of CITY. 3107

CONTRACTOR shall have exclusive control of the details of the services and work performed 3108

and over all persons performing such services and work. CONTRACTOR shall be solely 3109

responsible for the acts and omissions of its officers, agents, employees, contractors and 3110

subcontractors, if any. Neither CONTRACTOR nor its officers, employees, agents, contractors or 3111

subcontractors shall obtain any right to retirement benefits, Workers Compensation benefits, or 3112

any other compensation or benefits which accrue to CITY employees, and CONTRACTOR 3113

expressly waives any claim it may have or acquire to such compensation or benefits. 3114

ARTICLE 31. Laws to Govern 3115

31.01 The law of the State of California shall govern the rights, obligations, duties and 3116

liabilities of CITY and CONTRACTOR under this Agreement and shall govern the interpretation 3117

of this Agreement. 3118

ARTICLE 32. Consent to Jurisdiction 3119

32.01 The parties agree that any litigation between CITY and CONTRACTOR concerning 3120

or arising out of this Agreement shall be filed and maintained exclusively in the Municipal or 3121

Superior Courts of San Mateo County, State of California, or in the United States District Court 3122 111

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for the Northern District of California to the fullest extent permissible by law. Each party consents 3123

to service of process in any manner authorized by California law. 3124

ARTICLE 33. Assignment 3125

33.01 No assignment of this Agreement or any right occurring under this Agreement shall 3126

be made in whole or in part by CONTRACTOR without the express written consent of CITY. CITY 3127

shall have full discretion to approve or deny, with or without cause, any proposed or actual 3128

assignment by CONTRACTOR. Such approval shall not unreasonably be withheld. Any 3129

assignment of this Agreement made by CONTRACTOR without the express written consent of 3130

CITY shall be null and void and shall be grounds for CITY to declare a default of this Agreement 3131

and immediately terminate this Agreement by giving written notice to CONTRACTOR, and upon 3132

the date of such notice this Agreement shall be deemed immediately terminated, and upon such 3133

termination all liability of CITY under this Agreement to CONTRACTOR shall cease, and CITY 3134

shall have the right to call the performance bond and shall be free to negotiate with other 3135

contractors, CONTRACTOR, or any other person or company for the service which is the subject 3136

of this Agreement. In the event of any assignment, the assignee shall fully assume all the liabilities 3137

of CONTRACTOR. 3138

33.02 CONTRACTOR shall be responsible for directing the work of CONTRACTOR’S 3139

subcontractors and any compensation due or payable to CONTRACTOR’S subcontractor shall 3140

be the sole responsibility of CONTRACTOR. The City Representative shall have the right to 3141

require the removal of any approved subcontractor for reasonable cause. 3142

33.03 For purposes of this Article when used in reference to CONTRACTOR, 3143

"assignment" shall include, but not be limited to (i) a sale, exchange or other transfer of at least 3144

fifty-one percent (51%) of CONTRACTOR'S assets dedicated to service under this Agreement to 3145

a third party; (ii) a sale, exchange or other transfer of outstanding common stock of 3146

CONTRACTOR to a third party provided said sale, exchange or transfer results in a change of 3147

control of CONTRACTOR (with control being defined as ownership of more than fifty percent 3148

(50%) of CONTRACTOR’S voting securities); (iii) any dissolution, reorganization, consolidation, 3149

merger, re-capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow 3150

arrangement, liquidation, or lease-back payments, or other transaction which results in a change 3151

of control of CONTRACTOR; (iv) any assignment by operation of law, including insolvency or 3152

bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution 3153

being levied against this Agreement, appointment of a receiver taking possession of 3154

CONTRACTOR'S property, or transfer occurring in the event of a probate proceeding; and (v) 3155

any combination of the foregoing (whether or not in related or contemporaneous transactions) 3156

which has the effect of any such transfer or change of control of CONTRACTOR. As used herein, 3157

“third party” excludes affiliates of CONTRACTOR. 3158

33.04 CONTRACTOR acknowledges that this Agreement involves rendering a vital 3159

service to CITY'S residents and businesses, and that CITY has selected CONTRACTOR to 3160

perform the services specified herein based on (i) Contractor's experience, skill and reputation for 3161

conducting its garbage, recyclable materials and organic Waste management operations in a 3162

safe, effective and responsible fashion, at all times in keeping with applicable environmental laws, 3163

regulations and best garbage, recycling and organic waste management practices, and (ii) 3164

CONTRACTOR'S financial resources to maintain the required equipment and to support its 3165

indemnity obligations to CITY under this Agreement. CITY has relied on each of these factors, 3166

among others, in negotiating with CONTRACTOR to perform the services to be rendered by 3167

CONTRACTOR under this Agreement. 3168

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ARTICLE 34. Compliance with Laws 3169

34.01 In the performance of this Agreement, CONTRACTOR shall comply with all 3170

applicable laws, regulations, ordinances and codes of the federal, state and local governments, 3171

including without limitation the Municipal Code of the CITY. 3172

34.02 CITY shall provide written notice to CONTRACTOR of any planned amendment of 3173

the CITY Municipal Code that would substantially affect the performance of CONTRACTOR’S 3174

services pursuant to this Agreement. Such notice shall be provided at least thirty (30) calendar 3175

days prior to the City Council’s approval of such an amendment. 3176

ARTICLE 35. Permits and Licenses 3177

35.01 CONTRACTOR shall obtain, at its own expense, all permits and licenses required 3178

by law or ordinance and maintain same in full force and effect throughout the term of this 3179

Agreement. CONTRACTOR shall provide proof of such permits, licenses or approvals and shall 3180

demonstrate compliance with the terms and conditions of such permits, licenses and approvals 3181

upon the request of the City Representative. 3182

ARTICLE 36. Ownership of Written Materials 3183

36.01 All reports, documents, brochures, public education materials, and other written, 3184

printed, electronic or photographic materials developed by CITY or CONTRACTOR for CITY’s 3185

use or for public dissemination in connection with the services to be performed under this 3186

Agreement, whether developed directly or indirectly by CITY or CONTRACTOR, may be used by 3187

CITY without limitation or restrictions on the use of such materials by CITY. CONTRACTOR shall 3188

not use any such materials specific to CITY in connection with any project not connected with this 3189

Agreement without the prior written consent of the City Representative. This Article 36 does not 3190

apply to ideas or concepts described in such materials and does not apply to the format of such 3191

materials and does not apply to CONTRACTOR’s website. 3192

ARTICLE 37. Waiver 3193

37.01 Waiver by CITY or CONTRACTOR of any breach for violation of any term covenant 3194

or condition of this Agreement shall not be deemed to be a waiver of any other term, covenant or 3195

condition or any subsequent breach or violation of the same or of any other term, covenant or 3196

condition. The subsequent acceptance by CITY of any fee, tax, or any other monies, which may 3197

become due from CONTRACTOR to CITY shall not be deemed to be a waiver by CITY of any 3198

breach for violation of any term, covenant or condition of this Agreement. 3199

ARTICLE 38. Prohibition Against Gifts 3200

38.01 CONTRACTOR shall not offer any gifts to any elected official, appointed officer 3201

or employee of CITY, or any relative or spouse of such elected official, appointed officer or 3202

employee. For purposes of this Section, “gift” shall be defined as set forth in the Regulations of 3203

the Fair Political Practices Commission, Title 2, Division 6, California Code of Regulations. 3204

ARTICLE 39. Point of Contact 3205

39.01 The day-to-day dealings between CONTRACTOR and CITY shall be between 3206

CONTRACTOR and City Representative. 3207

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ARTICLE 40. Conflict of Interest 3208

40.01 CONTRACTOR shall comply with CITY requirements for disclosure of potential 3209

Conflicts of Interest as required by the California Fair Political Practices Commission and such 3210

other applicable State or local laws or regulations, and will file all required disclosure statements 3211

in a timely manner and as required by law or regulation. 3212

ARTICLE 41. Notices 3213

41.01 Except as provided herein, whenever either party desires to give notice to the 3214

other, it must be given by written notice addressed to the party for whom it is intended, at the 3215

place last specified and to the place for giving of notice in compliance with the provisions of this 3216

paragraph. For the present, the parties designate the following as the respective persons and 3217

places for giving of notice: 3218

As to CITY: 3219

John Doughty, Public Works Director 3220

Half Moon Bay City Hall 3221

501 Main Street 3222

Half Moon Bay, CA 94019 3223

Telephone: (650) 726-8266 3224

E-mail: [email protected] 3225

As to CONTRACTOR: 3226

Michael Mahoney, General Manager 3227

Republic Services 3228

1680 Edgeworth Avenue 3229

Daly City, CA 94015 3230

Telephone: (415) 604-9010 3231

E-mail: [email protected] 3232

41.02 Notices shall be effective when received at the address as specified above. 3233

Changes in the respective address to which such notice is to be directed may be made by written 3234

notice. Facsimile transmission shall not be deemed acceptable notice. Receipt is deemed to have 3235

taken place within three (3) working days of notice mailed by U.S. Postal Service return receipt 3236

requested, or by email transmission with confirmation of receipt. 3237

41.03 Notice by CITY to CONTRACTOR of a collection or other Service Recipient 3238

problem or complaint may be given to CONTRACTOR orally by telephone at CONTRACTOR’S 3239

local office with confirmation sent as required above by the end of the Work Day. 3240

ARTICLE 42. Transition to Next Contractor 3241

42.01 In the event CONTRACTOR is not granted a franchise to continue to provide 3242

Collection Services following the expiration or early termination of this Agreement, 3243

CONTRACTOR shall cooperate fully with CITY and any subsequent contractors to assure a 3244

smooth transition of services described in this Agreement. Such cooperation shall include but not 3245

be limited to transfer of computer data, files and tapes containing customer account and service 3246

information; providing routing information, route maps, vehicle fleet information, and list of Service 3247

Recipients; providing a complete inventory of all carts and bins; providing adequate labor and 3248 114

FRANCHISE AGREEMENT

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equipment to complete performance of all Collection Services required under this Agreement; 3249

offering to sell carts and bins at no more than fair market value to the subsequent contractor or 3250

CITY; taking all actions necessary to transfer ownership of any sold carts and bins, as appropriate, 3251

to the subsequent contractor or CITY, including transporting such containers to a location 3252

designated by the City Representative; coordinating collection of materials set out in new 3253

containers if new containers are provided for a subsequent Agreement before the expiration or 3254

early termination of this Agreement; and providing other reports and data required by this 3255

Agreement. 3256

ARTICLE 43. Contractor’s Records 3257

43.01 CONTRACTOR shall maintain any and all letters, books of account, invoices, 3258

vouchers, canceled checks, and other records or documents evidencing or relating to charges for 3259

services or expenditures and disbursements charged to Service Recipients for a minimum period 3260

of five (5) years, or for any longer period required by law, from the date of final payment to 3261

CONTRACTOR pursuant to this Agreement. 3262

43.02 CONTRACTOR shall maintain all documents and records, which demonstrate 3263

performance under this Agreement for a minimum period of five (5) years, or for any longer period 3264

required by law, from the date of termination or completion of this Agreement. 3265

43.03 Any records or documents required to be maintained pursuant to this Agreement 3266

shall be made available for inspection or audit, at any time during regular business hours, upon 3267

written request by the City Representative, the City Attorney, City Auditor, City Manager, or a 3268

designated representative of any of these officers. Copies of such documents shall be provided 3269

to CITY for inspection at CITY offices when it is practical to do so. Otherwise, unless an alternative 3270

site is mutually agreed upon, the records shall be available at CONTRACTOR’S address indicated 3271

for receipt of notices in this Agreement. CITY’s rights to inspect, audit or review confidential or 3272

proprietary information of CONTRACTOR shall be subject to CITY entering into a reasonable 3273

confidentiality agreement with CONTRACTOR. In addition, CITY will take reasonable measures, 3274

subject to the requirements of applicable law, to prevent the dissemination of any such information 3275

to third parties, and will promptly notify CONTRACTOR upon receipt of a request by a third party 3276

under the Public Records Act to review or obtain such information. 3277

43.04 Where CITY has reason to believe that such records or documents may be lost or 3278

discarded due to the dissolution, disbandment or termination of CONTRACTOR’S business, CITY 3279

may, by written request or demand of any of the above named officers, require that custody of 3280

the records be given to CITY and that the records and documents be maintained in City Hall. 3281

Access to such records and documents shall be granted to any party authorized by 3282

CONTRACTOR, CONTRACTOR’S representatives, or CONTRACTOR’S successor-in-interest. 3283

ARTICLE 44. Entire Agreement 3284

44.01 This Agreement and the Exhibits attached hereto constitute the entire Agreement 3285

and understanding between the parties hereto, and it shall not be considered modified, altered, 3286

changed or amended in any respect unless in writing and signed by the parties hereto. 3287

ARTICLE 45. Severability 3288

45.01 If any provision of this Agreement or the application of it to any person or situation 3289

shall to any extent be held invalid or unenforceable, the remainder of this Agreement and the 3290

application of such provisions to persons or situations other than those as to which it shall have 3291 115

FRANCHISE AGREEMENT

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been held invalid or unenforceable, shall not be affected, shall continue in full force and effect, 3292

and shall be enforced to the fullest extent permitted by law. 3293

ARTICLE 46. Right to Require Performance 3294

46.01 The failure of either party at any time to require performance by the other party of 3295

any provision hereof shall in no way affect the right of such party thereafter to enforce same. Nor 3296

shall waiver by either party of any breach of any provision hereof be taken or held to be a waiver 3297

of any succeeding breach of such provision or as a waiver of any provision itself. 3298

ARTICLE 47. All Prior Agreements Superseded 3299

47.01 This document supersedes all prior negotiations, correspondence, conversations, 3300

agreements, contracts and understandings, whether oral or written, applicable to the matters 3301

contained in this Agreement. Accordingly, it is agreed that no deviation from the terms of this 3302

Agreement shall be predicated upon any prior representations, agreements, understandings or 3303

contracts, whether oral or written. 3304

ARTICLE 48. Headings 3305

48.01 Headings in this document are for convenience of reference only and are not to be 3306

considered in any interpretation of this Agreement. 3307

ARTICLE 49. Exhibits 3308

49.01 Each Exhibit referred to in this Agreement forms an essential part of this 3309

Agreement. Each such Exhibit is a part of this Agreement and each is incorporated by this 3310

reference. 3311

ARTICLE 50. Representations and Warranties 3312

CONTRACTOR, by acceptance of this Agreement, represents and warrants the conditions 3313 presented in this Article, as of the date of CONTRACTOR’s signature hereon. 3314

50.01 Corporate Status. CONTRACTOR is a corporation duly organized, validly 3315 existing and in good standing under the laws of the State of California (“State”). CONTRACTOR 3316 is qualified to transact business in the State and has the power to own its properties and to carry 3317 on its business as now owned and operated and as required by this Agreement. 3318

50.02 Corporate Authorization. CONTRACTOR has the authority to enter this 3319 Agreement and perform its obligations under this Agreement. The Board of Directors of 3320 CONTRACTOR (or the shareholders, if necessary) has taken all actions required by law, its 3321 articles of incorporation, its bylaws, or otherwise, to authorize the execution of this Agreement. 3322 The Person signing this Agreement on behalf of CONTRACTOR represents and warrants that 3323 they have the authority to do so. This Agreement constitutes the legal, valid, and binding obligation 3324 of CONTRACTOR. 3325

50.03 Agreement Will Not Cause Breach. To the best of CONTRACTOR’S knowledge 3326 after responsible investigation, the execution or delivery of this Agreement or the performance by 3327 CONTRACTOR of its obligations hereunder does not conflict with, violate, or result in a breach: 3328 (i) of any law or governmental regulation applicable to CONTRACTOR; or (ii) any term or condition 3329

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FRANCHISE AGREEMENT

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of any judgment, order, or decree of any court, administrative agency or other governmental 3330 authority, or any Agreement or instrument to which CONTRACTOR is a party or by which 3331 CONTRACTOR or any of its properties or assets are bound, or constitutes a default thereunder. 3332

50.04 No Litigation. To the best of CONTRACTOR’S knowledge after responsible 3333 investigation, there is no action, suit, proceeding or investigation, at law or in equity, before or by 3334 any court or governmental authority, commission, board, agency or instrumentality, pending or 3335 threatened against CONTRACTOR wherein an unfavorable decision, ruling or finding, in any 3336 single case or in the aggregate would: 3337

50.04.1 Materially adversely affect the performance by CONTRACTOR of 3338 its obligations hereunder; 3339

50.04.2 Adversely affect the validity or enforceability of this Agreement; or 3340

50.04.3 Have a material adverse effect on the financial conditions of 3341 CONTRACTOR, or any surety or entity guaranteeing CONTRACTOR’S performance under this 3342 Agreement. 3343

50.05 CONTRACTOR’S Statements. CONTRACTOR’S information submitted to CITY, 3344 which CITY has relied on in negotiating and entering this Agreement, does not: (i) contain any 3345 untrue statement of a material fact, or (ii) omit to state a material fact that is necessary in order to 3346 make the statements made, in light of the circumstances in which they were made, not misleading. 3347

50.06 CONTRACTOR’S Investigation. CONTRACTOR has made an independent 3348 investigation (satisfactory to it) of the conditions and circumstances surrounding the Agreement 3349 and the work to be performed hereunder. CONTRACTOR has taken such matters into 3350 consideration in entering into this Agreement to provide services in exchange for the 3351 compensation provided for under the terms of this Agreement. 3352

ARTICLE 51. Effective Date 3353

This Agreement shall become effective at such time as it is properly executed by CITY and 3354

CONTRACTOR and CONTRACTOR shall begin Collection Services, as covered herein, as of 3355

April 1, 2018. 3356

3357

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IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement on the day 3358

and year first written above. 3359

3360

CITY OF HALF MOON BAY REPUBLIC SERVICES OF SAN MATEO COUNTY 3361 3362 3363 _____________________ 3364 Debbie Ruddock Date Mike Caprio Date 3365 Mayor Area President 3366 3367 3368 _____________________ 3369 Magda González Date Michael Mahoney Date 3370 City Manager General Manager 3371 3372 3373 3374 3375 City of Half Moon Bay Business License Number 3376 3377 3378 3379 The foregoing Agreement has been reviewed and approval is recommended: 3380

3381 Resolution No. 20XX-XX 3382 Approved by City Council 3383 3384

3385

Approved as to Form: 3386 3387 _____________________ 3388 Catherine Engberg Date 3389 City Attorney 3390

3391 3392

Attest: 3393 3394

_____________________ 3395 Jessica Blair Date 3396 City Clerk 3397 3398

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EXHIBIT 1A

SFD MAXIMUM SERVICE RATES

EFFECTIVE APRIL 1, 2018 – MARCH 31, 2019

SFD CART COLLECTION

Facility Name

Disposal/Transfer Facility Ox Mountain LF $61.72

Per Ton Processed Organic Waste

(Yard Trimmings & Food Waste)

Newby Island Resource

Recovery Park $68.72

Per Ton Processing/Sale of Recyclable Material Newby Island Resource

Recovery Park $89.00

A. SFD CART COLLECTION SERVICE (Weekly Garbage, Recyclable Material and Organic Waste Collection)

Monthly Service Recipient Rate – Curbside Collection Garbage Cart Size

20 Gal 32 Gal 64 Gal 96 Gal

Total Monthly Curbside Service Rate $23.01 $36.99 $67.34 N/A

B. SFD ADDITIONAL SERVICES – AT SERVICE RECIPIENT REQUEST

Curbside Collection 20 Gal 32 Gal 64 Gal 96 Gal

Additional Curbside Garbage Cart (each cart) $23.01 $36.99 $67.34 N/A

Additional Curbside Recycling Cart (each cart) N/A N/A $4.25 N/A

Additional Curbside Organics Cart (each cart) N/A N/A N/A $4.25

Additional Cart Exchange, Replacement, or Cleaning

(each additional cart/occurrence) $40.00 /occurrence

Additional Bulky Waste Collection

(beyond two (2) included pick-ups per year) $75.00

/each additional

collection

Excess Bulky Waste collection, beyond 3 CY per collection $40.00 /CY

Bulky Waste Collection Large Item with Freon $97.00 /Large Item with Freon

3399

3400

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EXHIBIT 1B

MFD MAXIMUM SERVICE RECIPIENT RATES


Disposal/Transfer Facility Facility Name Rate

Ox Mountain LF $61.72


(Yard Trimmings & Food Waste) Newby Island Resource Recovery Park $68.72

Per Ton Processing/Sale of Recyclable Material Newby Island Resource Recovery Park $89.00

Container Size Collection Frequency

1X Week 2X Week 3X Week 4X Week 5X Week 6X Week

A. MFD Garbage Collection

Note: The MFD Garbage Collection Service rates include the equivalent of 20 gallons of weekly organic waste (including

food waste) collection service per MFD unit and 32 gallons of weekly recycling collection service per MFD unit, both at

no additional charge. These amounts do not vary based on the Service Recipient’s chosen garbage container size.

20 Gallon Cart $34.66 $69.31 $103.96 $138.62 $173.27 $240.11

32 Gallon Cart $36.13 $72.20 $108.30 $144.36 $180.49 $248.75

64 Gallon Cart $72.20 $144.40 $216.59 $288.78 $360.99 $497.50

96 Gallon Cart $108.31 $216.60 $324.91 $433.22 $541.53 $746.62

1 CY Bin $177.79 $355.66 $533.53 $711.16 $887.42 $1,179.84

1.5 CY Bin $266.70 $533.48 $800.19 $1,066.97 $1,333.67 $1,773.19

2 CY Bin $355.68 $711.33 $1,173.69 $1,564.99 $2,543.22 $3,381.23

3 CY Bin $533.51 $1,173.70 $2,288.92 $3,051.92 $3,814.78 $5,095.45

4 CY Bin $711.38 $2,034.47 $3,051.88 $4,069.14 $5,086.46 $6,794.05

6 CY Bin $1,173.73 $3,051.91 $4,577.75 $6,103.71 $7,629.56 $10,190.88

10 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

20 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

30 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

40 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

Compactor $1,368.00 $2,736.00 $4,104.00 $5,472.00 $6,840.00 $11,080.80

All 10, 20, 30, 40 CY boxes and compactors are pull rates only; total cost will be based on actual disposal and/or organic waste

processing costs. The Service Recipient rate will be the total cost for the collection, processing and disposal.

B. MFD Organic Waste Collection (includes Food Waste)

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EXHIBIT 1B



Note: The MFD Organic Waste Collection rates represent charges for organic waste containers that are requested in addition

to the default bundled service. (Default MFD garbage service includes the equivalent of 20 gallons of weekly organic waste

collection service per MFD unit at no additional charge).



