HomeMy WebLinkAboutCoast Waste Management Inc; 2012-02-15;fsCHl/:!- '
CONTRACT
FOR THE PROVISION OF
SOLID WASTE SERVICES
Executed Between the
City of Carlsbad, CA and
Coast Waste Management, Inc.
(Contractor)^^ /
This /JV^day of h^^priA/iyflj
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TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS
1.01 ACT
1.02 AFFILIATE
1.03 ANNUAL DIVERSION REPORT
1.04 BILLINGS
1.05 BIN
1.06 BIN SERVICE...
1.07 BIOHAZARDOUS OR BIOMEDICAL WASTE .....2
1.08 BULKY WASTE 2
1.09 CALRECYCLE 2
1.10 CAN 2
1.11 CART 2
1.12 CELLPHONES 2
1.13 CITY 2
1.14 CITYCOUNCIL 2
1.15 CITY FACILITIES 2
1.16 CITY MANAGER 2
1.17 COLLECTION SERVICE 3
1.18 COMMERCIAL PREMISES 3
1.19 COMMERCIAL SERVICE 3
1.20 COMMINGLED 3
1.21 COMPACTOR ....3
1.22 CONSTRUCTION AND DEMOLITION DEBRIS 3
1.23 CONTAINER 3
1.24 CONTAMINATION FEE 3
1.25 CONTRACT 3
1.26 CONTRACT ADMINISTRATOR 3
1.27 CONTRACT YEAR 3
1.28 CONTRACTOR .3
1.29 COUNTY 4
1.30 CRATE 4
1.31 CUSTOMER 4
1.32 DISPOSAL 4
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1.33 DISPOSAL SiTE(s) 4
1.34 ELECTRONIC WASTE 4
1.35 EXEMPT WASTE 4
1.36 FOOD WASTE 4
1.37 FRANCHISE FEE 4
1.38 GREEN WASTE CART 4
1.39 GREEN WASTE 4
1.40 GROSS RECEIPTS 5
1.41 HAZARDOUS WASTE 5
1.42 HOUSEHOLD BATTERIES 5
1.43 HOUSEHOLD HAZARDOUS WASTE (HHW) 5
1.44 LATE FEE 5
1.45 MATERIALS RECOVERY FACILITY ("MRF") 5
1.46 MAXIMUM CONTRACTOR COMPENSATION 5
1.47 MULTI-FAMILY DWELLING (MFD) 6
1.48 MULTI-FAMILY RESIDENTIAL COMPLEX 6
1.49 NON-COLLECTION NOTICE 6
1.50 OCCUPANT 6
1.51 ON-CALL SERVICE 6
1.52 OVERAGE FEE 6
1.53 OWNER 6
1.54 PERSON 6
1.55 PHARMACEUTICAL WASTE 6
1.56 PREMISES 6
1.57 PROCESSING FACILITY 7
1.58 RATE YEAR 7
1.59 RECYCLING 7
1.60 RECYCLABLE MATERIALS 7
1.61 RECYCLING BIN 7
1.62 RECYCLING CART 7
1.63 RESIDENTIAL PREMISES 7
1.64 RESIDENTIAL SERVICE 7
1.65 RE-START FEE 7
1.66 ROLL-OFF BOX 8
1.67 RoLL-OuT SERVICE 8
1.68 SCOUT SERVICE 8
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1.69 SERVICE AREA 8
1.70 SHARPS WASTE 8
1.71 SINGLE-FAMILY DWELLING (SFD) 8
1.72 SINGLE-FAMILY RESIDENTIAL PREMISES 8
1.73 SOLID WASTE 8
1.74 SOLID WASTE CART 8
1.75 SOLID WASTE SERVICES 8
1.76 SOURCE SEPARATED 9
1.77 SPLITBIN 9
1.78 TRANSFER STATION 9
1.79 UNIVERSAL WASTE OR U-WASTE ...9
1.80 WASTE GENERATOR 9
1.81 WHITE GOODS 9
1.82 WORKDAY 9
ARTICLE 2. TERM OF CONTRACT 9
2.01 COMMENCEMENT OF SERVICES 9
2.02 TERM 9
2.03 OPTION TO EXTEND 9
ARTICLE 3. SCOPE OF CONTRACT 10
3.01 GRANT OF CONTRACT .....10
3.02 LIMITATIONS ON SCOPE OF GRANT TO CONTRACTOR 10
ARTICLE 4. COLLECTION SERVICES ..11
4.01 GENERAL 11
4.02 SOLID WASTE COLLECTION 11
4.02.1 Single-Family Dwelling (SFD) Solid Waste Collection 11
4.02.2 Multi-Family Dwellings (MFD) Solid Waste Collection 11
4.02.3 Commercial Premises Solid Waste Collection 12
4.02.4 City Facilities Solid Waste and Recyclable Materials Collection.... 13
4.03 RECYCLING COLLECTION 14
4.03.1 Single-Family Dwelling (SFD) Recycling Collection 14
4.03.2 Multi-Family Dwellings (MFD) Recycling Collection 14
4.03.3 Commercial Premises Recycling Collection 15
4.03.4 Marketing and Sale of Recyclable Materials 15
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4.04 GREEN WASTE RECYCLING COLLECTION 16
4.04.1 Single-Family Dwelling (SFD) Green Waste Collection 16
4.04.2 Multi-Family and Commercial Premises Green Waste Collection.. 16
4.04.3 Annual Holiday Tree Recycling Collection 16
4.05 ON-CALL BULKY WASTE COLLECTION SERVICE 17
4.05.1 SFD and MFD On-Call Bulky Waste Collection 17
4.05.2 Commercial On-Call Bulky Waste Collection 17
4.05.3 Bulky Waste Collection Restrictions 17
4.05.4 Bulky Waste Containing Freon 17
4.05.5 Maximum Reuse and Recycling 17
4.05.6 City Direction of Bulky Waste 18
4.06 ON CALL ELECTRONIC WASTE COLLECTION 18
4.07 CELL PHONES AND USED BATTERIES COLLECTION 18
4.08 SHARPS WASTE COLLECTION 18
4.09 BUY-BACK CENTER 19
4.10 CITY-SPONSORED EVENTS..... ....19
4.11 WASTE WATCH 19
4.12 ANNUAL PHARMACEUTICAL COLLECTION EVENTS 19
4.13 ANNUAL SHREDDING EVENT 19
4.14 CARLSBAD JAZZ IN THE PARKS EVENTS 19
ARTICLE 5. TRANSPORTATION OF SOLID WASTE ....19
5.01 GREEN WASTE PROCESSING SERVICES 20
5.02 MINIMUM RECYCLING REQUIREMENTS 20
5.03 FAILURE TO MEET MINIMUM REQUIREMENTS 21
5.04 OWNERSHIP OF SOLID WASTE 21
ARTICLE 6. OTHER SERVICES 21
6.01 RESPONSIBILITY FOR SERVICE BILLING AND COLLECTION 21
6.02 CITY BILLING 22
6.02.1 Establishment of Service/Billing Baseline 22
6.02.2 Contractor Submittal of Billing Information 22
6.02.3 Administration Fee 22
6.02.4 Other Fees 22
6.02.5 Payment to Contractor. 22
6.02.6 Annual Reconciliation of City-Billed Customers 22
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6.03 CONTRACTOR BILLING 23
6.04 BILLING SERVICE REQUIREMENTS 23
6.04.1 Records 23
6.04.2 Rates 23
6.04.3 Partial Month Sen/ice 23
6.04.4 Temporary Service Stop 23
6.04.5 Delinquent Service Accounts 23
6.05 CUSTOMER SERVICE 24
6.05.1 General 24
6.05.2 Contractor's Office 24
6.05.3 Complaint Documentation 25
6.05.4 Resolution of Customer Complaints 25
6.05.5 Emergency Contact 25
6.05.6 Multilingual/TDD Service 25
6.05.7 Customer Calls 25
6.05.8 Contract Liaison 26
6.05.9 Service Liaison 26
6.05.10 Payments and Refunds 26
6.06 PUBLIC OUTREACH AND EDUCATION SERVICES 26
6.06.1 Implementation and Ongoing Education Services 27
6.06.2 Contractor Representative 28
6.06.3 Community Events 28
6.06.4 Commercial Waste Audits 28
6.06.5 Green Business Program 28
6.07 WASTE GENERATION/CHARACTERIZATION STUDIES 28
6.08 EMERGENCY SERVICES 29
ARTICLE 7. REQUIREMENTS FOR OPERATIONS, EQUIPMENT, AND PERSONNEL...29
7.01 COLLECTION HOURS AND SCHEDULES 29
7.01.1 Day and Time of Collection 29
7.01.2 Holiday Sen/ice 29
7.02 COLLECTION ROUTES 29
7.02.1 Collection Routes Changes 30
7.02.2 Collection Route Audits 30
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7.03 COLLECTION STANDARDS 30
7.03.1 Implementation of Service 30
7.03.2 Sen/icing Containers 30
7.03.3 Missed Pick-Ups - SFD 30
7.03.4 Missed Pick-Ups - MFD & Commercial 30
7.03.5 New Customer and Change in Service Levels 31
7.03.6 No Commingling of Solid Waste 31
7.03.7 Conditions of Service 31
7.03.8 Set-Out Instructions to Customers 31
7.03.9 Non-Collection 31
7.03.10 Non-Collection Notices 32
7.03.11 Bin Overfilling 32
7.03.12 Care of Private Property 32
7.03.13 Spillage and Litter 32
7.03.14 Vehicles Equipped with Absorbent, Broom and Shovel 33
7.04 CONTRACTOR FACILITIES 33
7.05 VEHICLES 33
7.05.1 Specifications 33
7.05.2 Vehicle Identification.. 34
7.05.3 Vehicle Cleaning 34
7.05.4 Vehicle Maintenance 34
7.05.5 Painting 34
7.05.6 Vehicle Operation 35
7.05.7 Vehicle Certification 55
7.05.8 Vehicle Inspections 35
7.05.9 Correction of Defects 35
7.06 CONTAINERS 36
7.06.1 Carts 36
7.06.2 Bins, Roll-off Boxes and Compactors 39
7.07 PERSONNEL REQUIREMENTS........ ....40
7.08 PERFORMANCE REVIEW MEETING ...41
ARTICLE 8. PAYMENTS TO THE CITY........ 42
8.01 PAYMENT SCHEDULE ...42
8.02 FRANCHISE FEE 42
8.03 AB939 FEE.. ..43
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8.04 STORM WATER FEE 43
8.05 OTHER PAYMENTS 43
8.06 ACCEPTANCE OF PAYMENT BY CITY 43
ARTICLE 9. CHARGES AND RATES..... 43
9.01 GENERAL 43
9.02 INITIAL RATES 43
9.03 SCHEDULE OF FUTURE ADJUSTMENTS 43
9.04 METHOD OF ADJUSTMENTS 44
9.05 EXTRAORDINARY ADJUSTMENT 44
9.06 GUARANTEED CUSTOMER RATE 45
9.07 LIMITATIONS ON RATE ADJUSTMENTS 46
ARTICLE 10. RECORD KEEPING AND REPORTING REQUIREMENTS 47
10.01 GENERAL 47
10.02 RECORD KEEPING 47
10.02.1 General 47
10.02.2 Inspection of Records 47
10.02.3 Retention of Records 47
10.02.4 Record Security 48
10.02.5 Accounting Records 48
10.02.6 Collection Sen/ice Records 48
10.02.7 Other Records 49
10.03 ANNUAL REPORTING 50
10.03.1 General 50
10.03.2 CalRecycle Reports 50
10.03.3 City Reports 50
10.03.4 Additional Reporting 50
ARTICLE 11. INSURANCE 51
11.01 INSURANCE POLICIES 51
11.01.1 Minimum Scope of Insurance 51
11.01.2 MINIMUM LIMITS OF INSURANCE 51
11.02 DEDUCTIBLES AND SELF-INSURED RETENTION 52
11.03 ENDORSEMENTS 52
11.03.1 General Liability 52
11.03.2 Automobile Liability. 52
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11.03.3 Contractors Pollution Liability 52
11.03.4 All Coverage 55
11.04 ACCEPTABILITY OF INSURERS 53
11.05 VERIFICATION OF COVERAGE 53
11.05.1 Proof of Insurance 55
11.06 SUBCONTRACTORS 53
11.07 MODIFICATION OF INSURANCE REQUIREMENTS 53
11.08 RIGHTS OF SUBROGATION 53
ARTICLE 12. INDEMNIFICATION AND BOND ...54
12.01 INDEMNIFICATION 54
12.02 HAZARDOUS SUBSTANCES INDEMNIFICATION 54
12.03 THE ACT INDEMNIFICATION AND GUARANTEE 55
12.04 PERFORMANCE BOND 56
12.04.1 Letter of Credit 55
12.05 FOREFEITURE OF PERFORMANCE BOND 56
12.06 PERFORMANCE SECURITY BEYOND SERVICE TERM 56
12.07 OBLIGATION 56
12.08 EXCEPTION 56
ARTICLE 13. DEFAULT OF CONTRACT 57
13.01 TERMINATION.. 57
13.02 VIOLATIONS. 58
13.03 EFFECTIVE DATE OF TERMINATION 59
13.04 IMMEDIATE TERMINATION 59
13.05 TERMINATION CUMULATIVE 59
13.06 LIQUIDATED DAMAGES 59
13.07 PROCEDURE FOR REVIEW OF LIQUIDATED DAMAGES ....60
13.08 FORCE MAJEURE 61
ARTICLE 14. OTHER AGREEMENTS OF THE PARTIES 61
14.01 INDEPENDENT CONTACTOR 61
14.02 COMPLIANCE WITH LAW 61
14.03 No ASSIGNMENT 61
14.04 USE OF SUBCONTRACTOR ..62
14.05 SUBCONTRACTORS 62
14.06 NONDISCRIMINATION 62
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14.07 MODIFICATIONS 62
14.07.1 Change in Law. 62
14.07.2 City's Right to Direct Changes 63
14.07.3 New Diversion Programs 65
14.08 TRANSITION TO NEXT CONTRACTOR 63
ARTICLE 15. MISCELLANEOUS PROVISIONS 64
15.01 GOVERNING LAW 64
15.02 JURISDICTION 64
15.03 WAIVER 64
15.04 ENTIRE CONTRACT; AMENDMENT 64
15.05 SECTION HEADINGS 64
15.06 CONSIDERATION 65
15.07 SEVERABILITY 65
15.08 DAMAGE BY CONTRACTOR 65
15.09 ACKNOWLEDGMENT 65
15.10 CONTRACTOR STATUS 65
15.11 CONTRACTOR AUTHORIZATION 65
15.12 REPRESENTATIONS 65
15.13 PERMITS & LICENSES 66
15.14 CITY OWNERSHIP .....66
15.15 EXEMPT WASTE 66
ARTICLE 16. NOTICES 66
ARTICLE 17. AUTHORITY 68
EXHIBIT 1 - INITIAL RATES
EXHIBIT 2 - RATE ADJUSTMENT EXAMPLE
EXHIBIT 3 - PERFORMANCE BOND
EXHIBIT 4 - CITY FACILITIES
EXHIBIT 5 - ACCEPTABLE AND UNACCEPTABLE BULKY ITEMS
EXHIBIT 6 - COUNTY OF SAN DIEGO FRANCHISE CITY RATES
EXHIBIT 7 - CONTRACTOR INCOME STATEMENT EXAMPLE
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This Solid Waste Services Contract ("Contract") made and entered into this day of
, 2012, ("Effective Date") by and between the City of Carlsbad, hereinafter
referred to as "City" and Coast Waste Management, Inc., a California corporation, hereinafter
referred to as "Contractor".
Now, therefore, in consideration of the mutual covenants, Contracts and consideration
contained herein, the City and Contractor hereby agree as hereinafter set forth:
ARTICLE 1. DEFINITIONS
For the purpose of this Contract, the definitions contained in this Article shall apply unless
othenwise specifically stated. When not inconsistent with the context, words used in the present
tense include the future, words in the plural include the singular, and words in the singular
include the plural. Use of the masculine gender shall include the feminine gender. The meaning
of terms or words not defined herein shall be as commonly understood in the solid waste
Collection Services industry when the common understanding is uncertain.
1.01 ACT
"Act" means the California Integrated Management Act of 1989 (California Public Resources
Code Secflon 40000 et seg.). as it may be amended from flme to time.
1.02 AFFILIATE
"Affiliate" means all businesses (including corporations, limited and general partnerships and
sole proprietorships) which are directly or indirectly related to Contractor by virtue of direct or
indirect ownership interest or common management. An Affiliate shall include a business in
which Contractor owns a direct or indirect ownership interest, a business which has a direct or
indirect ownership in Contractor and/or a business which is also owned, controlled or managed
by any business or individual which has a direct or indirect ownership interest in Contractor. For
purposes of determining whether an indirect ownership interest exists, the constructive
ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on
the date of this Contract, shall apply
1.03 ANNUAL DIVERSION REPORT
"Annual Diversion Report" means the annual report submitted by the Contractor to the City
describing the previous year's diversion activities, diversion percentages and associated
calculations and the description of the diversion activity planned for the upcoming year, if
applicable. The Annual Diversion Report shall be prepared in a manner that directly
corresponds to the reporting requirements of Cal Recycle and the Act, as amended.
1.04 BILLINGS
"Billings" or "Billing" or "Bill" means the statement(s) of charges provided to Customers for
services rendered by City or Contractor, as the case may be.
1.05 BIN
"Bin" means a detachable metal or rigid plasflc container with a capacity of less than ten (10)
cubic yards, equipped with a lid, and designed for mechanical pick-up by collection vehicles.
1.06 BIN SERVICE
"Bin Service" means Solid Waste Services in which a Bin is used for the Collection of Solid
Waste.
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1.07 BIOHAZARDOUS OR BIOMEDICAL WASTE
"Biohazardous or Biomedical Waste" means any waste which may cause disease or reasonably
be suspected of harboring pathogenic organisms; included are waste resulting from the
operation of medical clinics, hospitals, and other facilities processing wastes which may consist
of, but are not limited to, human and animal parts, contaminated bandages, pathological
specimens, hypodermic needles, sharps, contaminated clothing and surgical gloves.
1.08 BULKY WASTE
"Bulky Waste" means Solid Waste that cannot and/or would not typically be accommodated
within a Cart. General examples include fumiture (including chairs, sofas, mattresses, and
rugs); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers,
plumbing, small household appliances and other similar items, commonly known as "white
goods"), residential waste (including wood waste, tree trunks and large branches if no larger
than eighteen inches (18") in diameter and four feet (4') in length, scrap wood, and debris from
building remodeling not exceeding one cubic yard per collection. A specific list indicaflng the
materials that wil! be considered Bulky Waste and will be accepted is included as Exhibit 5. In
the event a question ever arises as to whether a specific item or category of items meets the
definition of Bulky Waste and will be accepted, the Contract Administrator will make a final
determination. Notwithstanding the above, Bulky Waste does not include materials herein
defined as Exempt Waste, and these materials will not be accepted. Bulky Waste must have
been generated on the Customer's Premises.
1.09 CALRECYCLE
"CalRecycle" means the California Department of Conservation, Division of Recycling.
1.10 CAN
"Can" means a container supplied by the Customer for collection of solid waste.
1.11 CART
"Cart" means a plastic Container with a hinged lid and wheels serviced by an automated truck
with a capacity of no less than 30- and no greater than 101-gallons.
1.12 CELLPHONES
"Cell Phones" means al! telephones used for mobile or cellular communications including
batteries used to power cell phones.
1.13 CITY
"City" means the City of Carlsbad, California.
1.14 CITYCOUNCIL
"City Counci!" means the City Council of the City of Carisbad, California.
1.15 CITY FACILITIES
"City Facilities" means those City properties listed in Exhibit 4 which is attached to and included
in this Contract.
1.16 CITY MANAGER
"City Manager" means the City Manager of the City of Carlsbad or the City Manager's designee.
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1.17 COLLECTION SERVICE
"Collection Service" means the process whereby Solid Waste is removed and transported from
within the City.
1.18 COMMERCIAL PREMISES
"Commercial Premises" means Premises upon which business activity is conducted, including
but not limited to retail sales, sen/ices, wholesale operations, manufacturing and industrial
operations, but excluding Residential Premises upon which business activities are conducted
when such activities are permitted under applicable zoning regulations and are not the primary
use of the property.
1.19 COMMERCIAL SERVICE
"Commercial Service" means Solid Waste Services performed at or for Commercial Premises.
1.20 COMMINGLED
"Commingled" or "Commingle" means the placement by the Waste Generator of materials that
would othenwise become Solid Waste (such as glass bottles, metal cans, newspapers,
cardboard, plastic containers, etc.) together into a Container(s) for the purpose of allowing the
Recycling of such materials.
1.21 COMPACTOR
"Compactor" refers to Bin or Roll-off Box with a mechanical apparatus that serves to compact
the content of the container, regardless of size, whether stationary or mobile.
1.22 CONSTRUCTION AND DEMOLITION DEBRIS
"Construction and Demolition Debris" means Solid Waste generated at a Premises that is
directly related to construction, remodeling, repair or demolition activities occurring thereon.
1.23 CONTAINER
"Container means any and all types of receptacles, including Cans, Carts, Crates, Bins and
Roll-Off Boxes.
1.24 CONTAMINATION FEE
"Contamination Fee" means an amount charged by Contractor to a MFD Customer or
Commercial Customer, to recover its costs for separating Solid Waste placed in Recyclable
Materials or Green Waste Containers, or for arranging special, unscheduled Collections.
1.25 CONTRACT
"Contract" means this Solid Waste Sen/ices Contract and all amendments hereto.
1.26 CONTRACT ADMINISTRATOR
"Contract Administrator" means the person, or his designee, designated by the City to
administer and monitor the provisions of this Contract.
1.27 CONTRACT YEAR
Contract Year" means each twelve (12) month period from July 1 to June 30, beginning July 1,
2012.
1.28 CONTRACTOR
"Contractor" means the person or entity entering into this Contract with the City as identified in
the introductory paragraph of this Contract.
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1.29 COUNTY
"County" means San Diego County California.
1.30 CRATE
"Crate" means an approximately twelve (12)-gallon open top plastic container used for the
Collection of Recyclable Materials.
1.31 CUSTOMER
"Customer means a Person receiving Solid Waste Services from Contractor pursuant to the
terms of this Contract.
1.32 DISPOSAL
"Disposal" means the ultimate disposition of Solid Waste Collected by Contractor at a landfill or
otherwise in full regulatory compliance.
1.33 DISPOSAL SITE(S)
"Disposal Site(s)" means the Solid Waste Handling Facility or Facilities utilized for the ultimate
Disposal of Solid Waste Collected by Contractor.
1.34 ELECTRONIC WASTE
"Electronic Waste" means "Covered Electronic Wastes" as defined in the Act (Section 42463 of
Public Resources Code) including discarded electronic equipment such as, but not limited to,
television sets, computer monitors, central processing units (CPUs), laptop computers, and
peripherals (e.g., external computer hard drives, computer keyboards, computer mice, and
computer printers), and other similar items commonly known as "brown goods" and "e-waste".
Electronic Waste excludes oversized items of that cannot be handled by one (1) person.
1.35 EXEMPT WASTE
"Exempt Waste" means Biohazardous or Biomedical Waste, Hazardous Waste, Sludge,
Designated Waste, Stable Matter, waste tires, liquid wastes. Green Waste or lumber that is
more than four (4) feet in length in its longest dimension or two (2) feet in diameter, automobiles,
automobile parts, boats, boat parts, boat trailers, internal combustion engines, lead-acid
batteries, and those wastes under the control of the Nuclear Regulatory Commission.
1.36 FOOD WASTE
"Food Waste" means Solid Waste comprised of animal, fruit or vegetable matter that attends the
preparation, consumption, decay, dealing in or storage of meats, fish, fowls, fruits or vegetables.
1.37 FRANCHISE FEE
"Franchise Fee" means the payments paid to city by the contractor pursuant to Section 8.02.
1.38 GREEN WASTE CART
"Green Waste Cart" is a heavy-plastic receptacle with a rated capacity of at least thirty (30)
gallons and not more than one-hundred one (101) gallons, having a hinged, tight-fitflng lid, and
wheels, that is approved by the City for the Collection of Green Waste and is appropriately
labeled as a Green Waste Cart.
1.39 GREEN WASTE
"Green Waste" means any vegetative matter resulting from normal yard and landscaping
maintenance that is not more than four (4) feet in its longest dimension or six (6) inches in
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diameter. Green Waste includes plant debris, such as grass clippings, leaves, pruning, weeds,
branches, brush. Holiday trees, and other forms of organic waste that is generated at the
Premises wherein the Green Waste is collected. Green Waste does not include items herein
defined as Exempt Waste or materials not normally produced from gardens or landscape areas,
such as brick, rock, gravel, large quantifles of dirt, concrete, sod, non-organic wastes, oil, and
painted or treated wood products
1.40 GROSS RECEIPTS
"Gross Receipts" means any and all revenue received from Billings by City or Contractor for the
Collection, processing. Disposal and transportation of Solid Waste pursuant to this Contract, in
accordance with generally accepted accounting principles, without subtracting the Franchise
Fee, the AB 939 Fee, any other payment to City or any other cost of doing business. Revenue
received by the Contractor from the sale of Recyclable Materials, including California
Redemption Value, shall not be considered as Gross Receipts.
1.41 HAZARDOUS WASTE
"Hazardous Waste" is any material which is defined as a hazardous waste under California or
United States law or any regulations promulgated pursuant to such law, as such law or
regulations may be amended from time to flme.
1.42 HOUSEHOLD BATTERIES
"Household Batteries" means disposable or rechargeable dry cells (e.g.. A, AA, AAA, B, C, D, 9-
volt, button-type) commonly used as power sources for household or consumer products
including, but not limited to, nickel-cadmium, nickel metal hydride, alkaline, mercury, mercuric
oxide, silver oxide, zinc oxide, nickel-zinc, nickel iron, lithium, lithium ion, magnesium,
manganese, and carbon-zinc batteries, but excluding automotive lead acid batteries.
1.43 HOUSEHOLD HAZARDOUS WASTE (HHW)
"Household Hazardous Waste" means Hazardous Waste generated at a residential property
1.44 LATE FEE
"Late Fee" means amounts charged by Contractor to reimburse it for administrative costs arising
from payment delinquency including the cost of notices and adjustments to its accounting
records, and may include a fixed fee, interest on past due amounts, or non-sufficient fund (NSF)
fees.
1.45 MATERIALS RECOVERY FACILITY ("MRF")
"Materials Recycling Facility" or "MRF" means a fully permitted facility where Solid Waste,
Recyclable Materials, and other materials are processed, sorted or separated for the purposes
of recovering reusable or Recyclable Materials, processing or composting.
1.46 MAXIMUM CONTRACTOR COMPENSATION
"Maximum Contractor Compensation" means the maximum amount that Contractor may receive
from Billings to Customers, as full, entire and complete compensation due pursuant to this
Contract for all labor, equipment, materials and supplies, taxes, insurance, bonds, letters of
credit, overhead, disposal, transfer, profit and all other things necessary to perform all the
services required by this Contract in the manner and at the times prescribed. Contractor has the
right in its sole discretion to accept less than the maximum amount.
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1.47 MULTI-FAMILY DWELLING (MFD)
"Multi-Family Dwelling" or "MFD" means a distinct living unit within a Mulfl-Family Residential
Complex.
1.48 MULTI-FAMILY RESIDENTIAL COMPLEX
"Multi-Family Residential Complex" means any building or structure, or portion thereof, located
in City which is used for residential housing purposes, irrespective of whether residency at that
property is transient, temporary, or permanent, and having four (4) or more distinct living units.
