HomeMy WebLinkAboutCR&R Franchise Agreement 06-09-1992_Redacted v
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REVISED 06/18/92
AGREEMENT BETWEEN THE CITY OF LAKE ELSINORE AND CR&R INCORPORATED, DBA LAKE
ELSINORE ENVIRONMENTAL, FOR THE COLLECTION, TRANSPORTATION, J.ZC- CLING,
COMPOSTING, AND DISPOSAL OF SOLID WASTE, RECYCLABLES, COMPO TA4n S, YARD WASTE,
CONSTRUCTION DEBRI, TEMPORARY BINS, AND ROLL-OFF BIN SERVIC:ES.,
This Franchise Agreement ("Franchise Agreement") is entered into this 9th day
of June 1992 , by and between the City of Lake Elsinore ("City") and CE;Ax111,
Incorporated, DBA Lake Elsinore Environmental, ("Grantee") , for the ex,: U�Ave
collection, transportation, recycling, composting, and disposal of solid waste,
recyclables, compostables, yard waste, construction debris, temporary bins, and
roll-off services within residential, industrial, and commercial areas of the
City.
RECITALS
WHEREAS, the Legislature of the State of California, by enactment of the
California Integrated Waste Management Act of 1989 ("AB93911) , has declared that
it is within the public interest to authorize and require local agencies to
make adequate provisions for the disposal of solid waste and for recycling
within their jurisdictions; and
WHEREAS, pursuant to California Public Resources Code Section 40059 (a) (1) , the
City Council of the City of Lake Elsinore ("City") has determined that the
public health, safety, and well-being require that an exclusive franchise be
awarde� . 11.,3 a qualified enterprise for the collection, transportation,
recycl : r1, composting, and disposal of solid waste, recyclables, compo� tables,
yard waste, temporary bins and roll-off services in residential, industrial,
and commercial areas in the City of Lake Elsinore; and
WHEREAS, the City Council of the City of Lake Elsinore deg:?a.:,-cis its intention
of maintaining reasonable rates for the service provided u..a,rr this Agreement.
WHEREAS, this Agreement supersedes all other agreements for such services
within the City.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
SECTION I. GRANT OF COMMERCIAL, RESIDENTIAL, CONSTRUCTION, INDUSTRIAL,
AND TEMPORARY BIN EXCLUSIVE FRANCHISE
This Franchise Agreement grants an exclusive franchise as provided herein and
pursuant to the Lake Elsinore Municipal Code and California Public Resources
Code Section 40059 (a) (1) to CR&R Incorporated, DBA Lake Elsinore Environmental,
for the collection, transportation, recycling, composting, and disposal of
solid waste, recyclables, compostables, yard waste, construction debris,
temporary bins, and roll-off bin service in commercial. and industrial
("commercial") and residential and multifamily ("residential") areas within the
City of Lake Elsinore. Grantee shall be considered the "authorized recycling
CUNTRACT/AGREEMBT # 844
agent" under AB939 . This right extends to any territory annexed to the City
except to the extent that exercise of such a right would be unlawful or
interfere with an existing agreement.
SECTION II. DEFINITIONS
Wheneve;t- °ax°,r t arm used in this Franchise Agreement has been defined by the Lake
Elsinore Kunlcipal Code or Division 30, Part 1, Chapter 2 of the California
Public; Code, the defin.i; tuns in the Municipal Code or Public
Ccdr.: shall apply unless the term is otherwise defined in this
A. AB93S'
"AB939" shall mean the California Integrated Waste Management Act of 19SI1, a,nd
the regulations thereunder as those may be amended from time to time .
B. Bins
"Bins" noea.ns those containers provided by Grantee for commercial, in_dul;,trial,
constrilction, and multi-family residential uses. Bins are of two types^ i .
Bins (usually 3 cubic yards in size) which are picked up by refuse. trucks ?� ,r
means of front loading apparatus; and (ii) Roil-off Bins (usually 1 cubic,
yards in size) which are picked up by trucks using rear loading wiiickles onto
=lils.
C. City Limits
"C tfi,), Limits" means the boundaries of the City together with all amendments and
changes thereto, which boundaries are shown by maps incorporated herein ct
reterence and which are on file in the office of the City Clerk of the City
Council.
D. Grantee
"Grantee" means CR&R Incorporated, DBA Lake Elsinore Environmental, the entity
granted the Franchise pursuant to this Franchise Agreement.
E. Special Wastes
"Special Wastes" shall mean all the items and materials which are set forth on
Exhibit "B" , "Special Wastes".
SECTION III. ACCEPTANCE; WAIVER
Grantee agrees to be bound by and comply with all the requirements of this
Franchise Agreement, as well as any and all applicable local, state, and
federal laws and regulations as they are existing now and as they may be
amended from time to time. Grantee waives Grantee's right to challenge the
terms of this Franchise Agreement under Federal, State or local law, or
administrative regulation, as such laws and regulations exist as of the date of
execution of this Agreement and as they may be amended.
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SECTION IV. FRANCHISE AREA
A. Franchise Area Defined
The Franchise Area granted by this Franchise Agreement shall be all
residential, commercial, industrial, and construction premises. As provided
below, the Franchise Area may be changed by annexation.
B. Annexation Covered by Existing Franchise
Territory annexed to the City that is covered by an existing solid waste or
construction debris permit, license, agreement, or franchise granted by another
public entity may continue to be served by the same grantee for the balance of
the term of its permit, license, agreement, or franchise, subject to the
provisions of this Franchise Agreement.
SECTION V. SERVICES PROVIDED BY GRANTEE
A. General
Grantee shall provide the collection, transportation, recycling, composting,
and disposal of solid waste, recyclables compostables, yard waste, construction
debris, temporary bins, and roll-off bin services within the Franchise Area in
accordance with the terms of this Franchise Agreement. Grantee shall
coordinate routes with the City of Lake Elsinore.
B. Single Family Residential
Grantee shall provide the same level of service set oat aaerein but without
automated pickup or pickup of recyclables during t1he interim period. It is
understood that effective January 1, 1993 full implamentation of automated
pickup and the appropriate recycling and composting program shall commence.
1. Weekly Service
once each week before 6: 00 P.M. and after 6: 00 A.M. Grantee shall collect the
solid waste, compostables, and recyclables (except bulky items and household
hazardous waste) which have been placed, kept, or accumulated in containers at
single family residences that are billed directly by the Grantee within the
Franchise Area and placed at curbside prior to Grantee's normal weekly
collection time. All solid waste, compostables, yard waste, and recyclables
must be placed within containers curbside or in alleys without obstructions so
as to permit collection, except for actual bin/barrel enclosures.
2 . Grantee shall clean-up any refuse spilled or dropped around containers,
whether or not spilled by Grantee. Notwithstanding, the additional can rate
shall apply where additional capacity is needed on a regular basis.
3 . Grantee shall provide special manual carry-out services for those
residents determined to have difficulty doing so themselves, due to physical
disabilities and/or the configuration of their property. Grantee shall not
receive special payment for this service. However, in the event such service
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is requested by an otherwise capable resident solely for the convenience of
such resident, Grantee shall retain the right to negotiate with such resident
an additional charge.
4. Standard residential service shall include providing, maintaining and
replacing three (3) 60-gallon watertight containers equipped with lid and
wheels per residence which meet the minimum requirements set out in Exhibit "A"
and which shall be in place by January 1, 1993 .
5. Grantee shall notify customers in advance in writing of the acceptable
contents of each container and shall notify customers of any change in that
system. In general, waste shall be separated and disposed of as follows:
BLUE CONTAINER:
Glass Containers
Cans (aluminum/tin)
Newspaper
Cardboard
Junk Mail
Phone Books
Waste Paper
P.E.T. Plastic
H. D.P.E. Plastic
Other Metals
Cartons (cereal boxes, shoe boxes, etc. )
Film Plastic
GREEN CONTAINER:
Grass Clippings
Leaves
Twigs
Tree Trimmings
Weeds
Pallets
Lumber
Manure
BLACK CONTAINER:
Refuse
All other solid waste
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C. Semi-Annual and on-Call Bulky Household Item Pickup
1. At its expense, twice per year, at those times requested by City, Grantee
shall provide up to ten (10) 40 Cubic yard roll-off bins at locations
determined by City as part of any clean up campaign and shall dispose of such
items at the appropriate facility. City shall not be required to pay landfill
costs. Grantee shall adjust the number of containers by one for every increase
of 4, 000 to the City's population.