20 Gallon Cart $27.18 $54.36 $81.54 $108.73 $135.91 $188.30

32 Gallon Cart $28.36 $56.68 $85.01 $113.32 $141.68 $195.21

64 Gallon Cart $56.68 $113.35 $170.03 $226.70 $283.38 $390.42

96 Gallon Cart $85.01 $170.03 $255.04 $340.06 $425.07 $585.89

1 CY Bin $139.65 $279.35 $419.06 $558.59 $697.03 $926.46

1.5 CY Bin $209.48 $419.02 $628.51 $838.06 $1,047.53 $1,392.37

2 CY Bin $279.37 $558.72 $921.64 $1,228.90 $1,995.83 $2,665.29

3 CY Bin $419.05 $921.65 $1,796.26 $2,395.04 $2,993.71 $3,997.91



10 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

20 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

30 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

40 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

Compactor $2,622.00 $5,244.00 $7,866.00 $10,488.00 $13,110.00 $20,451.60



C. MFD Recyclable Materials Collection

Note: The MFD Recyclable Materials Collection rates represent charges for recycling containers that are requested in addition

to the default bundled service. (Default MFD Garbage Service includes the equivalent of 32 gallons of weekly Recyclable

Materials Collection service per MFD unit at no additional charge).



20 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

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EXHIBIT 1B



32 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

64 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

96 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

1 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

1.5 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

2 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

3 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

4 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

6 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

10 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

20 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

30 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

40 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

Compactor $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00



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EXHIBIT 1B



D. MFD Additional Service Rates

Push Rates 0-25 feet 26-49 feet 50-75 feet 76-100 feet 101+ feet

/ Month No Charge $75.00 $100.00 $150.00 $250.00

Additional Cart Exchange or Replacement or Cleaning $40.00 Ea. Add./ occurrence

Additional Bin Exchange or Replacement or Cleaning $75.00 Ea. Add./ occurrence

Additional Debris Box Cleaning $399.00 Ea. Add./ occurrence

Cart Contamination Charge $100.00 / occurrence

Bin Contamination Charge $300.00 / occurrence

Locking Bin or Cart $50.00 / lock/month

Cart or Bin Service Call Back $100.00 / occurrence/cart or bin

Debris Box Service Call Back $541.50 / occurrence/debris box

Overflow Bin $75.00 / occurrence/container

Excess Bulky Waste collection, beyond 0.5 CY/individual MFD unit $40.00 / CY

Additional Bulky Waste collection, beyond two (2) included/year $75.00 / each add. Collection

Bulky Waste Collection Large Item with Freon $97.00 /Large Item with Freon

Heavy/Overweight Debris Box (over 10 tons) $342.00 /Ea. Add. ton over 10 tons

3401

3402

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EXHIBIT 1C

COMMERCIAL MAXIMUM SERVICE RECIPIENT RATES


Disposal/Transfer Facility Facility Name Rate

Ox Mountain LF $61.72


(Yard Trimmings & Food Waste) Newby Island Resource Recovery Park $68.72

Per Ton Processing/Sale of Recyclable Material Newby Island Resource Recovery Park $89.00

A. Commercial Garbage Collection

Note: The Commercial Garbage Collection Service rates include the equivalent of 32 gallons of weekly organic waste

(including food waste) collection service per Service Recipient and 96 gallons of weekly recycling collection service

per Service Recipient, both at no additional charge. These amounts do not vary based on the Service Recipient’s chosen

garbage container size. These amounts will be provided per individual commercial unit in situations where shared service is

provided.



20 Gallon Cart $33.98 $67.95 $101.93 $135.91 $169.88 $235.37

32 Gallon Cart $35.45 $70.85 $106.27 $141.65 $177.11 $244.01

64 Gallon Cart $70.85 $141.69 $212.53 $283.37 $354.22 $488.02

96 Gallon Cart $106.27 $212.53 $318.80 $425.07 $531.34 $732.36

1 CY Bin $174.56 $349.19 $523.83 $698.23 $871.29 $1,158.07

1.5 CY Bin $261.85 $523.78 $785.64 $1,047.57 $1,309.42 $1,740.46

2 CY Bin $349.21 $698.40 $1,152.05 $1,536.13 $2,494.79 $3,331.62

3 CY Bin $523.81 $1,152.06 $2,245.33 $2,993.80 $3,742.14 $4,997.38

4 CY Bin $698.45 $1,995.73 $2,993.76 $3,991.65 $4,989.60 $6,663.29

6 CY Bin $1,152.09 $2,993.79 $4,490.58 $5,987.48 $7,484.27 $9,994.74

10 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

20 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

30 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

40 CY Debris Box $1,083.00 $2,166.00 $3,249.00 $4,332.00 $5,415.00 $8,772.30

Compactor $1,368.00 $2,736.00 $4,104.00 $5,472.00 $6,840.00 $11,080.80



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EXHIBIT 1C



B. Commercial Organic Waste Collection (includes Yard Trimmings & Food Waste)

Note: The Commercial Organic Waste Collection rates represent charges for organic waste containers that are requested in

addition to default bundled service. (Default Commercial garbage service includes the equivalent of 32 gallons weekly organic

waste collection service per Service Recipient (or per individual unit if shared service is provided) at no additional charge).



20 Gallon Cart $27.18 $54.36 $81.54 $108.73 $135.91 $188.30

32 Gallon Cart $28.36 $56.68 $85.01 $113.32 $141.68 $195.21

64 Gallon Cart $56.68 $113.35 $170.03 $226.70 $283.38 $390.42

96 Gallon Cart $85.01 $170.03 $255.04 $340.06 $425.07 $585.89

1 CY Bin $139.65 $279.35 $419.06 $558.59 $697.03 $926.46

1.5 CY Bin $209.48 $419.02 $628.51 $838.06 $1,047.53 $1,392.37

2 CY Bin $279.37 $558.72 $921.64 $1,228.90 $1,995.83 $2,665.29



3 CY Bin $419.05 $921.65 $1,796.26 $2,395.04 $2,993.71 $3,997.91

10 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

20 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

30 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

40 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

Compactor $2,622.00 $5,244.00 $7,866.00 $10,488.00 $13,110.00 $20,451.60



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EXHIBIT 1C



C. Commercial Yard Waste Collection (Yard Trimmings Only)

Note: The Commercial Organic Waste Collection rates represent charges for organic waste containers that are requested in

addition to the default bundled service. (Default Commercial garbage service includes the equivalent of 32 gallons of weekly

organic waste collection service per Service Recipient (or per individual unit if shared service is provided) at no additional

charge).



20 Gallon Cart $23.78 $47.57 $71.35 $95.13 $118.92 $164.76

32 Gallon Cart $24.82 $49.59 $74.39 $99.16 $123.98 $170.81

64 Gallon Cart $49.59 $99.18 $148.77 $198.36 $247.95 $341.62

96 Gallon Cart $75.13 $150.26 $225.39 $300.52 $375.65 $517.78

1 CY Bin $122.19 $244.43 $366.68 $488.76 $609.90 $810.65

1.5 CY Bin $183.29 $366.64 $549.95 $733.30 $916.59 $1,218.32

2 CY Bin $244.45 $488.88 $806.43 $1,075.29 $1,746.35 $2,332.14

3 CY Bin $366.67 $806.44 $1,571.73 $2,095.66 $2,619.50 $3,498.17

4 CY Bin $488.91 $1,397.01 $2,095.63 $2,794.15 $3,492.72 $4,664.30

6 CY Bin $806.46 $2,095.65 $3,143.41 $4,191.23 $5,238.99 $6,996.32

10 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

20 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

30 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

40 CY Debris Box $2,394.00 $4,788.00 $7,182.00 $9,576.00 $11,970.00 $18,673.20

Compactor $2,622.00 $5,244.00 $7,866.00 $10,488.00 $13,110.00 $20,451.60



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EXHIBIT 1C



D. Commercial Recyclable Materials Collection

Note: The Commercial Recyclable Materials Collection rates represent charges for recycling containers that are requested in

addition to the default bundled service. (Default Commercial Garbage Service includes the equivalent of 96 gallons of weekly

Recyclable Materials Collection service per Service Recipient at no additional charge).



20 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

32 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

64 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

96 Gallon Cart $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

1 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

1.5 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

2 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

3 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

4 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

6 CY Bin $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

10 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

20 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

30 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

40 CY Debris Box $912.00 $1,824.00 $2,736.00 $3,648.00 $4,560.00 $5,472.00

Compactor $1,140.00 $2,280.00 $3,420.00 $4,560.00 $5,700.00 $6,840.00



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EXHIBIT 1C



E. Commercial Additional Service Rates

Push Rates 0-25 feet 26-49 feet 50-75 feet 76-100 feet 101+ feet

/ Month No Charge $75.00 $100.00 $150.00 $250.00

Additional Cart Exchange, Replacement, or Cleaning $40.00 Ea. Add./ occurrence

Additional Bin Exchange, Replacement, or Cleaning $75.00 Ea. Add./ occurrence

Additional Debris Box Cleaning $399.00 Ea. Add./ occurrence

Cart Contamination Charge $100.00 / occurrence

Bin Contamination Charge $300.00 / occurrence

Locking Bin or Cart $50.00 / lock/month

Cart or Bin Service Call Back $100.00 / occurrence/cart or bin

Debris Box Service Call Back $541.50 / occurrence/debris box

Overflow Bin $75.00 / occurrence/container

Heavy/Overweight Debris Box (over 10 tons) $342.00 /Ea. Add. Ton over 10 Tons

3403

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EXHIBIT 1D

EMERGENCY MAXIMUM SERVICE RATES


A. EMPLOYEES

Labor Position Hourly Rate

Driver $200.00

Supervisor $170.00

Customer Service Representative $140.00

Maintenance Technician $200.00

Helper $200.00

B. EQUIPMENT

Equipment Type Hourly Rate

Residential Automated Sideloader $75.00

Residential Real Loader $75.00

Industrial Roll Off $75.00

Street Sweeper $60.00

Commercial Front Loader $75.00

Service/Support/Container Delivery $40.00

3404

3405

3406

EXHIBIT 1E

CITY CODE ENFORCEMENT SERVICE RATES


Service Hourly Rate

Additional Code Enforcement for Illegal Dumping Cleanup $399

Total cost will be based on actual disposal costs.

3407

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EXHIBIT 2 CITY SERVICE UNITS

Carts Collected from CITY Service Units

Garbage 1/Week 2/Week 3/Week 4/Week 5/Week

20-Gallon 0 0 0 0 0

32-Gallon 9 12 15 0 37

64-Gallon 0 0 0 0 0

96-Gallon 0 0 0 0 0

Bins Collected from CITY Service Units

Garbage Facility 1/Week 2/Week 3/Week 4/Week 5/Week

2-Yard HMB City Hall 1

3-Yard HMB Community Center 1

2-Yard HMB Fire Department 1

1-Yard HMB Library 1

3-Yard HMB Police Department 1

4-Yard Poplar Beach

1

2-Yard Redondo Beach 1

30-Yard HMB Corporation Yard 1

Recycle Facility 1/Week 2/Week 3/Week 4/Week 5/Week

3-Yard HMB City Hall 1

4-Yard HMB Community Center 1

1-Yard HMB Library 1

2-Yard HMB Police Department 1

2-Yard Poplar Beach 1

Note: All City Service Units shall also receive Organics Waste Collection Service at no additional charge, with

the container size and frequency of collection to be determined in consultation with the CONTRACTOR within

two (2) months of the starting date of this Agreement.

3408

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EXHIBIT 3 CITY-SUPPORTED EVENTS

Concert in the Park Series (up to 5 concerts/year)

Coastal Clean-Ups (up to 2/year)

Up to 5 additional special events

3409

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EXHIBIT 4 CITY STREET SWEEPING LOCATIONS

The following streets In the Downtown area are to be swept weekly:

Street Segment

Main St. Hwy 1 (No.) to Hwy 1 (So.)

Church St. All

Purissima St. Main St. to Pilarcitos Creek

Johnson St. Monte Vista Ln. to Pilarcitos Creek

San Benito St. Pilarcitos Creek to Miramontes St.

Arroyo Leon Ct. All

Pablo Ct. All

Vasquez Dr. All

Mill St. All

Kelly Ave. San Benito St. to to the State Beach

Miramontes St Church St. to Arroyo Leon Creek

Correas St. Church St. to Johnston St.

Monte Vista Ln. Main St. to Johnston St.

HWY 92 Spanish Town to HWY 1 (both sides of streets)

Downtown Main Street All

Poplar Beach Parking Lot All

Shoreline Station Around the Sheriff’s office and Community Center

City Hall Parking Lot All

Miramar Track / Pullman Ct. /

Washington Street All

The following streets are to be swept every other week when school is in session:

Street Segment

Lewis Foster Drive All

The following streets are to be swept once per month:

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Street Segment

Miramar Tract

Valencia St. All

Ventura St. All

Mirada Rd. All

Alameda Ave. San Pablo Ave. to southerly end

Roosevelt Area

Roosevelt Blvd. All

Naples Ave. Washington Blvd. to northerly end

Champs Elysee Blvd. All

Pullman Ave. All

Washington Blvd. All

Frenchmans Creek

Ruisseau Francais Ave. All

Avignon Pl. All

Touraine Ln. All

Bordeaux Cn. All

Marseilles Way All

Le Mans Way All

Toulouse Ct. All

Le Havre Pl. All

Le Blanc Ct. All

Sea Haven

Spindrift Way All

Tiller Ct. All

Spinnaker Ln. All

Keel Ct. All

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Hawser Ln. All

Mizzen Ln. All

Jib Ct. All

Brig Ct. All

Bark Ct. All

Kehoe/Casa Del Mar

Wave Ave. South side only

Beach Ave. All

Casa Del Mar Dr. All

Judith Ct. All

Marie Ct. All

Antoinette Ct. All

St. Joseph Ave. All

St. John Ave. All

Kehoe Ave. All

Pilarcitos Ave. All

Frontage Rd. Wave Ave. to Kehoe Ave. (West side only)

Grandview

Pacific Ave. All

Dwight Ave. All

Brancroft Ave. All

Golden Gate Ave. All

Grandview Blvd. Hwy 1 to Golden Gate Ave.

Terrace/Highland Park

Terrace Ave. All

Silver Ave. All

Highland Ave. All

Quartz St. All

Golden Gate Ave. All

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Grand

Chesterfield Ave. All

Grand Blvd. All

Belleville Blvd. All

St. James Ave. All

Ralston Ave. All

Pilarcitos Park

Oak Ave. All

Cypress Ave. All

Willow Ave. All

Laurel Ave. All

Pine Ave. All

Pilarcitos Ave. All

Alsace Lorraine/Kelly

Kelly Ave. West end to Hwy 1

Miramontes Ave. All

Correas Ave. All

Valdez Ave. All

Garcia Ave. All

Central Ave. All

Alsace Lorraine Ave. Kelly Ave. to Granelli Ave.

Potter Ave. All

Ocean Ave. All

Arleta Park West

Granelli Ave. Railroad Ave. to Third Ave.

Myrtle St. Railroad Ave. to Third Ave.

Filbert St. Railroad Ave. to Hwy 1

Spruce St. Railroad Ave. to Hwy 1

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Poplar St. Beach parking lot to Hwy 1

Metzgar St. Railroad Ave. to Hwy 1

Grove St. Railroad Ave. to Hwy 1

Magnolia St. First Ave. to Hwy 1

First Ave. Granelli Ave. to Magnolia St.

Second Ave. All

Third Ave. All

Railroad Ave. Central Ave. to Grove St.

Seymour St. Railroad Ave. to Hwy 1

Ariela Park East

Myrtle St. Hwy 1 to Main St.

Filbert St. Hwy 1 to Main St.

Spruce St. Hwy 1 to Main St.

Poplar St. Hwy 1 to Main St.

Metzgar St. Hwy 1 to Main St.

Grove St. Hwy 1 to Main St.

Magnolia St. Hwy 1 to Main St.

Fourth St. Myrtle St. to Poplar St.

Arleta Way Grove St. to Magnolia St.

Seymour St. Hwy 1 to Main St.

Arnold

Arnold Way All

Colonel Way All

Ocean Colony

St. Andrews Rd. All

St. Andrews Ln. All

Bayhill Ct. All

Bayhlll Pl. All

Bayhill Rd. All

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Eagle Trace Dr. All

Trace Ln. All

Burning Tree Rd. All

Burning Tree Ct. All

Fairway Dr. All

Pinehurst Ln. All

Greenbrier Rd. All

Greenbrier Ct. All

Winged Foot Rd. All

River Oaks Rd. All

Inverness Rd. All

Fairway Pl. All

Cypress Point Rd. All

Ashdown Pl. All

Muirfield Rd. All

Merion Rd. All

Birkdale Rd. All

Turnberry Rd. All

Turnberry Ct. All

Pembroke Ct. All

Spyglass Ct. All

Spyglass Ln. All

Miramontes Point Rd. All

Troon Way All

3410

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EXHIBIT 5 DETAILED RATE REVIEW METHODOLOGY

In the event that a Detailed Rate Review is requested by CITY, CITY shall notify

CONTRACTOR of such request on or before the August 1 preceding the April 1 for which

Maximum Service Rates are to be adjusted. CONTRACTOR shall submit its rate

application on or before October 1. CITY shall complete its review (including any required

City Council approval) and Maximum Service Rates shall be finalized by December 30.

The Detailed Rate Review will be based on CONTRACTOR’S rate application, which shall

contain financial statements (together with a management representation letter as to such

statements) for services provided under this Agreement for the most recently completed

fiscal year preceding the given April 1st rate application due date.

As part of its rate application, CONTRACTOR shall assemble and submit its forecasts of:

Maximum Service Rates, revenue given such rates, annual cost of operations, pass-

through costs, and profit, for the year for which Maximum Service Rates are being

adjusted, together with the method used to produce such forecasts, and such information

as is necessary to support the assumptions made with regard to such forecasts (such as

projected population growth or migration, service or operational changes, projected

changes in tonnages, known or reasonably expected cost increases, etc.).

CONTRACTOR shall provide all financial information and supporting documentation

required by this review in a format acceptable to CITY (or CITY’s designated consultant)

in a timely manner. CONTRACTOR shall not require CITY (or CITY’s designated

consultant) to review any such documents on-premises at CONTRACTOR’S worksite, but

shall instead allow for all required information and supporting documentation to be provided

to CITY (or its designated consultant) via physical mail, e-mail, or any other delivery

method approved by CITY.

Maximum Service Rates shall be adjusted as part of this Detailed Rate Review so as to

generate sufficient Gross Revenues to CONTRACTOR to cover the sum of the forecasted

annual cost of operations, profit on such forecasted annual cost of operations, and

forecasted allowable costs, reviewed or calculated as set forth below.

a. Forecasted annual cost of operations. The forecasted annual cost of operations

shall consist of the sum of:

Forecasted labor-related costs

Forecasted vehicle-related costs

Forecasted other costs

Forecasted lease expense

Each of these sums shall be reviewed based on the following:

i. Determination of actual costs. CONTRACTOR’s financial statement will be

reviewed to determine CONTRACTOR’s costs for each of the foregoing

categories during the fiscal year involved. CITY will use the financial statements

to determine that costs have actually been incurred and have been assigned to

the appropriate category.

ii. Adjustment of actual costs. CITY may adjust the actual costs in two ways:

(1) to exclude any non-allowable costs, set out below, and (2) to exclude and/or

reduce any costs that were not reasonably and necessarily incurred in the

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Agreement. All costs incurred by CONTRACTOR in the performance of this

Agreement not excluded under the preceding sentence shall be deemed

allowable costs. The “other” cost category includes all allowable costs besides

labor-related, vehicle-related and lease costs, including without limitation

processing and tip fees.

Costs that are deemed non-allowable consist of the following:

i. Corporate and technical services costs in excess of four percent (4%)

of Gross Revenues. Corporate and technical services costs consist of

the following corporate headquarters costs allocated to CONTRACTOR

by CONTRACTOR’s parent: corporate administration, environmental

compliance, sustainability, corporate finance, human resources, and

information technology.

ii. Promotional, entertainment, and travel expenses in excess of $5,000

per Agreement Year, unless authorized in advance by CITY.

iii. Fines or penalties of any nature.

iv. Liquidated damages assessed under Section 19.03 of this Agreement.

v. Federal or state income taxes.

vi. Charitable or political donations.

vii. Attorney's fees and other expenses incurred by CONTRACTOR in any

court proceeding in which CITY and CONTRACTOR are adverse

parties, unless CONTRACTOR is the prevailing party in said

proceedings.

viii. Attorney's fees and other expenses incurred by CONTRACTOR in any

court proceeding in which CONTRACTOR’s own negligence, violation

of law or regulation, or other wrongdoing, are in issue and occasions in

part the attorney's fees and expenses claimed, provided, however, such

attorney's fees will be allowed to the extent CONTRACTOR can

demonstrate they were reasonable and necessary and a cost of doing

business, and were not the result of any intentional or willful misconduct

by CONTRACTOR or its employees; and attorney's fees and expenses

incurred by CONTRACTOR in a court proceeding in which the legal

theory or statute providing a basis of liability against CONTRACTOR

also provides for separate strict liability for CITY arising from the action

of its citizens or ratepayers (such as in a CERCLA lawsuit).

ix. Payments to related party entities for products or services (other than

lease expense, calculated as provided below), in excess of the fair

market value for those products or services. For purposes of this

Agreement, related party expenses are those resulting from

transactions between CONTRACTOR and another company

(companies) that has (have) common ownership or management

control.

b. Forecasted Costs. Allowed costs of operations for CONTRACTOR’S prior fiscal

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for which Maximum Service Rates are being adjusted. The review will evaluate

forecasted labor-related costs, vehicle-related costs, other costs, and lease

expense (described in additional detail below).

c. Labor-Related Costs. Labor-related costs will be forecasted based on projected

head count and the increases provided for in CONTRACTOR’s collective

bargaining agreements.

d. Lease Expense. Lease expense will be calculated using the actual purchase price

of the asset, the number of years in the useful life of the asset, and the prime

interest rate on the date of acquisition, assuming full amortization over the useful

life of the asset. The result is the forecasted lease expense for the asset for the

rate year. Useful lives are: office equipment 5 years; vehicles 8 years;

carts/bins/debris boxes 10 years; buildings and leasehold improvements 20 years.

Forecasted lease expense will reflect CONTRACTOR’s procurement schedule in

Exhibit 11 as well as other reasonably necessary capital costs.

e. Corporate Costs. The following corporate headquarters costs allocated to

CONTRACTOR by CONTRACTOR’s parent shall be allowable costs: insurance,

workers compensation, pension costs, health and welfare, and regional charges.

Such costs are not included in the corporate and technical services category

referred to in (i) above.

f. For the purpose of calculating CONTRACTOR’S profit, fees included in Section

4.04 through 4.04.4 are excluded from profit. Forecasted costs shall reflect

scheduled increases in amounts payable to CITY.

g. Profit. Profit or return to CONTRACTOR shall be determined by CITY applying an

operating ratio so as to provide for an adequate rate of return to CONTRACTOR.

For purposes of this Agreement, the CITY-determined operating ratio shall be

ninety percent (90.00%). For purposes of determining the amount of profit, this

operating ratio shall be applied to CONTRACTOR’S total forecasted allowable

expenses, which shall not include expenses that are identified as non-allowable

expenses or as pass-through expenses (as described above). The formula for

applying the operating ratio is as follows: operating ratio = (allowable expenses) /

(allowable expenses + profit).