1.49 NON-COLLECTION NOTICE
"Non-Collection Notice" is a form developed and used by the Contractor, as approved by the
City, to notify Customers of the reason for non-collection of materials set out by the Customer
for Collection by Contractor pursuant to this Contract.
OCCUPANT 1.50 OCCUPANT
"Occupant" refers to a person who occupies Premises.
1.51 ON-CALL SERVICE
"On-Call Service" means Collection Service provided by Contractor that is not regularly
scheduled or is scheduled more than twenty-four (24) hours in advance. On-Call Sen/ice is
initiated by a Customer by calling, emailing, or requesting the service in person at Contractor's
office.
1.52 OVERAGE FEE
"Overage Fee" means a fee charged by Contractor to a MFD Customer or Commercial
Customer to compensate it for expenses arising from overfilling of Containers by a Customer,
including documenflng the incident, cleaning up litter and debris, and paying addiflonal disposal
charges.
1.53 OWNER
"Owner" means the Person holding legal title to the real property constituflng the Premises to
which Solid Waste Service is to be provided under this Contract.
1.54 PERSON
"Person" means any individual, firm, associaflon, organization, partnership, corporation,
business trust, joint venture, the United States, the State of California, the County of San Diego,
cities, and special purpose districts.
1.55 PHARMACEUTICAL WASTE
"Pharmaceutical Waste" means items intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease in humans or other animals. Pharmaceutical waste is
synonymous with drug waste, unused or expired medication, or unused or expired drugs,
prescription and over-the-counter human drugs, veterinary drugs, diagnostic agents, and
nutritional supplements.
1.56 PREMISES
"Premises" means any land or building where Solid Waste is generated or accumulated.
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1.57 PROCESSING FACILITY
"Processing Facility" means a facility where materials are prepared, treated, consolidated or
converted through some special method such as baling, crushing, shredding, chipping, grinding,
extracting, and mechanical or hand classification.
1.58 RATE YEAR
"Rate Year" means each July 1 through June 30 period during the Term, beginning July 1, 2012,
or portion thereof.
1.59 RECYCLING
"Recycling" means the processing of Solid Waste for the purpose of returning them to the
economy in the form of raw materials for new, reused, or reconstituted products, or other uses
resulting in diversion from landfill disposal.
1.60 RECYCLABLE MATERIALS
"Recyclable Materials" means those materials that are capable of being recycled. Recyclable
Materials include: newsprint (including inserts); mixed paper (including magazines, catalogs,
envelopes, junk mail, corrugated cardboard, Kraft brown bags and paper, paperboard, paper
egg cartons, office ledger paper, and telephone books); glass containers; aluminum beverage
containers; small scrap and cast aluminum (not exceeding ten (10) pounds in weight nor two (2)
feet in any dimension for any single item); steel including "fln" cans and small scrap (not
exceeding ten (10) pounds in weight nor two (2) feet in any dimension for any single item);
bimetal containers; mixed plastics including, but not limited to, plastic containers (1-7), and
bottles including containers made of HDPE, LDPE, PET, or PVC; and aseptic containers.
Polystyrene foam and film plastic, including plastic bags are specifically excluded from collection
and processing.
1.61 RECYCLING BIN
"Recycling Bin" means a metal or rigid plastic container, with a capacity of two (2) cubic yards
up to and including six (6) cubic yards, designed or intended to be mechanically dumped into a
loader packer-type recycling truck, that is approved for such purpose by the City and is
appropriately labeled as a Recycling Bin.
1.62 RECYCLING CART
"Recycling Cart" is a heavy-plastic receptacle with a rated capacity of at least thirty (30) gallons
and not more than one-hundred one (101) gallons, having a hinged, tight-fitflng lid, and wheels,
that is approved by the City for the Collection of Recyclable Materials and is appropriately
labeled as a Recycling Cart.
1.63 RESIDENTIAL PREMISES
"Residenflal Premises" means Premises upon which Single-Family or Multi-Family Dwellings
exist, including, without limitation, apartments, boarding or rooming houses, condominiums,
mobile homes, efficiency apartments, and second units.
1.64 RESIDENTIAL SERVICE
"Residential Service" means Solid Waste Services performed at and for Residential Premises.
1.65 RE-START FEE
"Re-start Fee" means a fee charged by Contractor where re-establishing service following a
suspension of service due to non-payment. However, the Re-start Fee will not apply to existing
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Commercial Customers that move to a new business location within the City or to a change in
ownership at a MFD currently receiving service.
1.66 ROLL-OFF BOX
"Roll-Off Box" means a metal container with a capacity of (10) or more cubic yards that is
normally loaded onto a motor vehicle and transported to an appropriate facility.
1.67 ROLL-OUT SERVICE
"Roll-out Service" means a service provided to MFD's and Commercial Premises where
Contractor's driver must dismount the Collecflon vehicle and move one (1) or more Bins in order
to accomplish Collecflon using the standard Collection vehicle.
1.68 SCOUT SERVICE
"Scout Service" means a service provided to MFD's or Commercial Premises where a smaller
truck is required to move one (1) or more Bins to a locaflon where Collection can be
accomplished using the standard Collection vehicle.
1.69 SERVICE AREA
"Service Area" means the corporate limits of the City of Carlsbad.
1.70 SHARPS WASTE
"Sharps waste" includes, but is not limited to, hypodermic needles, pen needles, intravenous
needles, lancets, and other devices that are used to penetrate the skin for the delivery of
medications.
1.71 SINGLE-FAMILY DWELLING (SFD)
"Single-Family Dwelling" or "SFD" means a distinct living unit within a Single-Family Residential
Premises.
1.72 SINGLE-FAMILY RESIDENTIAL PREMISES
"Single-Family Residenflal Premises" means any building or structure, or portion thereof, in City
which is used for residential housing purposes, irrespective or whether residence therein is
transient, temporary or permanent, and having three (3) or fewer disflnct living units, in which
each of the premises receives individual solid waste Collection Service using Carts.
1.73 SOLID WASTE
"Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid
wastes, including refuse, Construction and Demolition Debris, Bulky Waste, Recyclable
Materials, and Green Waste, Food Waste, or any combination thereof which are permitted to be
disposed of in a Class III landfill, and which are included in the definition of "Non-Hazardous
Solid Waste" set forth in the California Code of Regulations. Solid Waste does not include
Exempt Waste.
1.74 SOLID WASTE CART
"Solid Waste Cart" is a heavy-plastic receptacle with a rated capacity of at least thirty (30)
gallons and not more than one-hundred one (101) gallons, having a hinged, tight-fitting lid, and
wheels, that is approved by the City for the Collection of Solid Waste and is appropriately
labeled as a Solid Waste Cart.
1.75 SOLID WASTE SERVICES
"Solid Waste Services" means the Collection, transport and Recycling of Solid Waste.
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1.76 SOURCE SEPARATED
"Source Separated" means the segregation by the Waste Generator of materials (such as glass
bottles, metal cans, newspapers, cardboard, plastic containers, food waste, etc.) into separate
Containers(s) for each material for the purpose of allowing the Recycling of such materials.
1.77 SPLITBIN
"Split Bin" means a Bin that is divided in two parts where one side is designated for Commingled
Recyclable Materials and the other side designated for Solid Waste.
1.78 TRANSFER STATION
"Transfer Station" means a facility that receives Solid Waste from collection vehicles and
transfers the material to larger vehicles for transport to landfills and other destinations. Transfer
Stations may or may not also include MRFs, transferring residual Solid Waste (Solid Waste left
after the sorting of Recyclable Materials) to landfills and Recyclable Materials, including Green
Waste and/or Construction and Demolition debris, to processors, brokers or end-users.
1.79 UNIVERSAL WASTE OR U-WASTE
"Universal Waste" or "U-Waste" means all waste defined by Title 22, Subsections 66273.1
through 66273.9 of the California Code of Regulations. These include, but are not limited to,
batteries, fluorescent light bulbs, or mercury switches.
1.80 WASTE GENERATOR
"Waste Generator" means any Person as defined by the California Public Resources Code,
whose act or process produced Solid Waste as defined in the California Public Resources
Code.
1.81 WHITE GOODS
"White Goods" means inoperative and discarded refrigerators, microwave ovens, ranges, water
heaters, freezers, and other similar household appliances.
1.82 WORKDAY
"Work Day" means any day, Monday through Saturday that is not a holiday as set forth in
Section 7.01.2 of this Contract.
ARTICLE 2. TERM OF CONTRACT
2.01 COMMENCEMENT OF SERVICES
The obligations of the parties hereunder, and the provision of Solid Waste Services by
Contractor, shall commence on July 1, 2012. Contractor understands and agrees that the time
between the date this Contract is signed and July 1, 2012, is intended to provide Contractor with
ample and sufficient time to transition to the new services specified in this Contract,
2.02 TERM
Unless terminated in accordance with Article 13, the term of this Contract shall terminate on
June 30, 2022.
2.03 OPTION TO EXTEND
At its sole discretion the City may offer the Contractor the option to extend the Term of this
Contract for up to three (3) years. Notice by the City of the City's offer to extend the Contract
shall be given at least (18) months prior to the expiration of the original term. Contractor shall
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provide written notice to the City as to whether Contractor accepts or rejects the City's offer
within two weeks (14 days) of the date of the offer. If Contractor fails to provide such notice to
the City within two weeks, the City's offer shall be deemed withdrawn and the City shall have no
obligation to extend the term of this Contract beyond the current expiration date.
ARTICLE 3. SCOPE OF CONTRACT
3.01 GRANT OF CONTRACT
Except as othen/vise provided in this Contract, the Contractor is herein granted the exclusive
right to provide Residential Service and Commercial Sen/ice in the Service Area. No other solid
waste or recycling services shall be exclusive to the Contractor.
3.02 LIMITATIONS ON SCOPE OF GRANT TO CONTRACTOR
The right granted to the Contractor is exclusive, except for the categories of solid waste listed
below. The granting of this right does not preclude the categories of solid waste listed below
from being delivered to, collected, or transported by others as provided below, provided that no
person is excused from obtaining from the City any authorization that is required by law.
Contractor may but is not obligated to, provide the services described below on a non-exclusive
basis.
A. Source-separated Recyclable Materials that the Waste Generator sells to, or otherwise
receives compensation from, other persons in a manner resulting in a net payment to the
customer affer consideration of collection, handling, or processing costs;
B. Solid Waste, including Recyclable Materials, Green Waste and Bulky Waste, which is
removed from any Premises by the Waste Generator, and which is transported
personally by such Generator (or by its employees) to a processing or disposal facility in
a manner consistent with all applicable laws and regulations;
C. The donation of source-separated materials to youth, civic, charitable, or other nonprofit
organizations;
D. Containers delivered for recycling under the California Beverage Container Recycling
Litter Reduction Act, Sections 14500, et seq., Califomia Public Resources Code;
E. Green Waste removed from premises by a gardening, landscaping, or tree trimming
company using its own equipment and employees as an incidental part of a total service
offered by the company, as opposed to a hauling service;
F. Construction and Demolition Waste that is incidentally removed by a duly-licensed
construction or demolition company, as part of a total service offered by such licensed
company or by the City and where the licensed company uses its own equipment and
employees;
G. The collection, transfer, transport. Recycling, processing, and disposal of animal waste
and remains from slaughterhouse or butcher shops for use as tallow, or dead animals;
H. The collection, transfer, transport, Recycling, processing, and disposal of Hazardous
Substances, Hazardous Waste, Biohazardous Waste, Exempt Waste, and radioactive
waste regardless of its source;
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I. The collection, transfer, transport, Recycling, processing, and disposal of Solid Waste by
City through City officers or employees in the normal course of their employment; and,
J. Solid Waste Services for governmental agencies other than City which may have
facilities in City, but over which City has no jurisdiction in connection with the regulation
of Solid Waste.
ARTICLE 4. COLLECTION SERVICES
4.01 GENERAL
The work to be done by Contractor pursuant to this Contract shall include, but not be limited to,
the furnishing of all labor, supervision, equipment, materials, supplies, and all other items
necessary to perform the services required. The enumeration of, and specification of
requirements for, particular items of labor or equipment shall not relieve Contractor of the duty to
furnish all other items as may be required, whether enumerated elsewhere in the Contract or
not.
The work to be done by Contractor pursuant to this Contract shall be accomplished in a
thorough and professional manner so that all Customers are provided reliable, courteous and
high-quality Solid Waste Services at all times. The enumeration of, and specification of
requirements for, particular aspects of service quality shall not relieve Contractor of the duty of
accomplishing all other aspects in the manner provided in this section, whether such other
aspects are enumerated elsewhere in the Contract or not.
4.02 SOLID WASTE COLLECTION
4.02.1 Single-Family Dwelling (SFD) Solid Waste Collection
On or before July 1, 2012, Solid Waste Cart deliveries shall be completed and
Contractor shall collect and remove Solid Waste from all SFDs once per week from
Contractor-provided Solid Waste Carts. Per Section 6.06.1, Customers may select the
desired Cart size in advance of the initial Solid Waste Cart delivery. In addition, within
ninety (90) days following the initial Solid Waste Cart delivery, Customers may receive
one (1) free Solid Waste Cart exchange for a different-sized Cart. Thereafter, Customers
are entitled to one (1) free Solid Waste Cart replacement during the Term. No discount
will be given for using a sixty-four (64) gallon Solid Waste Cart.
Customers may request additional Solid Waste Carts for an additional charge per Cart
per month in accordance with the approved rate schedule.
Contractor shall collect Carts curbside.
Collection of Green Waste, Recyclable Materials, and Solid Waste from the SFD shail
occur on the same day each week.
Contractor shall provide temporary Solid Waste collection service to SFD's, upon
request of the Customer, using Bins or Roll-offs. Temporary service shall be available up
to ninety (90) days.
4.02.2 Multi-Family Dwellings (MFD) Solid Waste Collection
Contractor shall collect Solid Waste from MFDs as frequently as scheduled by Customer,
but not less than once per week and more frequently if required to handle the waste
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generated at the Premises where the Bins are located. The Contractor shall provide Bins
as part of the Collection Sen/ice at rates set forth in Exhibit 1, as adjusted. The size of
the Bins and the frequency (above the minimum) of Collection shall be determined
between the Customer and the Contractor. Size and frequency shall be sufficient to
provide that no Solid Waste need be placed outside the Bins. If a Customer appeals the
requirement to subscribe to a Bin service as opposed to Cart service and Contract
Administrator determines that Cart sen/ice would be appropriate. Contract Administrator
may waive Customer's requirement to subscribe to Bin service, and such Customer will
be considered a SFD Customer.
Contractor shall allow MFD Customers to use Bins for Solid Waste Collection that are
shared by the Occupants of the Premises. Contractor shall provide one or more Bin(s)
to such Customers as requested by Customer, provided that capacity shall be sufficient
to provide that no Solid Waste need be placed outside the Bin(s). City shall make final
determination as to the number and size of Bins, and frequency of collection to be
provided to Customers.
Contractor shall give special consideration when determining the collection location for
Multi-Family Residential Complexes to ensure that the flow of traffic is not impeded and
that it does not result in aesthetic degradation of an area. The designated collection
location, if disputed by Customer or Contractor, shall be determined by the City
Additionally if in the City's opinion the location of an existing collection location is
inappropriate, City may require the Customer or Contractor to relocate the collection
Containers.
Contractor shall provide special services such as Roll-out Service, or Scout Service or
use of locking Containers when requested by the Customer, at the rate set forth in
Exhibit 1, as adjusted. Contractor may provide customized Containers at the request of
the Customer, including Containers of a size not typically provided, where the request
can reasonably be accommodated, at the rate agreed to with the Customer, with any
disputes as to the Rate resolved by the Contract Administrator.
Contractor shall provide temporary collection service to MFD's, upon request of the
Customer, using Bins, or Roll-offs.
4.02.3 Commercial Premises Solid Waste Collection
Contractor shall collect Solid Waste from Commercial Premises as frequently as
scheduled by Customer, but not less than once per week and more frequently if required
to handle the waste generated at the Premises where the Containers are located, or in
accordance with applicable rules and regulations. The Contractor shall provide
Containers as part of the Collection Service at rates set forth in Exhibit 1, as adjusted.
The size of the container and the frequency (above the minimum) of Collection shall be
determined between the Customer and the Contractor. Size and frequency shall be
sufficient to provide that no Solid Waste need be placed outside the Container.
Specifically the Contractor shall offer the following Collection Service methodologies to
Commercial Customers:
A. Individual Bin or Cart Sen/ice. Contractor shall allow each Commercial Premises
to use Bins, Split Bins, Compactors, or Roll-Off Boxes for Solid Waste Collection.
If the Contract Administrator and Contractor agree that Cart service for a
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Commercial Premises generating small amounts of Solid Waste is appropriate,
Contractor shall Collect, at a minimum of once per week from such Commercial
Premises, the Solid Waste which has been compacted or otherwise placed, kept
or accumulated in Carts and placed at designated location, meeting Carlsbad
Municipal Code requirements prior to Contractor's normally weekly Collection
time. This small-volume Commercial Collection service shall be no more than two
(2) carts per Commercial Premises per week.
B. Centralized Bin or Cart Service. Contractor shall allow each Commercial
Premises to use Bins or Carts for Solid Waste Collection that are shared by the
Occupants of two or more adjacent Commercial Premises. In such case.
Contractor shall provide one or more Carts or Bins as requested by the
Customer(s) provided that capacity shall be sufficient to provide that no Solid
Waste need be placed outside the Container(s).
C. Permanent Roll-Off Boxes and Compactors. Contractor shall allow a Customer to
use a Roll-Off Box or Compactor for Solid Waste Collection to meet the
Customer's permanent Disposal needs. In such case, Contractor shall provide
Customer with a choice of Container capacities including ten (10), twenty (20),
and forty (40) cubic yards. Contractor shall offer Customers the option to
purchase or lease Roll-Off Boxes or Compactors through either the Contractor or
an outside vendor. Regular maintenance of Compactors that are leased or
provided by Contractor shall be provided by Contractor (or outside vendor) as
frequently as needed to keep the Compactors in good working order and
functioning at high compaction levels. Contractor is not required to provide
maintenance for Compactors obtained by the Customer through an outside
vendor.
D. Special Services. Contractor shall provide special services such as Roll-out
Service, or Scout Service or use of locking Containers when requested by the
Customer, at the rate set forth in Exhibit 1, as adjusted. Contractor may provide
customized Containers at the request of the Customer, including Containers of a
size not typically provided, where the request can reasonably be accommodated,
at the rate agreed to with the Customer, with any disputes as to the rate resolved
by the Contract Administrator.
E. Temporary Services. Contractor shall provide temporary collection service to
Commercial Premises, upon request of the Customer, using Bins, or Roll-offs.
4.02.4 City Facilities Solid Waste and Recyclable Materials Collection
Contractor shall provide scheduled and temporary Solid Waste, Recyclable Materials,
and Green Waste collection at City Facilities as frequently as scheduled by the City but
not less than once per week. City Facilities will be provided Collection Services at no
charge. Contractor shall allow each City Facility to use Carts, Bins, Compactors, or Roll-
Off Boxes for Solid Waste, Recyclable Materials, and Green Waste Collection, as
determined by City. The list of City Facilities receiving collection service. Container size,
and frequency or service is set forth in Exhibit 4 included herein. City may change the
service levels and number of facilities sen/iced during the term of the Contract without
any additional compensation paid to the Contractor. City shall include any such changes
on a revised Exhibit 4, collections shall be scheduled at a time mutually agreed upon by
Contractor and City. Solid Waste services at City Facilities necessitated by unusual or
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extraordinary activities beyond those typically expected of a municipal corporation,
including, but not limited to, renovations to city facilities, damage caused by flood,
earthquake, or other natural disasters will be charged to the City at the rates as set forth
in Exhibit 1, as adjusted.
4.03 RECYCLING COLLECTION
4.03.1 Single-Family Dwelling (SFD) Recycling Collection
On or before July 1, 2012, Recycling Cart deliveries shall be completed and Contractor
shall collect and remove Commingled Recyclable Materials from all SFDs once per week
from Contractor-provided Recycling Carts. Per Section 6.06.1, Customers may select
the desired Cart size in advance of the initial Recycling Cart delivery. In addiflon, within
ninety (90) days following the initial Recycling Cart delivery. Customers may receive one
(1) free Recycling Cart exchange for a different-sized Cart. Thereafter, Customers are
entitled to one (1) free Recycling Cart replacement during the Term.
Customers may request up to two (2) additional Recycling Carts of the same size at no
additional charge. Delivery of additional Recycling Carts beyond three (3) will be at the
rate set forth in Exhibit 1, as adjusted. No discounts will be given for using 64-gallon or
35-gallon Recycling Carts.
Contractor shall collect Carts curbside.
4.03.2 Multi-Family Dwellings (MFD) Recycling Collection
Contractor shall collect Commingled Recyclable Materials from MFDs as frequently as
scheduled by Customer, but not less than once per week and more frequently if required
to handle the Recyclable Materials generated at the Premises. The Contractor shall
provide Bins or Carts as part of the Collection Service at rates set forth in Exhibit 1, as
adjusted. The size of the Bins or Carts and the frequency (above the minimum) of
Collection shall be made between the Customer and the Contractor. Size and frequency
shall be sufficient to provide that no Recyclable Materials need be placed outside the
Bins or Carts, but in no event less than at the ratio of two (2) 96-gallon Carts per twenty-
five (25) MFDs at a Multi-Family Residenflal Complex.
Contractor shall allow MFD Customers to use Bins or Carts for Recyclable Materials
Collection that are shared by the Occupants of the Premises. Contractor shall provide
one or more Bins or Carts to such Customers as requested by Customer, provided that
capacity shall be sufficient to provide that no Recyclable Materials need be placed
outside the Bins or Carts. City shall make final determination as to the number and size
of Bins and Carts, and frequency of Collection to be provided to shared Customers.
Contractor shall give speciai consideration when determining the collection location for
Multi-Family Residential Complexes to ensure that the flow of traffic is not impeded and
that it does not result in aesthetic degradation of an area. The designated collection
location, if disputed by Customer or Contractor, shall be determined by the City
Additionally, if in the City's opinion the location of an existing collection location is
inappropriate. City may require the Customer or Contractor to relocate the Collection
Containers.
Contractor shall provide special services such as Roll-out Service, or Scout Service or
use of locking Containers when requested by the Customer, at the rate set forth in
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Exhibit 1, as adjusted. Contractor may provide customized Containers at the request of
the Customer, including Containers of a size not typically provided, where the request
can reasonably be accommodated, at the rate agreed to with the Customer, with any
disputes as to the rate resolved by the Contract Administrator.
4.03.3 Commercial Premises Recycling Collection
Contractor shall collect Commingled or Source Separated Recyclable Materials from
Commercial Premises as frequently as scheduled by Customer, but not less than once
per week and more frequently if required to handle the Recyclable Materials generated
at the Premises where the Containers are located. The Contractor shall provide
Containers as part of the Collection Service at Rates set forth in Exhibit 1, as adjusted.
The size of the Bins, Carts or Roll-off Box and the frequency (above the minimum) of
Collection shall be made between the Customer and the Contractor. Size and frequency
shail be sufficient to provide that no Recyclable Materials need be placed outside the
selected Containers. Contractor will also provide the use of Split Bins for Customers that
have limited space, in order to maximize participation in the Recyclable Materials
Collection program.
Contractor shall provide special services such as Roll-out Service, or Scout Service or
use of locking Containers when requested by the Customer, at the rate set forth in
Exhibit 1, as adjusted. Contractor may provide customized Containers at the request of
the Customer, including Containers of a size not typically provided, where the request
can reasonably be accommodated, at the rate agreed to with the Customer, with any
disputes as to the Rate resolved by the Contract Administrator.
4.03.4 Marketing and Sale of Recyclable Materials
Contractor shall be responsible for marketing and sale of ail Recyclable Materials
Collected pursuant to this Contract. Contractor may retain revenue from the sale of
Recyclable Materials.
4.03.5 Compliance with Mandatory Commercial and Multi-Family Recycling
Legislation
Contractor shall use reasonable good faith efforts to assist City for ensuring that
businesses generating more than 4 cubic yards of commercial solid waste per week and
multifamily residential dwelling complexes of 5 or more units arrange for recycling
services, on or after July 1, 2012. This provision is the result of the State passing
Assembly Bill 341, which mandates commercial and multifamily residential complexes
implement commercial recycling programs on or after July 1, 2012. Reasonable good
faith efforts shall include contacflng all applicable commercial and multi-family
Customers that do not have recycling services within the first twelve (12) months of the
start of the Contract and attempting to arrange for recycling services. By December 31,
2012, the Contractor will provide a written report to the Contract Administrator identifying
all applicable commercial and mulfl-family Customers that have not subscribed for
recycling services, the efforts undertaken by the Contractor to arrange for recycling
services and the name, title and phone number of the applicable contact person for each
Customer.
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4.04 GREEN WASTE RECYCLING COLLECTION
4.04.1 Single-Family Dwelling (SFD) Green Waste Collection
On or before July 1, 2012, Green Waste Cart deliveries shall be completed and
Contractor shall collect and remove Green Waste Materials from all SFDs once per week
from Contractor-provided Green Waste Carts. Per Section 6.06.1, Customers may
select the desired Cart size in advance of the initial Green Waste Cart delivery. In
addition, within ninety (90) days following the initial Green Waste Cart delivery.
Customers may receive one (1) free Green Waste Cart exchange for a different-sized
Cart. Thereafter, Customers are entitled to one (1) free Green Waste Cart replacement
during the Term. Customers may request up to two (2) additional Green Waste Carts of
the same size at no additional charge. Delivery of additional Green Waste Carts beyond
three (3) will be at the rate set forth in Exhibit 1, as adjusted. No discounts will be given
for using 64- gallon or 35 - gallon Green Waste Carts.
Contractor shall collect Carts curbside.
4.04.2 Multi-Family and Commercial Premises Green Waste Collection
Multi-Family and Commercial Customers shall have the option of voluntarily subscribing
to Green Waste Collection Services and shall pay Contractor for such service in
accordance with the rates set forth in Exhibit 1, as adjusted. Contractor shall collect
Source-Separated Green Waste from Multi-Family Residential Complexes and
Commercial Premises that have subscribed to Green Waste Collection Service as
frequently as scheduled by Customer, but not less than once per week. Contractor shall
allow Multi-Family and Commercial Customers to select a Collection Service method
that best suits the needs of its Premises. Specifically the Contractor shall offer the
Containers and service choices that are simitar to that offered for Commercial Solid
Waste Collection pursuant to Section 4.02.3. Contractor shall collect Green Waste at the
location agreed upon by Contractor and Customer. The designated collection location, if
disputed by Customer or Contractor, shall be determined by the City Where Green
Waste Collected from Commercial Premises requires special handling due the
composition of material or the amount of contamination. Contractor may charge a
special collecflon surcharge in an amount agreed to with the Customer, with any
disputes as to the amount resolved by the Contract Administrator.
4.04.3 Annual Holiday Tree Recycling Collection
Annually, commencing the day after December 25 and three (3) weeks thereafter, the
Contractor shall collect holiday trees from SFDs. SFD Customers are required to place
the holiday trees curbside on the scheduled Collection day for Solid Waste. Holiday trees
must be cut into lengths no longer than four (4) feet, be free of ornaments, garlands,
tinsel and flocking, and stands must be removed. Holiday trees from MFDs will be
collected on Customer's normal collection days at a central location designated by the
Customer at the Multi-Family Premises.
Contractor shall not be required to collect holiday trees that cannot be recycled or
composted, due to, among other things, tinsel, flocking or ornaments.
Contractor shall deliver the collected holiday trees to a city approved facility for
processing. This annual service shall be provided at no additional charge.
