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Home My WebLink AboutNB 5 AB939 RECYCLING 02-20-90DATE: TO: t a •aD . Qo February 5, 1990 NEW BUSINESS NO. 5 2-20-90 Inter - Com William Huston - City Manager FROM: Public Works Department - Administrative Division SUBJECT: AB939 Mandatory Recycling RECOMMENDATION: Receive and file. BACKGROUND: On October 30, 1989, Assembly Bill (AB) 939 was chaptered into law. This bill restructures the California solid waste management program in California and impacts the way cities and counties must address solid waste issues in the future. AB939 mandates a 25 percent reduction in the quantity of waste going 1 to the landfills by 1995 and a 50 percent reduction by the year 2000. By July 1991, each city must prepare and adopt a source reduction and recycling plan which includes the following components: waste characterization, source reduction, recycling, household hazardous wastes, funding and education. Local governments not submitting adequate plans may be levied fines up to $10,000 per day. By 1991, counties must prepare a county -wide integrated waste management (IWM) plan that includes those components addressed by the cities; also, the counties must prepare a siting element providing for 15 years of solid waste management capacity. Orange County and all cities in the county will be forming a committee to work on a uniform overall plan. The County plan does not relieve the City of its obligation to prepare a city plan for Tustin. DISCUSSION: Great Western Reclamation is Tustin's exclusive franchisee for solid waste hauling. They are also a leader in recycling throughout the State. No matter what type of plan the City choses to implement, the type plan and cost of the chosen plan will need to be negotiated for franchise purposes with the hauler. Staff has contacted many cities throughout the State to determine what type of plan and/or if they have an existing plan. We have found that most cities are in the process of reviewing AB939 to develop a plan that best meets their community needs just as Tustin. Those cities that currently have a recycling plan generally fall into two types: transfer station recycling and curbside sorted recycling. TRANSFER STATION RECYCLING: Solid waste materials are picked up in the usual manner by the contracted hauler and delivered to the transfer station where all materials with a proven market are recovered (examples of included materials at this time are: newspapers, cardboard, mixed paper, glass, ferrous metals, aluminum and etc.) After separation, the recyclables are manually removed and the transfer station has the responsibility of disposing of the residual waste at the county landfill sites. Some agencies that participate in this method are: Costa Mesa, parts of Newport Beach and some areas of Orange County. CURBSIDE SORTED RECYCLING: Cities throughout the state such as Palo Alto, San Jose, Santa Rosa, Oceanside and Irvine currently utilize this recycling method. The Irvine plan is generally used as the model. The Irvine plan entails the distribution of three (3) containers to single family units in which the residents place paper, glass and aluminum. The containers are placed at the curb, along side the regular trash container for non -recyclable refuse, on the regular trash day and a special compartmentalized truck picks up the recyclables which are taken to a recycling center. While these two methods of recycling are not the they are the most common methods and appear to for Tustin. As stated previously, no matter what determine most feasible for our community, exclusive franchisee. It should further be Reclamation is providing the service for the recycling. only methods of recycling, be the most pragmatic methods method the Council should it must be negotiated with our noted that Great Western Irvine plan of curbside sorted Great Western Reclamation has indicated they could provide a variety of recycling programs but program parameters would need to be developed so that costs could be estimated in order to make a comparison between programs. Attached are copies of AB939 and contracts with other cities delineating their programs. Bob Ledendecker Monda Buckley Director of Public Works/City Engineer Administrative Assistant MEMBERS CHIEF CONSULTANT: Tom Bales Kip Lipper Charles Calderon Lloyd Connelly i�tt r� »» • P'r '' �1 i �'� �Y.i�a CONSULTANTS: P. Shellito Sam Farr �`� �a Jeffrey Robes Frazee Paul D. Thayer Nolan Frizzelle Bev Hanson COMMITTEE SECRETARY: Ann E. Boone Trace Haarveyrvey ' Marian Follene Bun Margolin � � ~� STATE CAPITOL P.O. BOX 942849 Sally Tanner SACRAMENTO, CA 94249-0001 Maxine Waters TELEPHONE: (916) 445.9367 BYRON D. SHER CHAIRMAN F I N A L SUMMARY OF AB 939 THE INTEGRATED WASTE MANAGEMENT ACT OF 1989 CURRENTLY: 1) CALIFORNIANS GENERATE NEARLY 40 MILLION TONS OF WASTE PER YEAR, MORE THAN ANY OTHER STATE AND MORE THAN ANY INDUSTRIALIZED COUNTRY IN THE WORLD EXCEPT THE UNITED STATES. (THIS AMOUNTS TO ROUGHLY 2.5 TONS OF WASTE PER YEAR PER CAPITA.) 2) OVER 90I OF .SOLID WASTE GENERATED IN iTHE STATE.. CURRENTLY, IS DISPOSED OF _ IN LANDFILLS OR INCINERATED. LANDFILLING OF WASTE HAS BEEN SHOWN TO L. PRODUCE A HOST OF ENVIRONMENTAL PROBLEMS SUCH AS GROUNDWATER CONTAMINATION AND TOXIC AIR EMISSIONS. INCINERATION PROJECTS GENERATE AIR POLLUTION AND PRODUCE TOXIC ASH WHICH MUST BE DISPOSED. MOREOVER, LANDFILLS AND INCINERATION PROJECTS HAVE BECOME INCREASINGLY DIFFICULT TO SITE.AND OPERATE DUE TO STRONG COMMUNITY OPPOSITION AND ADVERSE ENVIRONMENTAL IMPACTS. 3) STATE LAW, WHICH HAS NOT BE REVISED SINCE THE EARLY 19701S, DOES LITTLE TO PROMOTE SOURCE REDUCTION, RECYCLING AND COMPOSTING OF WASTE SO THAT IT IS REUSED OR RECYCLED INSTEAD OF LANDFILLED OR INCINERATED. THERE PRESENTLY ARE NO ENFORCEABLE RECYCLING MANDATES UNDER STATE LAW. THE ,CURRENT PART—TIME 9 MEMBER CALIFORNIA WASTE MANAGEMENT BOARD HAS DONE LITTLE TO PROMOTE ALTERNATIVES TO LANDFILLING OR INCINERATION. AB 9399 THE INTEGRATED WASTE MANAGEMENT ACT OF 1989: 1) RECASTS CURRENT STATE SOLID WASTE MANAGEMENT POLICY, WHICH EMPHASIZES LANDFILLING AND WASTE—TO—ENERGY, TO ESTABLISH AN "INTEGRATED WASTE MANAGEMENT" HIERARCHY WHICH EMPHASIZES SOURCE REDUCTION, REUSE AND RECYCLING. FOR WASTES WHICH CANNOT BE REUSED OR RECYCLED THE POLICY ALLOWS FOR ENVIRONMENTALLY SAFE LANDFILLING AND ENVIRONMENTALLY SAFE TRANSFORMATION (E.G. INCINERATION, PYROLYZATION, GASIFICATION). 2) ESTABLISHES STRICT MANDATES FOR LOCAL AGENCIES TO ACHIEVE A 25Z PER YEAR REDUCTION IN SOLID WASTE DISPOSED BY 1995 AND A 50Z REDUCTION BY THE YEAR 2000. THE BILL PROVIDES FOR UP TO 101 OF THE 50I GOAL TO ACHIEVE THROUGH THE USE OF TRANSFORMATION IF , AND ONLY IF: (1) LOCAL AGENCIES HAVE RECYCLED OR REDUCED THE MAXIMUM FEASIBLE AMOUNT OF WASTE; (2) THESE AGENCIES.COMPLY WITH A SERIES OF STRINGENT ENVIRONMENTAL REQUIREMENTS FOR ANY TRANSFORMATION PROJECT; AND (3) THE LOCAL AGENCY CHOOSES TO TRANSFORM THEIR WASTE. 3) ELIMINATES THE CURRENT 9 MEMBER, PART-TIME CALIFORNIA WASTE MANAGEMENT BOARD. AND CREATES A NEW 6 MEMBER FULL-TIME INTEGRATED WASTE MANAGEMENT BOARD, FOUR OF WHOM ARE APPOINTED BY THE GOVERNOR, ONE EACH BY SENATE RULES COMMITTEE AND THE SPEAKER. TWO OF THE GOVERNOR'S APPOINTEES MUST REPRESENT INDUSTRY AND ENVIRONMENTAL GROUPS. RESPECTIVELY. 4) ESTABLISHES STRICT CONFLICT OF INTEREST PROHIBITIONS FOR BOARD MEMBERS AND PROHIBITS SPECIFIED APPOINTEES WHO RECEIVED MORE THAN 1OZ OF PRECEDING 2 YEARS INCOME FROM SERVING ON BOARD (SIMILAR TO WATER BOARD, ENERGY COMMISSION RESTRICTIONS). 5) FUNDS STATE ACTIVITIES TO REDUCE AND RECYCLE SOLID WASTE FROM A $1 PER TON TIPPING FEE SURCHARGE ON WASTE DISPOSED OF IN LANDFILLS. 6) ELIMINATES CURRENT COUNTY SOLID WASTE MANAGEMENT PLANNING (CoSWMP) PROCESS, WHICH HAS PROVEN INEFFECTIVE AND WHICH EMPHASIZES LANDFILLING AND WASTE -TO -ENERGY, AND REPLACES IT AN "INTEGRATED WASTE MANAGEMENT PLANNING PROCESS" WHICH REQUIRES LOCAL GOVERNMENTS TO PREPARE, SUBMIT TO THE BOARD AND IMPLEMENT COMPREHENSIVE PROGRAMS TO MANAGE WASTE. 7) REQUIRES THESE INTEGRATED WASTE MANAGEMENT PLANS TO HAVE THE FOLLOWING ELEMENTS: 0 A WASTE CHARACTERIZATION ELEMENT WHICH IDENTIFIES THE AMOUNT AND TYPES OF WASTE GENERATED IN THE LOCAL AGENCY'S JURISDICTION 0 SOURCE REDUCTION, RECYCLING AND COMPOSTING ELEMENTS WHICH IDENTIFY THE MEASURES THE LOCAL AGENCY WILL TAKE TO REDUCE, RECYCLE AND COMPOST WASTE- 0 ASTE0 A HOUSEHOLD HAZARDOUS WASTE ELEMENT, WHICH IDENTIFIES HOW THE LOCAL AGENCY WILL COLLECT AND DISPOSE OF HOUSEHOLD HAZARDOUS WASTES. 0 A SOLID WASTE FACILITIES CAPACITY ELEMENT WHICH IDENTIFIES THE LANDFILL SPACE THE LOCAL AGENCY HAS AVAILABLE IN THE NEXT 15 YEARS. 8) ESTABLISHES PROCEDURES FOR THE BOARD TO REVIEW APPROVE AND PERIODICALLY RECEIVE UPDATES FROM LOCAL AGENCIES FOR INTEGRATED WASTE MANAGEMENT PLANS. 9) REQUIRES THE.BOARD TO PREPARE AND SUBMIT TO THE LEGISLATURE MODEL LEGISLATION TO LEVY ADVANCE DISPOSAL FEES ON WASTE GENERATED IN THE STATE TO BE INTRODUCED AND SPONSORED BY THE BOARD IN THE 1991 LEGISLATIVE SESSION. 10) COMPREHENSIVELY REVISES, RECASTS AND UPDATES CURRENT SOLID WASTE MANAGEMENT LAW (GOVERNMENT CODE TITLE 7.3), INCORPORATING SECTIONS OF THE HEALTH AND SAFETY CODE WHICH AFFECT SOLID WASTE, REPEALING OBSOLETE STATUTES AND UPGRADING OUTDATED DEFINITIONS. AMENDMENT TO THE AGREEMENT DATED AS OF JULY 1, 1987 BETWEEN THE CITY OF IRVINE AND DEWEY'S RUBBISH SERVICE FOR COLLECTION OF SOLID WASTES AMENDMENT TO AGREEMENT DATED MARCH 30, 1987 BETWEEN THE CITY OF IRVINE AND DEWEY'S RUBBISH SERVICE FOR COLLECTION OF SOLID WASTES THIS AMENDMENT (the "AMENDMENT") TO THE AGREEMENT (the "AGREEMENT") between DEWEY'S RUBBISH SERVICE, a California corporation (hereafter "CONTRACTOR"), and the CITY OF IRVINE, a municipal corporation (hereafter "CITY"), is made and entered into this 1st day of July, 1987, by and between the CITY and the CONTRACTOR. RECITALS WHEREAS, CITY desires to provide curbside recycling services in the City by CONTRACTOR in conjunction with the collection of solid wastes in the City pursuant to the AGREEMENT; and WHEREAS, CONTRACTOR desires to provide such curbside recycling services in the City in conjunction with its exclusive contract for collection of solid wastes in the City pursuant to the AGREEMENT; and WHEREAS, the parties agreed to investigate, evaluate and implement a curbside recycling services program in Section 4.06.07 of this AGREEMENT. i ~' NOW, THEREFORE, CITY and CONTRACTOR do hereby agree as follows: SECTION 1. SCOPE OF SERVICES. A. Curbside Recycling. CONTRACTOR shall perform curbside recycling services in the City as follows: 1. Collection. Commencing on September 11 1987, CONTRACTOR shall collect and remove all Recyclable Materials, which are segregated according to type of material and placed in Recycling Containers (as described in Schedule B), at the curbside on public streets, alleyways or locations for all Eligible Residential Premises.