Cities Index.
Agenda

Anderson City Council
November 18, 2025

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Agenda
Meeting
November 18, 2025
Body
Anderson City Council
Pages
45
Original file
30.7 MB
Text extracted from the city's file for reading and search. Open the original on www.ci.anderson.ca.us. That file is the official record.

CITY COUNCIL AGENDA
November 18, 2025
REGULAR SESSION - 5;30 P,M,

ANDERSON CITY HALL
1887 Howard Street

PARTICIPATION BY PUBLIC IN MEETING
Please review the Agenda to determine if the subject you wish to discuss is scheduled for Council consideration. If it is on the Agenda, you will have an opportunity when that matter comes up for discussion to briefly address the Council.

If the subject is not on tonight's Agenda, please complete an Agenda Request Form (on Clerk's table) and present it to the City Council Clerk. You will have the opportunity to speak on the subject under Item 5.2. However, if the item is not on the Agenda, each speaker will be limited to one three (3) minute opportunity to speak, unless the City Council makes an exception due to special circumstances.

The Brown Act prohibits the Council from taking action on any item not placed on the printed Agenda in most cases.

The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting will be made available to members of the public at the same time they are distributed.

In compliance with the Americans with Disabilities Act, the City of Anderson will make available to members of the public any special assistance necessary to participate in this meeting. The public should contact the City Clerk's office (378-6646) to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law.

Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.

City Council Meeting
November 18, 2025

Page 2 ends

1.0 ROLL CALL - COUNCIL:

REGULAR SESSION - 5:30 P,M.

Council member Simmons
Councilmember Gallagher
Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh

2.0 INVOCATION - Doug Deese, Neighborhood Church of Anderson/Cottonwood, will give the invocation.

3.0 PLEDGE OF ALLEGIANCE - Councilmember Mike Gallagher.

4.0 STUDENT REPORTS - A representative from the teen center will give an update on current activities.

4.3 PRESENTATIONS - Certificates of Recognition will be presented to the Anderson High School Girls Tennis Team.

5.2 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA - This is the time to address public comments by any member of the public to the Council regarding an item not on the agenda. Each comment must be limited to 3 minutes or less and on an item within the City's subject matter jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda. Are there any public comments?

CONSENT AGENDA

6.0 CONSENT AGENDA - Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any member of the public, staff or City Council may request that an item be removed from the Consent Agenda for separate discussion. Are there any requests to remove any items from the Consent Agenda?

6.1 MINUTES - Approve the minutes of the regular meeting of November 4, 2025.

6.2 WARRANTS - Receive and file warrant 35943 to 35985 in the amount of $273,168.03; Receive and file ACH in the amount of $53,698.66; Receive and file warrant 35986 to 36037 in the amount of $423,443.92

6.6 FINANCE DIRECTOR
a. Amend the City of Anderson GASB 87 & GASB 96 Accounting Policies. b. Receive and file the quarterly treasurer's report for the fiscal quarter ended September 30, 2025.

City Council Meeting
November 18, 2025

Page 3 ends

6.10 PUBLIC WORKS - Letter of Support for Shasta Regional Transportation Agency (SRTA)

END OF CONSENT CALENDAR

6.11 ITEMS (IF ANY) REMOVED FROM THE CONSENT CALENDAR- Items removed from the Consent Agenda for discussion will be treated as Regular Agenda items and any member of the public may request to address the Council on any such item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.

ALL NOTICES WERE GIVEN ACCORDING TO LAW

PUBLIC HEARING

7.0 PUBLIC HEARING - WASTE MANAGEMENT RATE ADJUSTMENTS
RECOMMENDED ACTION:

1. Conduct a Public Hearing;

2. Adopt a resolution to increase Waste Management, Inc. rates for garbage, recycling, and organic waste collection services, effective January 1, 2026.

REGULAR AGENDA

8.0 REGULAR AGENDA - Regular Agenda Items will be discussed individually and in order.

Any member of the public may request to address the Council on an item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.

CITY MANAGER

8.1 LEAGUE OF CALIFORNIA CITIES PARTICIPATION
RECOMMENDED ACTION:

Discuss and determine the City's interest in continuing to participate in the League of California Cities as a member for 2026.

CITY ATTORNEY

8.2 AMENDING CHAPTER 8.65 TO THE ANDERSON MUNICIPAL CODE REGULATING SOLID WASTE. RECYCLING AND ORGANIC WASTE WITHIN THE CITY OF ANDERSON RECOMMENDED ACTION:

1. Receive a Staff Report;

2. Receive Public Comment;
City Council Meeting
November 18, 2025

Page 4 ends

3. Introduce an Ordinance (First Reading), Amending Chapter 8.65 to the Anderson Municipal Code regulating solid waste, recycling and organic waste, and set it for enactment on December 2, 2025 (Second Reading); and

4. Direct the City Clerk to read the Ordinance by Title Only.

11.0 COUNCIL REPORTS/COMMENTS - City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bill 1234.)

14.0 ADJOURN - The City Council will acljourn to December 2. 2025.

ANDERSON CITY COUNCIL MINUTES
Regular Meeting
November 4, 2025

REGULAR SESSION
The regular session was called to order at 5:30 p.m.

ROLL CALL
Councilmembers present: Councilmember Simmons
Councilmember Gallagher
Councilmember Hale
Vice-Mayor Gallier
Mayor Baugh
DRAFT
Also present: City Attorney Collin Bogener, Public Works Director Adam Whelen, Police Chief Oliver Collins, Finance Director Cindy Wheeler and City Clerk Christy White.

INVOCATION
Nick Braito, Neighborhood Church of Anderson/Cottonwood, gave the invocation.

PLEDGE OF ALLEGIANCE
Mayor Susie Baugh led the Pledge of Allegiance.

CONSENT AGENDA
By motion made, second (Gallagher/Hale) and carried by a 5-0 vote, Council took the following action.

Approved the minutes of the regular meeting of October 21, 2025 and special meeting of October 24, 2025.

Received and filed warrant 35835 to 35895 in the amount of $138,279.92; Received and filed warrant 35896 to 35942 in the amount of $152,400.59; Received and filed ACH in the amount of $56,128.56.

Vote: AYES:

NOES:

ABSTAIN:

ABSENT:

ITEM il
Councilmembers Gallagher, Hale, Simmons, Gallier and Mayor Baugh.

None.

None.

None.
11/18/2025
City Council Meeting
November 18, 2025

Page 2 of 3 ends

REGULAR AGENDA

PUBLIC WORKS
CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE 2026-2027 BOATING ACCESS GRANT

APPLICATION
Public Works Director Adam Whelen gave a staff report and answered questions from Council.

By motion made, seconded (Simmons/Gallagher) and carried by a 5-0 vote Council authorized the submission of a grant application to the California Department of Fish and Wildlife (CDFW) for a Boating Access Grant.

AYES:

NOES:

ABSTAIN:

ABSENT:

Council members Simmons, Gallagher, Hale, Gallier and Mayor Baugh.

None.

None.

None.

ILLUMINATED SIGNS DISCUSSION
Public Works Director Adam Whelen gave a staff report and answered questions from Council.

Direction was given to staff for amendments to the sign ordinance.

COUNCIL REPORTS/COMMENTS
Councilmembers used this time to report on meetings and activities they participated in and to announce upcoming events.

Public Comment on Closed Session Items - None.
6:31 p.m.: The City Council convened to Closed Session.

CLOSED SESSION
7:12 p.m.: The City Council reconvened to Open Session. c.s. 1 CONFERENCE WITH LABOR NEGOTIATORS (§54957.6)
- Agency designated representatives: City Manager Joey Forseth-Deshais - Employee organization: Anderson Police Officers Association

CLOSED SESSION ANNOUNCEMENT
Mayor Baugh announced that Council sat in closed session with no reportable actions with direction given to staff.

City Council Meeting
November 18, 2025

Page 3 of 3 ends

ADJOURNMENT
7:12 p.m,; The City Council acljourned to November 18. 2025.

Susie Baugh, Mayor
ATTEST:

Christy White, City Clerk

AGENDA ITEM
I November 18, 2025 City Council Meeting I
Approvest'f~r Submittal By:
/ J
Joey Fo(~h-Deshais, City Manager
To Be Presented By:

Cindy Wheeler, Finance Director/ Treasurer
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director /Treasurer
Date: November 18, 2025

I SUBJECT
Receive and File Weekly Warrant Registers.

I RECOMMENDATION
Receive and file warrant 35943 to 35985 in the amount of $273,168.03; Receive and file ACH in the amount of $53,698.66; Receive and file warrant 35986 to 36037 in the amount of $423,443.92

I ATTACHMENT
Warrant Registers.

ITEM 6.2 PAGE1 11/18/2025

CHECK REGISTER

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
012525 AM WARRIOR ROOFING INC
BUS LICENSE OVRPYMT REFUND 10/31/2025 035943 4.00
012304 AMERICAN CONCRETE PLACEMENT
BUS LICENSE OVRPYMT REFUND 10/31/2025 035944 25.00
000322 AMERICAN FIDELITY ASSURANCE
INSURANCE PREMIUM-OCT 25 10/31/2025 035945 3,019 44
000323 AMERICAN FIDELITY ASSURANCE CO
CAFETERIA 125 PIE 9/26/25 10/31/2025 035946 516.40
000615 AT&T CALNET
PHONE CHARGES 10/31/2025 035947 227.81
000684 B & P FENCING, INC.

BUS LICENSE OVRPYMT REFUND 10/31/2025 035948 62.00
001750 CALIFORNIA SAFETY CO.

PROFESSIONAL SERVICES 10/31/2025 035949 1,810.00
001881 CARREL'S OFFICE MACHINES
EQUIPMENT 10/31/2025 035950 721.93
002047 CHARTER COMMUNICATIONS
INTERNET SERVICES 10/31/2025 035951 2,339.19
012519 CHRIS JAEGER CONSTRUCTION & TE
BUS LICENSE OVRPYMT REFUND 10/31/2025 035952 25.00
002199 CLARK PEST CONTROL OF STOCKTON
PROFESSIONAL SERVICES 10/31/2025 035953 739.00
012237 OLIVER COLLINS
PER DIEM-TRAINING 10/31/2025 035954 35.00
002634 CROWN MOTORS
PARTS 10/31/2025 035955 194.83

Page 1 ends

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
002774 DARREN TAYLOR CONSTRUCTION INC
BUS LICENSE OVRPYMT REFUND 10/31/2025 035956 40.00
003553 FACTORY OUTLET SHELL
BUS LICENSE OVRPYMT REFUND 10/31/2025 035957 5.00
003590 FASTENERS INC.

SUPPLIES 10/31/2025 035958 412.03
004040 GENERALTEAMSTERSU137
DUES FOR MONTH OF OCT-25 10/31/2025 035959 2,634.00
004318 PETER GRIGGS
PROFESSIONAL SERVICES 10/31/2025 035960 189.00
004570 HARVEST PRINTING COMPANY
BUS LICENSE OVRPYMT REFUND 10/31/2025 035961 4.00
012526 HOLY CREPE
VENDOR FEE REFUND 10/31/2025 035962 50.00
005101 INDUSTRIAL ELECTRIC MOTORS INC
PROFESSIONAL SVCS & PARTS 10/31/2025 035963 8,252.47
012518 INDUSTRIAL RAILWAYS COMPANY
BUS LICENSE OVRPYMT REFUND 10/31/2025 035964 60.00
012528 CAROLE MASON
KEY DEPOSIT REFUND 10/31/2025 035965 10.00
006497 JESSE MAYFIELD
PER DIEM-TRAINING 10/31/2025 035966 350.00
006598 ANGELA MCFARLANE
CLEANING DEPOSIT REFUND 10/31/2025 035967 350.00
006789 MICHAEL ROBERTS CONSTRUCTION L
BUS LICENSE OVRPYMT REFUND 10/31/2025 035968 25.00
012527 ALEX MIEGER
KEY DEPOSIT REFUND 10/31/2025 035969 10.00
Page2

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
011792 MtSSIONSQUARE-302204
PLAN 11302204 PE 10/ 10125 10/ 31/2025 035970 2,965.00
012530 KAYLA MOSS
KEY DEPOSIT REFUND 10/31/2025 035971 10.00
007065 MULTIPLE PUMP SERVICES, INC.

BUS LICENSE OVRPYMT REFUND 10/31/2025 035972 40.00
011980 NORCAL PRESORT AND PRINTING
PROFESSIONAL SERVICES 10/31/2025 035973 9,519.69
007342 NORCAL RENTALS & SALES
EQUIPMENT RENTAL 10/31/2025 035974 1,366.92
012017 PRESYNCED PRODUCTIONS
PROFESSIONAL SERVICES 10/31/2025 035975 1,055.00
008848 ROYAL PLUMBING
BUS LICENSE OVRPYMT REFUND 10/31/2025 035976 55.00
009243 BRAN DY SCOTT
KEY DEPOSIT REFUND 10/31/2025 035977 10.00
009365 SHASCOM
DISPATCH & CAD SERVICES 10/31/2025 035978 214,367.75
012531 BRYAN SWAGGERTY
CLEANING DEPOSIT REFUND 10/31/2025 035979 350.00
010255 T ANDS DVBE, INC.

SUPPLIES 10/31/2025 035980 864.44
010360 TEXAS LIFE INSURANCE COMPANY
INSURANCE PREMIUM-OCT 25 10/31/2025 035981 1,230.57
010668 TYLER TECHNOLOGIES, INC.

PROFESSIONAL SERVICES 10/31/2025 035982 1,748,75
012517 UNDERGROUND ELECTRIC CONST. CO
BUS LICENSE OVRPYMT REFUND 10/31/2025 035983 42.00
Page3

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
010749 US BANK VOYAGER FLEET SYSTEMS
FUEL CHARGES 10/31/2025 035984 17,362.56
010856 VCA GATEWAY ANIMAL HOSPITAL
PROFESSIONAL SERVICES 10/31/2025 035985 69.25
10/29/25 ACH PERS $53,698.66 273,168.03
FOR PAYROLL ENDING 10/ 10/25
Page4

CHECK REGISTER

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
004592 HAVEN HUMANE SOCIETY
ANIMAL SHELTER SERVICES 11/7/2025 ACH 1,060.00

VOIDED CHECKS
PRINTING ERROR 11/7/2025 35986-35993
1 ALI, AHMAD
US REFUND 11/7/2025 035994 13.27
1 BROWN, KENNETH & YVE
US REFUND 11/7/2025 035995 13.27
1 CHAVEZ, JOHN
US REFUND 11/7/2025 035996 166.54
1 HOYLE, BOBBIE & DORA
US REFUND 11/7/2025 035997 13.27
1 LAURANCE, NICHOLE
US REFUND 11/7/2025 035998 13.27
1 NIXON, DUCHESS
US REFUND 11/7/2025 035999 13.27
1 STEVENS, DREW
US REFUND 11/7/2025 036000 13.27
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 11/7/2025 036001 4,158.00
000404 ANDERSON FARM & YARD SUP.

SUPPLIES 1117/2025 036002 843.58
000609 AT&T
PHONE CHARGES 11/7/2025 036003 64.04
000922 SUSAN BAUGH
HEALTH INS. REIMBURSEMENT 11/7/2025 036004 555.00

Page 1 ends

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
001754 CALIFORNIA VISION SERVICE
INSURANCE PREMIUM 11/7/2025 036005 68 25
002158 CITY OF ANDERSON
UTILITIES 1117/2025 036006 3,637 95
002167 CITY OF REDDING
UTILITIES 11/7/2025 036007 587.88
012237 OLIVER COLLINS
CELLPHONE REIMBURSEMENT 11/7/2025 036008 75.00
002974 DEPT OF PESTICIDE REGULATION
CERT RENEWAL-VANERT 11/7/2025 036009 140.00
002974 DEPT OF PESTICIDE REGULATION
CERT RENEWAL-NORTON 11/7/2025 036010 140.00
001082 ENDICOTT TRUCKING, INC.

PROFESSIONAL SERVICES 11/7/2025 036011 2,720.00
003534 EWING
SUPPLIES 11/7/2025 036012 598.11
011976 JOEY FORSETH·DESHAIS
CELLPHONE REIMBURSEMENT 11/7/2025 036013 75.00
011883 ADAM FROEBER
CELLPHONE REIMBURSEMENT 11/7/2025 036014 75.00
003909 G-3 ENGINEERING, INC.

PROFESSIONAL SERVICES 11/7/2025 036015 72,931.79
004096 GILES LOCK & SECURITY SYSTEMS,
SUPPLIES 11/7/2025 036016 96.31
009321 HOPE SETH CONSULTING
PROFESSIONAL SERVICES 11/7/2025 036017 2,160.00
005092 IMPERIAL SUPPLIES LLC
SUPPLIES 11/7/2025 036018 159.04
Page2

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
005401 NICHOLAS JONES
CELLPHONE REIMBURSEMENT 11/7/2025 036019 75.00
006153 LOUCKS LANDSCAPE SUPPLY
MATERIALS 11/7/2025 036020 31,09
011792 MISSIONSQUARE-302204
PLAN #302204 PE 10/24/25 11/7/2025 036021 2,965.00
007134 N.C.G.T. TRUST FUND
HEALTH INSURANCE PREMIUM 1117/2025 036022 111,527.00
007617 PACE ENGINEERING, INC.

PROFESSIONAL SERVICES 11/7/2025 036023 112,129.83
007630 PACIFIC GAS & ELECTRIC
UTILITIES 11/7/2025 036024 87,617.92
008126 PROFORCE LAW ENFORCEMENT
EQUIPMENT 11/7/2025 036025 4,525.50
012143 R3 CONSULTING GROUP INC.

PROFESSIONAL SERVICES 11/7/2025 036026 900.00
012311 BONNIE SIMMONS
HEALTH INS. REIMBURSEMENT 11/7/2025 036027 345.50
012311 BONNIE SIMMONS
HEALTH INS. REIMBURSEMENT 11/7/2025 036028 345.50
012529 TOBY SMITH
CLEANING DEPOSIT REFUND 1117/2025 036029 200.00
012410 MARJORIE TRUMAN
CELLPHONE REIMBURSEMENT 11/7/2025 036030 75.00
010874 VERIZON WIRELESS
PHONE CHARGES 11/7/2025 036031 3,720.35
011064 WM CORPORATE SERVICES, INC
DUMP FEES 11/7/2025 036032 7,937.67
Page3

NAME CHECK CHECK CHECK

VENDOR DESCRIPTION DATE NUMBER AMOUNT
011674 WELLS FARGO VENDOR FINANCIALS
MONTHLY LEASE 11/7/2025 036033 357.45
011245 CINDY WHEELER
CELLPHONE REIMBURSEMENT 11/7/2025 036034 75.00
011858 ADAM WHELEN
CELLPHONE REIMBURSEMENT 11/7/2025 036035 75.00
011260 CHRISTY WHITE
CELLPHONE REIMBURSEMENT 11/7/2025 036036 75.00
011305 PETER WICKENHEISER
CELLPHONE REIMBURSEMENT 11/7/2025 036037 75.00
423,443.92
\ll't/zK
Date
Page4

AGENDA ITEM
I November 18, 2025, City Council Meeting I
eth-Deshais, City Manager
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director
Date: November 18, 2025
lsuBJECT
Amend the City of Anderson GASB 87 & GASB 96 Accounting Policies.

I RECOMMENDATION
The Finance Director recommends that the City Council:

Approve the amended policy to allow for a more efficient process throughout all departments, notably during the annual financial audit process, when tracking leases and subscriptions while maintaining compliance with internal controls and government code. !FISCAL IMPACT
While there will be no immediate fiscal impact from this policy, the manpower within the City will be redirected to more fundamental duties with the increased efficiency in the dayto-day operations and time spent during the audit process. l DISCUSSION and BACKGROUND
In June of 2017, the Government Accounting Standards Board (GASB) released Statement No. 87, regarding how leases should be reported on the financial statements. This statement applies to all leases over 12 months with a "right to use" another entity's asset in ITEM 6.6a PAGE 1 11/18/2025
exchange for a set value. This statement also applies to the City being the lessor.

Compliance with GASB 87 was required as of Fiscal Year 2021/2022.

Likewise, in May of 2020, GASB released Statement No. 96, regarding Subscription-Based Information Technology Arrangements (SBITAs) to be reported similarly to the GASB 87 leases on the financial statements. This statement applies to all IT subscriptions provided to the government entity associated with licensing or "right-to-use" subscriptions with a tangible capital asset. Compliance with this statement was required as of Fiscal Year 2022/2023.

In January 2025, the City adopted a materiality threshold for these reporting standards that our auditors have instructed that we adjust from $100,000 down to $50,000.

By adopting these new policies allowing a materiality threshold amount of $50,000, the City staff will continue to be freed up from tracking so many leases and be able to direct time and resources to more significant items. This does not change the transparency efforts of the City as the financials will still reflect leases and subscriptions, but if a contract is entered into that meets this proposed threshold amount, the appropriate GASB statement procedures will be followed.

I ATTACHMENTS
GASB 87 Administrative Policy
GASB 96 Administrative Policy
ITEM 6.6a PAGE2 11/18/2025

CITY OF ANDERSON

ADMINISTRATIVE POLICY
SUBJECT: LEASE ACCOUNTING POLICY
APPROVED:

NUMBER:

EFFECTIVE DATE: JULY 1, 2024
AUTHORITY: FINANCE DEPARTMENT
SUPERCEDES: ALL PREVIOUSLY WRITTEN GUIDELINES
The purpose of this policy is to establish procedures for tracking lease agreements that the City is a party to, either as a lessee or a lessor, establish materiality thresholds, and provide guidelines for the proper accounting of leases for external financial reporting purposes. The City recognizes lease liabilities with an initial, individual value of $50,000 or more, and/or a lease term of greater than 12 months in the government-wide and proprietary fund financial statements.

Definitions
For purposes of this policy, the following definitions shall apply:
1) Lease. The term "lease" shall mean a contract that conveys control of the right to use one party's nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction.

Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

Right to use includes both the right to obtain the present service capacity and the right to determine the nature and manner of use.
2) Lease term. The term "lease term" shall mean the period during which a lessee has a noncancelable right to use an underlying asset, plus the periods covered by any options to extend the lease term when it is reasonably certain that the option will be exercised.
3) Short-term lease. The term "short-term lease" shall mean a lease that, at the commencement of the lease term, has a maximum possible term of twelve (12) GASB 87 Materiality Threshold Policy Page 1 of 5
months or less, including any options to extend, regardless of their probability of being exercised. Month-to-month leases are considered short-term leases. For a lease that can be terminated without cause by either the lessee or the lessor, the maximum possible term is the amount of time either party is required to notify the other party of the cancellation (notice period).

Scope of the Policy
1) Applies to all employees. Unless otherwise stipulated herein, this policy applies to all City employees. All such employees shall comply with the provisions outlined in this policy. It is the responsibility of all supervisors to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
2) GASB Statement No. 87. Leases shall be accounted in compliance with Generally Accepted Accounting Principles (GMP) and Governmental Accounting Standards Board (GASB) Statement No. 87 - Leases.
3) Application to leases. Generally, any lease that grants rights to use an underlying asset that has physical substance, has a maximum possible lease term greater than twelve (12) months, and does not transfer ownership of the underlying asset at the end of the lease term, will be subject to GASB Statement 87 lease accounting and this policy.
4) Title of Lease Not Controlling. If a contract meets the definition of a lease, as defined in this policy, it shall be treated as a lease and will be subject to this policy, regardless of the name or title of the contract. For example, a contract titled "license agreement" will be subject to this policy if it meets the definition of lease, as defined in this policy.
5) Contracts with Non-Lease Components. Some contracts may include both lease and non-lease components. For example, some contracts for the provision of services to the City include equipment as part of the services. In such contracts, the services are the non-lease component and the equipment is the lease component. All contracts that have a lease component are subject to this policy. 6) Effective Date. This policy applies to existing leases in effect as of July 1, 2024, Exemptions from the Scope
In accordance with the GASB 87 Statement, the following are lease types are exempt from this policy:
1) Leases of intangible assets, such as rights to explore for or to exploit natural resources such as oil, gas, minerals, and similar nonregenerative resources; GASB 87 Materiality Threshold Policy Page 2 of 5
licensing contracts for items such as motion picture films, video recordings, plays, manuscripts, patents, and copyrights; and licensing contracts for computer software.
2) Leases of biological assets, such as timber, living plants, and living animals. 3) Leases of inventory, which involve a transfer of ownership rather than a lease. 4) Contracts that meet the definition of a service concession arrangement pursuant to paragraph 4 of GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements.
5) Leases in which the underlying asset is financed with outstanding conduit debt unless both the underlying asset and the conduit debt are reported by the lessor. 6) Supply contracts (e.g., power purchase agreements).
7) Certain leases subject to external laws, regulations, or legal rulings, such as aviation leases between airports and airlines, and other leases with similar characteristics.
8) Nonexchange transactions where the right to use an underlying asset is transferred in exchange for a nominal amount, such as one dollar per year.

These type of non-exchange transaction leases are covered by GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. 9) A contract that: (i) transfers ownership of the underlying asset to the lessee by the end of the contract term; and (ii) does not contain a termination option (but may contain a fiscal funding or cancellation clause that is not reasonably certain of being exercised). For these types of financed purchase contracts, the City, as a lessee, will record the purchased asset and the related debt (a financed purchase liability); and the City, as a lessor, will record the sale of the asset.

Accounting and Reports
1) Materiality Threshold. The following materiality thresholds apply when determining whether to capitalize a lease:
a) As a lessee, the City will recognize a lease liability and a corresponding intangible asset representing the lessee's "right to use" the asset, if the present value of the lease payments expected to be made during the lease term (less any lease incentives) is a minimum of $50,000. b) As a lessor, the City will recognize a lease receivable and a corresponding deferred inflow of resources at the commencement of the lease term, if the GASB 87 Materiality Threshold Policy Page 3 of 5
present value of the lease payments expected to be received during the lease term (less any lease incentives) is a minimum of $50,000. c) Leases not meeting the above materiality threshold may be capitalized if the exclusion of such leases might otherwise cause the financial statement to be incomplete or misleading.
2) Accounting Treatment. For leases subject to this policy:
a) The City, as a lessee, in conjunction with reporting the asset and liability, will also report the amortization expense of the intangible asset over the life of the asset or the lease term, whichever is shorter. In addition, the City will report interest expense on the lease liability and provide footnote disclosures about the lease.
b) The City, as a lessor, in addition to recognizing a lease receivable and a corresponding deferred inflow of resources, will recognize interest income associated with the receivable using an effective interest method. Lease revenue will arise from amortizing the deferred inflow of resources systematically and rationally over the lease term.
3) Operating Lease. Short-term leases and other leases that do not meet the materiality threshold set forth in this policy will be recorded as operating leases. The City will report payments (as a lessee) as outflows of resources (expense/expenditure); and report lease payments received (as a lessor) as inflows of resources (revenue), respectively, based on the payment provisions of the lease.
4) Reassessment of the Lease Term. The City shall reassess the lease term only if one or more of the following occur:
a) The City elects to exercise an option even though it was previously determined that it was reasonably certain that the option would not be exercised.
b) The City elects not to exercise an option even though it was previously determined that it was reasonably certain that the option would be exercised.
c) An event specified in the lease that requires an extension or termination of the lease takes place.
*Reassessment of the lease term may result in an adjustment of lease asset/liability and future amortization.