Additional Diversion Expense. Without limiting the foregoing, if CONTRACTOR undertakes

activities to increase its overall diversion level that are not specifically required to be performed

by CONTRACTOR under the strict terms of this Agreement, and such activities are reasonably

necessary in order to achieve the 50% diversion requirement set forth in Section 5.01, then for

purposes of the Detailed Rate Review such activities shall be deemed to be undertaken in the

performance of the Agreement, and the costs of such activities shall be deemed to be

allowable expenses.

3411

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EXHIBIT 6 TRANSITION PLAN

CONTRACTOR has designed the following Transition and Implementation Plan specifically for

the successful transition into the CITY. This plan includes what CONTRACTOR considers to

be the most critical components of a transition that need to be addressed in order to accomplish

a seamless transition into a new service area:

Described herein reflect the methods that CONTRACTOR will take when approaching the

operational components of the transition into the CITY prior to the April 1, 2018 commencement

date.

Equipment Ordering and Delivery

CONTRACTOR recognizes the importance of acquiring equipment as early as possible and

that it is imperative that any additional new equipment is available for use prior to the start-up

date of services. Utilizing CONTRACTOR’S past experience with transitions and taking into

account operational differences when transitioning into a new service area, CONTRACTOR

has calculated the number of routes that will be required using the total number of customers,

expected tonnage, and the population densities of the service areas in the CITY to determine

the total number and type of collection vehicles that are needed.

Since the collection equipment required is already in place as your current service provider, no

additional vehicle equipment has to be ordered to service the CITY for new Agreement.

New wheeled cart containers will be ordered and container specifications will be finalized and

submitted to the factories to begin manufacturing as described below.

Container Procurement Carts

All new residential container carts to be used in the CITY will be completed and delivered

between approximately March 1, 2018 and March 31, 2018, with complete delivery on or before

the start of the new Agreement.

CONTRACTOR will purchase and deploy wheeled carts manufactured by SSI Schaefer

Systems International, Inc. that are specially designed to accommodate the fully automated

collection system.

CONTRACTOR will assemble the wheels and lids and store the carts prior to staging for delivery.

CONTRACTOR commits to ordering a sufficient supply of surplus containers (5% of total in

reserve) in each size to ensure that carts are available for exchanges.

Bin and Debris Box Procurement

As the current service provider, CONTRACTOR plans to use refurbished bins and debris boxes

to service customer’s needs for this service type. CONTRACTOR will begin refurbishing its

surplus bins starting January 1, 2018 to have adequate supply on hand for container exchanges

beginning April 1, 2018, which will continue through June 30, 2018. Commercial customers’

containers will be exchanged for refurbished ones during the rightsizing process based upon

the new services.

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Route Planning and Development

It is always the goal of CONTRACTOR to develop and utilize the most efficient routes to provide

consistent services, while causing minimal disruption to residents and commercial customers

during the transition. As the current service provider, CONTRACTOR does not anticipate

revising any of routing schedules.

Hiring and Training

CONTRACTOR will not have to hire or train any new employees in order to implement the new

contract agreement. CONTRACTOR’s Half Moon Bay personal are familiar with operating and

serving the customers within the CITY.

Administration, Operations and Maintenance Yard

Administration for the CITY franchise agreement will occur in CONTRACTOR’s Daly City office

located at 1680 Edgeworth Avenue where CITY customers can conveniently pay their bill in

person. In order to ensure convenience for customers, the administrative office and CSR Call

Center will be located together with the operations office. All Operations, including dispatching

and vehicles serving the CITY will be located and maintained out of CONTRACTOR’s Ox

Mountain landfill location.

Billing and Database Set-up

CONTRACTOR will be using the InfoPro management system to manage CONTRACTOR’s

collection operations. This multifunctional platform allows CONTRACTOR to simultaneously

run the management of multiple jurisdictions, track and create reports for each of our service

areas, and generate invoices.

Public Education and Outreach

CONTRACTOR’s Public Education and Outreach Plan outlines the approach and methodology

to conduct initial outreach and will identify the public education materials that will be used for

program start-up and the most appropriate method of distribution. Collateral materials

developed and outreach conducted will be designed to inform customers of changes, remind

them of what will remain unchanged, and offer assistance with any potential uncertainties

regarding the change in haulers. CONTRACTOR has found that comprehensive public

education and outreach campaigns are successful when they begin well in advance of the new

service commencement date and utilize multiple media sources to distribute information.

CONTRACTOR will be responsible for the development of all collateral materials and will

provide the CITY an opportunity to review and provide input on all materials developed and

information distributed before they are delivered to customers and the community at large.

CONTRACTOR’s public education and outreach program is crucial to CONTRACTOR’s

success in meeting and exceeding the CITY’s diversion goals and educating the residents and

businesses. In the few months prior to start-up, CONTRACTOR will schedule and attend

community events and make presentations to educate customers on the new collection

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programs and answer questions. CONTRACTOR will conduct direct outreach to community

groups, business groups, and other community groups as an opportunity to make contact with

the leaders in the community and develop communication networks. Leading up to the

commencement of services, CONTRACTOR will place advertisements in local newspapers and

use direct mailings to inform residents and businesses about the new collection services, and

recyclables and organic waste composting programs available by customer type.

Collateral Development & Distribution

CONTRACTOR will utilize a phased approach for developing all collateral to be distributed to

all residents and businesses in the CITY. CONTRACTOR will identify the messages to be

communicated and the purpose of the collateral, then begin drafting the content and developing

a graphic mock-up. Content and format revisions are made with input from the CITY.

CONTRACTOR will make appropriate revisions to collateral based on input and

recommendations and provide the final draft to the CITY prior to translating the material into

Spanish, printing and preparing for distribution. CONTRACTOR will develop comprehensive

mailing lists by customer type through CONTRACTOR’s customer service database for direct

distribution of educational materials.

Well before the commencement of services on April 1, 2018, CONTRACTOR will contact all

residential customers to inform them of the new programs and services. CONTRACTOR will

use this mailing list as a primary method for direct distribution of educational materials including,

but are not limited to, the following:

Notification of CONTRACTOR as the continuing hauler and our local contact

information,

Cart size selection for residential customers and service verification requests,

Expanded and/or modified recyclables and organic collection services; and,

Notification and promotion of other expanded or new services.

Following receipt of completed cart verification and selection mailers, and during initial cart

distribution, new outreach and educational program collateral will be distributed to customers,

including kitchen pails to all residential customers. CONTRACTOR will also develop and

distribute notices annually, program brochures for cart and bin customers that will outline the

service programs available, and include, at a minimum, definitions of the various acceptable

materials, procedures for proper set-out, Used Oil, Bulky Waste on-call services and other

program-related information.

All major components of CONTRACTOR’s Transition and Implementation plan will be designed

and developed to include contingency plans. The timeline on the following pages includes a

schedule of major components and tasks of CONTRACTOR’s Transition and Implementation

Plan, the anticipated completion dates and estimated duration, the key personnel who are

assigned to the tasks, and additional comments. As tasks described in the following timeline

are completed or are near completion, the CITY will be notified of the changes and if any

challenges arose that may impact the transition timeline schedule.

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Category Task Assigned To Start Date

End Date

Comments

Contract Negotiations, Award of Franchise Agreement and Pre-Transition Plan

1 Interview Qualified

Proposers

Lead: M. Caprio,

Assist: M. Mahoney 4/27/17 4/27/17

CONTRACTOR will negotiate in

good faith with the CITY

1.1 Commence Negotiations

with Top Proposers

Lead: M. Caprio

Assist: M. Mahoney 5/20/17 7/5/17

1.2 CITY Council Award of

Agreement

Lead: M. Caprio

Assist: M. Mahoney

7/18/17 9/5/17

1.3 Franchise Term Begin CONTRACTOR 4/1/18 3/31/28

1 Total Elapsed Time 12 months

Containers

2 Container

procurement

Lead: M. Mahoney

Assist: D. Nelson 11/1/17 2/28/18

Order new containers, including

kitchen pails. Secure staging locations

for carts

2.1 Review current

service levels

Lead: M. Mahoney

Assist: J. Belo

Assist: M. Devincenzi

Assist: J. Minnix

1/1/18 2/28/18 Develop plan and timeline for

delivering new bins and containers

2.2 Residential container

exchange/delivery

Lead: J. Belo

Assist: Dan Nelson 3/1/18 3/31/18

Swap out residential carts on

customers’ service day, deliver kitchen

pails

2.3 Commercial cart and bin

exchange/delivery

Lead: J. Belo

Assist: Dan Nelson 3/1/18 6/30/18

Swap out commercial

containers/deliver compost carts/bins

as part of customer rightsizing


Customer Service

3

Train existing

Customer Service

Representatives

and Recycling

Representatives on

new services

Lead: Yolanda Ponce

Co-Lead: M. Devincenzi 10/1/17 3/31/18

Training will begin prior to first

outreach materials going out to

customers in the fall and continue

through the transition 3 Total Elapsed Time 5 months

Coordination with CITY staff

4

Establish reporting and

other scheduled items to

CITY staff with updates

Lead: M. Devincenzi

Assist: M. Mahoney

10/1/17 3/31/18

Create regular meeting with CITY

staff for implementation plan

updates

4.1

Address any concerns

that may arise during

transition

Lead: M. Mahoney

Assist: M. Devincenzi 10/1/17 3/31/18

Meet with CITY staff to mitigate any

issues that may arise during transition


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End Date Comments

Public Education-Start-up

5

Mail announcements

to residential,

commercial and

multi-family

Lead: M. Devincenzi

Assist: J. Minnix 1010/1/17 33/31/18 Draft, review and mail in

collaboration with CITY

5.1

Mail subscription

selection to

residential

Lead: M. Devincenzi

Assist: J. Minnix

10/01/17 11/01/17 Draft, review and mail in


5.2 Commercial and MFD start-

up waste assessments

Lead: J. Minnix

Assist: M.

Devincenzi

10/1/17 4/1/18 Preparation for new

services start

5.33

Collection day

change notification

(if any) to residential

Lead: M. Devincenzi

Assist: J. Minnix

3/01/18 4/6/18 Reminder calls the night

before

new service day

5.44 Residential customer

notification of bulky waste

Lead: M. Devincenzi

Assist: J. Minnix

1/1/18 2/28/18 Draft, review and print in collaboration with CITY

5.55

Multi-family and

Commercial recycle,

compost and garbage

posters

Lead: M. Devincenzi

Assist: J. Minnix 1/1/18 2/28/18 Draft, review and print in


5.66

Garbage, recycle and

organics

non-collection tags

Lead: M. Devincenzi

Assist: J. Minnix 1/1/18 2/28/18 Draft, review and print in


5.77 Website update Lead: M. Devincenzi

Assist: J. Minnix 1/1/18 2/28/18 Include new services and

schedule

5.88 Container delivery &

pick-up notification

Lead: M. Devincenzi

Assist: J. Minnix 1/1/18 2/28/18

Containers pick-up, new

containers

delivered on customer’s

notification

day. Notify customer of

date 5 Total Elapsed Time 5 Months

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End Date Comments

Public Outreach-Annual

6

Mail annual

customer guide for

residential

Lead: M. Devincenzi

Assist: J. Minnix Jan Dec Begin updates in September

for January mailing

6.1

Mail annual

customer guide

for Commercial/

Multifamily

Lead: M. Devincenzi

Assist: J. Minnix Jan Dec Begin updates in September

for January mailing

6.2

Residential quarterly

newsletter - bill

insert

Lead: M. Devincenzi

Assist: J. Minnix Jan Dec

Will develop schedule for

drafts, approval, printing,

delivery to mail house

6.3

Commercial biannual/

Multifamily annual

newsletters

Lead: M. Devincenzi





6.4

Commercial and Multifamily

recycle, compost and garbage

posters

Lead: M. Devincenzi

Assist: J. Minnix March May

Review current posters for any

changes and current supply

6.5

Garbage, recycling

and organics

non-collection tag

Lead: M. Devincenzi

Assist: J. Minnix March May Review current tags for any

changes and current supply

6.6

Commercial and Multifamily

AB341/AB1826 mailer 2 times

per year

Lead: M. Devincenzi





6.7

Holiday tree and collection

schedule bill insert

Lead: M. Devincenzi

Assist: J. Minnix Sept Nov

Draft, review and mail in


6.8 School Program Lead: M. Devincenzi

Assist: J. Minnix June Aug

Develop calendar and mail letters to

schools notifying them of programs,

tours and scholarship. Will follow-up

with phones calls if needed.

6.9

Other office/

event/food waste

containers

Lead: M. Devincenzi

Assist: J. Minnix Jan Dec Assess current inventory

6.10 Container stickers

Lead: M. Devincenzi

Assist: J. Minnix Jan Dec Assess and update current inventory

6.11 Website updates

Lead: M. Devincenzi

Assist: J. Minnix Jan Dec Update as needed

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6.12 Updates to City Council

Co-Lead: M. Mahoney

Co-Lead: M.

Devincenzi

Every 6 months

Includes preparation of presentation,

and production of presentation

materials, as needed

6 Total Elapsed Time 12 Months

3412

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EXHIBIT 7 OPERATIONS PLAN

The following section details CONTRACTOR’s plan to perform collection of single-family, multi-family, commercial and industrial services and services at CITY facilities for the CITY. Our collection plan is based on the following number of accounts, account frequency and annual tons collected for each line of business.

Current Accounts in Half Moon Bay:

Residential Cart Service Recipients

Garbage 1 Cart 2 Carts 3 Carts 4 Carts

20 Gallon 938 6 0 0

32 Gallon 1,969 32 3 6

64 Gallon 539 1 0 0

96 Gallon 57 1 1 0

Recycle 1 Cart 2 Carts 3 Carts 4 Carts

32 Gallon 145 1 0 0

64 Gallon 3,303 22 0 4

96 Gallon 33 2 1 0

Yard Waste 1 Cart 2 Carts 3 Carts 4 Carts

32 Gallon 68 0 0 0

64 Gallon 91 0 0 0

96 Gallon 3,122 27 1 0

MFD Residential Carts

Garbage Carts Recycle 1 Cart Yard Waste 2 Cart

32 Gallon 9 32 Gallon 0 32 Gallon 0



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MFD Residential Bins

Garbage 1/week 2/week 3/week 4/week 5/week

1-Yard 1 0 0 0 0

1.5-Yard 0 0 0 0 0

2-Yard 13 1 4 4 0

3-Yard 12 4 0 0 0

4-Yard 4 0 0 0 0

6-Yard 0 0 0 0 0

Recycle 1/week 2/week 3/week 4/week 5/week

1-Yard 0 0 0 0 0

1.5-Yard 0 0 0 0 0

2-Yard 1 2 0 0 0

3-Yard 4 3 1 0 0

4-Yard 0 0 1 0 0

6-Yard 0 0 0 0 0

Commercial Cart Service Recipients


20 Gallon 5 0 0 0 0

32 Gallon 30 1 0 0 0

64 Gallon 1 0 0 0 0

96 Gallon 0 0 0 0 0


32 Gallon 1 0 0 0 0

64 Gallon 19 0 0 0 0

96 Gallon 24 0 0 0 0

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Yard Waste 1/week 2/week 3/week 4/week 5/week

32 Gallon 0 0 0 0 0

64 Gallon 0 0 0 0 0

96 Gallon 2 0 0 0 14

Commercial Bin Service Recipients


1-Yard 23 1 1 0 0

1.5-Yard 2 0 1 0 0

2-Yard 9 2 3 2 0

3-Yard 8 3 10 0 0

4-Yard 1 4 0 0 0

6-Yard 1 0 2 0 0


1-Yard 3 0 0 0 0

1.5-Yard 1 0 0 0 0

2-Yard 15 2 0 0 0

3-Yard 10 10 1 0 0

4-Yard 3 3 0 0 0

6-Yard 6 5 1 0 11

Yard Waste 1/week 2/week 3/week 4/week 5/week

1-Yard 1 0 0 0 0

2-Yard 0 0 0 0 0

3-Yard 2 0 0 0 0

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Carts Collected from CITY Facilities


20 Gallon 0 0 0 0 0

32 Gallon 9 12 15 0 37

64 Gallon 0 0 0 0 0

96 Gallon 0 0 0 0 0

Bins Collected from CITY Facilities

Garbage Facility 1/week 2/week 3/week 4/week 5/week

2-Yard HMB City Hall 1 0 0 0 0

3-Yard HMB Community Center 1 0 0 0 0

2-Yard HMB Fire Department 1 0 0 0 0

1-Yard HMB Library 0 1 0 0 0

3-Yard HMB Police Department 1 0 0 1 0

1-Yard Poplar Beach 0 0 0 2 0



2-Yard Redondo Beach 1 0 0 0 0

Recycle Facility 1/week 2/week 3/week 4/week 5/week

3-Yard HMB City Hall 1 0 0 0 0

4-Yard HMB Community Center 1 0 0 0 0

1-Yard HMB Library 0 1 0 0 0

2-Yard HMB Police Department 1 0 0 0 0

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Tonnage Data

Sector 2016 Tons

Residential

Residential Disposed (1) 2,163

Residential Recycled (2) 1,386

Residential Greenwaste Recycled (3) 1,519

Subtotal Residential Disposed 2,163

Subtotal Residential Recycling 2,905

Subtotal Residential 5,068

Commercial

Commercial Waste Disposed (4) 4,701

Commercial Compactor Waste Disposed (5) 515

Commercial Compactor Recycled (6) 170

Commercial Recycled (7) 1,020

Commercial Greenwaste/Organics Recycled (8) 224

Subtotal Commercial Disposed 5,215

Subtotal Commercial Recycled 1,414

Subtotal Commercial 6,629

Rolloff/Debris Box Disposed (9) 2,564

Rolloff/Debris Box Recycled (10) 452

Subtotal Rolloff/Debris Box Disposed 2,564

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Subtotal Rolloff/Debris Box Recycling 452

Subtotal Rolloff 3,017

Total

Total Disposed 9,942

Total Recycled 4,772

Total 14,714

Residential Recycling Rate 57%

Commercial Recycling Rate 21%

Rolloff/Debris Box Recycling Rate 15%

Total Recycling Rate 32%

The following table outlines the number of routes per line of business and crew members that

CONTRACTOR is proposing to provide the services required based on an 8-hour day:

Route Type Route (or

portion

of)

Crew Drive-

Bys per

day

Hours

per

route

per day

Residential Solid Waste 1.3 1 956 6.99

Residential Recycling 0.8 1 870 8.2

Residential Organics 0.6 1 1,103 9.4

Residential Bulky .2 1

Subtotal Residential 2.9 1 - -

Route Hours per Week

Total Multi-Family (MSW,

Recycling and Organics)

1.2 1 33.6

Commercial Solid Waste 0.2 1 20.2

Commercial Recycling and

Organics

0.4 1 19.5

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City Services 1.8 1 7.1

Total Multi-Family and

Commercial

0.2 1 86.4

Total Industrial Debris Box 0.2 1 7.4

Total 4.9 1 94.8

Through the use of routing software, Route Editor, in tandem with CONTRACTOR’s customer

management system, InfoPro, CONTRACTOR can ensure a thorough approach to routing to

enhance worker/public safety, create efficiencies, reduce carbon emissions and street wear

and tear. The integration of Route Editor and InfoPro will ensure the best routing plans for all

collection systems within the CITY. Because CONTRACTOR is the current service provider in

the CITY, CONTRACTOR does not anticipate any routing changes or disruption to customer’s

normal service schedule.

Collection Methodology

CONTRACTOR will offer the CITY collection methods for residential, multifamily, commercial

and industrial customers that provide high quality, efficient, cost-effective and customer

friendly services. These collection systems are explained in detail in the following sections.

Effective Routing is Key to Performance and Customer Service

CONTRACTOR has developed a routing program, Route Editor, that creates the most

effective, productive and efficient routing for our trucks. This system establishes a safe

pathway through the local streets, while also eliminating unnecessary crossover and

backtracking miles. This state-of-the-art program also maximizes fuel savings and minimizes

emissions.

Since all route modifications will be done using the Route Editor program, each customer

location will be geo-coded by location (located by GPS coordinates) and loaded into the

program. This software takes CONTRACTOR’s current operating metrics and service area

statistics and creates routes using this information. The Route Editor program takes into

account things like population density, landfill or transfer station trip times, historical operating

statistics, and material weight per home and truck capabilities to create the most efficient

routes. The system then tells CONTRACTOR the safest and efficient way to operate these

routes, eliminating potential safety hazards like left hand turns and backing. This program also

takes into consideration the cumulative weight on the truck and routes it to minimize truck

weights to help reduce wear and tear on local streets.

The vehicles/drivers will be equipped with a GPS tracking system, (PDV Connect), enabling

the operations team to determine vehicle location quickly, as well as providing drivers the tools

to report customer issues immediately and to submit supporting photographs directly to

dispatch that can be shared with customers. Dispatch will then add notes to the customer’s

account or escalate the issue to a supervisor. The customer service representatives can

access these notes and pictures and use them in their phone discussions with homeowners

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and businesses. Drivers are encouraged to take a pro-active approach to safety and customer

service, and this tool gives them the ability to do so.

Collection Vehicle Equipment Specifications

CONTRACTOR will service all customers – residential, multi-family and commercial – using:

Automated side loader (ASL) for residential, multi-family and commercial cart

customers;

Front-end load (FEL) vehicles to service multi-family and commercial bin customers;

Rear-end load (REL) vehicles to service residential, multifamily and commercial

customers; and

Debris Box vehicle for debris box and compactor customers.

CONTRACTOR has selected these vehicles for numerous reasons, including:

Vehicles have proven to be among the strongest, safest and lowest maintenance trucks

in the industry

ASL, FEL and REL vehicles will be used at the time of implementation on January 1,

2018 and replaced over a 2-5 year period.

First-hand local knowledge shows that the vehicle sizes and attributes are best suited

for the service area

Use of this equipment in Half Moon Bay and other cities in Northern California will

enable the sharing of common parts and factory-trained technicians within the network.

All collection vehicles are operated by a single driver. Each truck is painted in a uniform manner

in blue and features the CONTRACTOR logo. Each vehicle is also equipped with the GPS

tracking and onboard computer systems as outlined above.

Residential Collection - Automatic Side Loading (ASL) Vehicle

The ASL vehicle is a dual-side-drive, low-step three-axle model that facilitates easy ingress

and egress for the driver to the curbside. The low-entry cab design promotes safety, reduces

potential injury, and increases productivity. These vehicles are equipped with efficient

hydraulic systems that allow for compaction at idle speeds or even while on the move and a

large 5-cubic yard hopper that greatly reduces the chance of litter and spillage. All collection

vehicles will also be equipped with a remote camera that allows driver’s full visual

access to the field of operation. The ASL vehicle will run on low sulfur diesel fuel.