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4.05 ON-CALL BULKY WASTE COLLECTION SERVICE
4.05.1 SFD and MFD On-Call Bulky Waste Collection
The Contractor shall provide Bulky Waste Collection Service to all SFD Customers and
those Customers residing in MFD with Cart or Bin services in the Service Area whose
Bulky Waste have been placed within three (3) feet of the curb, swale, paved surface of
the public roadway, closest accessible roadway, or other such location agreed to by the
Contractor and Customer, that will provide safe and efficient accessibility to the
Contractor's Collection crew and vehicle.
Customers are required to call in to schedule a Bulky Waste pick-up by 5:00 PM the day
prior to the Customer's regular Collection day. Customer may place up to five (5) items
out for collection per pick-up. Each SFD Customer and those Customers residing in
MFD homes, regardless of whether they receive Cart or Bin service, is entitled to three
(3) pick-ups per dwelling per Contract Year at no charge. Service at no charge does not
extend to the management of MFD as they are subject to the rate set forth in Exhibit 1
as described in Section 4.05.2. Additional Bulky Waste pickups wiil be charged at the
rate set forth in Exhibit 1, as adjusted.
4.05.2 Commercial On-CatI Bulky Waste Collection
Contractor shall provide Bulky Waste Pickup service for Commercial Customers at the
rate set forth in Exhibit 1, as adjusted.
4.05.3 Bulky Waste Collection Restrictions
The following applies to items collected under this Section:
The following items wil! not be picked up:
• Hazardous Substances and Hazardous Waste. Effective July 1, 2012, Electronic
Waste from SFD's and MFDs shall be collected in accordance with Section 4.06, and
not as Bulky Waste.
• Bulky Waste which habitually is placed at any location by importation from outside
the City
• Material exceeding one cubic yard, generated as a result of construction, demolition
or remodeling activifles.
Vehicles used for collection of Bulky Waste shall not use compactor mechanisms or
mechanical handling equipment that may damage reusable goods or release Freon or
other gases from pressurized appliances.
4.05.4 Bulky Waste Containing Freon
In the event Contractor collects Bulky Waste that contains Freon, Contractor shall handle
such Bulky Waste in conformance to applicable state and federal laws or regulations.
4.05.5 Maximum Reuse and Recycling
Contractor shall dispose of Bulky Waste collected from Customers pursuant to this
Contract in accordance with the following hierarchy:
a. Reuse as is (where energy efficiency is not compromised)
b. Disassemble for reuse or Recycling
c. Recycle
d. Disposal
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Contractor shall not landfill such Bulky Waste unless the Bulky Waste cannot be reused
or recycled. Contractor shall record by class and weight (in tons) the Solid Waste
collected under Section 4.05, and shall record the kinds and weights (in tons) of Solid
Waste diverted, if any, from landfilling through Recycling, reuse, or other means of
diversion.
4.05.6 City Direction of Bulky Waste
City reserves the right to direct Contractor to take Bulky Waste collected pursuant to this
Section to a designated site or sites for the purpose of permitting persons who will reuse
or recycle such Bulky Waste to obtain the Bulky Waste. Contractor shall have no
obligation to dispose of the Bulky Waste or Bulky Waste residue remaining at the
directed site or sites after re-users and recyclers have removed reusable or recyclable
Bulky Waste. Contractor shall be entitled to a rate adjustment to recover any increased
costs in accordance with Section 14.07.2.
In addition. Contractor, upon receipt of notice (which may be provided telephonically)
from Contract Administrator or Code Enforcement, shall pick up and dispose of Bulky
Items left adjacent to public streets, alleys, or other rights of way by no later than 48
hours after notification by the Contract Administrator.
4.06 ON CALL ELECTRONIC WASTE COLLECTION
Effective July 1, 2012, Contractor shall provide Electronic Waste Collection Service to al! SFD
and MFD Customers in the Service Area whose Electronic Waste has been placed within three
(3) feet of the curb, swale, paved surface of the public roadway, closest accessible roadway, or
other such location agreed to by the Contractor and Customer, that will provide safe and
efficient accessibility to the Contractor's Collection crew and vehicle.
Customers are required to call in to schedule an Electronic Waste pick-up by 5:00 PM the day
prior to the Customer's regular Collection day.
Customer may place up to five (5) items out for collecflon per pick-up. SFD and MFD Customers
are entitled to three (3) pick-ups per dwelling per Contract Year at no additional charge.
Additional items may be delivered to the Buy-Back Center. Contractor shall not be required to
collect oversized items of Electronic Waste that cannot be handled by one (1) person. However,
such items will be accepted at the Buy-Back Center at no charge.
4.07 CELL PHONES AND USED BATTERIES COLLECTION
Contractor shall provide for curbside collection of Cell Phones and Household Batteries
generated by SFD's, commencing with respect to each Customer upon its receipt of a Cart for
Collection of Recyclable Materials. The customer will place these items into a sealed clear
plastic bag, and place the plastic bag on top of the Recyclable Materials Cart for Collection on
the regulariy-scheduled Collection day.
4.08 SHARPS WASTE COLLECTION
Contractor shall provide for Sharps Waste generated by SFDs or MFDs at no charge, at the
Buy-Back Center or through a container placed at up to three (3) locations at City facilities
designated by the City Contractor will replace the container at the City facility up to ten (10)
times each Contract Year, on an as-needed basis. Contractor shall also make available to
Customers a sharps by mail sen/ice from a third party provider through its website, at the rate
established by the third party provider from time to time.
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4.09 BUY-BACK CENTER
During the term of this Contract, Contractor will operate a Buy-Back Center for receipt of CRV
materials (aluminum and bi-metal cans, glass and plastic bottles) at the City transfer station
located at 5960 El Camino Real Carisbad, CA, and which Contractor currently leases. The
facility will operate Tuesday through Saturday 8:00 AM to 4:00 PM, closing between 1:00 PM -
1:40 PM. Contractor will also accept Electronic Waste, Sharps Waste, Cell Phones, and
Household Batteries from Residential Customers at the Buy-Back Center at no charge. Should
Contractor's lease of the 5960 El Camino Real facility terminate. Contractor's obligation to
operate a Buy-Back Center shall also terminate.
4.10 CITY-SPONSORED EVENTS
Conlractor shall provide Bins, or Roll-off Boxes for Solid Waste and Recycling Collection at City-
sponsored projects, cleanups or special events at no additional charge each Contract Year for
the term of the contract. City-sponsored events include temporary, unscheduled sen/ice to City
facilities, City property or public streets and sidewalks, excluding City construction, demolition
and renovation projects and materials that require special disposal or handling. Contractor shall
not be required to collect Exempt Waste.
4.11 WASTE WATCH
Contractor's drivers will assist the Carlsbad Police Department by reporting any suspicious
activity.
4.12 ANNUAL PHARMACEUTICAL COLLECTION EVENTS
Contractor shall provide up to two (2) free Pharmaceutical Collection Events per year, including
the staffing, disposal and transportation of Pharmaceutical Waste as requested by the Contract
Administrator. The City will provide the location for the event(s). Notwithstanding any provision
herein to the contrary due to current uncertainty regarding applicable requirements, the City will
not assert any claim of breach against Contractor related to alleged violations of federal, state or
local laws and regulations associated with Pharmaceutical Waste Collection. City or Contractor
may request a modification of the scope of services related to Pharmaceutical Waste collection,
or terminate this program, where prohibited or rendered impractical by current or future federal,
state or local laws and regulations.
4.13 ANNUAL SHREDDING EVENT
For Residential Service Customers, Contractor shall provide at least one annual shredding
event free of charge. Contractor may require proof of residency at such events. The location of
the event shail be within the City of Carlsbad. The limit of shredded material accepted will be
three standard office storage boxes per Residential Premises. Where appropriate, this limit may
be waived by Contractor on a case by case basis.
4.14 CARLSBAD JAZZ IN THE PARKS EVENTS
Contractor shall provide solid waste and recycling bins and service as needed during the
Carisbad Jazz in the Park events. Signage for recycling receptacles within the audience area
will be provided to promote recycling.
ARTICLE 5. TRANSPORTATION OF SOLID WASTE
Contractor shall transport all Solid Waste collected and intended for disposal to the Palomar
Transfer Station. City may change the designated facility by providing notice in writing to
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Contractor in which event Contractor is entitled to a rate adjustment in accordance with Section
14.07.2.
Contractor shall maintain accurate records of the quantities of Solid Waste transported to the
Palomar Transfer Station, or other facility designated in writing by the City and will cooperate
with City in any audits or investigations of such quantifles.
Contractor shall cooperate with the operator of the Palomar Transfer Station, or other facility
designated in writing by the City, with regard to operations therein, including, for example,
complying with directions from the operator to unload Collection vehicles in designated areas,
accommodating to maintenance operations and construction of new facilities, cooperating with
its Hazardous Waste exclusion program, and so forth.
5.01 GREEN WASTE PROCESSING SERVICES
Contractor shall deliver all Collected Green Waste to a fully permitted Green Waste Processing
Facility or Green Waste transfer station. The City has directed that Green Waste Collected in the
City be transported to the Palomar Transfer Station.
Should the City direct that Green Waste be transported to a location other than the Palomar
Transfer Station, Contractor shall be entitled to a rate adjustment in accordance with Section
14.07.2.
5.02 MINIMUM RECYCLING REQUIREMENTS
Contractor shall recycle or divert from landfilling sufficient Solid Waste to ensure that the City
meets current state law requirements for diversion Citywide. For Contract Year 2012, Contractor
shall be considered to have met this requirement under this Contract if the City's annual report
to CalRecycle shows a greater than 50% diversion rate and if CalRecycle approves the City's
reports as having a greater than 50% diversion rate in connection with efforts to meet City's
diversion mandate. In determining compliance with state law, the City and Contractor agree to
cooperate in good faith to develop representative per capita disposal calculations based on
population, level of industry employment, or a combination of both (e.g. hotels, assisted living
facilities), as appropriate.
Beginning with Contract Year 2013, if the annual report the City submits to CalRecycle reflects a
diversion rate of less than 50%, or if such a report is later revised to reflect a rate less than 50%,
the Contractor shall be required to undertake the actions set forth in Section 5.03. If a report is
revised and approved by CalRecycle to reflect 50% or higher diversion, Contractor's obligations
under Secflon 5.03 shall no longer be applicable.
If the State increases waste diversion requirements, or the City increases waste diversion
requirements. Contractor shall be entitled to a rate adjustment in accordance with Section
14.07.1 for the additional waste diversion requirements services that may be required, and the
provisions of this Section will apply using the higher diversion rate.
Contractor acknowledges the City's non-binding goal of achieving 75% waste diversion, and
agrees to undertake good faith efforts to identify new or enhanced strategies or programs to
increase waste diversion to assist the City to meet this goal. Contractor shall report the results
of its efforts annually to the City as part its annual report, in accordance with Section 10.03.3.
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5.03 FAILURE TO MEET MINIMUM REQUIREMENTS
Upon Contractor's failure to meet the minimum waste diversion requirements set forth above in
Section 5.02, and if the City determines that the Contractor has not met waste diversion from
the services and programs contemplated under this Contract, the Contractor agrees to
implement programs and provide equipment necessary in order for the City to meet the State-
mandated 50% diversion requirement. Such programs and equipment may include additional
public education efforts, on-site business waste audits, additional Recycling Carts or Bins at
multi-family complexes, high grading of commercial loads, secondary processing of commercial
solid waste, and processing of Construction and Demolition Waste from Roll-Off Boxes. Should
additional programs be required beyond those contemplated under this Contract, the Contractor
shall be entifled to an adjustment in rates in accordance with Section 14.07.2.
5.04 OWNERSHIP OF SOLID WASTE
City and Contractor understand and agree that it is Contractor, and not City who will arrange to
collect Solid Waste, that City has not, and, by this Contract does not, instruct Contractor on its
Collection methods, nor supervise the Collection process; nor do the City or Contractor intend to
place title to Solid Waste collected by Contractor in City Rather, the City and Contractor intend
that whatever, if any title in and to the Solid Waste that is collected by Contractor which
othenwise might exist in or with City in the absence of this Contract is hereby transferred to
Contractor; and further that if Contractor gains tifle to such Solid Waste it is by operation of law
and agreement with its Customers and is not the result of this Contract. At no time does City
obtain any right of ownership or possession of Solid Waste or Recyclable Materials placed for
Collection, and nothing in this Contract shall be construed as giving rise to any inference that
City has any such rights. Title and ownership of Solid Waste shall transfer from Contractor to the
owner or operator of the Palomar Transfer Station, or any other designated facility MRF, green
waste processing facility or other processing facility upon delivery. City and Contractor agree
that, for the purposes of the Uniform Commercial Code and all other laws imposing liability for
defective products, it is Contractor, and not City which is to be considered the merchant of
goods recycled pursuant to this Contract. Contractor shall have the right to retain, Recycle,
process, dispose of, and othenwise use Solid Waste collected pursuant to the terms hereof in
any lawful fashion or for any lawful purpose; and, further, shall have the right to retain any
benefit resulting from its right to retain, Recycle, process, dispose of, or reuse the Solid Waste
which it collects.
ARTICLE 6. OTHER SERVICES
6.01 RESPONSIBILITY FOR SERVICE BILLING AND COLLECTION
The City shall be responsible for billing and collection of payments from all Residential
Customers that receive a City of Carlsbad utility bill, and receive scheduled, permanent
Collection Service. The Contractor shall be responsible for the billing and collection of payments
from all other Customers, as well as billing and collection of payments for ancillary services to
Residential Customers (e.g, extra carts).
City and Contractor shall use their best efforts to obtain prompt and complete payment of all
delinquent accounts by any remedy authorized by law. Contractor shal! print notices on bills or
insert information in the bills at City's request. Within 30 days written notice, City may elect to
have either City or Contractor bill all customers, as a change in service. Bills must be itemized
by type of service. All bills must carry a due date, not "due upon receipt." To start service, new
Customers billed by the City will pay a pro-rated amount in advance for the balance of the billing
period.
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6.02 CITY BILLING
6.02.1 Establishment of Service/Billing Baseline
The City shall compensate Contractor monthly for services where the City provides for
billing and collection of payments, in a total amount based on the per-Premises or per-
Service charges set forth in Exhibit 1, as adjusted. Between the Effective Date and the
commencement date, the Parties agree to meet and confer to identify each Customer
billed by the City, the level of service and the applicable Rate.
6.02.2 Contractor Submittal of Billing Information
Contractor agrees to use reasonable efforts to provide City with any changes in cart
sizes that will impact the rate to the customer, by the 30"^ of each month, related to one
(1) or more prior calendar months. This information will be incorporated into the next
invoice submitted by City to City-billed Customers.
6.02.3 Administration Fee
City shall retain $0.12 per bill that is sent out each month. The Contractor shall be
entitled to a rate adjustment in accordance with Section 14.07.2 should the
Administraflon fee be increased.
6.02.4 Other Fees
City shall retain the Franchise Fee, AB 939 Fee and Storm Water Fee as described in
sections 8.02, 8.03, and 8.04.
6.02.5 Payment to Contractor
City will pay Contractor all amounts owing by the 30^ day of the month following the
submittal of information under Section 6.02.2, with respect to that month.
6.02.6 Annual Reconciliation of City-Billed Customers
Prior to December 31, 2012, and each December 31 thereafter, the Customers billed
by the City for which the Contractor shall be compensated by the City shall be
determined as follows:
A. Not later than September 30 of each year, the City shall provide to the Contractor
a listing of the total number of Customers billed by the City, by Customer location
and level of service.
B. Contractor shall have 30 days to review the documentation supplied by the City.
C. Contractor shall inform the Contract Administrator in writing not later than five (5)
days following the end of the thirty (30) day review period of any disagreement
with the documentation supplied by the City Failure to so inform the Contract
Administrator shall constitute acceptance of the documentation supplied by the
City
D. Contractor and the Contract Administrator shall meet and confer, and agree to
cooperate in good faith to resolve any disagreements. If Contractor and the
Contract Administrator are unable to agree upon the Customers billed by the City
and the levet of service within 10 days after receipt from the Contractor of the
notice of disagreement, the City Manager shall resolve the disagreement, and
his/her determination shall be considered final.
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6.03 CONTRACTOR BILLING
Contractor shall invoice all Commercial Customers receiving scheduled, permanent service on a
monthly basis in arrears at the rates set forth in Exhibit 1, as adjusted. Residential Customers
billed by Contractor shall be invoiced bi-monthly in advance at the rates set forth in Exhibit 1, as
adjusted. Bills must be itemized by type of service. Al! bills must carry a due date, but may be
"due upon receipt" where a date certain is provided before which the remedies provided in
Section 6.05.4 will apply In addition. Contractor shall invoice Customers receiving temporary
Bin or Roll-off service in arrears upon the completion of service, as provided in Exhibit 1, as
adjusted. Contractor will accept major credit cards for payment of these services. Customers
who do not use credit cards may be required to post a security deposit or to pay on a "Cash on
Delivery" (C.O.D.) basis.
6.04 BILLING SERVICE REQUIREMENTS
6.04.1 Records
Contractor shall maintain, for inspection by the City copies of all billings, receipts, and
service information, in chronological order, for a period of three (3) years after the date of
service. Contractor shall maintain those records in electronic format. City staff or
representatives shall be given access to such records upon one (1) Work Day notice.
6.04.2 Rates
City shall establish, by resolution, maximum rates for the types of service provided as
described in Exhibit 1, as adjusted. Contractor shall bill and collect at rates that do not
exceed the maximum rates set by the City Council. Where a rate for a particular service
is not established in Exhibit 1, Contractor and Customer shall negoflate directly with
respect to the rate, with any disputes resolved by the Contract Administrator, whose
decision shall be final.
6.04.3 Partial Month Service
If, during a month, service to Customer is added to or deleted, the Billing shall be pro-
rated based on the weekly service rate (weekly service rate shall be the monthly service
rate divided by four (4) times the number of actual weeks in the month that service was
provided to the Customer).
6.04.4 Temporary Service Stop
Residential Customers may request a temporary service stop and will not be charged for
Collection Services during the temporary service stop if such service is stopped for a
minimum of one continuous month due to extended vacation, home remodeling/home
construction. Temporary service stops expire automatically within one month after which
Contractor shail automatically resume service to the prior established service level
unless Customer requests an additional temporary service stop. Contractor shall resume
service to the prior established service level within five (5) days' notice of a request by
the Residential Customer to resume service.
6.04.5 Delinquent Service Accounts
Contractor shall diligently pursue collection of delinquent accounts billed by Contractor
by every means reasonably available to Contractor, including delinquency letters,
telephone calls, employment of collection agencies, and small claims court.
Page 23
Once payment is thirty (30) days past due. Contractor may send to the Customer a
notice that service will be suspended if payment is not made within an additional 30
days. Contractor may also charge late fees, interest, or NSF fees once payment is thirty
(30) days past due. However, service may only be suspended after these minimum time
periods and notice. City will not be responsible for or assist with the collection of
delinquent accounts billed by Contractor. Contractor shall notify City Code Enforcement
of suspended service. Upon recommencement of service following suspension, MFD
and Commercial Customers shall be charged a Re-start Fee at the rate set forth in
Exhibit 1, as adjusted.
6.05 CUSTOMER SERVICE
6.05.1 General
All service inquiries and complaints shall be directed to the Contractor. A representative
of the Contractor shall be available to receive the complaints during normal business
hours, as defined in Section 6.05.2. All service complaints will be handled by the
Contractor in a prompt and efficient manner. In the case of a dispute between the
Contractor and a Customer, the matter will be reviewed and a decision made by the
Contract Administrator.
A. Complaints related to missed Collections shall be addressed as provided in
Sections 7.03.3 and 7.03.4. For those complaints related to repair or replacement
of carts or bins, Section 7.06.1 shall apply.
B. Contractor agrees that it is in the best interest of the City that all Solid Waste,
Recyclable Materials and Green Waste be collected on the scheduled collection
day. Accordingly missed collections will normally be collected as set forth above
regardless of the reason that the collection was missed. In the event a Customer
requests missed Collection Service more than two (2) times in any consecutive
two (2) month period, the Contract Administrator will work with the Contractor to
determine an appropriate resolution to that situation. In the event the Contractor
believes any complaint to be without merit, Contractor shall notify the Contract
Administrator, either by e-mail, telephone, or written notice. The Contract
Administrator will investigate all disputed complaints and render a decision.
C. Contractor's service telephone number shall be accessible by a local (Carisbad)
telephone number. The telephone number(s) shall be listed in the area's
telephone directories under the Contractor's name in the White Pages.
Contractor shall also provide a toll-free number.
6.05.2 Contractor's Office
The Contractor shall maintain an office within the City of Carlsbad, or at another location
approved by the City, where complaints can be received. Such office shall be equipped
with sufficient telephones to meet the requirements of Section 6.05.7, shall have
responsible persons in charge during Collection hours, and shall be open during such
normal business hours, 8:00 a.m. to 5:00 p.m. Monday through Friday The Contractor
shall provide either a local or toll-free telephone number, and a telephone answering
sen/ice or mechanical device to receive Customer inquiries during those times when the
office is closed. Calls received after normal business hours shall be addressed the next
Work Day morning.
Page 24
6.05.3 Complaint Documentation
Service complaints received by City shall be directed to Contractor. Contractor shall
keep logs of complaints fonwarded to it for a minimum of three (3) years, which can be
maintained electronically.
Contractor shall log all complaints received, including the date and time the complaint
was received, the name, address and telephone number of the caller/complainant, a
description of the complaint, the name of the employee recording the complaint and the
action taken by Contractor to respond to and remedy the complaint. Log shall also
include each instance that Solid Waste and/or Recyclables are not collected and the
form of notification used to inform the participants of the reasons of non-collection and
the end result or means of resolution of the incident.
All written Customer complaints and inquiries shall be date-stamped when received. All
oral Customer complaints shall be recorded in a logbook. Receipt of all complaints, both
written and oral shall be acknowledged to Customer within one (1) Work Day of receipt.
Contractor shall use best efforts to resolve complaints within two (2) Work Days.
Contractor shall log action taken by Contractor to respond to and remedy the complaint.
All Customer service records and logs kept by Contractor shall be available to City upon
request. City shall, at any time during regular office hours, have access to Contractor's
customer service department for purposes that may include monitoring the quality of
customer service or researching Customer complaints.
6.05.4 Resolution of Customer Complaints
Should Contractor and Customers not be able to resolve a complaint, not be able to
establish a mutually acceptable rate to be charged for services not included in Exhibit 1,
or othenwise disagree, the matter shal! be determined by the Utilities Director, whose
decision shall be final.
Intervention by City is not a condition precedent to any rights or remedies third parties
might othenwise have in any dispute with Contractor. Nothing in this section is intended
to affect the remedies of third parties against Contractor.
6.05.5 Emergency Contact
The Contractor shall provide the Contract Administrator with an emergency phone
number where the Contractor can be reached outside of the required office hours. A live
person, not voice-mail, shall be available at that number at all times, twenty-four (24)
hours per day.
6.05.6 Multilingual/TDD Service
Contractor shall at al! times maintain the capability of responding to telephone calls in
English and such other languages as City may direct. Contractor shall at ail times
maintain the capability of responding to telephone calls through Telecommunications
Device for the Deaf (TDD) Services. Contractor shall be entitled to a rate adjustment to
recover increased costs in the event that City directs that telephone service be provided
in more than English and Spanish.
6.05.7 Customer Calls
During normal business hours, as identified in Secflon 6.05.2, Contractor shall maintain
a telephone answering system capable of accepting at least fifteen (15) incoming calls at
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one flme. Contractor shall record all calls including any inquiries, service requests and
complaints into a customer service log. All incoming calls will be answered within five (5)
rings. Any call "on-hold" in excess of 1.5 minutes shall have the option to remain "on-
hold" or to be switched to a message center where Customer can leave a message.
Contractor's customer service representative shall return Customer calls. For all
messages left before 3:00 p.m., al! "call backs" shall be attempted a minimum of one
flme prior to 6:00 p.m. on the day of the call. For messages left after 3:00 p.m., all "call
backs" shall be attempted a minimum of one time prior to noon the next Work Day.
Contractor shal! make a minimum of three (3) attempts within twenty-four (24) hours of
the receipt of the call. If Contractor is unable to reach the Customer on the next Work
Day Contractor shall leave a voice message, and if no voice recording is available shall
send a postcard to the Customer on the second Work Day after the call was received.
6.05.8 Contract Liaison
Contractor shall designate in writing a "Contract Liaison" who shall be responsible for
working with City and/or City's designated representative(s) to resolve Contract-related
issues. The Contractor must respond to all inquiries from the City within one (1) Work
Day from the time of the inquiry. City shall be notified in advance of any change in
Contract Liaison.
6.05.9 Service Liaison
Contractor shall designate in writing a field supervisor as "Service Liaison" who shall be
responsible for working with City and/or City's designated representative(s) to resolve
Customer Service-related complaints. City shall be notified in advance of any change in
Service Liaison.
6.05.10 Payments and Refunds
Should an audit disclose that payments payable by the Contractor were underpaid or
that Customers were overcharged for the period under review, Contractor shall pay to
City any underpayment of payments in accordance with Section 8.06 and/or refund to
Contractor's Customers or to City as directed by City any overcharges within thirty (30)
days following the date of the audit. Contractor shall pay interest to the City or Customer,
as directed by City for any overcharge at an annual rate of ten percent (10%).
Undercharges shall not be billed in arrears for more than ninety (90) days of service,
with any remaining undercharges absorbed by Contractor. Overpayments to City shall
be addressed as provided in Section 8.06.
6.06 PUBLIC OUTREACH AND EDUCATION SERVICES
Contractor, at their own expense, shall prepare, submit and implement an annual (Rate Year)
Public Education and Outreach Program. The proposed action plan must be submitted annually
for City approval prior to the commencement date for the first Rate Year and thereafter no later
than each September 30 for each subsequent Rate Year. The program may include up to four
campaigns per Contract Year at the City's discretion, designed to increase diversion and
recycling program participation. Campaigns may target certain Recyclable Materials or
"problem" areas of the Sen/ice Area where improvements can be maximized, such as Green
Waste, Holiday Tree and Bulky Waste pick-ups, or recycling best practices for specific groups
such as commercial businesses or multi-family residential complexes. Campaigns may include
billing inserts, newspaper and/or magazine articles, newspaper and/or magazine
advertisements, or other outreach methods. Targets of outreach should be based on local
trends and recycling patterns based on information obtained by both the Contract Administrator
and Contractor staff.
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6.06.1 Implementation and Ongoing Education Services
In order to promote public education, in addition to any other materials it develops.
Contractor shall create the following public education materials and programs at its
expense, which will be distributed as indicated below. All brochures, mailings, and other
educational materials are to be approved by Contract Administrator in advance of
distribution.
Initial Mailing/Cart Options - Contractor will prepare and mail an initial information
packet to all Customers explaining the transition from the existing Solid Waste Handling
Service program to the new program as defined by this Contract. The mailing will
provide information on the upcoming automation of Collection, the planned process for
cart distribution, and available cart sizes to assist residents in the selection of carts. The
mailing will also describe any program changes, route changes, dates of program
implementation. Recycling and diversion programs available, and other pertinent
informaflon.
As part of the transition to Cart collecflon service for SFD, on or before April 1, 2012
Contractor will provide a notice to each SFD of the transition to Cart service, offer SFD's
the choice of a 96-gallon, 64-gallon or 35-gallon for each type of service (Solid Waste,
Recycling and Green Waste). And indicate the rate for service for each cart size. The
notice will also disclose any requirements governing 35-gallon Cart Service, such as the
provisions related to chronic overfilling. In addition. Contractor shall contact targeted
groups of SFD's to determine their interest in 35-gallon Cart services, such as HOA's
and mobile home parks. If no response is received, or no preferred Cart sizes are
selected, the Customer will receive 96-gallon Carts for Solid Waste, Recycling and
Green Waste. Delivery of the Carts will commence beginning on or after May 1, 2012.