GASB 87 Materiality Threshold Policy Page 4 of 5
5) Lease Amendments
a) A lease amendment or modification that adds one or more underlying assets that were not included in the original lease should be accounted for as a separate lease.
b) A lease amendment or modification that does not qualify as a separate lease pursuant to this policy should be accounted for by remeasuring the lease liability and adjusting the related lease asset if the City is a lessee or remeasuring the lease receivable and adjusting the related deferred inflows of resources if the City is a lessor.
c) The City, as a lessor, in addition to recognizing a lease receivable and a corresponding deferred inflow of resources, will recognize interest income associated with the receivable using an effective interest method. Lease revenue will arise from amortizing the deferred inflow of resources in a systematic and rational manner over the lease term. 6} Lease Termination. A lease amendment or modification that results in a decrease of the lessee's right to use the underlying asset shall be considered to be a full or partial termination.
a) As a lessee, the City will reduce the carrying values of the lease liability and related asset, and recognize a gain or loss for the difference. b) As a lessor, the City will reduce the carrying values of the lease receivable and related deferred inflow of resources, and recognize a gain or loss for the difference.

References:

Statement No. 87 of the Government Accounting Standards Board. (2017, July).

GASB 87 Materiahty Threshold Policy Page 5 of 5

CITY OF ANDERSON

ADMINISTRATIVE POLICY
SUBJECT: SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs)

ACCOUNTING POLICY
APPROVED:

NUMBER:

EFFECTIVE DATE: JULY 1, 2024
AUTHORITY: FINANCE DEPARTMENT
SUPERCEDES: ALL PREVIOUSLY WRITTEN GUIDELINES
The purpose of this Policy is to establish procedures for tracking the City's SBITA contracts, establish materiality thresholds, provide guidelines for the GASB 96 compliance, and proper accounting of SB IT As for external financial reporting purposes.

The City recognizes subscription liabilities with an initial, individual value of $50,000 or more with a subscription term greater than 12 months in the government-wide and proprietary fund financial statements.

Definitions
For purposes of this policy, the following definitions apply:
1) Subscription-based information technology arrangement (SBITA). A SBITA is a contract that conveys control of the right to use another party's (a SBITA vendor's) IT software, alone or in combination with tangible capital assets (with underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. 2) Subscription term. The subscription term is defined as the period during which the City has a non-cancellable right to use an underlying IT asset, plus the following periods, if applicable:
a) Periods covered by the City's option to extend the SBITA when reasonably certain the City will exercise this option.

GASB 96 Materiality Threshold Policy Page 1 of7
b) Periods covered by the City's option to terminate the SBITA when reasonably certain the City will not exercise this option. c) Periods covered by the SBITA vendor's option to extend the SBITA when reasonably certain the SBITA vendor will exercise this option.
d) Periods covered by the SBITA vendor's option to terminate the SBITA when reasonably certain the SBITA vendor will not exercise this option.

Periods, where both the City and the SBITA vendor have the option to terminate the SBITA without permission from the other party ( or if both parties have to agree to extend), are cancelable periods and are excluded from the subscription term.
3) Short-term SBITA. A short-term SBITA is a SBITA that, at the commencement of the subscription term, has a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. For a SBITA that is cancellable by either the City or the SBITA vendor, the maximum possible term is the amount of time either party is required to notify the other party of the cancellation (notice period).

For short-term SB IT As, the City should recognize expenditure/ expense on subscription payments made.

Scope of the Policy
1) Applies to All Employees. Unless otherwise stipulated herein, this policy applies to all City employees. All such employees shall comply with the provisions outlined in this policy. It is the responsibility of all supervisors to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
2) GASB Statement No. 96. SBITAs shall be accounted in compliance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) Statement No. 96 - SubscriptionBased Information Technology Arrangements. 3) Application to SBITAs. Generally, any SBITA that conveys control of the rights to use a SBITA vendor's IT software, alone or in combination with tangible capital assets, has a maximum possible subscription term greater than twelve (12) months, will be subject to GASB Statement 96 SBITAs and this policy.

GASB 96 Materiality Threshold Policy Page 2 of7
4) Contracts with Multiple Components. If a SBITA contract contains multiple components such as both a subscription component and a nonsubscription component, or multiple underlying hardware or software components, the City accounts for each component as a separate SBITA component and allocates the contract price to the different components. If it is not practicable to determine the best estimate for price allocation for some of all components in the contract, the City accounts for those components as a single SBITA unit. All contracts that have a SBITA component are subject to this policy.
5) Effective Date. This policy applies to existing SB IT As in effect as of July 1, 2024, and new SB IT As or SBITA amendments entered into on or after July 1, 2024.

Exemptions from the Scope
In accordance with the GASB 96 Statement, the following lease types are exempt from this policy:
1) Contracts that convey control of the right to use another entity's combination of IT software and tangible capital assets that meet the definition of a lease in GASB Statement No. 87 (GASB 87), in which the software component is insignificant when compared to the cost of the underlying asset. Refer to Administrative Policy 01200.607 Lease Accounting Policy for additional guidance on recording GASB 87 Leases. 2) Arrangements that the City provides the right to use an IT software to other entities through SBITAs as a passthrough and therefore not the end user. 3) Contracts that meet the definition of Public-Private and Public-Public Partnerships in GASB Statement No. 94.
4) Licensing arrangements that provide a perpetual license subject to GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets.
5) Contracts that only provide IT support services.

Accounting and Reports
GASB 96 Materiality Threshold Policy Page 3 of 7
1) Materiality Threshold. The following materiality thresholds apply when determining whether to capitalize a SBIT A
a) As a SBITA end user, the City will recognize a subscription liability and a corresponding intangible asset representing the City's "right to use" the underlying SBITA asset, if the present value of the subscription payments expected to be made during the subscription term (less any subscription incentives) is a minimum of $50,000.
b) As a SBITA vendor, the City will recognize a subscription receivable and a corresponding deferred inflow of resources at the commencement of the subscription term, if the present value of the subscription payments are expected to be received during the subscription term (less any lease incentives) is a minimum of $50,000.
c) SB IT As not meeting the above materiality threshold may be capitalized if exclusion of such SB IT As might otherwise cause the financial statement to be incomplete or misleading.
2) Accounting Treatment. For SBITAs that have terms of 12 months or more are subject to the thresholds in this policy:
a) The City, as a SBITA end user, in conjunction with reporting the subscription liability and intangible asset representing the City's right to use the subscription asset at the commencement of the subscription term, will also report amortization expense of the intangible asset over the life of the asset or the subscription term, whichever is shorter. In addition, the City will report interest expense on the subscription liability and provide footnote disclosures about the SBITA. b) The City, as a SBITA vendor, in addition to recognizing a subscription receivable and a corresponding deferred inflow of resources, will recognize interest income associated with the receivable using effective interest method. Subscription revenue will arise from amortizing the deferred inflow of resources in a systematic and rational manner over the subscription term.
c) The City should measure its subscription liability or receivable as the present value of all payments expected to be made or received during the subscription term.
d) The subscription asset should be measured at the amount of the initial measurement of the subscription liability, plus any payments made to the SBITA vendor at the commencement of the subscription term and any capitalizable initial implementation costs.

GASB 96 Materiality Threshold Policy Page 4 of7
e) Payments made before the commencement of the subscription term to the SBITA vendor, payments made for the capitalizable initial implementation and costs before the commencement of the subscription term, reduced by any incentives received should be reported as a prepayment. The prepayment should be reclassified as an addition to the subscription asset's initial measurement at term commencement. f) Variable payments based on future performance of the City, usage of the underlying IT assets, or number of user seats should be expensed as incurred, and not included in the measurement of the subscription liability.
g) Activities associated with a SBITA, other than making subscription payments, are grouped into the following stages and their costs are accounted for accordingly:
" subscription asset at commencement of the subscription term, will also report amortization expense of the intangible asset over the life of the asset or the subscription term, whichever is shorter. In addition, the City will report interest expense on the subscription liability and provide footnote disclosures about the SBITA" (Governmantal Accounting Standards Board of the Finance Accounting Foundation, 2020).
h) The City's financial statement footnote disclosures about SBITAs should include the following:
a. General description of the SBIT A, including the basis, terms, and conditions on which variable payments not included in the measurement of the subscription liability are determined. b. Total amount of subscription assets and the related accumulated amortization, disclosed separately from other capital assets. c. Amount of outflows of resources recognized in the reporting period for variable payments not previously included in the measurement of the subscription liability.
d. Amount of outflows of resources recognized in the reporting period for other payments, such as termination penalties, not previously included in the measurement of the subscription liability.
e. Principal and interest requirements to maturity, presented separately, for the subscription liability for each of the five subsequent fiscal years and in five-year increments thereafter.

GASB 96 Materiality Threshold Policy Page 5 of 7
f. Commitments under SB IT As before the commencement of the subscription term.
g. Components of any loss associated with an impairment, and any significant related changes in the subscription liability. 3) Contract Combinations. Contracts finalized at or near the same time with the same SBITA vendor should be considered part of the same contract if either of the following criteria is met:
a) The contracts are negotiated as a package with a single objective. b) The amount of consideration to be paid on one contract depends on the price or performance of the other contract.
4) Reassessment of the Subscription Term. The City shall reassess the subscription term only if one or more of the following occur:
a) The City or SBITA vendor elects to exercise an option even though it was previously determined that it was reasonably certain that the option would not be exercised.
b) TheCityorSBITAvendorelectsnot to exercise an option even though it was previously determined that it was reasonably certain that the option would be exercised.
c) An event specified in the SBITA contract that requires an extension or termination of the lease takes place.
*Reassessment of the SBITA contract term may result in an adjustment of lease asset/subscription liability and future amortization. 5) SBITAAmendments
a) A SBITA amendment resulting in a modification should be accounted for as a separate SBITA if it adds one or more underlying IT assets that were not included in the original SBITA contract; and the increase in subscription payments for the additional subscription asset does not appear to be unreasonable.
b) An amendment that does not qualify as a separate SBITA pursuant to this policy should be accounted for by remeasuring the subscription liability and adjusting the related intangible asset if the City is an end user; or remeasuring the subscription receivable and adjusting the related deferred inflows of resources if the City is a SBITA vendor. 6) SBITA Termination. A SBITA amendment or modification that results in a GASB 96 Materiality Threshold Policy Page 6 of7
decrease of the lessee's right to use the underlying asset shall be considered to be a full or partial termination.
a) As a SBITA end user, the City will reduce the carrying values of the subscription liability and related asset, and recognize a gain or loss for the difference.
b) As a SBITA vendor, the City will reduce the carrying values of the subscription receivable and related deferred inflow of resources, and recognize a gain or loss for the difference.

References:

Statement No. 96 of the Government Accounting Standards Board. (2020, May).

GASB 96 Materiality Threshold Policy Page 7 of 7

AGENDA ITEM
I November 18, 2025, City Council Meetin~
for Submittal By:

Joe
Cindy Wheeler, Finance Director / Treasurer
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From:

Date:
lsuBJECT
Cindy Wheeler, Finance Director/Treasurer
November 18, 2025
Quarterly Treasurer's Report on City Investments
l RECOMMENDATION
The Finance Director recommends that the City Council:

Receive and file the quarterly treasurer's report for the fiscal quarter ended September 30, 2025

I FISCAL IMPACT
This action has no direct fiscal impact. The report is for information purposes only.

I DISCUSSION and BACKGROUND
State law requires the City Treasurer to report every fiscal quarter to the City Council about the city's investments. The attached report includes complete information about the city treasury and certifies that the city's investments are in accordance with state law and the Council's adopted investment policy.

I ATTACHMENTS
Quarterly Treasurer's Report and Certification for the fiscal quarter ended September 30, 2025.

ITEM 6.6b PAGE1 11/18/2025
City of Anderson
Quarterly Certification of Compliance with Investment Policy Quarter Ended September 30, 2025
A. Section 8.1 of the City's Investment Policy restricts the amount of pooled funds which may be invested in certain types of investments. These types of investments and a statement of compliance are below.

Investment Tme Maximum investment Current Investment Percent of Total Below Maximum? Banker's Acceptances 15% of Total Portfolio $0 0.00% Yes Certificates of Deposit 30% of Total Portfolio $0 0.00% Yes Prime Commercial Paper 15% of Total Portfolio $0 0.00% Yes Medium-term Corporate Notes 15% of Total Portfolio $0 0.00% Yes B. Section 13.1 of the City's Investment Policy restricts the overall maturities of pooled investments. These restrictions and a statement of compliance are below.

Maturity Investment Restriction
Within One Year 50% of Total - Minimum
Between Three and Five Years 25% of Total - Maximum
Over Five Years None Allowed
Current Investment
$807,868
$0
$0
Percent of Total
100.00%

0.00%

0.00%
Limit Met?
Yes
Yes
Yes
C. Section 13.1 of the City's Investment Policy provides that the average investment maturity must be less than three years.

Weighted Average Days to Maturity of Treasurer's Pool:

Restriction Met?: Yes
I hereby certify that as of September 30, 2025 the investment of the City of Anderson comply in all respects with the requirements of the California Government Code and the City's current Investment Policy and that there is sufficient cash flow to cover the next six months expenditures.

Certified by:

C1n
Attachment 1
City of Anderson
Quarterly Report on the Treasurer's Investment Pool
Quarter Ended September 30, 2025
Cheeking and Passbook accounts
Primary Checking
Payroll Checking
Checking - City Events
Passbook Savings
REDIP Reserve Acct
Money Markel
Subtotal
Certifocates of Deposit
Local Agerocy lrwestment Fund
Local Agerocy Investment Fund
Petty Cash
Petty Cash
Issuer
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
Tri-Counties Bank
na
na
Total Funds Held by the City of Anderson on September 30, 2025 Total Funds Held by the City of Anderson on June 30. 2025 Yield to Maturity Rate
na na
na na
na na
na 0.01%
na 0.01%
na 0.40%
na 4.240%
na na
Weighted Average Yields 1 727%
Weighted Average Days to Maturrty
I hereby certify that as of September 30, 2025 the ,rwestment of the Crty of Anderson comply in all respects with the requirements ol II Percent Maturing between One and Three Years
Percent Maturing between Three and Five Years
Days to
Maturity
na
na
na
na
na
na
na
1 100.00%

0.00%

0.00%
Percent of
Credit Rating Total
Par Value Book Value MiM'l<et Value {Notes) Investments 358.955 140.698 140.698 na

1.000 1,000 1,000 na
100 100 100 na

33.290 33.290 33,290 na
21,195 21 ,195 21,195 na
67,894 67.894 67.894 na
482.434 264.177 264.177 44.81%
0 0 0 0.00%
322.584 322.584 322.584 na 54.71%
2,850 2,850 2,850 na 0.483%
807.868 589.611 589,611 100.0%
3,799.343 3,713.016 3,713.016
(2,991,475) (3. 123.405) (3.123.405)
City of Anderson
Quarterly Report on Funds Held Outside the Treasurer's Pool Quarter Ended September 30, 2025
Issuer Yield to Maturil}'_
Superior California Economic Development District
Checking Account Cornerstone Community Bank na
Amerinational Community Services Group na
Funds Held by Trustee (US Bank} for Redevelopment Agency l2005} Funds Held by Trustee (US Bank) for Redevelopment Agency (2008) Funds Held by Trustee (US Bank) for Redevelopment Agency (2015J Funds Held by Trustee (Union Bank) for Wastewater Bonds Misssion Square Retirement (Formerly ICMA Retirement>
Empioyee Directed Investments

4.90%

0.00%
na
Rate

0.00%
na
Retired
Retired
na
na
na
Total Funds Held by the City of Anderson Outside the Treasurer's Investment Pool on September 30, 2025 Total Funds Held by the City of Anderson Outside the Treasurer's Investment Pool on June 30, 2025 Difference
Maturil}'_ Date
na
na
na
na
na
Par Value Book Value
0 0
0 0
0 0
518,672

2.775,844
3,294,516
3,138,029
156,487
0 0
518,672
2,775,844
3,294,516
3,138,029
156,487
Market Value
0 0
0 0
518,672
2,775,844
3,294,516
3,138,029
156,487

AGENDA ITEM
I November 18, 2025, City Council Meeting I
Joe
To Be Pr sented By:

To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Adam Whelen, Public Works Director
Date: November 18, 2025

I SUBJECT
Letter of Support for Shasta Regional Transportation Agency (SRTA)

I RECOMMENDATION
The Public Works Director recommends approval of the letter of support for SRTA for the Shasta NextGen Railroad Corridor Crossing Plan.
!FISCAL IMPACT
None.

I DISCUSSION and BACKGROUND
On October 20th, 2025, the SRTA staff indicated they intend to apply for a Caltrans Strategic Partnership Grant to create the Shasta NextGen Railroad Crossings Plan. Upon award of the grant, SRTA will send out an RFP to hire a consultant for the Shasta NextGen Railroad Crossings Plan.

The City of Anderson currently has multiple railroad crossings that will be studied as part of the plan. Addressing these railroad crossings along Highway 2 73 was one of the primary goals of the SRTA Envision 273 Comprehensive Multi modal Corridor Plan.

ITEM 6.10 PAGE1 11/18/2025
At the April 30, 2025, SRTA Board of Directors meeting, the board unanimously approved the staff recommendation to work with Caltrans and regional partners to pursue grant funding for a regional railroad crossing study to address these challenges and others.

SRTA staff have worked with Caltrans and have identified the Strategic Partnerships grants, part of the Caltrans Sustainable Transportation Planning Grant Program, as a potential funding source for the proposed railroad crossing plan. Applications are due by November 21, 2025. If the application is awarded funding, work is anticipated to begin in November 2026 and finish by February 2029.

STRA has requested letters of support for the grant application from the local agencies.

SRTA will be the lead agency, with the City of Anderson, the City of Redding, and the City of Shasta Lake being the local government agencies.

I ATTACHMENT

1. Draft Letter of Support
ITEM 6.10 PAGE2 11/18/2025
November 18, 2025
Sean Tiedgen, AICP
Executive Director
Shasta Regional Transportation Agency
1255 East Street, Suite 202, Redding, CA 96001
Subject: Letter of Support for Shasta Regional Transportation Agency's Shasta NextGen Railroad Corridor Crossing Plan
Dear Mr. Tiedgen,
The City of Anderson strongly supports the Shasta Regional Transportation Agency's (SRTA) application for Strategic Partnerships funding to develop the Shasta NextGen Railroad Corridor Crossing Plan. This effort builds off findings from SRTA and Caltrans District 2's recently completed Envision 273 Comprehensive Multi modal Corridor Plan, which identified the need for a regional railroad crossing study due to UP requirements on new crossings or improvements, as well as direction from the SRTA Board of Directors to pursue efforts for funding. Funding for this project benefits our regional and local communities in a number of ways including: enhancing safety at existing railroad crossings, identifying potential gradeseparation projects; evaluating crossing alternatives; improving mobility and safety for both motorized and non-motorized users, removing route challenges for freight trucks and the movement of goods, reducing potential delays for first responders or evacuees during climate-related wildfire events, and supporting the economic vitality of the region.

The City of Anderson would participate in the following ways:
• Where available, provide local data;
• Provide staff-level representation to the Project Advisory Committee; and • Provide director-level representation to the Executive Advisory Committee to provide input at key junctures and ensure alignment with local priorities and goals.

The proposal by SRTA is a much-needed attempt to address long-standing safety and mobility challenges with the region's railroad corridor, which runs roughly north-south through the cities of Anderson, Redding, and Shasta Lake; Shasta County, and across many Caltrans District 2 facilities. The railroad bisects the region's urban core and is frequently crossed by Redding Area Bus Authority routes daily to meet the public transportation needs City Council
1887 Howard Street
Anderson,CA 96007
www.cl.anderson.ca.us Phone: (530) 378-6646
Fax: (S30) 378-6648
of our communities. The final railroad crossing plan will allow SRTA, Caltrans, local jurisdictions, and RABA to plan, program, and implement improvements in support of the program's objectives, Federal Planning Factors, and the Caltrans mission.

This project represents an essential step toward implementing our region's shared goals for sustainability, health, and safety. We look forward to working with SRTA on this effort and wish you success in securing the necessary funding to make this update a reality.

Sincerely,
Susie Baugh, Mayor
City of Anderson
City Council
1887 Howard Street
Anderson, CA 96007
www.ci.anderson.ca.us Phone: (530) 378-6646
Fax: (530) 378-6648

AGENDA ITEM
November 18, 2025, City Council Meeting
Appro~~ for Submittal By: I
,
'I - Joe t:.J6rseth-Deshais, City Manager
To Be..,ft esented By:

I
/ ---- Jo I
r~ rseth-Deshais, City Manager
To:

From:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
Date: November 18, 2025
lsueJECT
Public Hearing - Waste Management Rate Adjustments

I RECOMMENDATION
The City Manager recommends that the City Council:

1. Conduct a Public Hearing;

2. Adopt a resolution to increase Waste Management, Inc. rates for garbage, recycling, and organic waste collection services, effective January 1, 2026.

I FISCAL IMPACT
USA Waste of California (a subsidiary of Waste Management, Inc.) customers pay for solid waste collection and disposal, recycling, and green waste services provided in accordance with the current franchise agreement with the City of Anderson dated July 1, 2015, and extended by amendment through December 31, 2025.

The rate adjustments proposed are necessary to recover the costs associated with the new franchise agreement. Without these adjustments, the City risks subsidizing solid waste operations or encountering regulatory non-compliance.

ITEM 7.0 PAGE1 11/18/2025

I DISCUSSION AND BACKGROUND
During the City Council meeting on September 16, 2025, the Council authorized the City Manager to execute a new ten-year franchise agreement with WM, following extensive negotiations and review that began in January 2024. The agreement expands services associated with waste collection operations and ensures compliance with state-mandated recycling and organics diversion regulations, particularly those established under Senate Bill 1383 (SB 1383).

SB 1383 imposes significant unfunded mandates on local jurisdictions, including the implementation of organic waste collection, expanded reporting requirements, procurement targets for recovered organic products, and strict contamination monitoring standards. The new agreement incorporates these requirements and reflects the increased costs necessary to meet them. Among the changes, the implementation of organic waste collection and efforts to prevent container contamination represent the most notable changes for City residents.

Beginning January 1, 2026, residents will be required to place food scraps, food-soiled paper products, green waste, and untreated wood scraps into the existing green bin. This includes items such as vegetables, meat, bones, dairy, grains, paper towels, pizza boxes, coffee filters, tea bags, landscape and pruning debris, and uncoated to-go containers.

Styrofoam and plastic materials remain prohibited in the green bin.

In addition to the operational and compliance changes, the rate structure has been updated to account for associated costs. These include City administration of the agreement, infrastructure improvements by WM, and compliance with both SB 1383 and other state mandates. However, the impact on customer rates has been,mitigated in part by the City's existing use of green bins for yard waste and the location of the new organics processing facility at Anderson Landfill, which allows for organic waste to be handled locally and eliminates the additional expense of transporting materials elsewhere.

Waste Management will continue to provide several additional services at no or reduced cost, including complimentary Christmas tree collection, an annual landfill disposal voucher available each April, and a discounted rate for senior residents. Seniors aged 65 or older remain eligible to receive one cart each for garbage, recycling, and organics at a 25 percent reduced rate.

The agreement and rate structure have been reviewed in detail by City staff and the City's solid waste consulting firm, R3 Consulting Group. The proposed rate schedule now bundles collection services for trash, recycling, and organics for both residential and commercial accounts. Below is a comparison of typical residential and commercial services. A complete listing of the proposed rates is included in Exhibit 2 of the amended agreement (Attachment 2).

ITEM 7.0 PAGE2 11/18/2025

MONTHLY RA TES

CURRENT PROPOSED
7/1/2025 1/1/2026
Residential Service
96 gal Solid Waste/ 96 gal Recycling/
64 gal Organics $26.19 $31.22
Commercial Service
4 yd Solid Waste lx/week / 64 gal
Recvclim? / 64 gal Organics $197.70* $244.05
*Rate for 4 yd Solid Waste lx/week only (not bundled with Recycling & Organics carts) Rates are contracted to adjust annually each fiscal year beginning July 1 based on the annual change in the Consumer Price Index (CPI): Urban Consumer - Garbage and Trash Collection, with no single CPI adjustment exceeding five percent (5%) or be lower than one percent (1 %). Any CPI amount exceeding 5% or below 1 % shall be carried over and applied to the following year or years, provided that the change in any year shall not exceed 5% or be lower than 1 %.

All waste-related rate increases are subject to California law, including Proposition 218 noticing requirements.

Proposition 218 Notice and Procedural Requirements
In 1996, Proposition 218 (Prop 218) was passed to add Articles 13C and 13D to the California Constitution. Article 13D imposes procedural and substantive limitations on certain types of fees. Prop 218's "majority protest" process is a significant legal and informational element to the rate-setting process for fees related to various utility services that are mandated for a real property parcel. This process adheres to the following steps:
• Notice must be mailed to all property owners and customers of record subject to the proposed rate adjustments (Attachment 3).
• A Public Hearing must be scheduled at least 45 days after mailing notices. The notices were mailed on October 2, 2025.
• Protests may be submitted in writing at any time up to the close of the public hearing. Only one protest per parcel is counted.
• If a majority protest (50% + 1) is not received, the City Council may proceed with a vote to adopt the proposed rate adjustments.
• If approved, the new rates will become effective January 1, 2026.

Protests received during the Proposition 218 period were recorded, and as of November 13, 2025, a total of 42 written protests were received.

Should the Council approve the proposed rate adjustments, the resolution outlined in Attachment 4 will be implemented.

ITEM 7.0 PAGE3 11/18/2025

I ATTACHMENTS

1. Current 2025 Waste Management Rate Sheet

2. Amended And Restated Refuse, Recycling and Organic Waste Agreement Between the City of Anderson and USA Waste of California, Inc.

3. Rate Adjustment Notification Letter

4. Proposed Resolution Amending Waste Management, Inc. Rates ITEM 7.0 PAGE4 11/18/2025
VII City of Anderson

UPDATED EXHIBIT B

SCHEDULE OF APPROVED BASE RATES
Monthly Rates Effective July 1, 2025
Residential Premises Rates
Trash Services
Senior Citizen (62 and older) Residential Service {64 Qallon carts onlv)• 64 Gallon Cart Residential Service
96 Gallon Cart Residential Service
Additfonal 64 Gallon Solid Waste Cart ..

Additlonal 96 Gallon Solid Waste Cart ..