2 . Grant^,7 also shall provide on-call collection of bulky household items at
no additioi°,-a, charge within no more than seven (7) days after an oral request.
This is li ;_' -F: :3 to two (2) items per pickup and two (2) pickups annually;
thereafter, there shall be a charge as set out in Exhibit licit .
3 . As used herein, "bulky household items" includes but is not limited to
water heaters, refrigerators, washers, dryers, and other appliances, furniture,
and mattresses as agreed to by the City and Grantee.
4 . Grantee shall use its best efforts to recycle all items collected under
this Subsection.
D. Household Hazardous Round-up
1. Semiannually, on dates designated by City as "Residential Household
Hazardous Waste Roundup Day, " Grantee shall conduct a residential household
hazardous waste roundup at a central location designated by the City. Grantee
shall accept only those non-permit required household hazardous wastes that are
all recyclable; e.g. (to date) , waste oil, antifreeze, and lead/acid batteries.
Other types of waste shall be collected as allowed by changes in law and
regulation. Grantee agrees to prepare all applications and manifests and to
obtain all necessary approvals.
2 . Grantee shall pay disposal and transportation fees which shall then be
included as a factor in any rate increase. City shall be provided evidence of
such costs.
a Cxantee shall coordinate with the County of Riverside's Mobile Household
Hazare4aus Waste Collection Program designed to collect not only non-permit
:r auir-ad household hazardous wastes but also permit required household
xu,.iardous wastes, e.g. , pesticides, herbicides, oil/latex/water base paint,
etc. The County and Grantee roundups shall be coordinated in an effort to
provide all residents with non-permit required roundups semiannually and permit
required roundups semiannually.
4 . Grantee shall produce, keep current, and provide public education
materials specifically outlining the bulky household item pickups and household
hazardous waste roundups.
E. Commercial, Industrial, and Multi-Family Residential
1. Multi-Family Weekly Service
Not less often than once per week, and more frequently if required to handle
the waste stream and insure the health and safety of the premises where the
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bins are located, Grantee shall collect the solid waste (including bulky items
which have been placed in a closed bin) , yard waste, compostables, and
recyclables (except household hazardous waste) which have been placed for
collection in solid waste or recycling bins. Grantee shall provide maintain
and replace three (3) cubic yard watertight painted steel bins with close-
fitting plastic lids as required.
2 . Multi-Family Bulky Household Item and Household Hazardous Waste Services
Grantee shall provide bulky item services to multi-family residences as
described in V(C) above; however, special consideration shall be provided by
Grantee for those bulky items that are impractical and unreasonable to place in
a bin. Grantee shall coordinate with individual property managers Gf multi-
family residences to effect the bulky item services set out in th .4 section to
the respective residents of the complex. The same household hazardius waste
services provided, pursuant to Section V above for container service
residences, shall be made available to all multi-family residents in the
Franchise Area.
3 . Commercial and Industrial Weekly Service
Not less often than once per week, and more frequently if required to handle
the waste stream and protect the health and safety of the premises where the
bins are located, Grantee shall collect the solid waste, compostables, yard
waste and recyclables which have been placed for collection in solid waste
bins. only bulky household items placed in bins shall be picked up and there
shall be no separate commercial and industrial bulky item pick up.
F. Grantee shall use its best efforts to recycle all items collected under
this Subsection.
G. Construction and Temporary Bin/Roll-off Services
Grantee shall provide any required construction and temporary bin/roil-off
services using rates reflected in Exhibit "C".
H. Items not in Containers Unacceptable for Pick-up
Bulky items, yard waste in bundles or other items not in containers which do
not meet the size or other requirements of Lake Elsinore Municipal Code and
which cannot be collected by Grantee under Sections B and C shall be tagged
with a 211x6" tag stating the Grantee's name, address, telephone number, and the
reason for noncollection. Grantee shall provide such tags at its cost and
shall maintain a record of such tags. If the reason for noncollection has not
been remedied by the next regularly scheduled pickup, the Grantee shall notify
City of the problem.
J. Collection and Street Sweeping on Holid11 )r with Impediments
If the day of collection on any given route falls on a holiday observed by the
landfill or other lawful disposal site to which refuse or debris collected
within the Franchise Area is taken for disposal, or recycling facility to which
recyclables are taken, Grantee shall provide collection services for such route
on the workday next following such Holiday and shall not provide collection
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services on such Holiday, except that Grantee shall never provide collection on
New Year's Day, Thanksgiving Day, Christmas Day, July 4th, Labor Day and
Memorial Day (Saturday is to be specifically designated herein as a regular
work day) . Grantee shall provide service despite impediments, including but
not limited to weather, street repair, or illegally parked vehicles.
K. Street Sweeping
Grantee shall r ,de all labor, materials, equipment, and permits required to
conduct public :: et sweeping services in accordance with accepted standards
for municipal street cleaning. The term "street" shall mean the paved area
between the normal curb line of a roadway, whether an actual curb line exists
or not. It does not include sidewalks, areas adjacent to the roadway, or
parking lots other than the parking lots specified below. The term debris
shall mean all materials noon-ally picked up by a mechanical sweeper, such as
sand, glass, paper, car,; : leaves, and other materials. Failure to
provide efficient and ;v°,< 't' street sweeping services shall be considered as
a material breach of th;4:' _ e€ a�ise Agreement.
1. Sweeping Service
Grantee shall sweep and remove all debris from all commercial, industrial, and
residential public streets including all curbs and medians, and City public
parking lots owned and maintained by the City in the Franchise Area and future
areas obtained through annexation on a weekly basis. Residential streets shall
be swept on the day after that area's designated refuse collection day after
all solid waste, recycling, and composting containers in the area have been
serviced.
2 . Frequency of service to be as follows:
Downtown - 8 times per month.
Downtown Residential - 2 times per month.
Arterial/Collector - 4 times per month.
Residential - 2 times per month.
Alterations to the services as set out herein must be mutually agreed upon by
the grantee and the City.
3 . Through the public education program, residents shall be encouraged not to
park on residential streets on the day scheduled for solid waste curbside and
street sweeping services. City may, at City's sole option, implement
parking zones, with or without a violation system, on scheduled solid ,.`e
curbside and street sweeping days if the pubic education program is de
ineffective and the mechanized refuse collection and street sweeping services
are adversely affected.
3 . When necessary for proper cleaning, Grantee Shall mike more than one pass
on a street. Sweeping debris at a curb or median face to be a maximum depth of
four (4) inches at the curb or median face and twenty -(20) inches out from the
curb or median face. Grantee shall immediately r-e pondwheh notified by City
to re-sweep unsatisfactory areas.
5 . Sweeping residential streets is authorized between the hours of 6: 00 A.M.
and 6: 00 P.M. , and commercial and industrial streets and City public parking
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lots shall be swept between the hours of 12 : 01 A.M. and 7 :00 A.M. , Monday
through Saturday. Grantee shall notify the City Manager or designee when
Grantee is prevented from performing effective sweeping services due to
inclement weather. Sweeping services deferred due to inclement weather shall
be completed the next regularly scheduled date, weather permitting.
6. Grantee shall dispose of all debris collected by hauling the same to
legally established disposal areas.. T'''aY'i£ifer points for storage of debris must
be approved by the City Manager or. designee. Eery effort shall be taken by
Grantee to legally divert, as mulch as poasible, the debris destined for
disposal at a landfill. Grantee r$hall make arrangements with the local water
authority for use of fire hydrants to obtain we.ter necessary for the operation.
7. Additional sweeping services: -we.giiestad by City that are above and beyond
that which is described above, Grantee shall be paid by the City at a rate of
$65. 00 per hour.
8. Term of Str et. Sweeping Service
The term of the sweeping services shall be for five (5) years commencing on
January 1, 1993 and expiring on December 31, 1997 . Providing that all
performance criteria as illustrated in Section K are successfully accomplished,
the City will extend the term of the sweeping services for an additional five
(5) years, as well as every five (5) years thereafter. The City reserves the
right to perform said services with its own personnel and equipment or another
vendor at the end of any five (5) year period by 180 days written notice. The
term of the sweeping services shall in no way effect the term or balance of
term remaining on the primary contract which these sweeping services are apart
of.