On or before July 1, 2012, Cart deliveries shail be completed.
The initial information packet shall be mailed no later than 45 days prior to the
commencement of automated cart distribution and include a postage paid postcard for
residents to select the desired cart sizes for Solid Waste Carts, Recycling Carts and
Green Waste Carts.
Contractor shall notify Cart Customers of the upcoming automation of Collection, and the
distribution of Carts.
Instructional "How-to" Packets - An information packet shall be provided to each
Customer at the start of service under this Contract and to each new Customer
throughout the Contract term. Contractor may attach these packets to the Carts upon
initial Cart distribution. This packet shall: describe available services, including available
Recycling and diversion programs; provide instructions for proper use of the Carts and
Bins provided (such as how to place Carts or other permitted items for collection, the
types of materials to be placed in each Cart); detail annual shred event; detail On-Call
Bulky Waste Collection Sen/ice; detail holiday collection schedules; and provide billing
and customer service telephone numbers. This packet will contain updated information
on how to use Containers, when, where and how to place Solid Waste for Collection,
and who to contact with sen/ice or billing questions, and for Bulky Item Collection.
The packet should also clearly indicate what materials, such as Exempt Waste,
Biohazardous Waste, and other Household Hazardous Wastes (HHW), should not be
Page 27
disposed of in these Containers. This brochure shall include instructions on how
Customers should dispose of HHW.
A. Container Labels and Hot Stamps - Recycling and Green Waste Containers shall
carry stickers/labels and hot stamps as described in Section 7.06.1.
B. Corrective Action Notice - Contractor shall develop a corrective action
notification form for use in instances where a Customer sets out inappropriate
materials for Collection that explains the appropriate manner for Disposal of such
items.
C. Website - Contractor shall develop and maintain a website with a page specific
to the City that includes holiday schedules, proper HHW disposal procedures,
events such as annual shred event and pharmaceutical collecflon, identification
of materials to be placed in Recycling Containers, Contractor's address, email
address and phone number, a link to the City's website, and other useful
information.
6.06.2 Contractor Representative
Contractor shall retain on its staff an individual who shall, as part of his or her job
function, rouflnely visit civic groups, school assemblies, homeowners' associations,
multi-family complexes and businesses, to promote and explain the Recycling and other
programs Contractor offers, and participate in demonstrations and civic events.
6.06.3 Community Events
At the direction of the Contract Administrator, Contractor shall participate in and promote
Recycling and other diversion techniques at community events and local activities. Such
participation would normally include providing, without cost, educational and publicity
information promoting the goals of City's Solid Waste program.
6.06.4 Commercial Waste Audits
Contractor will offer to perform waste audits to Commercial Customers, focusing on
those large businesses with the greatest opportunity to increase diversion. Contractor
shall accommodate all requests for audits in a flmely manner in order to attempt to audit
10 to 20 percent of large businesses annually. Contractor will also offer mini-audits
conducted by route managers to medium and small sized businesses.
6.06.5 Green Business Program
Contractor shall work to increase Commercial participation in the Recyclable Materials
Collection program through the Green Business Program. Contractor will identify
businesses that are leading the way through exemplary recycling best practices and/or
results and recognize a Green Business of the quarter. Contractor shall issue media
press releases, newspaper ads, promotions on the Contractor's website, recognition in
the Contractors Perspectives E-newsletter and/or recognition of the Green Business at
Council Meetings. Contractor will also provide a plaque for the Green Business of each
quarter.
6.07 WASTE GENERATION/CHARACTERIZATION STUDIES
Contractor acknowledges that City must perform solid waste generation and disposal
characterization studies periodically to comply with the requirements of the Act. Contractor
agrees to participate and cooperate with City and its agents and to accomplish studies and data
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collection and prepare reports, as needed and directed by City to determine weights and
volumes of Solid Waste collected and characterize Solid Waste generated, disposed,
transformed, diverted or otherwise handled/processed, by Customer type (SFD, MFD,
Commercial), to satisfy the requirements of the Act. Contractor will at its sole expense conduct
such a waste generation and characterization study upon request of City, but not more than
once every two years.
6.08 EMERGENCY SERVICES
In the event of a tornado, major storm, earthquake, tsunami, flre, natural disaster, or other such
event, the Contract Administrator may grant the Contractor a variance from regular routes and
schedules. As soon as practicable after such event, the Contractor shall advise the Contract
Administrator when it is anticipated that normal routes and schedules can be resumed. The
Contract Administrator shall make an effort through the local news media to inform the public
when regular services may be resumed. The clean-up from some events may require that the
Contractor hire additional equipment, employ addiflonal personnel, or work exisflng personnel
on overtime hours to clean debris resulting from the event. The Contractor shall receive
additional compensation, above the normal compensation contained in this Contract, to cover
the costs of rental equipment, additional personnel, overtime hours and other documented
expenses based on the rates set forth in Exhibit 1,as adjusted to this Contract provided the
Contractor has first secured written authorization and approval from the City through the
Contract Administrator.
ARTICLE 7. REQUIREMENTS FOR OPERATIONS, EQUIPMENT, AND PERSONNEL
7.01 COLLECTION HOURS AND SCHEDULES
7.01.1 Day and Time of Collection
To presen/e peace and quiet, no solid waste may be collected between 8:00 P.M. and
5:00 A.M. in Commercial Zones, or othenwise between 8:00 P.M and 6:00 A.M.
Contractor must adjust the early morning start point of collection routes to address and
minimize service complaints when warranted and as practicable. However, the Contract
Administrator may waive this requirement when necessitated by conditions beyond the
control of the Contractor. The Contract Administrator may require the Contractor to
change hours of operations in Residential or Commercia! areas if disruption occurs.
7.01.2 Holiday Service
The City observes New Year's Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day as legal holidays. Contractor shall not be required
to provide Collection Sen/ices or maintain office hours on the City observed holidays. In
any week in which one of these holidays falls on a Work Day Residential Collecflon
Services for the holiday and each Work Day thereafter will be delayed one Work Day for
the remainder of the week with normally scheduled Friday Residential Collection
Services being performed on Saturday. Any changes to the Holiday Service collection
schedule may only be approved by the City
7.02 COLLECTION ROUTES
On or before fifteen (15) work days following the Effective Date, the Contractor shall provide for
City approval maps precisely defining Collection routes, together with the days and the times at
which Collection shall regularly commence. If the City has not approved or requested changes
within fifteen (15) Work Days upon receipt of the service route maps, they shall be deemed as
approved.
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7.02.1 Collection Routes Changes
The Contractor shall submit to the City in writing, any proposed route change (including
maps thereof) not less than sixty (60) days prior to the proposed date of implementation.
The Contractor shall not implement any route changes without the prior review and
approval of the Contract Administrator. The Contractor shall notify those Customers in
writing of route changes not less than thirty (30) days before the proposed date of
implementation. The Contractor shall be responsible for all costs associated with the
changing of the street sweeping routes related to changes in the solid waste Collection
routes.
7.02.2 Collection Route Audits
The City reserves the right to conduct audits of Contractor's collection routes. The
Contractor shall cooperate with the City in connection therewith, including permitting City
employees or agents, designated by the Contract Administrator, to ride in the Collection
vehicles in order to conduct the audits. The Contractor shall have no responsibility or
liability for the salary, wages, benefits or worker compensation claims of any person
designated by the Contract Administrator to conduct such audits.
The scope of the audit, and auditing party will be determined by City and the scope may
include, but is not limited to, Customer Service levels and Billing, Contractor Payments
to City Gross Receipts, tonnage, and verification of diversion rate.
If inaccuracies are found, City may expand the scope of the audit and recover additional
audit costs from the Contractor.
7.03 COLLECTION STANDARDS
7.03.1 Implementation of Service
The Contractor's implementation of the services required under this Contract,
commencing on July 1, 2012 shall occur in a smooth and seamless manner so that
Customers do not experience disruption in Collection Services when sen/ices are
initiated.
7.03.2 Servicing Containers
Contractor shall Collect the contents and return each Container to the locaflon where the
Occupant properiy placed the Container for collection. Contractor shall use due care
when handling Containers. Contractor shall not throw, roughly handle, damage, or break
Containers.
7.03.3 Missed Pick-Ups - SFD
When notified of a SFD missed pick-up prior to 12:00 noon on a Work Day Contractor
shall collect the Solid Waste, Recyclable Materials, or Green Waste on the Work Day the
notice is received. If notified after 12:00 noon on a Work Day Contractor must collect the
Solid Waste, Recyclable Materials, or Green Waste no later than the following Work Day
7.03.4 Missed Pick-Ups - MFD & Commercial
When notified of a MFD or Commercial missed pick-up prior tol 2:00 noon on a Work
Day the Contractor must collect the Solid Waste, Recyclable Materials, or Green Waste
on the Work Day the notice is received, except in cases where access to containers is
blocked on the Customer's property If notified after 12:00 noon on a Work Day
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Contractor must collect the Solid Waste, Recyclable Materials, or Green Waste no later
than the following Work Day except in cases where access to containers is blocked on
the Customer's property.
7.03.5 New Customer and Change in Service Levels
Contractor shall deliver Containers and initiate Collection services for a new Customer
within five (5) Work Days of the Customer's request for service. If an existing Customer
requests a change in the number or size of the Solid Waste, Recyclable Materials, or
Green Waste Containers and/or frequency of Collection, the Contractor shall deliver
additional Containers and/or remove Containers and shall initiate changes in the
Collection Services within five (5) Work Days of the Customer's request for a change in
service.
7.03.6 No Commingling of Solid Waste
Contractor shall separately collect and segregate Solid Waste, Recyclable Materials, and
Green Waste from each other and shall not commingle these materials at any time
without the express prior written authorization of the Contract Administrator.
7.03.7 Conditions of Service
Contractor shall collect all Solid Waste, Recycling, or Green Waste Bins or Carts that are
readily accessible to the Contractor's crew and vehicles and not blocked, where the
Carts have been placed curbside or other such location agreed to by the Contractor and
Customer that will provide safe and efficient accessibility to the Contractor's Collection
crew and vehicle.
Contractor shall not be required to service the following;
• Containers with Recyclable Materials that have not been segregated from Solid
Waste and Green Waste. As an alternative, at the direction of the Customer,
Contractor may collect this material, and may charge a Contamination Fee to MFD
Customers or Commercial Customers.
• Containers with Green Waste that has not been segregated from Solid Waste and
Recyclable Materials. As an alternative, at the direction of the Customer, Contractor
may collect this material, and may charge a Contamination Fee to MFD Customers
or Commercial Customers.
• Carts that exceed the maximum load limit specified by the Cart manufacturer.
• Any Commercial Solid Waste that is not placed in a Bin unless such Commercial
Solid Waste is outside the Solid Waste Bin as a result of overflow.
7.03.8 Set-Out Instructions to Customers
Contractor shal! instruct Customers as to any preparation of Solid Waste, Recyclable
Materials, or Green Waste and the proper placement of Containers. If Customers are not
adhering to Contractor's instructions, Contractor shall notify such Customers in writing.
7.03.9 Non-Collection
In cases of failure to comply with the instructions. Contractor may deny Collection
Service provided that Contractor leaves a Non-Collection Notice on the Container, as
determined by the City, indicating the reason for refusing to Collect the material. Such
Notice shall also identify the steps Waste Generator must take to recommence
Collection Service.
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7.03.10 Non-Collection Notices
In the event of non-collection. Contractor shall affix to the Container a Non-Collection
Notice explaining why Collection was not made. The Non-Collection Notice shall be
affixed prominently and securely onto the Container to ensure that it is not inadvertently
removed due to weather conditions.
Contractor shall document Non-Collection Notices recording the date and time of
issuance, address of Customer, reason for issuance, name of employee who issued the
notice, and truck and route numbers. The Non-Collection Notice shall be at least two
inches by six inches (2" x 6") in size. The Non-Collection Notice must identify the steps
the Waste Generator must take to recommence Collection Service.
Notwithstanding the above, with respect to SFD Customers using a 35-gallon Cart for
Solid Waste, Contractor is entitled to deliver an appropriate change in Cart size and
adjust the rate accordingly where Non-Collection Notices have been issued for the
reasons set forth in Section 7.03.7 (to the extent applicable) on three (3) or more
occasions within any consecutive twelve (12) month period.
7.03.11 Bin Overfilling
Where Contractor identifies instances of Bin overfilling at an MFD Customer, or
Commercial Customer, Contractor shall document the overfilling through use of film or
digital photography Contractor will present evidence of the overfilling to both the
Contract Administrator and the Customer, along with recommendations for changes in
service levels to prevent overfilling, and may charge the Overage Fee and make the final
determination of changes to service level. In the event Contractor cannot successfully
contact Customer after three attempts, or cannot reach an agreement with Customer
regarding a change in service. Contractor shall notify Contract Administrator, by e-mail,
of the details of the Solid Waste overfilling, and the attempts at communication with the
Customer. In the event that Contractor cannot successfully contact Customer or cannot
reach an agreement with Customer regarding a change in sen/ice. Contractor may
deliver the next larger-sized Bin, or increase the Collection frequency and to adjust the
rate in effect for the determined service level if there have been three (3) or more
instances of Bin overfilling within any twelve (12) month period with the Contract
Administrator's approval.
7.03.12 Care of Private Property
Contractor's employees shall follow the regular walkway for pedestrians while on private
property and shall neither trespass nor cross property to the adjoining premises unless
the occupant or owner of both properties has given permission. Care should be taken to
prevent damage to property including flowers, shrubs, and other plantings. Contractor
shall repair, to its previous condition, all damage to private or public property caused by
its employees.
7.03.13 Spillage and Litter
The Contractor shall not litter premises and shall exercise all reasonable care and
diligence in providing Collection Sen/ices so as to prevent spilling or dropping of Solid
Waste. The Contractor shall not be responsible for cleaning up sanitary conditions
caused by the carelessness of the Customer; however, the Contractor shall clean up any
material or residue that are spilled or scattered by the Contractor or its employees.
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Contractor shall immediately at the time of occurrence, clean up any spilled or dropped
Solid Waste. Equipment oil, hydraulic fluids, spilled paint, or any other liquid or debris
resulting from the Contractor's operations or equipment repair shall be covered
immediately with an absorptive material and removed from the street surface. When
necessary, Contractor shall apply a suitable cleaning agent to the street surface to
provide adequate cleaning, and shall notify the Contract Administrator, and applicable
Hazardous Materials Management Agencies within two (2) hours of such a spill or leak.
Contractor shall meet or exceed for National Pollutant Discharge Elimination System
(NPDES) permit requirements.
The above paragraphs notwithstanding, Contractor shall clean up any spillage or litter
caused by Contractor within two (2) hours upon notice from the City
7.03.14 Vehicles Equipped with Absorbent, Broom and Shovel
To facilitate such clean-up, Contractor's vehicles shall at all ttmes carry sufficient
quantities of petroleum absorbent materials along with a broom and shovel.
7.04 CONTRACTOR FACILITIES
Contractor shall provide all facilities needed for vehicle parking and maintenance, container
storage and maintenance, employee parking, administration, billing, customer service, and other
activities required to fulfill its obligations hereunder. Contractor shail own or lease the facilities;
secure all permits needed to conduct its operations; design, finance, and complete any site
improvements; maintain the facilities; and make any other arrangements necessary to fulfill its
obligaflons required by this Contract.
7.05 VEHICLES
Contractor is responsible for providing all vehicles that may be required for the Collection of
Solid Waste that are sufficient in number and capacity to efficiently perform the work required by
this Contract in strict accordance with its terms. Contractor is expressly obligated to provide
such Collection vehicles and routes as are required to meet the service standards set forth
herein. Contractor shall have available on Work Days sufficient back-up vehicles for each type
of Collection vehicle used to respond to complaints and emergencies.
7.05.1 Specifications
A. The Collection vehicles shall be designed and operated so as to prevent
collected materials from escaping from the vehicles. Hoppers shall be closed on
top and on all sides with screening material to prevent collected materials from
leaking, blowing or falling from the vehicles. All Collection vehicles and
Containers shall be watertight and shall be operated so that liquids do not spill
during collection or in transit.
B. At ali times during the term of this Contract, Contractor's Collection Vehicles shall
comply with San Diego Air Pollution Control District and the California Air
Resource Board's emission standards as they may be approved for Solid Waste
Collection vehicles, as well as other Federal, State and local laws and
regulations that may be enacted during the term of this Contract. Contractor shall
provide Collection Services using alternative clean-air (NG - natural gas)
Collection vehicles. Conversion of the Contractor's fleet to NG Collection vehicles
shall occur over the first three (3) years of the Contract with 1/3 of Contractor's
fleet of vehicles replaced with NG Collection vehicles each year starting with the
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first year of this Contract. All Collection vehicles under this Contract, except those
vehicles used solely on Contractor's premises, are to be registered with the
California Department of Motor Vehicles.
C. All Collection vehicles must comply with U.S. EPA noise emission regulations,
currently codified at 40 CFR Part 205, and other applicable state noise control
regulations.
D. The Contractor's name and the Customer Service telephone number shall be
properly displayed on all Collection vehicles.
7.05.2 Vehicle Identification
Collection vehicles shall be marked with Contractor's name, toll-free number, and the
number of the vehicle painted in letters of contrasting color, at least three (3) inches
high, on each side and the rear of each vehicle.
7.05.3 Vehicle Cleaning
All Collection vehicles shall be washed at least once each week. Collection vehicles
shall be thoroughly washed and thoroughly steam cleaned on a regular basis so as to
present a clean appearance. The Contract Administrator may inspect collection vehicles
at any time to determine compliance with this Contract. Contractor agrees to replace or
repair to the Contract Administrator's satisfaction, any collection vehicle which Contract
Administrator determines to be of unsightly appearance, leaking, or in unsatisfactory
operating condition.
7.05.4 Vehicle Maintenance
Contractor shail inspect each Collection vehicle daily to ensure that all equipment is
operating properly Collection vehicles, which are not operating properly shall be
removed from service until repaired and operating properly. Contractor shall perform all
scheduled maintenance funcflons upon Collection vehicles in accordance with the
manufacturer's specifications and schedule.
Contractor shall repair, or arrange for the repair of, all of its vehicles and equipment for
which repairs are needed because of accident, breakdown or any other cause so as to
maintain all equipment in a safe and operable condition. Contractor shall maintain
accurate records of repair, which shal! include the date, nature of repair and the
verification by signature of a maintenance supen/isor that the repair has been properly
performed.
Contractor shall keep accurate records of all Collection vehicle maintenance and shall
make such records available to City upon request. The log shall at all times be
accessible to City by physical inspection upon request of Contract Administrator, and
shall show, at a minimum, each Collection vehicle's Contractor-assigned identification
number, date purchased or initiai lease, dates of performance of routine maintenance,
dates of performance of any additional maintenance, and description of additional
maintenance performed.
7.05.5 Painting
Contractor shall repaint all Collection vehicles (including vehicle's striping) during the
term of this Contract on a frequency as necessary to maintain a positive public image as
reasonably determined bythe Contract Administrator.
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Contractor shall repaint any or all Collection vehicles within thirty (30) days' notice from
City, if City determines that their appearance warrants painting.
Collection vehicles shall be painted in a standard color.
7.05.6 Vehicle Operation
Collection vehicles shall be operated in compliance with Federal, State and local laws
and regulations including, but not limited to, the California Vehicle Code, the regulations
of the California Air Resources Board (CARB) Waste Collection Vehicle Regulations as
established in the California Code of Regulations Titie 13 Section 2700 et seq.. and all
applicable safety and local ordinances. Contractor shall not load Collection vehicles in
excess of the manufacturer's recommendations or limitations imposed by Federal, State,
or local weight restrictions on vehicles or roads.
7.05.7 Vehicle Certification
For each Collection vehicle used in the performance of services under this Contract,
Contractor shall obtain a certificate of compliance (smog check) issued pursuant to Part
5 of Division 26 of the California Health and Safety Code (Section 43000 et seg.) and
regulations promulgated thereunder and/or a safety compliance report issued pursuant
to Division 14.8 of the California Vehicle Code (Section 34500 et seg.) and the
regulations promulgated thereunder, as applicable to the vehicle. Contractor shall
maintain copies of such certificates and reports and shal! make such certificates and
reports available for inspection upon request by the Contract Administrator.
7.05.8 Vehicle Inspections
Upon City request. Contractor shall submit the Safety Compliance Report/Terminal
Record Update from its Biennial Inspection of Terminal, or BIT. If Contractor receives a
terminal rating below satisfactory. Contractor shall notify the City and Contractor is in
violation of the Contract. Contractor has the time allowed by the Department of
California Highway Patrol ("CHP") to cure violations and bring the terminal rating up to
satisfactory. If the CHP does not adjust the rating to satisfactory or better within six (6)
months, then the Contractor shall be considered in default of the contract and the City
may terminate this Contract.
The City may cause any Collection vehicle used in the performance of this Contract to
be inspected and tested at any flme and in such manner as may be appropriate to
determine that the vehicle is being maintained in compliance with all applicable
provisions of the State Vehicle Code. The City may direct the removal of any vehicle
from service if that vehicle is found to be in nonconformance with applicable codes. No
vehicle directed to be removed from service by the City may be returned to service until
its return to service has been approved by the City
7.05.9 Correction of Defects
Following any inspection, the Contract Administrator has the right to cause the Collector,
at its sole expense, to recondition or replace any vehicle or equipment found to be
unsafe, unsanitary, or unsightly. The Contract Administrator's determination may be
appealed to the City Manager, which decision will be final.
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7.06 CONTAINERS
7.06.1 Carts
The Contractor shall be responsible for the purchase and distribution of fully assembled
and functional Carts to Customers in the Service Area. All Carts provided by Contractor
utilized in the performance of this Contract shall be manufactured by injection or
rotational molding and meet the Cart design and performance requirements as specified
below.
All Carts selected shall be subject to City's approval. Carts must meet color, size,
uniformity and quality requirements of the City The City will not permit Carts with
inconsistent colors or in poor condition to be used in the City at any time during the term
of this Contract, and may require Contractor to replace such Carts.
A. Cart Capacity
The references to Cart sizes in this Contract of 96, 64 and 35 gallons may be
approximate. The Cart size may fall within the following range:
• 30-38 gallons
• 60-70 gallons
• 90-101 gallons
The selected sizes must be consistent throughout the City for a uniform
appearance.
B. Cart Load Capacity
Depending on the capacity the Carts must have a minimum load capacity as
noted below without container distortion, damage, or reduction in maneuverability
or any other required functions:
Carts Size
(Gallons)
Minimum Load Capacity
(LBS)
90-101 200
60-70 130
30-38 70
C. Cart Durability
Each Cart must remain durable, and must, at minimum, meet the following
durability requirements to satisfy its intended use and performance for the term of
this Contract:
• Maintain its original shape and appearance;
• Be resistant to kicks and blows;
• Require no routine maintenance and essentially be maintenance free;
• Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner
that will interfere with its intended use;
• Resist degradation from ultraviolet radiation;
• Be incapable of penetration by biting or clawing of household pets (i.e., dogs
and cats);
• The bottoms of Cart bodies must remain impervious to any damage that
would interfere with the Cart's intended use after repeated contact with
gravel, concrete, asphalt or any other rough and abrasive surface;
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• All wheel and axle assemblies must provide continuous maneuverability and
mobility as originally designed and intended; and
• Resist degradation by airborne gases or particulate matter currently present
in the ambient air of the City.
D. Chemical Resistant
Carts must be resistant to damage from common household or residential
products and chemicals. Carts must also be resistant to damage from human
and animal urine and feces.
E. Stability and Maneuverability
The Carts must be stable and self-balancing in the upright position, when either
empty or loaded to their maximum design capacity with an evenly distributed
load, and with the lid in either a closed or open position. The Carts must be
capable of maintaining their upright position in sustained or gusflng winds of up
to 25 miles per hour from any direction. The Carts must be capable of being
easily moved and maneuvered, with an evenly distributed load equal in weight to
their maximum design capacity on a level, sloped or stepped surface.
F. Cart Handles
The Cart handles and handle mounts may be an integrally molded part of the cart
body or molded as part of the lid. The Cart handles will provide comfortable
gripping area for pulling or pushing the cart or lifting the lid. Pinch points are
unacceptable.
G. Cart Lid
Each Cart must be provided with a lid that continuously overlaps and comes in
contact with the Cart body or otherwise causes an interface with the Cart body
that simultaneously:
• Prevents the intrusion of rainwater, rodents, birds, and flies;
• Prevents the emission of odors;
• Enables the free and complete flow of material from the container during the
dump cycle without interference with the material already deposited in the
truck body or the truck body itself and its lifting mechanism;
• Permits users of the Cart to conveniently and easily open and shut the lid
throughout the serviceable life of the container;
• The lid handle must be an integrally molded part of the lid;
• The lid (and body) must be of such design and weight so as to prevent an
empty Cart from tilting backward when flipping the lid open; and
• The lid must be hinged to the Cart body in such a manner so as to enable the
lid to be fully opened, free of tension, to a position where it may rest against
the backside of the container body.
H. Cart Color and Appearance
The Solid Waste, Recycling and Green Waste Carts will be differentiated by the
color of the Cart lid. The colors shall be colorfast and resistant to fading as a
result of weathering or ultraviolet degradation. The base of all carts will be green,
and the lid of the Solid Waste Carts will be gray, the lid of the Recycling Carts will
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be blue, and lid of the Green Waste Carts will be green. Cart colors shall be
consistent throughout City.
I. Cart Labeling and Hot Stamping
Labels that identify acceptable and unacceptable materials shall be placed on the
inside of the Cart lid, and hot stamps shall be on the top of the lid and/or on the
body of the Cart. Labels shall be replaced when worn. Cart labels and hot
stamps will include the maximum weight the cart can hold and specific
instructions on what materials should and should not be placed in each Cart.
J. Replacement of Carts
Contractor's employees shall take care to prevent damage to carts by
unnecessary rough treatment. Any Cart damaged by the Contractor shall be
replaced by the Contractor, at the Contractor's expense, within five (5) Work
Days at no cost or inconvenience to the Customer.
Upon notification to the Contractor by the City or a Customer that the Customer's
Solid Waste, Recycling, or Green Waste Cart(s) has been stolen or damaged
beyond repair, the Contractor shall deliver a replacement Cart(s) to such
Customer within five (5) Work Days at no additional cost unless Contractor can
demonstrate to the Contract Administrator beyond a reasonable doubt that the
damage or loss was due exclusively to the Customer's intenflonal or negligent
behavior. The Contract Administrator shall make the final determination. All
repairs must restore the Cart to its full functionality Unsightly/worn-out Carts shall
be replaced by Contractor upon Customer request. The Contractor shall maintain
records documenting all Cart replacements occurring on a monthly basis.
Contractor shall be responsible for graffiti removal within two (2) Work Days at no
additional charge to the Customer or to City
In addition to the initial Cart substitution program provided above at the time of
initial delivery of Carts, each Customer shall be entitled to the replacement of one
(1) Solid Waste Cart, one (1) Recycling Cart, and one (1) Green Waste Cart for
any reason other than theft or damage on one (1) occasion during the life of this
Contract at no cost to the Customer, unless caused by the fault of the Customer.
Except in the case of a Cart that must be replaced because of damage caused
by Contractor or in the case where Contractor elects to replace a Cart rather than
repair it on-site, Contractor shall be compensated by Customer for the cost of
those replacements in excess of one (1) per type of Cart per Customer during the
life of the Contract, in accordance with the Cart Delivery Service Rate set forth in
Exhibit 1, as adjusted.
Contractor understands and agrees that this provision is intended to be applied
on a per-Cart-type basis and accordingly each Customer could receive up to
three (3) replacement Carts, one (1) of each type, during the term of the
Contract.