Green Waste Services
64 Gallon Green Waste Cart (first 2 included with trash service) 96 Gallon Green Waste Cart (first 2 included with trash service) Additional 64 Gallon Green Waste Cart (after 2 included with service! Additional 96 Gallon Green Waste Cart (after 2 included with service) Recycle Services
64 Gallon Recvcle Cart (first 2 included with trash service) 96 Gallon Recycle Cart (first 2 included with trash service) Additional 64 Gallon Recycle Cart (after 2 included with service) Additional 96 Gallon Recycle Cart (after 2 included with service) Extra Pickuos
64 oallon Extra Pickup cart per event
96 gallon Extra pickup cart per event
Non-Service dav Extra pickup trip charoe
Special / Ancillary Services
New Account Activation Charge
Account Reactivation Charge • No Cart Delivery
Account Reactivation Charge • With Cart Delivery
Container Overage Charge • when material exceeds the container's intended capacity Side Yard Assisted Service • NOT medically justified
Side Yard Assisted Service • medically 1ustified
On-call bulky waste pick up for non-Quahfymg residents per cubic yard oer event On-call bulky waste pick up freon removal charge per unit Cart exchanQe in addition to once annually free exchange per event Bad Check/EFT Fee
Finance Charae oast due areater than 30 davs
Finance Charae oast due areater than 30 davs • minimum charae Replacement Cart-if due to customer nealiaence
Contamination in Recvclino or Oroanics Containers
•senior rate Is $11 .40 less than the 96 Gallon Cart Residential Servrce .. Additional carts are 80% of base rate
CPI Ad

4.00%
Rates Eff. CPI Rates Eff.
7/1/2024 Adlustment 7/1/2025
$13.78 NIA $14.79
$23.42 $0.94 $24.36
$25.18 $1.01 $26.19
$18.74 NIA $19.49
$20.14 N/A $20.95
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$8.70 $0.35 $9.05
$8.70 $0.35 $9.05
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$8.70 $0.35 $9.05
$8.70 $0.35 $9.05
$11.40 $0.46 $11.86
$12.26 $0.49 $12.75
$17.91 $0.72 $18.63
$39.85 $1.59 $41.44
$28.46 $1.14 $29.60
$74.02 $2.96 $76.98
$8.54 $0.34 $8.88
$10.25 $0.41 $10.66
$0.00 $0.00 $0.00
$152.15 $6.09 $158.24
$80.54 $3.22 $83.76
$35.80 $1.43 $37.23
$30.00 NIA $30.00

2.50% NIA 2.50%
$5.00 N/A $5.00
Market Rate N/A Market Rate
$32.03 $1 .28 $33.31
For City of Anderson residential customers who also maintain a City of Anderson commercial account in good standing and who use their commercial bin for disposal of their residential waste, the customer may elect to have only curbside recyclable and green waste residential service, and receive a no less than 33% discount off the 64 gallon residential service rate.

City of Anderson Maximum Rate Schedule July 1. 2024
City of Anderson

UPDATED EXHIBIT B

SCHEDULE OF APPROVED BASE RATES
Monthly Rates Effective July 1, 2025
Commercial Premises Rates
Commercial Cart Rates
64 Gallon Cart, once a week oickuo
96 Gallon Cart, once a week pickup
Commercial MSW Bin Rates
1 Cubic Yard Bin, once a week
1 Cubic Yard Bin, twice a week

1.5 Cubic Yard Bin, once a week

1.5 Cubic Yard Bin, twice a week

1.5 Cubic Yard Bin, three times a week
2 Cubic Yard Bin, once a week
2 Cubic Yard Bin, twice a week
2 Cubic Yard Bin, three limes a week
2 Cubic Yard Bin, four times a week pickup
2 Cubic Yard Bin, five times a week oickuo
2 Cubic Yard Bin, six times a week pickup
3 Cubic Yard Bin, once a week pickup
3 Cubic Yard Bin, twice a week 01ckup
3 Cubic Yard Bin, three times a week pickup
3 Cubic Yard Bin, four times a week p:ckup
3 Cubic Yard Bin, five times a week pickup
3 Cubic Yard Bin, six times a week pickup
4 Cubic Yard Bin, once a week pickup
4 Cubic Yard Bin, tw.ce a week cickuo
4 Cubic Yard Bin, three times a week pickup
4 Cubic Yard Bin, four times a week oickuo
4 Cubic Yard Bin, five times a week pickup
4 Cubic Yard Bin, six times a week p:ckup
6 Cubic Yard Bin, once a week pickup
6 Cubic Yard Bin, twice a week cickup
6 Cubic Yard Bin, three times a week pickup
6 Cubic Yard Bin, four times a week 01ckuo
6 Cubic Yard Bin, five times a week pickup
6 Cubic Yard Bin, six limes a week oickup
Commercial Recvcle Bin Rates
64 Gallon Cart. once a week pickup
Commercial Recvcle Bin Rates•
1 Cubic Yard Bin, once a week
1 Cubic Yard Bin. twice a week
2 Cubic Yard Bin. once a week
2 Cubic Yard Bin. twice a week
3 Cubic Yard Bin. once a week pickup
3 Cubic Yard Bin. twice a week cickup
4 Cubic Yard Bin once a week pickup
4 Cubic Yard Bm. twice a week oickup
6 Cubic Yard Bin once a week oickuo
6 Cubic Yard Bin, twice a week pickup
·Recvcle Bin Rates are at 75•10 of the MSW rates
City of Anderson Maximum Rate Schedule July 1. 2024
CPI Ad.

4.00%
Rates Eff. CPI Rates Eff.
7/1/2024 Adjustment 7/1/2025
$34.01 $1.36 $35.37
$35.50 $1.42 $36.92
$68.95 $2.76 $71.71
$131.73 $5.27 $137.00
$99.18 $3.97 $103.15
$158.23 $6,33 $164.56
$197.72 $7.91 $205.63
$124.30 $4.97 $129.27
$194.97 $7.80 $202.77
$254.00 $10.16 $264.16
$316.41 $12.66 $329.07
$373.33 $14.93 $388.26
$430.84 $17.23 $448.07
$154.64 $6.19 $160.83
$228.91 $9.16 $238.07
$302.90 $12.12 $315.02
$376.91 $15.08 $391.99
$447.63 $17.91 $465.54
$518.34 $20.73 $539.07
$190.10 $7.60 $197.70
$280.90 $11.24 $292.14
$375.16 $15.01 $390.17
$464.50 $18.58 $483.08
$555.35 $22.21 $577.56
$646.18 $25.85 $672.03
$252.46 $10.10 $262.56
$360.17 $14.41 $374.58
$464.50 $18.58 $483.08
$572.16 $22.89 $595.05
$676.53 $27.06 $703.59
$784.22 $31.37 $815.59
$25.51 $26.53 $26.53
$51.71 $53.78 $53.78
$98.80 $102.75 $102.75
$93.23 $96.95 $96.95
$146.23 $152.08 $152.08
$115.98 $120.62 $120.62
$171.68 $1 78.55 $178.55
$142.58 $148.28 $148.28
$210.68 $219.11 $219.11
$189.35 $196.92 $196.92
$270.13 $280.94 $280.94
Vil ·•
City of Anderson

UPDATED EXHIBIT B

SCHEDULE OF APPROVED BASE RATES
Monthly Rates Effective July 1, 2025
Extra Pickuo Services
64 gallon cart per event (service day only)
96 gallon cart oer event (service day only)
1 cubic yard bin per event (service day only)

1.5 cubic vard bin oer event (service dav onlv)
2 cubic yard bin per event (service day only}
3 cubic yard bin oer event (service day onlv)
4 cubic yard bin per event (service day only}
6 cubic vard bin oer event (service day only)
Spacial / Ancillarv Services
New Account Activation Charge
Account Reactivation Charge - No Delivery
Account Reactivation Charge - With Delivery
Key charge when container access requires driver to remove lock per month Walk in/Pull Out per Bin oer Service
Snapshot charge (bin too full for lid to close)
Bad Check/EFT Fee
Finance Charge past due greater than 30 days
Finance Charge past due greater than 30 days - minimum charge Replacement Bin-if due to customer neciligence
I1_;ontam1na11on 1n Kecycnng or urgamcs 1_;onta1ners
Compactor and Debris Box Rates
Compactors
3 Cubic Yard Compactor once a week pickup
3 Cubic Yard Compactor, twice a week pickup
4 Cubic Yard Compactor, once a week pickup
4 Cubic Yard Compactor. twice a week Pickup
Debris Boxes
20 Cubic Yard Debris Box. per pull (includes 3 tonsl*
25 Cubic Yard Debris Box per pull (includes 3 tons)*
30 Cubic Yard Debris Box. per oull (includes 3 tens)*
40 Cubic Yard Debris Box. per pull (includes 3 tons)•
Less than 30 Cubic Yard Compactor, per pull
30 to 40 Cubic Yard Comoactor, oer pull
Special I Ancillary Services
New Account Activation Charge
Min Haul Charoe - 7 day rental charged per day on 8th dav Trip Charae (WM unable to service due to non WM caused circumstance) Relocation Charoe {Move box to new location on customers current S!le) Bad Check/EFT Fee
Finance Charge past due greater than 30 days
Finance Charae oast due areater than 30 davs - mlnimum charae Replacement Bin-if due to customer negligence
•Any tonnage in excess will be charged the landfill rate plus applicable franchise fees.

City of Anderson Maximum Rate Schedule July 1, 2024
CPI Ad

4.00%
$17.02 $0.68 $17.70
$17.91 $0.72 $18.63
$32.17 $1.29 $33.46
$46.32 $1.85 $48.17
$62.19 $2.49 $64.68
$77.32 $3.09 $80.41
$95.02 $3.80 $98.82
$126.25 $5.05 $131.30
$39.85 $1.59 $41.44
$28.46 $1.14 $29.60
$74.02 $2.96 $76.98
$6.36 $0.25 $6.61
$20.57 $0.82 $21.39
$181.88 $7.28 $189.16
$30.00 NIA $30.00

2.50% NIA 2.50%
$5.00 NIA $5.00
Market Price NIA Market Price
$65.60 $2.62 $68.22
Rates Eff. CPI Rates Eff.
7/1/2024 Adiustment 7/1/2025
$463.91 $18.56 $482.47
$686.75 $27.47 $714,22
$570.22 $22,81 $593.03
$843.90 $33,76 $877.66
$563.24 $22.53 $585.77
$588.27 $23.53 $611.80
$629.46 $25.18 $654.64
$683.19 $27,33 $710.52
$713 54 $28.54 $742.08
$754.73 $30.19 $784.92
$39.85 $1,59 $41 ,44
$12.69 $0.51 $13.20
$190 34 $7,61 $197.95
$190.34 $7.61 $197.95
$30.00 NIA $30,00

2.50% NIA $0.03
$5.00 NIA $5.00
Market Price NIA Market Price
w
CPl•AII Urban Consumers (Current Serles)
Serles Id: CUUROOOOSAO
Nol Seasonally Adjusted
Serles Title: AH items in U.S. city average, all uman consumers, not seasonally adjusled
Area: U.S. city average
Item: All ilems
Base Period: 1982-84z 100
Year _, .,...., 20U 247.867 248.991 249l'lar
.554 250.546
..... \
~
251,588 - 201!1 251.712 252.776 254.202 255.548 I 2S6.09r'° 2020 257.971 258.678 258.115 256.389 256.394
2021 261.582 263.014 264.877 267.054 269.195
2022 ~ 283.716 287.504 289,109 292.296
2023 • 299.17 300.81 301.836 303.363 304.127
2024 308.417 310.326 312.332 313.548 314.069
2025 317.671 -319.082 319.799
.iun
fst:~
257.797
271.696
296.311
305,109
314,175
lndc,: Pomt ChangeCurren! Year CPI
Minus Prior Year CPI
Equals Index Point Change
CPI Percentage Change ..
12 Months Ending Dec 2023 304. 702
12 Months Ending Dec 2024 313.689

8.987
Prev Year Carry Over
Calculated Adjustmenl
Applied 4% Cap
Ca Over for Next Yea(s Ac!"ustment
~- MIii
252.006 25~} 46 252.439 - 252.885 - --1----·-
256.571 256.558 256.759 257.346
259.101 259.91_8 269,28 260.388
273.003 273.567 274.31 276.589
296.276 296.171 296.808 298.012
305.691 307.026 307.789 307.671
314.54 314.796 315.301 315.664 - --
nvY
~ 2.038
257.208
2§.!).229
277.948
297.711
307.051
315A93
--

2.95%

4.82'!4

7.77"A.

4.00%

3.77%
251.233 -
256.974
260.4~
2zs.J102
296.797
306.746
315.605
·--
a
b
C
d=clb
111\Ruao
251.107
2S5.657
c-~
258.811
270.97
292.655
304.702
313.689
uocus1gn 1;nve1ope 1u: i:,1.,Ao<!t>.)A-0::,41;-4u1;.)-l:lt:10l:l-4::,1,n-::,1,,1,,.).).) It"

AMENDED AND RESTATED REFUSE, RECYCLING AND ORGANIC WASTE

AGREEMENT

BETWEEN THE CITY OF ANDERSON
AND
USA WASTE OF CALIFORNIA, INC.

THIS REFUSE, RECYCLING AND ORGANIC WASTE AGREEMENT (this "Agreement") is between the City of Anderson, a municipal corporation (the "City"), and USA Waste of California, Inc. (the "Company").

RECITALS
WHEREAS, the City and the Company are parties to that certain REFUSE, RECYCLING AND GREEN WASTE Agreement executed on September 24, 2015 ("2015 Agreement"), and the parties desire to supersede, amend and restate the 2015 Agreement on the terms and conditions provided herein.

WHEREAS, The City desires to provide for garbage, recyclables and organic collection services in accordance with the authority granted to the City by Public Resources Code Section 49300 and Chapter 8.65 of the Anderson Municipal Code.

WHEREAS, the Company possesses the equipment, skill, and expertise to provide the necessary services.

By Resolution No. _ , the City Council of City duly approved this Amended and Restated Agreement, together with the Franchise Fee, Company payments to City, and other City-imposed fees provided for in the Agreement (collectively "City-Imposed Fees"), and found and determined that such City-Imposed Fees were both necessary and reasonably reflect, or are less than, the actual costs City that will incur in the administration of the contracted services, compliance with mandatory state laws and regulations related to the contracted services, and to mitigate the impacts contracted services will have on City streets.

In consideration of the mutual covenants in this Agreement, as amended and restated, and intending to be .legally bound, the parties agree as follows:
l. DEFINITIONS.

For purposes of this Agreement, the following words or phrases shall have the following meanings. l.l AB 341. "AB 341" means State of California Assembly Bill No. 341 approved October 5. 2011. AB 341 requires businesses, defined to include commercial or public entities that generate more than 4 cubic yards of commercial Solid Waste per week or multifamily residential dwellings of 5 units or more, to arrange for Recycling services and requires jurisdictions to implement a commercial Solid Waste Recycling program.

Page 1 of 45 ends

1.2 AB 827. "AB 827" means State of California Assembly Bill No. 827 approved October 02, 2019. AB 827 requires businesses that are mandated to recycle under AB 341 ("MCR") and/or mandated to recycle Organic Waste under AB 1826 (''MORe") or SB 1383 and that provide customers access to the business, to provide customers with a Recyclable Materials bin and/or Organic Waste Collection bin for those waste streams that is visible, easily accessible, and adjacent to each Bin or Container for trash.

1.3 AB 939. "AB 939" or ;'The Act" means ''The California Integrated Waste Management Act of 1989", codified in part in Public Resources Code §§ 40000 et seq., and such regulations adopted by California Department of Resources Recycling and Recovery (CalRecycle) for implementation of the Act, or its successor agency, including but not limited to, the Jobs and Recycling Act of 2011 (AB 341), SB 1016 (Chapter 343, Statues of 2008 [Wiggins, SB 1016]), and the Mandatory Commercial Organics Recycling Act (AB 1826).

1.4 AB 1594. "AB 1594" means State of California Assembly Bill No. 1594, approved September 28, 2014. AB 1594 provides that as of January 1, 2020, the use of green material as Alternative Daily Cover does not constitute Diversion through Recycling and would be considered Disposal.

1.5 AB 1826. "AB 1826" means State of California Assembly Bill No. 1826, approved September 28, 2014. AB 1826 requires each jurisdiction, on and after January 1, 2016, to implement an Organic Waste Recycling program to Divert from the landfill Organic Waste from businesses. Each business meeting specific Organic Waste or Solid Waste generation thresholds phased in from April 1, 2016, to January 1, 2020, is required to arrange for Organic Waste Recycling services.

1.6 Applicable Law. Any foreign, federal, state, regional, or local rule, law, regulation, ordinance, order, judgment, decree, permit or administrative agency guidelines having an impact on the Agreement that are in force on the Effective Date of the Amended and Restated Agreement, and as may be enacted, issued, or amended thereafter, including, without limitation, the City's Municipal Code, the California Integrated Waste Management Act of 1989 (Public Resources Code Section 40000 et seq.) as amended as of the Effective Date, inclusive (without exclusion to other amendments not referenced here) of AB 939, AB 341, AB 1826, AB 1594, SB 1383, and inclusive of all regulations implementing the same. It shall also include SB 54, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, and the California Air Resources Board Advanced Clean Fleets regulations (2023 ).

1. 7 Bins. A metal or plastic container, with a capacity of one ( 1) cubic yard up to and including six (6) cubic yards, designed or intended to be mechanically dumped into a loader packer type truck, that is used for the Collection of C&D Debris, Organic Waste, Recyclable Materials or Refuse.

1.8 Bulky Waste. Large discarded items including, but not limited to, household appliances, furniture, un-mounted tires, carpets, mattresses, and other oversize materials whose large

Page 2 of 45 ends

UOCUSl\,111 CflVtllOIJtl IU. ::lvl'\O~O.)l'\•O:l'+C ... UC.:>-::IDO::l ... :>::,r::,1.,1.,.:,.:,.:, Ir size precludes or complicates their handling by normal Collection methods, but can be Collected without the assistance of special loading equipment (such as forklifts or cranes) and without violating collection vehicle legal load limits. Bulky Items do not include abandoned automobiles, large auto parts, or trees.

1.9 City Representative. The City Administrator or his/her designee.

1.10 Cart. A heavy plastic receptacle with wheels and a rated capacity not exceeding ninety-six (96) gallons, having a hinged tight-fitting lid, and wheels for the Collection of Organic Waste, Recyclable Materials or Refuse.

1.11 City Services. The Collection and Disposal or Processing of Refuse, Recyclable Materials and, starting January 1, 2026, Organic Waste from City-owned and operated Premises.

1.12 Collect or Collection. The process whereby C&D Debris, Organic Waste, Recyclable Materials or Refuse is removed from a Premises and transported to the Designated Disposal Site, Processing Facility or other appropriate facility.

1.13 Commercial Organic Waste Service. The Collection and Processing of Organic Waste from Commercial Premises.

1.14 Commercial Premises. Any Premises which is other than a Residential Premises, including, but not limited to, those which operate for business, religious, medical, or governmental (unless excluded by Applicable Law) purposes, as well as Multi-Family Complexes.

1.15 Commercial Recycling Service. The Collection and Recycling of Recyclable Materials from Commercial Premises.

1.16 Commercial Refuse Service. The Collection and Disposal of Refuse from Commercial Premises.

1.17 Commercial Services. Commercial Organic Waste Service, Commercial Recycling Service, and Commercial Refuse Service.

1.18 Compactor. Any Roll-Off Container that has a compaction mechanism, whether stationary or mobile.

1.19 Construction and Demolition Debris or C&D Debris. Used or discarded materials resulting from construction, remodeling, repair or demolition operations on any type of structure, but not including any Excluded Waste.

1.20 C&D Debris Services. The Collection and Disposal or Recycling of C&D Debris, including Recyclable C&D, from Premises in the Service Area. C&D Debris shall not be deemed Refuse.

Page 3 ends

1.21 Container. Any and all types of receptacles, including Carts, Bins and Roll-Off Containers, used pursuant to the terms of this Agreement for the Collection of Refuse, Recyclable Materials, Organic Waste, C&D Debris, or other Solid Waste.

1.22 Contamination. Materials placed in a Recyclable Materials Container other than Recyclable Materials, or material placed in an Organic Waste Container other than Organic Waste.

1.23 Curb or Curbside. That part of a Premise within five feet of the Public Street or alley, without blocking sidewalks, driveways or on-street parking. If extraordinary circumstances preclude such a location, Curbside shall be considered a placement suitable to the Premises, convenient to the Company's equipment, and mutually agreed to by the Premises and the Company.

1.24 Customer. The occupant ( e.g., owner or tenant) of a Premises in the Service Area which receives Franchise Services.

1.25 Disposal. Has the meaning provided in PRC Section 40120.1 or successor laws and regulations as may be amended from time to time.
t .26 Designated Disposal Site. The West Central Landfill.

1.27 Effective Date. January I, 2026, the date that Franchise Services shall commence under this Agreement.

1.28 Excluded Materials or Excluded Waste. Material that: (a) is prohibited from receipt at a Designated Disposal Site or Processing Facility by state, federal or local law, regulation, rule, code, ordinance, order, license, permit or permit condition; (b) is or contains Hazardous Waste as defined below or any bio-solids; or (c) the Collection or Disposal of otherwise violates Applicable Law.

1.29 Food Waste. '"Food Waste" means (l) food scraps, including all edible or inedible food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, coffee grounds, and eggshells; and (2) food-soiled paper, which is compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, and pizza boxes.

Food Waste excludes fats, oils, and grease when such materials are Source Separated from other Food Waste.

1.30 Franchise Materials. All Solid Waste generated or coming to exist in the Service Area, except where excluded pursuant to Section 2.3. It is the intention of the Parties to maximize the scope of the Company's exclusive franchise within the Service Area by including within the definition of nFranchise Materials" those materials that can be safely Collected, Disposed of or Processed using commercially reasonable methods.

Page 4 of 45 ends

1.31 Franchise Services. City Services, Commercial Services, C&D Debris Services. and Residential Services.

1.32 Green Waste. All tree and plant trimmings, grass cuttings, dead plants, weeds, leaves, branches, and similar materials that fit into a Cart, but not including Excluded Waste or items with a diameter greater than 10 inches.

1.33 Organic Waste Processing Facility. The facility(ies) used by the Company for handling, processing, and preparing collected Organic Waste for marketing or other use.

1.34 Hazardous Waste. Has the meaning provided in PRC Section 40141 or successor laws and regulations as may be amended from time to time.

1.35 Household Hazardous Waste (or HHW). Has the meaning set forth in California Health and Safety Code Section 25218 and in Title 14, CCR, Section 18502 or successor laws and regulations as may be amended from time to time, but not including any Excluded Waste.

1.36 Inaccessible Area. Any road, alley or property that does not allow safe access, tum-around, or clearance for standard collection vehicles.

1.37 Multi-Family Complex. A residence, which may include one or more buildings, with four (4) or more dwelling units, when each dwelling unit is designed for occupancy by one (1) or more individuals. Multi-Family Complexes shall be considered Commercial Premises. For purposes of this Agreement, mobile home parks utilizing Bin-based Refuse services and centralized billing shall be Multi-Family Complexes.

1.38 Organic Waste. Food Waste and Green Waste.

1.39 Overage. Overage is defined as (i) Refuse, Recyclable Materials or Organic Waste exceeding its Container's intended capacity such that the lid is lifted at least 10 inches (or would be lifted at least l O inches iflowered) or (ii) Refuse, Recyclable Materials or Organic Waste placed on top of or in the immediate vicinity of the Container, in bags or otherwise. l .40 Owner. The person(s) or entity(ies) holding legal title to a Premises.

1.41 Parties. The City and the Company.

1.42 Premises. Any parcel of real property in the Service Area where Solid Waste is produced, generated or accumulated, and includes Commercial Premises and Residential Premises.

1.43 Private Drive(s). A privately owned or maintained way serving less than one Residential Premises for every 100 yard distance.

Page 5 of 45 ends

uocusIgn t:nveIope 1u: i11.,J\0"0"J\-00<1t:-41Ut:.>-l::IDOl:l-41:>1:lr-::>l,v.).).) 1 r1.44 Private Road(s). A privately owned or maintained way that allows for access by a small wheel base service truck and which serves four or more Residential Premises.

1.45 Processing or Process. An operation or series of operations, whether involving equipment, manual labor, or mechanical or biological processes, that sorts, enhances, upgrades, concentrates, decontaminates, packages or otherwise prepares Solid Waste and returns them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace. Processing begins at the time Solid Waste is delivered to the Processing Facility and ends when the finished Processed materials are sold or reused, and the residue is properly Disposed.
1 .46 Processing Facility. Any facility selected by Company which is designed, operated and legally permitted for the purpose of receiving and Processing Organic Waste, Recyclable C&D and/or Recyclable Materials.

1.47 Public Street(s). A public way used for public travel.

1.48 Recyclable C&D. C&D Debris that is placed in a Bin, Roll-Off or other receptacle, at least 95% of which will be recycled.

1.49 Recyclable Materials or Recyclables. Materials set forth in Exhibit l attached hereto. This definition of Recyclable Materials shall also include Recyclable Materials commingled with non-Recyclable Materials, so long as (a) non-Recyclable Materials constitute 10% or less of the total commingled volume and weight, and (b) the commingled materials do not contain any Excluded Waste or Unacceptable Materials. The list of Recyclable Materials may be modified upon written agreement of the parties.

1.50 Recycle or Recycling. The Processing of Recyclable C&D or Recyclable Material.

1.51 Refuse. Solid Waste which is permitted for disposal in a Class III landfill and which has been placed in a Container with the intention of Collection and Disposal, but excludes Excluded Waste.

1.52 Residential Premises. A residence, which may include one or more buildings, with three (3) or fewer dwelling units, when each dwelling unit is designed or used for occupancy by one (1) or more individuals. However, mobile home parks utilizing Binbased Refuse services and centralized billing shall be Multi-Family Complexes, which are deemed Commercial Premises.

1.53 Residential Organic Waste Service. The Collection and Processing of Organic Waste from Residential Premises.

1.54 Residential Recycling Service. The Collection and Recycling of Recyclable Materials from Residential Premises.

Page 6 of 45 ends

1.55 Residential Refuse Service. The Collection and Disposal of Refuse from Residential Premises.

1.56 Residential Services. Residential Organic Waste Service, Residential Recycling Service and Residential Refuse Service.

1.57 Roll-Off Container. A metal Container with a capacity of ten (10) or more cubic yards that is normally loaded onto a motor vehicle and transported to an appropriate facility.

1.58 SB 54. "SB 54" means State of California Senate Bill 54, Plastic Pollution Prevention and Packaging Producer Responsibility Act, approved June 30, 2022, and the regulations implementing the law, adding Chapter 3 within Part 3 of Division 30 of the California Public Resources Code.

1.59 SB 1383. "SB 1383" means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 ( commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.

1.60 Self-Haul. The process of whereby Solid Waste is removed from any premises, and which is transported personally by the owner or occupant of such premises ( or by his or her employees) to any legally permitted processing or disposal site and in accordance with the requirements of the Municipal Code.

1.61 Service Area. The jurisdictional boundary of the City including all areas hereafter annexed or otherwise added to the territorial limits of the City.

1.62 Solid Waste. Defined in California Public Resources Code Section 40191, as that section may be amended from time to time, but excluding Exempt Waste.

1.63 Special Services. Specific service-related activities, including without limitation lock, gate, and long walk services, or other services for which no rate is established by the City, that is provided by the Company to Customers for which the Company may charge an additional fee.

1.64 State. The State of California.

1.65 Unacceptable Materials. Microwave trays, mirrors, window or auto glass, light bulbs, ceramics, porcelain, plastics unnumbered, plastic bags, coat hangers, glass cookware household items such as cooking pots, toasters, etc., and materials containing chemical or other properties which are deleterious or capable of causing material damage to any part of Company's property, its personnel or the public, or materially impairing the strength or the durability of the Company's structures or equipment.