„ Eligible Residential Premises” is defined in Schedule A entitled "Phase -In of Service", attached hereto and incorporated herein by this reference. r 2. Recyclable Materials Defined. For the purposes of this AMENDMENT and the AGREEMENT, Recyclable Materials means and includes newspapers, glass, metal cans (aluminum and delabeled tin), and such other materials as are mutually agreed upon in writing by CONTRACTOR and CITY's Administrative Authority, which are collected by CONTRACTOR pursuant to Subsection A.1 of this Section. 3. Time of Collection. Once each week, regardless of weather conditions, CONTRACTOR shall collect the Recyclable Materials placed at the curbside for collection pursuant to Subsection A.1 of this Section. Collection will be on the same day of the week as Refuse collection service pursuant to the AGREEMENT. 4. Container Purchase and Distribution. CONTRACTOR shall purchase, at CONTRACTOR's sole cost and expense, and shall distribute one set of Recycling Containers to each Eligible Residential Premise in the CITY. The Recycling Containers are those containers described in Schedule B, entitled "RECYCLING CONTAINERS", attached hereto and incorporated herein by this reference, or other similar containers mutually agreed upon by CONTRACTOR and CITY's Director of Public Services. Following the distribution of the Recycling Containers as provided herein, CONTRACTOR shall not be required to purchase ( or provide additional Recycling Containers unless requested to do so by CITY. In the event CITY requests CONTRACTOR to provide additional Recycling Containers, the cost of the Containers and the distribution thereof shall be borne by CITY. The ownership of the Recycling Containers purchased by CONTRACTOR under this AMENDMENT shall be and remain with CITY. 5. Replacement of Containers. The parties acknowledge that from time to time Recycling Containers supplied by CONTRACTOR may be damaged, destroyed, lost or stolen. CITY agrees to cause the resident responsible for such loss or damage to replace said Recycling Containers at the expense of the resident. CONTRACTOR shall make sets of three (3) Recycling Containers available for purchase by residents during the term of this AMENDMENT. 6. Transportation of Materials. CONTRACTOR shall transport the collected Recyclable Materials to the Recycling Center described in Subsection B of this Section. -2- 7. Labor and Costs. CONTRACTOR shall, at its sole cost and expense, except as otherwise provided herein, furnish all labor and equipment required to perform curbside recycling; services pursuant to this AMENDMENT. B. Standards for Program Recycling and Salvage Values. 1. Citizen Participation. During the sixth month following commencement of the curbside recycling services by CONTRACTOR pursuant to this AMENDMENT, the goal of citizen participation levels is 40%. In the event that the participation rate does not reach 40% during that sixth month, CITY shall have the right to terminate this AMENDMENT or negotiate with CONTRACTOR in good faith towards a mutually acceptable modification thereof. 100% participation is defined as one or more set -outs (that is, the placement by Eligible Residential Premises at curbside of Recyclable Materials in the manner described in Subsection A.1 of this Section), per month per Eligible Residential Premises. 2. Salvage Revenues. If the proceeds from the sale of Recyclable Materials in any given quarter (quarters for purposes of this AMENDMENT shall commence of the first day of January, April, July and October), falls below an economically feasible level causing a financial burden upon CITY or ! CONTRACTOR, the CITY shall have the right to terminate this `- AMENDMENT or negotiate with CONTRACTOR in good faith towards a mutually acceptable modification thereof. 3. Recycling Center. The CONTRACTOR shall transport all Recyclable Materials collected to one of four Recycling Centers as indicated in Subsection E of this Section. The price offered by the Recycling Center for the purchase of Recyclable Materials shall be based on the provisions set forth in said Subsection E. In the event that the CONTRACTOR is directed by CITY to transport the Recyclable Materials to a more distant site or finds it necessary due to closure of the mutually agreed upon Recycling Center(s) to establish its own Recycling Center, CONTRACTOR may at that time petition and the City Council will consider a request for an adjustment of the Per Unit Subsidy set forth in Subsection 2.A of this AMENDMENT. 4. Cost of Termination Under Provisions 1 through 3 of Subsection 1.B. In the event that curbside recycling services are terminated for reasons described in this Subsection 1.B, CITY shall reimburse CONTRACTOR for the net capital investment and trial phase operating losses associated with the establishment of the program as verified by actual costs. Those costs are estimated on Schedule F, entitled "ESTIMATE OF COST OF TERMINATION", attached hereto and incorporated herein by this reference. -3- � � r r Ilk, C. Public Awareness Program. CITY and CONTRACTOR shall work jointly to develop and implement the Public Awareness Program described in Schedule C, entitled "PUBLIC AWARENESS PROGRAM", attached hereto and incorporated herein by this reference. D. Reports. CONTRACTOR shall file with CITY written reports of CONTRACTOR's performance under this .AMENDMENT as more particularly set forth in Schedule D, entitled "REPORTS", attached hereto and incorporated herein by this reference. E. Sale of Recyclable Materials. CONTRACTOR shall sell all Recyclable Materials collected by CONTRACTOR pursuant to this AMENDMENT in accordance with Subsection B.3 of this Section. Revenue obtained from such sales shall be retained by CONTRACTOR except as provided in Subsection 2.0 hereof. CONTRACTOR shall negotiate with the mutually agreed upon Recycling Centers to attempt to obtain fair market value for the Recyclable Materials. The fair market value ("Fair Market Value") of Recyclable Materials shall be the average price around the Orange County area at the time of sale selected by mutual agreement of the parties. Initially, the four (4) purchasers used for determining the average fair market value shall be Golden State, Men Cal, UCI Recycling Center and Sunset Environmental. A -quarterly review of major purchases of Recyclable Materials by these purchasers will be performed by the CONTRACTOR and provided to the CITY to determine Fair Market Value. SECTION 2. COMPENSATION. A. Compensation for Services. Except as otherwise provided in this Section 2, for and in consideration of the services to be performed by CONTRACTOR pursuant to this AMENDMENT, CITY agrees to make payment to CONTRACTOR, as follows: - During the initial ten month trial phase, CITY shall make monthly payments of $12,900 for a total of $129,000 as identified in Schedule G, entitled "RECYCLING PROPOSAL - TRIAL PHASE", attached hereto and incorporated herein by this reference. -4- Q_ - Upon adoption by City Council of a city-wide recycling program, CITY shall remit a monthly Per Un it Subsidy of S1.06 per Eligible Residential Premises, based upon the number of sets of Recycling Containers delivered, as depicted in Schedule H, entitled "RECYCLING PROPOSAL - FIVE YEAR PRO -FORMA", attached hereto and incorporated herein by this reference. The Per Unit Subsidy shall only be adjusted in accordance with Subsection 2.B below as of July 1st each year during the term of this AMENDMENT. B. Monthly Payment Adjustments. Any fluctuation in the Consumer Price Index above or below 4% during the year (or part thereof in the case of the first year) preceding each July 1st during the term of this AMENDMENT, which detrimentally affects either the CONTRACTOR or CITY, shall give the detrimentally affected party the right to negotiate with the other party for a fair adjustment to the Per Unit Subsidy set forth in Subsection 2.A of this Section, which shall be effective on July 1st of each -calendar year during the term of this AMENDMENT. C. Salvage Revenue. The compensation set forth in Subsection 2.A of this Section is based upon the assumption that CONTRACTOR will receive "Salvage Revenue" (that is, the revenue obtained by the CONTRACTOR from the sale of Recyclable Materials collected by CONTRACTOR under this AMENDMENT) as described in Schedule E, entitled "ESTIMATED BREAKDOWN BY MATERIAL OF TONNAGES AND REVENUES", attached hereto and incorporated herein by this reference. If the actual Salvage Revenue received by CONTRACTOR during a time period set forth in Schedule E differs from the Estimated Total Salvage Revenue set forth in Schedule E for the time period in question, CITY's payment to CONTRACTOR shall be adjusted as follows: 1. If the actual Salvage Revenue received for the time period in question is less than the Estimated Total Salvage Revenue for that period, CITY shall pay to CONTRACTOR one-half (1/2) of the deficit not later than twenty (20) days from receipt of the revenue statement for that period from CONTRACTOR. 2. If the actual Salvage Revenue received for the time period in question is greater than the Estimated Total Salvage Revenue for that period, CONTRACTOR shall remit to the CITY payment in the amount of one-half (1/2) of the excess not later than twenty (20) days from the end of that period. -5- 3. The Market Rates set forth in Schedule E shall be renegotiated by the parties in the event that factors beyond the reasonable control of the parties materially change the market for the sale of the Recyclable Materials in question. SECTION 3. CITY'S RESPONSIBILITIES. A. Public Awareness Program. CITY shall participate in the Public Awareness Program as provided in Schedule C of this AMENDMENT. B. Protection of Materials. CITY agrees to take such steps as may reasonably necessary to protect CONTRACTOR's ownership of all Recyclable Materials placed at the curbside for collection by CONTRACTOR under the terms of this AMENDMENT and shall reasonably enforce its anti -scavenging ordinance, which shall be adopted by the City Council prior to commencement of services pursuant to this AMENDMENT. C. Coordination with AGREEMENT. The parties acknowledge that from time to time it may be (� helpful to the performance of this AMENDMENT to coordinate with the refuse collection services pursuant to the AGREEMENT with respect to door hangers. to householders, educating citizens to the -need to leave Recyclable Materials for CONTRACTOR, placing recycling stickers or signs on collection vehicles, or in other ways. CITY will coordinate with the CONTRACTOR for such cooperation. SECTION 4. EXPANSION PROGRAM. A. Curbside Recycling for Expansion Areas. CONTRACTOR shall have three months from the completion of the final move -in in newly constructed residential areas and three months from the date of annexation of any new areas to the CITY to provide full curbside recycling service to Eligible Residential Premises in said areas to which this AMENDMENT applies. The Per Unit Subsidy in existence at the time of final move -in or annexation, as the case may be, will initially be the charge to the CITY for services to Eligible Residential Premises in such expansion areas pursuant to this AMENDMENT. SECTION 5. RENEGOTIATION OF TERMS FOLLOWING INITIAL FIVE-YEAR TERM. The parties acknowledge that this A'HEND:1IENT is based on assumptions predicated on a five (5) year term of operation. The parties agree that the terms of the recycling program operation, costs, and charges followind the initial five (5) years are subject to being renegotiated ,at the option of the CITY upon notice to renegotiate given to the 'CONTRACTOR on or before March 1, 1991, with the revised terms, if any, becoming effective on September 1, 1992. SECTION 6. INTERPRETATION. Except as amended by this AMENDMENT, the AGREEMENT shall remain unchanged and in full force and effect. The provisions of the ,AGREEMENT, except as hereby amended, shall apply fully to this 'AMENDMENT, unless the context otherwise requires. curbside.amd _7_ WITNESS THE EXECUTION HEREOF on the day and ,year first herein above written. APPROVED A51TO FORM: City At orney Dated: -7.