K. Repair of Carts
Contractor shall be responsible for repair of Carts including but not limited to,
hinged lids, wheels and axles, unless caused by the fault of the Customer. Within
five (5) Work Days of notification by the City or a Customer of the need for such
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repairs, the Contractor shall repair the Cart or, if necessary remove the cart for
repairs and deliver a replacement cart to the Customer.
L. Cart Delivery, Removal or Exchange
Upon notification to the Contractor by the City or a Customer requesting delivery,
removal or exchange of Cart(s), the Contractor shall complete such request
within five (5) Work Days.
M. Ownership of Solid Waste, Recycling and Green Waste Carts
Ownership of Solid Waste, Recycling, and Green Waste Carts shall rest with the
Contractor, except that at the end of this Contract the City shall have the right to
purchase such Carts which are 10 years or older for $5.00 each. At its sole
discretion, City may elect not to exercise its rights with regards to this Section
and in such case the carts shall remain the property of the Contractor upon
termination of this Contract. In this event the Contractor shall be responsible for
removing all Carts in service and reusing or Recycling such carts at the end of
the Contract at no additional charge.
N. Collection of Customers' Discarded Collection Containers
The Contractor shall collect used, discarded, or unwanted Solid Waste collection
containers used by SFD after the Effective Date, at no cost. To the extent
feasible, Contractor shall recycle, or cause to have recycled the used, discarded,
or unwanted collection containers.
7.06.2 Bins, Roll-off Boxes and Compactors
A. Purchase and Distribution of Containers
The Contractor shall be responsible for the purchase and distribution of
Containers such as Bins, Roll-Off Boxes and Compactors to all MFD and
Commercial Customers in the Service Area (except Commercial Customers
receiving Cart Service).
Contractor shall also distribute Containers to new MFD and Commercial
Customers that are added to the Service Area during the term of this Contract.
Containers to be distributed shall be completed within five (5) Work Days of
receipt of the request by the MFD or Commercial Customer.
B. Replacement of Containers
Care shall be taken by Contractor's employees to prevent damage to Containers
by unnecessary rough treatment. Any Container damaged by the Contractor shall
be replaced by the Contractor, at the Contractor's expense, within five (5) Work
Days at no cost or inconvenience to the Customer.
C. Repair of Containers
Contractor shall be responsible for repair of Containers at no additional charge,
unless caused by the fault of the Customer. Within five (5) Work Days of
notification by the City or a Customer of the need for such repairs, the Contractor
shall repair the Container or if necessary, remove the Container for repairs and
deliver a replacement Container to the Customer. Container repair shall also
include the removal of graffiti from the Container within two (2) Work Days
following receipt of notice from the Customer or the Contract Administrator.
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D. Container Exchange
Upon notification to the Contractor by the City or a Customer that a change in the
size or number of the Containers is required, the Contractor shall deliver such
different-sized or number of Containers to such Customer within five (5) Work
Days.
E. Ownership of Containers
Ownership of Bins, Roll-Offs of Compactors distributed by the Contractor shall
rest with the Contractor. The City may direct Contractor to remove and dispose of
the Containers at the end of the Contract at no additional charge.
F. Annual Cleaning
Once each Contract Year, as needed to maintain a neat appearance and prevent
nuisance conditions, at no charge to the Commercial Customer, Contractor shail
clean all Containers at a Commerciai Premises or shall replace the dirty
Containers with clean Containers and remove the dirty Containers for cleaning.
G. Bin Enclosure Cleanout
Contractor is responsible for cleaning out Customers' overflowing Bins and
enclosures within twenty-four (24) hours of notification by City. Contractor may
follow the procedures in Section 7.03.11 to address overfilling of Containers.
H. Container Signage, Painflng, and Cleaning
All metal Containers of any sen/ice type furnished by the Contractor shall be
either painted or galvanized. Recycling Bins shall include a blue-colored label
identifying the types of material to be placed in the Bin. All Containers shall
display the Contractor's name and Contractor's customer service telephone
number, and shall be kept in a clean and sanitary condition. Such Containers as
are provided by the Contractor shall be steam cleaned by the Contractor as
frequently as necessary so as to maintain them in a sanitary condition.
Containers will be subject to periodic, unscheduled inspections by the City and
determinaflon as to sanitary condition shall be made by the City
7.07 PERSONNEL REQUIREMENTS
The Conlractor shall employ and assign qualified personnel to perform all services set forth
herein. The Contractor shall be responsible for ensuring that its employees comply with all
applicable laws and regulations and meet all federal, state and local requirements related to
their employment and position.
A. The City may request the transfer of any employee of the Contractor who materially
violates any provision hereof, or who is wanton, negligent, or discourteous in the
performance of his duties.
B. Contractor's field operations personnel shall be required to wear a clean uniform shirt
bearing the Contractor's name. Contractor's employees, who normally come into direct
contact with the public, including drivers, shall bear some means of individual
photographic identification such as a name tag or identification card.
C. Each driver of a Collection vehicle shall at all times carry a valid California driver license
and all other required licenses for the type of vehicle that is being operated.
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D. Each driver of a Collection vehicle shall be proficient in written and spoken English.
E. Each driver of a Collection vehicle shall at all times comply with all applicable state and
federal laws, regulations and requirements.
F. Contractor's employees, officers, and agents shall at no time be allowed to identify
themselves or in any way represent themselves as being employees of the City.
7.08 PERFORMANCE REVIEW MEETING
Contractor acknowledges and agrees that one of City's primary goals in entering into this
Contract is to ensure that the Collection Services are of the highest caliber, that Customer
satisfaction remains at the highest level, that maximum diversion levels are achieved, and that
materials collected are put to the highest and best use to the extent possible.
City may hold a meeting annually to review Contractor's Solid Waste Collection efforts, source
reduction, processing and other diversion services and overall performance under this Contract.
The purpose of the Performance Review Meeting is to provide for a discussion and review of
technological, economic, and regulatory changes in Collection, source reducflon, Recycling,
processing and Disposal to achieve a continuing, advanced Solid Waste Collection, source
reduction and Recycling and Disposal system; and to ensure services are being provided by
Contractor with adequate quality, effectiveness and economy, and in full compliance with the
terms of this Contract. Topics for discussion and review at the Solid Waste Services and
Performance Review Meeflng shail include, but shall not be limited to, services provided,
feasibility of providing new services, application of new technologies. Customer complaints,
amendments to this Contract, developments in the law, new initiatives for meeting or exceeding
the Act's mandates, regulatory constraints, results of route audits, and Contractor performance.
City and Contractor may each select additional topics for discussion at any Performance Review
Meeflng.
City shall notify Contractor of its intent to hold a Performance Review Meeting at least sixty (60)
days in advance thereof. Thirty (30) days after receiving notice from City of a Performance
Review Meeting, Contractor shall submit a report to City which may contain such information as
it wishes to have considered, and shall contain the following:
A. Current diversion rates and a report on Contractor's outreach activities for the past year.
B. Recommended changes and/or new services to improve City's ability to meet the goals
of the Act and to contain costs and minimize impacts on rates. A specific plan for the Act
compliance shall be included.
C. Any specific plans for provision for new or changed services by Contractor.
D. Customer complaint records. The reports required by this Contract regarding Customer
complaints shall be used as one basis for review of Contractor's performance, and
Contractor may submit other relevant performance information and reports for
consideration at the Solid Waste Services and Performance Review Meeting. In addition
to the above, City may request Contractor to submit any other specific information
relating to its performance for consideration at the Solid Waste Services and
Performance Review Meeting, and any Customer may submit comments or complaints
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before or during the Meeflng, either orally or in writing. Contractor shall be present at
and participate in the Solid Waste Sen/ices and Performance Review Meeting.
As a result of its findings following any Solid Waste Sen/ices and Performance Review Meeflng,
City may require Conlractor to provide expanded or new services within a reasonable time and
City may direct or take corrective actions for any performance inadequacies (although nothing
contained in this provision should be construed as requiring City to hold a Solid Waste Services
and Performance Review Meeting in order to enforce any rights or remedies it has pursuant to
the terms hereof.) Should City require expanded or new sen/ices as a remedy for Contractor's
failure to perform its obligations hereunder, no additional compensation shall be due for such
sen/ices. Othenwise, any new or expanded sen/ices required of Contractor shall be subject to
the provisions of Section 14.07.2.
ARTICLE 8. PAYMENTS TO THE CITY
In addition to any other consideration set forth herein, as part of its consideration for entering
into this Contract, and for the exclusive right and privilege to provide Solid Waste Services as
specified herein. Contractor shall provide the following:
8.01 PAYMENT SCHEDULE
Remittance of the payments set forth in this Article 8 shall be due on the dates specified in
Sections 8.02, 8.03, and 8.05. If the payment is not submitted on or before the specified date,
the Contractor must pay to the City a service charge, in an amount equal to ten percent (10%)
of the amount owing for the payment period. The Contractor must pay an additional ten percent
(10%) service charge on any unpaid balance for each additional thirty-day period during which
the Franchise Fee remains unpaid. Late payment sen/ice charges will not be included in any
revenue requirement. The Contractor agrees that the service charges required by this Section
reasonably reflect the cost to the City to process all delinquency calculations and notices, and to
monitor the Contractor's services.
8.02 FRANCHISE FEE
In consideraflon of the exclusive right, duty and privilege to collect, remove, and dispose all
Solid Waste, recycle all Recyclable Materials collected and divert all Green Waste collected
Contractor shall pay City 7.5% of Gross Receipts less the amount collected for the Storm Water
Fee for the term of this Contract. Franchise Fees shall be computed on the basis of cash
received each quarter for services rendered in accordance with this Contract. Contractor shall
prepare and mail remittance each quarter not later than 20 calendar days after the end of each
quarter. Franchise fee payments remitted later than the twentieth day after the end of the
quarter shall be subject to a late penalty fee of 1% of the entire amount due, per week, or
prorated portion thereof. The remittance shall be accompanied by a report setting forth the
basis, and calculations used for computing the amount due. The Gross Receipts number used
to calculate the fee paid shall be the same number as contained in the general books of the
Contractor.
As part of the preparation of its annual report, the Contractor shall reconcile Gross Receipts and
franchise fees paid with respect to Customers billed by Contractor, and report to the City any
under payment or overpayment of franchise fees for the prior year. Any overpayment or
underpayment shall be accounted for as part of the next required franchise fee payment to the
City
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8.03 AB 939 FEE
Contractor shall pay to City an AB 939 fee as established by resolution of the City Council, at
the same time and in the same manner as the Franchise Fee. As of the effective date, the AB
939 fee is 2.0% of Gross Receipts less the amount collected for Storm Water Fee. The
Contractor shall be entifled to a rate adjustment in accordance with Section 9.04 should the AB
939 fee be increased.
8.04 STORM WATER FEE
Contractor shall pay to city a Storm Water Fee as established by resolution of the city council, at
the same flme and in the same manner as the Franchise Fee. The contractor shall be entitled to
a rate adjustment in accordance with Section 9.04 should the storm water fee be increased.
8.05 OTHER PAYMENTS
The City reserves the righl to establish other payments or increase the amount of existing
payments, as it deems reasonably necessary. The amount, time, and method of payment and
the applicable adjustment process will be established by the City as a Change in Law, and the
Contractor shall be entifled to a rate adjustment in accordance with Section 14.07.1.
8.06 ACCEPTANCE OF PAYMENT BY CITY
No acceptance by City of any payment shall be construed as an accord that the amount is the
correct amount, nor shall such acceptance of payment be construed as a release of any claim
City may have against Contractor for any additional sums payable under the provisions of this
Contract. All amounts paid shall be subject to independent audit and recompilation by City Any
overpayment or underpayment shall be accounted for as part of the next required franchise fee
payment lo the City If, after the audit, such recompilation indicated an underpayment.
Contractor shall reimburse City for all reasonable costs and expenses incurred in connection
with the audit and recompilation, within ten (10) days of receipt of written notice from City that
such is the case. Contractor shall also pay interest to the City for any underpayment at an
annual rate of ten percent (10%).
ARTICLE 9. CHARGES AND RATES
9.01 GENERAL
The service rates as established in Exhibit 1 which is attached hereto and included in this
Contract and as may be adjusted under the terms of this Contract shall be the Maximum
Contractor Compensation. Contractor may receive no other compensation unless approved in
advance in writing by the City, or as otherwise provided in this Contract.
Contractor shall not charge for Collection Services provided to City Facilities as included in
Exhibit 4.
9.02 INITIAL RATES
The Maximum Contractor Compensation through the Rate Year ending June 30, 2013, shall not
exceed the maximum rates set forth in Exhibit 1.
9.03 SCHEDULE OF FUTURE ADJUSTMENTS
Beginning with the Rate Year starting July 1, 2013 and for all subsequent Rate Years,
Contractor may request an annual adjustment to the Maximum Contractor Compensation shown
in Exhibit 1. The Contractor shall submit its request in writing directly to City staff or via certified
mail, on or before April 15, 2013 and April 15 of each succeeding Rate Year, and shall be based
on the method of adjustment described in Section 9.04. Failure to submit a written request by
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April 15 of each year shall result Contractor waiving the right to request such an increase for the
subsequent Rale Year. Missed rate adjustments may not be added to rate adjustment
applications in ensuing years.
9.04 METHOD OF ADJUSTMENTS
The intent of this Contract is to provide for an annual adjustment to the Maximum Contractor
Compensation. The first annua! adjustment will be effective July 1, 2013. The Conlractor shall
prepare and submit its calculation of each component of the Maximum Contractor
Compensation Apri! 1 of each year. The Contractor's submittal shall present the calculation and
all supporting documentation needed to verify the calculation as shown in Exhibit 2. The
Contract Administrator will review the Contractor's submittal within thirty (30) calendar days of
receipt and either 1. acknowledge the City's acceptance of the IViaximum Contractor
Compensation or 2. shall provide comments describing any exceptions to the Contractor's
calculations. If the Contract Administrator and Contractor cannot agree upon the amount of the
rate adjustment authorized pursuant to this section, the City Manager shall make a final
determinaflon and his or her decision is final and binding.
Each component of the Rates shall be adjusted as follows:
A. Service Component - The service component of each rate will be adjusted annually
based on the annual change in the Consumer Price Index - All Urban Consumers, San
Diego All Items (CUURA424SAO) for the prior year weighted at 90%. The allowable
annual change will be between 0.0% and 5.0%.
B. Occupancy Component - The Occupancy Component of each rate shall be adjusted
based on the change in the monthly amount paid by the Contractor for facility use
associated with this Contract. The initial occupancy component is based on a monthly
facility lease cost of $60,000. Ninety (90) days prior to the annual change in rates, the
Contractor will submit to the City all documents supporting its occupancy cost. The
occupancy component of the rate will increase or decrease based on the formulas
established in Exhibit 2.
C. Disposal Component - The Disposal Component of each rate shall be adjusted to reflect
the change in the applicable tip fee at the Palomar Transfer Station, as approved by the
City
D. Franchise Fee/AB 939 Fee Component - The Franchise Fee (7.5%)/AB 939 fee (2%)
portion of each rate shall be set at 9.5% of the total of the Service Rate plus the
Occupancy Rate plus the Disposal Component plus the Franchise Fee.
E. Storm Water Component - The Storm Water Component of each rate shal! be set by the
City and not subject to Franchise Fees.
9.05 EXTRAORDINARY ADJUSTMENT
Contractor may petition the City in wriflng at reasonable times other than that allowed under
Section 9.04 for an adjustment in the Maximum Contractor Compensation in the event of
extraordinary changes in the costs of operations or programs that satisfy all of the following
conditions: (i) materially alters Contractor's operations or overall costs; (ii) could not reasonably
have been foreseen by a prudent operator; and (iii) by all reasonable expectations will continue
for a period of at least six (6) months. The Contractor may request only one such adjustment
per Rate Year. Without limitation, examples of extraordinary changes that would justify a request
for an adjustment include the inability to utilize a particular Disposal Site or processing facility, or
substantial increases in the cost of fuel or other required commodities arising from terrorist
activities, wartime conditions, the loss of global energy resources, or catastrophic natural
events.
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Such changes shall not include changes in the market value of Recyclables or inaccurate
estimates by the Contractor of its cost of operations. Extraordinary rate adjustments shall only
be effective after approval by City Council and may not be applied retroactively
Contractor's request shall contain substantial proof and justification to support the need for the
adjustment. For each request brought pursuant to this seclion. Contractor shall prepare a
schedule documenting the extraordinary costs. Such request shall be prepared in a form
acceptable to City with support for assumptions made by Contractor in preparing the estimate.
The City may request from the Contractor such further information as it deems necessary to
fully evaluate the request and make its determination. City may request a copy of the
Contractor's annual financial statements in connection with the City's review of Contractor's rate
adjustment request. City is enlitled to a reimbursement of its costs in reviewing a request for an
extraordinary adjustment. City shall review the Contractor's request and, in City's reasonable
judgment, make the flnal determination as to whether an adjustment to the maximum rates will
be made, and, if an adjustment is permitted, the appropriate amount of the adjustment.
9.06 GUARANTEED CUSTOMER RATE
Contractor guarantees that throughout the term of this Contract that the Contractor's net rate for
Single-Family Residenflal Cart Collection Service (for a 64 or 96 gallon cart) and Contractor's
net rate for Multi-Family and Commercial Bin Collection Service (for a three-yard bin picked up
once per week) (collectively the "Compared Sen/ices") will be in the lowest third of net rates
being charged for similar services in all cities in San Diego County using a franchised collection
system. The lowest third will be based on a ranking of the cities with comparable services as
described beiow. For purposes of this section, "net rate" shal! mean the rate charged by
Contractor (or the collector with whom Contractor is being compared) for providing the
Compared Services, less City Fees described below. Specifically only the rates charged related
to the provision of integrated solid waste management services shall be included in the
comparison. "City Fees" shall include franchise, administrative, AB 939, HHW and storm water
fees paid by Contractor to City.
As used in this secflon, the term "similar services" with respect to Single-Family Residential Cart
Collection Services shall refer to an automated Cart system utilizing separate Carts for Solid
Waste, Recyclables and Green Waste. If Comparable Cities (as defined herein) have rates for
multiple sizes of Residential Carts, the rate for the largest size Solid Waste Cart shall be used. A
city that has manual sen/ice for Green Waste will also be included as a Comparable City
Furthermore, similar services and the rates for such services must be provided by a private
hauler pursuant to a city franchise. The City and Contractor agree that the list of cities in Exhibit
6 attached hereto provide "similar services" as that term in used herein (collectively the
"Comparable Cifles"). If any of the Comparable Cities discontinue the fully automated Cart
system described above, or other cities add automated Cart system for all three types of
materials, they shall, respectively be deleted or added to the list of Comparable Cities.
As of April 1 of each contract year, the City shall prepare a net rate comparison to Comparable
Cities in the format of Exhibit 6 attached hereto (a "Rate Review"). The exhibit will reflect the
most recent rates being charged. The Contractor shall have 15 days to review and notify the
City of any objections to the survey Once determined lhat current net rales for the City of
Carisbad are within the lowest third of net rates being charged in the County of San Diego by
Comparable Cities, the contractor qualifies for a rate adjustment pursuant to Section 9.04.
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(9>
At any time during the contract lerm, if the City determines that the Contractor's net rates are no
longer in the lowest third of net rates being charged by Comparable Cities for similar services in
all cities in San Diego County using a franchised collection system. Contractor shall reduce its
rates for any or all of the Compared Sen/ices described above within 30 days of City giving it
notice.
Sinale Familv Residential Cart Collection Services. Should a Rate Review indicate that
Contractor's net rates for Compared Services for Single-Family Residential Cart Collection
Sen/ice are in the lowest third of net rates being charged for similar sen/ices by Comparable
Cities, the City shall approve Contractor's annual rale adjustments for all Single-Family
Residential Sen/ices (35, 64 and 96 gallon carts) pursuant to Section 9.04, provided that that
Contractor's requested rate increase will not cause the Contractor's adjusted net rales to
exceed the lowest third (according to the most recent Rate Review). Should the Contractor's
requested rate increase cause the net rates for Single-Family Residential Cart Collection
Service to exceed the lowest third, the rate increase wil! be limited to an amount that would
keep the net rates in the lowest third (according to the most recent Rate Review).
Mulfl-Familv and Commercial Bin Collection Services. Should a Rate Review indicate that
Contractor's net rates for Compared Services for three-yard Bins collected once per week is in
the lowest third of net rates being charged for similar services by Comparable Cities, the City
shall approve Contractor's annual rate adjustments for all Multi-Family Residential and
Commercial Sen/ices pursuant to Section 9.04, provided that that Contractor's requested rate
increase will not cause the net rates for three-yard Bins collected once per week to exceed the
lowest third (according to the most recent Rate Review). Should the Contractor's requested
rate increase cause the net rates for three-yard Bins collected once per week to exceed the
lowest third, the rate increase for all Mulfl-Family Residential and Commercial Services will be
limited to an amount that would keep the net rates in the lowest third (according to the most
recent Rate Review).
9.07 LIMITATIONS ON RATE ADJUSTMENTS
ff any rate increase is subject to City resident approval pursuant to Article XIIID of the California
Constitution, the City shall undertake the notice and protest process required therein. Should a
majority protest, as provided for under Article XIIID of the California Constituflon, invalidate
approval of any rate increases provided for herein, the City shail either:
A. pay Contractor an amount equivalent to the additional revenue the increase in the rates
would have generated, or
B. negotiate modifications to the services provided under this Contract which would result
in
• rates equal to the rates in effect prior to the rejected proposed increase in rates, and
• Company's projected profit margin under the Contract being no less than 13.9% (the
Profit margin projected by Company at that time this Contract is executed).
Contracior's projected profit margin shall be based on an income statement formal
as shown in Exhibit 7. For purposes of the profit margin calculation, landfill disposal
costs and Franchise Fees / AB939 Fees shall be considered as pass-through
expenses not subject to profit. Income Taxes shall be treated as a non-allowed
expense and will not be considered in the profit calculation. The prior year's actual
Page 46
income statement prepared by Contracior's independent auditor consistent with
GAAP (full accrual) and in the format of Exhibit 7 will also be provided.
ARTICLE 10. RECORD KEEPING AND REPORTING REQUIREMENTS
10.01 GENERAL
Contractor shall compile and maintain records related to its performance under this Contract as
necessary to develop the reports required by this Contract. Contractor agrees to conduct data
collection, information and record keeping, and reporting activities needed to comply with and to
meet the reporting and Solid Waste program management needs of the City the Act, olher
Applicable Laws, and the requirements of this Contract.
Record keeping and reporting requirements specified in this Contract shall nol be considered
limiflng or necessarily complete. In particular. Article 10 is intended to highlight the general
nature of records and reports and their minimum content and is nol meant lo comprehensively
define the scope and content of the records and reports. Upon written direction or approval of
City the records and reports required by Contractor in accordance with this and other Articles of
the Contract shall be adjusted in number, format, or frequency
Contractor shall maintain all records necessary to allow the Cily to determine Contractor's
compliance with the terms of the Contract and compliance with the performance standards
presented in this Contract. The records shall be maintained in a manner that allows for easy
verification of Contractor's performance.
10.02 RECORD KEEPING
10.02.1 General
Contractor shal! maintain records required to conduct its operations, to support requests
it may make to City and to respond to requests from City All records shall be maintained
for five (5) years after the expiration or early termination of this Contract.
10.02.2 Inspection of Records
City shall have the right to inspect or review specific documents or records of Contractor
or Affiliates that City shall deem, in its reasonable judgment, necessary to evaluate
annual reports, compensation applications provided for in this Contract, and Contractor's
performance provided for in this Contract.
Contractor agrees that the relevant records of any Affiliates conducting operations
addressed in the Contract shail be provided or made available lo City and its official
representatives for review. The City its auditors and other agents selected by the City
shall have the right, during regular business hours, to conduct unannounced on-site
inspections and review of the records and accounting systems of Contractor and to
make copies of any documents required for the above reviews.
10.02.3 Retention of Records
Unless othenwise herein required, Contractor shall retain all records and data required to
be maintained by this Contract for the term of this Contract plus al least five (5) years
after expiration or early termination of the Contract. Records and data shall be in a
chronological and organized form and readily and easily interpreted. At the City's
request, records and data required to be retained shall be retrieved in a timely manner
Page 47 ^
(which shall not exceed more than ten (10) Work Days unless Contractor obtains prior
written approval from the City) by Contractor and made available to the City
Contractor shall maintain copies of all Billings and Billing collections (e.g., Customer
payments) records or copies of Billing summary reports (that document all Billings and
Billing Collections for each Customer) for five (5) years, following the date of Billings, for
inspection and verification by City
Records and data required to be maintained that are not specifically directed to be
retained that are, in the reasonable judgment of the Cily malerial lo the determination of
Contractor's compensation or rates or to determine Contractor's performance under this
Contract, shall be retrieved by Contractor and made available lo the City in a timely
manner (which shall not exceed ten (10) Work Days unless Contractor obtains prior
written approval from the City). When records and data are not retained or provided by
the Contractor, the City may make reasonable assumptions regarding what information
is contained in such records and data, and such assumption(s) shall be conclusive in
whatever action the City takes.
10.02.4 Record Security
Contractor shall maintain adequate record security to preserve records from events that
can be reasonably anticipated such as a fire, theft, and an earthquake. Electronically-
maintained data and/or records shall be protected, backed up, and stored at a separate
site from the original data.
10.02.5 Accounting Records
Contractor shall maintain full, complete and separate financial, statistical and accounting
records, pertaining to cash, billing, and provisions of all Collection Sen/ices, prepared on
an accrual basis in accordance with generally accepted accounting principles. Billing,
gross receipt, rebate and disposal records shall be subject to audit, copy and inspection.
Contractor shall maintain and preserve al! billing, gross receipts, rebate and disposal
records for a period of not less than five (5) years following the close of each of the
Contractor's fiscal years.
10.02.6 Collection Service Records
Contractor shall maintain and retain records relating to:
A. Customer and Billing information including, but not limited to, the following for
each Customer:
• Names, addresses, and phone numbers of Customer, billing contact person,
and, if appropriate, for property manager or on-site contact person;
• Solid Waste sen/ice level. Recyclable Materials service ievei, and Green
Waste service level (where service level includes the number of Containers,
size of each Container, and the Collecflon frequency of each Container);
• Number of tenant or living units at MFD Complexes;
• Special sen/ices (e.g., Roll-out Sen/ice, Scout Service, lock/unlock charges,
etc.);
• Contractor's Customer and Billing system shall allow for information to be
compiled easily and separately for each service sector.
Page 48
B. Quantities of Residential Solid Waste and Commercial Solid Waste by type (e.g..
Solid Waste, Recyclable Materials, Green Waste) collected, purchased,
processed, sold, donated or given for no compensation, and residue disposed.
C. Route sheets and route maps identifying the accounts serviced by each
Collection vehicle on a daily basis.
D. Facilities, equipment and personnel used.
E. Facilities and equipment operations, maintenance and repair.
F. Tonnage of Solid Waste, Recyclable Materials, and Green Waste listed
separately by materials type and service sector and the facility where materials
were delivered.
G. Monthly overall diversion level, monthly SFD diversion level, and the monthly
Commercial diversion level (each stated as a percentage) and calculated in
accordance with Attachment I.
H. Recyclable Materials, Household Batteries, Cell Phones and Green Waste
Collection participation and set-out rates.
I. Tonnage of materials collected from on-call Bulky and community drop-off events
as described in Secflon 4.05 reported separately by material type collected and
listing facilities where materials were delivered (e.g., Goodwill Industries,
Transfer Station and Processing Site, etc.).
10.02.7 Other Records
Contractor shall maintain all other records reasonably related to provision of Collection
Services, whether or not specified in this the Contract.