Page 7 of 45 ends

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1.66 Uncontrollable Circumstances; Force Majeure. Any acts of God, such as landslides, lightning, fires, stonns, floods, pestilence, freezing, and earthquakes, explosions, sabotage, civil disturbances, acts of a public enemy, wars, blockades, riots, labor unrest, epidemics (if waste management employees are deemed "non-essential workers" or otherwise not permitted to work) , eminent domain, condemnation or other taking, unfavorable market conditions for those commodities associated with Recyclable Materials, or other events of a similar nature, not caused by the negligence or willful misconduct City or Company, which event is not reasonably within the control of the Party claiming the excuse from its obligations due to such event, to the extent such event has a material adverse effect on the ability of a Party to perfonn its obligations thereunder. In order to constitute a force majeure, the event must be the proximate cause of the nonperfonnance of the contract. Events which could have been prevented by reasonable precautions, including compliance with agreements and applicable laws, shall not be considered an Uncontrollable Circumstance.

2. GRANT OF EXCLUSIVE AGREEMENT.

2.1. Scope of Exclusive Franchise. Except as provided in Section 2.3 below, City hereby grants to Company, for the tenn hereinafter set forth, the exclusive right and privilege to perform the Franchise Services. Except as provided in Section 2.3 below, participation in the Company's Franchise Services shall be mandatory for all Premises in the Service Area.

The Company shall dispose of all Refuse collected under this Agreement at the Designated Disposal Site.

2.2. Company Responsibility. Company hereby accepts and assumes responsibility to perform and fulfill all the terms, covenants, conditions, and obligations required under this Agreement. Company agrees to perform all of its obligations under this Agreement for the term hereof. Company shall furnish all the labor and equipment necessary for the Franchise Services, subject to the terms, conditions and provisions of this Agreement.

2.3. Exceptions to Franchise. The categories of materials and services listed below may be collected or provided by others, provided that nothing in this Franchise Agreement is intended to or shall be construed to excuse any person from obtaining any authorization from the City which is otherwise required by law:

2.3.1 . Compactors for Recyclable Materials. Rental, lease or sale of Compactors, provided that such equipment is compatible with Company equipment and that the Company shall have the exclusive right to provide Collection services for Compactors (unless Section 2.3.4 applies).

2.3.2. Self-Haul. Customers may choose to Self-haul Solid Waste to Disposal or Processing Facilities, to the extent authorized by the Municipal Code.

2.3.3. Gardeners and Landscapers. The collection, transportation, and disposal of Green Waste and related Solid Waste by a gardener, or landscaper, as an incidental

Page 8 ends

part of the gardening or landscaping services provided to its customers, rather than as a hauling service, provided that such Solid Waste is not collected or transported by a third party hired for the primary purpose of collecting and transporting said materials.

2.3.4. Incidental Hauling of Construction and Demolition Debris. C&D Debris that is incidentally removed by a duly licensed construction or demolition contractor as part of a total service offered by such licensed company, and where the licensed company uses its own equipment and employees.

2.3.5. Sold Recyclable C&D. Collection and Recycling of Recyclable C&D by a third party, provided at least ninety-five percent (95%) of each load is actually Recycled and for which the generator receives payment. To the extent permitted by law, if the generator is required to pay monetary or non-monetary consideration for the collection, transportation, transfer, or processing of Recyclable C&D to any person or entity other than Company, the fact that the generator receives a reduction or discount in price ( or in other terms of the consideration the generator is required to pay) shall not constitute "receiving payment," and such Recyclable C&D shall be exclusive to Company.

2.3.6. Sold Recyclables. Collection and Recycling of Recyclable Materials by a third party for which the generator receives payment. To the extent permitted by law, if the generator is required to pay monetary or non-monetary consideration for the collection, transportation, transfer, or processing of Recyclable Materials to any person or entity other than Company, the fact that the generator receives a reduction or discount in price ( or in other terms of the consideration the generator is required to pay) shall not constitute "receiving payment," and such Recyclable Materials shall be exclusive to Company.

2.3.7. Donated Recyclable Materials. Recyclable Materials or Recyclable C&D that are donated by the generator to a third party not in the business of collecting and/or recycling products. This provision is enforceable only to the extent permitted by Applicable Law.

2.3.8. State Governmental Entities. The Company's exclusive franchise in this Agreement shall not include facilities owned by the State of California if and to the extent the City has no legal power to include them in the exclusive franchise.

Regardless of the above exceptions, each Commercial and Residential Premises must pay for Company's Commercial or Residential Refuse Services, respectively.

2.4. Term of Agreement. The initial term of this Agreement shall be for the period commencing on the Effective Date, January t, 2026, and ending on June 30, 2035 (the "Initial Term"), unless terminated earlier pursuant to Section 6.5 of this Agreement.

Thereafter, this Agreement may be extended for up to two successive renewal terms of four years each (each a "Renewal Term") in the parties' mutual discretion. The parties may exercise each Renewal Term in a writing executed by both parties at least 180 days'

Page 9 of 45 ends

uocus1gn cnve1ope 1u. l:lvl'\0-'0.)1'\-0:>4C-4UC.)-l:ll:IOl:l_,.:>l:lt":>vv-'.)" 1 ,- prior, or a lesser period mutually agreed upon by the parties, to the end of the Initial Tenn or any applicable Renewal Tenn.

2.5. Title to Solid Waste. Once Franchise Materials are placed in Company's or other approved Containers and at the Collection location, or is otherwise set-out for Collection in an approved manner, the responsibility for their proper handling shall transfer directly from the generator to Company. Once Franchise Materials are deposited by Company at the Designated Disposal Site or Processing Facility, such materials shall become the responsibility of the owner or operator of such facility. Responsibility for any Hazardous Waste commingled with Franchise Materials that has been inadvertently collected by the Company shall remain with the Company ifit cannot identify the generator, and Company shall assume all responsibility for its proper Disposal.

2.6. Anti-Scavenging Enforcement. Contractor may enforce the exclusivity provision of this Agreement against third party violators, including but not limited to seeking injunctive relief, and the City may cooperate in such enforcement actions brought by Company in its sole discretion.

2.7. Non-Compaction of Franchise Materials. Customers may not, itself or through another party, compact material placed in Company-provided containers, as such compaction may damage Company containers.

3. FRANCHISE FEE.

3. I. City Franchise Fee. On or before the 15th day of each month during this Agreement, Company shall pay City a "Franchise Fee" of eight percent (8%) of all Gross Revenue received by Company under this Agreement during the previous month. For purposes of this Agreement, "Gross Revenue" means revenue actually received from Customers for their payment of Rates. Gross Revenue does not include revenue from non-exclusive services or the sale of Recyclable Materials.

3.2. Late Payments. If the Franchise Fee is not paid on time, Company shall pay City ten percent (I 0%) interest per year or the maximum amount permitted by law, whichever is less.

3.3. Records. Company shall maintain records evidencing or relating to charges for services, or disbursements to City and the Collection and disposition of Franchise Materials for a minimum period of three (3) years, or for any longer period required by Applicable Law, from the date of final payment to Company pursuant to this Agreement. Company shall maintain all documents and records that demonstrate performance under this Agreement, including those required under Exhibit 4, Section 4, for a minimum period of three (3) years, or for any longer period required by Applicable Law, from the date of termination or completion of this Agreement. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City. Copies of such documents shall be provided to City for inspection at City Hall when it is practical to do so. Otherwise,

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unless an alternative is mutually agreed upon, the records shall be available at Company's address indicated for receipt of notices in this Agreement. Unless otherwise provided by law, records that Company considers confidential shall be reviewed only at Company's office and may not be copied or removed unless the City and Company have agreed upon a protocol to ensure their continued confidentiality. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Company's business, City may, by written request or demand, require that 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 Company, Company's representatives, or Company's successor-in-interest.

3.4. Audit. The relevant books and records of Company shall be subject to audit and inspection for the purpose of reviewing operations, accounts receivable and customer service, by either Party, its auditors or other agents, at any reasonable time upon reasonable notice.

Such audit or inspection shall take place at a City facility, if reasonably practicable. The City shall initially bear the cost of such audit. If such audit discloses a material breach of this Agreement or an underpayment of other sums due to the City under this Agreement in excess of five percent (5%) of the amount which should have been paid, Company shall promptly tender to the City the amount of such underpayment, together with annual interest at the rate of ten percent (10%) computed from the date of underpayment, and shall further reimburse the City for the entirety of its audit costs, including, without limitation, auditor's costs and expenses, internal costs and expenses, and legal and other third party expenses. If such audit discloses an underpayment of less than five percent (5%), Company shall promptly repay such underpayment, together with annual interest at the rate often percent (10%) computed from the date of underpayment, and the City shall bear the costs of the audit. If such audit discloses an overpayment, the City shall promptly repay such underpayment and the City shall bear the costs of the audit. Unless otherwise provided by law, records that Company considers confidential shall be reviewed only at Company's office and may not be copied or removed unless the City and Company have agreed upon a protocol to ensure their continued confidentiality.

4. SERVICES PROVIDED BY COMPANY. Company shall, in accordance with the terms of this Agreement and Applicable Law, provide all labor, materials, facilities, services and equipment necessary to perform the Franchise Services.

4.1 . Residential Services.

4.1.1. Carts. Company shall provide each Residential Premises one ( 1) 96 gallon or 64 gallon Cart designated for the Collection of Refuse (a "Refuse Cart"), one (1) 64 gallon Cart designated for the Collection of Recyclable Materials (a "Recyclables Cart"), and one (1) 96 gallon Cart designated for the Collection of Organic Waste (an "Organic Waste Cart"). Any Customer requesting smaller Carts will be provided with sixty-four (64) gallon Carts by Company instead of the standard ninety-six (96) gallon Carts noted above. Company may utilize Carts that were distributed to Customers in connection with the prior franchise agreement to satisfy is obligations under this Agreement. Until January 1, 2026, only Green Waste may be placed by

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Customers in the Organic Waste Carts. Starting January 1, 2026, Green and Food Waste may be placed in the Organic Waste Carts.

4.1.2. Cart Replacement. Company, without expense to the City or Customers, and within five work days after notice, shall provide one free replacement every four years of Carts that are lost, stolen or damaged (regardless of cause). Company may charge for additional replacement Carts based on the actual cost of the Carts and their delivery. Customers will be able to make a change in Cart size or number of Carts once every twelve months at no additional replacement cost. Company, without expense to the City or the Customer, shall provide Refuse Carts to a new Customer that has no such Carts within five work days of written request ( 14 days for Recyclables Carts and Organic Waste Carts). Company shall own and maintain all Carts at its expense, except as provided in this paragraph.

4.1.3. Curbside Placement. Customers shall place Carts at Curbside for Collection. If a Customer and Company cannot agree upon a Collection location, or if City determines the selected location may cause safety or other concerns, City may make the final determination of the Collection location. Customers must place Carts two feet apart from each other and five feet away from other obstacles like parked cars.

4.1.4. Frequency. Except as otherwise provided herein, (a) Residential Refuse Service shall be provided one ( 1) time per week in compliance with the approved Collection schedule, (b) Residential Recycling Service shall be provided every other week in compliance with the approved Collection schedule, and ( c) Residential Organic Waste Service shall be provided every week in compliance with the approved Collection schedule. Collection shall be scheduled so that a Customer receives Residential Refuse Service, Residential Recycling Service, and Residential Organic Waste Service on the same weekday. The Company will only provide Residential Recycling Service to Residential Premises that receive and pay for Residential Refuse Service.

4.1.5. Schedule. Collections will be between 6:00 a.m. and 6:00 p.m., Monday through Friday. The hours, day, or both, of Collection shall be extended during periods of Force Majeure, in which case Company will give written notice to the City and the prior written consent of a City Representative will be required.

4.1.6. Company shall provide Residential Services with as little disturbance as possible and shall leave any Cart in an upright position at the same point it was collected, without obstructing alleys, roadways, driveways, sidewalks or mailboxes. Company shall promptly clean-up any spilled Franchise Materials caused by Company.

4.1.7. Senior Residential Services. Senior citizens may receive Residential Services (one Cart for each of Refuse, Recyclable Materials and Organic Waste) at the rate provided in Exhibit 2. In order to qualify for the reduced senior rate, the account holder residing at the property must be 65 years of age or older, as shown by driver's license or other identification acceptable to the City.

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4.2. Commercial Services.

4.2.1. Bundled Service. For the Commercial Solid Waste Collection Service system, Company shall provide Refuse Conatiners as requested by the Commercial Customer, and include at no additional cost one ( 1) 64-gallon blue Recyclable Materials Cart and one (1) 64-gallon green Organic Waste cart service as part of the base bundled Commercial Collection Service. Additional services may be requested by the Commercial Customer. To be exempted from Commercial Recyclable Materials Service or Commercial Organic Waste Collection Service, Customer must apply for exemption to the Company. All such exemption applications must be reported and approved by the City.

4.2.2. Commercial Refuse Service. Company shall provide Commercial Refuse Service as frequently as negotiated with each Commercial Premises, but in no event less than once per week. Company will work with each Customer to customize the appropriate level of service. Customers will have the option to select the appropriate Cart size or 1, 1.5, 2, 3, 4, and 6-cubic yard bins for Commercial Refuse Service. The 6-cubic yard bins will not have wheels. Refuse Containers shall be provided within fifteen ( 15) working days of sign-up and provision of a proper site. Refuse Containers shall be sited in accordance with all policies and regulations of the City.

4.2.3. Commercial Recycling Service. Company shall provide Commercial Recycling Service as frequently as negotiated with each Commercial Premises, but in no event less than every other week. Company will work with each Customer to customize the appropriate level of service. Customers will have the option to select the appropriate Cart size or 2, 3, 4, and 6-cubic yard bins for Commercial Recycling Service. The 6- cubic yard bins will not have wheels. Recycling Containers shall be provided within fifteen (15) working days of sign-up and provision of a proper site. Recycling Containers shall be sited in accordance with all policies and regulations of the City.

4.2.4. Commercial Organic Waste Service. Company shall provide Commercial Organic Waste Service as frequently as negotiated with each Commercial Premises, but in no event less than every week. Company shall provide Commercial Organic Waste Service as frequently as negotiated with each Customer, but in no event less than every week. Company will work with each Customer to customize the appropriate level of service. Customers will have the option to select the appropriate Cart size or 2. 3, 4, and 6-cubic yard bins for Commercial Organic Waste Service.

The 6-cubic yard bins will not have wheels. Organic Waste Containers shall be provided within fifteen ( 15) working days of sign-up and provision of a proper site.

Organic Waste Containers shall be sited in accordance with all policies and regulations of the City.

4.2.5. Schedule. Collections from Commercial Premises will be between 4:00 a.m. and 6:00 p.m., Monday through Friday. The hours, day, or both of Collection may be extended due to during periods of Force Majeure, in which case Company will give written notice to the City and the prior written consent of a City Representative will

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be required.Notwithstanding the foregoing, in the event required by unusual or emergency circumstances, or temporary changes needed to accommodate seasonal fluctuation in Collection needs, the City may authorize a modification to the above time limitations in its sole discretion.

4.3. C&D Debris Services.

4.3.1. Company shall have the exclusive right to provide C&D Debris Services, except as provided in Section 2.3. Company my impound containers in violation of Company's exclusive rights, and charge towing and storage fees before releasing such containers to the owner. Any impoundment will be done consistent with California law with any required notice provided to the violating party in advance of the impoundment.

4.3.2. Company shall provide C&D Debris Services as frequently as negotiated with each Customer. Company will work with each Customer to determine the appropriate Bin or Roll-Off Container and frequency of service.

4.3.3. Company shall encourage builders and demolition companies to source-separate their C&D for future recycling. Prior to disposal, Company shall have the right to salvage C&D Debris collected pursuant to this Agreement and to retain funds derived therefrom.

4.4. City Services. Company shall perform the City Services at facilities identified in Exhibit 3 according to the specified service levels and collection frequency.

4.5. Residential Disposal Vouchers. Each Residential Premises may receive one (I) voucher per calendar year for the free disposal of up to three (3) yards of Solid Waste or three (3) Bulky Waste items at the Designated Disposal Site. The City will be responsible for distributing the vouchers.

4.6. On-Call Pick-Up. Company shall provide on-call pick-up service to any Residential Premises or Multi-Family Complexes upon request. Company may charge a fee for this service as specified in Exhibit 2.

4.7. Christmas Tree Pickup. On the first two normal collection days after January l, each Residential Premises may place at curbside the following additional materials:
undecorated Christmas trees (no longer than 6 feet) and bagged or bundled additional Refuse, up to 96 gallons in total, and each bag or bundle weighing no more than 50 pounds.

Such material will be collected for no additional charge to the Customer.

4.8. Contamination; Overage.

4.8.1. Company must offer the Customers the correct combination of Cart and Bin sizes and Collection frequency beyond the minimum bundled service requirements, as necessary, that matches their unique service needs to reduce contamination of Recyclable Materials and Organic Waste.

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4.8.2. Company's route Collection personnel will report to Company's supervisors if they observe potential contamination problems and/or insufficient Collection capacity. For purposes of determining if Recyclable Materials or Organic Waste are deemed to be contaminated, if, by visual or digital inspection, Recyclable Materials are commingled with ten percent (10%) by weight or volume of Garbage or Organic Waste, or if, by visual inspection, Organic Waste is commingled with three percent (3%) by volume of Garbage or Recyclable Materials, then Recyclable Materials and/or Organic Waste will be deemed to be contaminated.

4.8.3. Roll-Out Period- Education and Outreach. During the period beginning on the Effective Date and ending 60 days later (the "Roll-Out Period"), Company shall provide an education program designed to minimize instances of Contamination and Overage. During the Roll-Out Period, where Company documents that a particular Customer has Contamination or Overage, Company shall collect the offending Container (where it can be done safely and excluding material laying on ground) and provide notice to the Customer with the following information (a '"Violation Notice"):
• Date of the offense;
• Description of the offense;
• If available, a photograph or video ( or link to photograph or video); • A description of the materials that are appropriate for collection in said Container and a link to view online with educational materials; and • A website to obtain additional information and/or receive responses to questions the Customer may have.

During the Roll-Out Period, Company shall not impose a Contamination or Overage Charge.

4.8.4. Post Roll-Out Period. The following shall apply after the Roll~Out Period:

4.8.4.1. Contamination.

4.8.4.1. l. First and Second Occurrences. Company shall service Containers with Contamination except where there is visible Unacceptable Materials.

Company shall provide a Violation Notice, where such contact information has been provided.

4.8.4. l .2. Third and Subsequent Occurrences. Company may opt to not collect Recyclable Materials or Organic Waste Containers with Contamination; in such event, the Customer may request the Container be collected as Refuse, and an additional fee as specified in Exhibit 2 will apply. Alternatively, Company may collect a Container with Contamination and increase the Customer's Refuse service level (i.e., larger or additional Refuse Containers) and charge for such additional service. Contractor must document contamination issue and surcharge and notify City within five (5) Business Days if Contractor increases the

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Container size or Collection frequency for excessive contamination. Such service level increases may be made by Company where Customer continues to have Contamination incidents. Customer may request that such service level increases be reduced if there have been no incidents of Contamination for twelve months.

4.8.4.2. Overage.

4.8.4.2.1. First and Second Occurrences. Company shall collect Overage except regarding material laying outside the Container. Company will provide a Violation Notice.

4.8.4.2.2. Third and Subsequent Occurrences. Company shall collect Overage except regarding material laying outside the Container. Company will provide a Violation Notice. Company may increase the Customer's Refuse service level (i.e., larger or additional Refuse Containers) and charge for such additional service. Such service level increases may be made by Company where Customer continues to have Overage incidents.

Customer may request that such service level increases be reduced if there have been no incidents of Overage for twelve months.

4.9. SB 1383 Contamination Monitoring.

4.9.1. Route Review Contamination Monitoring.

4.9.1.1. Methodology and Frequency. Company shall, at its sole expense, conduct Collector Route Reviews for Prohibited Container Contaminants (defined in SB 13 83) in Collection Containers in a manner that is deemed safe by the Company and is conducted in a manner that results in all Company routes being reviewed annually or more frequently. Company shall develop a Collector Route Review methodology to accomplish the above Container inspection requirements and such methodology shall comply with the requirements of 14 CCR Section 18984.5(b ).

4.9.1.2. Noticing of Generators with Contamination, Non-Collection, and Disposal of Materials. Upon finding Prohibited Container Contaminants in a Container, Company shall follow the Violation Notice procedures and contaminated Container handling protocols set forth in Section 4.8.3 and 4.8.4.

4.9.1.3. Reporting Requirements. Company shall maintain records and report to the City on contamination monitoring activities and actions taken, in accordance with Exhibit 4.

5. OTHER COMPANY REQUIREMENTS.

5.1. General.

5.1.1. Company Provided Equipment and Vehicles. Company shall provide an adequate number of vehicles and equipment to perform the Franchise Services. All vehicles used by Company under this Agreement shall be registered with the Department of Motor Vehicles of the State of California, shall be kept clean and in good repair, shall be, uniformly painted and shall be washed on a frequency

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uocus1gn 1:.nverope 1u. ::tvl"I0£0.>l"I-0:>4t::.-'1Ut::..l-l:lt,Ol:l-4:>l:lr-:>1..1...>.>.> 1 rreasonably determined by Company. Company's name, phone number and vehicle number shall be prominently displayed on its vehicles. Company shall furnish a listing of equipment utilized to perform all services included in this Agreement upon request by City. Company's vehicles shall comply with all Applicable Laws, including any alternative fuel or air quality requirements. Upon request by City, Company shall provide letter certification that any vehicles in use to honor the terms of this Agreement do comply with all Applicable Laws.

5.1.1.1. Company's obligations and/or scope of services under this Agreement exclude any existing requirements regarding the future conversion of fleets, or any part thereof, to Zero-emissions (ZEV) or Near-zero-emissions (NZEV) vehicle(s) or the future acquisition, hiring or use of ZEVs or NZEVs under Applicable Law, including without limitation Sections 2015 et seq. of Title 13 of the California Code of Regulations. Should future interpretation, implementation and enforcement of such existing Applicable Law apply to any Company's vehicles used in the provision of services under this Agreement during the Term, then City and Company shall meet and confer in good faith to amend this Agreement to incorporate provisions and obligations reasonably necessary to comply with such Applicable Law, and for Company to receive a rate adjustment in accordance with Section 6.2, for such change in Company's obligations and/or scope of services under this Agreement.

5.1.2. Illegal Hauling. Company may confiscate containers being used to infiinge on Company's exclusive rights under this Agreement. Before confiscating such containers, Company shall provide 48 hours written notice to the violating hauler, or longer if required under California law, that it must remove the containers and notifiy City Representative of intent.

5.1.3. Collection on Holidays. If the day of Collection on any given route falls on New Year's Day, Memorial Day, the Fourth of July, Labor Day, Thanksgiving Day or Christmas Day, or a holiday observed by the Designated Disposal Site to which the City's Franchise Materials are disposed, Company shall provide Collection for such route on the next workday following such holiday, thereby adjusting subsequent workdays that week.

5.1.4. Private Drives and Inaccessible Areas. For Premises on Private Roads or roads that Company reasonably deems a risk to employees or its equipment, Company may (a) require that Collections be done at the nearest Public Street or other location deemed safe by Company, or (b) that all Premises on such road execute a waiver releasing Company from liability.

5.1.5. Employees. Company shall exercise reasonable care to hire responsible employees, to supervise the work of such employees, and to discipline and, if necessary and consistent with Company's legal and contractual obligations, discharge an employee failing to meet reasonable standards for performance of work under this Agreement.

Company shall comply with applicable state and federal law pertaining to

Page 17 ends

UUCUlil\111 CIIVtllUptl IU. ::,1..,,-..0.::0.>,-..-00'IC UC.)-::ICIO::l :>lll":>l,,I.,.).).) 11" employment including, but not limited to, applicable equal opportunity employment and affirmative action requirements.

5.1.6. Manner of Collection. Company shall collect Containers in a quiet and courteous manner and ensure that all Carts and Bins are placed on the premises from which they were removed in an upright position, with lids closed, and within five (5) feet of where they were originally placed before collection. Company shall promptly clean-up any spilled Franchise Materials caused by Company.

5.1.7. Service Schedule. By the end of January of each calendar year, Company shall provide calendars (which may be in "pdr1 or other similar format) identifying the schedule for Refuse, Recyclable Materials, and Organic Waste Collection for that calendar year. The calendar shall provide adequate detail for customers to identify specific service days for specific service areas. Hard copies of the calendars shall be made available to Customers upon request. Shasta County may supply Company with digital quarterly newsletters for Company to include in normal billing statements to Customers.

5.1.8. Service Complaints. All service complaints shall be directed to Company.

Company shall record all complaints duly received and Company agrees to use its best efforts to resolve all such complaints within the following two (2) business days.

5.1.8. l. Complaint. Company agrees to maintain records of all oral and written service complaints registered with Company from Customers or the public within Service Area. Company shall be responsible for the prompt and courteous attention to, and prompt and reasonable resolution of, all complaints. Complaints that cannot be reasonably resolved may be appealed to the City Administrator or designee for final resolution. Company shall record all written and oral complaints, noting the name and address of complainant, date and time of complaint, nature of complaint, and nature and date of resolution. Such records shall be kept so that representatives of the City, upon request, may conveniently inspect it.

5.1.8.2. Complaint Response. Company shall respond to all complaints, other than missed pickups, within twenty-four (24) business hours.

5.1.8.3. Missed Pickups. In the event of a missed pickup, Company shall complete the pickup the next business day if the complaint is received by 3:00 p.m., and by the end of the second business day if the complaint is received after 3:00 p.m.

If Company has video evidence that Customer did not put a Container out, Customer can schedule another service for a fee, if not the next scheduled service day. Next business day following notification.

5.1.8.4. Telephone. The Company shall maintain a toll-free telephone system during office hours (8:00 a.m. to 5:00 p.m. Pacific Standard Time), which will have available English and Spanish-language service representatives sufficient

Page 18 of 45 ends

to handle the volume of calls typically experienced by the Company. Customers must be able to reach the Company's office by phone during office hours.

5.2. Change in Operations, Administration or Schedule. Company shall notify the City in writing of any material changes to its operations relating to the Franchise Services ( e.g. vehicle routes, collection schedule, equipment type, crew size) five (5) days in advance (when practical) of the time such material change is implemented. Any changes to Company's Collections operation shall meet the service requirements and performance standards and all other terms of this Agreement. In the case of changes to the Collection schedule, Company must notify all affected customers at least (14) days prior to any change in the Collection day. Company shall not permit any Customer to go more than seven (7) days without Refuse Collection service in connection with a Collection schedule change other than in the event of an Uncontrollable Circumstance.

5.3. Addition of New Non-Franchise Services. Upon receiving a written request from the City, Company shall provide any other non-exclusive services not covered by this Franchise, and that it is qualified to provide, including, but not limited to, assistance to the City in the event of natural disasters, subject to establishment of appropriate and mutually agreed upon compensation for providing the service.

5.4. SB 1383 Compost Procurement. Annually, Company shall pay City $20,000, and City shall use such funds toward its annual SB 1383 recovered organic waste product procurement target. Such $20,000 shall be adjusted annually by the change in CPI pursuant to Section 6.2.