L. Additional Services
The following additional services are hereby provided to City, free of charge,
by Grantee:
I. Grantee shall provide roll-off containers to any qualified legally
existing non-profit entity, e.g. , Boy Scouts, Girl's Clubs, churches, or City
free of charge, for the expressed public and commercial purpose of the group or
City collecting recyclables materials. Grantee shall pay these organizations
or City top dollar for their recyclables they collect and deposit in the roll-
off containers.
2 . Grantee shall clean out any overflowing bins or enclosures withal twenty-
four (24) hours of oral notification by City, free of charge. Grantee shall
work with the City Manager or designee in identifying continual problems in
customer bins or enclosures.
3 . Grantee shall C/il lect all Christmas trees on the first two consecutive
scheduled pickup days after New Year's Day. The trees shall be diverted from
the landfill, for deposit at a composting or greenwaste facility.
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4 . Upon execution of this Agreement, Grantee shall supply City, including the
Disaster Preparedness Committee, ambulance companies and police and fire
departments with a sufficient number of empty earthquake/catastrophe
preparedness i feet Haulaway storage containers, not to exceed ten (10)
containers.
5. Grantee shall include Lake Elsinore within its anti-drug campaign. All
bins and vehicles shall display an anti-drug logo, which has been mutually
approved by Grantee and City as to design and location.
6. Annually, Grantee shall provide at least one 10 or 40 cubic yard roll-off
bin (and more if necessary) to each of five official community events
designated by the City Council and shall pickup and divert or dispose of
contents of such bins at its expense, not to exceed fifteen (15) containers per
year.
7 . Grantee shall the) services listed in this Agreement to the
following locatians within the, 'ity at no charge to City or the entities
listed:
(a) City Fire Stations
(b) City Police 01;. zft o.ar;
(c) City Hall axed. City Perk
(d) Other City owxied .and operated facilities
8. Grantee shall sweep the areas utili*4-:-for the City's community events on
the day before and immediately after the ;* :nt at no additional cost to the
City. Grantee shall be directed by the City which events req :j.r • (&,ze
services.
M. Additional Wastes
Grantee may, but is not required to, provide such collection, transportation,
and disposal services for wastes not collected under this Agreement. Grantee
may provide such services under separate written contracts negotiated between
Grantee and the customer generating such wastes at a fee agreed to between
Grantee and customer.
SECTION VI. AB939 COMPLIANCE
A. AB939 Compliance Guarantee
Grantee guarantees to City that assuming City and Grantee agree on programs,
Grantee shall cause at least twenty-five percent (25%) by January 1, 1995, and
fifty percent (50%) by January 1, 2000, of the waste stre-�R, .1. ;aed under
this Franchise Agreement to be diverted from ultimate depa i:t ' n landfills or
transformation facilities in accordance with statutes in e.f:ecl- 4,�'sa the date of
execution of this Agreement, as those may be amended.
1. Grantee shall submit to City, within ninety (90) days after approval by
the City Council of the City's Source Reduction and Recycling Element (SRRE)
and Household Hazardous Waste Element (HHWE) , a program designed to implement
alternatives identified in the SRRE and HHWE, and shall make any subsequent
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adjustments required as a result of County and State review. With City's
approval, Grantee also shall develop and implement programs to meet new
requirements of AB939 or similar State and. Federal laws and regulations as
adopted. Grantee specifically shall impI4. rment such programs withit-i ninety (90)
days after approval by the Council.
2 . Grantee specifically shall implement the public education and awareness
portions of the SRRE and HHWE, at Grantee's expense, as well as initiate a
public education and awareness program in preparation for service start-up.
3 . Grantee shall provide City with written reports >: _,, form adequate to meet
City's :}reporting requirements to the California Integp ,0. -.d Waste Management
Board and to the County of Riverside throughout the term of this Franchise and
any extension thereof setting out its performance under this program in detail.
4 . The programs developed by Grantee shall be integrated with the balanced,
regional solid waste management system presently being developed by the Western
Riverside Council of Governments and the County of Riverside Waste Management
Department.
5 . Grantee shall dedicate a substantial portion of one full-time staff
poc,.1it'ion to monitoring AB939 compliance.
6. Assuming City has required by ordinance that private parties report
recyclables, yard waste or compostables diverted, Grantee shall assist City in
developing and shall administer a privatk:: -,"fi system. Such amounts
diverted shall be included in Grantee's . a' .. :a9 reports.
7 . All recyclables and compostables shall be delivered to facilities
permitted to receive them.
B. Composting
Grantee shall collect all yard waste and compostables set out for collection
and shall deliver all such materials to Recyc or another permitted composter as
approved by the City Manager. The process shall be acceptable to the
California Waste Management Board for diversion credits to the City.
SECTION VII. FRANCHISE FEES
A. Franchise fee of ten point one percent (10. 1%) of the Grantee's Gross
Revenues less landfill fees, shall be payable by Grantee to City thirty (30)
days after the close of each quarter of the Grantee's fiscal year.
SECTION VIII. LETTER OF CREDIT; INSURANCE COVERAGE
A. Cash Bond or Letter of Credit
Contemporaneously with the execution of this Franchise Agreement, the Grantee
shall deposit cash or an Irrevocable standby Letter of Credit (in a form
approved by the City Malitzger and City Attorney) in the sum of Twenty Thousand
Dollars ($20, 000. 00) in an interest bearing account in the name of the City,
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with interest being paid to CR&R. The cash deposit shall serve as security for
the faithful performance by Grantee of all the provisions and obligations of
this Franchise Agreement.
1. Within thirty (30) days following Grantee's failure to pay the City an
amount owing under this Franchise Agreement, the cash deposit may be accessed
by the City upon five (5) days prior written notice to the Grantee for purposes
including, but not limited to:
a. Failure of Grantee to pay the City sums due under the terms of the
Franchise Agreement.
b. Reimbursement of costs borne by the City to correct Franchise
Agreement violations not corrected by Grantee, after due notice.
C. Monetary remedies or damages assessed against Grantee due to breach
of the Franchise Agreement.
2 . The Grantee shall deposit a sum of money sufficient to restore the cash
bond to the original amount within the ten (10) days after notice from the City
that any amount has been withdrawn from the cash bond.
SECTION IX. CONTRACT TERM
This Agreement shall be for a term of ten (10) years, commencing on June 9,
1992 and expiring on June 8, 2002 ; provided, however, that commencing June 9,
1993 and each year thereafter, an automatic one (1) year extension shall be
applied so that the term of the Agreement shall remain ten (10) years. Should
either party wish to terminate the automatic renewal provision, such party
shall give the other prior written notice to that effect thirty (30) days prior
to June 9 of any year. Such notice shall terminate the automatic renewal
provision and the Agreement shall remain in effect only for the ten (10) year
balance of term.
SECTION X. FRANCHISE TRANSFERRABLE; CITY CONSENT REQUIRED
A. The franchise granted by this Franchise Agreement shall not be
transferred, sold, hypothecated, sublet, or assigned, nor shall any of the
rights or privileges herein be hypothecated, leased, assigned, sold, or
transferred, either in whole or in part, nor shall title thereto, either legal
or equitable, or any right, interest, or property therein, pass to or vest in
any person, except the Grantee, either by act of the Grantee or by operation of
law, without the prior written consent of the City expressed by Resolution.
Any attempt by Grantee to assign this franchise without the prior consent of
City shall be void.
B. If the Grantee attempts to transfer the franchise prior to obtaining City
consent, all of the profits or twenty-five percent (25%) of the Gross Revenues,
from the date of a� tempted transfer until the date of City consent, whichever
is greater, shah`. use returned to the customers on a pro rata basis.
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C. The City shall not unreasonably withhold its consent to a transfer of the
franchise granted by this Franchise Agreement.
D. City consent is required for any change in control of Grantee. "Change in
control" shall mean any sale, transfer, or acquisition of Grantee. Grantee is
a corporation, and any acquisition of more than ten percent (10%) of Grantee's
voting stock by a person, or group of persons acting in concert, who then owns
less than fifty percent (50%) of the voting stock, shall be deemed a change in
control.
E. Any change in control of the Grantee occurring without prior City approval
shall constitute a material breach of this Franchise Agreement.
SECTION XI. FRANCHISE TRANSFER; FEES
A. Any application for a franchise transfer shall be made in a manner
prescribed by the City Manager. The application shall i-nclude a transfer fee
in an amount to be set by City by a Resolution of the Council, to cover the
reasonable cost of all direct and indirect administrative expenses including
consultants and attorneys, necessary to adequately analyze the application and
to reimburse City for all direct and indirect expenses. Bills shall be
supported with evidence of the expense or cost incurred. The applicant shall
pay such bills within thirty (30) days of receipt.