-/4 , 1987 Attest: David �. Kel\ly AssistAnt Se retary Dated: 1987 CITY OF IRVINE, a municipal corporation By r ayo 6 7 �/ Attest: ity �ye —rk "CITY" DEWEY'S RUBBISH SERVICE, a California corporation By fJ'1'11 I, George zar k Vice President 16122 Construction Circle East Irvine, CA 92714 "CONTRACTOR" SCHEDULE A PHASE-IN OF SERVICE CITY OF IRVINE IMPLEMENTATION OF CURBSIDE RECYCLING The implementation of the curbside recycling program for the City of Irvine is as follows: 1. Distribution of five hundred (500) sets of Recycling Containers per day until siX thousand (6000) sets have been delivered (approximately 12 days). The sets of Recycling Containers will be delivered to the Eligible Residential Premises outlined in the maps attached and are those Premises (encompassed by homeowners associations) agreed upon by the City. 2. Commence -collection of Recyclable Materials on the next regular pickup day following the delivery of the last set of Containers, but no later than September 1, 1987. 3. Upon the City's decision to extend collection of Recyclable Materials to the entire City, the ( Contractor shall order and deliver sets of Recycling . Containers to the remaining Eligible Residential Premises. SCHEDULE B RECYCLING CONTAINERS CONTRACTOR shall provide a set of three (3) "Recycling Containers" or other similar containers mutually agreed upon by the CONTRACTOR and CITY'S Director of Public Services, to each Eligible Residential Premises in the City of Irvine. These containers are specifically made of rigid plastic construction for stacking in each other to assist homeowners to participate in the curbside recycling program. One container is used to. store newspaper, one for glass and one for metal cans (aluminum and delabeled tin) and shall have affixed a label identifying them as property of the City of Irvine Recycling. FIGURE A depicts the containers in use. FIGURE A SCHEDULE C PUBLIC AWARENESS PROGRAM 1. CONTRACTORS RESPONSIBILITIES A. Introductory Packet CONTRACTOR will prepare an Introductory packet of information regarding the curbside recycling program, approved in advance by CITY's Director of Public Services, and will distribute such packet with the Recycling Containers to each Eligible Residential Premises in the CITY. The packet shall include: 1. A letter from the Mayor and the City Council of the CITY urging the residents to participate in the program. 2. A two-part information card containing specific information to the resident regarding collection day, non -collection holidays, preparation of materials, and other appropriate matters. There will also be a tear -off and mail in card for volunteers. B. Upon request by CITY, CONTRACTOR will assist CITY in developing a listing of non -participating Eligible Residential Premises. C. CONTRACTOR will assist CITY'S public awareness efforts wherever possible. 2. CITY'S RESPONSIBILITIES A. CITY will contact all local media to seek coverage of the recycling program to increase citizen awareness of the benefits of recycling. B. CITY will develop an overall "Promotional Plan" for the Irvine Curbside Recycling Program, with goals, strategies and timetables for CONTRACTOR and CITY actions. C. CITY will encourage volunteers to make contact with neighbors who do not participate in the curbside recycling program and encourage them to participate. Volunteers will either keep track of participants or will receive a listing from the CITY of the non -participating Eligible Residential Premises. CITY will hold briefing sessions for volunteers to explain how they may best encourage participation. At these sessions CITY will distribute printed materials to assist volunteers. D. CITY will commit to the funds necessary for development and implementation of the overall "Promotional Plan" in B. above. SCHEDULE D REPORTS CONTRACTOR shall submit to CITY the following reports, on forms approved by CITY, during the term of this AMENDMENT: A. Monthly Project Reports Within ten (10) working days after the last day or each month, CONTRACTOR shall submit a monthly project report to include at least all of the following: (1) Summaries of tonnages of all Recyclable Materials recovered, by materials. (2) Summaries of tonnages of all Materials sold, by materials. (3) Market prices for all Recyclable Materials collected from curbside and sold by CONTRACTOR. The weight receipts shall be available for inspection by CITY upon request. (4) Resident participation rates in terms of weekly set -out (as described in Subsection l.B.l of the AMENDMENT) counts, and monthly participation rates calculated at 2.5 times the average weekly set - out rate. (5) A summary of missed pick-ups by routes and explana- tion of noteworthy experiences, and a summary of telephone calls received by category, including inquires about the program, missed pickups, and container replacement. (6) Copies of CONTRACTOR'S daily reports showing the amount of Recyclable Materials collected on each route, the total number of set -outs on each route, and a number of truck loads for each route, as requested by CITY. B. Annual Reports On or before 30 days after the completion of each year of the term of this AMENDMENT, CONTRACTOR shall submit a year-end annual report to include at least the following: (1) A collated summary of the information contained in the monthly reports, and a summary of the parti- cipation rates and tonnages of recovered materials. (2) A discussion of public awareness activities and their impact on participation and recovered volumes. V i t B. Annual Reoorts (con't) (3) A discussion of highlights and other noteworthy experiences, measures taken to resolve problems, increase efficiency and household participation. (4) An Annual Salvage Revenue Statement of all sales of Recyclable Materials from the curbside collection program. Reports shall be submitted to: Director of Public Services City of Irvine 15029 Sand Canyon Irvine, Ca 92713 t C) C ;U n tO H to H H FG d w O ro Kc n H rz H � G) O cn 3 H cn 3 ► Cn 3 H C rt a a o a a o a a a o E (D a n C El F✓ n C cn F -J ►-i C cn C F- C PV (n FJ • C �' (n to C 7C cn 110 C a (D C a (D a (D a (" (D cn W rt F,• w r i- w rt a (D rt (D rt (D rt W C (D C (D C (D (D (D (D (D � � G G G G (D lD (D Cn tai n ,-i ro00 -En C� N N Ul bA J N N n 0 O O O m N m 4�b w 01 O O O C1. O O co O Ln .cam. lD z H 'co G7 x J cn C H >nx z0�j -U� -cn � m U, w w z O Ul O a N N m w w l0 N n O O O O W O O 0) O U1 00 l0 H z m z H co G7 x _ � H ronx zoz ( F -J a, _ _ _ h m Ln w w z O U1 O l j N 0) W w l0 i—' n 0 O O O W O O m O Ul 00 l0 H z x co En C4 H tr1 cnx> W N X t=i w Ln w w 0 O N .A W 110 N J J n 0 O co O m m 0% w to F✓ H z y O O O N O Ln .A O O N l0 z H x 0o G7 x tri w C-4 H tTi anx> -U). 4_0 -(n r0zn W N K�t=ix .A Ln .A Ul CTj _ F- t7 O l0 Ln w N N N 00 z J J O O F-' 00 O w l(P n 0 to O to o Ln o O O O HzH lozHx 00 G) x t7l C-4 :3.' cz:n>tri w N r0H> J Ln 0, KXzn • F-' _ xHx O to a,. .c. .A N J Oo til z J W C) a PA F -A LD O w l0 z n O In Ul O 00 O Ln m O O O n til ko C: lOc��x O tai H t2i M C) C ;U n tO H to H H FG d w O ro Kc n H rz H � G) 1 SCHEDULE F ESTIMATE OF COST OF TERMINATION CITY OF IRVINE RECYCLING PROPOSAL Sum of: A) Net Book Value of the capital outlay on vehicles less actual resale value of vehicles and net book value of Recycling Containers. Phase I Capital Investment Vehicles $102,000 Recycling Containers 98,700 $200,700 Less: Phase I Depreciation Vehicles $(19,700) Recycling Containers (17,000) $(36,.700) Net Book Value at the end of Phase I $164,000 B) Shortfall from expected Salvage Revenue level of $33,000 over the term of the 10 month trial phase. CAPITAL INVESTMENT TEN MONTH ------------------------------ SCHEDULE G �_.ECYCLING PROPOSAL - CITY OF IRVINE 06 -Jul -87 IMPLEMENTATION OF THE TEN MONTH TRIAL PHASE 69000 UNITS TO BE STARTED ON SEPTEMER 1,1987 ------------------------------------------ TEN MONTH DESCRIPTION TRIAL PHASE ------------------------------------------ REVENUES: ------------------------------ UNITS SERVICED 61000 SUBSIDY REVENUE REQUIRED $129,000 SALVAGE REVENUE $33,000 TOTAL REVENUE $1629000 OPERATING EXPENSES: DRIVERS AND HELPERS $35,600 TRUCK OPERATING EXPENSE $3,200 TRUCK MAINTENANCE $6,000 I1[5URANCE AND CLAIMS $142200 CK DEPRECIATION $1.91700 .TAINER DEPRECIATION ( $17,000 TTL OPERATING EXPENSE ----------- $95,700 OPERATING INCOME $667300 S.G. & A. EXPENSES: SALARIES AND ADMINISTRATIVE $9,600 PUBLIC RELATIONS $23,700 INTEREST EXPENSE $16,300 TTL S.G. & A. 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Q E-+ ¢ H E4w4ZUW x ¢ AEia I AdE-QWA w a *8Z<X c� w zlzz x a w ¢aW ¢a¢0ww 0 a 0 c7cnaE-� cn0zzAz 4 •w cn a Q F -t E- ->00 > 0 0UES QaW H O=) JD O z aaazx0 ¢�z AE - E~ -+E-U v)Cie H E- i z i E-4 w I z � I w i nn E - w I U) > I W z I > ►-+ t z I H a I I a E- I d H 1 U) E•+ a t a O 1 to W H 0 I w 1 a H 1 U Q I H E- x z - I w0 I > U CURBSIDE RECYCLING AMENDMENT TO CONTRACT FOR COLLECTION AND TRANSPORTATION OF SOLID WASTE REFUSE PRODUCED OR ACCUMULATED IN THE CITY OF LAGUNA BEACH 1 Eq -,::3V CURBSIDE RECYCLING AMENDMENT TO CONTRACT FOR COLLECTION AND TRANSPORTATI SOLID WASTE REFUSE PRODUCED OR ACC IN THE CITY OF LAGUNA BEAC} �y THIS CURBSIDE RECYCLING AMENDMENT ("Amendment") is entered into this day of , 1989 by and between WASTE MANAGEMENT, INC., ("CONTRACTOR"), and the CITY OF LAGUNA BEACH, a municipal corporation ("CITY"). RECITALS WHEREAS, CITY and CONTRACTOR entered into that certain Contract for Collection and Transportation of Solid Waste Refuse Produced or Accumulated in the City of Laguna Beach, dated April 5, 1972, as amended ("Refuse Collection Agreement"). WHEREAS, CITY desires to provide curbside recycling services to CITY residents in conjunction with the collection of solid waste. WHEREAS, CONTRACTOR desires to provide such curbside recycling services in CITY in conjunction with its exclusive Refuse Collection Agreement. NOW, THEREFORE, in consideration of the respective and mutual covenants and promises contained herein, and subject to the following terms and conditions, CITY and CONTRACTOR do hereby agree as follows: SECTION I SCOPE OF SERVICES. A. Curbside Recycling CONTRACTOR shall perform curbside recycling services in the City as follows: 6 r• 1. Collection. Commencing on November 1, 1989, CONTRACTOR shall collect and remove all Recyclable Materials, which are separated according to type of material and placed in the Recycling Containers (as described in Schedule A) at the curbside on public streets, alleyways or locations* for all Eligible Residential Premises (as is defined in Schedule B, entitled "Phase -In of Service," attached hereto). 