6. SERVICE RA TES.

6. I. Amount of Service Rates. As of the Effective Date of this Agreement, the rates for Franchise Services (the "Rates") are as set forth in Exhibit 2. Company may establish charges for Special Services that are not specified in Exhibit 2 with written approval from the City.

6.2. CPI Adjustment. The Rates shall be adjusted on July I st of each year, beginning July 1, 2026, and annually thereafter to reflect one hundred percent {100%) of the annual change in the CPI: Urban Consumer - Garbage and trash collection (the '"CPI"), compiled and published by the United States Department of Labor; Bureau of Labor Statistics, based on one hundred percent ( I 00%) of the annual percentage change in the CPI for twelve months ending December 31 of the previous year as compared to the twelve months ending December 31 of the next previous year; provided, however, that no single CPI adjustment shall exceed five percent (5%) or be lower than one percent (l %.) Any CPI amount exceeding 5% or below 1 % shall be carried over and applied to the following year or years, provided that the change in any year shall not exceed 5% or be lower than I%. Any adjustments will be performed consistent with California law, including Proposition 218, if applicable.

Page 19 of 45 ends

6.3. Redirection of Refuse. In the event that the City redirects Refuse to somewhere other than the Designated Disposal Facility, and such change results in a material increase or decrease in costs and/or increase or decrease in revenues to Company, the Rates shall be adjusted to offset in full such increase or decrease in costs or revenues.

6.4. Extraordinary Rate Adjustments. The Rates are calculated to pay certain expenses and costs that are of a contingent and uncertain nature. Therefore, in addition to the annual CPI adjustment provided by Section 6.2, the Rates shall, upon written request of Company, be further adjusted on an interim basis, in compliance with Proposition 218, if required, for increased expenses or reduced revenue associated with performance of the services hereunder due to any one or more of the following causes:

6.4. l. any change in Applicable Law pertaining to the handling, processing or disposal of Franchise Materials that is effective after the signature date of this Agreement and causes a direct increase in the cost or reduced revenue to Company to provide the services required under this Agreement;

6.4.2. any increase in costs for disposal of Solid Waste or the processing of Recyclable Materials or Organic Waste, if such Solid Waste, Recyclable Materials or Organic Waste are being disposed of or processed at a third party facility not owned or operated by Company;

6.4.3. any increase in surcharges, fees, assessments or taxes levied by federal. state or local regulatory authorities or other governmental entities upon the collection, processing, or disposal of Solid Waste, Recyclable Materials, or Organic Waste; or

6.4.4. a material fluctuation in the market or market price of a Recyclable Material, material increases in the cost of collection, handling, processing, storing, transporting, marketing, or sale or other disposition of Recyclable Materials, the need for increased promotional or educational activities pertaining to recycling, or any changes to the definition of "Recyclable Materials" set forth herein.

If Company requests an adjustment due to the extraordinary circumstances set forth above, Company shall prepare a rate adjustment request setting forth its calculation of the increase costs and accompanying rate adjustment necessary to offset such increased costs or reduced revenue. The City may request any and all documentation and data reasonably necessary to evaluate such request by Company, and may retain, at its own expense, an independent third party to audit and review such documentation and such request. If such third party is retained, the City shall take reasonable steps, consistent with state law, to protect the confidential or proprietary nature of any data or information supplied by Company. The City shall act within ninety (90) days of receipt of the request from Company, and shall either approve or disapprove the request, provided that approval shall be given with properly supported requests.

Notwithstanding the foregoing, if the request is based upon any new or increased third party fees, taxes, assessments or charges, the City shall approve the interim rate adjustment

Page 20 ends

Oocusign Envelope ID: 9CA8263A-654E-4DE3-9889-459F5CC3331 F within such time period as necessary to ensure that such fees, taxes, assessments or charges are passed on to Customers by the date the same are effective.

6.5. Procedures in Event of Invalidation of Rate Adjustment. In the event that City is unable by operation of Applicable Law, including a successful Proposition 218 challenge, to approve or implement a rate increase under this Article 6, or some or all of the Maximum Service Rates are disallowed by operation of Applicable Law, Company will have the right, within thirty (30) days after notice of any such inability to approve or invalidation of an approved rate increase, to request, in writing, that City negotiate in good faith regarding reductions in programs, services, or fees to compensate for any negative impact from the unapproved or invalidated rate increase. If City fails to negotiate such adjutments in good faith, Company may terminate this Agreement no earlier than one hundred and eighty ( 180) days after written notice to the other, and shall have all other remedies under Applicable Law, limited to the City's failure to negotiate in good faith.

6.6. Billing and Collection of Accounts. Company shall bill Customers for the Franchise Services (e.g., Residential Services, Commercial Services, C&D Debris Services). Such billings may cover the periods and be collected by the methods hereinafter set forth.

Company shall bill for Residential Services quarterly and Commercial Services monthly, in advance; C&D Debris Services may be billed in arrears. Payment with respect to each such bill shall be due within 30 days; thereafter the bill shall be considered delinquent, and Company may discontinue service and require Customers to pay interest as permitted by law, late fees, collection costs, and other amounts set forth in Exhibit 2. To the extent permitted by Applicable Law, Owners of a Premises receiving Franchise Services shall be jointly responsible for payment of amounts due Company. Company shall also bill and receive fees for performance of Special Services as agreed upon in separate contracts between Company and each customer requesting such Special Service. With regard to delinquent amounts owed to Company, at the request of Company, the City will (a) include such amounts in City utility bills to such customers, and (ii) implement liens on relevant property for such amounts.

6. 7. Special Assessment. Amounts owed by delinquent Commercial and Residential Customers shall be submitted by the City to Shasta County for special assessment pursuant to California Government Code §§ 38790.1 and 25831. Prior to such delinquent amounts being submitted to Shasta County for special assessment, Company and City shall follow the procedures set forth below.

6.7 .1. Pre-Special Assessment Process Activities

6.7.1.1. Prior to January 20, Company's billing department will obtain the most current parcel data information for the City.

6.7.1.2. Using the current parcel data, Company's billing department will reconcile parcel data with Company's customer service database to update and match parcel owner and address information. Once this reconciliation process is complete, Company will start the Special Assessment Process.

Page 21 of 45 ends

6.7.1.3. By February 15, City to review the list, reconcile it against their records, and provide feedback to Company.

6.7.2. Special Assessment Letter to Owners

6.7.2.1. Prior to March 1, Company's billing department will identify all customers that are delinquent for over 120 days and subject to the Special Assessment.

6.7.2.2. On or before March 1, Company will send out the first "Delinquency Subject to Special Assessment" letter to all owners and tenants. Company letter to property owners will advise owners of their obligation to pay for Franchise Services and related charges and fees for properties they own. Owners are ultimately responsible for payment, even if the tenant has agreed to pay for the services in their rental agreement.

6. 7 .2.3. On or before April 1, Company will send out the second "Delinquency Subject to Special Assessment" letter to all owners and tenants.

6.7.2.4. On or before May 15, Company will send out its third and Final ''Delinquency Subject to Special Assessment" letter to all owners and tenants.

6.7.2.5. On or before June 10, City will send out a Final Request for Payment to owners of all remaining delinquent accounts, advising the owner that payment is due by June 30, or a special assessment will be placed on the property.

6.7.3. Company will apply all payments received on or before June 30 to the respective delinquent accounts. Remaining delinquent accounts are placed on the final Special Assessment List, which Company gives to the City.

6. 7.4. The City Council reviews each account on the final list and either approves or denies placement of the Special Assessment on the property. City may only remove a parcel from the list due to inaccuracy or if Company does not include the parcel on each mailing list as described in this section.

6.7.5. After the City Council completes its review and renders decisions on placement of the Special Assessments on the properties listed (by July 15), the Special Assessment List will be updated and provided to Company. (August).

6.7.6. Regarding accounts that the City approves for Special Assessment, Company will apply a credit to the specific account invoices and create one ( 1) General Special Assessment Account. On all accounts the City denies the Special Assessment, Contractor will review and determine if the account will be pursued for Special Assessment the following year or will take other necessary actions to resolve the status of the account. Ll..!:!l.Yl

Page 22 of 45 ends

Docusign Envelope ID; 9CA8263A-654E-4DE3-9889-459F5CC3331F

6. 7. 7. City will pay Company within 60 days of receiving special assessment payments from the County.

6.7.8. Monies received by Company from the City are applied to the General Special Assessment account.

6.8. Customers that pay their invoices using credit cards, debit cards and digital wallets may be subject to a convenience fee charge by the payment system provider ($1.99 per transaction for residential service; $9.99 USO per transaction for commercial service; fee amount subject to change.) The convenience fee amount will be disclosed to Customers during the bill payment process and they will have the opportunity to consent to the convenience fee, or to pay their invoices by direct electronic debit from a bank account (e.g., Automated Clearing House or ACH network in the U.S. I Pre-Authorized Debit or PAD in Canada) for which no convenience fee will be applied.

7. REPORTS. Company will provide the City with reports that contain the information required by the City pursuant to Applicable Law, including but not limited to the records and reports maintained in accordance with Exhibit 4, and for the City to measure Company's performance of items in this Agreement, but limited to information directly attributable to the Franchise Services provided under this Agreement. The frequency and content of the reports shall be determined by the City, provided that reports will not be required more than once a month and they do not increase Company's costs.

8. INDEMNITY, INSURANCE.

8.1. Indemnification of City. Company agrees to and shall indemnify, defend, with counsel acceptable to the City, and hold harmless City, its officers, officials, employees, volunteers, agents and assigns from and against any and all damages (whether special, general or punitive), loss, liability, fines, penalties, forfeitures, claims, demands, actions, proceedings or suits (whether administrative or judicial), in law or in equity, of every kind and description, (including, but not limited to, injury to and death of any person and damage to property, strict liability, product liability, or for contribution or indemnity claimed by third parties) (collectively, ''Claims") to the extent caused by the Company's, its agents, employees, affiliates and subcontractors, breach of this Agreement, violation of Applicable Law, negligence or willful misconduct. The foregoing indemnity shall apply regardless of whether such loss is also caused in part by any of City's negligence, though Company's liability shall be reduced to the extent of the City's negligence. The indemnification set forth in this Section shall not be limited by the insurance requirements set forth in this Agreement.

8.2. Evaluation of Liability. The Company's obligation to defend, hold harmless and indemnify shall not be excused because of the Company's inability to evaluate liability or because the Company evaluates liability and determines that the Company is not liable to the claimant. The Company must respond within thirty (30) days to the tender of a claim for defense and indemnity by the City, unless this time has been extended in writing by the City. If the Company fails to accept or reject a tender of defense and indemnity within

Page 23 of 45 ends

uocus1gn t:nvetope IU: 9<.;A8263A-6Mt:-4Ut:3-9t:189-459t-5<.;(.;3331 tthirty (30) days, in addition to any other remedy authorized by law, so much of the money due to the Company by virtue of this Agreement as shall reasonably be considered necessary by the City may be retained by the City until final disposition has been made on the claim of suit for damages, or until the Company accepts or rejects the tender of defense, whichever occurs first.

8.3. AB 939. To the extent permitted by Public Resources Code Section 40059. 1, and to the extent noncompliance is caused by Company's breach of or noncompliance with a provision of this Agreement, Company agrees to indemnify, protect and defend the City, with counsel selected by the City, and to indemnify and hold harmless the City from and against all fines or penalties imposed by the State of California if the waste diversion goals specified in the California Public Resources Code are not met by the City with respect to the Solid Waste collected by Company under this Agreement.

8.4. Hazardous Waste. Company shall indemnify, defend with counsel acceptable to the City, protect and hold harmless the City, its officers, officials, employees, agents, assigns and any successor or successors to the City's interest from and against all claims, damages (including but not limited to special, consequential, natural resources and punitive damages), injuries, response mediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and attorney and expert fees for the adverse party and expenses (including but not limited to attorney's and expert witness fees and costs incurred in connection with defending against any of the forgoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, officials, employees, or agents arising from or attributable to the negligence or willful misconduct of Company in handling Hazardous Waste either knowingly or under circumstances in which a reasonable person would or should have known that Hazardous Waste was being handled. The foregoing indemnity is also intended to operate as an Agreement pursuant to Section 107(e) of CERCLA, 42 U.S.C. Section 9607(c) and California Health and Safety Code Section 25364, to defend, insure, protect, hold harmless and indemnify the City from liability. The foregoing indemnity shall not apply with respect to: (1) any Hazardous Waste or hazardous substance generated by the City or its agents and delivered by the City or its agents; or (2) the disposal or release of hazardous substances or Hazardous Waste, which disposal or release has resulted from the negligence or willful misconduct of the City or its agents.

8.5. Insurance Scope and Limits. Company shall procure and maintain for the duration of the contract, and any extensions, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by Company, his officers, agents, representatives, employees or subcommands.

The maintenance of claims made against any insurance required of Company shall not be considered a waiver by City of any claim or liabilities it may have against Company.

8.5. l. Minimum Limits of Insurance. Company shall maintain insurance coverage of the following type and with limits no less than:

Page 24 ends

uocusIg n t:;nvelope 1u· !:11.;At1.!ti:,A-ti~t:;-4Ut:;J-!:ltit1l:l-4!)l:lt-:,<.;<.;J~J 1 t8.5.1.1. General Liability: $2,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage.

8.5.1.2. Worker's Compensation and Employer's Liability: Statutory limits.

8.5.1.3. Auto Liability: $2,000,000 per accident for bodily injury and property damage.

8.5.1.4. Pollution Legal Liability: $10,000,000 per occurrence and $ I 0,000,000 annual in the aggregate covering liability arising from the release of waste material and/or irritants, contamination or pollutants.

8.5.1.5. Claims Made Coverage. If General Liability or Pollution Legal Liability coverage is written on a claims made form:

8.5.1.5.1. The "Retro Date" must be shown and must be before the date of the contract or the beginning of the contract work.

8.5.1.5.2. Insurance must be matained, and evidence of insurance must be provided for at least five (5) years after completion of the contract work.

8.5.1.5.3. If coverage is cancelled or non-renewed, and not replaced with another claims made policy from with a ''Retro Date" prior to the contract effective date, the Company must purchase "extended reporting" coverage for a minimum of five (5) years after completion of contract work.

8.5.1.6. Acceptability oflnsurers. Insurance is to be placed with insurers licensed to transaction business in California with a current A.M. Best's rating of no less than A:VII. If pollution and/or Environmental Impairment and/or Umbrella/Excess coverage are not available from an admitted insurer, the coverage may be written with the City's permission, by a non-admitted insurance company. A non-admitted company should have an A.M. Best's rating of A:X or higher.

8.5.2. Deductible and Self-Insured Retentions. All deductibles or self-insured retentions are for the account of Company and shall be the sole responsibility of Company and paid entirely by Company without contribution from City.

8.5.3. Non-cancellation: Each insurance policy provided to City by Company shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days written notice to the City.

8.5.4. Waiver of Subrogation: Company agrees to waive subrogation which any insurer may require of Company by virtue of payment for any loss. Company agrees to obtain any endorsement which may be needed to affect this waiver. The Worker's Compensation policy shall also be endorsed with a waiver of subrogation in favor of the City for all work performed by the Company, its employees, agents and subcontractors.

8.5.5. Subcontractors: Company shall require and verify that all subcontractors maintain insurance meeting all requirements set forth above. Proof thereof shall be provided to City prior to commencement of any work by subcontractors.

Page 25 of 45 ends

8.5.6. Verification of Coverage. Company shall furnish the City with endorsements effecting coverage required by this clause or certificates evidencing such coverage.

The endorsements or certificates are to be signed by a person authorized by that Insurance Company to bind coverage on its behalf.

8.5.7. Additional Insured; Certificate: The liability insurance policies shall name the City and its officers and employees, and the authorized agents of any of them, as additional insureds via blanket form endorsement. Company shall provide the City with a certificate of insurance duly executed by Company's insurance carrier or authorized agent which shall serve as evidence of the continued existence of Company's insurance policies required hereunder and which shall contain a provision that the coverage thereunder will not be cancelled without thirty (30) days prior written notice given to City,.

9. EVENTS OF DEFAULT; TERMINATION.

9.1. Except for the occurrence or existence of Uncontrollable Circumstances, in the event of any material failure or refusal of a Party to comply with any obligation or duty under this Agreement, the City and Company shall meet and confer in good faith in an effort to agree on a resolution of the breach. If the Parties are unable to agree on the infonnal resolution the breach, and the breaching Party is in violation of a material provision of this Agreement, the other Party may provide the breaching Party with written notice of the default, stating the specific reasons for default and the provisions of the Agreement which have been violated. The breaching Party shall then have fifteen ( 15) days to cure such default, or commence to cure such default if it is of a nature that cannot be cured within the prescribed timeframe; provided, however, if the breach ( other than one caused by an Uncontrollable Circumstance) results in an imminent threat to public health, safety or welfare, the breaching Party shall use commercially reasonable efforts to cure the breach immediately. If the breaching Party fails to cure the default within the stated period, or fails to commence such cure in a manner reasonably satisfactory to remedy the stated reason, then the other Party may at its option terminate all or a portion of this Agreement.

9.2. Notwithstanding Section 9.1, the following events will result in the City having the option to terminate the Agreement without providing Company an opportunity to cure: (i) there is a seizure or attachment (other than a prejudgment attachment) of, or levy affecting possession on, the operating equipment of Company which has the effect of depriving Company of the use of the equipment subject thereto and such seizure, attachment or levy cannot be released, bonded, or otherwise lifted within ten ( 10) business days; or (ii) the occurrence of any of the following if it has the effect of preventing Company from performing its obligations hereunder for ten ( l 0) or more business days: (a) Company files a voluntary petition for debt relief under any applicable bankruptcy, insolvency, debtor relief, or other similar law, or shall consent to the appointment of or taking of possession by a receiver, liquidator, assignee ( other than as a part of a transfer of equipment no longer useful to Company or necessary for this Agreement), trustee (other than as security for an obligation under a deed of trust), custodian, sequestrator (or similar official) of Company for any substantial part of Company's property, or shall make any general assignment for

Page 26 of 45 ends

Uocuscgn tnvelope IU: 9GA8263A-654t-4Dl:3-91::J89-459f-5GC..:3331 Ithe benefit of Company's creditors, or shall fail generally to pay Company's debts as they become due, or (b) any court having jurisdiction shall enter a decree or order for relief in respect of Company, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or similar law, or Company shall consent to or shall fail to oppose any such proceeding, or any such court shall enter a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Company or for any part of Company's operating equipment or assets, or order the winding up or liquidation of the affairs of Company.

I 0. MISCELLANEOUS.

10.1. Compliance with Applicable Law. Company agrees that it will comply with all Applicable Law.

10.2. Amendment. This Agreement may be amended or modified only by a written agreement duly authorized and executed by both City and Company.

10.3. Independent Company. It is expressly understood and agreed that Company shall perform all work and services described herein as an independent company and not as an officer, agent, servant or employee of City; that Company shall have the exclusive control over the details of the services and work performed hereunder and all persons performing the same; that Company shall be solely responsible for the acts and omissions of its officers, agents, employees, and subcontractors, if any; and that nothing herein shall be construed as creating a partnership or joint venture between City and Company. Neither Company nor its officers, employees, agents or subcontractors shall obtain any rights to retirement benefits, workers' compensation benefits or any other benefits which accrue to City employees. Company shall have no power to incur any debt, obligation, or liability on behalf of City, or otherwise act on behalf of City as an agent. Company shall secure at its sole expense and be responsible for any and all payment of income tax, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for Company and its officers, agents, and employees. The parties agree that (I) Company is completely free from the control and direction of City in the performance of work under this Agreement, (2) the work being performed is outside the usual course of City's business, and (3) Company is customarily engaged in the waste management trade which is the subject of this Agreement. Company shall indemnify and hold City harmless from any and all tax and employment related assessments, penalties, and interest against City by reason of the independent contractor relationship created by this Agreement.

Company further agrees to indemnify and hold City harmless from any failure of Company to comply with the applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Company by City under this Agreement as a result of its failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.

10.4. Right of Entry. Company shall have the right, until receipt of written notice revoking permission to pass is delivered to Company, to enter or drive on any private street, court, place, easement or other private property for the purpose of collecting or

Page 27 of 45 ends

Docusign Envelope ID; 9CA8263A-654E-4DE3-9B89-459F5CC3331F transporting Franchise Materials of the Owner of or Premises located on the private street, easement, or property, or its lawful occupant. Company understands and agrees that this section does not grant Company any rights beyond those possessed by City under Applicable Law.
l 0.5. Law to Govern. It is understood and agreed by the Parties hereto that the laws of the State of California, other than laws regarding choice of law, shall govern the rights, obligation, duties and liabilities of the parties to this Agreement and shall govern the interpretation of this Agreement.
l 0.6. Fees and Gratuities. Company shall not, nor shall it permit any agent, employee or subcontractor employed by it to, request, solicit, demand or accept, either directly or indirectly, any compensation or gratuity for the collection of Franchise Materials otherwise required to be collected under this Agreement, other than acceptance by drivers of holiday gifts offered by customers of a reasonable value.

10.7. Assignment. Neither this Agreement nor any portion thereof may be assigned by Company (except to an entity that controls, is controlled by or is under common control with the Company) without the written consent of the City Council, which consent shall not be unreasonably withheld.

10.8. Notices. All notices, demands, requests, consents or other communications which this Agreement requires a party to give to the other shall be in writing and shall be personally delivered, or sent by registered or certified mail, postage prepaid, return receipt requested or a nationally recognized overnight delivery service (receipt requested), addressed to the respective party as follows:

To CITY:

To COMPANY:

City of Anderson
Attn.: City Manager
1887 Howard Street
Anderson, CA 96007
USA Waste of California, Inc.

Attn: President
1333 East Turner Road
Lodi, CA 95241
with a copy to:

WM
Attn. Legal Department
222 South Mill Avenue, Suite 301
Tempe, AZ 85281
or to such address as either party may from time to time designate by notice to the other given in accordance with this Section. Such notice shall be deemed effective on the date personally served or received, ifby certified mail or overnight delivery service.

Page 28 ends

uocus1gn t:nvelope IU: 9GA82ti3A-6Mt:-4Ut:3-9ts89-4o!:lt-oGG3331 I10.9. Severability. If any provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect the validity and enforceability of any of the remaining provisions of this Agreement, which shall be enforced as if such invalid or unenforceable provision had not been contained herein.

10.10. Entire Agreement; Prior Agreements; Waiver. This Agreement, including all Exhibits, constitutes the full and entire agreement between the Parties with respect to the matters covered herein. All prior and contemporaneous agreements, understandings, negotiations, writings and other communications between the Parties are hereby superseded and are no longer of any force and effect, except to the extent that the terms of such communications are expressly addressed in this Agreement or survive pursuant to an express provision of such previous agreement. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver.

10.11. Section Headings. The section and subsection headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. l 0.12. Interpretation. The language of each and all paragraphs, terms and/or provisions of this Agreement, shall, in all cases and for any and all purposes, and in any way and all circumstances whatsoever, be construed as a whole, according to its fair meaning, and not for or against any party hereto and with no regard whatsoever to the identity or status of any person or persons who drafted all or any portion of this Agreement. l 0.13. Third Parties. Nothing in this Agreement, expressed or implied, is intended or shall be construed to confer upon or give to any person or entity other than the Parties hereto and their successors and permitted assigns, any rights or remedies under or by reason of this Agreement.

10.14. Authority. All individuals executing this Agreement on behalf of the City or the Company represent and warrant that they are duly authorized to execute and deliver this Agreement to the other Party.

Page 29 of 45 ends

Docusign Envelope ID: 9CA8263A-654E-4DE3-9889-459t-5GG3331 tBy:
d\Y'A'.SYE OF CALIFORNIA, INC.
¥Ur
2F270A8198004A9 .

Name: Alex Oseguera
Title: President
Date: _ o_s1_1_2,_20_2_s _______ ___ _

CITY OF ANDERSON
By:

Name: - --- ------------ Title:

Date:

Page 30 of 45 ends

Docusign Envelope ID: 9CA8263A-654E-4DE3-9B89-459F5CC3331F Exhibit 1
Recyclable Materials Specifications
Paper
Cardboard
Boxboard or chipboard (e.g., shoe boxes, tissue boxes, cereal boxes) Newspaper
Magazines, catalogs, and glossy paper
Paper bags
Telephone books
Paper packaging or containers (including cartons)
Egg cartons
Junk mail
Phone books and soft cover books
Envelopes (labels or windows okay)
Office paper (all colors)
Plastic
All containers accepted (#1-7)
Bottles and jugs (all colors, clean & dry, with lids/caps replaced) Tubs and containers (e.g., yogurt, margarine)
Buckets and crates
Clamshell trays and deli containers
Plant pots (no ceramic)
Laundry baskets
Glass
Bottles and jars (labels okay)
All colors, lids replaced
Metal
Aluminum cans
Tin and steel cans
Clean aluminum pans and foil
Empty aerosol cans
Small scrap
Pots, pans, and utensils
Loose lids from jars
This definition may be amended from time to time by agreement of the parties. In no event shall "Recyclables" include Hazardous Waste. Company may temporarily dispose of Recyclable Materials in the event there is not commercially viable markets.