B. The Grantee shall, within thirty (30) days after receipt from the city of
a written itemization, reimburse the City for its reasonable costs of granting
and transferring this Franchise Agr,,%e-.,;e::nt to the extent not recovered by
prepaid application fees, not to excaaid "Five Thousand Dollars ($5,000. 00) .
SECTION CI . EVENTS OF DEFAULT; IMPOSITION OF DAMAGES OR TERMINATION
A. The City reserves the right to terminate Grantee's franchise and/or impose
liquidated damages set out herein upon Grantee's failure to perform its
obligations under this Agreement, including but not limited to any of the
following events:
1. If the Grantee practices, or attempts to practice, any fraud or deceit
upon the City.
2. If the Grantee becomes insolvent, unable or unwilling to pay ,.Its del:ats, or
upon listing of an order for relief in favor of Grantee in a bankrl,�pUc:y
proceeding.
3 . If the Grantee fails to provide or maintain in full force andrAf'fqct. the
workers' compensation, liability, indemnification coverage, insurance, letter
of credit, or cash deposit as required by the Franchise Agreement.
4. If the Grantee willfully violates any orders or rulings of any regulalto
body having jurisdiction over the Grantee relative to this Franchise Agreem-:?nnt,
provided that the Grantee may contest any such orders or rulings by appropriate
proceedings conducted in good faith, in which case no breach of the franchise
shall be deemed to have occurred.
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5. If the Grantee ceases to provide collection services as required under
this Franchise Agreement over all or a substantial portion of its Franchise
Area for a period of seven (7) days or more, for any reason within the control
of the Grantee.
6. If the Grantee willfully fails to make any payments required under the
Franchise Agreement and/or refuses to provide City with required information,
reports, and/or test results in a timely manner as provided in the Franchise
Agreement.
7 . If Grantee violates the terms, conditions, or requirements of this
franchise, the California Integrated Waste Management Act of 1989, as it may be
amended from time to time, o6r <<-iy order, directive, rule, or regulation issued
thereunder, which violation_': ; : _;not corrected or remedied within the time set in
the written notice of the violation or, if the Grantee cannot reasonably
correct or remedy the breach within the time set forth in such notice, if the
Grantee should fail to commence to correct or remedy such violation within the
time set forth in such notice and diligently effect such correction or remedy
thereafter.
B. NOTICE OF DEFAULT AND TERMINATION
City shall give Grantee thirty (30) days written notice of a violation of any
of the terms and conditions of this Agreement. Grantee shall have that period
of time to remedy or begin to remedy the violation (if it cannot be fully
corrected within the thirty day period) and shall provide evidence of such
remedy satisfactory to the City Manager. In the event the violation has not
been so remedied, the City may terminate the Agreement effective immediately or
continue the franchise and impose liquidated damages.
C. LIQUIDATED DAMAGES
1. The City finds, and the Grantee agrees, that as of the time of the
execution of this Franchise, it is impractical, if not impossible to reasonably
ascertain the extent of damages which shall be incurred by the City as a result
of a material breach by Grantee of its obligations under this Franchise. The
factors relating to the impracticability of ascertaining damages include, but
are not limited to, the fact that: (i) substantial damage results to members
of the public who are denied services or denied quality or reliable service;
(ii) such breaches cause inconvenience, anxiety, frustration, and deprivation
of the benefits of the Franchise to individual members of the public for whose
benefit this Franchise exists, in subjective ways and in varying degrees of
intensity which are incapable of measurement in precise monetary terms; (ii,.I)
that services might be available at substantially lower costs than alterna•4"
services, and the monetary loss resulting from denial of services/denial o?'.
quality or reliable services is impossible to calculate in precise monetary
terms; and (IV) the termination of this Franchise for such breaches, and other
remedies are, at best, a means of future correction and not remedies which make
the public whole for past breaches.
't"1 . Accordingly, the City Council may, in its discretion, assess liquidated
damages not to exceed the sum of Fifteen Hundred Dollars ($1,500. 00) per day,
or each calendar day that service is not provided by Grantee in accordance
with this Franchise Agreement.
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3. The City finds, and the Grantee acknowledges and agrees, that the above
described liquidated damages provisions represent a reasonable sum in light of
all of the circumstances. Said liquidated damages sums shall be applicable to
each calendar day of delay during which Grantee has been found by the City
Council to be in material default pursuant to this Section. The Grantee shall
pay any liquidated damages assessed by the City Council within ten (10) days
after they are assessed. If they are not paid within the ten (10) day period,
the City may withdraw them from the security fund established by the cash bond
required by Section 8A, above, order the termination of the franchise granted
by this Franchise Agreement, or both.
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SECTION XIII. CITY'S ADDITIONAL REMEDIES
In addition to the remedies set forth in Section CI above, City shall have the
following rights:
A. To use, rent or lease equipment from Grantee for the purpose of
collecting, transporting, recycling, composting, and disposing of solid waste,
yard waste, recyclables, and compostables which Grantee otherwise is obligated
to do pursuant to this Franchise Agreement, for a period not to exceed six (6)
months. In the case of equipment not owned by Grantee, Granter shall assign to
City, to the extent Grantee is permitted to do so under the instruments
pursuant to which Grantee possesses such equipment, the right to possess the
equipment. If City exercises its rights under this Section, City shall pay to
Grantee the reasonable rental value of the equipment so taken for the period of
city's possession thereof, except as set out in Section XIV.
B. To license or contract with others to perform the services otherwise to be
performed by Grantee hereunder, or to perform such services itself; and
C. To obtain specific performance, damages and/or injunctive relief. Both
parties recognize and agree that in the event of a breach under the terms of
this Franchise Agreement by Grantee, City may suffer irreparable injury and
incalculable damages sufficient to support injunctive relief, to enforce the
provisions of this Franchise Agreement and to enjoin the breach thereof.
D. If Grantee is (1) the subject of labor unrest; (2) is unable to p= .° :,ts
bills as they become due or (3) is the subject of a filed civil or
proceeding, or the City Manager otherwise believes for these or other ::. .. ;;•;ons
that Grantee's ability to perform under this Agreement has been jeopardized,
City may demand additional, reasonable assurances of timely and proper
performance in a form acceptable to the City Manager.
SECTION XIV. RIGHTS OF CITY TO PERFORM DURING EMERGENCY
A. Should Grantee, for any reason whatsoever, except the occurrence or
existence of any of the events or conditions set forth in Section XXV, "Force
Majeure, " below, refuse or be unable to collect, transport, recycle, compost,
and dispose of solid waste, yard waste, compostable, and recyclables under this
Franchise Agreement for a period of more than seventy-two (72) hours, and if as
a result thereof, debris, refuse, compostables, recyclables, and solid waste
should accumulate in City to such an extent, in such a manner, or for such a
time that the City Manager should find that such accumulation endangers or
menaces the public health, safety, or welfare, then in such event City shall
have the right, upon twenty-four (24) hour prior written notice to Grantee,
during the period of such emergency, to temporarily take possession of any or
all equipment and facilities of Grantee prev-,iLous'y used in the collection,
transportation, recycling, composting, and d!.,spaaa1 of solid waste, yard waste,
compostables, and recyclables under this Franchise Agreement, and to use such
equipment and facilities to itself or by contract provide services pursuant to
this Franchise Agreement. Grantee agrees that in such event it shall fully
cooperate with City to effect such a transfer of possession for City's is:-e.
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B. Grantee agrees that, in such event, notwithstanding Section XIII, City mal-
take temporary possession of and use all of said equipment and facilities
without paying Grantee any rental or other charge, provided that City agrees
that, in such event, it assumes complete responsibility for the proper and
normal use of such equipment and facilities. City agrees that it shall return
to Grantee possession of all of the above mentioned property upon evidence
satisfactory to the City Manager .'slat Grantee is able to resume its normal
responsibilities under this Fra1A::�',.- ,3e Agreement.
SECTION XV. PRIVACY
A. Grantee shall not market or distribute, : :';.side the normal course of its
business, mailing lists with the names and a<.s_ cases of customers.
B. The rights accorded customers pursuant to this Section shall be in
addition to any other privacy right accorded customers pursuant to Federal or
State law.