The ASL features a patented arm, which has an unmatched level of precision. The patented

vertical lift design moves the arm from ground-to-ground operation at 8-12 seconds, allowing

for maximum curbside pickup in less time.

The arm’s design feature prevents spillage, which saves driver time while also protecting the

environment. The arm’s design also minimizes truck rocking. Most automated truck

manufacturers have automated arms that begin picking up the cart container immediately,

which can mean the arm is extended nearly seven feet while supporting the weight of the

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container, causing the truck to rock while the contents are being dumped. With our trucks, the

arm is retracted for lifting, so the weight is over the suspension of the vehicle. This keeps the

truck from rocking, which can greatly reduce driver fatigue, injury, and spillage.

Multi Family & Commercial Collection - Front End Loading (FEL) Vehicle

CONTRACTOR will continue to provide bin service to multi-family and commercial customers

with FEL vehicles equipped with 40-cubic yard volume bodies. CONTRACTOR has selected

these vehicles for a number of reasons:

Supplier is a company that has proven to be among the strongest, safest and lowest

maintenance trucks in the industry.

CONTRACTOR’s first-hand local knowledge shows that this truck’s size and attributes

will “fit” every neighborhood we service, including hard-to-service accounts.

Use of this equipment currently in the CITY and other cities in Northern California will

enable the sharing of common parts and factory-trained technicians within the network.

Debris Box Collection Vehicle

CONTRACTOR will provide debris box and compactor service to customers using three axle

collection vehicles with a rail and hydraulic hoist system. These vehicles will service

commercial, industrial, construction and residential (temporary) customers that utilize debris

box or compactor services. These vehicles can service a variety of box sizes (10-40-yard

containers) and can maneuver in tight locations and varying terrain.

Rear-End Loading Vehicle

CONTRACTOR will continue to utilize a REL vehicle to collect on-call bulky items from

residential customers, in addition to solid waste from CITY containers and facilities and items

illegally dumped within the CITY. CONTRACTOR’s rear-end loader vehicle will exhibit the

following characteristics:

Increased compaction force with ability to crush up to 1,000 pounds of materials which

is especially needed for bulky items

Maximizes efficiency with 16-second pack cycle time that keeps the hopper clear,

saving time

Top-quality, abrasion-resistant steel featured in the hopper— the highest-wear area—

increasing durability

Cart Containers

CONTRACTOR enjoys a partnership with a vast network of national suppliers who

accommodate CONTRACTOR’s collection container needs with accuracy, efficiency,

durability and use of recycled material. CONTRACTOR proposes to purchase and deploy

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wheeled carts manufactured by SSI Schaefer Systems International, Inc. that are specially

designed to accommodate the fully automated collection system.

While performance of a fully automated wheeled cart can be measured in numerous ways,

CONTRACTOR gauges cart viability by a set of principal criteria: durability, functionality,

appearance, and most importantly, ease of customer use.

CONTRACTOR expects a cart placed into service should remain serviceable for its intended life

of 10 years, barring any extraordinary misuse or mistreatment. CONTRACTOR’s experience in

other cities has shown that a high level of container reliability has a positive impact on customer

satisfaction. CONTRACTOR will purchase solid waste carts black in color, blue for recycling and

green for organic materials as currently employed throughout the CITY.

The carts have a one-piece mold-in handle for easier customer handling and an attached lid

that seals the cart interior. The carts also contain approximately 30 percent post-consumer

materials and have a manufacturers’ warranty of 10 years. An adequate inventory of

replacement units will be available. Each cart will have an in-mold label regarding proper

materials, use and unacceptable materials.

Commercial Bins

Multi-family dwelling and commercial customers will be provided with metal container bins

made by Wastequip, one of CONTRACTOR’s reliable national suppliers. The bins are

designed for compatibility with CONTRACTOR's FEL vehicles and come in a range of sizes,

from 1-6 and 8 cubic yards. Most bins also have four heavy-duty wheels, are easily

maneuverable into position and have plastic lids. These containers have been proven the most

durable in what is typically the most punishing segment of a collection program. The average

life span of these containers is typically 10 years. Commercial solid waste bin containers will

be grey in color, blue for recycling and green for organic material.

Debris Boxes

Debris Box customers will be provided with metal containers made by Wastequip. The boxes

are designed for compatibility with CONTRACTOR’s debris box vehicles and come in a several

sizes, ranging from eight to 30 cubic yards. The average life span of these containers is

typically 10 or more years. CONTRACTOR does not provide compactors to customers. Debris

boxes will be blue in color.

Single-Family Dwelling Collection Services

CONTRACTOR intends to service all single-family carts using an automated side loader (ASL)

truck. The ASL is proven to retrieve and return carts in even the most hard-to-reach locations

such as narrow streets, courts and alleyways, enabling the industry’s most efficient, safe, and

environmentally responsible curbside automated collection services. The ASL is currently

being used successfully for collection of residential material in the CITY. CONTRACTOR will

use gray carts for residential solid waste collection.

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Single-Family Dwelling Solid Waste Collection Services

Residents will be offered the option of choosing either a 20, 32, or 64-gallon solid waste cart.

All carts will be purchased new.

CONTRACTOR will collect solid waste with one (1) used ASL Automators with Autocar chassis

and 30-cubic yard Heil body. The ASL vehicle will use low-sulfur diesel fuel. Each collection

vehicle is operated by a single driver and will be painted in a uniform manner in

CONTRACTOR blue, featuring the CONTRACTOR logo and company contact information.

The ASL cart collection methodology is fast and efficient and requires approximately 8 to 12

seconds completing the cycle (pick up cart, deposit contents, place cart back onto the

curbside) before the driver moves to the next stop. The curbside collection process is as

follows:

Driver pulls up to the curb.

Driver activates a toggle switch to extend the automated arm to the curbside container.

Driver activates another toggle switch to position the arm-grabbing mechanism and

takes hold of the container.

Driver operates the arm and brings the container to the body of the collection vehicle.

Driver operates the arm to activate the vertical lift that dumps the contents of the

container into the hopper. The vertical lift reverses and brings the container back to the

operating surface.

Driver operates the arm, grabs the container, and returns it to its original location at the

curb, and

The hydraulic mechanism within the body of the vehicle automatically compacts the

load within the truck body.

Keeping Your Curb and Street Clean

At each stop, the driver will also make sure that the following procedures are followed:

Cart container is returned to the curb in an upright position.

Lid on cart container is closed.

Any spillage is picked up and deposited in the collection vehicle.

Report any service issues, i.e., damaged containers; carts not out; over loaded cart.

Single-Family Dwelling Weekly Single-Stream Recycling Collection

CONTRACTOR will offer all single-family customers weekly, fully automated single-stream

recycling collection services. Recycling carts will be serviced with the same equipment and in

the manner as residential solid waste carts.

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CONTRACTOR will collect recycling carts with one used ASL Automators vehicle with Autocar

chassis and 30-cubic yard McNeilus body. The ASL vehicle will use low sulfur diesel fuel designed

to reduce emissions. The collection vehicle is operated by a single driver and will be painted in a

uniform manner in CONTRACTOR blue, featuring the CONTRACTOR logo and company contact

information.

Residents will be offered one (1) 64-gallon recycling cart. Carts will have an in-mold label with

single-stream recycling information and instructions.

Acceptable Material for Residential Recycling

The list of acceptable and non-acceptable recyclable materials collected from the CITY’s

residents that will be processed at Newby Island Resource Recovery facility in San Jose are

provided below. Carts will have an in-mold label with single-stream recycling information and

instructions.

Accepted Recyclable Materials

Clean paper (including newspapers & mixed papers)

Cardboard & chipboard

Paper milk cartons

Glass bottles & jars

Rigid plastics

Aluminum & scrap metals

Steel, tin & bi-metal cans

Aseptic beverage boxes

Clean Expanded Polystyrene block packing materials

PLA bioplastic bottles

Plastic bags & film

Black plastic

All other materials for which a viable market can be found

Recyclable Materials Not Accepted

Solid waste

Food waste & food soiled paper

Treated wood

Pallets

Landscape waste

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Restroom waste

Hazardous or medical waste

Construction debris

Concrete, dirt & asphalt

CONTRACTOR is committed to keeping contamination in recyclables at the absolutely lowest

level possible. The local management team will collaborate with CITY staff to develop

proactive public education programs to ensure the lowest level of contamination and the

highest levels of diversion. Working with individual customer to reduce contamination in the

materials set out for collection is the one of the keys to collecting clean loads. CONTRACTOR

believes the success of a recycling program is due to consistent interaction with the individual

customer. Customer education and CONTRACTOR’s involvement is vital in meeting and

exceeding diversion requirements and establishing solid sustainability practices. By ensuring

customers receive appropriate and easily accessible educational material we are able to

deliver clean material to the Newby Island Resource Recovery Park for processing. There will

be periodic and random cart and bin checks by in-field supervisors to help identify

contamination prior to collection.

Single-Family Dwelling Organics Collection – Base Service (Food Waste and Yard Trimmings)

CONTRACTOR will offer all residential customers weekly, automated collection of accepted

organic materials (food waste and yard trimmings). Organics carts will be serviced with the

same equipment and manner as residential solid waste and recycling carts.

CONTRACTOR will collect organics material carts with one (1) used ASL Automators with

Autocar chassis and 30-cubic yard McNeilus body. The ASL vehicle will use low sulfur diesel

fuel designed to reduce emissions. Each collection vehicle is operated by a single driver and

will be painted in a uniform manner in CONTRACTOR blue, featuring the CONTRACTOR

logo and company contact information.

Residents will be offered a 96-gallon organics cart as part of the base service. The 96-gallon

cart will be the only size available. Carts will have an in-mold label with organics recycling

information and instructions.

Single-Family Dwelling Organics Collection: Acceptable Organics Materials

Residential customers will be able to place the following types and size of organics materials

for collection:

“Organics” means those discarded materials that will decompose and/or putrefy,

including:

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o green trimmings, grass, weeds, leaves, prunings, branches, dead plants,

brush, tree trimmings, dead trees, small pieces of unpainted and untreated

wood

o all kitchen and table food waste, and animal, or vegetable, fruit, grain, dairy

or fish waste that attends or results from the storage, preparation, cooking or

handling of foodstuffs, with the exception of animal excrement,

o paper waste contaminated with putrescible material, and

o biodegradable food service ware designed to disintegrate and biodegrade

quickly

Organics placed for collection may not exceed six (6) inches in diameter and three (3)

feet in length and must fit within the Contractor-provided Container

Holiday trees will be collected curbside for a specified period of time at no additional

charge to the customer in over a three-week period on the regularly scheduled

collection day annually.

CONTRACTOR will also provide residents with a 1.5-gallon Kitchen Food Waste Pail, as

approved by CITY, for in-home use.

Residential On-Call Bulky Item Clean-up Events

CONTRACTOR’s goal is to increase household diversion rates while being responsive to

customer needs. Residents will have the opportunity to request two (2) on-call bulky item

clean-ups per calendar year on the regularly scheduled pick-up day. To perform this service,

CONTRACTOR will operate either a REL truck, a flatbed truck, or a 20’ – 28’ box truck to

collect large appliances and other recyclable materials. Residents will be instructed to leave

materials at the curb on their collection day by 6 a.m. on their collection day.

This service includes the on-call collection of Bulky Waste (such as furniture, carpets,

mattresses, wood or organics, discarded household goods), E-Waste and U-Waste of three

(3) cubic yards per collection, up to two (2) times per annual year for SFD Service Recipients

at no additional charge, at the request of the SFD Service Recipient. Bulky Waste Collection

Services will be provided within five (5) days of the request. Customers will be able to use the

bulky item collection request form on CONTRACTOR's local website or call customer service

to schedule a pick-up, at which time they are asked for their name, service address, billing

address (if different) and daytime phone number, as well as what types of items they will be

setting out for collection.

Bulky item collection will occur on regularly scheduled collection days with tracking managed

via our InfoPro system. Once an on-call appointment is scheduled, the customer will receive

a mailed brochure confirming collection date and detailing reuse options. It will also include

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set-out guidelines and provide a visual aid to support the guidelines and accepted materials

list.

Back Yard and Side Yard Collection

To meet the needs of the senior and disabled customers in the CITY, CONTRACTOR will

provide Back Yard/ Side Yard service to any resident who is physically unable to transport

their solid waste, recycle and organic carts to the curb. Eligibility for this service will be

determined by the CITY.

Used Motor Oil Collection and Recycling

CONTRACTOR has developed an environmentally responsible and efficient process for

curbside collection of used motor oil. On regular recycling days, drivers will pick up used motor

oil that are placed in approved, sealed containers (e.g., milk carton or similar container).

Customers may place up to two 1-gallon plastic jugs with screw-cap lids for used motor oil at

the curb per week on their collection day. Specific directions for proper containment of used

motor oil will be provided to all single-family customers.

At the curbside point of collection, drivers will exit the vehicle, pick up the used oil containers

and deposit them into a special holding container on the body of the vehicle for emptying and

recycling.

Household, and Cell Phone Battery Collection and Recycling

CONTRACTOR will collect old household and cell phone batteries placed on top of the

recycling cart in customer provided clear zip-lock plastic bags.

Acceptable batteries for collection include:

Batteries that bear the three (3) chasing arrows or a comparable recycling symbol

Nickel-cadmium batteries labeled “nickel-cadmium” or “Ni-Cad,” with the phrase

“Battery Must Be Recycled Or Disposed Of Properly.”

Regulated lead-acid batteries labeled “Pb” or with words “Lead, Return, and “Recycle”

and if the regulated batteries are sealed, the phrase “Battery Must Be Recycled.”

Rechargeable consumer products containing non-removable Ni-Cad batteries must be

labeled with the phrase “Contains Nickel-Cadmium Battery. Battery Must Be Recycled

Or Disposed of Properly.”

Rechargeable consumer products containing non-removable regulated lead-acid

batteries must be labeled with the phase “Contains Sealed Lead Battery, Battery Must

Be Recycled.”

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HHW Collection and Recycling

CONTRACTOR will include two (2) annual HHW including E-waste and U-waste materials

drop-off collection events within CITY limits for CITY residents. This service will be provided in

addition to the curbside collection of motor oil, batteries and phones for SFD service recipients.

Multi-Family Collection Services

In CONTRACTOR’s experience, serving MFDs in the CITY demands an innovative

combination of programs and services. Therefore, CONTRACTOR offers an array of cart and

container sizes to customize service to different sizes and needs of MFDs. CONTRACTOR

anticipates the utilization of vehicles as described in the Commercial Solid Waste Collection

Section that follows as multi-family customers are integrated into commercial routes.

CONTRACTOR may integrate MFD cart collection onto existing residential collection routes

(please refer to the curbside collection process as outlined above for single-family collection).

In all cases, CONTRACTOR will identify the correct equipment to service multi-family

complexes based on individual location and unique characteristics. If the complex requests

bin service, they will be offered 1- 6-yard capacity solid waste bins and/or 10- to 40-yard

capacity debris boxes. As a baseline for MFDs, CONTRACTOR will provide no less than 96

gallons of container capacity for every five units in the complex equating to approximately 20

gallons per resident.

CONTRACTOR will service multi-family solid waste carts, bins, drop boxes or compactors at

least once per week. In all cases, drivers are familiar with these areas but are also trained to

ensure the utmost in personal safety and property protection, including awareness of traffic

stops, distance to parked cars and other objects, overhead power lines, low-hanging trees, and

undulated street surfaces. CONTRACTOR’s drivers take these factors into consideration to

ensure the most efficient and safe operations in multi-family complexes and surrounding

neighborhoods.

CONTRACTOR will implement the same equipment and methodology used in single-family

cart collection when servicing MFD trash cart customers. The same equipment and

methodology will be implemented as with commercial bin collection when servicing MFD solid

waste bin customers since these customers are integrated into commercial routes.

The collection methodology for MFD bin customers for solid waste is intended to efficiently

collect bin contents with as few driver steps as possible, while ensuring customer safety,

efficiency and limited spillage. Using a front-end load collection vehicle, CONTRACTOR’s bin

collection process is as follows:

Driver arrives at address.

Multi-family bin is located so the driver can approach the bin and begin the lifting

process. If necessary, the driver will exit the vehicle, unlock/open a gate, and position

the bin for lifting.

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Once the bin is properly and safely positioned for lifting, the driver moves the vehicle

into position, maneuvers the forks into the bin slots, lifts the bin automatically, and

deposits the contents of the bin into the body of the truck.

Driver controls the forks to slowly lower the bin back to its standing position.

When the bin has been properly emptied, the driver either leaves the location or exits

the vehicle to physically move the bin back into its proper area and, if applicable, closes

and relocks the gate.

In all multi-family collections, drivers will ensure the lid of the bin is closed before leaving the

area and will clean up any litter as a result of the collection activity. CONTRACTOR's

operations team will factor in different collection methods at each stop to accommodate various

service requirements.

CONTRACTOR will collect MFD solid waste with one used (less than 5 years old at start of

contract) Autocar ACX 64 standard front load trucks with a 40-cubic yard Heil body. Each FEL

collection vehicle is operated by a single driver. All vehicles will be painted in a uniform manner

in CONTRACTOR blue, featuring the CONTRACTOR logo and company contact information.

Multi-Family Dwelling Weekly Single-Stream Recycling Collection

CONTRACTOR will offer weekly single-stream recycling services as part of its core services

for all MFD customers. Each MFD Service Recipient will receive the equivalent volume of one

(1) 32-gallon Recycling Cart per unit in the MFD complex as part of the base service.

CONTRACTOR will be responsible for identifying the number of units with the MFD property

manager and determining the correct equivalent configuration of Carts and/or Bins). Cart

options include 64 or 96-gallon capacity or bins ranging in size from 1-6 cubic yard containers

and debris boxes ranging from 10-40 cubic yards at subscription rates.

The same equipment and methodology used in single-family cart collection will be

implemented when servicing MFD recycling cart customers. MFD recycling front-load bin

customers will be serviced using the same methodology as MFD trash front-load bin customers

and will be integrated into commercial routes.

In order to reach MFD residents who do not directly pay a solid waste bill, CONTRACTOR will

create and deliver information to property managers with the end goal of distributing to tenants.

This outreach to MFD customers is consistent with CONTRACTOR’s commitment to increase

diversion. As with single-family customers, MFD customers will be able to comingle all

accepted recyclable material into the appropriate recycle cart(s) or bin(s). These recycle

containers will be collected at a minimum of once per week depending on the service level.

Each FEL collection vehicle is operated by a single driver. All vehicles will be painted in a

uniform manner in CONTRACTOR blue, featuring the CONTRACTOR logo and company

contact information

Multi-Family Dwelling Organic Material Collection

CONTRACTOR will offer weekly organics material (food waste and yard trimmings) recycling

services for MFD customers as part of the base programmatic services at no additional cost.

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MFD customers will receive the equivalent volume of one (1) 20-gallon Organic Waste Cart

per unit in the MFD complex at no additional cost as part of the base service. The same

equipment and methodology used in MFD solid waste and recycling cart collection will be

implemented when servicing organics carts. CONTRACTOR will also provide each multi-family

unit customer with an in-home Kitchen Food Waste Pail to those complexes that participate in

the program.

Commercial Solid Waste, Recycling and Organics Collection

CONTRACTOR will offer cart, bin, debris box and compactor collection services to commercial

solid waste, recycling and organic material customers depending on the customer’s specific

needs. Service will be provided using collection trucks manned by one driver similar to services

offered for MFDs. Commercial solid waste, recycling and organics customers will be given a

choice of subscription service levels:

Commercial customers may select solid waste cart(s) 20, 32, 64 and 96 gal; 1-6 yard-capacity

solid waste bins or 10-yard to 40-yard capacity open debris or compactor boxes. For recycling

collection services, commercial customers will receive one-96-gallon cart as the default container;

or 1-6 yard-capacity recycling bins or 10-yard to 40-yard capacity open debris or compactor boxes.

Commercial customers will be serviced at least once (1) per week. Commercial carts will be

serviced with an ASL vehicle. Please refer to Single-Family dwelling for description of vehicles

and collection methodology.

CONTRACTOR’s debris and compactor customers will be serviced with 3-axle debris box trucks

capable of transporting containers ranging in capacity from 10-to-40 cubic yards. Compactor

service will be available using compactors ranging from 10- to 40-yards capacity.

Commercial Organics and Food Waste Collection

CONTRACTOR will offer weekly food waste recycling services for all commercial accounts

based on customer need. Customers will be provided the option to receive various size option

carts for food waste collection. Customers will receive a 32-gallon cart as part of their bundled

service, or additional carts or bins (1-3 cubic yards) at subscription costs, depending on their

needs, and have the option of receiving service up to five days per week.

Debris Box and Compactor Collection Methodology and Procedures

Debris box and compactor collections may be regularly scheduled, temporary or on-call.

Nearly all open-top debris box business is of a temporary customer nature. These large

containers usually have C&D materials from deconstruction projects within the CITY and are

not covered under the Franchise Agreement; however, CONTRACTOR will track the tonnage

and provide this information to the City per the City’s permitting requirements. Recycling of

C&D loads typically amounts to 65% of the tonnage handled.

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Conversely, compactor units are typically owned by the customer and will be serviced by

CONTRACTOR on a regular schedule basis. These accounts are permanent and fully covered

under the Franchise Agreement.

Collection services are accomplished with debris box trucks and debris boxes and/or

compactors in sizes ranging from 10 to 40 cubic yards and a crew of one highly trained,

professional driver.

To ensure CONTRACTOR debris box drivers do not encounter overweight boxes, and to

maximize diversion, customer service representatives will query customers when setting up

the service as to the type and amount of waste materials they plan to discard.

Debris box solid waste loads, recyclables, construction and demolition and organic loads are

direct hauled to the designated facilities for disposal, processing, recycling or composting.

Scale technology is utilized on the debris box vehicles to eliminate the possibility of overweight

compactors/debris boxes, which can present a safety problem.

Debris boxes will be made available to customers of every generator type in a full range of

sizes. CONTRACTOR customer service representatives will help customers correctly size

their containers to maximize diversion and mitigate weight issues. Hauling companies

generally provide a link between customers who desire compactors and compactor

manufacturers and CONTRACTOR has well established compactor manufacturer connections

that CONTRACTOR will provide to the customer upon request. Customers generally either

lease or purchase a compactor.

CONTRACTOR will service debris boxes and compactors with one used Autocar ACX 64

standard roll off trucks with Amrep 22’ hoist. Each vehicle is operated by a single driver. All

vehicles will be painted in a uniform manner in CONTRACTOR blue, featuring the

CONTRACTOR logo and company contact information.

Debris Box Collection Methodology

The driver activity methodology for debris box collection services is as follows:

The driver arrives at the service address and checks the route sheet or work order for

any notes pertaining to that customer, such as information pertaining to the customer

contact, disconnecting coupling lines, etc.

The driver performs a safety check to ensure there is proper clearance and access to

the container and that site activity at the collection point is zero. If conditions are

questionable, the driver will talk to a site manager or will call the route supervisor to the

site to act as a spotter.

The driver carefully backs up to the container and raises the truck’s hydraulic rails.