2. Recvclable Materials Defined For the purposes of this Amendment, Recyclable Materials means and includes newspapers, glass, aluminum cans and P.E.T. plastics and such other matwriting by as are mutually agreed upon in _ Y CONTRACTOR and CITY, which are collected by CONTRACTOR pursuant to Subsection I (A) (1). 3. Time of Collection Once each week, regardless of weather conditions, CONTRACTOR shall collect the Recyclable Materials placed at the curbside for collection pursuant to Subsection I (A) (1). Collection will be on the same day of the week as Refuse collection service pursuant to the Refuse Collection Agreement. -- 4. Container Purchase and Distributions. CONTRACTOR shall purchase, at CONTRACTOR's sole cost and expense, and shall distribute one set of the Recycling Containers to each Eligible Residential Premise in CITY. The Recycling Containers may be substituted with other similar containers mutually agreed upon in writing by CONTRACTOR and CITY. Following the distribution of the Recycling Containers as provided herein, CONTRACTOR shall not be required to purchase or provide additional Recycling Containers unless requested to do so by CITY. In the event CITY requests CONTRACTOR to provide additional Recycling Containers, the cost of the Recycling Containers and the distribution thereof shall be paid for by CITY. The ownership of the Recycling Containers purchased by CONTRACTOR under this Amendment shall be and remain with CITY. 5. Replacement of Containers The parties acknowledge that from time to time the Recycling Containers supplied by CONTRACTOR may be damaged, destroyed, lost or stolen, CITY agrees to cause the resident responsible for such loss or damage to replace said Recycling Containers at the expense of the resident. CONTRACTOR shall make sets of three (3) Recycling Containers available for purchase by residents during the term of this Amendment. 3 6. Transportation of Materials. CONTRACTOR shall transport the collected Recyclable Materials to the Recycling Center(s) described in Subsection :.. --- - - 7. - Labor and Costs. CONTRACTOR shall, at its sole cost and expense, except as otherwise provided herein, furnish all labor and equipment required to perform curbside recycling services pursuant to this Amendment. B. Standards for Program Recycling and Salvage Values. 1. Citizen Participation. During the sixth month following commencement of the curbside recycling services by CONTRACTOR pursuant to this Amendment, the goal of citizen participation is 40%. In the event that the participation rate does not reach 40% during that sixth month, CITY shall have the right to terminate this Amendment or negotiate with CONTRACTOR in good faith towards a mutually acceptable modification thereof. 100% participation is defined as one or more set -outs (i.e., the placement by Eligible Residential Premises at curbside of Recyclable Materials in the manner described in Subsection. I (A) (1) of this Section) per month per Eligible Residential Premises. l' 2. Salvage Revenues. If the proceeds from the sale of Recyclable Materials in any given quarter (quarters for purposes of this Amendment shall commence on the. first day of January, April, July and October) falls below an economically feasible level causing a financial burden upon CITY or CONTRACTOR, the CITY shall have the right to terminate this Amendment or negotiate with CONTRACTOR in good faith towards a mutually acceptable modification thereof. 3. Recycling Center(s). CONTRACTOR shall transport all Recyclable Materials collected to one of three (3) Recycling Centers as indicated in Subsection I(E). The price offered by the Recycling Center for the purchase of Recyclable Materials shall be based on the provisions set forth in said Subsection I(E). In the event that CONTRACTOR is directed by CITY to transport the Recyclable Materials to a more distant site or finds it necessary due to closure of the mutually agreed upon Recycling Center(s) to establish its own Recycling Center, CONTRACTOR may at that time petition and the City Council will consider a request for an adjustment of the Per Unit Subsidy set forth in Subsection II(A). 4 4. Cost of Termination Under of Subsections I (B) (1) - 1(B)(3) In the event that curbside recycling services are terminated for reasons described in this Subsection I(B), CITY shall reimburse CONTRACTOR for the net capital investment and operating losses associated with the- establishment of the program as verified. by actual costs.-.- Those.costs. are estimated on. -Schedule F, entitled "ESTIMATE OF COST OF TERMINATION," attached hereto. C. Public Awareness Program. :_ _ __ _ _ CITY and CONTRACTOR shall work jointly to develop and implement the Public Awareness Program described in Schedule C, entitled "PUBLIC AWARENESS PROGRAM," attached hereto. D. Reports. CONTRACTOR shall file with CITY written reports of CONTRACTOR's performance under this Amendment as more particularly set forth in Schedule D, Entitled "REPORTS," attached hereto. _ E. Sale of Recyclable Materials. f CONTRACTOR shall sell all Recyclable Materials collected by CONTRACTOR pursuant to this Amendment in accordance with Subsection I (B) (3). Revenue obtained from such sales shall be retained by CONTRACTOR except as provided in Subsection II (C). CONTRACTOR shall negotiate with the mutually agreed upon Recycling Centers to attempt to obtain fair market value for the Recyclable Materials. The fair market value ("Fair Market Value") of Recyclable Materials shall be the average price in and around the Orange County area at the time of sale. Initially, the three (3) purchasers used for determining the average fair market value shall be Garden State, Men -Cal and Sunset Environmental. A quarterly review of major purchases of Recyclable Materials by these purchasers will be performed by the CONTRACTOR and provided to CITY to determine Fair Market Value. SECTION II COMPENSATION. A. Compensation for Services. Except as otherwise provided in this Section ll, for and in consideration of the services to be performed by CONTRACTOR pursuant to this Amendment, CITY 5 agrees to pay to CONTRACTOR a monthly Per Unit Subsidy of $1.06 per Eligible i Residential Premises, based upon the number of sets of Recycling Containers delivered, as depicted in Schedule G, entitled "RECYCLING PROPOSAL - FIVE YEAR PRO- FORMA,"..attached. -'The Per, Unit Subsidy shall only be adjusted in accordance with Subsection II(B). B. Salvage Revenue. The compensation.- set _ forth in Subsection II(A) is based upon the assumption that CONTRACTOR will receive "Salvage Revenue" (i.e., -the 'revenue obtained by -the CONTRACTOR from the sale of Recyclable Materials collected by CONTRACTOR under this Amendment) as described in Schedule E, entitled "ESTIMATED BREAKDOWN BY MATERIAL OF TONNAGES AND REVENUES," attached hereto. If the actual Salvage Revenue received by CONTRACTOR during a time period set forth in Schedule E differs from the Estimated Total Salvage Revenue set forth in Schedule E for the time period in question, CITY's payment to CONTRACTOR shall be - adjusted as follows: 1. _ If the actual Salvage Revenue received for the time period in question is less that the Estimated Total Salvage Revenue for that period, CITY shall pay to CONTRACTOR one-half (1/2) of the deficit not later than twenty (20) days from receipt of the revenue statement for that period from CONTRACTOR. 2. If the actual Salvage Revenue received for the time period in question is greater that the Estimated Total Salvage Revenue for that period, CONTRACTOR shall remit to the CITY payment in the amount of one-half (1/2) of the excess not later than twenty (20) days from the end of that period. 3. The Market Rates set forth in Schedule E shall be renegotiated by the parties in the event that factors beyond the reasonable control of the parties materially change the market for the sale of the Recyclable Materials in question. SECTION III CITY'S RESPONSIBILITIES. A. Public Awareness Program. CITY shall participate in the Public Awareness Program as provided in Schedule C attached hereto. 6 z - B. Protection of Materials. CITY agrees to take such steps as may be reasonably necessary to protect CONTRACTOWs ownership of all Recyclable Materials placed at the curbside for -collection by CONTRACTOR under the terms of this Amendment and shall reasonably enforce its anti -scavenging ordinance, which shall be adopted by the City Council prior to commencement of services pursuant to this Amendment. C. Coordination with Refuse Collection Agreement. _ The parties acknowledge that from time to time it may be helpful to coordinate the performance of this Amendment with the refuse collection services pursuant to the Refuse Collection Agreement, with respect to door hangers to Eligible Residential Premises, for the purpose of educating citizens to the need to leave Recyclable Materials for CONTRACTOR, or placing recycling stickers or signs on collection vehicles. CITY will coordinate with the CONTRACTOR for such cooperation. SECTION IV EXPANSION PROGRAM. A. Curbside Recycling for Expansion Areas. CONTRACTOR shall have three months from the final move -in of any newly constructed residential area and three months from the date of annexation of any new areas to the CITY to provide full curbside recycling service to Eligible Residential Premises in said areas to which this Amendment applies. The Per Unit Subsidy in existence at the .time of final move -in or annexation, as the case may be, will initially be the charge to the CITY for service to Eligible Residential Premises in such expansion areas pursuant to this Amendment. SECTION V INTERPRETATION Except as amended by this Amendment, the Refuse Collection Agreement shall remain unchanged and in full force . and effect. The provisions of the Refuse Collection Agreement, except as hereby amended, shall apply full to this Amendment, unless the context otherwise requires.. 7 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed. as of the day and year first above written. "CONTRACTOR" CITY OF LAGUNA BEACH - .