SECTION XVI. REPC ` .AND ADVERSE I MATION
A. Annual Reports
Grantee shall submit a written annual report, in t, fo:rr u-. p_r-`ewt E by the City,
including, but not limited to, the following info=,a1L.pjn
1. A summary of the previous year's (or, in the: �a _ se Y,, report
year, the initial year's) activities including, Iwm -1;� �r " .k), services
begun or discontinued during the reporting year, -nz d tT�� xaA1%--Xa h1. Cf customers
for each class of service;
2 . A report, in a form satisfactory to the Cite on tho eley• progress in
meeting and maintaining its ability to meet its r ;.1*-; Xi g, along with
any recommended changes.
3 . A list of Grantee's officers and members of its board of directors.
4 . A list of stockholders or other equity investors holding five percent (5%)
or more of the voting interest in the Grantee and any subsidiaries unless
Grantee is a public corporation whose annual reports are publicly available.
B. Adverse Information
shall provide City two copies of all reports, or other material
ad .= :b °rely affecting the Franchise Agreement, submitted by Grantee to the EPA,
th:-, Alifornia Integrated Waste Management Board, or any other Federal or State
agency. Copies shall be submitted to City simultaneously with Grantee's filing
of such matters with said agencies. Grantee's routine correspondence to said
agencies need not be automatically submitted to City, but shall be made
available to City upon written request, as provided in Section XXV, below.
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1. The Grantee shall submit to City copies of all pleadings, applications,
notifications, communications, and documents of any kind, submitted by the
Grantee to, as well as copies of all decisions, correspondence, and actions by,
any Federal, State, and local courts, regulatory agencies, and other government
bodies relating specifically to Grantee's performance of services pursuant to
this Franchise Agreement.
2 . Grantee shall submit to the City such other information or reports in such
forms and at such times as the City may reasonably request or require.
3 . All reports and records required under this or any other section shall be
furnished at the sole expense of the Grantee.
4. A cope c ' each of Grantee's annual and other periodic public financial
reports and those of its parent gib:; =ar''. and affiliated corporation and
other entities, as the City reclua!;_.t--, shall be. submitted to the City within
thirty (30) days after receipt of a request,
C. Failure to Report
The refusal, failure, or neglect oI the G.ram.ee to file any of the reports
required, or the inclusion of any raterially false or misleading statement or
representation made knowingly by the Grantee ariisuch report, shall be deemed a
material breach of the Franchise Agreement, and shall subject the Grantee to
all remedies, legal or equitable, which are available to the City under the
Franchise Agreement or othez-wlse.
D. Grantee shall prepare reports in compliance with AB939 as required by of
this Agreement. In preparing such reports, Grantee shall include amounts of
solid waste diverted by private parties or those not a party to this Agreement
as set out in Section VI(A) (8) .
SECTION XVII. ANNUAL REVIEW OF PERFORMANCE AND QUALITY OF SERVICE
A. At City's sole option, within ninety (9)) days of the first anniversary of
the effective date of this Franchise Agreement, and each year thereafter
throughout the term of the Franchise Agreement, City may hold a public hearing
at which the Grantee shall be present and shall participate, to review the
Grantee's performance and quality of service (which shall include rate) . The
reports required by this Franchil.3e ?agreement regarding customer complaints
shall be utilized as the basis for review. In addition, any customer may
submit comments or complaints during the review meetings, either orally or in
writing, and these shall be considered.
B. To provide for technological, economic, and regulatory changes in waste
stream collection and recycling, to facilitate renewal procedures, to promote
competition in the refuse, and recycling industry, and to achieve a continuing,
advanced refuse collection, and recycling system. At City's sole option, on or
about the second anniversary date of the Franchise Agreement, City may include
in the public hearing on performance the refuse collection an(,'. )-z-::cycling system
and services. Subsequent system and services review hearings : > be scheduled
by City each two (2) years thereafter. Matters to be consideed shall include,
but not be limited to, the following:
17 -
1. All refuse collection, composting, and recycling services reported in
refuse collection, and recycling industry trade journals that are being
commonly provided on an operational basis, excluding tests and demonstrations,
to communities in the United States with comparable populations, that are not
prcA.d ed to City.
2 . Services provided, feasibility of providing new services, application of
new technologies, customer complaints, rights of privacy, amendments to the
Franchise Agreement, developments in the law, new initiatives for meeting or
exceeding AB939's goals and regulatory constraints.
3 . City and Grantee may each select additional topics for discussion at any
systems and services review hearing, also to include but not limited to the
additional services to the City, in accordance with any increase/decrease of
the population within the City limits.
C. Not later than sixty (60) days after the conclusion of the public hearing,
City shall issue a report. The report shall address the issues raised at the
hearing. City may require Grantee to provide such services within a reasonable
time, for reasonable rates and compensation. If noncompliance with the
Franchise is found, Grantee may be given a notice to comply.
SECTION XVIII. COMPENSATION
A. Rates: Grantee shall provide the services described in this Franchise
Agreement in accordance with the rates fixed by City from time to time, all as
described as set forth in Exhibit "C" , "Schedule of Rates" . Those rates shall
be modified and adjusted as set out in Exhibit "C".
B. Notice of Rate Increases: The Grantee shall provide the City and
customers, at least thirty (30) days in advance of the beginning of a billing
period, written notice of the anticipated implementation of changes in any of
its rates and charges which are not subject to regulation by the City. The
notice shall include a statement of the reasons for the rate increase.
C. Billing and Payment: Grantee shall bill directly all customers for all
services, whether regular or special. Grantee shall provide itemized bills,
distinctly showing charges for all services, including any charges for late
payment. The Grantee shall not designate that portion of a customer's bill
attributable to the franchise fee as a separate item on customers' bills.
Billings may be made monthly in advance for commercial and all bin service
customers, and may be made three (3) months in advance for residential
customers.
D. Delinquent Accounts: Grantee may discontinue service as set forth in this
Section, Persons who have not remitted required payments within thirty (30)
days after the date of billing shall be notified on forms approved by City.
Said forms shall contain a statement that services may be discontinued fifteen
(15) days from the date of notice if payment is not made before that time.
Upon payment of the delinquent, redelivery, or reinstatement fees, if
applicable, Grantee shall resume collection on the next regularly scheduled
collection day.
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E. Refunds: Grantee shall refund to each customer, on a pro rata basis, any
advance service payments made by such customer for service not provided when
service is discontinued by the customer.
F. Information to City: City may request that : ° '>�, - provide City with
mailing labels (or a disc therefore) at no cost t -
SECTION XIX. COLLECTION EQUIPMENT
A. Grantee, at its expense, shall provide an adequate number of vehicles and
equipment for the collection, transportation, recycling, and disposal of solid
waste, recyclables, yard waste, and compostables for which it is responsible
under this Fra joe Agreement. The equipment of Grantee used under this
Franchise Agre -t shall be available for inspection by City, but shall not be
subject to any= + it fees.
1. All vehicles used by Grantee under this Franchise Agreement shall be
registered with the Department of Motor Vehicles of the State of California,
set out above, and shall be kept clean and in good repair (including painting
and dirt removal) , shall be uniformly painted. A sufficient supply of parts
must be kept on hand to ensure timely and continuous fulfillment of this
Franchise Agreement. A list showing each vehicle so identified shall be
supplied to City and maintained current. If City finds that any truck or
equipment requires correction of defects, it shall not be used by Grantee in
the performance of the Agreement until corrected to the reasonable satisfaction
ois':;; .y. The Grantee shall cause it;� vizhicles to be inspected annually by the
Caf .�rnia Highway Patrol and the repa.rt of any and all California Highway
inspections (annual or otherwise-) shall be provided to City., at their
request, within one week thereafter.
All truck bodies used by Grantee shall be constructed of metal and shall be
watertight and leak-proof and so constructed as to prevent odors or falling,
leaking or spilling refuse unless special arrangements are approved by City for
certain areas. Each piece of equipment used by Grantee shall carry at all
times a broom and shovel to be used for the immediate removal of any spilled
material as well as fire extinguisher and first aid kit.
Each vehicle used within the City shall be washed at least once a week and
steam cleaned once a month and shall at no time awkatr e a nuisance or menace
to public welfare, health, and safety.
Vehicles proposed for use for refuse disposal, r 7,.' . V,i and composting
purposes shall be of size, weight, nature, and t " «: minimally intrusive
on the unity with respect to noise, emissions, maneuverability, safety, and
other taotors and to avoid or minimize pavement damage and wear and tear of the
streets 6r adjacent properties.