10.02.8 Customer Service Records
Daily logs of al! Complaints and Inquiries provided under this Contract shall be retained
for a minimum of thirty-six (36) months. Contractor shall maintain and retain customer
service center records, which include, but are not limited to the following customer
service center statistics.
• Number of calls received on a daily and monthly basis;
• Number of calls answered on a daily and monthly basis;
• Number of abandoned (dropped) calls on a daily and monthly basis;
• Average abandoned flme (i.e., hold time before abandoning call);
• Number of delayed calls (i.e., calls where caller is placed on hold before speaking
with a Customer Service Agent) on a daily and monthly basis;
• Average hold time for incoming calls on a daily and monthly basis;
• Percentage of calls answered by a person within thirty (30) seconds on a daily and
monthly basis;
• Percentage of calls answered within three (3) minutes on a daily and monthly basis;
• Number of e-mail responses sent from the Customer Service Department to
Customers on a monthly basis;
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• Number and percentage of Complaint and inquiry e-mails or submissions through
Conlractor website that received responses before close of business on the day
received on a monthly basis;
• Number and percentage of Complaint and inquiry e-mails that received responses by
the close of business on the day following the receipt of the Complaint or Inquiry;
• Number of Complaints and Inquiries received through Contractor's website on a daily
and monthly basis;
• Minimum, average, and maximum number of Customer Service Representatives
employed during each month; and,
• Number of Customer Sen/ice Representatives employed during each month.
10.03 ANNUAL REPORTING
10.03.1 General
Except as othenwise provided, annual reports shall be submitted no later than April 1 for
the previous calendar year. Annual reports shall be submitted in hard copy, and shall be
provided electronically in software acceptable to the City.
10.03.2 CalRecycle Reports
Contractor shall assist the City to prepare the Annual Diversion Report required by
CalRecycle by providing necessary information.
10.03.3 City Reports
Annual reports to the City shall include:
• Contractor shall prepare a report that summarizes the public education and
information activities undertaken during the year, including distribution of bill inserts,
collection notification tags, community information and events, tours and other
activities related to the provision of Collection Services. This report shall detail the
impact of these activities.
• Contractor shall prepare a report that lists all complaints received, the date and
nature of the complaint, and the resolution of the complaint.
• Contractor shall prepare a report that summarizes the following information, along
with corresponding historical data, the specific format of which is to be approved by
the City:
• Total tonnages collected, diverted and disposed by program and waste stream;
• Commercial service level profile (as of December 31st of each year).
• A list of commercial waste audits conducted and results.
• Contractor shall prepare a report that describes efforts to identify new or enhanced
diversion programs to assist City with efforts to increase diversion, and
recommendations for implementation.
• By July 1 of each year, Contractor shall prepare and submit the Household
Hazardous Waste information required on state Form 303.
10.03.4 Additional Reporting
The Contractor shall furnish the City with any additional reports as may reasonably be
required, such reports to be prepared within a reasonable time following the reporting
period.
Page 50
A. Contractor shall maintain any and all letters, books of account, invoices,
vouchers, canceled checks, and other records or documents evidencing or
relating to charges for services or expenditures and disbursements charged to
Customers for a minimum period of three (3) years, or for any longer period
required by law, from the date of final payment to Contract or pursuant to this
Contract.
B. Contractor shall maintain all documents and records, which demonstrate
performance under this Contract for a minimum period of three (3) years, or for
any longer period required by iaw, from the date of termination or completion of
this Contract.
C. Any records or documents required to be maintained pursuant to this Contract
shall be made available for inspection or audit in accordance wilh Section
10.02.2, at any flme during regular business hours, upon written request by the
Contract Administrator, the City Attorney Utilities Director, City Manager, or a
designated representative of any of these officers. Copies of such documents
shall be provided to City for inspection at Contractor's address indicated for
receipt of notices in this Contract.
ARTICLE 11. INSURANCE
11.01 INSURANCE POLICIES
Contractor shall secure and maintain throughout the lerm of this Contract insurance, approved
by the City that covers claims for injuries to persons or damages to property which may arise
from or in connection with Contractor's performance of work or services under this Contract.
Contractor's performance of work or services shall include performance by Contractor's
employees, agents, representatives and subcontractors.
11.01.1 Minimum Scope of Insurance
Insurance coverage shall be at least this broad:
• Insurance Services Office Commercial General Liability coverage form CG 0001
including products-completed operations, property damage, bodily injury, and
personal injury.
• Insurance Services Office form CA 0001 covering Automobile Liability code 1 "any
auto".
• Workers' Compensation insurance as required by the State of California and
Employers Liability Insurance.
• Contractors Pollution Liability applicable to the work being performed and including
completed operaflons.
11.01.2 Minimum Limits of Insurance
The limits of liability for the insurance required shall provide coverage for not less than
the amounts listed below. If the Contractor maintains higher limits than the minimums
shown below, the City shall be entitled to coverage for higher limits maintained by the
Contractor. Contractor shall maintain insurance limits no less than:
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• Commercial General Liability: $5,000,000 per occurrence for bodily injury, personal
injury and property damage. When such amounts are exhausted, Contractor's
Umbrella policy will provide additional $15,000,000 aggregate coverage.
• Automobile Liability: $10,000,000 combined single limit per accident for bodily injury
and property damage.
• Workers' Compensation and Employers Liability: Workers' Compensation limits as
required by the Stale of California and Employers Liability limits of $3,000,000 per
accident.
• Contractors Pollution Liability; $10,000,000 per occurrence and $10,000,000
aggregate.
11.02 DEDUCTIBLES AND SELF-INSURED RETENTION
Any deductibles or self-insured retentions shall be for the account of the Contractor and
payment of such shall be made entirely by Contractor without contribution from the City
11.03 ENDORSEMENTS
11.03.1 General Liabitity
• The policy is to be endorsed to provide that the City, ils officials, employees, and
volunteers are additional insureds as respects liability arising out of activities
performed by or on behalf of. Contractor; products and completed operations of
Contractor; and premises owned, leased or used by Contractor.
• The coverage shall contain no special limitations on the scope of protection afforded
to City its officials, employees, and volunteers.
• As respects the liabilities assumed by Contractor under this Contract, the policy is to
be endorsed to contain: Contractor's insurance coverage is primary insurance as
respects City, its officials, employees, and volunteers. Any insurance, or self-
insurance maintained by City, its officials, employees, and volunteers shall be in
excess of Contractor's insurance and shall not contribute with it.
• Coverage shall state that Contractor's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the
limits of the insurer's liability.
11.03.2 Automobile Liability
This policy is to be endorsed to delete the Pollution and Asbestos exclusion and add the
Motor Carrier Act endorsemeni (MCS-90) and any other endorsements required by
federal and stale authorities.
11.03.3 Contractors Pollution Liability
If the Contractors Pollution Liability policy is written on a Claims Made form:
• The retroactive date must be shown on the certificate of insurance and must be
before the date of the contract or the beginning of contract work.
• Insurance must be maintained and evidence of insurance must be provided for at
least five (5) years after completion of the contract work.
• If the coverage is cancelled or not renewed and not replaced with another claims-
made policy form with a retroactive date prior to the Effective Date, the contractor
must purchase extended reporting period coverage for a minimum of five (5) years
after completion of the contract work.
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• Coverage shall state that Contractor's insurance shall apply separately to each
insured against whom claim is made or suit is brought, except with respect to the
limits of the insurer's liabiiily.
11.03.4 All Coverage
Each insurance policy required by this Contract shall be endorsed to state that coverage
shall not be canceled except after thirty (30) days (ten (10) days in the event of
cancellation due to non-payment) prior written notice has been given to Cily
11.04 ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers that are admitted carriers in the State of California with a
rating in the most recent Best's Key Rating Guide of at least A-:VII, or with carriers that are
surplus line insurers on the State of California's List of Eligible Surplus Line Insurers (LESLI)
with a rating in the latest Best's Key Rating Guide of at least A:X.
11.05 VERIFICATION OF COVERAGE
Contractor shall furnish City with certificates of insurance and original endorsements affecting
coverage required by this Contract. The certificates and endorsement for each insurance policy
are to be signed by a person authorized by that insurer to bind coverage on its behalf.
Contractor shall furnish City with new certificates of insurance and endorsements on each
renewal of coverage or change of insurers.
11.05.1 Proof of Insurance
Proof of insurance shall be mailed to the following address or any subsequent address
as may be directed in writing by the Contract Administrator:
City of Carisbad
Solid Waste Contract Administrator
5950 El Camino Real
Carisbad, CA 92008
11.06 SUBCONTRACTORS
Contractor shall include all subcontractors physically performing services in the City as insured
under its policies or shall obtain separate certificates and endorsements for each subcontractor.
11.07 MODIFICATION OF INSURANCE REQUIREMENTS
Subject to the requirements of Section 14.07, the insurance requirements provided in this
Contract may be modified or waived by City's Risk Manager, in writing, upon the request of
Contractor if the City's Risk Manager determines such modification or waiver is in the best
interest of City considering all relevant factors, including exposure to City
11.08 RIGHTS OF SUBROGATION
All required insurance policies shall preclude any underwriter's rights of recovery or subrogation
against City with the express intention of the parties being that the required insurance coverage
protects both parties as the primary coverage for any and all losses arising in connection with
Contractor's performance of work or sen/ices under this Contract covered by the above-
described insurance. Contractor shall ensure that any companies issuing insurance to cover
the requirements contained in this Contract agree that they shall have no recourse against City
for payment or assessments in any form on any policy of insurance. The clauses 'Other
Insurance Provisions' and 'Insured Duties in the Event of an Occurrence, Claim or Suit' as they
appear in any poiicy of insurance in which City is named as an additional insured, and in the
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workers' compensation and employers' liability contractor's pollution liability and automobile
insurance policies, shall not apply to City
ARTICLE 12. INDEMNIFICATION AND BOND
12.01 INDEMNIFICATION
Contractor shall indemnify and hold harmless Cily public officials, officers, directors, employees,
volunteers, agents and other contractors, from and against any and all claims, costs, losses and
damages (including but not limited to all fees and charges of engineers, architects, attorneys
and other professionals as well as all Court or other dispute resolution costs), liabilities,
expenditures or causes of action of any kind (including negligent, reckless, willful or intentional
acts or omissions of the Contractor, any subcontractor, any supplier, any person or organization
directly or indirectly employed by any of them to perform or furnish any services or anyone for
whose acts any of them may be liable), arising from, relative to or caused by the performance of
the services authorized or required by this Contract. This indemnity includes but is not limited to
claims attributable to bodily injury, sickness, disease or death and to injury or destruction of
tangible property or the necessity or conduct of notice and hearing procedures required to effect
any increase in Maximum Contractor Compensation (to the extent arising from the acts or
omissions of Contractor). Contractor agrees, at Contractor's expense, after written notice from
the City to defend any action against the City that falls within the scope of this indemnity and
shall reimburse the Cily for reasonable costs and expenses incurred in assisting the Contractor
with the defense. Additionally if Contractor, after receipt of written notice from the Cily, fails to
make any payment due under this Contract to the City, Contractor shall pay any reasonable
attorneys' fees or costs incurred by the City in securing any such payment from Contractor.
Payment of any amount due pursuant to the foregoing indemnity shall, after receipt of written
notice by Contractor from the City that such amount is due, be made by Contractor prior to the
City being required to pay same, or in the alternative, the City at the City's option, may make
payment of an amount so due and Contractor shall promptly reimburse the City for same,
together with interest thereon at the rate of twelve percent (12%) per annum simple interest
from the date of receipt by Contractor of written notice from the City that such payment is due.
THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE
GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE
EXPIRATION OR EARLIER TERMINATION OF THIS CONTRACT
12.02 HAZARDOUS SUBSTANCES INDEMNIFICATION
Without regard to any insurance coverage or requirements, and without limiting the above
general indemnification obligation in any way. Contractor specifically agrees to and shall, to the
maximum extent permitted by law, defend (with counsel acceptable to City), reimburse,
indemnify, and hold harmless Indemnities from and against any and all claims, actions,
liabilifles, damages, demands, judgments, losses, costs, liens, expenses, suits, actions,
attorneys' fees, consultant fees, penalties and any and all other losses, damages, fees and
expenses of whatever kind or nature ("Claims") (including but not limited to response costs,
investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs,
removal costs, remediation costs, and similar costs, damages and expenses) that arise out of or
are alleged to arise out of or in any way relate to any action, inaction or omission of Contractor
that:
• Results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee
is liable, responsible or in any way obligated to investigate, assess, monitor, study.
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test, treat, remove, remediate, or othenwise clean up, any Hazardous Contaminant
(as defined herein); or
• Relates to malerial collected, transported, recycled, processed, treated or disposed
of by Contractor.
Contractor's obligations pursuant to this section shall apply, without limitation, to:
• Any Claims brought pursuant to or based on the provisions of any environmental law;
• Any Claims based on or arising out of or alleged to be arising out of the ownership,
use, lease, sale, design, construction, maintenance or operaflon of Contractor of any
facility;
• Any Claims based on or arising out of or alleged to be arising out of the marketing,
sale, distribuflon, storage, transportaflon, disposal, processing or use of any
materials recovered by Conlractor; and
• Any Claims based on or arising out of or alleged to be arising out of any breach of
any express or implied warranty, representation or covenant arising out of or in
connection with this Contract.
The foregoing indemnity and defense obtigaflons shal! apply irrespective of the negligence or
willful misconduct of Contractor or any Affiliate of Contractor.
For purposes of this secflon, the term "Hazardous Contaminant" shall mean any Hazardous
Substance, any Hazardous Waste any crude oil or refined or unrefined petroleum product or any
fraction or derivative thereof; and any asbestos or asbestos-containing material. The term
"Hazardous Contaminant" shall also include any and all amendments to any referenced
statutory or regulatory provisions made before or after the date of execution of this contract.
THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE
GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE
EXPIRATION OR EARLIER TERMINATION OF THIS CONTRACT
The foregoing indemnity shall not apply with respect to: (1) any Hazardous Waste, Hazardous
Contaminant or hazardous substance generated by the City or its agents and delivered by the
City or its agents; (2) any materials delivered by Contractor to a disposal facility or processing
facility designated by the City that is nol owned or operated by Contractor, unless such material
was known by Contractor to be a Hazardous Waste or Hazardous Contaminant and illegal for
delivery to such disposal site or processing facility or (3) the disposal or release of hazardous
substances. Hazardous Contaminant or Hazardous Waste, which disposal or release has
resulted from the negligence or willful misconduct of the City or its agents.
12.03 THE ACT INDEMNIFICATION AND GUARANTEE
To the extent authorized by law. Contractor agrees to indemnify and hold harmless City from
and against all fines and/or penalties imposed by CalRecycle in the event the source reduction
and recycling mandates or any other requirement of the Act are not met by City resulting from
Contractor breaching this Contract.
THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE, SHALL BE
GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE
EXPIRATION OR EARLIER TERMINATION OF THIS CONTRACT
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12.04 PERFORMANCE BOND
On or before July 1, 2012, the Contractor shall furnish to the Cily, and keep current, a
Performance Bond in a form substantially similar as set forth in Exhibit 3 which is included in
and attached lo this Contract, for the faithful performance of this Contract and all obligations
arising hereunder in an amount as follows:
• Beginning July 1, 2012, the Contractor shall maintain a performance bond
throughout the term of this Contract in the amount of Two Million Dollars
($2,000,000.00).
• The performance bond shall be executed by a surety company licensed to do
business in the State of California, having an, A-:VII or better rating, and approved by
the City; and included on the list of surety companies approved by the Treasurer of
the United States.
12.04.1 Letter of Credit
As an alternative lo the performance bond required by Section 12.04, Contractor may
deposit with City an irrevocable letter of credit in an amount as set forth in this Contract.
If allowed, the letter of credit must be issued by an FDIC-insured banking institution
chartered to business in the State of Catifornia, in the City's name, and be callable at the
discretion of the City Nothing in this Section shall, in any way obligate the City to accept
a letter of credit in lieu of the performance bond.
12.05 FOREFEITURE OF PERFORMANCE BOND
In the event Contractor shall for any reason become unable to, or fail in any way to, perform as
required by this Contract, City may declare a portion or all of the performance bond which is
necessary to recompense and make whole the City forfeited to the City Upon partial or full
forfeiture of the perfonnance bond. Contractor shall restore the performance bond to its face
amount within thirty (30) days of the City's declaration. Failure to restore the performance bond
to its full amount within thirty (30) days shall be a material breach of the Contract.
12.06 PERFORMANCE SECURITY BEYOND SERVICE TERM
Some Contract requirements extend beyond the term of this Contract and other requirements,
such as State-approved diversion rates per Section 5.02, will not be substantiated until after the
final service date. Therefore, the Contractor shall not terminate the performance bond or letter
of credit, and will renew them to ensure continuous availability to the City, until receiving a
written release from the City Any performance bond or letter of credit will automatically expire
at the end of thirty six (36) months after the end of the term of this Contract. Permission from the
City to discontinue holding these performance securities does not relieve Contractor of
payments to the City that may be due, or may become due.
12.07 OBLIGATION
The execution of this Contract by the Contractor shall obligate the Contractor to comply with the
foregoing indemnification provision; however, the collateral obligation of providing insurance
must also be complied with as set forth in this Contract.
12.08 EXCEPTION
Notwithstanding other provisions of this Contract, Contractor's obligation to indemnify, hold
harmless and defend City its officers and employees shall not extend to any loss, liability
penalty, claim, damage, action or suit arising or resulting from acts or omissions constituflng
willful misconduct, active negligence or breach of this Contract of/by the City or ils officers or
employees, provided such breach, active negligence or willful misconduct is determined by
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agreemeni between the parties or by findings of a court of competent jurisdiction. In instances
where City, it officers and/or employees are shown to have breached this Contract or been
actively negligent or engaged in willful misconduct and where the same accounts for only a
percentage of the liabiiily involved, the obligation of Contractor, will be for the entire portion or
percentage of liability not attributable to the breach, active negligence or willful misconduct of
City, its officers and/or employees.
ARTICLE 13. DEFAULT OF CONTRACT
13.01 TERMINATION
The City may cancel this Contract, except as othenwise provided below in this Section, by giving
the Contractor no less than thirty (30) days' advance written notice, to be served as provided in
this Contract, upon the happening of any one of the following events:
A. The Contractor shall take the benefit of any present or future insolvency statute, or shall
make a general assignment for the benefit of creditors, or flie a voluntary petiflon in
bankruptcy (court) or a petition or answer seeking an arrangement for its reorganization
or the readjustment of its indebtedness under the Federal bankruptcy laws or under any
other law or statute of the United States or any state thereof, or consent to the
appointment of a receiver, trustee or liquidator of all or substantially all of ils property; or
B. By order or decree of a Court, the Contractor shall be adjudged bankrupt or an order
shall be made approving a petition filed by any of its creditors or by any of the
stockholders of flie Contractor, seeking its reorganization or the readjustment of its
indebtedness under the Federal bankruptcy laws or under any law or statute of the
United States or of any state thereof; or
C. By or pursuant to, or under the authority of any legislative act, resolution or rule or any
order or decree of any Court or governmental board, agency or officer having
jurisdicflon, a receiver, trustee or liquidator shall take possession or control of all or
substanflally all of the property of the Contractor, and such possession or control shall
continue in effect for a period of sixty (60) days; or
D. The Contractor has defaulted, by failing or refusing to pay in a timely manner the
liquidated damages or other monies due the City and the default is not cured within thirty
(30) days of receipt of written notice by City to do so; or
E. The Contractor has defaulted by allowing any final judgment in favor of the City against
Contractor for the non-payment of money to stand against it unsatisfied and the default
is not cured within thirty (30) days of receipt of written notice by City to do so; or
F. In the event that the monies are due the City hereunder are unpaid, or any other
monetary claim made by the City is unsatisfied, after the City has given Contractor thirty
(30) days' written notice of such nonpayment; provided that the Contractor shall not be in
default if the sum of money is bonded. All bonds shall be in the form acceptable to the
City Attorney; or
G. The Contractor has defaulted, by failing or refusing to perform or observe the terms,
conditions or covenants in this Contract or any of the rules and regulations promulgated
by the City pursuant thereto or has wrongfully failed or refused to comply with the
instructions of the Contract Administrator relative thereto and the default is nol cured
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within thirty (30) days of receipt of written notice by the City to do so, or if by reason of
the nature of such default, the same cannot be remedied wilhin thirty (30) days following
receipt by the Contractor of written demand from the City to do so, the Conlraclor fails to
commence the remedy of such default within thirty (30) days following such written
notice or having so commenced shall fail thereafter to continue with diligence the curing
thereof (with the Contractor having the burden of proof to demonstrate (a) that the
default cannot be cured within thirty (30) days, and (b) that it is proceeding with diligence
to cure the default, and such default will be cured within a reasonable period of time).
Notwithstanding anything contained herein to the contrary for the failure of the
Contractor lo provide Collection Services for a period of three (3) consecutive Work
Days, the City may secure the Contractor's records on the fourth (4th) Work Day in
order to provide interim Collection Services until such time as the matter is resolved and
the Contractor is again able to perform pursuant to this Contract; provided, however, if
the Contractor is unable for any reason or cause to resume performance at the end of
thirty (30) days, all liability of the City under this Contract to the Contractor shall cease
and this Contract may be deemed terminated by the City.
13.02 VIOLATIONS
(a) Notwithstanding the foregoing and as supplemental and additional means of termination
of this Contract under this Article, in the event that Contractor shall become a "habitual
violator" of a single obligation sel forth in this Contract, then provisions set forth in
13.02(b) shall apply. Contractor shall be deemed a "habitual violator" if it defaults in the
performance of the same Contract obligation three (3) or more flmes in any Rate Year
(each default a "habitual violator defaulf). For a Contractor default to qualify as a
habitual violator default:
(i) the City must give Contractor written notice of each such default,
(ii) the Cily will only give Contractor one written notice for each incident of default,
inclusive of all reports of such incident.
(iii) Contractor shall be given thirty (30) days from receiving written notice to remedy
the default (or if by reason of the nature of such default, the same cannot be
remedied within thirty (30) days, such amount of time as is reasonably
necessary for Contractor to remedy a default), and
(iv) Contractor shall have not taken appropriate steps to correct the reasons for such
default.
(b) If the Contractor becomes a habitual violator, the City shall thereupon issue the
Contractor a final warning citing the circumstances therefore, and any subsequent
violations by the Contractor shall be grounds for immediate termination of the Contract.
In the event of any such subsequent habitual violator default, the City may terminate this
Contract upon giving of written final notice to the Contractor, such cancellation to be
effective upon the date specified in the City's written notice to the Contractor, and all
contractual payments due hereunder plus any and all charges and interest shall be
payable to that date, and the Contractor shall have no further rights hereunder.
Immediately upon the specified date in such final notice the Contractor shall proceed to
cease any further performance under this Contract. Notwithstanding the above, if
habitual violator defaults are defaults described in Section 13.06 (liquidated damages
defaults), then the City may not terminate this Agreement pursuant to this Section 13.02
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until liquidated damages amount for such habitual violator defaults reach $2,000 in the
applicable Rale Year.
13.03 EFFECTIVE DATE OF TERMINATION
In the event of events specified in Sections 13.01 or 13.02, and except as otherwise provided in
these subsections, termination shall be effective upon the date specified in the City's written
notice lo the Contractor and upon that date this Contract shall be deemed immediately
terminated and upon such termination all liability of the City under this Contract to the
Contractor shall cease, and the City shall have the right to call the performance bond and shall
be free to negotiate wilh other contractors for the operation of the herein specified services. The
Contractor for failure to perform shall reimburse the City all direct and indirect costs of providing
interim Collection Sen/ices.
13.04 IMMEDIATE TERMINATION
City may terminate this Contract immediately upon written notice to Contractor in the event
Contractor fails to provide and maintain the performance bond as required by this Contract,
Contractor fails to obtain or maintain insurance policies endorsements as required by this
Contract, Contractor fails to provide the proof of insurance as required by this Contract.
13.05 TERMINATION CUMULATIVE
City's right to terminate this Contract is cumulative to any other rights and remedies provided by
law or by this Contract.
13.06 LIQUIDATED DAMAGES
It shall be the duty of Contractor to perform services under this Contract in accordance wilh its
terms and conditions. In the event Contractor is in default of certain terms and conditions set
forth in this Contract, the parties agree that the extent of damage to the City is difficult if not
impossible to precisely determine, and for that reason City may assess liquidated damages
against Contractor to recover its damages in the event of a breach by Contractor in the following
amounts:
LIQUIDATED DAMAGES
a. Failure or neglect to resolve each complaint within the flme
set forth in this Contract in excess of six (6) per Rate Year.
$150.00 per incident per
Customer.
b. Failure to clean up spillage or litter caused by Contractor. $150.00 per incident per location,
and any other fine levied by
state, local or federal agencies.
c. Failure to repair damage lo Customer property caused by
Contractor or its personnel.
$150.00 per incident per location.
d. Failure to maintain equipment in a clean, safe, and sanitary
manner.
$150.00 per incident per day.
e. Failure to have a vehicle operator properly licensed. $150.00 per incident per day.
f. Failure to maintain office hours as required by this Contract. $150.00 per incident per day
g-Failure to maintain or timely submit to City all documents
and reports required under the provisions of this Contract.
$150.00 per incident per day
h. Failure to properiy cover materials in Collection Vehicles. $150.00 per incident, and any
other fine levied by state, local or
federal agencies.
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LIQUIDATED DAMAGES
i. Failure to display Contractor's name and Customer Service
phone number on Collection Vehicles, except for reserve
vehicles.
$150.00 per incident per day
j-Failure to comply with the hours or days of operation as
required by this Contract.
$150.00 per incident per day.
k. Failure or neglect lo complete at least ninety percent (90%)
of each route on the regularly scheduled Collecflon Service
Work Day
$150.00 for each route not
completed.
1. Failure to notify Contract Administrator of failure to complete
daily routes.
$150.00 per incident per day
m Changing routes without proper notification to the Contract
Administrator.
$150.00 per incident per day
n. Commingling Residential or Commercial Solid Waste with
Recyclable Materials.
$150.00 per incident.
0. Commingling of materials collected inside and outside the
City of Carlsbad without prior approval by the City.
$150.00 per incident.
P-Failure to repair or replace damaged carts or bins within the
time required by this Contract.
$150.00 per incident per day
q-Failure to deliver or exchange carts or bins within the flme
required by this Contract.
$150.00 per incident per day.
r. Failure to have Contractor personnel in proper uniform. $150.00 per incident per day.
s. Disposal of Recyclable Materials in the Disposal Facility
without first obtaining the required permission of the City.
$1,000.00 per occurrence.
13.07 PROCEDURE FOR REVIEW OF LIQUIDATED DAMAGES
The Contractor Administrator may assess liquidated damages pursuant lo this Contract on a
monthly basis. At the end of each month during the term of this Contract, the Contract
Administrator shall issue a written notice to Contractor ("Notice of Assessment") of the liquidated
damages assessed and the basis for each assessment.
A. The assessment shall become final unless, within ten (10) days of the date of the Notice
of Assessment, Contractor provides a written request for a meeting with the City
Manager to present evidence that the assessment should not be made.
B. The City Manager shall schedule a meeting with Contractor as soon as reasonably
possible after timely receipt of Contractor's request.
C. The City Manager shall review Contractor's evidence and render a decision sustaining or
reversing the liquidated damages as soon as reasonably possible after the meeting.
Written notice of the decision shall be provided to Contractor.
D. In the event Contractor does not submit a written request for a meeting within ten (10)
days of the date of the Notice of Assessment, the City Manager's determination shall be
final and City may deduct the liquidated damages from amounts othenwise due lo
Conlractor.
E. City's assessment or collection of liquidated damages shall nol prevent City from
exercising any other right or remedy, including the right to terminate this Contract, for
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Contractor's failure to perform the work and services in the manner set forth in this
Contract.