Page 31 of 45 ends

Oocusign Envelope ID: 9CA8263A-654E-4DE3-9889-459F5CC3331F Exhibit 2
Service Rates
Residential Premises Rates
Trash Services
1-64 gallon senior citizen (65 and older) cart only*
64 Gallon Cart Residential Service
96 Gallon Cart Residential Service
Additional 64 Gallon Solid Waste Cart**
Additional 96 Gallon Solid Waste CartOrganics Services 96 Gallon Organics Cart (first 1 included with trash service) Additional 96 Gallon Organics Cart (after 1 included with service) Recycle Services
64 Gallon Recycle Cart (first 1 included with trash service) 96 Gallon Recycle Cart (first 1 included with trash service) Additional 64 Gallon Recycle Cart (after 1 included with service) Additional 96 Gallon Recycle Cart (after 1 included with service) Extra Pickups
64 gallon Extra Pickup cart per event
96 gallon Extra pickup cart per event
Non-Service day Extra pickup trip charge
Special / Ancillary Services
·-·
Container Overage Charge - per cart, per incident - when material exceeds the container's intended capacity
Side Yard Assisted Service
On-call bulky waste pick up for non-qualifying residents per cubic yard per event On-call bulky waste pick up freon removal chame per unit Cart exchange (after 1 included with service every 12 months) Bad Check/EFT Fee
Finance Charae oast due oreater than 30 davs
Finance Charge past due greater than 30 days - minimum charge Reolacement Cart-if due to customer nealiaence
Contamination in Recycling or Organics Containers - per cart, per incident *Senior rate is 75% of the 64 Gallon Cart Residential Service **Additional carts are 80% of base rate

Page 32 of 4 ends

Rates Eff.
1/1/2026
$21.77
$29.03
$31.22
$23.22
$24.98
$0.00
$10.78
$0.00
$0.00
$10.78
$10.78
$12.68
$13.63
$19.91
$10.32
$11 .39
$169.14
$89.53
$39.79
$30.00

2.50%
$5.00
$109.66
$31.22
Docusign Envelope ID: 9CA8263A-654E-4DE3-9B89-459F5CC3331 F Commercial Premises Rates Rates Eff.
1/1/2026
Commercial Cart Rates
64 Gallon Cart, once a week oickuo $43.66
96 Gallon Cart, once a week oickuo $45.58
Commercial MSW Bin Rates
1 Cubic Yard Bin, once a week $88.52
1 Cubic Yard Bin, twice a week $169.12

1.5 Cubic Yard Bin, once a week $127.34

1.5 Cubic Yard Bin, twice a week $203.14

1.5 Cubic Yard Bin, three times a week $253.85
2 Cubic Yard Bin, once a week $159.57
2 Cubic Yard Bin, twice a week $250.31
2 Cubic Yard Bin, three times a week $326.10
2 Cubic Yard Bin, four times a week oickuo $406.24
2 Cubic Yard Bin, five times a week oickuo $479.31
2 Cubic Yard Bin, six times a week oickuo $553.14
3 Cubic Yard Bin, once a week oickuo $198.54
3 Cubic Yard Bin, twice a week oickuo $293.90
3 Cubic Yard Bin, three times a week oickuo $388.90
3 Cubic Yard Bin, four times a week oickuo $483.91
3 Cubic Yard Bin, five times a week oickuo $574.70
3 Cubic Yard Bin, six times a week oickuo $665.48
4 Cubic Yard Bin, once a week oickuo $244.05
4 Cubic Yard Bin, twice a week oickuo $360.64
4 Cubic Yard Bin, three times a week oickuo $481.67
4 Cubic Yard Bin, four times a week oickuo $596.36
4 Cubic Yard Bin, five times a week oickuo $712.99
4 Cubic Yard Bin, six times a week oickuo $829.62
6 Cubic Yard Bin, once a week oickuo $324.13
6 Cubic Yard Bin, twice a week oickuo $462.42
6 Cubic Yard Bin, three times a week oickuo $596.36
6 Cubic Yard Bin, four times a week oickuo $734.58
6 Cubic Yard Bin, five times a week oickuo $868.58
6 Cubic Yard Bin, six times a week pickup $1,006.85

Page 33 of 45 ends

Docus1gn Envelope ID: 9CA8263A-654E-4DE3-9B89-459F5CC3331 F Commercial Recycle Cart Rates*
64 Gallon Cart, once a week pickup (after 2 included with trash service) $32.75 Commercial Recycle Bin Rates*
1 Cubic Yard Bin, once a week $66.39
1 Cubic Yard Bin, twice a week $126.84
2 Cubic Yard Bin, once a week $119.68
2 Cubic Yard Bin, twice a week $187.73
3 Cubic Yard Bin, once a week pickup $148.91
3 Cubic Yard Bin, twice a week oickuo $220.43
4 Cubic Yard Bin, once a week oickuo $183.04
4 Cubic Yard Bin, twice a week oickuo $270.48
6 Cubic Yard Bin, once a week oickuo $243.10
6 Cubic Yard Bin, twice a week pickup $346.82
*Recvcle Cart/Bin Rates are at 75% of the MSW rates
Commercial Organics Cart Rate
64 Gallon Cart, once a week oickuo (after 1 included with trash service) $29.58 Extra Pickup Services
64 gallon cart per event (service day only) $18.92
96 oallon cart per event (service dav onlv) $19.91
1 cubic yard bin per event (service dav only) $35.76

1.5 cubic vard bin oer event (service dav onlv) $51.49
2 cubic yard bin per event ( service dav onlv) $69.13
3 cubic vard bin oer event (service dav only) $85.94
4 cubic vard bin oer event (service dav onlv) $105.63
6 cubic yard bin per event (service dav onlv) $140.34
Special / Ancillary Services
Kev chame when container access reouires driver to remove lock oer month $7.07 Walk in/Pull Out per Bin per Service $22.87
Enclosure charge per bin per service frequency per month $7.57 One time lock install (Lock is WM provided) $26.11
Lock charge per bin per service frequency per month $7.57 Container Overage Charge - per cart, per incident (cart too full for lid to close) $31.94 Container Overage Charge - per bin, per incident (bin too full for lid to close) $152.43 Bad Check/EFT Fee $30.00
Finance Charae cast due areater than 30 davs 2.50%
Finance Charae past due areater than 30 davs - minimum charne $5.00 Reolacement Bin-if due to customer nealiaence $874.58
Contamination in Recvclina or Oraanics Carts - oer cart, oer incident $31.94 Contamination in Recvclina or Omanics Bins - oer cart, oer incident $84.21 Page34of 45
LJocusign t:nvelope ILJ: 9GA8263A-654t:-4LJl:.3-9~89-459t-5c.;c.;33311- Compactor and Debris Box Rates Rates Eff.
1/1/2026
Compactors
3 Cubic Yard Comoactor, once a week oickuo $515.68
3 Cubic Yard Compactor, twice a week pickup $763.38
4 Cubic Yard Compactor, once a week pickup $633.85
4 Cubic Yard Comoactor, twice a week oickuo $938.07
Debris Boxes
20 Cubic Yard Debris Box, oer DUii (includes 3 tons)" $626.09 25 Cubic Yard Debris Box, per pull (includes 3 tons)" $653.91 30 Cubic Yard Debris Box, oer oull (includes 3 tons)" $699.70 40 Cubic Yard Debris Box, oer oull (includes 3 tons)" $759.43 Less than 30 Cubic Yard Compactor, per pull $793.16
30 to 40 Cubic Yard ComDactor, oer DUii $838.95
Special/ Ancillary Services
Min Haul Charge - 7 day rental charged per day on 8th day $49.74 Trip Charge (WM unable to service due to non WM caused circumstance) $211.57 Relocation Charge (Move box to new location on customers current site) $211.57 Bad Check/EFT Fee $30.00
Finance CharQe past due Qreater than 30 davs 2.50%
Finance CharQe past due Qreater than 30 davs - minimum charoe $5.00 *Any tonnage in excess will be charged the landfill rate plus applicable franchise fees.

Page 35 of 45 ends

uocus1gn t:nvelope 1u: 9t;AIS:.!63A-tib41:-4Ut:3-9ts89-4o9t-ot;<.,;3331 tExhibit 3 City Facilities
Company shall provide the following services at no charge to the City:
• City Hall, 1887 Howard Street
• Anderson Police Department, 2220 North Street
• Anderson Teen Center, 2889 East Center Street
• Anderson Corporation Yard, 2450 Barney Street
• Waste Water Treatment Plant, 2800 Rupert Road
• Anderson River Park, 2800 Rupert Road
• Volente Park, 2500 Emily Drive
The City Manager may delete or add a City Facility from the list of facilities to be provided Collection Services by Collector pursuant to Section 4.4 at any time, upon written notice to Collector.

Containers shall be free of graffiti and in good repair. Containers must be clearly marked and identifiable as belonging to Company. Special consideration shall be given when determining the pick-up area for temporary Containers to ensure that the flow of traffic is not impeded and that it does not result in aesthetic degradation of an area. The designated pick up area, if disputed by service recipient or Company, shall be determined by City. Additionally, if in City's opinion the location of an existing pick-up area is inappropriate, City may require the service recipient or Company to relocate the pick-up area.

Page 36 of 45 ends

uocus1gn tnvelope IU: !lt;A8263A-tiMt:.-4Ut:.3-!lts8!1-4!>!1t-!>t;t;3331tExhibit4 SB 1383 Reports
It is the City's intent that the City will take primary responsibility for compliance with the requirements of SB 1383. City anticipates that Company will be required to assist the City with specific aspects of compliance with SB 1383, as identified in this Exhibit. Below is a summary of specific areas in which the City is requiring or may require Company assistance. All sections herein refer to Title 14 of the CCR, unless otherwise specified.

City and Company shall refer to the specific text of the CCR sections and any Applicable Law to satisfy specific SB 1383 requirements.

1. Containers. Company shall provide three-stream Containers to Customers for Collection of source separated Refuse, Recyclables and Organic Waste. Company shall Collect Organic Waste and transport it to a processing facility in accordance with SB 1383 Regulations. Containers in use at the end of the previous agreement with Company may continue to be used. a. Refuse: All Refuse Containers shall be consistent with sizing provided in Sections 4.1.1 and 4.2.1 of the Agreement, shall be gray or black in in body and/or lid and must meet the requirements of 14 CCR Section 18984. 7.
b. Recyclables: All Recyclables Carts Company provides to Customers at Residential Premises shall be 64-gallon. All Recyclables Containers Company provides to Customers at Commercial Premises shall be appropriate for service need at the sizes specified in the Agreement. All Recyclables Containers must be blue in body and/or lid and must meet the requirements of 14 CCR Section 18984. 7.
c. Organic Waste: All Organic Waste Carts Company provides to Customers at Residential Premises shall be a default 96-gallon. All Organics Waste Containers Company provides to Customers at Commercial Premises shall be 64-gallon for Commercial Carts. All Organics Waste Containers must be green in body and/or lid and must meet the requirements of 14 CCR Section 18984.7.
d. Labeling: Company shall place and maintain SB 1383-compliant labels on all newly issued Containers, consistent with the requirements of 14 CCR Section 18984.8.

2. Route Reviews. Company shall meet all SB l 383 regulatory requirements concerning contamination monitoring upon and after program implementation using Route Reviews. ··Route Review(s)" means a visual inspection of Containers along a hauler route for the purpose of determining contamination and may include mechanical methods such as the use of cameras. ( 14 CCR § 18982.)
a. Company shall conduct hauler Route Reviews for Prohibited Container Contaminants in Collection Containers in a manner that is deemed safe by the Company; is approved by the City; is conducted in a manner that results in all hauler routes being reviewed annually; and is consistent and in accordance with the SB 1383 Regulations. Containers may be randomly selected along the hauler route. This section should not be constructed to require that every Container on a hauler route must be sampled annually.

Page 37 ends

b. Upon finding Prohibited Container Contaminants in a Container, Company shall follow the contamination monitoring and noticing procedures contained herein.

1. If contamination is found during Route Reviews required under 14 CCR Section 18984.5, Company shall notify the Generator of the requirement to properly separate materials into the appropriate Containers and may include photographic evidence of the violation. (14 CCR, §18984.5(b).)
c. Recordkeeping Requirements. Company shall maintain all applicable records required under the SB 1383 Regulations and that pertain to Company's obligations in this Exhibit A, and report to the City on a monthly basis on contamination monitoring activities, Route Reviews, and actions taken, including but not limited to any non-collection notices issued to Generators/Customers. ( 14 CCR, § 18984.6.) Company shall provide reports to the City no later than the tenth (10th) day of the month following the month in which the actions were taken.
d. Nothing in this section shall prohibit Company from meeting its compliance requirements by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, and/or any other applicable law, as may be amended from time to time.

3. Generator Waiver Program Coordination.
a. In accordance with SB 1383 Regulations and Section 8.65.060 of the Anderson Municipal Code, the City may grant waivers (de minimis, physical space, or collection frequency) to Generators/Customers that impact the scope of Company· s provision of service for those Generators/Customers.
b. Company Change in Customers' Service Levels. When the City grants a waiver to a Generator, the City shall notify the Company within five (5) days of the waiver approval with information on the Customer and any changes to the service level or Collection service requirements for the Customer. Company shall have five (5) days to modify the Customer's service level and billing statement, as needed.

4. SB 1383 Education and Outreach.
a. Company, in coordination with the City, shall create applicable education materials and conduct education programs and activities as provided by and in accordance with the SB 1383 Regulations. Company shall cooperate and coordinate with the City on public education activities, including but not limited to the following:
i. Shasta County Trash Talk quarterly newsletter - In collaboration with City, Company shall provide and review content specific to City. The quarterly newsletters will be substantially similar to those attached here.

11. Annual Collection Calendars - Company shall provide updated and accurate collection calendars for distribution to City customers. A digital copy shall be provided to City.

Page 38 of 45 ends

iii. Provide Generators/Customers with information regarding proper material separation, Organic Waste prevention, on-site recycling, methane reduction benefits, how to recycle Organic Waste, and information related to food recovery.

This information shall be disseminated through one or more of the following methods: annual calendars, newsletters, invoice messaging, and/or posts on the Company's website or social media platforms. When distributing such materials, the Company shall provide the City with the following documentation in accordance with 14 CCR Section 18985.3:

1. The date the information was disseminated

2. A copy of the information or a link to the site where it was posted

3. The type and number of accounts receiving the information, as applicable iv. Company shall participate in City Council presentations as requested by the City.

5. Compliance Reporting.
a. Company shall cooperate with all City requests related to the research, preparation, compilation, and/or reporting of the initial SB 1383 compliance report and, by August l of each calendar year thereafter, the annual compliance report. ( 14 CCR §§ 18994.1, 18994.2.)
b. Company shall maintain applicable records generated or retained by Company related to the scope outlined in the Exhibit, to allow City access to applicable implementation documentation in less than ten Business Days.

Page 39 ends

LETTUCE PRACTICE FOOD SAFETY

TO REDUCE FOOD WASTE
According IO lhe Cen111s for Oll&llse Conlrol a<'<l P,evention (CDC) lhe<e a,e app,ox,malely ~a miloOn c.,1es ol l oodbome iUr,ess aact, year wlucll means lhat about I on 6 Americans gel sock from food annually You can help protect yoorsell and yrur lo\,od ones from loodbome Illness ..t,~e nlll<J red.ong food waste by lollowing lhese gi,iclelnes Plan yw< mealS •nd avoid buying ,_., food lhan yoo a,n .-before ii sl)Olls Tako lellov"'11 home and rolrtger.,10 or freoze I"8m Wllhai two ho~ Avoid o,orpactung your frid1jO as cold air -.i. lo drculale amund ~•ruled food> lo keep !hem property chillc<l
Wash you, hand> before dllring, and •~er preparing lood Ruise lru,is and vegelal>leS before peeling, ruttino a oaUng !hem Sc<\Jb !inn !Nits arc:l V8i181&bles. ~• melons or QJCUnben w,th e cle~n produce bl\Jsh Cook food at lhe appropriale lemperalure
Thaw meat and poul11y In tt>e ,efrigelato, oolora cooluno ., • ~ coo~er 10 p,event MCIOtia growu,
Set yoy, refrigen,tor tempe,ature to 40"F or t>ekMt and your freezer to O F Of bek:Jrw'

Page 40 of 45 ends

R
The Sour Powerhouse ... 11.•t• •· I I ••••••• I 111 •••••• 1 ••• ■ Al~Purpose Cleaner Combloe 1 ll!alpOOn bakoog
soda, 2 teaspoons vinegar 11~ lea5PC)Oll
Oishwashtng Uquid, 1 lea,poon lemon juice and
2 cups hOI WIiier in e spray bottle end shale weN
Add esaenbal oil to, frag,anca ii desired and add
1 teaspoon bo<ex far exl/a cleaning powe<
Tips fo, Co1i.cnn1J food Scrapa
Choose the right container lot you tu .. • eon1•1.,., -11h • MCur• lid to .-due. odoro) Oecic» where to llore your container ton 1h11 counter Of 1111cler the sink) l<Mp food ,craps In !he lrldv<t or ,...,,or unllt tho nlg~I belOff collection 10 r ut odor Senior Citizen Discount
WM p,ovides • Senio, Citizen Diacounl lo qualilylng rosid""tlol cuotomcts who are 65 v•~ s or all" o, Old~•. head ol hou~old. and subscribe kl a 64-<.lllilon 11ash bin bundle Fo, more lolorma!Jon, please contacl WM customor ser,!co DI 18001479-8101

Page 41 of 45 ends

uocus1gn t:nve1ope 1u: l:ll,AtslbJA-b:>4t:-4ut::;..l:lt:ltsl:l-4:>l:lt-:>L;L;;,JJ 1 tNEWSLETTER

SAFELY DISPOSINC OF SUMMER

HOUSEHOLD HAZARDOUS WASTE
Many summer octrvttJet tnvotve ~ng ,cems that eonto n hozardous wotte requiring tafe disposal ofter VM. These 1ncklde propone tonkl for 88Qo or comping. lighter fluid, l)OOI ond opo chemico o.tr0901 prod.er• ttke unscreen ond bug a.pray bool fuel, moto, 0,1, ond gardening aupptteS. Ptoper disposal of these items is cn,c,ol t () p,event fires and pollutlOn
You con ensure that your summer oct1V1hes don"t contt bute to envirO<l,,,.ntol hoiords or Injury to othe,. by
, Following the hond~ng ond diSPOSOl m1tructt0n$ on the prod~ ! label • Storing OIi h01ordous p<educto n o cool. dry place, away from hoot. ,parka. and Hornet
• U&Jng up the prodvcta before d•scordlng them
• Tronoportlng HHW w11h core, emurlng wo••e , 1n on ~p,,ght poe•tin the trunk of a cor Of bod of a truck and not t:ronsponed for r.;,ng periods
• D,spos,ng of hozard0s..;-1 waste at on HHW foc,r,ty ond neve, •n a garbage con. recycl n,g btn on the ground. or dawn o drain AE14EMRA JUST 81w\Ulli IT IS -Dli Of PI.ASTIC:
-SlnM8ANITIIUONCSINYOUAlll!a'Q.ING IN ( '-( ,..,..~ fbf'c ,~ PoQ110',',a\d -,.:

S,J '.\/.IF R FD: fl U c • .'II.">
'' -. " " '. . - ..... ''• "'' .I , ~
..... .,,,., ., . :::■■ 1 • ■ I 6 I
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~ At•ducc A<.1 U'il' At .. cyclt..• & D1'.pos .. 11 NL•wo. f o r WM Cu-..tonwro;. g in 5ih,1..,t.1 County ,Hld the C1t 1cc:. of Anderson .Jnd Sh.1st~1 L.,kc

Page 42 of 45 ends

MOD' 01 Ond hitefS A'1n1f•le
Car 8(Jttenea Oot,of1r,e
Pool Cl'lemlCOIS 1(9t'OMI~ Pont
Pttttt,c.tdet, Weed KIiier Bu; SDf"Oy
__,., Ban•-(C I> AA AAA)
Fluor...:.nt Ugt,t Sulbe tnvm-lOn
8ott4NIM CMCINOQ Cr«nK:.OII
Food Scraps Collection Coming Soon
FolloY,ng .,,. c:oml)Noon ol tr>e Anderson Loncl~U Com~ong Foc,~ty rNldenlS oncl bull-In unlncorporateo Shosto county ond tM Clu.t OI ArodertOn ono ShOSIO Loke w,H be~ - to comply w1u, sonote 8111 \l8-l Tnit i.g;SIOoon mondotes •~• sorting ood seporo1e coMecaon of food &erops OA<I yard debnt trom ,eguk>r t,osn and recydng The gool 11 to dfiven orgoruc wost• and recydatM ttems from landfdts In order 10 preMfV-e nou,rol rM,OUre:e, and oddrns climate change Stay tuned ror food div•..-k>n updates 01 Shasta COUnty the dUM of Ander,on and S~to l ok.e and WM wM together to build a more sustomoble rurure

Page 43 of 45 ends

EDUCEWASTE

WHILE ENJOYINO FALL

TRADITIONS
To reduce waste wt)ile ~ f.al uao,tions consadef adoptJng a lew of the following ..,.lainat>le r><ac:tices
• El<jllorew loenl <Md<xn
• Suppor1 loe,,I lorn,$ ond - -,. grown _..,,,.. pn,cluco lo redUC<I carbOn ..,..._,. c.ed 10 food IJan&POrtallOn
, P1<ln rnulo. freeze loll~. and coml)()St food'°""''
, ProtO<t polline- by ~ <lioposing ol -Id """'"'°"" waste en<l lmit"II -• U$e<I n the II<'"'°" , Skip impulse tx,ying end pu-dotheo. household •ems ond <locorol.,,.. 1,omyourtoealt11t1ftW>Nt
, Oonolo old t,lonke'-' ond -• toe local enmal ohetter
, Reoo boo"s checl.ed oot horn you, loc:al •t,rary ~ oecond hand. or - from,. fnend , Crearo holidoy de<or11Jons Prom ~-lound ., nai..o yoor goroen ex trash wtt> at puml)k.,. and gou<ds, gbu ]3rt P<"JCO"OS dried 1ru,t ond more

Page 44 ends

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Page 45 of 45 ends

NOTICE OF PUBLIC HEARING
Proposed Adjustments for Residential and Commercial Garbage, Recycling, and Organic Waste Service Rates
Tuesday, November 18, 2025, at 5:30 pm
On Tuesday, November 18, 2025, beginning at 5:30 pm, the Anderson City Council will hold a Public Hearing at its regularly scheduled meeting, in the Council Chambers located at Anderson City Hall, 1887 Howard St., to consider proposed increases to garbage, recycling, and organic waste collection service rates as proposed by Waste Management, Inc., the City's franchised waste hauler.

Why Are My Rates Changing?
Beginning January l, 2026, the City of Anderson will renew its agreement with Waste Management, Inc. (WM) for solid waste collection services to Anderson residential and commercial owners/customers pursuant to a City Council-approved Amended and Restated Refuse, Recycling, and Organic Waste Agreement (Agreement).

After extensive negotiations, WM and the City have agreed to a proposed rate structure that will fund the costs of expanded services. The purpose of this notice is to let you know about planned changes to solid waste service and rates, and to give you an opportunity to be involved in the City's regulatory process.

The rate structure for monthly solid waste collection services is separated into two classes - Residential Premises Rates and Commercial Premises Rates. The rates for each customer class are determined based on: (i) the size of the container serving the property; (ii) the materials accepted in the container ( e.g., Garbage, Recycling and Organics) serving the property; (iii) the frequency of pickups per week; and (iv) additional services that may be required by the customer. One 64-gallon recycling cart and one 64- gallon organic waste cart are included with both Residential and Commercial trash service at no additional charge.

The proposed rate increases are necessary for WM to provide mandatory organic waste collection services (as well as garbage and recycling/diversion services) pursuant to regulations implementing Senate Bill (SB) 1383 and other applicable laws. SB 1383 increases the City's solid waste system costs in a few ways, including the expansion of collection services to new customers, diversion of all organic materials to the new processing facility, and related reporting and monitoring requirements. Other portions of the proposed rates include City costs to administer the Agreement, support Waste Management's infrastructure and services, and comply with state recycling/diversion mandates (including, but not limited to, AB 939 and SB 1383).

The proposed rates have been calculated to cover the reasonable and actual costs needed to provide services to the City. WM would implement the rates as specified in Exhibit 2 of the Agreement, effective January 1, 2026.

California Senate Bill 1383 - Short-lived Climate Pollutants Act In September 2016, Governor Brown signed into law Senate Bill (SB) 1383. SB 1383 establishes methane emissions reduction targets, in a statewide effort to reduce emissions of short-lived climate pollutants. Food waste alone accounts for approximately 17-18% of total landfill disposal.

In order to comply with the requirements of SB 1383, the City of Anderson and Waste Management have amended their franchise agreement to expand the solid waste services provided to customers. SB 1383 is an unfunded state mandate requiring cities to implement organics programs.

What is Organic Waste?
Beginning January I, 2026, the following materials must be placed in your green bin:
• All Food Scraps
Vegetables, Meat, Bones. Dairy, Grains, Coffee Grounds
• Food-Soiled Paper Products
Paper Towels, Pizza Boxes, Coffee Filters. Tea Bags, Egg Cartons, Unlined To-go Bags/Boxes (No Styrofoam or Plastic)
• Green Waste
Landscape & Pruning, Leaves, Flowers
• Untreated Wood Scraps
Solid Waste Rate Changes for Most Common Service

CURRENT PROPOSED
7/1/2025 1/1/2026
Residential Service
96 gal Solid Waste / 96 gal Recycling/
64 gal Organics $26.19 $31.22
Commercial Service
4 yd Solid Waste lx/week / 64 gal
Recycling / 64 gal Organics $197.70* $244.05
*Rate for 4 yd Solid Waste lx/week only (not bundled with Recycling & Organics) 2 Proposed Service Rates
The table below provides a snapshot of the proposed rate sheet, highlighting the most common services for both residential and commercial premises. For pricing information on large bin services, extra pickups, and ancillary service fees, please visit our htt(ls://www.ci.anderson.ca.us/departments/public works I /solid waste/index.php Works at (530) 378-6645 to request a full copy.

Residential Premises Rates
Trash Services
1-64 gallon senior citizen (65 and older) cart only*
64 Gallon Cart Residential Service
96 Gallon Cart Residential Service
Additional 64 Gallon Solid Waste Cart**
Additional 96 Gallon Solid Waste Cart**
Organics Services
96 Gallon Organics Cart (first 1 included with trash service) Additional 96 Gallon Organics Cart (after 1 included with service) Recycle Services
64 Gallon Recycle Cart (first 1 included with trash service) 96 Gallon Recycle Cart {first 1 included with trash service) Additional 64 Gallon Recycle Cart (after 1 included with service) Additional 96 Gallon Recycle Cart (after 1 included with service) Commercial Premises Rates
.. Commercial Cart Rates
64 Gallon Cart, once a week pickup
96 Gallon Cart, once a week pickup
Commercial MSW Bin Rates
1 Cubic Yard Bin, once a week
1 Cubic Yard Bin, twice a week

1.5 Cubic Yard Bin, once a week
2 Cubic Yard Bin, once a week
3 Cubic Yard Bin, once a week pickup
J
website at
or contact Public
Rates Eff.
1/1/2026
$21.77
$29.03
$31.22
$23.22
$24.98
$0.00
$10.78
$0.00
$0.00
$10.78
$10.78
Rates Eff.
1/1/2026
$43.66
$45.58
$88.52
$169.12
$127.34
$159.57
$198.54
4 Cubic Yard Bin, once a week pickup $244.05
6 Cubic Yard Bin, once a week pickup $324.13
Commercial Recycle Cart Rates•
64 Gallon Cart, once a week pickup (after 1 included with trash service) $32.75 Commercial Recycle Bin Rates•
1 Cubic Yard Bin, once a week $66.39
1 Cubic Yard Bin, twice a week $126.84
2 Cubic Yard Bin, once a week $119.68
2 Cubic Yard Bin, twice a week $187.73
"Recycle Cart/Bin Rates are at 75% of the Refuse rates
Commercial Organics Cart Rate
64 Gallon Cart, once a week pickup (after 1 included with trash service) $29.58 Annual Rate Adjustments
The proposed rate schedule also includes annual rate adjustments. The rates shall be adjusted on July 1st of each year, beginning July I, 2026, and annually thereafter to reflect one hundred percent ( I 00%) of the annual change in the CPI: Urban Consumer - Garbage and trash collection (the "CPI"), compiled and published by the United States Department of Labor; Bureau of Labor Statistics, based on one hundred percent ( 100%) of the annual percentage change in the CPI for twelve months ending December 31 of the previous year as compared to the twelve months ending December 31 of the next previous year; provided, however, that no single CPI adjustment shall exceed five percent (5%) or be lower than one percent ( 1 %.) Any CPI amount exceeding 5% or below 1 % shall be carried over and applied to the following year or years, provided that the change in any year shall not exceed 5% or be lower than 1 %.

Any adjustments will be perfonned consistent with California law, including Proposition 218, if applicable.
4 Public Hearing
The City Council will hold a Public Hearing on Tuesday, November 18, 2025, at 5:30 pm in the City Council Chambers, which is located on the third floor of City Hall, located at 1887 Howard Street, Anderson, CA, to consider the proposed rate increases to the City's solid waste collection service fees.