The driver dismounts the vehicle and locks the coupling device to the container, double

checks it to ensure it is secure.

For compactors, the driver then disconnects the units’ electrical/hydraulic couplings.

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The driver remounts the vehicle and engages its controls to pull the container onto the

truck rails. When the rail reaches the locking stops, the driver lowers the rails.

All CONTRACTOR debris box trucks are equipped with automatic tarps. At this point,

the tarp mechanism is engaged to cover the load if the box is not covered or enclosed.

The driver checks the area for any litter spilled during collection and cleans the area if

litter is found.

The driver transports drop-boxes and compactors to the designated transfer station

loads to the recycling facility, and organic waste loads to the compost facility, and

obtains a weight ticket at the scale house.

The driver signs off on the work order that the job is complete, and files it away with

the weight ticket in the company-provided file/clipboard. (All paperwork is turned into

dispatch during the check in procedure at the close of the day.)

The driver repeats the process for the next work order or route sheet until all work is

complete for the day. CONTRACTOR’s collection methodology for commercial debris

box and compactor customers efficiently collects containers providing the utmost

customer and public safety, while providing maximum efficiency and avoiding waste.

Special collection conditions such as nearby parked cars, narrow public parking areas and

alleyways may require modified methodologies to efficiently pick up containers. The driver may

be required to conduct a 3-point turn within a public parking area to maneuver the truck for the

best position on the egress side of the street. By the very nature of debris box collection, the

vehicle will need to back into a street or public parking area in order to line up with the box and

to position the container for collection.

Street Sweeping Services

The following section details CONTRACTOR’s plan to street sweeping services within the

CITY.

CONTRACTOR's drivers and administrative staff are familiar with every detail and every

special circumstance surrounding sweeping in CITY. CONTRACTOR has established a

system, which responds to the requirements to keep the streets as debris-free as possible.

With continuous, extensive outreach efforts, CONTRACTOR will touch every customer to

ensure they understand the importance of moving cars off the street during the scheduled day

of sweeping.

Street Sweeping Vehicle

CONTRACTOR will provide street sweeping services with a new street sweeping vehicle with

the following specifications:

2016 Isuzo NQR vehicle

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TYMCO 435chassis with 132” wheel base

2016 4HEI-FC clean diesel engine (EGR, diesel particulate filter, electronic engine

controls.)

144” sweeping path with recirculating vacuum head

Duel side broom assembly

8 cubic yard capacity

CONTRACTOR will dispose of collected sweeping material at the nearby Ox Mountain Landfill

through direct haul.

Street Sweeping Services Metrics

The following table illustrates the basic street sweeping metrics will be performed on a

continuous basis. These statistics include:

Monthly sweeping of all residential streets

Weekly sweeping of downtown areas.

Functional Type # of Sections Centerline Miles Lane Miles

Arterial 15 2.46 4.93

Collector 26 4.13 7.97

Residential 178 21.3 42.17

Other 5 0.17 0.34

NCR & other FCs 1 0.01 0.03

Total 225 27.98 55.43

Total (Managed Only) 224 27.97 55.40

Street Sweeping Performance Standards

CONTRACTOR will provide a complete sweep of all curb miles on all publicly maintained Half

Moon Bay Streets. Within any curb mile, CONTRACTOR will be responsible for sweeping all

curbs including Median Islands and the corners from any cross street intersecting the subject

street. CONTRACTOR will obey all laws governing the operation of the sweepers on a public

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street, and will perform its operations so that sweepers are traversing their routes in the normal

direction of traffic.

CONTRACTOR will furnish all materials, labor, supervision and equipment necessary to

perform all work required for regularly scheduled sweeping of all public streets in Half Moon

Bay at the frequency and within the time frames described in in Agreement.

Within 90 days of the Effective Date of the Agreement, CONTRACTOR will adopt an approved

street sweeping schedule that follows the approved refuse collection schedule, including

adjustments for Holidays. The sweep will occur within two (2) Work Days following refuse

collection.

CONTRACTOR will also provide an annual 500-hour time bank for unscheduled sweeping and

related services as assigned by the CITY upon 24-hour notice. Emergency incidents including

vehicle accidents, illicit discharges, and other emergencies will be responded to within two

hours or less depending on the severity of the incident.

CONTRACTOR will provide the Street Sweeping Service route maps to the CITY

representative upon request, within ninety (90) days from receipt of written notice. The maps

will be provided in a format that can be posted to the CITY website.

Sweeping Methods

Unsweepable items that impede sweeping, such as palm fronds, rocks, trash and debris will

be removed from the sweeping path and properly disposed of by CONTRACTOR rather than

driving around them. Items that impede sweeping and are immovable such as construction

debris and impaired vertical or horizontal clearance by tree limbs will be reported to the CITY

immediately for correction. CONTRACTOR is not responsible for areas missed due to parked

cars or other personal property.

Sweeping will include the removal of all sand, gravel, dirt, litter, vegetation, and any and all

other debris that accumulates between sweeps. Curb lines will be swept along both sides of

the roadway, or to the edge of pavement where no curb exists, along all curbs on raised

medians, over all portions of painted medians, painted left and right turn pockets, and all

intersection cross gutters.

Sweeping will normally require one pass over an area. CONTRACTOR will make additional

passes or make such extra effort required to adequately clean the street to the satisfaction of

the CITY. Extra effort will be required when sweeping equipment leaves a dirt/silt smear in its

swept path. CONTRACTOR will obtain water services from the appropriate water utility or

CITY, if deemed appropriate, for the water necessary in the street sweeping operation, and

the cost of the water will be borne by the company. When possible, CONTRACTOR will use

reclaimed tertiary recycled water.

CONTRACTOR will operate the sweeper at a speed of not more than five (5) miles per hour

in residential areas and eight (8) miles per hour in commercial areas when sweeping or when

the sweeper brooms are down, unless we can demonstrate that the sweeper can operate

efficiently and safely at a higher speed.

CONTRACTOR will sweep a path, with all brooms down, with a width of not less than eight (8)

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width. The path will begin at the face of the curb, and include the flow line of the gutter. Unless

blocked by parked cars, or collection carts, the face of the curb and gutter will always be

included within the sweeper path. On those residential streets with no curb, the width of the

sweeper path will be not less than eight (8) feet measured from the edge of the pavement

toward the center of the street.

Street Sweeping Hours of Service Residential Streets

CONTRACTOR will provide Street Sweeping Service on residential streets commencing no

earlier than 6:00 a.m. and terminating no later than 4:00 p.m. Monday-Friday. Street Sweeping

Services will take place five days per week. The hours, days, or both of service may be

extended due to extraordinary circumstances or conditions with the prior written consent of the

CITY Representative. Sweeping in residential areas will be coordinated with Collection

Services to ensure that sweeping occurs after collection of all Carts has been completed on a

specific street.

Commercial Streets

CONTRACTOR will provide Street Sweeping Service on commercial streets commencing no

earlier than 2:00 a.m. and terminate no later than 6:00 a.m. Monday-Friday. Street Sweeping

Service will take place six days per week. The hours, days, or both of service may be extended

due to extraordinary circumstances or conditions with the prior written consent of the CITY

Representative.

Vehicle Maintenance

Preventative Maintenance Program for Collection Vehicles and Equipment

CONTRACTOR is dedicated to owning the best running, safest and most environmentally

friendly vehicles and are able to achieve this through a rigorous maintenance program called

OneFleet. With standardized procedures and consistent execution, CONTRACTOR provides

the best-in-class fleet management system, which gives customers improved reliability and

fleet availability.

There are six pillars to OneFleet:

1. Preventive Maintenance (PM)

PMs are the hallmark of OneFleet. CONTRACTOR prescribes six levels of PM activity (A-F)

at varying truck hour markers.

A. Every 150 hours (full inspection, including nuts/bolts/ fluids/no cracks)

B. Every 450 hours (A plus, full lubrication service)

C. Every 1350 hours (transmission, front suspension, air-to-air, hydraulics, CNG inspection)

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D. Every 2700 hours (A, B, C plus drain transmission, new filters and fluids; crank

ventilation filters; exhaust system inspection/service, cleaning, catalyst

inspection/service)

E. Every 5400 hours (A, B, C, D plus differential fluids, DPF system, overhead valve adjustment, fuel systems inspection/service)

F. Every Year – Annual Federal Safety Inspection

2. Planning and Scheduling

Standardized planning and scheduling leads to increased shop capacity and/or reduced fleet

down time. By planning preventative repairs, CONTRACTOR has parts on hand and

mechanics scheduled during off-route hours. This keeps the shop from being reactive and

unprepared. CONTRACTOR prioritizes ticket items to adequately meet operational needs –

making sure the fleet is ready at route time.

3. Workplace Organization

A clean and organized workplace provides a safer and more efficient environment.

CONTRACTOR manages the Five S’s:

Sort

Straighten

Sanitize

Standardize

Sustain

4. Repair Quality and Training

OneFleet initiatives are only as strong as the training provided to the technicians. Quality Tech

Training is our mantra – from on the job training to formal classroom programs.

5. Driver Practices

Joint accountability and proper communication between maintenance crews and operations

personnel (drivers and supervisors) fosters fewer unscheduled repairs and breakdowns. Each

day, drivers:

Perform a pre/post-trip driver quality control inspection

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Ensure that any issues they identify are accurately communicated to the shop

Ensure that customer & route expectations are understood in the mornings.

6. Parts Management

The right part at the right time is critical to maintaining a fleet. With proper parts management,

parts are on hand for all scheduled repairs, which decreases truck and labor down or delay

time. Integral to the parts maintenance program is a maintenance bay, floor and shelves are

clean and orderly. With proper scheduling, parts are staged on carts in advance of a

technician’s arrival.

The bottom-line benefit of OneFleet is the positive impact to customers. CONTRACTOR

begins the day (everyday) with a reliable fleet – both operationally and environmentally.

Vehicle Inspection Reports

Key to the preventive maintenance program is daily completion of vehicle inspection reports.

This is done by the collection vehicle’s assigned CDL driver and includes both a pre-trip

inspection and post-trip inspection.

Drivers check fluid levels, lights, tires and other safety related areas of their truck and

indicate on the inspection report any defects or deficiencies found that day.

Shop personnel review the report and check any items marked by the driver as being

questionable or problematic.

Mechanics then make any needed repairs before the vehicle returns to the route.

Furthermore, each vehicle undergoes a through and comprehensive preventative

maintenance inspection (PMI) every 150 hours of service.

This inspection is conducted by a trained and certified brake inspector, according to

USDOT requirements.

Preventative Maintenance Program

Each vehicle is inspected from the top to the bottom and the front to the rear including, but not

limited to; tires, air pressure, brakes, air system, safety camera system, gauges, engine,

cooling system, hydraulic system, batteries, road tested and general overall equipment

operation. The vehicle is thoroughly lubricated and fluids sampled and changed if required. If

repairs are needed, all priority repairs are completed prior to the vehicle being returned to

service and repairs that can be, are scheduled to be completed at the next service.

Preventative Maintenance Inspections (PMI) are set at different levels, ranging from PMI-A to

PMI-E. Each level is an increasingly more detailed inspection and/or requires different fluids

to be changed e.g., oil, hydraulic, coolant, differential, etc. Once a year each vehicle is given

a complete annual inspection in accordance with 49 CFR 396. Adherence to these programs

reduces downtime and road calls which correspondingly increase customer satisfaction due

to on time service and driver morale.

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Vehicle Appearance

It is a fact that vehicles that are clean in appearance are usually well-maintained as well.

CONTRACTOR washes its collection vehicles weekly, utilizing biodegradable cleansing

products, high and low-pressure washers using a brush. Truck washings will comply with

BMP’s governing storm water management.

Safety Overview

Safety is CONTRACTOR’s highest priority. CONTRACTOR created a strict policy of safety

protocols with supporting infrastructure, where employees are trained to think, choose, and

work within a training framework designed for safety. Safety is CONTRACTOR's portal for the

achievement of exceptional customer service, and is viewed as the responsibility of all

employees. CONTRACTOR will take every step to ensure safety in the administrative offices,

operations yards, on collection routes, and at transfer/recycling facilities.

CONTRACTOR's excellent safety record is achieved by the clear system of safety checks and

balances employed, safety policies and procedures, and sound decision-making used when

hiring, combined with the active retention of the very best employees.

New employees are required to attend and pass a new employee orientation/safety training

class. In this class, company policies and standards are fully explained. These include:

CONTRACTOR’s alcohol and drug-free workplace;

DOT requirements; personal protective equipment standards;

Operation and care of equipment; injury and accident reporting procedures;

Hazardous communications procedures; spill prevention and contamination training;

Collection service standards;

Recycling and waste contamination communication procedures, service reporting and

paperwork procedures.

New drivers typically receive four weeks of training prior to being allowed to operate a vehicle

without on board supervision. This training is conducted by a full time Driver Safety Trainer

employed by the Northern California Area office in Richmond.

Primary Safety Initiatives

10-Key Safety Audit

The 10-Key Safety Audit is one of the CONTRACTOR’s primary safety tools. It is used to

measure the culture within CONTRACTOR’s divisions through the thorough examination of 10

key areas related to management’s effectiveness in leading their team’s safety attitude.

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The ten key areas are:

General Manager Management

General Manager Involvement

Hiring

Vehicle Specifications

Hours of Service

Safe Actions for Excellence (CONTRACTOR’s general safety handbook)

Preventive Maintenance

Employee Recognition and Discipline

CONTRACTOR Standards and Policies

Claims Management

Under each of the above key areas, there are sub-topics that drill down to the core of the safety

culture. Audits are performed by regional safety staff, and take over three days to complete.

The process includes: employee interviews and observations; record and program reviews;

equipment and facility inspections; and process reviews with the leadership team. Upon

completion of the audit, a closing conference is conducted with the local leadership team as

well as regional and corporate safety personnel. The leadership team receives a verbal and

written report on each item listed, along with recommendations and action items for future

growth. The final report is made available to leadership at all levels through an on-line reporting

system.

Weekly Safety Conference Call

Safety topics including local safety-related experiences are discussed for learning purposes.

Daily Route Observations

Field supervisors ensure services are delivered in a safe manner and take the opportunity to

counsel and interact with drivers on a regular basis through.

Monthly Safety Alerts

CONTRACTOR’s regional and corporate headquarters safety departments send out alerts on

various safety topics and safety related experience across the country that to bring awareness

and education to CONTRACTOR’s employees.

Not on My Watch

This is a training video conveying CONTRACTOR's employees’ responsibility to take personal

ownership in safety.

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Focus-Six Program

This innovative program is designed to bring drivers’ attention to the six types of accidents that

cause the greatest human tragedy and most disruption to operations. These six categories

are:

Intersections;

Employees;

Rear Collisions;

Rollovers;

Pedestrians; and

Backing.

Also included are DVDs, posters and discussion points for training.

Weekly Safety Tool Box

CONTRACTOR has a tremendous on-line safety program for managers to access. One of the

outstanding features of this resource is its comprehensive list of topics for weekly safety

meetings. For each of the dozens of topics listed is a detailed initiative to guide the presentation

of the topic to workers.

Dedicated to Safety - Employee Safety Award Program

This is a safety incentive program designed to motivate employees to achieve greater levels

of safety through monthly and annual awards. This program has proven effective in keeping

employees focused on safety and reducing accidents. Employees enrolled in the program

receive vouchers each month if they have not had one of the following: a preventable accident;

a lost-time injury; or a safety-related corrective action.

Additional Driver Requirements

Driver Appearance and Compliance with All Applicable Rules, Regulations and Policies

CONTRACTOR drivers will wear identification and a clean uniform each day. Drivers will at all

times have on their person a valid California Driver License and medical card. Medical cards

are good for two years and dictate that drivers must have passed a physical examination to

obtain one. Drivers will behave responsibly and professionally, and will comply with all

applicable Federal, State and Local regulations and laws governing any and all aspects of their

work for CONTRACTOR.

Zero Tolerance Safety Guidelines

These guidelines list unsafe practices that will absolutely not be tolerated by CONTRACTOR.

An example of such an unsafe practice is “Refusal or failure to use appropriate personal

protective equipment.” We believe that setting expectations high and clearly stating behaviors

and incidents that will trigger disciplinary action at the inception of an individual’s employment

creates the best work force possible.

Progressive Discipline Policy

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CONTRACTOR strongly believes in developing and mentoring its employees. When it is

necessary to administer corrective action, every effort is made to correct the behavior by

coaching and/or retraining the employee as prescribed by the Collective Bargaining

Agreement. Progressive discipline is used only when the behavior has not been corrected

through coaching efforts. Progressive discipline is administered as follows:

1st Offense: Verbal Warning

2nd Offense: Written Warning

3rd Offense: 2nd Written Warning with Suspension

4th Offense: Discharge of Employment.

Employees may be immediately discharged on grounds of dishonesty; recklessness; gross

negligence; misrepresentation related to sick leave; failure to report an accident or injury; gross

insubordination; abuse of customers or other persons; possession of firearms; criminal

conduct; violation of CONTRACTOR’s Alcohol and Drug-Free Workplace and Substance

Abuse policy; and/ or if the removal of an employee is demanded by a municipality or

government body. In the case of a safety violation or any accident, the 1st Offense step (verbal

warning) is always skipped and a written warning is issued immediately.

Alcohol and Drug Testing

Alcohol and drug testing are performed per the State Department of Transportation’s testing

procedures under the following circumstances:

Pre-Employment

Post-Accident

Random

Reasonable Suspicion

Return-to-Work

3413

EXHIBIT 8 CUSTOMER SERVICE PLAN

Customer Service Location and Hours of Operation

CONTRACTOR’s customer service center will be located at: Republic Services, 1680

Edgeworth Avenue Daly City, CA 94015. CONTRACTOR’s call center will be available from 8

a.m. to 5 p.m. In addition to these hours of operations, customers in the CITY benefit from

CONTRACTOR’s after-hours response (voicemail) system. By utilizing this system, residents

can request service by leaving a message and CONTRACTOR’s staff will respond to the

request the next business day. In addition to the after-hours response system, customers also

have the ability to reach CONTRACTOR via CONTRACTOR maintained website on a 24/7

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basis. Through the easy to use website, customers have the ability to quickly and easily contact

CONTRACTOR to ask questions or request services, such as an extra pick up or bulky item

collection, sign-up for online bill pay, download public education materials and much more. Any

requests made are responded to and processed within twenty-four hours of receipt.

CONTRACTOR’s self-service options are designed to improve overall response and resolution

to customer inquiries and needs anytime, anywhere with the least amount of customer

inconvenience as possible.

CONTRACTOR currently employs local CSRs that are multilingual in Spanish and also has a

language line service capable of translating over 100 other languages, which we will continue

to have. CONTRACTOR's CSRs are given a four-week training program to educate them on

all aspects of our business. They complete ride-alongs with drivers, spend time with

dispatchers, maintenance, sales and operations. Then they are trained on each city contract

to ensure we are in compliance and deliver superior customer service to those residents’

specific needs. Ongoing training includes the following:

Strategies for handling common collection and billing questions are discussed.

Positioning and active listening are demonstrated.

Ongoing on-line training for system enhancements, safety, processes and procedures.

CSRs have easy access to CITY-specific information to ensure efficient, effective transaction

management and they are empowered to make decisions to create win/win solutions for our

customers and our business. Each CSR is also monitored for call quality and is recognized for

things done well and coached in areas of opportunity.

Customer Management System

CONTRACTOR’s customer management system, InfoPro, is a fully integrated system that

provides the information base in order to operate the hauling divisions on a day-to-day basis.

This system has been programmed entirely in house, with a platform of the IBM I-Series, and

the programming language of RPG. The Info-Pro system has been in place by CONTRACTOR

for 20 years and is used company-wide.

The system is divided into several modules. The majority of the modules within InfoPro are

driven by the information within the Customer Maintenance module. There is a high level of

data flow and interaction between the different modules thus eliminating duplicate keying in

any area. At the end of the day the information that has been keyed into InfoPro by the

various users of the system is processed. At that point history files are updated, charges are

generated for customers, production values are updated, container inventory is updated, and

preventative vehicle maintenance values are calculated.

Customer Maintenance

This is the main customer database. Billing information, service location, container

specification and rate information are the primary components of this module. Accounting

controls as well as collection event information is displayed. A direct link to Account Receivable

is available. Sales management information including territory, representative, contract

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routing, disposal and billing schedule is defined. The rate logic allows for multiple rate

variations to be applied to the single container group such as; monthly rates, lift rates, volume

rates, excess weight disposal, minimum lifts, multiple additional rates and supplemental

service rates. Historical rate information is also retained.

Each customer account is specific to service type and each line of business is assigned a

contract number. For example, residential and commercial customers can easily be searched

for and reported on based on contract numbers.

This module is used by CSRs to allow easy access to almost any part of the InfoPro system

so that they can answer customer inquiries without forwarding calls, detaining the customer,

or interrupting other staff members. Access to the customer’s service history, billing history,

next service date, requested services already entered, charges to be invoiced, the entire

customer maintenance module and accounts receivable is available. Call-in service requests

are entered here and automatically forwarded to the dispatching system. System issues are

entered and permanently recorded against that customer’s record, which are the foundation

of multiple different customer service reports.

Missed Pick-Ups, Late Setouts, Spills and Litter Resulting from Collection

After processing a work order for a missed pick-up, late set-out, or spills and litter resulting

from collection, the CSR will notify dispatch with specific information regarding the work order.

This information, also communicated to the route supervisor, is maintained as an open work

order until the route supervisor and/ or driver radios back to the CSR that the task has been

completed.

CONTRACTOR will collect late set-outs upon notification by the customer on the first instance of

violation as a courtesy without any additional charge. After a second violation, the driver radios

dispatch and the dispatcher enters the information in the customer file to maintain a record of late

setouts and actions taken by drivers.

To provide an efficient and effective mechanism to monitor the work orders, the administrative

assistant will print a summary report of all open work orders daily and distribute such to the

entire management team. The report includes name and account number, service location,

reason for call, time of call, and actions being taken. Operations information will be sorted by

route supervisor area and distributed to the appropriate route supervisor for review. Customer

service notes are reviewed by an assigned CSR and all notes are closed within two business

days.

Improperly Prepared Setouts

If the customer sets out containers that include nonconforming materials, CONTRACTOR will

leave a non-collection notice. As an enhancement and to mitigate frustration on the part of the

customer, CONTRACTOR proposes to collect nonconforming materials on the first instance

of violation and leave a courtesy notice provided the nonconforming materials do not contain

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hazardous materials/ substances, or pose physical risk to the driver. The courtesy notice will

describe the type of violation and will warn the customer that in the future the container will not

be collected if it contains non-conforming materials.

In the event of subsequent violations, the material will not be collected and a notice will be left

on the container identifying the reason(s) for non-collection. After leaving the notice on the

container, the driver will make a note for the customer service department and explain the

action taken, which will be entered nightly by the operations clerk. The CSR fielding the call

will enter this information in the customer file to maintain a record of non-conforming setouts

and the actions taken by the driver.