2. All bins and containers provided shall be three cubic yard. The three
; Ibic yard bins provided shall be steel bins with plastic lids. Contractor
s` �all maintain all containers and shall replace those damaged.
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3 . Grantee has agreed to name the specific organization that shall provide
all of the services under this Franchise Agreement as "LAKE ELSINORE
ENVIR010!E.NTAL. " This name shall be used for all correspondence, billing
statement- , directory listings, references, signs, vehicle identification, etc.
The words "Owned and Operated by CR&R Incorporated" are authorized to follow
this name.
4. "Lake Elsinore Environmental", a local or toll free telephone number, and
vehicle number shall be visibly displayed on all vehicles in letters and
figures no less than six inches (611) high. All refuse collection vehicles
shall display the words "Serving the City of Lake Elsinore" in letters no less
than eight inches (811) high.
5. All vehicles, high visibility bins, roll-offs, earthquake/catastrophe
preparedness containers, and the residential container designated as the refuse
container shall display CR&R's corporate Anti-Drug Campaign decal. The decal
on the residential refuse container shall be located on the side of the
container that will face the street when placed at curbside. The small
inscription area on the top of all of the residential containers shall be
labeled as follows: refuse container - "City of Lake Elsinore" , recycling
container - "Recycling - Everyone's Responsibility, " and the greenwastes
container - "Lake Elsinore's Commitment - 25% By 1995 - 50% By 2000. "
6. All containers shall be replaced upright at the same location and shall
not be damaged. Contractor shall immediately clean up any and all spills.
7. Grantee agrees to provide two street sweepers at the commencement of
biweekly service (every other week) . One heavy duty broom model for developing
difficult to sweep areas and one heavy duty regenerative air sweeper for
developed areas suitable for air sweeping.
SECTION XX. PUBLIC ACCESS TO GRANTEE
A. Office Hours
Grantee's shall maintain a toil free telephone number and office hours shall
be, at a minimum, from 8: 00 A.M. to 5: 00 P.M. daily, on all collection days. A
representative of Grantee shall be available during office hours for
communication with the public at Grantee's principal office. In the event that
normal business cannot be rectified over the telephone, a representative of
Grantee shall agree to meet with the public at a location agreeable to Grantee
and the public. Normal office hours telephone numbers shall either be a local
or toll free call. Grantee shall also maintain a local or toll free after
hours telephone number for use during other than normal business hours.
Grantee shall have a representative or answering service available at said
after-hours telephone number during all hours other than normal office hours.
Grantee shall have an emergency service vehicle available to respond to
complaints or calls.
B. Service Complaints
1. All customer complaints shall be directed to Grantee. Grantee shall
record all complaints received by mail, by telephone, or in person (including
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date, name, address of complainant, and �-%t :Xe of complaint) . Grantee agrees
to use its best efforts to resolve all curuplaints by close of business on the
same day on which such complaint is received if received prior to 10: 00 A.M.
and by the close of business on the next business day on which such complaint
is received if received after 10: 00 A.M. Service complaints are subject to the
provisions of Section XXI .
C. Government Liaison Person
The Grantee shall designate a "government liaison person" who shall be
responsible for working with the City Manager or the City Manager's designee to
resolve consumer complaints.
SECTION XXI. RESOLUTION OF UNRESOLVED CUSTOMER COMPLAINTS
A. The Grantee shall notify customers of this complaint resolution procedure
at the time customers apply for or are provided service, and annually
thereafter.
B. A customer dissatisfied with Grantee's decision regarding a complaint may
ask the City to review the complaint. To obtain this review, the customer must
request City review in writing within thirty (30) days of receipt of Grantee's
response to the Complaint, or within forty five (45) days of submitting the
complaint to the Grantee, if the Grantee has failed to respond to the
complaint. The City may extend th.�' time to request its review for good cause.
C. Before reviewing the complaint, the City Manager shall refer it once again
to the Grantee. If the Grantee fails to resolve the complaint within ten (10)
days, the City Manager shall review the customer's complaint and determine if
further action is warranted. The City Manager may request written statements
from the Grantee and customer, and/or oral presentations and may investigate
the complaint.
D. The City Manager shall determine if the cuc�tomer's complaint is justified,
and if so, what remedy, if any, shall be imposed. The remedy under this
Section shall be limited to a rebate of customer charges related to the period
of breach of any of the terms of this Franchise Agreement or a penalty of up to
one hundred dollars ($100 . 00) for any single event or series of related events,
or any actual damages.
E. The City Manager may delegate these duties to a designee. The decision of
the City Manager or his designee may be appealed to the City Council under
procedures determined by the Council. The decision of the City Council shall
be final.
F. Grantee shall maintain records listing the date and time of each consumer
complaint, and the complaining customer, describing the nature of the complaint
or request, and when and what action was taken by the Grantee to resolve the
complaint. All such records shall be maintained and shall be available for
inspection by City, as described in Section XXIV. Grantee shall prepare
monthly summaries of consumer complaints. The summaries shall be available to
the City Manager or the City Manager's designee.
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SECTION XXII. OWNERSHIP OF SOLID WASTE
Once solid waste, compostables, recyclables, and yard waste are placed for
collection by Grantee, ownership shall transfer to Grantee. Subject to
Grantee's duty to meet the source reduction and recycling goals which apply to
City, Grantee is hereby granted the right to retain, -recycle, compost, dispose
of, and otherwise use such solid waste placed fog o =.lection by Grantee,
compostables, recyclables, and yard waste, or an } r4a.;.•t thereof, in any lawful
fashion or for any lawful purpose desired by Grantee Grantee shall bear any
loss and shall have the right to retain any profit resulting from its
recycling, composting, disposal of, or use the solid waste, compostables,
recyclables, and yard waste which it collects. Solid waste, compostables,
recyclables, yard waste, or any part thereof, which is disposed of at a
disposal site or sit_ N (whether landfill, transformation facility, transfer
station, or material recovery facility) , shall become the property of the owner
or operator of the '
site or sites once deposited there by Grantee.
However, City, at its sole option, shall retain The right to require or
designate the transformation facility, transfer :station, material recovery
facility or other disposal or diversion facility to be used to retain, recycle,
compost, process, and dispose of solid waste, yard waste, recyclables, and
compostables collected under this Agreement. In this instance, Grantee shall
conduct a rate audit and recommend a rate adjustment.
SECTION XXIII. INDEMNIFICATION AND INSURANCE
A. Indemnification of City
Notwithstanding the provisions of Section 8 , Grantee agrees that it shall
protect, defend with counsel approved by City, indemnify, and hold harmless
City, its officers, employees, volunteers, and agents from and against any and
all losses, liabilities, fines, penalties, claims, damages, liabilities, or
judgments, including but not limited to attorneys fees, arising or alleged to
arise out of or resulting in any way from Grantee's exercise or failure to
perform under of this franchise, unless such claim is due to the sole
negligence or willful acts of the City, its officers, employees, agents, or
contractors, or from the City's grant of this franchise to Grantee. Subject to
the scope of this indemnification and upon demand of the City, made by and
through the City Attorney, the Grantee shall appear in and defend the City and
its officers, employees, and agents in any claims or actions, whether judicial,
administrative, or otherwise arising out of the exercise of the Franchise
Agreement.
B. Hazardous Substances Indemnification
Grantee shall indemnify, defend with counsel approved by City, protect and hold
harmless City, its officers, employees, agents, assigns, volunteers and any
successor or successors to City's interest from and against all claims, actual
damages (including but not limited to special and consequential damages) ,
natural resources damage, punitive damages, injuries, costs, response
remediation and removal costs, losses, demands, debts, liens, liabilities,
causes of action, suits, legal or administrative proceedings, interest, fines,
charges, penalties, and expenses (including but not limited to attorneys' and
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e,xp.e'.-t witness fees and costs incurred in connection with defending against any
of the foregoing or in enforcing this indemnity) of any kind whatsoever paid,
incurred or suffered by, or asserted against, City or its officers, employees,
agents, or Grantees arising from or attributable to any repair, cleanup or
detoxification, or preparation and implementation of any removal, remedial,
response, closure or other plan (regardless of whether undertaken due to
government?. .^.ction) concerning any hazardous substance or hazardous wastes at
any place Re Grantee stores or disposes of municipal solid waste or
constructio.>,�, rJebris pursuant to this Franchise Agreement. The foregoing
indemnity is Intend!eA to operate as an agreement pursuant to Section 107 (e) of
the Comprehensive Envi.ronmental Response, Compensation and Liability Act,
110ERCI2,05 , 42 U. S.C. Sek:tion 9607 (e) and California Health and Safety Code
Section 253641 , to insure, protect, hold harmless, and indemnify City from
liability.