-WASTE MANAGEMENT, INC. a Municipal corporation of the State of California - B^ �` B . Y YhL4r2_11%t��CityManaager George La ru V' e President 8 L SCHEDULE A RECYCLING CONTAINERS CONTRACTOR shall provide a set of three (3) "Recycling Containers" or other similar containers mutually agreed upon by CONTRACTOR and CITY to each Eligible Residential Premises in CITY. These Containers are specifically made of rigid plastic construction for stacking in each other to assist homeowners to participate in the curbside recycling program. One container is used to store newspaper, one for glass and one for aluminum cans and P.E.T. plastics and shall have affixed a label identifying them as property of the City of Laguna Beach. 9 SCHEDULE B PHASE - IN OF SERVICE CITY OF LAGUNA BEACH IMPLEMENTATION OF CURBSIDE RECYCLING - The implementation of the curbside recycling program for CITY is as follows: 1. Distribution of eight hundred and eight (808) sets of Recycling Containers per day until seven thousand two hundred and thirty four (7234) sets have been delivered. The sets of Recycling Containers will be delivered to the Eligible Residential Premises and those premises (encompassed by homeowners associations) agreed upon by the CITY. 2. Commence collection of Recyclable Materials on the next regular pickup day following the delivery of the last set of Containers, but no later than October 30, 1989. s �" 10 SCHEDULE C PUBLIC AWARENESS PROGRAM 1. CONTRACTORS RESPONSIBILITIES A. Introductory Packet - CONTRACTOR will prepare an introductory packet of information regarding the curbside recycling program, approved in advance by CITY and will distribute such packet with the Recycling Containers to each Eligible Residential Premises in CITY. The packet shall include: 1. A letter from the CITY urging the residents to participate in the program. 2. A two-part information card containing specific information to the resident regarding collection day, non -collection holidays, preparation of materials, and other appropriate matters. There will also be a tear -off and mail in card for volunteers. B. Upon request by CITY, CONTRACTOR will assist CITY ;n developing a listing of non -participating Eligible Residential Premises. C. CONTRACTOR will assist CITY's public awareness efforts wherever possible. 2. CITY'S RESPONSIBILITIES A. CITY will contact all local media to seek coverage of the recycling program to increase citizen awareness of the benefits of recycling. B. CITY will develop an overall "Promotional Plan" for the Laguna Beach Curbside Recycling Program, with goals, strategies and timetables for CONTRACTOR and CITY actions. C. CITY will encourage volunteers to make contact with neighbors who do not participate in the curbside recycling program and encourage them to participate. Volunteers will either keep track of participants or will receive a listing from CITY of the non -participating Eligible Residential Premises. CITY will hold briefing sessions for 11 L volunteers to explain how they may best encourage participation. At these sessions CITY will distribute printed materials to assist volunteers. D. CITY will commit to the funds necessary for development and implementation of the overall "Promotional Plan" in B. above. 12 ( SCHEDULE D REPORTS CONTRACTOR shall submit to CITY the following reports, on forms approved by CITY, during the term of this AMENDMENT: A. Monthly Project Reports. Within ten (10) working days after the last day or each month, CONTRACTOR shall submit a monthly project report to include at least all of the following: (1) Summaries of tonnages of all Recyclable Materials recovered, by materials. (2) Summaries of tonnages of all Materials sold, by materials. (3) Market prices for all Recyclable Materials collected from curbside and sold by CONTRACTOR. The weight receipts shall be available for inspection by CITY upon request. (4) Resident participation rates in terms of weekly set -out (as described in Subsection I(B)1 of the Amendment) counts, and monthly participation rates. B. Annual Reports. On or before thirty (30) days after the completion of each year of the term of the Amendment, CONTRACTOR shall submit a year-end annual report to include at least the following: (1) A collated summary of the information contained in the monthly reports, and a summary of the participation rates and tonnages of recovered materials. (2) A discussion of public awareness activities and their impact on participation and recovered volume. (3) A discussion of highlights and other noteworthy experiences, measures taken to resolve problems, increase efficiency and household participation. 13 C (4) An Annual Salvage Revenue Statement of all sales or Recyclable Materials from the curbside collection program. Reports shall be submitted to: " City of Laguna- Beach 505 Forest Ave. Laguna Beach, CA 92651 _ Attn: Mr. Terry Brandt Assistant City Manager/Director of Public Works 14 V ,J to 0 0 c- •h O %D N en N l�O tn00 .r^ t. •n O O 00 01 N N N t� 01 N N • r- t! 1 M O O1�0mN%.0 CJ N N e- cO to 0 Co N M -f Q OulrnvsO N [- 0C N N r- Q1 (D Cl O �+1 O O �•"1 rn N u1 N t• f� N N t- !1. 00 0 0 . M rn en O O N 00 N O N N N x Ul% I 1 H ad 1 � H d 1 1 •x o W 1 a A H H �+ I H an t I A I A � W 1 • OC 1 1 •t OC d C1C .Q 1 n: 0. tN I w C►. .r Qt 14 " w w 2' a Iz 1 • F N 7 0. rS 1 W t •t J W �•• t J• H 1 p 1 1 1 1 1 1 t1' t K I W I �+ 1 1 I I 1 1 I 1 N 1 1 OC 1 oe 1 W 1 H W I 1 ' -3 1 W 1 W 1 OC I .-1 1 A 1 .�-. 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C • C GL' F H Rt O "" •.11 Rt y- H :- A H a. . C F 4 ►-� W E'• U Q • W .. u W M •G n F a. � A •t f- •G W A C4 t.L' W 11. &Y W .b ^ •t >< • C .a W 0 (II: ►•y or W .•+ W 0. w- o a.• w to 0. q,• et. -C U W W O t� N p4 F , C V1 O -^. C1 =.•7 C4 •t H F W N N H u W a F u W :.4 %4 a4 t4 •t F m H OG f Hoag 04 06 0K .... W. 0 aml�• Rt � ... AFt• -HFu tnCl. H 1 N 1 N II IA y N I 4 I I F � W rl ro I to O C! w u H > U b JI x to Et • v •t o � In W F ►+ W ... F a .. U Q r-1 w`o � > u x m Now N DEC I 'I IOP TUSTIN PUBLIC WORKS DEPT. AGFEENENT BETWEEN THE CITY OF SAN JOSE AND WASTE MM�MNENT OF CALIFORNIA, INC. PHASE 3 EXPANSION OF THE CURBSIDE RECYCLING PROGRAM August 28, 1986 - June 30, 1992 TABLE OF CONTENTS PAGE RECITALS SECTION 1. TERM OF AGMENENT 2 SECTION 2. SCCPE OF SERVICES 2 A. Curbside Recycling 1. Collection 2. Recyclable Materials Defined 3. Time of Collection 4. Container Purchase and Distribution 5. Replacement of Containers_ 6. Transportation of Materials. 7. Labor and Costs 8. Missed Pick-ups B. Recycling Center C. Public Awareness Program D. Local Manager E.` Reports F. Sale of Recyclable Materials SECTION 3. SCHEDULE OF PERFORMANCE 5 SECTION 4. COMPENSATION 5 A. Compensation for services B. Rate Modifications and Adjustments C. Salvage Revenue D. Processing Facility SECTION 5. CITY'S RESPONSIBILITIES 8 A. CITY Representative B. Public Awareness Program C. Protection of Materials D. Cooperation of Garbage Collector E. Permits for Recycling Center TABLE OF CONTENTS (Continued) PAGE SECTION 6. EXPANSION PROGRAM 9 A. Proposal for Expansion 13 B. Response by CONTRACIOR WAIVER C. CITY Determination SECTION 19. SECTION 7. INDEPENDENT CONTRACTOR 10 SECTION 8. NON -ASSIGNMENT 10 SECTION 9. PERMITS AND LICENSES 11 SECTION 10. COMPLIANCE WITH LAWS AND REGULATIONS 11 SECTION 11. PERFORMANCE BOND 11 SECTION 12. INSURANCE 11 SECTION 13. CONFLICT OF INTEREST - DISCLOSURE 11 SECTION 14. INDEMNIFICATION AND HOLD HARMLESS 11 SECTION 15. TERMINATION .12 SECTION 16. INSOLVENCY OF CONTRACTOR -TERMINATION 18 OF AGREEMENT 12 SECTION 17. NOTICES 13 SECTION 18. WAIVER 13 SECTION 19. LAW TO GOVERN 13 SECTION 20. AMENDMENT 13 SECTION 21. ENTIRETY 14 EXHIBIT A. AREAS OF SERVICE 15 EXHIBIT B. RECYCLE 3 CONTAINERS 16 EXHIBIT C. PUBLIC AWARENESS PROGRAM 17 EXHIBIT D. REPORTS AND RECORDS 18 EXHIBIT E. SCHEDULE OF PERFORMANCE 20 EXHIBIT F. INSURANCE 21 ACZEEWNT BEnEEN THE CITY OF SAN JOSE AND WASTE MANAGENENT OF CALIFORNIA, INC. FOR PHASE 3 EXPANSION OF THE CURBSIDE RECYCLING PROGRAM THIS PGRFENENT is made and entered into ��e day CITY OF SAN JOSE.,, a of , 1987, by and municipal corporation (hereafter "CITY") , and WAS'T'E MANAGEMENT OF CALIFORNIA, INC., a California corporation (hereafter " R")• RECITALS WHEREAS,. CITY and EMPIRE WASTE MANAGEMENT entered into that certain PGREEMENr BETWEEN THE CITY OF SAN JOSE AND EMPIRE WASTE MANAGENENI' _ - PHASE 2 EXPANSION OF THE CURBSIDE RECYCLING PROGRAM dated April 'lt, 1985; and WHEREAS, on August 28, 1986, EMpjim WASTE MANAMNENT was acquired by WASTE MANAGEMENT, INC . ; an WHEREAS, CONTRACTOR is a subsidiary of WASTE MANAGEMENT, INC •; and ;*E, REAS, CITY desires to continue the Curbside Recycling Program -- without interruption and to expand said program throughout the City of San Jose; and WHEREAS, CONTRAC'T'OR represents that it has the experience and expertise necessary to continue said program without interruption and further represents that it has the skill and expertise necessary to perform an expanded Curbside Recycling Program in the City of San Jose; and NCWf THEREFORE, CITY and CONTRAC'T'OR do hereby agree as follows: SECTION I. TERM OF PGREEMENT. The term of this AGFEENENr shall be from August 28,119and l6 June eo 0, 1992, inclusive, subject to the provisions of SECTIONS SECTION 2. SCOPE OF SERVICES- A. ERVICES. A. Curbside Recycling. CONTRAC'T'OR shall perform curbside recycling services in the City of San Jose, as follows.: 1. Collection. CONTRACTOR shall collect and remove.all Recyclable Materials, which are segregated and placed in - recycling containers at the curbside on public streets, from all single-family residences and all residential complexes of four (4) or fewer units located in the City f San ose as of co�.iectrorr ��s opposed where garbage collection service is .to- bin collection) . -2- 2. Recyclable Materials Defined. For the purposes of this AGEMENT, Recyclable Materials means and includes newspapers, glass, metal cans (aluminum and delabeled tin), and such other materials as mutually agreed upon in writing by CONTRACTOR and CITY's Solid Waste Program Manager, which are collected by CONTRAC'T'OR pursuant to paragraph 1 of this Section, and subject to limitations in paragraphs 4 and 5 of this Section. 3. Time of Collection. CONTRACTOR shall collect the Recyclable Materials placed at the curbside for collection once each regardless of weather conditions. To the exteas etpossible, ion serviceion will be on the same day of no e�maintained on the following Collection schedules need Collection which holidays: January 1, Thanksgiving, and December 25. would- normally occur on such holidays shall bereschWstedProgram d as mutually agreed upon by R and CI TY's Solid Manager. 