Any property owner of a parcel upon which the solid waste collection service fees will be imposed and/or any tenant directly responsible for the payment of solid waste collection service fees (i.e., a customer of record) may submit a written protest to the proposed increases to the City's solid waste collection service fees. However, only one protest will be counted per identified parcel.

To be counted, all written protests must include the following:

1. State that the identified property owner or customer of record is in opposition to the proposed increases;

2. Provide the location of the identified parcel (by assessor's parcel number or street address);

3. Include the name and signature of the property owner or customer of record submitting the protest.

Written protests may be submitted by:

1. Mail to: City Clerk Christy White, 1887 Howard Street, Anderson, CA, 96007; or

2. In-person delivery during City business hours to the third floor of City Hall at 1887 Howard Street, Anderson, CA, 96007; or

3. At the Public Hearing on Tuesday, November 18, 2025, at 5:30 pm.

For your convenience, you may fill out and submit the enclosed protest form and return it to City Clerk Christy White at the above address. Regardless of how the written protest is submitted, it must be received by the City prior to the conclusion of the public comment portion of the Public Hearing (date and time noted above). Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelope for any written protest, whether mailed or submitted in person to the City Clerk, that the enclosed protest is for the Public Hearing on the Proposed Solid Waste Collection Service Fees.

The City Council will hear and consider all written and oral protests to the proposed rate increases at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, the City Council will consider adoption of the proposed solid waste collection service rate increases as noted in this letter. If a majority of property owners or customers of record do not protest the proposed increase, the City Council will have the authority to impose the proposed rates. If adopted, the proposed rates for the solid waste collection service fees will be in effect beginning January 1, 2026.

Pursuant to California Government Code 53 759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee adopted, modified, or amended by the City of Anderson. All written 5 objections must be submitted before the end of the public hearing as stated above and a failure to timely object in writing bars any right to challenge that fee or assessment through a legal proceeding.

If you have any questions about the proposed rates, the Public Works Department can be reached at (530) 378-6645. If you have questions about your current solid waste collection services, Waste Management, Inc. can be reached at (866) 825-7190.

Sincerely,
Joey Forseth-Deshais
City Manager
For more information, scan the QR code or visit
https:llwww.ci.anderson.ca. us/departments/public works I /solid waste/index.php

PROTEST FORM FOR SOLID WASTE COLLECTION SERVICE FEES
I certify that I am the legal owner of a property located in the City of Anderson and/or am a Waste Management customer of record receiving solid waste collection services within the City of Anderson.

Although I may have received multiple notices of public hearing to my mailing address, I acknowledge that only one written protest will be counted per identified parcel. I wish to protest the proposed rate increases as indicated below:

My property receives Waste Management, Inc. solid waste collection services, or I am a tenant directly liable for the payment of solid waste collection services fees, and I protest the proposed rate increases.

Print Name Signature
Property Address Assessor's Parcel No.
6 RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANDERSON APPROVING THE

SCHEDULE OF SERVICE RATES FOR REFUSE, RECYCLING, AND ORGANICS

COLLECTION SERVICES PROVIDED UNDER THE FRANCHISE AGREEMENT WITH WASTE MANAGEMENT, INC.

WHEREAS, on September 16, 2025, the City Council of the City of Anderson authorized the City Manager to execute a new ten•year franchise agreement with Waste Management, Inc., effective January 1, 2026; and
WHEREAS, the franchise agreement provides for the adjustment of service rates in accordance with the terms of the agreement and applicable Proposition 218 (Prop 218) notification and protest requirements; and
WHEREAS, the City issued Notices of Public Hearing for the proposed adjustments to residential and commercial refuse, recycling, and organics collection service rates at least forty.five (45) days in advance of the Public Hearing scheduled for November 18, 2025, consistent with Prop 218 requirements; and
WHEREAS, the proposed rate adjustments are necessary to recover costs associated with implementing new State·mandated organics collection and processing programs required by Senate Bill 1383 (SB 1383), as well as other cost components identified in the franchise agreement; and
WHEREAS, the Public Hearing was duly convened by the City Council at the time and place indicated in the notice, and all public testimony and written protests received by the City Clerk were presented to and considered by the City Council; and WHEREAS, a majority protest as defined by Prop 218 was not received; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Anderson hereby approves and establishes the schedule of service rates for the Refuse, Recycling, and Organics Collection Services provided under the franchise agreement with Waste Management, Inc., as set forth in Attachment 2.

PASSED AND ADOPTED by the City Council of the City of Anderson on this 18th day of November 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Susie Baugh, Mayor
ATTEST:

Christy White, City Clerk

AGENDA ITEM
!November 18, 2025, City Council Meeting!
esented By:

To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Mike Gallagher, Councilmember
Date: November 18, 2025

I SUBJECT
League of California Cities participation.

I RECOMMENDATION
Discuss and determine the City's interest in continuing to participate in the League of California Cities as a member for 2026.

I FISCAL IMPACT
The annual membership fee is approximately $7,150.

I DISCUSSION and BACKGROUND
During item 11.0 - Council Reports/Comments at the June 17, 2025 meeting, Councilmember Gallagher raised the future discussion topic of continuing our membership with Cal Cities since the Council cancelled their travel and training budget for the next two fiscal years.

The League of California Cities (Cal Cities) advocates on the issues that matter most to California's 482 towns and cities. Their advocacy team works with regional field staff and lawmakers to sponsor, draft, and support legislative and regulatory measures that promote local decision-making, and lobby against policy that erodes local control.

ITEM 8.1 PAGE1 11/18/2025
Cal Cities also offers year•round education and networking opportunities for new and seasoned city leaders. Comprehensive, specialized programs allow officials to learn about new developments in their field while exchanging ideas on solutions to common challenges. Cal Cities goal is to provide the information, training, and resources necessary to effectively run a municipality.

The cost of membership for Cal Cities is $7,150 per calendar year and membership fee is based on the population of the city. Being a member allows for reduced registration cost when attending any of the Cal Cities trainings or conferences. Many of their conferences average around $700 for registration as a member and can be up to $1,700 for non-members to attend.

Many of these conferences are multiple days and cover a variety of topics and allow opportunities for networking.
!ATTACHMENT
None
ITEM 8.1 PAGE2 11/18/2025

AGENDA ITEM
I November 18, 2025, City Council Meeting I
ogener, City Attorney
To:

Through:

Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Collin Bogener, City Attorney
Date: November 18, 2025
!SUBJECT
Consideration of an Ordinance (First Reading), Amending Chapter 8.65 to the Anderson Municipal Code regulating solid waste, recycling and organic waste within the City of Anderson

I RECOMMENDATION
The City Attorney recommends that the City Council:

1. Receive a Staff Report;

2. Receive Public Comment;

3. Introduce an Ordinance (First Reading), Amending Chapter 8.65 to the Anderson Municipal Code regulating solid waste, recycling and organic waste, and set it for enactment on December 2, 2025 (Second Reading); and

4. Direct the City Clerk to read the Ordinance by Title Only. ]FISCAL IMPACT
There is no impact on the General Fund related to the consideration and adoption of Ordinance No. _. However, there will be compliance and implementation costs required because of SB 1383 that will likely be passed on to customers and the City.

ITEM 8.2 PAGE1 11/18/2025
I DISCUSSION and BACKGROUND
The final regulations of SB 1383 were approved on November 3, 2020. The intent of SB 1383 is to reduce short-lived climate pollutants (SLCP) that contribute to greenhouse gas emissions and air pollution resulting from decomposing organic waste, specifically food scrap waste. As defined by the legislation, the three main goals of SB 1383 are: 1) Reducing organic waste disposal by 50 percent of the 2014 level by 2020; 2) Reducing organic waste disposal by 75 percent of 2014 levels by 2025, which would be more than 20-million tons; and 3) Recovering 20 percent of currently disposed of edible food for human consumption through food banks, and related human services organizations by 2025.

SB 1383 requires the City to adopt an enforceable ordinance to compel businesses and residents to recycle their organic and food waste, and comply with other requirements of the regulation, while putting the responsibility for funding, administrating, and implementing those goals on the City. The City could face penalties of up to $10,000 per day for failing to comply with SB 1383.

In January of 2022, the City adopted Chapter 8.65 to ensure compliance with SB 1383, creating the required enforceable ordinance. Staff informed Council that the ordinance would come back for consideration prior to implementation of 1383, since multiple unknown factors remained at that time. That amended ordinance is now being brought back.

The amended ordinance extends the regulation to not only organic waste, but also recycling and solid waste disposal, resulting in the new title of "Solid Waste, Recycling, and Organic Waste."
SB 1383 Compliance requirements include:

1. Providing Organic Collection Services to All Residents and Businesses - Organic waste consists of, but not limited to, green waste, food waste, fibers, and wood waste.

2. Reporting - Keeping appropriate records and reporting to the State on SB 1383 implementation. This will include information about solid waste container inspections, violators, and food-recovery programs used by businesses that must comply with SB 1383's edible food recovery requirement.

3. Enforcement and Compliance - Container contamination must be monitored, and violators who inappropriately dispose of their organic waste must be cited by the City.

4. Procurement - The City will be required to meet minimum targets for procuring recycled and recovered organic products that will be based on its population size.

Examples of organic products include compost, mulch, biomass derived electricity, or renewable gas.

ITEM 8.2 PAGE2 11/18/2025
Additional regulations of the amended ordinance include:

1. Single family, multi-family dwelling or commercial premises owners shall maintain a mandatory subscription for regular waste connection from the city's exclusive franchise hauler.

2. The mandatory hauling provision does not apply to the hauling of hazardous waste, the hauling of waste vegetation derived from landscaping activities, the hauling of construction and demolition debris, the collection and hauling of litter by volunteers, and/or the collection and hauling by city crews to a transfer station.

The proposed amended ordinance is consistent with the terms agreed to with the City's exclusive franchise hauler through the franchise agreement approved by the Council earlier this year.

I ATTACHMENT

1. Proposed Ordinance
ITEM 8.2 PAGE3 11/18/2025
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ANDERSON AMENDING CHAPTER 8.65 OF THE ANDERSON MUNICIPAL CODE TO REGULATE SOLID WASTE,

RECYCLING AND ORGANIC WASTE
WHEREAS, State recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as amended, supplemented, superseded, and replaced from time to time), requires cities, counties and districts to reduce, reuse, and recycle (including composting) Solid Waste generated in their jurisdiction to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment; and
WHEREAS, State recycling law, Assembly Bill 341 of 2011 (approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, as amended, supplemented, superseded and replaced from time to time), places requirements on Commercial Businesses and Multi-Family Premises that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires jurisdictions to implement a mandatory Commercial recycling program; and WHEREAS, State Organics Materials recycling law, Assembly Bill 1826 of 2014 (approved by the Governor of the State of California on September 28, 2014, which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time), requires Commercial Businesses and Multi-Family Residential dwelling of 5 units or more that generate a specified threshold amount of Solid Waste, Recyclable Materials, and Organic Materials per week to arrange for recycling services for that waste, requires jurisdictions to implement a recycling program to divert Organic Materials from Commercial Businesses and Multi-Family Premises subject to the law, and requires jurisdictions to implement a mandatory Commercial Organic Materials recycling program; and WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, (approved by the Governor of the State of California on September 19, 2016) requires CalRecycle to develop regulations to reduce Organic Waste in landfills as a source of methane. The regulations place requirements on multiple entities including jurisdictions, residential households, Multi-Family Premises, Commercial Businesses, Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Organizations, and Food Recovery Services to support achievement of the SB 1383 statewide Organic Waste disposal reduction targets; and
WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires jurisdictions to adopt and enforce an ordinance or enforceable mechanism to implement relevant provisions of SB 1383 Regulations; and
WHEREAS, In January of 2022, the City of Anderson adopted the required enforcement ordinance under SB 1383, and now seeks to amend that ordinance to clarify the regulations within the City of Anderson, and to broaden the ordinance to also address solid waste and recycling collection and hauling within the City’s jurisdiction.

NOW, THEREFORE, the City Council of the City of Anderson does ordain as follows:

SECTION 1. Chapter 8.65 (“Mandatory Organic Waste Disposal”) of the Anderson Municipal Code is hereby repealed and replaced as follows:

Chapter 8.65 is hereby repealed in its entirety and replaced with the following:

Chapter 8.65- Solid Waste, Recycling, and Organic Waste

8.65.010 Title

8.65.020 Purpose and Findings

8.65.030 Definitions

8.65.040 Requirements for Solid Waste, Recycling, and Organic Waste Disposal

8.65.050 Requirements for Single Family Generators

8.65.060 Requirements for Commercial Businesses

8.65.070 Waivers for Generators

8.65.080 Requirements for Commercial Edible Food Generators

8.65.090 Requirements for Food Recovery Organizations and Services, Jurisdictions, and Regional Agencies

8.65.100 Requirements for Haulers and Facility Operators

8.65.110 Compliance with CalGreen Recycling Requirements

8.65.120 Model Water Efficient Landscaping Ordinance Requirements

8.65.130 Procurement Requirements for Jurisdiction Departments, Direct Service Providers, and Vendors

8.65.140 Inspections and Investigations by Jurisdiction

8.65.150 Enforcement

8.65.160 Effective Date

8.65.010 TITLE.

This Chapter may be cited as Solid Waste, Recycling and Organic Waste Ordinance.

8.65.020 PURPOSE AND FINDINGS
The City of Anderson finds and declares:
(a) State recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as amended, supplemented, superseded, and replaced from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) Solid Waste generated in their Jurisdictions to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment.
(b) State recycling law, Assembly Bill 341 of 2011 (approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, as amended, supplemented, superseded and replaced from time to time), places requirements on businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires Jurisdictions to implement a Mandatory Commercial Recycling program.
(c) State organics recycling law, Assembly Bill 1826 of 2014 (approved by the Governor of the State of California on September 28, 2014, which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time), requires businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste, Recycling, and Organic Waste per week to arrange for recycling services for that waste, requires Jurisdictions to implement a recycling program to divert Organic Waste from businesses subject to the law, and requires Jurisdictions to implement a Mandatory Commercial Organics Recycling program.
(d) SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires CalRecycle to develop regulations to reduce organics in landfills as a source of methane. The regulations place requirements on multiple entities including Jurisdictions, residential households, Commercial Businesses and business owners, Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Organizations, and Food Recovery Services to support achievement of Statewide Organic Waste disposal reduction targets. (e) SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires Jurisdictions to adopt and enforce an ordinance or enforceable mechanism to implement relevant provisions of SB 1383 Regulations. This ordinance will also help reduce food insecurity by requiring Commercial Edible Food Generators to arrange to have the maximum amount of their Edible Food, that would otherwise be disposed, be recovered for human consumption.

8.65.030 DEFINITIONS
(a) “Blue Container” has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and collection of Source Separated Recyclable Materials or Source Separated Blue Container Organic Waste. (c) “CalRecycle” means California's Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on Jurisdictions (and others). (d) “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this ordinance are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR). (e) “Commercial Business” or “Commercial” means a firm, partnership, proprietorship, joint-stock company, corporation, or association, whether for-profit or nonprofit, strip mall, industrial facility, or a multifamily residential dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6). A Multi-Family Residential Dwelling that consists of fewer than five (5) units is not a Commercial Business for purposes of implementing this ordinance.
(f) “Commercial Edible Food Generator” includes a Tier One or a Tier Two Commercial Edible Food Generator as defined in 14 CCR Section 18982(a)(73) and (a)(74). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7).
(g) “Compliance Review” means a review of records by a Jurisdiction or Regional Agency to determine compliance with this ordinance.
(h) “Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 CCR Section 17855(a)(4); or, as otherwise defined by 14 CCR Section 18982(a)(8). (i) “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the effective date of this ordinance, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility.
(j) “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for compostability, or as otherwise described in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C).
(k) “Container Contamination” or “Contaminated Container” means a container, regardless of color, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR Section 18982(a)(55).
(l) “C&D” means construction and demolition debris.
(m) “Designated Source Separated Organic Waste Facility”, as defined in 14 CCR Section 18982(14.5), means a Solid Waste facility that accepts a Source Separated Organic Waste collection stream as defined in 14 CCR Section 17402(a)(26.6) and complies with one of the following:
(1) The facility is a “transfer/processor,” as defined in 14 CCR Section 18815.2(a)(62), that is in compliance with the reporting requirements of 14 CCR Section 18815.5(d), and meets or exceeds an annual average Source Separated organic content Recovery rate of 50 percent between January 1, 2022 and December 31, 2024 and 75 percent on and after January 1, 2025 as calculated pursuant to 14 CCR Section 18815.5(f) for Organic Waste received from the Source Separated Organic Waste collection stream. (A) If a transfer/processor has an annual average Source Separated organic content Recovery rate lower than the rate required in Paragraph 1 of this definition for two (2) consecutive reporting periods, or three (3) reporting periods within three (3) years, the facility shall not qualify as a “Designated Source Separated Organic Waste Facility”. (2) The facility is a “composting operation” or “composting facility” as defined in 14 CCR Section 18815.2(a)(13), that pursuant to the reports submitted under 14 CCR Section 18815.7 demonstrates that the percent of the material removed for landfill disposal that is Organic Waste is less than the percent specified in 14 CCR Section 17409.5.8(c)(2) or 17409.5.8(c)(3), whichever is applicable, and, if applicable, complies with the digestate handling requirements specified in 14 CCR Section 17896.5.
(n) “Designee” means an entity that a Jurisdiction contracts with or otherwise arranges to carry out any of the Jurisdiction’s responsibilities of this ordinance as authorized in 14 CCR Section 18981.2. A Designee may be a government entity, a hauler, a private entity, or a combination of those entities.
(o) “Edible Food” means food intended for human consumption, or as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this ordinance or as otherwise defined in 14 CCR Section 18982(a)(18), “Edible Food” is not Solid Waste if it is recovered and not discarded. Nothing in this ordinance or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. (p) “Enforcement Action" means an action of the Jurisdiction to address non-compliance with this ordinance including, but not limited to, issuing administrative citations, fines, penalties, or using other remedies.
(q) “Excluded Waste” means hazardous substance, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the Jurisdiction and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in Jurisdictions, or its Designee’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Jurisdiction, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. Excluded Waste does not include used motor oil and filters, household batteries, universal wastes, and latex paint when such materials are defined as allowable materials for collection through the Jurisdiction’s collection programs and the generator or customer has properly placed the materials for collection pursuant to instructions provided by Jurisdiction or its Designee for collection services
(r) “Food Distributor” means a company that distributes food to entities including, but not limited to, Supermarkets and Grocery Stores, or as otherwise defined in 14 CCR Section 18982(a)(22).
(s) “Food Facility” has the same meaning as in Section 113789 of the Health and Safety Code.
(t) “Food Recovery” means actions to collect and distribute food for human consumption that otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
(u) “Food Recovery Organization” means an entity that engages in the collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities or as otherwise defined in 14 CCR Section 18982(a)(25), including, but not limited to:
(1) A food bank as defined in Section 113783 of the Health and Safety Code; (2) A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code; and,
(3) A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code.

A Food Recovery Organization is not a Commercial Edible Food Generator for the purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).

If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this ordinance.
(v) “Food Recovery Service” means a person or entity that collects and transports Edible Food from a Commercial Edible Food Generator to a Food Recovery Organization or other entities for Food Recovery, or as otherwise defined in 14 CCR Section 18982(a)(26). A Food Recovery Service is not a Commercial Edible Food Generator for the purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
(w) “Food Scraps” means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps.
(x) “Food Service Provider” means an entity primarily engaged in providing food services to institutional, governmental, Commercial, or industrial locations of others based on contractual arrangements with these types of organizations, or as otherwise defined in 14 CCR Section 18982(a)(27).
(y) “Food-Soiled Paper” is compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons.
(z) “Food Waste” means Food Scraps and Food-Soiled Paper. (aa) “Gray Container” has the same meaning as in 14 CCR Section 18982.2(a)(28) and shall be used for the purpose of storage and collection of Gray Container Waste. (bb) “Gray Container Waste” means Solid Waste that is collected in a Gray Container that is part of a three or three-plus container Organic Waste collection service that prohibits the placement of Organic Waste in the Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5). (cc) “Green Container” has the same meaning as in 14 CCR Section 18982.2(a)(29) and shall be used for the purpose of storage and collection of Organic Waste. (dd) “Grocery Store” means a store primarily engaged in the retail sale of canned food; dry goods; fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including a bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR Section 18982(a)(30).
(ee) “Hauler Route” means the designated itinerary or sequence of stops for each segment of the Jurisdiction’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
(ff) “High Diversion Organic Waste Processing Facility” means a facility that is in compliance with the reporting requirements of 14 CCR Section 18815.5(d) and meets or exceeds an annual average Mixed Waste organic content Recovery rate of 50 percent between January 1, 2022 and December 31, 2024, and 75 percent after January 1, 2025, as calculated pursuant to 14 CCR Section 18815.5(e) for Organic Waste received from the “Mixed waste organic collection stream” as defined in 14 CCR Section 17402(a)(11.5); or, as otherwise defined in 14 CCR Section 18982(a)(33).
(gg) “Inspection” means a site visit where a Jurisdiction or Regional Agency reviews records, containers, and an entity’s collection, handling, recycling, or landfill disposal of Organic Waste or Edible Food handling to determine if the entity is complying with requirements set forth in this ordinance, or as otherwise defined in 14 CCR Section 18982(a)(35).
(hh) “Jurisdiction” means City of Anderson.
(ii) “Jurisdiction Enforcement Official” means City Manager or their authorized Designee(s) who is/are partially or whole responsible for enforcing the ordinance. (jj) “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definition in 14 CCR Section 18982(a)(38) differs from this definition, the definition in 14 CCR Section 18982(a)(38) shall apply to this ordinance. (kk) “Large Venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this ordinance and implementation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes more than one Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this ordinance. (ll) “Local Education Agency” means a school district, charter school, or county office of education that is not subject to the control of city or county regulations related to Solid Waste, or as otherwise defined in 14 CCR Section 18982(a)(40). (mm) “Multi-Family Residential Dwelling” or “Multi-Family” means of, from, or pertaining to residential premises with five (5) or more dwelling units. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses.
(nn) “MWELO” refers to the Model Water Efficient Landscape Ordinance (MWELO), 23 CCR, Division 2, Chapter 2.7.
(oo) “Non-Compostable Paper” includes but is not limited to paper that is coated in a plastic material that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).
(pp) “Non-Local Entity” means the following entities that are not subject to the Jurisdiction’s enforcement authority, or as otherwise defined in 14 CCR Section 18982(a)(42):
(1) Federal facilities, including federal parks, located within the boundaries of the Jurisdiction.
(2) Facilities operated by the State Park system located within the boundaries of the Jurisdiction.
(3) Public universities (including community colleges) located within the boundaries of the Jurisdiction.
(4) County fairgrounds located within the boundaries of the Jurisdiction. (5) State agencies located within the boundaries of the Jurisdiction. (qq) “Non-Organic Recyclables” means non-putrescible and non-hazardous recyclable wastes including but not limited to bottles, cans, metals, plastics and glass, or as otherwise defined in 14 CCR Section 18982(a)(43).
(rr) “Notice of Violation (NOV)” means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties, or as otherwise defined in 14 CCR Section 18982(a)(45) or further explained in 14 CCR Section 18995.4. (ss) “Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products, including but not limited to food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined by 14 CCR Section 18982(a).
(tt) “Organic Waste Generator” means a person or entity that is responsible for the initial creation of Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(48). (uu) “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51). (vv) “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54). (ww) “Prohibited Container Contaminants” means the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the Jurisdiction’s Blue Container; (ii) discarded materials placed in the Green Container that are not identified as acceptable Source Separated Green Container Organic Waste for the Jurisdiction’s Green Container; (iii) discarded materials placed in the Gray Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Green Container Organic Wastes to be placed in Jurisdiction’s Green Container and/or Blue Container; and, (iv) Excluded Waste placed in any container.
(xx) “Recovered Organic Waste Products” means products made from California, landfilldiverted recovered Organic Waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60). (yy) “Recovery” means any activity or process described in 14 CCR Section 18983.1(b), or as otherwise defined in 14 CCR Section 18982(a)(49).
(zz) “Recycled-Content Paper” means Paper Products and Printing and Writing Paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).
(aaa) “Regional Agency” means regional agency as defined in Public Resources Code Section 40181.
(bbb) “Regional Enforcement Official” means a regional or county agency enforcement official, designated by the Jurisdiction with responsibility for enforcing the ordinance in conjunction or consultation with Jurisdiction Enforcement Official (ccc) “Remote Monitoring” means the use of the internet of things (IoT) and/or wireless electronic devices to visualize the contents of Blue Containers, Green Containers and Gray Containers for purposes of identifying the quantity of materials in containers (level of fill) and/or presence of Prohibited Container Contaminants. (ddd) “Renewable Gas” means gas derived from Organic Waste that has been diverted from a California landfill and processed at an in-vessel digestion facility that is permitted or otherwise authorized by 14 CCR to recycle Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62).
(eee) “Restaurant” means an establishment primarily engaged in the retail sale of food and drinks for on-premises or immediate consumption, or as otherwise defined in 14 CCR Section 18982(a)(64).
(fff) “Route Review” means a visual Inspection of containers along a Hauler Route for the purpose of determining Container Contamination, and may include mechanical Inspection methods such as the use of cameras, or as otherwise defined in 14 CCR Section 18982(a)(65).
(ggg) “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time. (hhh) “SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to, for the purposes of this ordinance, the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that created 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR. (iii) “Self-Hauler” means a person, who hauls Solid Waste, Organic Waste or recyclable material he or she has generated to another person. Self-hauler also includes a person who back-hauls waste, or as otherwise defined in 14 CCR Section 18982(a)(66). Backhaul means generating and transporting Organic Waste to a destination owned and operated by the generator using the generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A). (jjj) “Single-Family” means of, from, or pertaining to any residential premises with fewer than five (5) units.
(kkk) “Solid Waste” has the same meaning as defined in State Public Resources Code Section 40191, which defines Solid Waste as all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge which is not hazardous waste, manure, vegetable or animal solid and semi-solid wastes, and other discarded solid and semisolid wastes, with the exception that Solid Waste does not include any of the following wastes:
(1) Hazardous waste, as defined in the State Public Resources Code Section 40141. (2) Radioactive waste regulated pursuant to the State Radiation Control Law (Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the State Health and Safety Code).
(3) Medical waste regulated pursuant to the State Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the State Health and Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste landfill, as defined in State Public Resources Code Section 40195.1. Medical waste that has been treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the State Public Resources Code. (lll) “Source Separated” means materials, including commingled recyclable materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or processing those materials for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products, which meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the ordinance, Source Separated shall include separation of materials by the generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of collection such that Source Separated materials are separated from Gray Container Waste or other Solid Waste for the purposes of collection and processing.
(mmm) “Source Separated Blue Container Organic Waste” means Source Separated Organic Wastes that can be placed in a Blue Container that is limited to the collection of those Organic Wastes and Non-Organic Recyclables as defined in Section 18982(a)(43), or as otherwise defined by Section 17402(a)(18.7). (ooo) “Source Separated Green Container Organic Waste” means Source Separated Organic Waste that can be placed in a Green Container that is specifically intended for the separate collection of Organic Waste by the generator, excluding Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles. (ppp) “Source Separated Recyclable Materials” means Source Separated Non-Organic Recyclables and Source Separated Blue Container Organic Waste. (qqq) “State” means the State of California.
(rrr) “Supermarket” means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items, or as otherwise defined in 14 CCR Section 18982(a)(71).
(sss) “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following:
(1) Supermarket.
(2) Grocery Store with a total facility size equal to or greater than 10,000 square feet.
(3) Food Service Provider.
(4) Food Distributor.
(5) Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this ordinance.
(ttt) “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following:
(1) Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet.
(2) Hotel with an on-site Food Facility and 200 or more rooms. (3) Health facility with an on-site Food Facility and 100 or more beds. (4) Large Venue.
(5) Large Event.
(6) A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet.
(7) A Local Education Agency facility with an on-site Food Facility.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this ordinance.
(uuu) “Uncontainerized Green Waste and Yard Waste Collection Service” or “Uncontainerized Service” means a collection service that collects green waste and yard waste that is placed in a pile or bagged for collection on the street in front of a generator’s house or place of business for collection and transport to a facility that recovers Source Separated Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(75).
(vvv) “Wholesale Food Vendor” means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination, or as otherwise defined in 14 CCR Section 18982(a)(76).