C. AB939 Indemnification
Grantee agrees to protect, defend, with counsel approved by City, and indemnify
City against all fines or penalties imposed by the California Integrated Waste
Management Board in the event the source reduction and re:,.._ (goals or any
other requirement of AB939 are not met by City with respc<,'t- it-T irks waste stream
collected under this Franchise Agreement providing CR&R and at
fault.
D. Workers' Compensation Insurance
Grantee shall obtain and maintain in full force and effect throughout the
entire term of this Franchise Agreement full workers' compensation insurance in
accord with the provisions and requirements of the Labor Code, of the State of
California. Endorsements that implement the required coverage shall be filed
upon execution of this Agreement and maintained with the City Clerk throughout
the term of this Franchise Agreement. The policy providing coverage shall be
amended to provide that the insurance shall not be suspended, voided, canceled,
reduced in coverage or in limits except after thirty (30) days' prior written
notice by certified mail, return receipt requested, has been given to City.
E. Public Liability Insurance
Grantee shall obtain and maintain in full force and effect throughout the
entire term of this Franchise Agreement vehicle liability insurance occurrence
with a minimum limit of $5, 000, 000, a Broad Form Comprehensive General
Liability (occurrence) policy with a minimum limit of TEN MILLION DOLLARS
($10, 000,000. 00) aggregate an.d ONE MILLION DOLLARS ($1, 000, 000.00) per
occurrence for bodily injury anal property damage, with any self-insured
retention not exceeding two h:,a,-,dred thousand dollars ($200, 000. 00) per
occurrence. Said insurance shall protect Grantee. and City from any claim for
damages for bodily injury, including accidental death, as well as from any
claim for property damage which may arise- P-rom operations performed pursuant to
this Franchise Agreement, whether such or::r _;-.tions be by xrantee itself, or by
its agents, employees, officers, and/or a--;-_ 13rantees. C-rpies of the policies or
endorsements evidencing the above required insurance coverage shall be filed
with the City upon execution of the Agreement. All of the following
endorsements are required to be made a part of the insurance policies required
by this Section:
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1. "The City, its employees, officers, agents, and officers, are hereby added
as additions insureds as respects liability arising out of activities performed
by or on behalf of Grantee. "
2. "This policy shall be considered primary insurance as respects any other
valid and collectible insurance the City may possess including any self-insured
retention the City may have, and any other insurance the City does possess
shall be considered excess insurance and shall not contribute with it. "
3 . "This insurance shall act for each insured, as though a separate policy
had been written for each. This, however, shall not act to increase the limit
of liability of the insuring company. "
4 . "Thirty (30) days prior written notice by certified mail, return receipt
requested, shall be given to the City in the event of suspension, cancellation,
reduction in coverage or in limits, or non-renewal of this policy for whatever
reason. Such notice shall be sent to the City Clerk. "
The limits of such insurance coverage, and companies, shall be subject to
review and approval by the City Manager every year and may be increased at that
time to match the coverage provided by the City's own liability insurance
policy, if that is greater. The City shall be included as an additional named
insured on all policies and endorsements.
F. Modification
The insurance requirements provided here may be modified or waived in writing
bjr the City Council upon the request of Grantee, provided the City Council
determines such modification or waiver is in the best interests of City
considering all relevant factors, including the fact that the Grantee or its
parent may be self-insured up to a certain acceptable amount.
SECTION XXIV. GRANTEE'S BOOKS AND RECORDS; AUDITS
A. Grantee shall maintain all records relating to the services provided
hereunder, including, but not limited to, customer lists, billing records,
accounts payable records, maps, AB939 compliance records, and customer
complaints, for the full term of this Franchise Agreement, and an additional
period of not less than three (3) years, or any longer period required by law.
The City shall have the right, upon five (5) business days advance notice, to
inspect all maps, AB939 compliance records, customer complaints, and other like
materials of the Grantee which reasonably relate to Grantee's compliance with
the provisions of the Franchise Agreement. Such records shall be made
available to City at Grantee's regular place of business.
B. Should any examination or audit of Grantee's records reveal an
underpayment of any fee required under this Franchise Agreement, the amount of
such underpayment shall become due and payable to City not later than fifteen
(15) days after written notice of such underpayment is sent to Grantee by City.
Should an underpayment of more than three percent (3%) be discovered, Grantee
shall bear the entire cost of the audit with respect to franchise fees.
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SECTION XXV. GENERAL PROVISIONS
A. Force Majeure
Grantee shall not be in default under this Franchise Agree-ment in the event
that the services provided by the Grantee are temporarily internipted or
discontinued for any of the following reasons: riots, wars, sabotage, civil
disturbances, insurrections, explosion, natural disasters such as floods,
earthquakes, landslides, and fires, strikes, lockouts, and other labor
disturbances or other catastrophic events which are beyond the reasonable
control of Grantee. Other catastrophic events do not include the financial
inability of the Grantee to perform or failure of the Grantee to obtain any
necessary permits or licenses from other governmental agencies or the right to
use: the facilities of any public utility where such failure is due solely to
the acts or omissions of the Grantee. In the event a labor disturbance
interrupts services by Grantee required under this Franchise Agreement, City
may elect to exercise its rights under Sections CI, XIII and XIV of this
Agreement.
B. Independent Contractor
Grantee is an independent contractor and not an officer, agent, servant, or
employee of City. Grantee is solely responsible for the acts and omissions of
its officers, agents, employees, Grantees, and subgrantees, if any. Nothing in
this Franchise Agreement shall be construed as creating a partnership or joint
venture between City and Grantee. Neither Grantee nor its officers, employees,
agents, or subgrantees shall obtain any rights to retirement or other benefits
which accrue to City employees.
C. Pavement Damage
Grantee shall be solely responsible _"cr any extraordinary damage to driving
surfaces within the City, whether or s: t paved, resulting from vehicles
providing refuse collection services d -rectly attributable and at the location
of bins, roll-offs, and containers on public or private property.
D. Property Damage
Any physical damage caused by the negligent or willful acts or omissions of
employeor_ ,, Grantees, or subgrantees of the Grantee to private or public
property s1ial.'I. be repaired or replaced by Grantee within a reasonable time.
E. Riqht of Entry
Grantee shall have the right, until receipt of written notice revoking
permission to pass is delivered to Grantee, to enter or drive on any private
street, court, place, easement, or other private property for the purpose of
providing services for the collection, transportation, recycling, composting,
and disposal of solid waste, yard waste, compostables, and recyclables pursuant
to this Franchise Agreement.
F. Law to Govern; Venue
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The law of the State of California shall govern this Franchise Agreement. In
the event of litigation between the parties, venue in state trial courts shall
lie exclusively in the County of Riverside. In the event of litigation in a
U.S. District Court, exclusive venue shall lie in the Central District of
California.
G. Fees and Gratuities
Grantee shall not, nor shall it permit any agent, employee, or subgrantee
employed by it to, request, solicit, demand, or accept, either directly or
indirectly, any compensation or gratuity for temporary bin/roll-off services
and the collection, transportation, recycling, composting, and disposal of
solid waste, yard waste, compostables or recyclables otherwise required under
this Franchise Agreement.
H. Prior Agreements and Amendment
This Franchise Agreement is intended to carry out City`s obligations to comply
with the provisions of the California Integrated Waste Management Act of 1989
(11AB93911) , as it from time to time may be amended, and as implemented by
regulations of the California Integrated Waste Management Board
("Regulations") , as they from time to time may be amended. In the event that
AB939 or other State or Federal laws or regulations enacted after this
Franchise has been awarded, prevent or preclude compliance with one or more
provisions of this Franchise Agreement, such provisions of the Franchise shall
be modified or suspended as may be necessary to comply with such State or
Federal laws or ragula-ions. No other amendment of this Franchise Agreement
shall be valid unless in writing duly executed by the parties.
I. Compliance with Franchise Ordinance
Grantee shall comply with those provisions of the Lake Elsinore Municipal. Code
which are applicable, which is incorporated herein and with any and all
amendments to such applicably: provisions during the term of this Franchise
Agreement.