Noise Complaints

CSR notes any received noise complaint from customers and informs operations. Route

supervisors immediately contact driver and take appropriate action to ensure drivers are

operating within authorized collection times. CSR contacts customers and reports action taken.

Traffic and Sidewalk Obstruction During Collection

In the event that there is a traffic and sidewalk obstruction that prevents collection vehicles

from serving the customer, the following steps are taken:

The driver immediately reports the situation to the route supervisor and dispatch,

identifying the problem and the affected service addresses. The driver then proceeds

safely around the obstruction on an alternative route to continue collection on the

remainder of the route.

Next, the driver discerns whether or not they believe the obstruction is temporary and

enters this information into the onboard computer system and if he will be able to return

at the end of the route, or whether collection will take place that day, or whether a

double-collection should be scheduled for the following scheduled collection day at no

additional charge. The dispatcher communicates their decision to the customer service

department via InfoPro. This information will be recorded in the affected customers’

files on the onboard computer system.

Customer service will attempt to contact all customers to advise them of any service

change.

The CSR will attempt to contact every affected service address as well as the City to

inform them of the situation, the method of resolution, and estimated time of collection.

Graffiti

Drivers are required to report instances of graffiti immediately via InfoPro. Dispatch notifies

customer service and a work order is placed for maintenance staff to visit the customer site to

remove graffiti or remove and replace the marked container. Reports of graffiti on enclosures

or buildings are noted on the customer account and the CITY will be notified the same day.

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Collection Outside of the Times Authorized in the Municipal Code

CSR notes any received noise complaint from customers and informs operations. Route

supervisors immediately contact driver and take appropriate action to ensure drivers are

operating within authorized collection times. CSR contacts customers and reports action taken.

CONTRACTOR utilizes an industry leading billing software system called Metavante.

Billing Procedures

CONTRACTOR shall provide billing services for all Service Recipients in the Service Area,

including all Residential Properties, Multi-Family Properties and Commercial Properties.

CONTRACTOR shall:

bill all Service Recipients in the Service Area, including all Residential Properties, Multi-

Family Properties and Commercial Properties at the rates permitted in this Agreement;

maintain accurate billing and payment records; and

bill commercial customers on a monthly schedule in arrears and residential customers

on a quarterly basis in advance, or as otherwise approved by CITY. Service Recipients’

bills shall be itemized showing the charges for each classification of services.

Billing staff and CSRs have access to the billing system and CONTRACTOR’s corporate office

has system administration rights. Any inquiry or support needed is immediate for our local

division.

All customer rates are entered into InfoPro by CONTRACTOR’s billing staff and CSRs.

Each month all data files are transmitted via InfoPro to Metavante and a “full-charge”

or amount to be invoiced is available for the billing staff to audit to ensure any

discrepancies are adjusted before invoices are sent to customers. During month-end

close, all approved charges are sent via Metavante and reviewed one more time prior

to invoices being released.

To make bill paying convenient and easy for customers, CONTRACTOR offers online

bill pay service which allows customers to make one-time payments with either a credit

card or electronic debit to a checking account. In the interest of conserving paper,

customers who select this option will have the ability to have paperless bills, billing

inserts, newsletters, and program announcements sent to an email account.

CONTRACTOR’s billing department also supports/accepts electronic funds transfers,

automated recurring check or credit card payments, payments by mail, payments made

at its office, and credit card payments by phone.

Each month, reports are viewed by the billing staff to review stop service accounts as

well as reports that show start service. These service changes could be due to past

due balances, business closing, moving or opening. All stops/ starts are thoroughly

reviewed before changes are initiated.

When a customer calls the office regarding a billing inquiry, CONTRACTOR’s CSR will first

verify the service level on the account and invoice to ensure the customer is being billed

correctly. If the service levels and rate are correct, the CSR will go into the accounts receivable

screen in InfoPro and check the customer’s payment history. If the customer claims they are

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being billed for a service they did not receive or do not subscribe to, a CSR will send out a

Route Supervisor to confirm the service level. The account will be credited immediately if

CONTRACTOR has made an error. If the customer has made an error a friendly phone call to

the customer will be placed to give them the opportunity to choose the service level that

matches their budget and waste generation rate. All options will be reviewed with them.

Our CSRs are trained to respond to billing inquiries in all our service areas, so the addition of

the new CITY customers will be easy to incorporate. Trainings will be held and CITY staff is

welcome to participate in those trainings.

Accounts Receivable

The open item Accounts Receivable (AR) system is fully integrated with InfoPro and the

General Ledger. This module provides invoice tracking/aging, cash application and collection

processing. Cash is received electronically from an external lockbox company and is

automatically posted to customer accounts/invoices. The system provides a strong query tool

to aid in customer collections in addition to monthly and ad-hoc aged trial balances. Accounts

receivable invoice history is maintained for a period of twelve months. At any point in time an

invoice may be reprinted at the division. Customer collection notices and interruption service

takes place automatically but can be overridden by associates at the division.

Invoicing

Invoice amounts for customers are produced by the system and then transmitted to

CONTRACTOR’s printing service provider. Invoicing is integrated with the General Ledger and

AR. On average, CONTRACTOR generates over 2.5 million invoices per month. Invoice

formats can be tailored for specific customer requirements, such as page breaks or total

amounts by service location or other CITY required inclusions. Included in the invoicing module

are features that allow for tax and fee administration such as Franchise, FRF, ERF, Late and

SI.

Level of billing accuracy and billing complaints received

CONTRACTOR's corporate office requires annual internal billing audits which randomly

chooses customer accounts and verifies their rate and level of service. For debris box

customers, the contract is reviewed to ensure the contract rates and those in the billing system

match. CONTRACTOR checks rates on a regular basis, and with the award of the CITY

contract will continue this procedure on a regular basis.

Delinquent Accounts

CONTRACTOR shall be responsible for collecting delinquent charges for services it renders

to customers. CONTRACTOR shall employ measures, consistent with federal and California

laws regulating the collection of debts, to obtain payment of charges including use of its own

employees to obtain judgments in Small Claims Court and to enforce such judgments.

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Billing Records

CONTRACTOR shall keep records of all billing documents and customer account records

including, but not limited to, invoices, customer payment coupons mailed with the invoice and

collection notices, for a period of three (3) years after the date of receipt or issuance.

Contractor may, at its option, maintain those records in electronic form, hard copy, or in any

other manner, provided that the records can be preserved and retrieved for inspection and

verification in a timely manner.

CITY Access to Billing Information CONTRACTOR shall provide CITY with prompt access to all current and up-to-date billing

information necessary to allow the CITY to respond to customer inquiries or complaints or as

otherwise required by CITY. At request of CITY, CONTRACTOR shall provide “read only”

electronic access to Contractor’s Service Recipient billing and customer service records such

that CITY employees can research billing inquiries and Service Recipient account history from

CITY Hall or review the status of missed pick-ups, service complaints. Contractor shall

cooperate with CITY to establish this “read only” function and shall ensure that CITY has

access to service recipient information in “real time”.

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EXHIBIT 9 DIVERSION PLAN

The CITY has established an aggressive schedule and targets for its diversion requirements,

and it should be noted that achieving these diversion requirements are highly contingent on

program participation and characterization of the waste streams. In order to meet and maintain

the CITY’s diversion requirements, CONTRACTOR will work closely with the CITY, businesses,

MFDs, and the community to increase recycling participation and thereby increase diversion

numbers. To achieve high diversion quickly and efficiently, CONTRACTOR has developed a

diversion plan with aggressive targets for both diversion numbers and the dates they will be

achieved as detailed in this section.

CONTRACTOR will provide a level of diversion that will both meet Half Moon Bay’s diversion

requirements and ensures that the CITY will be in full compliance with the State’s 50 percent

diversion requirement, as well as assist it with achieving CalRecycle’s 75 percent diversion goal

by December 31, 2020.

The CITY’s diversion goals, are as follows:

Divert a minimum of 40 percent during calendar year 2019.

Divert a minimum of 45 percent during calendar year 2020.

Divert a minimum of 50 percent for both calendar year 2021 and calendar year 2022.

Divert a minimum of 55 percent during calendar year 2023 and through the term of the

Agreement.

CONTRACTOR understands and agrees that the CITY’s annual diversion calculation will be

measured in terms of the tons of materials collected by CONTRACTOR from the provision of

collection services in the CITY that are sold or delivered to a recycler, composting facility or

any other approved processing facility, or that are otherwise handled in a manner that counts

as diversion under applicable CalRecycle regulations, net of all residue, divided by the total

tons of materials collected in the CITY by CONTRACTOR each calendar year.

Diversion level projections for calendar years 2018, 2019 and 2020 are included below:

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2018 Diversion Goal: 35% 2019 Diversion Goal: 40% 2020 Diversion Goal: 45%

SFD

Tons

Collected

Net Diverted

Tons*

Tons

Collected

Net Diverted

Tons*

Tons

Collected

Net Diverted

Tons*

MSW 1,882 0 1,844 0 1,752 0

Recyclables 1,733 1,473 1,590 1,352 1,676 1,425

Organics 1,747 1,677 1,845 1,771 1,913 1,836

MFD

MSW 1,463 0 1,317 0 1,185 0

Recyclables 154 131 164 139 195 165

Organics 17 16 32 30 45 42

Commercial

MSW 2,768 0 2,602 0 2,394 0

Recyclables 1,115 947 1,232 1,047 1,675 1,424

Organics 428 398 856 796 1,250 1,163

City Services

MSW 330 0 310.2 0 330 0

Recyclables 44 37 57 47 70 59

Organics 66 61 76 70 88 81

*The "Net Diverted Tons" column includes recyclables and organic tonnages less estimated residue.

CONTRACTOR supports the CITY’s goal to achieve 55% diversion and greater in the next ten

years. As stated earlier, however, the CITY has established some aggressive targets over a

short period of time. It has also changed how it calculates diversion to be net of any residue

(contaminants). As an example, to reach the first diversion target of 40 percent for calendar

year 2019, CONTRACTOR estimates needing to achieve a 47 percent diversion in an apples-

to-apples comparison using the methodology that calculated a 32 percent diversion rate for

2016. This takes into account that out of all the materials collected for recycling and composting,

approximately 7 percent would be either items not accepted in the programs, or placed in the

wrong container.

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The specific programmatic details to accomplish the diversion goals in the baseline and

alternate proposals include:

Initial and ongoing heavy outreach to all sectors, including, brochures, newsletters, bill

inserts, a local website and community meetings, among others.

Educating commercial customers on mandatory recycling, including AB 341 and AB

1826, and provide enforcement by having CONTRACTOR diversion coordinators visit

businesses to confirm compliance.

Working with businesses that have 3 cubic yards or less of service to ensure they have

recycling containers and are using them.

Targeting the top 15 volume-generating businesses to increase recycling and organic

collection services, and look for opportunities to prevent waste.

Working with CITY planners and contractors to enhance construction and demolition

recycling.

Targeting all restaurants for commercial food waste service.

Placing a heavy emphasis on program guidelines and accepted materials to maximized

diversion and minimize contamination.

All solid waste for residential, commercial, industrial, and multi-family accounts will go to Ox

Mountain to be landfilled. All single stream recyclables will be direct hauled to Ox Mountain and

then transferred to the Newby Island Recyclery for processing.

All residential and commercial organics will be direct hauled to Ox Mountain and transferred to

the Newby Island Composting Processing Facility in San José.

In order to achieve additional diversion from current services, reducing the amount of material

going to the landfill is essential. This can be done by continually providing public education and

outreach to all service sectors, especially residential customers while targeting all businesses

(including small 3 cubic yards or less, the CITY’s top 25 waste generators, and restaurants for

food waste recycling), and contractors to ensure Construction and Demolition material is clean

and properly recycled, while focusing on waste prevention and reuse ideas for all sectors.

Residential Recyclables and Organics Diversion

Outreach and Technical Assistance

CONTRACTOR proposes focusing on providing continual outreach through newsletters, hard

copy materials, recycling participation tools and easy-to-reference website materials.

Additionally, the strategic use of CONTRACTOR's recycling diversion representative, and help

from community leaders to work with the residents to improve participation, decrease

contamination and increase recycling content will be critical to CONTRACTOR's success. See

further details within CONTRACTOR's public education and outreach plan to see how

CONTRACTOR will use marketing, technical assistance, and resources to exceed the diversion

requirements.

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CONTRACTOR will also provide the following efforts to ensure increased residential diversion.

Mail quarterly newsletters with information regarding recycling and resource

conservation, updates on the CITY’s recycling goals and the community’s progress, tips

for disposing bulky items, promotion of our “recycling champion” program, and other

specific collection services, resources, and programs.

Create program-specific bill inserts for residential customers, focusing on such items as

the Bulky Item collection program, accepted materials, and other avenues and

resources to reduce their waste stream.

Commercial Organics and Food Scraps Diversion Plan

In order to maximize customer participation and material diversion, it is essential to implement

a thoughtful and carefully executed approach that focuses on targeting key food generators

and providing them with the tools, resources, and onsite assistance necessary to ensure a

successful collection program.

Commercial food waste collection participants will be provided with Organics carts as previously

discussed.

CONTRACTOR will also provide the following efforts to ensure increased commercial

diversion:

Create program-specific bill inserts for commercial customers, focusing on such items

as AB 1826

Educate businesses in both English and Spanish in-language site visits performed by

bilingual recycling coordinators or with in-language outreach materials available on our

website

Conduct site visits and assessments for each business in the CITY. CONTRACTOR will

focus on the top 25 generators and then contacting all businesses in the CITY to discuss

best practices specifically by business type, and conducting site audits

Perform visual assessments of solid waste, recycling and organics containers,

documenting the percentages of material types, overall volumes, and recommendations

for optimal service

Send a follow-up email or letter to the business owner documenting new or changed service

levels and delivery dates for new containers. The CONTRACTOR’s recycling representative

will follow up with businesses one month after the program is started to review progress and

provide additional educational support or resources as needed, including photos of

contamination if applicable.

CONTRACTOR used the following steps to estimate potential diversion from this commercial

food waste program:

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Identified commercial and industrial accounts that belonged to high food-waste-

generating groups: health care facilities, hotels, restaurants, other food services, food

stores, and food manufacturing

Estimated annual volume collected from these accounts using the below equation.

Assumed containers were full at pick-up

Summed estimated volume disposed for each industry group

Converted annual volumes to annual tons using industry specific densities from

CalRecycle

Statewide Waste Characterization Study Results and Final Report, dated 2015

Using business sector-based waste composition data from CONTRACTOR’s database

of generator samples, we will estimate volume and tons of food waste and compostable

paper disposed by each industry group

Assuming that 50 percent of businesses would participate in program and that it would be

possible to capture 65 percent of food waste and compostable paper from those

businesses

CONTRACTOR’s education and outreach team will target businesses that generate a high

volume of organics material and will work in phases to maximize business participation and

recycling performance. In developing CONTRACTOR’s target business list, CONTRACTOR

reviewed the service levels and business sectors for all businesses in the CITY and highlighted

those businesses that fall within the selected “high-volume organics generator” categories.

During the site visit, the CONTRACTOR’s diversion recycling representative will perform a visual

assessment of solid waste and recycling containers, documenting the percentages of material

types, overall volumes, and recommendations for optimized service levels. Recycling

representative will perform a facility walk-through to identify areas where food scraps are

generated, recommend locations for internal food scrap collection containers, and identify

opportunities for improved recycling collection systems.

Outreach staff will also provide educational materials that explain the new food scraps collection

program, and will attempt to schedule a follow-up visit to conduct employee training. During this

initial site visit, CONTRACTOR will recommend a food scraps collection service level and

formalize next steps for cart or container delivery and service implementation.

When performing the site visit, outreach staff will also assess businesses on a case-by-case

basis to create an individualized program that is tailored to each business. CONTRACTOR’s

recycling representatives will use an audit form which allows for an easy way to accumulate all

data from site visits and provides a brief summary report that can be provided to the customer.

For all businesses, both pre-consumer “back of-house” collection and post-consumer “front-of-

house” collection will be evaluated, and the best collection system will be recommended.

For sit-down restaurants, outreach staff will focus on back-of-house collection and help train

kitchen staff, bussers, and dishwasher staff to place materials in the correct container.

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For cafeterias, and fast food style restaurants, CONTRACTOR will address both back-of house

and front-of-house collection to see if there are opportunities for adding proper signage or

additional containers, as well as if the business could use compostable products to help prevent

contamination. For each type of business, a phased-in approach would begin with:

Implementing back-of-business recycling first to establish a successful program, and

Adding front of-business food waste and approved compostable paper products when

the restaurant is able to manage collection of clean materials.

Following up with onsite business contacts in a timely manner is essential when launching a

new collection service.

CONTRACTOR proposes sending a follow-up email or letter to the business documenting

selected food scraps service levels, delivery dates for new containers, and dates for staff

training (preferably coinciding with the cart or container delivery date). After the containers are

delivered and all trainings have been performed, CONTRACTOR’s diversion recycling

representatives will perform weekly site visits for the first month of service, monitoring the food

waste container to confirm the business is maximizing their diversion with minimal

contamination.

CONTRACTOR’s recycling representative will follow up with the business manager one month

after their site visit to review progress and provide additional educational support or resources

as needed, including photos of contamination if applicable. CONTRACTOR recognizes that in

order to maintain a successful food waste collection program, it is essential to provide ongoing

feedback and assistance throughout the term of the contract. Therefore, CONTRACTOR will

contact commercial food scraps participants annually, addressing staff turnover and the need

for ongoing engagement and educational refreshers.

CONTRACTOR’s proposed approach to educating and assisting business customers will

involve a combination of onsite technical assistance, including staff trainings, and annual

customer follow-up as well as on-call customer assistance based on customer email or phone

requests. CONTRACTOR will also use collection drivers’ notes on contamination levels to

identify potential training opportunities and begin a conversation with businesses on easy and

affordable ways to reduce contamination.

CONTRACTOR will also develop educational tools and resources for front-of-house and back-

of-house collection stations that can be customized by businesses. All outreach materials will

be readily accessible on CONTRACTOR's website, which will also include an interactive

diversion calculator that allows businesses to calculate their diversion rate, associated

greenhouse gas reductions, and cost savings. Businesses can use these statistics to engage

and motivate employees and impress customers. They will be encouraged to include this

information in quarterly newsletters, on their website, and in other communication channels.

Organics educational materials will highlight specific materials accepted in the program, such

as clean food scraps, green waste, approved compostable paper products including cutlery and

service-ware.

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Commercial Technical Assistance Program – AB 341 and AB 1826

The following areas are a priority for CONTRACTOR in order to meet Half Moon Bay’s needs

for reporting and compliance with such State mandates as AB 341 and AB 1826:

Outreach and education: CONTRACTOR will conduct outreach activities to inform the

affected commercial generators of the mandatory recycling requirements and educate

commercial generators about recycling opportunities available to them, as seen in the

Outreach Plan in Section 4.3 of our proposal.

Monitoring: CONTRACTOR will review lists of affected generators to ensure they are

subscribing to and participating in the commercial recycling and organics collection

programs. CONTRACTOR will also identify and notify businesses that are not in

compliance, as well as provide the proper technical assistance to ensure they have

recycling and comply with the ordinance.

Representative will emphasize these points during the initial recycling opportunity assessments

with each targeted business. Outreach materials will be combined in a manner that addresses

customer need, and will be submitted to customers in a subsequent mailing. Materials will be

mailed if personal contact cannot be made between CONTRACTOR and business managers

during the initial assessment process

Informational Flyers & Posters

CONTRACTOR will develop an informational flyer addressing the following business types:

Retail;

Business office;

Restaurant and bar; and

Manufacturing.

Each flyer will highlight recycling opportunities for the applicable business type, and will discuss

program logistics – both for refuse and recyclable materials. Also, a specific flyer will be

developed for debris box customers that details recycling options, debris box sizes and the like.

All flyers will emphasize State mandatory recycling requirements such as AB341 and

AB1826.

Container Labels

Containers will be labeled with CONTRACTOR contact information that is proportionally sized.

These will include warning and acceptable content labels. For example, recycling bins will be

labeled as forbidding solid waste, and will display an in-mold label describing acceptable

contents. All labels will employ simple line graphics to convey general messages.

Recycling Workshops

Recycling workshops will be offered to those businesses with a need for, or that request such

a service. In addition, workshops will be offered to business associations, Chamber of

Commerce, Rotary and any other applicable or interested organizations in the CITY.

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Miscellaneous Collateral Materials

It has been CONTRACTOR’s experience that often a particular business may need specialized

outreach materials, such as information flyers to post in lunch rooms, or directives to send to

each employee. CONTRACTOR is committed to developing such materials, as requested by

customers on a case-by-case basis. CONTRACTOR's team of recycling representatives is

critical to delivering these messages. The team will target its initial educational efforts on high-

volume waste generators and work directly with owners/property managers. CONTRACTOR

will also include the following approaches to ensuring the highest levels of commercial customer

education, awareness and satisfaction:

Waste Audits and Technical Assistance: CONTRACTOR will continually track and

monitor participation and contamination. Whenever issues are identified,

CONTRACTOR will provide appropriate solutions at the customer level, including but

not limited to, personal phone calls, emails and on-site visits.

Annual Recycling Workshop: Once each calendar year, CONTRACTOR will invite the

largest 15 commercial customers in Half Moon Bay to a hosted Recycling Workshop, to

discuss program strategies to recover Targeted Recyclables Materials, and distribute

recycling information kits to attendees.

Janitorial and Food Service Employee Training Programs: CONTRACTOR will offer

training for in-house and contracted janitorial companies, including multi-lingual

educational materials and presentations to educate janitorial employees on recycling

options, how to minimizing contamination, set-out procedures, and other recycling

information.

AB 341 and AB 1826 Outreach: Notify customers twice each calendar year of the

requirements and benefits of AB 341 and AB 1826. Customers will receive a thank you

for fulfilling their requirements in maintaining a recycling program.

Seal of Sustainability Award - CONTRACTOR will award commercial customers who

have increased their recycling service levels by 25 percent or more with a “Seal of

Sustainability” decal recognizing their achievement and commitment to the environment

and “greening” their community. CONTRACTOR will announce the recipients of the

annual Seal of Sustainability via news releases, website, and newsletter.

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EXHIBIT 10 EDUCATION AND OUTREACH PLAN

The key to the success of the new programs and meeting the CITY’s diversion and

sustainability goals is customer knowledge and buy-in. CONTRACTOR is committed to

developing and implementing a comprehensive public education and outreach plan for the

start-up of the new services as well as through the term of the agreement in complete

collaboration with the CITY. CONTRACTOR’s ability to assist the CITY with implementation of

new programs to meet state mandated diversion requirements has been shown with the

CITY’s full compliance with AB341.

Key components of CONTRACTOR's Public Education Plan include:

Enhanced residential outreach: quarterly newsletters, brochures, bill inserts, in-molded

graphics on carts

Enhanced commercial outreach: expanded waste assessments, technical support and

outreach materials with focus on AB1826 and furthering AB341 compliance.