4. Container Purchase and Distribution. CONTRAC'T'OR shall purchase, at C R's sole cost and expense, and shall distribute one set of recycling containers to each eligible residence in the City of San Jose, except in the Phase 2 Areas, described in EXHIBIT A, entitled "AREAS OF SERVICE", attached hereto and incorporated herein by this reference, which have already received container sets. -The recycling containers are those containers described in EXHIBIT B, entitled "RECYCLING CONTAINERS", attached hereto and incorporated herein by this reference, or other similar containers mutually agreed upon by CONTRACTOR and CITY's Solid Waste Program Manager.. Following the distribution of a total of 175000t tocntainrs f containers AS PROVIDED HEREIN, C R shall not be requiredP provide additional recycling,:containers unless requested to do so by CITY. In the event CITY requests CONTRACTOR to provide additions recycling containers, the cost of the containers and the distribution thereof shall be borne by CITY. The ownership of the recycling containers purchase by CONTRACTOR under this AGREEMENT shall be and remain with CITY. 5. Replacement of Containers. The .paat�sacrndest�roy the ge that from tinge to time a resident may 9eo recycling containers supplied by CONTRACT CITY agrees that it will encourage the resident to replace sa n. To recycling containers at the expense of the this end, CONTRAC'T'OR shall make sett of three (3) such recycling containers available for'purchase by any resident at a price not to exceed or each for individual containers during the term of this AGREEMENT. The parties also acknowledge that from time to time containers may be stolen from the curb. When notifino chardof such occurrence, CONT'RACT'OR shall replace, a 9e to the resident, the missing container (s) as long as the is supply of containers, purchased by CONTRACTOR -3- agreement, lasts. CONTRACTOR shall notify CITY as the supply of containers decreases, in order for CITY to purchase additional containers. 6. Trans ortation of Materials. materials t ONTRACTOR shall the transport the collected Recyclable Recycling Center described in subsection B. below, and CONTRACTOR shall retain -responsibility for the sale of such materials in a timely manner in accordance withtherefor. re subsection F. below and for the collection of payments 7. Labor and Costs. CONTRACTOR shall, at its sole cost and expense, except as otherwise provided r ecu n, furnish all labor and equipment required to per side collection pursuant to this AGREENENT. 8. y Missed Pick-ups. In case of a missed pick-up called in by a resident, CONTRACTOR shall collect the Recyclable Materials from such resident within twenty-four (24) hours. All calls relating to missed pick-ups shall be logged in tion y CONTRACTOR and such log shall be available for inspec by CITY. 11 'B. Recycling Center. CONTRACTOR shall maintain a Recycling Center in the City of San Jose where people may voluntarily drop off recyclable materials not less than five (5) days per week, holidays excluded, and which shall be open to the public during which C R's normal business hours. Recyclable ma shall be accepted at the Recycling Center include, but are not limited to, newspapers, glass, and metal cans (aluminum and delabeled tin). At the Recycling Center CONTRACTOR shall process the recyclable materials to market specifications. Ownership of materials brought to the Recycling Center shall be with CONTRACTOR and CONTRACTOR shall have the responsibility for the sale of such materials in a timely manner in accordance with subsection F. below and for the collection of payment therefo Sufficient storage and unloading capacity arenot unreasonably sl be provided to assure that R collection vehicles detained. Storage of materials at the --Recycling Centershall be limited to that which can be properly bontai.ned pursuant permits issued by CITY. CONTRACTOR shall notify CITY's Solid Waste Program Manager in writing not less than thirty (30) days prior to any relocation of the Recycling Center. C. Public Awareness Program. CONTRACTOR shall develop and implement that portion of the Public Awareness Program designated C s RESPONSIBILITIES" described in EXHIBIT C, entitled "PUBLIC AWARENESS PROGRAM", attached hereto and incorporated herein by this reference. -4- D. Local Manager. CONTRACMR shall at all times during the term of this AGREEMENT have a local manager charged with the responsibility for supervision of the operations of CONTRACTOR and shall at all times during the term of this. PGREENENT maintain a local office and telephone in San Jose. ' E. Reports. CONTRACTOR shall file with CITY written reports of CONTRACTOR' s performance under this AGREEMENT as more particularly set forth in EXHIBIT D, entitled "PEPORTS AMID RECORDS" „ attached hereto and incorporated herein by this reference. F. Sale of Recyclable Materials. C R.shall sell all Recyclable Materials collected from curbside by CONTRACTOR Pursuant to this AGI;EENENT at fair market value. Revenue obtained from such sales shall be retained by CONTRAC'T'OR except as provided in SECTION 4 hereof. The fair market value (hereafter "Fair Market Value") of Recyclable Materials shall be the highest price commonly paid by purchasers of such materials in and around the San Jose area at the time of sale. Fair Market Value will be determined from Market Valuetten quotes submitted to CITY, and any change in shall take effect prospectively upon written notice to CONTRACTOR thereof. 'CCNTRACTOR and CITY'S Solid Waste Program Manager shall mutually agree on how often and which entities will be solicited for such price quotes. SECTION 3. SCHEDULE OF PERFORMANCE. CONTRAC'T'OR shall perform those services set forth in SECTION 2 of this PGIE:ENENT in accordance with -the Schedule of Performance set forth in EXHIBIT E, entitled "SC REDULE OF arise PERFORMANCIEIt,attached hereto and incorporated herein this reference. unforeseen circumstances ar. which wouldcause a delay in � modified performance, said Schedule W ittenfagreement naof CITY and CONTRACTOR. accordingly by the mutual CITY's Solid Waste Program Manager is authorized to modify said Schedule of Performance on behalf of CITY. SECTION 4. COMPENSATION. A. Compensation for Services_ For and in consideration of the services to be performed by CON'T'RACTOR pursuant to this PGICENENT, CITY agrees to make payments to CONTRAC'T'OR, as follow: -rl- These amounts are based on a fixed rate of _ per container set. If containers are purchased for a lesser amount, the amortized difference shall. -,be deducted from the amount of compensation under this ASREFIENT. B. Rate Nbdif ications and Adjustments ments Rate Setting and Annual Modification Based on Changes Index Numbers C. Salvage Revenue. The compensation set forth in subsection A. above is based on the assumption that CCNTRA=R will receive salvage revenue from the sale of Recyclable Material collected by CONTRACTOR under this AGREEMENT in the amount of for the quarter commencing and _ per quarter for the quarters commencing January 1, 1987, and April 1, 1987; no salvage revenues are calculated for the quarter commencing July 1, 1987, during the period of the expansion of the program to citywide; and per -7- quarter during the remainder of the term, commencing with the quarter beginning October 1, 1987. If the actual salvage revenue received by CONTRAC'T'OR during a quarter differs from� e assumed salvage revenue, CITY's payment to CONTRACTOR shall adjusted as follows: 1. If the actual salvage revenue received in a quarter is less than the assumed salvage revenue for that quarter, CITY shall pay to CONTRAC'T'OR one-half (1/2) of the deficit not later than twenty (20) days from receipt of the quarterly salvage revenue statement from CONTRACTOR. 2. If the actual salvage revenue received in a quarter is greater,/than the assumed salvage revenue for that quarter, CITY shall receive a credit in the amount of one-half (1/2) of the excess. The credit shall be applied to payments first thereafter otherwise payable by CITY to CONTRACTOR. 3. If , in the last quarter of the term of this AGI NT or in the quarter immediately preceding the last day of performance by CONTRACTOR pursuant to termination of this ' pGRMMENT, the actual salvage revenue is greater than the assumed salvage revenue for such quarter, CONTRACTOR shall remit to CITY, within twenty (20) days of CITY's receipt of the quarterly salvage revenue statement, one-half (1/2) of the excess. 4. Adjustments pursuant to this subsection C shall be made commencing with the quarter beginning October 1, 1986. No adjustments shall be made prior to such date. D. Processing Facility. It is understood by the parties that CONTRACTOR intends to use a portion of the compensation paid under subsection A of this Section to purchase or lease processing equipment for use at the Recycling Center and that said equipment may be used by CONTRACTOR to process materials which are obtained by CONTRAC'T'OR other than through curbside collection in San Jose. CONTRACTOR agrees to pay to CITY for the use of the equipment to process such non -curbside materials the amount of ;per ton which shall be calculated monthly. C R's payment to CITY shall be in the form of a credit against the next monthly payment to be made by CITY to coNTRA=R pursuant to subsection A abovee The amount due under this subsection C for the final month in which CONTRAC,`InR performs services pursuant to this pGREENENT shall be paid directly to CITY within twenty (20) days of the date CONTRACTOR ceases to perform such services. SECTION S. CITY'S RESPONSIBILITIES. A. CITY Representative. CITY's representative for purposes of this AGF-ENENT shall be CITY's Solid Waste Program Manager. B. Public Awareness Program. CITY shall participate in the Public Awareness Program as provided in EXHIBIT C of this AGRSENENT. C. Protection of Materials. CITY agrees to take such steps as may be reasonably necessary to protect CONTRACTOR's ownership of all Recyclable Materials placed at the curbside for collection by CONTRACTOR under the terms of this PGFEENENT and shall reasonably enforce its anti -scavenging ordinance (Ordinance No. 22054). D. Coordination with Garbage Collection Agreement. The parties acknowledge that from time to time -it may be helpful to the performance of this PGFEEMENT to obtain the cooperation of the garbage collection contractor with respect to mailing notices to householders, educating garbage collectors as to the need to leave recyclable materials for CONTRAC'T'OR, placing recycling stickers or signs on collection vehicles, or in other ways. CITY will coordinate with the garbage collection contractor for such cooperation. A procedure for recovering the cost of missing or destroyed recycling containers has been provided in the CITY's current garbage collection agreement. E. Permits for Recycling Center. 