8.65.040 REQUIREMENTS FOR SOLID WASTE, RECYCLING, AND ORGANIC WASTE

DISPOSAL
(a) Every person in possession, charge, or control of any single-family dwelling, multifamily dwelling, or commercial premises shall ensure that arrangements are made to properly dispose of the solid waste, recycling, and organic waste created, produced, or accumulated on the premises through maintaining a mandatory subscription for regular waste collection services from the city’s exclusive franchise hauler and, where permissible, self-hauling and/or subcontracting services.
(b) No person except the city or an authorized collector shall collect or transport solid waste or provide solid waste services within the city unless specifically authorized by the city, with the following exceptions:
(1) Collection, transfer, handling and disposal of hazardous waste; (2) The removal and transportation of waste vegetation derived from landscaping activities or construction and demolition debris by the owner or occupant of the property from which the material is derived, or by persons licensed to do landscaping, tree trimming, or C&D business in the city and providing service to the owner or occupant of the property from which the material is derived;
(3) Collection, transport, disposal or recycling of litter by an individual or volunteer group of individuals;
(4) Community or neighborhood clean-up activities operated in cooperation with the city or an authorized person;
(5) City crews collecting, transporting, disposing or recycling and transporting solid waste to a transfer station, processing facility, landfill, or material recovery facility.

8.65.050 REQUIREMENTS FOR SINGLE-FAMILY GENERATORS
Single-Family Waste Generators shall comply with the following requirements:
(a) Shall subscribe to Jurisdiction’s three container service and comply with requirements of those services as described below in 8.65.050(b) and (c). (b) Shall subscribe to Jurisdiction’s Organic Waste collection services for all Organic Waste generated as described below in Section 4(b) Single-Family Organic Waste Generators may additionally manage their Organic Waste by preventing or reducing their Organic Waste, managing Organic Waste on site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).
(c) Shall participate in the Jurisdiction’s Organic Waste collection service(s) by placing designated materials in designated containers as described below, and shall not place Prohibited Container Contaminants in collection containers. (1) Generator shall place Source Separated Green Container Organic Waste, in the Green Container; Source Separated Recyclable Materials in the Blue Container; and Gray Container Waste in the Gray Container. Single-Family Organic Waste Generator shall not place materials designated for the Green Containers or Blue Containers in the Gray Containers.

8.65.060 REQUIREMENTS FOR COMMERCIAL BUSINESSES
Generators that are Commercial Businesses, including Multi-Family Residential Dwellings, shall:
(a) Subscribe to Jurisdiction’s three container service and comply with requirements of those services as described below in 8.65.050(b).
(b) Participate in the Jurisdiction’s Organic Waste collection service(s) by placing designated materials in designated containers as described below. (1) Generator shall place Source Separated Green Container Organic Waste, in the Green Container; Source Separated Recyclable Materials in the Blue Container; and Gray Container Waste in the Gray Container. Generator shall not place materials designated for the Green Containers or Blue Containers in the Gray Containers.
(c) Supply and allow access to adequate number, size and location of collection containers with sufficient labels or colors (conforming with Sections 6(d)(1) and 6(d)(2) below) for employees, contractors, tenants, and customers, consistent with Jurisdiction’s Blue Container, Green Container, and Gray Container collection service. (d) Excluding Multi-Family Residential Dwellings, provide containers for the collection of Source Separated Green Container Organic Waste and Source Separated Recyclable Materials in all indoor and outdoor areas where disposal containers are provided for customers, for materials generated by that business. Such containers do not need to be provided in restrooms. If a Commercial Business does not generate any of the materials that would be collected in one type of container, then the business does not have to provide that particular container in all areas where disposal containers are provided for customers. Pursuant to 14 CCR Section 18984.9(b), the containers provided by the business shall have either:
(1) A body or lid that conforms with the container colors provided through the collection service provided by Jurisdiction, with either lids conforming to the color requirements or bodies conforming to the color requirements or both lids and bodies conforming to color requirements. A Commercial Business is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the requirements of this subsection prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first.
(2) Container labels that include language or graphic images, or both, indicating the primary material accepted and the primary materials prohibited in that container, or containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the container.
(e) Multi-Family Residential Dwellings are not required to comply with container placement requirements or labeling requirement in Section 6(d) pursuant to 14 CCR Section 18984.9(b) inside the dwelling units.
(f) To the extent practical through education, training, Inspection, and/or other measures, excluding Multi-Family Residential Dwellings, prohibit employees, contractors, tenants, and customers from placing materials in a container not designated for those materials per the Jurisdiction’s Blue Container, Container, and Gray Container collection service.
(g) Excluding Multi-Family Residential Dwellings, quarterly inspect Blue Containers, Green Containers, and Gray Containers for contamination and inform employees, contractors, tenants, and customers if containers are contaminated and of the requirements to keep contaminants out of those containers pursuant to 14 CCR Section 18984.9(b)(3). Records of inspections shall be made available upon request by the Jurisdiction or Regional Agency.
(h) Annually provide information to employees, contractors, tenants, and customers about Organic Waste Recovery requirements and about proper sorting of Source Separated Green Container Organic waste and Source Separated Recyclable Materials.
(i) Provide education information before or within fourteen (14) days of occupation of the premises to new tenants that describes requirements to keep Source Separated Green Material Organic Waste and Source Separated Recyclable Materials separate from Gray Container Waste (when applicable) and the location of containers and the rules governing their use at each property.
(j) Provide or arrange access for Jurisdiction or its agent to their properties during all Inspections conducted in accordance with 8.65.150 of this ordinance to confirm compliance with the requirements of this ordinance.
(k) Accommodate and cooperate with Jurisdiction’s Remote Monitoring program for Inspection of the contents of containers for Prohibited Container Contaminants, which may be implemented at a later date, to evaluate generator’s compliance with

8.65.050(b).
(l) At Commercial Business’s option and subject to any approval required from the Jurisdiction, implement a Remote Monitoring program for Inspection of the contents of its Blue Containers, Green Containers and Gray Containers for the purpose of monitoring the contents of containers to determine appropriate levels of service and to identify Prohibited Container Contaminants. Generators may install Remote Monitoring devices on or in the Blue Containers, Green Containers, and Gray Containers subject to written notification to or approval by the Jurisdiction or its Designee, or the Regional Agency.
(n) Nothing in this Section prohibits a generator from preventing or reducing waste generation, managing Organic Waste on site, or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).
(o) Commercial Businesses that are Tier One or Tier Two Commercial Edible Food Generators shall comply with Food Recovery requirements, pursuant to 8.65.070.

8.65.070 WAIVERS FOR GENERATORS
(a) De Minimis Waivers: a Jurisdiction or Regional Agency may waive a Commercial Business’ obligation (including Multi-Family Residential Dwellings) to comply with some or all of the Organic Waste requirements of this ordinance if the Commercial Business provides documentation that the business generates below a certain amount of Organic Waste material as described in 8.65.060(a)(2) below. Commercial Businesses requesting a de minimis waiver shall:
(1) Submit an application specifying the services that they are requesting a waiver from and provide documentation as noted in 8.65.060(a)(2) below. (2) Provide documentation that either:
(A) The Commercial Business’ total Solid Waste collection service is two cubic yards or more per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 20 gallons per week per applicable container of the business’ total waste; or, (B) The Commercial Business’ total Solid Waste collection service is less than two cubic yards per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 10 gallons per week per applicable container of the business’ total waste. (3) Notify Jurisdiction if circumstances change such that Commercial Business’ Organic Waste exceeds threshold required for waiver, in which case waiver will be rescinded.
(4) Provide written verification of eligibility for de minimis waiver every 5 years, if Jurisdiction has approved de minimis waiver.
(b) Physical Space Waivers: A Jurisdiction or Regional Agency may waive a Commercial Business’ or property owner’s obligations (including Multi-Family Residential Dwellings) to comply with some or all of the recyclable materials and/or Organic Waste collection service requirements if the Jurisdiction has evidence from its own staff, a hauler, licensed architect, or licensed engineer demonstrating that the premises lacks adequate space for the collection containers required for compliance with the Organic Waste collection requirements of 8.65.050 or 8.65.060.

A Commercial Business or property owner may request a physical space waiver through the following process:
(1) Submit an application form specifying the type(s) of collection services for which they are requesting a compliance waiver.
(2) Provide documentation that the premises lacks adequate space for Blue Containers and/or Green Containers including documentation from its hauler, licensed architect, or licensed engineer.
(3) Provide written verification to Jurisdiction that it is still eligible for physical space waiver every five years, if Jurisdiction has approved application for a physical space waiver.
(c) Collection Frequency Waiver: Jurisdiction or Regional Agency, at its discretion and in accordance with 14 CCR Section 18984.11(a)(3), may allow the owner or tenant of any residence, premises, business establishment or industry that subscribes to the Jurisdiction’s three-container Organic Waste collection service to arrange for the collection of their Blue Container, Gray Container, or both, once every fourteen days, rather than once per week. A collection frequency waiver may be requested by submitting an application to arrange for collection every fourteen days.

A Commercial Business or property owner may request a collection frequency waiver through the following process:
(1) Submit an application form specifying the type(s) of collection services for which they are requesting a compliance waiver.
(2) Provide documentation that the Blue Container, Gray Container, or both, does not contain putrescible waste.
(3) Provide written verification to Jurisdiction that it is still eligible for collection frequency waiver every five years, if Jurisdiction has approved application for a collection frequency waiver.

8.65.080 REQUIREMENTS FOR COMMERCIAL EDIBLE FOOD GENERATORS (a) Tier One Commercial Edible Food Generators must comply with the requirements of Section 8.65.070 commencing January 1, 2022, and Tier Two Commercial Edible Food Generators must comply commencing January 1, 2024, pursuant to 14 CCR Section 18991.3.
(b) Large Venue or Large Event operators not providing food services, but allowing for food to be provided by others, shall require Food Facilities operating at the Large Venue or Large Event to comply with the requirements of this Section, commencing January 1, 2024.
(c) Commercial Edible Food Generators shall comply with the following requirements:
(1) Arrange to recover the maximum amount of Edible Food that would otherwise be disposed.
(2) Contract with, or enter into a written agreement with Food Recovery Organizations or Food Recovery Services for: (i) the collection of Edible Food for Food Recovery; or, (ii) acceptance of the Edible Food that the Commercial Edible Food Generator self-hauls to the Food Recovery Organization for Food Recovery.
(3) Shall not intentionally spoil Edible Food that is capable of being recovered by a Food Recovery Organization or a Food Recovery Service. (4) Allow Jurisdiction’s designated enforcement entity or Regional Agency to access the premises and review records pursuant to 14 CCR Section 18991.4. (5) Keep records that include the following information, or as otherwise specified in 14 CCR Section 18991.4:
(A) A list of each Food Recovery Service or organization that collects or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR Section 18991.3(b).
(B) A copy of all contracts or written agreements established under 14 CCR Section 18991.3(b).
(C) A record of the following information for each of those Food Recovery Services or Food Recovery Organizations:
(i) The name, address and contact information of the Food Recovery Service or Food Recovery Organization.
(ii) The types of food that will be collected by or self-hauled to the Food Recovery Service or Food Recovery Organization.
(iii) The established frequency that food will be collected or selfhauled. (iv) The quantity of food, measured in pounds recovered per month, collected or self-hauled to a Food Recovery Service or Food Recovery Organization for Food Recovery.
(6) No later than March 1 of each year commencing no later than 2023 for Tier One Commercial Edible Food Generators and 2025 for Tier Two Commercial Edible Food Generators, provide an annual Food Recovery report to the Regional Agency that includes all information listed above in 8.65.070(c)(5). (d) Nothing in this ordinance shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California on September 25, 2017, which added Article 13 [commencing with Section 49580] to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded and replaced from time to time).

8.65.090 REQUIREMENTS FOR FOOD RECOVERY ORGANIZATIONS AND SERVICES,

AND JURISDICTION
(a) Food Recovery Services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(1):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
(2) The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month.
(3) The quantity in pounds of Edible Food transported to each Food Recovery Organization per month.
(4) The name, address, and contact information for each Food Recovery Organization that the Food Recovery Service transports Edible Food to for Food Recovery.
(b) Food Recovery Organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
(1) The name, address, and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food. (2) The quantity in pounds of Edible Food received from each Commercial Edible Food Generator per month.
(3) The name, address, and contact information for each Food Recovery Service that the organization receives Edible Food from for Food Recovery. (c) Food Recovery Organizations and Food Recovery Services that have their primary address physically located in the Jurisdiction and contract with or have written agreements with one or more Commercial Edible Food Generators pursuant to 14 CCR Section 18991.3(b) shall report to the Regional Agency the total pounds of Edible Food recovered in the previous calendar year from the Tier One and Tier Two Commercial Edible Food Generators they have established a contract or written agreement with pursuant to 14 CCR Section 18991.3(b) no later than March 1. (d) Food Recovery Capacity Planning
(1) Food Recovery Services and Food Recovery Organizations. In order to support Edible Food Recovery capacity planning assessments or other studies conducted by the Jurisdiction or its designated entity, Food Recovery Services and Food Recovery Organizations operating in the Jurisdiction shall provide information and consultation to the Jurisdiction and Regional Agency, upon request, regarding existing, or proposed new or expanded, Food Recovery capacity that could be accessed by the Jurisdiction and its Commercial Edible Food Generators. A Food Recovery Service or Food Recovery Organization contacted by the Jurisdiction or Regional Agency shall respond to such request for information within 60 days, unless a shorter timeframe is otherwise specified by the Jurisdiction or Regional Agency.

8.65.100 REQUIREMENTS FOR HAULERS AND FACILITY OPERATORS (a) Requirements for Haulers
(1) Exclusive franchised haulers providing residential, Commercial, or industrial Organic Waste collection services to generators within the Jurisdiction’s boundaries shall meet the following requirements and standards as a condition of approval of a contract, agreement, or other authorization with the Jurisdiction to collect Organic Waste:
(A) Through written notice to the Jurisdiction annually on or before October 1 for the following calendar year, exclusive franchise haulers must identify the facilities to which they will transport Organic Waste including facilities for Source Separated Recyclable Materials, and Source Separated Green Container Organic Waste. At its discretion, the Jurisdiction may direct the exclusive franchise haulers to use certain facilities. If the Jurisdiction chooses to exercise this right, the exclusive franchise haulers shall follow the Jurisdiction’s direction and provide alternative facilities that may be used in the event the selected facilities are temporarily or permanently rejecting Solid Waste.
(B) Transport Source Separated Recyclable Materials and Source Separated Green Container Organic Waste to a facility, operation, activity, or property that recovers Organic Waste as defined in 14 CCR, Division 7, Chapter 12, Article 2.
(C) Obtain approval from the Jurisdiction to haul Organic Waste, unless it is transporting Source Separated Organic Waste to a Community Composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1, 9.44.110 of this ordinance. (2) Exclusive franchise haulers authorization to collect Organic Waste shall comply with education, equipment, signage, container labeling, container color, contamination monitoring, reporting, and other requirements contained within its franchise agreement entered into with Jurisdiction. (b) Requirements for Facility Operators and Community Composting Operations (1) Owners of facilities, operations, and activities that recover Organic Waste, including, but not limited to, Compost facilities, in-vessel digestion facilities, and publicly-owned treatment works shall, upon Jurisdiction request, provide information regarding available and potential new or expanded capacity at their facilities, operations, and activities, including information about throughput and permitted capacity necessary for planning purposes. Entities contacted by the Jurisdiction shall respond within 60 days. (2) Community Composting operators, upon Jurisdiction request, shall provide information to the Jurisdiction to support Organic Waste capacity planning, including, but not limited to, an estimate of the amount of Organic Waste anticipated to be handled at the Community Composting operation. Entities contacted by the Jurisdiction shall respond within 60 days.

8.65.110 COMPLIANCE WITH CALGREEN RECYCLING REQUIREMENTS (a) Persons applying for a permit from the Jurisdiction for new construction and building additions and alterations shall comply with the requirements of this Section and all required components of the California Green Building Standards Code, 24 CCR, Part 11, known as CALGreen, as amended, if its project is covered by the scope of CALGreen. If the requirements of CALGreen are more stringent then the requirements of this Section, the CALGreen requirements shall apply.

Project applicants shall refer to Jurisdiction’s Building Department for complete CALGreen requirements.
(b) For projects covered by CALGreen, the applicants must, as a condition of the Jurisdiction’s permit approval, comply with the following:
(1) Where five (5) or more Multi-Family dwelling units are constructed on a building site, provide readily accessible areas that serve occupants of all buildings on the site and are identified for the storage and collection of Blue Container and Green Container materials, consistent with the three-container collection program offered by the Jurisdiction, or comply with provision of adequate space for recycling for Multi-Family and Commercial premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and 5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as amended provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020. (2) New Commercial construction or additions resulting in more than 30% of the floor area shall provide readily accessible areas identified for the storage and collection of Blue Container and Green Container materials, consistent with the three-container collection program offered by the Jurisdiction, or shall comply with provision of adequate space for recycling for Multi-Family and Commercial premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and

5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as amended provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020.
(3) Comply with CALGreen requirements and applicable law related to management of C&D, including diversion of Organic Waste in C&D from disposal. Comply with all written and published Jurisdiction policies and/or administrative guidelines regarding the collection, recycling, diversion, tracking, and/or reporting of C&D.

8.65.120 MODEL WATER EFFICIENT LANDSCAPING ORDINANCE REQUIREMENTS (a) Property owners or their building or landscape designers, including anyone requiring a building or planning permit, plan check, or landscape design review from the Jurisdiction, who are constructing a new (Single-Family, Multi-Family, public, institutional, or Commercial) project with a landscape area greater than 500 square feet, or rehabilitating an existing landscape with a total landscape area greater than 2,500 square feet, shall comply with Sections 492.6(a)(3)(B), (C), (D), and (G) of the MWELO, including sections related to use of Compost and mulch as delineated in Section 8.65.120.
(b) The following Compost and mulch use requirements that are part of the MWELO are now also included as requirements of this ordinance. Other requirements of the MWELO are in effect and can be found in 23 CCR, Division 2, Chapter 2.7. (c) Property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined in Section 8.65.120(a) above shall:
(1) Comply with Sections 492.6 (a)(3)(B), (C), (D), and (G) of the MWELO, which requires the submittal of a landscape design plan with a soil preparation, mulch, and amendments section to include the following:
(A) For landscape installations, Compost at a rate of a minimum of four cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling.
(B) For landscape installations, a minimum three- (3-) inch layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife up to five percent (5%) of the landscape area may be left without mulch. Designated insect habitat must be included in the landscape design plan as such.
(C) Organic mulch materials made from recycled or post-consumer materials shall take precedence over inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local fuel modification plan guidelines or other applicable local ordinances.
(2) The MWELO compliance items listed in this Section are not an inclusive list of MWELO requirements; therefore, property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined in Section 9.44.120(a) shall consult the full MWELO for all requirements. (d) If, after the adoption of this ordinance, the California Department of Water Resources, or its successor agency, amends 23 CCR, Division 2, Chapter 2.7, Sections 492.6(a)(3)(B), (C), (D), and (G) of the MWELO September 15, 2015 requirements in a manner that requires Jurisdictions to incorporate the requirements of an updated MWELO in a local ordinance, and the amended requirements include provisions more stringent than those required in this Section, the revised requirements of 23 CCR, Division 2, Chapter 2.7 shall be enforced.

8.65.130 PROCUREMENT REQUIREMENTS FOR JURISDICTION DEPARTMENTS,

DIRECT SERVICE PROVIDERS, AND VENDORS
(a) Jurisdiction departments, and direct service providers to the Jurisdiction, as applicable, must comply with the Jurisdiction’s Recovered Organic Waste Product Procurement Policy adopted on January 18, 2022.

8.65.140 INSPECTIONS AND INVESTIGATIONS BY JURISDICTION AND REGIONAL AGENCY
(a) Jurisdiction, and/or its designated entity, including Designees are authorized to conduct Inspections and investigations, at random or otherwise, of any collection container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from generators, or Source Separated materials to confirm compliance with this ordinance by Organic Waste Generators, Commercial Businesses (including Multi-Family Residential Dwellings), property owners, Commercial Edible Food Generators, haulers, Food Recovery Services, and Food Recovery Organizations, subject to applicable laws. This Section does not allow Jurisdiction to enter the interior of a private residential property or areas other than those areas accessed during regular collection service for Inspection. (b) Organic Waste Generator shall provide or arrange for access during all Inspections and shall cooperate with the Jurisdiction’s or Regional Agency’s employee or its designated entity/Designee during such Inspections and investigations. Such Inspections and investigations may include confirmation of proper placement of materials in containers, Edible Food Recovery activities, records, or any other requirement of this ordinance described herein. Failure to provide or arrange for: (i) access to an entity’s premises; or (ii) access to records for any Inspection or investigation is a violation of this ordinance and may result in penalties described. (c) Any records obtained by a Jurisdiction or Regional Agency during its Inspections and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code Section 6250 et seq.
(d) Jurisdiction and Regional Agency representatives, its designated entity, and/or Designee are authorized to conduct any Inspections or other investigations as reasonably necessary to further the goals of this ordinance, subject to applicable laws. (e) Jurisdiction or Regional Agency shall receive written complaints from persons regarding an entity that may be potentially non-compliant with SB 1383 Regulations, including receipt of anonymous complaints.

8.65.150 ENFORCEMENT
(a) Violation of any provision of this ordinance shall constitute grounds for issuance of a Notice of Violation and assessment of a fine by a Jurisdiction Enforcement Official or representative. Enforcement Actions under this ordinance include issuance of an administrative citation(s) and assessment of a fine(s). The Jurisdiction’s procedures on imposition of administrative fines are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this ordinance and any rule or regulation adopted pursuant to this ordinance, except as otherwise indicated in this ordinance.
(b) Other remedies allowed by law may be used, including, but not limited to, civil action or prosecution as misdemeanor or infraction. Jurisdiction may pursue civil actions in the California courts to seek recovery of unpaid administrative citations. Jurisdiction may choose to delay court action until such time as a sufficiently large number of violations, or cumulative size of violations exist such that court action is a reasonable use of Jurisdiction staff and resources.
(c) Responsible Entity for Enforcement
(1) Enforcement pursuant to this ordinance may be undertaken by the Jurisdiction Enforcement Official, or their designated entity, legal counsel, or combination thereof.
(2) Enforcement recommendations may be made by a Regional Enforcement Official, in consultation with Jurisdiction Enforcement Official. (A) Regional Enforcement Official will interpret ordinance; determine the applicability of waivers, if violation(s) have occurred; recommend Enforcement Actions; and, determine if compliance standards are met. (B) Jurisdiction Enforcement Official(s) will issue Notices of Violation(s). (d) Process for Enforcement
(1) Regional Enforcement Officials and/or their Designee will monitor compliance with the ordinance randomly and through Compliance Reviews, Route Reviews, investigation of complaints, and an Inspection program. Section

8.65.140 establishes Jurisdiction’s and Regional Agency’s right to conduct Inspections and investigations.
(2) Jurisdiction may issue an official notification to notify regulated entities of its obligations under the ordinance.
(3) Jurisdiction shall issue a Notice of Violation within 60 days of the violation, requiring compliance within 60 days of issuance of the notice. (4) Absent compliance by the respondent within the deadline set forth in the Notice of Violation, Jurisdiction shall commence an action to impose penalties, via an administrative citation and fine, pursuant to the Jurisdiction’s requirements.

Notices shall be sent to “owner” at the official address of the owner maintained by the tax collector for the Jurisdiction or if no such address is available, to the owner at the address of the dwelling or Commercial property or to the party responsible for paying for the collection services, depending upon available information
(e) Penalty Amounts for Types of Violations
The penalty levels are as follows:
(1) For a first violation, the amount of the base penalty shall be $50 for SingleFamily Generators and shall be $100 per violation for Commercial Businesses. (2) For a second violation, the amount of the base penalty shall be $100 for SingleFamily Generators and shall be $200 per violation for Commercial Businesses. (3) For a third or subsequent violation, the amount of the base penalty shall be $250 for Single-Family Generators and shall be $500 per violation for Commercial Businesses.
(f) Compliance Deadline Extension Considerations
The Jurisdiction may extend the compliance deadlines set forth in a Notice of Violation issued in accordance with Section 8.65.150 if it finds that there are extenuating circumstances beyond the control of the respondent that make compliance within the deadlines impracticable, including the following:
(1) Acts of God such as earthquakes, wildfires, flooding, and other emergencies or natural disasters;
(2) Delays in obtaining discretionary permits or other government agency approvals; or,
(3) Deficiencies in Organic Waste recycling infrastructure or Edible Food Recovery capacity and the Jurisdiction is under a corrective action plan with CalRecycle pursuant to 14 CCR Section 18996.2 due to those deficiencies. (g) Appeals Process
Persons receiving an administrative citation containing a penalty for an uncorrected violation may request a hearing to appeal the citation. A hearing will be held only if it is requested within the time prescribed and consistent with Jurisdiction’s procedures in the Jurisdiction’s codes for appeals of administrative citations.

Evidence may be presented at the hearing. The Jurisdiction will appoint a hearing officer who shall conduct the hearing and issue a final written order. (i) Civil Penalties for Non-Compliance
If the Jurisdiction determines that an Organic Waste Generator, hauler, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not in compliance with this ordinance, it shall issue a Notice of Violation, and take Enforcement Action pursuant to Section

8.65.150, as needed.

SECTION 2. CEQA. This Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Sections 15061(b)(3) and 15308 on the grounds that it can be seen with certainty that the enhanced solid waste regulations, as provided for in this Ordinance will not have a significant effect on the environment and that the new requirements, which strengthen requirements for the handling of solid waste, represent actions by a regulatory agency (the City) for the protection of the environment.

SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause, phrase or word of this ordinance is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such decision shall not affect the remaining provisions of this ordinance.

SECTION 4. ENACTMENT. The City Clerk shall certify the adoption of this ordinance and shall cause it to be posted and/or published in accordance with the law.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Anderson held on November 18, 2025 and enacted at a regular meeting of the City Council of the City of Anderson held on December 2, 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Susie Baugh, Mayor
ATTEST:
_____________________________________
Christy White, City Clerk

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