Proprietary tablet based apps for real-time diversion planning and reporting – Eco-

Diversion Calculator®

Multilingual outreach materials

Strong community partnership and events

Residential Public Education Outreach Program

CONTRACTOR will work closely with residential customers to ensure they understand the

changes that are taking place with the new programs. These will include advance mailers

letting them know of the changes, allowing them to pick their service level, notifying them when

their carts will be exchanged and other pertinent information. Community and HOA meetings

will be held prior to the start-up of services, and advertisements will be placed with the local

newspaper and radio station.

Ongoing newsletters, bill inserts and other materials will inform residents of how they are

progressing, provide helpful reminders and other information related to sustainability.

CONTRACTOR’s “My Resource” mobile application will also serve as a great tool for residents,

enabling them to find out their collection schedule, schedule a service, pay their bill and or

learn about other program-related information at their convenience. Upcoming community

events related to provision of these services (HHW events, beach cleanups, HOA or

community meetings on new service rollouts) along with collection and street sweeping service

schedules as well as billing rates will be clearly displayed on CONTRACTOR's website. This

will allow the customer base to interact with our company in a manner that trends away from

phone- and paper-based mediums.

Initial Mailing

CONTRACTOR will, in advance of the new contract start date and in accordance with the

finalized Agreement, mail an initial brochure to all customers explaining any changes to the

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programs, routes changes if any, implementation dates and any other pertinent information.

The initial mailing will be tailored to meet the collection specifics of each generator type.

The schedule of distribution of items is noted with each outreach piece and the quantity

distributed will be based on number of single-family, and commercial customers. All

CONTRACTOR materials have a professional, branded look and feel which will achieve a level

of recognition and familiarity among our customers. CONTRACTOR always ensure a minimum

of 10 percent overrun of printed materials for any additional distribution and outreach material

will be available for download on our website as appropriate.

Annual Collection Service Notice

Residential customers will receive an annual brochure explaining the programs and service,

accepted materials, options for such items as HHW, service area map, customer service

phone number and website address.

Quarterly Newsletters

CONTRACTOR proposes to use quarterly newsletters as an opportunity to provide informative

and engaging information (e.g. special collection events, resources for disposing of household

hazardous waste, e-waste recycling options, and the benefits of recycling and resource

conservation). CONTRACTOR will incorporate special articles into each newsletter, from

spotlighting green businesses in May to reminding residents to compost their pumpkins in

October, for example. Additionally, CONTRACTOR will dedicate a portion of the newsletter to

our younger recyclers; from waste prevention word searches to recycling quizzes.

Since a growing portion of the population prefers digital over paper, CONTRACTOR proposes

to provide both paper and electronic newsletter options. CONTRACTOR maintains a database

of customer email addresses, provided by customers who prefer to receive electronic

correspondence. These customers will receive electronic newsletters instead of paper. The

benefits of providing an electronic newsletter option are two-fold.

Collection Day Change Notification

CONTRACTOR is constantly reviewing processes to ensure efficiencies that will provide the

best customer experience possible. To continue to reach this goal in CITY, CONTRACTOR

may perform collection reroutes waste, recycling and yard trims if awarded the franchise

agreement. At least thirty (30) days prior to the reroute start date, all affected customers will

receive a postcard indicating new collection days.

Corrective Action Notice (Oops Tag)

Corrective Action Notices are tags that drivers leave that indicate set-out problems, and are

tailored to residential generator types. These tags can be used as a courtesy notice, or as a

notice of non-collection when so marked. When used as a courtesy notice, the materials in

question are taken, but customers are informed of the improper element of their set-out and

advised of what to do to ensure a proper set-out for next collection. When used as a non-

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collection notice, the cart in question is not collected, and the customer is advised of the exact

problem. The problem must be corrected prior to the following week’s service.

Although this element will not be used during the initial transition period, CONTRACTOR’s

Corrective Action Notice, or Oops Tag, will be utilized in one of two ways, depending upon

CITY’s preference. The tag can be utilized regularly by drivers, whenever improper set-outs

are observed, or it may be used as part of a campaign, where, for example, one route will be

focused on per month, and Corrective Action Notices issued during collections in that month.

The one exception to limited Corrective Action Notice distribution would be in cases where

serious or unacceptable, recurring set-out problems by a particular customer or household are

observed by the route driver. Naturally, Corrective Action Notices will be used whenever a

collection is unacceptable for health and safety reasons or due to an unpermittable level of

contamination is observed in either the recyclables or yard waste cart, which warrants the

attention of the customer to clean up the materials or have the materials disposed of as solid

waste.

When drivers turn in their Corrective Action Notices, the information is entered into InfoPro

and used for detecting behavioral patterns or trends that need correcting via CONTRACTOR’s

public education and outreach program. The form can be revised based on CITY input.

CONTRACTOR recognizes the need to not only educate customers on proper set-out and

recycling procedures, but to also reward customers when they get it right.

Public Events

CONTRACTOR will also continue to staff booths at community events and meetings prior to

and throughout the contract to connect with customers and answer their questions.

CONTRACTOR will continue to provide services and assistance at community events and will

also work with event planners to bring additional value. This would include upfront planning for

logistics detail, such as placement of containers, providing a full contingent of containers at

each collection point with clear messaging to encourage recycling participation, clean up

services, sponsorships, and educational materials.

Multi-Family Public Education and Outreach Plan

Multi-Family Outreach Program

CONTRACTOR recognizes the importance of providing multi-family customers with the

opportunity to participate in a successful recycling program, especially with the advent of State

recycling mandates. For this reason, CONTRACTOR will offer them the resources and

assistance necessary to maximize participation and diversion results. By touching every

customer, but beginning with a concentration on high volume generators, CONTRACTOR

anticipates a significant increase in recycling participation. Maintaining ongoing success of

multi-family recycling programs requires a significant amount of focus at that location as well

as creative ideas to keep the stakeholders engaged.

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CONTRACTOR understands that the success of a multi-family recycling program is contingent

on achieving the following:

Gaining the support of resident managers or associations in larger complexes

Educating a relatively transient population on a continuous basis

Getting commitment from the renting population

Finding adequate storage space for central collection containers, as well as storage

within the individual units

Distance between rental units and the central collection locations

Contamination issues

To address these potential barriers, CONTRACTOR will reach out to property managers and

residents of multi-family units, and provide service and recycling information using direct mail,

events on-site, delivery of door hangers and posters and any other means to create a

successful program. CONTRACTOR's recycling representatives will conduct on-site visits and

waste assessments and be available via telephone and email.

Development of “Recycling Welcome Kit” for New Multi-Family Residents

CONTRACTOR will develop recycling welcome kits for property managers to distribute to

residents upon lease agreement. CONTRACTOR will also place outreach materials under the

door of each apartment annually to further increase awareness of the recycling program and

help remind tenants.

In addition, CONTRACTOR will develop resources that can be easily edited or customized by

property managers, including identifying the location of recycling and solid waste

containers/enclosures, information regarding whom to contact if the containers are full or

overflowing, and how to notify property management of illegal dumping concerns.

Annual Multi-Family Resident Newsletter

CONTRACTOR will send multi-family residents an annual newsletter with specific information

regarding recycling and resource conservation; tips for disposing of bulky items when moving;

and promotion of our recycling champion program and other multi-family specific collection

services, resources, and programs. Similar to our single-family newsletter, CONTRACTOR will

also include kid-friendly content such as recycling word searches or a waste prevention

crossword puzzle.

Outreach and Program Tool Distribution

CONTRACTOR will provide a variety of tools for multi-family dwelling(s) to assist with active

participation and increase diversion. Research has shown by providing different tools for a

program to help with incentivizing and making a program easier will increase diversion.

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Door-to-Door Outreach Distribution

CONTRACTOR will provide door-to-door delivery of multi-family organics kitchen pails with

corresponding program information to those complexes that opt for food waste collection.

Commercial Public Education and Outreach Plan

While there will be significant outreach targeting residential customers on an ongoing basis,

commercial customers are integral to moving the diversion needle. As such, CONTRACTOR

will be heavily focused on getting commercial and MFD customers to increase their recycling

efforts and participate in the new organics program while reducing their disposal.

CONTRACTOR’s Recycling Outreach Team, including a Recycling Coordinator dedicated a

minimum of 20 hours per week to Half Moon Bay customers for the life of the agreement, will

begin working with these customers immediately upon the CITY’s awarding of the new

contract. CONTRACTOR commits to having the Recycling Coordinator spend a minimum 50%

of his/her time dedicated to the City of Half Moon Bay within the City limits for Years 1 and 2

of the agreement. For Years 3+, Recycling Coordinator will spend a minimum of 25% of his/her

dedicated time within the City limits.

This advanced effort will target large generators first and consist of site visits and waste

assessments to determine their service needs and maximize their diversion. These customers

will be placed in a “queue” so that they will be ready to start the programs as quickly as possible

once the new contract begins. This early work will help get a jump start on that process. It is

important to note that much of the work associated with prioritization of commercial customers

and characterization of their material streams has been completed as part of the AB341

implementation.

In addition to the more traditional brochures, posters and labels, as noted above,

CONTRACTOR has worked with the Cascadia Consulting Group to develop a proprietary

tablet application, the Eco-Diversion Calculator® (EDC), to facilitate more efficient commercial

outreach activities. The EDC is an Excel-based tool that includes uploaded commercial

account records. This minimizes the data entry effort required by the outreach staff while still

allowing staff to enter critical on-site information during site visits.

CONTRACTOR can then generate reports for the customer showing their diversion rate,

associated GHG reductions and other pertinent data. These are then rolled up into larger

reports which can then be provided to the CITY on a quarterly or annual basis, making the

tracking of such efforts extremely easy.

These site visits and waste assessments will occur annually, or more frequently if needed, with

all commercial customers. In addition, follow up and regular check-ins will occur with

customers on an ongoing basis to ensure that they understand the programs and are provided

training and any additional tools they may need.

Initial Mailing

CONTRACTOR will, in advance of the contract start date and in accordance with the finalized

Agreement, prepare and mail an initial mailing to all commercial customers explaining the

transition from the existing to new programs. The mailing will describe program changes, dates

of program implementation, recycling and diversion programs available, special services

available, and CONTRACTOR contact information.

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Annual Services Brochure

CONTRACTOR will collaborate with the CITY in the design and delivery of the once annual

distribution of program information in a newsletter or brochure format per the requirements of

the finalized Agreement.

Semi-Annual Newsletters

CONTRACTOR will prepare and distribute customer information twice per calendar year for

all commercial customers. The notices will explain specific programs, such as recycling,

organic waste, and commercial food scraps collections. Most likely, this information will be

developed as billing inserts.

Container Labels

Appropriate container labeling for all containers is part of CONTRACTOR's education program.

Container labeling will be primarily graphics-based, and with simple, general information about

allowable container contents and our contact information when additional labels are requested

by the customer. All carts will have in-mold graphics on their lids following this same criteria.

Website

CONTRACTOR will maintain a local website providing information on programs and services

available to SFD, MFD and Commercial customers; upcoming events, resources and other

helpful information. CONTRACTOR will work in collaboration with the CITY on the

development of all outreach materials.

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EXHIBIT 11 VEHICLE AND CONTAINER INVENTORY AND REPLACEMENT SCHEDULE

CONTRACTOR recognizes the importance of acquiring equipment as early as possible and it

is imperative that any additional new equipment is available for use prior to the start-up date of

services. Utilizing our past experience with transitions and taking into account operational

differences when transitioning into a new service area, we have calculated the number of routes

that will be required using the total number of customers, expected tonnage, and the population

densities of the service areas in the CITY to determine the total number and type of collection

vehicles that are needed.

Vehicle Equipment Ordering and Delivery

Since the collection equipment requirements are already in-place as your current service

provider, no additional vehicle equipment has to be order to service the CITY for new

Agreement.

Vehicle Inventory

Truck

Type LOB Unit # Year Make VIN

Fuel

Type

License

Number

Street

Sweeper OTH 9020 2001 Tymco 1FV6HFAA4YHG01476 Diesel 6R65486

REL RES 2078 2009 Mcneilus 5VCHC6JF19H209491 Diesel 633480

ASL RES 2414 2008 Mcneilus 5VCHC6JF88J206098 Diesel 8R56062

ASL RES 2407 2008 Mcneilus 5VCHC6JF28H206775 Diesel 8R54497

Flat Bed RES 13 2006 Ford 1FDXF46P26EA69921 Diesel 7Y80590

FEL COM 1203 2010 Mcneilus 5VCACL8FXAH211038 Diesel 49502H2

FEL COM 1202 2010 Mcneilus 5VCACL8F8AH211037 Diesel 43477A1

ASL RES 2455 2009 Mcneilus 5VCHC6KF59H209427 Diesel 8W69864

Pick up OTH 11 2008 Ford 1FTRF12WX8KD88576 Diesel 8R52455

Contain

Del COM 7 2017 Ford 1FDWF7DC1HDB02848 Diesel 9873800

Service

Truck TSHOP 14 2006 Ford 1FDAF56P66EA69920 Diesel 7Y80589

RO IND

None

Specified Various Various Various Various Various

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Vehicle Replacement Schedule

Truck

Type LOB Unit # Year Make VIN

Fuel

Type

License

Number

Agreement

Year

Proposed

Replacement

REL COM NEW -

1

Street

Sweeper OTH 9020 2001 Tymco 1FV6HFAA4YHG01476 Diesel 6R65486 1

REL RES 2078 2009 Mcneilus 5VCHC6JF19H209491 Diesel 633480 2

ASL RES 2414 2008 Mcneilus 5VCHC6JF88J206098 Diesel 8R56062 3

ASL RES 2407 2008 Mcneilus 5VCHC6JF28H206775 Diesel 8R54497 3

Flat Bed RES 13 2006 Ford 1FDXF46P26EA69921 Diesel 7Y80590 3

FEL COM 1203 2010 Mcneilus 5VCACL8FXAH211038 Diesel 49502H2 4

FEL COM 1202 2010 Mcneilus 5VCACL8F8AH211037 Diesel 43477A1 4

ASL RES 2455 2009 Mcneilus 5VCHC6KF59H209427 Diesel 8W69864 5

Pick up OTH 11 2008 Ford 1FTRF12WX8KD88576 Diesel 8R52455 5

Contain

Del COM 7 2017 Ford 1FDWF7DC1HDB02848 Diesel 9873800 5

Service

Truck TSHOP 14 2006 Ford 1FDAF56P66EA69920 Diesel 7Y80589 5

RO IND

None

Specified Various Various Various Various Various 5

Container Equipment Ordering and Delivery

New wheeled cart containers will be ordered and container specifications will be finalized and

submitted to the factories to begin manufacturing as described below.

Container Procurement Carts

All new residential container carts to be used in the CITY will be complete and delivered

between approximately March 1, 2018 and March 31, 2018, with complete delivery on or before

the start of the new Agreement.

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We will purchase and deploy wheeled carts manufactured by SSI Schaefer Systems

International, Inc. that are specially designed to accommodate the fully automated collection

system.

We will assemble the wheels and lids and store the carts prior to staging for delivery.

CONTRACTOR commits to ordering a sufficient supply of surplus containers (5% of total in

reserve) in each size to ensure that carts are available for exchanges.

Bin and Debris Box Procurement

As the current service provider, CONTRACTOR plans to use refurbished bins and debris boxes

to service customer’s needs for this service type. CONTRACTOR will begin refurbishing its

surplus bins starting January 1, 2018 to have adequate supply on hand for container exchanges

beginning April 1, 2018, which will continue through June 30, 2018. Commercial customers’

containers will be exchanged for refurbished ones during the rightsizing process based upon

the new services.

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199


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 4 TO THE AGREEMENT

WITH REPUBLIC SERVICES (AKA ALLIED WASTE SERVICES)

WHEREAS, the solid waste franchise agreement with Republic Services (AKA Allied

Waste Services) is scheduled to expire on December 31, 2017; and

WHEREAS, the City must ensure that the services provided by the solid waste hauler, including without limitation curbside pick‐up of solid waste and recycled materials, and the provision of street sweeping services continues; and

WHEREAS, Allied has provided financials demonstrating their sound and consistent accounting standards; and

WHEREAS, this extension will provide for a more seamless transition to the

new/modified services provided in the new Franchise Agreement and allow for increased street

sweeping services;

NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay

hereby authorizes the City Manager to execute Amendment No. 4 for a three‐month extension to the Franchise Agreement for Solid Waste, Recyclables, Green Waste, and Street Sweeping Services with Republic Services (AKA Allied Waste Services), extending the expiration date to March 31, 2018.






200


AGENDA REPORT


TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Matthew Chidester, Deputy City Manager Danielle Sanderson, Senior Management Analyst

Edward Behle, Recreation Coordinator TITLE: RECREATION USER FEES ______________________________________________________________________________ RECOMMENDATION: Receive a presentation on Parks and Recreation User Fees and provide direction on potential modifications to the Parks and Recreation User Fees schedule. FISCAL IMPACT: The fiscal impact of this item will depend upon changes to the current Parks and Recreation User Fees schedule, if directed by the Council. A reduction in fees will increase general fund expenditures and subsidy level for the operation of the Recreation and community Services Division. STRATEGIC ELEMENT: This action supports the Healthy Communities and Fiscal Sustainability Elements of the Strategic Plan. BACKGROUND: In 1985, the County of San Mateo built the Ted Adcock Community Center located at 535 Kelly Ave, and transferred the property to the City of Half Moon Bay for the benefit of the community, specifically seniors and individuals with low to moderate incomes. The transfer and operating agreement required the County to contribute $10,000 annually for the operation of the center in recognition of the members of the greater mid‐coastside communities, which include a large portion of the population residing in unincorporated areas. The City historically used the facility for recreation programming, community events, and public meetings, including the City Council meetings. The City also has several other facilities that are used for recreation programming, including the Historic Train Depot and the Smith Field sports complex. In 2010, the City Council adopted a user fee schedule for facility rentals, included as Attachment 1. Due to the great recession and other financial hardships the City was facing, in 2011 the City entered into an agreement with the City of San Carlos to provide recreation

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September 5, 2017 Recreation User Fees Page 2 of 5

services. In early 2014, San Carlos notified Half Moon Bay that they were no longer interested in providing those services. In March 2014, the City entered into a three‐year agreement with Boys and Girls Club of the Coastside (BGC) to operate the City’s recreation facilities and provide recreation services on behalf of the City. The agreement required the City to continue to pay for utilities, maintenance, landscaping and cleaning of the City’s recreational facilities and to make an annual contribution for publication of the activity guides. Additionally, the City paid $10,000 per year for an insurance policy to provide off‐site adult recreation. Under the agreement, BGC collected and retained all rental, class and program fees to help cover the costs of operating its programs. During the term of the agreement, BGC approached the City twice for additional funding. The first request came during the FY 2015‐16 budget cycle and Council approved an additional $50,000 to support recreation services. The second request came during the FY 2016‐17 budget cycle and Council authorized an additional $50,000. On October 24, 2016, while collaboratively developing the new agreement for future years, BGC notified the City that they were no longer interested in providing recreation services on behalf of the City, to focus their efforts and resources on their own programs. In February 2017, the city Council directed staff to transition operation of recreation services in‐house beginning in FY 2017‐18, with the BGC agreement expiring at the end of June. In the Spring of 2017, staff worked with BGC to provide as seamless a transition as possible. In April 2017, per the agreed upon transition plan, BGC contacted existing facility users to provide notice of the transition, followed by City staff entering into new contracts for recreation classes as well as ongoing facility rentals. The City hired full‐time recreation staff in June and July, who took over coordination with facility users to continue the transition to the City. In June and July, the Community Center was partially renovated and City operations began on July 10, 2017. In May 2017, the Council approved a new citywide Master Fee Schedule, based upon a multi‐year user fee study. The purpose of the fee study is to review the costs of providing fee‐related services to ensure that the city is using the proper overhead rates and accurately accounting for the true cost of providing programs and services. Periodic fee studies are a best practice in municipal government administration. Because the fee study was already in progress at the time the City decided to bring recreation services in house, and to provide a seamless transition for existing users, staff recommended that the City initially adopt fees that generally mirrored the published BGC Facility Rentals and Fees for 2017, included as Attachment 2. Once the Recreation Division was up and running and the City had more experience with the amount of resources each activity required, a user fee study could be completed and rates adjusted in the future, if necessary. The Council adopted the Parks and Recreation User Fees Schedule (User Fees Schedule), which is included as Attachment 3, as part of the Master Fee Schedule. The City charges a separate cleaning fee for private rentals of its facilities. This is a typical fee charged in varying amounts by other cities. The fee published by BGC was $125 per event, 202


which is significantly lower than the $186 that the City must pay its contractor for one‐time cleaning services. When setting the User Fees, staff recommended a previously published City rate for cleaning services to mitigate the increased fee to users. The transition to City operations also required the development of policies, procedures, and new City contract templates for facility users. Based upon recommended best practices from the Association of Bay Area Governments Liability Pool, which the City is a Member Community, the City increased its insurance requirements from $1 million in general liability to $2 million, and maintained the requirement that the City be named as additional insured. Both are standard practices and other cities have similar requirements, in varying amounts. Immediately following the transition of recreation services to the City, non‐profit groups began to notify the City that their rates had increased significantly, and many could no longer afford to utilize City facilities for their activities. Some of these groups include the Coastside Women’s Club (CWC), American Association of University Women (AAUW), and Ayudando Latinos a Soñar (ALAS). The CWC has indicated that the new insurance requirements are burdensome and cannot be fulfilled by their current insurance provider. Staff has since learned that although the Council adopted User Fees Schedule generally matches the 2017 BGC fee schedule, several groups, including those listed above, were historically not charged the BGC published rates. Since the transition, City staff has become aware that many groups received significant user fee discounts or modified use terms, including free hours of usage, reduced or waived security deposits, and waiving of the private rental Cleaning Fee. Staff has contacted several of these organizations to learn more about the fees they had been charged by BGC, and this information is included in Attachment 4. Staff has also noted that the BGC 2017 fee schedule does not match the 2010 City adopted user fee schedule. The BGC rate categories were simplified, with increased rates, likely to account for CPI increases and to incorporate Building Attendant charges, which were charged separately in the 2010 City schedule. At the time of the transition of recreation services to the City and adoption of the User Fee Schedule, the City was unaware of the past practices of the BGC of reducing fees, offering free use of facilities and waiving certain requirements. DISCUSSION: In determining how to move forward, staff believes there are several important factors the Council should consider:

1. City Facility Use Categories:

Private Facility Rentals ‐ These events are for the benefit of private parties, businesses or non‐profit organizations, and are typically not open to the public. These can be one‐time or reoccurring rentals, and are based upon building availability at the time the contract is signed. Renters are required to pay the published fees, a security deposit, cleaning fees and show proof of insurance. In some cases, renters are required to provide additional documentation and hire 203


private security, depending upon the event schedule and activities (i.e. alcohol is served). The City does not provide advertising and the renter keeps any revenues collected at these events. Examples include wedding receptions, quinceañeras, business meetings, and private club meetings and activities.