4 CITY shall assist CONTPP=R, to the extent reasonably possible, in obtaining such permits and licenses necessary for CONTRACTOR to operate or construct a facility of ample size to administer the citywide recycling program. SECTION 6. EXPANSION PROGRAM - A. Proposal for Expansion. At such time as City desires to expand the curbside recycling program into additional areas (new construction areas or annexed housing), CITY shall submit to CONTRACTOR a written proposal for such expansion (hereafter "Expansion Proposal"). The Expansion Proposal shall include a description of the Area of Service to be served, the nature of the service to be performed, the term of the proposed service (not to exceed the - then unexpired term of this AGREEMENT), and the proposed payment to CONTRAC'T'OR. B. Response by CORIPACTOR. Upon receipt of the Expansion Proposal from CITY, CONTRA=R shall have thirty (30) days in which to submit a written response to CITY. C. CITY Determination. Following receipt of R's written response, CITY shall have sixty (60) days in which to accept or reject CONTRFCTOR's response. During this sixty (60) days, CITY and CONTRACTOR agree to negotiate in good faith any terms or conditions in the Expansion Proposal and CONTRACTOR's response thereto upon which there is disagreement. If CITY and CONrRAC'TOR fail to reach agreement with respect to the terms and conditions for expansion of the curbside recycling program within the time specified herein, CONTRAC'T'OR will continue to perform curbside recycling as specified in SECTION 2 of this AGIMMENT-€or the remaining term hereof, subject to the provisions of SECTIONS 15 and 16. The continued services will be at the monthly rates specified in SECTION 4, with adjustments as provided in subsections p and C of SECTION 4; provided tht CONTRACTOR may apply for a.change in rates, based upon changed costs and expenses to CONTRACTOR for providing such services, for periods subsequent to June 30, 1987. The parties agree to negotiate any application for change in rates in good faith and, pending agreement thereon, payments shall continue as specified in SECTION 4. SECTION 7. CONTRACTOR shall perform all work and services described herein as an independent contractor and not as an officer, agent, servant or employee of CITY. CONTRACTOR shall have exclusive control of and the exclusive right to control the details of the services and work performed hereunder and all persons performing the same and CONTRACTOR shall be solely responsible for the acts and omissions of its officers, agents, employees, contractors and subcontractors, if any. Nothing herein shall be construed as creating a partnership or joint venture between CITY and CONTRACTOR. No person performing any of the work or services described hereunder shall be considered an officer, agent, servant or employee of CITY, nor shall any such person be entitled to any benefits available or granted to employees of CITY. SECTION S. NON -ASSIGNMENT - CONTRACTOR shall not assign, transfer, convey, or otherwise hypothecate this AGREEMENT or CONTRAChOR's rights, duties or obligations hereunder or any part thereof wi�hout the prior written consent of CITY and the written concurrence of CONI'RACTOR's surety. In the event CONTRACTOR attempts to assign, transfer, convey or otherwise hypothecate this AGREEMENT or CONTRACTOR's rights, duties or obligations hereunder or any part thereof without the prior written consent of CITY, CITY may, at its option, terminate this AGREEMENT immediately. -10- SECTION 9. PERMITS AND LICENSES. Cali'RACTOR, at its sole cost and expense, shall obtain and maintain throughout the term of this AGREENENT all permits, licenses and approvals necessary or required for CONTRACMR to perform the work and services described he 'inincluding but not limited to the operation of the Recycling Center. SECTION 10. COMPLIANCE WITH LAWS AND REGULATICNS- caNTRACTOR agrees that, in the operation of the Recycling Center and the performance of work and services under this AGREEMENT, CONTRACTOR will ,qualify under and comply with any and all federal, state and local laws and regulations now in effect, or hereafter enacted during the term of this AGREEMENT, which are applicable to CONTRACTOR, its employees, agents or subcontractors, if any, with respect to the work and services described herein. SECTION 11. Prior to commencement of performance under this AGREEMENT, CONTRACTOR shall deliver to the CITY a performance bond in the principal sum of Five Hundred Thousand Dollars ($500,000.00) to guarantee performance by CONTRACTOR of its obligations under this AGREEMENT. The surety company issuing said bond and the form of the bond itself shall be subject to approval by CITY. SECTION 12. INSURANCE. CONTRACTOR shall obtain and maintain throughout the term of this AGREEMENT, at C R's sole cost and expense, not less than the insurance coverage set forth in EXHIBIT E, entitled "INSURANCE", attached hereto and incorporated herein by this reference. SECTION 13. CONFLICT OF INTEREST - DISCLOSURE. It is the responsibility of CONTRACTOR under this AGREEMENT to sell all Recyclable Materials collected in its performance of this AGREEMENT at Fair Market Value established pursuant to subsection F. of SECTION 2. In selling said Recyclable Materials, CONTRAC.`TOR may sell said materials to company known as NORTH COAST SALVAGE which is owned or substantially controlled by the same owners as the C R herein. Any such sale to NORTH COAST SALVAGE must be made at a price not less than Fair Market Value. SECTION 14. INEEMNIFICATION AND HOLD HARMLESS . CONTRAC'T'OR agrees to indemnify and hold harmless and at the request of CITY, defend CITY, its officers, employees, agents and servants, from and against any and all loss, liability, claims, demands, actions or suits, of whatsoever character or kind, arising or resulting from, or in any way connected with, CONTRAC`I'OR's performance of this AGREEMENT, the operations of CONTRACTOR, its agents, employees or subcontractors, if any, at the Recycling Center, or the failure of CCNTRACTO R to comply with the provisions and requirements of all applicable permits, licenses, laws or re4ulations. A. In the event CCNTRA=R materially defaults in the performance of any of the material covenants or agreements to be kept, done or performed by it under the terms of this AGFEENENT, CITY shall notify CONTRACTOR in writing of the nature of such default. Within fifteen (15) days following such notice: 1. CCN7RACMR shall correct the default; or 2. In the case of a default not capable of being corrected within fifteen (15) days, CONTRACTOR shall commence correcting the default within fifteen (15) days of CITY' s notification thereof, and thereafter correct the default with diligence. B. If CONTRACTOR fails to correct the default as provided above, CITY, without further notice, shall have all of the following rights h and remedies which CITY may exercise singly or in combination: 1. The right to declare that this AGREEMENT together with all rights granted TRACTOR hereunder are terminated, effective upon such date as CITY shall designate; 2.: The right"to license others to perform the services otherwise to be performed by COIR hereunder, or to perform such services itself; and 3. The right to rent or lease the equipment from CONTRACTOR for the purpose of collecting, transporting and processing recyclables which CONTRACTOR is obligated to collect, transport and process pursuant to this AGREEMENT, for a period not to exceed eighteen (18) months. In the case of equipment not owned by ;I CONTRACTOR, CONTRACTOR shall assign to CITY, to the extent CONTRACTOR is permitted to do so under the instrument pursuant to which CONTRACTOR possesses such equipment, the right to possess the equipment. If CITY exercises its rights under this subsection B., CITY shall pay the CONTRACTOR the reasonable rental value of the ` equipment so taken for the period of'the CITY's possession thereof. C. Within thirty (30) days of termination of this AGFEENENT, CONTRAC'T'OR shall submit to CITY a salvage revenue statement for the period from the last immediately preceding statement to the date of termination. City shall pay to C R or COIR shall pay to CITY, whichever is applicable, the following net amount: (1) any amount remaining unpaid under Subsection A of SECTION 4. of this AGREEMENT prorated to the date of termination; (2) the amount specified in Subsection B of SECTION 4. of this AGREENENT calculated !, on a pro rata basis where the assumed salvage revenue is that portion of the amount set forth in Subsection B of SECTION 4. which would be expected during the period from the last immediately l 'preceding salvage revenue statement to the date of termination; (3) J less any damages suffered by CITY because of CON]CRA=R's default. SECTION 16. INSOLVENCY OF CONTRACTOR -TERMINATION OF AGFEENENr. Either the appointment of a receiver to take possession of all I'j pr substantially all of the assets of CONTRACTOR, or a general a',assignment by �.�-12- CONTRACTOR for the benefit of creditors, or any action taken by or suffered by CONTRAcmR under any insolvency or bankruptcy act shall constitute a breach of this AGREENENT by CON'TRACT'OR and shall, at the option of CITY, terminate this PGFEEMENT. SECTION 17. NOT. All notices required or contemplated by this AGREEMENT shall be personally served or mailed, postage prepaid and return receipt requested, addressed to the parties as follows: To CITY: Solid Waste Program Manager City of San Jose City Hall, Room 460 801 North First Street San Jose, CA 95110 To CCNTRACTCR: Program Coordinator Waste Management of California, Inc. 715 Comstock Ave. Santa Clara, CA 95054 or to such other address as the parties may designate in writing. r r SECTIO] 18. WAIVER. A waiver of any breach of any provision of this AGFEENENT shall not constitute or operate as a waiver of any other breach of such provision or of any other provisions, nor shall any failure to enforce any provision hereof operate as a waiver of such provision or of any other provision. SECTION 19. LAW TO GOVERN. This AGREEMENT is entered into and is to be performed in the State of California. CITY and CONTRAC'T'OR agree that the law of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this AGREEMENT and shall govern the interpretation of this AGREEMENT. SECTION 20. ANENLMENT. This AGREENENT may be modified or amended'only by a written agreement duly executed by the parties hereto or their representatives. -13- r SECTION 21. ENrI£ETY. e'his AGIEzwNT and. the Exhibits attached hereto contain the entire AGREEWNT between the parties as to the matters contained herein. Any oral representations or modifications concerning this AGREFvENT shall be of no force and effect. WITMSS THE EXECUTION HEREOF on the day and year first herein above written. APPROVED AS TO FORM: Deputy City Attorney I CITY OF SAN JOSE, a municipal corporation By: City Clerk 801 North First Street San Jose, CA 95110 "CITY" WASTE MANAGEMENT OF CALIFORNIA, INC., a California Corporation By: Title: Address: 715 Comstock Ave. Santa Clara, CA 95054 Telephone No.: 980-9900 ��cON'rRl�'IC)R" -14- EXHIBIT A PHASE 2 AFEAS OF SERVICE' h� o EXHIBIT B "RECYCLING CONTAINERS C N7RAMR shall provide a set of three (3) "Recycle 3" containers, or other similar containers mutually agreed upon by CONTRACTOR and CITY's Solid Waste Program Manager, to each eligible residence in the City of San Jose. These containers are specially made of rigid plastic construction for stacking in each other to assist homeowners to participate in the curbside recycling program. One container is used to store bottles, one for cans and one for newspapers. FIGURE A depicts the containers in use. r i FIGURE A r r -Set of "Recycle 3" Containers EXHIBIT C PUBLIC AWARENESS PROGRAM 1. CONI'RAC`I'OR' s RESPONSIBILITIES. A. Introductory Packet. CONTRACTOR will prepare an Introductory Packet of information regarding the,.curbside recycling program, approved in advance by CITY's Solid"Waste Program Manager, and distribute such packet with the recycling containers to each single family residence in the Citv which has not already received a set of containers. These shall include: 1. A letter from the Mayor and the City Council of the City of San Jose urging the residents to participate in the program. , 2. A two-part information card containing specific information to the resident regarding collection day, non -collection holidays, preparation of materials, and other appropriate matters. There will also be a tear -off and mail in card for volunteers. 