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i. Notices
All notices required or permitted to be given under this franchise shall be in
writing and shall be personally delivered or sent by telecopier (fax) , or
United States certified mail, postage prepaid, return receipt requested, and
addressed as follows:
To City: City of Lake Elsinore
130 S. Mainri� >a „
Lake Elsinore, 92530
Attention: !�raan-, 4recca, Director of Public Services
Telephone: 4r714:J 1674-3124
Telecopier: (' 1 ) 674-2392
To Grantee: eWK�je" Xllh orated
1:1M ',rn Avenue
St*molt, +Ca lifornia 90680
' Davidahrion
F(714) 826-9049
(714) 895-5702
o X .. -
Copy To: , E )On,ore Environmental
;2 �v:- kham Street
��:lifornia 92370
Attention: Ed Campos
Telephone: (714) 943-1991
Telecopier: (714) 657-5493
or to such other address as either party may from time to time designate by
notice to the other given in accordance with this Section. Notice shall be
deemed effective on the date personally served or, if mailed, three (3)
business days from the date such notice is deposited in the United States mail,
first class, postage prepaid.
K. Savings Clause and Entirety. If any provision of this Francli, [s
shall for any reason be held to be invalid or unenforceable, the
unenforceability of such provision shall not affect the validity t;
enforceability of any of the remaining provisions of this Franchiaiii
L. Exhibits Incorporated
Exhibits "A" through "D" are attached to and incorporated in this i""x, aZf :n ,'
r r
Agreement by reference.
Fil II11 f n Il ii i5a� ir0'11
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M. Counterparts
This Agreement may be executed in Counterparts.
WITNESS the execution of this Agreement on the day and year written above.
CITY LAKE WELSUNORE
Dated:
By:
May
OCiyCer
F RM.
l
1 r
CR&R I#CO P` RXTE
DBA AL
Dated:
By:
C 1 r R. a nen er
President
28 _
33CJXEDTJLE OF RATES
�.F. Pes de.rt2.al Rates
through December 31, 1992 : $ 11. 05 per month.
2. Residential rates through December 31, 1992 for hotels, motels, and
businesses which do not use bin service.
1-4 cans (32 gallon maximum) : $13. 30 per month
5-8 cans (32 gallon maximum) : $26. 60 per month
This type of service shall terminate December 31, 1992
3 . As of January 1, 1993 , Fully-automated Single Family Residential
Collection and Disposal, Refuse, Composting, and Recycling:
$12 .82 per month
4 . As of January 1, 1993 , Fully-automated Single Family Residential
Additional Refuse, Composting and Recycling Container
Monthly Per Container Rate: $ 5.00 per month
5. As of June 9, 1992 , Single Family Residential Additional Bulky Item Pickup
above the minimum of 2 per calendar year: $ 5.00 per pickup
two items per pickup
6. As of June 9, 1992 , Commercial, Industrial, and Multi-Family
Residential Refuse Monthly Bin Rates (one 3 cubic yard bin) with
following pickups per week:
1 x week $ 75. 66 4 x week $249.85 7 x week $437. 05
2 x week $125. 05 5 x week $312 . 25
3 x week $187 . 45 6 x week $374 . 65
7 . As of June 9, 1992, Commercial, Industrial, and Multi-Family
Residential Refuse Monthly Bin Rates (one 1-1/2 cubic yard bin) with
following pickups per week:
1 x week $ 55. 68 4 x week $200. 85 7 x week $351. 30
2 x week $100. 55 5 x week $251. 00
3 x week $150. 70 6 x week $301. 30
8 . Temporary 3 Cubic Yard Bin Rate:
$ 52 . 50 per pickup
9 . Redelivery and Reinstatement Rate:
$ 25. 00 per occurrence
10 . 40 cubic yard Roll-off Bin Rate:
$145. 00 + landfill fees
11. 10 cubic yard Roll-off/Lowboy Box Rate:
$145. 00 + landfill fees
All rates based on a $31.50/ton landfill fee.
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12 . ANNUAL CONSUMER PRICE INDEX ("CPI") AND TIPPING FEE ADJUSTMENT
The rates above shall be automatically adjusted to reflect changes in the
consumer price index and landfill/MRF fees. The CPI adjustment shall be made
annually and such adjustment shall be effective as of the first day of April of
each calendar year. The CPI adjustment shall be equal to the amount derived by
multiplying (a) the previous rate by (b) the percentage increase or decrease in
the Consumer Price Index for all urban consumers within the Los Angeles-
Anaheim-Riverside Metropolitan Areas during the prior calendar year, excluding
the housing component. The comparison shall be made for each March 1st during
the term hereof and shall be effective each April 1st. The first CPI
adjustment shall occur April, 1993 . The landfill tipping fee adjustment shall
be a pro-rata pass through of any tipping fee increase, and shall be effective
at the start of the first full billing period after the landfill tipping fee is
adjusted. As of the effective date of this Franchise Agreement, the landfill
tipping fee is $31. 50 per ton. The formulas for the annual CPI and landfill
tipping fee are as follows.
(a) Residential , paragraphs 1-4
(1) (current rate - landfill component ) x CPI
(b) Commercial, Multifamily, and industrial,
(1) (current rate - landfill component ) x CPI
(c) Where the price for a roll-off container does not include landfill
charges, any CPI increase, as set out above, shall be on 100% of the charge.
Otherwise, the commercial percentages shall apply.
The landfill tipping fee adjustment or any other disposal facility fee may be a
pro-rata pass through (based on weight) of any tipping fee increase, and shall
be effective at the start of the first full billing period after the landfill
tipping fee is adjusted. As of January 1, 1992, the landfill tipping fee is
$31. 50 per ton and there is no existing MRF or transfer station fees.
Residential - Landfill Pass Thru
(1) $0. 21 per $1. 00/ton landfill increase times current published residential
recycling (less greenwastes) diversion rate, e.g. , $8 . 00 landfill increase with
a 25% diversion rate would equal: $. 21 x 8 = $1. 68 x 25% = $ . 42 - $1. 68 =
$1.26 rate increase.
Commercial - Landfill Pass Thru
(2) $0. 91 per $1.00/ton landfill increase times current published
nonresidential recycling diversion rate less greenwastes, concrete, and
asphalt, e.g. , $8.00 landfill increase with a 25% diversion rate would equal:
$ . 91 x 8 = $7 . 28 x 25% = $1.82 - $7 . 28 = $5.46 rate increase.
Any CPI rate increase shall be confirmed, reviewed and approved in advance by
the City Manager.
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11. EXTRAORDINARY OR UNEXPECTED COSTS
In addition to, and not in lieu of, the annual CPI increase or decrease
described above, Grantee may also be granted rate increases or decreases in an
amount equal to Grantee's extraordinary increases or decreases in its costs.
The City Manager shall determine the application process for such extraordinary
cost increases or decreases. Such extraordinary cost increases or decreases
shall be subject to City Council approval. Such extraordinary increases or
decreases in its cost of collection shall include, by way of example and not by
way of limitation: (1) a change in the location of the landfill or other
lawful disposal sites to which the Grantee is required to transport solid waste
collected hereunder; and (2) changes in the local, State or Federal laws
governing temporary bin/roll-off services and collection, separation,
transportation, recycling, composting, or disposal of solid waste and
construction debris, (3) levied MRF fees to comply with AB939, and (4) the pro-
rata amount of transportation and disposal cost of operating a household
hazardous waste program shall be included by Grantee as an additional cost of
service to be included in future rate increases.
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EXHIBIT B
SPECIAL WASTES
Flammable waste
Containerized waste (e.g. , a drum, barrel, portable tank, box, pail, etc. )
Waste transported in a bulk, tanker
Liquid waste
Sewage sludge
Waste from a pollution control process
Residue and debris from the cleanup of a spill or release of chemical
substances, commercial products or any other special wastes
Contaminated soil , waste, residue, debris, and articles from the cleanup of a
site or facility formerly used for the generation, storage, treatment,
recycling, reclamation, or disposal of any other special wastes
Dead animals
Waste water
Explosive substances
Radioactive materials
Materials which have been exposed to highly infectious or contagious diseases
Hazardous materials
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EXHIBIT D
Gxante� shill retire the debt within 180 days be a7buy k for the Silver
Straet prop<wrty, by selling or applying for a conventional 1o, . 1 to relieve the
City of Lake Elsinore of its current financial obligations with the former
Grantee, Jess Rodriguez Disposal Company. Grantee's intentions are to move all
equipment, office staff, and maintenance procedures to their Perris facility,
therefore Grantee has no intended use for this property.
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