Recreation Classes ‐ Classes are open to the public and taught by private instructors who have entered into contracts with the City. Instructors provide proof of insurance, complete a background check, and if working with minors, obtain a TB test. Classes are generally advertised through the activity guide and City social media. The fees collected for the classes are split 70% instructor, 30% City. Examples include dance and music classes, martial arts, and sports classes.

City sponsored programs and events ‐ These are City organized events that generally do not have an instructor. The City or partner agencies coordinate, staff, and advertise these programs. The City collects any fees collected for these events, although many events are offered at no cost to the community. Examples include pickleball, movie night, breakfast with Santa, the Food Pantry, and Public Meetings.

2. City Expenditures: The City incurs costs to administer recreation services, including administrative staff, building attendants for setting up and monitoring events, supplies, maintenance of recreation facilities, utilities, and capital improvements. The recreation budget for FY 2017‐18 totals $574,188. The Public Works Facilities budget includes $322,800 for the maintenance and operation of recreation facilities. The total budget for parks and recreation for FY 2017‐18 is $896,988. Of this total, a portion is fixed costs including permanent staffing, routine maintenance and one‐time projects. The remainder of the budget is variable, and could increase or decrease depending upon the amount of use of the recreation facilities and number or recreation programs offered throughout the year.

3. City Revenues: The FY 2017‐18 budgets for Recreation operations and facilities include estimated revenues totaling $186,000 from user fees and the County’s annual contribution, with the remaining $710,988 being paid out of the general fund. The adopted budget indicates that the City will heavily subsidize recreation programs for the foreseeable future.

4. Rates Charged by Other Cities: Staff has contacted several surrounding and comparable cities to gather comparable rates for facility rentals. The analysis of those rates is included as Attachment 5, and shows that, in general, the City’s current adopted User Fees are not the lowest or highest among the surveyed cities, but are much lower than the average rates charged to both private groups and non‐profits. The discounts given by the City to non‐profits, as a percentage of the private rates, are on average much smaller than the other cities, with only San Carlos providing a smaller discount.

204


It is not uncommon for agencies to subsidize recreation services and facility rentals, and most cities provide some form of additional discount to non‐profits and government agencies. Although the City’s current rates are lower than many other cities in the area, it’s discounts for non‐profits and government agencies are not as significant. In Half Moon Bay, these organizations play an important role in bringing together the community and providing important social and learning opportunities to some of our most vulnerable residents. The Council should weigh these important community benefits against the City’s resources and priorities. It is a policy decision of the City Council to determine if non‐profits and other government agencies will pay rates to recover costs or not. Staff is prepared to take the Council’s recommendations and prepare them for approval at a future meeting.

ATTACHMENTS:

1. 2010 City of Half Moon Bay Master Fee Schedule 2. Boys and girls club 2017 Half moon Bay Facility Rentals and Fees 3. City of Half Moon Bay Parks and Recreation User Fees Schedule FY 2017‐2018 4. Sample Rates Charged by the Boys and Girls Club 5. Sample Rates Charged by Bay Area Cities

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SAMPLE RATES CHARGED BY THE BOYS AND GIRLS CLUB OF THE COASTSIDE

FOR RECREATION FACILITY RENTALS IN CITY OWNED FACILITIES*

* Data collected by City staff in August 2017, pertaining to rentals during the term of the Boys and Girls Club

Agreement to operate the City’s recreation facilities and programs. This information was provided by each renting organization and cannot be independently confirmed. Other organizations were contacted but did not respond prior to publication of this report.

Organization Facility/ Room

Published Fee

Schedule (per hour)

Actual Fees Charged

(per hour)

Difference (per hour)

Hours per event

Coastside Women’s Club Oak $30.00 $16.66 $13.34 3 hours

Coastside Women’s Club Grand Oak $90.00 $45.00 $45.00 5 hours

ALAS Grand Oak $50.00 $20.00 $30.00 3 hours

Half Moon Bay Library Manzanita $20.00 $5.00 $15.00 4 hours

San Mateo County Realtors Oak $30.00 $27.00 $3.00 1.5 hours

Iglesia Voz De La Eperanza Oak $70.00 $35.71 $34.29 3.5 hours

Little League Train $15.00 $0.00 $15.00 3 hours

Girl Scouts Train $15.00 $0.00 $15.00 2 hours

Kuk Sol Woon Train $30.00 $20.00 $10.00 4 hours

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SAMPLE RATES CHARGED BY BAY AREA CITIES FOR RECREATION FACILITY RENTALS*

City Other Fees Average Deposit

Private/For-Profit

Non-Profit Non-Profit

Discount (%)

Half Moon Bay

Clean up fee: $168

$100-$500

$20-$125

$15-$90

25%-28%

Average of Surveyed

Cities Varies $213-$446 $47-$250 $30-$171 38%-37%

Pacifica City Insurance

serving alcohol: $101-$149

$250-$500

$25-$150

$15-$75 40%-50%

Santa Cruz Set up/Clean up:

$16/hr $300-$400

$25-$575

$15-$525

40%-9%

Tiburon Optional set

up/clean up fee: $75

$550

$45-$240

$30-$150

33%-37%

Belmont

Processing fee: $30, non-profits pay set up fee

$30-$60, optional cleaning fee: $100-$160

$100-$550 $65-$325 $35-$115 46%-64%

Redwood City

Required $100 custodial fee

(groups of 50+)

$50-500

$30-$275

$20-$225

33%-18%

Sausalito Non-refundable application fee:

$50

$50-$120

$47-$89

$21-$42

55%-52%

Daly City

Insurance fee: $105-$200,

Custodial fee: $200,

Non-resident fee: $75

$250-$800 $50-$200

$30-$120 (non-resident

40% off hourly rate, resident is

20%)

40%

San Carlos

Library rooms NP only for $57, $100 janitorial fee for

larger parties

$150 $92-$147 $76-$114 17%-22%

* Data collected by City staff in August 2017. This information was provided by each city. Other cities were

contacted but did not respond prior to publication of this report.

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AGENDA REPORT


TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Matthew Chidester, Deputy City Manager Danielle Sanderson, Senior Management Analyst TITLE: CITY COUNCIL STRATEGIC PLAN UPDATE ______________________________________________________________________________ RECOMMENDATION: Receive the City Council Strategic Plan Update. FISCAL IMPACT: There is no fiscal impact associated with this item. STRATEGIC ELEMENT: This action supports the Infrastructure and Environment, Healthy Communities and Public Safety, Fiscal Sustainability, and Inclusive Governance Elements of the Strategic Plan. BACKGROUND: In preparation for the FY 2017‐18 budget, the City Council convened a retreat in March 2017 to discuss and affirm the Council Adopted Priorities and Capital Improvement Program (CIP) for the upcoming fiscal year. The Council Priorities and CIP together make up the Strategic Plan. At the retreat, the public provided input and comments to the City Council regarding the many priorities under consideration and for prioritization. The City Council reviewed previous Council Priorities from Fiscal Year 2016‐17 and voted for the top five priorities staff would focus on in the upcoming year. The top five Council Priorities are:

Develop an affordable housing strategy

Develop a plan to regulate and tax marijuana

Develop a response to homelessness

Initiate planning for a new or renovated community wide park

Expand the Transient Occupancy Tax (TOT) for short term rentals

Staff’s discussion with the Council about the CIP included a review of on‐going capital programs the City is required to do on an annual basis, current priority projects, potential projects for

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September 5, 2017 Strategic Plan Update Page 2 of 2

Council consideration, and projects that staff recommends be postponed due to resource constraints. The Council directed staff to report back on the progress of the Strategic Plan semi‐annually. This is the first such update. DISCUSSION: Council Priorities: The purpose of identifying Council Priorities is to focus resources and efforts to those areas that the Council believes are of highest importance in the coming fiscal year. Staff has been working to implement each of the Council’s Priorities for FY 2017‐18. Of the five priorities, three have already seen significant progress, and the remaining two have commenced and are in the initial stages of planning. Staff are being hired to assist in the implementation of several priorities, and with these additional resources, progress should accelerate. An update with specific details on each of the priorities is attached. Capital Improvement Program: The five‐year CIP budget totals approximately $80 million. The approved FY 2017‐18 CIP consists of 33 projects totaling approximately $32 million. Of the 33 projects, ten are ongoing programs. Additionally, 29 of the projects have already commenced with the four‐remaining scheduled to begin later in the year. Of the 29 projects that have started, 19 are proceeding on schedule and ten are slightly delayed due to external factors such as Caltrans permits or grant funding. ATTACHMENTS:

1. Strategic Priorities Update 2. CIP Update

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City Council Strategic Plan Updated August 2017

Item Council Priority Status Progress August 2017 Updates

Local Coastal Land Use Plan update to include a study that considers rezoning the downtown for new mixed use development

The Planning Manager provided an update to the City Council at the August 15, 2017 meeting. During the update, staff asked the Council to consider amending the core area boundary which would allow portions of the downtown core to be rezoned for mixed use development. The Council approved the core area expansion for Planning Commission consideration.

Evaluate and improve permitting and development process to reduce constraints that would discourage affordable housing development

In the FY 2017‐18 Adopted Budget, the City Council authorized staff to hire a Senior Planner to take up the permitting and development process that would reduce constraints to building affordable housing. Recruitment is underway.

Increase opportunities for ADU's and evaluate use of tiny homes

ADU ordinance is in place. Once hired, the new Senior Planner above will also explore opportunities for tiny homes and ADUs.

Draft Ordinance and develop program to regulate and tax marijuana

Following several public meetings, staff was directed to hire a consultant to assist in the development of a new City Ordinance to authorize and license the commercial cultivation of cannabis in existing greenhouse facilities. Staff provided an update to Council at the August 15, 2017 meeting, where Council directed staff to include in the draft ordinance authorization of all cannabis activities, except manufacturing. Staff is working with consultant to prepare a draft ordinance incorporating this additional scope. A community meeting will be held on September 13, 2017 to provide information to the public and gather additional feedback. The first reading of the ordinance is scheduled for September 19, 2017, with the second reading tentatively scheduled for October 3, 2017. Staff is also working on the licensing process and collateral materials. Staff expects to be in a position to receive applications in late fall of 2017. The City Council has approved an Senior Planner (same position as is item A) who will process the license applications. Recruitment is underway.

Prioritize encampment clean‐up and monitoring especially around creeks and waterways

Staff is continuing to work closely with the Coastside Homeless Outreach Team (HOT), which includes County staff and local non‐profits collaborating to address the needs of the homeless individuals. City staff attends the monthly meetings and monitors the outreach closely. The County has published a Request for Proposals (RFP) for a pilot rotating shelter on the coastside. Staff will be involved in reviewing the proposals. The County is also piloting with Dignity on Wheels to provide weekly mobile shower and laundry services for the homeless residents, which comes weekly to the Lutheran Church. The City Council authorized staff to hire a Management Analyst position for Recreation and Community Services. Interviews were conducted in late August. This position will work closely with the HOT team to address the needs and provide services to the homeless individuals.

Explore opportunities to partner with local agencies to provide homeless services

The City Manager met with Abundant Grace Catholic Worker House in April following their presentation at the City Council Retreat to offer input and guidance on ideas for a possible hospitality day center and/or offering affordable housing. The City continues to meet as part of the HOT team to explore opportunities to partner with local agencies and non‐profits. Once the new Management Analyst is hired for Recreation and Community Services, a focus of that position will be to find additional opportunities to partner with local agencies and non‐profits.

A

Affordable Housing

C

Homelessness

Cannabis

B

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City Council Strategic Plan Updated August 2017

Item Council Priority Status Progress August 2017 Updates

Initiate planning for a new or renovated community wide park

Staff was directed to identify and develop initial plans for a large, centralized community park, to serve as a gathering place for individuals and families from the entire city. The City entered into a contract with Blue Point Planning (BPP) to develop a Parks Master Plan. BPP has conducted community meetings, stakeholder interviews and a joint session of the Planning Commission and Park and Recreation Commission. Interest in a community park has consistently ranked high among the community members surveyed. BPP presented a draft report with recommendations to City staff, and a community meeting will be held to share the information with the community. Recommendations will be brought to the Planning Commission, Parks and Recreation Commission, and City Council by November 2017.

Improve enforcement of the Transient Occupancy Tax (TOT) on short term rentals

This is a long term project as most short term rental companies do not want to collect and report this information to cities. The goal is to have short term rental companies collect the TOT and provide reporting on vacation units to maintain accountability. The City is currently working with a contractor to manage the TOT filings on behalf of the City. Property owners were notified of the filing responsibilities. Due to these efforts, 19 properties were registered. Collection began in May 2017 and as of June 30, 2017, a total of $16,146 has been collected. 13 properties have been identified as non‐compliant. Follow up notices were mailed to the property owners in August 2017 and they have 30 days to respond. The City is not satisfied with minimals levels of compliance and is reaching out to other cities who have reached agreements with short term vacation rental companies to increase accountability around reporting and collecting TOT.

Community Wide Park

D

Short Term Rentals

E

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City Council Strategic Plan FY 2017-18

Item CIP Project Status Progress August 2017 Updates

1Storm Drain Master

Plan Implementation

Program is focused on Kelly/Highway 1 storm water improvements. Design is 75% completed.

Application for Encroachment Permit submitted to Caltrans and in review.

2

ADA Transition Plan

and Implementation

Program

City is required to prepare a plan to ensure compliance with the Americans with Disabilities Act

(ADA). RFP for Plan preparation is being developed. Anticipating award of contract in December

with completion of plan in fourth quater of fiscal year.

3Emergency Response

ProgramProgram does not have scheduled work and will only be utilized in the event of an emergency.

4Sewer Maintenance

Program

City is finalizing construction contract for the flow diversion at Ocean/Miramontes Avenues. Bids

for sewer point repairs in the Grandview subdivision and Johnston street areas are currently

being solicited. Anticipated completion in early fall. Staff and consultants will continue to design

and conduct repairs identified in the Master Plan.

5Sewer Main Repair

Program

Program is focused on completing project identified in the Pump Station and Force Main Repair

and Replacement Program (item 6).

6

Pump Station and

Force Main Repair and

Replacement Program

Preliminary design of three pump stations (Ocean Colony, Pelican Point, and Bell Moon) is 100%

complete. Coordinating easement acquisition with Ocean Colony Partners. Final design for Ocean

Colony pump station and force main to be completed by spring 2018. Construction scheduled for

June 2018.

7Crosswalks and ADA

Retrofit Program

Design of four crosswalks complete. Bid process completed and bids were rejected. Fifth

crosswalk is being designed and will be added to the project. New bid scheduled for October

2017. Schedule is being coordinated with grant application cycle of Metropolitan Transportation

Commision (MTC). Notification from MTC expected in October 2017.

8

Pavement

Management and

Traffic Safety Program

Slurry seal improvements are being deferred in-lieu of PG&E required patching and sealing

following gas main project. Staff is working with City Attorney on deferred street improvement

agreements. Currently working on design of Correas Street near Library due to unexpected

discovery of poor structural section. Additional projects will be identified and designed

fall/winter 2017 and constructed spring 2018.

4

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9Sidewalk Replacement

and Repair Program

City staff is evaluating three-hundred locations identified in 2016 sidewalk survey for removal

and replacement. Locations are being categorized by cause of damage (tree roots, utility boxes,

or structural failure). Utility companies will be notified of damages due to their utility boxes and

will be requested to fix those locations. Bid for construction of locations the City is responsible

for is planned for early 2018. This program will coordinate with Urban Forest Management

Program.

10

Urban Forest

Management Program

and Street Tree

Assessment

Draft assessment completed and under review. City Council to receive report by November

2017. Assessment will assist in development of City Council program and policies.

11

Seymour Ditch Erosion

Repair (Temporary and

Permanent)

Plans for temporary repair 90% complete. Emergency Coastal Development Permit (CDP)

anticipated to be released week of September 5th. Award of contract scheduled for September

19th. Construction to commence October 1st.

12

Arroyo de en Medio

Erosion Repair - Mirada

Road

San Mateo County Public Works is lead. Design is complete. Awaiting issuance of CDP from

Coastal Commission.

13

General Plan and Local

Coastal Program

Update

City Council updated on August 15, 2017. Planning Commission (PC) in process of reviewing eight

chapters of the LCLUP. PC has completed initial review of four chapters. Hired Huffman and

Broadway Group for environmental mapping. PC to complete review of Draft LCLUP by April 1,

2018.

14Electric Vehicle

Charging Station(s)

Grant submitted to Air District in July 2017. Awaiting approval of grant funds. Per grant, stations

must be installed and operable within nine months (approximately July 2018).

15

Financial Software -

Enterprise Resource

Planning

Comprehensive needs assessment completed. Request for Proposals issued February 28, 2017.

City received three proposals and invited two vendors for proof of capabilities demonstration.

Both vendors submitted Best and Final Offers (BAFOs). Staff is reviewing BAFOs with negotiatons

scheduled for September. Final award of contract expected in November 2017.

16

Permit System and

Asset Management

Software

Project is contingent on outcome of ERP selection and award. Proposals under review include

permit module. GIS will be required to implement permit module.

5

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17 Parks Master Plan

Existing conditions report finalized and presented to Parks and Recreation Commission (PRC) and

Planning Commission. Parks tour completed with PRC and Parks consultant on August 23rd.

Second community workshop scheduled for September. More information available at

www.hmboutdoors.org. Plan adoption anticipated in February 2018.

18Library Replacement -

Phase 2 Construction

Project is on time and within budget. Framing of structure almost complete. First and second

floor concrete poured. Work over the coming months will focus on weather-proofing of

structure (glazing, windows and roofing) for wet season.

19

Correas Street

Underground Utility

District

Awarded Phase 1 construction contract. Work on Phase 1 to be completed by December 2017.

Staff is reviewing recently submitted PG&E contract costs (Phase 2) and negotiating adjustments

with PG&E.

20

Street Lighting on

Correas, Church, and

Purissima

Subproject of Correas Street UUD project (item 19).

21Facilities Maintenance

Assessment

An RFP will be developed and released by December 2017. Staff is evaluating potential of

combining work with ADA Transition Plan contract. Ted Adcock Master Plan and Phase 1

rennovations have been completed. A number of the improvements addressed ADA compliance

as well as major deferred maintenance.

22City Parking Lots

Reconstruction

Plans are complete. Bids will be issued in March 2018 to align with spring/summer construction

season.

23Annual Community

Enhancement ProjectThe project has not yet been identified.

24Main Street Pavement

Repair Project

Plans, specs, and bid package issued. Construction contract scheduled for award September 19,

2017 with construction anticpated early October (prior to Festival).

25Highway 1 Safety -

North

Plans have been revised per City Council direction. CalTrans approved revised plans. Community

meeting held on August 30th. Presentation to Council scheduled for September 19th. City has

received notice from SMCTA regarding potential loss of funding due to project inactivity.

6

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26Highway 1 Safety -

South

CalTrans approved City responses to design exceptions. Expecting PEER approval in September.

Environmental clearance in process. Coastal Development Permit expected in September with

agreement with San Mateo County Transportation Authority by November. City has received

notice from SMCTA regarding potential loss of funding due to project inactivity.

27Main Street Bridge

Project

CalTrans field review completed. Design exceptions currently being processed. Caltrans has

indicated that advanced grant funds for design and environmnental work are conditionally

available to City. Currently evaluating conditions of advanced funding release.

28Poplar Complete Street

Project

Expecting funding to be made available by MTC by January 31, 2018. Currently requesting

advanced funding authorization to initiate design work.

29Ocean Colony Trail

Repair

Work has not commenced due to allocation of staff resources being to other emergent and more

pressing projects including Seymour Ditch Erosion Repair Project (item 11). Completion of work

anticipated by July 2018.

30Bike and Pedestrian

Master Plan

Consultant hosted stakeholder meetings and outreach events to gather information about

existing conditions and needs. Consultant is compiling feedback and continues to gather

community input through the online survey. Based on feedback, consultant is developing

preliminary recommendations for discussion with Bicycle and Pedestrian Advisory Committee.

Plan adoption anticipated in March 2018.

31

Highway 1

Bicycle/Pedestrian Trail

Extension

Applied for grant through MTC. Notification of grant award expected in September 2017.

32

Poplar Beach and

Coastal Trail Gateway

Improvement and

Rehabilitation

New trash and recycling receptacles placed in June 2017. City staff working weekends during

busy season. Research being conducted for higher capacity trash and recycling compactors.

Preparation of RFP for Master Plan to commence in late 2017.

33Vertical Access at

Poplar BeachRelease of design RFP scheduled for January 2018. Permitting to carry forward into FY 2018-19.

7

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AGENDA REPORT


TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Jessica Blair, City Clerk TITLE: LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE ‐ RESOLUTIONS ______________________________________________________________________________ RECOMMENDATION: Provide direction to Mayor Ruddock, League Annual Conference Voting Delegate, regarding the Council’s position on the 2017 Annual Conference Resolutions Packet. FISCAL IMPACT: There is no fiscal impact associated with this action. STRATEGIC ELEMENT: This recommendation supports the Inclusive Governance Element of the Strategic Plan. DISCUSSION: On July 18, 2017, the City Council designated Mayor Ruddock as the City’s voting delegate for the League of California Cities Annual Conference to be held in Sacramento in September. The League of California Cities sent out its 2017 Annual Conference Resolutions Packet which includes two resolutions which will be considered. Mayor Ruddock, the City’s designated voting delegate, will vote and represent the City’s position on the resolutions. The first resolution, if passed, would call upon the Governor and State Legislature to enter discussion with the League and other policy stakeholders to identify and implement strategies that would reduce the unintended negative impacts of existing criminal law. The second resolution, if passed, would support legislation amending Government Code Section 38611 to clarify the definition of local control, providing broad statutory authority for local officials to determine emergency service levels and direct emergency medical response within their jurisdictions. ATTACHMENT: 2017 Annual Conference Resolutions Packet

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AGENDA REPORT


TO: Honorable Mayor and City Council VIA: Magda Gonzalez, City Manager FROM: Jessica Blair, City Clerk TITLE: AGENDA FORMAT DISCUSSION ______________________________________________________________________________ RECOMMENDATION: Discuss format of meeting agenda and direct staff to apply any changes as discussed. FISCAL IMPACT: None associated with this report. STRATEGIC ELEMENT: This recommendation supports the Inclusive Governance Element of the Strategic Plan. DISCUSSION: The current order of agenda sections is as follows: ROLL CALL / PLEDGE OF ALLEGIANCE PROCLAMATIONS AND PRESENTATIONS REPORT OUT FROM RECENT CLOSED SESSION MEETINGS MAYOR’S ANNOUNCEMENTS OF COMMUNITY ACTIVITIES AND COMMUNITY SERVICE CITY MANAGER UPDATES TO COUNCIL PUBLIC FORUM CONSENT CALENDAR ORDINANCES AND PUBLIC HEARINGS RESOLUTIONS AND STAFF REPORTS CITY COUNCIL REPORTS FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS ADJOURNMENT

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