3. Three (3) decals with the CITY's logo and CONTRAChOR's phone number, and instructions on how to apply them to the stacking containers. B. Upon request by CITY, CONTRACTOR will assist CITY in developing a listing of non -participating households in each Area of Service. Co CONTRACTOR will assist CITY's public awareness efforts wherever able. 2. CITY's RESPONSIBILITIES. A. CITY will contact all local media to seek coverage of the recycling program to increase citizen awareness of the benefits of recycling. B. CITY will develop an overall "Promotional Plan" for the San Jose Curbside Recycling Program, with goalh, strategies and timetables for CONTRACTOR and CITY actions. C. CITY will encourage volunteers to make contact with neighbors who do not participate in the curbside recycling program and encourage them to participate.,Volunteers will either keep track of participants or will receive a listing from the CITY of the non -participating households. CITY will hold briefing sessions for volunteers to explain how they may best encourage participation. At these sessions CITY will distribute printed materials to assist volunteers. D. CITY will provide necessary funds for any new promotional activities related to the curbside recycling program undertaken by CONTRACTOR. E. CITY will assist CONTRP=R's public awareness efforts wherever able. EXHIBIT D REPORTS AND RECORDS 1. REPORTS CONTRACTOR shall submit to CITY the following reports, on forms approved by CITY, during the term of this AGREEMENT: A. Monthly Project Reports. Within five (5) working days after the last day of each month, CONTRAC'T'OR shall submit a monthly project report to include at least all of the following: (1) Summaries of tonnages of all Recyclable Materials recovered, by material. (2) SLmrmries of tonnages of all Recyclable Materials • sold, by material. (3) Market prices for all Recyclable Materials collected from curbside and sold by CONTRACTOR. The weight receipts shall be available for inspection by CITY upon request. (4) Resident participation rates in terms of weekly set -out counts, and monthly participation rates calculated at 2.5 times the average weekly set -out rate. (5) A summary of missed pick-ups by route and explanation of noteworthy experiences, and a suamry of telephone calls recievied by category, including inquiries about the program, missed pickups, and container replacement. (6) Copies of CONTRACTOR's daily reports showing the amount of Recyclable Materials collected on each route, the total number of set -outs on each route, and the number of truck loads for each route, as requested by CITY. B. Quarterly Project Status Reports. Within fifteen (15) working days from the end of each quarter, CONT'RACT`OR shall submit a quarterly project status report to include at least all of the following: (1) summary of all revenues, tonnages recovered by material, and participation rates. (2) Overall assessment of performance during the quarter. (3) Detailed data to allow analysis of.collection and processing equipment handling capabilities, and CITY's costs per ton of materials processed. (4) Discussion of problems and noteworthy experiences in program operation. C. Quarterly Salvage Revenue Statements. Within fifteen (15) days from the end of each quarter, CONTRAC'T'OR shall submit copies of revenue statements from all sales of Recyclable Materials from the Curbside Recycling Program sold during the quarter. D. Annual Reports. On or before Juh.1 31 of each year of the term of chis pGgE�NT� C R shall submit a year-end annual report to include at least the following: (1) A collated summary of the information contained in the quarterly reports, and a summary of the participation rates and tonnages of recovered material. (2) A discussion of public awareness activities and their iipact on participation and recovered volumes. (3 ) A discussion of highlights and other noteworthy experiences, measures takeri to resolve problems, increase efficiency and household participation. Reports shall be submitted to: Solid Waste Program Manager City of San Jose City Hall, Room 460 801 North First Street San Jose, CA 95110 2. CONTRACTOR'S RECORDS CONTRAC'T'OR shall maintain its books and records the related to the performance of this AGREEMENT in accordance withfollowing minimum requirements, A. CONTRAMR, shall maintain any and all ledgers, books of account, invoices, vouchers and cancelled checks, as well as all other records or documents evidencing or relating to charges for -services, expenditures or disbursements borne by the C ITY for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to CONTPPMR pursuant this AGREEMENT. B. CONTRACTOR shall maintain all documents and records which demonstrate performance under this AGREEMENT for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this AGREEMENT. C. Any records or documents required to be maintained pursuant to this PGREEMENT shall be made available for inspection or audit, at any time, during regular business hours, upon written request by the City Attorney, City Auditor, City Manager, or City Solid Waste Program Manager, or a designated representative of to y of these officers. Copies of such documentsprovided CITY for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records, shall be available at CONTRACTOR's address indicated for receipt of notices in this PGFEEMENT. D. Where CITY has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of CONTRACTOR's business, CITY may, by written request by any of the above-named officers, require that custody of the records be transferred to the CITY and that the reocrds and documents be maintained in City Hall. Access to such documents shall be granted to any party authorized by CONTRACTOR, its representatives, or its successor -in -interest. -19- EXHIBIT E CCNTRp'TOR shall continue to perform curbside recycling in the Phase 2 Areas of Service without interruption. C shall initiate delivery of recycling containers to residences throughout the remainder of the City b g It 197- containers CONTRp�'I�OR shall complete delivery of the recycling conta no later than October 1, 1987. Any modifications to this Schedule of Performance shall be subject to approval in writing by CITY's Solid Waste Program manager. -20- EXHIBIT F INSURANCE CONTRACTOR, at C R's sole cost and expense, shall obtain and maintain throughout the term of this AGREEMENT at least the following insurance policies. A. Worker's Compensation Insurance. CONTRACTOR shall at all times maintain Workers' Compensation Insurance covering all of its employees written in accordance with the requirements of the laws of the State of California. This policy shall include both Workers' Compensation and Employers' Liability in the amount of One Hundred Thousand Dollars ($100,000.00) coverage. B. Comprehensive General Liability. CONTRACTOR shall maintain a comprehensive general liability insurance policy covering bodily injury and property damage with a combined single limit of Five Hundred Thousand Dollars ($500,000_00) and an umbrella coverage of not less than Two Million Dollars ($2,000,000.00). C. Motor Vehicle Insurance. CONTRACTOR shall carry motor vehicle liability insurance covering all vehicles owned or operated by CONTRACTOR in carrying out its performance under this AGPEEMENT in an amount not less than Five Hundred Thousand Dollars ($500,000.00) and an umbrella coverage of not less than Two Million Dollars ($2,000,000.00) . D. Endorsements. All of the following endorsements shall be made a part of each of the insurance policies specified above: 1. "The City of San Jose, its employees, officers, agents and contractors are hereby added as additional assureds. 2. "This policy shall be considered primary insurance as respects any other valid and collectible insurance the City of San Jose may possess, including any self-insured retention the City may have, and any other insurance the City does possess shall be considered excess insurance only. 3. "This insurance shall act for each insured, and additional insured as though a separate policy had been written for each. This, however, will not act to increase the limit of liability of the insuring company. 4. "Thirty (30) days prior written notice of cancellation shall be given to the City of San Jose in the event of cancellation and/or reduction in coverage of any nature. Such notice shall be sent to: Risk Manager City of San Jose 801 No. First Street, Room 227 San Jose, CA 95110 5. Endorsement #4 above (30 days notice) is the only endorsement required to be made a part of the Workers' Compensation and Employer's Liability policy. -21- 6. For the Excess Liability policy, a suff'�.,Aent endorsement shall be an identification on the Certificate of Insurance that the policy is "following form". Copies of all of the endorsements listed above shall be attached to the Certificate of Insurance which shall be provided to CITY by C R's insurance carrier as evidence of the required coverages. Prior to receiving any payment pursuant to this AGREEMENT, CONTRACTOR shall cause the Certificate of Insurance to be filed with: Risk Manager City of San Jose 801 No. First Street, Room 227 San Jose, CA 95110 E. Proof of" Coverage. Prior to receipt of any payment for work or services performed under this AGMEEWNr, CONTRAC'T'OR shall submit proof of coverage in the form of Certificates of Insurance, with copies of all required endorsements attached thereto, to: Risk Manager City of San Jose 801 No. First Street, Room 227 San Jose, CA 95110 Rev.12 t 612-4 _22_