13.08 FORCE MAJEURE
Contractor shall be excused from performance and shall not be liable for failure to perform
under this Contract if Contractor's performance is prevented or delayed by acts of terrorism,
acts of God, landslides, lightning, forest fires, storms, floods, typhoons, hurricanes, severe
weather, freezing, earthquakes, volcanic eruptions, other natural disasters or the imminent
threat of such natural disasters, pandemics, quaranflnes, civil disturbances, acts of the public
enemy, wars, blockades, public riots, strikes, lockouts, or other labor disturbances, acts of
government or governmental restraint or other causes, whether of the kind enumerated or
othenwise, and whether foreseeable or unforeseeable, that are not reasonably within the control
of the Conlractor ("Force Majeure"). If as a result of a Force Majeure event. Contractor is unable
wholly or partially to meet its obligations under this Contract, it shall give the City promptly
written notice of the Force Majeure event, describing it in reasonable detail. The Contractor's
obligations under this Contract shall be suspended, but only with respect lo the particular
component of obligations affected by the Force Majeure and only for the period during which the
Force Majeure exists. This Section shall apply without limitaflon, to Sections 13.01
(Termination), 13.02 (Violations), 13.04 and 13.06 (Liquidated Damages).
ARTICLE 14. OTHER AGREEMENTS OF THE PARTIES
14.01 INDEPENDENT CONTACTOR
In the performance of services pursuant to this Contract, Contractor shall be an independent
contractor and not an officer, agent, sen/ant or employee of City Contractor shall have exclusive
control of the details of the services and work performed and over all persons performing such
sen/ices and work. Contractor shall be solely responsible for the acts and omissions of its
officers, agents, employees, contractors and subcontractors, if any. Neither Contractor nor its
officers, employees, agents, contractors or subcontractors shall obtain any right to retirement
benefits, workers' compensation benefits, or any other benefits which accrued to City
employees and Contractor expressly waives any claim it may have or acquire to such benefits.
14.02 COMPLIANCE WITH LAW
In the performance of this Contract, the City and the Contractor shall comply with all applicable
laws, regulations, ordinances and codes of the federal, state and local governments, including
without limitation the City of Carlsbad Municipal Code.
14.03 NO ASSIGNMENT
No assignment of this Contract or any right occurring under this Contract shall be made in whole
or in part by the Contractor without the express prior written consent of the City Manager. The
City Council shall have full discretion to approve or deny with or without cause, any proposed or
actual assignment by the Contractor, except for an assignment to an Affiliate of Contractor,
which shall not be withheld unreasonably Any assignment of this Contract made by the
Contractor without the express written consent of the City Councit shall be null and void and
shall be grounds for the City to declare a default of this Contract and immediately terminate this
Contract by giving written notice to the Contractor, and upon the date of such notice this
Contract shall be deemed immediately terminated, and upon such termination all liability of the
City under this Contract to the Conlractor shall cease, and the City shall have the right to call
the performance bond and shall be free to negotiate with other contractors, the Contractor, or
any other person or company for the service which is the subject of this Contract. In the event
of any assignment, the assignee shall fully assume all the liabilities of the Contractor.
Page 61
14.04 USE OF SUBCONTRACTOR
The use of a subcontractor to perform services under this Contract shall not constitute an
assignment of Contractor's duties provided that Contractor has received prior written
authorization from the Contract Administrator, in his or her reasonable judgment, to subcontract
such services and the Contract Administrator has approved a subcontractor who will perform
such services. Contractor shall be responsible for directing the work of Contractor's
subcontractors and any compensation due or payable to Contractor's subcontractor shall be the
sole responsibility of Contractor. The Contract Administrator shall have the righl to require the
removal of any approved subcontractor for reasonable cause.
14.05 SUBCONTRACTORS
The Contractor shall require all subcontractors to enter into a contract containing the provisions
set forth in the preceding subsection in which contract the subcontractor agrees that Contractor
and subcontractor are independent contractors and have no other agency relationship with City
14.06 NONDISCRIMINATION
In the performance of all work and services under this Contract, Contractor shall not
discriminate against any person on the basis of such person's race, sex, color, national origin,
religion, marital status or sexual orientation. Contractor shall comply with all applicable local,
state and federal laws and regulations regarding nondiscrimination, including those prohibiflng
discrimination in employment.
14.07 MODIFICATIONS
The City shall have the power to make changes in this Contract, as provided below. The City
shall give the Contractor notice of any proposed change and an opportunity to be heard
concerning those matters.
14.07.1 Change in Law
The City and the Contractor understand and agree that the California Legislature and
regulatory agencies have the authority to make comprehensive changes in Solid Waste
Management legislation and regulations, including but nol limited to fees and charges
imposed under federal, state or local law related to the provisions of solid waste
services, and that these and other changes in law in the future which mandate certain
actions or programs for counties or municipalities may require changes or modifications
in some of the terms, conditions or obligations under this Contract. The Contractor
agrees that the terms and provisions of the City of Carisbad Municipal Code, as it now
exists or as it may be amended in the future, shall apply to all of the provisions of this
Contract and the Customers of the Contractor located within the Service Area. In the
event any future change in the Municipal Code, or other federal, state or local laws,
regulations or requirements, that materially alter the obligations of the Contractor, the
City requests a change in the scope of services, or there is an increase or decrease in a
fee or charge applicabie to the provision of Solid Waste Sen/ices, then the affected
service rates, as established in Exhibit 1 of this Contract shall be adjusted. Nothing
contained in this Contract shall require any party to perform any act or function contrary
to taw. The City and Contractor agree to enter into good faith negotiations regarding
modifications to this Contract which may be required in order to implement changes in
the interest of the pubtic welfare or due to change in taw. When such modifications are
made to this Contract, the City and the Conlractor shall negotiate in good faith a
reasonable and appropriate compensation adjustment for any increase or decrease in
the services or other obligations required of the Contractor due to any modification in the
Page 62
Contract under this Article. The City and the Conlractor shall not unreasonably withhold
agreement to such compensation adjustment.
14.07.2 City's Right to Direct Changes
City may direct Contractor to perform additional Solid Waste Collection and diversion
services (including new diversion programs, etc.) or modify the manner in which it
performs existing services or bills for services. Pilot programs and innovative services
which may entail new collection methods, and different kinds of services and/or new
requirements for Waste Generators are included among the kinds of changes which City
may direct. Conlractor shall be entitled to an adjustment in its Contractor Compensation
for providing such additional or modified services, including a profit factor equal to ten
percent (10%) of the incremental cost of such additional or modified sen/ices. Contractor
shall be subject to an adjustment in its Contractor Compensation if City directed changes
result in a reduction in costs to the Conlractor. City may utilize cost components
provided with Conlractor's proposed rates in calculating equitable rate adjustments. If
the City Manager and Contractor cannot agree upon the amount of a rate adjustment
authorized pursuant to this section, the City Council shall make a final determination and
its decision is final and binding.
14.07.3 New Diversion Programs
Contractor shall present, within thirty (30) days of a written request to do so by City a
proposal to provide additional or expanded diversion services. The proposal shall
contain a complete description of the following:
Collection methodology to be employed (equipment, manpower, etc.).
Equipment to be utilized (vehicle number, types, capacity, age, etc.).
Labor requirements (number of employees, by classification).
Type(s) of Containers to be utilized.
Type(s) of materials to be collected.
Provision for program publicity/education/marketing.
Three-year projection of the financial results of the program's operations in an
operating statement format including documentation of the key assumptions
underlying the projections and the support for those assumptions.
• The added cost for providing such additional or expanded diversion services.
14.08 TRANSITION TO NEXT CONTRACTOR
In the event Conlractor is not awarded a Contract to continue to provide Collection Services
following the expiration or eariy termination of this Contract, Contractor shall cooperate fully with
City and any subsequent contractors to assure a smooth transition of services described in this
Contract. Such cooperation shall include but not be limited to transfer of computer data, files
and tapes; providing routing information, route maps, vehicle fleet information, and list of
Customers; providing a complete inventory of ali carts and bins; providing adequate labor and
equipment to complete performance of all Collection Services required under this Contract;
taking all actions necessary to transfer ownership of carts and bins, as appropriate, to City;
including transporting such containers to a location designated by the Contract Administrator;
coordinating collection of materials set out in new containers if new containers are provided for
a subsequent Contract and providing other reports and data required by this Contract.
Where City has reason to believe that such records or documents may be lost or discarded due
to the dissolution, disbandment or termination of Contractor's business. City may by written
Page 63
request or demand of any of the above-named officers, require lhat custody of the records be
given to City and that the records and documents be maintained in City Hall. Access to such
records and documents shall be granted to any party authorized by Contractor, Contractor's
representatives, or Conlractor's successor-in-interest.
ARTICLE 15. MISCELLANEOUS PROVISIONS
15.01 GOVERNING LAW
The law of the State of California shall govern the rights, obligations, dufles and liabilities of City
and Contractor under this Contract and shall govern the interpretation of this Contract.
15.02 JURISDICTION
The parties agree that any litigation between City and Conlraclor conceming or arising out of
this Contract shall be filed and maintained exclusively in the Municipal or Superior Courts of San
Diego County State of California, or in the United States District Court for the Southern District
of California to the fullest extent permissible by law. Each party consents to service of process in
any manner authorized by California law.
15.03 WAIVER
Waiver by City or Contractor of any breach for violation of any term, covenant or condiiion of this
Contract shall not be deemed to be a waiver of any other term, covenant or condition or any
subsequent breach or violation of the same or of any other term, covenant or condiiion. The
subsequent acceptance by City of any payment or any other monies which may become due
from Contractor to City shall not be deemed to be a waiver by City of any breach for violation of
any term, covenant or condition of this Contract.
The failure of the City at any time to require performance by the Contractor of any provision
hereof shall in no way affect the right of the City thereafter to enforce same. Nor shall waiver by
the City of any breach of any provision hereof be taken or held to be a waiver of any succeeding
breach of such provision or as a waiver of any provision itself.
15.04 ENTIRE CONTRACT; AMENDMENT
This document incorporates and includes all prior negotiaflons, correspondence, conversations,
contracts and understandings applicable to the matters contained in this Contract and the
parties agree that there are no commitments, contracts or understandings concerning the
subject matter of this Contract that are not contained in this document. Accordingly it is agreed
that no deviation from the terms of this Contract shall be predicated upon any prior
representations or Contracts, whether oral or written.
This Contract and the Exhibits attached hereto constitute the entire Contract and understanding
between the parties hereto, and it shall not be considered modified, altered, changed or
amended in any respect unless in writing and signed by the parties hereto, and approved by the
City Council.
Each Exhibit referred to in this Contract forms an essential part of this Contract. Each such
Exhibit is a part of this Contract and each is incorporated by this reference.
15.05 SECTION HEADINGS
Headings in this document are for convenience of reference only and are nol to be considered
in any interpretation of this Contract.
Page 64
15.06 CONSIDERATION
It is specifically understood and agreed that the consideration inuring to the Contractor for the
execution of this Contract consists of the promises, payments, covenants, rights and
responsibilities contained in this Contract.
15.07 SEVERABILITY
If any provision of this Contract or the application of it to any person or situation shall to any
extent be held invalid or unenforceable, the remainder of this Contract and the application of
such provisions to persons or situations other than those as to which it shall have been held
invalid or unenforceable, shall not be affected, shall conflnue in full force and effect, and shall be
enforced to the fullest extent permitted by law.
15.08 DAMAGE BY CONTRACTOR
If Contractor's employees or subcontractors cause any injury damage or loss to City property
including but not limited to City streets or curbs, normal wear and tear excepted. Contractor
shall reimburse City for City's cost of repairing such injury, damage or loss. Such reimbursement
is not in derogation of any right of City to be indemnified by Contractor for any such injury,
damage or loss. With the prior written approval of City Contractor may repair the damage at
Contractor's sole cost and expense.
15.09 ACKNOWLEDGMENT
It is acknowledged that each party was, or had the opportunity to be, represented by counsel in
the preparation of and contributed equally to the terms and conditions of this Contract and,
accordingly the rule that a contract shall be interpreted strictly against the party preparing the
same shall not apply herein due to the joint contributions of both parties.
15.10 CONTRACTOR STATUS
Contractor represents and warrants that it is duly organized, validly existing and in good
standing under applicable laws. It is qualified to transact business in the State of California and
has the power to own its properties and to carry on its business as now owned and operated
and as required by this Contract.
15.11 CONTRACTOR AUTHORIZATION
Contractor represents and warrants that it has the authority to enter into and perform its
obligations under this Contract. The Board of Directors of Contractor (or the shareholders, if
necessary) has taken all actions required by law, its articles of incorporation, its bylaws or
othenwise to authorize the execution of this Contract. The persons signing this Contract on
behalf of Contractor have authority to do so. Contractor acknowledges and agrees that City may
expect and assume that the actions of Contractor's Contract Liaison designated under Section
6.05.8 are taken on behalf of and with the full approval of the Contractor.
15.12 REPRESENTATIONS
Contractor warrants and represents that no elected official, officer, agent or employee of the City
has a financial interest, directly or indirectly in this Contract, the compensation to be paid under
it and, further, that no City employee who acts in the City as a "purchasing agent" as defined in
California Statutes, nor any elected or appointed officer of the City nor any spouse or child of
such purchasing agent, employee or elected or appointed officer, is a partner, officer, director or
proprietor of the Contractor and, further, that no such Cily employee, purchasing agent. City
elected or appointed officer, or the spouse or child of any of them, alone or in combination, has
a material interest in the Contractor as defined by applicable state law and regulations..
Page 65 ^
15.13 PERMITS & LICENSES
Contractor shall obtain, at its own expense, all permits and licenses required by law or
ordinance and maintain same in full force and effect throughout the term of this Contract.
Contractor shall provide proof of such permits, licenses or approvals and shall demonstrate
compliance with the terms and conditions of such permits, licenses and approvals upon the
request of the Contract Administrator.
15.14 CITY OWNERSHIP
All reports, documents, brochures, public education materials, and other written, printed,
electronic or photographic malerials developed by City or Contractor in connection with the
services to be performed under this Contract, whether developed directly or indirectly by City or
Contractor shall be and shall remain the property of City without limitation or restrictions on the
use of such materials by City Notwithstanding the above, all financial records and data remain
the property of Contractor. Contractor shall not use such materials in connection with any
project not connected with this Contract without the prior written consent of the Contract
Administrator. This Section does not apply to ideas or concepts described in such materials and
does not apply to the format of such materials.
15.15 EXEMPT WASTE
The Contractor shall not be required to collect or dispose of Exempt Waste, but may offer such
services. All such Collection and disposal of Exempt Waste is not regulated under this Contract,
but if provided by the Contractor shall be in strict compliance with all federal, state and local
laws and regulations. If Contractor is aware of any Exempt Waste and chooses not to collect it.
Contractor must notify City of the Exempt Waste. Title to Exempt Waste shall remain at all
times with the generator of such material, and shall not convey to Contractor, unless the
generator executes a Contractor Waste Profile form. Contractor approves such form in writing,
and a copy of such form is provided to the City
ARTICLE 16. NOTICES
Except as provided herein, whenever either party desires to give notice to the other, it must be
given by written notice addressed to the party for whom it is intended, at the place last specified
and to the place for giving of notice in compliance with the provisions of this paragraph. For the
present, the parties designate the following as the respective persons and places for giving of
notice:
As to the CITY:
City of Carlsbad
Utilities Director
5950 El Camino Real
Carlsbad, CA 92008
Telephone: (760) 438-2722
As to the CONTRACTOR:
Coast Waste Management, Inc.
District Manager
2141 Oceanside Blvd.
Oceanside, CA 92054
Telephone: (760) 754-4111
Page 66
with copy to
Waste Management - Western Group
7025 N. Scottsdale Road
Suite 200
Scottsdale, AZ 85253
Attention: Group Legal Counsel
Telephone: (480) 624-8573
Notices shall be effective when received at the address as specified above. Changes in the
respective address to which such notice is to be directed may be made by written notice.
Facsimile transmission is acceptable notice, effective when received; facsimile transmissions
received (i.e., printed) after 4:30 p.m. on any Work Day or on weekends or holidays wilt be
deemed received on the next Work Day The original of items that are transmitted by facsimile
equipment must also be mailed as required herein.
Notice by City to Contractor of a Collection or other Customer problem or complaint may be
given to Contractor orally by telephone at Contractor's local office with confirmation sent to
Conlractor through the Customer Sen/ice System by the end of the Work Day
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Page 67 /
ARTICLE 17. AUTHORITY
The individuals execuflng this Agreement and the instruments referenced in it on behalf of
Contractor each represent and warrant that they have the legal power, right and actual authority
to bind Conlractor to the terms and condiflons of this Agreement.
CONTRACTOR CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
fgn here)
Jason Ro^'^^rea Vice President and
General Manager
Mayor
(print name/title)
(sign here)
Lawrence Galek, Assistant Treasurer
(print name/title)
tf required by City, proper notarial acknowledgment of execution''''<^y». cq^htpa^tdr must be
attached, tf a corporation. Agreement must be signed by one corporate olTlterfftim each of the
foitowing two groups.
Group A
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certifled by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
BY:_
Assistant City AttorrSley
Page 68
£)cHf ^ fiCr/<eer>ieYjr
EXHIBIT 1
Initial Rates - Effective July 1st, 2012 (Components)
Service
Rate Occupancy Disposal
Rate
Contractor
Total
Franchise &
ABg39 9.5%
Storm
Water
Customer
Total
Residential Cart Service
Standard Three Cart
3-Cart 64 or 96 Gallon S 10.22 S 0.31 $ 4.35 S 14.88 S 1.56 $ 3.46 $ 19.90
3-Cart 35 Gallon Trash (Low Generator) S 10.22 S 0.31 $ 2.65 S 13.19 S 1.38 $ 3.46 $ 18.03
Backyard Service 15.82 3.98 $ 19.80 $ 2.08 S 3.46 $ 25.34
Multi-Family / Commercial Services (Bin Service)
Pickups Per Week Commercial Can - up to Four (4) 32 gal
1 $ 22.79 S 0.31 s 3.08 S 26.18 $ 2.75 $ 6.21 $ 35.14
2 $ 45.59 S 0.62 s 6.17 S 52.38 $ 5.50 S 12.42 $ 70.30
3 $ 68.38 S 0.93 $ 9.24 $ 78.55 $ 8.25 $ 18.64 $ 105.44
Extra Pick-up $ 11.62 S -s 0.71 $ 12.33 $ 1.29 $ 2.90 $ 16.53
Pickups Per Week Commercial Can - Backyard Service
1 $ 34.10 s 0.31 s 3.08 $ 37.50 $ 3.94 $ 8.84 $ 50.27
2 $ 68.21 s 0.62 s 6.17 S 75.00 $ 7.87 $ 17.67 $ 100.54
Pickups Per Week Commercia - Two Yard Bin
1 $ 42.64 s 1.25 $ 12.33 S 56.22 $ 5.90 $ 13.59 $ 75.71
2 $ 71.79 s 2.49 $ 24.65 $ 98.93 $ 10.38 $ 24.06 $ 133.37
3 s 100.92 s 3.74 $ 36.99 S 141.65 $ 14.87 $ 34.52 $ 191.04
4 s 130.02 s 4.98 s 49.31 $ 184.31 $ 19.35 $ 44.97 $ 248.63
5 s 159.20 s 6.23 s 61.64 $ 227.07 $ 23.84 S 55.43 $ 306.34
6 s 188.34 $ 7.48 $ 73.96 s 269.78 $ 28.32 $ 65.90 s 364.00
Extra Pick-up s 24.17 $ -$ 2.85 s 27.02 s 2.84 S 6.44 s 36.29
Pickups Per Week Commercial - Three Yard Bin
1 S 56.00 s 1.87 $ 18.49 S 76.36 S 8.02 S 18.54 $ 102.92
2 S 98.50 $ 3.74 $ 36.99 s 139.23 S 14.62 S 33.96 S 187.81
3 S 140.99 s 5.61 $ 55.48 s 202.08 S 21.21 $ 49.37 S 272.66
4 S 183.50 s 7.48 $ 73.96 s 264.94 S 27.81 S 64.77 S 357.52
5 S 226.00 $ 9.35 $ 92.45 s 327.80 S 34.41 S 80.18 $ 442.39
6 s 268.49 $ 11.22 $ 110.95 s 390.66 S 41.01 S 95.60 s 527.27
Extra Pick-up s 31.99 $ -$ 4.27 s 36.26 S 3.81 $ 8.66 s 48.72
Pickups Per Week Commercial -Four Yard Bin
1 S 74.70 $ 2.49 $ 24.65 s 101.84 S 10.69 $ 24.73 $ 137.26
2 $ 135.88 $ 4.98 s 49.31 $ 190.17 $ 19.96 $ 46.33 $ 256.46
3 $ 197.09 $ 7.48 s 73.96 $ 278.53 $ 29.24 $ 67.92 s 375.69
4 $ 258.27 $ 9.97 s 98.62 $ 366.86 $ 38.51 $ 89.52 s 494.89
5 $ 319.47 s 12.46 s 123.27 s 455.20 $ 47.78 s 111.12 s 614.10
6 $ 380.65 $ 14.95 s 147.93 s 543.53 s 57.06 s 132.72 s 733.31
Extra Pick-up s 37.67 $ -s 5.69 s 43.37 s 4.55 $ 10.39 s 58.31
Pickups Per Week Commercial - Five Yard Bin
1 $ 93.38 S 3.12 s 30.82 S 127.32 S 13.37 S 30.91 S 171.60
2 $ 173.28 S 6.23 s 61.64 S 241.15 S 25.31 S 58.71 S 325.17
3 $ 253.17 S 9.35 s 92.45 s 354.97 S 37.26 S 86.49 S 478.72
4 S 333.05 S 12.46 s 123.27 s 468.79 S 49.21 S 114.27 S 632.26
5 S 412.95 $ 15.58 s 154.09 $ 582.62 $ 61.16 S 142.05 S 785.83
6 S 492.84 S 18.69 $ 184.91 $ 696.44 $ 73.11 S 169.85 S 939.40
Extra Pick-up S 43.35 $ -s 7.12 s 50.47 $ 5.30 s 12.13 S 67.89
<?~1
Service
Rate Occupancy Disposal
Rate
Contractor Franchise &
Total AB939 9.5%
Storm
Water
Customer
Total
Pickups Per Week Commercial Recycling - Three Yard Bin
1 s 53.69 s 1.87 $ $ 55.56 5 5.83 S 12.62 S 74,01
2 $ 90.31 s 3.74 S $ 94.04 $ 9.87 S 21.29 S 125,21
3 $ 126.93 s 5.61 S s 132.54 S 13.91 $ 29.94 S 176.39
4 $ 163.54 s 7.48 s $ 171,02 $ 17.95 $ 38.61 $ 227.58
5 $ 194.82 s 9.35 $ $ 204,17 S 21.43 S 46.04 S 271.64
6 $ 233.78 s 11.22 $ s 245,00 S 25.72 s 55.03 S 325.75
7 $ 272,75 s 13.08 s s 285,83 S 30.00 s 64.20 S 380.04
Extra Pick-up $ 25,43 s s $ 25,43 S 2.67 s 5.90 S 33,99
Pickups Per Week Construction Bin Rate -Three Yard (includes delivery)
1 $ 189,48 S 1.87 $ 18.49 S 209.84 S 22.03 S s 231.87
2 $ 324,53 S 3.74 $ 36.99 S 365.26 S 38.34 S s 403.60
3 $ 459,59 $ 5.61 $ 55.48 S 520.67 S 54.66 s $ 575.33
4 $ 594,64 s 7.48 $ 73.96 $ 676.08 S 70.97 s 5 747.05
5 $ 729,70 s 9.35 $ 92.45 S 831,50 S 87.28 s $ 918.78
Extra Pick-up $ 48,00 s $ 4.27 S 52.27 S 5.49 s $ 57.75
Special Haul -1 week or tess Special Haul Bin (no Storm Water Fees) 1 week or less
1 73.98 $ - 1$ 4.27 Is 78.25 S 8.21 IS -|5 86.46
Pickups Per Week Commercial Recycling - Yard Waste 3 Yard
1 S 59.51 $ 1.87 $ 17.07 S 78.45 $ 8,24 S 18.25 $ 104.94
2 S 100.97 s 3.74 $ 34.14 S 138.85 $ 14.58 $ 32.31 $ 185.74
Pickups Per Week Commercial Recycling - 96 Gal Cart - Green Waste
1 S 11.50 $ 0.31 S 2,85 S 14.67 $ 1.54 $ 3.41 s 19,61
Extra Pick-up S 6.16 $ S 0.66 $ 6.81 $ 0.72 S 1.59 $ 9,12
Pickups Per Week Commercial Recycling - 96 Gal Cart - Recycling
1 S 12.32 $ 0.31 s $ 12.63 s 1.33 $ 2.88 s 16.84
2 $ 24.65 $ 0.62 s $ 25.27 $ 2.65 $ 5.76 s 33.68
3 S 36.97 $ 0.93 s $ 37.90 $ 3.98 s 8.64 s 50.52
Extra Pick-up $ 5.49 $ s $ 5.49 $ 0.58 s 1.67 s 7.73
Split Bin Split Bin - 3 yard - must have locks on each side
1 $ 51.41 $ 0,93 S 9.24 $ 61.59 $ 6.46 S 14.84 S 82.89
2 $ 92.04 s 1,87 s 18.49 s 112,40 S 11.80 S 27,16 S 151.36
3 $ 132,66 s 2.80 $ 27.73 s 163.20 S 17.13 S 39,49 s 219.82
4 $ 173,29 S 3,74 s 36.99 $ 214.01 $ 22.47 s 51,79 $ 288.27
5 $ 213.89 S 4.67 s 46.23 $ 264.79 S 27.80 s 64.13 s 356.72
6 s 254,50 S 5.61 s 55.48 s 315.58 S 33.13 $ 76.48 s 425.19
Bin Exchange
Bin Lock Set Up Fee
Locking Fee
Overloaded Bins
A Bin that needs to be moved:
5 to 30 feet
31 to 50 feet
Add'l 25 feet increments
Special Haul Bin Delivery
Rolloff Service
Service Fee
Disposal Fee per Ton (pass througii)
Roltoff- Demurrage Per Day Charge
Delivery
s 42.69 $ $ $ 42.69 $ 4.48 S 9.90 $ 57.07
s 26.68 $ S $ 26.68 S 2.80 S 6.19 s 35.67
s 10.14 $ s $ 10.14 S 1.06 S 2.35 s 13.56
$ 26.68 $ s $ 26.68 $ 2.80 S -s 29.48
s 3.74 S s $ 3.74 $ 0.39 s 0.87 s 5.00
S 5.07 $ s s 5.07 $ 0.53 s 1.18 s 6.78
$ 5.07 s s $ 5.07 s 0.53 s 1.18 s 6.78
$ 34.84 s s $ 34.84 s 3.66 $ -$ 38.50
S 179.91 S 5.76 $ S 185.67 s 19.49 s -s 205.16
S $ $ 39.00 S 39.00 s 4.09 s -$ 43.09
S 3.95 $ $ S 3.95 s 0.41 s -s 4.37
S 47.78 $ $ S 47.78 s 5.02 S -s 52.80
Service
Rate
- Disposal Contractor Franchise & Occupancy ^^^^ ^^^g, AB939 9.5% Storm
Water
Customer
Total
Relocation Charge onsite
Relocation Charge offsite
Wash Out Receiver Boxes
Dead Run charge
Standby charge per min after 5 min
Certified burial at Miramar plus special
handling fee charged by Miramar
Other Fees and Charges:
$ 37.33 $ s $ 37.33 S 3.92 s $ 41.25
$ 53.26 S s S 53.26 S 5.59 $ $ 58.85
S 42.71 $ s S 42.71 S 4.48 s $ 47.19
S 64.01 $ s S 64.01 $ 6.72 s $ 70.73
S 1.69 $ $ $ 1.69 $ 0.18 $ $ 1.87
S 272.72 $ s S 272.72 S 28.63 $ $ 301.35
Extra trash cart beyond 1st one 2.03 $ 2.03 $ 0.21 - $ 2.24
Two additional Green Waste and/or Recycling carts will be free of charge, after that each add'l one will be a charged.
S 2.03 $ - $ S 2.03 S 0.21 s S 2.24
Delivery of extra cart S 10.00 S 10.00 $ 1.05 S - S 11.05
Restart Fee- The fee for Restarting commercial service when a permanent account has been terminated for non-payment.
S 17.10 S $ $ 17.10 $ 1.80 $ S 18.90
Commercial Return to Service Fee- The return to service fee for two or more calls in a one-month period by a bin customer to return to
provide service. S 56.05 s s S 56.05 $ 5.88 $ $ 61.93
Residential Return to Service Fee- The return to service fee for two or more calls in a one-month period by a residential customer to
return to provide service. S 28.50 s $ S 28.50 $ 2.99 $ $ 31.49
Copy Fee- The charge for copies requested by customers.
S 1-19 s $ $ 1,19 S 0.12 $ $ 1.31
Bin exchange/steam clean fee-allowed 2 per year. After second exchange within 1 year, there will be a charge per exchange.
1 55.00 1$ n$ -Ts 55.00 1$ 5.77 |$ T$ 60.77
Bin paint charge fee - allowed 1 per year. After first paint within one year, there wil be a charge per paint request.
S 87.00 s - $ S 87.00 $ 9.13 $ $ 96.13
Interest Charge-Contractor may charge 1.5% interest per month on any delinquent account for such time as the bill remains unpaid after
its due date.
Late Fee - There will be a minimum fee on any delinquent account - $3 minimum.
S 3.00 s - $ $ 3.00 $ 0.31 $ $ 3.31
Single and Multi-Family dwelling customers, individual residents who live in either a single family home or a multi-family complex may
have this service (3 bulky item pick ups per calendar year with 5 items maximum charge per pick up).
Bulky Item - Exceeding 5 per pick up -
First item S 35.49 $ $ $ 35.49 $ 3.73 $ $ 39.22
Bulky Item - Exceeding 5 per pick up -
each addl item s 9.10 $ $ s 9.10 s 0.96 $ $ 10.06
Multi Family Complex and Commercial Bin Customers shall be charged for bulky item pickups (any bulky item that is not specifically
Per Bulky Item- first item S 35.49 S s $ 35.49 S 3.73 S S 39.22
Per Bulky Item -each add'l item s 9.10 s s $ 9.10 $ 0.96 S S 10.06
Bulky Item requiring 2 people to handle. $ 50.96 $ S 50.96 $ 5.35 S - S 56.31
Bins that are overloaded can be charged a fee.
$ 24.57 $ - $ - S 24.57 $ 2.58 S S 27.15
Contamination Fee-to recover costs for separating solid waste placed in a recycling or green waste container or for arranging a special,
unscheduled collection due to contamination. For Multi-Family and Commercial customers only.
$ 45.25 1$ -Is - 1$ 45.25 1$ 4.75 1$ -|$ 50.00
9^
(^y^i-l i&fr 2 TO /^(j/C£smcK/f
EXHIBIT 2
Rate Adjustment Example and Methodology
STEP ONE: Calculate Percentage Change in Index A B C D E
Row Rate Index Old Index New
Index
Percent Change in Index
((Column B/Coiumn A)-l)
Index
Weighting
Total Weighted
Change
(Column CxD)
1 CPI - All Urban Consumers - San Diego (1) $ 220.92 $ 226.00 2.30% 90% 2.07%
STEP TWO: Calculate Percentage Change in Occupancy F G H
Row Lease Payment (2) Old Pmt/mo New Pmt/mo Percent Change in Lease Pmt
((Column G/Column F)-l)
2 Monthly lease Payment S 60,000.00 S 61,241.72 2.07%
STEP THREE: Calculate Percentage Change in Disposal MSW 1 J K
Row MSW Disposal Rates Old Rate New Rate Percent Change in Disposal
((Column J/Column l)-l}
3 Palomar Transfer Station Tip Fee S 39.00 S 40.00 2.56%
STEP FOUR: Apply Percentage Changes to Service,
Occupancy and Disposal Components
SERVICE STEP FOUR: Apply Percentage Changes to Service,
Occupancy and Disposal Components L M N 0
Row Rate Category
Current
Service
Component
Total Percentage
Change
(from Row 1 Column E)
Service Component
Increase
(Column L X M)
Adjusted Service
Component
(Column L + N)
4 Residential - (3) 96 Gal Carts S 10.22 2.07% $ 0.21 $ 10,43
5 Residential - (3) 35 Gal Carts-Low Generator S 10.22 2.07% S 0.21 S 10.43
6 Commercial -1 3yd bin picked up 1
time/week S 56.00 2.07% S 1.16 $ 57.16
7 Roil Off Haul (Disposal is pass through) $ 179.91 2.07% S 3.72 S 183.63
OCCUPANCY
P Q R S
Row Rate Category
Current
Occupancy
Component
Total Percentage Change
(from Row 2 Column H)
Occupancy
Component Increase
or Decrease
(Column P X Q)
Adjusted Occupancy
Component
(Column P + R)
8 Residential - (3) 96 Gal Carts S 0.31 2.07% S 0.0 S 0.32
9 Residential - (3) 35 Gal Carts-Low Generator $ 0.31 2.07% S 0.0 S 0.32
10 Commercial -1 3yd bin picked up 1
time/week $ 1.87 2.07% S 0.0 S 1.91
11 Roll Off Haul (Disposal is pass through) $ 5.76 2.07% S 0.1 S 5.88
DISPOSAL
T U V W
Row Rate Category
Current
Disposal
Component
Total Percentage
Change
(from Row 3 Column K)
Disposal Component
Increase or Decrease
(Column Tx U)
Adjusted Disposal
Component (Column T +
V)
12 Residential - (3) 96 Gal Carts S 4.35 2.56% S 0.11 S 4.46
13 Residential - (3) 35 Gal Carts-Low Generator S 2.65 2.56% S 0.07 S 2.72
14 Commercial -1 3yd bin picked up 1
time/week S 18.49 2.56% S 0.47 $ 18.96
15 Roll Off Haul (Disposal is pass through) 2.56%
STEP FIVE: Add All New Components together resulting
in new Contractor Total
TOTAL STEP FIVE: Add All New Components together resulting
in new Contractor Total X
Row Rate Category Adjusted Contractor Total
(Column O+S+W)
16 Residential - (3) 96 Gal Carts $ 15.21
17 Residential - (3) 35 Gal Carts-Low Generator $ 13.47
18 Commercial -1 3yd bin picked up 1 time/week $ 78.03
19 Roll Off Haul (Disposal is pass through) $ 189.51
STEP SIX: Add Back Franchise/AB939 Fee 8i Storm
Water Fees Y Z AA AB
Row Rate Category
Adjusted
Contractor
Total (Rows 22-
27 Column X)
Franchise Fee
9.5% {{Column
Y/l-.095)-Y)
Storm Water
Fee (from
Current Rate
Schedule)
Total Adjusted
Rate to
Customer
(Columns Y + Z
+ AA)
Current
Rates
%
increase
20 Residential - (3) 96 Gal Carts S 15.21 $ 1.60 $ 3.46 S 20.27 $ 19.90 1.8%
21 Residential - (3) 35 Gal Carts-Low Generator $ 13.47 S 1.41 $ 3.46 S 18.34 $ 18.03 1.7%
22 Commercial -1 3yd bin picked up 1 time/week $ 78.03 S 8.19 $ 18.54 S 104.76 $102.92 1.8%
23 Roll Off Haul (Disposal is pass through) $ 189,51 S 19.89 $ 209.41 $205.16 2.1%
(1) Consumer price index - All Urban Consumers, San Diego, CA All Items (CUURA424SAO) as of December 31 prior to July 1st
when the rate change will take effect.
Change will be between 0% and 5% max.
(2) Lease is adjusted annually by the same percentage rate adjustment WM receives under its franchise collection agreement.
EXHIBIT 3
PERFORMANCE BOND
Bond No. LB0^-Q561-TX
Effective Date: Q6/Q1/2Q03
PERMIT BOND
Ihis bond ^IBOS-OSei-IX replaces and supersedes bond #8150-37-05 effective 06/01/2003.
KNOW ALL MEN BY THESE PRESENTS, that we Coast Waste tfamgement, Inc.
as Principal anii^^^^^^^ (Guaranty Iisurance Gaiyary of Venagp^Qrporation authorized to
transact gea^eral surety business in the State of California, as Surety, are held and finnly
bound unto the nF.PARTMENT CW PUBLIC WORKsS, CITY QF CARLSBAD,
CALIFORNIA, in the penal sum of ONF. MILLION & 00/100 dollars ($1,090,000.00)
for payment of which well and truly to be made we bind ourselves, our heu:s,
administrators, successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the above bounden Principal has applied to the Director, Department of
PubUc Works, City of Carlsbad. Califoaua, for a pennit to collect or transport garbage or
rubbish and tenders this bond to comply with the provisions of Section of Or<Jinance No.
6045 & 6046. *
NOW THEREFORE, IF THE ABOVE BOUNDEN principal shall weU and truly
comply with Ordinance No. 6045 & 6046 then this bond shall be null and void; otiierwise
to ^majfilifi^fiill'SijrGe-arf effect. •
PROVIDED, HOWEVER, that the Surety herein shall have the right to withdraw as
Surety from this bond and may do so by giving the said Principal and the Department of
Public Worics of the City of Carlsbad of the sixty (60) days written notice to that effect,
and at the end of said sixty days period of notice, the liabiUty of thc Surety except as to
any UabiUties or indebtedness aheady incuired or accmed, shall cease, and said bond
shaU thereupon tenninate and be of no more force and effect.
IT IS FURTHER PROVIDED, that the aggregate liabiUty of the Surety hereunder shall
not exceed the penal sum of this bond.
IN WITNESS WHEREOF, the Principal and Surety have hereto set their signatures this
23rd day of Way 20.03, •
Coast Waste flanagement. Inc.
5960 El Camino Real
Carlsbad, CA 92008
/jycque'lin& Kirfc, Attomey-3
tfettlonal Guaranty Insurance "
Pruicipal
By —
Sandra R, Parker, Attorney-in-fact
POLICYHOLDER DISCLOSURE STATEMENT
UNDER:
TERRORISM RISK INSUKy»(CE ACT OF 2002
lu accordance with the Terrorism Risk Insurance Act of 2002 {the '*Acf'), we are
providing this disclosure aotice for bonds for which National Guaranty Insurance
Company of Vermont is the surety and for all closinre/post-closure policies for which
National Guaranty Insurance Company of Vermont is the insurer. "Terrorism" is defmed
in the Act as an act certified by the Secretary of the Treasury (i) to be an act of terrorisra,
(U) to be a violent act or an act that is dangerous to (A) human Ufe; (B) property or (C)
infrastructure, (ni) to have resulted ui damage within the United States, or outside of the
United States in case of an air carrier or vessel or the premises of a U.S. mission and (iv)
to have been conunitted by an individual or individuals acting on behalf of any foreign
person or foreign interest, as part of an efifort to coerce the civilian population of the
United States or to influence the poUcy or affect the conduct of the United States
Govemment by coercion. You should read the Act for a complete description of its
cover^e. The Secretary's decision to certify or not to certify an event as an Act of
Terrorism and thus covered by this law is final and not subject to review. There is a SlOO
bilUon dollar annual cap on all losses resulting hrom Acts of Terrorism above which no
coverage wiU be provided under this poUcy Eind under the Act unless Congress makes
some other determination.
For your information, coverage provided by this poUcy for losses caused by an
Act of Terrorism niay be partially reimbursed by the Untied States under a formula
estabUshed by the Act. Under this formula the United Stales pays 90% of terrorism
losses covered by this law exceedtug a statutorily established deductible that must be met
by the insurer, and which deductible is based on a percentage of the insurer's direct
eamed premiums for the year preceding the Act of Terrorisra.
Acts of Terrorism are not excluded from any surety bonds or closure/post-closure
poUcies issued on your behalf We have allocated 0% of the premium paid and/or
payable to teaorism coverage.
EXHIBIT 4
City of Carlsbad Approved Parks & Facilities List for Waste Management
Dept. Cust.
No. Factiity Address
No. of
Trash
Bins
Size
No. of
Collections
per Week
No. of
Recycling
Bins
Size
No. of
Collections
per Week
No. of
Rotl-Off
Bins
No. of
Collections
per week
Arts 94642 Arts Office/Sculpture
Garden 2955 Elmwood Street 1 res. 1 2 96 gal 1 0 n/a
P&R 54774 Aviara Park 6425 Ambrosia 2 3 yrd 2 0 n/a n/a 0 n/a
P&R 66008 Aviara Park 6425 Ambrosia 0 n/a n/a 0 n/a n/a 1 on call
P&R 990 Calavera Community Center 2997 Glasgow Drive 1 3 yrd 3 1 3 yrd 2 0 n/a
P&R 990 Calavera Park 2997 Glasgow Drive 2 3 yrd 3 0 n/a n/a 1 on call
PEM 39480 Carlsbad Farmers Building 5815 El Camino Real 3 3 yrd 1 0 n/a n/a 0 n/a
PEM 2429 Carlsbad Hiring Center 5958 El Camino Real 1 3 yrd 1 0 n/a n/a 0 n/a
Library 203 Carlsbad Learning Center 3368 Eureka Place 1 3 yrd 2 1 3 yrd 1 0 n/a
P&R 40117 Carrillo Ranch 6200 Flying LC Lane 0 n/a n/a 0 n/a n/a 1 on call
P&R 41749 Carrillo Ranch 6200 Flying LC Lane 2 3 yrd 2 1 3 yrd 1 0 n/a
PEM
PEM
2446
19999
City Hall
City Hall
1200 Carlsbad Village
Drive
1200 Carlsbad Village
Drive
0
1
n/a
3 yrd
n/a
1
1
0
3 yrd
n/a
1
n/a
0
0
n/a
n/a
Library 65 Cole Library 1250 CaHsbad Viiiage Dr 1 3 yrd 3 1 3 yrd 2 0 n/a
Library 23597 Dove Library 1775 Dove Street 2 3 yrd 3 2 3 yrd 3 0 n/a
P&R 997 El Fuerte Park End of Urubu Street 1 3 yrd 1 0 n/a n/a 0 n/a
PEM 2427 Facilities Maintenance 405 Oak Avenue 3 3 yrd 2 0 n/a n/a 0 n/a
PEM 2562 Facilities Maintenance 405 Oak Avenue 0 n/a n/a 2 3 yrd 2 0 n/a
PEM 24478 Faraday Center 1635 Faraday Avenue 2 3 yrd 3 2 3 yrd 2 0 n/a
Fire 2436 Fire Station #1 1275 Carlsbad Village Dr 1 3 yrd 1 1 3 yrd 1 0 n/a
Fire 1012 Fire Station #2 1906 Arenal Road 1 3 yrd 1 2 96 gal 1 0 n/a
Fire 1009 Fire Station #3 3701 Catalina Drive 1 3 yrd 1 2 96 gal 1 0 n/a
Fire 1010 Fire Station #4 6885 Batiquitos Drive 1 3 yrd 1 2 96 gal 1 0 n/a
Fire 1011 Fire Station #5 2540 Orion Way 1 3 yrd 1 1 3 yrd 1 0 n/a
Fire 65914 Fire Station #6 7201 Rancho Santa Fe
Rd 1 3 yrd 1 2 96 gal 1 0 n/a
Fleet 2430 Fleet Maintenance 2480 Impala Drive 2 3 yrd 2 4 96 gal 3 0 n/a
P&R 988 Harding Community Center 3096 Harding Street 1 3 yrd 2 1 3 yrd 1 0 n/a
P&R 991 Holiday Park East 2076 Pio Pico Drive 3 3 yrd 3 0 n/a n/a 0 n/a
P&R 992 Holiday Park North 2076 Pio Pico Drive 2 3 yrd 3 0 n/a n/a 0 n/a
P&R 995 La Costa Canyon Park 3020 Pueblo Street 1 3 yrd 3 0 n/a n/a 0 n/a
P&R 995 La Costa Canyon Park 3020 Pueblo Street 0 n/a n/a 1 3 yrd as needed 0 n/a
Dept. Cust.
No. Facitity Address
No. of
Trash
Bins
Size
No. of
Collections
per Week
No. of
Recycling
Bins
Size
No. of
Collections
per Week
No. of
Roll-Off
Bins
No. of
Collections
per week
P&R 1329 Magee House/Park 258 Beech Avenue 1 3 yrd 2 2 96 gal 1 0 n/a
P&R 3510 Park Maintenance 1166 Carlsbad Village Dr 0 n/a n/a 0 n/a n/a 1 3
P&R 989 Park Maintenance 3349 Harding Street 2 3 yrd 2 0 n/a n/a 0 n/a
P&R 2766 Poinsettia Park 6600 Hidden Valley Rd 4 3 yrd 2 1 3 yrd 1 2 on call
Police 1014 Safety Center 2560 Orion Way 2 3 yrd 2 2 3 yrd 1 0 n/a
P&R 2425 Senior Center 799 Pine Avenue 2 3 yrd 2 2 3 yrd 1 0 n/a
P&R 996 Stagecoach Park 3420 Camino de los
Coches 5 3 yrd 2 1 3 yrd 1 0 n/a
P&R 993 Swim Complex 3401 Monroe Street 1 3 yrd 1 0 n/a n/a 0 n/a
Utilities 2431 Water District 5950 El Camino Real 2 3 yrd 2 0 n/a n/a 0 n/a
Utilities 26578 Water District 5950 El Camino Rea! 0 n/a n/a 1 3 yrd 2 0 n/a
Utilities 26578 Water District 5950 El Camino Real 0 n/a n/a 1 4 yrd 2 0 n/a
P&R Sp.
Evnt Zone 5 Park-Renovations Camino Hills/Faraday on call
P&R Sp.
Evnt Chase Field-Renovations 3349 Harding Street on call
P&R Sp.
Evnt
Stagecoach Park-
Renovations
3420 Camino de los
Coches on call
P&R Sp.
Evnt Poinsettia Park-Renovations 6600 Hidden Valley Rd on call
P&R Sp.
Evnt Calavera Park-Renovations 2997 Glasgow Drive on call
P&R Sp.
Evnt National Trails Event-Calavera Lake on call
P&R Sp.
Evnt Summer Beach Trash Oak St. South to Cannon
Park 4 on call
Arts Sp.
Evnt Jazz in the Park - multiple Various parks 2 3 yrd 1 2 3 yrd 1 on call
Housing Sp.
Evnt Halloween on Elm Downtown Carlsbad on call
Housing Sp.
Evnt Halloween on Elm Downtown Carlsbad on call
Housing Sp.
Evnt Explore the Worid TBD on call
P&R Sp.
Evnt Carisbad Triathalon Carlsbad Blvd on call
P&R Sp.
Evnt Carlsbad Triathalon 2525 El Camino Real on call
P&R Sp.
Evnt Eggstravaganza TBD on call
Safety TBD Safety Training Center TBD TBD
Parks TBD Alga Norte Park TBD TBD
Special Event requests to be coordinated through the Contract Administrator or their designee and Community & Municipal Relations Representative or
other designee (WM).
5 ro pro^i-Y ^--ifE-^'Ji
EXHIBIT 5
Bulky Waste
Acceptable Bulky Waste but limited to the followinQ items:
Barbeque (no propane tank)
Basketball Hoop (6 feet or less)
Bath Tub (no shower)
Bed Frame
Bikes
Bookshelf
Boxspring
Buffett
Bureau
Chair/Recliner
Closet Doors (2) non-glass
Couch/Sofa/Davenport
Desk
Dishwasher
Door
Dresser
Dryer
File Cabinet
Freezer
Garage Door Opener
Gym Set **
Hutch
Ladder (8 feet or less)
Lawn Mower (no gas)
Mattress
Mirrors **
Patio Furniture (one item)
Pool (kid's wading)
Refrigerator
Rugs
Sink
Spa Cover (cut in half)
Stove
Swing Set **
Table (dining, end, coffee)
Toilet
Washer
Water Heater (empty of water)
Weight Bench
Wheel barrow
Wood/Lumber (4'x18" bundles, maximum
4 bundles)
** REQUIRES SPECIAL HANDLING
Mirrors - Package between two pieces of cardboard, or completely tape the mirrored area with
heavy duty tape to prevent shattering.
Gym Set - Disassemble and bundle
Swing Set - Disassemble and bundle
Non Acceptable Items:
Auto Parts
Bath Tubs w/showers attached
Boats
Cabinets (bathroom, kitchen, etc.)
Camper Shell
Carpet
Construction & Demolition Debris
Electronic Waste
Fencing
Garage Door
Green Waste
Household Hazardous Waste
Piano
Plywood / Wallboard
Pool
Pool Table
Roofing
Satellite Dish
Shopping Cart
Shower Module
Sliding Glass Door
Spa
Tires
Tree Stump
Universal Waste (batteries/fluorescent
bulbs
Windows
EXHIBIT 6
County of San Diego Franchise City Rates as of July 1, 2011
Residential Rates:
City Rate to
Customer
Franchise
Fees AB939 Storm
Water HHW Net Fees to
Hauler
Carlsbad $ 18.87 S 1.15 $ 0.31 $ 3.46 $ -$ 13.95
National City $ 16.64 s 1.50 $ 0.50 $ -$ -$ 14.64
Escondido $ 17.91 $ 1.72 $ 0.21 $ -$ 0.52 $ 15.46
Oceanside S 19.44 $ 3.14 $ -$ 0.64 s -$ 15.66
San Marcos s 20.39 s 1.41 $ 0.53 $ 2.18 s -$ 16.27
Lemon Grove $ 19.77 $ 3.16 $ 0.19 $ -$ -S 16.42
Coronado $ 17.67 $ -$ 1.24 $ -$ -S 16.43
Santee $ 19.30 $ 2.08 $ 0.44 $ -$ -s 16.77
Imperial Beach $ 26.37 $ 9.49 $ -$ -$ -s 16.88
Poway $ 23.76 s 2.01 $ 1.20 $ 3.65 $ -s 16.90
El Cajon $ 20.65 $ 3.10 $ 0.61 s -$ -s 16.94
La IVIesa s 18.42 $ 0.71 s 0.62 s -s 0.11 $ 16.98
Del Mar s 18.91 $ 1.61 s 0.28 s -s -$ 17.02
Chula Vista s 20.00 $ 1.90 s 1.00 s -s -$ 17.10
Vista $ 19.22 $ 1.54 s 0.07 s -$ -$ 17.61
Encinitas s 18.77 s 0.93 s 0.21 $ -s -$ 17.63
Solana Beach s 22.88 s 1.52 s -s 2.64 s -$ 18.72
Commerciai Rates:
City Rate to
Customer
Franchise
Fees AB939 Storm
Water HHW Net Fees to
Hauter
Carlsbad $ 98.85 $ 6.02 $ 1.61 $ 18.54 $ -S 72.68
Oceanside $ 94.77 $ 15.32 $ -s 3.16 $ -S 76.29
Chula Vista S 95.84 $ 9.11 $ 4.79 s -$ -S 81.94
Escondido S 96.29 $ 9.56 $ 0.21 s -$ 0.52 $ 86.00
Santee $ 99.00 $ 10.69 $ 2.27 s -$ -S 86.04
San Marcos S 104.53 $ 7.54 $ -s 10.22 s -$ 86.77
El Cajon S 107.27 $ 16.09 s 3.17 s -s -$ 88.01
Solana Beach S 107.38 S 7.68 s 1.09 s 10.25 s -$ 88.36
Encinitas S 93.90 S 4.68 s 0.33 s -s -$ 88.89
La Mesa $ 97.32 s 3.70 s 4.12 $ -$ 0.59 $ 88.91
Lemon Grove S 100.28 s 10.03 s 1.02 $ -s -S 89.23
Imperial Beach S 141.05 s 50.78 $ -$ -$ -s 90.27
Poway $ 131.90 $ 10.20 $
•
$ 29.90 $ -s 91.80
National City $ 104.75 $ 9.43 $ 3.02 $ -s -s 92.30
Del Mar $ 104.05 $ 8.84 $ 1.56 $ -$ -s 93.65
Vista $ 103.93 $ 8.31 $ -$ -$ -s 95.62
Coronado $ 102.99 $ -s 7.21 $ -s -s 95.78
fXI-ti6rr' fry /)&r^ft/?le/JT
EXHIBIT 7
Profit Margin - Calculation Example
WASTE MANAGEMENT
Allocated Income Statement-Carlsbad
For the Period Ending December 31, 2010
Revenues
Sales-Commercial
Sales-Residential
Sales-Industrial
Recycling Material Sales
Other Revenue
Total Revenues
6,247,443
5,586,174
1,946,594
1,121,878
30,296
Pass-Through
Expenses Allowable Expenses
14,932,385
Operating Expenses
Landfill Disposal $ 4,209,505
Franchise Fees $ 1,296,956
Salaries and Wages S 2,121,315
Insurance and Benefits $ 410,414
Payroll Taxes S 162,541
Trucks- Fuel and Environment s 692,096
Trucks-Insurance and Claims s 114,211
Trucks-Depreciation s 617,839
Trucks-Maintenance and Supplies s 820,284
Containers-Depreciation s 335,386
Ops Support-Labor $ 583,665
Ops Support - Rent at PTS s 180,000
Ops Support-Building and Equip s 279,693
)tal Operating Expense $ 11,823,905
4,209,505
1,296,956
180,000
5,686,461 6,137,444
Sales, General and Administrative
Local General and Administrative $ 21,000
Market Area Support $ 1,415,911
Group Support $ 63,749
Corporate Support _S 405,081
Total General and Administrative $ 1,905,741 1,905,741
Other Expenses
internet Expense
Other Expenses
74,629
Total Other Expenses $ 74,629 $ 74,629
TOTAL EXPENSES $ 13,804,275 $ 8,117,814
EARNINGS BEFORE TAX $ 1,128,110 $ 1,128,110
Profit Margin Percentage 13.90%
CHARTIS SPECIALTY INSURANCE COMPANY
NAIC Number: 26883 SLA Number: 1389
State of Domicile: IL State Dept. of Insurance:www.state.il.us/ins/default.htm
NAIC Group Number: 12 NAIC Group Name: AMERICAN INTERNATIONAL
GROUP
Date Incorporated: 2/5/1973 Date Business
Commenced:
7/20/1973
Principal Place of
Business:
175 Water Street
18th Floor
New York, NY
10038
Mailing Address: 175 Water Street
18th Floor
New York, NY 10038
Telephone: 212-770-7000 Facsimile: 212-458-7083
Approval Date: 6/30/1995 Company Web Address:www.chartisinsurance.com
Agent for Service of
Process:Ms. KAREN E. HARRIS
CORPORATION SERVICE COMPANY
DBA: CSC-LAWYERS INCORPORATING SERVICE 2710 Gateway Oaks Drive,
Suite 150N
Sacramento, CA 95833-3505
GENERAL TEL: (800) 927-9801
GENERAL FAX: (916) 641-5151
Contact Broker:Mr. HANK HALDEMAN
Executive Vice President
GERALD J. SULLIVAN & ASSOCIATES INC., INSURANCE BROKERS
800 W. 6TH ST. #1800
LOS ANGELES, CA 90017
GENERAL TEL: (213) 626-1000
GENERAL FAX: (213) 489-3286
Page 1 of 1Company Detail
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